1 Mr Leon Perera asked\tthe Minister for Health (a) for each year from 2011 till 2016, how many residents in nursing homes were abandoned by their next-of-kin and how many were unable to pay their bills; (b) what is the typical procedure that nursing home operators follow in such cases; and (c) how are the operators of nursing homes assisted by the Government in dealing with the cases.
\tThe Minister of State for Health (Dr Lam Pin Min) (for the Minister for Health): Mdm Speaker, we do not specifically track the number of nursing home residents who are abandoned by their families. When families fail to visit, nursing home staff will try to re-establish contact. They may try to contact family members or visit them at their last known addresses to encourage them to visit their loved ones.
The Government provides means-tested subsidies of up to 75% of nursing home costs. Residents who require additional assistance can tap on financial assistance schemes, such as MediFund. Many nursing homes are also run by voluntary welfare organisations and may tap on charitable donations to provide further financial support to their residents. Nursing homes can also provide assistance to eligible residents to seek legal recourse under the Maintenance of Parents Act if they wish to do so.
Mdm Speaker: Mr Leon Perera.
\tMr Leon Perera (Non-Constituency Member):\tI thank the Minister of State for his answer. I just have a few supplementary questions. Have there been any cases that the Ministry is aware of where because of the inability to pay, the resident of the nursing home could not continue to reside in the nursing home? Second, is there a procedure for what nursing homes should do in case they decide that the bill is not being paid and they cannot afford to keep the resident there?
\tDr Lam Pin Min: I would like to thank Mr Leon Perera for the supplementary questions. Like I have mentioned, nursing homes do have certain procedures to try to establish contact with the family members of the residents. Different nursing homes have different procedures but, fundamentally, they are quite similar. They will make phone calls, they will try to email them, they can send letters, and some will also attempt to visit their homes at the last known address.
With regard to residents who are unable to pay for the nursing home cost, the Government does provide financial assistance for those who are eligible under the means testing regime. For those who cannot pay the remaining portions of their bills, they can also tap on MediFund as well.
I would like to reiterate to all Members of the House that every single case of abandonment is sad and heart-wrenching. The Government cannot mandate filial piety but will definitely step in to help whenever possible. While the Government can provide financial support through the various assistance schemes that I have mentioned just now, we cannot play surrogacy to the love and warmth of the family.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Applications by Fathers for Full Paternity Leave","subTitle":null,"sectionType":"OA","content":"2 Mr Seah Kian Peng asked\tthe Minister for Social and Family Development (a) how many eligible working fathers have applied for a full week of paid paternity leave in 2016; and (b) what is the percentage of applications from the Civil Service.
\tThe Parliamentary Secretary to the Minister for Social and Family Development (Assoc Prof Dr Muhammad Faishal Ibrahim) (for the Minister for Social and Family Development):\tMadam, among fathers of children born in 2016, about 11,300 fathers have applied for Government-Paid Paternity Leave so far. This figure is still increasing as fathers have the flexibility to take Paternity Leave up to 12 months after their child's birth. The figures will only be finalised at the end of March 2018, when the deadline for the submission of claims is over. Sixteen percent of these applications are from the Civil Service.
Mdm Speaker: Mr Seah Kian Peng.
\tMr Seah Kian Peng (Marine Parade): I thank the Parliamentary Secretary for the answer. A few supplementary questions. So, 11,300 applied in 2016. When I compare this with the corresponding figures for previous years, I note that there were 12,000-over in 2015, and about 11,900 in 2014. Percentage wise, the Parliamentary Secretary mentioned that it was 16% for 2016. This is a big drop from the earlier percentages of 25% in 2015 and 35% in 2014.
To me, these figures do not look very encouraging. Why are fathers not applying? Or are employers not approving or not encouraging fathers to apply? What is the Civil Service going to do about it?
\tAssoc Prof Dr Muhammad Faishal Ibrahim: Madam, I shall clarify further. In my answer earlier, I mentioned that 11,300 fathers had applied and 16% is with regard to the whole number and the base that we have. If members look at the actual take-up rate, in fact, it has gone up. In 2014, we had about 38.5% take-up rate; in 2015, it was 44.1%; in 2016, as at to date, it is 35.7%. But like I said earlier, fathers have up to 12 months to take the paternity leave from the date of the birth of their child. On the other hand, the employer has three months more to submit the claims.
The figures for 2015 and 2016 have not been finalised and we expect the figures to be higher. If you look back, the trend has been going up, and it is encouraging.
As for the Civil Service, the 16% is with regard to the total applications. But if you look at the numbers and figures for the Civil Service, in fact, they have also been creeping up. As at to date, 91.4% of eligible fathers in the Civil Service have applied for this leave. Again, similar to what I said earlier, we have not reached the cut-off dates. We expect the percentage to go up further, which is very encouraging.
We are very committed to encouraging fathers to be part of the family development and child-raising process. As such, we have been reaching out to employers to develop family-friendly workplaces and environment. At the same time, there are all the different platforms and initiatives undertaken to provide opportunities for fathers to play a role, not only from Government, but also from community organisations. I am very heartened that Members like Mr Seah and Mr Louis Ng, and my own Minister Tan Chuan-Jin, are trying to promote active fathering. I think this is something that we should develop further. We should harness this within our society so that the whole spectrum of fathering becomes part and parcel of the process of family development. I believe this will help to strengthen our families and will somehow enhance the development of our society.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Guidelines for Eco-labelling on Products","subTitle":null,"sectionType":"OA","content":"3 Mr Leon Perera asked\tthe Minister for the Environment and Water Resources if his Ministry will introduce guidelines for the eco-labelling of products to prevent consumers from being potentially misled by non-governmental sanctioned eco-labelling initiatives in the future.
\tThe Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M): We are encouraged by the increasing awareness of eco-labels among consumers in recent years. Eco-labels are one form of environmental performance certification which can be useful in helping consumers make informed decisions when purchasing environmentally friendly products.
There are several internationally well-established organisations, such as the International Organisation for Standardisation, which establish guiding principles and procedures for the development of eco-labelling programmes to identify products which are environmentally preferable. Taking guidance from them locally are the Singapore Green Labelling Scheme (SGLS), which is administered by the Singapore Environment Council (SEC) and the Singapore Green Building Product Labeling Scheme, which is administered by the Singapore Green Building Council.
My Ministry will continue to encourage the administrators of other eco-labels to take reference from these international guidelines to build public confidence in the credibility of their labels with a view to move more people towards environmentally sustainable purchasing practices.
Mdm Speaker: Mr Leon Perera.
\tMr Leon Perera (Non-Constituency Member):\tMdm Speaker, I thank the Minister for his reply. Just a few quick supplementary questions. Would there be anything to stop a private organisation from setting up their own private eco-labelling initiative? Will there be anything in the law or elsewhere that would stop a private organisation from doing so, without any connections with international standard bodies or any of the other bodies like SEC that the Minister mentioned? And if there are no such restrictions, how would consumers be able to tell if this is really a credible eco-labelling or otherwise?
\tMr Masagos Zulkifli B M M:\tIn Singapore, there are credible organisations like SEC, which even the Government has taken the signals from in their purchases. In fact, from last year onwards, we have been purchasing paper based on SGLS issued by SEC. Therefore, I urge consumers to use the same credible bodies in making their choices.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Exit of Manufacturing Operations by US Companies","subTitle":null,"sectionType":"OA","content":"4 Mr Dennis Tan Lip Fong asked\tthe Minister for Trade and Industry (Trade) how does the Government intend to help Singapore companies mitigate the effects of the manufacturing move back to the US by US companies.
\tThe Minister for Trade and Industry (Trade) (Mr Lim Hng Kiang): Mdm Speaker, Singapore remains an attractive investment destination, including from United States companies. In 2016, the Economic Development Board (EDB) attracted S$9.4 billion in fixed asset investments. For 2017, EDB expects investment commitment numbers to be comparable to 2016 levels, namely, at S$8 million to S$10 billion. Our manufacturing sector is also well-diversified, with investments from companies around the world.
For Singapore to remain attractive, Singapore must maintain our economic competitiveness. In the case of our manufacturing sector, this competitiveness is built on several key attributes, including our pro-business environment, access to skilled talent, research capabilities and strong intellectual property protection. Many companies have decided to establish themselves in Singapore to complement their global manufacturing footprint. From Singapore, they can more readily tap on regional supply chains as well as better access regional markets.
Maintaining our competitiveness means pressing on with our industry transformation efforts to better position our manufacturing sector for the future. The Industry Transformation Maps are critical in this effort. They set out growth and competitiveness plans for 23 sectors, including several in the manufacturing cluster, complemented by initiatives to raise productivity, spur innovation, promote internationalisation, as well as equip our people with the relevant skillsets.
As part of EDB's Home Strategy, EDB anchors the critical functions and differentiating competencies of globally leading companies to improve their rootedness to Singapore for the long term. In the manufacturing sector, EDB aims to anchor industry leaders in Singapore while building up a complementary ecosystem of suppliers and research and development institutes that can partner effectively with these \"queen bees\". We have also committed S$3.2 billion for the Advanced Manufacturing and Engineering domain under the Research and Enterprise 2020 plan, through which the Agency for Science, Technology and Research will support the development of technological capabilities for our manufacturing and engineering sectors.
In addition, EDB is partnering other Government agencies, such as SkillsFuture Singapore, Workforce Singapore, the Institutes of Higher Learning and industry players, to equip our people with the skillsets to stay competitive. These efforts will ensure that our manufacturing companies can access a steady pipeline of talent.
More broadly, Singapore must remain open and connected to ensure that we retain our relevance to businesses. Singapore must continually work with like-minded partners to guard against protectionist policies, which adversely affect global trade with knock-on effects on economic growth worldwide, while pursuing the liberalisation of trade and investment that will create opportunities for our companies and our people.
Mdm Speaker: Order. End of Question Time.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Personal Explanation","subTitle":null,"sectionType":"OS","content":"Mdm Speaker: Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon):\tMdm Speaker, I refer to my speech in Parliament on 1 March 2017, where I referred to a visit that I had made to a new Build-To-Order (BTO) development in Nee Soon South earlier this year. [Please refer to \"Debate on Annual Budget Statement\", Official Report, 1 March 2017, Vol 94, Issue No 36.]
I visited the site in my capacity as a Member of Parliament for the constituency. As a Member of Parliament, I normally visit all new BTOs in the neighbourhood when they are completed. For the record, I would also like to declare that I was the Qualified Person for the project. Thank you.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Supplementary Estimates of Expenditure for the Financial Year 1 April 2016 to 31 March 2017","subTitle":"Committee of Supply − Paper Cmd 9 of 2017","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [Allotted Day]. (proc text)]
[Mdm Speaker in the Chair]
The Chairman: Supplementary Estimates of Expenditure for the financial year 1 April 2016 to 31 March 2017, contained in Paper Cmd 9 of 2017. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads E, I, N and S of the Supplementary Main Estimates.
[(proc text) Question, \"That the sums stated for the Heads of Expenditure as shown on page 4 of Paper Cmd 9 of 2017 stand part of the Supplementary Main Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $105,323,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2016 to 31 March 2017 contained in Paper Cmd 9 of 2017,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Question, \"That the sums stated for the Heads S and W, as shown on page 6 of Paper Cmd 9 of 2017, stand part of the Supplementary Development Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $464,478,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2016 to 31 March 2017,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
The Senior Minister of State for Finance (Ms Indranee Rajah): Mdm Speaker, I beg to report that the Committee of Supply has come to certain resolutions.
[(proc text) First Resolution reported, (proc text)]
[(proc text) \"That the sum of $105,323,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2016 to 31 March 2017, contained in Paper Cmd 9 of 2017.\" (proc text)]
[(proc text) Second Resolution reported, (proc text)]
[(proc text) \"That the sum of $464,478,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2016 to 31 March 2017, contained in Paper Cmd 9 of 2017.\" (proc text)]
Ms Indranee Rajah: Mdm Speaker, I beg to move, \"That Parliament doth agree with the Committee on the said resolutions.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolutions accordingly agreed to. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Estimates for the Financial Year 1 April 2017 to 31 March 2018","subTitle":"Committee of Supply − Paper Cmd 8 of 2017","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]
[Mdm 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 J (Ministry of Defence)","subTitle":null,"sectionType":"OS","content":"The Chairman: Head J, Ministry of Defence. Mr Vikram Nair.
Mr Vikram Nair (Sembawang): Madam, I beg to move, \"That the total sum to be allocated for Head J of the Estimates be reduced by $100\".
This year marks the 75th Anniversary of the fall of Singapore in World War II. The events in the 20 years since that day have marked the tumultuous journey of Singapore to Independence.
Even after Independence, security became one of our concerns and National Service (NS) started shortly after. This year, we also celebrate the 50th Anniversary of NS. Happily, Singapore has grown against the backdrop of domestic peace and prospered. However, security threats remain around us.
In the South China Sea, the United States (US) administration has recently mentioned that they see China's developments of installations in the island as illegal and steps may be taken to stop China from accessing them. China has responded by continuing its security patrols and even sailing its aircraft carrier through the region. While I think conflict is not in either party's interest, the threat certainly seems to be looming amongst the great powers.
Closer to the region, along the Korean peninsula, North Korea has carried out its fifth nuclear test in September 2016. Even closer to home, in the Kuala Lumpur airport, a North Korean national, Kim Jong-Nam, a half-brother of North Korea's leader, was killed under mysterious circumstances. It appears that nerve agent VX, classified as a \"weapon of mass destruction\", might have been used in the process.
Meanwhile, terror threats that have captured our imagination in recent years continue. Even as the so-called Islamic State loses ground in Iraq and Syria, the terror attacks continue. Last year, these included attacks in Nice, Yemen, Turkey and Bangladesh, with the death tolls in the hundreds. Some of these were organised attacks, while others were lone wolf attacks by self-radicalised individuals. This makes the reach of terrorism far and wide, with lone wolf attacks being particularly difficult to detect.
In the region, too, not all appears comfortable. Indonesia, for the first time in many years, was wrecked by violent demonstrations in Jakarta in response to remarks made by its governor. But physical threats are not the only threats. Just the last few days, the Ministry of Defence (MINDEF) reported that there was an attack on its cyber systems. Cyberattacks, I think, are a threat that has captured our imagination for a long time but now it seems to have come very close to home.
The security threats we face come from far, wide, in many forms, and MINDEF is very much in the frontline to deal with many of these. For this reason, I would like to open this debate by asking what MINDEF sees as the most salient security challenges facing Singapore today, both conventional and unconventional.
[(proc text) Question proposed. (proc text)]
The Chairman:\tAssoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef (Marine Parade): Madam, can I take both cuts together?
The Chairman: Yes, please.
Assoc Prof Fatimah Lateef: Our Strategic Framework Agreement with the US formalised our bilateral security and defence relationship. This agreement allows the US access to facilities on a rotational basis without bringing up sensitive sovereignty issues. Singapore's sophisticated facilities and political standing in the region allows us to host the US thus.
In recent times, much change and transformation are shaping up. These include the newly elected US President and also a rising China, with certain observable characteristics. Trump's administration leaves a lot of uncertainties on outcomes in these relations. The leadership in both countries is becoming more unpredictable. Whilst China wants to exercise influence, the US stand is also unclear and in limbo. What is MINDEF's view of this complex, transitional issue, which will have implications on our security and growth, both regionally and globally? Are there anticipated changes expected in our defence relations with the US and China, knowing that maintaining strong relations is important for us.
Today, besides traditional security issues, the Association of Southeast Asian Nations (ASEAN) is confronted with complex, non-traditional threats, namely, in the form of terrorism and transnational crimes. These may include trafficking, money laundering, cybercrimes and even people smuggling. The region is also not exempt from threats of nuclear weapons as well.
A closer and stronger cooperation and alignment is necessary, bilaterally as well as with our multilateral partnerships and an understanding must continue to be inculcated and strengthened. One particular area is certainly defence relations.
How is Singapore working with our ASEAN partners and others in the region in the areas of, firstly, conflict prevention, mitigation and mediation; secondly, counter terrorism and transnational crimes curbing; and thirdly, peacekeeping activities and operations, including maritime security? Finally, are there also newer areas of cooperation that we are working on together?
Mr Pritam Singh (Aljunied): Mdm Chairperson, at the recent Seventh Malaysia-Singapore Leaders' Retreat, Prime Minister Lee and Prime Minister Najib reaffirmed their commitment to further strengthen bilateral relations and reiterated the importance of defence cooperation between the two countries and to strengthen bilateral defence cooperation. A month earlier, the latest in a long series of the Semangat Bersatu joint military exercises between the Malaysian and Singaporean armies was successfully concluded.
While it remains important to remember that such exercises were halted when relations turn sour in the past, the reality of the geopolitical environment today emphasises the importance of greater defence cooperation and not less, so as to improve bilateral and regional security.
To that end, is the Ministry considering the introduction of newer confidence-building initiatives with both Malaysia and Indonesia, in addition to the Malacca Straits patrol, the Five Power Defence Arrangement (FPDA) and the ASEAN Defence Ministers' Meeting (ADMM) and ADMM-Plus frameworks? In previous cuts, I have suggested pursuing the prospects of joint peacekeeping initiatives and training for international assignments. Is the Ministry considering newer areas for military-to-military cooperation with Malaysia, beyond those like the Semangat Bersatu exercise series, so as to take advantage of the goodwill arising out of the political relationship with a view to more durable ties in future?
In contrast, while the political relationship with Indonesia is more complex, as a result of the politically diverse and more representative democratic terrain today, the military relationship appears to be an all-weather one despite occasional political turbulence. Yet, 2017 marks the 10th anniversary of the yet to be implemented Defence Cooperation Agreement (DCA) between Singapore and Indonesia.
As Members would remember, DCA was linked to an extradition treaty between both countries. In 2007, Indonesia sought to review DCA after agreeing details with Singapore, while Singapore insisted that negotiations were complete. All this resulted in a package agreement that was stillborn.
In April last year, however, Jakarta confirmed that it was intensifying cooperation in law enforcement in lieu of an extradition treaty and was reported to have given Singapore a list of fugitives, for follow-up and assistance. In light of the 50th Anniversary of Singapore-Indonesia diplomatic ties and the signing of the Eastern Boundary Treaty, what is the Ministry's perspective of initiating fresh discussions on DCA in the name of renewed military cooperation and stronger diplomatic links between both countries?
The Chairman:\tMr Amrin Amin, you have two cuts, please take them together.
Mr Amrin Amin (Sembawang): As a multiracial and multi-religious country, disinformation campaigns and fake news can erode trust among various groups, and this can be exploited by external parties. Minister Ng Eng Hen had also warned in 2013 that some types of false news could have exponential consequences which could undermine our national security. Online misinformation could spread widely during tense or volatile situations, causing confusion and chaos which could weaken the community's resolve and cause disunity. How is MINDEF preparing to respond to such threats in the information domain? What role can each Singaporean play?
Last year, Minister Ng talked about the \"troubled peace\" that we will face in an increasingly volatile and borderless environment. We have witnessed recently alleged state-directed hybrid attacks which combine conventional and unofficial military means with cyber warfare, propaganda and indirect tactics. How prevalent are such attacks in our region and are we vulnerable? What can be done to guard Singapore against such attacks?
Mr Cedric Foo Chee Keng (Pioneer): Madam, today's threats facing Singapore have broadened, as others before me have spoken about. Beyond conventional war, there are areas, including terrorism, cybersecurity, pandemic management, humanitarian assistance and disaster relief.
The year 2016 alone has seen a wide spate of terror attacks around the world. Closer to home, Singapore itself has been targeted by the Jemaah Islamiyah (JI) in the aftermath of 9/11, and also in August last year by a militant group planning to launch a rocket at Singapore's Marina Bay. The unveiling of this foiled terrorist attack highlighted the real possibility of future terrorist attacks in Singapore.
The training syllabus of National Servicemen (NSmen) and full-time National Servicemen (NSFs), as some of us know it, was largely based on conventional armed conflict. I would like to know if the syllabus has since been updated to cover these new areas of threats and challenges. Specifically, I would like to ask the Minister if MINDEF has put in sufficient preparations such that our Singapore Armed Forces (SAF) personnel are trained for roles in counterterrorism and are equipped with the necessary intelligence, skillsets, technology and equipment to deal with terrorism. More importantly, in the event of an attack in Singapore, are our servicemen trained to deal with its aftermath? Indeed, is our population prepared to deal with such an aftermath and relief efforts?
Cybersecurity, as others have pointed out, is also particularly important to Singapore because our vision is to become an even smarter city. The recent breach of our I-net system clearly illustrated our vulnerability and showed us how hard it is to defend against determined hackers. Cyber terrorism can also potentially cripple us in Singapore as we leverage the Internet and conduct increasingly a large part of our daily lives on the Net.
I would also like to ask the Minister how MINDEF and other Government agencies, such as the Cyber Security Agency (CSA), GovTech and so on, are preparing to strengthen our cybersecurity, and what measures are in place to mitigate the damage if breached?
Assoc Prof Fatimah Lateef: Chairman, in the Mumbai terrorist bombing incident not too long ago, the use of mobile telephones and electronic devices featured strongly in the coordination and execution phases. Cyberattacks are, indeed, growing in volume by the day and pose very complex and unique challenges. The emergence of sophisticated information systems has, indeed, transformed the world we live in today. Cyber threats do not fit in readily into the traditional security framework that exists in most modern states today. New approaches are crucial and the appropriate and balanced role of the military is central to this. The work from King's College London breaks down these threats into: (a) espionage, (b) subversion, (c) sabotage, (d) cybercrime and, finally, (e) cyber war, which is less common.
The military response is not the only response but part of a concerted and consolidated approach, including legal and political responses and so on. How is MINDEF approaching this issue and also how is it being coordinated with other agencies in Singapore, such as the law enforcement agencies that we have here? How does this framework fit into our national cybersecurity ecosystem?
Ms Jessica Tan Soon Neo (East Coast): With the pervasive revolution we are experiencing, technology is pervasive and impacting many aspects of our work and life.
Unlike previous industrial revolutions, the Fourth Industrial Revolution is evolving at an exponential pace. This revolution is characterised by the emergence of a range of technologies fusing the physical, digital and biological worlds, creating new ways in which technology is immersed in our lives. These include technological breakthroughs in artificial intelligence (AI), robotics, the Internet of Things, autonomous vehicles, 3D printing, nanotechnology and quantum computing.
We know that technology enables possibilities and it is an important part of MINDEF's transformation effort to build the next-generation SAF. But the differentiator is not just technology but how technology is used. That requires people and talent.
The Defence Technology Community (DTC), which started in 1966, comprising the Defence Science and Technology Agency (DSTA) and DSO National Laboratories (DSO), as well as MINDEF's Future Systems and Technology Directorate, and Defence Industry and Systems Office, has grown to a 5,000-strong community today.
In his speech marking the 50th Anniversary of DTC, President Tony Tan described DTC as standing at the forefront of scientific and engineering discovery. DTC pioneers have played a key role in shaping Singapore's defence technology.
Can the Minister share how MINDEF is tapping on these emerging technologies in support of Singapore's defence? Apart from leveraging technology, how is MINDEF engaging its talent base to build the capacity and capabilities to realise the potential of these emerging technologies?
Ms Joan Pereira (Tanjong Pagar): Chairman, drones are becoming more common and sophisticated. They will grow to be an integral part of our lives due to their many useful applications, from logistics to transport, photography, videos and even patrols. But in the wrong hands, they can be a threat to our national security.
Last month, the Washington Post reported that the Islamic State in Iraq and Syria (ISIS) had established a new unmanned aircraft unit, comprising of fleets of modified drones equipped with bombs.
Drones can be easily bought and transported. They can be launched from almost anywhere and once they are airborne, they can reach any location within a few kilometres in minutes. The smaller ones are almost undetectable in flight. Current radar systems are designed to track larger aircrafts.
Drones can be used to deliver goods. For those with bad intentions, such items may include poisonous powders or gases like sarin, incendiary devices, grenades and bombs.
More worrying, it can be very difficult to trace the owner and operator of a drone. The risk of detection during the process of transporting, launching and operating one is low.
Do we have the controls and infrastructure in place to regulate the access of drones? What is MINDEF's assessment of the threat drones pose to Singapore now and in the future? What measures does the Ministry have to ensure our national security will not be compromised with the increasingly widespread use of drones in our daily lives and in the near future?
Mr Vikram Nair: As a small country, technology is going to be fundamental to our defence. What is equally important is developing our own technology.
I have personally seen how important these changes can be. I was in a group of NSmen that did NS with the M-16. Later on in reservist, I was acquainted with the SAR-21, a wholely modified weapon. I have also seen the wonderful difference this makes. I used to barely pass my shooting tests when I was in NS. With the SAR-21, my entire section became marksmen. So, there is tremendous improvement in productivity with our homegrown weapons.
One of the important things, of course, is whether we can get enough people to develop these weapons, these homegrown technologies. We need people with science, technology, engineering and mathematics (STEM) backgrounds or fields. What is MINDEF doing to ensure that we have enough people with background in STEM to ensure that we will maintain our own capabilities to develop such technology?
Mr Cedric Foo Chee Keng: Mdm Chair, in 1965, Singapore became an Independent state. We set up SAF soon after that. Over the years, we have continually modernised SAF which gave rise to the Second Generation SAF in the 1980s and 1990s. In 2004, we created the Third Generation (3G) SAF. This transformation journey upgraded our systems to becoming an advanced networked force with leading-edge capabilities.
Today, the threats facing Singapore have, indeed, expanded. SAF remains more important than ever to defend Singapore against a broad array of such threats.
Even as the threats have broadened, the Singaporean manpower that SAF can draw upon will soon shrink as our total fertility rate has been low for many years. How would SAF do more with less manpower available to it? How have we leveraged on technologies, as Mr Vikram Nair has spoken about, to improve our productivity, combat effectiveness and, of course, expand the number of marksmen?
Can the Minister provide an overview of the SAF's capabilities and readiness on land, at sea and in the air, and, indeed, in space through satellites, to effectively defend Singapore against such a broad array of threats? MINDEF will have many busy years ahead.
Ms Low Yen Ling (Chua Chu Kang): Mdm Chair, in November last year, Prime Minister Lee spoke of slower economic growth as being the new normal. Indeed, we are going through an economic transition. Trade has been slowing and our local workforce growth is nearing its limits.
As the Finance Minister noted in the Budget Statement, many developed economies going through the same transition have seen their annual gross domestic product growth decelerate to 1% or lower. Against the backdrop of this new normal and, given the growing requirements in areas, such as healthcare and infrastructure, it seems that the current fiscal climate is one of prudence. The Finance Minister noted that with our spending needs increasing, the Government must continue to spend judiciously, emphasise value-for-money and drive innovation in delivery.
Every Ministry has a part to play in ensuring prudent spending in order to better prepare for the future. However, we observe that in the area of defence and security, regional countries' defence spending is at its highest ever. Asia has spent more on its defence than Europe in absolute dollars since 2012. We also observe that the countries in our region will continue to increase the defence spending at even faster rates than the rest of the world in the years ahead. In fact, according to the Stockholm International Peace Research Institute, from 2014 to 2015 alone, there was a 5.4% increase in military expenditure in Asia and Oceania, which far surpasses the 1% increase in defence spending globally.
Our security environment is increasingly complex and unpredictable. I recognise that MINDEF must still invest in the necessary resources to ensure that SAF is able to defend Singapore and Singaporeans against different threats to our security. Can MINDEF elaborate on how it remains prudent whilst still ensuring that SAF has the resources it needs to keep Singapore safe and secure?
The Chairman: Mr Vikram Nair, you can take your two cuts together.
Mr Vikram Nair: Mdm Chair, as a small country, SAF competes for use of land with many other uses. Most recently, the acquisition of Paya Lebar Air Base was announced. I have fond memories of Paya Lebar Air Base because my mother was a psychologist there and I used to go there as a child. That camp will probably not be there in a few years' time.
The camp where I did my NS, Nee Soon Camp, will probably not be functioning as a Basic Military Training (BMT) camp anymore. In fact, I think it has already stopped functioning as one. Bit by bit, we see a long list of training areas and camps that SAF used to use being given up. Whether it is the Air Force, Navy or Army, all three services require land to train. Given local land scarcity and increasing demand for land for other uses, how will SAF ensure that our soldiers receive the necessary training?
As I mentioned earlier, this is also our 50th Anniversary of NS. NS has become a Singapore institution. Not only is it a fundamental part of our national defence, it is also an important part of our national identity. It is the one basis on which men easily relate to one another; and women can easily relate to one another as well talking about what men go through.
One of the fundamental issues we face with NS is our declining population, and cohorts are likely to get smaller and smaller each year. Each NSman will, therefore, become even more precious. What step is MINDEF taking to ensure that each NSman receives adequate training, his potential is well used and whatever capabilities he has will be well maximised?
Related to this are the new form of threats we face. Many of the earlier speakers have alluded to the threat faced by cyberattacks, hybrid warfare, and these threats are likely to become even more important in future. We will need to develop our capabilities to defend against cyberattacks and, potentially, even to use them as part of a counterattack in a broader defence strategy. The fact that MINDEF's own servers were hacked just a few days ago highlights how real and imminent this threat is.
But dealing with this threat also requires people, and the skills required for this are highly specialised and the people with those skills are likely to be few.
What are the recommendations from the Committee on the Future Economy in relation to this? It suggested using NSmen to boost our pool of cyber talent to deal with such threats. I understand that other countries, such as Israel, also use national servicemen to deal with cybersecurity threats.
Can MINDEF provide details on whether it plans to implement these suggestions from the Committee on the Future Economy and, if so, how it plans to do so?
Mr Baey Yam Keng (Tampines): Madam, at the launch of NS50 last month, Minister Ng Eng Hen said that 50 years ago, \"We pledged at the founding of our nation that we would never allow the circumstances that occurred in 1942 when Singapore fell to the Japanese during World War II to recur\". Minister Ng spoke of the contributions of our Pioneer Generation of NSmen, noting that, in their time, \"Singapore was threatened by Konfrontasi, the communist insurgency in Malaya and the possible fallout from the Vietnam War\".
When it was first started, NS was essential for the defence of a young nation. Our Pioneer Generation of NSmen was tasked with defending Singapore at a time when there was barely an SAF to speak of.
Fifty years on, our region has benefited from several decades of relative peace and stability. We have a strong and capable SAF that has protected Singapore's borders and interests. Singapore is thriving and secure.
Around the world, other countries, such as Lithuania, France and Sweden, have ended conscription, but, more recently, some are thinking of bringing it back.
Against this backdrop, what role does NS play for Singapore and is it still as important? How does MINDEF continuously remind people, including would-be enlistees, NSFs, NSmen, as well as their families, employers and the public at large, of the evolving role but continued importance of NS?
Dr Teo Ho Pin (Bukit Panjang): Madam, I wish to seek clarifications from the Ministry on the following:
Due to the changing landscape in warfare, how does MINDEF evolve its training and operations to meet new challenges in urban warfare?
Madam, this year, Singapore celebrates 50 years of NS. Many male Singaporeans who have served NS understand the importance of defending Singapore and have developed the resolve to protect our land.
However, most of them were trained in conventional tactics, such as jungle warfare, which may not be relevant in today's hybrid warfare threats. Hybrid warfare is a military concept that involves using conventional weapons and unconventional tools, such as economic sanctions and communications, to achieve victory without resorting to open war.
Madam, in today's densely built-up areas and changing threats, both within and outside Singapore, the operating environment for warfare has changed quite drastically. Therefore, we need to review our training doctrines and outcomes to develop new capabilities in our defence force.
Besides training our NSFs and regular Servicemen on new capabilities, we also need to develop a training roadmap to upgrade the capabilities of our NSmen.
Madam, in my opinion, we should focus on three areas to strengthen our defence force. First, develop fighting capabilities in built-up areas for urban warfare; second, develop information and communications capabilities to counter cyberattacks; and third, develop attack capabilities to deter or destroy any aggressors to our country.
Mr Lee Yi Shyan (East Coast): Mdm Chair, in June 2014, the Government accepted 30 recommendations proposed by the Committee to Strengthen NS (CSNS). This Committee was made up of members from diverse backgrounds, including Members of this House, all tasked with reviewing how NS could be strengthened to better serve Singapore and Singaporeans.
The CSNS Report cited a survey done by the Institute of Policy Studies where 97% of respondents felt that more could be done to match Servicemen's personal skills and abilities with NS vocations. The Report also noted that CSNS had studied the Finnish and Swiss NS systems, both of which enjoy strong public support, and noted that both the Finns and the Swiss had some form of policy where conscripts could indicate their vocational preferences when enlisted.
Based on these findings, one of the CSNS recommendations was to consider the vocational interests of NSFs when assigning them to vocations. In line with CSNS' recommendations, MINDEF allowed the first cohort of pre-enlistees under the new initiative to indicate vocational preferences when they reported to the Central Manpower Base in November last year.
Can MINDEF provide an update on the vocational interest initiative? Are there other ways in SAF that are being reviewed to better deploy its Servicemen?
Mr Cedric Foo Chee Keng: Madam, NS is a sacred duty for all male Singaporean Citizens and second-generation Permanent Residents. It is the cornerstone of Singapore's defence and security. For many Singaporean men, it is a rite of passage where he leaves the comforts of his home at the young age of 18 and takes on the commitment of defending his country, family and friends. Men, regardless of social status, race or religion, train hand in hand, look out for one another and overcome challenging tasks as one people. This \"social glue\" that is forged through NS is, indeed, a precious outcome for the country.
Given that NSmen give their time to train and defend this nation, it would be right for MINDEF to improve the NS experience. How have MINDEF done this over the years and are there recent initiatives to improve NSmen's engagement and fulfilment? The NS Orbat (Order of Battle) is understandably different because its mission is different from the civilian sector, and we draw the entire cohort of men from the civilian sector. However, to the extent that we can match the private sector interest of the NSmen to their NS vocation, MINDEF will get more out of them, and they more out of NS.
Given the importance of our NSmen to Singapore, we, no doubt, should recognise their contributions and efforts. In fact, we should go further and also recognise those who supported them through NS ‒ parents, spouses, girlfriends and so forth.
I am all for SAF Reservists Association (SAFRA) membership recognition and for also highlighting NS contributions to their employers. I think that has gone a long way to recognising them. But as for monetary rewards, I am ambivalent. We ought to strike the right balance, lest we reduce NS duty to a mere commercial transaction.
Can the Minister highlight what other NS recognition programmes and how else we can do to make NS more fulfilling for our NSmen?
The Minister for Defence (Dr Ng Eng Hen): Madam, let me first thank the many Members for their speeches. As I was listening to them, I had generally two reactions.
One, I am thankful that we have even helped some people improve their marksmanship. We will take credit where credit is due and even when it is not sometimes. I am thankful for the support across the aisles. Whether you are of any political affiliation, Non-Constituency Member, Nominated Member ‒ I am very thankful that the support for defence is across all parties.
The second reaction was one of agreement. In fact, I could agree with everything, almost all points brought up by Members of Parliament (MPs). And if you listen to their speeches, it was a tour de force of the changing security environment − how the world is, indeed, unpredictable; how new threats are on the horizon and even upon us. And yet, because we are under pressure with other increased needs, how can SAF and Singapore respond to these threats with the budget allocated? So, there is total agreement with what the Members said.
Their speeches capture the essence of the new security environment for which Singapore and Singaporeans must, indeed, prepare for, and which SAF must adapt to, to protect our sovereignty and defend our home. Mr Cedric Foo and Dr Teo Ho Pin spoke about this. We have talked about the 3G transformation for a number of years. But a new environment is upon us.
And like Members here, we recognise that this year is a very special year ‒ 75 years since the fall of Singapore, 50 years since NS' inception. Together with all Members here, we want to thank the more than one million committed NSmen who have done their duty faithfully and built a strong SAF to protect Singapore and Singaporeans these past decades. Even as we laud their individual contributions, I agree with Members here that SAF must now undertake critical steps to better protect Singapore in this new security environment. As we did for the 3G SAF transformation efforts, SAF must once again transform to the Next Generation SAF, to be better positioned for the future. Major parts of my speech will focus on this.
I agree with Members here that the world, indeed, is at an inflexion point. Interview any world leader now and he will say so. Even if world leaders do not say so, our citizens can feel that turbulence, that change to come. What is happening?
The last 25 years after the Cold War were marked by rapid globalisation and relative peace despite the threat of extremist terrorism, which we do not underplay. This relative peace was so much so that militaries in the European Union (EU) physically downsized. I remember when I visited Germany, when I first went to their Ministry of Defence, the Bundeswehr was talking about a one-third reduction, a significant reduction. There were good reasons. They wanted to reap the peace dividend of a united Europe against what was perceived to be a declining Russia.
In Asia, it was a good three decades. China's economy grew for 30 years phenomenally at an average of 10% every year. India's economy also grew, albeit at a slower rate of about 6% per annum over a similar period from 1979 for 30 years. This massive growth lifted all boats in the global economy, particularly for Asia, including ASEAN, which grew an average of 6% per annum, well above the global average of 4%.
That era we are witnessing is now changing trajectory, as the benefits of globalisation have not been uniform either within or across countries. And the so-called \"ills\" of globalisation related to migration and job disruption have eroded popular support in many countries, never mind the benefits of hundreds of millions lifted out of poverty.
So, instead of the optimism and hope that greeted the end of the Cold War, uncertainty prevails today. There is uncertainty about what \"America First\" means for global leadership and trade, especially if the erstwhile or current global leader of global trade is not part of the Trans-Pacific Partnership; uncertainty in Asia about how the US-China strategic rivalry will impact Asia and us, as many Members have said before me, especially the pressure on small states like Singapore to choose sides.
Across Europe, still reeling from the global economic crisis in 2008, there is uncertainty about the security threat against some of its members. Many Members have mentioned Sweden, not just one state but across Europe. There is even concern over the existence of EU itself, especially when far-right parties that push for the equivalent of Brexit are gaining ground.
Many Members here have reflected these uncertainties, including Assoc Prof Fatimah Lateef, who asked whether we were vulnerable. Indeed, we are vulnerable. And we should accept that the geopolitics will be turbulent and that Singapore has to prepare for choppy waters. But at the same time, our national strategy to deal with this uncertainty is still sound. It is a simple strategy, one based, firstly, on a strong SAF supported by Total Defence, which we have, with your support, steadily invested resources into every year.
Secondly, as Members here have mentioned, including Mr Pritam Singh, good relations with our neighbours coupled with very strong partnerships with like-minded countries. Some Members, including Mr Pritam Singh, have asked what our relations are with our immediate neighbours, and I will tell you that, generally, they are excellent and, indeed, we cooperate on many fronts. The Malacca Straits Patrol, as was mentioned, marked its 10th anniversary last year. There continues to be solid support for FPDA, now into its 46th year. The 18-nation ADMM-Plus has made good progress, with many working groups dealing with different security challenges.
Mr Pritam Singh asked whether we should have more platforms for cooperation. We are open to that. Anything that improves military-to-military cooperation, we will undertake. But we have to understand that, in some aspects, we wait to be invited, for example, the new Sulu Seas Patrols. We have already availed our resources from our Information Fusion Centre in Changi Naval Base to the Sulu Seas Patrols, because that is part of our interest. For other initiatives, we will lean forward if other countries want us to participate further.
We signed an enhanced DCA with the US in 2015 and the Comprehensive Strategic Partnership with Australia last year. Our bilateral relations with China and India have also grown. In 2014, Members will remember that General Chang Wanquan and I agreed on a \"Four Point Consensus\" in which we affirmed principles and substantive steps to strengthen our bilateral defence cooperation. For India, Minister Manohar Parrikar and I also signed the revised DCA in 2015 and we are now exploring stepping up collaboration in areas, such as maritime security and counterterrorism.
These strong partnerships stand us in good stead but, ultimately, it is the Next Generation SAF's primary mission and responsibility to deal with security threats in this 21st century, as Members here have said. We know that it is fully in our court, that SAF must stand ready. And I agree with Members that this includes the threat of cyberattacks and fake news.
Two years ago, I brought up the issue of hybrid warfare in the Committee of Supply (COS) debates. It was not a very much bandied word; in fact, it was a very uncommon word. But today, as I listened to Members' speeches, it has become so common, so well-known only within a short space of two years. The threat has progressively risen. I just came back from the Munich Security Conference and, there, Chancellor Merkel stated openly that some countries considered hybrid warfare to be legitimate. She is not wrong. Last week, the Financial Times had a full write-up on cyber warfare. Let me quote a salient paragraph.
\"Russia's military does not tend to talk of cyber warfare, as the West does, in tightly proscribed, legally measured actions, but rather discusses the broader concept of an information war, a concept that precedes the Soviet era, in which the toolkit has been brought up to speed for the digital era.\" The article continued that the Russian Defence Minister confirmed the existence of information troops, rumoured for years but long denied by officials. They quoted the Russian Defence Minister, \"Propaganda must be smart, literate and effective,\" he told the Lower House of Parliament. Russia spends $300 million annually on its \"Cyber Army\" of about 1,000 people, according to the Kommersant, their local newspaper.
This is the head of a government − the German government − saying that there are countries around them which consider this legitimate. Defence ministers coming out openly to say that \"This is part of my Orbat and part of my mission.\" There is doctrine, there is training, there is execution. Russia is not alone, as other countries, too, have been reported to have cyber battalions, even cyber divisions in their military and ministries. And I agree completely with Members here that the Next Generation SAF needs to prepare for this environment where state-orchestrated cyber and information campaigns against another state are not only considered legitimate but can be ongoing all the time. The impact of that threat can have real and damaging physical consequences. Let me give Members some examples.
Ukraine's power grid has been hit by several cyberattacks, and one such attack in December 2015 cut off power to an area about 20 times the size of Singapore, and this was in the middle of winter. Estonia is a small nation with about 1.3 million people. Their people and government understand this threat particularly well, because they have been a target of well-orchestrated cyberattacks since 2007 for the last decade, so much so that Estonia plans to make a digital copy of the entire nation, everything from birth records, property deeds, bank data, all government records. They want to do this and store it in another location, a secret location, in the United Kingdom or Luxembourg. At least, they have given you the two places they want to store the information.
Why do they want to do this? Just imagine. We had 850 personal information stolen. Suppose somebody burrows into our Central Provident Fund records, death and registry records, housing records and demolishes them. There will be utter chaos for any nation.
Even elections can be influenced by orchestrated cyberattacks. The Democratic National Committee was hacked in the last US Presidential Elections, with thousands of documents released by unknown sources meant to discredit its candidate. The Financial Times alleged that the Russians have already compromised the servers of political parties in France and Germany which are going to have elections. I do not know how the Financial Times knows this, but they have reported it. Nearer to home, Members mentioned Indonesia, that it did, indeed, inflame ethnic and political tensions. And Indonesia has responded by establishing an agency to counter cybercrime and fake news.
Our best defence against this information warfare is Total Defence, which has stood the test of time. I will leave it to Senior Minister of State Maliki to elaborate how we need to update and refresh Total Defence in response to these hybrid threats.
But modern militaries can no longer choose to ignore these external threats through the digital front. We will be silly to do so and be derelict in our responsibility. As it happens, we have prepared this speech for some weeks now, but MINDEF recently disclosed a breach in its I-net system. Plans for this speech were prepared before we detected that breach. It is not a surprise. It is no revelation when I tell Members that we can expect more such cyberattacks in the future. Indeed, it was that potential of the cyber threat which was recognised early, which is why, even from inception, for SAF, our classified and operational networks were separated from the Internet since we had those systems. We understood then. But the threat is now material and even greater. I agree completely with Members that SAF will need to step up its cyber defences, even as the level of this threat increases.
Mr Cedric Foo asked pointedly about our efforts to combat these new threats. In a clear and unmitigated recognition that the cyber domain is the battlefield today, MINDEF and SAF will stand up a new cyber command. It will be called the Defence Cyber Organisation (DCO) and placed at the highest level of our organisational hierarchy. This new cyber command will be led by a Deputy Secretary. It will comprise four major formations, each commanded by at least a Colonel or flag officer, a General or an Admiral, within MINDEF and SAF.
The cyber command will oversee policies, train cyber units to monitor and defend our networks 24/7 from threats, which will assess vulnerabilities, detect attempted intrusions and breaches in the system. SAF must keep up with the tactics and operations of aggressors in the cyber realm, something which Member Teo Ho Pin spoke about, and because this is a never-ending game, as we do in conventional warfare.
In the steady state, DCO will have about 2,600 soldiers, supported by scientists and engineers in DSTA and DSO. This is a significant build-up from the current numbers and it reflects the importance of this new battlefront. In response to Members, this is a clear signal. We agree with you. SAF and MINDEF will step up.
NSmen − some Members have asked − yes, NSmen will also be trained in vocations for cyber defence. It will be silly for us not to; they are our main resource. And just as security troopers now physically protect key installations, we will deploy these NS cyber defenders to protect our installations together with CSA. Minister Ong Ye Kung will elaborate on this.
Some Members like Ms Jessica Tan have asked about technology and how we will deploy resources. Modern militaries are powered by technology. There is no running away from it, especially so for Singapore. As Members have rightly pointed out, we will see a fall in manpower, and our defence technology organisations will gear up to support these changes.
Mr Vikram Nair asked about our STEM recruitment efforts. He is quite right. We now have a 5,000-strong and growing community of defence engineers and scientists. We will increase such scholarships and awards by 40% by 2025. So, 170 from 120 today. The pinnacle Public Service Commission Scholarship (Engineering) within MINDEF will be awarded this year.
Two new labs will be set up so that we can focus our efforts, just as many Members talked about leveraging technology, which I completely agree with. One lab will be DSO's, which will set up the robotics lab. DSTA's new lab will exploit AI and data analytics. We will give these two new labs a seed grant of $45 million annually as a start, so that they can lead in more experimentation and innovation. We are at the front edge of this, and it is not as if you can buy commercial software easily, so you will have to invest in resources to kickstart the process.
The work on robotics has already begun. Six Singapore Infantry Regiment soldiers are currently experimenting with unmanned aerial and ground vehicles to perform their missions. The Navy has gone further. The Navy is putting Unmanned Surface Vehicles (USVs) which can navigate and avoid collisions autonomously into operations. Let me make this clear: it is not a remote control device, it is an autonomous device.
SAF, working with the Ministry of Home Affairs (MHA), has already deployed and developed countermeasures against potential drone attacks. This is something that Member Joan Pereira asked about. We recognise this threat. This is a real threat. We are monitoring these aspects, such as developments in Iraq and Syria. But we are not taking it lightly and, in fact, this is an issue that was discussed at the Security Policy Review Committee that is chaired by Deputy Prime Minister Teo. And whether you know it or not, in the last National Day Parade that was held at the National Stadium, these systems were already deployed, not only to detect, but countermeasures. Laws, as you will remember, were also recently enacted by this House and legislation gazetted so that we can have powers.
The Analytics and AI Lab will exploit the mega volumes of realtime information that can be derived from the Internet of Things and platforms. We have many platforms, and I agree with Members that not only are we vulnerable, but we need to exploit it. Because the realisable potential is enormous. Let me give Members just one example.
Every single day, there are about 1,500 commercial ships that ply our waters. The Singapore Maritime Crisis Centre uses a particular programme with AI embedded to generate unique signatures for each of these vessels in our waters. These individual signatures are collated from multiple sources, which include social media and other specific information. They are collated, scanned, made sense of and fused to give one picture. Then, it detects deviations from this signature.
This AI-embedded method detected a possible ISIS supporter on board a tanker that was in our waters in 2015. So, among all the ships, among the tens and hundreds of thousands of occupants, cargo, they detected a possible ISIS supporter. That person was barred from disembarking into Singapore. Finding this needle in a big haystack is only possible through modern means.
I also believe that Singapore can take the lead in defence technology even though we are small. So, to achieve that aspiration, DSTA, together with our national universities and the Agency for Science, Technology and Research and Government agencies like GovTech, CSA, the National Research Foundation and the Economic Development Board, will host an inaugural Singapore Defence Technology Summit in 2018.
I asked staff whether there were any global technology summits in the world. They said, \"It does not exist yet\", and I replied, \"Oh, that is good. Let us try.\"
This summit will provide a global platform to invite luminaries, leading figures, to come share their views. It will give us a window into the future. Not only that; it will allow us opportunities to network and increase our access to ideas and innovation. Because you and I know that, for defence, for us, it is existential. We need to deploy technology because other factors are working against us.
Even as we set up a new cyber command and technology labs, even as we want to host the inaugural Singapore Defence Technology Summit, I agree completely with Member Teo Ho Pin that we must never neglect to train the SAF's conventional force against traditional threats and, as Mr Cedric Foo pointed out, terrorism. Many Members agree with that line.
We all know that we have finite land and we are building training facilities overseas, such as in Australia, when we signed the Comprehensive Strategic Partnership. But at the same time, we must have world-class training facilities here. Mr Vikram Nair talked about his childhood memories and how each time certain camps are taken away. There is finite land, we understand the pressures. We do need a minimum baseload of training camps, but we will maximise what we have. And we must guard against over-dependence on overseas training grounds. Recent events have pointed out the dangers. It is not possible for all our NSmen to only train overseas because the bulk of our training is still conducted here, especially for the Army.
Many of the Members here who have done NS will be familiar with the SAF Training Institute (SAFTI) Live Firing Area. You and I remember charging up Peng Kang Hill, for whatever reasons we were told to, and being trained at Fighting On Fortified Objective (FOFO), the fortified hill. These are all in our memories. But the SAFTI Live Firing Area was built in the 1960s, or 50 years ago.
As Members here pointed out, SAF has changed, cities have changed, terrains have changed, the world has changed. Members here asked: \"How is SAF going to respond to this? Is there any new tactic? Is there a new doctrine? Is there new equipment?\" We recognise these. The answer to all your questions is yes. Not only these, we will need training grounds that reflect the missions and operations that SAF will be called upon to conduct. For SAF to train realistically and effectively, we will build a new SAFTI City, because even peacekeeping and humanitarian assistance and disaster relief (HADR) missions are likely to be conducted in built-up cities and infrastructure.
The new SAFTI City will take a decade to complete and cost approximately $900 million. Members have a handout. But, with your permission, Madam, I think it is easier for Members to see what we are going to build. Can I please show the video?
The Chairman:\tYes, please. [A video was shown to hon Members.]
Dr Ng Eng Hen: Thank you, Madam. Many details but let me give Members the broad gist. The idea of what the new SAFTI City wants to accomplish is to allow any battalion to fight across different terrains successively, as they would do in real life missions.
It will, therefore, have both urban and conventional terrain. In the urban setting, low houses and high-rise buildings. In the open terrain, jungles, hills and rivers to cross. But the signature change, because we are using technology, will be state-of-the-art training simulation technologies designed into the operating environment. We are building it from scratch, so that we can do it. There will be interactive targets and battlefield effects, such as artillery attacks, so that our soldiers can train more realistically and get ample feedback about how well they perform. When it is completed, SAFTI City will take our NS training to a much higher level of realism and effectiveness.
For instance, for our soldiers who are involved in Island Defence operations, this SAFTI City will allow them to train in mock-up petrochemical complexes, warehouses, container parks and industrial buildings. Sector 2 will have high-rise and interconnected buildings, basement car parks, a bus interchange and an underground Mass Rapid Transit station which will be useful for Counter Terrorism and High Intensity Urban Operations, as Members talked about. Sector 2 will also include urban rubble for Disaster Relief Operations.
In the areas surrounding SAFTI City, three new Instrumented Battle Circuits (iBACs) will be built. These will help small units train up their fighting skills because there will be video cameras, data analytics to point to what a specific person did or did not do and they will give feedback on each soldier's performance. Different scenarios can be configured for both peace time contingency and conventional military operations.
Ms Low Yen Ling asked how SAF is going to meet its needs with prudent defence spending, and she is absolutely right. We are aware of these budgetary pressures from an ageing society, coupled with slower growth rates for the economy. As I have sketched out to Members here, all these new programmes will need significant and sustained resources over the medium term. They cannot be built in five years. It will take us 10, 15 or maybe even 20 years to fully size up the Next Generation SAF. But we will reprioritise programmes to meet these challenges that we must face.
Here, I am very thankful for Members who have supported us over the years, steadily, so that we can spend steadily on our defence budgets to renew our Orbat and platforms continually, which today allows us to grow for these new areas, which we did not foresee 10-15 years ago.
The Army's refurbished Leopard tanks and Terrexes are young. The Belrex Protected Combat Support Vehicle was introduced last year. The next-generation Armoured Fighting Vehicle will be rolled out in 2019. The Air Force will upgrade its F-16s with new radars and weapons later this year, and the Aster 30 missile system will be deployed to strengthen our air defences. The Navy has new Littoral Mission Vessels and will need to replace two of its Archer Submarines. We will announce the replacement for these submarines later this year.
We have been able to do this because, every year, we commit a sizeable proportion to defence spending, but steadily. No sharp dips, no sharp rises. Even with new demands that I have sketched out for the Next Gen SAF, MINDEF has projected that our defence budget can be maintained on the current trajectory of 3%-4% growth each year, which would allow us to at least keep pace with inflation.
Member Low Yen Ling made a very incisive comment that in our region, Asia's military spending has outstripped that of the EU and has an average growth of 5.4%. Our 3%-4% is below that, but because we have had a longer runway of steady spending, we can keep to the 3%-4% projection. But MINDEF will not hesitate to push for higher spending if there are increasing new demands or if the security environment deteriorates.
MINDEF and SAF are conscious that the Government, with the strong support of Singaporeans, invests substantially into the defence budget each year.
I want to thank Members and Singaporeans for their constant support and I promise you that we will pledge to stretch each defence dollar to the fullest. Where we can, we will cut cost, as some Members have asked. We did it through the Republic of Singapore Navy's new Frigate Ship Management System. This system reduces maintenance time by 93% and saved us $40 million. Another example is the Army's SMART magazine. NSmen here will know that we fire blanks for various reasons. But someone thought, why have blanks, why not have a magazine that can simulate the blank? Indeed, that is what the SMART magazine does. And it will save $1.4 million each year. These measures, big and small, reflect the culture of prudence, using innovation to cut costs without loss of effectiveness for SAF.
Mdm Chair, let me conclude and allow Second Minister Ong Ye Kung and Senior Minister of State Maliki later to address other queries which I have not addressed and which Members have brought up in their speeches.
SAF will develop next-generation capabilities to deal with threats in both the real world and cyberspace. I want to end with a quote from Dr Goh Keng Swee in his last major public speech. He said: \"The most dependable guarantee of our Independence is a strong SAF. A strong SAF, in turn, depends on the political will to make the effort and pay the price.\"
I think Dr Goh's reminder is timeless. Whether we were a poor country as a new nation having to spend on defence or as an up and rising country with other needs and now having to face an ageing society with an uncertain world, at each step, you need to invest in defence and you need political will.
I want to thank the strong commitment of our NSmen, the unwavering support of the Members of this House and the unshakeable resolve of Singaporeans. With these elements, SAF stands ready as guardians of the peace and defenders of our way of life. [Applause.]
Assoc Prof Randolph Tan (Nominated Member): Mdm Chair, SAF has a significant role to play in efforts to improve the health and well-being of all Servicemen, especially the newly-enlisted NSFs within its ranks. Since the enlistment age of 18 also coincides with the age at which smoking is legally permitted, SAF's role in addressing smoking concerns is, therefore, a natural one.
Although smoking prevalence has decreased in Singapore, the proportion of our male population who are smokers is higher than that in many developed countries.
Although I am not aware of any confirmed evidence, the high proportion of males who smoke happens to coincide with anecdotes suggesting that smoking is still highly prevalent among our Servicemen. If true, this would have severe consequences across a range of domains, including healthcare costs and discipline.
The tolerance for smoking as a popular culture within armed services is nothing new and it was even embraced in early popular culture. However, in the context of a modern SAF, it should be viewed as antithetical for many reasons. If the existing bans on smoking in army camps and training areas are not strongly enforced, they could reduce training effectiveness, lead to an erosion of discipline and have potential knock-on effects on performance in the field for combat personnel. There are also the potential difficulties faced by non-smokers if a tolerance of a smoking culture persists in the ranks. For instance, if smoke breaks are permitted, what do non-smokers do?
Although military bases and training areas are off-limits, there is an observable practice of service personnel as well as visitors who gather and smoke outside of camps. This suggests that while smoking controls may be in place, a smoking culture persists. Madam, in case it appears that I am against smoking for Servicemen, I must say clearly that that is not the case. What I am pushing for are clear guidelines so that a culture of indiscipline associated with smoking does not arise.
Given the importance of NS and the costs associated with a lack of enforcement, I would like to urge the Ministry to conduct a study of smoking trends among its Servicemen, examine the impediments to achieving a greater reduction in smoking prevalence and introduce active interventions to root out any smoking culture within bases and in training areas. Madam, I am not suggesting smoking cessation as the primary aim, because this would clearly detract from the role of SAF. However, I strongly urge SAF to take active steps to ensure smoking rates are not inadvertently allowed to increase.
Even though one would not expect SAF to take it upon itself to eliminate smoking, it should develop strategies to encourage Servicemen who smoke to give up the habit. In doing so, I would caution that it should set realistic targets in consultation with experts in the field of smoking addiction. It should also actively discourage Servicemen from gathering in groups to smoke as, say, a form of social interaction. Finally, it should discourage those who are non-smokers at the point of enlistment from picking up smoking during the course of their service.
Ms Joan Pereira: Madam, NS is part and parcel of Singapore life. Yet, often during my interactions with my residents, the subject of safety during NS training comes up, usually from the mothers and grandmothers with sons and grandsons in NS. They have trust in MINDEF but cannot help but worry a little. They worry about their sons' and grandsons' health, physical training, the terrains and handling of weapons. Some unfortunate incidents in the past also serve as reminders of how things could go wrong.
MINDEF has given the assurance that maintaining training safety is a key element of a strong and professional armed force. I am heartened to note that in 2013, SAF added Safety as its eighth core value. A Safety and Systems Review Directorate (SSRD) was formed to oversee the conduct of safety and systems reviews for MINDEF and SAF. SSRD set up its first external review panel, the External Review Panel on SAF Safety (ERPSS) in 2013 to review various aspects of SAF safety over its three-year tenure. I would like to ask what the next step would be now that the tenure has expired.
SAF has consistently reiterated its commitment to safety over the years. However, one should always relook processes. Can MINDEF share what additional efforts have or are being made to make training regimes safer for our NSmen and how these efforts are being communicated to their family members and loved ones to provide greater assurance?
Mr Dennis Tan Lip Fong (Non-Constituency Member): Madam, I understand that NSFs may be allowed to make transport claims, such as taxi claims, for the purpose of odd working hours, to facilitate travel between their unit and home on working days. I believe that this is meant to assist to defray their transport costs, given their limited NS allowance.
For NSmen, not all NS units have a \"stay in\" policy during their In-Camp Training (ICT). Madam, there are NSmen who are not given the option to stay in or could not stay in for good reasons. Some of these NSmen may still be required to book out very late or book in very early due to the demands of their roles. I would like to ask the Minister to consider allowing some of such NSmen to be eligible for transport claims, namely, full-time students or NSmen who are unemployed at the time of ICT.
In last year's COS debate, Minister Ong Ye Kung mentioned that students in local universities are called up for Operationally Ready NS (ORNS) training while studying. These are full-time students and may be no different from NSF personnel in that they are not working and do not have income. I would also like to ask the Minister to consider allowing this benefit to NSmen who are full-time students studying private courses and NSmen who are unemployed at the time of ICT. Their commanders can help administer such claims in accordance with suitable conditions to be stipulated by MINDEF.
I believe that allowing such transport claims will assist some of our NSmen to cope with booking out and booking in at odd hours without having to shoulder any unnecessary financial burden.
Mr Amrin Amin: One of the Committee on the Future Economy (CFE) initiatives was to \"Acquire and Utilise Deep Skills\", which can apply to people serving NS as well.
In 2015, MINDEF and MHA, together with the Singapore Workforce Development Agency, jointly organised the Career Skills Workshop for all NSFs. This arose from the recommendation by the Committee to Strengthen National Service and aims to help NSFs transit to the workforce after they complete full-time NS.
Can MINDEF elaborate on what other initiatives are planned to prepare our NSFs for life after NS?
Ms Low Yen Ling: Madam Chair, last year, Senior Minister of State Dr Maliki Osman spoke about the importance of total defence in countering hybrid threats. He said that, and I quote, \"While Singaporeans are confident that our home and our way of life are safeguarded by an advanced and highly trained SAF, we must know that our security agencies cannot do the job on their own.\"
Last year, I spoke with great concern of the threat to Singapore posed by ISIS and by terrorism more generally during the COS debate in 2016. In the past 12 months, it appears that the news headlines have become even more troubling.
Recent developments have also shed light on a variety of other non-traditional threats to our security. For example, countless cyberattacks around the globe have had serious real-world outcomes. Countries or groups have hacked political parties and institutions with the intent of influencing political outcomes. Cyberattackers have also proven their ability to hack into bank accounts by the thousands and to steal unsuspecting victims of hard-earned money.
We have also learnt of cyber breaches closer to home where personal information has been stolen. Some cyberattacks can be attributed to criminals and mischief makers but the fact that there are people out there with the skills to hurt us through attacks in cyberspace should worry us. Put in the wrong hands, cyberattackers can be trained and employed to wage bigger conflicts against Singapore as a whole.
At the same time, we have learnt how countries and groups with malicious intent can use influence campaigns to divide and damage communities as well. It is clear that a military solution alone cannot address the wide-ranging security challenges that Singaporeans faced. Even the US, which spends more on its military than the next few countries combined, has been a target of large-scale cyberattacks and influence campaigns. Experts argued that the conflict between countries will increasingly be fought in the grey zone between war and peace, where military forces may not be even involved. This means that ordinary citizens could be on the front line of hybrid attacks against Singapore. We have all heard from Minister Ng Eng Hen earlier. He spoke about how some countries even see mounting hybrid warfare as legitimate.
So, in light of all these recent developments, can MINDEF provide its assessment on how hybrid threats have continued to evolve and how we are strengthening total defence to deal with these threats?
Mr Zainal Sapari (Pasir Ris-Punggol):\tMadam, the Advisory Council on Community Relations in Defence (ACCORD) had submitted 18 proposals to MINDEF aimed at boosting support and recognition for NS. As of last year, Senior Minister of State Dr Maliki Bin Osman updated that 14 of the 18 ACCORD proposals had been completed. I would like to praise the Government for their good progress on the ACCORD proposals made thus far. Can MINDEF provide a status update on the implementation of the remaining ACCORD proposals over the last year? What are some challenges and constraints in implementing the remaining proposals?
Mr Lee Yi Shyan: Mdm Chair, Singapore has enjoyed decades of peace and stability. At the COS debate last year, we learnt that our younger generation, unlike the Pioneers, saw events, such as Konfrontasi, racial riots and our road to Independence, as study subjects rather than personal experience or memories.
With that in mind, I would like to ask how MINDEF is working to engage our younger generations of Singaporeans on defence issues and to foster a strong commitment to defence amongst the youth. I note that Senior Minister of State Maliki had launched a \"Commitment to Defence\" Ambassadors programme to allow SAF Pioneers to engage and inspire the younger generation.
Mdm Chair, each generation of Singaporeans will have to confront our own security threats. While we may no longer be in the era of World War II or Konfrontasi, Singapore still faces multifaceted threats to our security. Just in the past year alone, developments from around the world and the region have shown us that threats to our way of life, including from terrorism, cyberattacks and fake news, have become increasingly apparent and are closer to us than we think.
More so than ever, the security challenges of today require the vigilance, unity and resilience not just of SAF and the Home Team, but of all Singaporeans. In light of our rapidly evolving security environment, can we have a status update on MINDEF's Total Defence efforts and how it fits in with other Government efforts, such as SG Secure?
Dr Teo Ho Pin: Madam, I wish to seek clarifications from the Ministry on the following: how does MINDEF reach out and engage Singaporeans on a sustained basis in order to inspire them to learn, practise and be operationally-ready for Total Defence?
Madam, due to the changing landscape of warfare, it is necessary for Singapore to review our Total Defence approach. Based on the defence spending in our region and new threats to our security, we need to build our defence and fighting capabilities in urban and cyber warfare.
Every year, Total Defence Day is observed on 15 February to commemorate the day when Singapore fell to the Japanese in World War II in 1942. Since 1984, a wide range of activities has been organised to remind Singaporeans of the roles they can play in building a strong nation and defending Singapore.
The five pillars of Total Defence, namely, military defence, civil defence, economic defence, social defence and psychological defence, provide a framework to guide Singaporeans to play a part in Total Defence. Despite much effort, there is a general lack of understanding and total defence readiness among Singaporeans.
Many Singaporeans still do not know their roles in the five pillars of Total Defence. The operational readiness of Singaporeans in Total Defence is also lacking.
Madam, I visited Israel many years ago and was, indeed, very impressed by the operational readiness of its people to respond to terrorist attacks and conventional warfare. Both the young and old Israelis are ready to respond to any attacks on their land.
In fact, when I was there, I saw a group of youths armed with rifles patrolling the streets of the city centre. These youths performed their duties very diligently while ensuring safety and security in the areas patrolled.
Madam, I do hope that MINDEF can map out a set of total defence skills which Singaporeans must possess so that they can play a more effective role in contributing to total defence. We need to constantly test the operational readiness of Singaporeans in Total Defence. Total Defence requires practical defence skills. Thus, I would urge MINDEF to make Total Defence real and drive the fighting spirit of Singaporeans.
The Chairman: Second Minister Ong.
The Second Minister for Defence (Mr Ong Ye Kung): Last month, I was in Pulau Tekong for the launch of NS50 − the 50th Anniversary of NS. Enlistees were there on their first day, together with their families, and I joined them for lunch at the cookhouse. The food was very good. I asked \"Is this standard fare?\" They assured me that it is like that every day, but it is not chicken every day. It is a rotation. There is a standard that has been kept up.
I sat with many of the enlistees and their families, spoke to them, asked them if they were ready and how they felt. I sensed amongst the youngsters pride, even eagerness. Many of them shaved their heads and then get enlisted. Though the hairstyle, of shaving your heads, both inside and outside camp, is actually similar. But they were quite eager to do so. I asked the parents how they felt and they all said, every single one, NS is good for their sons.
Times have changed. Support for NS is strong amongst Singaporeans. One key reason is that we see how NS has bonded us all together and toughened up our young. Another important reason is that after 50 years, fathers have gone through NS and know its benefits and now are supportive of their sons going through the same experience. This is truly a duty passing from one generation to the next.
Today, I will talk about how we can better leverage our most precious resource in SAF − NSmen, and how we can enhance the NS experience.
Minister for Defence Dr Ng Eng Hen has spoken about a Next Generation SAF, one where we have to maximise the talent, expertise and contribution of every single Serviceman.
First, we ensure that every soldier is individually \"strong\". That is why we have launched the \"Soldier Strong\" initiative to develop soldiers who are physically strong, psychologically resilient and committed to the defence of Singapore.
Under the \"Soldier Strong\" programme, NSmen will have access to enhanced fitness training programmes at the new Centre for Excellence for Soldier Performance that will be operational at the end of 2017. This centre will focus on fitness regimes, soldier nutrition, prehabilitation regimes to prevent injuries, and rehabilitation to help injured Servicemen recover. The centre will also integrate training packages on resilience to enhance the mental strength of our soldiers.
Assoc Prof Randolph Tan asked how SAF addresses smoking in SAF. We are aligned with national policy on this. We will continue to encourage Servicemen to maintain a healthy lifestyle and reduce their health risk factors. Today, smoking is not allowed in SAF camps and bases, except at designated smoking points. Cigarettes are not sold in any of our camps or bases.
We also partner the Health Promotion Board to conduct smoking cessation workshops for our Servicemen. But soldiers will need to take personal responsibility for their own health, too.
Second, we maximise contributions of NSmen by deploying them better. Mr Lee Yi Shyan asked about this. Technological advancements in SAF have altered the nature of vocations. For certain vocations, automation has greatly reduced the physical demands. One example is the Army's Combat Engineers. In the past, Combat Engineers had to lift and hold heavy interlocking parts of a bridge. Today, these bridges have been replaced with the Mobility 3rd Generation bridge, or M3G. M3G is deployed through a remote interface with the help of a hydraulic arm. In other words, you can now deploy a bridge that can carry up to three five-tonner trucks, mainly by pushing buttons.
Because of these advancements, we have been reviewing vocation requirements and can better deploy our NSFs effectively in accordance with their fitness and abilities.
Third, we take into account the vocational interest of enlistees and, in so doing, better match skills and interests with deployment. Mr Lee Yi Shyan asked about the vocational interest initiative, and Mr Cedric Foo asked how NS can be made more engaging and fulfilling and better recognised by society.
We have implemented the Vocation Interest initiative to promote greater personal ownership by NSFs over their NS experience. Since November last year, pre-enlistees have indicated their interest in 33 vocations across SAF, the Singapore Police Force and the Singapore Civil Defence Force. Their indicated interest will be an additional factor in determining their vocations, together with other considerations, such as suitability, manpower and operational requirements.
There is some perception that enlistees, fresh out of school, when asked to indicate their vocational preference, will avoid the very \"siong\" vocations like Infantry and Guards, and then they will pick non-combat vocations that are more related to their areas of studies. There is some perception of that. That has actually not been the SAF's experience, which is that most enlistees today want to contribute to the best of their abilities and sweat it out if possible. So, in the latest enlistment exercise, 60% of pre-enlistees indicated interest in Infantry and Guards. They know that the training is \"siong\" but good for them.
Mr Vikram Nair asked about cybersecurity. We will develop a new cyber vocation in support of the new cyber command, which Minister Ng has announced. This vocation will allow SAF to tap on the talent available to defend our military networks and systems. NSFs will be deployed to these vocations from August this year.
Our cyber defenders will need to possess a high level of skill, given the increasing frequency and complexity of cyberattacks. They will be entering a very selective and demanding vocation, comparable to the Commandos or Naval Divers. As part of their duties, they will also be supporting CSA in a pilot scheme to defend our critical information infrastructure.
Pre-enlistees who possess these skills will be rigorously selected and identified, possibly through established local cyber competitions, camps and activities, as well as rigorous selection tests. I expect many of these competitions and selection will be done in our education institutions − junior colleges, Institutes of Technical Education and polytechnics. The impact is not just on the few selected for the vocation but will heighten the interest and expertise in cyber and digital technology across the student masses. This will also increase the talent pool for national defence as well as Singapore's growing cyber industry.
Let me now talk about ways to enhance the NS experience. Our efforts over the years have been guided by the recommendations of CSNS.
The first is safety, which is a critical element of training. Ms Joan Pereira asked how we can provide assurance that our NSmen will be safe while serving. Every year, 20,000 families entrust their sons and, increasingly daughters, to us. We take the issue of safety very, very seriously. We worry about the safety of our Sservicemen as much as their mothers and grandmothers. And this is how we keep our safety record very well.
In 2013, MINDEF convened an External Review Panel, comprising prominent safety experts outside of SAF, to review safety in SAF.
The Panel has recently completed this three-year safety review and concluded that our health and safety system are internationally one of the best but, of course, there are areas for improvement. One is to strengthen safety culture at the unit level and another is to further promote open reporting of near-miss incidents. SAF has accepted the Panel's findings and will improve on these areas.
SAF has also been doing more to reassure NSmen's family members and loved ones of our emphasis on safety. Because safety culture must be inculcated at the unit level, outreach must also be done at the unit level.
Take the Naval Diving Unit, for example. It makes a special effort to engage NSmen's family members regularly. For example, upon enlistment, there is a briefing for family members on what this is all about. At the Combat Diving Course graduation ceremony, families are also shown videos of diving training drills plus many other engagements. All these assure parents that while the training programme is tough, it is carried out progressively, professionally and safely.
Because the strength of NS as an institution lies in our NSmen, it is important for society to show our appreciation to them. Mr Cedric Foo asked about such initiatives.
To commemorate NS50, Minister Ng announced last month that each NSman will receive $100 in vouchers and, for ORDN NSmen, a one-year membership to SAFRA or HomeTeamNS. But as we all know and as Mr Cedric Foo has pointed out, vouchers cannot reflect the true value of the commitment and contribution of our Servicemen. It is just a small way for us to say \"Thank you\".
Support and appreciation from society are the strongest form of motivation an NSman can receive. We will encourage this through the NS50 Week in August, where companies and organisations can thank and appreciate the NSmen amongst them. More than 250 organisations will support the month-long recognition campaign from July to the first week of August, through retail discounts, free souvenirs, more NS-friendly human resource policies and rededication ceremonies.
Mr Dennis Tan asked about transport allowances for NSmen who stay out during their ICT. We must recognise that NS is a contribution and sacrifice to the nation, but we also gain from the experience in many intangible ways. Our approach, therefore, is a more general one, to provide an allowance or Service Pay to support the basic personal upkeep of NSFs and NSmen. We regularly review NS allowances to ensure that they remain appropriate. The last review was in December 2015 when it was adjusted upwards.
Mr Amrin Amin asked how MINDEF prepares our NSFs for life after NS. This is an important question because learning new skills is one major aspect of NS. These could be vocational skills, such as driving, maintenance or physical training as an instructor, or soft skills, such as leadership and teamwork. But we can go further by formally accrediting the skills that are learnt in NS which NSmen can use for their future careers.
MINDEF has been working with SkillsFuture Singapore under the Ministry of Education (MOE) on this initiative. From this year, SkillsFuture Singapore will accredit enlistees with skills, such as teamwork, that are honed during BMT. In fact, the teamwork we learn in NS, I think, is far better than many of the commercial workshops. Throughout their full-time NS, they could also be accredited with other competencies, such as leadership, technical or specialist skills.
These achievements will be reflected in the enhanced Certificate of Service given to NSFs on their Operationally Ready Date. By 2018, the Certificate will be made more comprehensive to include additional achievements, such as awards, commendations and milestones, that an NSF acquires during their service, their full-time NS.
While accrediting skills learnt in NS is a useful enhancement of the NS experience, this is neither the main objective nor the key takeaway of NS. NS fulfils the obligation and accords the honour of contributing to the defence of our country. The lasting benefits are the development of character and resilience, and the camaraderie and friendships forged with fellow NSmen. Ultimately, the fact that someone has completed NS well demonstrates his commitment and dedication, especially in a challenging unit that stretches his abilities. This should speak for itself and be valued and recognised by the whole society, including employers.
Today, more than one million Singaporeans have gone through the rite of passage of NS. Mr Baey Yam Keng asked about the continued importance of NS. NS continues to be the cornerstone of our defence and security. Our well-trained and committed NSmen increase our military capability and give us credibility when we speak. Potential adversaries know that if they attack Singapore, it is a fight against a populace, all trained and ready to defend our sovereignty and freedom.
Other countries, such as France and Sweden, have abolished conscription since the end of the Cold War. Yet, in today's increasingly uncertain geopolitical environment, these countries are considering reinstating conscription. In fact, it was just reported in the media yesterday that Sweden has already decided to do so. Others, as mentioned by Mr Baey Yam Keng – Lithuania, the United Arab Emirates and Qatar − have recently legislated mandatory conscription. They recognise that transition from a benign to a hostile geopolitical environment can happen without warning, and a capable and credible military cannot be built overnight. We should learn from these examples and cherish the institution of NS.
Recently, I read an article in the New York Times written by Karl Marlantes, a US Marine Corps veteran of the Vietnam War. Marlantes highlights the importance of the US draft. The draft gave all eligible American men a shared experience fighting for their country, socialised Americans of all backgrounds to the idea that they are all equally American. After the war, the US military abandoned the draft and transitioned to an all-volunteer force. This, Marlantes argues, deprived Americans of the common experience and undermined the American social fabric, which has manifested itself in divisive politics today.
Indeed, as Dr Goh Keng Swee said in 1967, and I quote, \"Nothing creates loyalty and national consciousness more speedily and more thoroughly than participation in defence and membership of the armed forces. The nation-building aspect of defence will be more significant if its participation is spread over all strata of society.\"
The role of NS in nation-building has become ever more salient today as we march forward in this era of globalisation. NS is a core part of the Singaporean identity, not just for males, but for mothers, wives, daughters and girlfriends who supported and encouraged our NSmen in their contribution and sacrifice.
It builds mutual trust within society, and between society and the Government. Our NS50 tagline \"From My Generation to Yours\" anchors the theme that NS is a shared responsibility and remains crucial to Singapore's security and nation-building. The NS system we have today is something we can be collectively proud of and continue to build on in the next 50 years and beyond.
The Chairman: Senior Minister of State Mohamad Maliki.
The Senior Minister of State for Defence (Dr Mohamad Maliki Bin Osman): Mdm Chair, amidst the global trend of drawing boundaries and rejecting outsiders, Singapore stands out with our own brand of multi-ethnicity and multi-religiosity. Our principle of embracing different cultures and faiths while building a shared Singaporean identity has been the foundation of our success and will continue to be so in the years to come. But it must never be taken for granted, as evidenced by our own early history of religious tensions and race riots.
As a small country, we remain vulnerable to pressures from around the world and at home. The pressures will only increase in the face of hybrid warfare. Mr Amrin Amin and Ms Low Yen Ling asked about the threat that hybrid warfare poses to Singapore. The threat is real. It is pervasive. Attackers will continue to devise ways to exploit our growing reliance on technology across all sectors of society, targeting all pillars of our Total Defence. Minister Ng has earlier spoken about the ongoing threat of cyberattacks.
Information attacks are less obvious. But as history has shown, they are clearly effective in targeting all sectors of society. The devastating Maria Hertogh riots in 1950 arose out of newspaper reports that gave competing versions of the facts about legal proceedings and Maria's stay in the convent. These were distortions of facts by the media that was used as a tool of Muslim activism against colonialists. The activists exploited the incident to incite hostility between the Muslim and predominantly European and Eurasian Catholic populations in Singapore then. This resulted in 18 dead, 173 injured and significant property damage. And this took place in an age when news was spread in print or simply by word of mouth.
Information attacks today are far more effective and dangerous, when technology permeates every aspect of our lives. The spread of fake news and misinformation is much accelerated with WhatsApp and Facebook, and its impact is amplified. For example, the owners of the now-defunct site The Real Singapore made a false claim that a Filipino family's complaints had caused a scuffle between the Police and participants at the 2015 Thaipusam procession. It was a distortion of facts, again aimed at inciting hostility among different groups in Singapore. It went viral and could have led to a breakdown in our society, similar to the Maria Hertogh riots but with far greater impact, if not for discerning netizens who reported the \"insensitive article\". It clearly showed that we must act to protect the bonds that hold us together.
Ms Low Yen Ling, Assoc Prof Fatimah Lateef and Mr Amrin Amin asked how we can respond to new hybrid threats. Now in its 33rd year, Total Defence remains our best defence and response. The avenue of threats is new ‒ social media, the Internet and electronic devices, but the threats are the same ‒ distortions and falsehoods. And they target the same vulnerabilities ‒ our differences in race, religion and background. This is why the five pillars and the core message of every Singaporean standing together, playing our part to protect Singapore and our shared way of life continue to be relevant. I am glad that more than 80% of Singaporeans surveyed by MINDEF in 2016 are aware of Total Defence and more than 90% of them agree that it remains important for Singapore.
However, to deal with our new challenges, the way we practise Total Defence has to evolve. The Government will, therefore, make a shift from \"concept to action\", and help Singaporeans understand how they can put Total Defence into action in their everyday lives. And we may find the social and psychological pillars of Total Defence gaining more prominence.
In the cyber domain, each individual is the first line of defence by guarding against phishing and hacking attempts through simple actions, such as using strong passwords for our personal devices and online accounts. Businesses also play an important role by putting in place necessary cybersecurity measures and training their staff to respond to potential risks. The latest threat hijacks Internet of Things devices like security cameras and media players that you might have in your own home. Securing these devices, as well as your phones and laptops is, therefore, the first step in cyber defence.
In the area of fake news, again, each individual is the first line of defence. We need to be discerning and responsible with what we read and decide to share online. When you see a shocking article, for example, a good first step is to Google it and see if it is being reported on reputable news sites like the British Broadcasting Corporation, Reuters or Channel NewsAsia. If you find fake news, it could be as simple as reporting a post to Facebook or commenting to expose the falsehood. There is a movement in Eastern Europe called the Baltic Elves that does just that ‒ fighting trolls and disinformation. I am glad that Singaporeans are also stepping up. For example, when a Whatsapp message was circulating in December last year, warning of potential terrorist attacks in popular shopping areas, many citizens countered by warning that the message was unsubstantiated and should not be circulated. Madam, if I may continue in Malay, please.
(In Malay): [Please refer to Vernacular Speech.] Singaporeans must have confidence in our own community and institutions and be discerning enough to question, check and push back against fake news, instead of simply forwarding it. This is even more so when fake and distorted news have an impact on our security.
This is even more so, given the security challenges we face in the ideological battle with terrorist groups like ISIS in social media. ISIS wants to set up a wilayat in Southeast Asia. It has already formed a militant group called Katibah Nusantara comprising about 1,000 volunteers from Southeast Asia. It has also released several propaganda videos and magazines in Bahasa Malay that are targeted at Muslims in the region.
These are aimed at inciting hostility and violence against other groups in our society that do not fall within ISIS' definition of being Muslim. Our youths who are active on social media are particularly vulnerable; it is not difficult to access videos of beheadings juxtaposed with those showing an idyllic society under ISIS and a fighter explaining why it is every Muslim's duty to join ISIS, followed by a celebration of his martyrdom in death.
Around our region, the growth of extremist groups who spread exclusivist and literalist leanings in Islam poses a significant threat to our multi-religious society. We know of 31 such groups which have pledged allegiance or support for ISIS.
Our Mufti and Muslim groups, such as the Religious Rehabilitation Group (RRG), have made clear that ISIS' methods go against Islam. These Muslim groups have been reaching out to educate the community through counselling, publications and speeches.
At the individual level, when confronted with extremist material, instead of forwarding it, our first instinct should be to check with our Mufti and Islamic authority, Majlis Ugama Islam Singapura (MUIS), and then commenting to counter such views. We should not allow exclusivist thinking to permeate the minds of our community. We must have the psychological resilience to resist and reject materials that we suspect are untrue, extremist or exclusivist, which may have a negative impact on our social cohesion.
(In English): Dr Teo Ho Pin and Mr Lee Yi Shyan rightly noted that Total Defence requires a whole-of-society effort and asked about MINDEF's Total Defence efforts and how we reach out and engage Singaporeans. MINDEF will enhance our extensive partnerships across the public, private and people sectors. First, we will collaborate closely across the Government. Last month, we commemorated Total Defence Day with the Ministry of Communications and Information and the National Archives of Singapore, in conjunction with the opening of the revamped gallery on the Japanese Occupation at the former Ford Factory, where Singapore was surrendered to the Japanese on that day 75 years ago. This was an opportunity to remember our heritage and draw out messages of psychological and social defence and remind Singaporeans why we cannot rely on others to defend our home.
We are working with MHA in SGSecure to encourage Singaporeans to put Total Defence into action in the fight against terrorism, by building community vigilance, cohesion and resilience. Within SAF, we are training our Servicemen to be prepared citizens and active responders, such as by equipping them with basic first aid and firefighting skills, so that they can support the civil pillar of Total Defence in their personal capacity. One such example was Military Expert 1 (ME1) Gregory Poh from the Republic of Singapore Air Force 113 Squadron. In November 2016, ME1 Poh was on his way home from work when he noticed that a child at the playground was having seizures and was not breathing. He administered cardiopulmonary resuscitation immediately, continued to keep the child's condition stable and assisted the paramedics when they arrived.
Beyond SAF, we will roll out a Total Defence strategy card game, \"Guardians of the City\", to all secondary school uniformed groups this year. Members can pick up a set and try out for yourselves from the library later on. This game, an example of a ground-up initiative, was designed by Mr Wan Junyan, an SGfuture participant, who was inspired by discussions with students on how to convey Total Defence lessons in a more engaging manner and developed in collaboration with MOE and MHA. It educates youths on how society can come together to better prepare for terrorist threats based on real-life examples, respond to them and recover from them. We hope that through the game, our youths will grow to become Total Defence advocates amongst their peers.
Our younger generation will shape the future of Singapore. We want to ensure that they have the same commitment to Total Defence and the right instincts to face future threats and challenges.
MINDEF is, therefore, working with the Ministry of Culture, Community and Youth's Committee on Citizen Engagement and partners like the National Youth Council to engage youths in conversations on what it takes to build up Singapore's psychological defence from their perspectives.
I hope there will be many more youths like Nurul Fatimah. She was a 14-year-old student in a local madrasah when she decided to attend CampTeen, which encourages cross-cultural friendships amongst students. She says, \"For nine years of my life, I lived thinking that it was best to just stay within my comfort zone, without thinking of the importance of mixing around in this multicultural land. Now, I know that common space is really significant to our generation today, but the bonds are not easily made.\" Now 17, and inspired by her experience, she is an active youth advocate with OnePeople.sg, which runs CampTeen.
Second, we will engage economic and community leaders through ACCORD. Mr Zainal Sapari asked for an update on the implementation of the ACCORD proposals. As Chairman of ACCORD, I am pleased to update that we have successfully implemented all 18 proposals involving various stakeholders − employers and businesses, families and communities, and educational institutions. For example, under the \"We Support YOU in NS\" initiative, the ACCORD Family and Community Council has been encouraging merchants and retailers to show their support for NSmen by offering discounts and benefits. Dr Cheng Eng Wah, iDental's founder and Principal Dental Surgeon, readily agreed to have promotions on metal braces for NSFs when his team raised this initiative to him. Alluding to a Chinese saying 有 国 才 有 家, Dr Cheng explained: \"There is no home without a nation. I believe we need a strong army to punch above our weight.\" And he is not alone. In a recent survey, 96% of employers agreed that NS provides the security needed for Singapore to prosper.
ACCORD members have also helped us to reach out to new citizens and Permanent Residents who will become an integral part of our society. For example, the Global Indian International School and United World College (Southeast Asia), whose principals are ACCORD members, organised sharing sessions to provide more than 700 students and parents with information on the NS enlistment process. Alumni from these schools who have been through NS also returned to share their experiences and communicate the importance of NS for Singapore's defence.
Third, we will reach out to individuals directly, because they can be empowered to initiate their own Total Defence efforts. Ms Priya Shahane, Chief Human Resources officer of AXA Singapore, introduced a system to plan for coverage of duties in advance when an employee is called up for ICT in her company. This allowed AXA employees like Mr Pan Chee Keong, an Assistant Manager, to go for ICT without worrying about work piling up. Ms Shahane also introduced measures to grant time off work for NSmen employees to prepare for the individual physical proficiency test (IPPT) and reward gold achievers with an additional half day of annual leave, which encourages them to do better in their IPPT. In recognition of her efforts, Ms Shahane was awarded the NS Advocate Award for Individuals in 2016.
Madam, personally, I am confident that my fellow Singaporeans will play their part and strengthen our Total Defence and national spirit. We saw this when a 40-metre tall and 6.5-metre wide Tembusu tree toppled at the Singapore Botanic Gardens last month. At least a hundred of those present rushed forward to push the branches and logs away to help those who were under the tree when it fell. This immediate civic-minded response gives me confidence that we will be able to respond appropriately to any challenges, support one another and recover quickly after any crisis.
Madam, as we commemorate the 75th anniversary of the fall of Singapore this year, we are reminded of our vulnerability. We have responded with 50 years of NS and a strong SAF, and all Singaporeans coming together for Total Defence. The future may be uncertain, the threats more unpredictable. But our resolve is resolute. We will stand together with resilience and confidence, just as we have done before, ride out any crisis and emerge stronger as one people.
The Chairman:\tWe have a bit of time for clarifications. Mr Vikram Nair.
Mr Vikram Nair:\tThere have been many interesting announcements. The most interesting, from my perspective, was the one on the new division or group being set up to deal with cyberattacks and fake news. I think it is going to be a big group of about 2,600 people. This is an organisation being created almost\tde novo. Are there any other models for us to follow or are we just pioneering this on our own? If we are pioneering this on our own, then it is going to start in about a year's time. Do we have the capabilities within our existing people to do that? If not, how would we be developing this, because this is quite ground-breaking?
Dr Ng Eng Hen: Madam, it is not quite de novo. You would remember in 2013, we announced the set-up of the Cyber Defence Operations Hub. We have been monitoring this. Obviously, with many of our systems being dependent on computer systems, data linkages and, particularly for all militaries and especially for the Singapore military because we are leveraging technology, we recognise that our strength can be exploited as a weakness.
We have been studying other models. I have gone to France to look at them. They have a fairly well-developed system and there are different organisational structures, not only for the military but actually, more importantly, how the military coordinates as part of a national cyber defence. The very nature of the digital domain is its porosity and connectivity and you cannot very well just protect one segment because you will be affected.
There are different models that MINDEF, SAF and the Government as a whole have studied, and that was the reason why the Cyber Security Agency was set up in the Prime Minister's Office (PMO). If you look at other countries, some of them are with the prime minister's office, some of them with the Ministry of Defence, but we have chosen to have a tiered structure where CSA is a national defence for cybersecurity under PMO and MCI. This cyber command is another layer which protects primarily MINDEF and SAF. But because we recognise that our cyber units, our cyber soldiers can be trained and can be deployed as they do for physical key installations in Singapore; that is the concept we are extending. So, not quite de novo. We are ramping up significantly because the level of the threats has risen and we recognise that the damage can be material.
The Chairman: Mr Cedric Foo.
Mr Cedric Foo Chee Keng: About this SAFTI new training area revamp, I think it is a great idea and overdue. At the same time, I would like to ask the Minister if he would consider two points. One is when we move the grounds and put up new buildings and all that, that we do not lose the history and the old names that were used in the old training grounds. We will do us a big disservice if Peng Kang Hill is changed to another name.
Secondly, because we are building it from scratch, we now have the ability not just to make sure that it is productive and combat-effective, we can also think about solders' safety and see how we can weave it into the design.
Dr Ng Eng Hen: Madam, I thought the Member's points were particularly relevant. I agree with him. We want some resonance, and it is across the system and across all our agencies. Even as we update ourselves, refresh our systems to meet new needs, we want to retain a sense of history that can carry across generations. So, I will put that to SAF and leave it to them how they will do it. I do not think they will be physically removing some hills or features, but even if they do, they can convert hills to street names, I suppose, but I will leave it to them.
The Member's second point is a significant one on safety. Mr Foo is absolutely correct. It is much easier and, just like buildings, to design safety in. I learnt that when I was the Manpower Minister and had to deal with injuries and deaths at the workplace. For example, they said some buildings are designed and are beautiful but very hard to clean. It is much easier to design safety in across not only just the building but the lifetime maintenance of that building. In this case, Mr Foo is saying, during your operations, can you design it, so that, for instance, your video feedback actually gives you an alert to say this is an unsafe zone? That is one example. So, yes, that will be taken into consideration. I thank the Member for the feedback. We will take it in.
The Chairman:\tMr Nair, would you like to withdraw your amendment?
Mr Vikram Nair:\tI would like to thank Minister Ng Eng Hen, Second Minister Ong Ye Kung and Senior Minister of State Dr Mohamad Maliki Bin Osman for dealing with a wide range of questions that we have raised. We are very heartened to hear that NS, which we are celebrating our 50th Anniversary this year, a timeless institution, is still very strong. I am particularly heartened to hear that the young men are very keen to do combat vocations. I wish I could say the same for my generation but not sure it would be true. Luckily, we had no surveys back then. But I am particularly heartened because, in my personal anecdotal experience, I know people coming up saying they want to join the Naval Diving Unit as well.
The Chairman:\tMr Nair, just withdraw the amendment.
Mr Vikram Nair: Okay, Madam. Sorry, recounting NS stories. I thank the Ministry and the officials as well for all their support for our defence. I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $13,612,805,500 for Head J ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $839,000,000 for Head J ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply − Head P (Ministry of Home Affairs)","subTitle":null,"sectionType":"OS","content":"Mr Christopher de Souza (Holland-Bukit Timah): Madam Chair, I beg to move, \"That the total sum to be allocated for Head P of the Estimates be reduced by $100.\"
Last year, 2016, the clear and present danger of terrorism was made even clearer to us in Singapore. Why do I say this? In May 2016, it was revealed that \"eight radicalised Bangladeshi men were detained under the Internal Security Act (ISA) for plotting terror attacks in their own country, that they would meet in parks or open fields and share large amounts of radical propaganda and videos.\" Another five investigated under the ISA were repatriated.
It was reported that Singapore could have been a target. Essentially, if they had been directed to attack in Singapore, they would have attacked.
In August 2016, the Indonesian police foiled the plan for a rocket attack on Marina Bay. It cannot get clearer. The threat of terrorism is real and the battle against it is for every Singaporean to bear. Being vigilant against an attack and staying united for an attack vest on our shores is key. If we stay united as one people, we will be successful in denying any terrorist his victory. We are very fortunate to have a dedicated, professional and reliable Home Team. That Home Team is a key pillar in our battle against terrorism, but it is not a fight for that team to bear alone.
Singaporeans must play their part alongside dedicated Home Team officers to keep vigilant against terror threats. Such threats come in many forms ‒ acts of actual violence, radical ideology preaching discord, funding of terror cells or glorification through the Internet of senseless causes. Couple all of that with the trend around the world, in which governments start to look inward and become fervently nationalistic. These trends and movements could fuel further global discord among peoples of different cultures and ethnicity.
Singapore and Singaporeans must resist these negative global trends and tides and never allow them to envelope Singapore. Thankfully, through initiatives, such as the ethnic integration programme in public housing and Racial Harmony Day, the different cultures and ethnic groups in Singapore are able to enjoy harmonious relationships. Nevertheless, we must continue to work at it. We cannot take it for granted. Why? Because in multiracial societies, where peoples of different creeds and races intermingle, the risk of flashpoints is higher. Singapore is no exception, and we have to be careful when we encounter incidents which may become potential flashpoints.
For example, as recent as this week, I read that a Police report was made about an imam who was alleged to have made offensive remarks against Christians and Jews. It was assuring to read in that same report that the Islamic Religious Council of Singapore (MUIS) took the courageous and generous position when it stated that, \"MUIS takes a serious view of any behaviour or speech which promotes feelings of enmity, hatred or ill-will among different faith communities.\" What we have attained, what we have enjoyed, we need to maintain, nurture and strengthen.
In light of these challenges, I seek an update from the good Minister, in particular, how is the Ministry of Home Affairs (MHA): one, tracking overseas terror threats; two, isolating potential threats from within Singapore society; three, reinforcing our enforcement response, such as manpower, equipment and the updating of our standard operating procedures against such threats; four, bolstering our communal response by strengthening multiracialism and national unity should a terror threat vest in Singapore.
Furthermore, one, how can we carefully manage potential flashpoints? Let me repeat that because it is important. How can we carefully manage potential flashpoint incidents and strengthen our racial and religious harmony which is vital to Singapore in peacetime as well as in the aftermath of a terrorist attack? Also, how is MHA ensuring Singaporeans continue to welcome globalisation instead of turning isolationist, since we all know an isolationist Singapore will lead to her severe detriment.
Let us not let our guard down. Let us strengthen our fight against terrorism and let us stand together with our dedicated Home Team in this collective fight against those who seek to do us harm.
[(proc text) Question proposed. (proc text)]
The Chairman: Dr Tan Wu Meng, please take your two cuts together.
Dr Tan Wu Meng (Jurong): The terrorism threat remains alive and real. We need to be vigilant so that, as a society, we are ready for whatever comes our way ‒ leaders, public servants, citizens standing together as one.
Can the Ministry update us on the threat situation internationally, regionally, domestically? We also need to actively study the new and innovative terror tactics that we are reading about around the world, so that we can learn how best to counter them. Tactics that are using household items, such as knives, tactics that use easily available equipment and vehicles as weapons. Likewise, we also need to protect our society from self-radicalisation, especially with the proliferation of online recruitment, extremist propaganda and social media tactics.
Looking to our landscape, we are densely populated. Many population centres happen to be soft targets for those seeking to do us harm, such as schools with young children, shopping centres with members of the public, Mass Rapid Transit and bus stations which, if shut down, could affect a wide transport network and even our hospitals, with the sick and elderly who cannot be evacuated as easily as the able-bodied. Many of these population centres are in our Housing and Development Board (HDB) heartlands.
All these pose unique challenges for rapid responses against a terrorist attack. Can MHA update us on how we are upgrading our counterterror efforts and how we are enhancing Home Team capabilities and SGSecure so that, as a whole of society, we are equipped to deter and, if needed, respond?
Mr Patrick Tay Teck Guan (West Coast): Since we launched the SGSecure movement last year, can MHA share the progress of its outreach efforts, in particular, in the community as well as in workplaces? I urge MHA to work with the community and businesses to recruit SGSecure Ambassadors at every HDB block and at every workplace. These ambassadors can help spread the SGSecure message and be trained in first aid, automated external defibrillators (AED) and skills to handle the community or workplace response in the event of a terrorist attack, especially the day after.
In my Boon Lay constituency, we have recruited about 500 SGSecure ambassadors last November and look forward to training them this year. In fact, the first training session starts in a fortnight. I hope MHA can give full support through funding the training, exercises and our outreach to the residents and community.
Ms Rahayu Mahzam (Jurong): From my conversations with people, there appears to be an increased awareness of SGSecure. It is important to ensure that everyone remains vigilant and aware of what needs to be done in the event of a terror attack. I, therefore, would like to know the update on the implementation of SGSecure. Are there means to measure the level of awareness and preparedness of the community?
I note grassroots and community leaders are being trained to equip them with the knowledge and skills to handle a terror crisis. Multiracial and multi-religious sensitivities may arise and community leaders play an important role to ensure that the community stays strong and united. The Community Emergency and Engagement Committees (C2E Committees) and the Inter-Racial and Religious Confidence Circles (IRCCs) have undergone some exercises to learn about handling the situation in the days following a terror attack. I was fortunate to observe these exercises and would like to highlight the following.
One, the exercises were done separately for the C2E committees and IRCCs but there was overlap in the grassroots leaders and community organisations involved. The exercises were also similar and there did not appear to be a clear delineation of the roles the different committees play. Perhaps, there could be better coordination of what is to be done by the different groups on the ground.
Two, the information on the community networks that can be relied on to provide support during times of emergency was not updated. Following from the exercises, the community leaders were asked to continue building and updating their networks within their local communities. It would be useful to provide them with specific guidance on how they should go about doing this.
Three, there were queries on the chain of command and the extent to which the community can take initiatives. Perhaps, more resolution can be given in future trainings.
I believe coordination of the exercises can be improved. I would like to hear the Ministry's efforts to train the community leaders.
On the issue of multiracial and multi-religious sensitivities which I spoke about earlier, like Mr de Souza, I also read about the recent case where an imam was alleged to have made offensive remarks about Christians and Jews, and we have seen reactions from netizens. Would the Ministry be able to give information on this case?
Mr Zainal Sapari (Pasir Ris-Punggol): Madam, the private security industry is increasingly becoming an important part of our security landscape. I fully support the mandatory annual security exercise that was introduced in 2009 to ensure higher standards of security requirement can be maintained. That said, I would like to ask the Minister for Home Affairs whether a review could be done on this annual grading exercise.
Firstly, I would like to call on MHA to ensure greater transparency of standards. Could MHA provide clearer guidelines and share the benchmarking process used in the assessment?
Secondly, private security agencies have expressed their concerns with regard to the frequency of this grading exercise, which is conducted annually from June to May, meaning that agencies are perpetually in a grading mode. Considering that most of the 250 agencies are small and medium enterprises, perhaps the Police Licensing and Regulatory Department (PLRD) can look at reviewing the timelines in between the grading exercises.
Finally, the union is also concerned with the perception that the grading exercise seems to be inconsistent in their ratings based on anecdotal examples shared by the unionised private security agencies. Some agencies risk losing their right to secure a site because their grading slipped a notch. The officers consequently will either have to change employers to stay on the same site or have to relocate to another site, all of which create considerable constraints. We hope MHA or PLRD can review this as well.
The Chairman: Ms Sylvia Lim, you have three cuts. Please take them together.
Ms Sylvia Lim (Aljunied): Mdm Chair, first, the Auxiliary Police. The need for additional resources for policing is clear. The population of Singapore is now more than 5.6 million, compared to 4.4 million in 2006, a 1.2 million increase over 10 years. More people mean a higher population density, increased interaction and proximity, more potential for crime and more assets to protect.
Over the last few decades, the role of the Auxiliary Police has expanded exponentially. From an initial brief of static guarding of key installations to accompanying cash in transit, the Auxiliary Police are now in roles that require them to interact with the public in a variety of scenarios, such as crowd control, management of prisoners, checkpoint security and policing liquor control zones. The training of the Auxiliary Police has been enhanced, but is it adequate to ensure that the Auxiliary Police Officers (APOs) are equipped to meet the challenging needs of handling complex and unpredictable situations? Policing Singapore is complicated by the fact that our population consists of 1.7 million non-resident foreigners.
In answer to a Parliamentary Question I filed, the Minister has confirmed that Certis Cisco has obtained approval to recruit officers from Taiwan due to manpower shortages. I wonder whether the shortage will lead to a compromise in recruitment standards. Several Singaporeans have expressed to me their concern about foreign APOs walking around with firearms. Related concerns also crossed my mind, in particular, in the wake of the Little India riots in 2013, when it was clear from the incident reports that quite a number of the APOs at the scene were not Singaporeans. What security risk is posed by having foreign APOs carrying firearms? What risk mitigation measures are in place? What about psychological testing? Is it time to consider arming APOs, especially fresh recruits from overseas, with less lethal weapons, such as stun guns?
Next, I move on to safeguards during Police investigations. Singaporeans want the Police to be effective. At the same time, the criminal justice system needs to balance state power with due process and ensure that investigations are conducted lawfully, with suspects accorded their constitutional and legal rights. One of the safeguards proposed by myself and others during previous Committee of Supply (COS) debates was to video-record the process of the recording of statements from suspects.
As argued previously, such a procedure will also save the state from spending time to address frivolous challenges in Court and protect officers from false allegations. The Ministry had indicated that it would do a pilot project in the first quarter of 2016.
Last October, I was disappointed to learn from a Parliamentary answer that the Government had decided to put the initiative on hold, pending putting the legal framework in place. Could the Minister elaborate on the rationale and when we can expect the pilot to commence?
Secondly, the right to counsel upon arrest has also been debated in the past. Article 9 of the Constitution guarantees the right to consult the legal practitioner to a person under arrest, but case law has held that this right is subject to the exigencies of Police investigations. During the COS debate 10 years ago, in 2007, there was a pilot announced to give early access to counsel. What is the status of that initiative?
Finally, there is an issue about the length taken to complete the investigations. In some cases, the individual under investigation may suffer in his ability to earn a livelihood while the investigation continues, for example, when a person's vocational licence to be a public bus or taxi driver is suspended or revoked during the pendency of investigations. Sometimes, cases hang for months with no visible investigative step being taken. This leaves the accused person in indefinite limbo and unable to earn a living. Could there be a monitoring mechanism to ensure that such cases are investigated with a certain haste?
Finally, I wish to touch on young suspects and their rights in a criminal justice system, in particular, those aged 16 and 18.
Singapore has acceded to the Convention of the Rights of the Child (CRC). This is one of the few human rights treaties that Singapore has acceded to, showing the importance our country places on this set of international obligations. Article 1 of CRC defines children as persons below the age of 18. Under Article 4 of CRC, Singapore is obliged to undertake all appropriate legislative, administrative and other measures for the implementation of the rights recognised in the Convention.
However, Madam Chair, our Children and Young Persons Act (CYPA) defines a child to be a person below the age of 14 and a young person to be between the ages of 14 and 16. This means that children between the ages of 16 and 18 are not covered by the protection under CYPA. For instance, children in Singapore between 16 and 18 years old are not protected by section 35 of the CYPA which prevents the media from publishing their particulars or identifying details of those under 16 years old involved in Court proceedings. This gap in our law is not consistent with our CRC obligations as Article 40 obliges state parties to ensure that every child up to the age of 18 has his/her privacy fully respected during criminal proceedings.
Children between 16 and 18 years old are also not protected by section 29 of CYPA which protects those under 16 years old from being detained for adult offences. This gap in our law is again not consistent with our obligations under CRC as Article 37 obliges state parties to ensure that every child up to the age of 18 is detained and separated from adults.
Consider this, at 17 years old, many of our sons and daughters are still wearing school uniforms in junior college or attending polytechnic or Institute of Technical Education. Until they reach the age of 18, surely they could be given the full protections Singapore has signed up to provide under CRC. Otherwise, what is the point of signing this treaty?
Madam, turning to the framework we do have, I note the Minister's commitment to extend the Appropriate Adult scheme to young suspects under the age of 16 in the light of the suicide of 14-year-old Benjamin Lim. I hope the Ministry will have a legislative framework to entrench the Appropriate Adult scheme and extend it to those below 18. Will the Ministry also consider admitting parents of such suspects to act as Appropriate Adults?
Dr Tan Wu Meng: Many drug offenders are already disadvantaged socio-economically − troubled backgrounds, disrupted lives. I have met some at my Meet-the-People Sessions in my constituency and what they tell me is that it is not just a stigma that gets in the way of returning to society meaningfully but also the skills gaps, especially when industry and job practices change during the years of incarceration. So, this is why, in prison, rehabilitation must continue to include skills training to help employability upon release.
I would like to ask if MHA is studying the skills background of incarcerated Singaporeans. In particular, what efforts are being made to improve the skills of our fellow Singaporeans who are in prison, so that they can have better odds of finding a job and reintegrating into society upon release?
Mr Leon Perera (Non-Constituency Member): Mdm Chairperson, the role of the Singapore Prison Service (SPS) to be a place where strayed lives can be steered back on course is crucial and deserves the support of the whole of society.
In August last year, during the debate on the SkillsFuture Singapore Agency Bill, I asked the Minister for Education to consider how to push training and education content via, say, an e-learning platform to those serving prison sentences. I am raising this again and I would like to highlight two statistics from the Singapore Prison Service.
In 2014 to 2015, despite only a 1% decline in the total number of inmates, there was a 7% decline in the number of inmates trained in 2014 and a 6% decline in 2015. There was also a 4% decline in the number of inmates engaged in work programmes.
Why are fewer inmates getting access to training programmes? Can we consider different ways of enabling training for prisoners? Can SkillsFuture support our prisons by providing more platforms for education and training content for our inmates?
Pushing training to prisoners will facilitate the rehabilitation process help make them productive workers and even, possibly, entrepreneurs in their future. SkillsFuture can be used for e-learning or for training conducted within incarceration or detention premises. In the United States (US), we hear examples of prisoners obtaining university degrees while serving their sentences. As SPS says, serving time should never be a waste of time.
The Chairman: Mr Louis Ng, please take your two cuts together.
Mr Louis Ng Kok Kwang (Nee Soon): I visited a Drug Rehabilitation Centre (DRC) and saw first-hand the work our Captains of Life do. While the recidivism rate has remained stable at around 26%, it is worrying to me that almost 60% of drug abusers arrested were repeat offenders. Even more worrying is that statistics that the more times we incarcerate someone for drug offences, the higher the chances he or she will be incarcerated again.
A significant focus of the rehabilitation process is to ensure that inmates secure a job when they are released. I feel an equally important factor is whether they have family support when they are released. Only a third of DRC inmates use their full quota of two 30-minute visits per month. This is a clear sign that inmates lack family support and this is a problem that might have existed prior to their drug problem. Strained family ties were perhaps one of the reasons they consumed drugs in the first place. We need to address the root of the problem.
Can the Minister share what plans it has to strengthen family bonds during rehabilitation? Can we provide more classes on parenting, better communication with spouses and other such classes? Can we strengthen the current family programme, especially the joint session component?
Next, I recently watched a very touching video of children of prisoners reuniting with their fathers behind bars for a day in a US prison. I watched fathers in tears as they realised how much they missed their children and perhaps how their actions have hurt their children. I saw in the eyes of the fathers the resolve to be rehabilitated so that they can spend not just one day but the rest of their lives with their children. And I also saw what that one day meant for the children as, ultimately, they are the real victims. I strongly feel we should introduce this programme in our prisons. With stronger family bonds, a prisoner's rehabilitation process will be more effective.
Will the Minister consider piloting this programme in our prisons? I have seen too many residents whose spouses are repeatedly incarcerated and how their families have been torn apart. A key part of the rehabilitation has to be rebuilding these bonds.
Ms Rahayu Mahzam: As we navigate the uncertain times ahead and the future economy, we must always remember the vulnerable in our community and ensure that there are continued efforts to support them. One group that we should not lose sight of are those incarcerated and their families. I believe it is important to continue ensuring that there are proper rehabilitation and support upon release from prison so that they can continue living their lives and participate in the future economy just like everyone else. Difficulties in getting a job or stable income in a challenging economy can contribute towards some segments of the community succumbing to committing a crime, drug abuse or re-offend.
In this regard, I believe it is important to review the efforts in tackling offending, re-offending and drug abuse. We should look at these holistically and see if there can be collaborations and partnerships with community organisations. Within the Malay/Muslim community, we see organisations, such as Pertapis and Jamiyah, supporting this effort.
More can be done to involve some Malay/Muslim organisations in helping individuals and families in this area. I would like to ask about the Ministry's current efforts with the Malay/Muslim organisations and whether there are plans to work with them further on this matter.
Mr Christopher de Souza: Madam, in 2016, the number of new drug abusers arrested increased by 3% from 2015, out of which, close to two-thirds were below 30 years of age. It is a matter of concern and we should be concerned.
The method of obtaining drugs has also changed. Most alarmingly, the accessibility of the Internet has been exploited by drug traffickers. In fact, the number of people arrested for buying drugs and drug-related paraphernalia online increased significantly from just 30 in 2015 to 201 in 2016. Most of those found to have obtained drugs or drug-related paraphernalia online were between the ages of 20 and 39.
In light of these recent developments, what measures are MHA and the Central Narcotics Bureau (CNB) taking action to deter the supply of drugs into Singapore? What percentage of the total prison population are serving sentences for drug-related offences?
In order to tackle the drug problem holistically, rehabilitation is also vital. After the drug abusers are put into DRCs, what measures are taken to rehabilitate them with the mind to reduce recidivism rates?
Dr Tan Wu Meng:\tCan I take both cuts together?
The Chairman: Yes, please.
Dr Tan Wu Meng: When a drug offender is incarcerated, it is a double tragedy − one life poisoned by drugs and drug culture; the family affected, too, especially the children.
I would like to ask whether the Ministry is studying the socio-economic outcomes of the children of drug offenders? Is there a higher risk of intergenerational offending or becoming incarcerated, too, all things being equal? And how can we prevent a cycle of tragedy?
Going upstream, we see that, in the West, there is an emerging movement to sugar-coat the drug problem. And with globalisation, the drug culture can easily spread, including to our shores. How do we inoculate our young Singaporeans at an earlier age so that they do not pick up the habit, so that they resist peer pressure and \"fake news\"? Among offenders, what is the average age of starting getting younger? And how can we prevent the problem from taking root in our schools and educate our young?
Mr Gan Thiam Poh (Ang Mo Kio): Madam, the nature of crime is evolving in Singapore. While violent crimes, robberies and theft have been trending downwards, cybercrime is increasing.
As more of our interactions and transactions go online, so do criminals. Cyberattackers stealing money, information and data are costing individuals and companies here millions of dollars a year. Millions more are lost through e-commerce cheating, online scams and ransomware.
The Internet also facilitates transactions of illegal goods and services. The number of arrests for buying drugs and drug-related items online has jumped six-fold. Vice activities are also increasingly being coordinated online.
Even recruitment by terrorists is also being conducted online. The arrests of self-radicalised Singaporeans last year highlighted the danger of terrorist activities here.
How will MHA leverage technology to transform frontline operations so that our Police Officers can react to security breaches and emergencies quickly? What measures are in place to help the Home Team stay updated and equipped to cope with new security challenges and increasing demand? Would the Ministry consider increasing recruitment to boost our ability to deal with security crises?
Mr Murali Pillai (Bukit Batok):\tMdm Chair, let me first congratulate the Ministry and the Home Team for their achievements last year in keeping Singapore safe and secure. Our crime rates continue to be low and responses to emergency calls remained prompt. Overall, residents feel safe in their neighbourhoods and public confidence in the Home Team continued to be high.
These are commendable achievements in the face of increasing threats to peace and security globally.
Of course, the heavy responsibility of protecting Singapore does not and should not rest on the Ministry and the Home Team alone. We must recognise that this is a collective responsibility which requires the combined effort of all of us who call Singapore our home.
The Ministry nonetheless has to take the leading role in coordinating this effort. Apart from what has already been done, how does the Ministry propose to further strengthen its partnership with the community in the combat against crime, corruption and terrorism?
The Chairman: Mr Desmond Choo, please take your two cuts together.
Mr Desmond Choo (Tampines): The security landscape today is more uncertain and complex than ever. Yet, we face tremendous manpower constraints while ever more resources are needed.
We need to especially up our ingenuity when resources are thin. We need to operate differently and maximise technology to free up our precious manpower resources for more critical, on-the-ground work. The Home Team has embarked on a transformation journey. Can the Ministry update on the progress? And what are the challenges to be tackled in this journey?
In this transformation, I envisage building up a new Home Team unit comprising officers recruited and trained from Day 1 to tackle threats in an integrated manner. Crimes of the future will be more complex and will cut across traditional agency domains. These officers become the links across our current agencies, facilitating whole-of-Home Team work.
It is also critical to have an integrated interagency training and operations command. There is a greater need for cross and networked sensing to pre-empt threats and we must be nimble in tackling new and evolving threats. How can we train and equip for such sensing capabilities?
With a 2% reduction in MHA's budget, how do we ensure that our safety and security are not compromised? Firstly, we must never stop investing in our people. They need best-in-class training and be well-resourced. Next, use technology and streamline our work processes to take administrative work away from our officers whose best work are out on the streets and on the frontline.
Technology does not replace old-fashioned security work. Ground work requires experience. Our veterans are vital mentors. There is a need to review their retirement age to retain this valuable resource. We must also use technology to help our older officers work longer and more productively. An enlarged civilian scheme, akin to the Singapore Armed Forces' (SAF's) Military Expert scheme, will buttress competencies in the Home Team.
Over the past 50 years, more than 260,000 men have served National Service (NS) or are serving NS with the Home Team. I had the privilege of serving with some of the most dedicated and professional full-time national servicemen (NSFs) and NSmen. They held their own with the regulars. Three new Home Team clubhouses will be set up within the next 10-15 years. This is good news for Home Team officers. In view of their outstanding contribution to Singapore and patriotism, I would like to know how the Ministry had recognised or intend to honour our Home Team NSFs and NSmen.
At a time when security demands are escalating, every NSF and NSman count. How can the Ministry better equip, train and deploy our officers? Many NSmen continue to want to play key roles in protecting our homeland. I encourage the Ministry to leverage the professional expertise of our NSmen. For example, many of our NSmen go on to become cybersecurity experts, financial experts or lawyers. They would be better served in continuing similar roles or training positions during their reservist.
We can also be innovative in our deployment. Can the Ministry consider having NSmen to sign up for non-security sensitive projects that NSmen can sign up for, much like an MHA version of upwork.com? These can include community outreach projects. There is also a group of highly trained ex-regulars who can be grouped together for more involved Home Team projects.
While our NSFs serve the nation wholeheartedly, we should also help them embark on their careers post-NS. I would like to suggest providing in-depth career counselling and career preparation courses for NSFs by working with the Labour Movement. Can they also be provided with grants to upgrade themselves while serving their NS?
Our Home Team NSFs and NSMen from the Home Team have served with distinction. They are an indispensable part of our security blanket. Let us continue to develop them into a force to be reckoned with.
The Chairman: Mr Christopher de Souza, please take your three cuts together.
Mr Christopher de Souza: Given the destructive consequences problem gambling can bring to the family of a gambling addict, what measures are we taking to further reduce the incidence of remote or online gambling?
Would MHA provide an update on the efficacy of the remote gambling regulatory regime, in particular, whether the number of problem gamblers has increased or decreased following the introduction of the exempted operator regime?
Would MHA also provide the clamping down of illegal gambling through the recent regulatory framework?
Madam, in the constituency I serve, there have been instances where parents have shared with me that, very unfortunately, their children have been sexually assaulted by adults. These parents are of the view that their children were molested. I see the anguish in their eyes and the concern they have for their children.
One of the main desires of these parents is for the Police to accord priority to these cases and conclude the investigations as fast as they can. This is because the parents do not want to prolong the anguish of the child and, also, the child may find it difficult to recount the evidence as time goes by.
Therefore, would the Minister direct their investigations into sexual abuse against minors be prioritised and expedited for the sake of the child and the parents?
Parliament must also support the Home Team in ensuring that a strong message is sent to the culprits or potential culprits that society does not condone preying on innocent children.
Madam, cybercrime comes in many forms – online cheating cases involving e-commerce, credit-for-sex and Internet love scams. Each form is dangerous. Each cybercrime leaves the victim in a highly vulnerable state. Some cybercrimes target Government frameworks. Such invidious acts threaten our national security. As there is a need to remain vigilant against all forms of cybercrime, would MHA kindly provide this House an update on (a) its recent and upcoming initiatives to enjoin Singaporeans to battle cybercrime; and (b) what has been done to minimise the incidence of cybercrime and mitigate its effects?
The Chairman:\tMinister Shanmugam.
The Minister for Home Affairs (Mr K Shanmugam): Madam, if I may make some observations as a background context for many of the questions that had been raised.
First, the fundamentals of law and order in Singapore are very strong. The overall crime rate in 2016 was the lowest in the last three years and we were again ranked first in the Gallup's Law and Order 2016 Report. That report studied the public's sense of safety and the public's confidence in the Police Force.
Mdm Chair, there has been discussion about the Public Service in the last two days. In that context, let me share with Members a Public Perception Survey that the Police conducted last year, the results of which came to me yesterday. The results will put in context the general discussion on Public Service.
On the question of the public's sense of safety and security, 92% rated general safety and security in Singapore as \"good\" or \"very good\". Ninety-two percent is quite astounding. The top three reasons were low crime rates, more Police around and fast response to crimes. These again give the context to what most people think. Ninety-three percent felt safe walking in their neighbourhood at night and that was attributed to a highly effective Police Force, more Police presence and, again, quick arrest of criminals.
If you think about it, 93% feel safe at night in a public space. You will not get this result anywhere in the world. New Zealand and Hong Kong, also known for good safety, carried out their own surveys. They had 75% of people feeling safe at night. If you go to other first-world cities, I suspect the figures will be much less and, in some cities, you will find much less than 50%.
Almost half of the public said that installation of Police Cameras at housing estates made them feel safer. An incredible number of the public hold the Police in high regard. Eighty-seven percent regarded the Police as a world-class crime fighting organisation. Ninety percent believe that the Police are ready to deal with any major law and order incidents and are well-prepared to respond to future security needs. So, if we ignore some of the artificially created online attacks on the Police, this is what people on the ground really believe, as opposed to Members coming here and trying to make it out that people say this and people say that and trying to create the impression that the majority believe it. I have no doubt some people believe and I have no doubt that Members are honest when they put it out. But you got to have context. Eight-eight percent felt that the Police provide a high quality of service.
All of this reflects the extraordinary level of faith and trust Singaporeans have in the Police Force. I have no doubt that the same goes for the other Home Team departments. I believe, for example, the Singapore Civil Defence Force (SCDF) ranks very high in the people's assessment.
Many law enforcement agencies around the world will envy this. All of these have been possible because of several factors. But a key and critical factor is the immense dedication and commitment of our Home Team officers. This is a survey on the Police Force but, at the broader level, it also gives a perspective to the discussions about the Public Service.
Singapore is where it is today because of three key reasons: excellent political leadership, excellent Public Service and excellent quality of our people who are extraordinarily capable. If any one of these factors were absent, we would be in a very different position.
I can understand the frustration of Members in individual cases. All of us face these cases. They arise for a number of reasons, for example, structural reasons, interagency issues. But in perspective, these cases are the exception and not the rule. In a large majority of cases, our public servants are outstanding, dedicated. They go well beyond the call of duty and serve with heart. And I know the Members who spoke share this view. I spoke with Er Dr Lee Bee Wah and Mr Louis Ng and they confirmed this to me. And Nominated Member Kuik Shiao-Yin has made a Facebook post setting out her thinking along these lines.
It is, therefore, good to see the position in context. Without an outstanding Public Service, we would not be here. And without an outstanding Public Service, we would not get to where we want to be. Many things go right, so we do not think about them. The Public Service works very hard so that the rest of us can go about our lives seamlessly.
Mdm Chair, I will now focus on three areas: terrorism, SGSecure and drugs.
In the public perception survey I mentioned earlier, 4% felt less secure compared to two years ago. Of those who felt less secure, almost half attributed this to the threat of a terror attack. Terrorism remains a key concern of the public, not only for those who felt less secure, but also those who felt secure but felt that the Home Team will easily handle it.
Mr Christopher de Souza and Dr Tan Wu Meng asked about the threat situation in respect of terrorism. The threat of terrorism continues to be high. The Islamic State in Iraq and Syria (ISIS)-related attacks were carried out in Indonesia and Malaysia last year. With your permission, Mdm Chair, may I have some slides displayed on the light emitting diode (LED) screens?
The Chairman:\tYes, please. [Some slides were shown to hon Members.]
Mr K Shanmugam: The southern region of the Philippines may become an ISIS province or wilayat. It has experienced a wave of terrorism-related attacks. Most recently, on Sunday, a German was beheaded by the Abu Sayaaf Group.
ISIS seems to be concentrating on the Southern Philippines. In 2016, four militant groups established an umbrella group called the Islamic State Philippines (ISP) and pledged their allegiance to ISIS. ISIS also endorsed ISP leader, Isnilon Hapilon, a leader of the Abu Sayyaf Group in Basilan, as \"amir\", or supreme leader, for Southeast Asia. We need to watch this carefully. The area can attract would-be terrorists from the region and become a safe haven to trained terrorists who can then come back to harm us.
Within Singapore, we took security action against nine Singaporeans last year. The Home Team has taken significant efforts to strengthen our computed tomography capabilities in 2016. Mr Christopher de Souza and Dr Tan Wu Meng asked for an update on this.
First, we launched the Police Emergency Response Teams (ERTs). Our ERTs are on the ground daily. They are spread out across Singapore. They patrol public places, such as malls and stadiums. They talk to building owners and operators and they familiarise themselves with their operating environment and are trained to respond swiftly to neutralise threats.
Two, we sharpened our operational preparedness with major public exercises. In October of last year, we conducted the largest counterterrorism exercise to date, involving more than 3,200 participants. It tested the island-wide response of Home Team and SAF officers for terror threats.
Three, we enhanced our Police Camera coverage and video analytics capabilities. We completed the installation of Police Cameras in all 10,000 HDB blocks and multi-storey car parks under Police Cameras (PolCam) 1.0. The House was updated on that. We have started installing cameras in public areas − towns and neighbourhood centres and hawker centres. Over the next few years, we will install about 11,000 Police Cameras at 2,500 locations island-wide.
We will also develop video analytics capabilities from 2018 onwards and we will continue to strengthen our capabilities through 2017. Amongst these steps, I will share two examples.
One, the Immigration and Checkpoints Authority (ICA) has started to enrol iris images. This will help ICA more accurately verify a person's identity. For travellers, if they face difficulties with fingerprints, they can still do self-clearance, as long as their iris matches.
Two, to further enhance our frontline response capabilities, the Police plan to equip frontline officers with pistols. Pistols will give our officers better firepower, compared to revolvers. They have up to three times more ammunition.
On dealing with terrorists, our position is that we will deal with anyone who engages in conduct that is potentially a trigger for terrorism. If necessary, we will detain the person. Otherwise, the person may be counselled or placed on a Restriction Order. ISA allows us to do this and that has helped avoid what has happened in other places. Let me quote two examples that have been widely reported in the media.
First, Jamal al-Harith. According to media reports, he is a British citizen. In 2001, he was picked up by American forces in Afghanistan. He was detained in Guantanamo Bay. In 2004, he was released without charge and repatriated to the United Kingdom (UK). He launched a claim against the UK government and was reportedly awarded a million pounds. In 2014, he left the UK to join ISIS in Syria. Last month, he reportedly carried out a suicide bomb attack in Mosul.
There is much debate and concern within the UK whether the government's compensation was used to fund ISIS. It is not a question of whether the UK approach was right or wrong. Each country has got to decide its own approach. But it is basically a question of how much risk you are prepared to take with such people. We believe people in our society will not want to allow this to happen here. In Singapore, Jamal would have been detained under ISA. Singaporeans accept a tighter security framework.
The second example is Anis Amri, the Tunisian truck driver, who drove a truck into the Berlin Christmas Market last December. Between 2011 and 2014, he served a four-year prison sentence in Sicily for several crimes, including arson. He arrived in Germany in July 2015. He visited radical mosques, mingled with extremist preachers and was linked to extremist networks. The German authorities had him on their radar. Security services closely observed him. But the laws did not allow the authorities to pre-emptively arrest him or produce him in court. Unable to find sufficient evidence as required by them, the monitoring stopped in September 2016. The state police chief said that they had \"exhausted all legal powers to the limit to ward off potential dangers\". Three months after the monitoring stopped, in December, the Christmas attack took place.
We should not reach that stage in Singapore. The trade-off for us is between taking a greater risk or intervening earlier. And my view is we must be able to intervene early and decisively.
Mdm Chair, Mr Christopher de Souza and Ms Rahayu Mahzam spoke about the Police report lodged over an imam's remarks on Christians and Jews. The imam is reported to have quoted a verse from the Quran and he seems to have said, I quote, \"God grant us victory over Jews and Christians\", amongst other things. And he seems to have repeated it and said it more than once. Investigations are ongoing. We will know the context of what he said once the investigations have finished.
At this stage, let me say this to make clear the Government's position. If the imam had referred to the phrase to say, for example, that such phrases can promote ill-will, hatred, enmity or violence against other communities and that this is not acceptable in a multi-religious society, then there can be no objection. But if he had said that Jews and Christians should be defeated and for God to grant Muslim brothers victory over them, to make that very point, then that is completely unacceptable. And if any Member disagrees, I welcome him or her to stand up and clarify.
The Government has taken a strict position when Muslims have been attacked. People have been charged and sent to jail. There have been many examples. Let me give one. In 2009, a Christian couple was sentenced to eight weeks' jail for distributing publications that cast Islam in a negative light. The same applies to any attack on any other religion. We will not tolerate any religious preaching that encourages violence or seeks to pit one religion against another.
If the imam had not made any inflammatory suggestion, no action will be taken and we will issue a public statement. But if he did, indeed, make such suggestions or had engaged in such preaching, then some appropriate action will be taken. We have to be fair to the imam. Thus, I have set out the position in the broadest possible way, outlining the Government's position so that everyone is clear where, as a matter of principle, the Government stands on these issues.
Even as we make clear that we do not fully know the exact context in which the imam spoke, the Government's position has to be made clear because matters like these have the potential to escalate with people jumping in, opinions being formed, hardened along religious lines.
A National University of Singapore (NUS) academic, Khairudin Aljunied, has come out to criticise the individual who made public what the imam has said. Mr Aljunied has encouraged vilification of that individual. Looking at what Mr Khairudin Aljunied has said, he seems to suggest that it is okay for the imam to say that Jews and Christians should be defeated. He assumes that the imam intended to mean that and Mr Khairudin Aljunied sees nothing wrong with that, even if the imam had intended the meaning of his words. Mr Khairudin Aljunied's position and actions are quite unacceptable. He has jumped into this without verifying the facts and without checking the context. He supports a position that is quite contrary to the norms, values and laws in Singapore.
The Police will look into the issues and the conduct of everyone involved quite thoroughly. When such issues arise, it is best that parties referred it to the Police. Going public may inflame the views further.
This brings us to SGSecure. In September 2016, we officially launched SGSecure. The objective is to have at least one Prepared Citizen in every household who knows how to recognise and report suspicious behaviour and items, protect their family and themselves and keep calm and reach out to others in times of crisis.
To achieve this, we have embarked on an extensive outreach effort. Mr Patrick Tay, Dr Tan Wu Meng and Ms Rahayu Mahzam asked for an update.
Our Home Team officers, NSmen, volunteers and grassroots leaders have been conducting house visits. During these visits, they explain to residents how they should respond in the event of an attack and encourage residents to participate in SGSecure programmes. We will push ahead with our efforts in 2017.
We also launched the \"SGSecure in the Neighbourhood\" programme. We revamped the Emergency Preparedness (EP) Day in 2016. Residents learn skills, such as cardiopulmonary resuscitation (CPR) and first aid. Live exercises sensitise residents to the threat of attacks and train their responses. We will roll it out across all 89 constituencies over the next two years.
We will expand our outreach efforts to workplaces in 2017. We will train public officers in SGSecure skills. We will partner the Ministry of Manpower, the National Trades Union Congress and the Singapore Business Federation to engage unions and businesses. We will have SGSecure briefings and conferences, customised EP Days; and CT seminars for industries, such as the security, manufacturing and hospitality sectors. We urge companies to come forward and join us.
This year, we will also focus on strengthening community cohesion and resilience. We need to make sure our community comes together as one united people after an attack.
Ms Rahayu Mahzam spoke about how we can improve the training of our community leaders to respond after an attack. We have begun to pilot the Crisis Response Exercises (CRX) within the constituencies. CRX will involve C2E committee members, IRCC representatives and other community stakeholders in the neighbourhood, such as schools and merchant associations. They will work together in a simulated attack scenario to assist the community after an attack and to manage potential communal tensions and restore social cohesion.
Second, our Home Team psychologists will partner the People's Association. Together with psychologists from the Ministry of Social and Family Development (MSF) and the Institute of Mental Health (IMH), they will support and train grassroots leaders to provide swift and effective psychological first aid to affected residents after an attack.
Mdm Chair, Mr Desmond Choo asked how NSmen can contribute to the Home Team's efforts beyond their NS call-up. Our NSmen play an important role in SGSecure and they can be active responders in emergencies, whether on or off their NS duties.
Some of our NSmen have also stepped forward to mobilise their communities, for example, SCDF NS Commander Lieutenant-Colonel (LTC) (NS) Raizan bin Abdul Razak. He works with his local grassroots at Tampines West to raise awareness of the terrorism threat and rallies fellow SCDF NSmen to promote SGSecure in their neighbourhoods and social circles.
We celebrate Home Team NS50 this year. A series of events and initiatives that have been lined up to recognise the importance of contributions of our NSmen made towards nation-building. We will continue to count on them also in the fight against terrorism.
Mdm Chair, I will now turn to the threat of drugs. The New York Times ran an article in January this year on what it called the \"Killer Drug Epidemic\" in the US. Across the US, cheap smuggled heroin is \"handed out like candy\". In 2015, more than 33,000 people died from opioid abuse and that does not include the number who died due to gun-related violence but linked to drugs. The 33,000 figure is higher than the number killed due to pure gun homicide. Babies are now being born with drug dependency. Entire neighbourhoods are affected and there is little hope for young people in these neighbourhoods.
The article told the story of a young 24-year-old girl who was doing well in school. Unfortunately, she developed anorexia. That led to alcohol, then drugs. She got addicted, went in and out of rehabilitation eight times, still unsuccessful. And to pay for her drugs, she lied to her family, pawned her mother's jewellery and went into prostitution. Countless others die, either through drugs or through drug-related violence.
There are hundreds of thousands of such examples across the world. Singapore is one of the few countries in the world that has dealt effectively with the drug problem. Our approach − we have a tough legal framework against traffickers and abusers. We are firm and relentless in enforcement. We carry out intensive efforts to educate Singaporeans on the dangers of drug abuse, and all this is complemented by comprehensive rehabilitation measures.
The Economist ran a major article in January this year. It said that Asia's harsh anti-drug policies are falling out of step with the rest of the world. It criticised these policies as needlessly severe and probably ineffective. Yet, it had to concede that Singapore's drug consumption is admirably low. It caveated that by saying that this is because we are small, have secure borders, little corruption, effective anti-drug education and laws that allow searches without warrants and detention without trial.
Apart from our size, none of the other factors happen by themselves. They are the result of our policies and many years of hard work. There is strong public support, both for our tough laws and our approach. Singapore's example demonstrates that the vision of a drug-resistant society is not impossible with the right policies properly executed.
The same Economist article referred to me as \"Singapore's Fearsome Law and Home Affairs Minister\" and it quoted my speech at the 2016 UN General Assembly, where I said, \"Show us a model that works better, that delivers a better outcome for citizens and we will consider changing. If that cannot be done, then don't ask us to change.\" I do not accept the description \"fearsome\". But I will not flinch from taking a position in Singapore and outside Singapore that I believe is in the interest of our people. In this context, let me also put to rest one other myth.
Recently, there have been some suggestions that international pressure will cause us to deviate from our policies. And the death penalty was referred to in that context. Such suggestions are delusional. We do what is right for Singapore. A penalty will be in the books if we believe it to be right, and it will be removed if we believe that removal is the right thing to do, and not because of any international pressure.
The challenge of keeping Singapore drug-free is increasing. First, there are growing threats from the region. Southeast Asia continues to be a major market and producer of illicit drugs. Myanmar and Lao PDR account for 22% of the total global area used for illicit opium poppy cultivation. The trafficking of ice and heroin in the region generates over US$32 billion. This lucrative black market has attracted criminal syndicates from Africa, Iran, South Asia, Mexico and, of course, China. Singapore will be overrun by these syndicates, if we do not take a tough approach.
Our neighbours share our concerns. They, too, want to be drug-free. Their challenges are somewhat different. We will continue to partner them as we work towards a united position in the Association of Southeast Asian Nations.
The second challenge is that the number of new drug abusers in Singapore has increased. Close to two-thirds of new abusers in 2016 were under the age of 30. A survey conducted by the National Council Against Drug Abuse in 2016 found that young people below the age of 30 were more open-minded towards drugs, as compared to a similar 2013 survey. This is a worrying trend. Dr Tan Wu Meng also raised similar concerns.
This problem is compounded by the rise in online drug availability. Online black market sites allow users to buy drugs anonymously. Drugs are couriered in small parcels, unmarked, innocuous-looking and difficult to track. The young are especially susceptible. Many of us may think that only young people from low-income households are vulnerable. But the Task Force on Youths and Drugs commissioned a study in 2014. It found that most young cannabis abusers come from either middle or high socio-economic backgrounds. Many of them did well in school. The Central Narcotics Bureau (CNB) will take active measures, together with our community partners, to tackle this concern. My Parliamentary Secretary will elaborate on this.
Third, there is increasing international pressure to adopt a softer \"harm reduction\" approach. We have to remain steadfast in our resolve to keep Singapore drug-free. We will continue to work with our partners, at regional and international platforms, to safeguard our position.
The Chairman: Senior Minister of State Desmond Lee.
The Senior Minister of State for Home Affairs (Mr Desmond Lee):\tMadam, there have been some 25 minutes of savings from MINDEF's COS. In order for Parliamentary Secretary Amrin Amin and I to address the remaining cuts, may we have Mdm Chair's indulgence for us to take that extra time?
The Chairman:\tI give my permission. Please proceed.
Mr Desmond Lee: We will be brief, Madam.
Madam, over the past few years, the Home Team has been transforming to meet future challenges. This year, we are shifting gears significantly from planning to implementation. I will cover three aspects of this transformation.
First, we are ramping up the use of technology to better combat crime, secure our borders and save lives. Second, we are further integrating the Home Team's operations, so that we can more effectively deal with evolving and complex threats. Third, we are strengthening the Home Team's partnerships with the community, because everyone has a stake in keeping Singapore safe and secure.
Mr Gan Thiam Poh and Mr Desmond Choo spoke about leveraging technology. We are doing so across the whole spectrum of our operations. One example is the use of unmanned aerial vehicles (UAVs). They give our officers a bird's-eye view of the situation and allow them to make better ground decisions. We have begun to deploy UAVs to support Police and SCDF operations.
For instance, in the Tuas View Circuit fire just last week, after the fire was extinguished, the UAV located hotspots in the large area which were otherwise out of sight from the firefighters. This allowed SCDF to act quickly and prevent the hotspots from re-igniting the fire. We will train our officers to use technology and help them adapt to new ways of working. Indeed, our people are central to our transformation. Officers will deepen their skills and master new ones. We will redesign jobs as new technologies are introduced.
One example is ICA's automated self-clearance lanes for motorbikes at our land checkpoints. ICA officers who no longer have to man the counters as a result can now be trained and redeployed to detect suspicious travellers and manage incidents on the ground.
Mr Desmond Choo also highlighted the need for Home Team departments to work together. We have taken steps to further integrate Home Team operations. For example, we are co-locating the various departments' operation centres. So, by the end of this year, officers from the Police, CNB, SCDF and ICA will sit side-by-side at the Police Operations Command Centre, enabling faster communication and information sharing and enhancing coordination of ground responses to incidents.
Mr Murali Pillai spoke about the importance of the Home Team partnering the community, and I agree. An active citizenry that is invested in the safety and security of Singapore is essential to the Home Team's work. We have, therefore, stepped up efforts to strengthen partnerships between the Home Team and the community. Let me share an example of the Save-a-Life initiative by SCDF, to illustrate. Madam, I will now speak in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] The Save-a-Life initiative by SCDF seeks to increase peoples' awareness of first aid and build a nation of lifesavers. Trained community responders can become first aiders to provide initial response to out-of-hospital cardiac arrest cases. We will scale up community involvement in three ways.
First, we will equip citizens with the skills to help those who suffer a cardiac arrest. About 2,000 residents have been trained in CPR-AED skills under the Save-A-Life initiative. In the coming years, we hope to train more than 24,000 residents, or about 300 residents, per constituency.
Second, we will install more AEDs across Singapore. Currently, there are close to 460 AEDs installed in eight constituencies. By 2019, there will be one AED for every two HDB blocks in all constituencies across the whole island.
Third, we still need to find a way to bring help to persons in need. This is where the SCDF's myResponder app comes in. The app alerts its users if there is a report of somebody suffering from cardiac arrest nearby.
I urge more people to learn CPR-AED, download and use the myResponder app, and be part of our life-saving force.
(In English): Aside from individual citizens, businesses have an important role to play in Singapore's security. We will amend our laws this year to require businesses to adopt certain measures to guard against security threats. We will amend the Public Order Act to require certain events to put in place security measures. We will also introduce a Bill to enact a new Infrastructure Protection Act.
In imposing these requirements, we are mindful of the potential impact on businesses. We will take a practical approach so as to keep the cost of such measures reasonable. This is a cost which terrorism has imposed on society as a whole. The Government has borne a significant share of this cost. Communities have been roped in to play their part through SGSecure, and we seek the business community's understanding that these measures are necessary as a shared effort to keep Singapore and Singaporeans safe.
Another important partner in ensuring Singapore's safety and security is the Private Security Industry. The quality of our private security agencies has improved. The Progressive Wage Model has also laid the foundation to raise the skills, wages and productivity of our security officers. To build on these developments, MHA will work with the tripartite partners to develop an Industry Transformation Map (ITM) for the Private Security Industry, with a strong focus on innovation and technology, as well as the upgrading of jobs and skills of our officers.
Mr Zainal Sapari highlighted areas for review in the Security Agencies Grading Exercise (SAGE). In working on the ITMs, we will certainly take his comments and suggestions into account.
Ms Sylvia Lim raised some concerns about having foreigners as APOs. The reality is that there is a shortage of APOs, as Ms Sylvia Lim also acknowledges. It has not been possible for the Auxiliary Police Forces to recruit only Singaporeans. Our supply is limited. So, we have to decide what to do. What are our options? Do we live with the shortage of APOs and compromise on overall security when we need to deploy officers, or do we find other sources to meet these needs?
We have carefully considered the options and have decided to allow the recruitment of foreign APOs. They supplement our Singaporean APOs to meet our security needs. They are properly screened to ensure that they are suitable for security work and we also make careful assessments with regard to where they are deployed, and this is reviewed from time to time. We have not heard of a more effective proposal.
Ms Sylvia Lim was concerned about foreign APOs bearing arms. There are already, since the 1970s, non-Singaporean APOs carrying arms − these are the Malaysians. Anytime we give weapons to people, there is that risk.
We have had isolated cases of both local and foreign APOs misusing their arms. There is a risk when equipping people. But we have to arm our officers with weapons, if the risk assessment and operational needs so require, so that they can carry out their tasks and protect our installations. Not doing so may compromise our security even more. We have to recognise and manage the risks through screening, training and supervision, whether it is an APO of Singaporean or foreign origin who is equipped with arms.
Our priority is still to increase the number of Singaporean APOs. Singaporeans APOs are employed on better terms than foreigners, and the Auxiliary Police Forces have stepped up efforts to attract more Singaporeans.
I will now respond to other questions from Members. Mr Christopher de Souza asked for an update on cybercrime. Cybercrime continues to grow in scale and complexity. Last year, MHA launched the National Cybercrime Action Plan. Under the plan, we have stepped up efforts to raise public awareness, as prevention remains key. The Police's Scam Alert portal educates members of the public on the latest scams and we launched an Anti-Scam Helpline in November last year for members of public who wish to seek advice on potential scam situations. We are also enhancing our agencies' capabilities and strengthening our legislation, so that we remain effective in fighting cybercrime.
Mr Christopher de Souza also asked for an update on the exempt operator regime under the Remote Gambling Act. As exempt operators, Singapore Pools and Singapore Turf Club have to put in place a very extensive suite of safeguards. It is too early to draw conclusions on the impact of the regime on problem gambling. MHA and MSF will continue to monitor the situation and adjust our regulation, if necessary. The National Council on Problem Gambling (NCPG) has also stepped up public education and outreach on problem gambling.
Ms Sylvia Lim also asked about how the rights of the accused are safeguarded during Police investigations. She also made observations on the time taken for Police investigations, in the context of people who hold vocational licences. When a Police report is lodged and there is a prima facie case, the Police have a duty to investigate. Investigations will invariably impact those involved, such as accused persons, victims and witnesses, and we understand this.
Regulatory agencies that issue licences, including vocational licences, have a responsibility to consider the potential risks to the public and to assess whether there is a need to suspend or revoke those licences. In the case of vocational driving licences, the suspension or revocation is determined by the Land Transport Authority. They consider each case and whether the commuter's safety is at risk. If this creates hardship, then we should immediately refer these individuals to social support agencies so that they get assistance. I assure the Member that the Police will conduct investigations as speedily as possible. Although they try to expedite investigations, they also require sufficient time to conduct a thorough and fair investigation, and some cases will take longer to investigate.
This applies as well for investigations into alleged sexual abuse against minors, which Mr Christopher de Souza asked about. The Police treat such cases with great urgency. But speed should not come at the expense of due process, diligence and sensitivity. Utmost care is taken to support child victims during investigations.
For example, investigations are carried out in private consultation rooms designed to provide a safe and comfortable environment. Investigation officers are specially trained to use interviewing techniques sensitive to the welfare and emotional state of the child. We are also working with agencies to reduce the number of times a victim has to recount his or her experience to different parties.
On providing early access to counsel, we need to be fair to the accused, but also to the victims and to society as a whole. We should protect the rights of the accused without prejudicing the rights of the victims and the safety and security of society. We have, therefore, taken the approach of granting access to counsel within a reasonable time after investigations begin. This has served us well.
Ms Sylvia Lim also asked about the status of the video recording of interviews (VRI) pilot. My Minister had spoken about it last year. The Member may refer to that Statement. Essentially, we have consulted the legal community and, after taking into account the feedback that they have given, we have decided it would be better to put in place the necessary legislative amendments before starting the pilot. The work to amend the legislation is ongoing. We are also configuring VRI-enabled interview rooms for our law enforcement agencies and enhancing training for our officers. We will announce details in due course.
For youths between 16 and 18 years old facing criminal charges, which Ms Sylvia Lim spoke about, there are various protective measures in place. Offenders in this age group are usually dealt with by the Community Court, which is committed to restorative justice and rehabilitation. These offenders could be asked to undergo family conferences or offender-victim mediations.
Youths below 19 years old who commit minor offences can also be diverted from prosecution in Court to community-based rehabilitation programmes, such as the Guidance Programme and Enhanced Streetwise Programme.
In October 2015, MSF, MHA and the Attorney-General's Chambers started a review of the Criminal Justice System for youths. The Committee has made several recommendations, including to further strengthen the protection of youth offenders between the ages of 16 and 18 and raising the threshold under CYPA to 18 years of age. The Government is presently studying the recommendations and will announce details in due course.
Ms Sylvia Lim also asked whether parents could be allowed to be Appropriate Adults. There is the risk that some persons related to the young suspect would face difficulties staying neutral during the interview. Therefore, we prefer a neutral third-party, with no direct interest, to be the Appropriate Adult. This will achieve the objective of providing emotional support to young suspects without unduly interfering with the investigation process.
In conclusion, the Home Team is committed to staying ahead of challenges by harnessing technology in new and innovative ways, further integrating our operations and partnering the community. Together, we will continue to keep Singapore safe and secure.
The Parliamentary Secretary to the Minister for Home Affairs (Mr Amrin Amin): Mdm Chair, I thank Members for their support for the Home Team's work and I will speak on two areas: first, the scourge of drugs; and second, the rehabilitation and reintegration of ex-offenders.
Mr Christopher de Souza asked about our drug situation and the strategies to combat this trend. The overall drug abuse situation in Singapore is under control. In 2016, there was a 3% drop in the number of drug abusers arrested compared to 2015, but there are areas of concern. Close to two-thirds of the new drug abusers arrested were below the age of 30, and we are also seeing more cases of students abusing drugs. Therefore, we cannot take our foot off the pedal in the fight against drugs.
Even with our tough drug laws and active enforcement, we remain vulnerable to the global and regional drug trade. Minister Shanmugam highlighted the situation in the Golden Triangle, as well as the cross-border drug syndicate activities. We must continue to strengthen our enforcement efforts and regional cooperation. CNB works closely with its foreign partners to target syndicates which attempt to supply drugs to Singapore. For example, last December, CNB and the Malaysian Narcotics Crime Investigation Department (NCID) coordinated operations to successfully nab an elusive Malaysian and his associates who were supplying a sizeable amount of drugs into Singapore. At the same time, we need to reduce demand and step up preventive drug education so that Singaporeans know the dangers of drugs.
Dr Tan Wu Meng highlighted the growing movement overseas to sugar-coat the drug problem. Our youths are not immune from this influence. On the Internet, our youths see drugs being glamourised. They read about the legalisation of cannabis overseas and they hear that drugs like cannabis are less harmful and addictive. But this is not true.
A review conducted by experts at Singapore's IMH found that cannabis is both harmful and addictive, and chronic exposure to cannabis during adolescence is linked to lower intelligence quotient and possibly irreversible decline in cognitive performance lasting into adulthood. The World Health Organization has also compiled research which found that regular cannabis users were more likely to take other drugs like heroin and cocaine.
To better engage youths and extend outreach, CNB has developed a multi-pronged strategy.
First, CNB has been increasing their social media presence and they have produced videos to convey accurate information on the harms of drugs. These are shared online, as well as during drug prevention talks and roadshows.
Second, CNB is piloting a new initiative to establish positive \"influencers\" in peer circles. Youths from the Institutes of Technical Education, polytechnics and universities have signed up for the pilot of an Anti-Drug Advocate (ADA) Programme. These youths will learn about the harmful effects of drugs and Singapore's drug policies. They will visit halfway houses and DRCs, hearing first-hand accounts from ex-abusers on how hard it is to kick the drug habit. These youths will see what is really at stake if they try drugs. We hope the experience will encourage them to start their own initiatives to spread the anti-drug message to their friends.
We need more people to step forward to spread the anti-drug message. Prevention is our first line of defence, and a key part of the battle is won if we keep our people away from drugs. However, when someone starts to abuse drugs, we must help them to stop. And it is vital that we curb the vicious cycle of re-offending and prevent the spread of drug to non-abusers.
Last year, CNB arrested a man for drug trafficking. He mixed with bad company, picked up drugs and never successfully quit. What happened next was worse. He taught his two young sons, aged 19 and 20, to smoke \"ice\". He got them addicted and even supplied their habit.
We share Dr Tan Wu Meng's concern on the impact of drug abuse on the family. If we do not succeed rehabilitating offenders, their families, including their children, may end up becoming victims or offenders. Curbing intergenerational offending starts upstream, and this applies to both drug abuse and crime. This is an area which we are working with other agencies to better understand and tackle.
The rehabilitation process starts upon admission. Inmates are assessed for their risk of re-offending and severity of drug abuse and, depending on risk levels, inmates undergo different programmes which address criminal thinking and addiction issues. They also undergo family support programmes, religious programmes and skills training.
To ease their transition back into the community, they can later be emplaced in a halfway house or on home detention. Under the Day Release Scheme introduced last year, first-time lower-risk inmates can also go out to work and study during the day. We hope these measures help inmates better reintegrate into society.
Mr Louis Ng asked about the role of family support in rehabilitation. Indeed, this is one of the key factors that motivates ex-offenders to rebuild their lives and to keep themselves away from re-offending.
The SPS partners Fei Yue Family Services and Lakeside Family Services to provide structured family programmes for inmates − workshops to help better understand the impact of their crimes on their families and build their parenting and communication skills.
SPS also works with community partners like the Salvation Army to conduct family sessions in prison. During these sessions, family members are allowed to enter the Prison to spend time with the inmates, and they are designed to encourage bonding between inmates and their children, and they serve as powerful reminders to inmates that they need to turn their lives around. These family sessions are also held during special occasions, such as Mothers' Day, Fathers' Day and Children's Day.
Other than helping the inmate, SPS also helps their families. The grassroots-led Yellow Ribbon Community Project (YRCP) was established to help the families and children of inmates cope by connecting them to the national social support networks. YRCP has assisted more than 5,000 families. We recognise that family ties are vital to the inmates' rehabilitation, and family support is especially important after the inmates' release. Thus, the community's long-term involvement is vital to ensure continuity in these efforts.
Madam, I understand that my time on the clock has run out. Can I proceed to finish up my answer?
The Chairman:\tYes, try to keep it short.
Mr Amrin Amin: Sure. Besides family support, employment is another critical factor for successful reintegration. Employment provides the ex-offenders with a sense of purpose and income to help meet their families' needs. The Singapore Corporation of Rehabilitative Enterprises (SCORE), its partners and employers play key roles by providing training and job opportunities for inmates.
Dr Tan Wu Meng and Mr Leon Perera asked about skills training for offenders during and after incarceration. SPS and SCORE conduct training programmes that are aligned with the Workforce Skills Qualifications (WSQ) framework. This year, SCORE will commence the WSQ Advanced Training for inmates during incarceration. Courses include the Certified Operations Professional training where inmates are trained to be operations professionals in the manufacturing industry or technical supervisors in other industries. Completing these courses also helps inmates to pursue WSQ Diploma courses upon their release.
To keep up with increased automation in our workplaces, SCORE will introduce courses for inmates on the use of workplace smart devices, such as tablets. These skills will help inmates to be more competitive when they join the workforce upon their release.
SPS and SCORE work together with agencies, such as Workforce Singapore, to fund these courses for inmates. The combination of training and employer support have helped many inmates re-enter the workforce. And over the last three years, more than 95% of inmates referred to SCORE successfully secured jobs before their release.
Inmates can use their SkillsFuture credits during their stay at halfway houses or after their release. And SCORE informs inmates about SkillsFuture programmes and works with halfway house operators to encourage residents to attend courses.
In 2016, SCORE also worked with employers to pilot a new initiative where ex-offenders are sent for further skills upgrading if they perform well at work. So far, more than 260 ex-offenders have benefited from this.
Through the multiple rehabilitation programmes, we help inmates and their family cope with their difficult situation.
Ms Rahayu Mahzam asked about our partnerships with Malay/Muslim organisations to tackle offending, re-offending and drug abuse. Madam Chair, I will now speak in Malay.
(In Malay): [Please refer to Vernacular Speech.] MHA has formed close partnerships with the Malay/Muslim community to tackle the issue of offending and re-offending.
We have achieved good progress in recent years. I am encouraged by the progress made by our Malay/Muslim community. The strong support of our Malay/Muslim volunteers is invaluable in helping our ex-offenders start afresh. Many people from our community have stepped forward to play a role in supporting the rehabilitation and reintegration efforts of offenders and repeat offenders.
For example, SPS is working closely with the Association of Muslim Professionals (AMP) on a rehabilitation programme for Muslim offenders. This includes religious, family and financial literacy programmes during their incarceration, as well as case management and family support services after they are released. The programme will be piloted with about 100 drug offenders later this year.
MHA is also partnering the Singapore Muslim Women's Association (PPIS) to enhance drug prevention education efforts within the community. Under this initiative, PPIS will help spread the anti-drug message to their clients who are participating in their support programmes.
PERGAS (Singapore Islamic Scholars and Religious Teachers Association), also shared our concern over drug offending. Recently, they met and counselled young drug offenders during the pilot run of the Insan Mukmin programme. PERGAS is very concerned that our youths lack awareness about the danger of drugs and how drug abuse runs counter to the teachings of Islam. They shared with me that they planned to organise a campaign to raise more awareness on this front.
I would like to encourage more community partners to join the Home Team in our efforts to reduce the number of drug offenders.
(In English): Mdm Chair, to conclude, the Home Team is committed to achieve a drug-free Singapore and will increase our efforts to rehabilitate and reintegrate ex-offenders and will partner the community to safeguard the safety and security of Singapore.
The Chairman:\tWe have a few minutes for clarifications. Mr Zainal Sapari.
Mr Zainal Sapari:\tMy clarification is for Minister Shanmugam. I would like to ask whether the Police in its investigation into inappropriate remarks made by the imam during the Friday sermon, whether the Police would be consulting MUIS to establish whether it was really out of context or, indeed, it was incriminatory.
Mr K Shanmugam:\tThe Police will interact and speak with a wide variety of people in coming to their conclusion. Ultimately, the Police will be guided by advice from the Attorney-General's Chambers, taking into account the facts, the videos which are available and a proper translation of what was said. Everything will be looked into.
The Chairman:\tMr Desmond Choo.
Mr Desmond Choo:\tMdm Chair, my clarification is for the Senior Minister of State. Can the Senior Minister of State share more on how we can support older Home Team officers? Also, how would the Home Team train to arrive at that strong joint Home Team capabilities that are needed to fight crimes of the future?
Mr Desmond Lee: Madam, I thank the Member for his clarifications. On his first question about older workers in the Home Team, the Police will be putting in place a more structured career transition programme. I had spoken about it recently. It provides our retiring officers with dedicated training time as well as subsidies for them to take part in career transition courses. These will enable them to have the necessary skills to transit smoothly into a second career.
Based on the outcome of these initiatives, MHA will also progressively extend these career transition support programmes to other Home Team departments. The departments are also actively looking out for opportunities to deploy and re-employ our veteran officers in both uniformed and civilian positions where we can tap on their experience, skills and knowledge.
The Member also asked about how we can have a better joint Home Team psyche for our officers. In today's complex operating environment, this is critical because no Home Team department completely operates in silo. In more complex situations, our officers often have to find themselves having to work together on the ground at the operational level. I spoke earlier about the Police Operations Command Centre, where you will have other Home Team agencies in that nerve cell. With quicker sharing of information, it will begin to translate into a fuller, whole-of-Home Team operational stance.
But to support this, you have to start from training, and officers need to go into their Home Team uniformed service knowing that they are part of a larger organisation and that they have to work together.
So, the Home Team Academy will be rolling out two new Home Team training modules later this year for our new officers. Officers will learn about the functions of Home Team departments. They will gain a better insight into the heritage, history, ethos and values of each department, as well as the importance of integration across the Home Team departments. As an officer progresses through his career, he will be trained in joint operations and gain an understanding of the different capabilities of the Home Team departments. So, we have courses like the Home Team Leadership Programmes for Senior and Junior Officers, and the Home Team Senior Command and Staff Course, which will equip officers at different stages of their career with the knowledge, skills and network to work together as one Home Team.
The Chairman:\tMr Patrick Tay.
Mr Patrick Tay Teck Guan:\tI just wanted to ask the Minister, as it was announced earlier, Police Officers will transit from revolvers to pistols. I just want to clarify whether the issuance of pistols and use of pistols will be extended to APOs as well.
Mr K Shanmugam:\tThis will depend on the operational needs. For now, we are looking at our own officers.
The Chairman:\tMs Sylvia Lim.
Ms Sylvia Lim:\t Madam, clarification in the opposite direction of Patrick Tay's clarification. In my cut, I did ask whether the Government had considered issuing non-lethal weapons, for example, to APOs. I wonder the Senior Minister of State could respond to that.
Mr Desmond Lee:\tI had explained earlier that whenever you give arms to any person, regardless of his background, there will always be these risks. In determining whether to arm an APO, you would look both at the risk assessment as well as the operational needs of the officer and the position in which he has been posted. So, I think we need to look at it from that perspective and try to address the risk upstream through proper selection and training.
The Chairman:\tMr Gan Thiam Poh.
Mr Gan Thiam Poh:\tI just want to clarify for the surveillance cameras which have been installed and also still going on. I understand that quite a lot of them are recording and re-recording. Will they be shown online if it is \"live\" recording?
Mr K Shanmugam:\tYou mean whether it will move from pre-recorded to real-time monitoring? Yes, we already have real-time monitoring capabilities. We intend to go further and enhance these with video analytics capabilities, because we do not have the number of officers to watch all the thousands of screens. So, for an effective system, what you need is a surveillance of the risk areas and artificial intelligence which then analyses it in real-time. This will allow the Police to form an assessment of an incident and react effectively in real-time. In fact, you will want to go further to use big data to conduct predictive analysis, so that you can intervene even before something happens. These are all in the works. But real-time monitoring is taking place already.
The Chairman:\tMs Sylvia Lim.
Ms Sylvia Lim:\t Madam, for the Senior Minister of State. I appreciate what he has said about risk assessment. But I do not think my question has been answered about whether the Government has actually assessed whether it is feasible to issue APOs, for example, with stun guns. I think the Singapore Police Force actually has that issued to some officers, but I do not know whether that has been considered for APOs. I just wanted to know yes or no.
Mr Desmond Lee:\tIs the Member asking for all APOs? Or just foreign APOs?
Ms Sylvia Lim:\tIn general, the APOs.
Mr Desmond Lee:\tI will take this back and check with the Police.
The Chairman:\tMr Faisal Manap. Keep it short, please.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied):\tThank you, Madam. Madam, I would like to seek clarification from Minister Shanmugam in relation to Mr Zainal Sapari's question. I just want to get a confirmation as well as affirmation from the Minister whether MUIS and PERGAS will be consulted, because I believe that MUIS and PERGAS will be able to provide a more accurate interpretation of the imam's text, since he is said to be quoting from verses in the Quran.
Mr K Shanmugam:\tCan I ask the Member whether he thinks that it is alright to quote from a text and encourage violence against others? Can I have a direct answer, please?
The Chairman: Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap:\tMadam, from my own knowledge, the verses in the Quran are always in the context of showing mercy to the people and universe.
Mr K Shanmugam:\tThat is not the question I asked, and I did not refer to the Quran. Do you think it is alright for someone to refer to any holy text to encourage violence, either by quoting directly or speaking, encouraging such violence? Yes or no?
Mr Muhamad Faisal Bin Abdul Manap: It is wrong, Madam.
Mr K Shanmugam:\tThank you. That is the question the Police will be considering.
The Chairman:\tMr Christopher de Souza, do you wish to redraw your amendment?
Mr Christopher de Souza: Yes, Madam, I do. Behind the scenes, many uniformed and non-uniformed Home Team officers keep us safe and we have much to thank them for. I enjoin all Singaporeans to work with them in our battle against those who seek to do us harm. So, this leaves me to thank the Home Team on behalf of the House, and I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $5,016,755,900 for Head P ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $760,164,600 for Head P 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 R (Ministry of Law)","subTitle":null,"sectionType":"OS","content":"Mr Christopher de Souza (Holland-Bukit Timah): Madam, I beg to move, \"That the total sum to be allocated for Head R of the Estimates be reduced by $100\".
The Ministry of Law (MinLaw) has strategically built and strengthened Singapore's reputation as a legal hub. In so doing, several excellent initiatives have been launched: the physical expansion of Maxwell Chambers, thereby further boosting the Singapore International Arbitration Centre's (SIAC's) reputation as an exceptional arbitral education centre; the Singapore International Mediation Centre (SIMC) and the Singapore International Commercial Court (SICC).
By providing these platforms, Singapore provides a complete suite of dispute resolution mechanisms alongside the Singapore Courts. I should declare my interest as a member of the Singapore Bar who practises both courtroom and arbitral litigation.
Within the practice of law, Singapore's reputation for being a legal hub has been further established through local firms with cross-border expertise; through international firms situated in Singapore, through the qualified foreign law practice (QFLP) route, and through local firms entering into joint law ventures (JLVs) with international firms. Our local firms lean on the international networks of the London or New York-based firms, while the London and New York firms lean on the Singapore firms' clear, relevant and up-to-date knowledge and expertise of Singapore law, as well as the Singapore firms' knowledge of the region.
With regard to dispute resolution in particular, Singapore's reputation as a choice arbitration centre is testament to the excellent growth of the adjudication mechanism of arbitration and the service provided by SIAC. Over the last decade, the number of cases filed at SIAC grew by more than 300%. The latest statistics available is that of 2015, registering a record number of 271 cases filed in total. This comes up to a total of $6.23 billion in dispute, a 24% increase from 2014. In 2015, Singapore was ranked as the No 1 seat of International Chamber of Commerce (ICC) arbitration in Asia, and the fourth most preferred seat of arbitration in the world.
Singapore's proximity, neutrality, reputation for rule of law and efficiency have been able to attract parties from all over the world, not just the region, but the world ‒ from India, China, South Korea, Australia, Vietnam, the US, Hong Kong, Indonesia, British Virgin Islands and Malaysia ‒ to adjudicate here.
To capture the increase in opportunities expected as regional demand for dispute resolution continues to grow, the expansion of Maxwell Chambers is timely. But it is more than that. The investment into expanding Maxwell Chambers reflects both MinLaw's commitment to strengthening Singapore's status as a legal hub, as well as SIAC's high service standards, which I have personally encountered and experienced. It reflects both the long-term trajectory and the present quality of SIAC and MinLaw. This is excellent.
In my opinion, the epitome of a legal hub is being the choice jurisdiction in which companies and individuals choose to have their rights adjudicated and arbitrated. How much better for Singapore's reputation as a rule-of-law society and country if the companies and individuals choose Singapore law as the governing law of the dispute? This will allow Singapore law to be developed and its jurisprudence, where valid and worthy, to be exported. It will also be a good advertisement for Singapore, that is, our laws work and can be applied well within the context of global and regional commerce.
What is key for this to happen is the use of Singapore law as the governing law in dispute resolution clauses in both Singapore, Singapore party contracts, as well as Singapore foreign-party contracts. If the Ministry views the increased use of Singapore law at home and abroad as a positive development, what plans does MinLaw have to further strengthen Singapore's status as a dispute resolution hub, and how does it plan to promote Singapore law within that push? If I may, Mdm Chair, my next cut?
The Chairman: Yes, please proceed.
Mr Christopher de Souza: Access to justice is important in every rule-of-law society, every rule-of-law country. Initiatives, such as the Criminal Legal Aid Scheme (CLAS) and Legal Assistance for Capital Offences (LASCO), serve this important function in our criminal justice system. Last year, through the support of MinLaw, CLAS was able to employ two more senior advocates to mentor the other lawyers and to take on high-stake cases. Would the Minister provide an update on what further can be done to ensure access to justice for accused persons who may not necessarily be able to afford counsel?
In terms of civil justice ‒ for there is criminal justice and then there is also civil justice ‒ in terms of civil justice, event-triggered fee arrangements have been debated but not without some controversy to promote access to justice. Would the Minister provide an update on the review to event-triggered fee arrangements in Singapore?
[(proc text) Question proposed. (proc text)]
The Chairman: Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon): The Second Schedule of the Legal Aid and Advice Act sets out the requirements that have to be satisfied for the grant of legal aid. There is some form of discretion given to the Director of Legal Aid but there are conditions attached to the exercise of these decisions. As a result, some truly deserving cases fall through the crack and legal aid is not granted. Will the Minister consider an amendment to the Act to allow for appeals to the Minister, for legal aid for such cases provided that the Director grants leave for such an appeal?
The Chairman: Mr Murali Pillai.
Mr Murali Pillai (Bukit Batok): Mdm Chair, I declare my interest as a disputes lawyer in private practice.
In 2016, we saw significant positive changes in Singapore's legal industry arising from moves spearheaded by MinLaw. Amongst others, we launched the SIM University (UniSIM) School of Law to train lawyers in family and criminal law. We amended our laws to allow for third-party funding framework in the realm of international arbitration and enacted the Mediation Act to improve the framework for commercial mediation. These are important steps to diversify and add depth to the legal industry and to support our push to be Asia's leading disputes resolution hub.
In our push to be the leading legal commercial hub, we must continue to upgrade services to those who require bread-and-butter justice. We must continue to ensure that justice is accessible and available to individuals when they need it. One such area is in non-contentious probate and administration matters.
Currently, when a loved one has passed away leaving behind a property, an administrator or executor will have to be appointed by the Court to administer the estate. The administrator or executor will usually be a family member of the deceased. However, before the family member is legally recognised as an executor or administrator, he would first have to apply to Court for a Grant of Probate or Letter of Administration.
This process involves the Courts and involves engaging lawyers and may be time-consuming. Even when the grant is not contentious and straightforward, the process of making the application and finally obtaining the grant takes months. I also note that the caseload for probate matters in the Family Justice Court has increased over the years, by about 26%, between 2011 and 2015.
In our push towards digitisation and the greater use of data analytics, we should think about how to best harness the benefits of the digital age to improve our community services. Perhaps, a good comparison could be the Silver Support Scheme which is automatically extended to Singaporeans aged 65 and above who meet certain criteria. Perhaps, the Ministry could consider looking into how we may similarly use available personal information to shorten or simplify the procedure of obtaining a grant in non-contentious probate and administration cases.
The Chairman:\tDr Tan Wu Meng, you have two cuts. Please take them together.
Dr Tan Wu Meng (Jurong): In my constituency work, I have met residents who found themselves on the wrong side of the law in either civil or criminal cases. They made a mistake, but the problem is compounded because they do not know how to navigate the legal system. In some cases, it happened upstream where my residents do not know whom to approach or where to seek guidance from, before signing a contract that may prove disadvantageous to them.
What measures is MinLaw looking at to enhance access to justice and also to build basic legal awareness among the public?
Next, on legal hub, I would like to suggest the idea of \"an academia of industry\" ‒ a living ecosystem of cross-disciplinary deep skills and expertise; deep industry skills and knowledge to complement our internationally recognised law schools. Imagine having more legal firms with in-house expertise in FinTech, Blockchain and even the evolving impact of Blockchain-mediated \"smart contracts\". Imagine legal teams with deep knowledge of biotech and the legal issues surrounding genomics or personalised medicine that straddle multiple jurisdictions. Combining expertise across subject domains, this creates value and competitive advantage. And this can help us to provide skills and services in Singapore which no other legal hub can do.
Ms Rahayu Mahzam (Jurong): Much has been said about the uncertain future economy. The legal services sector will also need to respond to the changes in the economy and transform. The developments in the region and Singapore's reputation in international commercial dispute resolution put it in good stead to find opportunities for local law practices. The small and medium-sized law practices, may, however, find it challenging to compete at this level, especially if they have not been involved in any international practice.
During the last Committee of Supply (COS) debate, the Ministry indicated that it was working with the Law Society more specifically to identify how to strengthen small and medium-sized law firms. I believe there was a six-month Legal Industry Needs Study carried out to identify the technology and capability needs of these practices. I would like to enquire more about the details of the outcome of the study. I note the Tech Start for Law Programme jointly announced by MinLaw, the Law Society and the Standards, Productivity and Innovation Board (SPRING) Singapore. I am happy to hear about this. I would like to find out more about how the Ministry is supporting the small and medium-sized law practices, especially in the areas of technology adoption and business capabilities.
There are many different sectors within the legal industry. It would be useful for Singapore law practices to be guided on the emerging needs and trends of the legal industry in the future economy. What steps will the Ministry take to ensure continued growth and development of the different sectors within the industry? Perhaps, there could be a holistic business consultancy service offered to the small and medium-sized law practices so that they can be made aware of emerging markets and the concrete steps to be part of those markets. I would like to hear the Ministry's views on this.
The Chairman: Mr Patrick Tay, you have three cuts. Please take them together.
Mr Patrick Tay Teck Guan (West Coast): My first cut is on the career pathway for in-house counseI. I declare my interest as a corporate member of the Singapore Corporate Counsel Association (SCCA) and also a member of their Advisory Board.
Singapore should aim to be, and is certainly capable of becoming, the Asian hub for in-house legal capability. This will help attract multinational corporations (MNCs), whether Western or Asian, to invest or continue to invest, here. It will also feed the ambitions of SIAC, SIMC and SICC. In-house legal capability is highly exportable and it is not limited to the practice of Singapore law.
To be truly regional, the capability should not be limited to Singapore law or English law. We should seek to build expertise in the laws of the various countries in the region. Furthermore, the competencies of a regional legal counsel go beyond black letter law as they must encompass business management skills and ethical conduct.
To that end, SCCA has, in consultation with relevant stakeholders, developed a Competency Framework for three different seniorities of in-house counsel across three categories of competencies: legal, business and conduct. SCCA wants to encourage recruiters, employers and in-house counsel to use the framework as a reference guide to hiring, training and career development. The Competency Framework will be reviewed regularly to keep up to date with the market.
As SCCA is our National Trades Union Congress' U-Associate partner, we have studied this initiative and believe it to be useful for the reasons above. Hence, we will support and partner SCCA in the launch of this Competency Framework as a national standard for the in-house industry this year. However, if the Government is serious about developing the talent pool for in-house legal counsel in Singapore, then the Competency Framework needs to be mandatory at some point of time.
Singapore is one of the few countries in which in-house counsel are not required to meet any form of professional standards or any form of continuing education. This will come as a surprise to many a person in the boardroom, despite the fact that in-house legal advice privilege has been granted via statute.
A mandatory Competency Framework will compel in-house counsel in Singapore to acquire baseline knowledge that is relevant to his or her role, which constitutes a form of quality assurance to all who set up regional legal functions in Singapore. This will improve the quality of the legal talent pool in Singapore. Some quarters may say these mandatory standards and continuing education may translate into costs. I submit that even the in-house community needs to embrace Continuing Education and Training (CET), deep-skilling and SkillsFuture to stay ready, relevant and resilient.
I have spoken on this before and am raising it again to the Minister. I hope MinLaw will seriously look into reviewing the jurisdictional limits of the Small Claims Tribunal (SCT) so that more people can have economical and expedient orders and judgment to their contractual claims. In particular, I know many professional freelancers who are on a contract for service use SCT when they are not paid for their work rendered.
In this regard, I propose to raise the jurisdictional limit of SCT to clear claims of up to $20,000 and up to $30,000 with the consent of both parties to the SCT claim. Raising the claim limits will be a boon to claimants and freelance workers alike.
Since coming in force in November 2014, can MinLaw provide an update on the number of cases filed and mediated? Among all the Prevention of Harassment Act cases filed, what is the breakdown on the types, that is, how many involve community and neighbours, and how many are online, sexual and workplace harassment cases?
The Chairman:\tMinister Shanmugam.
The Minister for Law (Mr K Shanmugam): Mdm Chair, I thank the Members who spoke.
Fundamentally, in the areas of law and justice, we rank well because of our strong societal and institutional foundations. In terms of commitment to the rule of law, we are number one in Asia, as ranked by the World Justice Project's Rule of Law Index 2016 and the Asian Intelligence Report's Corruption Perception Index 2017. With that as the background, let me now speak about the legal sector.
Like many other sectors, the legal sector faces some challenges. I will touch on what we are doing to make Singapore a leading legal hub and to support the legal industry.
First, on strengthening our status as a dispute resolution hub. I thank Mr de Souza for noting the many good initiatives that really enhance our reputation and standing as a dispute resolution hub. Over the years, we have systematically built up our dispute resolution capabilities. We are now among the top five most preferred seats of arbitration in the world. We have well-regarded institutions which offer a suite of top-quality dispute resolution services, such as SIAC, SIMC and SICC.
Over the past year, we have further strengthened our position. We have ratified the Hague Convention on Choice of Court Agreements. This enhances the enforceability of Singapore Court judgments. We have enacted a new Mediation Act to strengthen the enforceability of mediated settlements. And we have introduced a third-party funding framework to give businesses additional financing options for international commercial arbitration.
We are also continuing to grow dispute resolution activities in Singapore. We are renovating and refurbishing the Red Dot Traffic Building and expanding the premises of Maxwell Chambers. This will increase the capacity at Maxwell Chambers and we can have more hearings there. It will also help attract more international institutions, arbitration chambers and law firms to do that kind of work in Singapore.
Second, on the promotion and use of Singapore law. Our legal sector can benefit from the promotion of Singapore in the region. Today, we do see an increasing use of Singapore law in cross-border transactions in this region. Singapore law is one of the default options in some Baltic and International Maritime Council standard forms.
Growth in this trend must come from businesses, led by parties and industries. They will benefit from an emergence of a default Asian law.
My Ministry has also financially supported the development of centres of excellence as an added factor specialising in a number of areas, including regional law. To name a few: the Centre for Asian Legal Studies, the Centre for Banking and Finance Law and the Centre for Law and Business. These institutions will help to grow Singapore's reputation as a thought leader in the law, anchor regional legal expertise in Singapore and strengthen the recognition and use of Singapore law.
Ms Rahayu asked if Singapore Law Practices (SLPs) could be made aware of emerging markets and the concrete steps SLPs can take to be part of those markets.
There are a number of schemes available to assist SLPs in regionalisation, for example, Enterprise Singapore's (IE's) Global Company Partnership scheme. It provides support, including financial support, to Singapore law firms to build market expertise via secondments to other places.
IE also has a Double Tax Deduction for Internationalisation. It allows our law firms to deduct the expenses for overseas business development and investment study trips against taxable income. My Ministry will continue working with the relevant economic agencies to support SLPs in their growth plans and regionalisation efforts because we have to look outside Singapore.
We are also looking to establish ourselves as a centre for international debt restructuring in Asia. We are well-positioned to do that because we are a major financial, legal and business hub. We have the expertise, efficiency and legal framework. We can facilitate complex cross-border restructuring. My Ministry has, therefore, worked with the Ministry of Finance on the Companies (Amendment) Bill, and that will enhance Singapore's debt restructuring processes. We are also working with parties from the public and private sectors to promote our debt restructuring regime, attract other influential players to base themselves in Singapore and develop multidisciplinary training and education for professionals in the industry.
Beyond dispute resolution and restructuring, we are looking to develop and grow new practice areas. More will be shared when the Committee on the Future Economy (CFE) Working Group on Legal and Accounting Services releases its report in April.
We will also continue to develop intellectual property (IP) as a growth area. It is important that the IP regime allows businesses to develop and commercialise IP in a cost-effective way. We are considering ways to improve our IP dispute resolution mechanism and we are considering the recommendations made by the IP Dispute Resolution Committee.
Finally, we will also support SLPs on technology. Ms Rahayu asked about the study my Ministry did with the Law Society to identify the technology and capability needs of small and medium SLPs. The study identified technology adoption as a key area of development for SLPs. The larger firms are able to invest in money, but I think the smaller firms have challenges in keeping up, making the investments, with rapidly-changing technological advancements.
We have worked with the Law Society and SPRING, and we have kick-started the adoption of technology by SLPs. Earlier this week, we launched the \"Tech Start for Law\" programme. This will provide SLPs with support of up to 70% of the cost to adopt basic technology products for practice management, online legal research and online marketing. We really hope that SLPs will take advantage of it. My Ministry will go out with the message as aggressively as possible.
Other than legal technology adoption, my Ministry is also working with the Academy of Law, the Law Society, the Courts and a number of economic agencies on several other aspects relating to technology. For example, we want to develop an ecosystem to accelerate the creation and adoption of legal technology. We want to study the feasibility of online dispute resolution and setting up such platforms.
In addition, we will also review our regulations to ensure that the regulations facilitate innovation and the development of legal technology solutions.
I have outlined some of the ways in which my Ministry is working to support the legal industry. We will provide the necessary partnership, framework, support and incentives. The legal profession and the private sector have to come into that partnership, embrace the changes, grasp the opportunities, some of which are disruptive. They really have to keep up with the developments in the Association of Southeast Asian Nations and beyond and strive to understand the regional market and distinguish themselves by the quality of their work and their business acumen because a fair part of the law is becoming commoditised through technology.
Together we can ensure that our legal industry remains vibrant and competitive in the years ahead.
The Chairman: Senior Minister of State Indranee Rajah.
The Senior Minister of State for Law (Ms Indranee Rajah): Mdm Chairman, I will address the rest of the Members' cuts.
To ensure that our legal industry continues to be vibrant and competitive internationally, the key stakeholders of the industry must actively embrace disruptive changes and grasp the opportunities at hand. These include private practitioners, in-house counsel and law students.
The Working Group on Legal and Accounting Services under CFE which I co-chaired with Mr Chaly Mah was set up to identify growth areas and develop strategies for the legal sector's growth and development.
The Working Group report will be released next month. It contains several key recommendations to position the Singapore legal and accounting services sector for the future, in particular, the need to build thought leadership through driving standards and research and equipping legal professionals to be future-ready through deepening skillsets and industry expertise. MinLaw will be working closely with the legal industry to achieve the outcomes envisaged in the recommendations.
Let me first elaborate on our efforts in capability-building. Last year, we established the UniSIM School of Law to address the projected shortage of family and criminal practitioners in Singapore. It took in its first cohort of 60 students in January 2017. Eighty percent of the cohort are mature students with work and life experience and seeking a mid-career switch to law. Their experience will stand them in good stead to deal with the emotional demands of family and criminal law.
To help these mature Singaporean students who are not eligible for the Ministry of Education's (MOE's) tuition grant defray part of the tuition fees, we introduced the MinLaw-UniSIM Study Award. There are three award recipients this year. The UniSIM law school curriculum is practice-oriented to better prepare the students for practice when they graduate. We also want to develop future-ready legal professionals who will be able to pursue the new opportunities that will arise in high-growth areas while leveraging new technology and innovation.
Dr Tan Wu Meng spoke about the need for our lawyers to possess cross-disciplinary skills and expertise. We agree. This is important, especially in today's increasingly complex business environment. To provide holistic advice, lawyers must have deep knowledge of their business and industries. This can be achieved through a more multidisciplinary and practice-oriented law curriculum, as well as targeted efforts in continuing professional development. For example, the UniSIM School of Law has a multidisciplinary curriculum where law students learn not only the law, but also have electives in social work, counselling, psychology, forensics and criminology.
We will get feedback from the industry on the skills needed by young lawyers, study international best practices in legal education, and work closely with the National University of Singapore (NUS), Singapore Management University (SMU) and UniSIM to update their law curriculum to better prepare our law graduates for the future economy.
Some of our law students have already taken the first step towards developing such multidisciplinary and practice-oriented skills. For example, a common interest in legal technology and innovation led a group of NUS students to start a ground-up initiative, called \"Alt+Law\". This initiative aspires to change the legal industry by exploring technological solutions for lawyers' tasks. This informal group, which includes Computer Science and Engineering students, hopes to use data analysis to supplement expert opinion for lawyers, policymakers and clients in areas, such as sentencing guidelines. These are the types of innovative and cross-disciplinary efforts that we must cultivate and encourage.
There are also programmes on leadership and management, such as the Singapore Academy of Law (SAL)-INSEAD Law Firm Leadership Programme, as well as specialist knowledge in the identified growth areas.
Another significant group in the legal industry is the in-house counsel. We note Mr Patrick Tay's suggestion to develop the talent pool of in-house counsel in Singapore and for a mandatory competency framework.
We agree that there should be continued efforts to develop the in-house sector. We have been working closely with the Economic Development Board to promote Singapore as a choice location for regional and global headquarters, including in-house counsel teams. Based on a study of Fortune Global 500 employment in corporate functions by Aon, Singapore has more in-house legal employees than Hong Kong and Shanghai in 2014. We are actively encouraging companies to anchor their decision-makers with global or regional mandate in Singapore. This includes the in-house legal functions.
We also encourage in-house counsel to continuously raise their standards of practice. To this end, we will continue to work with the relevant stakeholders to make available programmes to help in-house counsel develop the appropriate skillsets and competencies to carry out their jobs well. MinLaw will also monitor the progress and adoption of SCCA's competency framework with a view towards revisiting the issue of whether competency frameworks should be made mandatory in the future, taking into consideration the developments in the in-house counsel space.
Several Members filed cuts relating to enhancing access to justice. Access to justice is extremely important. The best laws and best Courts will be of little effect if the ordinary citizen has no access to them. My Ministry is working closely with the Judiciary, the Law Society and other stakeholders to enhance access to justice, especially for the man-in-the-street, by ensuring legal aid and pro bono advice are available to those who need it and providing mechanisms to help resolve community disputes.
Let me address Government-funded legal aid, pro bono legal advice and legal awareness.
The Legal Aid Bureau provides civil legal aid to less-privileged Singaporeans who pass the means and merits test. The means-test framework is regularly reviewed to allow persons of limited means to qualify for legal aid. In 2013, the qualifying criteria were updated to allow approximately 25% of Singapore Citizens and Permanent Residents to qualify for legal aid, up from 17% previously. This translated into about 300,000 additional Singapore Citizens and Permanent Residents who can potentially qualify for legal aid.
In response to Mr Louis Ng and Mr Murali Pillai's queries, the discretion to depart from the general means-test already exists for certain vulnerable groups of people, such as those who face hardship or are involved in certain family proceedings, to qualify for legal aid. In 2007, we amended the means-test criteria to help persons facing hardship, such as sudden mental or physical disabilities, or the sudden loss of income. In 2013, we amended the means-test criteria for persons in family proceedings involving children or protection orders, in order to protect the most vulnerable persons in family disputes.
We will continue to review and update the means-test framework and qualifying criteria to ensure access to justice for people who cannot afford to hire their own lawyer. This includes considering whether additional discretion should be granted to the Director of Legal Aid or other authority for exceptional cases.
Mr de Souza asked specifically about legal aid for probate matters. First, legal aid is available for such matters, if the applicant qualifies. Second, if the estate value does not exceed $50,000, the next-of-kin can also apply to the Public Trustee to administer the estate, subject to fulfilment of certain criteria. Third, for estates exceeding $50,000, the next-of-kin may engage a lawyer to assist in the estate administration and the costs can be recovered from the estate.
Criminal legal aid is available under the Criminal Legal Aid Scheme (CLAS) run by the Law Society's Pro Bono Services Office. Since the launch of enhanced CLAS in 2015 and the Government started directly funding CLAS, the number of CLAS applicants has increased significantly.
CLAS received 2,308 applications in 2016, compared to 1,780 applications in 2014, before the Government started directly funding CLAS. All 2,308 accused persons who applied to CLAS in 2016 received basic legal advice, of which 1,373 also received full representation or legal services not involving Court attendance. This is a threefold increase, compared to 2014, where only 431 accused persons received full representation.
More applicants are being helped because of the increased coverage of enhanced CLAS, such as under the Moneylenders Act. For example, there was an elderly lady charged with assisting illegal moneylending because she was tricked into letting a stranger access her bank account. She was assigned a CLAS lawyer, who was ultimately able to get the charges dropped.
From December last year, we have provided additional funding to hire two CLAS advocates, to strengthen the scheme.
I am encouraged by the strong partnership and support from law firms for CLAS. Several law firms have taken on a significant number of CLAS cases. Many lawyers have generously waived their honoraria. The largest five law firms in Singapore have also supported the CLAS Fellowship scheme. I hope law firms will continue to support CLAS and take on more cases on a regular basis to enhance access to justice.
Madam, I see that there are just a few seconds more, if I may complete the last few paragraphs of my speech.
The Chairman:\tOkay, please proceed.
Ms Indranee Rajah: Thank you. Other than Government-funded legal aid, pro bono basic legal advice is also provided at many legal clinics across Singapore. There are also family, civil and criminal legal clinics run at the State and Family Courts.
The Law Society also has various schemes aimed at promoting legal awareness. These include general legal awareness talks, as well as the annual Law Awareness Week programmes.
On community justice, we have put in place various mechanisms to resolve community disputes. Our Community Mediation Centre has a good track record of mediating disputes in the community. Disputes can also be resolved at the Community Disputes Resolution Tribunals (CDRT) and SCT. The Protection from Harassment Act (POHA) provides for simplified Court procedures and Court forms for Protection Order applications.
Mr Tay spoke about initiatives in this area. The issue of increasing the SCT's jurisdiction is currently under review by my Ministry and the State Courts.
To update on POHA, as of 31 January 2017, 268 applications for Protection Orders have been filed since it took effect on 15 November 2014. These include the applications by victims of sexual, workplace and online harassment.
Out of the 96 Protection Orders granted, 59 were granted by consent. Ninety-nine applications for Protection Orders were withdrawn. Seventy-seven Expedited Protection Orders have also been granted, and 18 Magistrate's Complaints have been filed for alleged breach of a Protection Order or Expedited Protection Order. Out of the 46 applications referred to mediation at the State Courts Centre for Dispute Resolution, 23 were successfully settled and five are pending completion of mediation.
Finally, on event-triggered fee arrangements which Mr de Souza asked about, MinLaw and SAL are studying this. There are some important considerations. There are different types of event-triggered fee arrangements and they have pros and cons.
In contingency fee arrangements, the lawyer shares in an agreed percentage of the sum recovered by the client where the claim is successful. On the one hand, there is certainty upfront as the lawyer's fees are directly tied to the amount the client recovers. On the other hand, the lawyer's fees have no correlation to the work done. The lawyer could receive a large sum of money for a short trial, or a small sum for a protracted trial.
In conditional fee arrangements, the lawyer receives payment of his legal fees only if the claim is successful. The arrangement may also allow for an uplift of fees in the event of success. For such arrangements, the lawyer's fees are based on the amount of work done for the client. But it also means that there is less certainty upfront about the fees that could be incurred.
There are also other considerations, for example, whether such arrangements would give rise to a potential conflict of interest, as the lawyer has a direct financial interest in the outcome of the litigation, and whether they may increase frivolous litigation or raise litigation costs. Different countries have adopted different models. We need to carefully assess these considerations to determine the framework which is most suitable for Singapore.
The Chairman:\tWe have a few minutes. Yes, Mr Murali.
Mr Murali Pillai:\tMdm Chair, may I ask the hon Senior Minister of State whether there are any steps to be taken to improve the process for the grant of non-contentious probate administrative matters? In my cut, I mentioned that the system basically has not changed and, even for non-contentious matters, the persons involved would have to make a Court application and involve lawyers as well.
The Chairman: Senior Minister of State Indranee Rajah.
Ms Indranee Rajah:\tI can say that we are actively reviewing not only that, but all other Court procedures where it is really for the community or the man-in-the-street. You will see that, in recent times, we have actually started simplifying various procedures. POHA, for example, is one such example where we try to make it such that the person does not need to actually instruct the lawyer in order to make an application. CDRT is yet another. So, this is an area which we will study to see whether the procedures can be simplified.
The Chairman:\tMr Patrick Tay.
Mr Patrick Tay Teck Guan:\tI just want to ask the Senior Minister of State, earlier on, on the POHA claims, since its inception in November 2014, how many of these that are filed involved harassment in workplaces?
Ms Indranee Rajah:\tI do not have a specific breakdown of the actual numbers for sexual and workplace harassment. I have given the consolidated figures. But if the Member wishes, perhaps, he can file a specific question on that.
The Chairman:\tMr Christopher de Souza, do you wish to withdraw your amendment?
Mr Christopher de Souza: SIAC, SIMC, SICC, third-party funding, these are excellent initiatives. They do not fall from the sky. They are the brainchild of MinLaw and collective innovative drives. These will further enhance and entrench Singapore's status as a legal hub. It leaves me, therefore, to thank MinLaw for its hard work and seek leave of the House to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $221,538,500 for Head R ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $335,085,000 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 B (Attorney-General's Chambers)","subTitle":null,"sectionType":"OS","content":"Ms Sylvia Lim (Aljunied): Madam, I beg to move, \"That the total sum to be allocated for Head B of the Estimates be reduced by $100\".
Madam, the Attorney-General's Chambers (AGC's) establishment headcount this year will be at an all-time high of 594 which, compared to the actual headcount seven years ago, is a 42% jump. It would be enlightening to know why so many more officers are needed, where these additional headcounts have been allocated, and whether this trend will continue and why.
Next, the Mission Statement of the AGC reads as follows: \"Serving Singapore's interests and upholding the rule of law through sound advice, effective representation, fair and independent prosecution and accessible legislation\".
There are two further observations I wish to make.
First, we see senior AGC officers recruited from the private sector, such as from large law firms. I agree that AGC can benefit from private sector talent who inject fresh perspectives and updated market knowledge. However, do such persons receive any briefings to reorientate their mindsets to function as public officers rather than private sector lawyers, from serving a client to serving the public? A private sector lawyer may be briefed to go all out to protect his clients' interests, but an AGC officer should not simply go all out to ensure that the Government wins in Court but should serve Singapore's interests by promoting justice. It is common these days to see AGC officers refer to Government bodies in Court as their \"client\" and in correspondence as well. This, to me, is disturbing.
Secondly, AGC, as an Organ of State, should be independent and ready to rein in the Government if it acts unlawfully or it is abusing its power. To this end, I am most concerned about the recent appointment of a former Member of Parliament as the Deputy Attorney-General (AG). This is not a personal attack against the new Deputy AG nor on his legal competence. But it is my view that filling a constitutional post in an Organ of State with a party politician is not ideal as it carries a risk of undermining public confidence in the AGC's stated mission of fair and independent prosecutions and it is a risk that is best avoided.
[(proc text) Question proposed. (proc text)]
The Chairman: Senior Minister of State Indranee Rajah.
The Senior Minister of State for Law (Ms Indranee Rajah): Mdm Chairman, Ms Sylvia Lim asked about the increased AGC headcount.
Looking at the period from 2011, then-AG, Mr Sundaresh Menon, felt that AGC was understaffed. His successor, Mr VK Rajah, took the same view as well. AGC raised it with the Ministry of Finance (MOF). MOF has also done a manpower review.
AGC's headcount was increased. Much of the recruitment thus took place from 2011 to 2015, with a 35% increase in headcount over that period. This helped to \"right-size\" AGC and ensured that it could deliver quality legal services as required by the public sector. The increase in manpower allocation was necessary, in view of the fact that AGC's portfolio and work demands have increased significantly over the past few years.
For example, AGC has taken on an increased volume in complexity of civil and criminal hearings. In recent years, there has been a significant increase in complexity of white-collar crime cases. There has also been an increase in sophisticated, organised and internationalised criminal activity.
The complexity of legal advisory work has also grown, in tandem with the increasing multifaceted nature of the Government's work. The demand for legal input to improve and speed up the formulation and implementation of policies has also increased.
In the international arena, AGC has managed an increasing number of disputes and negotiations to advance Singapore's interests.
AGC has also taken on several new functions. AGC now provides legal representation for Statutory Boards in judicial review proceedings. AGC has taken over prosecution work from the Police's Prosecution Branch. The AGC legislative team has embarked on the Plain Laws Understandable by Singaporeans (PLUS) project, an initiative to improve and modernise legislative drafting, to make our laws more accessible to the public.
With AGC's improved manpower situation, we do not expect the same pace of manpower growth to continue into the foreseeable future.
Ms Sylvia Lim also asked about mid-career recruits to the AGC. Mid-career changes are common in many industries. The legal industry is no exception. Mid-career hires can bring along fresh perspectives and ideas honed by their experiences elsewhere.
The key considerations are whether the mid-career hires possess the necessary skills, aptitude and desire to serve the public interest. We do not see any basis for suggesting that mid-career entrants will not serve the public interest.
It will be noted that many of our Judges are appointed to the Bench from the private sector. Can it be suggested that they are all not suitable because they come from the private sector?
It will also be noted that some Cabinet Ministers are appointed from the private sector, including both officeholders in MinLaw. Would Ms Lim suggest that they are not suitable because they were not in the public sector all their lives?
Finally, Ms Sylvia Lim seemed to suggest that senior officers in AGC should not have had any political affiliation. If she is saying − as a matter of institutional philosophy − that there is something inherent about the office of AG that rules out political affiliation at some time, then that will be inaccurate.
In many first-world countries, the AG, as the head of AGC, is, in fact, a sitting Member of Parliament or politician. In the United Kingdom, the AG is a Cabinet Minister. He is also the Chief Legal Adviser and also oversees the Prosecution Service. Australia has a similar system. The AG is a member of the Legislature.
Likewise, in the United States (US). In the US, the President appoints an AG − and the current AG was a Republican Senator no less. The US AG had taken positions on political issues as a Senator. He resigned from the Senate just before being appointed AG and continues to be a member of the Republican Party.
So, as a matter of systems design, many countries see it perfectly proper to have an AG who is a politician.
We have adopted a slightly different model. In our system, the AG and AGC officers are not politicians and are not members of political parties. But it is going too far to suggest that AGC officers must not have previously had any links with any political party. We must bear in mind two points.
First, AGC must be led by the best legal talent available. Our talent pool for the highest legal appointment is small. It is common for political parties to get the best legal talent. Some of our top lawyers have been Members of Parliament. Look at the senior partners and top lawyers in our largest firms. Drew & Napier − Mr Davinder Singh Senior Counsel (SC), who is generally recognised as the top litigator in town, was a People's Action Party (PAP) Member of Parliament; Wong Partnership − the top litigator, Mr Alvin Yeo SC, was a PAP Member of Parliament; Allen & Gledhill − one of the two SCs in the litigation department, Mr Edwin Tong, is a sitting Member of Parliament.
Madam, may I beg your indulgence? I just have a few paragraphs more.
The Chairman:\tYes, please proceed.
Ms Indranee Rajah: Thank you. If you look at Rajah & Tann − the current Chief Justice, as well as Judge of Appeal Steven Chong and Justice Quentin Loh came into public service, as well as the previous AG. And, in the last few years, several others have also been taken from other firms and the private sector, to come into the Public Service.
In our view, those whom I mentioned, who are still in private practice, would all, together with Mr Hri Kumar SC, be considered to be among the top six to seven litigators in town. This wealth of talent should be available to the Public Service.
Ultimately, the most important considerations are the quality, character and integrity of the individuals appointed to lead AGC.
To put matters in context, of those appointed SCs in the past 10 years, as of last month, only 16 were in private practice or remained in private practice. As stated earlier, Mr Hri Kumar is amongst the top six to seven litigators in Singapore today. He is recommended in publications, such as Chambers Global and Asia-Pacific Legal 500. He has been hailed as, I quote, \"an extremely… impressive litigator\". Others have observed that, again I quote \"few senior counsel … can rival the prowess of Hri Kumar …\". Senior figures in the profession have noted that he is \"incisive, diligent, fair-minded\", possesses \"rare intellect\" and is capable of \"consummate advocacy\".
Appointments to the Public Service must, of course, be based on ability. But they are also informed by a confluence of other factors, including the willingness to make sacrifices for the public good and having a heart for public service.
I can tell the House that others have been approached for public sector positions, not necessarily for AGC, including some of the top six to seven, but they were not willing to give up their private practice for a number of reasons.
Mr Hri Kumar accepted his appointment as Deputy AG despite the considerable personal and financial cost to him. He loses the privacy he enjoyed in private practice. He also now earns significantly less than what he used to earn. We should be grateful that a person of such standing has agreed to dedicate himself to the public cause. We should welcome his spirit of public service.
Second, the ultimate decider of cases is the Court, not AG. While AG takes a position on whether to prosecute, it is the Court that eventually decides on innocence or guilt. This is why, in many countries, it is perfectly acceptable for the AG to be a politician.
In conclusion, we must ensure that AGC is sufficiently staffed and led by outstanding leaders in the law. This will enable AGC to serve as a steadfast guardian of the public interest and a steward of the rule of law.
The Chairman:\tMs Sylvia Lim.
Ms Sylvia Lim: Madam, I would like to state once again that my cut was not meant as a personal attack on Mr Hri Kumar nor a question of his legal competence. But I have three clarifications for the Senior Minister of State.
The first is, she mentioned that Mr Hri Kumar was the most eminently suitable candidate for the post of Deputy AG. Is she by implication saying that the Government does not see any other candidate from the Legal Service that could fill that post?
The second clarification is that the Senior Minister of State mentioned or was trying to say that AG or Deputy AG has a limited role because, ultimately, the decider would be the Courts. But does she not agree that actually, under the Constitution, AG and Deputy AG have very wide prosecutorial discretion? They can decide whether to charge someone, what charges to prefer and their discretion is virtually unappealable. So, in that sense, the posts of AG and Deputy AG are something with vast power, in fact, vis-a-vis the Courts.
The third clarification is that I do not know whether the Minister is able to give an indication of whether should the Deputy AG be faced with a file that is politically charged or has political connotations, whether he would actually take the step of recusing himself, which I think it is quite a common procedure in other countries as well.
The Chairman: Minister Shanmugam.
Mr K Shanmugam: Is he the most eminently qualified for this position? What I can say is that there are six to seven people who are considered outstanding litigators. He is one of those six to seven.
I do not know whether the Member will be more comfortable with Mr Davinder Singh or Mr Alvin Yeo. It is a fact that the PAP gets the best lawyers on its side.
Some of us come into Government, some of us go into − when I say \"us\", I mean litigators − the Bench, and some litigators do other kinds of public service. And Senior Minister of State Indranee Rajah made the point that a couple in this top six, seven have previously indicated that they would prefer not to come into the Public Service. I do not think it is appropriate to go beyond that.
He is eminently qualified, there is no question of his abilities; you do not question his abilities. The real issue is: is there something systemically wrong?
Ms Sylvia Lim waxed lyrical about the appointment process in the US, and Jeff Sessions. And they have a system where a sitting Republican Senator transfers over and becomes AG, absolutely no problems. So, I would say I do not see any issue with someone who has had a link in the past, for the very sound reasons that Ms Indranee Rajah has given.
Second, wide discretion, but in matters that go to Court, ultimately, the Court decides. If exercise of discretion is required, of course, AGC decides − AG, Deputy AG, Solicitor-General – based on a variety of factors, and that is why you choose people of character and competence.
You can see that the legal institutions in Singapore since Independence, whether it is Judiciary, AGC, the Legal Service, the Bar − we are one of the few countries that has made these institutions much better than from when we took over from the British, compared to all the other countries that the Member referred to. This is a Government that builds up institutions, not pulls them down.
Third − should the Deputy AG disqualify himself? There are clear rules on when lawyers should recuse themselves from particular matters and I am sure every lawyer in AGC is aware of the laws relating to recusal.
The Chairman:\tMs Sylvia Lim, do you wish to withdraw the amendment? Or you have a further clarification?
Ms Sylvia Lim: No, Madam, I wish to say that my reservations remain but, nevertheless, I do respect that AGC has to continue with its work, and I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $154,612,600 for Head B ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $4,836,000 for Head B 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":null,"sectionType":"OS","content":"Mr Murali Pillai (Bukit Batok): Mdm Chair, I beg to move, \"That the total sum to be allocated for Head E of the Estimates be reduced by $100.\"
I would like to declare my interest as a litigation lawyer in private practice.
The Singapore Judiciary is widely recognised as being amongst the most efficient and responsive judiciaries globally, dispensing justice with independence, integrity and impartiality. The visibility of the Singapore Judiciary has increased over the years, especially with the launch of the Singapore International Commercial Court in 2015.
Our Judiciary is also a progressive one which continually looks to anticipate future developments in the legal industry and profession. This is evident from the various Judiciary-led initiatives and reforms, such as collaboration between the Family Justice Courts and the Singapore Mediation Centre, to provide parties with more options to settle their family disputes amicably, the reforms to the medical litigation process, and leading the charge for the increasing use of technology in the way law is practised and justice dispensed.
As we continue to strengthen our status as a regional and global legal hub, I propose we update our Court practice of taking oaths in Singapore when giving evidence, to bring this in line with the practice in other major common law jurisdictions and better reflect our nation's multi-religious values and expectations of witnesses who give evidence in our Courts.
Let me start off by outlining the purpose behind taking an oath. I quote from a Canadian case: \"[T]he object of the law in requiring an oath is to get at the truth relative to matters in dispute by getting a hold on the conscience of the witness.\"
The current Oaths and Declarations Act, when it was first enacted in 2000, combined what was previously the Oaths Act, the Oaths of Office and Allegiance Act and the Statutory Declarations Act. Section 4 of the Act allows persons giving evidence to take an oath.
Based on current Court practice and the Act, only persons of the Christian faith are allowed to take oaths when giving evidence. All other persons must make affirmations.
It is noteworthy that the original Oaths Act enacted in 1890 contained a provision which allowed a person to give evidence on oath \"in any form common amongst or held binding by persons of the race or persuasion to which he belongs, and not repugnant to justice or decency\".
This provision was, however, repealed when the current Act was enacted in 2000 on the basis the repealed provision was largely historical and intended to cater to our largely migrant society in the past where different communities carried with them different customs on how oaths were to be made.
I propose that the current practice in Courts and under the Act be updated so as to allow persons of all faiths to take oaths in accordance with their religious beliefs when giving evidence in Courts, deposing affidavits or making statutory declarations.
This may be viewed as a technical point but, in my respectful view, is nonetheless an important symbolic point that is in keeping with our nation's values and better serve the objective behind the taking of the oath that I outlined earlier.
This also accords with the practice in major common law jurisdictions, such as Canada, Australia and the United Kingdom (UK). For example, the UK Oaths Act 1978 expressly enables persons of all faiths to take either oaths or affirmations as they see fit.
[(proc text) Question proposed. (proc text)]
The Chairman: Senior Minister of State Indranee Rajah.
The Senior Minister of State for Law (Ms Indranee Rajah): Mdm Chairman, I thank Mr Pillai for his cut. Mr Pillai correctly pointed out that the current practice in our Courts allows Christians to take oaths by swearing on the Bible. This is a long-established practice which can be traced back to the UK tradition, which we adopted. But the important point is that this practice does not affect those with other religious beliefs or those who conscientiously object to the taking of an oath. This is because they can avail themselves of another established alternative − making an affirmation.
Under the Oaths and Declarations Act, the taking of an oath has the same legal effect as making an affirmation. Making an affirmation is, therefore, not an exception to the general rule. It is simply an alternative to oath-taking. Seen in this context, our current practice of taking oath is really a historical exception.
Mr Pillai has suggested that it may be possible to update the current practice of taking oaths, such that people of all religions can take oaths in accordance with their religious beliefs.
First, there is no need to do so, given that an affirmation has the same legal effect as an oath and is neutral.
Second, there are practical issues with Mr Pillai's suggestion. There are many religions in the world today − some are well-established, others less so. It would be difficult to expect us, or the Courts, to have sufficient knowledge about all religions so as to be in a position to administer oaths correctly under each of those religions.
A move to change the current practice of taking oaths may also invite a multitude of claims from people of different religious beliefs. This will come at a considerable cost and does not seem necessary in light of the fact that the existing practice allows for persons of all religious beliefs to take an affirmation, which has the same legal effect as an oath.
It is, therefore, best for us to maintain our current system, which has worked well for us for many years.
The Chairman:\tMr Pillai, do you wish to withdraw your amendment?
Mr Murali Pillai: Mdm Chair, I thank the learned Senior Minister of State for her explanation. I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $231,266,100 for Head E ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $138,006,500 for Head E ordered to stand part of the Development Estimates. (proc text)]
The Chairman: I propose to take the break now.
[(proc text) Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mdm Speaker: I suspend the Sitting and will take the Chair again at 5.10 pm. Order.
Sitting accordingly suspended
at 4.51 pm until 5.10 pm.
Sitting resumed at 5.10 pm
[Mdm Speaker in the Chair]
[(proc text) Debate in Committee of Supply resumed. (proc text)]
[Mdm 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 V (Ministry of Trade and Industry)","subTitle":null,"sectionType":"OS","content":"Mr Liang Eng Hwa (Holland-Bukit Timah): Mdm Chair, I beg to move, \"That the total sum to be allocated for Head V of the Estimates be reduced by $100.\"
Our economic strategies have evolved at different phases of the country's development. As the global economic landscape changes, we correspondingly updated our economic strategies and developed new competitive advantages and capabilities to ride on the prevailing opportunities.
In our earlier post-Independence years, we started off competing as a low-cost manufacturing location, attracting multinational corporations (MNCs) to set up in Singapore while at the same time also growing our own timber by building up home-bred companies. Complementing our strength as an entrepot, we built up export-led industrial capabilities augmented with a skillful workforce.
In the 1980s and 1990s, we further moved up the value ladder, creating value-adding hubs, such as manufacturing, petrochemicals, financial services, shipbuilding, air and sea transportation, among others. We also encouraged local enterprises to go regional and seek growth through internationalisation.
By any measure, our economic development has been a great success. It has progressed the country, created good jobs, incomes and opportunities, brought about a better quality of life and strengthened our financial security.
Fast forward to today, the operating context has once again changed and, this time round, with fast disruptive implications. The rise of anti-globalisation sentiments and the inward-looking policies of the new United States (US) administration are real and present concerns, although we do hope that these changes are not permanent and can improve over time.
But what is of more consequence to us are the permanent and irreversible changes that are taking place even as we speak. For example, the global value chains are being restructured and, as a result, we have seen international trade slowed. Countries like China and the US are in-sourcing more than before due to availability of better production technologies. This has direct and indirect impacts on manufacturing, shipping, port and other supporting sectors where we have built up strong capabilities.
But the overriding reason why it is the time again to reposition our economy is the rapid technological changes that are fast disrupting businesses, products, services, the value chain and the way we earn our living.
In the midst of these developments, domestically for Singapore, our economy started to grow at a more mature pace of about 2%. Our population entered into a steeper rate of ageing and we are nearing the limits of the growth of our workforce. In other words, we will soon reach the full potential of the economy unless we add new capacity and capabilities again and create new growth drivers.
What this means is that we have pretty much plucked most of the lower hanging fruits or even the middle hanging fruits. From here on, our next unit of growth would have to come from plucking the higher hanging fruits which may well taste better.
In CFE lingo, this is what we meant by moving from value-adding to value-creating or, in the case of internationalisation, encouraging our enterprises to move beyond the traditional markets into more challenging international markets to seek further business growth.
Well, it sounds like a new economic strategy is needed and here enters CFE and its recommendations. We need to do the \"single or double jump\", so to speak, in terms of overall capabilities so that these higher hanging fruits are within our reach. This is doable and we can build on our existing advantages.
What I like about the CFE report is the \"true to ourselves\" way that it sums up the global and domestic realities that we face today and in the future, and the no-frills but pragmatic way in which it outlines what needs to be done to get to the new promised land.
Whether it is about strengthening Singapore's international linkages, deepening individual skills, enhancing enterprises' capabilities, building a digital economy, the Industry Transformation Maps (ITMs) or working together in new ways, these are not unexpected undertakings but are absolutely essential to transform the economy.
Even if we could get just some of these efforts to bear fruits, we would have moved or pushed the frontiers forward. In some of these key thrusts, we may need to start in small steps initially to gain traction. Thereafter, we scale up fast so as to multiply the value and move the needle.
ITMs clearly demonstrated this grounded and microeconomic-centric approach. By bringing into the ITM platform relevant stakeholders of the industries, we could harness the collective wisdom of the industries to drive growth and opportunities and leverage the mutual resources and support to overcome challenges and build new capabilities. But ITMs can only succeed if each of the stakeholders ‒ enterprises, the trade associations and chambers (TACs), labour and agencies ‒ are aligned to a common purpose, and almost altruistic about it. Also, ITMs need to have the space and the risk tolerance to experiment new ideas and also necessarily empowered to make speedy ground decisions to respond to fast-changing industry scenarios.
I hope that the whole exercise of CFE has also uplifted businesses' enthusiasm and confidence to embrace the new future. The Government can and should help, support, facilitate and enable. But we also know that too much of it can also be counterproductive.
Already, I felt that the Government's hand is everywhere to be seen within the economy, not to mention the extensive assistance schemes and support offered by agencies like the Standards, Productivity and Innovation Board (SPRING), International Enterprise (IE) Singapore and others.
In the sort of economy that we envisaged where we gear towards value-creating, innovation and more entrepreneurship, there should actually be less of Government and more of the spirit of enterprise, as what the Minister for Finance said yesterday.
[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]
Ultimately, it is still the businesses that will come up with the next \"killer\" product or services that can sell to the consumers of the world. Businesses should be the trendsetters. The Government can help, but the Government may not always make the right business call.
Sir, I would like to also take this opportunity to ask the Minister a few other specific questions.
Firstly, the CFE report pointed out that Singapore must continue to remain open and connected. But that will also make us more vulnerable to global trends and changes, such as the US withdrawal from the Trans-Pacific Partnership (TPP) and Brexit. How will this strategy of remaining open and connected serve us well, given the rise of anti-globalisation sentiments globally?
Secondly, the Report also highlighted using forward-looking regulations and Government-led demand to support innovation. How does the Government plan to implement these recommendations?
Thirdly, urban solutions were identified as one of the growth sectors that would benefit from the rising middle-class and urbanisation in Asia. How can the Government help companies capture these growth opportunities?
Fourthly, TACs are critical partners in supporting industry transformation. How has the partnership between the Government and TACs progressed? How can TACs play a bigger role, moving forward?
Fifthly, we have been building up our startup landscape for some time now. What is the progress of our efforts? What more does the Government plan to do to enable the startup scene to be vibrant and continue to grow?
[(proc text) Question proposed. (proc text)]
The Chairman: Mr Charles Chong.
Mr Charles Chong (Punggol East): Mr Chairman, Singaporeans today enjoy a standard of living that is comparable to that of most advanced economies in the world. This has been made possible by our sustained economic growth through the years.
We have also weathered several economic crises in our short history. Significant recent examples of these are the Global Financial Crisis at the end of the last decade, the bursting of the Dotcom Bubble in the early 2000s and the Asian Financial Crisis in the late 1990s. Each time, we have come out of these crises more resilient, and we learn lessons from them and diversify our economy.
While the global economy seems to be recovering from the most recent financial crisis, growth is projected to be subdued and lower than in the previous decade.
Furthermore, the events that took place last year in the United Kingdom (UK) and in the US point to a world that is turning increasingly inwards. This is a worrying trend, which seems to have found some traction in some other countries, including a number in continental Europe.
While a move away from globalisation will likely hurt all economies, small and open ones like Singapore's will be hit particularly badly, as our fortunes are inextricably tied to the rest of the world's.
The report produced by CFE recognises these challenges. It also says that we can aim for 2%-3% growth in the medium term. However, this is quite a bit lower than the 5% that we were used to for many years. For example, our gross domestic product (GDP) growth averaged 5% from 2001-2010, despite the bursting of the Dotcom Bubble at the start of that period and the Global Financial Crisis at the end of the decade.
In 2016, we grew at 2% which, as the Minister for Finance has observed, is at the lower end of the 2%-3% target referred to by CFE, even though it is still in line with the medium-term projections.
Mr Chairman, the effects of this have, however, been felt by Singaporeans and many residents I have spoken with in my constituency they have told me that they are personally feeling the pinch of the slower growing economy.
With this in mind, I would like to ask the Minister for Trade and Industry to elaborate on the outlook for Singapore's economic growth in the short to medium term and how it will continue to create good jobs for Singaporeans.
Ms Foo Mee Har (West Coast): Chairman, the Singapore economy grew by 2% in 2016, boosted by a better than expected fourth quarter performance from a rebound in the electronics and biomedical manufacturing clusters. However, growth in other sectors remained weak. The Ministry of Trade and Industry (MTI) has forecasted that the economy is likely to grow between 1% and 3% and global growth is expected to pick up slightly in 2017.
Faced with a modest outlook for the coming year, I am concerned about the risks to growth from the rise of anti-globalisation sentiment, Brexit, uncertainties about the Trump administration's economic policies and the possibility of a sharper than expected slowdown in China. However, we do see that Asia remains to be a bright spot, driven by infrastructure development and e-commerce.
What challenges and opportunities does the Minister see for Singapore and Singaporeans, amidst these developments? What measures are being rolled out by our Government to help the nation navigate the external uncertainties, including trade policies? How can our firms and individuals position themselves to thrive under these conditions? Should we be hopeful, Minister, that the pickup in the fourth quarter will endure and that Singapore has turned the corner?
On the ground, people are worried about their job security. Many businesses are struggling with the effects of globalisation. Labour market constraints and high cost of doing business remain key challenges. The business community complains about the rising compliance costs and that Singapore has grown less flexible and competitive. They also hear about the ambitious developments in neighbouring countries and worry that Singapore risks being marginalised. Some economists have gone as far as labelling Singapore as the \"new sick man of Asia\".
Notwithstanding the comprehensive set of recommendations by CFE, there is no silver bullet and many of the proposed initiatives take time to take effect, requiring significant efforts from all stakeholders. So, I would like to ask the Minister about his assessment of the outlook of Singapore's economy for the next two to three years?
Mr Kwek Hian Chuan Henry (Nee Soon): While CFE is focused on the long-term economic transformation, is there more that the Government can do to manage key business costs, such as rentals? We have seen rental costs decline considerably for industrial land, and Jurong Town Corporation (JTC) seemed to have made some downward adjustments. But there could be room for the Government to do more to influence the retail market rental. Should the retail slump worsen, as a short-term counter-cyclical measure, could the Government consider reducing property tax for retail real estate, on condition that the property tax savings get passed entirely to the operating businesses?
Miss Cheng Li Hui (Tampines): Small and medium enterprises (SMEs) today are faced with a number of cost pressures, from the water price increase, diesel tax increase, annual JTC land rent adjustments and so on.
Today, I would like to focus on the cost of regulations. An SME owner Mr Ong told me this story. One day, as he drove past some roadworks, he saw two men digging a pit, two men supervising, one with a blue helmet, another with a white helmet. A guy sitting on the excavator waiting to start work, with a signalman and a rigger man on standby for the excavator to start digging, plus two signalmen to direct traffic. Nine men in total to dig a hole. He asked if this was productive. I explained that this work process seemed to comply with the Building and Construction Authority's (BCA's) requirements.
I am sure some of us have heard construction company owners speaking of their frustrations keeping up with regulations, mandatory training for their workforce, shortage of labour quota and so on.
I am not so familiar with the construction industry. So, I did a check on some of the compliance requirements. Please bear with me as I run through some of them.
Under the Contractors' Registration System (CRS), there are seven major groups of registration heads, namely, Construction Workheads (CW), Construction-Related Workheads (CR), Mechanical and Electrical (ME), Maintenance (MW), Trade (TR), Supply (SY) and Regulatory (RW). Contractors and subcontractors only need to register in CRS if they wish to participate in public works and tenders.
During this economic slowdown, many companies do rely on Government jobs. I am sure the Minister of State's announcement that the Government will bring forward $700 million of infrastructure works in the next two years will be welcomed by the construction industry. However, this may not help the smaller companies. Let me explain why.
CRS is further divided into seven major categories − Construction (CW), Maintenance (MW), Supply (SY) and so on. In total, there are 63 workheads, and each of them has their own special requirements. Smaller construction companies may find it difficult to find the right heads, let alone fulfil the strict requirements. As a result, many construction companies have resorted to collaborating with one another to make use of their professional certificates to tender for projects. This may sound like a joint venture, but it is not. Borrowing of certificates drives up costs and compromises the intended objectives of CRS.
This is just one aspect. There are many regulations from the Monetary Authority of Singapore (MAS), JTC, the Urban Redevelopment Authority (URA), BCA, the Ministry of Manpower (MOM), the National Environment Agency that the business owner must try to understand and comply with. For the large companies, they have the infrastructure and the capital. However, for smaller companies, the multitude of regulations take capital and energy away from innovation.
I am not suggesting that we do away with regulations but they are there for a purpose. But surely, there must be cost efficiencies if we scrutinise and optimise the myriad of regulations that is imposed by agencies today. I would, therefore, like to propose that we initiate a study to identify and consolidate regulations while ensuring that we continue to protect and guard the interests and safety of the public. In doing so, we could lower the compliance costs for some SMEs.
Mr Chen Show Mao (Aljunied): Sir, over the past year and more, commercial rental for industry, office and shops has declined. Yet, a significant number of SMEs continue to cite the need for Government assistance relating to business rental. After this year's Budget was delivered, the Singapore Business Federation (SBF) said it was disappointed with the inadequate short-term support to lower business costs, including \"the absence of measures on rental rebates for businesses in general.\"
Why is that? Quite apart from the fact that no assistance is too much assistance as far as prospective recipients are concerned, it seems that businesses facing challenging times may find even falling business rental a substantial burden. And for SMEs in some sectors more than others, business rental makes up a significant part of their operating costs. Could the Ministry consider whether targeted assistance, for example, rental rebates directed at qualifying SMEs or startups in certain sectors may be feasible, say, to stimulate retail-oriented SMEs, startups or microbusinesses, so as to bring added diversity and vibrancy to our heartlands? There are good reasons for this: to help SMEs relieve some of the pressure they feel and better take on the challenges of restructuring and drive innovation.
Mr Dennis Tan Lip Fong (Non-Constituency Member): Sir, I would like to call on the Government to do a comprehensive study of the history of business rental costs in Singapore.
In survey after survey, year after year, escalating business costs have been cited as a perennial bugbear for SMEs. In its Budget recommendations for 2016 and 2017, SBF highlighted that there was an urgent need to assist SMEs with business costs in the immediate term so as to help them overcome near-term economic headwinds, and high rental costs have consistently ranked among the top cost concerns for businesses. In 2015, rental of premises was found to be the second factor with the greatest impact on profitability, coming in after manpower costs. Even though concerns over rental have finally dipped slightly in 2016 owing to slower growth overall, this is a problem that we must still pay close attention to.
I hope the Government will consider conducting a major comprehensive historical and international benchmarking study on business rental costs to understand why rental costs rose so rapidly over the past two decades and why, despite the Government's efforts in recent years to release more land through the Industrial Government Land Sales (IGLS) programme so as to ensure more industrial space, SMEs are still feeling the squeeze. The study should also include how the cost of doing business in Singapore compares globally, identify areas where the Government can provide greater support to our local businesses, and provide concrete recommendations in this regard. Only by having a deep understanding of the factors that cause rental costs to escalate can we incorporate the lessons into our long-term strategy and avoid crushing rental surges in future.
The Chairman: Dr Tan Wu Meng, do you want to take both cuts together?
Dr Tan Wu Meng (Jurong): Let me declare that I am on the Council of Advisers for the Shipbuilding and Marine Engineering Employees' Union (SMEEU).
Our workers ‒ our brothers and sisters − are concerned about the Marine and Offshore Engineering sector. Oil prices are not what they used to be. There is a sense of uncertainty in the industry. Any job losses will affect workers, breadwinners, families.
Retrenchments would also hurt the industry as well. When a worker is let go, skills are lost, institutional memory is lost. It makes it harder for the industry to pick up again when the economy and the sector improve, so it is all the more important that we help our workers, that we help our brothers and sisters.
So, can the Ministry advise whether the Government's measures to support the sector have been successful? What measures does the Government use to determine success? And what more is the Government planning to do?
For some sectors like e-commerce and e-payments, platform interoperability matters. But more generally in other sectors, too, a shared operating system benefits all the participants − less back-office paperwork for vendors, ease of use for customers and a scalability of the user base and opportunities.
So, I would like to ask: how is the Ministry working with regional partners and collaborators to build shared industry standards − almost a shared operating system − to deepen regional cooperation to benefit the different regional partners and our local businesses as well?
Miss Cheryl Chan Wei Ling (Fengshan): Sir, multiple trade indicators have shown that global trade has weakened in the past five years. GDP growth for developed economies is stagnating and fewer investments are taking place amidst the uncertainties around the world. In the past decade, Singapore's economy has been dependent on global trade. And this is likely to remain as we continue to be constrained by a lack of natural resources and small domestic consumption.
Political themes around the world are leading to a lot of uncertainty and could become game changers. But one thing that is certain is that free trade has invariably changed when viewed with the same lenses. If we look at the two powerhouses globally − the US and China ‒ their plans and developments have huge implications on the global economy. Any fiscal stimulus and deregulation from these countries will result in a domino effect through the value chain. Brexit is one such example. They may be at the early stages before formal negotiation with the European Union (EU), but their potential departure has tipped the iceberg after a ripple effect amongst the countries in the EU.
In the US, Trump's growth agenda seems to focus on three areas: short-term fiscal boost through lowering taxes for companies, domestic deregulation in the energy and healthcare sector, putting America first in foreign trade policy. This discussion of a new tax regime for companies have actually brought about mixed reactions. Similarly, in China, expansionary monetary and fiscal policies supported their growth with 6.7% GDP in 2016, but it is their slowest in 26 years. Moving ahead, it is clear that China cannot sustain its growth using previous policies. They have made announcements on a policy shift towards stability and industrial production growth. With these changing policies from our large trading partners, how will this impact Singapore? I would like to ask the Minister if there are changes in our strategy and tactical approaches towards globalisation. If so, how are we reviewing our existing free trade agreements (FTAs) and developing new ones? Also, what industry sectors are more likely to be affected?
Mr Lee Yi Shyan (East Coast): Sir, Singapore's economic development has benefited from global trade liberalisation and globalisation trends. Global trade has grown significantly in the last two decades, supported by global trade liberalisation and the proliferation of global value chains and rising incomes.
Our network of FTAs has given us preferential access to key markets, stronger trade linkages with our FTA partners and opened up opportunities for our companies. We also built on our position as a gateway to the region and to become an important hub for businesses.
However, the global trade landscape is fast changing. As the report of CFE has pointed out, trade and globalisation have become more politicised, as they are blamed for rising income inequality or the inability to create good jobs.
At the same time, the Committee also called for Singapore to strive to remain open and connected to the world. I, for one, agree that it is even more important today to stay open and be connected. But it will be challenging for us to do so in this current climate. Much depends on what the major economies will do. The US has withdrawn from TPP. There are also signs of increasing protectionism amongst the G20 economies.
In this challenging climate, what is MTI doing to ensure that Singapore and its key trade partners stay open and connected? How can we improve on our Association of Southeast Asian Nations (ASEAN)-centric FTAs and what is next in terms of Singapore's trade agreements? Will Singapore enhance existing bilateral FTAs and build new ones?
Mr Saktiandi Supaat (Bishan-Toa Payoh): Sir, the CFE report mentioned that Asia, especially Southeast Asia, is a region of high growth. We have very good diplomatic relations and trade with many of the Asian countries and our neighbouring ASEAN countries, which is a good start. How can local businesses tap on these opportunities and how will the Government support them? I am hoping for more proactive measures of creating jobs and directing overseas projects, particularly those in construction and infrastructure planning, to the local companies.
I had also mentioned in the Budget speech about building up our next generation in regional languages and cultures, so that they can connect easily with the regional counterparts. Besides the SkillsFuture Leadership programme, how much more can we do for the future generation of business leaders?
The Chairman: Minister Lim.
The Minister for Trade and Industry (Trade) (Mr Lim Hng Kiang): Mr Chairman, I thank Members for their comments and suggestions.
Mr Liang Eng Hwa and Ms Foo Mee Har asked about the global economic outlook and the implications for the Singapore economy. We expect global growth to remain modest in 2017, with growth projected to pick up slightly to 3.4%, from 3.1% in 2016. The US economy is projected to grow at a faster pace, primarily supported by domestic demand. Growth in the Eurozone is likely to remain modest, while China's economic growth is expected to ease on the back of its continued restructuring.
The global outlook also remains clouded with uncertainties and downside risks. Upcoming elections in key Eurozone economies may pose uncertainties regarding the direction of the monetary union. If anti-globalisation sentiments and protectionism take root, global trade will be adversely affected. Political risks and uncertainty in the new US administration's policies have also led to greater economic uncertainties and financial market volatility. These factors could, in turn, weigh on business and consumer confidence, dampening investment and consumption. At the same time, technological changes continue to gather pace, disrupting entire industries even as they create new opportunities. Many of these changes are still playing out and it is difficult to know with certainty how things will develop.
So, against this backdrop, the Singapore economy as a whole is on a stable and steady growth trajectory. GDP growth came in at 2% in 2016. Barring downside risks, we expect growth in 2017 to be similar to 2016. Mr Charles Chong observed that the growth rates have come down in recent years. As CFE has highlighted, we have to adapt to a lower but more sustainable rate of 2% to 3% growth as our economy matures and undergoes structural adjustments.
Mr Charles Chong asked about the outlook in the short and medium term. Let me try and summarise the key developments and trends.
First, our restructuring efforts are gaining traction. We have narrowed our productivity gap with other advanced economies, although there is scope for improvement, especially for domestically-oriented sectors. Overall labour productivity grew at a modest pace of 1.5% per annum from 2010 to 2016. Over this period, the productivity of outward-oriented sectors, such as manufacturing, wholesale trade and finance and insurance, have increased by 2.7% per annum, while that of the domestically-oriented sectors, such as construction, retail and food and beverage (F&B), grew by 0.7% per annum. As our restructuring efforts gather momentum, we can expect to see steady progress in achieving our productivity targets.
Second, our labour market remains resilient. Wage growth has been comparable to or higher than many advanced economies, in part due to the tightness in our labour market. Between 2010 and 2016, real median gross monthly income of full-time employed residents grew by 3.1% per annum. At the same time, the annual average resident unemployment rate has remained low, at 3% or lower since 2011, while the resident labour force participation rate has remained high. So, despite the difficult conditions that we are facing, our labour market is holding up.
Third, despite an uncertain environment, we remain globally competitive. The World Economic Forum's Global Competitiveness Report 2016-2017 ranked Singapore as the second most competitive economy in the world. We continue to attract a steady pipeline of investments, thus creating new job opportunities. Over the past five years, the Economic Development Board's (EDB's) investment commitments have brought in an average of S$12 billion in fixed asset investment and S$7 billion in total business expenditure annually. These investments are expected to create an average of 20,000 jobs annually when the projects are fully implemented.
Ms Foo Mee Har observed that despite the 2% growth in 2016, business sentiments remain weak. One reason for this is the uneven performance across different segments of our economy. Take manufacturing, for example. Growth in the sector was led by the semiconductor segment, which grew by 31% in 2016 and, to a lesser extent, the machinery and systems segment, which grew by around 5%.
On the other hand, the marine and offshore engineering segment continued to contract. Similarly, the printing and the miscellaneous industries segments of the general manufacturing cluster saw a drop in their output last year. It is thus not surprising that while firms in the semiconductor and machinery and systems segments are positive about their business prospects, firms in the marine and offshore, printing and miscellaneous industries segments would feel pessimistic.
Similarly, even though the services sectors on the whole saw subdued growth in 2016, there continues to be bright spots, such as in information technology (IT) services, education, health and social services. On the other hand, the retail trade segment will continue to face structural challenges as it adapts to e-commerce and weak consumer demand.
Even within the same sector, the performance of firms was also uneven. For example, within the logistics sector, firms with major contracts from the marine and offshore engineering segment were harder hit. Conversely, firms that had a diverse portfolio of clients from different industries, especially those that provided more integrated and specialised value-added services, did better than the industry average.
This uneven performance across our economy and the uncertain economic outlook explain the weak business sentiments and the sense of insecurity among our workers. Recognising that there are different opportunities and challenges for each sector, the ITMs are the right approach to address the specific needs of each industry. That is why we focus on ITMs.
The Government will continue working with our businesses and unions to overcome challenges that we are facing.
First, we introduced several initiatives at Budget 2016 to support our companies. They are still relevant and effective in dealing with the current situation.
One initiative is the SME Working Capital Loan, which allows SMEs to access unsecured working capital of up to $300,000 and complements existing financial schemes to support our SMEs. As at the end of 2016, more than $700 million and 4,800 loans have been catalysed, benefiting around 4,300 SMEs. With the improved credit availability under this scheme, our SMEs can better address their cash flow concerns and their growth financing needs.
Another initiative is the Automation Support Package (ASP), which complements SPRING's existing Capability Development Grant in helping companies achieve productivity improvements. In 2016, these two schemes collectively supported 226 automation projects. An example of a company that has benefited from this scheme is Commonwealth Culinary Creations Pte Ltd (CCC). This is a food supplier. Through the use of automation, CCC improved the quality, consistency and range of their confections. Their output per shift doubled, even though they used less manpower than before. This allowed CCC to scale up and take on larger business opportunities as well as supported its long-term goal to expand regionally and to the Middle East.
Second, the Government closely monitors our economy and stands ready to take decisive action if needed. In November last year, we introduced the Marine and Offshore Engineering (M&OE) Bridging Loan and enhanced the M&OE Internationalisation Finance Scheme to facilitate M&OE companies' access to working capital and financing. Both aim to stabilise the M&OE sector as it copes with prolonged weaknesses in oil prices.
Dr Tan Wu Meng asked if the support measures have been successful. The measures are expected to catalyse about $1.6 billion in loans over one year. As of February 2017, applications amounting to more than $90 million of loans have been approved. Based on feedback from participating financial institutions, we expect the pipeline demand to be strong, with more than 100 companies already indicating interest in the scheme. The access to financing will help companies finance their operations, bridge short-term cash flow gaps and take on new projects. Stabilising the industry will help to preserve Singapore's core capabilities in the sector and save jobs. With the stabilisation of oil prices, we are beginning to see some upstream and mid-stream activities taking place in the oil and gas sector. There is, of course, a certain amount of lag in the sector, so some of the suppliers and stockists may not feel the impact as yet. But anyway, the Government continues to monitor the sector closely and we track indicators, such as order books and output levels in the sector, and we continue to evaluate the feedback from industry players.
Third, we will continue to keep a close eye on business costs to ensure that they do not rise excessively. The unit business cost (UBC) index for the manufacturing sector fell 8.5% from 2015 to 2016. For the services sector, the unit business cost index increased at a more moderate 0.1% year-on-year for the first three quarters of 2016, compared to an average 0.5% increase per annum of the four years before that.
Mr Henry Kwek, Ms Cheng Li Hui, Mr Chen Show Mao and Mr Dennis Tan spoke about rental costs, which are a component of unit business cost. Let me try and address the issues in the following way.
First, we have to understand the contribution of rental costs for the different sectors. We do acknowledge that SMEs in the retail sector and in the F&B sector, rental cost, as a share of their total business costs, is around 30% and is, therefore, significant. But for the other sectors, rental cost is not so significant. For example, in the manufacturing sector, rental cost is a small share of total business cost at between 0.7% and 4.8%. Similarly, in most services sectors, rental cost constitutes around 5% of business cost.
Second, in the last three years, the rentals have been declining in all the various sectors ‒ industrial space, commercial space, retail and office. So, the problem has not been so severe in the last three years.
Third, the Government believes in letting market forces set the rent and we allow the private sector to provide the responses in supplying the demand. Where we intervene is where we recognise some possible market failures. For example, in startups where it is not so commercially viable to provide the space, the Government will step in and, indeed, we have. JTC set up LaunchPad@one-north in 2015 and plans to build a network of LaunchPads around Singapore. The next one will be completed in the Jurong Innovation District this year. JTC has also been developing industrial facilities with shared services for SMEs in order to reduce their capital expenditure and operational costs in such specialised facilities.
Mr Henry Kwek suggested reducing property tax for retail real estate. This will not help most of our retailers because the landlords would benefit directly and it is very difficult for the Government to instruct landlords to pass on the tax savings to tenants. We cannot compel them to do so in return for the rebates, as such a condition will not be enforceable operationally. Therefore, the Government has other ways to support our businesses, including schemes like the Capability Development Grant, which encourages businesses to build business capabilities by defraying up to 70% of qualifying project costs. This is a sustainable way to manage business costs, rather than through direct intervention through rental rebates.
Mr Chairman, let me now turn to the medium- and long-term challenges. We are confident that Singapore is well-positioned to seize opportunities of the future. CFE has identified two key thrusts − first, remaining open and connected and, second, building deep capabilities. Let me elaborate on the first thrust, and Minister Iswaran will speak more on the second.
Mr Liang Eng Hwa asked how our strategy of remaining open and connected will serve us, given the rise of anti-globalisation sentiments globally. Trade and external demand are key drivers of our economy, accounting for two-thirds of our GDP. Small and open economies like Singapore are especially vulnerable to global developments but, at the same time, our external linkages can also make us more resilient.
Our trade connections across the world have enabled our companies to access new markets and cutting-edge technology and have created good jobs for Singaporeans.
International Enterprise (IE) Singapore's 2016 Internationalisation Survey showed that our companies' overseas revenue grew 4.2% year-on-year, compared to the total revenue growth of 1.3% year-on-year. So, going overseas allows us to tap into the higher growth potential of Asia. When companies internationalise, about 60% of jobs created are for professionals, managers, executives and technicians (PMET) jobs. So, internationalisation helps us to create good jobs for Singaporeans.
Miss Cheryl Chan and Mr Saktiandi Supaat asked how we can support our companies to tap on overseas opportunities. We can do so in four ways.
First, we must continue to leverage our trade agreements. We have a network of 21 FTAs with 32 trading partners in multiple regions. These agreements helped our companies to benefit from tariff savings of over $900 million in 2015.
Our trade agreements also lower other barriers to trade. Under the Gulf Cooperation Council (GCC)-Singapore FTA, there is mutual recognition of halal standards. This means that a product that is halal-certified by the Islamic Religious Council of Singapore (MUIS) does not have to go through additional halal certification processes when it enters the GCC countries. So, this provides added certainty for companies which export products to the GCC countries.
Miss Cheryl Chan and Mr Lee Yi Shyan also asked what is next for our trade agreements, and Dr Tan Wu Meng asked how we are working with our regional partners to deepen cooperation on standards. Under the ASEAN Economic Community, ASEAN member states are looking at the harmonisation and mutual recognition of standards across a wide range of sectors, including automotives, cosmetics and medical devices, and aligning them to international standards wherever possible. We are also working with our ASEAN member states to improve trade facilitation through the ASEAN-wide Self-Certification regime and the ASEAN Single Window (ASW). These initiatives will also reduce the administrative burden and cost to our traders. We will also press on with our efforts for greater regional connectivity through the Regional Comprehensive Economic Partnership (RCEP).
We will also ensure that our agreements meet our changing business needs, especially in the digital economy. Common trade rules governing e-commerce will promote greater digital connectivity in the region by reducing barriers to e-commerce and improving security of electronic transactions. All these will be introduced and incorporated in our new trade agreements.
The second way we can support our companies is by deepening our linkages at the provincial, state and city levels. We can do so through bilateral platforms and government-to-government (G-to-G) projects. In China, Singapore companies have made inroads through our seven provincial business councils. Our third G-to-G project, the Chongqing Connectivity Initiative (CCI) will also enable us to engage the provinces in western China.
As provinces and cities within a country will differ in strengths and challenges, we also adapt accordingly. For example, the Vietnam-Singapore Industrial Park (VSIP) projects are spread across six provinces in Vietnam and cater to the priorities of each province, taking into account the locals' skillsets as well as investors' demand. So, Singapore food companies, for example, have set up in VSIP 1 in Binh Duong province in southern Vietnam to cater to the growing middle class and the expanding demand for premium food products. Meanwhile, companies in electronics manufacturing and logistics services have set up in VSIP 3 in Bac Ninh province in northern Vietnam to support the increased presence of consumer electronics MNCs.
We should also deepen our engagements at the city level. For instance, in Indonesia, Bandung and Makassar are keen to incorporate digital solutions in their city development. With IE Singapore's assistance, a Singapore e-government solutions company, Ecquaria, set up a software development centre in Bandung and is in discussions with the Bandung City Administration on the provision of e-government services. IE Singapore also signed a Memorandum of Understanding with Makassar to facilitate Singapore companies in providing Smart City solutions and technology.
There are also opportunities to be seized in developed markets. Singapore has hosted delegations from US states like Texas, Alabama and Washington, all of whom have been eager to find new markets for their exports and welcome new investments. At the same time, there is interest from Singapore companies to invest in the US. For example, AC Global Energy acquired technology from their US partner to convert pine wood to green diesel, biochar and wood vinegar. They currently operate a biodiesel plant in Tennessee and are looking to build another plant in Alabama. So, working closely with our economic agencies, we will identify mutually beneficial partnerships at the state level.
The third way we will support our companies is by strengthening our internationalisation efforts. The digital economy presents opportunities for SMEs to access new markets. Kino Biotech, an SME which sells healthcare products, such as collagen drinks, is using e-commerce to augment its internationalisation efforts to enter the Chinese market. With IE Singapore's assistance, Kino Biotech began listing their products on Alibaba's Tmall Singapore Shop in 2016 and found e-commerce to be an effective sales channel. They have now developed their own e-commerce platform, Kinofy, to serve as a marketplace for health and beauty products targeted at the Chinese market, and this platform will soon be supporting products from other companies as well.
In addition, Singapore companies can partner larger companies to venture abroad. InvitroCue, a home-grown biotechnology firm that was spun-off from the Agency for Science, Technology and Research (A*STAR), provides cell-based models for global pharmaceutical companies to test drug and medical devices. Since August last year, InvitroCue has collaborated with Qiagen Suzhou, a joint venture between Dutch MNC Qiagen and Suzhou Industrial Park Biotechnology Development, to jointly develop, brand and market new technologies.
Singapore companies enjoy greater economies of scale by going abroad together. TACs play a unique role in such collaborations. Last year, the Singapore Manufacturing Federation (SMF) and IE Singapore partnered our companies to help them collectively obtain lower product listing fees and better shelf displays, as well as organise promotional activities. SMF also helped to oversee the consolidation of our companies' exports, shipping them to the supermarkets in shared containers. Through this collaboration, our companies were able to bring their products overseas at a lower cost, compared to if they had done so themselves.
The final way which we will support our companies is through the Global Innovation Alliance (GIA), as announced by the Minister for Finance. The future economy will be characterised by a global network of innovation and talent. Cities which are plugged into this network will have a strong advantage. By linking our enterprises and students with overseas partners in major innovation hubs and key demand markets, our companies and people will benefit from the opportunities as well as the overseas exposure. Similarly, Singapore can also tap on the best global talent and ideas to stay at the forefront of innovation.
GIA's focus in each city will be tailored according to its strengths. In cities like San Francisco and Beijing, where there are thriving, world-class innovation ecosystems, we want our students and companies to be immersed in the environment and to be able to interact with them. In cities like Jakarta, innovation ecosystems are just rapidly taking shape and our companies should, therefore, be participating in these developments. Minister Iswaran and Minister of State Dr Koh Poh Koon will explain how our SMEs and startups can benefit from this initiative.
Mr Chairman, over the years, Singapore has adopted a consistent and deliberate strategy to remain open and connected. This has opened up new opportunities for our businesses and people, even during challenging times. Amidst the uncertain operating environment, we are convinced that staying the course remains the right thing to do. An open and connected Singapore will be better placed to tap on the opportunities of the future economy.
Ms Foo Mee Har: Chairman, ITMs were part of the $4.5 billion programme announced in the 2016 Budget aimed at promoting growth, helping companies become more competitive and creating good jobs in 23 industries. ITMs integrate planning and implementation, bringing together industry partners, TACs, unions and public agencies. Six ITMs have been launched so far, with 17 more expected to be launched this year. What results have been achieved and what lessons have we learnt? How can we fast-track the implementation of the other ITMs and ensure that they are implemented successfully?
The Minister for Finance shared that ITMs are \"live\" plans that will be adjusted along the way. We are in uncharted waters, with no blueprint or map to lead the way forward. And, together, we will feel our way through. It is encouraging that, rather than pick winners, MTI has chosen to build industry-level capabilities for all 23 sectors concurrently. But given our limited resources and the executional complexity in implementing these ITMs, would it not be more prudent to prioritise our efforts on industries with high-growth potential and well-established sector partnership structures?
TACs have been identified as playing a pivotal role in helping their respective sectors transform and scale up. During last year's Committee of Supply (COS) debate, I pointed out that TACs need to step up to their role and there is much that is expected of them. So, what impact, I would like to ask the Minister, the new Local Enterprise and Association Development-Plus (LEAD+) programme had in helping TACs improve their outreach, attract talent, develop their capabilities and strengthen their processes and services? Could the Minister share some good examples of how selected TACs have been successful in leading the development of industry-wide transformation and helping their members to make inroads overseas? We really need to learn from countries with strong trade associations, such as Germany, Korea and Taiwan, on how their TACs have helped their industries raise productivity, invest in jobs and skills, leverage research and development (R&D), promote the adoption of technology and form formidable consortiums to capture overseas business.
During my Budget speech, I highlighted the pivotal role, the great example that MAS has played in creating the enabling environment for the finance sector. I would like to ask the Minister what other sectors in the pipeline have similar plans to boost productivity, competitiveness and enable growth and innovation.
Ms Sun Xueling (Pasir Ris-Punggol): Sir, for ITMs, ideally, firms, TACs, unions and the Government would work together to understand the constraints that firms face and brainstorm how, with new modalities and new technologies, firms could move forward together.
The reality is that firms go into the discussion with different perspectives. Big firms wonder what is in this for me? Will there be discussion into who and what the potential disruptors to my business will be and what I should do? Will there be investments into new areas of growth and how can I benefit from that? Small firms wonder will there be honest sharing of best practices? Will I get to know more suppliers, more customers to help grow my business and will the Government help with grants to make my return on investment from using new technologies and new processes more appealing?
With such dynamics in place, how do we bring firms together to share the strengths that work for them and which could be trade secrets and also for firms to be honest about their weaknesses? I suggest that the economic lead agencies conduct in-depth one-to-one discussions to thoroughly understand the corporates and what they need.
To avoid being constrained by local models and local environment when putting together the ITMs, I suggest that disruptors, entrepreneurs from adjacent industries and overseas markets be brought into the ITM discussions. Resource panels can be set up to ensure that there are systematic exploration and follow-up on their inputs.
Lastly, setting the parameters for ITMs is going to be a crucial part of positioning the firms for success. Working on those potential parameters and eliminating potentials along the way is, in itself, helping firms make sense of an uncertain environment and helping them feel their way forward.
Miss Cheryl Chan Wei Ling: Sir, in 2015, manufacturing accounted for 20% of Singapore's GDP. This is a decline from earlier years as alternate cost competitive locations surfaced and availability of industry resources improved in emerging markets.
From the CFE report, it was recommended that Singapore continue to build a globally competitive manufacturing sector. Can the Minister provide more details behind the recommendation?
Additive manufacturing sector and robotics automation were cited in the Research, Innovation and Enterprise (RIE)2020 as cutting-edge technology across different industry verticals. Additive manufacturing had a long gestation period since the 1980s. It has improved and advanced tremendously in the past five years when digitalisation became more widespread and materials improved.
Extensive collaboration and consolidation have been taking place in the industry and this trend would only continue. The challenge is that global manufacturers like General Electric (GE), Airbus, Bosch, Siemens and so on of the different vertical industries are directly acquiring and investing in leading companies of 3D equipment manufacturers, software platforms and materials for printing. With their substantive investments and a strong focus on R&D and vertically integrated manufacturing capabilities, they will be ahead of the industry players when it comes to commercialisation. Which aspect is RIE2020 focused on? Will the collaborations we pursue result in a flow-through from research to social and economic impact, which is a key thrust of RIE2020?
Apart from our focus on ITMs, I hope the Ministry in future will take an active review to look ahead at emerging trends and gaps of the different industries so as to facilitate earlier skills training of our workforce and timely introduction of new courses or curriculum within our education system.
The Chairman: Mr Charles Chong, do you wish to take both cuts together? It is seven minutes.
Mr Charles Chong: Thank you, Mr Chairman. I will speak on both my cuts. The first cut relates to industry transformation and how we can help our businesses lower costs through a practice known as resource pooling. The second cut I will address innovation.
The Government has said that industry transformation will require strong partnerships at various levels. To this end, ITMs aim to coordinate policies from different agencies for each of the 23 industries covered by the Government's Industry Transformation Programme.
Each ITM is led by a single agency with overall responsibility for coordinating among the relevant agencies. This makes very good sense and is less confusing for our companies, who can look to the lead agency for their industry.
I understand also that the Government wants to work closely with our unions and TACs to promote industry transformation. This is also something to be encouraged as these stakeholders can provide valuable feedback, insights and connections to help us with this.
But apart from these sorts of public-private partnerships, another type of partnership is also needed to take place more often and on a larger scale, namely, partnerships within the private sector.
For example, businesses, especially SMEs, can consider employing a practice known as resource pooling. This refers to the sharing of the purchase cost of big-ticket items amongst companies which need to use it, thus lowering the cost per SME. This will help us adopt new technologies, which can sometimes be expensive to adopt without sufficient scale.
Resource pooling amongst businesses has proven effective in raising productivity and lowering business costs. However, it remains less common in Singapore, compared to countries like Japan.
I would, therefore, like to ask the Minister whether ITMs will be able to promote resource-pooling among businesses.
In my second cut, I would like to address the broader topic of innovation and how we can strengthen our innovation ecosystem. This is very important, because we are entering a new phase of growth that will be increasingly driven by technology and innovation.
ITMs are a step in the right direction, but transforming industries is not easy, with many stakeholders involved.
This is why we must get our innovation and productivity strategies right. We have done well in the past and, over the years, we have built up a dynamic research ecosystem with excellent research-intensive universities, mission-oriented research institutes under A*STAR, as well as a growing base of innovative local companies. The challenge is to do even better, given our slowing workforce growth.
Competition is also intensifying as other countries, including some in this region, are taking steps to increase their attractiveness as innovation hubs.
More broadly, we must ensure that we have a robust research RIE system in place to complement our efforts under the ITMs.
The Government has made significant investments in R&D over the years, including the latest $19 billion investment under RIE2020. It is important to ensure that we have structures and policies in place, so that our R&D investments can lead to positive economic outcomes. In particular, in line with the trend of open innovation, it is important to forge connections and partnerships across public and private sector players in our ecosystem.
I would, therefore, like to ask the Minister how we can strengthen our innovation ecosystem so that we can better prepare our companies to keep pace with technological developments.
Finally, it was recently announced that A*STAR will be transforming itself, quoting the news reports, \"to keep pace with industry changes and promote cross-disciplinary collaboration\". A*STAR plays an important role in our innovation system. It bridges the gap between academia and industry, and partners enterprises across the spectrum to transfer and co-develop technologies. Could the Minister provide a little more elucidation on what A*STAR's transformation will entail and how A*STAR will be better organised to support the changing needs of industry?
Ms Chia Yong Yong (Nominated Member): In a competitive environment, we learn from one another. Very often, competitors copy one another. Very often they become better. The more successful one is, the more one is liable to be copied. The same is true for companies, the same is true for countries. The easiest competencies for competitors to imitate tend to be those that are tangible, such as infrastructures. Changi Airport may be visible, such as the Singapore Girl and transactable.
On the other hand, intangible resources, such as intellectual capital, are harder to imitate. Intellectual capital comprises human capital, intellectual assets and intellectual property. For intellectual capital to be effective as our competitive edge and advantage, it must be directed, managed, developed, applied and protected holistically and strategically.
Put simplistically, the durability of our competitive advantage is a function of the speed at which we can be imitated. In the world that we now live in, it is not just about staying ahead. It is about staying alive.
I am heartened that at the highest level of our leadership, innovation and the prudent management of intellectual property and capital are seen as critical to our survival. I hope that the agencies designing and implementing the schemes to support innovation will also see that it is a matter of survival for our country.
I am heartened that, at the policy level, we could be seeing moves away from expenditure as a key performance indicator (KPI). But even so, I hope that we will see a true mindset change in the relevant agencies, and not just cosmetic changes.
I hope to be enlightened as to whether Singapore has crafted an overarching national innovation vision to steer our innovation policies to support national and institutional innovation programmes and projects and to provide the framework by which we would assess our performance against what we intend to achieve under our national innovation vision and how they compare with others globally. I hope we will move away from an \"ownself clap ownself\" assessment approach. I understand there will be structural reforms, I would like to know what the structural reforms are and will entail.
Finally, allow me to share what I once heard. It was a conversation between two ladies, when one contemptuously told the other that a certain Mrs X had yet undergone another facelift. When she was asked how she knew, the first-mentioned lady said: \"Why, it is as clear as the nose on her forehead!\"
The point I would like to make, Mr Chairman, is that the devil is in the details and the mindset. If we make only cosmetic changes or, if we do not execute structural changes rightly, we may end up with a nose on our forehead.
The Chairman: Mr Leon Perera, you have three cuts. Do you want to take them together?
Mr Leon Perera (Non-Constituency Member): Yes, please. Sir, we need to nurture RIE as a key driver of Singapore's economic success. What is equally important is to thoroughly review the economic impact of such public sector R&D spending so that we know what is working and what is not. Here, I have three questions.
Aside from the published data for the public R&D sector like employees, projects, patents, startup numbers, R&D spending and so on, does the Ministry study and publish the economic multipliers resulting from this spending? For instance, which fields of R&D have the highest long-term multiplier effect?
Secondly, what has been the economic impact of intellectual property (IP) generated from the R&D spent? For example, has this IP helped to create total business spending in the wider economy and, if so, how much.
Thirdly, does the Ministry also have a count of jobs that are directly or indirectly generated from that IP? Running and publishing regular analyses of this nature for Parliament and the public to review would help to ensure that our R&D spending is optimised for economic and other benefits.
Such analyses do not preclude some R&D spending going to knowledge creation for intrinsically altruistic and academic purposes. But knowing exactly what the economic impact is makes for greater transparency and better decision-making.
The second cut is on innovation competitions. Sir, the Defence Advanced Research Projects Agency (DARPA) in America holds competitions, such as the DARPA Robotics Challenge, DARPA Urban Challenge, where participants from various backgrounds and disciplines are challenged to develop revolutionary solutions to practical problems. For example, after the Fukushima nuclear disaster in 2011, DARPA organised a Robotics Challenge that spanned four years, aiming to spur research and technological advancement in the field of disaster robotics. The prize for the fastest robot to navigate an obstacle course based on conditions in Fukushima was $2 million and was won by the South Korean team.
Such large-scale competitions do not only stimulate innovation and the progress of the industry, but also encourage the right qualities of perseverance, creativity and teamwork among those in the R&D field. The resulting intellectual property could be harnessed to benefit the Singapore economy.
I would like to suggest that the Government, perhaps through public-private partnerships, hold competitions with significant grants or prizes to stimulate commercialisable idea generation from companies, campuses, research institutes (RIs), research centres (RCs) and the general public, with some conditions attached to facilitate the use of the resulting IP for the benefit of the Singapore economy.
Sir, private sector staff do serve on the Boards of our many economic agencies. But I suggest that we make more use of secondments of staff from private companies to the public sector to serve short stints to help with economic planning or promotion initiatives.
In the UK, the central civil service has just introduced a new framework for managing secondments into and out of civil service jobs, aimed at building meaningful links between the civil service and business leaders. Sir, I have met a few such private sector secondees into the British public service in the past and they demonstrated a keen knowledge of both private sector norms and constraints, as well as public sector priorities. Britain is also seeking private sector secondees to help prepare for the upcoming Brexit negotiations, which will be technically very complex. Japan similarly has private sector secondees working in its ministries to quite a significant extent.
In Singapore, there could be good demand for secondments in both directions, as business executives and civil servants may see the benefits of a stint on the other side. Of course, there are some potential pitfalls of secondment − ensuring that the stints are not too long or too short, enabling secondees to adapt to a new work culture and so on − but these can be addressed through good human resource (HR) frameworks.
Given the challenges of a 21st century economy and the predominance of lifelong civil servants in the upper echelons of public organisations and political officeholders, secondments from the private sector could better enable us to form and execute our economic policies.
Mr Yee Chia Hsing (Chua Chu Kang): Mr Chairman, Singapore, as an open economy that participates in international trade, is highly susceptible to external shocks and changes in business cycles.
CFE highlighted the importance of innovation, digitalisation and productivity for us to meet the challenges ahead, while the CFE report is mainly targeted at the private sector and there are ITMs to help companies and workers in various industries adapt to the future changes. Could the Ministry share how the Government and public sector are also adapting?
Mr Lee Yi Shyan: Mr Chairman, Singapore's sound regulatory environment has always been an important part of our attractive business environment. Our processes and regulations have provided a safe and predictable environment for our people and enterprises.
However, as the CFE report mentioned, this is an era of rapid technological change. The emergence of new business models has upended traditional industries, such as Uber and Grab in the taxi industry, and Airbnb in the hotel industry.
The Government will need to be nimbler, given the rapid pace of innovation and shorter technology cycles. I would like to ask the Minister for Industry how the Government, at the broad level, will adjust the way it works to keep pace with these trends.
Specifically, our regulations will need to keep up with the speed of industry disruption. These should adopt a balanced approach, placing safeguards on the risks in new industries, but also enhancing the ease of doing business. What changes will the Government make to ensure that we have an innovation-friendly and agile regulatory environment which supports the growth of promising sectors?
As part of our pro-business environment, it is also important to have clear and simple regulations to provide a conducive environment for businesses to start and grow. Overly complex regulatory processes leave business with less time and money for their actual business activities and this impedes corporate growth and innovation.
Therefore, besides pushing regulatory innovations in the new sectors, how will the Government ensure that our business regulations are streamlined and simplified to render Singapore most business-friendly against global competition? Will the Ministry consider a \"Cut Red Tape task force\" to greatly reduce layers of regulations added over time by various agencies?
The Chairman: Mr Henry Kwek, you have two cuts.
Mr Kwek Hian Chuan Henry:\tSir, both in and outside of Parliament, I have consistently advocated that as Singapore invents the future in key areas, it will be good if we can bring our startups along with us. I also talked about ways to implement regulatory sandboxes, modifying tender systems to give emerging companies with strong ideas a better shot at success. And in terms of regulations, leaning towards consumer preferences which are more embracing of the new economy.
Therefore, I am delighted to hear that CFE recommends using forward-looking regulations and Government-led demand to support innovation.
Can MTI provide specifics on how the Government plans to implement these recommendations? Can MTI also share which are the industries that we expect to see these implemented in?
More than half of the world live or work in urban areas and this number is increasing significantly every year, especially in Asia. This rapid growth, coupled with the rising expectations of the growing middle class, creates significant strains in cities.
Singapore is consistently ranked as one of the world's most liveable cities, with strengths in water management, green constructions, smart energy management, greenery management and inclusive urban planning.
We are also recognised as a global thought leader in this field, with initiatives, such as the Centre for Liveable Cities (CLC) and the Lee Kuan Yew (LKY) School's Water Institute, as well as an increasing number of global conventions and international events, such as World Cities Summit or the Singapore International Water Week.
Indeed, CFE identified urban solutions as one of the growth sectors that would benefit from the rising middle class and urbanisation in Asia. As Singapore invents the future, it is important that we bring our companies along this journey.
Can MTI share some of the successful, emerging Singapore-based companies that are successfully doing so in Singapore? Moving forward, can MTI share the specific ways in which the Government can do more to help our companies capture these growth opportunities?
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Sir, the intended implementation of an upstream carbon tax in 2019 shows our country's commitment to climate change mitigation. However, a carbon tax alone will not spur energy conservation and reduce emissions. The announcement has spurred talk that this could result in up to a 4.3% rise in electricity prices for downstream consumers. Industries could prepare for this rise in the next few years, factor in the rise in costs and end up not reducing energy consumption. The only one who would profit then would be the Government.
One of the most common tools used in conjunction with carbon taxation or cap-and-trade regimes around the world is the setting of hard targets for renewable energy production, coupled with carbon offset incentives. We should cement Singapore's commitment to energy conservation by setting a target for renewable energy production. Currently, only 4% of electricity in Singapore is produced from sources other than natural gas and petroleum. We should aim for 10% renewable energy production by 2025. This will put us on par with other small developed countries like South Korea which has a target of 7% by 2020 and Belgium, with 13%.
To provide incentives for power stations and other large emitters to turn to renewables, the Government should link the investment and use of renewable energy to carbon tax offsets. These offsets can be partly funded by revenue from the carbon tax revenue in the initial years.
The Chairman: Mr Yee Chia Hsing. You have three cuts. Please take the first two cuts only.
Mr Yee Chia Hsing: Thank you, Chairman. Chairman, there has been a growing interest in sustainability following our ratification of the Paris Agreement on Climate Change. We have pledged to reduce our carbon emission per dollar of GDP by 36% from 2005 levels by 2030. In his Budget Speech, Finance Minister Heng Swee Keat mentioned that a carbon tax will be levied starting from 2019.
One of our plans to reduce our carbon footprint is to raise the adoption of solar power to 350-megawatt peak (MWp) by 2020, which represents 5% of peak electricity demand. The SolarNova programme is a step in the right direction, although mainly in public areas of Singapore.
As it stands, when electricity from solar energy is exported back to the grid, solar facilities owners will sell the electricity back at a lower rate than the normal electricity price due to the deduction of a grid charge.
In many other countries, the reverse is true and solar facilities owners can sell the solar electricity at a higher rate than the normal electricity price. This is to encourage the adoption of clean energy. To encourage more installations of solar and other clean energy facilities, could we consider that grid charges be levied on a one-time basis commensurate with the cost of processing and connecting the facility to the grid, rather than on an ongoing basis? I would also like to ask the Ministry to elaborate further on our plans to encourage the use of clean energy in Singapore.
Next, Chairman, we are introducing a carbon tax on large direct emitters of greenhouse gases from 2019. The National Climate Change Secretariat said that this proposed tax rate is equivalent to a rise in electricity prices of between 0.43 and 0.86 cents per kilowatt-hour (kWh). It also stated that this could mean between 2.1% and 4.3% increase in electricity prices compared to current rates. On this note, I would like to suggest implementing a system of tiered charging for electricity based on consumption. We can consider setting the tier at a high level, hence we do not penalise the bulk of the households in Singapore.
Perhaps, we can set a benchmark for only the top 5% to 10% users of electricity for a start. The additional revenue can be used to subsidise the lower-income households so as to minimise the impact of the carbon tax on them.
The Chairman:\tMinister Iswaran.
The Minister for Trade and Industry (Industry) (Mr S Iswaran): Mr Chairman, I want to thank all the Members who have spoken on the MTI debate so far. At the debate on the Budget Statement, I emphasised that we need to gear up our economy and our enterprises so that they can seize the significant opportunities presented by the growth of Asia and the rise of the middle class here. So, I want to now elaborate on the work that MTI and our agencies are doing towards that objective.
The backdrop, as many Members have observed, is a confluence of political, economic and technological trends that is quite unparalleled in recent times. As many Members have emphasised, anti-globalisation and protectionist sentiments appear to be gaining momentum in the US and Europe. Global trade and production patterns are changing and the value chains are being reconfigured. Technological advances are disrupting business models and changing the nature of jobs.
It is increasingly harder to anticipate which sector, enterprise model or job type will be the next to see a major transformation. For example, the impact today of Uber, the sharing economy and fintech was not fully appreciated as recently as five years ago. We expect more industries to be \"Uberised\", but we cannot be sure which ones, when and to what extent.
Given such uncertainty, the most durable strategy is to focus on the fundamentals that will keep Singapore relevant to the world and its needs. This is why CFE has emphasised two basic points, Openness and Capability. Strengthening these fundamentals is the surest way to prepare Singapore for the future.
Minister Lim has already explained how Singapore and how we are growing and showing that Singapore remains connected to the world and open to trade, investments and talent. Secondly, it is also important for our people to deepen their skills, and companies to transform by building capabilities for higher levels of productivity, innovation and internationalisation. And I will elaborate on this aspect.
ITMs are a key mechanism to build enterprise capabilities and transform sectors. Ms Sun Xueling suggested deeper engagements with corporates, Mr Leon Perera enquired how we could involve the private sector more. I want to use the food manufacturing ITM which was launched in November last year, as an example to address these questions and suggestions. Mr Chairman, may I have your permission to show some slides?
The Chairman:\tPlease do. [Some slides were shown to hon Members.]
Mr S Iswaran: The ITMs integrate the Government policies and initiatives and promote collaboration among industry stakeholders to achieve transformation and growth through productivity, skills development, innovation and internationalisation. Four key planks.
SPRING is the lead agency for food manufacturing and they work with Government agencies and industry stakeholders to develop the ITM. The goal is to develop Singapore into Asia's leading food and nutrition hub. There are quantitative targets to galvanise the efforts to realise this goal. The aim is to grow our food manufacturing sector's value-add (VA) by 6.5% per annum, overseas income by 8% per annum, and productivity by 4.5% per annum, by 2020. These are, as Members would have acknowledged, quite ambitious targets, especially when we compare with other sectors and historical paths.
Ninety-eight percent of the almost 850 food manufacturing enterprises in Singapore are SMEs. The SMEs have been actively involved in the development of the ITM, which also aims to address their needs. For example, many SMEs found the cost of R&D and technology adoption prohibitive because they lack scale. Therefore, one component of the ITM is to build a network of shared infrastructure to increase productivity and create co-innovation opportunities.
One such shared resource is the high-pressure processing (HPP) tolling facility. Food in its final packaging is subjected to high levels of pressure to extend shelf life. The smallest of such machines cost about $800,000, which is not cost-effective for an SME to purchase for its exclusive use. For example, a typical small juice company with an annual production volume of 40,000 litres, would need such a machine for only about four days in a year.
So, SPRING will be investing at least $1.5 million in such an HPP machine. This machine will be located in Jurong, where there is a concentration of food manufacturing companies, and it will be ready by the fourth quarter of this year. Food manufacturers will be able to use the machine on a pay-per-use basis.
The ITM also aims to help companies collaborate on innovation with initial focus on MNC-SME projects. Montreux Patisserie, a local bakery, has partnered Unilever Food Solutions, for example, to develop new flavours and products. SPRING has started a Food Innovation Cluster (FIC) Workgroup so that our companies can spawn more of such partnerships with global food innovators and corporate accelerators.
As Mr Charles Chong has emphasised, such resource pooling, whether it is in terms of equipment or R&D effort, can help raise productivity and lower business costs. However, resource sharing is still a relatively nascent idea for local food manufacturers, and it is important that our business owners be open to such novel business arrangements if we are to succeed in industry transformation.
ITMs also seek to ensure that regulations do not hinder innovation and transformation. MTI and SPRING, for example, commissioned their review of food manufacturing regulations and the preliminary findings indicated that there is a growing industry interest in novel food ingredients, such as those produced by novel processes or from non-traditional sources. But there is a need to establish and communicate a regulatory pathway for such novel food ingredients. That is something that is now under regulatory review actively by the Government.
If I can pool some of these ideas together, Aalst Chocolate is a company that exemplifies the enterprise transformation that we seek through these ITMs. I hope Members had a chance to try or sample some of their chocolates in the Members' Room earlier. When I last checked, they were all gone, so I am assuming it is because they were consumed.
Established in 2003, as the first Singaporean-owned chocolate manufacturer, Aalst has grown rapidly over the years. Government agencies have supported Aalst as it enhanced productivity through automation, ventured into new overseas markets and invested in research and innovation. With SPRING's Capability Development Grants, Aalst has invested in a series of productivity projects, including an automated production line to improve the efficiency of chocolate production and packaging. It helped Aalst increase production capacity by 70%, which allowed it to scale, meet higher export demand without the need to increase manpower.
Internationalisation has been at the core of Aalst's business strategy from the very beginning, because Singapore's domestic chocolate consumption clearly cannot sustain its growth. Ninety-eight percent of this company's revenues are from exports, and a key success factor has been branding. Aalst has used IE Singapore's Global Company Partnership grants to build a brand framework tailored for different markets. It is now an established player, partnering large companies like Dunkin' Donuts, Unilever and Nestle in various markets and projects.
Over the years, the company has also leveraged SPRING's SME Talent Programme to identify the right people for its needs. Mr Dean Ng was one of Aalst's first employees under the SME Talent Programme. He joined the company in 2013 as a marketing executive and has since been promoted to a brand manager. He works directly with the chief operating officer to develop marketing plans and initiatives to increase sales and brand awareness in all key markets. Aalst is also in the process of starting student placements under the SkillsFuture Earn and Learn programme.
But the company's growth has also created opportunities for older workers. Mr David Choy, who is now 62, spent much of his career working in the ship maintenance line. At the age of 52, he made the switch to the food manufacturing industry by joining Aalst. He upgraded himself through continual training and development, especially as more new equipment were acquired by the company. Today, he is the \"go-to\" guy for assistance with Aalst's machinery and he and his life experience is really testimony to the benefits of skills upgrading.
So, to sum up, the ITMs encompass a suite of programmes to help our companies scale up and transform. The aim is to transform every sector, enable enterprises to grow their top-lines and enhance their productivity and competitiveness. Workers will also benefit from these ITMs because they will gain a clear view of the career pathways in the sector and the skills that are required.
To better match skills supply with industry demand, SPRING is working with the unions and industry to develop a Food Manufacturing Skills Framework. Workers can use the framework to map out their careers, assess skills gaps and tap on programmes, such as the Adapt and Grow Initiative of MOM, to enhance their employability. This framework will be ready by 2017. Also, TACs like the Singapore Food Manufacturers' Association (SFMA) and SMF will play an important catalytic role as the industry embarks on projects to internationalise, innovate and develop people and technical standards. Senior Minister of State Sim Ann will elaborate on our efforts to enhance the capacity of TACs in this regard.
Ms Foo Mee Har asked about the progress and outcomes of the ITMs that have been launched so far and the lessons that have been learnt. I think she is rightly focusing on the implementation elements because that is really where the rub is and that is where we will see the biggest outcomes.
I have spoken in detail about the progress of the Food Manufacturing ITM and how it will involve and benefit workers, companies and TACs. We will adopt a similar model for the other 17 ITMs which will be launched by the end of this financial year, meaning financial year (FY) 2017.
It will take time, however, before we can get substantive information to assess the progress and effectiveness of the ITMs. Nonetheless, I would like to emphasise that the ITMs are not static plans. They will be regularly reviewed, by tracking KPIs, and the plans will be updated and modified as we learn more through implementation.
Ms Foo also asked if we should prioritise sectors with high-growth potential and established sector partnership structures for the ITMs. The 23 ITMs account for about 80% of our GDP and, generally, they meet the kind of criteria that Ms Foo has mentioned, and they will all be launched by the end of the FY, as I have said. But the pace of implementation will, to an extent, depend on the response from the industry and the commitment of the stakeholders.
We also have broad-based schemes to support the needs of companies in the non-ITM sectors as well. So, I just want to say that it is not just about looking at the sectors where we see or assess that there is growth potential, because transformation is needed not just where there is significant growth, but also in sectors where there are other structural challenges, such as, for example, in retail. Therefore, we need the transformation and the adaptation that we are looking for through the ITMs to make sure the companies in that space are well-positioned for the future.
I want to turn now to the role of the Government and what the Government is doing on its part to respond to some of these changes. As a key enabler, it is important for the Government to be agile in response to changing industry needs, as has been emphasised by Members Mr Yee Chia Hsing and Mr Lee Yi Shyan. Regulation is a case in point. Singapore, as we all know, is well-regarded for its transparency and ease of doing business due to our robust legal system, well-developed infrastructure and skilled talent pool.
We have to build on these strengths with a more nimble regulatory posture that safeguards legitimate interests, whilst being more responsive to the changing needs and circumstances of industries. And if we do this well, it will be another competitive differentiator for Singapore, especially in an era of rapid technological changes and intense competition.
So, to that end, we do want a more forward-looking regulatory regime that supports innovation, so that new products and services can be test-bedded and brought to market more quickly. And this is also in line with the CFE recommendations on regulations, which Mr Liang Eng Hwa and Mr Henry Kwek enquired about. At last year's COS, I spoke on the Health Sciences Authority's (HSA's) initiatives to create an enabling regulatory environment for the Medtech industry. Since then, an interagency workgroup led by MTI, comprising HSA, EDB, SPRING, A*STAR and IE Singapore has developed additional recommendations.
To allow innovative medical devices to gain quicker access to market, HSA will establish a priority review scheme. Applications submitted under this scheme will be prioritised for review, thus shortening turnaround times to register the device. Patients and healthcare providers will also benefit from earlier access to innovative medical devices.
To give medical device developers greater regulatory certainty, HSA will also launch a \"pre-market consultation scheme\". With this, companies can consult HSA on the regulatory requirements for devices at the product development stage, well before any formal submissions to register the device for sale or use in Singapore. HSA plans to roll out these initiatives in the second half of this year and will share further details with the industry.
More broadly, to address some of the other points in terms of regulations that have been raised, the Pro-Enterprise Panel (PEP) will continue engaging the industry to identify areas where regulatory processes and compliance costs are of concern to businesses, and work with the agencies to provide solutions. As Miss Cheng Li Hui rightly noted, it is important that we ensure our regulations are not an inadvertent burden to businesses.
I also want to say that our regulations have to keep up with the latest industry trends. And one example is in the area of land zoning. In manufacturing, we are seeing more servicisation, and business models are shifting from production-led to service-driven activities. The current guidelines Business 1 zones, which require companies to use at least 60% of their space for core industrial activities, may be too restrictive for some companies, especially those that are already making this transition.
JTC, SPRING and URA have been working on a more flexible industrial land zoning approach, which will be piloted at a multi-tenanted building to be developed by JTC and located within Woodlands North Coast. Instead of the \"60/40\" guideline, JTC will introduce more flexible guidelines so that companies can co-locate service-driven activities alongside their manufacturing operations. Companies that have offshored their lower value-added activities can also maintain their more knowledge-intensive activities here, while retaining close oversight of their operations overseas. Market response and feedback to this pilot will be studied, and it will inform any further steps that we take.
More broadly, vibrant live-work-play-learn environments also play a growing role in the attraction and retention of talent. So, beyond flexibility at the development level, we will also pilot greater land use flexibility at the district level in our upcoming growth centres, starting with Punggol. The Minister for National Development will be elaborating on this approach.
However, having outlined some of these moves that the Government is making and the general posture that we are taking, I want to caution that even as the Government adopts greater flexibility in regulations, we must remember that we will be entering unchartered waters and we must be prepared that things may not always turn out as planned, in which case, we should be ready to change course or cut losses as such risks are part and parcel of the innovation process. We should accept them as part of the natural revolution in our system and not always looking for someone to put the blame on when something does not always work out the way we intended it to.
As part of the effort to stay open and connected, we want to help our companies to deepen linkages with overseas networks and partners and seize opportunities in new markets. This is really in the context of our internationalisation efforts. To ensure seamless support for our enterprises' internationalisation effort, we will strengthen the coordination of our agencies' overseas operations under the consolidated \"Singapore Centres\". These Singapore Centres will serve as the key point of contact for Singapore-based companies when they enter overseas markets, as well as for overseas investors to better understand the business environment in Singapore.
The Singapore Centres will also broaden and deepen our understanding of new markets, including at the city and regional levels, in order to better support our companies as they go overseas, and this is a point that we have emphasised in the course of the CFE studies as well. That we need to, well beyond the broad understanding that we have of these markets, and have a much deeper appreciation for second-tier cities, third-tier cities and other regional opportunities.
We have so far established Singapore Centres in nine key markets and they have been well-received by both local and foreign companies. Some examples include Beijing, Shanghai, Guangzhou, Frankfurt, London and Mumbai. We will extend the Singapore Centres to all the other 36 overseas locations where EDB and IE Singapore are present.
In addition, as the Minister for Finance has announced, we will establish the GIA, whose objective is to help our startups build networks and seize export opportunities in global innovation hubs and new demand markets.
A key component of GIA is to build a network of Innovation Launchpads around the world. Today, our Institutes of Higher Learning, companies and agencies, already have established their own networks overseas. GIA will integrate them into one network which companies can then tap on readily to bring their innovations out to relevant markets. If I may use the example of ViSenze, a local startup providing visual search and image recognition solutions for the e-commerce sector, which has experienced the value of networks first-hand.
In 2016, IE Singapore introduced ViSenze into the Mastercard Start Path accelerator programme in London, a competitive programme geared towards accelerating the growth of promising startups. Through that programme, ViSenze was exposed to Mastercard's panel of international specialists who linked them up with their network of potential global business leads. This enabled ViSenze to expand their presence in the US, as well as enlarge their global customer network.
With GIA, we hope to connect more of our SMEs and startups with the right people and networks in other parts of the world. These will also enable the best foreign ideas and talent to interface with Singapore companies and to find local partners. This will not only enrich our innovation ecosystem but also strengthen our value proposition as a base for foreign companies to come here, test-bed new products and then expand into the region.
Let me turn to innovation. Mr Charles Chong, Ms Chia Yong Yong and also Mr Leon Perera have asked about our objectives in investing in research and innovation and how we can strengthen the research, innovation and enterprise ecosystem.
As Members have already noted, under the RIE2020 Plan, we have made several shifts to ensure Singapore is well-positioned to harness technology and innovation to drive our next phase of economic growth. Let me just illustrate what I mean.
First, our research framework is focused on four domains which hold significant economic opportunities and serve important national needs. These are: (a) advanced manufacturing and engineering; (b) health and biomedical sciences; (c) services and digital economy; and (d) urban solutions and sustainability. Then there are some fundings set aside for the white-space elements.
Second, to tighten linkages between our R&D capabilities and industry needs, we have increased funding for public-private research collaborations under the Industry Alignment Fund (IAF). So, that is going to bring the public sector and the private sector closer together.
Thirdly, to spur the best ideas, we have increased the proportion of competitive funding that is open to all public research performers. So, it is not dedicated; it is open. And that is increased from 20% to 40%. These shifts combine to bring about a significant directional move in our RIE ecosystem.
Mr Perera asked how we can leverage competitions as a means to develop IP. SPRING has worked with partners, such as the National University of Singapore (NUS), the National Research Foundation (NRF) and the Infocomm Media Development Authority (IMDA), and incubators to co-organise startup competitions judged by angel investors and venture capitalists at events, such as Tech Venture 2016 and InnoFest 2016. The winning teams win prize money and a validation of their business plans and execution ability.
Ms Chia Yong Yong has asked about the structural changes that we will effect to achieve our objectives in research and innovation. Mr Charles Chong has also asked about A*STAR's reorganisation. As Members would recall, as Deputy Prime Minister Teo Chee Hean, in his capacity as Chairman of NRF, announced in February this year, A*STAR has embarked on a transformation effort to bring R&D innovations to industry more quickly and in a more targeted and collaborative manner.
A*STAR's research has always been geared towards meeting the needs of industry and society. They have always had that as their mission orientation. However, with the gathering pace and complexity of technological advances, more and more innovations are occurring at the interstices of disciplines. So, companies must increasingly draw on multidisciplinary capabilities to develop new solutions and they need to do that with greater speed.
A*STAR will move towards more flexible, multidisciplinary programmes. These programmes will also be term-limited, meaning that A*STAR will then have the flexibility to start new programmes in line with evolving industry interests and needs, as well as phase out programmes which are no longer effective in meeting the needs of industry. And this is an inherent flexibility that we want to build up in the institution so that they can be more responsive to the market. Equally importantly, these programmes will provide companies with a convenient modality to collaborate with multiple public research performers on complex, multidisciplinary challenges.
One example of such innovation is in the manufacturing sector and it is nano imprinting. I just want to say a little bit about it because it is a bit technical. I, myself, am just grappling with understanding some of the fundamentals of it. But it basically taps on capabilities, such as nano-fabrication, simulation and modelling. This process enables the creation of textures and patterns at the nano-meter-scale, that is, 10 to the power of minus nine, so as to impart special properties to materials. Examples of such properties include anti-reflection, adhesive and water repellents. It can be applied to materials, such as plastics, glass and metals. Given the growing industry interest in this area, A*STAR has set up the Nano-imprint Foundry that is hosted at the Institute of Materials Research and Engineering (IMRE), which pools together capabilities from IMRE, as well as the Institute of High Performance Computing (IHPC) and the Data Science Institute (DSI). They are pooling different resources from various institutes together in order to take this nano-imprinting effort forward.
Ms Chia Yong Yong and Mr Perera also asked about the economic impact of our public R&D activities and how this is monitored. We track a spectrum of performance indicators to ensure that our investments generate good outcomes.
Firstly, on industry R&D investment. In the RIE2015 tranche, A*STAR undertook close to 9,000 industry projects which catalysed more than S$1.6 billion of industry R&D investments in Singapore.
Secondly, on licensing, over the past 10 years, A*STAR's licensing activity has grown by close to five times from 221 licensing agreements in Science and Technology Panel of 2010 (S&T2010), to 1,030 licensing agreements in RIE2015. Around 70% of the licences were with SMEs.
Thirdly, we track A*STAR's Growing Enterprises Through Technology Upgrade (GET-Up) programme, which is really a programme which provides SMEs with support in technology adoption through the secondment of researchers and technology road-mapping. In RIE2015, a total of 202 SMEs benefited from the programme.
Finally, we track spin-offs. The number of A*STAR's spin-offs has increased from the S&T2010 to 71 in RIE2015. The follow-on funding has also increased from $46 million to $90 million for the same period.
Collectively, these outcomes suggest and indicate that we have been able to get good value out of our investments in R&D. But it is not something that we take for granted because there is always more that can be done and that is why I will elaborate on the range of measures that we are undertaking. Importantly, these measures have also anchored investments and good jobs in Singapore, as well as uplifted the capabilities of local companies. Some of these are hard to quantify but if you ask the EDB officers, if you ask others in the industry, the qualitative engagement and traction within the industry have been very strong.
Ms Chia Yong Yong also asked about how we can assure that IP generated from public sector R&D is managed well to reap economic and societal benefits. Fundamentally, we want our IP policy to ensure that we create and capture value for Singapore through the IPs that we generate.
Recognising that companies have different commercialisation needs, public agencies adopt different approaches to engage industry that include licensing, that is, exclusive or non-exclusive licensing, and also the assignment of IP. Conditions may be imposed to ensure that companies are, in fact, committed to creating value from the IP.
We are making publicly-funded IP more accessible to companies. In particular, we will create a National IP Protocol to provide companies and public agencies with a clear and consistent framework to access publicly-funded IP. With this, companies will have greater clarity over IP ownership practices and standardised and simplified IP negotiations. More importantly, companies will be able to bring innovative products and services quickly to market and reap value. We will share more information on the National IP Protocol in the second quarter of the year.
Mr Liang Eng Hwa and Mr Henry Kwek have asked how we plan to implement the CFE recommendations on lead demand. We want to leverage more lead demand to catalyse innovation and business opportunities for companies. The Government is investing in several areas which are both significant from a domestic needs viewpoint and also in terms of growth possibilities. These include healthcare, urban solutions, security and the Internet-of-Things. These are also areas of opportunity for our smaller and innovative enterprises so that they can build their capabilities and strengthen their track record. This is especially so as the Government can be a valuable reference customer for SMEs which are seeking to capture more deals and venture overseas.
To help our SMEs participate in these opportunities, we will adopt a more targeted, systematic approach to using lead demand, through an enhanced Partnerships for Capability Transformation (PACT) programme which we have already been doing. And this new programme will be called PACT through Government Lead Demand, or Gov-PACT.
Today, EDB and SPRING's PACT programme have the collaboration among large organisations and local SMEs, something that some Members mentioned. We want to build on that to foster more collaboration between Government agencies and SMEs.
Under the Gov-PACT programme, SPRING will work with agencies to put out calls for proposals where SMEs can co-innovate in identified strategic areas, with the Government committing to procure the solution if the specifications are met. Through this programme, SMEs will be given opportunities to develop, test-bed and validate new solutions. SPRING has budgeted $80 million to support SMEs under this programme. Senior Minister of State Sim Ann will elaborate further.
One sector that has benefited from the Government Lead Demand approach is the clean energy sector. The SolarNova programme aggregates public sector demand for solar photovoltaic (PV) panels, and it has catalysed our solar PV industry.
Mr Yee Chia Hsing had asked about the future plans for the clean energy sector in Singapore. The clean energy industry here has grown a small base of about 10 companies in 2007 to around 100 companies last year. And we are committed to developing it further, through a number of initiatives. We will enhance Singapore's position as a living lab and extend the use of lead demand to help more Singapore-based companies build their track record and pursue regional opportunities.
We will maximise deployable space in our dense urban setting, by increasing the use of building integrated PV. We will also explore the application of regulatory sandboxes to microgrids and floating PVs. Finally, we will continue building capabilities in R&D, new renewable energy and energy management technology and financing for the sector.
With these efforts, we expect sustainable growth in our clean energy sector, with more enterprise and job creation, potentially 2,000 new PMET jobs in the sector by 2025. The sector will also help address Singapore's energy security, competitiveness and sustainability needs.
We have already seen the growth of home-grown enterprises like the Singapore solar company Cleantech Solar, which has developed capabilities in roof-top solar system integration and remote monitoring from Singapore, and it has ventured into the region. This includes a roof-top solar project that Coca Cola recently established at its bottling facility in Cambodia. This is Coca Cola's first flagship solar project in Southeast Asia and its system performance is being monitored and optimised in Singapore. And if Members look at it, the water feature is in the shape of a Coca Cola bottle.
Let me now address Assoc Prof Daniel Goh's question on setting renewable energy targets and Mr Yee's point on the costs of connecting solar facilities to the grid. In 2014, we announced a plan to raise the adoption of solar power in our system to 350 MWp by 2020. Since then, the installed capacity has risen from less than 20 MWp to 126 MWp today. It is noteworthy that this growth has been achieved without any subsidies. Rather, it has been aided by the cost of solar power coming down and modular efficiencies improving with technological developments. As a result, solar power has become competitive against the price of electricity from the grid which we also do not subsidise. The global impetus to reduce carbon emissions is another contributory factor.
Looking beyond 2020, we plan to further raise the adoption of solar power in our system to one gigawatt peak (GWp). The Energy Market Authority (EMA) has studied this matter quite carefully as renewable energy resources like solar are intermittent in nature and, therefore, they can affect our system stability. And noting that the cost of intermittency must be balanced against the cost of carbon emissions, perhaps represented by a carbon tax, EMA has concluded that one GWp of solar can be accommodated in our system. This will support the achievement of our 2030 climate change pledge to reduce our emissions intensity by 36% from 2005 levels by 2030.
However, specifically and in response to Assoc Prof Daniel Goh's point, unlike some jurisdictions, we have not set binding targets for renewable energy. The reason is because often, such binding targets result in subsidies and other measures in the effort to get that target and, in the process, they distort price signals and market behaviours.
Instead, our policy has been to ensure that energy, regardless of the source of generation, is priced right to fully reflect the cost of generation and then we let the market work out the equilibrium.
That is why we have avoided Feed-in Tariffs that are common in other jurisdictions, with binding renewable energy targets. Feed-in Tariffs subsidise solar electricity by pricing it higher than electricity from the grid. Instead, what we have done is invested in the development of solar PV technology and the result showed that this has served us well. In fact, even the industry players, many of whom are local enterprises, have given me similar feedback.
On Mr Yee Chia Hsing's point, I should clarify that grid charges are not levied on solar PV owners or any other generation source for that manner. The key point here is this. The electricity price that we pay, there is a grid charge component. That does not go to the company or the entity generating the electricity. That goes to the grid company and, in our case, SP PowerGrid. That is to cover the cost of building and maintaining the national power grid. So, whether you are a conventional generator of electricity or a solar generator, you are basically getting the price that is net off the grid charge.
Mr Yee Chia Hsing also suggested tiering electricity tariffs to penalise the heaviest electricity consumers with higher rates and then use that to subsidise lower-income households. As a practical matter, I want to say that such an approach is quite problematic. For example, how would you determine the tiers for such differential pricing because the circumstances for households and their needs vary quite widely even if they live in the same type of housing. So, it becomes inherently an invidious exercise. Our approach is to price electricity right fully from the first electron and then we provide targeted assistance through the tiered U-Save rebates. The outcome, in some ways, from an equity point of view, is not unlike the intent that Mr Yee has in his suggestion.
Let me now turn to infrastructure. Mr Liang Eng Hwa and Mr Henry Kwek noted that as Asia urbanises, the demand for urban solutions will rise. This goes beyond energy infrastructure to water, waste management, telecommunications and transportation infrastructure.
And much of the demand in emerging Asia will be for small-scale projects in water and wastewater treatment plants, discrete small scale independent power plants, and renewable energy projects like solar farms and mini-hydro plants. Such projects range in value typically between S$5 million and about S$70 million. That is about the right scale for SMEs.
So, Memiontec, for example, is a company that has built deep capabilities in water asset developments in Singapore. They have capabilities in engineering, procurement, construction management and operations and maintenance works for water reclamation and water treatment. In Singapore, they built a wastewater treatment plant to clean water before it is discharged from our Semakau landfill. Last year, the company also ventured successfully into infrastructure development overseas because they secured a deal to build, own and operate a water treatment plant that would convert water from Jakarta's West Flood Canal into clean water for Jakarta's residents. Memiontec is keen to scale up and secure more of such projects.
We want more of our companies, especially our SMEs, to be able to tap on these growing opportunities. But their expansion is constrained by limited access to project financing for small projects. Typically, commercial lenders are less prepared to provide financing to SMEs unless they put up personal guarantees or recourse to the company's assets. And this makes it difficult for the SMEs to scale up.
That is why we have introduced the Internationalisation Finance Scheme (IFS) Non-Recourse Financing Scheme (Non-recourse Finance), through which the Government will co-share banks' risks in providing non-recourse loans to SMEs for such projects and these non-recourse loans are secured only by the project's assets and its cash flows which will enable SMEs to take on more projects. IE Singapore will give more details later.
At the other end of the spectrum, infrastructure developers who are working on large overseas projects face a different kind of challenge. One, in particular, is to secure loans for large projects undertaken on behalf of the sovereigns of developing countries. And these can be for projects involving rail, ports, airports, conventional power plants and desalination plants, and the typical value exceeds half a billion dollars.
Commercial lenders typically require insurance cover against sovereign risks of emerging markets, while foreign developers rely on their respective export credit agencies for such insurance coverage. Singapore-based developers do not have access to such facilities.
So, to help level the playing field for Singapore-based developers, the Government will enhance the existing IFS administered by IE Singapore, to provide insurance against default of payments by sovereigns in selected emerging markets.
This is an important and measured step in the Government's efforts to help unlock private financing for Singapore-based infrastructure companies and help them secure projects which leverage their capabilities. IE will give more details.
Sir, I have outlined the work that MTI is doing in some of the sectors to illustrate how we are transforming industries and growing the economy, even as we enter a time of greater uncertainty. The focus is on the development of deep skills for our people and building enterprise capabilities for higher productivity, innovation and internationalisation. These are priorities that we have been working on for many years, and we will continue to do so in the context of a more dynamic environment that we are in today.
And ITMs are going to be a key mechanism for us to achieve this. We will adjust our strategies and programmes in response to changes in our environment and adopt a proactive and forward-looking regulatory stance. And we believe that, collectively, these efforts will help ensure that our economy remains vibrant with thriving businesses and good opportunities for Singaporeans.
The Chairman: Mr Yee Chia Hsing, please take your cut on helping SMEs to compete effectively.
Mr Yee Chia Hsing: Chairman, SMEs are an important part of our economy. As our economy slows down to 1%-3% in the long run and there are more disruptive changes, such as the onset of online retailers, many SMEs are finding it challenging to adapt to these structural changes and compete effectively.
Some of the common reasons cited are mainly implementation costs of the new technology, lack of training and know-how or, simply, reluctance to change. On that note, I would like to ask what the Ministry is doing to help our SMEs increase their competitiveness and capture new opportunities both in the local and global markets.
Mr Thomas Chua Kee Seng (Nominated Member):\tChairman, in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] This year's Budget has placed key focus on innovation and internationalisation in the future economy. The saying goes: A thousand-mile journey begins with the first step. With clear direction, the next step is to achieve this in the fastest way possible.
With regard to innovation capability, let us first look at what SMEs have done. Last year, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) conducted a survey on innovation efforts of enterprises. A total of 233 enterprises took part, with SMEs making up 98.8% of respondents. Survey findings revealed that as investing in innovation may not lead to actual outcomes, less than one-third of respondents had invested in innovation over the past two to three years. Moreover, only 15% collaborated with public research institutes.
SMEs have a shortage of talent. Very few are able to recruit researchers to handle R&D. If they wish to improve their innovation capability, they need to strengthen the collaboration with research institutes. Moving on, we urge more local enterprises to leverage the Government's research resources. Technology innovation is not a matter of difficulty, but the crux is whether there are practical applications.
The Budget announced that A*STAR is scaling up on the Operation and Technology Road-mapping initiative, to support 400 companies over the next four years. In other words, assistance would be forthcoming to 100 companies every year. Currently, Singapore has more than 188,000 SMEs. This is an astronomical figure, compared to the 100 companies that would get relevant assistance within a year. We hope that A*STAR could work with the trade associations to develop technology applications that could be shared with certain industries. Making the benefits accessible to a wider group would assuredly be a more effective way of encouraging technology adoption.
With regard to internationalisation, the Government has committed a $600 million International Partnership Fund to help local enterprises invest in overseas markets. Normally, most funds pursue short-term returns. I hope that this International Partnership Fund would cast its sights for returns over a longer 10-year period or beyond that. Local enterprises which venture abroad to form joint ventures in other countries or tender for projects, need to gear up on sufficient project experience. In November last year, I led a business mission to Myanmar and we were warmly received by the Myanmar Chinese Chamber of Commerce. The Myanmar government also invited us to invest in their infrastructure projects. One of our delegates, who runs a local construction firm, said: \"If we could clinch a substantial project in Singapore, this would give us greater confidence to bid for overseas projects.\"
In order to boost the construction sector, the Government is bringing forward $700 million worth of public sector infrastructure projects. The Government must allow local SMEs to participate in these projects and have the opportunity to become main contractors. Singapore SMEs which work with Government-linked companies and MNCs could gain in experience, improve on standards and chalk up a creditable track record. This could raise their competitiveness in the global marketplace. This, in fact, is the most effective way to help local enterprises internationalise.
Last month, Minister S Iswaran and his team came for a dialogue at the SCCCI; it was attended by trade association leaders and business representatives from more than 20 industries. Both sides engaged in a candid discussion. We discovered that businesses still have certain misunderstandings on how to tackle specific operational details. Moving ahead, we should organise more sessions for trade associations and industry associations to establish better communication with Government officials, bringing these misunderstandings to a minimum.
Improving the competitiveness of local enterprises is our common objective. In order for this objective to be achieved, the Government charts policies and offers resources; trade associations participate and provide useful suggestions; enterprises and entrepreneurs, however, assume the most important role. Innovation and internationalisation basically call for a departure from one's comfort zone, the boldness to try out new things and, in the process, seek perfection. This is where enterprises cannot totally rely on external sources of strength but on individual hard work.
Ms K Thanaletchimi (Nominated Member): Chairman, the Budget has a slew of extensive targeted measures to support industries and companies in their medium- to long-term effort to improve their businesses' productivity and performances.
Last year, MOF provided greater help to SMEs, such as more corporate income tax rebate and the extension of the Special Employment Credit scheme. This year, there are even more targeted help for SMEs to improve their efficiency and go international and digital, with a focus on data analytics and cybersecurity.
In light of this, has the Ministry tracked and monitored the performances of SMEs which received assistance last year? Has the outcome been encouraging? Will MTI provide a progress report showing which sectors have benefited and shown improvement and which, despite all measures and assistance, have yet to yield any results? From the latest MTI report, besides the construction sector, the retail sector seems to have one of the lowest in productivity. What measures can be taken to improve this sector's productivity?
In regard to the Government's Enabling Growth and Innovation measures, besides providing financial support, can the Government take on a greater role in supporting SMEs in their overseas ventures by helping them leverage its network? The Minister earlier alluded to their effort in doing so, but probably we can be more pervasive in this effort.
With today's economy, many SMEs may need more handholding to sustain themselves. Despite all the financial assistance rendered by the Government, some SMEs may end up winding down their businesses and the workers will be adversely affected. Will the Government consider working with the Labour Movement to explore ways to assist these affected workers leverage programmes, such as the \"Adapt and Grow\" programme, and transit into new employment before the company winds down? These workers can plan and start to upskill and reskill to enhance their employability earlier.
All the Government's support and assistance should be directed to sunrise companies or future-ready companies with potential for growth. Will the Government evaluate the situation and circumstances in which SMEs are given assistance to ensure accountability?
Mr Saktiandi Supaat: Sir, this year's Budget has a focus on helping to enhance a broad base of SMEs and, consequently, improve their businesses. However, there are concerns that our micro and heartland enterprise, such as those in our Housing and Development Board (HDB) estates, are being left behind. Although there is this enhanced Revitalisation of Shops (ROS) scheme aimed at rejuvenating the heartland shops, the shops are mostly benefiting from improved physical appeal. This is akin to \"putting old wine in a new bottle\". The bottle looks attractive but, over time, it will lose its appeal, because the inside has not changed at all.
Many of the heartland businesses are run by the older generation bosses. Their shops have been there since the flats were built, and they abide by the traditional, conventional way of running business. This can eventually lead to their business getting phased out as the age group of their customers get younger and the customers are flocking online and elsewhere. Some of these businesses do wish to move with the times but, unlike SMEs and other enterprises, they are not entitled to things like grants, rebates, consultation and staff training. What is the Government doing to help them?
Heartland businesses contribute to a rustic charm within the neighbourhoods. It is something unique to Singapore's public housing that we will rarely find elsewhere. Moreover, the convenient locations of these shops increase connectivity within the neighbourhood and are popular with the elderly and less-mobile. I hope the Government can do more to help these heartland shops stay abreast of the times and remain relevant to the residents in the neighbourhood.
Miss Cheryl Chan Wei Ling:\tSir, there is a significant proportion of micro enterprises in the retail and F&B businesses located in our heartland malls and neighbourhood town centres. Some of the measures introduced to support our SMEs to level up with the industry may not benefit these businesses. Can I know what plans the Ministry has to support these micro enterprises? I have a few suggestions for consideration.
One, periodic proactive communications of schemes and roadshow at the localised level. Move the satellite SME Centres to the localised level like the specific malls or even the town centres. This would give better access for the business owners to participate and seek assistance.
Two, provide a suite of modules where different businesses can plug and play to adapt in order to enhance their efficiency.
Three, customise some relevant SkillsFuture courses to accommodate the long working hours and the working conditions of the staff in the micro enterprises so that they can work and also successfully upskill.
Lastly, I would like to ask the Minister on the scheme of the SME Working Capital Loan introduced last year. Have the banks been forthcoming since the scheme was introduced? Were there good success rates for application from non-traditional business models?
Mr Pritam Singh (Aljunied): Chairman, in the middle of last year, the Competition Commission of Singapore announced that it was investigating restrictive industry practices in the supply of lift spare parts for lifts managed by Town Councils.
In its press release on the matter, the Competition Commission acknowledged that there could be cost savings for Town Councils should they engage third-party lift maintenance contractors for various brands as compared to procuring lift maintenance services from original lift installers. To this end, The Straits Times noted that the original complaint was made to the Competition Commission about EM Services, a joint venture between HDB and CapitaLand, sparking an investigation. EM Services was found to have refused to supply spare parts to third-party contractors.
On 12 May 2016, some two years after the initial complaint, EM Services came forward to provide a commitment to supply lift spare parts for the lift brand known to most Singaporeans as \"EM\", to third-party lift maintenance contractors in Singapore.
Following feedback from a public consultation, the Commission considered EM Services' commitments to fully address competition concerns, presumably concerns which originate from possible breaches of section 47 of the Competition Act.
The long duration of time between the initial complaint and the resolution of the matter would have had potentially significant cost implications for Town Councils, which could have secured favourable maintenance rates from third-party maintenance providers, had a resolution to this matter being achieved earlier.
Section 67 of the Competition Act provides for interim measures in the midst of investigations when the Commission believes a section 47 prohibition has been infringed. The essential ingredients of instituting such interim measures are if the matter is an urgent one to prevent serious injury to a person or a category of persons or, secondly, simply to protect the public interest. It would appear that section 67 could have been employed against any lift company intentionally withholding the supply of lift parts under either of these two limbs.
The high incidence of high-rise living in Singapore and, separately, a spate of lift incidents from 2015 in particular, brought home the point about the public interest in a very real way.
Did the Competition Commission consider making interim orders against EM Services, so as to compel them to sell spare parts to competitor maintenance companies during the period under investigation? If not, why not? Not only would safety concerns and the public interest have been addressed, Town Councils could potentially have saved hundreds of thousands of dollars, thanks to more competitive lift contracts.
Secondly, on what basis did the Competition Commission deem it necessary to conduct a public consultation to affirm EM Services' conditions to supply lift parts? Who was consulted and why did the Competition Commission choose this method of resolution and not impose interim measures?
Dr Tan Wu Meng: Sir, in recent years, we have seen the emergence of biosimilar drugs in the biologics landscape. Biosimilars are engineered to have the same therapeutic effect as an existing drug − they call it a \"reference product\" − with no clinically meaningful differences in safety and effectiveness.
They work within existing intellectual property frameworks, so have the potential market impact of what would have been called a generic drug, especially if clinical trials show equivalence. These are a potential disruptive innovation to traditional pharma markets as well as pharma producers in the first-world as well as in Asia. How do we position Singapore's own biologics and drug development sector amidst this changing landscape? What are the challenges and opportunities for our Singapore workers and Singapore industries?
The Chairman: Mr Charles Chong, you have two cuts, can you take them together?
Mr Charles Chong: Thank you, Mr Chairman. Singapore's manufacturing sector has always been a strong anchor for our economy while also being at the same time a key source of our competitiveness which provides us with links to the rest of the world.
Our manufacturing sector has been a good source of growth and a provider of valuable jobs for many years. The sector also helps to diversify our production base and export markets. I was, therefore, very pleased to note that the report by CFE recommended that Singapore continue building a globally competitive manufacturing sector and should retain manufacturing at around 20% of our GDP over the medium term.
It will, however, be challenging for our manufacturing companies to stay relevant and competitive in the current global manufacturing landscape. Technological advances in the industry have made things far more efficient today and the employment of technology in the form of robotics and additive manufacturing has become more widespread.
The use of industrial robots in manufacturing can also help to increase the overall operational efficiency in a wide range of areas. Robots can operate with much more precision and consistency than human operators and also can be employed in processes or instances where it may not be optimal to deploy a human.
On the other hand, additive manufacturing injects greater speed and flexibility in the product development and prototyping process. It can also help to shorten supply chains so that the final product is ready more quickly.
The Government has always encouraged our companies to embrace change and transform themselves. In this particular context, it will mean being open to tapping on these advanced manufacturing technologies for new opportunities.
However, we all know that change is difficult. Some companies may see the need to transform but do not know how to go about doing so. Others may be unsure about whether it will be worth the money to invest in these new technologies and change the way they do business. They may also be worried about business downtime.
In view of this, how is the Government supporting our companies in their transformation journeys to adopt advanced manufacturing technologies? How will the Government help our companies build new capabilities so that they can remain relevant and seize new opportunities for growth?
Next, I would like to touch on startups and our innovation ecosystem. Startups are becoming increasingly prominent in the global economy, both as creators of economic value and as disruptors of existing industries. Many countries are placing increasing emphasis on attracting and retaining global entrepreneurial talent to catalyse a vibrant startup culture, much like Silicon Valley, which is a melting pot of the best and brightest tech minds from all over the world.
In Singapore, we are in the process of building an increasingly vibrant startup ecosystem. The CFE report speaks of world-renowned universities and research institutions, and we even teach entrepreneurial skills in our schools now.
Many young people want to start up their own businesses, and this is a very encouraging sign for our economy. But more can be done. CFE noted that a vibrant startup ecosystem requires capable entrepreneurs with a global outlook. Given Singapore's small size, one of the subcommittees recommended that the Government review the existing work pass system, so that it is easier for startup founders and key executives to come to Singapore. However, these should be individuals who are prepared to anchor their businesses in Singapore.
SBF's SME Committee has similarly recommended that the existing EntrePass scheme be enhanced. This scheme allows eligible foreigners to start and operate a new business in Singapore.
I would like to ask the Minister how the Government intends to strengthen Singapore's ability to attract more global entrepreneurial talent here to bring more life and vigour to our local startup scene.
The Chairman: Mr Lim Biow Chuan's speech on Consumer Protection submitted to MTI. Miss Cheryl Chan.
Miss Cheryl Chan Wei Ling: Sir, according to the International Monetary Fund (IMF), the average GDP growth of advanced economies globally in 2016 was 1.6%. Singapore's GDP was 1.8%. With increasing threats to globalisation and potentially fewer foreign direct investments, can we continue to maintain this growth of 1%-3%? Apart from short-term measures, what more must we do to sustain a growth on par with or better than the global forecast for advanced economies?
Emerging markets are forecasted to have a larger growth of 5%-7%. Most emerging markets have requirements to build infrastructures to cater for energy, connectivity and basic needs. They have needs in areas where we consider jobs within traditional markets in Singapore.
With limited land space, there will come a time when we have maximised our built infrastructure and the need for each subsequent mega project will be at least a decade or two apart. Instead of just local demand creation, can we export our services and create job opportunities for Singaporeans in emerging markets? An example of good leading efforts in this respect is the Japanese business community. Japanese companies have capitalised on their technology and expertise to undertake infrastructure-related projects in ASEAN and the African continent, where the capabilities of these emerging markets are at their infancy. It not only created jobs for their people but also further strengthened their capabilities and learnings through diversity against the various country backdrops.
I would like to ask the Minister what the plans are to introduce new market sectors for growth, for example, in aquaculture. Apart from R&D, are there any considerations to develop new industry sectors and assist our local companies to expand manufacturing overseas where different parts of the entire value chain can be strategically located?
Costly overhead, irrelevant skills, age. These are some common reasons that senior PMEs received when asked to vacate their work positions. It is possible for some individuals that these reasons cited may bear truth, but what if the senior PMEs can still contribute in significant ways? Would they have a role in the workforce and social scene? What plans does the Ministry have to capture this talent pool?
I have met successful examples of senior PMEs who switched industries, had practical expectations of remunerations and some ventured to become new entrepreneurs. Let me explain three areas to be explored.
The first, in last year's COS, I have raised and would ask the Ministry again to consider having senior PMEs with experience and international exposure to mentor the SMEs and startups. Functional experiences under the diverse business conditions are useful knowledge to be shared and imparted. Synergies can be captured for both parties. PMEs can learn new business areas or skills from the startups with fresh, new concepts and, likewise, SMEs can be taken to higher grounds with the network and executional insights. So, I would say a platform to match the requirements and supply of this talent pool is thus essential.
The second area − supplement workforce in specific sectors. Healthcare and education are key growth areas and would continue to face staff shortages. As a society, we constantly demand more care and concern for our young and old. Being a senior, one is probably best placed to understand the mindset and needs of others in that same age group. In contrast to our younger workforce, our seniors will have some time, flexibility and impetus to undergo training and transformation. They can also supplement the social service sector with their people management skills and knowledge.
The last area, overseas postings. Senior PMEs may be less constrained by familial burden as compared to young couples at the early stages of their career and family lives. Those who have had prior overseas assignments or managed regional roles would be well acquainted with such postings. They can bring forth the local establishments from Singapore with desires to anchor overseas and broaden their markets.
Mr Saktiandi Supaat: Sir, the ITMs will certainly see many major changes. Existing jobs will be impacted and new job opportunities will emerge. How will the Government help to prepare the employees? Continuous education is one of the keys and, certainly, SkillsFuture will be helpful. But there is only so much time and money one has to spend on furthering their education. It will be helpful if employees in the affected industries can have a heads-up on what particular areas they should focus on and which skills and courses they can contribute to their new roles. Will there be, for example, 23 manpower ITMs, too?
Dr Tan Wu Meng:\tTo help young Singaporeans plug into business networks regionally, it takes language skills, region-specific knowledge, things which are not in the textbooks. What steps are we taking to help bring our people up to speed? Are we planning courses in regional languages, regional cultural nuances, even courses on how to interact persuasively in a regional business setting so as to shorten the learning curve and maximise opportunities?
Ms Sun Xueling: When asked why he had only conducted a roadshow in the US to secure venture capital (VC) funding and not in China, an entrepreneur whose company had created an online portal for services remarked, \"I can't do a powerpoint in Chinese and I can't handle negotiations with them. They ask pointed questions about how I am running the company which I am not comfortable with. Further, my product is personal computer (PC)-based whereas they are into mobile apps.\" And when I probed further if he had been successful in raising funding in the US, the entrepreneur replied, \"No, the US investors said we were too physically far away and that it would be difficult for them to review how we are doing post-investment\". A very telling example about the various issues we face with internationalisation and what would be needed to overcome them.
First, basic language competency matters. If we are looking to crack nearby markets, being able to converse in Chinese or a Southeast Asian language would be helpful. Secondly, if we are looking to expand overseas, we should accept that cultural norms can be different elsewhere. What could be considered an aggressive mode of discussion could be the cultural norm somewhere else. Further, to have a successful product, we would need to understand the pain points different markets have. Lastly, while we should attempt new and exciting far-flung markets, nearby markets, by value of proximity, allows greater interaction and increases the possibility that business can be done.
I suggest that alongside Government schemes to help our companies set up overseas, we should also support language, cultural studies and programmes which offer immersion opportunities in neighbouring countries to young Singaporeans. This will enable them to understand and create relevant products and services for consumers in the region.
The Chairman:\tSenior Minister of State Sim Ann.
The Senior Minister of State for Trade and Industry (Ms Sim Ann): Sir, SMEs are the heart of our economy. They are the base from which many brands have emerged and we hope and believe many more great Singapore companies will grow.
The concerns of SMEs are also the Government's concerns. Supporting SMEs is very much at the front and centre of the CFE report as well as this year's Budget. It will also be a key focus of the MTI family in the months and years to come. The feedback from SMEs falls into three main categories.
First, the need for assistance to cope with challenges, both immediate and in the longer term; second, where to go and who to approach for assistance and, third, how to transform themselves. The MTI family's response is clear. We want to help SMEs succeed. We provide assistance. We are making it easier for SMEs to receive assistance and we are doing more to help SMEs implement step-by-step plans if they wish to transform.
For the first category, in terms of how to cope with challenges, several Ministers have already spoken about them. Hence, I shall address the question of whether we can make it easier for SMEs to benefit from our support schemes. We can do so in several ways.
First, by changing the way Government agencies work with one another to support SMEs. Our economic agencies are largely organised based on function and, with a few exceptions, not by industry type.
But SMEs have told us that if they knew that there was one specific agency in charge of their industry, they would feel more assured. They will know the needs of the entire industry are considered holistically. We hear our SMEs. This is why we have organised our industry strategies into ITMs. We now have one lead agency for each industry. We have started rolling out the ITMs. Eventually, we will have 23 ITMs covering more than 80% of our economy.
SMEs can think of each ITM as a guide to the key shifts in the industry. It lays out the practical steps they can take to transform their businesses. There are four major themes: to improve productivity, innovate, internationalise as well as to develop the skills of our workers.
To address Ms K Thanaletchimi's question, we do have indicators to track the progress of the ITMs. At the national level, we track indicators, such as value-add and value-add per worker. At the sector level, each ITM is tailored to the specific needs of the sector. We have sector-specific indicators to track progress in productivity, innovation, internationalisation and in developing the skills of our workers.
Let me now explain how our SMEs can benefit from the ITMs. The Food Services ITM helps SMEs address a key challenge − their heavy reliance on manpower. This is made more acute by an ageing workforce and the fact that many prefer to work in other sectors. As part of the ITM, food services SMEs will be supported in their adoption of technology, as well as the development of productive and innovative business formats.
An example is Omakase Burger, a gourmet burger restaurant chain that specialises in smashed burgers. As some foodies might know, an artisan burger is especially juicy and delicious because the meat patties are shaped by hand and not compressed by machine.
So, a key challenge for Omakase was that a lot of the food processing was manual. Whether the business can grow depends crucially on how many skilled chefs it can hire and, as many of us know, this is one of the biggest bottlenecks in the F&B industry.
Is there no machine that can replicate the taste and texture of a hand-shaped burger patty? It turns out there is, one that uses vacuum suction technology instead of straightforward compression. But it is costly.
With the support of SPRING's Capability Development Grant (CDG), the company was able to automate its processing kitchen in 2016. They purchased this special machine. Now, Omakase can make more of the same delicious burgers and think of expanding operations and growing its top line, without having to find more chefs.
Ms K Thanaletchimi asked how we can improve productivity in our retail sector. This is addressed in the Retail ITM which sets out to drive greater productivity through technology and shared platforms. An example, SPRING has worked with retailers to get them to use self-check-out counters. In 2016, more than 110 self-checkouts were installed in supermarkets. This has allowed a 20% reduction in the demand for cashiers. The former cashiers were redeployed to new stores or reassigned to other duties. Our target is for 50% of large retailers to adopt these established technologies by 2020.
E-commerce and omni-channel sales will also help retailers to better meet customers' needs and allow them to do more with a lean workforce. The Retail ITM encourages and supports SMEs and their workers to take advantage of these strategies.
SPRING is working with Workforce SG to conduct master classes on omni-channel retailing and digital marketing. To date, 38 companies have benefited from these classes and we encourage more to join in.
As Ms Foo Mee Har pointed out, there are potential synergies among the different industries. We agree. That is why we are adopting a cluster approach for our ITM efforts. For instance, we will identify and develop common digital solutions and automation technologies that can be applied across industries. And we will work with SMEs to deploy them.
As an example, within the Lifestyle cluster, there is Techmetics, a robotics and IT solutions company. It provides common automation solutions to the Food Services and Hotels industries and has worked with SPRING and the Singapore Tourism Board to deploy these solutions.
In restaurants like Kinsa Sushi, guests can place their orders through Techmetics' iPad ordering solution. Their food is then delivered by Techi, a robotic waiter.
The company also adapted Techi to meet the needs of hotels. For instance, Techi is at work in Park Avenue @ Rochester, delivering room service. The robot is able to take the lift, travel to the guest's doorstep and notify him through a phone call that the food has arrived. Techi helps the food services and hotels industries do more without needing more staff. It also saves ageing workers from having to perform physically tedious or repetitive tasks.
It also means that homegrown tech companies can showcase their solutions and, hopefully, achieve greater success. We look forward to supporting more SMEs adopt such win-win solutions.
We often hear that SMEs are not sure whom to approach for help. Mr Saktiandi Supaat and Miss Cheryl Chan have raised similar concerns. We did not just reorganise the delivery of assistance in the form of ITMs. As a first touchpoint, we have our SME Centres for SMEs, including our heartland and micro enterprises.
As a first stop, the SME Centres provide customised business advice and help SMEs better understand Government initiatives. Last year, we also enhanced our SME Centres to provide business diagnosis and run capability workshops for SMEs. In total, our Centres assisted about 30,600 enterprises in 2016.
Complementing the SME Centres is our SME Portal, which serves as the first online touchpoint for SMEs. The portal offers Government and commercial information useful for SMEs. It also lists services suitable for SMEs at various business stages.
To improve our companies' access to technology and digital solutions, we will add a one-stop Tech Depot to the SME Portal by the second quarter of 2017. This is a showcase of easily adoptable technology solutions. It will include A*STAR's ready-to-go (RTG) technologies as well as IMDA's prequalified Infocomm and Media (ICM) solutions. These can help companies improve inventory and asset tracking processes, supply chain management and planning processes.
For SMEs looking to embark on a transformation journey, we are more than willing to meet them halfway by providing step-by-step, customised assistance. Let me elaborate on three areas.
Mr Yee Chia Hsing asked how our SMEs can increase their competitiveness, given the rapid technological changes. We have taken steps to help SMEs enhance their technological capabilities. These include improving their access to technology solutions and helping them identify and implement the ones best suited to their needs.
First, for SMEs that require specific help to identify how technology can support their business strategies, A*STAR can help them develop an operation and technology roadmap (OTR). This involves a customised, step-by-step guide of what companies need to do to better leverage technology in their operations. Since 2003, A*STAR has developed over 240 technology roadmaps, with positive feedback.
This year, we will partner the trade associations to expand our network of trained OTR facilitators. We aim to support up to 400 companies over the next four years.
Second, SMEs that wish to develop, prototype and test new products can tap on our new Tech Access initiative. They will get access to A*STAR's installed base of specialised equipment on advanced manufacturing.
This will help them build capabilities in the use of advanced machine tools, new processes, prototyping and testing. SMEs will also receive user training and advice from A*STAR to optimise the effectiveness of the equipment.
As Mr Thomas Chua has noted, TACs are important partners to help us leverage R&D to uplift the capabilities of our SMEs. A*STAR has worked with TACs, such as the Singapore Precision Engineering and Technology Association (SPETA) and the Singapore School Transport Association (SSTA), on specific R&D projects. A*STAR will continue to engage TACs on specific R&D projects, as well as to help them tap on new initiatives like the Tech Access and Tech Depot.
We also want to strengthen our support for SME capability development. SPRING's CDG is one of our key support schemes for this. It supports SMEs to take on upgrading projects across 10 key business areas. In 2016, SMEs took up close to 2,400 CDG projects, totaling $125 million in grants.
To make it easier for companies to do capability development, SPRING simplified the application process for grants below $30,000 in 2015. This has received a positive response and, as a result, many more companies today have been able to benefit from the grant.
We are constantly looking for ways to broaden and deepen our support for capability development. This year, we will strengthen our support in product development by extending the grant coverage to small batch production. Currently, most of our support efforts focus on helping companies develop their products at the R&D and prototyping phase. But for products to be commercially scalable, companies need to ensure that the product design and manufacturing process are optimised. This is tested through small batch production.
We hope the expansion in grant coverage will help to co-share risks associated with this early stage of production and help our SMEs to scale.
Beyond this, we will be taking steps to better drive innovation among our SMEs and startups. This will be with an enhanced GOV-PACT. Today, there are efforts by various Government agencies to work with companies to co-develop innovative solutions. Participating companies can also tap on SPRING's CDG to fund part of the cost involved in the development of new technologies. But we recognise that SMEs and startups still face uncertainty of securing the procurement contract after investing time and resources at the development stages.
To overcome this, SPRING will be working with several Government agencies, such as HDB and JTC, to drive procurement for innovation. We help more SMEs and startups participate in Government projects. For example, the procurement process for projects under this scheme will be broken into stages. An SME or startup will be eligible to move on to the next stage once the current stage proves successful. This will reduce the risk and investment for the SME.
As one of the agencies pioneering this, JTC has already been working with companies to fund and test-bed innovative solutions. It has worked with vTrium Energy, a local SME, on the test-bedding of flexible solar films within its CleanTech Park and Seletar Aerospace Park. Through the field trials, vTrium was able to prove that their flexible panels work well on curved surfaces and vertical building facades and in a tropical climate.
We hope that this initiative will give SMEs and startups the opportunity to engage the Government as a valuable reference customer and build their track record.
Mr Thomas Chua also asked about how SMEs can participate in the $700 million worth of construction projects that MOF is bringing forward. The Ministry of National Development will be speaking about this at their COS.
We also want to ensure that we have healthy, competitive and efficient markets in Singapore. This is the goal of the Competition Commission of Singapore (CCS) and I thank Mr Pritam Singh for his question. CCS administers the Competition Act, which allows it to issue an interim measures directive to businesses. This is provided there are reasonable grounds to suspect an infringement of the Competition Act and if there is urgency to act for the purpose of either protecting the public interest or preventing serious, irreparable damage to a business. To date, CCS has not issued any interim measures directive. We would like to clarify that in the case of EM Services brought up by Mr Pritam Singh, CCS' view was that the threshold for an interim measures directive, in other words, that third-party contractors had suffered serious and irreparable damage as required under the Competition Act, had not been reached. I would also like to highlight that safety concerns of the public would have been considered by BCA.
With regard to public consultation, it is standard practice for CCS to seek feedback from industry stakeholders on a company's proposed commitments as they are in the best position to assess if the commitments will address the competition issue. CCS would consider the feedback in deciding whether to accept the commitments.
I have explained how the MTI family assists SMEs, how we are making it easier for SMEs to obtain assistance, and how we are moving to help more SMEs in a customised, step-by-step manner to transform. But, given the sheer number of active SMEs in our economy, the Government alone cannot help all businesses transform. We need to strengthen our partnerships and collaboration to help more SMEs succeed.
Ms Foo Mee Har and Mr Liang Eng Hwa have asked about TACs. Our TACs are important enablers in the transformation of industries. They have a good sense of what is happening among their members and have strong industry networks. This allows them to effectively reach out and help more SMEs.
Over the past decade, through the Local Enterprise and Association Development (LEAD) programme, SPRING and IE have engaged about 40 TACs actively. They work on projects to support their members in capability upgrading and internationalisation. Altogether, close to 190 of these projects have been supported, with a committed grant of $190 million.
As an example, the Singapore Food Manufacturers' Association (SFMA) continues to build the international reputation of Singapore food products. It does so through activities, such as helping SMEs find new channels for their products in overseas markets, as well as marketing quality food products as tourism gifts.
Mr Saktiandi Supaat and Miss Cheryl Chan also asked about our plans to support our heartland enterprises. We are working with the Federation of Merchants' Associations, Singapore (FMAS) to deepen their internal capabilities and rejuvenate our heartlands. FMAS was recently awarded projects under our LEAD and LEAD+ programme to do so.
One of the projects FMAS will be working on is to help our heartland enterprises better align their business models to meet new demands of consumers and explore partnerships within the community for capability upgrading. To start off, FMAS is conducting two pilot studies in Bedok and Ang Mo Kio to identify market needs and formulate precinct development plans. In total, this project could benefit more than 2,500 heartland enterprises.
Ms Foo Mee Har may wish to note that during the last Budget, we introduced SPRING's LEAD+ programme to raise the internal capabilities of TACs in four areas, namely, TAC's leadership, management, processes and services. To date, seven TACs have been supported through LEAD+.
We recognise the importance of TACs as our key partners. We will increase the overall FY2016 to 2020 budgets under the LEAD Programme to $100 million to help more TACs to step up and do more for their members.
First, we will expand our outreach to more TACs. We have received feedback from several smaller associations that they would like to embark on projects to help their members. But they say they lack the know-how or experience to do so. To help these TACs take the first step, we will support them in improving their internal systems and processes, as well as in implementing bite-size upgrading projects.
Second, we will strengthen TACs in all the 23 ITM sectors, so that they can play a stronger role in driving industry transformation and internationalisation.
Third, we encourage TACs to collaborate with one another to reap greater benefits. Cross-sectoral, multi-TACs or projects where larger TACs step up to support smaller ones, can be supported up to 90%, from the current 70%. Such projects should have clear productivity enhancements or innovative outcomes that benefit a sizeable number of SMEs.
The full benefits of industry transformation cannot be felt if we have only a handful of progressive, creative SMEs in each industry. These benefits can only be unleashed when the majority of SMEs participate fully in the transformation process.
In this respect, we ask two things of SMEs. If you have found forums, workshops or networking platforms provided by the MTI family to be useful, please spread the word. If you have achieved success with a boost from our assistance schemes, please do not shy away from speaking up when invited or interviewed. This will help contribute to a more collaborative business ecosystem.
I recently attended the Turning Passion into Profits shareback event organised by the Singapore Productivity Centre. The aim was to help raise awareness about the resources and support ecosystem that F&B startups and microenterprises can tap on. I was very encouraged that several successful entrepreneurs came back to share their stories with others.
One example was Ms Diana Teo, co-founder of WaaCow!. This is a fast-casual restaurant retailing premium quality Japanese-inspired rice bowls. She spoke very passionately about the assistance she received. There are many more Diana Teos out there, and their collective sharing will help many more entrepreneurs build better, more competitive businesses.
Sir, SMEs are at the heart of our economy. The MTI family is committed to supporting them. We shall press on with our efforts to restructure the economy, even as we cope with the more immediate challenges. I have explained how we intend to do this through the ITMs, various initiatives to help our SMEs stay competitive, and working in closer partnership with our TACs. Together, I am confident that our SMEs will emerge stronger and better prepared for the future. Sir, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Our SMEs form the key pillar of our economy. How can SMEs transform in the future economy is a key concern shared by the Government and our society.
The Government takes feedback from SMEs very seriously. Firstly, SMEs need assistance as they are limited by scale. Several Ministers who spoke before me have talked about the short-term and long-to-medium term measures that the Government has rolled out to support SMEs, and how to help SMEs stay competitive.
Secondly, quite a number of SMEs say they hope Government assistance schemes can be further simplified, so that it will be easier for them to receive help. We take this issue seriously as well. It is why the Government has set up 12 SME Centres and have constantly worked to enhance the service quality of these centres, so that they can provide more targeted business consultancy services for SMEs. These SME Centres have worked well to complement the SME Portal set up by the Government. We are also actively enhancing the SME Portal with new features like Tech Depot, which provides technology and digital solutions suitable for SMEs. I urge SMEs to fully utilise the SME Centres and SME Portal as the first point of contact for them to seek assistance and obtain information.
Thirdly, SMEs interested in transformation have also said that they hope to receive more guidance on implementation, so as to avoid going through a lengthy process. In this aspect, the Government is happy to provide more detailed assistance, including the SME Go-Digital Programme and the new OTR Scheme.
Of course, instead of helping SMEs one by one, it is more effective to do it through the TACs. To get more SMEs on board various assistance schemes, the Government is also trying to enhance cooperation with the TACs. One good example is FMAS. FMAS embody the spirit of self-help and has strived to carve out a new path and inject vibrancy into neighbourhood businesses. Going forward, we will support FMAS in formulating new development plans for specific neighbourhoods, with Ang Mo Kio and Bedok being the first two to roll out their plans.
I hope to see more SMEs tapping into and strengthening the TACs and their networks, explore faster and better ways to embark on their journey of transformation, to turn a new page not just for themselves but also for the Singapore economy.
The Chairman:\tSenior Minister of State Koh Poh Koon.
The Minister of State for Trade and Industry (Dr Koh Poh Koon):\tMr Chairman, may I have your permission to display some slides on the LED screens later on in my speech, please?
The Chairman:\tYes please. [Some slides were later shown to hon Members.]
Dr Koh Poh Koon: Thank you, Sir. Several Members asked about the Government's efforts to help our companies and people adopt new technologies and internationalise.
Let me first address Miss Cheryl Chan's questions on the recommendation by CFE to continue building a globally competitive manufacturing sector. Manufacturing continues to remain a key pillar for our economy. The sector currently accounts for around 20% of our GDP and 14% of total employment. MTI supports the CFE recommendation to retain manufacturing at around 20% of our GDP in the medium term.
As highlighted by Mr Charles Chong, manufacturing creates good job opportunities for our people, contributes to productivity growth and generates positive spillovers to the rest of the economy. Based on MTI's estimates, a S$1-billion increase in manufacturing value-added through final demand generates about S$330 million of value-added, and 2,500 jobs for the rest of the economy, including business services and wholesale trade. Having a manufacturing base also helps us capture opportunities and generate innovation which would otherwise take place overseas.
Our push into advanced manufacturing will help strengthen the competitiveness and relevance of our manufacturing sector. One key difference between advanced and traditional manufacturing is the digitalisation and automation of manufacturing operations and workflow processes, from receiving an order, all the way to the production on the factory floor. Advanced manufacturing will enable companies, both large and small, to raise their productivity, as well as develop adjacent products, services and business models. In turn, this will strengthen Singapore's leadership in key industrial clusters, such as aerospace and semiconductors.
As Miss Cheryl Chan observed, global leading manufacturers have been investing in the development and commercialisation of new manufacturing technologies. Miss Cheryl Chan may be happy to note that many of these players continue to remain keen to work with our public sector research institutes (RIs). For example, aerospace heavy-weights Airbus and Honeywell have leveraged A*STAR's Aerospace Programme to better understand and minimise the causes of defects in aerospace components through additive manufacturing.
Under the Advanced Manufacturing and Engineering (AME) (RIE) 2020 strategy, we will leverage partnerships with leading manufacturers to co-develop and deploy advanced manufacturing technologies. The goal is to enhance the competitiveness of our manufacturing sector and position our enterprises as solution providers of advanced manufacturing technologies.
To this end, based on our established two \"Model Factories\" to allow companies, particularly our SMEs, to firstly, experience the technologies first-hand in a learning environment, without affecting their existing business operations and, secondly, to collaborate with stakeholders to test-bed and jointly develop innovative solutions for their processes.
The Model Factories will be hosted at the Singapore Institute for Manufacturing Technology (SIMTech) and Advanced Remanufacturing and Technology Centre (ARTC). We aim to have them operational by the fourth quarter of this year. Each Model Factory is designed to support the different technological needs of companies.
A key feature of the Model Factory@SIMTech is a \"live\" pilot-scale production line that allows companies to gain hands-on experience of advanced manufacturing technologies, prior to full adoption. SIMTech has also developed a suite of digital manufacturing solutions called the Manufacturing Control Tower (MCT) Platform which allows companies to have greater visibility and smarter management of their manufacturing operations through a central control platform that is easily accessible via a simple mobile app.
The second Model Factory@ARTC will allow companies to test-bed the integration of smart, digital and advanced technologies with their existing manufacturing processes for better productivity and resource utilisation.
Even as A*STAR is setting up these Model Factories I spoke about, one of our local enterprises has already started piloting SIMTech's MCT platform. Precision engineering company CKE Manufacturing is making use of the MCT to monitor the performance of five of its shop-floor machines in real-time. Using a mobile app, CKE's staff are able to track the performance of the machines without having to physically inspect them. The pilot has enabled CKE to improve its manpower deployment by about 50% and optimise the utilisation of its machines. CKE is now looking at connecting all its machines to this MCT platform.
The technology changes that we are witnessing are global in nature and not unique to the manufacturing sector. As Dr Tan Wu Meng noted, the biologics landscape is changing, too. The biosimilars space is nascent and the regulatory environment is still evolving internationally. What we do know is that innovator drugs, such as biosimilars, both require a strong regulatory environment, clinical development and manufacturing know-how to deliver safe and high-quality products to patients. We will continue to build core capabilities in R&D and the advanced manufacturing of biologics, in order to position Singapore well to capture investments arising from biologics, which includes biosimilars, regardless of the eventual market structure in this category of drugs.
We are confident that Singapore is well-placed to harness these disruptions and turn them into opportunities for our companies and people.
Mr Liang Eng Hwa and Mr Charles Chong asked about the Government's efforts to build up our startup landscape. Startups play an important role in our economy because they are nimble. They churn over ideas quickly and are more willing to take risks. Over the past decade, there have been considerable efforts by various stakeholders to develop a thriving startup scene in Singapore. These include nurturing an entrepreneurial culture, providing funding support and catering for the necessary infrastructure. As a result, we have seen a sizeable increase in both the number and the quality of our startups.
First, the number. The total number of startups in Singapore more than doubled from 22,000 in 2003 to 48,000 in 2015.
In terms of quality, our startups have also improved with significant increases in the number and aggregate valuations of startup exits. In 2015, there were 220 venture capital deals completed worth more than US$1 billion combined. This is compared to 26 deals worth US$80 million just five years ago. Notable successes include live customer support chat solution provider Zopim and online marketplace Lazada, which were acquired for about US$30 million in 2014 and US$1 billion in 2016 respectively.
Our efforts have catalysed a robust startup ecosystem here. But we can do more and we should. I co-led a startup deep dive as part of the CFE discussions last year. We studied how to give our startup scene an additional push so that it can take off in a much larger way. We will, therefore, strengthen our startup support in three key areas, namely, (a) branding, (b) funding and (c) talent attraction.
Let me first talk about branding. A coherent brand identity for Singapore startups that resonates among Singaporeans and the rest of the world is important, given the fierce global competition for entrepreneurial talent and funding today. As a first step, therefore, we will establish a new umbrella branding known as \"Startup SG\" to unify our startup support schemes. Some of the schemes under the Startup SG umbrella branding include:
(a) Startup SG Founder to support first-time entrepreneurs;
(b) Startup SG Tech to support the development of deep-tech innovations;
(c) Startup SG Equity to incentivise equity co-investment for startups;
(d) Startup SG Accelerator to support incubators and accelerators which offer programmes for startups; and
(e) Startup SG Talent to support talent development for startups.
With the unified branding, it will be easier for budding entrepreneurs to identify the relevant schemes for their unique situation and their needs. Over time, we will work with other stakeholders to further strengthen this Startup SG brand.
To further support our startups, we will also enhance two key enablers: first, funding and, secondly, talent.
Let me address the first enabler. Equity financing is important to enable our startups to grow and scale. However, not all startups have the same funding needs or gestation periods. For instance, compared to infocomm technology (ICT) startups that develop online applications or web portals, startups that develop non-ICT or deep technologies typically require higher capital outlays and a much longer gestation period to succeed, due to the prototyping process and product trials that they need to undergo.
Therefore, as part of the Startup SG Equity scheme, we will enhance the Government's co-investment support for promising startups in deep-tech areas, such as in medical technology, clean technology and advanced manufacturing, to catalyse private sector investment for this group. We will enhance the Government's support in two ways.
Firstly, we will double the investment cap for the Government's co-investment portion for deep-tech startups from $2 million to $4 million. This enhancement allows the Government to tier our funding support for ICT and deep-tech startups according to their differing needs.
Secondly, we will increase the proportion of the Government's co-investment funding support for supported investments from 50% to 70%.
The second enabler is talent. As Mr Charles Chong noted, we need a strong talent pool, comprising capable entrepreneurs who can contribute to our local startup scene. Given Singapore's small size, we need to remain open to promising global talent.
The rising global protectionist sentiments that emerged in 2016 present us with the opportunity to position Singapore as an attractive startup location for global talent. Foreign entrepreneurs have the capacity to add to the vibrancy of our startup scene. They complement our local startups through the cross-fertilisation of ideas, catalyse new partnerships and create good jobs for our people. As of 2015, foreign startups employed more than 19,000 workers in total.
In 2003, we introduced a work pass scheme known as EntrePass for foreign entrepreneurs keen to start a business in Singapore. We will further enhance this scheme to create a more conducive environment for promising global talent keen to establish innovative businesses here. Under the enhancements, the existing entry and renewal criteria will be revised. Let me outline the three key changes.
Firstly, we will remove the requirement for applicants to have a paid-up capital of at least S$50,000 in their startups, to welcome global entrepreneurs with good ideas to come in at a much earlier stage and grow their businesses from Singapore.
Secondly, we will broaden the evaluation criteria for global startup founders with an established track record to explore the startup scene here.
Finally, we will extend the validity of each EntrePass from the current one year to two years, after the first renewal at Year 2. In other words, if the foreign entrepreneur can demonstrate progress at the end of the first year, the EntrePass will be extended for another year. Thereafter, subsequent EntrePass renewals will be valid for two years.
These enhancements will better position us to engage and attract a larger talent pool at the global setting at an earlier stage who can contribute to the vibrancy of our local startup scene. The enhancements are especially timely, given the increasing international interest in Singapore as a global startup destination.
In the same spirit of remaining open, we want to encourage our local startups to also adopt a global mindset and tap on our existing extensive bilateral networks as launching pads for their overseas ventures. GIA, mentioned by the Ministers for Trade and Industry Lim Hng Kiang and S Iswaran, seeks to enable this exchange of innovative ideas between our local companies and their foreign counterparts.
In fact, our local partners are already actively facilitating such collaborations. In the US, NUS Enterprise, SingTel Innov8 and SGInnovate jointly set up Block 71 at San Francisco as a launch pad for Singaporean tech startups. Last year, the Action Community for Entrepreneurship (ACE), a private-led initiative aimed at fostering entrepreneurship, also partnered US-based Singaporean networks to establish the ACE-Silicon Valley Chapter. Both of these serve as platforms for our companies to gain access to US markets by tapping the experience and networks of US-based Singaporeans and their US counterparts. GIA will ride on existing initiatives such as these to enable our companies to strengthen inroads, build partnerships in foreign markets and prepare our companies to internationalise. Sir, may I now speak in Mandarin, please?
(In Mandarin): [Please refer to Vernacular Speech.] Mr Thomas Chua, Ms K Thanaletchimi, Ms Sun Xueling and Ms Cheryl Chan asked about the Government's role in supporting companies in their internationalisation efforts, particularly in emerging regions which are experiencing higher growth rates.
As the Minister for Trade Lim Hng Kiang mentioned, internationalisation is a key engine of growth and transformation for our companies, big and small. To scale and transform, our companies must leverage the strong Singapore brand to tap good growth opportunities beyond our shores.
IE Singapore supports companies looking to internationalise through various grant schemes. These include the Market Readiness Assistance (MRA) for companies taking their first steps in internationalisation, and the Global Company Partnership (GCP) which provides more customised help for companies with a more established presence overseas. In 2016, IE Singapore assisted companies in over 37,000 cases, with SMEs accounting for about 80% of them. IE Singapore also helped companies facilitate over 450 projects globally in the same year, up from around 420 projects in 2015. Notably, a significant share of these projects was oriented towards helping companies understand market needs, build track record in new markets or new lines of businesses, leverage digital platforms and channels to access global customers and scale-up, and level up capabilities through technology acquisition and overseas partnership and HR development. Such efforts strengthen the credibility and business reputation of our companies and reinforce their ability to clinch future deals.
As Miss Cheryl Chan pointed out, there are substantial growth opportunities in emerging economies which are experiencing higher growth on the back of rapid urbanisation and consumerism. The focus of our company assistance has, indeed, been on emerging markets. IE Singapore provides highly targeted in-market support to our companies through its global network of 37 Overseas Centres, many of which are located in emerging markets in Southeast Asia, China and India. As the Minister for Industry S Iswaran mentioned, we will strengthen coordination of our agencies' overseas operations under the \"Singapore Centres\". We will also continue to deepen our in-market presence and networks in these markets and help our companies identify and seize new opportunities.
Additionally, we have several G-to-G projects in overseas markets to help our companies collaborate with in-market partners. One such G-to-G project is CCI, which has allowed our companies to make inroads into the less familiar region of western China.
One company that has collaborated successfully with its Chongqing counterpart under the ambit of CCI is Changi Airports International (CAI), which agreed in January 2017 to form a commercial joint venture with the Chongqing Airport Group to manage the non-aeronautical business at Chongqing Jiangbei International Airport.
As part of CCI, the Singapore Government is also working with our Chinese counterparts to develop the Southern Transport Corridor. When ready, the Southern Transport Corridor will boost connectivity between western China and Southeast Asia via Guangxi, a province that has been designated as China's gateway to ASEAN, by shortening the transit time for goods between both regions. In complementing the Chinese plans to develop the western regions, we can open up even more new opportunities for our companies.
Two companies are riding this wave of opportunity in Guangxi. They are PSA International and Pacific International Lines (PIL). They are currently partnering the Beibu Gulf Port Group to manage port facilities in Qinzhou, which is a key port for international lines and shipments to enter China from the south-west coast.
In September last year, I led a delegation to Nanning to support Singapore's participation at the annual China-ASEAN Expo (CAEXPO), a high-level platform that promotes economic cooperation between ASEAN and China. I am happy to know that the event has provided opportunities for our SMEs to enter the Chinese market.
I will give Members an example here. There is a Singapore company that specialises in mini cupcakes, Tian Tian Wu. Two years ago, the founder had the opportunity to participate in the Singapore Pavilion at CAEXPO. There was overwhelming response for its products. Shortly after, it started to grow its cupcake business in Nanning. Today, Tian Tian Wu has three outlets in Nanning, all served by a central kitchen. I understand that Tian Tian Wu's mini cupcakes are exceptionally popular among children and that parents are assured of the quality and safety due to the Singapore branding. Tian Tian Wu has since expanded its service offerings to include cupcake baking classes for families.
As these companies have shown, there are plenty of opportunities for our companies in diverse sectors arising from the rapid growth of emerging regions around the world. I encourage our companies to take advantage of the available Government support to capture these opportunities and reach greater heights of success.
(In English): Let me now address Mr Lim Biow Chuan's question, which he submitted earlier to MTI, on how we can better protect our consumers. I wish to assure Mr Lim that we take a serious view of errant retailers who engage in unfair trading practices and will not hesitate to take firm action against them. We amended the Consumer Protection (Fair Trading) Act (CPFTA) in 2016 to empower SPRING with investigative and enforcement powers to take injunction action against errant businesses. Cases that involve criminal activity will be handled by the Police. Members may recall the recent case of parallel car importer Volks Auto. One of its employees was charged for criminal conspiracy to cheat its customers and sentenced to 10 years in jail.
Let me emphasise that company directors who knowingly take monies from prepayment deposits for their own personal purposes may be separately prosecuted under the Companies Act and the Penal Code as well.
Sir, let me conclude. As I have elaborated in my speech, there are plenty of opportunities for our companies and people, be they manufacturing firms looking to adopt technologies, SMEs keen on expanding overseas, or aspiring entrepreneurs. Through our various initiatives and programmes, the Government will support our companies and people to seize these opportunities.
The Chairman:\tParliamentary Secretary Ms Low Yen Ling.
The Parliamentary Secretary to the Ministers for Trade and Industry (Ms Low Yen Ling): Mr Chairman, the Ministers for Trade and Industry have spoken about the political developments, economic trends and technological changes that will have an impact on our economy. Singaporeans are naturally concerned about jobs and whether their skills will continue to be relevant.
We would like to assure Singaporeans that we will do our utmost to empower every Singaporean with the capabilities to make a good living. We will equip our people with skills, enable companies to develop their employees and expand our people's horizons to access opportunities.
I agree with Mr Saktiandi Supaat that continuous education should be purposeful. With the ITMs, the Government will collaborate with industry partners, TACs as well as unions to prepare our companies and people for the challenges and opportunities of each of the 23 industries. Possible career pathways and occupations are being charted out even as industries and jobs transform. Singaporeans have a diversity of initiatives under SkillsFuture to stay equipped and relevant. Let me now share how this integrated approach will prepare our people to access new opportunities.
Firstly, we will identify the key industry trends and gear up Singaporeans with the relevant skillsets.
Secondly, we will identify the kind of skills that are relevant within a cluster of industries as this improves skills portability. For example, Mr Suresh Dakshnamoorthy started his career in a marine and offshore company providing quality control of electrical equipment. Six years ago, he made a career switch to Thales, an aerospace company. Although Suresh was unfamiliar with the aviation industry, Thales recognised his skills in electrical inspection as well as his familiarity with quality control tools. Suresh is now a Cell Leader in charge of planning production flows to meet his team's weekly targets. So, we can see from Suresh's example that when we identify common or complementary skillsets within a cluster of industries, we can help our people, our Singaporeans, to take advantage of adjacent employment opportunities.
Thirdly, we will build up a pipeline of local talent to access growth opportunities overseas. Mr Supaat also asked how we can help our local businesses tap on infrastructure-related opportunities in Asia. The Minister for Industry has announced how we will improve companies' access to private cross-border project financing. These initiatives will be complemented by the launch of a new Professional Conversion Programme for Global-Ready Infrastructure Talent (GRIT). We target to place and train 300 individuals over the next five years to develop a pipeline of talent in infrastructure project development. These candidates will receive on-the-job training for up to 18 months and they will gain relevant exposure to regional infrastructure projects. The programme will subsidise a part of the participant's salary. More details will be made known in the next quarter of this year.
Besides equipping our workforce, we will continue to enable companies to actively develop their workers' capabilities and skills. This will, in turn, better support their business objectives, be it to improve productivity, go digital or expand overseas.
Companies have several avenues to tap on. The Government's SkillsFuture Leadership Development Initiative (LDI) offers support to companies that institutionalise programmes to build up leadership capability of Singaporeans, to develop our local bench strength and groom the next generation of Singaporean business leaders. Through this programme, promising individuals gain exposure to key overseas market and critical business functions. Mr Chairman, please allow me to continue in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] MTI recognises that some SMEs may need assistance to build up their HR and talent development capabilities. In this area, we encourage SMEs to tap on the SkillsFuture SME Mentors Programme. SME Mentors can work with you to establish structured learning and development (L&D) systems. These systems can help improve the efficacy of your staff training, as well as uplift your capabilities to offer work-learn and internship places to young local talent.
Miss Cheryl Chan spoke about how micro-enterprises may face difficulty in training their employees due to limited resources. SkillsFuture Singapore (SSG) has been working with Post-Secondary Education Institutions (PSEIs) and training providers to deliver flexible and bite-sized training for working adults so that it is easier for them to undergo training.
For instance, the Singapore Institute of Retail Studies (SIRS) provides bite-sized training that can be structured around business trading hours and conducted at the workplace. SIRS also delivers e-commerce courses and programmes for micro-enterprises.
I agree with Miss Chan that senior PMEs have a wealth of experience and we should tap on them as we build capabilities in our people and companies. Today, we have 116 SkillsFuture SME mentors with extensive experience in various industries. Senior PMEs with strong industry knowledge and people management skills could help our companies develop HR capabilities. For PMEs with this aspiration, I encourage you to participate as a SkillsFuture SME Mentor.
(In English): The Ministers, Senior Minister of State and Minister of State have touched on the needs for companies to look for opportunities beyond our shores. I agree with Dr Tan Wu Meng and Ms Sun Xueling that apart from deep industry skills, our people need to have a global mindset to grasp emerging opportunities.
To nurture this global outlook, the Government is increasing the opportunities for Singaporeans to gain overseas exposure at different stages of their careers. For working adults, the SkillsFuture Study Award for International Business will enable them to acquire skillsets that are needed to navigate the complexities of overseas markets. For our youths, we have the SkillsFuture Young Talent Programme (YTP) that offers overseas internships and work study programmes. We are pleased to report that as at end of 2016, over 500 students have benefited from the YTP international experience.
Exposure is but one aspect of expanded horizons that we are all trying to cultivate. I agree with Ms Sun that the ability to speak the native languages of emerging and growing markets is a definite asset. The knowledge of our mother tongue languages has proven to be very useful in building our business and cultural relations in Asia and the neighbouring markets. For those wishing to brush up on mother tongue languages or pick up new ones like Thai, Vietnamese, Japanese or Korean, SkillsFuture has various language courses to choose from and these can be paid for with the SkillsFuture Credit.
In conclusion, even as our economy and industries transform to meet the challenges that change brings, what remains unchanged is the constant effort of the Government to ensure that our people and our companies are equipped, enabled and given the opportunities to expand the horizon, that we can stay agile, astute and relevant. However, the Government cannot do this alone. We need the industries and unions to work hand in hand with us, as we support our companies and people on this journey of lifelong learning, training and development to stay ahead for the future.
The Chairman:\tThank you, Ms Low. We do have a little bit of time for some clarifications. Mr Liang Eng Hwa. Can you please avoid asking questions about chocolates, burgers or cupcakes at this hour?
Mr Liang Eng Hwa:\tSure. Thank you, Chairman. I am happy with the announcement of yet another scheme, the Gov-PACT, where the Government will introduce flexibility in the procurement of innovation solutions. Can I ask the Minister what sort of contractual amount we are looking at and how extensive this will be? In some jurisdictions, such schemes also come with some bridge financing for the startups, including for some new inventions, some safeguards for IP. So, is that what we are going to do as well for this scheme?
The Chairman:\tCan I ask that the replies be kept short, too?
Mr S Iswaran: Chairman, I will keep the reply short. The answer is that it is in the early stage of the scheme. Obviously, the contract sums have to be reasonable because they must be within the reach of whether an early-stage company or an SME. What we will do is, SPRING will work with the Government agencies, as I said, to develop the model, and then we will see how we go from there.
As for financing, I think we have a range of schemes available. We have to see whether that is adequate or there are special needs required.
The Chairman:\tMr Pritam Singh.
Mr Pritam Singh: Chairman, just two quick clarifications for Senior Minister of State Sim Ann. With regard to the lift companies under investigation, I understand there are a few more that are still under investigation for anti-competitive practices. When can we expect those investigations to be complete?
The second clarification is with regard to the threshold before which interim measures are instituted against lift companies under investigation. I would suggest that it is not just the interest of the third-party lift manufacturers that the Competition Commission should be concerned about, but also the procurers of those services, like Town Councils, for whom lift costs have increased considerably. Their interest also ought to matter and I hope the Commission can consider that when they look at what sort of measures ought to be instituted against companies found guilty of anti-competitive practices.
Ms Sim Ann: I thank Mr Pritam Singh for the clarifications. I am not able to comment on ongoing investigations, but I am confident that our colleagues at CCS are doing their best and addressing the issue as quickly as they can and as comprehensively as they can.
As for the Member's point about the interest of those who procure the services of the third-party lift maintenance contractors, the CCS had, indeed, in their press release, acknowledged that potential cost savings could be had if competition in the supply of lift spare parts was not curtailed. This is also something that they sought stakeholders' feedback on, and they take this feedback into consideration when deciding whether to accept the commitments that the company eventually undertook. So, all this is taken into account.
The Chairman:\tMs Sun Xueling.
Ms Sun Xueling:\tI have a question for Minister of State Koh Poh Koon. My question is in regard to the enhanced EntrePass scheme. I would like to enquire if a business plan from the foreign entrepreneur would be required. And given that this is a startup, how would the officers assess the business plan?
Dr Koh Poh Koon:\tSir, the agencies that give out the EntrePass would take a look at the track record of the entrepreneur, whether he has been successful in creating and spinning off companies, and whether he is a serial entrepreneur, for example. And in accepting him into the country as a startup, his business plan would have been taken into account as well, and all these will be taken holistically into consideration.
The Chairman:\tMr Leon Perera.
Mr Leon Perera:\t Sir, just a brief clarification to the Minister regarding my third cut about secondment of private sector personnel to MTI. Are there any schemes or programmes right now which allow private sector personnel to be on secondment for short stints to MTI, or even another way around? If not, is this something that MTI may consider for the future?
Mr S Iswaran:\tI thank the Member for his question. To the best of my knowledge, we do not have any formal scheme for the secondment of private sector individuals to the Ministry or our agencies per se. But I think the intent behind this suggestion was more that the private sector should be deeply involved in our economic planning and development processes. And that is something that is quite a pervasive system. If you look at the CFE process, more than 80% of the members in the main committee were from the private sector. When you go below that, the 9,000 people who were consulted were almost entirely from the private sector. That is a key part of the work. In the ITM process, we are involving businesses in a very intrinsic way, not just in the planning, but in the implementation, review, adaptation and so on. I would add that we have a lot of secondment out from the public sector to the private sector. But I am not sure about the private sector to public agencies, because often the feedback is that they need more talent, not that they want to offer their talent to the public sector.
The Chairman:\tMr Yee Chia Hsing.
Mr Yee Chia Hsing: Chairman, I would like to thank Minister Iswaran for his answer on tiered electricity tariff. Anecdotally, I heard of stories where certain expatriate families' utility bills are paid for by the companies, so they keep their aircon on throughout the day, throughout the whole house and the electricity bill can be more than a thousand dollars a month. So, it is exactly these few, I would say, which are the most polluting households, which we would like for them to pay a penalty to change their behaviour.
Mr S Iswaran: Mr Chairman. I assume the Member's focus is not just on expatriate families but, in general, on high consumers of electricity.
In general, the right policy is to make sure everybody understands it. Electricity is not cheap in Singapore. I think we are all aware of that. It is fully priced and there is a reason for that, not unlike the discussion we had on other utilities and in the context of Singapore and in the context of this debate.
So, that is our primary focus. And then, when we offer the support or subsidies, these are for the families that need them more. In general, we are relying on, first, the approach we take in pricing. We have not gone down the path of punitive pricing, also because who is to say who is consuming too much and who is consuming appropriately? You may be in a family in a 3-room flat, but you may be over-consuming. And you may be in a family living in a condominium, but you may be under-consuming.
To set thresholds, there are too many variables involved, and it starts to get the Government into areas that are quite fraught. I would suggest that the right approach is what we have embarked on. It is not perfect by any means, but it is, in general, a methodology that encourages conservation. If people are relying on their companies to pay the bill, then the company should look into their electricity consumption.
The Chairman: Mr Liang Eng Hwa.
Mr Liang Eng Hwa:\tChairman, as I remember, MTI does have an anti-profiteering taskforce that was set up some time back. I would like to ask the Minister whether this taskforce is still active. And given the concern about water hikes and how businesses could profiteer, these are concerns from the public whether the taskforce will now swing back into action and start to go around and ensure that there are no profiteering activities happening, especially in the neighbourhood areas?
The Chairman:\tI think Mr Liang is referring to the Committee against GST profiteering. Minister?
Mr S Iswaran: Actually, Mr Lee Yi Shyan can comment on this, because he used to be the Chair. [Laughter.]
But let me say this. As the Member and also Mr Chairman has observed, the previous avatars this committee was really to address were something very generalised, like the Goods and Services Tax (GST) increase. There was a concern then because the GST has a broad-based effect, and then you do have some concerns about how the tax, in turn, is transmitted through into prices.
In the case of water, it is a very specific tax. Its incidence is, therefore, very targeted. In general, if you look at most of the common commodities and products that are being produced, water, as a proportion of costs, is quite small and should not, therefore, warrant the same kind of concerns.
Having said that, if there are any reports of profiteering or suspected profiteering, that is something we are quite happy to see whether there is appropriate action that can be taken.
The Chairman:\tAll right. Mr Liang, would you wish to withdraw your amendment?
Mr Liang Eng Hwa: I want to thank Minister Lim, Minister Iswaran, Senior Minister of State Sim Ann, Minister of State Koh Poh Koon and Parliamentary Secretary Low Yen Ling for doing justice to the cuts that we have filed, with their very good and comprehensive answers. I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $934,388,300 for Head V ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $5,226,603,400 for Head V ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply Reporting Progress","subTitle":null,"sectionType":"OS","content":"Mr Lim Hng Kiang:\tSir, may I seek your consent to move that progress be reported now and leave be asked to sit again on Monday, 6 March 2017?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again on Monday, 6 March 2017.\" − [Mr Lim Hng Kiang.] (proc text)]
[(proc text) Thereupon, Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Lim Hng Kiang:\tMr Deputy Speaker, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2017/2018, and ask leave to sit again on Monday, 6 March 2017.
Mr Deputy Speaker:\tSo 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.\" – [Ms Grace Fu Hai Yien.] (proc text)]
Adjourned accordingly at \t8.55 pm.
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