1 Mr Leon Perera asked the Minister for Defence (a) what is the projected total cost of producing, packing and distributing the NDP funpacks to each citizen and PR household for NDP 2020; and (b) whether the Government will consider creating an option for those who would like to donate the expense required for their funpack back to the state or to charities.
2 Miss Cheng Li Hui asked the Minister for Defence (a) whether essential and care items can be included in the NDP funpacks to enhance the relevance and usefulness of the funpacks during this challenging period; (b) what items in the NDP funpacks have already been produced for distribution; and (c) what happens to excess items not distributed or when households opt out of the funpacks.
3 Ms Denise Phua Lay Peng asked the Prime Minister how will Singapore's National Day commemoration and celebrations differ at the national and local levels in view of the COVID-19 measures.
\tThe Minister for Defence (Dr Ng Eng Hen): Mr Deputy Speaker, the first three questions on the Order Paper are related to the National Day Parade. For Question No 3 put by Member of Parliament Ms Denise Phua, I will be answering on behalf of the Prime Minister. Can I seek your consent to take these questions together?
\tMr Deputy Speaker: Yes, please.
\tDr Ng Eng Hen: In Singapore's relatively short history as a nation, the National Day Parade has always taken centre-stage as we celebrate each year of independence. Members in this House have attended these National Day Parades. And many of you have kindly told me after each parade that it was well done, the mood was lifted, there was a sense of togetherness as Singapore and Singaporeans.
So, I think, in turn, the National Day Parade has served our nation well – both as a rallying call for all Singaporeans to stay united but also a clear statement of our confidence and determination to succeed collectively, no matter the odds. Through thick and thin, good times or bad, it showed Singaporeans celebrating and standing firm as one people, regardless of race, language or religion. I am so used to the mask that I spoke with it; forgot to take it off! That is what COVID-19 has done to us.
How did it come about? Not all countries celebrate their national days the way that we have or put the national day parade as centre-stage.
There is a history to the National Day Parade. The first National Day Parade (NDP) in 1966 was held amid the most testing of times. But that inaugural NDP would set the example for the subsequent 54 years.
On the morning of 9 August 1966, 500,000 school children assembled in schools and sang the new national anthem, Majulah Singapura, Onward Singapore. That first NDP was held at the Padang with 21-gun salute as the President reviewed various contingents that we have become accustomed to the SAF, the Police, NTUC, uniformed youth organisations and so forth.
The military units then marched from the Padang into Chinatown, to waving crowds. Fireworks at that time, took place at the Padang and Fort Canning. It followed the Parade and it adorned the skies. At night, there was an illuminated sea dragon, 150 metres long, 12 metres tall, lit up by 12,500 bulbs. It may be prosaic to us today, but at that time, it was quite spectacular. It sailed across what is today's Marina Bay.
By all accounts, it was an extraordinary event, especially for a nation that was barely a year old. Could Singapore afford it in 1966? Could the money have been put to better use? Remember that our fledgling nation had a host of unsolved problems – high unemployment, few could afford to own homes, high drop-out rates even at Primary 6, inadequate medical care. I am just naming a few.
Why did the first NDP proceed that way? Because the unity and collective confidence for the future that it engendered among Singaporeans was priceless. It showed to the rest of the world that despite great difficulties, ours was a country that would not be beaten down, ours was a people that will rise and overcome. Without that unity and confidence, Singapore could not have survived, let alone thrived against the challenges that our founding generation faced.
Member of this House will readily recognise that subsequent National Day Parades take reference from and pay homage to that seminal NDP of 1966 – both in spirit and form.
At each National Day, as we did during the first, we are making a conscious act of the will. It is a willful event that we have said we will celebrate, whether individually or as one people, to celebrate each National Day with the same indomitable spirit, never mind the prevailing difficulties and never mind the differences among people.
As Singapore prospered over the years, that focus on survival, overcoming difficulties, even unity, may have inadvertently diminished.
We have had a good run. So, over the years, the NDP has now evolved into softer tones. It has become more individualistic, more of an affirmation of what Singapore is and what being Singaporean means to each citizen. So, you would remember the videos that we played in previous NDPs. They had resonance, Singaporeans liked them because they focused on individuals, differences among our people and yet the unity that we could form from it. That may be today's zeitgeist but we should never forget that the first NDP and the origin of that spirit remains essential for our nationhood.
When the NDP Executive Committee (Exco) revealed some details for NDP 2020, some Singaporeans felt that these celebrations were wasteful and that the same resources ought to be spent elsewhere, especially in light of the impact that COVID-19 had on our economy and jobs. We have had four Budgets, and each time, we dig into our reserves, to make sure that we protect lives and protect livelihoods and jobs.
I appreciate that point of view and agree fully with them that we ought to be prudent. The final cost figures are not yet in, but at very least, this year's NDP should be able to reduce the usual budget by a third, with savings from the cost of infrastructure that would have been built if we had held it in the usual way at the Padang or the Float @ Marina Bay.
I am all for prudence. I think Members of Parliament know me. But we should guard against the mood of despondency overcoming us or allow individual preferences to divide us. If we allow despair to prevail in our national psyche, particularly in this COVID-19 pandemic, then, I say that would be the greatest harm to the future of Singapore – much more devastating than the economic impact, the loss of jobs and businesses.
Indeed, through every troubled period of Singapore's history – whether it was the British withdrawal in 1971, the recession of 1985, the Asian Financial Crisis in 1998, SARS in 2003, the Global Financial Crisis in 2008, the H1N1 epidemic in 2009 – the drumbeat of the National Day Parade that Singaporeans marched to, neither faltered nor reduced in intensity. Even through those difficult years, Singaporeans chose to celebrate the National Day Parade as we have always done, and rallied together. Because of that hope and optimism, Singapore emerged stronger.
It has been five months since COVID-19 struck our nation. It is, by any account, the most severe disruption globally for at least a century. In fact, experts have to go very far back to find events that matched the equivalent magnitude of the impact. Events like World War I, the Great Depression of the 1920s and 1930s, World War II are cited.
For tiny Singapore alone, the infections will last many more months. But the impact of disrupted lives and livelihoods will last even longer.
If at this early stage, Singaporeans lose their mettle, their inner strength and equanimity, lose their resolve, weaken their resilience, sharpen their differences, then, we are already in trouble.
This is not the Singapore that you and I know. This is not the Singapore spirit that has ensured our survival through many previous hardships. So, I say, despite the difficulties and indeed, because of the more challenging times that are ahead, we should celebrate this year's NDP as we have done before and just as our founding generation did during the first NDP. That, for us, is the most important aspect for this year's NDP.
The Exco for NDP 2020 has stayed true to its roots, but has adapted the format to reduce the risk of infection in the face of an imminent threat from COVID-19. Their concept, which Ms Denise Phua asked about, is a simple one. Not being able to hold the NDP at a central location with large crowds should not prevent Singaporeans from expressing their pride and love for Singapore and the call for unity.
NDP 2020 will be celebrated in the safety and comfort of every household in Singapore. We may be physically apart, but we want to join in spirit as one people with that same confidence and optimism and unity that the founding generation fostered despite harsher and grim circumstances.
Most elements will follow the traditions of past NDPs, but some items will be new. The morning segment will begin with the Prime Minister's National Day message. To remind us of that founding Singapore spirit of that first NDP and to gear Singapore up to face difficulties ahead, it is only right that a parade be held at the Padang. The President will be the Reviewing Officer but for a much smaller scale parade comprising only SAF and Home Team contingents. This will be telecast live. SAF helicopters carrying the Singapore flag will fly over the Padang and also make their way across the housing estates through Singapore.
When the Anthem is played at the Padang, flag-raising ceremonies around the island will take place concurrently, so that Singaporeans across the island, whether in their constituencies, camps, workplaces or elsewhere will be singing Majulah Singapura in unison.
In past NDPs that Members of this House have enjoyed, the SAF aircraft could fly only over the NDP site, whether at the Padang or the Float. With Changi Airport being one of the busiest in the world, that was all the air space and the air time that we could be allocated for NDP. We expect air travel to pick up in the months ahead and I know that MOT and CAAS are working very hard. But this year, let us turn this into an opportunity so that the SAF aircraft can fly in formation over the heartlands of Singapore, so that Singaporeans can watch it from their homes.
Mobile columns from the SAF and Home Team will also travel through various parts of the island. With them will be the frontline heroes and heroines who have shown exemplary sacrifice and courage in fighting this COVID-19 pandemic. I know that Singaporeans want to thank them personally. The NDP will be a good occasion from a safe distance for Singaporeans to cheer them on and show them their much deserved appreciation.
Instead of an NDP show with thousands of participants, there will be a boutique studio show at night, with performances by some local artistes and talents which will be broadcasted live. There will be interactive elements for Singaporeans to sing along, join in the Pledge during the show.
And as we do each year, there will be fireworks across a few sites in Singapore to cap the day's and night's events over the Singapore skyline, both in the Central Business District and the HDB heartlands. The fireworks will not be as long or spectacular as recent centralised NDPs, but I hope that it will lift the spirits of Singaporeans all across the island.
To facilitate Singaporeans joining in as one people and one nation, the NDP Exco provides what they call a \"Singapore Together Pack\". Mr Leon Perera and Miss Cheng Li Hui asked about this. The Exco had engaged various groups in designing this pack and has also taken in public feedback. Full details are still being worked out but let me share what I can.
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Singaporeans will find the bag for the pack useful as a reusable grocery bag; it is practical, foldable into a small pouch. The designs on the bag are by local artists with disabilities and some of our Primary 5 pupils – each design an expression of their feelings for their country and fellow citizens, and their hopes for the future.
As families will be at home, there is no need for single-use water bottles, neither plastic clappers nor packaging. These have been done away with, to reduce waste. There will be items that express our collective love and wishes for Singapore like the National flag – a full-sized cloth flag, a handheld one – as well as iron-on patches for your masks, a pledge card and face tattoos. Well-wishing corporations have asked to add to the pack items to express their gratitude for what Singapore has given them, by giving back to Singaporeans. The Exco has decided to include hand sanitisers, thermometers, face masks – I think Miss Cheng asked about this – and a snack and drink from a local F&B company. Companies are also offering vouchers and we have decided to put them as an e-discount booklet. Mr Leon Perera asked about cost – the cost of each Singapore Together Pack will be around $2.40.
For every NDP, the Exco aims to be inclusive and they take in views and accommodate different interests where possible. I think this is good and forward-leaning. But let me just say this as a gentle caution. If every interest group pushes for its own agenda especially during the NDP, then our common ground to celebrate this national event shrinks. Because the Exco simply will never be able to satisfy every request adequately. What the Exco can do this year is to produce fewer Singapore Together Packs, taking into account those who have said that they do not need one. It will therefore produce packs for about 80% of households, which from prior experience should be adequate. All those who want them to celebrate our NDP together can collect them from the CCs.
Mr Deputy Speaker, the COVID-19 pandemic will define this generation of Singaporeans, just as the first NDP, those who attended the first NDP, the Merdeka Generation, were defined by the difficulties we had as a newly formed Singapore.
For this generation, our response will determine whether Singapore continues to thrive in the post-COVID world. As with every crisis, people have a choice to make – to overcome or be overwhelmed.
As we did at the very first NDP, I urge all Members of this House and all Singaporeans to reaffirm our unity, to reaffirm our resilience, bonded by the same vision and optimism that Singapore will prevail and overcome the challenges that this COVID-19 pandemic has brought upon us. The months ahead will be trying and the difficulties ahead will test our resolve and cohesion. Despite all of this, Singaporeans can, and Singapore will, celebrate NDP 2020 with confidence and hope for a brighter future. [Applause.]
\tMr Deputy Speaker: Miss Cheng Li Hui.
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Miss Cheng Li Hui (Tampines): I thank the Minister. I have four supplementary questions. The Minister mentioned that the total number of packs is for 80% of the households. How did the 80% come about? What was the redemption percentage for SG50 packs? Is 80% sufficient to cater to the anticipated demand? What happens to the unredeemed items?
\tDr Ng Eng Hen: Let me thank Miss Cheng Li Hui for her questions. Our past experiences show that 80% will be enough. It is actually less than what we produce usually. We produce usually about 90% of households, sometimes 95%, but we have taken into account those who said they do not need one. I would like to believe that they feel that we are confident enough to celebrate and to join other Singaporeans without all these facilitative things – the flag, tattoos, the iron-on and your masks. We will leave them as they wish and so we will produce 80% which should be adequate.
The difficulty that the NDP Exco had is trying to shoot a moving target. They started planning this in March. So, when they presented to me the plans, they had a number of scenarios. One scenario was – this was before circuit breaker – the normal NDP, the usual, thousands upon thousands. An interim scenario is where you can have crowds of 50 or even 500. When I saw the plans, I said \"Let us dispense with Options A and B. Don't waste time about it. Let us go to Option C. Let us just assume the worst that COVID-19 will bring\".
You can come out of the circuit breaker but in August, suppose something happens and we have to reimpose the circuit breaker. The mood will be down, Singaporeans will become despondent and that is the time when we say, \"Come together, have this National Parade even despite your fears, come out and celebrate\" – not come out literally, because you must stay at home; but come out in spirit and celebrate.
We have had two months off circuit breaker. The psychological effects are there. Some people actually like it; they find working from home more productive and they found a sweet spot. For others, there is actually fear, fear to come out, fear to join others. So, when I read notes that say why do we not be prudent, I completely agree with them. But I want to make sure that this is not despondency or fear.
If Members of Parliament, judging by the conditions, want to organise events near 9 August for your constituencies and you want us to facilitate with more bags, let me know, and if we can, we will produce more. I promise you this. Because for many heartlanders, these are physical touch points, commonalities, that when they wave the flag, it is the same flag, when they have tattoos, it is a physical token for them to latch on to. Never dismiss these symbols even though the cost is little.
So, I make this pledge to you. If you hand in your request and you know there are groups that will want it, whether it is various groups, please let MINDEF know and we will try to facilitate for more.
\tMr Deputy Speaker: Mr Leon Perera.
\tMr Leon Perera (Non-Constituency Member): I thank the hon Minister for his detailed explanation. I am sure we can all agree that it is important for the country to rally together to have a keynote that underlines our unity during this difficult time.
I just have two supplementary questions.
Firstly, when this funpack was announced, I did sense that many Singaporeans felt that at a time when public finances are stretched, and many citizens and micro businesses are facing a lot of difficulty and uncertainty, perhaps the resources to give a pack to every household could be diverted to those who are more in need at this particular time. The Minister has explained the plan with the funpack. But my question is, really, for something like a funpack to serve the purpose that it is intended for, consultation and buy-in from the public may be useful to understand whether most people would really want to have this and whether it would serve that purpose of banishing the despondency, raising the spirits, rallying and unifying everyone. So, learning from this experience, I wonder whether there could be a bigger role for consultation in future before a very large or elaborate logistical exercise, such as distributing packs for everyone, is undertaken. That would be my first question.
My second question is, I understand that REACH set up an online poll to solicit views of Singaporeans about the funpack. I was wondering how long this poll was up for and what the results of this poll showed, if that is available.
\tDr Ng Eng Hen: Mr Deputy Speaker, I am glad that the Non-Constituency Member of Parliament (NCMP) has agreed with me that this is an important time for us to rally together. I agree fully with him that we need to engage groups to see what for them represents a good way to celebrate our National Day Parade. But as I said in my primary answer, while the Exco needs to be open, forward-leaning, consultative, there is a balance. If every group with their individual preferences decide to use the National Day Parade to press for their differences, then I think the Exco has a very difficult task. Because it will never be able to satisfy all groups, it will never be able to be all things to all men. It will have to balance, as we do every year. In previous years, when they, even ourselves, who are conscious about climate change, want to reduce and they press for disposable water bottles, the Exco had to balance the need for elderly and children who need bottled water. The disposable water bottles are actually recyclable the Exco even looked at giving reusable water bottles, then putting water stands, whether it is at the Floating platform or the stadium or Padang, but they found it was undoable. So, they did the next best thing; instead of two small bottles, they gave one big bottle, which will reduce the amount of plastic, I presume.
It is always these choices to make between different interests. But the more important point is this: for this balance to be struck, how does each individual group want to press for its own interests? We have gone past race, religion and language, I hope – I am talking about the NDP show. But at every NDP show. I am still very careful that there must be proper representation, that even when we carry soft stories that we should represent all of Singapore. But if any interest group decides to say, \"My interests are not shown. What you represent as Singapore does not show my narrower sets of preferences or who I am.\" If they choose to assert those differences during National Day Parade, it is what it is, it is what it will become, but it will shrink our common space.
I do not know the details of the REACH survey. If Mr Perera wants to know that, he can put it to that Ministry and I am sure that Ministry will give him a full reply.
\tMr Deputy Speaker: Mr Louis Ng.
\tMr Louis Ng Kok Kwang (Nee Soon): Thank you, Sir. Let me first thank the Minister for reducing the number of items in the funpack and reaching out to the green groups and listening as well. But could I ask two clarifications?
One, I do understand we are producing 80% of funpacks for the Singapore households. So, there is already a reduction but that is based, as Minister said, on estimations and based on past experience. Would it not be better to just ask Singaporeans whether they want to opt out of receiving the funpack, so that we can get a more accurate figure that will reduce the wastage?
The second clarification is what Member Cheng Li Hui asked previously, what will we be doing with the excess funpacks that are not collected?
Third, let me record my appreciation of thanks to the NDP Exco 2020. I worked with them for the last six months. As what NCMP Leon Perera has asked, we actually have been on the ground for the last six months getting feedback from the green groups and working together with them. In fact, this morning, we had another Zoom call with them to explain why we had a funpack, why we had certain items in there, and it was a very positive conversation that we had. I want to thank the NDP Exco for the forward-thinking, for really listening. It has been a privilege working with the Chairman, Brigadier-General Frederick Choo. In fact, I would suggest that the Minister make him NDP Exco Chairman in 2021 since he did not get to organise a full NDP this year, and he really has done an amazing job trying to find the middle ground and making very difficult decisions.
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\tDr Ng Eng Hen: Let me thank Member Louis Ng for those kind comments. I had known that he had been involved and helped us for the last six months. But I chose not to cite his help in the reply to Mr Leon Perera because, it is better that Mr Ng himself said it. Otherwise, they will say, you know, whatever they will say. I thank Mr Ng for the suggestion that General Choo should be considered to be NDP 2021, in Hokkien, we say, \"Ho Gai Siao\" or a good recommendation. I am not sure if he would want it, but nonetheless, we will think about it.
Member Mr Ng's point was more substantial. Why not have, before each NDP, a full public consultation as I think was the point that Mr Perera made. Just for practical purposes – Members of this House lead organisations, you are in businesses or in your organisations, you should know – there is a limit beyond which analysis becomes paralysis. You want to have feedback but you have to ultimately make a decision. Because why just a funpack? I cite this but I am not suggesting you make this an issue, but in terms of carbon production, my fighter planes probably produce more. While we \"rah rah\" to the zoom of fighter aircraft, jet fuel is being burnt up there.
Why focus just on the funpack? It could be many other things.
So, I think there is a limit to consultation. We will be forward-leaning, we will take in views, but there is a balance to be struck.
There is a time for every activity, a season for everything under the heavens. That is the ecclesiastical injunction.
What is this year a time for? Twenty-twenty. What is this year a time for? We have been divided like never before by a little organism, barely 0.125 microns. Relatives have been separated, grandparents from their grandchildren, couples, even spouses. For the healthcare workers, some were so fearful. They were not fearful about going to work but they were so fearful that they would pass on their infections if they got infected to their families, that they chose to stay away from their families, and the hospitals facilitated and found hotel rooms for them to stay alone.
Never a time have we been so physically divided. Never a time have we been so psychologically affected. And I say this to you not to frighten you, but the months ahead will be harder. This is not a time to show up our divisions. It does not mean we do not ask for feedback. But this is maybe a time, in gentle tones, to put aside some of our differences and come together.
\tMr Deputy Speaker: Mr Louis Ng, you have some more clarifications?
\tMr Louis Ng Kok Kwang: Sorry, Sir, there really is just a remaining concern which is what will we do with the excess packs? I think I understand we might be donating them or giving them to some other groups. But many are asking what are we doing with the excess funpacks that are not collected.
\tDr Ng Eng Hen: I do not know that there will be excess packs. As I said, the mood may change. Let us all hope, maybe come August – given the wonderful job that my colleagues at the Multi-Ministry Task Force have done and Singaporeans taking necessary precautions – that actually come August, there will be a mood to come out of this and people want these packs because they want to join in the celebrations.
But if they are excess bags, 80% is less than what we have usually produced – there will be no shortage of avenues to distribute to, say, to certain homes or institutions, so they would not be wasted.
\tMr Deputy Speaker: Mr Gan Thiam Poh, next question.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Profile of People who Downloaded TraceTogether App","subTitle":null,"sectionType":"OA","content":"The following question stood in the name of Mr Gan Thiam Poh –
4 To ask the Prime Minister (a) what is the total number of people who have downloaded the TraceTogether app; (b) what is the percentage of each gender for those who have downloaded the app; (c) what are the age groups; and (d) whether the Government will consider further incentives and measures to encourage more subscriptions including from those who are not technically savvy or inclined.
5 Mr Vikram Nair asked the Prime Minister whether the download and activation of the TraceTogether app should be made mandatory for everyone in Singapore who possesses a mobile phone.
\tMiss Cheryl Chan Wei Ling (Fengshan): Question No 4, please.
\tThe Minister for Foreign Affairs (Dr Vivian Balakrishnan) (for the Prime Minister): Let me recap for Members what TraceTogether does. TraceTogether is basically a contact tracing app which uses your phone's Bluetooth function to detect other phones nearby. It keeps a record of other TraceTogether users whom you happen to be in close contact with. It encrypts and stores this data on your own handphone. If, in the unlikely event, you turn out to be positive or diagnosed with COVID-19, this data is then uploaded to MOH, and the contact tracing teams in MOH use this to quickly identify, isolate patients, quarantine people who may be at risk or have been infected by you and can transmit the disease onwards.
Today, TraceTogether has been downloaded on a voluntary basis by 1.5 million users. The number of downloads, particularly given that it is voluntary, is encouraging. Unfortunately, the app does not appear to work as well on iOS or Apple devices as the iOS operating system suspends Bluetooth scanning when the app is running in the background. We have had repeated discussions both at the technical and policy level with Apple, but we have not yet been able to find a satisfactory solution.
Because TraceTogether does not work equally well across all smart phones, we have decided, therefore, at this point in time, not to mandate the compulsory use of TraceTogether. Instead, we are developing and will soon roll out a portable wearable device that will achieve the same objective as TraceTogether, but will not depend on possession of a smart phone. If this portable device works, we may then distribute it to everyone in Singapore. I believe this will be more inclusive and it will ensure that all of us will be protected.
Notwithstanding the limitations of coverage today, the data from TraceTogether has already been a very helpful additional tool for our contact tracers, especially when it is used in combination with other data sources. In some cases, it has improved the contact tracing process by automatically generating a preliminary list of close contacts for quarantine, and thereby it reduces the time taken to isolate these contacts and prevents them from spreading the disease more extensively.
I would like to emphasise that contact tracing remains a professional skill that is ultimately dependent on human judgement. Technology is an enabler; it is not a replacement for human judgement.
We thank those who have voluntarily downloaded the app to date and we urge more to download the app. We have also just upgraded the app to register the NRIC or FIN of the user, in addition to the user's mobile number, so that we can more quickly establish the link between the identity of the confirmed cases and their close contacts.
To Mr Gan Thiam Poh's question, we do not, at this point in time, have the breakdown of the downloads by gender or age, because such data is not currently collected by the app.
Yesterday, we issued a written response to Mr Murali Pillai who had asked about the confidentiality of the data, and I think it is worth me reiterating that again, that the data is stored only on your own phone in the first instance and accessed by MOH only if the individual tests positive for COVID-19. This data is only used for contact tracing. There are safeguards, including encryption, in place to protect this from malicious hackers. The data that is older than 25 days will be automatically deleted from your phone. If the close contact data is required for contact tracing, only a small group of authorised officers in MOH will have access to it. All the public sector data protection rules will also apply.
I need to emphasise again that quick and accurate contact tracing is a necessity. In fact, it has become all the more essential now that we are emerging from the circuit breaker. Because if you think about it, if everyone is at home, in fact, the need for contact tracing is minimal. But now that we have more people moving about, going to work, there will be more occasions when more people will have more close interactions with each other. Therefore, the collection and use of this data for contact tracing becomes even more essential. It will speed up the isolation of close contacts and reduce the risk of them spreading COVID-19 to their loved ones, family members, friends, colleagues and the community at large.
If we can reduce the incidence of clusters by better and faster contact tracing, then we can avoid having to re-introduce restrictive circuit breaker measures in the future. So, I hope all members of the public will work with us to achieve this.
\tMr Deputy Speaker: Minister, can I take it that you are answering Question Nos 4 and 5?
\tDr Vivian Balakrishnan: Yes, with your consent, please.
\t
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Coordinated Efforts to Connect Graduates with Enterprises for Employment Opportunities","subTitle":null,"sectionType":"OA","content":"The following question stood in the name of Miss Cheng Li Hui –
6 To ask the Minister for Education (a) whether there are coordinated efforts between the career centres of Institutes of Higher Learnings and agencies such as Enterprise Singapore to connect graduates with enterprises to provide employment opportunities; (b) how can graduates be further supported in their endeavour to secure employment and also further their academic pursuits and retraining to better equip them for the post-COVID economy; and (c) how can internship opportunities play a role for graduates during this challenging period.
\tThe Minister for Education (Mr Ong Ye Kung): Fresh graduates are entering the job market at an exceptional time. Many will face challenges in securing a job. The Institutes of Higher Learning or IHLs, together with various Government agencies, will provide whatever support we can to all graduates entering the workforce.
First, they will give graduates peace of mind during their job search, so MOE has suspended the repayment and interest for all study loans, for one year.
Second, the IHLs, namely the Autonomous Universities, Polytechnics and ITE – each have a significant network of companies and employers. They have been leveraging them to provide internships and Work-Study programmes.
Employers in general are facing difficulties due to COVID-19. But many are still prepared to hire and others who do not have job vacancies may be prepared to offer traineeships. IHLs are committed to trying their best to help our graduating students. They will contribute to the pool of about 100,000 opportunities under the SGUnited Jobs and Skills Package that the National Jobs Council is overseeing and building up.
To ensure that graduates have access to these jobs and opportunities, the IHL Career Centres will continue to provide career guidance and assistance, labour market information and organise career fairs. The Career Centres have stepped up the intensity of their efforts this year, including using online outreach and counselling tools to support graduates remotely.
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For graduates who decide to delay their entry into the job market, the IHLs will support them to learn new skills and knowledge. IHLs will offer their graduates a few Continuing Education and Training (CET) modules free of charge and we are in the process of speaking to the IHLs, structuring all these modules into a continuous programme and with credentials at the end of it. In that way, graduates can take up this programme and delay their entry into the labour market while doing something very meaningful. Graduates can also enrol for further studies, including Advance Diplomas, Specialist Diplomas and graduate certification programmes.
The Member also asked about internships. This has become a challenge as many internships have been disrupted due to COVID-19 and our circuit breaker measures to curb community spread. IHLs are working hard to identify alternatives so as to mitigate any impact on learning outcomes and graduation timings. If rescheduling the internship is not possible, IHLs will offer substitutes, such as working on industry-related projects and taking additional modules.
COVID-19 will be a defining moment in our graduates’ lives, especially this batch of graduates. I urge our graduates to rise to the occasion and use this crisis to bring out the best of their generation. The Government will support them as closely as possible as they enter the next phase of their life’s journey.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Government's Procurement of Goods and Services during COVID-19 Pandemic","subTitle":null,"sectionType":"OA","content":"7 Assoc Prof Walter Theseira asked the Deputy Prime Minister and Minister for Finance (a) what has been the framework for Government's procurement of goods and services to address the COVID-19 pandemic; (b) what proportion of such contracts, by dollar value, have been issued through the standard Government procurement system on GeBIZ; (c) what are the considerations when issuing contracts otherwise; and (d) what steps are taken to ensure that all enterprises can participate in such procurement opportunities so as to ensure provision at competitive prices and quality.
\tThe Second Minister for Finance (Ms Indranee Rajah) (for the Deputy Prime Minister and Minister for Finance): Mr Deputy Speaker, the Government procurement framework calls for open sourcing through the GeBIZ platform as the default approach. However, the use of limited tenders or direct contracting is permitted under specific conditions, such as to protect public health, or for reasons of national security. These practices are aligned with international standards laid out in the World Trade Organisation’s Agreement on Government Procurement.
To address the rapidly evolving COVID-19 situation and avoid further worsening of the public health situation, Government agencies had to obtain necessary goods and services as quickly as possible. While the default approach continues to be open sourcing via GeBIZ, the urgency meant that, in some cases, it was not practical to do so. For such instances, the procedures under Emergency Procurement allow Government agencies to directly contract with suppliers who have the necessary expertise and resources, instead of going through open sourcing. For example, as we needed to quickly source for and fit out premises to house at-risk persons, and also secure essential medical supplies, the agencies concerned established direct contracts with the suppliers outside GeBIZ who were best able to meet the requirements within the shortest timeframe possible.
Similar Emergency Procurement practices are also adopted in other jurisdictions. For example, in Australia, the European Union, New Zealand, the United Kingdom and the United States, government agencies may directly award a contract without the need for open competition under emergency situations, such as the COVID-19 crisis.
The proportion of COVID-19 related procurement by dollar value through GeBIZ as compared with other modes is not yet available, as such procurement is still on-going. Agencies will continue to use the most appropriate approach that best balances urgency of need and value-for-money in our efforts to protect public health and cater for the social and economic needs of Singaporeans and businesses. As the situation improves and there is less time urgency, a larger proportion of procurement will be carried out through the default process of open sourcing via GeBIZ.
Regardless of the procurement approach taken, Government agencies are required to ensure proper evaluation is done and necessary approvals are sought. In the event that direct contracting is used, Government agencies are still expected to assess that the quotes from the suppliers are reasonable, by comparing against prevailing market benchmarks and taking into account the time constraints and world-wide market situation. As with all procurements, transactions done during this period are subject to audit and compliance reviews by relevant authorities.
\tAssoc Prof Walter Theseira (Nominated Member): Mr Deputy Speaker, I thank the Second Minister for the reply. I think we all know, one advantage of having procurement in GeBIZ is that it is automatically transparent. And this is very important to parties in the market because they can get some information about what is available and what market prices might even be and so on. Will the Government be able to commit to publishing at least some summary information of what has been done and what has been issued for Government procurement relating to COVID-19 needs some time soon so that players in the market can update themselves and understand better how they can best respond and provide more competitive services and goods to the Government in this crisis?
\tMs Indranee Rajah: I thank the Member for his clarification. The truth of the matter is that if we all knew exactly when the virus decides to stop and when COVID-19 will stop, then we will be able to give a specific timeline on all the things we wish to do. But as we know, there is a possibility of second outbreaks, there is a possibility that it may not go the course we wish, in which event, Emergency Procurement will have to continue to take place.
So, the assurance that I can give is that best practices will be followed. As I have said earlier, we will make sure that the agencies still take proper evaluations and that they seek the necessary approvals, that they compare against the prevailing market benchmarks. And it is important to remember that all this is still subject to audit and compliance reviews. So, the framework for disclosure that we have in place will be complied with in due course. But if the question is whether we can do this very soon, the answer is I am afraid that the nature of this virus and the situation are such that it is not possible to say definitively one way or another.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Rules on Loans Extended by Temasek Holdings, GIC or Their Subsidiaries to Large Corporations","subTitle":null,"sectionType":"OA","content":"8 Mr Leon Perera asked the Deputy Prime Minister and Minister for Finance (a) whether the Government is involved in, or prescribes any rules for, loans being given by Temasek Holdings, GIC or their subsidiary companies to large corporations or other kinds of entities; (b) if so, how much of these loans are made to companies which Temasek Holdings or GIC has existing investments in compared to other entities which they do not have existing investments in; and (c) whether the President's concurrence is required for the extension of loans by GIC or Temasek Holdings that are above a certain proportion of their total assets.
\tThe Second Minister for Finance (Ms Indranee Rajah) (for the Deputy Prime Minister and Minister for Finance): GIC and Temasek invest using a variety of instruments, including equity and debt. There is a range of debt instruments, including bonds and loans, with different structures, such as a mezzanine or preferred instrument, depending on the capital structure of the investee company.
GIC and Temasek can and do provide loans, where the loans are provided in the investment context. However, they do not provide the same loans as banks or finance companies do, that is to say, they do not provide mortgage loans or working capital loans which banks provide.
The Government does not direct GIC’s and Temasek’s individual investment decisions, including decisions as to whether, when or in whom to invest in a loan. The President’s concurrence is not needed for investment decisions by GIC or Temasek. Instead, the Government holds the Boards of GIC and Temasek accountable for their overall performance. The Government ensures that GIC and Temasek have competent Boards, and such appointments are subject to the President’s concurrence.
\tMr Deputy Speaker: Mr Leon Perera.
\tMr Leon Perera (Non-Constituency Member): Mr Deputy Speaker, I have just one supplementary question. This question is in the context of our sovereign wealth funds when they provide a rescue package, be it through loans or other instruments, to help to support the viability of some companies but not others. That sometimes creates a question among some members of the public and they ask how are these decisions made that certain companies obtain this kind of support and other companies do not.
So, as a general principle, given that these are public funds, is there any way that the public can have some transparency about the thinking behind these probably quite significant decisions which may continue to happen as this crisis winds its way forward?
\tMs Indranee Rajah: I thank the Member for his question. The way the Member has phrased the question, which is when they provide a rescue package to support viability, that is a wrong assumption. The parameters are, as I have laid out before, GIC and Temasek primarily invest, and they invest our Reserves, and their mandate is to act within their investment policies to get the returns that they can, that we are then able to use in various ways, as we have seen.
So, they operate in the context of investment. They do not do business the way banks do, or other kinds of entities who may look to do rescuing just in the context of rescuing. As I have explained before, they do it in the investment context, and that is very well known. The framework within which they operate is well known. The commercial principles – and these are all commercial decisions – these are decisions that are taken by their professionals which are employed by GIC and Temasek. So, there is actually no difference with what they actually do, or loans made in the investment context.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Procurement Arrangements for Construction of Government Quarantine Facilities, Community Recovery Facilities and Community Care Facilities","subTitle":null,"sectionType":"OA","content":"9 Mr Pritam Singh asked the Minister for National Development (a) whether a tender was waived for the construction of all Government Quarantine Facilities (GQF), Community Recovery Facilities (CRF) and Community Care Facilities (CCF); (b) if so, whether this was due to time constraint or other reasons; (c) whether all such construction works were planned to be cost recovery or below cost engagements; (d) what price reasonableness test was applied; (e) whether attempts were made to explore whether other event and exhibition construction firms were able and keen to undertake the engagement; and (f) whether further requisitions of GQFs, CRFs and CCFs are necessary and whether the engagements will be done on a cost recovery or below cost basis.
\tThe Minister for National Development (Mr Lawrence Wong): Mr Deputy Speaker, the Government has responded swiftly to put in place a range of facilities to respond to the COVID-19 pandemic. For Government Quarantine Facilities (GQFs) as well as dedicated facilities for Stay-Home Notice (SHN) requirements, we have made use of the capacity in existing Government chalets and hotels. In the case of hotels, we benchmarked the quotes provided by the hotel operators and negotiated for competitive rates, taking into account the prevailing market conditions.
For Community Care Facilities (CCFs) and Community Recovery Facilities (CRFs), apart from using ready live-in accommodation like army camps and students’ residences, we also had to prepare new facilities in a very short time. We, therefore, moved quickly to fit out the Changi Exhibition Centre, the Singapore Expo, Big Box, the former ITE site at Ang Mo Kio, vacant factories and Tanjong Pagar terminal with beds and partitions and, in some cases, tentages, to quickly house the patients. And we now know from experience that I think we did all these not a moment too soon because we were able to get the capacity in place to look after quite a large number of infected patients without overwhelming our healthcare system.
The contracting of hotels and the construction of fit-out works were undertaken under Emergency Procurement, as my colleague Second Minister Indranee has highlighted earlier. This is provided for under the Government Procurement Rules, where urgent purchases have to be made in a pandemic outbreak and there is insufficient time to follow the normal procurement rules. The Emergency Procurement procedure allows for tenders to be waived and for contracts to be directly awarded to vendors with the necessary experience, expertise and resources to get the job done within a short period of time.
Notwithstanding the waiver of tender under such Emergency Procurement, all the agencies recognise the need for accountability in the use of public funds. All decisions for the setting up of CCFs and CRFs are, therefore, approved by the Multi Ministry Taskforce. The agencies will ensure that the quotes from the commercial partners are reasonable by comparing against market benchmarks, they will scrutinise the invoices and ensure that the works meet the standards required by the Government before processing the payments. In some cases, we have been able to get private sector companies to support the projects on a cost-recovery basis as part of their contributions to the community.
The Government will continue to partner different stakeholders, including private sector companies, to ensure an effective whole-of-society response to COVID-19, while maintaining a prudent and disciplined approach in the use of public funds.
\t
\tMr Deputy Speaker: Mr Pritam Singh.
\tMr Pritam Singh (Aljunied): I thank the Minister for his reply and also the reply from Second Minister for Finance earlier on to Assoc Prof Walter Theseira's question. They were quite helpful for members of the public to understand what emergency procurement is about, including the answer given by the Second Minister for Finance on audit, which explained that it is not as if audit has been done away with.
My question is on non-emergency procurement, going forward, with regard to perhaps quarantine facilities, stay-at-home facilities, whether the Task Force – as alluded to by the Second Minister for Finance – is considering more open tender processes, so Singaporean companies, other companies can participate, in light of the economic situation.
\tMr Lawrence Wong: Mr Deputy Speaker, as I had explained earlier, we had to rely on emergency procurement given the nature of the pandemic, given the time urgency that we were at and the need to activate our facilities very quickly.
Certainly, looking forward, if the situation were to stabilise and the conditions permit, agencies will consider going beyond emergency procurement to get more quotes or even to go through contracting via GeBIZ. And this would apply not just for the setting up of facilities, but for a whole range of contracting requirements that the Task Force require. But I think first and foremost, let us focus on the mission and the mission is not over, the fight is still on. So, we will do whatever is necessary to get the job done and to deal with the virus.
\t
\tMr Deputy Speaker: Assoc Prof Walter Theseira.
\tAssoc Prof Walter Theseira (Nominated Member): Thank you, Mr Deputy Speaker. Just to follow up on the questions which have been raised. I think the public understands completely that during emergency procurement, there is a need to get these goods and services delivered quickly by trusted suppliers. But given that the emergency procurement rules or situation may continue for quite some time, what can the Government do to try to broaden the number of vendors out there who could be eligible for providing goods and services under the emergency procurement rules?
For example, will it be possible to take a bit of time for the agencies to look at the landscape, the firms out there and to review the list of companies on this emergency procurement list? I think that would be very important to not only give us a good price and quality of goods and services, but also to assure enterprises that they will be able to help out and participate, and also, help their bottom line out a bit.
\tMr Lawrence Wong: Mr Deputy Speaker. I thank the Member for the question which is related to what Mr Singh had asked earlier too. I would say that even under the scenario of emergency procurement today, agencies do not immediately go with one vendor. So, the various agencies that are looking at all sorts of contracting procurement requirements do already today engage a few vendors – whether it is for are M&E works, whether it is for consultancy services and then they get the quotes. Even though it is not required under emergency procurement, they could have gone directly. They have already done that. They check the different quotations and then they go with a supplier. So, a range of different suppliers are already being used under today's scenario and that situation will continue.
\tMr Deputy Speaker: Assoc Prof Walter, next question.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Benefits to Wildlife from Reduction in Frequency of Green Verge Maintenance along Public Roads and Paths during COVID-19 Circuit Breaker","subTitle":null,"sectionType":"OA","content":"10 Assoc Prof Walter Theseira asked the Minister for National Development (a) whether there have been any benefits to the environment and wildlife from reducing the frequency of green verge maintenance along public roads and paths during the COVID-19 circuit breaker period; and (b) whether reduced maintenance frequencies can be permanently implemented to save public expenditure, reduce foreign manpower needs and to improve biodiversity.
\tThe Senior Parliamentary Secretary to the Minister for National Development (Ms Sun Xueling) (for the Minister for National Development): Mr Deputy Speaker, even before the circuit breaker period, NParks has been implementing naturalistic planting along some green verges along public roads and paths. These Nature Ways use multi-tiered planting of native trees, shrubs and ground cover to replicate the natural structures of forests. They make paths cooler and more comfortable for users, and facilitate the movement of birds and butterflies between green spaces. These measures have benefited the environment and biodiversity, and reduced the frequency of greenery maintenance needed. NParks will continue to identify more sites to be curated and managed as naturalistic landscapes, and implement more Nature Ways.
But even in such settings, there will still be a need for regular maintenance, especially for public health and safety reasons. For example, tall grass may conceal discarded litter, making dengue control operations more difficult. They also pose a fire risk during prolonged periods of dry weather. Hence, NParks will gradually scale up maintenance along green verges as the circuit reaker measures are eased.
NParks will also continue to encourage productivity in the greenery maintenance sector. Such work is increasingly being mechanised and innovative technologies are being applied to reduce the need for manual labour.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Number of Business Closures and Formations since Start of Circuit Breaker","subTitle":null,"sectionType":"OA","content":"11 Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) what is the total number of business closures and formations since the start of the circuit breaker period; (b) what is the sectoral breakdown of those most affected to the least affected; (c) what is the Ministry's outlook on the business cessation trend and sectoral implications for the remainder of 2020 even as the global and domestic economies gradually open up.
\tThe Senior Minister of State for Trade and Industry (Mr Chee Hong Tat) (for the Minister for Trade and Industry): Mr Deputy Speaker, Sir, in April 2020, around 3,800 business entities were formed. Due to the COVID-19 pandemic, this was almost a third lower than the average of 5,500 recorded over the same period between 2015 and 2019. Most sectors saw a fall in the formation of new business entities during this period.
The cessation of business entities numbered around 3,800 in April, which was comparable to the average of 3,700 recorded over the same month in the past five years.
For the rest of 2020, the COVID-19 pandemic is expected to have a severe impact on many sectors of our economy. Outward-oriented sectors such as wholesale trade will be adversely affected by the global economic slowdown, while the air transport and tourism sectors will continue to be badly affected by travel restrictions. Sectors such as retail and food services will also be adversely impacted by reduced demand from tourists and local consumers. On the other hand, there are sectors which continue to grow, such as biomedical manufacturing and the information and communications sector.
Against this backdrop, MTI expects the formation of new business entities to remain subdued, while cessation numbers could see an uptick in the coming months.
Sir, it is not possible to avoid firm closure and retrenchments. These happened even before COVID-19, but with COVID-19, we must expect the situation to worsen and these numbers to go up. We will help every worker. Senior Minister Tharman Shanmugaratnam is chairing the National Jobs Council. The council aims to support close to 100,000 jobseekers through the SGUnited Jobs and Skills Package. This includes initiatives to expand job opportunities in both the public and private sectors, provide a range of traineeships for jobseekers to gain industry-relevant experience and build professional networks, as well as increase training capacity to enable jobseekers to upgrade their skills.
This is a very challenging task. There is no certainty that we will succeed in creating all the jobs and opportunities in adifficult economic environment. But we will do our best. We will rally together. We will bring on board all tripartite partners. We will support one another and spare no effort to achieve our goals. And we will overcome this crisis as one united Team Singapore.
\tMr Saktiandi Supaat (Bishan-Toa Payoh): I would like to thank Senior Minister of State Chee for the detailed answer. I just have one supplementary question. In relation to his answer, with MTI and EDB's announcement that from January to April, there is an investment commitment of about $13 billion coming to Singapore. In terms of job creation, going forward, and also those investment commitments beyond April to end of 2020 and possibly early first half of 2021, can Senior Minister of State share a bit more about whether the trajectory of investment commitments will continue to be positive and in which sectors in particular, going forward?
\tMr Chee Hong Tat: Sir, I thank Mr Saktiandi for his supplementary question. Minister Chan Chun Sing shared earlier this week that the investment commitments that EDB has managed to attract amounted to $13 billion and this will create thousands of jobs. We are heartened that investors continue to have confidence in Singapore and that is very important because we do need to create jobs from a range of different sources – public sector, but also private sector.
As to how well we can continue to attract investments, I think a key factor is how well we respond to this crisis as a country. If we can demonstrate resilience, fortitude, we can show unity, we are able to overcome this crisis together as one united Team Singapore, we are able to rally our tripartite partners to work closely together, I think we can inspire confidence and we can attract investments. We can demonstrate that Singapore has the capabilities and the resilience to overcome this crisis. That is very important – how we respond to this crisis together.
We continue to have to remain as an attractive business hub because it is not just about retaining our current capabilities and companies but also attracting new ones. I shared earlier in my main reply that there will be some sectors that will show a decline and some sectors will show growth. How we navigate in this new COVID-19 environment, how we are able to adapt, how quickly and how flexible we can be to adjust to attract new growth sectors – agri-tech, biomedical, e-commerce, financial sector, infocomm and technology – those are the areas which we have to work together to be able to grow the pie so that there is more to go around; better jobs, more jobs, more opportunities.
\tMr Deputy Speaker: Next, question. Mr Seah Kian Peng.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Industries that Businesses and Workforce should Pivot to Post-COVID-19","subTitle":null,"sectionType":"OA","content":"The following question stood in the name of Mr Seah Kian Peng –
12 To ask the Minister for Trade and Industry what is the assessment of industries in the post-COVID-19 era, specifically which are those that the business community and workforce should pivot to and position themselves going forward.
\tMs Tin Pei Ling (MacPherson): Question No 12, please.
The Senior Minister of State for Trade and Industry (Mr Chee Hong Tat) (for the Minister for Trade and Industry): Mr Deputy Speaker, COVID-19 is an unprecedented crisis with impact extending far beyond that of public health. It will change the global economy and social norms in far more significant ways than past crises. We will likely remain in a COVID-19 environment for some time; and even when the pandemic recedes, life would not return to what it used to be.
Trade flows will be affected by the reconfiguration of supply chains. Some countries will respond by home-shoring certain production, while others will strengthen their inter-dependence with other economies and diversify their supply chains. How people travel will also change in ways more significant than after 9/11. Companies will need to transform their business models and operations. Manufacturers will have to redesign their \"just-in-time\" production to balance between achieving efficiency and resilience. The pace of digitalisation will accelerate and play a more fundamental role in the way we work, live and play.
As a small and open economy, Singapore’s response cannot be to turn inward. We need to find our new relevance to the world. Even as we cope with the immediate challenges, there will be new opportunities where we can seize, we can leverage on our strengths and we can ride on the key shifts brought about by the pandemic. While some of these developments are still playing out, and there is still some uncertainty in terms of how the new landscape will look like, there are a few areas our businesses and workers should start to re-position ourselves for.
First, changing consumption preferences, coupled with a rising middle class in Asia, will drive new demand. While the pandemic is still evolving, some changes, including those that started even before COVID-19, have become evident, such as a renewed emphasis on health and an increased focus on sustainability. If this continues, it will benefit industries such as healthcare, online retail and financial services – just to name a few. We will have the opportunity to enhance our value proposition in these areas to capture the growth in demand.
As Asia continues to grow, we must also work together with our neighbours to capture new opportunities. For example, in the agri-food industry, we are building up our local food production capabilities and also working with neighbouring countries such as Brunei, to grow this as an exportable sector that can strengthen food security and create good jobs for our peoples.
Second, global supply chains will be reconfigured as businesses seek to balance efficiency and resilience. This started before COVID-19, and we can expect the pace to accelerate. As companies shift their production lines, our manufacturing and logistics industries should position themselves to serve new demand and participate in new supply chains that are formed. We must continue to compete on our strengths such as trust, quality and connectivity. These have become even more important to investors and customers in the new environment. This is where our biomedical and precision engineering industries can play to our advantage by leveraging sophisticated technologies and the trust and quality that have been associated with Singapore. Our trusted brand name is an asset in this environment. If we can move fast to capture the opportunities created by these shifts, Singapore will be in a stronger position when recovery comes.
Third, the digital economy will take on greater salience than before and we must be prepared to seize the opportunities it brings. The pandemic has compelled businesses in all industries to turn to technology-enabled platforms for safe operations and business continuity. Besides shoring up a strong demand for digital solutions in the ICT sector, the quickened pace of technology adoption across industries has also transformed business models – especially for traditionally brick-and-mortar industries such as retail and food services – and it has enabled these businesses to access wider markets and consumer segments than before. For essential services such as healthcare, the rise of tele-medicine also provides an opportunity for the industry to redefine service quality and access markets beyond Singapore. Businesses will need to pivot towards the digital economy, and the Government will continue to extend strong support to help our enterprises to transform their business models and to train our workers in new skills to prepare them for this digital economy.
Sir, as a country, Singapore has time and again reinvented ourselves to be relevant to the world. We can recover from this crisis and we will grow again. Global competition will be intense. The road ahead will not be easy, but we will walk this journey together.
The key is to remain united and support one another to transform ourselves to seize new opportunities. We need to strengthen Singapore’s attractiveness as a hub for business and investments and remain open to global trade and talent to benefit from Asia’s growth. How well we recover will depend on our adaptability as a country, as businesses and also as individuals.
We start from solid foundations – a trusted brand name and rule of law, a cohesive and hardworking people, a strong tripartite partnership and excellent connectivity with the rest of the world. With these strong fundamentals, I am confident that Singapore will survive the crisis and we can emerge stronger.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Data Usage Pattern since Start of COVID-19 and Adequacy of Digital Infrastructure","subTitle":null,"sectionType":"OA","content":"13 Ms Tin Pei Ling asked the Minister for Communications and Information (a) how have national data usage volume and pattern changed since the onset of COVID-19; (b) whether our digital infrastructure is currently adequate; (c) whether there are new plans to enhance our digital infrastructure post-COVID-19; and (d) how will the potential resultant increase in carbon emissions be mitigated.
The Senior Minister of State for Communications and Information (Dr Janil Puthucheary) (for the Minister for Communications and Information): Mr Deputy Speaker, the volume of data traffic remains within each operator’s network capacity, with a healthy buffer of at least 30%.
This is despite the fact that since the onset of COVID-19, our telecom operators have seen an increase in data usage volume due to telecommuting and home-based learning – as updated to this House by Minister S Iswaran last month. Singapore's digital infrastructure remains adequate for our needs.
Given the growing reliance on telecom services, we are also looking into measures to strengthen the security and resilience of our networks, and minimise the risk of outages. Therefore, MCI and IMDA are working with our telecom operators to enhance our telecom infrastructure. This includes further increasing network buffers to keep pace with future demands and investing early in 5G networks.
Today, telecom operators, as part of network and service resilience requirements, must provide adequate redundancy, back-ups and diversity arrangements within their networks. But outages still occur even with robust measures in place. IMDA takes a very serious view of such network disruptions and is investigating the causes of the outages by StarHub, M1 and MyRepublic. Where necessary, IMDA will take enforcement action against any operator found liable for causing an outage or failing to restore services quickly.
In addition, we are studying alternative means to enhance back-ups in our networks so that consumers can continue to have connectivity during outages; as well as how telecom operators can enhance their capabilities to quickly identify and rectify the causes of disruption. These will be essential to the overall resilience of our digital infrastructure, and quality of service rendered to customers.
We aim to enhance our digital infrastructure in a sustainable manner that takes into consideration the energy and carbon footprint generated. IMDA is working with EDB to ensure that data centre investments in Singapore are energy efficient. The Government remains committed to our goals under the Paris Agreement.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"COVID-19 Swab Tests for VWO Staff Looking after Elderly","subTitle":null,"sectionType":"OA","content":"14 Ms Joan Pereira asked the Minister for Health (a) whether the Ministry will consider doing a one-time COVID-19 swab test for VWO staff looking after our elderly; and (b) if so, whether it will be done in phases so as not to overstretch medical resources.
\tThe Senior Minister of State for Health (Dr Amy Khor Lean Suan) (for the Minister for Health): COVID-19 testing complements the existing precautionary measures in place for eldercare services, such as strict infection control, safe distancing and visitor restrictions. We have thus embarked on surveillance testing for staff of eldercare services to protect the seniors as they are more vulnerable to COVID-19 infection.
This surveillance testing in eldercare services will be conducted in phases. Given that seniors living in residential care homes are at higher risks, we prioritised and completed swab tests for about 10,500 staff of residential care homes in May 2020. Test results for staff were all negative save for one staff member from Ren Ci Nursing Home @ Ang Mo Kio, which we have announced earlier. In June 2020, we will progressively test staff of other eldercare services in operation, including those working at day care centres. These initial sweeps will help guide our approach for future testing.
\tMr Deputy Speaker: Ms Joan Pereira.
\tMs Joan Pereira (Tanjong Pagar): I thank the Senior Minister of State. I have one supplementary question. As we reopen our SACs in due time, I would like to ask MOH if it would provide training and training resources to all our VWOs to help them train their staff, provide them with the necessary resources so that they can observe good and better hygiene habits as we really need to protect our elderly and the staff looking after them, especially when the SACs open.
\tDr Amy Khor Lean Suan: I thank the Member for her question. Indeed, the SACs may resume on-site activities gradually in Phase One. Before resuming on-site activities, SACs are required to undergo a readiness assessment and propose plans on infection prevention and control, and safe distancing measures. The Agency for Integrated Care (AIC) will also conduct spot checks to ensure that these measures are implemented. Prior to this, AIC has also conducted several webinars to inform providers of the necessary infection prevention and control measures and provided them with resource kits.
As at 5 June, 27 SACs have opened.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Visitation Rights for Residents in Nursing Homes After 1 June","subTitle":null,"sectionType":"OA","content":"15 Miss Cheryl Chan Wei Ling asked the Minister for Health after the lifting of the circuit breaker on 1 June (a) what measures will remain for visitation of residents living in nursing homes; (b) whether swab tests will be conducted for seniors and staff in day care centres; and (c) which phase will senior activity centres be classified under for resumption of their operations.
\tMr Deputy Speaker: Can Senior Minister of State answer within three minutes?
\tThe Senior Minister of State for Health (Dr Amy Khor Lean Suan) (for the Minister for Health): Seniors are more vulnerable to COVID-19 infection as they develop more severe symptoms if infected. We have thus taken a more cautious approach to the resumption of senior-centric activities when the circuit breaker ended.
In Phase One, on-site activities that can be done individually, like craftwork, reading and gardening, will gradually resume at Senior Activity Centres, with restrictions on the activity duration and the total number of persons per session. Given that nursing home residents are generally more frail, face-to-face visits will continue to be suspended to keep the risk of infection low. Nursing homes will continue to facilitate interactions between seniors and their loved ones via phone and video calls. Nursing homes can also allow face-to-face visits in exceptional circumstances, such as when the patient is critically ill. We will progressively resume more activities across different settings when the situation improves.
We conduct surveillance testing for the eldercare sector, to complement existing precautionary measures such as safe distancing, visitor restrictions and infection control. We prioritised swab tests for staff and clients at residential care homes in May and in June, we will progressively test staff of other eldercare services in operation, including those working at day-care centres.
\tMr Deputy Speaker: Order. End of Question time.
[Pursuant to Standing Order No 22(3), Written Answers to Question Nos 16-28 on the Order Paper are reproduced in the Appendix.]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"COVID-19 (Temporary Measures) (Amendment) Bill","subTitle":null,"sectionType":"BI","content":"[(proc text) First Reading. (proc text)]
The Senior Minister of State for Law (Mr Edwin Tong Chun Fai) (for the Minister for Law): Mr Deputy Speaker, I have a Certificate of Urgency signed by the President in respect of the COVID-19 (Temporary Measures) (Amendment) Bill, to be laid upon the Table.
[(proc text) Certificate of Urgency signed by the President in respect of the Bill, laid upon the Table by the Senior Minister of State for Law. (proc text)]
Mr Deputy Speaker: The Certificate is in order. Senior Minister of State, please proceed.
Mr Edwin Tong Chun Fai: Mr Deputy Speaker, on behalf of the Minister for Law, I beg to to introduce a Bill intituled \"An Act to amend the COVID-19 (Temporary Measures) Act 2020.\"
[(proc text) Bill read the First time. (proc text)]
Mr Edwin Tong Chun Fai: Mr Deputy Speaker, copies of the Bill have been provided to the Clerk, who will distribute it to Members now. [Handouts were distributed to hon Members.]
Mr Deputy Speaker: Senior Minister of State, Mr Edwin Tong, second reading when?
Mr Edwin Tong Chun Fai: Today, Sir, after the conclusion of proceedings on the Second Supplementary Supply (FY 2020) Bill.
Mr Deputy Speaker: So be it. Order. Leader.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Proceedings on Supply Business and Rearrangement of Business","subTitle":"Business motion without notice","sectionType":"OS","content":"The Leader of the House (Ms Grace Fu Hai Yien): Mr Deputy Speaker, may I seek your consent and the general assent of Members present to move a Motion that the Debate on Deputy Prime Minister's Ministerial Statement be taken now.
This will allow the House to resume its Debate on the Ministerial Statement on the Government's plans in the continuing fight against COVID-19 given on 26 May and conclude on its consideration, before the House proceeds to vote on the sums contained in the Second Supplementary Estimates for FY20/21 and the Second Supplementary Supply Bill.
As Members are aware, the Second Supplementary Estimates and the Bill reflect the necessary funds required for the multi-Ministry plans and programmes outlined in the Ministerial Statement which are subject to Parliament's approval.
Mr Deputy Speaker: I give my consent. Does the Leader of the House have the general assent of Members present to so move?
[(proc text) Hon Members indicated assent. (proc text)]
[(proc text) With the consent of Mr Deputy Speaker and the general assent of Members present, question put, and agreed to. (proc text)]
[(proc text) Resolved, that, notwithstanding the Standing Orders, the proceedings on item 3 on the Order Paper for today be taken now. – [Ms Grace Fu Hai Yien]. (proc text)]
Mr Deputy Speaker: Order. The Clerk will now proceed to read the orders of the day.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Government's Plans in Our Continuing Fight Against COVID-19 Pandemic","subTitle":"Debate on Ministerial Statement","sectionType":"OS","content":"[(proc text) Order read for Resumption of Debate on Question [26 May 2020], (proc text)]
[(proc text) \"That the Ministerial Statement made by the Deputy Prime Minister and Minister for Finance on the Government's Plans in Our Continuing Fight Against COVID-19 Pandemic be considered by Parliament.\" – [Deputy Prime Minister and Minister for Finance.] (proc text)]
[(proc text) Question again proposed. (proc text)]
Mr Deputy Speaker: Mr Ang Wei Neng.
Mr Ang Wei Neng (Jurong): Mr Deputy Speaker, Sir, I rise in support of the Budget. In Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] Sir, COVID-19 has led to economic contraction all around the world and Singapore is no exception. If we do not have sufficient reserves, the $33 billion Fortitude Budget would not be possible. We have to thank the previous Governments for saving for a rainy day, progressively setting aside budget surpluses for our reserves. Because of this, we are able to come up with four Budgets totaling $93 billion to assist Singaporeans, save companies, save jobs and save lives.
The circuit breaker has just ended and every company hopes to resume operations as soon as possible. Every employer is eager for his or her employees to resume work. Every Singaporean hopes to resume their lifestyles like before, visiting their parents, shopping, and going to the park. Currently, there is no cure nor vaccine for COVID-19, so we cannot do away with the preventive measures. So then how can we deal with the new normal in the post-circuit breaker period? Will COVID-19 continue to spread in the community? What is the level of risk?
Perhaps, the testing of 39,000 pre-school staff can offer some clues. Currently, 14 pre-school staff have been diagnosed with COVID-19, which translates to an infection rate of 0.036%. Among the 14, 13 had contracted the virus previously and were no longer infectious at the point when they were confirmed as positive cases. In other words, these 13 pre-school staff were not aware that they had been infected prior to testing. Before they recovered, they could have passed the virus to others and spread it to the community while they were out and about. Fortunately, they had gone out less during the circuit breaker period and have minimised the risk of infecting others.
If we apply the testing and confirmed case numbers of the pre-school staff to the 2.4 million working citizens and Permanent Residents in Singapore, then the infection rate of 0.03% would mean that there may be 861 local residents who have been infected but are unaware about it. More importantly, among the 39,000 pre-school staff, one individual was infected recently. From the infection of pre-school staff, it is not difficult to understand why zero community infection could not be maintained in the past few weeks.
Moving forward, as we embark on the first phase of the post-circuit period, more people will leave home to work and the risk of community infection will definitely increase. I know that many SMEs would like to resume operations but I would urge everyone to be more patient.
On the other hand, our community infection rate has been relatively low. The death rate has also remained low. There are only five patients in ICU currently. Experts say that in the next one and a half years, it is not possible to eradicate COVID-19 totally from the community. Therefore, Singaporeans must remain vigilant, wash their hands frequently, wear a mask and maintain the one metre safe distance. Safe management measures at workplaces will become the new normal. If people are infected, they should be quarantined immediately, and proactive contact tracing must be conducted.
If people are able to accept this new normal and understand that COVID-19 will not disappear in a few months like SARS, I hope MTF will allow all industries to resume operations as soon as possible. This will boost consumption and save jobs. Otherwise, no matter how much support and grants are given, so long as companies cannot operate, there will still be retrenchments and insolvencies.
I believe that the Government will be flexible in this aspect. I am the advisor of the Renovation Contractors’ Associations. The Chairman of the Association, its key members and myself have held meetings with BCA several times to pave the way for resuming work. Many families’ renovation projects had to stop because of the circuit breaker measures, and they cannot wait for the project to start again. However, the requirements for resumption of renovation projects have been very stringent. Through several rounds of consultations, BCA has simplified the procedures and allowed several thousand renovation projects to resume on 2 June. I would like to thank BCA for their help.
COVID-19 has disrupted industries and sped up the pace of digital transformation. However, at markets and hawker centres, most stallholders accept cash only. After NETs was set up in 1985, Singapore soon became the leader for e-payments in Asia. However, after so many years, we have lagged behind other Asian countries in terms of e-payments. Therefore, I am happy to see the establishment of the Digital Transformation Office and that every hawker will be given a $300 monthly bonus for the next five years to encourage them to adopt cashless payments. There are also plans to recruit 1,000 digital ambassadors to help the elderly Singaporeans learn digital skills.
Last year, when organising the River Hongbao activities, we worked with NETS to encourage the food stallholders to adopt cashless payments. However, the results were lacklustre. When I visited markets, hawker centres and coffeeshops, I also received feedback on cashless payments from stallholders. Some were positive; some were negative. Therefore, I would like to make a few suggestions so that we can improve the e-payment adoption rate and the efficiency of digital ambassadors.
Some stallholders are worried about the cash flow problem, so they hope that they will be able to get the e-payments by customers several hours after the payments were made.
Stallholders currently pay cash to suppliers for materials. If this segment of the supply chain can be digitised, more stallholders may be encouraged to adopt e-payment.
There are currently 19 e-payment platforms in Singapore. I understand that the intention of the Monetary Authority of Singapore (MAS) is to allow different e-payment platforms to thrive. However, this may lead to confusion and it may distract customers. I suggest that IMDA focus on one or two platforms such as PayNow and NETS. This will make e-payment easier for Singaporeans, especially the elderly.
According to a report by Lianhe Zaobao, most of the digital ambassadors recruited will be graduates from Institutes of Higher Learning (IHL). These fresh graduates are familiar with technology, but they may not empathise with the fear and resistance of stallholders against e-payments. I hope that the Government will focus more on recruiting Singaporeans who may have initial reservations about technology but have learnt to use e-payment eventually. Then, they can effectively encourage stallholders to embark on digital transformation.
The Chinese say that food is the most important of all things. Only when everyone can use e-payment to buy food, can we say that our digital transformation is truly taking shape. I hope that from now onwards, stallholders who used to count cash will use the QR code as the norm.
(In English): Mr Deputy Speaker, Sir, resilience is forged through crisis. With this fourth Budget, the Government has already pumped in $93 billion to help Singaporeans and the economy. While COVID-19 has created havoc, it is clear that COVID-19 has also brought out the best in us, not just in putting the community above self-interest and abiding by the circuit breaker rules, but also in how some of us are extending a helping hand to others. There are countless examples, like those who have volunteered to help out in the frontline at the migrant worker dormitories, or those who have signed up with different charities via Giving.sg to donate money, essential items or volunteer their time.
There are also many inspiring stories in Jurong West, helping others during this difficult time.
One of our residents, Joyce Yu, did not throw up her hands in defeat when her parent's nasi lemak hawker stall suffered from a plunge in business due to COVID-19 and the circuit breaker measures. Instead, she managed to raise funds from her friends so that her parents could provide nasi lemak as free breakfast for needy families in Jurong.
As her parents also had hawker friends who were in the same situation, she slowly expanded the scheme. Today, she has raised about $20,000, not just from her friends, but also through the Giving.sg website and the Loving Hearts Multi-Service Centre in Jurong. These funds help to pay about nine workers, including her parents, to provide about 150 free breakfasts to families in Jurong every day. Grassroots volunteers also chipped in by distributing the food free of charge.
Joyce has a full-time job with YMCA but she is happy to liaise with the hawkers and raise funds. She says she wanted to come up with a scheme which is a win-win solution to support local businesses, hawkers like her mother's, while feeding vulnerable people.
Joyce is not alone. There are many similar stories like hers. We want to encourage more. We want to collect all these good deeds and inspire more to follow.
This year National Day will not have the glitter and pageantry of the huge parades like what we have had over the last 54 years. This year's National Day is our nation's 55th birthday. We want to celebrate the unsung heroes fighting the COVID-19, the everyday resilience and the sense of community on the ground which has given us a silver lining during these challenging times.
Like our pioneers in the late 1960s and 1970s that have built our nation from scratch, we will be the pioneers in winning the war over COVID-19. We are using the reserve build up by our Pioneers to fight the current crisis. But, we are also want to be the pioneers that transform our economy digitally so that our children can reap the fruits of our new digital economy. In the fight against COVID-19, I hope all Singaporeans can proudly say “count on me”.
Prof Lim Sun Sun (Nominated Member): Mr Deputy Speaker, I thank the Deputy Prime Minister for his unveiling of the Fortitude budget. This budget is aptly-named because it seeks to fortify support programmes that are urgently needed across all levels of an economy beleaguered by the COVID-19 pandemic.
I wish to focus my speech on the welcome support offered via the new SGUnited Mid-Career Traineeship Programme that aims to provide 4,000 traineeships for mid-career unemployed locals. This programme is especially timely as our country goes through rapid digitalisation, now fiercely accelerated by COVID-19.
As mature workers, mid-career jobseekers are understandably anxious about the drastic confluence of digital disruptions, outmoded skills and ageism working against them. Compared to fresh graduates, their needs are more complex as many would also be from the sandwich class, juggling lifestage obligations of parenting and eldercare and so their salary expectations are naturally higher. Even though they have an established track record, they will find it harder to pivot, having honed their skills in industries that may be on the decline. And yet, with their maturity and life experience, they still have much to offer our society and ample potential to grow.
As the relevant Ministries and agencies work together to operationalise the finer details of this programme, I would like to share insights from industry leaders so that the programme can bring maximum benefit to the trainees and companies participating in this scheme.
Principally, industry leaders recommend that expectations of both sides must be carefully managed to heighten mutual understanding and satisfaction with the programme. The participating companies’ should be supported with instructive guidelines on how best to integrate and upskill their trainees. MOM should provide some flexibility and support for employers across a group of complementary companies to offer cross-training opportunities.
For example, career portal Mums@Work has successfully experimented with developing consortia of companies in related industries collaborating to collectively train returning talents so that they can be exposed to a broader swathe of skills. Trainees can thus explore multiple career paths and better identify their transferable strengths in the process.
With such innovative arrangements, companies can offer their trainees a wider range of skills upgrading opportunities and support each other without incurring prohibitive overheads.
Companies should also be upfront with their trainees about the potential for longer term job prospects or the lack thereof, and share in advance the kinds of post traineeship support they can provide. They should also be more explicit about articulating their criteria for retention if they can afford to increase their headcount. That way, the trainees will not feel like they have been led down the garden path.
Besides such substantive issues, the approach that participating companies adopt in hosting these trainees can also make or break a traineeship. There are horror stories of job attachment schemes where mature trainees must sign in daily for a visitor’s pass to enter the company, or who are supervised by very junior colleagues with no managerial experience to speak of. These socio-emotional aspects of mid-career training must be effectively addressed to ensure win-win outcomes for everyone. Above all, the scheme must accord trainees with a sense of purpose and dignity.
On their part, trainees must also pull their weight and not regard the traineeship as a paid sabbatical. They too should be provided with pointers on how they can make the most of their stints and the appropriate mind sets they should adopt to fully benefit from the programme.
Fundamentally, the traineeships should offer a combination of substantive skills and career planning competencies that will empower these mid-career jobseekers for their next career move.
In this regard, the experience of the Singapore Computer Society’s Career Compass programme offers some valuable lessons. Besides providing training in technical skills relating to growth areas such as AI, cyber security and enterprise architecture, the programme also offers career preparatory training in areas such as professional branding, resume building and interview skills.
With a careful and concerted design of SGUnited Mid-Career Traineeship offerings and actionable guidelines for participating companies and trainees, I am hopeful that this scheme can help to prepare mid-career workers for the next phase of their careers. On that optimistic note, I support the Fortitude Budget.
Ms Joan Pereira (Tanjong Pagar): Mr Deputy Speaker, I rise in support of the $33 billion Fortitude Budget. This is an unprecedented Budget but it is necessary as this is one of the worst crises to hit us in our nation’s history.
Many of my residents in Henderson-Dawson have shared with me how they and their companies have been directly assisted by the various assistance schemes and programmes announced as parts of the Unity, Resilience and Solidarity Budgets. Many are also acutely aware that we are drawing on our reserves and have expressed their worries about drawing down on our nation’s savings, especially since we do not know how long this crisis will last. It is a delicate balance between the needs of our present and our future, and the Government has had to make some very tough decisions for the good of everyone in Singapore under these trying circumstances.
The central focus of the Fortitude Budget is jobs.
I am glad to see that the various age groups of our society will continue to receive assistance. From young graduates to middle aged employees, and to older workers, all will receive help with jobseeking, job-matching and training. We are especially concerned for the sandwiched workers – those who are supporting both children and elderly parents. I urge them to take up the various assistance schemes applicable to them and come forward to request for help if they are unsure of what to do.
It is important that even as we focus on taking care of our immediate needs, we must also be mindful of our external environment and keep an eye on what is ahead of us.
In early May, Deputy Prime Minister Heng had said that, I quote, “there should be no lost generation in Singapore… we are sailing into uncharted waters, surveying the new landscape, exploring new growth and opportunities, preparing to seize them when the storm passes...\"
I would like to speak a little about the young adults who will be joining or who had just joined our workforce. This is a world that seems so familiar and yet so different from the one they had grown up expecting to enter.
This generation had grown up hearing from their elders about how fortunate they have been, growing up enjoying the many benefits of a prosperous nation as compared to Singapore’s founding years. And now suddenly, within the space of a few months, the world has changed. It is so much harder for them to get jobs. The malls are closed. They cannot hang out with friends. Suddenly, we also have an entire generation of Romeos and Juliets, forbidden from meeting each other.
As this group is young, we may not be as worried as we may be for older Singaporeans. They will also receive support under the Fortitude Budget’s SGUnited Traineeship which aims to provide 21,000 traineeships for local first-time jobseekers, and there is additional support from the Hiring Incentive scheme which has been expanded to cover workers of all ages. Certainly, some of the 40,000 jobs to be created in the public and private sectors by the SGUnited Jobs initiative will be offered to this young cohort too.
However, being young and with less experience, they may face obstacles searching for jobs in a very tight labour market.
I am glad to note that MOM will take active steps to assist those who need advice and career counselling in applying for jobs and being matched with training programmes and jobs. However, for some young people, the jobs they had been preparing for may have all but disappeared and some are even at a loss about whether they should consider switching industries.Thus, the Government, together with industry and the Institutes of Higher Learning, should work even more closely together to help them navigate the job market in this challenging environment.
We must be mindful of the impact of this crisis on them for years to come and have the appropriate strategy to help them to ensure that they will not become a lost or traumatised generation. For a number of them, they are entering the adult world with “empty hands”, as their parents and family members may also face job losses or business difficulties.
My concern is that as our economy recovers in the future, this cohort’s experience and their subsequent actions would have consequences for us as a nation. Even with the use of technology and solemnisations via video link, relationships and marriages may be delayed. They may delay having children, have fewer children or none at all. In delaying procreation, the chances of having healthy children are reduced.
Our family units form the foundation of our society. Matching up young single Singaporeans may hardly be a priority now but I hope the Government will be mindful of this issue as it has wide ranging implications, including our economy’s competitiveness and national security.
As for those who have decided to take the leap, we can do more to support these new young families. There are attractive grants in place for HDB flat purchases. Nonetheless, I would like to ask the government to help them with the repayment of their HDB loans. Please consider accepting even lower deposits and smaller repayments monthly. This need not be permanent. The crisis will not last forever, in three to five years, the economy will pick up and the couples can make up for the difference later. This will also be timely as they progress in their careers, earn more and become able to afford higher mortgage payments. I also wish to appeal for higher subsidies for pregnancy check-ups, deliveries and childhood vaccinations to make procreation even more affordable.
Would MND also consider building bigger HDB flats in the future? Not only do bigger units allow families to continue living together and help to look after each other, they will also take into account that more citizens will be working and studying online from home. This will be become a permanent trend. More and more people will need a home office and increasingly, home-based learning will be part of all students’ schedule, whether during emergencies, or, regularly utilised to ensure that the system is working and that the students and teachers stay familiar with the online learning platforms. Such a change in working and learning patterns means that there is a need and demand for a bit more space, with internal dividers, for all members of a family to do their jobs and studying sustainably, without disturbing one another.
Let us support our young adults who are standing at the entrance of independence and parenthood. Encourage them to proceed to the next lap with those they love. The pandemic will pass. And throughout the way, we will help everyone to tide through these tough times together.
Ms Foo Mee Har (West Coast): Mr Deputy Speaker, Sir, the Fortitude Budget sets aside $33 billion more to help firms and households, and to save jobs. The COVID-19 pandemic has brought with it a health and economic crisis that has Singapore facing the worst recession since Independence. Our Government’s response has had no precedent – unstinting and rapid support to the tune of $93 billion thus far, resulting in the largest overall Budget deficit in our nation’s history.
Including this Budget, the Government will need to draw up to $52 billion dollars from its reserves. It is indeed a blessing that Singapore should possess such a reservoir of financial resources to see us through this crisis. Many countries around the world will be burdened, burdened in the years to come with record levels of debt from the huge fiscal stimulus programmes they have had to put in place to deal with the impact from COVID-19. So, we are more fortunate.
But, Sir, there is no question that Singapore was absolutely right to tap the reserves decisively in order to help businesses, tide Singaporeans through this crisis and mitigate permanent damage to our economy. However, we should also be concerned about fiscal sustainability, especially when the outlook remains uncertain and downside risks remain significant. There is a lot of talk about what would the shape of the recovery be, but many believe that recovery will be slow and long-drawn; it may take years before we return to pre-COVID-19 conditions.
Against this backdrop, I wonder how this massive draw on our reserves will be treated. What are the obligations to pay back? To do so, would be a huge task as the amount is more than 10 times our previous draw, when we used it to deal with the Global Financial Crisis. How will this influence our tax policy in the coming years, as we work to restore public finances in an equitable manner? Will we need to dig deeper, to implement more progressive income taxes and greater wealth taxes? Will tax systems need to evolve in tandem with the rising digital economy and capture revenue earned from online transactions?
With the economic outlook remaining highly uncertain and with risks predominantly skewed to the downside, we should be very cautious when we do further draws on our reserves. I support the call to set aside a sum of $13 billion in Contingencies Funds, but, I must urge the Government to do so with utmost prudence.
Mr Deputy Speaker, the COVID-19 pandemic has impacted businesses and workers unevenly. I urge Deputy Prime Minister Heng Swee Keat to adopt in the next phase, if he has to do something, a more targeted approach in future support schemes.
For example, the Jobs Support Scheme (JSS), payouts should only go to firms adversely impacted by the crisis. We should learn from Australia. In Australia, for their scheme, eligibility for wage support only kicks in if business turnover drops by 30% due to the pandemic; for larger companies with turnovers of over A$1 billion, their drop in turnover must be at least 50% before they can be eligible. It should not be right for firms to profit from the Government's support scheme during this crisis.
For some companies, whose bottom lines have been boosted because of JSS, they should be offered the opportunity to \"pay it forward\", in support of others who are less fortunate, perhaps through a \"Solidarity Levy\" of some sort.
Sir, this crisis will increase income inequality. Recent research at Oxford found that those earning under GBP20,000 are less able to perform work remotely, earn a smaller proportion of their previous salary and are twice as likely to lose their jobs compared to those earning GBP40,000 or more. We can draw similar parallels here in Singapore. It has been far easier for those employed by large companies and highly skilled sectors to work remotely, than for those employed by SMEs or in the retail and F&B sectors, as well as those engaged in low-paying contract work. So, we must find ways to buffer the hardship faced by these families. We should be prepared to support them with some basic level of income beyond the current provision of COVID-19 Support Grant, should their unemployment persist.
Mr Deputy Speaker, Sir, I support Deputy Prime Minister's call to think urgently about how Singapore can emerge stronger. We must prepare our workforce immediately for a post-COVID-19 environment, to adapt quickly to structural changes in the economy, changed consumer habits and new ways in which countries will compete and co-operate with one another.
I also applaud Deputy Prime Minister for his bold move to launch the SGUnited Jobs and Skills Package, creating 100,000 opportunities in jobs, traineeships and skills training to mitigate risks associated with unemployment.
The Deputy Prime Minister has promised to \"protect every worker even if we cannot protect every job\". But this commitment to protect every worker should not create a false sense of security or complacency. Instead, it should encourage individuals to leverage this safety net in order to position themselves for the longer term, by critically assessing their operating environment, learn new skills, try new jobs and seize on the many schemes available to ensure that they remain relevant.
The formation of National Jobs Council as well as the Emerging Stronger Task Force are great initiatives for developing strategies to pivot ourselves to the new jobs landscape. I am also impressed with the speed by which job initiatives are being rolled out – these include the 11,000 traineeships by 1,000 organisations who have come on board so far, so quite impressive.
Our ability to coordinate, navigate and implement Whole-of-Government initiatives is truly the competitive advantage that Singapore must play to.
Amidst the doom and gloom, it is reassuring to learn that Singapore has secured $13 billion of investment commitments in just four months of this year – amongst the highest in recent years. This is a testament of the confidence that investors and businesses have in Singapore and the hard work that MTI continues to put into selling \"Singapore Inc\". Indeed, as social, political and geopolitical instability continue to play out elsewhere in the world, Singapore is well positioned as the much-sought-after safe harbor for business, talent, intellectual property and investments.
Sir, COVID-19 has changed many long-held beliefs and opened up new perspectives. I think many of us believed that Singaporeans were not attracted to care-giving jobs, so we were always going to be heavily reliant on foreign nurses and care-giving professionals. However, our response to the pandemic shone a light on the meaningful work that healthcare professionals do and held them up as the heroes that they have always been. School children wrote \"thank you\" notes, Prime Ministers called them out and people clapped from their balconies the world over, out of gratitude for their sacrifice. The large number of temporary positions made available to deal with COVID-19 has also provided a window of opportunity for people to try their hand at this work. I must say I am so encouraged to witnessed an emerging interest amongst young people in joining the healthcare industry and shifting attitudes towards the care-giving profession. Sir, we should seize upon this window of opportunity to accelerate this trend and attract more Singaporeans to join the healthcare profession that offers great long-term career prospects.
Lastly, COVID-19 has taught us that large-scale remote working is indeed possible. With the help of technology, employers are quickly equipping their workers with the tools they need to work from home. I myself have been surprised at how much more productive I have been, working away from the office. Facebook has begun planning for workers to work permanently from home, whilst Google has extended its work-from-home policy for the remainder of 2020.
With working remotely accepted as the new normal, we should leverage this opportunity to supercharge Singapore's growth in the Infocomm Technology sector (ICT). Many tech firms complain that they have not been able to scale their business in Singapore given our limited talent pool. With the accelerated plan to build a strong pipeline of digital and technology skills locally as announced by Minister Iswaran yesterday, companies can also supplement the local talent pool with global expertise to scale the business by extending working from home beyond our national borders. So, extend that, work from home, but beyond the national borders. Singapore companies can tap AI, data analytics, cybersecurity resources from around the world to support Singapore's development work without these tech professionals having to relocate to Singapore. Our innovations in organising work and how work should be done, can fuel our ambition to be Global-Asia node of technology, innovation and enterprise.
I urge the Emerging Stronger Task Force Committee to scrutinise these and other trends emerging from this COVID-19 pandemic, so that it may inform their recommendations to prepare Singaporeans for a post-COVID era. Winston Churchill is credited with first saying, \"Never let a good crisis go to waste\". Singapore has certainly invested a good deal in this crisis, it is time to learn the lessons, turn challenges into opportunities and reap the rewards for a stronger, brighter tomorrow. I support the Budget.
Mr Louis Ng Kok Kwang (Nee Soon): Sir, I join many Singaporeans in thanking the Government for the Unity, Resilience, Solidarity and Fortitude Budgets. The support measures introduced will help ensure that we can all get through this pandemic and most importantly, get through it together.
I am thankful that the concerns of those on unpaid leave or reduced salaries have been addressed through expanding the COVID-19 Support Grant to help this group of Singaporeans. I am thankful we are proposing to help the SMEs with further rental waivers and allow tenants to repay their arrears through installments. I am also thankful for all the hard work by MOM, all the other Government agencies and the NGOs who have worked tirelessly to help our migrant friends. Our migrant friends have worked hard to build, clean and maintain Singapore as the shining red dot we are today. I am glad we have not left them behind and have committed to improving their living conditions. I raised all these concerns in my previous speeches and I am thankful to everyone who has taken the time to share your concerns, feedback and suggestions with me. Thank you for speaking up.
Sir, we have given a lot but as I raised in my previous speeches, there is one more thing we need to give out. We can and we need to give time. Time for working parents to spend with and look after their young children during this difficult period.
During this pandemic, many parents are feeling the stress of trying to balance work and looking after their children, especially helping their young ones with home-based learning (HBL). As Zack, a parent, shared with me, \"Imagine working from 9.00 am to 6.00 pm. Reached home about 7.00 pm. Have dinner until 7.30 pm. And only having this time, 7.30 pm to 9.00 pm, to check on the kids' HBL. Kids must sleep at 9.00 pm to ensure nine hours of healthy sleep. Super tiring. Yet, we endured for the sake of our children\".
Many parents are especially worried about how they will cope with alternating weeks of HBL for non-graduating students. It will be difficult for parents who are unable to work from home. Who will look after their children? Not everyone has grandparents who can help and even for those who do, they might not be able to help during this period.
Another parent shared with me, \"I have two Primary school going kids. Primary 1, Primary 2. Who is available to guide them on HBL days during Phase One? Grandparents aren’t computer literate. If there isn’t any HBL plus Google meet plus video call, I will choose to deposit them at my parents house easily. If I have to take annual leave to guide their HBL, employer won’t allow.\"
I know Minister Ong has stated, \"Schools will be prepared to extend limited care to young students on HBL but without childcare arrangements\".
It will also be difficult for parents who can work from home. They are expected to meet their bosses' deadline and to be equally productive, even as they try to give their young ones attention and guide them on HBL. Do they please their employers or the children?
I know firsthand how difficult it is. For the past two months, I worked from home with three little ones who had HBL. Ella is now six years old and Katie and Poppy are three years old. You cannot leave them to do HBL on their own. It is impossible.
They have also attended many of my Zoom work meetings, climbed on my shoulders when I am clearing emails, and pulled my hands and legs, wanting me to play with them when I am drafting speeches. This happened when I was drafting this speech last Saturday.
Parents truly appreciate this opportunity to work from home. As Zyen, another parent, shared, “WFH with an infant is really no joke. Always have to work till midnight to complete the work. But I do, really cherish and appreciate. I‘ve been there when she flipped, sat up by herself and now standing with support. Gonna miss this bittersweet timing”.
Sir, more than anything, parents feel guilty that we cannot give our children the attention they need even though they are right there in front of us. I am not the only one with kids climbing on my shoulders. Amelia shared that, “My son climbs onto my shoulders while I work, too. I feel guilty for being impatient with my daughter who asks questions or wants to share something with me while I’m rushing my work”.
I know there is no easy solution, especially during these difficult times. I know employers are equally stressed. But we need to give parents some breathing space and help them balance both work and family commitments. It is good that the Government has asked employers to be more empathetic to the challenges working parents face but we need to do more than that.
We cannot leave this important issue to the discretion of the employer. The Government needs to step in to help and to mandate like how we have done so in so many areas in tackling this pandemic.
We need to remember the issue does not just stem from alternating weeks of HBL. What about parents whose children are required to stay home because they are exhibiting COVID-like symptoms? Many pre-schools rightly ask a child to go home if he or she shows a single symptom. But a lot of parents are affected because of this.
An educator in a childcare centre shared with me that, “On the ground, parents tend to negotiate with teachers if teachers were to reject children from entering schools due to respiratory symptoms with reasons that they are unable to get leave from work or no one to take care of their children”. Some parents, “would suggest to teachers to keep children at the sick bay the entire day until the parents end work”.
Let us not forget that there are also school closures due to positive COVID-19 cases, Leave of Absence or Stay-Home Notices.
As I have previously stressed, our current childcare leave entitlement is already insufficient during a regular year. Now, in the most irregular year, how can parents possibly have sufficient childcare leave?
The only option left for many parents is unpaid leave. Indeed, many parents have shared that they are doing just that. But in this business climate, parents fear losing their jobs if they continue to take unpaid leave.
To help parents, I hope we can introduce a Government-paid COVID-19-related childcare leave for parents whose children need to stay home due to COVID-19-related issues. By calling for it to be Government-paid, this would ease the financial burden for employers, whom I know are equally stressed.
Sir, this leave is critical for those who are unable to work from home. This includes parents working in essential services who perform a duty for our nation, who keep us safe. We need to make sure that they are looked after, too.
For parents who are working from home, this COVID-19-related childcare leave can help take off the pressures of balancing competing work and childcare responsibilities. They can take this leave when needed, such as helping their child catch up with HBL and their school work.
Sir, we will not be the first country to provide a COVID-19-related childcare leave. Other countries have already taken steps to help working parents facing childcare challenges as a result of this pandemic.
In the US, the Families First Coronavirus Response Act expands paid leave options for working parents who are unable to find childcare arrangements, entitling them up to 12 weeks of partially paid family leave. This includes parents working from home. Businesses whose employees take this leave pay for it through a refundable tax credit administered by the Department of Treasury.
In Canada, working parents are entitled to job-protected leave of absence for up to 16 weeks under federal law, allowing parents to attend to childcare and eldercare needs while protecting them from being fired or penalised.
In Italy, the government extended annual parental leave by 15 days for parents with children aged up to 12 years.
In Belgium, the government introduced a special parental leave for parents of children under the age of 12 where parents can take leave in the form of 1/2 or 1/5 reduction of working time. This means working half time or one day off a week, taken in any combination of weekly or monthly blocks.
Other countries have adopted a variety of measures – tax credits, protection against discriminatory firing, increase in annual leave and flexible leave. I believe some combination of these solutions would provide our working parents the support they so desperately need.
Sir, in conclusion, we cannot leave it to employers and employees to work out amicable arrangements to balance business needs with childcare needs in this difficult time. In this difficult time, the Government has to step in. We should; other countries have already done so.
I hope the Government will consider introducing a Government-paid COVID-19-related childcare leave and provide it at least until the end of Phase Two of the re-opening after the circuit breaker. Many parents are calling for this and I hope the Government will support them.
“Spend time with those you love, one of these days you will either say I wish I had or I’m glad I did.”
Let us give our working parents the time they need to spend with their children during this pandemic and let us all value the precious time we have with our loved ones. Sir, I support the Budget. Together, we will beat this virus.
Ms Anthea Ong (Nominated Member): Mr Deputy Speaker, before I start, I would like to thank Deputy Prime Minister Heng and his team at MOF for their hard work in devising a fourth Budget within a space of four months. I also appreciate the sensitive consideration of naming each Budget such that we are emotionally connected to them.
\"Fortitude\" is an excellent name for this Budget as we dig deep into courage to face the painful effects of an unfolding economic crisis. The pain is widespread. Many have reached out to me with their stories. Witnessing this suffering has compelled me to file cuts tomorrow, so that the issues faced by struggling groups are raised to this House. Public rental households are one such group.
The number of households who have suffered complete loss of income since the beginning of April has risen sharply. Average income levels have gone into freefall. On the ground, community organisations have observed that households face mounting debt, including rent arrears. MND shared that “about 5,200 public rental households, or about 10% of all public rental households, are in rent arrears”. Around one in four such households owes more than $3,000 in rent.
As the economic impact of COVID-19 worsens, we can expect that more households residing in rental flats will struggle to pay rent. The Deputy Prime Minister said in his Ministerial Statement last week, \"Our path forward will be tough, but we will journey together\". So, I would like to ask the Deputy Prime Minister if he could consider waiving six months’ rent for all households residing in rental flats, except for those whose rent is already covered under financial assistance from ComCare. This will provide immediate and targeted relief that goes directly to the low-income households in need.
For context, the Government is extending $334 million in rental relief for Government tenants in this Budget. A further $2 billion will offset SMEs’ rental costs.. A similar waiver for rental flat households would cost between $16 million and $57 million, based on my rough calculation.
Mr Deputy Speaker, while acute pain is undeniable and deeply felt by both citizens and migrant workers, future shocks could be more frequent and unprecedented. The World Economic Forum has called turbulence “the new normal” in its latest Global Risks Report. I will focus on the long term in this speech.
The hard work of Singaporeans and Singapore companies, as well as prudent financial management of our Reserves, has allowed us to save up for this rainy day. It is only fiscally responsible for us to ensure that we spend the monies to build a stronger foundation for this new turbulent normal. This demands that we push boundaries and reimagine a social and economic structure that is more responsive, flexible and interconnected.
Mr Deputy Speaker, let me first outline why a re-imagination and deep transformation is the only prudent way forward. I will then discuss the considerations in our current spending and planning processes that can set us on the path towards this stronger, more sustainable and more inclusive future.
Deputy Prime Minister Heng mentioned that this Budget’s focus is to “enable our businesses and workers to adapt, transform and seize new opportunities”. Indeed, but even more so, our society and economy need a deep transformation.
The COVID-19 crisis has shown us unequivocally that human health is intrinsically linked to planetary health. Our increasing urbanisation and disruption of ecological balances increase our risks of exposure to pathogens. Last year, the Clinicians for Planetary Health initiative was launched. It committed to increase awareness of the severe public health impacts of environmental change. Therefore, it is safe to say that to safeguard our economic future, the balance of resources across people, planet and profit needs to be re-examined.
First, we can no longer look at our risk response in silo. Risks are multi-dimensional and cross-cutting, and must be addressed as such. Our healthcare system had integrated and implemented the playbook from SARS well – only 3.1% of our infections had been healthcare workers so far, compared to 41% for SARS. Yet, systemic gaps in worker welfare, specifically for migrant workers, left us unprepared for the infection levels in the dormitories. The risk assessment framework should have included the adequacy of safeguards for worker health. This would have required MOH and MOM to work together.
Second, existing societal inequities create disproportionate stresses on vulnerable communities. My previous speeches provided several examples of persons with mental health conditions, lower income households and migrant workers being disproportionately affected in terms of income loss and economic and psychological resilience. The digital divide amongst lower income families, the differently-abled and the elderly became more evident. All these could deepen social and community fault lines.
What does all this mean in terms of transformation? What society should we envision for ourselves?
I call for Singapore to move towards multi-stakeholderism. Governance-wise, this means a policy design process centred around and in collaboration with the actors with a “stake” in the outcome. Business-wise, it means considering workers, suppliers and customers equally.
Such considerations are not new. The World Economic Forum was established in 1971 to further the idea that business should serve all stakeholders. A hundred and eighty one CEOs of the Business Roundtable signed a statement last year, committing “to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders.”
Investors also value businesses that take care of its stakeholders. Workers are a major stakeholder. In April 2020, the International Corporate Governance Network (ICGN) led by investors responsible for assets of $54 trillion called for companies to “prioritise employee safety and welfare” and “take a holistic and equitable approach to capital allocation decisions, considering the workforce”. Deputy Prime Minister Heng alluded to similar sentiments in parts of his speech.
The Government’s strategy to help Singaporeans ride through this crisis is by safeguarding jobs and income, which it is doing by supporting businesses. Across all four Budgets, around $28 billion has gone towards supporting immediate cash flow needs and overheads. This is about a third of the total Budget to date. The Government has also provided support through enabling credit access and matching investments for start-ups.
Mr Deputy Speaker, I support the intention to protect jobs and income to strengthen the economic position of our individuals and households. Reducing inequality would also increase resilience across our society, especially in times of hardship, so that economic buffers and important resources do not become accessible only to the privileged few.
Therefore, we must enact measures to protect individuals against employers who may be more interested in self-enrichment than in their workers’ rice bowls. Possible measures are curbs on layoffs, excessive executive compensation, and excessive use of share options in compensation structures that disproportionately align managers only to shareholders’ interests.
Government bailouts and support may reduce shareholders’ risk-bearing responsibilities. Safeguards against moral hazard can include: reducing dividends, restricting stock buybacks and requiring that any M&A activity should seek to pay back the support provided, that is, a clawback.
Measuring and reporting should be used to hold companies accountable for how they have used Government grants, therefore taxpayers’ monies. An example is the independent accountability and transparency board created by the Obama administration in 2009. It performed a crucial monitoring function by requiring any entity receiving contracts, grants, or loans to file quarterly reports.
We could adopt a similar mechanism to ensure that companies channel Government support to those for whom it is intended. Corporate reporting requirements could compel companies to demonstrate behaviours that meet broader societal and sustainability goals.
We must also use the support packages as carrots for companies to actively enhance social equity by integrating community engagement and social responsibility into business strategy, so each can be a Company of Good – a national effort I believe Deputy Prime Minister is very familiar with. This could include an obligation to judiciously use the Business and IPC Partnership Scheme or BIPs, to make in-kind donations to charities.
Lastly, promoting sustainable business models will be key to building a better and safer future. McKinsey noted in April that “not only does climate action remain critical over the next decade, but investments in climate-resilient infrastructure and the transition to a lower carbon future can drive significant near-term job creation while increasing economic and environmental resiliency.” The President of the German Parliament recently called for the stimulus plan to focus on “climate policy, digitisation and innovation”.
Subsidies and support to companies accelerating climate change should come with conditions for absolute emissions reductions that enable us to accelerate our Paris Agreement commitments. As countries grapple with what a green and healthy recovery looks like, measurement and accountability may again be instrumental for change. The Task Force of Climate-related Financial Disclosures framework should be the norm. Science-based targets should form the basis of discussions on business transformations.
Such requirements could be considered by the Monetary Authority of Singapore as a cornerstone of future environment risk management guidelines for our financial industry.
These safeguards will require strong political will, Mr Deputy Speaker, because they will meet with resistance. But if we want a flexible and responsive society that is able to absorb shocks and rebound from them, I believe we must recalibrate current power structures for a fairer economy that considers key stakeholders in our economic system equally. I hope Deputy Prime Minister addresses this need for safeguards and conditions in his response.
The Government is demonstrating its commitment to longer term planning through the Emerging Stronger Task Force and the Future Economy Council. I applaud the intention. However, if we are to recognise a wide range of stakeholders in our future and commit to re-imagining the way forward, changes must be made.
I am glad to hear Deputy Prime Minister note that the Task Force will partner with SME owners, industry experts and trade associations as part of Emerging Stronger and his invitation for Singaporeans to participate. I would like to ask Deputy Prime Minister if there are plans to formalise this partnership and citizen participation under this Task Force. This is necessary to integrate meaningful and transparent input from all corners of society.
The current members of the Task Force represent industries that we have traditionally treated as pillars of our current economic structure, the composition does not represent the true diversity of economic players in Singapore. For example, I am surprised by the omission of SME, minority, even disability and mental health representation. Companies committed to delivering a sustainable future are also unrepresented, under-represented. So are women. I believe that if we sideline these views now, we are sabotaging our own futures and those of our children’s. Can I please ask the Deputy Prime Minister to ensure a more diverse and better representation on this Task Force to secure a truly resilient and united future for Singapore?
Unity, resilience, solidarity, fortitude. The names of the four extraordinary Budgets this year speak to our desire as a nation to overcome this crisis together and stronger. Mr Deputy Speaker, I believe that emerging stronger means placing our people front and centre of our plans for the future. Our economic structures must be realigned to put people first so that we build back better as a well-being economy post-COVID. It will take our collective imagination, courage and collaboration to walk through this crisis and emerge stronger, together. Let us start the work for that to happen today with fortitude. I support the Budget.
Mr Gan Thiam Poh (Ang Mo Kio): Mr Deputy Speaker, I welcome the $33 billion Fortitude Budget which will be used to counter the heavy impact of the coronavirus pandemic on our country. All governments around the world are taking unprecedented measures to mitigate the damaging impact of this outbreak and save the lives and livelihoods of their people. We are similar. Fortunately, past prudence has provided us with adequate emergency funds.
We are in the midst of a brutal war, the pandemic has claimed over 370,000 lives in the world within a few months. Fortunately, we have managed to keep most of our people here safe and the death rate low. This is a challenging war against the virus. It is different from other outbreaks that we have come across so far. To my understanding, it is infectious even a person has not developed any symptoms. Asymptomatic infections have made this task of overcoming it even more challenging and difficult.
Notwithstanding, we have to soldier on under these very trying circumstances, be resilient, stay united and help one another to overcome the obstacles ahead of us. We Singaporeans need to stay focused on a sustainable approach. By and large, we understand there is a limit to the handouts we can if we do not find sustainable income that provide long term and permanent social and family safety nets. Sir, in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] I am heartened by the effort to save and create jobs. I hope that more jobs can be created for the middle and senior age groups, particularly quality jobs. I am heartened by the response of our residents to the job offers, their willingness and courage in picking up new skills and adapting. I am glad that the Government has been focused on helping Singaporeans to both upskill and become equipped with new skills, to stay competitive and relevant in response to the market changes. There is a Chinese saying “When rowing a boat upstream, if one does not move forward, the boat will go backwards downstream”. Our people must persist in their efforts forward so that we can secure our place in the world.
More assistance will still need to be given to help Singaporeans, as the recovery of the world economy may not be so fast. For those who were retrenched last year and earlier, and had not been able to find jobs, they need help with job matching and retraining. This is especially for those aged above 40. In addition, some have expressed concerns that even with training, it does not necessarily lead to a job.
While the COVID-19 Support Grant (CSG) and Self-Employed Persons Income Relief Scheme (SIRS) provide welcomed relief, more salary or wage support can be given to help ease Singaporeans to upskill or reskill without having to worry about maintaining the family. I would like to suggest that we look at income matching, for example, a dollar to every two dollars earned for the 6 to 12 months, subject to a cap and overall scheme support budget of $9,000 per person under SIRS. This may be more sustainable.
Singaporeans should also adapt to tap upon technology and target not just Singapore, but the world as their market. Recently, a Singaporean actor took on a side job selling seafood for his friends on the Internet. To everyone’s surprise, including himself, he became an Internet celebrity, and companies and talent agencies from China rushed to contact him as their partner, asking him to promote all kinds of goods on the Internet. This is a very popular way of selling goods in China’s huge market today. While some of his language may be too colourful, his adaptability had created new opportunities for him. He can look forward to a very interesting new career. In Singapore, the Government has already started helping stallholders sell online and do live-streaming sales. Let us hope more business owners will try to change their operating models.
There has been feedback that there are still many who have been struggling with their businesses and who have been making sacrifices for the circuit breaker to the extent that they have been lending to their companies with their pay to support cashflow. Some have appealed for the Job Support Scheme (JSS) for working directors who are also shareholders. Instead of limiting the JSS to those who earn below $100,000 a year, why not remove this income cap? After all, the JSS is capped at 75% of $4,650.
Some are concerned that their businesses may not pick up after the reopening of our economy and thus will continue to face financial difficulty. It is important to them that all their clients order can be resumed. Otherwise, such business cannot hang on much longer. Even with the salary support from the Government, many businesses cannot afford to pay the balance 25% because they have zero revenue.
While we need to prioritise safety, and indeed, being a highly interconnected hub, we can only be safe if the world is also safe, however, we cannot be closed off from the world. It will do more harm than good to “de-globalise”.
We have to be proactive, not passive, to overcome this challenge. In order to survive, we cannot afford to sit back and keep drawing upon our past reserves and assets.
For example, we could consider staycations now that our community infection rate has been controlled. We should also start thinking how we could have effective and efficient test kits to check on all inbound travellers and returnees to prevent imported cases while revitalising the aviation, tourism and MICE sectors.
Most importantly, those who have the ability should help the have-nots. Because everyone is important and we care for all. Finally, let me conclude with a limerick.
January: Complain about having to start work again
February: Panic buying of paper products
March: Causeway closed
April: Everyone stayed home
May: Resumption of work we hope
June: Worry about savings being depleted
July: Pray all will go smoothly
August: Celebrate victory
With this, I would like to conclude with my support for this Budget. Thank you.
Miss Cheng Li Hui (Tampines): Mr Deputy Speaker, Sir, I rise in support of the Budget.
Twenty-twenty is a year to reset, regroup and relearn. What is before us, is unprecedented. It is both a health crisis and an economic crisis that affects our life, our health and how we live our lives.
But far beyond our personal spheres, the world is rapidly changing. Tensions near and far, threaten to destabilise our once predictable place in the world. Global supply chains are also changing as countries ramp up their \"nationalistic\" strategies. Singapore has always depended on free and open trade. We need to regroup and strategise what is next for us, what can steer our economy into the future where businesses can thrive and individuals can progress.
Deputy Speaker, Sir, as we chart our path forward, I am particularly concerned about the challenges faced by our SMEs, especially the micro-businesses in our neighbourhood and hawkers. It is encouraging that the Government has set up the Emerging Stronger Task Force to study the systemic shifts emerging out of COVID-19. Other countries are also gradually ramping up their economies as they emerge out of lockdowns. We need to swiftly identify the economic shifts and strategise the way forward. Can the Minister for Finance shed some light on the work done so far and its first findings? How can we take advantage of new opportunities and accelerate our economic rebound?
Sir, in March 2018, I spoke about how we in our 40s today will become seniors of the future who will be more tech savvy and self-sufficient. We are also likely to be able to retire later as technology allows us to work from home. This COVID-19 pandemic has also affected seniors in many ways. I would like to highlight digital transformation. Microsoft estimates that two years of digital transformation was accomplished in the last two months. Forbes estimates five years of digital transformation to occur before mid 2021. These impacts have also been felt by our seniors, many of whom now communicate with video calls using WhatsApp or Zoom – something unheard of in 2019. Some seniors are also learning to shop online. Although there are no local studies released, in 2019, 40% of seniors aged 65 and above in Germany shop online.
As we forge ahead in our new post-COVID-19 world, I anticipate far more online participation by our seniors than ever before. How can we capitalise on this digital transformation? How can we enable our seniors to be less isolated, more engaged with each other and with our society? What can we do with technology to help seniors connect with their families and friends and continue contributing to society and the economy even as they continue to earn a wage? As we protect the lives of our seniors by social distancing, we should also take care of their quality of social life by using technology.
I am heartened that the SG Digital Office will be hiring 1,000 Digital Ambassadors to help hawkers and seniors learn digital skills. It is great that the Government is reaching out to help bridge our digital divide and at the same time provide employment opportunities for our graduating cohorts of ITE, Polytechnics and Universities. I hope MCI will continue to accelerate our digitisation efforts post-COVID-19.
There is no doubt what we are experiencing is unprecedented. I hope when we look back to this period in the future, we can say we overcame COVID-19 with unity, solidarity, resilience and fortitude. Let us press on.
Mr Murali Pillai (Bukit Batok): Mr Deputy Speaker, Sir I support the initiatives introduced in Deputy Prime Minister Heng's Ministerial Statement delivered in this House last week to protect Singaporeans' lives and livelihoods. He and hon Members who spoke before me, highlighted the deteriorating economic situation globally as well as in Singapore.
Against this deteriorating situation, I am heartened that Deputy Prime Minister Heng made good his promise made in this House when he was delivering the Ministerial Statement on the Resilience Budget. He said, \"should it become necessary, I am prepared to propose to the President further draws on past reserves to deal with the situation.\"
Our past reserves has been characterised as our trump card to get out of this crisis. Indeed, it is fortunate that we can draw on our past reserves, thanks to the prudence of previous generations of Government Leaders and Singaporeans. But equally, it is fortunate that Singapore can count on two further trump cards. They are: our exceptional people, who are all united in the common goal of defeating this virus and its effects on our health and economy; and our excellent men and women of the civil service. By civil service, I also include our Statutory Boards and our uniformed Services. I wish to record my appreciation to the officers in these Government agencies who have been working tirelessly throughout this crisis.
We all know our civil service is a lean organisation. With the formulation and implementation of numerous Government budgetary programmes and measures as well as legislation passed in this House within short periods of time, these officers had to rapidly adapt and assume even more responsibilities to support Singaporeans during this turbulent period. I, like a good number of hon Members have received reply emails from Government agencies on petitions written on behalf of residents promptly, despite a spike in the numbers. Many of these replies are received well after office hours.
The Government agencies and partners dealing with applications to draw on the Government's COVID-19 support programmes do not have an easy task at all. They need to strike a balance between providing help to fellow Singaporeans, ensuring that the policy objectives of the programmes and legislation are achieved and satisfying themselves that the public resources are judiciously spent. At the same time, I am delighted to note that more and more, our Government agencies apply a degree of flexibility in assessing applications.
As an example, I recently received a note from a Senior Director of MSF who conveyed to me that MSF would administer the COVID-19 Support Grants (CSG) flexibly and not just by closely adhering to the criteria. This will ensure the policy objective of CSG of supporting lower to middle income Singaporeans who have lost their jobs, lost a significant proportion of the income or placed under no-pay leave are better served.
This is a welcome development. Our civil service is also transforming in its delivery efforts to better serve fellow Singaporeans. When we and our nation recover from this crisis, we should not forget the services of our men and women in civil service who went beyond their call of duty. In my view, it is not enough to pat them on their backs. We must follow up and provide tangible compensation to them. I made a similar call for our heroic frontline officers in my speech during the debate on the Unity Budget.
I would like to make three points in my speech on the Fortitude Budget. First, providing a permanent legal framework to help small businesses in crises, like the one we currently face. Second, encouraging the stakeholders in the charity sector to collaborate more so as to deliver more impactful programmes for Singaporeans who need help. And finally, providing more credit and cash flow assistance to middle income families.
On the first point, I am cheered by Deputy Prime Minister Heng's announcement of the Government's decision to introduce a Bill, mandating the more muscular landlords to grant rental waivers to the SME tenants whose businesses have been severely affected because of the COVID-19 pandemic. This measure deals with a big bugbear on the ground, given that most businesses in commercial premises have been closed for two months and are likely to be closed for at least a few more weeks. Deputy Prime Minister Heng mentioned that this was not an easy decision. He said \"Government does not ordinarily intervene in contracts after they have been entered into\". I appreciate the point Deputy Prime Minister Heng made.
This was the stance that was taken on behalf of the Government when I spoke on my Adjournment Motion \"Power Imbalance in Contracts Involving Small Businesses\" on the 5 February 2018. Then, I argued for Government intervention in form of legislation to protect small businesses to equalise their bargaining positions. I highlighted clauses in tenancy agreements that operate unfairly against tenants which are small businesses. I also drew examples of legislation being enacted in a number of advanced jurisdictions to help small businesses. The hon Senior Minister of State for Law as she then was, Ms Indranee Rajah stated as follows: \"In Singapore, our underlying philosophy is that, in general, free-market principles should apply and the Government should intervene only when necessary, for example, to address systemic market failure. Even when we do so, we try as far as possible to have the right regulatory touch and avoid heavy-handed interventions that could lead to distortion or unintended consequences\".
At this point in time, given the severe impact of COVID-19 pandemic on small businesses, especially in the F&B and retail industries, I think it is right for Government to intervene to protect them or else they will disappear and the employees will be stranded. As it is well-known, two-third of Singaporeans are employed by SMEs.
The question I have is on whether we should take a temporary or permanent approach in dealing with such matters. Now that the Government has recognised that there is a need for intervention to help small businesses during crises, should there not be a permanent framework that can be applied as and when the situation calls for it in the future?
To illustrate the point, let us consider the important role the Price Control Act, an act which the Deputy Speaker is very familiar with, played during the crisis. The Price Control Act or PCA was enacted in 1950 to control prices of goods and to prevent price gouging. This was engaged in 1973 to fix the price of rice when it rose as a result panic buying, in the wake of the oil crisis. It is also used in 1990 when the pork market was reportedly cornered by a few suppliers. So, this is a lever that can be used when sellers take advantage of the situation created by crises.
Between January and February 2020, hon Members will recall that there was a public outcry against unscrupulous sellers taking advantage of the COVID-19 outbreak to sell surgical masks, thermometers and hand sanitisers at grossly inflated prices. The Price Controller took swift action under powers vested in him under PCA by requiring the sellers to provide information on the basis for setting prices at that level and also visiting the premises. The issues were quickly resolved without the need for the Price Controller to exercise his power to fix the price of masks, thermometers and hand sanitizers. Across the Causeway, the government used powers under the equivalent of the PCA to fix the price of surgical masks.
By similarly having a permanent framework to deal with rent issues faced by the small businesses, we will be in effect making Singapore's economy more resilient. This is because the Government of the day can leverage on legislation to ensure that these small businesses will not go belly up in the face of similar crises in future. Time is of essence in such situations. Significant business disruption to such small businesses can be irreversible. There will also be the salutary signalling effect within the business community, as we saw in the case of masks sellers who self-regulated after the Price Controller launched queries into their business conduct.
I do appreciate that the shape, form and impact of crises in future may be different. The help measures may also differ from crisis to crisis. However, this need not mean that a permanent piece of legislation would lose relevance. However different the crises may be, the impact on small businesses in form of cashflow and cost will largely remain. For clarity's sake, the circumstances when Government's powers to intervene in the rental market may be triggered must also be spelt out too. The legislation may be worded broadly to provide for a wide spectrum of measures that the Government may impose to help our small businesses as we saw in the PCA example. I respectfully suggest that the Emerging Stronger Task Force of the Future Economy Council consider my proposal.
My next point concerns the support under the Fortitude Budget provided to the charity sector. In my speech during the debate on the Resilience and Solidarity Budgets, I highlighted the fact that some charities, especially the smaller ones, already were facing dwindling donations. I recall the hon Member, Mr Saktiandi also made the same point. However, we differed in the approach to be taken to deal with this problem. The hon Member, Mr Saktiandi suggested that the Government support the charities; I felt chary about this suggestion because of the Budget deficit we face this year and the fact that we are drawing on past reserves.
Deputy Prime Minister Heng's approach in providing dollar-for-dollar matching addresses both concerns. It incentivises donations and the same time provides much needed support to charitable organisations in the essential service or providing the vulnerable a helping hand. In principle, I support the move.
In my respectful view, however, the dollar-for-dollar matching should be combined with an outcome driven approach so as to incentivise charity organisations to collaborate and delivery quality programmes for Singaporeans in need. Under this approach, there would be need for an analysis on the impact of the charitable programmes on the beneficiaries such that the more impactful programmes should be provided with more public funding. There should be also financial incentives for charities to collaborate, pool resources and scale up.
Deputy Prime Minister Heng had noted that many individuals and organisations have stepped up to his call to help Singaporeans in need. With the increased number of charitable funds and individuals wanting to do charity work, there is an opportunity get charitable organisations with similar ideals and objectives to work together to ensure that the dollar provided by our Government is better spent.
It may well be that our Government will have to deepen its capability to play the role of matchmaker in encouraging charitable organisations to work together. This will, in my view, accelerate the transformation of the charity sector so that it will emerge stronger from this crisis to serve Singaporeans in need.
I now turn to my final point. Our Government has taken decisive steps to ensure that banks better support individuals and businesses affected by the COVID-19 pandemic. What I fear though is that if the economy dwindles even further, more families, especially middle-income families who are not the primary targets of the care and support package, will find themselves more cash strapped. We all recognise that there is a limit to payments such as the Solidarity Payment or the Temporary Relief Fund that the Government may make. Such amounts may not be even sufficient.
Cash strapped middle income families may be living in HDB or private properties. For these asset-rich, cash-poor families, I wonder if the Government could consider nudging the financial institutions to provide hassle-free, low-interest home equity loan facilities secured by either (a) refinancing of the original mortgage facilities if the original mortgagee is a bank; or (b) by a second mortgage on their homes.
To my understanding, such options are not currently available for HDB flats. Traditionally, financial institutions are chary about being second mortgagees as, priority-wise, they rank below CPF and the first mortgagee. Also, the processing time can be long. The administration costs in terms of getting valuation and to draw up legal paperwork can be significant too.
I appreciate that this measure has to be carefully studied for its social impact because if families default on their obligations, the banks may have to foreclose on their homes. However, I think that this issue may be addressed by proper analysis and implementing safeguards on the part of banks.
Sir, my comments notwithstanding, I support the Fortitude Budget.
Mr Deputy Speaker: Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Non-Constituency Member): Mr Deputy Speaker, Sir, the COVID-19 pandemic has brought huge disruptions to global businesses and lives of people from virtually every country in the world. We are in arguably one of the most uncertain times in the history of mankind. No single government has been able to claim from the start they know how to navigate through the challenges posed by COVID-19 and the consequences it has brought to countries, cities, societies and economies.
Our Government of 55 years since our Independence is no exception. To that, we have an unprecedented four Budgets in a short period of less than four months.
Like everywhere else, the disruptions brought on by COVID-19 have unsettled businesses, lives and governments. This is a sign of things to come in the world, where no government can claim that their past experience will provide useful relevance for the uncertain future. In this brave new world, many heads with different ideas working out consensual solutions for the common good must be preferred.
I will start on the issue of support for businesses.
In the past two months, under the circuit breaker period, businesses have received support under the Jobs Support Scheme (JSS), limited to 75% or up to $4,600 of every salary. Under this Fortitude Budget, for the months ahead, only selected industries such as listed in Tiers 1 and 2 of the JSS will continue to receive wage supplements of up to 75% of each worker's salary. For most businesses, they will only be receiving up to 25% of the first $4,600 of every worker's salary for the remaining payments under the JSS, and this Fortitude Budget will only bring one additional month's payment, limited to 25% of an employee's salary.
As most businesses stop receiving the 75% wage support coming out from the circuit breaker period, we may start to see a more accurate picture of businesses suffering and insolvency figures for companies rising later this year.
The Government has announced that it will provide a cash grant to offset rental costs of SME tenants and also pass a new law to ensure landlords pass on rental support from the Government. This will be welcomed as a small temporary relief of 0.64 of a month's rental for office and industrial properties and 0.8 of a month's rental for commercial properties. Unfortunately, to businesses who cannot open or operate or even for businesses who face a significant drop in their businesses at this time, it may not stave off business and cost pressures in a significant way. In effect, it will be too small an amount to save ailing businesses.
Perhaps the assistance by way of JSS and rental support could have been more targeted and not applied to businesses who may not be affected, for example, supermarkets or certain businesses in healthcare, pharmaceutical or IT sectors, just to name a few. In this way, more will be available to the businesses who need them. We should not rely on unaffected businesses to voluntarily return their payouts.
The announced support in the Fortitude Budget for digital transformation whether for purpose of boosting e-payments or the digital resilience bonus may help to promote e-payments and to allow safe management practices in COVID-19 settings. While they may assist with business continuity under unique COVID-19 operating conditions, these schemes may be less helpful in generating business or revenue in themselves.
The financing support for promising start-ups under the Fortitude Budget may help some new start-ups but are probably irrelevant to the bulk of our existing SME businesses.
Beyond the above-mentioned schemes, beyond the foreign work levy waivers and rebates announced in this Fortitude Budget, beyond the assistance from credit loans announced in previous budgets, I am concerned that many SME businesses will still require more assistance if we are to expect them to survive. What are the Government's plans to support them to tide through the months or year ahead beyond what has been announced under the Fortitude Budget?
Has the Government factored in any actual draft plans in arriving at the additional $13 billion Contingencies Funds asked for in this Fortitude Budget and if so, whether it can now share such plans with Singaporeans too?
I next move on to the challenges during the circuit breaker and the issue of letting businesses open up with less restrictions.
The circuit breaker has not been an easy period for many businesses and individuals. Some businesses are baffled why similar businesses did not always result in the same exemptions or the same manpower allocation ratios. Instructions have changed over the weeks for some businesses ranging from meal arrangements for hawkers to types of businesses allowed to be opened or types of merchandise allowed to be sold.
In the first few weeks of the circuit breaker, provision shops and minimarts in different Hougang precincts were given different directions. Some were told they were only allowed to sell food. Some were told that they were not allowed to sell mops, brooms, brushes, pails, cleaning liquids, even slippers and limited stationery. Some were allowed to sell with no restrictions. Operators were baffled as some of these items have been sold in NTUC FairPrice without restrictions. Thankfully, after the Hougang Member of Parliament sought clarifications, the authorities reached out and rectified the instructions given.
In the circuit breaker period, most businesses were required to stop operating in their premises and most employees could not work in their working premises and had to stay at home. Those who could still do some or all of their work at home were the lucky few ones as for many jobs and many businesses, telecommuting is either not an option at all or not an adequate option for a variety of reasons. Many businesses have been looking forward to the resumption of operations in their premises. Yet, it has been somewhat confusing and uncertain for many business owners whose businesses were supposedly cleared for resumption.
Minister Chan Chun Sing was reported in the media on 19 May to have said as follows, \"Only those who require the use of machinery and specialised terminals or need to complete legal documentation will be able to return to their workplaces. Workers who need infrequent access to the workplace for information or materials can already do so on an existing time-based exemption... The rest of the workers will continue to work from home. This will allow more than three-quarters of our economy to resume their normal operations.\"
These caveats are a challenge to viable resumption for many businesses. To continue with telecommuting per se may not be a viable option for many as telecommuting may suit certain positions but not others, and viable work that is required to be carried out in the office and unsuitability for telecommuting goes beyond the over-simplified description of merely requiring \"the use of machinery and specialised terminals or need to complete legal documentation\", especially bearing in mind many businesses will as I have highlighted earlier see their wage support under the JSS reduced to 25% from June onwards.
Productivity is another area of concern. The Government can be less prescriptive in this area, including any current limitation in the number of workers allowed in the workplace. Let businesses take ownership in managing telecommuting and the extent of telecommuting as appropriate for each individual business and their bottom line. Where any of these employees are required to be in the office or for workers where telecommuting has limited application, the Government can leave the onus on businesses to carry out prescribed safe workplace practices, including having appropriate social distancing and safe seating arrangements, use of SafeEntry, keeping records of staff and visitors to premises, including temperature records and good cleaning practices.
Let businesses focus on recovery with more breathing space. I am sure that most businesses will understand that their business operations are subject to closure due to failure in social distancing and safe workplace arrangements or in the event of an actual infection and most will take the necessary protective steps accordingly.
Mr Deputy Speaker, Sir, next, I would like to seek an update from the Minister for Manpower in the number of foreign workers who are still currently not allowed to leave their dormitories to go to work. Further, is the Minister able to give a projected estimation of the number of these workers who will be released back to work in each of the next two to three months?
I am asking these questions because pending a review of our labour policies in the near future – perhaps after the COVID-19 crisis, particularly on our current unhealthy level of reliance on cheap foreign labour and also the way we house them, in the meantime, we need these workers to be back helping to restart our economy and also at the end of the day, the workers do not ordinarily live and work outside of Singapore and they are part of our community.
I am also asking these questions because it touches on how confident the Government is in bringing down infection in the foreign worker dormitories to zero.
Next, I want to touch on safe connectivity with the world. Last Friday, the Government announced plans to launch \"fast lane\" arrangement with COVID-19 measures for essential business, official air travel between Singapore and China in early June, starting with six Chinese cities. Prior to that, the Government had also announced that there will be talks to reopen borders with New Zealand.
Quite understandably, we cannot stay unconnected for too long and the opening up of air travel and connection with these and, indeed, other countries will be beneficial to our businesses and economy.
On the other hand, we have had recent experience of significant COVID-19 infections brought about by arriving passengers from abroad, first with the Wuhan tourists in January bringing the first recorded cases and transmissions to Singapore and then later on with some of those returning to Singapore or visitors from abroad around the period of March and April.
For the Government's plans to open up air travel in the coming months even with selected countries and pending the eventual introduction of a vaccine for COVID-19, I hope that all necessary measures will be taken to ensure that the reopening will not lead to a resurgence of imported COVID-19 cases.
It has been reported that passengers will not be required to serve the 14-days quarantine period and they will be required to undertake swab tests before boarding and after arrival in Singapore. If swab tests are required before boarding a flight to Singapore, how do we ensure all overseas swab test results provided are reliable? For swab tests done on arrival, how will the Government ensure that pending the outcome of the testing, there will not be any risk to any persons with whom the passengers come into contact at the airport, at their selected accommodation and also while being transported to their accommodation? Are there any restrictions on their accommodation for this initial period?
Next, on safe travel on public transport. Minister Khaw Boon Wan announced on Monday that rail and bus services will return to pre-circuit breaker levels but indicated that safe social distancing may not be possible. This is disconcerting. Besides being a potential Achilles' heel in our fight against COVID-19, it is inconsistent with social distancing efforts that were carried out previously on trains during the circuit breaker. It is also inconsistent with the stringent enforcement efforts adopted in many other situations with regards to social distancing, for which many people have been fined or given warnings for breaches and the rationale for such enforcement.
Finally, President Halimah Yacob was reported to have stated her support for this Fortitude Budget. I wonder whether the President, in arriving at her conclusion to support the draw of $31 billion from our reserves as well as the previous draws from reserves under the previous Budgets, had already been advised of the total amount of reserves Singapore has and had taken this into consideration. Mr Deputy Speaker, Sir, in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, we may start to see the number of business failures going up in the next few months, leading to more job losses. After May, most businesses will receive 25% wage support and the Fortitude Budget will only increase support by one more month of such wage support. I would like to ask the Minister to extend more support to our SME businesses especially those who are struggling.
I also hope that the Government will extend more flexibility to businesses who are cleared to resume business on their premises, to manage their businesses as they see fit as long as they comply with safe distancing and other safe workplace practices as required by the Government.
As for the Government’s plans to resume airlinks with China and New Zealand, it is important to resume connection for the benefit of our economy. However, I hope the Government will take all necessary measures to ensure that we will avoid another wave of foreign imported COVID-19 infections.
As more rail and bus services are resumed in phase 1, 2 and 3, I also hope that the Government take all necessary measures for safe travel and social distancing especially during peak hours. The relaxation of social distancing in our trains since Tuesday is a huge concern. Lack of social distancing on public transport is inconsistent with the authorities’ stringent enforcement efforts in social distancing elsewhere, not to mention a potential Achilles heel in our fight against COVID-19.
Finally, President Halimah Yacob was reported to have stated her support for this Fortitude Budget. I wonder whether the President, in arriving at her conclusion to support the draw of $31 billion from our reserves as well as the previous draws from reserves under the Solidarity and Resilience Budgets, had already been advised of the total amount of reserves Singapore has and had taken this into consideration.
Mr Deputy Speaker: Mr Terence Ho.
Mr Terence Ho Wee San (Nominated Member): Mr Deputy Speaker, Sir, I thank Deputy Prime Minister Heng and his team for always having arts in his heart and making arts possible and vibrant, even during this COVID-19 situation. I also want to thank the colleagues in MCCY and the National Arts Council (NAC) for their dedication and commitment to keep arts going strong. They work tirelessly to render support in this difficult period.
As at 22 May 2020, NAC has supported more than 850 artists and arts groups, funded more than 60 digitalisation projects and reached over 6.2 million online views. If we take into consideration of the other online digital programmes by the arts groups, we should reach more than 10 million online viewers as today. Singapore Chinese Orchestra's digital efforts has seen six series, more than 130 contents uploaded, and a total of more than one million viewership to-date. Singapore Symphony Orchestra's SSOPlayOn! series, the Siong Leng Musical Association and the Nam Hwa Opera have brought their art onto several social media platforms for all to enjoy. The theatre groups live-stream their performances and the Esplanade partners with SISTIC to provide pay-per-view tickets to achieve self-sustained model for online performances.
In these difficult times, we need the arts and culture to uplift our spirits. I hope the artists and arts groups can tap on the Fortitude Budget to sustain works, spread positivity and make arts as an essential for everyone in the new normalcy. They can explore and tap on the Enhanced Jobs Support Scheme, SEP Income Relief Scheme, COVID-19 Support Grant and the Arts and Culture Resilience Package (ACRP). The $55 million ACRP seeks to protect the arts and culture eco-system and will provide support and opportunities for our cultural organisations and practitioners until the end of the year, while encouraging the development of longer-term capabilities that will help the community emerge stronger after COVID-19.
I have four suggestions. One, cultivate concert virtual exposure acquired by the expanding digital consumers of arts to actual engagement. Two, capability building should revamp and remodel in the strategic marketing area to bring headcounts for the various arts form, especially for ticketed events. Three, digital culture pass to encourage pay-per-view digital concert and even purchasing of live concert tickets when we allow concert to be staged at the concert hall. Four, more can be done to commission and collaborate with the private and public sector to utilise collective resources for the arts presentation in a more effective way.
Arts are the engines of togetherness and collective sense-making. A lost in cultural eco-system would be harder to re-cultivate than to restore anything. In Mandarin, Mr Deputy Speaker, Sir.
(In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, I would like to thank Deputy Prime Minister Heng and his team for always having the livelihood of artists and arts group in their heart. The Government pays great attention to the arts and the cultural sector, making arts an indispensable spiritual nourishment during the outbreak.
NAC and Lianhe Zaobao worked together to launch the Zaobao Recital Series comprising four online programmes, including Chinese music, vocals, classical chamber music and literature reciting. Netizens have responded warmly to these online programmes.
The enhanced Job Support Scheme has enabled many art groups and artists to maintain their livelihood during the outbreak and continue to create artworks and surprises, so that people can continue to enjoy arts performances online. For example, Singapore Chinese Orchestra staged the Tutti Singapore percussion performance; Singapore Symphony Orchestra uploaded SSOPlayOn! series, and Singapore Chinese Music Federation gathered 30 Erhu players to present a performance called \"Towards a Brighter Future\" in celebration of the 30th anniversary of Singapore-China diplomatic ties. Dingyi Music Company, Siong Leng Musical Association, Nan Hwa Opera and the Singapore Chinese Cultural Centre have also created many online stay-home performances. They use advanced digital technologies to bring arts onto various social media platforms, so that their audiences can enjoy wonderful concerts and performances free at home. There are more than 10 million online viewership to-date.
During this period, many enthusiastic supporters are paying special attention to the vulnerable groups by giving them donations and support. This is good. I feel that freelancers in the arts and cultural sector will need our help too. The existence of our local arts and cultural community is the spirit and hope of the society. This group of people will not be the first to come to people's mind to help. Their livelihood is not easy in the first place, and made worse by the outbreak. The support they received is far from enough, and this reflects the fundamental cultural attitude of a society. In this regard, we need a wider definition of arts and broader arts recognition among our people, so that more people are willing to support and promote arts and spread its values.
I hope that artists and arts groups can make good use of the funding and grants in these difficult times, move on with fortitude and continue to innovate and create. I believe that the community will emerge stronger and more united after COVID-19. The development of arts and culture would also be different from before. We will need new engines and new concepts to create a new world. I hope we can bring online audiences to concert halls and theatres. After artists have returned to the stage, I believe they will be able to create more inspiring programmes. This is because arts can provide spiritual nourishments, lift people's mood and warm their hearts. We will definitely conquer COVID-19, start a new life accompanied by beautiful music and artistic creations, and unite as one people to march towards prosperity and progress.
I support the Fortitude Budget.
[Mr Speaker in the Chair]
(In English): I am in support of the Fortitude Budget.
Mr Speaker: Mr Leon Perera.
Mr Leon Perera (Non-Constituency Member): Mr Speaker, Sir, across the world, governments, healthcare systems, companies, societies and families have been severely tested by a microscopic virus. We will continue to be tested. We will need to meet these tests as one united people, united by our love for our country and one another
Looking back, for me, the past two months have been extraordinary, working with Party colleagues and volunteers to provide support to residents remotely, adapting corporate processes to work from home and making adjustments to family life with my two young children, aged 12 and 14, going through home-based learning.
Now, our attention turns to the process of recovery. It is appropriate that an Emerging Stronger Task Force has been formed. I agree with the remarks made by my Party Chairman Ms Sylvia Lim on the composition and work of that task force.
As a society, it is our collective responsibility to reflect, draw the right lessons and emerge stronger. After all, the world went through the cataclysm of the Spanish flu in 1918 but many lessons about preventing and controlling pandemics were not permanently and widely institutionalised after that trauma.
We have a choice. Will we emerge stronger? What can we learn from this episode for this post-circuit breaker period and the post-COVID-19 future that Singapore will emerge into?
I would like to speak about two areas – overall pandemic management and the economy.
At the start of the pandemic, the Government quickly formed a whole-of-Government task force and issued regular communications. The challenge facing this task force was gargantuan. Our knowledge of COVID-19 was imperfect and evolving. There were many moving parts. In hindsight, though, many Singaporeans, looking back on the rules and announcements issued since early April, would say that there were too many finely calibrated rules. These were often qualified or changed shortly after being announced and this led to confusion on the ground. Let me cite a few examples.
On 21 April, when the tighter circuit breaker measures were announced, the press release said outlet-based confectionery operations had to be suspended from 2359 hours on 21 April, but those selling mainly bread could continue. What followed was some confusion as those selling mainly cakes try to find out what they could do. It was clarified that they could sell their inventory of cakes but not bake new ones. Some bakeries, such as one making mainly croissants, had to clarify how the rules apply to them.
Car workshops were another example. Initially, when the circuit breaker was announced, motor workshops were told they could apply to stay open but only for emergency services. A Straits Times' report from 7 April said that motor workshop operators were confused initially by the phrase \"emergency vehicle services\" found in the GoBusiness COVID-19 site. Do they mean emergency vehicles like ambulances or do they mean emergency services for vehicles, one asked.
Another example, in late April it was announced that exercising and dog walking were not permitted within the common areas of condominiums. One letter writer to TODAY on the 30 April mentioned that \"to access public spaces, dogs would have to traverse the common condominium grounds thus rendering the rule moot in practice.\" Such a rule may also have had the effect of condominium dog owners then crowding in adjacent pathways by the road, HDB or landed common areas or parks.
The intent behind these finely calibrated and frequently revised rules was good. But in hindsight, could the technocratic zeal have been tempered by an appreciation that the capacity of society to adapt to so many frequently changing rules is not unlimited, while the capacity of any civil service to issue so many detailed and finely calibrated rules in a very short time is limited.
Too frequent and unclear rules can lead to rules fatigue and cynicism towards rule compliance. Moreover, would it not have been more efficient for the exceptions and caveats to rules to have been announced at the same time as the rule. And could some rules that micro-manage what are permissible activities have been avoided in favour of making facility owners responsible for safe distancing, masking and so on?
Sir, my colleague Mr Dennis Tan has also made some suggestions on the roll-out of Phase One, with which I agree. I would add one point. The Government's approach to Phase One and beyond hinges on demarcating companies into either an essential or non-essential category for each phase. So, for example, in Phase One most retail, cinemas, bars, restaurants, event-based activities and tuition centres remain shut. This is in spite of the fact that crowds and lack of safe distancing have been anecdotally observed in a number of supermarket outlets and shopping malls under current rules, and that safe distancing is no longer mandatory on public transport.
We need to find the right balance between protecting livelihoods and protecting lives. Has the Government considered an alternative approach which is to calibrate this a little less finely and with a broader brush. This means allowing most establishments to open may be with the exception of those which pose the most extreme risk. But every establishment would be tasked to practise safe distancing, masking and other precautions. This would mean that some establishments would, perhaps, not be able to optimise capacity to economically viable levels. But should we not that choice to business owners? Some business owners may prefer to restart with reduced capacity so as to generate some cashflow, refresh connections with customers, start to rotate staff back to work for the sake of morale and skills refreshing and so on. For those industries where the risk is greater, these should be targeted for more enforcement and regular preventive COVID-19 testing.
In fact, the administration of rapid testing and swift isolation in a surgical manner, as opposed to only very severe lockdowns, has been seen as a key to Korea's success, which brings me to my next point on testing.
Sir, our current main form of testing appears to be the reverse transcription polymerase chain reaction or RTPCR test. Some challenges of scaling up the current PCR test are that testing takes about three hours for results to be obtained. Laboratory staff operating the extractors must also wear personal protective equipment or PPE and most countries looking to exit lockdown have similar mass testing strategies – increasing demand for the same reagents and PPE.
MOH has said that coronavirus test were conducted by 13 laboratories in Singapore, the majority of which are located at public healthcare institutions such as hospitals. There are private sector industrial testing labs that offer testing of COVID-19 on surfaces, not patient swabs. It is not clear if these labs currently also offer testing of human samples since this is not advertised. It would be good to know if these industrial labs can be co-opted to help with our testing.
Given the challenges in scaling up the PCR testing method, there is a need to concurrently explore scaling up of other testing methods to be able to roll out effective mass testing. The Tony Blair Institute in the UK has called for antibody tests to be more widely used in conjunction with the PCR test, even if it is less accurate. Could such antibody tests together with the current PCR test be used to triage testing of suspected cases to take the load off the PCR testing infrastructure.
Next, Sir, a number of new schemes have been rolled out. For example, there is a $100 utilities rebate in this latest Fortitude Budget – $100. Previously, SIRS and JSS were rolled out. Before COVID-19 there were also many schemes. To cite some random examples – Workfare, Jobs Credit, Innovation Credit and SkillsFuture. Some schemes are automatically applied and money gets transferred into your bank account. That is it. Some schemes you have to apply for to get the money or support. For other schemes, the money exists in an account tagged to each citizen and you have to use it.
Sir, the more schemes we have, the more there is risk of confusion leading to under-utilisation or other side effects. Also, the more complex the whole system becomes the more resources need to go into the work of explaining, sifting through and helping people or firms to apply for these schemes. Social workers and Family Service Centres and officers at economic agencies like Enterprise Singapore, for example, would have to meet this challenge by mastering all the minutiae of the schemes and then explaining them well.
Sir, there are just too many schemes with distinct names and processes right now.
Would the Government consider a unified portal across the whole-of-Government where each citizen and company can log on, view and transact? Such a portal would show firstly, that the monies that have been credited from all schemes that automatically kick in; two, the schemes which that person or company is eligible to apply for; or where there is imperfect information where they may be eligible to apply for for those that need application with direct links to the application forms from respective Ministries, Statutory Boards and agencies; and thirdly, the money that has been credited to them in special accounts but which needs to be utilised by a certain date.
The existence of such a portal would be a first step. The next step would be to streamline the schemes and curb the tendency to launch new schemes but attempt instead to channel support into existing schemes. Sir, sometimes less is more. And in saying this, for the elderly who are less IT-savvy, arrangements need to be made to facilitate their access to such a portal.
Next, let me move to the economy. Minister Chan recently announced $13 billion in foreign direct investment commitments in the first four months of this year versus $15.2 billion for the whole of last year. This is good news indeed.
I would like to ask MTI how much of this $13 billion is fixed asset investment versus total business spending. How many jobs is this expected to be translated into? And what incentives were used to secure these investments?
It is important to continue to attract FDI and to refine and improve our strategies for doing so. But the economic challenge of developing home-grown entrepreneurship and our own world-beating companies is going to be greater than ever. World trade growth was already slowing own even before COVID-19. COVID-19 will not put in an end to FDI for sure. But it is likely to result in more competition for perhaps less FDI, as some multi-national companies or MNCs migrate some operations back home and other MNCs try to diversify to less traditional FDI destinations, responding to the imperatives of supply chain resilience, political pressures and other imperatives.
Sir, our GDP growth rate was a weak 0.7% in 2019 before COVID-19 and that 0.7% growth rate was one of the lowest rates of growth among major advanced economies in the world in that year. No doubt there are many schemes and programmes to stimulate entrepreneurship. Have these met with the desired results? Are we where we want to be?
In this House my colleagues and I have mooted a number of ideas on this front in the past. For example, setting up a fund to support ex-civil servants who want to become entrepreneurs and demonstrating more flexibility in schemes based on results.
Sir, NASA recently launched its first vehicle into space using private sector launch capacity provided by the company Space X. Uplifting our entrepreneurial sector is going to be a key national competitiveness challenge facing Singapore. I would argue for renewed soul searching and efforts on this front as an urgent priority. Mr Speaker, Sir, in Malay, please.
(In Malay): [Please refer to Vernacular Speech.] The Government's approach to Phase One and beyond hinges on the demarcation of companies into either an essential or non-essential category for each phase. This is in spite of the fact that crowds have been observed to continue visiting a number of supermarkets in shopping centres and are not really practising safe distancing under current rules. Has the Government considered an alternative approach, which is to calibrate this a little less finely, but in a broader manner instead? This means allowing most businesses to open, perhaps with the exception of those which may pose the most extreme risks. At the same time, every business should be required to practise safe distancing, the wearing of masks and all other precautions. And for those industries where the risk is greater, these should be targeted for more enforcement and regular, preventive COVID-19 testing.
(In English): Mr Speaker, Sir, has COVID-19 shown that our model of economics and politics is perfect? No. Neither is any countries'. The success achieved by other developed countries in the region against COVID-19 such as Taiwan, Korea, Hong Kong and New Zealand should give us pause that we, too, have things to learn.
For example, if stronger independent voices had come out to say the precautionary reusable mask wearing was okay in the early days, it may have cut down on some asymptomatic transmission.
Last year, I read an excellent book called \"The Narrow Corridor\" by academics Daron Acemoglu and James Robinson. It uses extensive historical research spanning centuries to argue that the most successful societies are those that find the right balance between a strong, capable state and an equally strong non-state sector – meaning civil society, alternative parties and the private sector – to balance that state. The outcomes of such successful societies are able to obtain combined political stability and law and order on the one hand together with long-term innovation-driven economic development and social progress on the other hand.
And so, in conclusion, Mr Speaker, Sir, at the end of this speech, I find myself returning to a theme in my very first speech in this House given in January 2016 – the Singapore glass is half full. Singaporeans bear a major two-fold responsibility to preserve what is good about our existing system but to change what should be changed to make it better.
Mr Speaker: Minister of State Zaqy Mohamad.
The Minister of State for National Development (Mr Zaqy Mohamad): Thank you, Mr Speaker. “Your every day is full of sunshine. But into every life, a little rain must fall” – prose from a song by the legendary rock band, Queen.
We are living in very challenging times, with unpredictable weather ahead. They say that in every crisis, lies opportunity. Therefore, we should make the best of every opportunity available, no matter how strong the headwinds are. And this is why the Government and our tripartite partners are making every effort to create an umbrella of opportunities to weather the storm.
I will speak about how our workers and employers can tap on the opportunities and support available. We will help workers be flexible, to adapt and to widen their skills. We will also provide support for employers to make use of their downtime to upskill their workforce for transformed jobs.
The Minister for Manpower has elaborated on the strong Government support for our workers and I will focus on how fresh graduates and our mature workers can tap on opportunities.
Our fresh graduates are entering the job market amidst great uncertainty. I can personally relate to the anxiety of many of our fresh graduates who may be concerned with their job prospects. I graduated in 1999, shortly after the Asian Financial Crisis. There were few jobs and even fewer interviews. But I would like to assure our fresh graduates and their parents, compared to them, we are now more prepared and better resourced to support our fresh graduates.
Despite the current economic conditions, there are still jobs available in some areas. We will support employers to take in and groom new hires, including through sector-specific programmes such as the Company-Led Training Programme for Infocomm and Technology jobs. Some may not be able to find employment in this tough job market, and this is why we launched the SGUnited Traineeships programme.
We have more than doubled our initial goal from up to 8,000 traineeships to up to 21,000 traineeships. Our graduates can look forward to traineeships in sectors with good growth prospects such as Financial Services, Professional Services and Infocomm Technology and Media sectors.
There are familiar roles in Marketing and Finance too, and more specialised ones such as Sports Nutrition and Social Work. Graduates can check out available traineeships on MyCareersFuture.sg by searching for the hashtag #SGUnitedTraineeships.
On this note, I would like to thank the Singapore Business Federation for helping to vet and approve the large volume of traineeship proposals from companies. I would also like to acknowledge the many employers that have opened their doors to trainees. An example is Yang Kee Logistics, who will be offering traineeship opportunities in software development and food supply chain management.
Two trainees will support the Logistics Integrated Transport Ecosystem project, a cloud-based platform that connects logistics industry stakeholders and multiple intermediaries. They will be able to sharpen their software development skills and gain deeper project management skills. Another trainee will be exposed to Yang Kee's new food logistics business arm as a sales support coordinator. These traineeship experiences will be meaningful and valuable, providing them skills that are in-demand and hands-on industry experience.
Traineeships help our fresh graduates to build their experience and skills. This puts the trainee in good stead to find a job, either with the host company or elsewhere in the sector. To give our trainees a further boost, employers that hire them will receive the enhanced Hiring Incentive, with salary support of 20% of monthly salary for six months, capped at $6,000 in total.
The Government will work with employers to provide as many jobs and traineeships as possible. As many opportunities are likely to come from firms in growth sectors, I encourage our graduates to keep an open mind and consider how skills acquired in school can be applied to different careers.
We are also paying close attention to our mature workers. Many of them may have been in the same occupation for a long time, and find it more challenging to make a career switch. As Mr Patrick Tay mentioned, we need to support our mid-career workers and we also need to help them access the opportunities available. How can mature workers do so?
First, do consider making the switch into a new career. I recognise that it is not easy, but you are not alone. Workforce Singapore's Professional Conversion Programmes, or PCP, have helped nearly 14,500 Singaporeans since 2016 to successfully switch to new careers. The results are encouraging. About nine in 10 remain in employment for two years after getting a job, and seven in 10 earned higher wages. Clearly, the PCP has been effective in preparing our workers for new careers.
The Government provides up to 90% of salary support and course fees subsidies to encourage employers to hire mature workers through these programmes. We are also ramping up our capacity to provide more programmes.
One example is 55-year-old Choa Wai Sim – one individual who successfully made the switch. She previously worked in a traditional sales role performing tasks such as quality control and quotation of sales. While she initially applied for a salesperson role at Aries Fresh Private Limited, she was open to take on a different role focusing on digital sales offered by Aries Fresh in March this year.
Thanks to PCP for Digital Sales Executives, Wai Sim gained digital skills which complements her sales experience. I personally found it inspiring that Wai Sim has transformed her 30 plus years of experience to take on the digital world as well. She now uses Facebook and Google Ads to generate leads and increase sales. Wai Sim is earning 30% more, compared to her previous traditional sales role. She is an encouraging role model for all of us and I would like to thank Aries Fresh for investing in our mature workers and I hope that many others would consider this too.
Second, mature jobseekers can also consider taking part in the new SGUnited Traineeships for mid-career workers, which will be named SGUnited Mid-Career Pathways Programme. This programme will provide mid-career workers with company attachment opportunities to pick up industry-relevant skills and broaden their professional circles. This will boost their employability when the economy recovers.
We aim to provide up to 4,000 of such attachment opportunities. Compared to the SGUnited Traineeships, mid-careerists on this SGUnited Mid-Career Pathways Programme can expect to receive a higher stipend based on their relevant experience and skills that they bring to the host company.
To encourage employers to hire mature workers who have gone through eligible programmes such as the SGUnited Mid-Career Pathways Programme, we doubled the Hiring Incentive to 40% of monthly salary for six months, capped at $12,000 in total.
Our employers play an important role in growing our economy and hiring our workers. It is important that we also guide them through this storm. Even when employers are in \"survival mode\", their odds of survival will improve with a more skilled and productive workforce. I would like to encourage employers to take a longer-term view and walk with their workers through these challenging times.
Different employers are affected in different ways by this unprecedented crisis. The first group of employers are those who are not so badly affected and are still growing. And we encourage these employers to consider jobseekers who may not have all the skills needed to perform the job, but can do it with some training.
To support such employers, we will be ramping up the capacity of our career conversion programmes to more than 14,000 places this year. So, taken together with the Jobs Support Scheme (JSS) and the enhanced Hiring Incentive, the out-of-pocket costs of employers for hiring and training new workers are significantly reduced.
For others who are cautious about hiring, do consider the traineeship programmes. I encourage you to offer as many positions as you can. Not only will you benefit from the additional manpower to meet your business needs, you will also help trainees pick up useful skills and work experience.
The Government will also subsidise the costs of providing these traineeship opportunities by funding 80% of the traineeship stipends. Employers only need to fund the remaining 20%. Host companies can indicate their interest at the SGUnited Traineeships page on WSG's website.
Many employers may face short-term difficulties. We fully understand. Member of Parliament Patrick Tay expressed concerns about unfair practices on the ground, and I share his concerns. While it may not be easy, employers should be fair to their workers during hard times. The Government has provided significant wage support under the JSS to offset and protect local employees' wages. Employers should act responsibly and fairly. Those who put local employees on mandatory no-pay-leave or retrench them will not be entitled to the enhanced JSS pay-outs for those employees.
The updated Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment and National Wage Council's guidelines issued in end-March provides guidance on managing excess manpower responsibly. Where there is a need to reduce wages, managements should lead by example, and seek the consent of the unions and engage employees.
Employers should take the lead to help their workers reskill and support business transformation plans. Employees have often been worried about training while working. For some, it is whether they can find time to go for training without disadvantaging themselves at work. Others may find it difficult to identify relevant training to improve their career prospects.
Employers should come in to provide guidance. They are best placed to identify relevant skills required for their business transformation strategies. It is also a good opportunity to send workers who would have not otherwise have gone for training to reskill. Moreover, employers can reskill their existing workers at a low cost by tapping on Government support.
Employers can send existing workers to participate in job redesign programmes, a type of PCP to help existing employees take on new roles or redesigned job roles in the same company. Many employers think that PCPs are for workers to transit to new sectors, but there are also PCP programmes that employers can adopt in their companies. And the Government provides up to 90% salary support and course fee subsidies.
All Watches Private Limited is an employer that is reskilling their workers for enhanced job roles to support their digital transformation plans. They are ramping up its online e-commerce platform given the shift in consumer behaviour and increase in demand for e-commerce. Through WSG's Job Redesign Reskilling Programme for the Retail Industry, 11 workers are gaining relevant digital skills. For instance, their retail team leaders will gain skills to understand online and offline customer behaviour and to develop and implement offline-to-online strategies in enhanced Customer Service Leader roles.
I encourage employers to consider this option. Not only would employers keep their workers at lower cost, their workers will emerge with new and relevant skills to support their business transformation and growth.
Mr Speaker, before I conclude, let me address Mr Zainal Sapari's points on lower wage workers, particularly those in essential services.
The COVID-19 outbreak has highlighted the importance of the work done by our essential workers, many of whom come under the Progressive Wage Model (PWM). For the majority of them, their workloads have increased during this period, and we applaud and appreciate their efforts.
Indeed, this is an important group. MOM and our tripartite partners have been working hard to uplift this segment. To support our lower wage workers, we have recently enhanced Workfare to benefit more workers and also provided a special Workfare Special Payment (WSP) payout of $3,000 as a result of the COVID-19 situation. The first payout of $1,500 will be made in the next month, with the second payout of $1,500 in October 2020. In these times, it is imperative that we bolster support for our lower wage workers.
Mr Zainal co-chairs the tripartite committees to review and enhance the wage and skills ladders in sectors under the PWM today, so that our workers can enjoy better wages and be more productive. These efforts are complemented by the sectoral tripartite partners' implementation of the various industry transformation maps, such as in the security and environmental services sectors. These will leverage technology to raise our workers' productivity.
MOM is and will continue to give our fullest support to these important efforts.
Assoc Prof Walter Theseira said, and I quote, \"the unseen engine behind global cities worldwide is a vast army of essential workers, who are frequently paid too little to live next to those they provide services to\". I fully agree. As a society, we must uplift our lower wage workers and bridge inequality. I believe that our society has matured enough that we would not turn a blind eye to this group of workers, and recognise that they too, should be paid fairly for the essential work that they do. This is the right thing to do. But these efforts will not be able to come to fruition if we do not have the support of the wider community.
At the end of the day, all of us would have to contribute towards the higher pay for these workers by sharing the rise in cost of products and services.
The Progressive Wage Models (PWMs) have served us well in supporting our lower wage workers, which includes workers in essential sectors such as cleaning and security. Between 2013 and 2018, the real median monthly gross wages of full-time cleaners, security officers and landscape workers grew cumulatively by 30% or more, which is higher than the 16% for the median full-time income of resident workers. As Member Walter Theseira observed in his Budget speech in February, the PWMs have reversed formerly stagnant wage growth for lower income Singaporeans.
The vision of PWM was to create occupation, wage and skills ladders across all sectors. This will support our workers to up-skill, raise their productivity and earn higher wages. Given the positive impact of the PWMs, MOM is committed to supporting our tripartite partners' efforts to extend PWM to more sectors.
Earlier this year, we announced that the tripartite partners are extending the PWM to escalator maintenance workers. Members of the community have also voiced their support for essential workers during COVID-19. During my speech at the Committee of Supply debates in March, I painted a vision of how the PWM should be a broader movement where the community can play a part as responsible consumers, even in sectors where mandatory PWM is not possible. In this way, companies that voluntarily pay progressive wages and provide job progression pathways to their workers are recognised and rewarded by consumers who support them by purchasing their goods or services. This will in turn spur more companies to be progressive as the best way to advance their business interests. MOM will share more details when the economic climate and business conditions are more favourable.
I would like to move on and address Members' points on the vulnerability of lower-wage essential workers. Ms Jessica Tan spoke about the need to pay attention to the working conditions as businesses resumed operations, especially for the essential and frontline workers.
COVID-19 has resulted in significant disruptions to the demand and supply of outsourced services by service buyers and providers. This has in turn affected the livelihoods of workers such as cleaners and security officers.
The tripartite partners have worked closely to issue tripartite advisories to guide service buyers and providers on how all stakeholders can navigate the situation together to ensure the sustainability of these industries and protect our workers' livelihoods. These advisories guide service providers in properly remunerating their workers and urge service buyers to exercise restraint when activating penalty clauses or liquidated damages. This helps ensure that workers are paid appropriately based on their workloads and that their employers have the cashflow to pay them accordingly.
Service buyers and providers are also encouraged to reallocate manpower based on their priorities. This helps to manage the employees' workloads. Finally, employers are also urged to seize the opportunity to up-skill their workers by tapping on Government support, which will prepare them for future challenges and opportunities. By adopting these recommendations, our lower wage essential workers will be protected and employers will be able to tide through this tough period together with them.
Beyond this, we are also maintaining our efforts to uplift the well-being of our lower wage workers at work through the Workcare initiative. As I shared earlier, we will be launching a new Workcare Grant later this year to support building owners and employers to provide rest areas for outsourced workers – this, with a view to eventually legislating this requirement. Given the importance of their work, it is only right that we promote a culture of care and provide them with the respect they deserve. I would like make a call for everyone to play a part in supporting our lower wage workers and improving their well-being at work – that even small gestures can be meaningful.
The Government will always look after our lower wage workers through our social schemes. Initiatives such as Workfare supplements their wages, the Enhanced Housing Grant ensures that they have a roof under which their families can grow in stable environments and ComCare provides meaningful social support. We hope that everyone can support us in uplifting our lower wage workers and caring for them in the way they deserve.
Mr Speaker, I began my speech with how, in every crisis, lies opportunity. We must make every opportunity count. The Government is committed to supporting both our jobseekers and employers to ride out this storm and to emerge stronger. We will help jobseekers seize every available opportunity and employers are encouraged to use this period to build up a skilled workforce so that they are well-positioned for recovery. We can achieve this by working together as Singapore United.
Mr Speaker, allow me to share a few key points on the Government's support for employers and workers in Malay.
(In Malay): [Please refer to Vernacular Speech.] We will support Singaporeans fully. There are many opportunities in growth sectors, so I encourage those who are seeking jobs to be flexible and willing to adapt to access these opportunities.
Currently, there are conversion programmes to help you reskill to gain employment in new areas, including the SGUnited Traineeships Programme and the SGUnited Mid-Career Pathways Programme. These programmes can help you to gain industry-relevant work experience and build professional networks.
We have also introduced measures to help businesses cope during this trying period. I urge employers to be fair and responsible to their workers. Retain your workers, and tap on Government support to help your workers upskill, and at the same time, help your company transform for the future.
Mr Speaker, I am greatly heartened to see my fellow Singaporeans and community organisations stepping up to collectively complement the Government’s efforts to help employers and workers during this difficult period. These include the wonderful efforts by our Malay/Muslim community.
Under the SGTeguhBersatu Taskforce, organisations such as MENDAKI SENSE and the Singapore Malay Chamber of Commerce and Industry, or SMCCI, have stepped forward to further strengthen the last-mile delivery of national support measures and lead targeted initiatives to support the Malay/Muslim community on jobs, upskilling and digitalisation for businesses.
SENSE has organised three Virtual Career Fairs which have attracted close to 12,000 visitors. More than 3,400 people have submitted job applications and the total number of applications received have exceeded 8,000 applications. To date, the CariKerja app has received over 22,000 downloads. These figures indicate a good start.
SENSE will be scaling up their outreach efforts within the community, including to mature workers, fresh graduates as well as PMET jobseekers.
For our local businesses, SMCCI, together with technology partners such as Lalamove and Shopback, has helped their members to adopt new solutions that would optimise their businesses in areas such as marketing and e-payments. SMCCI will continue its efforts to conduct more capability development seminars so that our local businesses can make the move to innovate, transform and strengthen their resilience.
We can expect structural changes to the global and Singapore economy in the long term. As announced by Minister Masagos last week, I will be leading a new workgroup, comprising MENDAKI SENSE, SMCCI, NTUC, organisations from the public sector and community partners to support our Malay/Muslim workers.
This workgroup will support the efforts of the National Jobs Council, led by Senior Minister Tharman. Collectively, we want to build on the efforts of the SGTeguhBersatu Taskforce, to provide employment support for Malay/Muslim jobseekers, and to better prepare them and improve their employment prospects, by working with our partners and the Government. We will also strengthen our outreach efforts to prepare the community for the future of jobs. This includes mature workers, fresh graduates, the self-employed, and our asatizah.
We want to help our workers to upskill so that they can stay relevant and subsequently gain employment. With that, they will hopefully have better salary prospects. It is important for the Malay/Muslim community to be ready to seize any opportunities during this crisis and when the economy recovers.
Our path forward will be tough, but we will journey through it together. The Government will continue to support Singaporeans in adapting to new circumstances. With strong community support, we will work hand-in-hand to help workers and employers seize available opportunities, so that we will emerge stronger as one Singapore. Thank you.
Mr Speaker: Mr Pritam Singh
Mr Pritam Singh (Aljunied): Mr Speaker, when I spoke on the Resilience and Solidarity Budgets in April, my speech focused on the future. What would happen after the deployment of significant reserves to support lives and livelihoods? I also spoke about how COVID-19 had exposed inequalities – how the wages of some Singaporeans working in essential services need to go up – and what opportunities the COVID-19 crisis had engendered to reimagine a better Singapore.
For this Fortitude Budget debate, which once again calls for a draw on the reserves, I will focus on three \"E\"s – the economy, engagement and empathy.
First, the economy. While the central focus of this Budget was jobs, Deputy Prime Minister Heng's speech was instructive in my view for the restatement of three hard truths in the coming months. First, Singapore can expect some tough times ahead. On the day the Deputy Prime Minister delivered this Budget, MTI announced a downward adjustment of our growth forecast of -1% to -4%, to -4% to -7%. Second, the Deputy Prime Minister reminded Singaporeans that life will not return to pre-COVID-19 days, with the global economy unlikely to recover quickly. Finally, the Deputy Prime Minister's speech also reminded Singaporeans, \"that Government cannot carry businesses forever.\"
On the limit of Government being able to carry business forever, it is clear that companies and businesses will soon have to underwrite their employees' wages. This has hitherto been significantly supported by the Jobs Support Scheme (JSS).
With poor economic growth at the door, some business owners have shared with me that they have retained workers as long as they could, thanks to the JSS, even as other workers were emplaced on no-pay leave and have had to take pay cuts. As JSS expires in time, some retrenchments are inevitable.
To that end, the goal of the Government to accelerate digitalisation, up-skilling for the future and the creation of a National Jobs Council are steps in the right direction and supported by the Workers' Party. These initiatives cohere with an eye on the future and the transformation to a post-COVID-19-ready Singapore economy.
On jobs, Mr Speaker, the headline numbers vis-a-vis initiatives like the new SGUnited Mid-Career Traineeships scheme of 4,000 openings may not appear large next to the size of the Singaporean workforce, but they are an important source of hope for those Singaporeans who have lost their jobs or will lose their jobs.
Today, some Singaporeans would be downcast at the thought of how to finance or how to continue financing their mortgage and other commitments, or the opportunities they can or cannot provide to their school-going children when their own paychecks have dwindled or, in other cases, evaporated.
On mid-career workers, I hope the Government considers and incentivises more companies and businesses, through either rebates or reliefs, to offer more of such traineeships and opportunities to mid-career Singaporeans, so that they can learn new skills and embark on new careers.
Mr Speaker, more than $50 billion has been committed from the Reserves to fight COVID-19 in the matter of a few short months, more than 10 times the amount drawn from the Reserves during the Global Financial Crisis about a decade ago. Unlike the Resilience Budget, I noticed the Fortitude Budget did not include a line to say that the Government would be prepared to make further draws on past Reserves to deal with COVID-19, if necessary. In this regard, the employment of the Contingencies Fund in this Budget answered the question posed during my Resilience Budget debate speech, which queried whether the next Government would have enough fiscal firepower to deal with the effects of the COVID-19 fallout.
Nonetheless, I have a few questions for the Deputy Prime Minister on this count. It would appear that this Contingencies Fund would provide the Government with a significant buffer against post-circuit breaker uncertainties. What is of interest is the decision-making process behind the allocation of this amount. How did the Government settle on it? And on what basis was it justified to the President?
After delivering the Fortitude Budget, the Deputy Prime Minister was also quoted in the media as saying that Singapore's financial position will be a lot weaker in the coming years. This is a very significant comment on Singapore's fiscal health, the implications of which have not been discussed in public in a significant way thus far. Can the Deputy Prime Minister share more details on his thinking on this matter and what can the public expect in the short and medium term over the next five to 10 years, especially with regard to recurrent taxes and the social contract between people and the state.
This brings me to my second \"E\" – engagement.
Mr Speaker, when the first of four Budgets this year was announced by the Deputy Prime Minister on 28 February, I stated in my speech during the debate that as far as the Workers' Party was concerned, politics would take a backseat for a unity of purpose in times of the COVID-19 crisis so that Singapore could single-mindedly overcome this challenge. The Workers' Party has not come in to publicly criticise the Government on its handling of an unprecedented crisis in ways that would undermine the national effort. But Singaporeans have a right to expect a thorough review and accounting on the response to this public health crisis. Some, both in and out of this House, have suggested a commission of inquiry or some other independent body to review specific aspects of the Government's response thus far. Whatever the form such a reckoning takes in future, our position, as a constructive Opposition, requires us to communicate the feelings of Singaporeans on the ground in Parliament.
As we exit the circuit breaker, there is the perception that the Government's handling of the COVID-19 crisis has certainly not included adjectives more commonly associated with the Singapore Government, such as clarity and decisiveness. For example, there is a broadly accepted view that the public should have been told early and clearly, and not through illegal recordings behind closed doors, for example, that universal masking would prove to be a challenge in view of supply constraints requiring the Government to prioritise our healthcare and other essential workers. To this end, straight talk, especially on Singapore's limitations and shortcomings in managing the crisis, did not always define official Government communication on COVID-19.
There was a perception among some Singaporeans of a public confused with many piecemeal announcements, u-turns and positions that did not gel intuitively, like limiting the number of visits to parents and grandparents to two individuals, when public transport safe distancing rules had already been lifted. Other Members have spoken about the operational frustrations of businesses, like those in construction, and I will not repeat these. This morning, the Straits Times carried a story on COVID-19 regulations comparing hair treatments that go on for hours, contrasted with directives that prohibit beauty treatments that last more than 30 minutes.
For some Singaporean businesses, at times, it felt as if no one in Government was taking ownership of how COVID-19 directives would be perceived, interpreted and understood on the ground.
Then, they were higher order trade-offs and decisions that could have turned very differently in view of numerous unknowns associated with the spread of the virus. While other countries requisitioned mask supply lines, it would appear that Singapore resisted doing so, probably with an eye on the future so that international companies would always see Singapore as a reliable place to do business.
This must have been a tough call. But rather than getting the public to speculate about these decision making trade-offs, such as whether the possible shortage of reagents to ramp up COVID-19 testing far more quickly was a problem, the public was largely left to infer positions that ought to have been unequivocally made by the Government.
For younger Singaporeans, this crisis has been educational and revealing. COVID-19 has reinforced for some Singaporeans, if not exposed for others, especially younger Singaporeans, how reliant Singapore is on foreign sources of manpower and supplies. This is something commentators online would do well to remember when they speak ill or run down our neighbours. Malaysia closed its borders before our circuit breaker, resulting in a difficult adjustment for many Singaporean companies, both public and private, reliant on foreign labour. Can we imagine the psychological impact on Singapore had Malaysia stopped food supplies like vegetables as well?
Public crisis preparedness, such as a lack of understanding of emergency terminology like DORSCON also revealed gaps that need to be plugged in future. A belated explanation of Singapore having raised its DORSCON level to Orange in 2009 as a result of H1N1, ostensibly to temper panic-buying, and the jolting of memories about the existence of a rice stockpile could not overcome a distinct lack of understanding and preparedness about emergencies amongst many segments of the public. This is unlike the mindset of many Merdeka and Pioneer Generation Singaporeans who would recall emergency preparedness exercises, such as water rationing, for example.
Engaging more Singaporeans on the need to better compensate for, if not overcome, our limitations in key areas and reintroducing public emergency preparedness for psychological resilience, has been exposed by the crisis, and significant focus would need to be placed on this in future.
To that end, and critically, we must take stock of the entire economy and relook at sectors where greater self-sufficiency and buffer are required, especially essential jobs and services. Such a thorough review could potentially become a source of more job opportunities for Singaporeans, pegged at more respectable wage levels in some cases. I hope this is something the National Jobs Council can look at.
The last \"E\" I wish to talk about is empathy. We have experienced it in bucket loads over the last two months – a greater acknowledgement of mental health issues; warm cheers of support for healthcare frontliners from HDB flats and condominiums; more stories of Singaporeans offering the Food Panda or Grab delivery person water or a drink before he or she fulfils the next order; and the list goes on.
Singaporeans may have grumbled, but they got on with their lives in spite of the inconveniences of the circuit breaker and played their part in protecting lives and livelihoods. In addition, many younger Singaporeans have taken a great interest in those less well-off. This has been one of the seminal moments of the COVID-19 experience thus far. Volunteering to help distribute food to Singaporeans in need, volunteering to swab foreign workers, delivering laptops to families in need with school-going children, and so much more. In a crisis that this generation of Singaporeans will never forget, we saw the best of Singapore.
Mr Speaker, being able to put oneself in the shoes of the other is the very definition of empathy. And empathy is a significant source from which fortitude springs and a basis to call upon the cohesion and strength needed for Singapore to overcome challenges and odds. In response to my Resilience Budget speech and, specifically the reference to the New Deal in the US, Deputy Prime Minister Heng cautioned about localising schisms from the US where liberals support comprehensive relief and reform programmes, and conservatives oppose plans that are hostile to growth and business.
The Deputy Prime Minister would be aware that Singapore is not alien to diametrically opposed ideological perspectives and these have been present in Singapore for some time. The online discourse has, in fact, accentuated it. Another case in point is the recent response of various Chambers of Commerce on the calls made by Singaporeans to moderate the number of foreign workers in Singapore as a result of the COVID-19 experience. With many corporates and big businesses already perceived to be over-represented in our political ecology, be it through the grassroots or through their association in private-public national level committees, the Government needs to consider how it can become a better arbiter between different views, to give and encourage more space to our youths, NGOs unlinked to GLCs and trade unions, and the people sector to voice their contrarian views and perspectives.
This should be done while retaining a laser-like focus on fact-based conversations that portend a progressive future all Singaporeans can endeavour towards. To this end, we have some Singaporeans, including young ones, wondering whether we had done right by foreign workers, calling for an improvement of their living conditions, but only to be met by naysayers questioning their motives. In fact, COVID-19 has, paradoxically, vindicated a smaller group of Singaporeans who have been lobbying for improvements to foreign worker management policies for years. To that end, the Government's decision to quickly introduce guidelines for better foreign worker accommodation standards and the promotion of a more respectful culture between Singaporeans and migrant workers has been a very positive development.
In my view, Mr Speaker, we should count ourselves fortunate that we have citizens who are the loving critics amongst us, some of whom have been questioned in this very House in this term of Government. Members would recall one citizen's poems were nitpicked with a view to cast wholly negative aspersions on his character, even though that individual was not present in the House to defend himself.
Mr Speaker, when any leader or person of influence engages in what will be interpreted as dog-whistling, it sets the tone for how members of the public debate with those whose views they disagree with. If binary black-and-white perspectives are the shape of how we as a society deal with differences after COVID-19, Singapore will become an ordinary society, no different from many around the world. But nobody expects the Government to willy-nilly change its decision at the first sign of pressure and agree with a critic. Singaporeans do recognise the multitude of perspectives the Government has to take cognisance of, but it is important to recognise and not forget that citizens criticise and even organise, because they care.
Moving forward, the Government should look at opening more avenues like Parliament for citizen engagement, greater data sharing and empower other institutions like our think-tanks, and nudge the mainstream media to give alternative perspectives more voice and even provide platforms piloting change on a small scale. As we traverse the post-COVID-19 volatile, uncertain, complex and ambiguous (VUCA) world, we need to place more faith and promote even greater participation from Singaporeans than ever before.
In conclusion, Mr Speaker, COVID-19 has prompted many Singaporeans to ask fundamental questions about our economy and who we are as a people. As many Singaporeans will have to buckle down to take on new skills and jobs, COVID-19 has also provided an opportunity for Singaporeans to take a deeper interest in their country and their society.
This is a positive development, even as COVID-19 has hit Singapore while we contend with other pressing short and medium term issues, such as demographic shifts, technological disruption, climate change and, more ominously, the impact to our position as a global Asia hub from US-China competition and rivalry.
The economic picture may be bleak today and, for some, a moment of anguish. But as I had put forth in my response to the Resilience Budget, there are opportunities to reset some fundamental assumptions about the type of society we can endeavour and pivot towards. I use the word \"pivot\" because Singapore is a far more complex and varied economy and society than it was in 1965. The transition will demand everyone's participation, effort and energies.
But with the people determined and committed to the nation's recovery and success, COVID-19 is a golden opportunity for this generation to envision and build a better Singapore. Mr Speaker, I support the Fortitude Budget.
Mr Speaker: Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar): Mr Speaker, Sir, four Budgets in less than four months. Kudos to the Government and especially the MOF team who stitched the Budgets together.
The COVID-19 pandemic has caused more disruption than one can imagine – changing lives and livelihoods as we knew them to be. Economic activities have plummeted, the depth and speed of which rival that of the Great Depression. Experts worldwide cannot agree on how long the downturn will be. There is no telling what the recovery is going to look like – V-curve, U-curve, Z-curve, a smooth bounce-back, a slow-burn recovery or worse still, a relapse.
One of Prime Minister Lee Hsien Loong's favourite quotes during this season is by former British Prime Minister Winston Churchill who said this, \"Now, this is not the end. It is not even the beginning of the end. But it is perhaps, the end of the beginning\". Indeed, change has only begun even as Singapore exits from the circuit breaker. Many people, businesses and individuals, understandably are very concerned about how this recovery will look like. I therefore seek Deputy Prime Minister and MOF's reading of the pace of recovery and what the overall strategy would look like in the best case scenario and in the worst case scenario.
I want to move next to touch on two things. One, on the small and medium enterprises or SMEs; and two, on charities, the social service sector and the disabled.
First, on the SMEs. We all know that the SMEs form an integral part of Singapore's economic landscape, embodying the spirit of entrepreneurship of our nation and employing more than two-thirds of our local workforce. I applaud the Singapore Government's and especially MTI's relentless efforts in supporting them, even before the pandemic.
SMEs with a headstart and stronger technological capabilities are likely to recover faster from the pandemic. The prognosis of the rest of the economy will be uncertain.
A survey of 48 merchant associations representing almost 500 merchants was conducted in May 2020 by the Federation of Merchant Association Singapore's heartland enterprises unit. When the merchants were asked what challenges they face in joining the e-commerce wagon, as they put it, about half of the respondents quoted these two top challenges: one, the lack of their own internal capabilities to sustain the digitalisation efforts; and two, the cost of implementation and the recurring costs of digitalisation. Capabilities and cost, not only during adoption, but also in sustaining the efforts, remain their top concerns.
So, using a simple segmentation based on one's willingness to change and two, the ability to change, there appears to be four groups of SMEs.
The first group: those who are willing and able to change. I think they will benefit most from Government schemes and they include the early adopters and the high-potential start-ups that are targeted in the Budget. How will we facilitate this group more to help them scale further and to open more doors for and with them?
Group two: those who are able to change and not willing to change. How do we convince and incentivise them so more of them will come on board?
Group three: those who are not able to change and not willing to change. I think we have no choice but to let them exit. But how will we, considering that they are also Singapore SMEs, how will we help them exit with a softer landing?
The last group, which is likely the largest, those who are willing to change but not able to change for various reasons. This is the largest group for which the strategy has to be training and coaching. Sir, it is not enough just to convert them. There is a need, a real need to make them not just \"apprentices\" and also \"disciples\" so that more of them can sustain digitalisation efforts and continue to be successful as we emerge from the crisis.
Is there some way by which we can invest and handhold them longer and deeper? Pair them perhaps with not just simply Digitalisation Ambassadors, but Digitalisation Coaches who can equip them with more and deeper operational and systemic skills and knowledge in such areas like backend stock inventory management, customer fulfilment, digital marketing skills and so forth.
And finally, for those who eventually have to cease operations but nonetheless have the acumen and energy to continue, can there be, for the SMEs, an equivalent of a \"professional-conversion\" scheme, just like what we have for individuals, a placement scheme, to help them seize business or job opportunities in sectors that are more in the sunrise spaces like urban farming, logistics, warehousing, healthcare, estate maintenance and so forth?
Next, I want to move from business to the charities, social service sector and the disabled.
Sir, like the SMEs in Singapore's economic landscape, many charities and social service agencies or SSAs form an integral part of Singapore's social service landscape. The services range from serving the elderly to the young, families, they operate in nursing homes, day activity centres, family service centres, early intervention to special education schools.
I thank Deputy Prime Minister Heng for acknowledging the importance of SSAs and charities as, \"key partners\", especially in this period. Deputy Prime Minister shared that in the years ahead, a \"stronger social service sector will be even more critical\".
I want to also thank Deputy Prime Minister for including the charities and SSAs in the Fortitude Budget in many schemes, such as Job Support Scheme and the Enhanced Fundraising Programme to match donations up to $250,000 per charity. These are all appreciated.
I have several suggestions for consideration by Government for this sector and for the people served by the sector.
Suggestion one: raise the cap of $250,000 in the Enhanced Fundraising Programme for larger charities. Sir, the larger charities run into tens and hundreds of millions of dollars in budget. They run community hospitals and disability centres. And fundraising provides a substantial top up to Government grants and subsidies for them. For such a time as this, fundraising is expectedly very challenging. It is hence useful for Government to consider raising the matching amount in order to incentivise more donors to invest now, rather than later or never.
Suggestion two: for this sector is to target high needs areas. There are groups with high support needs which call for more attention and resourcing so that they are not left behind. Some are the more severely disabled groups, such as beneficiaries in the autism day activity centres where we serve the more severe ones, residential homes, such as that run by St Andrew's, families with rare disorders are kids with rare disorders and multiple disabilities and lower income households sandwiched by elderly and younger disabled. Target high needs areas.
Suggestion three: can we include more blatantly, more explicitly and visibly charities and the social service sector in the transformation masterplan of Singapore? Transformation of a nation is needed – not just in the business sector but also in the not-for-profit sector. Many of the push for digitalisation, innovation and entrepreneurship in business are relevant to the people sector. The willing amongst them, like the SMEs, require not only just Digital Ambassadors but also digital coaches and partners. Charities with high potential and good track records, should be facilitated and governed with a lighter touch. Let them thrive, let them push the boundaries to greater heights and support them in their transformation.
Suggestion four: include vulnerable groups such as the disabled right at the start of planning in all of the good things: the digitalistion, jobs and skills upgrading movement, including and not limited to the exciting plans for the new National Jobs Council, SG-United Jobs and Traineeship and SkillsFuture efforts. In fact, adopt the principle of what is commonly known now as universal design and design for all, right at the start. BCA and MND have already done so in the design of buildings and the physical built environment. The same should be applied in other areas as well in the protection and creation of jobs an skills upgrading. So, that is four – include the people sector including the vulnerable, the disabled; right at the start in the planning.
And suggestion five: the last one for this group, is to start a disability chapter in the National Jobs Council. It is no secret that jobs are already hard to come by for persons with disabilities during normal times. Commissioned by MSF Minister, Mr Desmond Lee, a workgroup that is led by Minister of State Sam Tan and myself is working on the underlying factors for this issue and a report will be published by the end of the year. The COVID-19 outbreak, however, adds urgency to the challenges faced by the disability community especially in the areas of digitalisation and jobs. I therefore urge Deputy Prime Minister and Minster for Finance Heng and Senior Minister Tharman to set up a chapter in the National Jobs Council for the employability training and employment for the disabled so that they will not fall further behind.
In conclusion, Sir, on the lost, least and last in society.
Sir, this battle against our common enemy, COVID-19, can only be truly won if we include whom some in our society perceive as the lost, least and the last amongst us. Let us not give up easily on those who are willing to change but not able to change for some reasons, whether they are SMEs, social service agencies, our elderly, our disabled or others who are vulnerable in our Singapore family. They say it takes a globe to fight this pandemic. And indeed, the globe includes us and it starts with each one of us.
Once again, I quote Winston Churchill who said, \"These are not dark days these are great days... we must all thank God that we have been allowed, each of us according to our stations to play a part in making these days memorable in the history of our race.\"
And I want to end off with a quote by our founding father of Singapore, Mr Lee Kuan Yew, of whom I know Deputy Prime Minister Heng is a great fan. Mr Lee Kuan Yew said this during the post SARS period, in his experience \"in any battle, the morale and the spirit of the people will decide the outcome. I never believed we would fail\".
Mr Lee Kuan Yew knew at that time it was going to be tough, like climbing up the face of a cliff. But we, like he said, \"must have the guts and determination to climb the face of the cliff and we will climb up the face of the cliff!\" And if I might add, with fortitude and not just the hindsight vision of 20-20.
Sir, we can only be #strongertogether. I support the Fortitude Budget wholeheartedly.
Mr Speaker: Ms Yip Pin Xiu.
Ms Yip Pin Xiu (Nominated Member): Mr Speaker, last week when Deputy Prime Minister delivered the Fortitude Budget, I had a moment of relief, as did many Singaporeans, to hear that the Government is helping to keep jobs and giving more support to businesses that might be struggling. The relief for sectors hit hardest and businesses still unable to open is very much welcomed. It has been months of hard work by the Government. Thank you for your dedication and to Singaporeans for playing their part.
Many businesses are affected during this period, with many unsure of their future.
This COVID-19 pandemic is causing unparalleled uncertainty across many fronts. One industry that I am immersed in is the sports and fitness industry. With the reliefs, businesses may have less worries for the next month or so but with the uncertainty of when they can resume operations due to safe distancing measures, or when Singaporeans will come back to sports due to their own personal concerns of safety, it is difficult for them to plan for the future.
This industry is having a tough time. Most sports and fitness activities stopped even before the circuit breaker started as there were already other measures in place to flatten the curve at that point of time. Most gyms and studios have frozen or adjusted their memberships to retain clients, while some are conducting online classes. Planned events from competitions to fundraising events have been cancelled. All these had led to significant revenue loss across the sector.
These are businesses that keep our society healthy and resilient and the COVID-19 pandemic is putting them at a risk. Sports and fitness helps to build a stronger national identity. It improves our health, productivity, reduces medical expenses and enhances social cohesion. Sports and fitness are for people of all ages, abilities and walks of life.
More importantly, the Sports and Fitness industry is one of the industries that has a huge knock-on effect to the rest of the economy since the Sports and Fitness industry is not just about people exercising or playing games – it also involves many other sectors and businesses such as tourism, retail, events management, marketing, sports education and training, support services such as Public Relations, fundraising and so on.
I understand that we must now proceed with caution as we slowly emerge after two months of circuit breaker measures and I wholeheartedly agree with it. We do not want our efforts to go to waste. We must all still do our part.
The current JSS scheme supports businesses that are unable to resume when a circuit breaker ends, with 75% of monthly wages till August or until they open. When a Sports and Fitness industry opens. Again, it will receive 25% of Monday wages being in JSS Tier 3. However, there will be many safe distancing measures in placed. For example, only being able to have one person per swimming lane or the spacing between each individual has to be huge, hence, only accommodating six people in the studio at all times. This cut in numbers will result in a low income coming in. The Sports and Fitness industry is finding it difficult to survive. Now, as they already had to dig in the reserves for the past two months or so. Besides paying their employees who may have already taken a pay cut, there are also other expenses. If unable to cope, these schools and clubs might start closing down and it will affect our pipeline as the schools and clubs are an important pathway for our sporting performance.
Right now, what will be helpful is if we have a clearer view. When Phase Two comes, outdoor sporting facilities can open again. Sports and Fitness is a highly varied industry, with many different kinds of activities – from outdoor sports, to personal training sessions, to tennis where players stand on opposing ends of the court, to swimming, to indoor activities such as yoga and kickboxing.
There are questions that many businesses are asking – when the numbers remain low, what will the plan be? What about indoor facilities and when these facilities can start again, what will the most number of people be allowed in at any point in time? These details will help this industry be more certain and help the industry chart the path ahead.
With all the positives that this industry brings to Singaporeans, we still want to see them around after the COVID-19 pandemic so that they can continue contributing positively to the community. If we continue doing our parts to keep each other safe, we can look forward to getting back into sporting activities safely. The rest of the services associated with the Sports and Fitness industry that I had highlighted above would also be able to better plan their respective businesses and know how to react to the new norms when the time comes. We will all have to adapt to a new kind of normal, to include safe distancing measures and ensure we come out of this stronger.
We talk about digitising in times like this. However, the Sports and Fitness industry is one of the sectors that is harder to digitise, as its very essence is to get people to go out and be active, healthy and interact socially. Yes, payments can be done online, some activities can shift online but It will be hard to do things like instructions online especially for our younger, older and special population groups that require a greater level of supervision. Certain activities that require a physical medium like swimming, will also lose out, because, say for example, why would parents want their children to do land activities online for swimming classes when they can take up a land sport instead? Some businesses need more help than digitising.
For those that can find a way to digitise, the Enterprise Innovation and Capability Development Grant was announced a week ago. This grant supports businesses that can come out with innovative and smart solutions within the sport industry. We eagerly await the application instructions.
More importantly, this is also a great opportunity for the Government to take a more holistic approach in improving the entire industry and provide the infrastructural approach and guidance to help the industry grow. This could be done by taking a more inclusive approach in education and towards the sporting enterprises, to help them grow together with this economy.
More emphasis needs to be placed on sports in Singapore. Starting from our schools. We must create an environment where sports is a bigger part of the curriculum from kindergarten all the way through Junior College and Polytechnic. Sports is nowhere near the top of our priority list, but what we learn from sports will also play a big part in our education. Institutions should embrace sporting values into their own culture. When we adequately and holistically impart the fun and advantages of sport in them at a young age, it helps to translate into lifelong participation in sports.
Personally, being actively involved in sports since a young age has helped me greatly. My parents saw the value in sports. It has not only helped me physically but also mentally and emotionally. When I was younger, I was not a very good student. I did not get good grades, but after winning a gold medal at the Paralympics in Beijing, I came back and did my \"O\" levels. I did not hit my expectations but thankfully I managed to get into Polytechnic. Then, I thought to myself, why not use the perseverance, grit, focus and everything I learnt from swimming to apply to my studies? I was then laser focused on getting my grades up and started to do pretty well and eventually got into SMU. If not for swimming, I would not be where i am today.
When kids start participating more in sports, their families watch them play and that helps with family bonding. This leads to a more supportive family and community. Parents are our first sport coaches and they impart social and family values through play. Similarly, as we age, other important values can be imparted through sports.
For the sporting industry to be sustainable in Singapore, we must create a stronger industry with more opportunities. For our sporting culture to grow, the Sports and Fitness industry must grow too. Sport Singapore has done a commendable job with Active SG, Singapore Sports Institute, Sports Cares and more. We have amazing facilities and host world class events. We must continue our efforts and continue to improve by growing the sports industry.
As a regulator, an approach would be to work closer with the private sector to enhance capabilities, resources and business opportunities. Sports and fitness businesses are an important pillar of this industry as they bring expertise, knowledge and organised play to the table. They employ passionate Singaporeans that are constantly shaping the lives of people of all ages and backgrounds. And we need them to thrive so as to achieve the outcomes I spoke about earlier.
One of the ways is to provide them access to the many facilities that we have developed over the years. We have many facilities that are largely reserved for use only by the public sector. Opening up access would create more opportunities for the industry to grow.
More importantly, to build sustainability, we also need to accelerate the growth of businesses who have great potential. For these companies, we could offer support for growth, examples include upskilling of workforce, hiring of middle aged educators who are looking for a career switch, support for programme or curriculum development and support for new market development.
Another approach is to take a more inclusionary path in organising the Sports and Fitness industry. SportSG as a regulator has done a fantastic job with its various initiatives to get people to participate in sports. However, the impact may be greater and faster, if we allow the Sports and Fitness industry operators to help in this process. One of the ways we could do this is to allow the Sports and Fitness industry to fill in the gaps and allow them to grow, rather than to take a one size fits all approach. In the long run, we will have a more vibrant, sustainable sporting Singapore.
Mr Speaker, the next group of people that I will be speaking for, are some people that tend to be left behind because they have more specific circumstances and needs that you might not think about unless you were in their shoes. In this period of time, how many Singaporeans have thought about how somebody who is blind and living alone while observing safe distancing measures is coping? If a student with muscular dystrophy needs an oxygen tank with a breathing mask and their teacher asks them to put on a face mask or shield, which would mean that they have to take the oxygen tank off, so that the teacher does not get into trouble for not observing the measures. How would this affect the student and their family?
In times like this, it is especially crucial to look out for those who may be struggling more than others. I recognise that SGEnable and Social Service Agency partners are helping people with special needs and the vulnerable in the community. I see the C.A.R.E initiative by Mediacorp Enable Fund aiming to help people with disabilities and their care-givers ride out the COVID-19 pandemic as the impact on this community has been, in their words \"disproportionately huge\". This fund is driven by public donations and we greatly appreciate that. Together, we can all continue playing a part to ensure no one falls through the cracks.
The lack of information to certain disability groups in Singapore is counter-productive to the effort in combating the COVID-19 outbreak. The right to information is crucial for ensuring public awareness, trust and fighting misinformation.
We have to ensure that public health information and communication is accessible on all important media publications. It would be ideal if a Singapore Sign Language interpreter is present for all live, recorded events and communications. This includes national addresses, press briefings and live social media. I am happy to see that the Budget speech last week included Singapore Sign Language and live notes. Over the weekend, I was watching a live panel discussion on social media – Get Active TV that featured Minister Fu and SportSG. They too had a Singapore Sign Language interpreter and live notes. I am very heartened at this great development and hopefully this can continue on all other updates and media during this time and beyond. We look forward to a time when all media comes with live Singapore Sign Language interpretation. This is important because that is the first language for many people who are deaf.
We need public materials that can be converted into \"Easy Read\" format so that they can be accessible for people with cognitive impairment. We need to develop accessible written information products by using appropriate document formats with structured headings, large print, braille versions and formats for people who are deafblind or visually impaired. The images we put out out there have to be inclusive and enable the independence of Persons with Disabilities (PWDs). For example, the current level of safe entry QR code tends to be placed a bit too high. A consideration could be to place it at varying easy to reach heights as we have done so with many lift buttons.
Next, supermarkets have done a great job at dealing with the increased demand and restocking of shelves. The priority shopping hour for vulnerable groups is a great start and we hope that persons with all disabilities can access this, including those with invisible disabilities. Some PWDs find it difficult to go to supermarkets because they are staying at home due to having compromised immune systems. Hence, other than a priority shopping hour, introducing priority delivery slots will also help. Many PWDs are finding it hard to get deliveries. This may be a combination of there not being enough slots as well as the accessibility of websites not being optimal.
Other than food, access to medical prescriptions and other health care supplies are highly essential as well. Existing volunteer networks can be activated to help deliver these supplies. If possible, doctors should be able to see their at-risk patients online for check ups because they are afraid of going to hospitals to get exposed yet they do need to see the doctor for their regular check up.
Besides medications, some disabilities require more home care and physiotherapy services. These services cannot be stopped as it will bring detrimental results mentally and physically to PWDs and their family. In some cases, not getting their physiotherapy will result in irreversible loss of muscle or contracture which will permanently impact their quality of life. In just two weeks' time, they would have permanently lost quite a bit of function.
Employment of persons with disabilities remains relatively low in Singapore and for those that are employed, not all are fortunate enough to be able to execute their work from home. The main issues for PWDs working from home are whether their employers can adequately physically and financially provide the assistive devices and technology they may need to work at home. Many themselves are not able to do so because of their socio-economic challenges.
For PWDs whose job scope used to be done predominantly face-to-face, the added need for technology to be able to potentially do the work online would mean increased spending. While there is an existing Assistive Technology Fund for Persons with Disabilities, it is a reimbursement fund tied to means testing and the reimbursement can also take up to three weeks which may not be a feasible option for those who are struggling financially. Schemes such as NEU PC to provide laptops to students from low-income families are welcome. However, assistive technology and aids are usually more expensive to purchase. This translates to a loss of income and opportunities to retrain or learn new skills.
Socially, the lack of access to IT equipment can mean missing out on opportunities to maintain or grow connections with friends and families. This can in turn negatively impact those with psycho-social disabilities, increasing mental stress and straining existing coping mechanisms.
As we are encouraged to work from home or have home-based learning, what assistance is being provided to ensure that the assistive technology is available in all homes for persons with disabilities? Many of them face socio-economic challenges and may not be able to afford IT equipment, assistive aids and broadband to help them better cope with life in this period of time.
Persons with disabilities who had jobs that cannot be done online or had difficulties finding employment before the COVID-19 pandemic are even more concerned that they will not be able to return to work or get a job. They are also concerned about the accessibility or inclusivity of job training and retraining programmes.
The financial assistance provided by the Temporary Relief fund, COVID-19 Support Grant and other schemes such as SIRS are greatly appreciated.
Those with disabilities already often have higher healthcare and personal care costs and these costs are likely to increase as alternative or emergency arrangements are made during the circuit breaker or the phases after that. In addition, some PWDs rely on informal and temporary work arrangements and as such, do not strictly fit into the eligibility requirements of SIRS.
Taking that into consideration, can the Government consider extending the amount that is given and the duration of the relief for persons with disabilities or increasing the eligibility to those with higher household incomes?
Lastly, it is important to have a disability touch point for the COVID-19 response. Having a touch point within the Government or related agencies where persons with disabilities, their care-givers and organisations can feedback on the accessibility of COVID-19 response information and measures is key. We need a fast response as a delay might cause harm to some individuals in special situations. This touch point ensures that there is two-way communication about the COVID-19 response and we can identify the gaps quickly and share best practices. The best way to find out what people need is to ask them.
In this pandemic, we have to look out for all so that we can truly be an inclusive and united Singapore. I support the Budget.
Mr Speaker: Mr Chee Hong Tat, I believe you have a clarification.
The Senior Minister of State for Trade and Industry (Mr Chee Hong Tat): Mr Speaker, I would like to clarify a point that Mr Pritam Singh made in his speech earlier regarding public communication on the use of masks.
Sir, since late January this year, during the initial period when the virus first emerged in Singapore and even before the virus was called COVID-19, the Government had already started explaining publicly our position on masks. We explained to the public that there were supply constraints globally and some economies have in fact banned the export of masks. We then called on Singaporeans that we have to use masks appropriately. Please do not hoard so that we will have enough supplies, especially for those groups that need them most.
Sir, what I have just said are based on media reports and information that can be found in the public domain.
Sir, this Government has always been open and transparent with Singaporeans in our explanation and in our communications. When there is new information, there is new evidence, we would likewise adopt an open and transparent manner in our communications because we know that is important in our collective fight against this pandemic.
Mr Speaker: Mr Singh.
Mr Pritam Singh: Mr Speaker, I would like to thank the Senior Minister of State for that clarification. In that vein, can I ask the Senior Minister of State, with regard to the decision earlier this week to stop usage of face shields except for certain classes of individuals, how was that decision originally taken to allow for face shields and then, a u-turn made thereafter to limit it to specific classes? How did that information change from the health experts I imagine that the Government has access to?
Mr Chee Hong Tat: Mr Speaker, I think the Multi-Ministry Task Force or MTF has explained why there was a change in the advisory on the use of face shields. This is as Mr Singh himself alluded to – based on the advice from medical professionals.
Mr Pritam Singh: I understand that, Senior Minister of State. Can I ask what were the reasons given by those experts for that change?
Mr Chee Hong Tat: Mr Speaker, I am not a doctor, so I am not equipped to provide the medical reasons to answer Mr Singh's question in detail —
Mr Speaker: Mr Gan would like to elaborate.
Mr Chee Hong Tat: But I think the MTF and the medical professionals have provided the explanation. It is about safety. It is about protecting everybody's health and safety.
Mr Speaker: Minister Gan Kim Yong.
The Minister for Health (Mr Gan Kim Yong): Mr Speaker, perhaps I could assist in explaining the rationale behind that. As we move into Phase One of our opening, we will see increased interaction within the community, among people. And therefore, we will have to make sure that additional safeguards are put in place. Given that face shields do not provide a full coverage of your face, your nose and your mouth because there are gaps between the shield and your face, it poses certain risks.
These risks are less of a concern during the circuit breaker period when most people are asked to stay home. Therefore, we allowed face shields to be used. But when we open up the community and the economy, we expect more interaction and therefore, we need to enhance the protection where possible. Therefore, we encouraged people to use the full-face mask instead of a face shield.
But we still allow face shields to be used in specific situations where mask-wearing is not practical. One example which we gave was during teaching. Teachers need to make sure that their teaching is clearly heard and it is important for them to see and to interact with the children. We have therefore allowed face shields to be used for teaching. But in other circumstances, we will require a mask to be used.
Mr Speaker: Mr Chee.
Mr Chee Hong Tat: Mr Speaker, Sir, I just want to reiterate the reason for my clarification in the first place was to highlight that the Government has been open and transparent in our communications on the use of masks since the beginning – since the late January period when the virus first emerged in Singapore. I think that is really my key point – that we have publicly explained that and these are all in the public domain.
Mr Speaker: Mr Darryl David.
Mr Darryl David (Ang Mo Kio): Mr Speaker, Sir, the measures introduced in our four Budgets thus far have been designed to provide short-term measures and immediate relief to save businesses and preserve livelihoods and jobs, as well as to accelerate the long-term transformation of Singapore's socio-economic framework and foundations, so that we, as a country, can emerge stronger from this crisis.
While there has been a comprehensive range of schemes and measures rolled out, I would like to focus on a few key areas in my speech.
The COVID-19 pandemic has seen the Government take bold, unprecedented steps to help our businesses stay afloat. As most of us know, two of the biggest overheads that businesses must manage are manpower costs and rent. To support manpower cost and to save jobs, the Government has introduced the Jobs Support Scheme and either waived or provided rebates on manpower levies.
To help companies manage rental cost, the Government first introduced several measures such as rebate on property tax and waiver of rental for tenants of Government properties.
More significantly, this is now being reinforced with proposed legislation to mandate commercial landlords to grant rental waivers to their SME tenants who have suffered a reduction in businesses due to COVID-19. This is rare in Singapore's context as the Government does not usually engage in direct intervention of the market, especially in private business arrangements. But this is not a common crisis and this uncommon step of intervening demonstrates the commitment of the Government to help SMEs weather through the storm.
I am in firm support of this and while this is a positive boost for SME tenants, there is also the possibility that a significant number of smaller landlords could themselves be small companies or even individual owners who are dependent on this rental income to meet their income needs and financial commitments. Waiving the rental income for their tenants might thus result in them being deprived of revenue or even being slapped with penalties from financial institutions because they are unable to service their loans.
What help and support would the Government be able to provide smaller landlords in such situations? And if these smaller landlords are unable to fulfill their financial obligations, would the Government be able to intervene to mandate that financial institutions perhaps could suspend loan repayments until this group of landlords are able to start collecting their rental income?
I would like to move on now, Mr Speaker, Sir, to helping workers and those who have lost their jobs.
Despite all the measures that we have put in place to support companies through COVID-19, not all companies will survive the downturn and the global economic slowdown. Retrenchment is thus imminently unavoidable. It is heartening to know that one of the major thrusts of the main and supplementary Budgets is to preserve jobs and a new National Jobs Council will be set up to look at job creation and the deep skilling of workers.
COVID-19 has transformed the way we think about work. In many countries, what was traditionally known as \"3D jobs\" – dirty, dangerous and demeaning – are now considered as important services that keep countries going, that keep communities going. Frontline jobs that were not given much attention in the past are now being recognised as being operationally essential.
Singapore is no exception. COVID-19, indeed, has created some jobs that were unheard of prior to the pandemic. In January this year, we would have no clue what a Safe Distancing Ambassador, a test swabber, a swab assistant or a temperature taker was. But they have now entered the lexicon of our everyday use – in terms of the language that we use. Indeed, as reported in the media this week, we will soon have Digital Ambassadors to help hawkers and senior citizens to learn digital skills.
These jobs were clearly created out of the need to manage the challenges of COVID-19 and also help provide part-time employment to those who were made redundant by the crisis. In the mid term, certain jobs like Safe Distancing Ambassadors will continue to be relevant but in the long run, some of these jobs could be less necessary as we internalise the need to practise safe distancing, when a vaccine for COVID-19 becomes available or as we level up on the digital front.
To ensure that this precious workforce does not become redundant when these semi-permanent positions are no longer required, how can we future-proof the career paths of currently employed Singaporeans and to help our people retrain, up-skill and continue to pivot and shapeshift, as it were, to stay relevant as we respond to the new normal.
I sincerely hope that this is something that the National Jobs Council will need to consider as it balances short-term national needs with the long-term prospects for our people.
The next topic, Mr Speaker, Sir, is on digitalisation and education.
In the early days of COVID-19, there was a meme circulating that the virus was more effective than CEOs and CTOs in pushing for digital transformation. This meme turned out to be quite prophetic and in the past few months, we have seen companies accelerating digital implementation and making remote work platforms mainstream in somewhat record time.
The same could be said about our schools. Since the start of the circuit breaker, school-going children across all age groups have adopted home-based learning. It was reported that more than 96% of students are participating in it. On the one hand, this figure is encouraging as it shows that our children have adapted well to learning on digital channels. Yet, on the other hand, it was reported that MOE had to loan out thousands of computing devices and internet dongles to families. These figures suggest that there is a gap in accessibility to digital learning.
It is heartening to know that MOE intends to accelerate the ownership of digital learning devices for all Secondary school children from their initial date of 2028.
However, I would like to clarify if there are similar plans to accelerate the ownership of these devices for children from other levels of study – so not just Secondary school students and above, but perhaps for Primary school students. And more critically, if there are, will this device be purchased off-the-shelf and supplied by different tech companies or will it be a proprietary device uniquely designed and manufactured by MOE for our schools and for our school children?
I am strongly advocating for the latter, Mr Speaker. In addition to have the opportunity for Singapore businesses to benefit from both hardware production and software development, the benefits to our children will be myriad.
With more control over the design and functionality of this device, this all-in-one custom-designed learning device could function as a lap-top, a tablet, an e-text book, and a communication tool. A veritable digital \"Swiss-Army Education Knife\" of sorts.
The ownership of this multi-function device might also eliminate the need for piles of back-breaking, physical textbooks year after year after year. Going to school in the future could be as easy as just bringing along this device and all forms of learning and work submission can be done digitally on a unified platform. Quite literally, we are putting the world in the hands of our school children. The software could be customised and adapted to suit the pace of learning for different children while also providing personal insights to how each student engages and interacts along the learning journey.
Mr Speaker, Sir, I envisage the schools of the future to be one where students would do everything off this device. The operating system of this device could function like an enhanced version of the MOE's present Student Learning System (SLS) and would allow for more coordinated and unified communication and work planning. This would meet the twin goals of being environmentally friendly while also taking a huge step towards being a digital smart nation.
We could tier the ownership cost of the device depending on varying household incomes, with the aim that no school-going child should be deprived of their own personal learning device. No school-going child should be deprived of their own personal learning device. This would give our children, especially those from lower income background, a sense of pride and ownership that they have their own personal device that will allow them to navigate the same digital and virtual education landscapes as their peers. The deliberately neutral branding also encourages status equality, not to mention standard software and hardware upgrades that will leave no child lacking.
Mr Speaker, Sir, I know that this might seem like an audaciously ambitious idea, but aiming high and overachieving is something that Singapore has always done. So, I urge the MOE to give this idea a serious thought and I look forward to the day that not only can we ensure that every student – every student is provided with their own personal Smart Learning device, but we can take pride that this device was designed and produced by our MOE, specially for our children. Singapore could very well be the first nation in the world to achieve our vision of \"smart learning.\"
Mr Speaker, Sir, 2020 will no doubt go down in memory as one of the most volatile years the world, and Singapore, has experienced. Yet in every crisis, lie opportunities to innovate and transform and the past 100 days have certainly seen our companies and schools doing just that, as they have experimented and innovated with new methods of doing business and conducting lessons.
As Singaporeans, we are a resilient people. And we can be masters of our own destiny and forge our own uniquely Singaporean path through this crisis. With the Government playing a pivotal role and strengthening its commitment to the people, I am certain that we will emerge as a stronger and more cohesive society after COVID-19. I thus conclude my speech in firm support of the Fortitude Budget.
Mr Speaker: Minister Desmond Lee.
The Second Minister for National Development (Mr Desmond Lee): Mr Speaker, Sir, COVID-19 has disrupted all sectors of the economy including construction. During the circuit breaker period, most construction work was suspended. Post-circuit breaker, contractors are anxious to resume work quickly. Many have paid for material or are leasing equipment which are now sitting idle and since contractors are typically paid based on progress payments, no work means no payment; and we understand then anxiety.
While we want to resume construction activity quickly, it is equally important that we do so safely. The vast majority of our COVID-19 cases have been amongst construction workers. So, we do not want to restart hastily as a new case could easily cause another outbreak or new cluster among construction workers either on a construction site or in the dormitories.
Such a resurgence of infection would not only endanger the health of our workers and the wider community, but also bring the construction industry to a halt to get. This is not in anyone's interest. It is in our common interest for construction work to resume in a phased and controlled manner.
We had the first tranche of projects which could not be left idle for long because of safety reasons. These have been allowed to restart from 2 June. Beyond this list of projects if firms have cleared workers and have put in place necessary safe management measures, firms can submit their applications to BCA and once approved they will be able to resume their projects.
On the Government end, my colleagues have been working hard on multiple fronts to allow construction activities to resume faster.
First, the inter-agency Task Force has been systematically and progressively clearing workers living in dormitories to ensure they are well so that they can return to work. Many contractors have shared with us their frustration about not knowing what is going on in the dormitories, as workers have been moved around several times during these few months. They would also like to know in advance when their workers can be tested and cleared for work so they can make plans for the projects to resume. They have asked for more information and updates on the dormitories' clearance situation.
Members would recognise the scale and complexity of the Task Force operations as there are 43 purpose-built dormitories and more than a 1,000 factory converted dormitories and construction temporary quarters housing more than 300,000 workers and the outbreak situation each dormitory is different.
Earlier this week, MOM announced the first batch of 60 cleared dormitories. And another 111 are due to be cleared in the coming weeks. We will provide more regular updates to our industry, including a rolling forecast of the dormitory clearance schedule to help employers and their clients plan ahead.
For workers living in the community, we have also set aside testing capacity to test construction workers regularly to ensure the health and safety and that of the wider community. Er Dr Lee Bee Wah has shared concerns of contractors with the latest MOM announcement on foreign worker levy rebates. We understand the concerns. Government's intention was to enable workers to be temporarily seconded to other firms to optimise manpower distribution, so that more projects can restart sooner.
However, firms have given feedback about this. For example, some of them may require their workers for their own projects that are about to start and cannot second their workers to other projects. MOM and BCA will review this and we will work with them and the industry to find better ways to achieve this optimisation for the benefit of the entire sector.
Next, on foreign worker accommodation. Er Dr Lee asked about the new requirements for existing factory converted dormitories and construction temporary quarters. Let me clarify that these requirements are not compulsory. We have piloted the new space norms for new quick build dormitories that will be put up by the end of the year and we have been working with industry associations to make sure these requirements are practical, even as we seek to achieve safety and will be prepared to consider further inputs.
So far, we have approved more than 20 requests from contractors who wish to build new CTQs or FCDs for their workers and will continue to facilitate such requests where possible. We have received feedback that the COVID-19 restart criteria for construction are stringent. Let me try to explain why we need to be careful.
There is a project with a single owner on a single site with all workers staying on site. The workers have not left the site since end March, even before circuit breaker. Full attention was given to protection and safety by all levels of management, such as ensuring proper segregation among workers, including not allowing workers from different levels of the dormitories to mix.
Yet that project had an infection prevalence rate of close to 30% amongst its workers. I share this example which was shared with me to show how infectious disease is and how difficult it can be to prevent spreading from a single case to affecting many more who live and work together. So, imagine how much more challenging in might be for projects with workers living in different accommodation or having to move between different sites, as is the case with many projects with main contractors and several layers of sub-contractors and specialist contractors. But we understand the concerns of companies and will work closely with the industry associations at firms to look at the requirements to ensure that they are practically implementable.
We are also providing training to help companies put in place safe management measures by offering a course for safe management offices or SMOs. In the month of June alone, BCA and SCAL will train close to 20,000 such officers. BCA will give priority to train SMOs for projects that are ready to start first. BCA is also ramping up capacity further through tech-enabled learning modules. So, please bear with us.
We know there is a lot of information that is being put out about COVID-19 related measures, sometimes from multiple Ministries and agencies, day after day. Given how fluid and dynamic the situation is, contractors have told us that they are sometimes confused, lost, overwhelmed.
To avoid the situation where companies do not know who to approach for information, BCA will be the point agency in Government or the one stop-shop front for all matters regarding construction restart. So, if companies have questions or concerns, whether about testing their workers or constructing new temporary quarters, they need to only approach BCA who will coordinate with other relevant agencies to make the necessary arrangements or seek the necessary approvals.
Because of the current situation, BCA has received a huge surge of calls, emails and queries, and we are ramping up our capabilities to better support our sector.
We understand that firms are very concerned about their finances during this period when the projects have yet to restart. Deputy Prime Minister announced during the Fortitude Budget speech that the construction sector will receive enhanced support under the job support scheme until August. And let me assure Er Dr Lee Bee Wah that similar to construction firms, the consultancy firms will also be eligible for the higher tier of 75% JSS support for wages paid between June and August this year.
In addition, companies whose foreign workers are not able to resume work will receive foreign worker levy waivers and rebates until July. Government has also announced rental offsets for qualifying SME tenants.
Even after construction projects restart, we recognise that firms have to bear additional costs to meet the new COVID requirements, which were not priced into the existing contracts. In the short term, the Government will help to bear the additional costs, including paying for the testing costs for workers. And in the long term, the Government will continue to support the construction industry and provide assistance to cope with the additional costs. We will share more details on the specific measures when we are ready.
We recognise the importance of the construction industry because without them, we would not have our homes, our schools, our hospitals and other services. So, we will do what we can to help as many companies as possible tide through this crisis.
And that is also why we have been working closely with our industry partners, such as a Singapore Contractors Association Limited (SCAL), the Specialists Trade Alliance of Singapore or STARS, and the Real Estate Developers' Association of Singapore or REDAS, to address the many issues that the industry is facing during this period. In fact, Minister of State Zaqy and I held a video conference meeting with them just two days ago. This was our third meeting in three weeks and we will continue to do so regularly.
I would like to thank Er Dr Lee Bee Wah and Dr Teo Ho Pin for also joining us in the virtual meeting on Wednesday where there were many constructive suggestions raised. For example, SCAL had earlier provided feedback that there are some construction S Pass and work permit holders who do not live in dormitories, work only in offices and do not visit work sites. In consultation with MOH, we agreed to remove the regular testing requirement for this group of employees.
There was also feedback that a company had to approach several different agencies to obtain the necessary approval to build new temporary living quarters or to convert existing workplaces and factories into living quarters. BCA has since set up a one-stop platform to facilitate such approvals. Participants told us at these discussions which involve a number of Government agencies being brought together are useful and we will continue to coordinate closely and keep our lines of engagement with industry open.
Assoc Prof Walter Theseira spoke yesterday about our dependence on foreign workers, including in the construction sector. Let me say a few words about this.
Our efforts to raise productivity in the construction industry has been ongoing for decades. In line with the construction industry transformation map under the work of the Future Economic Council or FEC, we have indeed been working with industry to reduce our reliance on foreign workers. But this will require major structural changes to the industry and to how construction work is done. We have been pushing for greater adoption of technology, such as through design for manufacturing and assembly, building information modelling and digitisation of the sector from end to end.
This will, in turn, create higher skilled jobs, including many good jobs for Singaporeans. For example, with design for manufacturing and assembly or DFMA, we will need more production managers, quality assurance personnel and logistics and supply chain planners and automated production facilities. Even our foreign workers that take on such jobs will need to be higher skilled.
However, the construction sector will not be able to reduce our foreign worker reliance to zero as there will still be many lower skilled jobs in the sector that Singaporeans do not want to take up. We appreciate the contribution of our foreign guest workers who have come here to Singapore to make an honest living for themselves and their families and it is incumbent on us to also take care of them when they are unwell.
Sir, many firms in the construction sector, including many SMEs are very anxious about survival and about their future. Let me assure you that our main priority is to restart construction quickly but safely. We will coordinate amongst various agencies and lean forward to provide information to you and work closely with your industry associations and with you to resume construction as soon as we can and work together to transform our sector in the medium to long term.
Mr Speaker: Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon): Thank you, Sir. I would like to take this opportunity to thank Minister Desmond Lee and Minister of State Zaqy for coming in to bring all parties together and trying to help contractors work through the process. And I am very heartened to hear the strong support that the Minister just mentioned given to the construction industry. Thank you very much.
Mr Speaker: I thought you had a clarification. But thank you anyway. Mr Mohamed Irshad.
Mr Mohamed Irshad (Nominated Member): Mr Speaker, I stand here today with mixed feelings. On one hand, I am relieved that the circuit breaker has officially ended. On the other hand, with no immediate end in sight to the COVID-19 battle, I am worried about what the next few months, rather years, have in store for Singapore and Singaporeans.
I speak for my generation and those young at heart when I say that there are many questions running through our minds. Are we in a grave situation? Yes, without a doubt. Have we faced a situation like this before? No, most certainly not. Have we been in a worse situation? Yes, we have in 1965. Are we facing an existential threat? No, we are not. Do we have what it takes to get through this and emerge stronger? Yes, I strongly and wholeheartedly believe so.
Sir, what gives me this confidence is that the Singapore story is replete with instances of major crises that have in some cases shaken us to the core. From a forced Independence to the communist threat to the racial riots to recessions to multiple global financial crises to even pandemics, we have come through it all. And it was those defining moments that have always brought the best out of our people.
As we deal with the immediate issues and pressing problems facing us, I remind myself, Members of this house and my fellow Singaporeans that COVID-19 is offering us a once-in-a-generation opportunity to make seismic shifts in the way we have been doing things. This shall form the crux of my speech today.
First, responsibility to the nation. Second, the future of work. Third, digital transformation and innovation.
I begin by speaking on the theme of our responsibility to the nation. As parliamentarians, we are collectively responsible for our nation's fiscal health. Mr Speaker, as I have previously mentioned in this House, one of the hallmarks of the Singapore brand is fiscal prudence pillared by accountability and responsibility. It is the reason why we are able to draw on our reserves and table an unprecedented four Budgets in four months.
Sir, during our Unity Budget debates earlier this year, several Members of this House raised questions about the continued health of our National Investment Returns Contributions (NIRC), which are now the largest contributor to the Government's coffers. In addition to COVID-19, we continue to face long-term pressures such as the geopolitical tensions between America and China, stagnating growth and more nationalist and protectionist tendencies around the world. Given that our reserves form the basis of our NIRC revenue, what is the projected revenue impact of this large drawdown? Additionally, how long do we expect this to last?
Mr Speaker, I must point out that the first and only previous instance when we had to dip into our reserves was in 2009. Then, when faced with a fast deteriorating global economic environment and the prospect of a deep and prolonged recession, the House drew down on S$4.9 billion from past reserves. And they only used S$4.9 billion. And a mere two years later, the amount drawn was returned back to the reserves in 2011. Today, Sir, we are drawing over 10 times more than what we drew in 2009. We owe it to our future generations to safeguard their future as our forefathers have done so for us. My third question thus echoes the concerns which I heard in this Chamber yesterday. Can the Deputy Prime Minister share his plans to return the money drawn back to our reserves in the years to come?
Finally, Mr Speaker, we must not be lulled into a false sense of security that our reserves are unlimited. Consequently, we cannot afford to be complacent in how the money is being spent. Even as Deputy Prime Minister has assured us that the Public Accounts Committee has been scrutinising Government's expenditure, we need to instill a mindset of \"active audit\" to ensure that funds channeled for the various schemes and projects are indeed being spent wisely.
Mr Speaker, this brings me to my second theme on the future of work. This crisis is an opportunity for us to re-imagine work. At various times, this House has debated the importance of improving our work-life balance and having a more sustainable way of life. Sir, this is our moment.
Our experience over the last three months has shown that being present in the office and having face-to-face meetings is not absolutely necessary for many of us. Members of this House and fellow Singaporeans will be surprised to know that the SGUnited Buka Puasa initiative involving multiple Government agencies, private companies and community organisations was conceptualised, planned and operationalised virtually, without even a single physical meeting. And I am sure there are many other such projects.
We have, within a very short period of time, adapted to working through video conferencing, private messaging, emails and even the good old fashion phone calls. To quote the CEO of a leading software firm, COVID-19 has resulted in two years of digital transformation in just two months. We need to build upon this rather than going back to old ways. It is time that we reconsider a new model for our companies. Allow me to offer some solutions and suggestions.
First, as we reopen the economy, we have to fundamentally rethink future job arrangements. I propose moving away from the traditional five-day work week to a four-day work week with the option of working from home on the fifth day and even having a flexi-hours work model. Established companies like Microsoft have demonstrated that a four-day work week can increase productivity by up to 40%. Twitter's CEO recently announced that it will allow its employees to work from home \"forever\". In New Zealand, a four-day work week to promote better work life balance and domestic tourism as a means to help the economy is being considered. As the Government prepares for Phase Two, we should re-evaluate our traditional model of work.
Second, I hope that after COVID-19, telecommuting will not disappear but will be a more permanent feature. As the Government prepares to work with our companies to begin the job creation process, it is incumbent on us to incentivise the creation of jobs which will allow telecommuting. In doing so, we will no longer exclude those who may be unable to work in a traditional nine-to-five environment for various reasons.
President Halimah recently said, and I quote, \"Imagine how many more women with young children could remain in the workforce if they could telecommute. Imagine the kind of skills and talents among women that we could retain to benefit our society and economy. With dual income families more of a necessity today, we should make it easier for women with family obligations to work.\" Mr Speaker, it is not just women with care-giving duties who will benefit from this arrangement but many more.
Recently, I came across a very moving commentary by Mr Jonathan Tiong, a fourth year student from NUS. He is a disabled person who will soon be entering the workforce. Being a wheelchair user, one of the biggest obstacles he faced was travel, which he defined as the mere act of leaving his home. Unlike an able-bodied person, he cannot just get up and go wherever he wants. The logistics of transport invariably involves at least one other person for him. He shared from his personal experience that video conferencing will help disabled persons and people with disabilities to integrate better into society by allowing them to lead more active professional and social lives.
In creating openings and retaining these segments of the population in the workforce, we can then create a workforce that is not only fair to all but also ensure that we maximise our potential to the fullest. I am confident that the National Jobs Council helmed by Senior Minister Tharman will also look into this matter.
On digital transformation and innovation, since 2014, the Smart Nation initiative has been quietly transforming and enriching the lives of many Singaporeans. At the World Economic Forum in Davos in 2019, Deputy Prime Minister stated that Singapore needs to work towards repositioning itself to becoming a Global-Asia node of technology, innovation and enterprise.
As we restart our economy, the importance of the Smart Nation initiative and the words of Deputy Prime Minister cannot be more true. To ride the new wave, we need our people to be digitally enabled in every sense of the word. What this means is that in addition to the various aspects of citizenry, we need Singaporeans to not only be IT-savvy but also be responsible digital citizens or digitizens.
This pandemic has taught us how under-prepared many were for a global crisis that affected all countries. It has also brought to the forefront the need for digital acceleration and the importance of business continuity plans for businesses and organisations of all sizes. In this regard, there is a vital need for a one-stop digital acceleration centre of excellence that can provide seamless solutions for companies and organisations seeking to ride the coming wave.
Mr Speaker, a digital economy cannot be the exclusive purview of the rich. Singaporeans living in rental flats and those in the lower income brackets are disproportionately less likely to have wifi at home. In fact, in the last three months, we have seen regular media coverage about the struggles that some of these families face trying to ensure that their children can participate in home-based learning. I understand that MSF has plans to proactively reach out to these Singaporeans with a helping hand. The existing Digital Inclusion framework needs to be reinforced so that no one gets left behind causing a digital divide. I urge MCI and IMDA to redouble their efforts in distributing internet connected devices, and work to ensure that affordable wifi is available to residents living in our rental flats.
I would also like to express my support and commend MCI and IMDA for launching the Seniors Go Digital Movement. It is timely and crucial to also include our seniors in our Digitalisation journey. Beyond family, friends and the wider community, our model of constantly creating public-private partnerships should not be forgotten. Mr Speaker, I hope that MCI and IMDA will collaborate and work with various tech companies as we continue to ensure our seniors are not left behind.
On innovation, Harvard Business School professor Rosabeth Moss Kanter said, “Change is a threat when done to me, but an opportunity when done by me.” In my many conversations with fellow Singaporeans over the circuit breaker period, I have come to realise that many of them are embodying a key trait: adaptability through innovation. Let me illustrate this through the lens of our response to this crisis.
When we announced the circuit breaker, we had to adapt to a completely new way of life. Parents had to learn how to work from home while supervising their children in home-based learning. Teachers had to transition to teaching the entire syllabus online. Businesses had to learn how to continue operating without access to their paper documents or any in person interaction. Sir, the crisis forced us to be adaptable. No one was spared from the need to change their way of life.
Out of this disorientation came the spirit of innovation. We have innovated by adopting video conferencing tools to conduct meetings and even marriages! Our food establishments have innovated by serving their patrons without any physical interaction. Even our wet-markets were not spared. Our civil servants had to innovate as well. The SafeEntry declaration that I scanned today and the TraceTogether app which is running on my phone right now are all concrete examples of innovation driven by our teams at GovTech.
Mr Speaker, this adaptability through innovation has ensured that our country can continue to function.
In conclusion, the COVID-19 pandemic is the latest in a long list of crises that have hit the world in recent times. It has exposed our fragilities and the urgent need to rethink our way forward. The multi-faceted crisis the world is faced with did reveal itself in various ways in the last decades, continuously sending us signals on the urgent necessity to take action and embark on a transformational journey.
Throughout the history of humanity, crises have always represented critical junctures allowing mankind to take the path of innovation and positive transformation that contributed to building better societies. The COVID-19 pandemic should be no exception. We stand at the threshold of history to build a healthier, more peaceful, prosperous, inclusive, resilient and sustainable society in Singapore.
In this regard, it behooves me to embrace the spirit of the Singapore Together Movement which has been labelled \"a cornerstone\" of nation building by Deputy Prime Minister as we beat the odds together. With that, I support the Budget. Majulah, Singapura. It is a privilege to serve.
Mr Speaker: Mr Vikram Nair.
Mr Vikram Nair (Sembawang): Mr Speaker, when we started this financial year, we had a long debate over the Unity Budget, which was the largest Budget in Singapore’s history, amounting to around $105 billion. This Budget provided what seemed to be a very generous sum of $5 billion to deal with the effects of COVID-19. At this time, the number of cases in Singapore was less than 200 and the epicentre of the crisis was still very much in China, with the largest number of cases.
Within a month, the situation changed dramatically, as COVID-19 spread around the world, and became particularly rampant in Europe and the US, the number of cases in Singapore started spiking as well as we had more people return from overseas. The Government moved swiftly and Deputy Prime Minister Heng announced the Resilience Budget, which was what we needed in light of the worsening situation and the additional restrictions that the Government had to put in place to reduce the spread of the virus.
As the number of cases continued to grow with more and more Singaporeans returning home, the danger of wide community spread emerged and the Government decided to implement the circuit breaker. To tide over the circuit breaker, Deputy Prime Minister announced a third Budget, the Solidarity Budget – solidarity because most Singaporeans, apart from our essential workers, stayed at home to prevent this crisis spreading. Workplaces and schools closed and people tried to work from home while students engaged in home-based learning.
With the circuit breaker coming to an end, and with Singapore cautiously opening up, this latest Budget, is aptly named \"Fortitude\" and it aims to help get us moving once again in a very uncertain and volatile world. Even as we have this debate today, the world is a different place. Air travel has all but frozen. The Causeway, which used to see a little under half a million people a day cross up and down, is also quiet, allowing only vehicles with essential supplies coming through. The largest number of COVID-19 cases now is in America, which also has an added crisis as the tragic death of George Lloyd has triggered a “Black Lives Matter” with large numbers of people on the street.
The Singapore Government’s approach in this virus has been nimble. We did not create this crisis, but we have to deal with the fallout. We prioritised the saving of lives with a rigorous system of public messaging, contact tracing, quarantine and the expansion of medical resources. Although we have one of the largest numbers of cases in Asia, which is partly because we have done very aggressive testing, we have managed to keep our fatality rates low because our medical capacity is adequate to provide for all who need it.
The Ministerial Task Force has communicated regularly, acted decisively and flexibly, staying calm and always having a clear plan for the situation. This Budget, the Fortitude Budget, is the latest additional spending the Government needs and I whole-heartedly support this. Fortitude means courage in the face of adversity and that is exactly what Singapore needs to get back on its feet.
The earlier Budgets, particularly the Resilience and Solidarity Budgets, helped businesses stay afloat during a time when Singapore and much of the world was frozen. Our people retained jobs even though many were staying at home and were not able to work. Those who were not so fortunate and lost jobs or income received immediate support. This helped our people have resilience and solidarity.
Now, the time has come to slowly get back on our feet and move and this Budget again provides much needed lubrication to help this process. For businesses, the three main concerns are usually payroll, rental and financing. This Budget has provisions for all three. In relation to payroll, the extension of the Jobs Support Scheme means that many employers, particularly those in troubled sectors like aviation, will continue to get significant payroll support for their staff, up to 75% through to August. Rental waivers of two to four months will be enjoyed by many businesses, the load shared between landlords and the Government. Landlords in turn can get relief from their own mortgage obligations if they need it.
Finally, for many businesses, credit is the lifeblood and the previous Budgets had provided Temporary Bridging Loan Programme and Enterprise Financing Scheme, both of which provided access to credit. These well thought through schemes mitigate the three greatest concerns businesses will have and will, hopefully, give them fortitude to get up and get back in the game.
For individuals, particularly those who have lost jobs or income, there is also significant help. The biggest concern for individuals who are out of work is \"Will we get more income? And when will we get our next job?\" This Budget provides for both apart from those with high incomes or higher value properties. Whether you are self-employed or an employee, if you have lost 30% or more of your income, there will be relief. In addition to this, payments to families from Care and Support packages in previous Budgets will continue and this will help households meet expenses. There is also significant investment in job creation and training opportunities, with a bold plan to create 100,000 jobs and the team is already in place headed by Senior Minister Tharman to look into this very difficult project. These are exactly what we need during these difficult times.
All this spending comes with a price tag, and in this case, we will, for the first time in our history, be dipping into our reserves to the tune of around $50 billion. This is significant, but it is also clear that this is not a decision the Government is taking lightly. Based on what we know from MOF’s public data, the reserves managed by MAS are around $400 billion and Temasek has more than $300 billion on its balance sheet. The full figure is, of course, bigger than this.
Against this backdrop, a one off draw-down of $50 billion to deal with what is probably the biggest financial crisis since our Independence is probably justified.
We must however be mindful that these reserves built up since our Independence are our “Golden Goose”, and the more we spend of the reserves, the less the net investment income will be. The last time we drew down on these reserves was during the 2008/2009 Global Financial Crisis. Back then we had a \"V\" shape recovery and the Government was able to pay back the draw-down within a year. I do not expect the Government to be able to do so this time. Yet, given the extraordinary situation we are in, I think this expenditure is well justified. I support this Budget. Mr Speaker, I’ll continue in Tamil.
(In Tamil): [Please refer to Vernacular Speech.] This is a time of unprecedented challenges for the world from COVID-19. Many of our friends in other countries are facing unprecedented hardship and suffering, including being unable to find hospital beds and treatment when they need it and watching loved ones die without being able to be with them in their final moments or attend their funerals.
In Singapore, we have faced pain too. Although we have a large number of cases, because we have managed the situation, our death rate from COVID-19 is one of the lowest in the world. Now people’s main concern is their livelihoods, and that is exactly what this Budget addresses.
For those who own businesses, there is support for payroll, relief from rental and financing available. For individuals who have lost jobs and income, there is financial assistance available as well as training to get new jobs. The aim is to help people get back on their feet and get their livelihoods back.
This Budget gives us \"fortitude\" to face the challenges ahead by helping to relieve the main things that cause us fear.
Mr Speaker, I support this Budget.
Mr Speaker: Order. I propose to take a break now. We will commence the Sitting again at 4.20 pm.
Sitting accordingly suspended
at 3.59 pm until 4.20 pm.
Sitting resumed at 4.20 pm.
[Mr Speaker in the Chair]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Time Limit for Deputy Prime Minister's Speech","subTitle":"Suspension of Standing Orders","sectionType":"OS","content":"Mr Speaker: Leader.
The Leader of the House (Ms Grace Fu Hai Yien): Mr Speaker, may I seek your consent and the general assent of Members present to move that the proceedings on the item under discussion be exempted from the provisions of Standing Order No 48(8) to remove the time limit in respect of the Deputy Prime Minister's speech?
Mr Speaker: I give my consent. Does the Leader of the House have the general assent of hon Members present to so move?
[(proc text) Hon Members indicated assent. (proc text)]
[(proc text) With the consent of Mr Speaker and the general assent of Members present, question put, and agreed to. (proc text)]
[(proc text) Resolved, That the proceedings on the item under discussion be exempted from the provisions of Standing Order 48(8) in respect of the Deputy Prime Minister's speech. – [Ms Grace Fu Hai Yien]. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Government's Plans In Our Continuing Fight Against COVID-19 Pandemic","subTitle":null,"sectionType":"OS","content":"[(proc text) Debate resumed. (proc text)]
Mr Speaker: Deputy Prime Minister.
The Deputy Prime Minister and Minister for Finance (Mr Heng Swee Keat): Mr Speaker, Sir, I thank Members of this House for their support and participation at this debate on our Fortitude Budget. Members have spent many hours raising many points, so it would not be possible for me to respond to each and every one of their points. But where there are good ideas, the various Ministries will take them up and my various colleagues will address these later.
In rounding up this debate, let me start by sharing my perspective on the nature of this crisis and the global and historical context.
COVID-19 is a global crisis of our generation. Within six months, the World Health Organization (WHO) estimates that the coronavirus has infected 6.4 million people, claimed over 380,000 lives, disrupted lives and livelihoods, and closed borders worldwide. Never before have we seen a global lockdown of this scale. The pandemic has exposed vulnerabilities in global supply chains, accelerated digitalisation and technological changes, and fragmented global markets. There is huge uncertainty on both the health and economic fronts. In fact, it has opened up other fronts.
The trigger of this crisis – the coronavirus – will continue to disrupt lives until a vaccine or suitable therapeutics are developed.
The International Monetary Fund (IMF) projects the global economy to contract sharply by 3 percentage points. This is much worse than the 0.07% contraction during the global financial crisis and is unseen since the Great Depression. There are serious cascading effects on employment and people all over the world. This comes amidst escalating geo-strategic competition between the US and China, which could destabilise the global order.
COVID-19 is having a huge impact on the global economy because it shocked both the demand and supply side of the economy simultaneously. On the demand side, reduced social interactions and weakened consumer confidence have significantly reduced consumption which, in turn, reduced income and investment levels. On the supply side, global lockdowns have disrupted deeply integrated supply chains across borders and slowed global trade and investment.
These shocks reinforce each other and threaten to impair the long-term productive capacity of economies. Measures that depend primarily on stimulating demand in the economy will not work due to supply chain disruptions.
Ms Denise Phua and several other Members of Parliament asked about the global outlook. The road to recovery will be long as we deal with persistent economic impact on workers, jobs and business. Beyond economic costs, there will be immense human and social costs.
The world took eight to 10 years following the Great Depression and global financial crisis to recover to pre-crisis unemployment levels. We should not be surprised that it takes as long, if not longer, to bounce back from the effects of COVID-19.
The First World War had a lasting impact on the employment prospects of a lost generation of youth in western economies, stripping them of a sense of hope and direction. There is now talk of a global \"lockdown generation\" and fears that the youths of our time could have their skills, employability and incomes permanently affected even after the world recovers from the pandemic. We must work to prevent a \"COVID-19 generation\" of workers and students in Singapore.
All over the world, we have seen a Catch-22 situation developing as governments grapple with the tensions between saving lives and livelihoods. The reluctance to freeze activities due to heavy economic losses has had tragic consequences. Delayed and incomplete measures to stem infections resulted in a massive number of casualties as healthcare systems were overwhelmed.
Singapore has managed to avert some of the harsher outcomes from COVID-19. We were able to act boldly as Singaporeans stood in unity, trusted the Government and worked together to save lives and livelihoods. We imposed a prolonged circuit breaker to significantly reduce the community transmission rates over the past two months. We set up a joint task force to deal with the situation among our migrant worker community and the situation is improving. Aggressive testing and the professional dedication of our healthcare team have kept fatalities low.
Our battle against COVID-19 has reached an inflection point. We have now taken the first steps to reopen our economy safely, in a gradual and systematic way. We are now four days into our phased reopening. If infection rates remain low and stable, we expect large parts of the economy to be able to reopen by the end of June. We will continue to provide support for our workers and businesses to tide through this period.
Internationally, we are working to gradually reopen our borders safely with other countries. This will allow for business travel, which is essential for our open economy. The Singapore-China \"fast lane\" is a first step in this reopening of borders.
Around the world, many countries have started to reopen and we are watching them closely. They, too, have taken a phased approach.
When infection cases slowed to a trickle, China started to reopen in late April, and South Korea, Germany and Japan relaxed their lockdown in May. France did so this week. Infection rates rose for some countries that reopened earlier but they are actively managing the situation and working hard to respond to the new infections.
We are dealing with a highly infectious and agile virus. The world is learning on the go. So, we must be psychologically prepared that infections could rise somewhat, even with the best precautionary measures.
We are thus not reopening and going back to our familiar routines but into a new uncertain reality. Singaporeans must learn and adapt to the new reality. We must adjust to new norms, such as higher standards of personal and public hygiene, safe distancing and reduced social contact. We will need to adjust to new ways of working, such as telecommuting, and acquire new skills relevant in the new economy. Changing habits is difficult but we must all do our best.
Government interventions have become the cornerstone of the COVID-19 response as populations look towards the one institution that can organise and mobilise. There has been a flight to leadership. Administrations, regardless of where they sit on the political spectrum or their belief in government intervention, have responded with substantial support packages. Some have also stepped in to support distressed corporates from airlines to car makers.
We, too, have mounted a strong response because lives and livelihoods are at stake. We are committing almost $100 billion, or close to 20% of our GDP, to our COVID-19 response. Adding the COVID-19 response to our usual spending, the total size of our four Budgets stands at $193 billion. This is more than double the size of our annual Budgets in preceding years. In other words, we are looking to spend in one year what we would have done in two years or more in normal times. This is a very big commitment!
Beyond the size of headline numbers, what matters even more is whether resources are directed to the right areas, to enable our people and our economy to rebound faster and stronger. Design and implementation are critical. The measures in our four Budgets have been designed to not only respond to the crisis but to also enable Singapore to emerge stronger. The measures aim to protect lives and livelihoods, deal with immediate concerns and build for our future.
Our Budgets aim to:
(a) minimise the spread of the virus and risk to lives, which has largely been successful;
(b) stabilise the economy, save jobs and viable companies, and protect livelihoods;
(c) reposition workers, businesses and the community to respond to major shifts; and
(d) seize new opportunities so as to emerge stronger.
We have put our people at the centre of our Budgets. Our measures on protecting livelihoods centre on helping people to stay employed and businesses to stay viable. The fortunes of workers and businesses are intertwined. By keeping the economy stable, we strengthen social resilience. By investing in upgrading the skills of our people and transforming our businesses, the economy can recover more strongly.
This is why over $72 billion, or close to 80% of the amount set aside for the COVID-19 response, is committed to helping our workers stay in their jobs, and supporting our businesses and their employees, which, in turn, support social resilience. As our Labour Movement firmly believes – a job is the best welfare. The remaining goes to public health and social support measures, to supplement and strengthen the significant investments made and structural measures already in place.
Having set out the global context, let me now respond to the various issues raised in the Budget debate, under three broad themes:
First, supporting jobs, livelihoods and our future economy;
Second, maintaining a strong fiscal position; and
Third, drawing on our deep reserves of social capital.
Let me start with jobs and livelihoods, which many Members of Parliament spoke about. This has, indeed, been the focus of our Budgets.
COVID-19 will take a lasting toll on the quantity and quality of jobs worldwide, despite countries' best efforts to mitigate the impact. The International Labour Organisation has estimated that COVID-19 could raise global unemployment numbers by \"far higher\" than 25 million. This is worse than the 2009 Global Financial Crisis, which saw additional global unemployment of some 22 million workers. For Singapore, the highest annual average number of unemployed residents on record was registered during the 2003 SARS epidemic, at 91,000 unemployed residents. The impact of the COVID-19 pandemic is widely expected to be more severe than SARS, with the number of unemployed residents potentially rising from around 73,000 in 2019 to above 100,000 in 2020.
The economic fallout of COVID-19 goes beyond unemployment numbers. Even those who keep their jobs may suffer under-employment and significant income loss. This could lead to a vicious cycle where income loss reduces consumption and affected businesses further reduce labour demand. The human and social effects of unemployment and under-employment are no less debilitating. For many of us, having a job means more than getting paid. Through our jobs, we are connected to the workings of the world and to other people, and we take pride in being a contributing member of society. At a personal level, losing a job can lead to a loss of identity, confidence and dignity.
This is why, when COVID-19 struck, our top priority is to provide fiscal resources to help workers stay in their jobs. The SGUnited Jobs and Skills package seeks to not only grow pathways to jobs, but also equip workers and their firms with capabilities for the coming years. Our Labour Movement is a key partner. I thank Secretary-General Mr Ng Chee Meng and Deputy Secretaries-General Mr Heng Chee How and Dr Koh Poh Koon for NTUC's unwavering support and partnership during these uncertain times, and all our NTUC colleagues who have spoken on behalf of workers in this House. Indeed, every worker matters!
Our Jobs and Skills Package goes hand-in-hand with transformation in every business and at the industry level, through our Industry Transformation Maps (ITMs). Every business that is confronted with structural changes and the shocks from COVID-19 will need to take a long hard look at its business model. They will need new markets, new products, or process innovations, and need to harness new technologies. They may need to work with their competitors as industries consolidate for scale. I am glad that many of our business leaders understand more than ever we cannot take the \"business as usual\" or BAU attitude, or else there will be no business left.
Existing jobs will need to be re-designed. New good jobs will be created in growth areas. How do businesses get the right people into these re-designed or new jobs? By hiring the right people and building up their skills. Fresh graduates or mid-career individuals with experience from other sectors are good choices. So are existing staff who can be re-skilled. Business transformation, creating and sustaining good jobs need to be done as part of a coherent business and industry transformation plan. Dr Koh Poh Koon shared many examples of how the Labour Movement has partnered and supported businesses through their transformation journeys.
There are three thrusts to our Jobs and Skills Package.
First, we will save jobs in viable businesses and preserve workforce capability in sectors which are temporarily hard-hit. The Jobs Support Scheme, which I have enhanced over the four Budgets, will flow a total of $23.5 billion to support 1.9 million jobs over 10 months. Close to two-thirds of these jobs are in our SMEs. Over $11 billion has already gone out to help employers defray wage costs.
I am heartened to hear that many businesses have found the support useful and have factored it into their decision to retain jobs and workers. Let me be clear, so people understand. The Jobs Support Scheme is what its name says clearly – it is meant to support jobs. We are not supporting businesses for their own sakes. We are supporting businesses – defraying their wage costs – so that they can retain and pay workers.
Second, we will open up pathways to new jobs across a range of skills levels and help local jobseekers of all ages and profiles to access them. As Minister Josephine Teo explained, we will create about 100,000 opportunities to help local jobseekers take on new jobs, including in emerging and growth areas, such as infocomm technologies, financial services and healthcare.
I thank Senior Minister Tharman Shanmugaratnam for agreeing to chair the National Jobs Council to oversee this major effort to keep jobs and help people bounce back should they become unemployed. The Council had a productive first meeting just two days ago. Again, I stress the effort we are making is unprecedented. Never before in our history have we set out to preserve so many jobs as well as create so many new opportunities – 100,000. The Council has already begun its task.
I also encourage our workers to step out of their comfort zone and acquire new skills to prepare for the structural changes ahead. For example, Mr Goo Chong Kiat embarked on a Professional Conversion Programme (PCP) as a Senior Engineer with Systems on Silicon Manufacturing Company during the Circuit Breaker, as he wanted to deepen his skills in areas of Industry 4.0. His advice to others enrolling in PCPs is to keep an open mind and be ready to adapt to a dynamic environment. I cannot agree more!
Third, we are dedicating additional help to groups which are harder hit, including our graduating students, our mid-career workers and self-employed persons. As Mr Ang Hin Kee, Mr Desmond Choo, Ms Jessica Tan and Prof Lim Sun Sun have pointed out, we need concerted efforts to support these groups. I also thank Mr Pritam Singh for his support. Minister of State Zaqy Mohamad covered many of the initiatives in his speech earlier.
Our fresh job entrants will get enhanced access to jobs and traineeship opportunities in growth areas, through the TechSkills Accelerator programmes mentioned by Minister Iswaran yesterday. Our public agencies are also stepping up efforts to help. Mr Muhammad Syabil Bin Mohamed Sazali is a fresh graduate from NUS Computer Engineering. This July, he will enroll in the Cyber Security Agency's 18-month Cybersecurity Development Programme. Syabil will be amongst the first batch of 40 officers to be groomed as cybersecurity professionals. With widespread digitalisation, demand for cybersecurity professionals will grow.
Mature workers will receive strong support from the SkillsFuture Mid-Career Support Package and enhancements to the Adapt and Grow programmes introduced at the Unity Budget. Mr Chew Kok Poh was an Operations Executive with ST Logistics for close to 19 years. With the deployment of Automated Guided Vehicles and a Warehouse Management System, his role was significantly transformed as a large portion of warehouse operation processes became automated. ST Logistics leveraged the WSG redeployment PCP to upskill Kok Poh for the enhanced Logistics Executive role. He now works with the new automation systems to manage warehouse operations and conducts data analysis to plan their weekly manpower resources.
I appreciate Mr Heng Chee How's support for our schemes to give our mature workers a leg up in the workplace. We are now encouraging employers to re-design jobs as part of their broader enterprise transformation efforts through the Enterprise Development Grant, the Productivity Solutions Grant – Job Redesign, and the SkillsFuture Enterprise Credit. By pegging the Hiring Incentive for eligible mature jobseekers at 40%, which is double the rate for that of younger workers, we are helping more mature workers to find new employers. Many seniors can and want to work longer. We will continue to support them through the Senior Worker Support Package.
I join Minister Josephine Teo and Secretary-General Ng Chee Meng in thanking the many firms which have already stepped forward to play their part in supporting the creation of good job pathways. Banks, both local and foreign, are grooming the local talent pipeline, by pledging to offer close to 900 traineeships for local fresh graduates and jobseekers. Mr Seah Kian Peng also spoke about the support from NTUC FairPrice and Enterprise Groups, which have offered some 4,000 jobs and 300 traineeships. I encourage more businesses to think long-term and continue to invest in people, or what economists call human capital development. Skilled workers make strong firms and strong firms create good jobs. Every business, every worker, must seek to maximise this synergy.
But, despite our best efforts, we cannot possibly save every job. Many sectors were already facing disruptions before COVID-19. For workers who are displaced, you have our assurance that if you make the effort, our tripartite partners will support you to tide through this difficulty.
Before COVID-19 struck, structural changes, such as the fragmentation of global supply chains and technological changes, were already in motion. COVID-19 has triggered both a deep cyclical shock and accelerating structural changes in the global economy. To thrive, or even to survive, companies all around the world must adjust to these forces with speed and agility.
In Singapore, we are fortunate that we started our structural transformation efforts early and companies that have made the efforts are adapting better.
In 2015, we set up the Committee on the Future Economy. The Committee charted strategies to build our capacity for a vibrant, strong future economy and to create good opportunities for our people. From 2016, we launched our Industry Transformation Maps to systematically bring together stakeholders to transform our industries, across all 23 sectors and six industry clusters.
Some business leaders have told us that by embarking on transformation early, they have found it easier to pivot to new areas of opportunity. One example is Forefront Medical, a precision engineering firm providing manufacturing services to the medical industry. Prior to COVID-19, Forefront Medical had started building up automation capabilities, adding cleanroom capacity and growing its local medtech talent pool. These capabilities enabled the company to supply to more global medical companies when the pandemic struck. Forefront Medical also managed to pivot into the diagnostics space by acquiring capabilities in reagent manufacturing for COVID-19 test kits. It has already secured a deal with one test kit company and is in discussion with two more.
Last week, I had an e-conference with a group of start-ups and venture funds in Singapore. The progress that they all have made in seizing new opportunities cheered me, including the safe bicycle helmet, 3D printing of instruments for swab tests and telemedicine. In the interest of time, let me just share a few more examples, to give a flavour of the progress.
And the first flavor is Shiok Meats, a start-up working to harvest crustacean meats from cells instead of animals, thereby eliminating the risk of food-borne diseases. It aims to introduce these alternative proteins grown in food manufacturing facilities to restaurants in the next two years.
Novade provides smart field management software for the building and construction industry. Since COVID-19 struck, Novade has launched new functionalities to enable health monitoring procedures on work sites and is now helping clients use these functions to restart and carry out operations safely.
ViSenze specialises in retail AI solutions, including virtual try-outs of products using a real-time camera recognition function. It has been piloting these new technologies with retailers to get ready for a \"new normal\" in post-COVID-19 shopping and is now doubling down its efforts to help retail clients worldwide transform their operations.
The start-up mantra is to disrupt the world, to make it better. But with COVID-19 disrupting the world, it is good to see start-ups pivoting to enabling us to cope better with a disrupted world, with the right innovations!
In the face of the deep uncertainties that confront the world today, what must Singapore do to survive and succeed?
The post-COVID-19 world will be different from today. We may not know the exact contours of how this world will look like, but we know the forces that are shaping it.
The Emerging Stronger Task Force, led by Minister Desmond Lee and PSA International Group CEO Tan Chong Meng, are studying key shifts and developing recommendations in the areas of technology and innovation, digitalisation and disruption to global supply chains.
In the course of its work, the Task force will consult multiple stakeholders and draw on insights beyond its membership, so that their findings and recommendations are relevant.
Many Members spoke about the need to respond quickly to the structural shifts, and I thank Members, including Mr Ang Wei Neng, Miss Cheryl Chan and Mr Douglas Foo for their insights. Accelerating our economic transformation is indeed a national priority and both workers and employers must do their part to stay focused on this.
Our Fortitude Budget not only cushions firms to tide over immediate cashflow, cost and credit challenges that Members, including Mr Darryl David and Er Dr Lee Bee Wah spoke about, but also helps accelerate digital transformation and build capabilities to emerge stronger when the recovery comes. Minister Iswaran sets out clearly that this crisis has crystallised the need and opportunity for digitalisation and we can only emerge stronger by making a decisive push towards a digital future. And as Mr Christopher de Souza puts it, riding this wave of digitalisation is key to ensuring that our Singaporeans are ready for borderless job opportunities.
There will also be a premium on resilience. As Mr Arasu Duraisamy, Mr Patrick Tay and Mr Saktiandi Supaat pointed out, one way for businesses to build resilience, is to build up a strong Singaporean Core. This will not only create opportunities for our local workers but also help our businesses continue to operate sustainably even as other economies grow and develop, or even if there are disruptions to external labour supply.
In our next phase of growth, we must anchor Singapore as a Global-Asia node of technology, innovation and enterprise. Like a pearl that is part of a strand of vital global nodes across the world, we must play a valued and inextricable role in the new global configuration. We will do so by forging new partnerships and bringing new value to the world through innovation and deep capabilities, including technological capabilities. I am bringing together the work of our Future Economy Council and the Research, Innovation and Enterprise Council to do so, by enabling our industry clusters to harness the rich opportunities catalysed by innovation networks and the creation of new scientific knowledge. And as Assoc Prof Walter Theseira said, we must undertake this great exercise of economic restructuring together, as equal partners and as one people, in the creation of a new Singapore.
The COVID-19 situation is a mighty storm that has damaged sails and forced ships around the world to go into harbour. While waiting for the storm to subside, we must make the best use of this downtime to build new strengths and capabilities. Let us take this rare chance to repair, upgrade our ship and install new instruments, re-orientate our mental compass and strengthen our sailors, so that when the fair wind comes, we will sail out faster and further than ever before. This is what our four Budgets enable us to do – let us make the best use of these!
I have explained our immediate priorities to support jobs and livelihoods and why we need to accelerate transformation. Let me now respond to Members' comments on our approach to fund such measures through our four Budgets.
I thank many Members for recognising that Singapore's fiscal response has been timely, comprehensive and decisive, and that it is commensurate with the widespread and unprecedented impact of the crisis.
Our strong response is projected to stabilise economic activity during this difficult period, and position Singapore for recovery.
Based on a recent study by MAS, our four Budgets are estimated to help our economy avert an average output loss of five percentage points, or $23.4 billion per year, over 2020 and 2021. This is very significant because when you have a higher base, future growth, even at the same percentage rate, means that you reach a higher level.
As Mr Alex Yam mentioned, some are of the view that we have spent too much, while others think it is too little. These contrasting views show that crisis budgeting is anything but straightforward.
These decisions have been made after careful deliberations, based on the best information available at that time. As the COVID-19 situation develops, we have continued to enhance and refine our schemes, as evidenced by our four Budgets. Even then, let us stay vigilant – as I said at the outset, we are facing unprecedented levels of uncertainty across various fronts.
Mr Liang Eng Hwa, in opening the debate, highlighted a distinctive feature of the Fortitude Budget – that we are setting aside an additional $13 billion in the Contingencies Funds. Such contingency budgeting reflects both the unprecedented levels of severity, as well as uncertainty, of this crisis.
Mr Liang asked if the Government can provide an indication of how the Funds may potentially be used. As designed, the Contingencies Funds can be drawn upon if there is a need to do so. And as designed, we have not designated specific purposes for the Funds. In sizing it, we have run some \"what if\" scenarios, including the possibility that we may experience a setback in our fight against COVID-19 or the global economy does much worse than currently expected.
So, unlike our usual annual Budget, where we seek to provide as much details as possible, we are setting aside a sum to meet future events or circumstances that are possible, but for which we cannot yet predict with certainty. This is indeed a special feature that allow us to respond swiftly to unforeseen developments. I thank Mr Liang for pointing this out.
Mr Pritam Singh asked about the governance around the use of Contingencies Funds. The use of Contingencies Funds is not new. Each year, we have $3 billion in the Contingencies Funds to meet urgent and unforeseen needs. With greater uncertainty, it is natural for us to cater for a bigger quantum. The Singapore Constitution includes safeguards over its use.
First, the Government will need to seek President's concurrence for drawing down the Contingencies Funds. Second, these drawdowns must be replaced through a subsequent Supplementary Supply Bill or a Final Supply Bill that have to be presented to and voted on by Parliament before seeking President's assent. This provides additional checks and balances over new spending from the Contingencies Funds will continue to ensure judicious use of the Contingencies Funds for urgent and unforeseen needs. When the uncertainty subsides, we can reduce the amount set aside in the Contingencies Funds.
Several Members have also pointed out another exceptional feature of our Budgets this Financial Year – the draw on Past Reserves. For most countries, borrowing is the only way to fund their largest stimulus packages. This increases the risk of unsustainable debt financing, which has severe consequences for the economy in the long run.
Countries that have taken on significant additional debt to pay for their support measures will have to find new ways to repay their debt and interest accrued. Future generations will be required to shoulder this debt, be it in the form of higher taxes, higher inflation, or lower returns on their retirement assets. Future generations will also be affected in other ways. In order to service debt repayment, there will be less fiscal room to invest in human capital or infrastructure. The \"Lockdown Generation\" in these countries will end up paying for this crisis a long way down the road.
We are fortunate that in this hour of crisis, we have our national reserves to depend on. Our reserves allow us to deal with this crisis from a position of strength and give us options in a period of uncertainty like this. Our reserves are our rainy-day fund. Mr Vikram Nair likened our reserves to a \"Golden Goose\", painstakingly built up since our Independence.
As Ms Tin Pei Ling and Mr Murali Pillai have pointed out, our reserves are our key strategic advantage in the current environment.
First, it assures Singaporeans that we have the means to navigate the challenges ahead, to protect our lives and to sustain our livelihoods. Second, it fosters confidence in global investors, that our economic fundamentals are sound and stable in the long term and that we have enough resources to emerge stronger from the crisis. Third, it protects us during this period of flux. Detractors and speculators know well enough not to take advantage of this crisis, to attack our economy or currency.
We did not get here by chance or good fortune. We have designed and implemented policies that discourage waste or over-consumption. We have run our public services based on outcomes, not on size of spending.
In short, we are in this fortunate position because of consistent hard work, prudence, long-term planning and discipline of those who came before us. Such prudence and discipline are not always appreciated. We have had vigorous debates in this House, on whether the Government could afford to spend more freely from reserves, instead of running Budget surpluses.
Even as recently as January this year, before the Unity Budget was unveiled, many commentators inside and outside of this House speculated on how large our accumulated reserves would be. Yet, it took us just three months into FY2020 to use up the accumulated surplus that we had built up over the current term of Government; since the start of this term of Government. And even that is not enough.
So, mounting COVID-19 packages amounting to nearly $100 billion, of which more than half is funded from the reserves is not a trivial matter, especially when our yearly budget is about $80 billion. The total of our four Budgets, including the COVID-19 packages, is more than double the size of our annual Budgets in preceding years. Our reserves are a limited resource and we must not take them for granted.
We owe it to our people – seniors, middle-aged, young and those yet to be born – to be prudent and ensure good governance, so that they too have the resources to navigate future challenges in an uncertain world.
Ms Foo Mee Har, Ms Tin Pei Ling and Mr Mohd Irshad asked if we would restore the $52 billion drawn from our Past Reserves, and how long that would take. There is no legal or constitutional obligation for the Government to do so. The Government put back into the Past Reserves the $4 billion it had earlier drawn on in 2009, during the Global Financial Crisis. And not a single cent of the $150 billion of reserves that backed the Government's guarantee of bank deposits was used, when our banking system emerged safely from the Global Financial Crisis.
This current crisis is of a significantly larger scale and reach than the Global Financial Crisis. We are facing huge uncertainties regarding the course of the pandemic and its economic and social implications. What we do know is that there will likely not be a V-shaped recovery, unlike in past crises. And the amount that we are tapping on is $52 billion. So, how long would it take to build this back? We cannot be definitive.
At this moment, we must focus our minds fully on making the best use of the resources that we have deployed, be prepared to work hard in the years to come, and have the resolve to rebuild our economy. In this way, the Singapore economy can emerge stronger, and we will be in a strong position to build up our resources. But rest assured that we are committed to rebuild not just our reserves, but also to continue developing Singaporeans and building Singapore.
Mr Muhd Faisal Manap and Mr Dennis Tan asked if the President was given information on the amount available in the reserves when the Government sought her in-principle support for drawing on them.
I am surprised that both Mr Faisal and Mr Dennis Tan had to ask. It is public information that, under our Constitution, the President has access to information about the size of reserves. Under Article 22F of the Constitution, in the exercise of her functions under the Constitution, the President is entitled to any information regarding the reserves. In addition, on the MOF website, it is already mentioned that the President has full information about the size of the reserves.
In the process of seeking President's approval, the Government has conducted two briefings to President and the Council of Presidential Advisers. These briefings covered the Government's assessment of the global and local health and economic situations, the details of the measures and the resources needed. Ministers Gan Kim Yong, Chan Chun Sing, Lawrence Wong and Indranee Rajah were with me.
In our system, the President is the custodian of our Past Reserves. She needs to concur with any draw, and her decision is made in full knowledge of why the draw is necessary, and the size of our reserves. In fact, Members have heard the President's message in the Resilience Budget, delivered on her behalf by the Speaker, just before my Ministerial Statement then. We have a strict governance system, scrupulously observed.
Some have also asked why the Government does not reveal the size of the reserves and let the public decide if we should use more. As Mr Vikram Nair has noted, the size of the reserves invested by MAS and Temasek is public information. But the amount invested by GIC is not disclosed. As I had explained this to Members of this House during my last round-up speech in early April – it is not in our national interest to reveal the full size of our reserves.
Besides being a buffer against crisis and providing investment return to supplement our annual Budget, our reserves also form our strategic defence against threats. And as a strategic asset, we would be diminishing its value if we disclose this for potential adversaries to use against us.
No responsible leader will lay bare your nation's defence plan.
Mr Saktiandi Supaat asked if we should take advantage of the lower interest rates now, to borrow more to fund expenditure. Fiscal discipline is one of the fundamental principles underpinning Singapore's fiscal system. We spend prudently within our means and responsibly with a value-for-money culture. The rule to run balanced Budgets for each term of Government remains relevant. We also spend equitably, with the principle that each generation bears the cost of the benefits that they enjoy.
That is why we do not borrow to fund our recurrent spending. Doing so means getting our children to fund our current spending. There will be less resources for our children, after repaying such debt. While interest rates may be low now, there is no certainty that we will be able to repay accumulated debt obligations in the future. This is especially so with the uncertain economic outlook, where all countries, including Singapore, will be operating in a tighter fiscal space.
While we have good reasons not to borrow for our current expenditure, the Government is already using debt productively and equitably to generate long-term returns for Singapore.
First, the Government issues debt securities domestically. For instance, to develop the domestic debt market. The borrowing proceeds are invested and we are able to cover the debt servicing costs through the investment returns. Second, as announced in Budget 2019, the Government will guarantee the borrowing by Changi Airport Group to fund the development of Changi East, including Terminal 5. In this way, we leverage the strength of the Government's balance sheet to reduce borrowing costs. The debt repayments will be made during a period when the airport will be generating economic returns.
Lastly, as I had also mentioned in Budget 2019, the Government is considering borrowing for major long-term infrastructure. Long-term infrastructure requires hefty upfront investments and the costs are lumpy. But once built, they benefit many generations of Singaporeans.\tBorrowing for such developments allows us to spread costs equitably across current and future generations, without the need for sharp increases in taxes.
We have done so in the past, we borrow for many worthwhile investments that have benefited several generations such as the first terminal at Changi Airport and our first MRT lines. They will continue to generate growth for future generations of Singaporeans.
I am glad that Members of Parliament have raised concerns about the sustainability of tapping on the reserves. Ms Tin Pei Ling asked whether we are leaving enough reserves behind for future generations. Ms Foo Mee Har and Mr Mohd Irshad asked how the draw would influence our policies, moving forward.
The crisis has underscored the importance of upholding the prudence and discipline of our forefathers to spend responsibly, and prepare for the future. This is why, even as we devote considerable resources to overcome the immediate challenges posed by COVID-19, we must continue to plan ahead to secure a fiscally sustainable future.
In the medium to long term, our structural needs will persist, and significant fiscal outlay will be required. We need to continue investing in healthcare, education and training, and infrastructure, so that we have adequate capacity to take care of our seniors and support an ageing population; so that we give every child a good start, and give every Singaporean the opportunity to re-skill and up-skill to access good jobs, and so that Singapore remains a liveable city and a place we are proud to call home.
These heavy and rising expenditures were known even before the outbreak of COVID-19. COVID-19 has increased the urgency for some of these investments, such as developing advanced medical research and production capabilities, and expanding training capacity for our workers.
It is hence critical that we deploy the right mix of fiscal instruments that meets our principles of prudence and equitable spending. As I mentioned earlier, major long-term infrastructure spending, which requires hefty upfront investments but benefits many generations of Singaporeans, may be financed through borrowing to fairly distribute the cost among those who benefit.
On the other hand, recurrent spending, should be met with recurrent revenues. Such spending primarily benefits the current generation of Singaporeans, and so, it is fair and responsible for all of us to do our part and chip in.
In the Unity Budget, I announced that the GST rate increase will not take effect in 2021. However, we will not be able to put off the increase indefinitely, and this will still be needed by 2025. When the GST rate increase does take place, we will cushion the impact for Singaporeans. Six billion dollars in funds have already been set aside during the Unity Budget for the Assurance Package. This is sufficient to offset at least five years' worth of additional GST expenses for the majority of households, and more for lower income ones.
We will continue to absorb GST on publicly-subsidised healthcare and education. Overall, our taxes and transfers system will remain fair and progressive. With this differentiated and principled fiscal strategy, each generation rightly pays for the benefits that they enjoy, and we do not saddle future generations with our bills. This is an equitable approach, and will continue to be the cornerstone of fiscal sustainability for Singapore.
Mr Speaker, Sir, there is a reason I call this our Fortitude Budget. I announced it in the last week of the circuit breaker. Today, we debate the Budget a few days into Phase One of our reopening.
The Fortitude Budget supports us as we gradually re-open our society and economy, braces us for the difficult months ahead, and prepares us to emerge stronger. During this time, I have seen and felt Singaporeans' fortitude in action. We have been driven and inspired by the fortitude of our people and companies.
Fortitude itself is not an accidental quality. As Mr Christopher de Souza said, it is about courage in adversity. It is forged in crises past, and hardened in crises present. It comes from the strength of mind and character. In the case of Singapore, our fortitude comes too from the strength of our reserves – the financial reserves that I have just spoken about, and just as important, our deep reserves of social capital.
Our social capital is made up of the intangible bonds that unite our multi-racial society. The bonds of trust among ourselves and between people and the Government. Our national conversations on the Singapore we want to build. It is the spirit of Singapore Together, where all parts of society work together in partnership, keeping us strong and united, even as the pandemic fragments many societies.
Minister Josephine Teo and Secretary-General Ng Chee Meng shared how our tripartite structure acts to build fortitude in our workforce. I would like to acknowledge and honour the fortitude of our people.
This crisis has brought out the best in our community. Many Singaporeans have come together to donate their Solidarity Payments to charitable causes. Over 10,000 people have stepped forward over the past two months to volunteer. They run errands for seniors living alone, distribute care packs, manage the National Care Hotline and deliver food supplies to migrant workers and vulnerable families, among others.
For example, during his in-camp training, Mr Rajasegaran Ramachandran stepped up to serve at the frontline as a medic at the Singapore Expo care facility to care for COVID-19 patients as he wanted to do his part for the nation.
Corporates, volunteer centres and community groups have also come together to contribute. And there are many encouraging stories of people helping one another, such as seniors providing mutual support. Mdm Julie Li, at age 82, frequently checked in with fellow seniors on the phone and shared healthy cooking recipes with them during the circuit breaker.
Individuals, too, have shown resilience and adapted to seize new opportunities. Ms Catherine Tang, who has mild autism and works at The Art Faculty store at the Enabling Village, attended online courses during the circuit breaker to improve her customer service skills and support the store's e-commerce platform. I met her over a year ago. It is good to see her keeping so cheerful.
Many public servants across different agencies have been working hard during COVID-19 to help Singaporeans. They coordinate our pandemic response, respond to Singaporeans' queries, implement support measures and keep up regular Government services. Many more have stepped up to take on frontline roles such as safe distancing ambassadors to help keep our communities safe.
Let me express on behalf of this House our appreciation to our many volunteers and donors to our frontline officers and to all our people in Singapore who have taken the precautionary measures seriously and done your part. Every constructive action adds to our social reserves that allow us to face this challenge with fortitude. I encourage more Singaporeans to step forward and help one another in our community.
In fact, contrary to what Mr Singh has mentioned earlier that we are only consulting people inside the business community, the Government has taken extra effort to take a far broader approach. I think yesterday, Miss Cheryl Chan spoke about Our Singapore Conversation and Singapore Together. Just last week, Ministers Desmond Lee, Grace Fu, Indranee Rajah and I had a very good discussion with leaders in our social service agencies. We all felt very cheered by the dedication of our people in the frontline. They were doing their utmost to support our vulnerable people. It is a great example of democracy of deed – of taking action to make a difference. And Ms Yip Pin Xiu mentioned about the sports community and how they are supporting one another.
In growing our social reserves, we must continue to support and care for those who have less and those who have fallen on hard times. We will walk this journey with you and leave no one behind.
Over the last two days, Members of Parliament like Mr Ang Hin Kee, Mr Lim Biow Chuan, Ms Sylvia Lim, Mr Gan Thiam Poh and Mr Louis Ng proposed refinements and additional measures for various groups in our society. I appreciate your feedback and suggestions. In coming out with each of the Budgets, my colleagues and I had reached out through many channels – social service agencies, community partners, unionists and grassroots leaders – to identify where the greatest needs are. We then carefully considered how we can help those who are most in need, especially those among us who are less able to articulate their needs. The result is not perfect but has gone a long way in alleviating pain points.
Mr Zainal Sapari, Ms Foo Mee Har and Ms Anthea Ong asked if we can enhance existing COVID-19 support schemes for low-income workers and households, especially if unemployment persists.
While some COVID-19 schemes such as the Solidarity Payment and Solidarity Utilities Credit cover all Singaporeans, the overall payouts are tilted towards lower- to middle-income groups as they have less to fall back on in difficult times.
During this COVID-19 period, 60% of households can receive additional benefits equivalent to 12% of household income on average. These benefits include cash assistance from the Temporary Relief Fund, COVID-19 Support Grant and Workfare Special Payment, among others. This is a significant sum – double that given out during the Global Financial Crisis.
There may be instances of families who marginally miss the eligibility criteria but also need help. We will assess these on a case-by-case basis, and refine our schemes as the situation develops.
Other Members like Miss Cheng Li Hui, Ms Jessica Tan, Mr Liang Eng Hwa and Ms Sylvia Lim raised concerns on how some Singaporeans may feel marginalised by the rapid adoption of digital technology.
Minister Iswaran laid out our road map for a digital future, with digital inclusion at the heart of our plans. New initiatives like the SG Digital Office, Hawkers Go Digital and Seniors Go Digital will complement existing programmes such as NEU PC Plus and Home Access.
We take your concerns like the need to equip our seniors with cybersecurity awareness seriously. But we should not let fear paralyse us into sticking with the status quo. As the world changes, we want to move fast on digital transformation but more importantly, we are determined to move together in digital inclusion.
Ms Denise Phua, Ms Yip Pin Xiu and Mr Melvin Yong also called for more support for vulnerable groups, including those with special needs and mental health conditions. I thank Ms Denise Phua for reminding us of my statement that social service agencies are a key partner in our support for our people. Ms Denise Phua has made a thoughtful suggestion – or several suggestions, including one to formalise a workstream on employment for people with disabilities within the National Jobs Council. I have just spoken to Senior Minister Tharman and, in fact, both of us welcome her leadership on this and are glad to support her proposal.
Together with our community partners, we have put in resources – finances, networks and systems – over the years to support the vulnerable and I assure members that we will continue to do so.
For example, we have built up physical networks to strengthen social service delivery through the SG Cares Community Network. Such physical links are complemented with digital ones to build up bonds among people and within the community. WE CARE Community Services set up a cloud-based contact centre and tele-counselling facilities so that staff can take calls from their homes to continue serving persons with addiction issues. This approach increased participation rates among its beneficiaries.
Together, the COVID-19 support measures should be seen in the context of the larger suite of measures to protect jobs and livelihoods and support our businesses during this crisis.
Some people have said that the support for jobs is big while the support to me or my household seems small. A thoughtful commentator said to me, it is right that the Government has devoted, as a central plank of the four Budgets, this central focus on supporting our workers to retain their jobs or to move into new jobs, because should the sole breadwinner of the family lose his or her job, the effect on the whole family is much more adverse. So, it is important that we see this in totality, not just what is in each little compartment.
Moreover, bear in mind that our social spending has nearly doubled over the last ten years and this reflects our commitment to invest in and support our people. Ms Joan Pereira, Mr Terence Ho and Ms Yip Pin Xiu spoke on areas that merit additional support. I would like to assure them that even as we battle the pandemic, we will continue our longer-term investments in education, housing and healthcare and continue to uplift our arts and sports sectors. We will take lessons from COVID-19 to continue refining our social support policies to help build stronger families and communities.
Individuals and the community too play a role. Miss Cheryl Chan said, \"the Government can act as a catalyst but we ourselves must be the change makers.\" There is a role for every Singaporean to play. We have the reserves of strength and kindness in each of us to pay it forward in deed or resources to help support someone else.
Moments of crisis are a test of the strength of our reserves and we have the strength – not least of all in ourselves as a people. We have the fortitude to each do our part and emerge stronger.
Mr Speaker, Sir, let me say a few words in Mandarin before I conclude in English.
(In Mandarin): [Please refer to Vernacular Speech.] Today is the fourth day of the post-circuit breaker period. We have entered the first phase of resuming work and school. As we are unable to predict how the COVID-19 situation will evolve, we will need to remain vigilant and observe safe distancing measures. If everyone is socially responsible, it is possible that by the end of June, we will be able to enter the second phase of reopening.
In the past few months, the global economy has been badly hit in terms of demand and supply. As a small and open economy, Singapore has also been severely affected.
In four months, we have introduced four Budgets totaling around $100 billion to deal with the COVID-19 situation to protect our health, save jobs, save livelihoods, save businesses and secure our future.
The Budget not only protects us during the storm and acts as a buffer during the current crisis, it is also a booster that will drive the economy when the storm passes and will help Singaporeans and businesses prepare for the future.
The tripartite partners will continue to work closely. This is one of the key factors that will help us overcome the crisis. However, we should not believe that every job will be saved or all companies will be able to continue operating. Those who are badly hit by COVID-19 and those who need to make structural changes will have to overhaul their business strategies. Only by saving viable businesses can we protect every worker and their livelihoods. Hence, the Government will spare no efforts to create jobs and training opportunities for Singaporeans. The newly established National Jobs Council is also committed to help jobless Singaporeans return to the workplace. At the same time, through various measures complemented by various industry transformation road maps, we will speed up the pace of economic transformation. The Government will also help companies reduce cost and retain their workers.
We will also provide cash grants to Singaporeans, especially to help middle to lower income families manage living expenses, to take care of Singaporeans in need as far as possible.
In other countries, governments have issued debt to finance their relief measures. Singapore is different, because Singaporeans from previous generations and previous governments have been managing our finances prudently. We are able to accumulate national reserves through the years. Thus, we have been able to respond decisively to the crisis without taking on debt. We will use every dollar wisely so that the economy can recover swiftly.
In the future, we are determined to rebuild our economy and work hard for our next generation. We will also need to continue to manage our finances prudently, increase our income through sustainable avenues to meet the needs of recurrent expenditures.
The post-COVID world will be totally different. We must be prepared for the new normal.
The COVID-19 situation has worsened the impact of economic cycles, sped up structural changes in the global economy and deepened the fault-lines between countries. Digitalisation of the economy will be deeper, broader and faster. Market structures, trade flows, people and capital flows will also be affected. Singapore will continue to strengthen trade and economic links with other countries to stabilise our supply chains and trade networks. Companies must move with the times in order to seize opportunities. Workers must also upskill and be willing to take on new jobs.
The COVID-19 situation has also highlighted the challenges faced by people in need. However, it is encouraging that Singaporeans have shown their best during this period, for example, cohesion, empathy, and helping those around us who are in need. I hope Singaporeans will continue to show care for others.
I also hope that through the Singapore Together movement, we will be able to create a more inclusive and caring society.
This is undoubtedly the most serious challenge faced by our generation.
The First World War resulted in a \"lost\" generation. Internationally, there are also discussions on whether lockdowns due to COVID-19 will lead to a \"lockdown\" generation. I strongly believe that Singapore has the capability to overcome the crisis. As long as we work together, stay united and resilient, forge ahead with fortitude, there will be no \"lockdown\" generation. Instead, we will emerge stronger and become a generation that is more united, stronger and more resilient.
(In English): Mr Speaker, Sir, I will now conclude in English. At the start of the speech, I spoke of the great uncertainty ahead and the fundamental shifts that are taking place at an accelerated pace. What does this changed world demand of us? There is no easy answer. We need to adapt and transform ourselves – with agility, creativity and determination. To survive and emerge stronger from the huge uncertainties ahead, we must get three things right.
First, we must have good governance and strong, adaptive leadership – a Government that works with you and for you; that is always honest with our people about the truth; steadfast in preparing and anticipating what lies ahead; and committed to supporting our people and businesses to meet uncertainty head-on and emerge stronger.
We must have strong social reserves, not just in each of us as individuals or just in our different communities, but across all levels and parts of our society, working together and holding one another up with trust and in solidarity. And we must be crystal clear and unwavering about our values and mission – what we stand for and what we are here to achieve. These make up the essence of the Singapore Together movement, which I launched last year to take Singapore forward. More than ever before, these fundamentals will be crucial as we navigate the uncertainties ahead.
Our circumstances have changed over the years, but the Government's aspirations for Singapore have not. It is to be a place where our people, regardless of race, language or religion, can build a better life. We seek to be a vibrant and innovative economy, so as to create good jobs and opportunities for our people; a smart, green, healthy and liveable city that we can be proud to call home; a fair, just and harmonious society where our people care for and support one another; and a safe and secure nation, and a responsible member of the global community.
This is not the first crisis that Singapore has faced nor will it be the last. Past generations of Singaporeans have weathered numerous challenges.
The Pioneer Generation survived the hardships of World War II. The Merdeka Generation grew up in a tumultuous period leading up to Singapore's Independence. In recent times, Singaporeans experienced the Asian Financial Crisis in 1997, the dot-com bust in 2001, SARS in 2003 and the Global Financial Crisis in 2008.
What about our generation? How will we respond to this crisis of our generation? Each generation's crisis and response are different. The one constant is how we have persevered with fortitude and emerged stronger. This time, there will be huge uncertainties ahead. But we will continue to persevere and we will, once again, emerge stronger.
We are fighting this battle from a position of strength. We have a strong fiscal position. Our founding generation left us a legacy of a sizeable Reserve, which we must continue to treasure and build on. We have strong social reserves, supported by mutual trust, close partnerships, strong values and a sense of mutual responsibility and support.
But more importantly, we are fighting this battle from a position of Unity, Resilience, Solidarity and Fortitude. We stand together as one united country and one people.
We are uniquely fortunate to have built up a priceless harmony, sense of common identity and shared destiny, even as we draw on our diversity of strengths and experiences.
We are a resilient people. We will never allow a crisis to bring us down. Even in these trying times, we continue to look ahead. Our people are hardworking and disciplined, willing to learn new skills and adapt. We have enterprising businesses that are ready to grasp new opportunities and thrive in the face of competition.
We stand in solidarity with, and care for and support, one another, especially the more vulnerable members of our society. Our people, businesses, the Labour Movement and the Government stand together in partnership, not in division. We stand in solidarity with countries around the world in this pandemic, building on our assets of trust, reliability and efficiency.
We have the grit to persevere in adversity with fortitude. We will forge new paths and never waver in our efforts to build a stronger Singapore together. We have a strong healthcare system. We have highly dedicated frontline workers who have worked day and night over the last few months to keep us safe. We will overcome this crisis with fortitude and solidarity. We will emerge stronger as an economy, as a society, and as one united, resilient and determined people. [Applause.]
Mr Speaker: Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Thank you, Sir. I just want to reconfirm that what I have heard from the Deputy Prime Minister is correct with regard to the question that I have asked – whether the Government has provided the President with the information on the amount that we have in the Reserves. So, am I right to say – and I just want to confirm with the Deputy Prime Minister – that the answer given by him is, yes, the Government did provide this information?
Mr Heng Swee Keat: I am surprised that Mr Faisal Manap did not hear this statement of mine so clearly. The answer is yes. The Member can go back to the transcript of the Hansard and the recording of this session. But, by the way, I should add that, as I have said – and I hope the Member has heard it – the information is public. It is in our Constitution and it is on the website of MOF.
Mr Speaker: Ms Anthea Ong.
Ms Anthea Ong: Thank you, Mr Speaker. Could I ask Deputy Prime Minister Heng if he could address the question in my speech about asking if he would consider waiving six months' rent for all households residing in rental flats except for those whose rental is already covered under the ComCare scheme?
Mr Heng Swee Keat: I thank Ms Anthea Ong for her question. As I have said at the outset, all Members of this House have spoken extensively on this Budget and if I were to cover every single point, we would go beyond these two hours. But rest assured that whatever good suggestions will be taken up by the various Ministries so that we can respond to each of these.
Mr Speaker: Any other clarifications? Pursuant to Standing Order 44(2), the Motion to consider the Ministerial Statement on the Government's Plans in Our Continuing Fight Against COVID-19 Pandemic lapses at the conclusion of the debate.
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[Mr Speaker in the Chair]
The Chairman: Second Supplementary Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021, contained in Paper Cmd 28 of 2020.
I shall deal first with the Heads of Expenditure in respect of which amendments stand on the Order Paper Supplement. Head M, Ministry of Finance.
The Chairman: Ms Anthea Ong.
Ms Anthea Ong (Nominated Member): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head M of the Estimates be reduced by $100\".
Low-income transnational families have been particularly hard-hit by COVID-19 and circuit breaker measures. According to an AWARE survey with migrant spouses of Singaporean citizens in May, 99% of 36 respondents have either lost their jobs or seen a drastic decrease in income since the onset of COVID-19. Close to half were not earning any income from work because their jobs did not allow them to work from home.
Migrant spouses are particularly vulnerable in times of economic crisis as they are often the first to be let go, especially since COVID-19 related job support schemes do not provide incentives for employers to retain non-citizen workers. Can the Ministry consider funding an online platform to facilitate job-matching for these workers at a national level so that employers looking to hire overseas workers could be encouraged to hire from this pool, which includes migrant spouses, first?
This widespread loss in income is making it difficult for many migrant spouses and their families to meet basic needs. They can receive a $300 one-off Solidarity payment but only if they are on LTVP+. Even so, this amount may be insufficient. According to AWARE's survey, more than half of the respondents reported that, in addition to their current household income, which mostly falls below $2,000, they still need more than $300 a month to meet their basic needs. To cope, some have cut down on food-related expenses; a few said they were unable to pay rent.
Can the Government consider relaxing the citizenship criteria for COVID-19 related financial assistance and make them available for all migrant spouses with a Singaporean in their household? Only when we include those who have chosen to make Singapore home and help raise our children can we truly say we are “SG United”.
[(proc text) Question proposed. (proc text)]
The Chairman: Minister Indranee.
The Second Minister for Finance (Ms Indranee Rajah): Mr Chairman, if I may now address Ms Ong’s questions on support for transnational families and migrant spouses.
The support schemes announced at the various Budgets aim to provide support to Singaporean households, including those with non-citizen members, who may be concerned over household expenses during this period. These include household-based benefits like GST Voucher – U-Save rebates and Service and Conservancy Charges Rebate under the Care and Support Package, and the Solidarity Utilities Credit. Transnational families would already be receiving support through the $600 Solidarity Payment to the citizen member, and $300 Solidarity Payment to the PR or LTVP+ spouse. This was explained by the Deputy Prime Minister during the round-up of the Solidarity Budget and in response to a Parliamentary Question from Mr Murali Pillai last month.
If they or their Singaporean family need further financial support during this challenging period, they may seek help through the MSF Social Service Offices (SSOs), which provide assistance to those who fall into financial hardship. MSF has exercised more flexibility when considering ComCare applications during this period, to ensure affected Singaporean families, including those with non-citizen members, can get help. SSOs will also work closely with other agencies and partners to address the family’s needs, including employment concerns. There are also many Social Service Agencies and those in the community providing support to families in need. These include Social Service Agencies funded by MSF to support transnational families.
Migrant spouses who are allowed to work can access work opportunities through many channels, including job advertisements, referrals, recruitment agencies and various online platforms.
The Chairman: Would Ms Anthea Ong like to withdraw the amendment?
Ms Anthea Ong: Mr Chairman, I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $3,650,000,000 for Head M ordered to stand part of the Second Supplementary Main Estimates. (proc text)]
The Chairman: Head O, Ministry of Health. Ms Anthea Ong.
Ms Anthea Ong: Chairman, I beg to move, \"That the total sum to be allocated for Head O of the Estimates be reduced by $100.”
As Singapore extends safe distancing measures to protect lives, we must remain aware of how doing so leads to not only “costs” for our economy and businesses, but real and significant detriments to our mental health. The World Health Organization (WHO) has confirmed “widespread psychological distress” in COVID-19 affected populations, with mental distress being reported in 35% of the population surveyed in China and 45% in the United States.
A similar picture of a “mental health pandemic” is being observed in Singapore. In an Ipsos survey of 1,000 Singaporeans between late April and early May, one in four respondents said they were not in good mental health. Our national suicide prevention hotline, operated by the Samaritans of Singapore (SOS), received 23% more calls in April from March. Caregivers Alliance Limited (CAL) has shared with me that their caseloads have significantly increased in the last three months, with many care-givers reporting increases in mental health relapses and crisis incidents experienced by their care recipients, four of them have even lost their loved ones to suicide just in the last six weeks.
To deal with the psychological fallout from COVID-19, countries like New Zealand and Scotland have relied heavily on mental health experts in their COVID-19 response. The extended safe distancing measures for Phase One of exiting the circuit breaker is likely to prolong mental distress, as we continue to deal with social isolation, the lack of personal space, and disruption to routines. Would the Ministry consider appointing mental health experts for the Multi-Ministry COVID-19 Task Force, to advise on mental health implications as we extend the stringent safe distancing measures to re-open cautiously?
Singapore’s economic woes are likely to continue for the long term, as GDP growth forecasts have been downgraded from -4% to -7%. As the resident unemployment rate climbed to a 10-year high of 3.3% in March, a survey by Profile Asia indicated that many employees are facing increased levels of stress dealing with uncertainty over future pay cuts and their jobs.
Deputy Prime Minister Heng talked about seeking out “opportunities in adversity” during his Fortitude Budget Statement. The COVID-19 crisis also offers us an unprecedented opportunity in equipping businesses and workers for the rebound through improving workplace wellness. A recent report has linked business recovery from COVID-19 to a sustained focus on employee well-being. Would the Ministry consider appointing at least one mental health expert on the Emerging Stronger Task Force to advise on well-being policy interventions to strengthen our recovery from this crisis?
[(proc text) Question proposed. (proc text)]
The Chairman: Senior Minister of State Dr Amy Khor.
The Senior Minister of State for Health (Dr Amy Khor Lean Suan): The mental health of our nation is important, and the Government is committed to taking care of the mental well-being of Singaporeans, especially during this COVID-19 crisis. The pandemic has resulted in increased stressors that impact our mental well-being, given the changes in daily routines, social isolation and economic uncertainty.
Hence, more support needs to be put in place to address the mental stress that the COVID-19 pandemic and circuit breaker measures have brought about. The Multi-Ministry Task Force (MTF) recognises this and has been tapping on mental health professionals from MSF, MOH and MOE to give inputs on the psychological aspects of COVID, and in the enhancement and development of mental health initiatives.
Our public healthcare institutions (PHIs) continued to provide essential mental health services during the circuit breaker period. Some of our community mental health partners continued to conduct urgent home visits for vulnerable clients and those at risk of self-harm, harm to others, or at-risk of deterioration. Tele-consultations were also adopted by PHIs and community service providers so that they remain connected with their clients to ensure their mental health needs are supported.
A specific initiative developed is the new 24-hour National CARE Hotline (NCH). The NCH, which came into operation in April 2020, is manned by volunteers comprising trained psychologists, counsellors, social workers and other professionals, and provides support to the larger community on mental health concerns, such as anxiety and adjustment issues related to COVID-19.
For employees, MOM, along with other agencies, such as MSF, AIC and NCSS, issued an Inter-Agency Advisory with practical steps to support employees’ mental well-being and provided counselling resources for employers and workers to tap on.
For students, school counsellors continue to support those in need through face-to-face and online sessions. Vulnerable students were actively identified for further support and invited to return to school during the CB period. MOE also provided students with Holiday Care Packs containing resources and helplines on mental well-being and cyber wellness.
For the elderly, the Silver Generation Office reached out to some 47,000 vulnerable seniors to refer them to assistance as required, including befriending and mental health services. As we gradually ease movement restrictions, we have also paid special attention to addressing the well-being of seniors. The decision to allow children to visit their parents or grandparents is one example.
The Emerging Stronger Task Force (EST) was set up primarily to develop recommendations on how Singapore should refresh, reimagine or reset its economic strategies, to stay economically resilient and build new sources of dynamism in the post-COVID-19 world. Hence, besides the two co-chairs, the remaining members are industry representatives. Nonetheless, the EST has committed to consult multiple stakeholders to draw on insights beyond its membership.
MOH, together with the relevant partners and agencies, will continue to ensure that mental health support and services are accessible to persons in need. We will take into consideration the impact of COVID-19 on mental health as we undertake a whole-of-Government review of our mental health strategy and study ways to further strengthen our community mental health services to support new vulnerable groups that may emerge due to COVID-19.
The Chairman: Any clarifications?
Ms Anthea Ong: Thank you, Mr Speaker. I thank the Senior Minister of State for the response. Could I then ask if MOH has the intention to increase funding for these community health organisations? Many of them have actually shared with me that, well, we know that there is a long tail to the mental health impact and they are also sharing that increased funding would really help them in terms of increasing their capacity.
Dr Amy Khor Lean Suan: In this Fortitude Budget, MOH has an increased budget to implement many of the COVID-19 management measures. I have no doubt that even as we undertake a whole-of-Government review of our mental health strategies to strengthen mental health services, where there is a need to access additional funding, that could be put into the next Budget, if necessary.
The Chairman: Would Ms Ong like to withdraw the amendment, please?
Ms Anthea Ong: Chairman, I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $7,000,900,000 for Head O ordered to stand part of the Second Supplementary Main Estimates. (proc text)]
The Chairman: Head V, Ministry of Trade and Industry. Ms Anthea Ong.
Ms Anthea Ong: Chairman, I beg to move, \"That the total sum to be allocated for Head V of the Estimates be reduced by $100.\"
I would like to declare my interest as an impact investor and also founder of social enterprise Hush TeaBar and A Good Space Co-operative. Both are start-ups.
The Deputy Prime Minister announced that $285 million will be set aside to support “promising start-ups”. I appreciate that this is a longer term view to maintain our attractiveness and robustness as one of the top start-up eco-systems in the world. However, start-ups are inherently risky and identification of \"promising start-ups\" is often a hit-and-miss endeavour. I know this as an investor and an entrepreneur. Economic downturns often sift the wheat from the chaff, leaving the most resilient ones behind. By intervening in the sifting process, is there a danger of the Government artificially propping up ailing start-ups and distorting market forces? Moreover, an inability to adapt to the changing economic landscape by continuing to rely on Government financing seems to go against the spirit of start-ups.
What was the reason behind dedicating $285 million to support \"promising start-ups\", which can also tap into the many support schemes for SMEs, over other areas of spending, such as extending greater support to struggling households like public rental waivers? Which immediate concerns or areas of national priority will the $285 million be used to address, for example, climate change? What are the checks and balances in place to ensure that the $285 million will be effectively utilised?
[(proc text) Question proposed. (proc text)]
The Chairman: Senior Minister of State Dr Koh Poh Koon.
The Senior Minister of State for Trade and Industry (Dr Koh Poh Koon): Mr Chairman, start-ups play an important role in our economy. They contribute to the development of new technologies and the rejuvenation of traditional industries. We have set aside $285 million in the Fortitude Budget to provide financing support for promising start-ups. Ms Anthea Ong asked why our start-ups need more help and how we intend to identify the promising ones. In fact, the answer is in her question. The keyword here is \"promising\".
Start-ups, especially those that work on cutting-edge technologies, need to be nurtured with long-term patient capital. COVID-19, unfortunately, has sharply curtailed the availability of such capital. The Special Situation Fund for Startups is intended to fill this gap. Other countries like the UK and France have introduced similar measures.
Without help from the Government, many high potential start-ups will likely scale back their innovation activities or even cease prematurely. That will be a loss to Singapore and will certainly have a detrimental impact on Singapore's innovation eco-system, which we have painstakingly built up over the years. By helping promising start-ups sustain their growth momentum, we want to maintain the vibrancy of our eco-system and maximise the value of our innovation-related investments.
To impose market discipline, the scheme will operate on a co-investment basis with private sector investors that have expertise in assessing the value and viability of start-ups. This will also help crowd in more private capital. These co-investors can also offer industry insights, networks and even mentorships to help our start-ups to succeed better.
Mr Chairman, the COVID-19 pandemic presents many immediate challenges. But even as we address the immediate ones, we must not forget to put in place plans for our future, so that Singapore, our companies and Singaporeans can emerge stronger post-COVID-19. Start-ups are a critical part of these plans.
The Chairman: Any clarifications?
Ms Anthea Ong: Thank you, Mr Chairman. I thank the Senior Minister of State for the response. I am very happy to hear that we will be co-investing in these start-ups. Could I ask the Senior Minister of State if there is a plan in this co-investing to take equity or is that in the form of grants? And if, once the start-ups are on their way to growth, would we then ask for a clawback of the initial investment or grant?
The Chairman: You have eight seconds.
Dr Koh Poh Koon: Mr Chairman, I thank the Member for the question. Under this scheme, the Government will co-invest in the selected start-ups, together with the private sector, on a one-to-one basis via convertible bonds. A convertible bond is of one of the most expedient instruments to invest into a company in this current COVID-19 situation as discussions on equity valuation can be deferred to the next funding round, hopefully, when the economic situation is better.
The Chairman: Would Ms Ong like to withdraw the amendment?
Ms Anthea Ong: Mr Chairman, I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $1,851,670,000 for Head V ordered to stand part of the Second Supplementary Main Estimates.(proc text)]
[(proc text) The sum of $1,710,800,000 for Head V ordered to stand part of the Second Supplementary Development Estimates.(proc text)]
The Chairman: Head S, Ministry of Manpower. Assoc Prof Walter Theseira.
Assoc Prof Walter Theseira (Nominated Member): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head S of the Estimates be reduced by $100.\"
Sir, many Singaporean workers who have lost income due to COVID-19 have benefited from the Government's income support schemes. These help schemes are differentiated between employees, who are eligible for the COVID-19 Support Grant, and the self-employed, who are eligible for the Self-employed Person Income Relief Scheme (SIRS).
I believe the Government has sought to address the different needs of each group in designing these schemes. However, the maximum cash assistance quantum at $9,000 is higher for the SIRS than for the Support Grant at $2,400. Inclusion in SIRS is also automatic for qualifying Singaporeans, whereas the Support Grant must be applied for.
This difference in benefits has caused some concern among workers who believe that their employment classification – as an employee or as a self-employed person – does not accurately reflect how they work, their control over their income, and their COVID-19 income risks. There are also workers who are not sure which group they belong to.
I will give two examples. Our Universities engage adjunct instructors to teach. They are paid on a piece rate per course. This was previously considered self-employment. The Universities were informed this treatment was incorrect. Therefore, the Universities switched to using contracts of service, which made them employees. But the adjuncts are actually still paid on a per-course basis. Nothing has changed about their work. They still lack the income security of full-time or even part-time employees, although they now do get CPF contributions.
Another example is that of workers who are unsure of their status. I was told that a hair stylist needed to apply for a COVID-19 income support grant. Is the hair stylist an employee or self-employed? It turns out that this person operates under a reverse commission model. The stylist works in a hair salon, she pays the salon owner a percentage of the revenue she brings in. This sounds like self-employment. But then, the salon owner may believe that the stylist works for them and may impose conditions on how and when they work. These cases often have no formal contract or they have a contract which is poorly drafted. An appeal was made demonstrating self-employment and I believe the stylist got their SIRS payment. But the point is that these work arrangements are not always easy to classify sometimes.
Sir, a worker who faces income risks due to COVID-19 needs help, regardless of how they are classified. Can we do more to ensure that help is calibrated to the workers' actual income risks and income level, rather than their classification status? For example, if a part-time or contract employee faces substantial income risks, because they are hired on a case-by-case basis, could they be considered for SIRS benefits instead? We should also review the legal status of different work arrangements. Other countries are exploring an intermediate classification between employment and self-employment for gig-economy workers and those whose work is under the partial control of another. So, really, to cope with the severe shocks induced by COVID-19, we should aim for benefits tailored to income risks, rather than tailored to the classification of the worker.
[(proc text) Question proposed. (proc text)]
The Chairman: Ms Anthea Ong, you can take your two cuts together.
Ms Anthea Ong: Yes, Mr Chairman. Businesses have been hard-hit by COVID-19. Not referenced in the Fortitude Budget is the impact of the pandemic on the mental well-being of employees. I have mentioned earlier that in a survey of business leaders and HR professionals, nearly one in two Singaporeans has had their mental health adversely affected by COVID-19.
A recent survey also found that employees without managers attuned to their well-being are 61% more likely to say they have been less productive. Hence, establishing workplace adjustments for mental health must be an urgent priority for business and overall economic recovery. The inter-agency advisory for employers to support employee well-being, which Senior Minister of State Amy Khor alluded to earlier, is a step in the right direction.
Protecting jobs is as important as protecting employability, which includes mental well-being. Can the Ministry integrate the inter-agency advisory into the Job Support Scheme (JSS) such that beneficiary employers must demonstrate effort to introduce workplace adjustments to support their employees? I propose that businesses should adopt Employee Assistance Programmes (EAPs), mental health insurance coverage for employees and/or other well-being programmes to qualify for JSS payouts in July and October.
Also, will the Ministry consider encouraging these progressive well-being practices with further incentives? I propose that the Ministry expands the scope of the Enhanced Work-Life Grant beyond flexible working arrangements (FWAs), for funding EAPs and/or other well-being programmes.
Next cut. The Government has signalled that the COVID-19 Support Grant is an important—sorry, that is the wrong one.
The Chairman: It is okay, the clock is ticking.
Ms Anthea Ong: Yes, I know. Sorry. I missed that.
The intention behind the Jobs Support Scheme (JSS) to protect jobs and salary is welcome. However, abuse has been ongoing. MOM has received complaints about companies taking JSS monies and not using them to support their employees. It appears that workers have been threatened with dismissal if they complain about their employer's errant behaviour. IRAS announced on 3 June 2020 that employers who abuse the JSS may be charged under the Penal Code and face imprisonment and a fine. I applaud this strong stand against abuse of the scheme. However, I also note that IRAS continues to encourage individuals to report malpractices and abuses of JSS. Despite IRAS' promise that whistle-blowers' identities will be kept strictly confidential, I foresee many cases in which this will pose little obstacles to the employer discovering the identity of the whistle-blower. Some complaints may never make it to the authorities because the employees do not know of the avenues for complaint or are afraid of souring their relationships with their employers. This is particularly true for elderly or lower income employees who will be most affected by the loss of their jobs and are consequently more vulnerable to exploitation.
To empower employees to make complaints against errant employers and protect the most vulnerable in our workforce, will the Government consider a strong whistle-blowing protection law similar to the protected disclosures regime in the UK's employment Rights Act 1996 that is adequately communicated to all workers so that they are aware of the channels and feel safe exercising their right to whistle-blow. Further, instead of relying on goodwill, should there be a mechanism to make companies that are unaffected by or even profiting from the crisis return their JSS payouts?
The Chairman: Ms Low Yen Ling.
The Senior Parliamentary Secretary to the Minister for Manpower (Ms Low Yen Ling): Mr Chairman, as we go through these challenging times, the Government is committed to protecting livelihoods and sustaining businesses. The support provided through the Unity, Resilience, Solidarity and Fortitude Budgets is targeted to help keep businesses viable and workers employed, so that they can tide over this crisis and recover quickly as the economy restarts.
MOM, with the support of the four Budgets, seeks to achieve this in three ways, namely: one, ensuring fair support for all workers – both for the employees and self-employed persons (SEPs); two, championing fair employment practices; and three, promoting mental well-being in our workplaces.
Firstly, ensuring fair support for all workers. The Jobs Support Scheme (JSS) has cushioned the impact of the COVID-19 outbreak on the labour market by helping employers to hold on to their employees and continue paying their salaries, even during the Circuit Breaker period.
We introduced the SEP Income Relief Scheme (SIRS) to help Singaporean SEPs with less means and family support tide over this difficult period. Although SIRS is means-tested, the Government has taken into consideration that these are unprecedented times. For comparison, usually, about 50,000 SEPs receive Workfare each year. In other words, they are assessed to need more help. SIRS has now benefited over 120,000 SEPs – more than double the usual number of Workfare recipients.
We understand that many SEPs may have seen their incomes fall. Nonetheless, the income criterion serves as a proxy for their ability to save and, therefore, the likelihood of their ability to tide through periods of less earnings.
It should also be noted that about 80% of the personal income taxpayers earn incomes below the SIRS criterion of $100,000 a year or about $9,000 a month. In other words, one would have to be in the top 20% taxpayers' bracket to exceed the SIRS criterion.
As for the Annual Value (AV) of property criterion, it serves as a proxy for wealth and family support. The Government has similarly sought to cover more people under SIRS. The AV criterion of $21,000 covers about nine in 10 owner-occupied residential public and private properties.
We understand that some of the SEPs who exceed the AV criterion may not themselves own these higher-end properties. Rest assured they can still appeal to be considered for SIRS. We will work with NTUC to assess the circumstances on a case-by-case basis and ensure that the scheme helps SEPs who most need it. Even if an appellant is not eligible for SIRS, we will certainly connect him or her with other relevant agencies like the Social Service Offices (SSOs) to offer other forms of assistance.
Mr Chairman, in administering schemes and programmes, such as SIRS, the Government has always partnered various like-minded organisations to better serve Singaporeans and our businesses. This is a key feature of tripartism and has served our Singaporean workers very well.
For instance, we work with the Singapore National Employers Federation (SNEF), NTUC's Employment and Employability Institute (e2i) and Singapore Manufacturing Federation (SMF) to administer the Work-Life Grant (WLG). Likewise, the Singapore Business Federation (SBF) is our appointed programme manager for SGUnited Traineeships, working with host companies to review and approve the scope and development plans of the proposed traineeships.
Other Government agencies, such as Enterprise Singapore (ESG), have also partnered with Trade Associations and Chambers (TACs) to administer schemes for companies. In governing these schemes, the responsible Ministries and agencies determine the policy parameters, including the eligibility criteria. The Ministries set clear boundaries within which our partners must operate, and any exceptions would require the Ministry’s approval.
Mr Chairman, over the past few years, several Members of Parliament and members of the public have raised concern that some employees could be misclassified as SEPs and, as a result, not received CPF contributions from their employers and other employee benefits, such as leave entitlement. Assoc Prof Walter Theseira also raised this question earlier in his cut.
In determining whether an individual is an employee or SEP, the Singapore Courts consider factors, such as the degree of control exerted by the company and its ability to decide on the hours of work. However, given the wide variety of work arrangements today, each case must be evaluated based on the specific circumstances. The Government applies a similar approach to the Courts when assessing the employment status of an individual.
To ensure that the employees are not misclassified as SEPs and denied their statutory employment benefits, MOM follows up on complaints – every one of them that we received – and ensures that the employers make rectifications where needed. For example, arising from feedback from adjunct teaching associates a few years ago, MOM worked with our Autonomous Universities to ensure that the CPF contributions and leave entitlements were provided to those working as employees.
I understand that during the circuit breaker period, adjunct teaching associates have continued to receive full salaries from their Universities which are supported by the JSS payouts.
Secondly, championing Fair Employment practices. The Government has provided substantial support through the Jobs Support Scheme (JSS) to help our employers retain and pay local workers. Deputy Prime Minister Heng recapped and shared with us that the JSS amounted to $23.5 billion, protecting 1.9 million jobs for Singaporeans. Employers should act responsibly and fairly, and make sure that they are ensuring that their local workers are given wages even if they are unable to work.
I want to assure Ms Anthea Ong that the Government takes a very serious view of irresponsible, unfair or fraudulent employment practices, including false reporting of workers' CPF payments by employers to obtain higher JSS payouts. We take a whole-of-Government approach to identify such fraudulent cases. As highlighted in the media release by IRAS on Wednesday this week, there are severe penalties for any attempt to abuse the JSS.
I want to assure Ms Ong that workers need not be afraid to come forward to report any infringement of employment laws, because the Employment Act protects them from wrongful dismissal by employers, especially those who seek to punish workers for exercising their rights.
Employers who wrongfully dismiss their workers may be ordered to pay compensation or to reinstate workers to their former jobs. Errant employers may also see a withdrawal of Government-paid employment support or suspension of their Work Pass privileges. MOM takes all feedback on employment law infringements very seriously.
During this difficult period, workers and employers have to work even more closely together than ever before and strive to maintain open channels of communication. As Mr Louis Ng pointed out, employees may need greater work flexibility to deal with the disruptions that arise due to COVID-19. Likewise, Mr Desmond Choo and Ms Sylvia Lim raised points regarding the challenges of workers, in particular, women, face and how Flexible Work Arrangements (FWAs) can benefit employers, employees and the society in the long run.
FWAs help workers better prepare and better balance their commitments at home and at work, and enable women to remain in the workforce, gain work experience, earn higher wages and assume leadership positions. MOM has been working with the tripartite partners to improve workers' access to FWAs, such as by providing support via the Work Life Grant (WLG) and recognising progressive employers through the Tripartite Standard on FWAs.
As a result of COVID-19, many more companies are working from home now and are benefiting from FWAs. We will seize the opportunity to continue this momentum and ensure that work-from-home arrangements are sustained beyond the COVID-19 period. This will not only strengthen business resilience; it will better support work-life harmony for all workers.
Thirdly, ensuring workers' mental well-being. As more businesses gradually resume operations, workers will take some time to adjust to the new normal as well as different working arrangements. Since the start of COVID-19, there has been many changes and adjustments. We understand that workers may face additional stress, and some may have mental health challenges. I agree with Ms Anthea Ong that we must look into our workers' mental health as we also seek to protect as many jobs as possible during this challenging period.
Ms Ong had suggested that we consider introducing additional requirements to qualify for JSS payouts. However, the intent of JSS is, as I have mentioned earlier, to help the companies retain and pay for local workers. It is to help as many companies stay afloat and keep jobs for Singaporeans. So, really, the JSS is a temporary scheme designed to help companies save jobs for Singaporeans during this period of economic uncertainty. Adding too many conditions would only make it more difficult for the employers to benefit from JSS or, inadvertently, cause a delay in employers getting the urgent help they need. Jobs may be lost if the employers do not get timely help.
Instead, we have been working on other ways to encourage our employers to implement progressive practices and workplace adjustments to take care of our workers' mental health needs in the workplace.
During the Committee of Supply (COS) in March, Ms Ong will remember that MOM announced that we will formulate a Tripartite Advisory on Mental Well-being to educate our employers on basic mental health knowledge and make available the resources to help them. We will work with the tripartite partners to evaluate the possibility of including an Employee Assistance Programme as well as insurance coverage for mental health as part of the upcoming Tripartite Advisory, which will be finalised in the second half of this year.
We are also working closely with the various Government agencies and the Labour Movement to provide our employers with resources that can support their workers' mental well-being.
Mr Chairman, what I have just shared are ways in which we are supporting our workers and employers to overcome the challenges arising from COVID-19. During the circuit breaker, we have all come across many heart-warming and heartening stories of how businesses, workers and Singaporeans are rallying behind one another as one community. As we slowly reopen the economy and transit to a new normal, I am confident that the unity and the fortitude of our workers and the employers will see us through this crisis and help us emerge stronger together.
The Chairman: Clarifications. Ms Anthea Ong.
Ms Anthea Ong: Mr Chairman, I thank Senior Parliamentary Secretary Low for her response. I would like to ask if the Senior Parliamentary Secretary could answer my question. Should there be a mechanism to make companies that are unaffected by or even profiting from the crisis return their JSS payouts? That is one. Secondly, I am very heartened that the Senior Parliamentary Secretary is reiterating that employees should come forward because they are protected under the Employment Act, if they have errant employers.
How are we actually making sure that this is made known, particularly to the more vulnerable employees, that they have this right? Many of them are sharing with me that they are so afraid to come forward because, first of all, they do not know they have this right and, secondly, they are worried about employers actually making life harder for them.
The Chairman: The longer the question, the shorter the answer.
Ms Anthea Ong: I will just keep it to two then, Mr Chairman, on your cue.
The Chairman: You have 20 seconds.
Ms Low Yen Ling: Thank you. I want to thank the Member, Ms Anthea Ong, for her supplementary question. On the first one about whether there are companies profiteering from the crisis. Earlier on, I mentioned that the JSS is targeted to help companies retain and pay their local workers. In designing the JSS, MOF as well as MOM and the various Ministries sought to achieve a balance between targeted assistance and also administrative efficiency, because this is really a crisis period. You want to make sure that the help reach the intended target audience as expeditiously as possible and make sure that we save every job. So, we strike a good balance between targeted assistance and administrative efficiency in designing the JSS.
I would like to inform Ms Ong that a large percentage of our firms and local employees, as the Deputy Prime Minister has mentioned, will be severely impacted. And earlier on, when he reminded us that the JSS amounted to $23.5 billion protecting 1.9 million jobs, two-thirds of our SMEs benefit from this. It is really important to provide the support to them. So, the question the Member asked —
The Chairman: Kindly wrap up, Ms Low.
Ms Low Yen Ling: So, to identify and exclude individual employers from this scheme will certainly need another level or, in fact, a few levels of administrative operations to sift through, especially when the eventual economic impact to them remains uncertain. It may not be administratively efficient to do so. So, I just want to share the balance between providing the help in an efficient way to the target audience vis-a-vis operational complexity. Now, I also want to reassure Ms Ong —
The Chairman: Ms Low, can you just wrap up quickly?
Ms Low Yen Ling: Yes. I want to assure Ms Ong that any irresponsible or unfair, fraudulent employment practises, including a false reporting of CPF contributions and so on will be dealt with severely and we will not hesitate to take actions accordingly. And we really urge the workers to report such errant employers. The Member will be familiar with our various programmes like Work Right and so on. We do have MOM officers going out not just to big companies, but also to small ones to share with them the rights of our workers, what are their rights under the Employment Act and how they would be protected. So, they need not fear because the Employment Act protects them, especially those who have been wrongfully dismissed.
The Chairman: Thank you. Would Ms Ong like to withdraw your amendment, please?
Assoc Prof Walter Theseira: Chairman, it is myself who is withdrawing the amendment.
The Chairman: That is right. Assoc Prof Walter Theseira.
Assoc Prof Walter Theseira: Chairman, I wish to thank the Senior Parliamentary Secretary for her kind replies. May I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $3,122,917,400 for Head S ordered to stand part of the Second Supplementary Main Estimates. (proc text)]
[(proc text) The sum of $59,711,200 for Head S ordered to stand part of the Second Supplementary Development Estimates. (proc text)]
The Chairman: Head I, Ministry of Social and Family Development. Ms Anthea Ong.
Ms Anthea Ong (Nominated Member): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head I of the Estimates be reduced by $100\".
The Government has signalled that the COVID-19 Support Grant (CSG) is an important piece in the array of COVID-19 welfare schemes by pumping in $800 million as part of the Fortitude Budget. However, I would like to bring attention to several aspects of the scheme that obstruct it from fully meeting the needs of those who need it most.
First, its overly strict eligibility criteria. Applicants have to first show that they have lost or will lose income over three months. For those whose initial conditions of no pay leave or reduced income do not reflect at least three months, they will have to wait to become eligible for CSG. This will be the case for most employees, especially lower wage workers, many of whom who do not even have a document from their employers spelling out conditions of leave. It would be inconceivable to expect employers who lay off employees to provide a confirmation that the employee will have three months of income lost, nor is it logical to expect individuals to show loss of future income of at least three months now.
From May 2020, there is no interim support scheme that can help to tide such individuals over. Further, the amount and duration of support provided under CSG is ungenerous, especially when compared to the Self-employed Persons Income Relief Scheme (SIRS). Crucially, members of society in precarious positions are excluded from CSG, such as individuals with no bank account or daily-rated workers.
Hence, I recommend that the Government reduce the required period for involuntary no pay leave or duration of income loss from three consecutive months to one month and allow individuals with no bank account and daily-rated or ad hoc workers to be eligible for CSG. The duration of support should also be extended from three months to nine months or when applicants are able to secure a job, whichever is earlier.
If the Ministry disagrees, individuals who have been financially affected by COVID-19 will be forced to apply for ComCare financial assistance in the interim or after they have exhausted their full CSG payout. Given the almost five-fold difference in income eligibility criteria of CSG versus ComCare, will the Ministry consider enhancements to ComCare such as: (a) increasing the income eligibility caps for ComCare and (b) increasing the flexibility with regard to supporting documents required? For instance, instead of strictly requiring bank statements, one could be allowed to produce documents that show job or income loss.
[(proc text) Question proposed. (proc text)]
The Chairman: Senior Parliamentary Secretary Muhammad Faishal Ibrahim.
The Senior Parliamentary Secretary to the Minister for Social and Family Development (Assoc Prof Dr Muhammad Faishal Ibrahim): Mr Chairman, the COVID-19 Support Grant (CSG) supports lower to middle income Singaporeans or Permanent Residents who, as a result of the economic impact of COVID-19, are presently (a) involuntarily unemployed due to retrenchment or contract termination; (b) placed on involuntary no-pay leave (NPL) for at least three consecutive months; or (c) experiencing reduced monthly salary of at least 30% for at least three consecutive months.
While MSF provides support for affected employees through CSG, employees are also supported through the Jobs Support Scheme. Self-employed persons (SEPs) are mainly supported through the Self-employed Persons Income Relief Scheme or SIRS.
Employees who have lost their jobs can apply for CSG immediately without waiting for three months.
Employees who are placed on involuntary NPL or experiencing reduced monthly salary need not wait till they are affected for three consecutive months to apply. They are eligible for CSG if their NPL or salary loss has already started and they provide supporting documents, such as a letter from their employer, showing that the involuntary NPL or salary reduction will be for at least three consecutive months. The \"three or more consecutive months\" requirement for involuntary NPL and salary loss scenarios is to ensure that help is channelled to those who have greater needs.
Daily-rated and ad hoc workers may qualify for CSG if they meet the eligibility criteria. Workers who do not have employment contracts due to the nature of their work may approach their nearest Social Service Offices or SSOs to make a self declaration on their employment status. This includes daily-rated and ad hoc workers. SSOs will undertake further checks against applicants' past CPF records and facilitate their CSG application if they qualify. Individuals eligible for CSG and without bank accounts can approach SSOs for assistance.
Those who are ineligible for CSG and are in financial need can apply for ComCare, which provides financial assistance for basic living expenses and other support such as household bill expenses and medical expenses. In general, those who are newly placed on ComCare will receive at least six months of assistance, which provides them with a longer runway to regain stability.
For those with urgent financial needs, SSOs, grassroots organisations and Family Service Centres can provide them with ComCare Interim Assistance.
ComCare Short-to-Medium-Term Assistance (SMTA) and Interim Assistance have income eligibility criteria of a monthly household income of $1,900 and below or per capita household income of $650 and below.
The Chairman: Senior Parliamentary Secretary Muhammad Faishal Ibrahim, please wrap up.
Assoc Prof Dr Muhammad Faishal Ibrahim: These are not hard thresholds and each case is considered on its own merit. Supporting documents including bank statements and payslips enable SSOs to accurately assess the applicants' circumstances, savings and needs. SSOs exercise flexibility as needed to provide the necessary financial assistance and social support. SSOs can conduct their interviews and assessments electronically and applicants can submit their supporting documents via email.
While CSG is open for applications from May 2020 till September 2020, the Government will continue to review our support schemes for those who need help, taking into account how the COVID-19 situation evolves.
The Chairman: Ms Ong, would you like to withdraw the amendment, please?
Ms Anthea Ong: Thank you, Senior Parliamentary Secretary, for your response. Mr Chairman, I beg leave to withdraw the amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $1,063,442,000 for Head I ordered to stand part of the Second Supplementary Main Estimates. (proc text)]
The Chairman: I shall now deal with the remaining heads of expenditure in respect of which no amendment stands on the Order Paper Supplement. In respect of the Second Supplementary Main Estimates, they are Heads K, Q, T, U, X and Z. I propose to take those Heads of Expenditure en bloc.
[(proc text) Question, \"That the sums stated for the Heads K, Q, T, U, X and Z as shown on page 7 of Paper Cmd 28 of 2020 stand part of the Second Supplementary Main Estimates\", put and agreed to. (proc text)]
The Chairman: In the respect of the Second Supplementary Development Estimates, it is Head T.
[(proc text) Question, \"That the sum of $500,000,000 for Head T stand part of the Second Supplementary Development Estimates\", put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $41,042,104,400 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Second Supplementary Main Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021 contained in Paper Cmd 28 of 2020\", put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $2,270,511,200 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Second Supplementary Development Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021 contained in Paper Cmd 28 of 2020\", put and agreed to. (proc text)]
[(proc text) Resolutions to be report. (proc text)]
[(proc text) Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Speaker: Minister Indranee Rajah.
The Second Minister for Finance (Ms Indranee Rajah): Mr Speaker, I beg to report that the Committee of Supply has come to certain resolutions.
[(proc text) First resolution to be reported, (proc text)]
[(proc text) \"That the sum of $41,042,104,400 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Second Supplementary Main Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021 contained in Paper Cmd 28 of 2020.\" (proc text)]
[(proc text) Second resolution to be reported, (proc text)]
[(proc text) \"That the sum of $2,270,511,200 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Second Supplementary Development Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021 contained in Paper Cmd 28 of 2020.\" (proc text)]
Ms Indranee Rajah: Mr 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":"Second Supplementary Supply (FY 2020) Bill","subTitle":null,"sectionType":"BP","content":"[(proc text) Order for Second and Third Readings read. (proc text)]
The Second Minister for Finance (Ms Indranee Rajah): Mr Speaker, I beg to move, \"That the Bill be now read a Second Time.\"
The purpose of this Bill is to make additional provision in accordance with Articles 148(2) and 148C(2) of the Constitution for expenditure in excess of the sums authorised by the Supply Act 2020 and the Revised Supplementary Supply (FY 2020) Act 2020 The additional sums have been approved by the House in the Second Supplementary Estimates of Expenditure for the financial year 1 April 2020 to 31 March 2021, as contained in Paper Cmd 28 of 2020. Mr Speaker, I beg to move.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Second time. (proc text)]
Mr Speaker: Third Reading, Second Minister for Finance.
Ms Indranee Rajah: Mr Speaker, I beg to move, \"That the Bill be now read a Third Time.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Third time and passed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"COVID-19 (Temporary Measures) (Amendment) Bill","subTitle":null,"sectionType":"BP","content":"[(proc text) Order for Second Reading read. (proc text)]
The Minister for Law (Mr K Shanmugam): Mr Speaker, I beg to move, \"That the Bill be now read a Second time\".
This Bill comes before Parliament in the midst of very serious challenges faced by us, which both Ministers and Members of Parliament have spoken about a number of times.
In my speech, I will explain why we need this intervention, explain the principles behind the Bill and set out the key features of the Bill.
Just under two months ago, I moved an urgent Bill in this House – the COVID-19 (Temporary Measures) Bill, which I will refer to as “COVID 1”. COVID 1 was, in itself, a major intervention.
In my speech then, I explained why intervention was needed – economic shock, unprecedented in magnitude in terms of impact and the speed with which the impact was felt.
I also set out the principles for such intervention. The starting point is always the sanctity of contract – a fundamental, key aspect of the rule of law and we do not lightly intervene.
But sanctity of contract cannot be an absolute. I said that intervention is needed when the core interests of our people are at stake and there is a need to safeguard the fundamental integrity of the economic structure for the common good. Such intervention has to be reasonable and of generally limited duration.
In COVID 1, we put in what I called a “legal circuit breaker”. It provided a framework to hold in abeyance the strict enforcement of certain legal rights for a period of time.
The objective was to give businesses some cash flow relief and breathing space to make adjustments. For example, if a business tenant is unable to pay rent during the relief period because of COVID-19, the landlord cannot evict the tenant during the relief period. The moratorium runs until 19 October 2020.
At the time, I emphasised that COVID 1 only deferred contractual obligations. I also explained to this House that the Bill gave businesses breathing space. It also gave the Government some time to take in feedback, assess the evolving situation, conduct a deeper analysis and decide whether more substantive interventions were needed.
Over the past two months, we have done precisely that. We have monitored feedback, assessed the situation, thought carefully about what else needed to be done. And we have decided to intervene in a more substantive way to deal with the issue of rent. And also, intervene in some other areas. I will explain why.
Two months ago, the circuit breaker began. For many, including the businesses most affected by those measures, April now feels like a lifetime away.
Globally, we were looking at 1.2 million infections and 67, 000 dead. As of 1 June, we are looking at more than 6 million infections and more than 370,000 dead.
Various restrictions had already been put in place by then, but the circuit breaker caused a substantial increase in the restrictions.
The situation today? The Deputy Prime Minister and other Ministers have explained in considerable detail.
I will just recap two key points. The economic situation and outlook has deteriorated substantially. MTI is now forecasting a contraction of between 4% and 7%. And there is a lot of uncertainty.
We are taking a cautious approach in lifting the circuit breaker measures. Many industries are affected. And for some, the impact has been near catastrophic.
Latest data from the Department of Statistics, some just released today. If you look at F&B sales in March 2020, they declined by 23.7%. In April 2020, they declined by 53% on a year-on-year basis. Retail sales, if you exclude supermarkets, hypermarkets and convenience stalls, retail sales in March 2020 declined by 13.3%. In April 2020, nearly 61%.
These numbers do not even show the full impact of the circuit breaker because data for May 2020 is not out yet. We can, obviously, expect the numbers to be very weak.
Revenue has fallen but meanwhile fixed costs continue. For many businesses, in the F&B, retail sector, two significant components of such costs are manpower and rent.
As regards manpower, the Government through the various Budgets has put in the Jobs Support Scheme, waived the Foreign Worker Levy and put in a number of other schemes to help, together with partners like NTUC.
This Bill seeks to deal with the rental obligations, amongst other things.
Many landlords have taken a helpful approach and a long-term view. They have shared the burden with their tenants.
Nevertheless , we received a lot of feedback from struggling SMEs that they need more time to recover. Many cannot operate until Phase Two, and even then only partially.
Landlords’ concessions have been uneven. Many landlords have rendered substantive assistance, but several others have not.
The point is that accumulated arrears should be handled fairly.
I will share one piece of feedback as an illustration. This is a tenant who is a mother of two young children. She started a company two years ago, providing enrichment lessons to children. She leased some space for the business as a sub-tenant. She renewed her lease for one year, just before COVID-19 hit.
All revenue that came in went to support the business – payment of rent, salaries for trainers and other operational costs. But from February 2020, parents began to keep students away. Classes have been suspended since March 2020. Her landlord has offered her 10% discount for April and May 2020.
COVID-19 is quite an unforeseeable event, both in magnitude and speed of impact. It is wiping out the hard work that many people have put in into their businesses.
So, if landlords insist on payments that tenants cannot afford, tenants will have to give up. Landlords then have to take their chances to recover something in the insolvency proceedings, together with other creditors.
Landlords will then also have to find replacement tenants. In this market, not realistic.
Therefore, it is in everyone’s interests to take a sensible approach, ensure everyone comes out of this together, ready to recover.
If you look at restaurant booking platform Chope, they did a survey: 81% of their respondents said they would not be able to operate beyond the next six months, based on cost and revenue that they had during the circuit breaker period.
After watching all of this carefully, taking in the feedback, looking at the numbers that were coming in, we decided that there is a need for a substantive intervention.
The challenge that rent poses to small businesses, is not a problem unique to Singapore. A number of other countries have seen that and they have intervened. I will just give the examples of Australia and Germany.
In Australia, landlords are required to offer rent waivers and deferrals to SME tenants. And SME tenants are allowed to repay the deferred rent over a period of at least 24 months, interest-free.
In Germany, landlords are not allowed to terminate a tenancy for non-payment of rent. And arrears with accumulated interest can be repaid before 30 June 2022; that means, two years of extension.
Let me now move, Mr Speaker, to the premises underlying this Bill. What is necessary in this situation is a fair sharing of obligations because of the exceptional times that are before us. The fair sharing has got to be between the Government, the landlords and the tenants.
On the Government’s part, you have seen four Budgets amounting to almost $93 billion, including two months' rental assistance for retail, F&B tenants; one month for office and industrial tenants, as well as broad salary support and other credit-easing facilities.
So, if you look at the rest of the burden, what is a fair sharing of the remainder between landlords and tenants? And the related question is, will the market left to itself be able to find an equilibrium that reflects the principle of fairness?
The answer to these two related questions depends on a number of points.
First, all Singaporeans, including landlords, have a shared interest in seeing our SMEs do well. Second, in a climate like this, expecting market forces to push towards a fair equilibrium is not realistic. Third, what is the alternative if we do not intervene?
SMEs play, as I have said, a critical role in the Singapore economy. In 2019, the 260,000 SMEs in Singapore contributed to 45% of our GDP and 72% of our employment.
If many of our SMEs for whom a stable cash flow is fundamental, are unable to survive, the domino effect on the rest of the economy will be very substantial and a lot of jobs will be at stake. Our people will suffer.
For landlords, their asset value will be affected by the broader economy. There is a clear correlation between growth of property prices and economic growth. If our SMEs do well, the economy is given a boost, property owners will continue to enjoy the stable value of their assets. If viable SMEs go under because of temporary cash flow difficulties, the economy as a whole suffers, the value of property will also suffer.
So, the essential point: everyone has a stake in the viability of the SMEs.
My third and final point is: go back to the eligibility criteria. They cover SME renting commercial, industrial or office space for the operation of their business and those with a turnover of not more than S$100 million per annum and where they had a reduction in turnover of more than 35%, which is a substantial hit.
Mr Speaker: Order. Let me call on Deputy Leader.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Exempted Business","subTitle":null,"sectionType":"OS","content":"The Deputy Leader (Mr Desmond Lee): Mr Speaker, I beg to move that, \"That the proceedings on the business set down on the Order Paper for today be exempted at this day's sitting from the provisions of Standing Order No 2.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolved, \"That the proceedings on the business set down on the Order Paper for today be exempted at this day's sitting from the provisions of Standing Order No 2.\" (proc text)]
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Mr Speaker: Minister, please resume.
Mr K Shanmugam: Thank you, Sir. Let me now take Members through the key features of the Bill.
The Bill has three key aspects. First, landlords will be required to ensure that the benefits of Governments assistance are given to the actual, intended beneficiaries. That is, the SME tenants operating in rented premises and this will include licencees.
Second, landlords may also be required to provide a further waiver of up to two months’ of rent to qualifying SME tenants.
And third, SMEs who qualify for the rental waiver will also be given time to repay some of their remaining rental arrears, at an interest rate that will be capped.
As said earlier, most of these reliefs apply to SME tenants, including sub-tenants and licencees.
The rental relief framework will also apply to eligible Non-Profit Organisations and eligible tenants of Government properties.
The Deputy Prime Minister announced property tax rebates from the Resilience and Unity Budgets. The Government will be providing approximately two months of rental assistance for eligible SME tenants of qualifying commercial properties and approximately one month of rental assistance for eligible SME tenants of other non-residential properties; basically, industrial and office properties.
This will be done via rental waivers, granted by landlords.
Agencies are working out the details, which will give landlords clarity on the relief that they are required to offer; and give tenants clarity on the relief that they will get. This will be set out in subsidiary legislation.
The Bill will require landlords to match what the Government is doing. They will be required to grant qualifying SME commercial tenants an additional waiver of two months’ rental, of base rent; and qualifying SME industrial and office tenants an additional one month’s waiver of base rent.
This additional relief will apply to SME tenants who have suffered at least a 35% drop in average monthly revenue in April and May 2020, compared to the same period in 2019. This will be calculated at the rental unit or outlet level.
Tenants must have entered into their tenancy before 25 March 2020, or extended such a tenancy to get this relief.
There are smaller landlords who face genuine hardship. For example, retirees who have purchased a small commercial property, and the rental yield from that property forms a very large proportion of their income. For this group, they may seek an assessment on grounds of financial hardship. The assessment will take into consideration the annual value of the landlord’s properties, and whether the rental income forms a substantial part of his or her total income.
Qualifying landlords will only be required to give half of the additional rental waivers. And we will set out the criteria for landlords to qualify for this in subsidiary legislation.
During our consultations, stakeholders have asked for clarity on a few matters. Landlords wanted more clarity on when their obligations will be triggered. Tenants wanted clarity on when they will be entitled to the relief.
For the landlords, their obligations will be triggered when IRAS issues the notice of the cash grant or nominal notice to eligible property owners. IRAS will provide more details of the cash grant on its website, once it works the details out.
Meanwhile, to preserve the status quo, the Bill provides for a moratorium on enforcement action for non-payment of rent in the time between the Act coming into force and the triggering of the landlords’ obligations.
Even before the Act comes into force, tenants who are unable to pay their rent and require protection from eviction can serve a Notification for Relief under COVID 1, as it exists today.
Second, we recognise that many landlords may have already given relief. This could be in the form of rental waivers or rebates. These landlords will be able to set off the equivalent value against the amount of waiver that they are required to give under the Bill.
The kinds of reliefs that landlords have given and which can be taken into account for this purpose will be set out in subsidiary legislation.
Third, what if the tenant has already paid the rent for the months in which relief is meant to be granted or for the months for which relief is meant to be granted? In such a situation, the landlord will be required to credit any amounts already paid to the tenant. This may be in the form of the waiver being applied in the next month of rent that is due. If the lease is coming to an end, the landlord will have to provide a refund to the eligible tenant.
Fourth, MAS has separately announced some additional relief from banks and finance companies in relation to landlords’ existing loan repayment obligations. Individual landlords who have been required to provide relief to their tenants under this Bill can apply to defer both principal and interest payments on their commercial and industrial property loans till the end of the year. So, if moratorium is given until October for tenants; landlords will get assistance from their financial institutions.
They can also apply for an extension of loan tenure by up to the corresponding deferment period to make the monthly instalments more manageable.
SME landlords who face financial difficulties can already apply to defer the principal repayments on their mortgages under the industry relief package that MAS announced some weeks ago.
Larger landlords can likewise work with their banks and finance companies if they require assistance.
Those who need to access additional credit to meet their immediate cashflow needs can either apply for mortgage equity withdrawal loans or loans under ESG’s Temporary Bridging Loan Programme or Working Capital Loan Scheme, if they qualify.
SME tenants who are eligible for the additional relief described above can also get relief under the third plank of the Bill. They will be allowed to defer payment of a part of the rental arrears accrued from 1 February, until 19 October 2020. They will have to start repaying the arrears from November 2020. These arrears, of course, do not include, for example, the four months which have been waived – these are no longer payable.
Tenants can elect to repay their rental arrears in equal instalments, with payment of the first instalment to start no later than November 2020 and that can be done during the duration of the remaining term of their tenancy, up to a maximum of nine months, with interest capped at 3% per annum. If the tenancy is shorter, then, it has got to be paid during the term of the tenancy.
For commercial properties, the maximum amount of arrears that can be paid in instalments, will be five months’ base rent. For industrial and office properties, the maximum amount of arrears that can be paid in instalments will be four months’ base rent.
This means that landlords take on some credit risk. As a safeguard, we will provide that all outstanding arrears, including interest and other charges, will be accelerated and immediately payable in accordance with the terms of the original contract, if instalment payments under the scheme are not paid within the prescribed time after they become due; or if the tenant terminates or repudiates his lease agreement during the rescheduled repayment period; or if the lease agreement is terminated due to other defaults by the tenant.
Landlords may also draw the existing security deposits to offset accumulated rental arrears during the repayment period. They may do so, until there is the equivalent of at least one month of rent remaining in the security deposit.
At the end of the repayment period, the tenant will be obliged to reinstate the security deposit, as provided in the contract.
In addition, we will require tenant who have rescheduled the payment of arrears, to provide specified documents and information to their landlords if the lease agreement is: one, terminated or repudiated during the repayment period; and two, there are two or more rescheduled repayment instalments outstanding.
The documents and information to be provided will include filing a statutory declaration on their statement of accounts from April 2020 until the termination or repudiation of the licence. The tenant will also be required to set out how he proposes to repay the outstanding rental arrears.
This will ensure transparency and accountability, but only in respect of tenants who terminate and have at least two months of the repayments instalments outstanding.
If any criminal behaviour is revealed – for example, if the tenant was using the period of relief to fraudulently dissipate assets – then there could be criminal sanctions. Tenants will also be expected to negotiate in good faith the terms of repayment.
Any Court, when deciding whether the conduct is criminal, will likely take into account the totality of the conduct.
We have also heard concerns from the REITs about potential constraints on their operating income and cashflow. REITs are concerned that they may be liable for additional tax and that their abilities to meet financial covenants in bank loan agreements could be affected. They also worry that this could have a knock-on impact on S-REIT investors and the S-REIT industry as a whole.
We discussed this matter carefully with MOF, IRAS, MAS, the banks. MOF and IRAS have temporarily extended timelines for the distribution of taxable income by S-REITs to qualify for tax transparency treatment. Leverage limits for S-REITs have also been increased from 45% to 50%. This will give S-REITs more flexibility to manage their cash flows and prevent them from incurring additional tax expenses.
Corporate landlords, which include S-REITs, can also approach their banks or finance companies to explore funding if they face cashflow issues.
Banks have also assured MAS that there will be no automatic enforcement of loan covenant breaches for landlords impacted by the requirements under this Bill.
Besides cash-flow difficulties, what has been happening in the industry is that people face difficulties in a variety of other ways. For example, take tenants whose tenancies expired or were expiring during circuit breaker period who had difficulties moving out because they were not allowed to go back to the office or shop to pack up or they could not find any movers or they are delayed because they cannot find workers to carry out the work, to put the place back to the original condition.
In such cases, it would be unfair for the tenant to have to pay double rent or similar charges under the contract or the law. The Bill allows us to deal with these situations, through subsidiary legislation.
We will provide that a tenant who cannot vacate the premises due to COVID-19 may serve an NFR under the COVID-19 (Temporary Measures) Act. And the tenant will be protected from enforcement. In addition, the tenant will not be liable for double rent.
In some situations, it might be fair for the tenant to pay some amount, especially if the tenant continued to derive benefit from the premises. We will prescribe the circumstances and how that amount can be assessed.
Finally, we have also received feedback that stoppage of construction work has led to difficulties. There are also difficulties with supply-related contracts. These difficulties have also been caused to contracting parties, who may not themselves be parties to a construction or supply contract.
For example, a developer who has entered into a contract to fit out an office may be unable to do so within the timeline stipulated in the contract because of COVID-19 restrictions on construction work. That would expose the developer to liquidated damages for failure to deliver the fitted out office on time, through no fault of the developer.
The second example, say the tenant has entered into a tenancy agreement which provides for a three-month rent-free period for the purposes of renovation and fitting out, but is unable to proceed with construction works due to the COVID-19 restrictions, effectively losing the benefit of the rent-free period entirely.
The third example, a live example, a company, say Company A rents scaffolding materials from Company B, until 14 April for a project. When the circuit breaker kicked in on 7 April, Company A could not return scaffolding materials because of the circuit breaker. Company B says it is going to charge for an additional month of hiring fee.
In these cases, the affected parties are not parties to the construction contract but they are parties to contracts that are nevertheless affected by the stoppage in construction work or other circuit breaker measures.
The Bill therefore provides a mechanism for parties in some of these contracts to seek relief. They will be allowed to apply to an Assessor, who may then make a determination to either adjust the manner in which prescribed obligations are to be performed; or vary a prescribed term in a contract in order to achieve a just and equitable outcome.
The precise scope of contracts, the obligations to be covered and the kinds of adjustments that Assessors may make will be set out with more clarity in subsidiary legislation. A similar approach will be taken for supply related contracts.
Let me now quickly touch on some on the other amendments.
COVID 1 was passed and came into force in April this year. As of 1 June, we have had more than 4,000 Notifications for Relief and about 500 applications for determinations have been filed. During this period, we have observed that the operation of the Act has been effective. The fact that out of the 4,000 Notifications, only slightly more than 10% have come forward, suggests that most of the others had managed to settle it.
And because of the clarity of the previous Act, our understanding is that a lot of people have managed to deal with their issues along the lines provided for in the legislation without having to even file an NFR.
But we have been talking to the Assessors to get feedback on how it is working. So, we are making some clarificatory amendments.
For example, the information and matters disclosed in the course of proceedings before an Assessor, are to be kept confidential.
For late payment, payment arrears and interests that accumulate during the relief period under COVID 1, we will put a cap on how much late payment interest there can be. The cap will not apply to secured loan facilities given to SMEs, as well as hire purchase agreements taken out with banks and finance companies.
MAS has worked with banks and finance companies on various relief measures to support individuals and businesses affected by COVID-19. These measures include principal repayment deferments for SME secured loans and hire purchase agreements. Borrowers can also extend their loan tenure to spread out their loan repayments over a longer period.
Banks and finance companies will also take into account their borrowers’ repayment ability after the relief period and adjust repayment plans if necessary.
Mr Speaker, Sir, let me now conclude. The reliefs contained in this Bill will have substantial impact. All in all, up to 260,000 SMEs may benefit from the Government rental assistance. There are an estimated 31,000 SMEs in the F&B and retail sectors. They, their employees will benefit from the additional relief that is being granted.
We are moving this Bill to help our SMEs. We hope that businesses will be able to make good use of the easing of pressure to focus on transforming and levelling up to thrive in our new operating environment. And a large number of office and industrial tenants will also benefit.
While it is unusual, let me conclude by saying a little about the process for preparing this Bill, which runs into about 40 pages or so. At first sight it looks simple enough: two months plus two months. But it is actually quite complex. Just to take one point: how do you pass down the waiver of rental relief through three or four layers of intermediate landlords? What happens if one of them is a non SME? And multiple questions of that sort. And when does it take effect? When would the landlords give the reliefs and to whom? And how do you handle the moratorium and the best balance between the different interests.
And the aspects relating to smaller landlords, REITs, the types of tenants who should qualify. And of course, the other contracts that should be dealt with in a myriad of situations.
It was a significant effort to conceptualise, crystallise, get the feedback from different stakeholders, take in the feedback and then, draft the legislation in about three weeks.
I saw the best of the Public Service: how different agencies came together, worked round the clock. MTI and ESG gave us the data which allowed us to work out where the balance ought to be, who ought to qualify. They attended all our meetings, including with stakeholders, helped to tweak our proposals and also worked their own loan schemes, and identified for us how the loan schemes may help.
MAS played a crucial role in re-assuring the REITs as well as the landlords, and talking to the banks. They also attended all the meetings, including stakeholder meetings. IRAS, MCCY, MHA, MND, HDB, JTC.
If I can say this – all roads lead to MOF and all roads lead from MOF as well. They attended all our meetings, very supportive, facilitated and agreed to pay for the bill.
The private sector lawyers: Patrick Ang and Sushil Nair. I mentioned them during COVID 1. They did a lot of work here as well. The Committee members – I will put it as part of the record of my speech without having to mention all of them. [Please refer to Annex 1.]
Different stakeholders, if I can put a note down for the exceptional team in MinLaw, they put their heart and soul into this, led by the Permanent Secretary and Deputy Secretary, a team of highly motivated and talented young officers, worked round the clock. And Justice Kannan Ramesh and his valuable expertise was very useful for us. And finally, AGC. The three lawyers: Lee Chuan Huei, Hema Subramanian and Leong Kit Yu who worked until 5.00 am regularly for the entire two weeks.
This legislation could not have been drafted in most places in three weeks, let alone conceptualise, crystallise and draft, led by our Attorney-General, Mr Lucien Wong.
I said some things about him during the Second Reading of COVID 1. I was trying to be understated. I think it helped tremendously that we had one of the best corporate lawyers in the world helping us from day one, word for word, conceptualising it, checking every word. I think Singapore is extremely fortunate to have him in Public Service. Checking everything and making sure that it works, and again, working into the early morning hours, every day. Attorney-Generals do not do that in most places. But it gave me a lot of confidence that he was doing that.
So, in this Bill, preparing it, we saw the best of the Public Service at work – coming together, working for the benefit of the broader public.
I wish to thank them and put on record their contributions.
[(proc text) Question proposed. (proc text)]
Mr Christopher de Souza (Holland-Bukit Timah): Sir, a main aim of this Bill is to support SMEs. SMEs are important to our economy. They are responsible for the employment of more than 70% of our country's workforce, about two million workers. However, during the circuit breaker, many have been left with empty offices or shops that rack up rent, incurring costs. This does not account for other operating costs, such as manpower costs. Reducing the costs that SMEs face will in turn help them support their workers.
One of the main thrusts of the Bill is instituting rental waivers for SMEs, co-paid by the Government and the landlord. The period is four months for SME tenants at commercial properties for the months of April to July and two months for those in industrial and office properties for the months of April to May. This is good as it targets a significant expenditure many of our SMEs face and targets the period where SMEs are most adversely affected.
According to news reports, one important criterion is that there must be a 35% fall in average monthly revenue from April to May 2020 compared to the same period last year. Such targeted help is good. It is fairer that landlords not have to take haircuts if their tenants' revenues had not been adversely affected. Would the Minister clarify what happens if the company was a new company or a new tenant such that the comparison to the previous year is either impossible or is an inaccurate comparison?
Then, there is the landlord. From various news articles on this Bill, it looks to be that there is some distinction being drawn between large corporations and less large landlords through the use of the phrase \"financial hardship\". This is good as the considerations and ability to bear the \"pain\", so to speak, differs between smaller private landlords compared to large corporations. I would like to request of the Minister that a wide range of financial hardship should be considered as smaller landlords can also find themselves in vulnerable situations.
Just yesterday, Sir, 4 June 2020, I received an well-crafted email from a resident of Ulu Pandan. And I quote from that email, and this is to support the point that I am making about the need to differentiate between different types of landlords.
In that email, my resident wrote, \"Dear Mr de Souza, I hope this letter finds you well in these tough times. I would like to seek your advice regarding one of the Government's new Bills, the one which would mandate a four-month rent free period for tenants, paid for equally by the Government and landlords. I would like to ask if the Government has any plans to differentiate between large landlords of significant capital reserves as compared to small family-owned companies. I am currently living on monthly rental revenue and honestly, I would not get to keep much of it after the banks take their due. It is my sincere wish that the Government would take into account of those in my position when discussing the proposed Bill.
Given the current economic situation, landlords in my position are already facing problems with rent collection as well as waivers and haircuts demanded by our tenants. To further absorb an additional two months of rent would be too much for many to bear. Of course, I begrudge not the tenants for their plight. COVID-19 is a natural and unexpected disaster that strikes at all levels of society. I just hope that they would try to understand that investing our savings into property should not entail a different treatment than those who invested in other forms of assets.
Finally, I am thankful of the Government’s courage and decisiveness in drawing down on reserves so as to combat these unprecedented financial challenges. In times of crisis, we as a society must come together and help our neighbours as best we can. I only hope that we would be allowed to contribute according to our means.\"
I spoke with my resident this morning before coming to Parliament over the phone and I said I would definitely raise his well-worded point of view in Parliament this afternoon.
Drawing from my resident's message, the point I am making is this.
One, yes, I support the help given to tenants. Certainly. Two, the support is timely and needed. But three, we need a flexible system to differentiate between large corporate landlords and the landlords who have invested in small commercial shophouses and spaces as a form of, say, retirement income. It is for this reason that I am asking the Minister for \"financial hardship\" to be defined broadly and flexibly to strike the right balance, between the smaller landlords and the larger corporate landlords. And I hope the Minister would be able to expand on this request of mine in the good Minister's reply.
Onto another point, Sir. It has been mentioned that direct monetary assistance previously rendered by the landlord to the tenant can be counted as part of the landlord's contribution to rental waiver. Would the Minister clarify whether agreeing to lower the rent, and not waiving rent, is also considered direct monetary assistance? And if so, whether the rental waiver support from the Government and also the landlords' contribution to the rental waiver will be calculated based on rent pre-reduction or the newly agreed rent?
While the law has tried to strike a balance between the landlords and the tenants, it can only go so far in achieving an outcome that all parties will find mutually acceptable in the long-run. Landlords and tenants need each other and I hope that they will continue to have constructive discussions to support each other through this unprecedented crisis.
It was reported that landlords can apply for assessment as to whether the SME is eligible and that eligible tenants will be notified in due course. It may be in the words of the draft Bill, but would the tenant also have access to the mechanism of assessing whether one, the landlord is indeed one that faces financial hardship or two, whether or not they are indeed an eligible tenant.
Besides rental waivers, the Bill also provides for rental repayment schemes to allow rent to be repaid in installments instead. Would the Minister clarify as to whether eligibility of this rental repayment scheme depends on whether the tenant had previously defaulted pre-COVID-19 or not? Further, what will be done to ameliorate the knock-on effect such deferment has on private individual landlords who would face financial hardship owing to the lack of cashflow?
For tenants who are unable to move out, there is a change to the normal law of tenancy in saying that landlords will not get double rent for the period of holding over. Will the Minister clarify as to how this will interact with rental waivers?
I should mention, Mr Speaker, that I am an advocate in private practice and I sometimes do have to delve in landlord-tenant disputes – just wanted to put that on the record.
The second main thrust of the Bill is that relating to contracts other than rents. The Bill looks to cap late payment interest, charges for arrears and so on. I welcome the reduction and limitation of late payment interest as this will help reduce snowballing debt.
The last clarification I want to seek of the Minister is whether further adjustments will be made to the insolvency framework so that non-viable businesses can still exit smoothly. For example, where a business owner has made the hard decision to stop his trade in these times and seeks to venture into a new trade to overcome the difficult economic environment presented by the pandemic.
In conclusion, Sir, the MinLaw team, along with other Ministries and agencies such as the Attorney-General Chambers have thought out of the box and pushed through this exceptional legislation in double quick time, if not in triple quick time. Indeed, sanctity of contract and the avoidance of retrospective measures are what we should all aspire to to ensure the certainty of the bargain struck by two contracting parties. But, Sir, these are unprecedented times. MinLaw has acted swiftly. This Bill, if passed, will reduce the pain businesses are feeling. And if it can reduce retrenchments; if it can help keep wages from being cut or further cut; if it strikes the right balance between tenant and landlord, if it gives that needed life buoy, as we come out of the circuit breaker and into the gradual reopening of the economy, then I say the effort is worth it, and the Bill should be supported.
Ms Jessica Tan Soon Neo (East Coast): Mr Speaker, the COVID-19 pandemic and the circuit breaker measures have had significant impact on businesses.
Over the last two months, I have received many appeals for assistance from my residents who are SME business owners as they are facing cashflow problems. The retail sector has been amongst the hardest hit as they have had to close their physical premises. While some of them have been able to move their business online, overall business still has been impacted. In the meantime, there are business costs and obligations still to be met and they still have to be paid.
The latest Department of Statistics data has also shown that in April there has been a dramatic drop in performance of 40.5% and this is the largest since 1986.
For many SMEs, rent is a large part of the business cost making up about 25% to 30% of overall business cost. Even as some businesses are able to start and reopen this week, they are not able to resume pre-COVID levels of operations immediately, and business demand will likely remain low.
The Bill seeks to help SMEs ease some of the burden by ensuring that their accumulated rental obligations are shared among the Government and landlords.
The interventions in the Bill are quite substantive as it mandates that landlords will have to waive rent for SME tenants. For eligible SME tenants in commercial properties, the landlords are required to waive two months of rent and tenants of industrial and office properties will receive one month’s waiver of rent. The Bill also requires landlords to pass the Government granted tax rebates in cash grants as part of the Fortitude Budget to the SME tenants.
The Bill does take a targeted approach and is reasonable. It does not apply across the board to all SMEs and businesses. Eligibility for the relief are for SMEs with less than $100 million turnover that rent premises for their businesses and are facing cashflow difficulties as a result of COVID-19. So, to be eligible, SMEs also have to fulfil two other criteria of a 35% or more drop in average monthly revenue from April to May on a year-on-year basis, and the tenancy must have been entered before March 25 of this year
Landlords are also not required to help larger SME tenants who may have better access to financing or tenants who have seen an increase in business during the period such as supermarkets.
Can Minister share if there has been an assessment of whether the rental relief measures will unnecessarily prolong the exit of unviable businesses, or benefit such businesses at the cost of landlords and taxpayers’ monies?
The rental reliefs do weigh in favour of tenants. At this point, I do want to declare my interest as I am a board member of a commercial REIT. Minister did mention that other stakeholders, including landlords and REITs, have been consulted. Minister has also shared that some of the views and concerns of these stakeholders who have been impacted are being addressed? For example, the cashflow difficulties that have been expressed as well as the measures and mechanisms are being put in place to support these landlords.
While I am supportive of this amendment Bill, I am concerned that landlords may face financial hardship as a result of the additional rental waiver they have to provide to SME tenants. For some of the smaller landlords, they may be dependent on the rental income to meet their own financial obligations.
The Bill does state that for landlords who face difficulties in providing the additional waiver to SME tenants, it does provide some reprieve. The landlords though will still have – if they are eligible for that reprieve – will still have to pay half of that obligation. And the landlords if they seek assessments on grounds of financial hardship, the assessments will take into consideration if the rental income forms a substantial part of their total income and the annual value of their properties. Is that how it is going to be assessed? And can Minister also share the assessment process and also how long that would take?
SMEs play a crucial role in Singapore’s economy making up a majority of companies and do provide employment for more than two million Singaporeans. So I do agree that SME tenants do need support during these tough times as they have been hard hit by the COVID-19 pandemic. The rental reliefs will allow the SMEs the space to recover and in turn save jobs. So, I support the Bill.
Mr Murali Pillai (Bukit Batok): Mr Speaker, Sir, I join the hon Members who spoke before me to support the amendment Bill.
The hon Minister for Law took pains to outline the exceptional circumstances warranting intervention in the area of rent payable by SMEs as an exception against the principle of sanctity of contract. I fully agree with him. We are dealing with survival of SME tenants that employ a substantial number of Singaporeans. We cannot afford to just depend on each individual landlord to determine what concessions should be granted to the tenants’ whose businesses are massively haemorrhaging. Such actions would be too slow and uneven and livelihoods will be at stake.
I must however acknowledge and commend the actions of a good number of landlords who took unilateral action to help the tenants. For these landlords, I am glad to note that the amendment Bill is worded in a way that would take into account what these landlords unilaterally have done in assessing what further relief should be given by them to these tenants. Whilst small businesses will be the immediate beneficiaries under the amendment Bill, in the long run, as hon Minister mentioned, this amendment Bill actually protects the landlord’s interest too because it will ensure that the tenant’s market will not collapse. So, just like COVID 1, this should not be seen as an anti-landlord bill.
Before moving on, I would like to applaud the consultation undertaken by the officers of MinLaw and all the other Government agencies that the hon Minister mentioned in coming up with this Bill. They worked, in the words of the hon Member Mr Christoper de Souza, \"triple time\" in taking consultation from the ground, identifying the big bug bear that SMEs have and providing concrete solutions through this Bill.
Turning to the amendment Bill, I seek clarification on three areas and will end with a suggestion.
First, on the benefits that the sub-tenants will get under the amendment Bill. As I recall, during the Second Reading of COVID 1, the hon Minister for National Development, Mr Lawrence Wong stated that tenants are not mandated to pass on property tax rebate to sub-tenants. He explained that the reason for not mandating this is because, in his words, “there is a whole range of commercial arrangements” and there is no contractual relationship between the property owner and sub-tenant.
As I understand, the Government under this Bill is prepared to pay cash grant to sub-tenants if they are in possession of the properties. If the sub-tenants do not get the flow through of the benefit of the property tax rebate, based on my understanding, they will get a lower amount than the tenants in possession. Will this also affect the rebate that these sub-tenants get from their landlord? Because as I understand from the hon Minister's speech, the Government – for commercial tenants – will give two months' rental rebate and then the landlords will follow up with two months. There is a bit of a principle of reciprocity in action. So, will this affect what the sub-tenant will get?
Next, on clause 7 of the Amendment Bill, I note that it is proposed that a tenant who is holding over a property after the expiry of a tenancy owing to a COVID-19 event will not be liable to the landlord. I welcome this amendment. It makes eminent sense to provide such relief. The control measures in place would make it difficult for the tenant to vacate premises, restore the property to its original state and yield vacant possession to the landlord.
May I ask whether there is a corollary provision to protect the landlord who may have a back-to-back arrangement with a new tenant under which he has to deliver vacant possession on the original due date? Such tenants may not be able to rely on COVID 1 if they entered into this lease after the trigger dates. For example, if they enter into the lease after 25 of March 2020.
In this regard, I note that in the amendment Bill, a Part 8 is proposed to provide relief to parties to downstream contracts affected by delay in performance or breach of a construction contract, supply contract or related contract. It does not appear that Part 8 applies to leases.
If my understanding is correct, may I please ask why leases, or for that matter, all the other scheduled contracts are excluded? As a matter of policy, I think it would have been better if parties in affected contracts that suffer a knock on effect arising from the application of the COVID-19 (Temporary Measures) Act on scheduled contracts should also have recourse under this Act.
Third, I note that in addition to the rental relief, the Amendment Bill also provides for a statutory repayment schedule for accumulated rental arrears commencing from the month of November 2020 in equal installments. I support this additional measure. The hon Minister refers to this as the third plank. I further note that the landlords will not be able to charge contractual interest beyond the prescribed rate on the outstanding rent. This makes sense as it would otherwise whittle the effect of the rental reliefs that are being provided under this amendment Bill.
The hon Minister mentioned that the prescribed rate is no more than 3% per annum. May I please ask the basis upon which this 3% interest rate is arrived at and also, what would be the applicable time period for this interest rate to run?
Finally, a suggestion. The hon Minister mentioned that potentially 260,000 SMEs may be beneficiaries under this amendment Bill once passed. May I please ask how would they be made aware of the reliefs under this amendment Bill so that they would be able to take advantage of these measures and keep their businesses alive. With that, I support the Bill. Thank you.
Mr Speaker: Minister Shanmugam.
Mr K Shanmugam: I thank the Members for speaking, for expressing their support for this Bill. Mr Pillai asked for clarification on what a sub-tenant gets under the rental waiver and he pointed out that Minister Lawrence Wong had said during COVID 1 that the Bill did not mandate for the rebate to flow to the sub-tenant.
Let me clarify that the Government's intention has always been for the businesses that have actually been impacted by COVID-19 to benefit from this Government assistance. In some cases, the businesses may be sub-tenants. Minister Lawrence Wong, at that time, said, \"the Government strongly urges and encourages all master tenants to pass on the savings from the rebate to their sub-tenants and to share the burdens during this time of uncertainty and difficulty.\"
Minister Lawrence also explained that mandating further passing on of the rebates is difficult and complex because of the nature of the relationships that can arise. This is why, in my opening speech, I said this is actually quite a complex issue. But we studied it and we decided that the complexity can be solved and can be dealt with. And that is why, here we are mandating it.
What we decided to do was not only enhance the Government assistance but also put in place a framework that ensures that the assistance reaches the intended beneficiaries who are the actual company or business that is using the premises for business. Conceptually, how this works is – to answer Mr Pillai's specific question – the Bill does not require cash to move from the Government to the property owner to the actual tenant or sub-tenant. What it does is put in place a framework of rental waivers mandated by law.
Given this mechanism, the concern that is raised on behalf of subtenants not getting the two months of rental waiver does not arise. We did it very carefully and specifically because if you require the money to be passed down, then there can be all sorts of arguments as to who it would pass down to, when was it passed down and so on. But by law, we are saying that rental is not payable. So, that is a very different proposition. Automatically, the subtenant does not have to pay his intermediate landlord, and the intermediate landlord does not have to pay the ultimate landlord. What each of those in between might lose is that mark-up.
So, the number of months of rental waiver a tenant will get does not depend on whether he is the tenant or sub-tenant. Everyone will get two months on this waiver mechanism. We will set that out very clearly in subsidiary legislation. IRAS will give a notification of cash grant to the owner of the premises because the owner of the premises has already received the money, everyone else does not have to pay rental. It is actually conceptually cleaner and neater.
Mr Christopher de Souza asked about cases where an SME is a new company, which makes comparison to the previous year impossible or inaccurate. That is another complexity which we did think about.
First of all, the reason why the same period of time was taken for a year-on-year comparison – it is a fairly normal thing and we did it to avoid seasonal fluctuations in revenue. But where the tenants were not operational during the April to May 2019 period, we will choose another best appropriate period that will reflect whether the tenant's performance has been impacted by COVID-19. That, again, will be in subsidiary legislation. For leases and licences that are even shorter, we will also work out the criteria.
Mr Christopher de Souza asked whether landlords who agreed to lower the rent will be able to set off the deduction against the rental waivers that they must provide. We want to be careful. The rental waivers by landlords will be calculated based on base rent payable by the tenant for the applicable period. Landlords will be allowed to set off any direct monetary assistance that they have already given against the rental waiver that they are required to provide. Or if they have already provided rental waiver, of course, they can take that into account. The types of assistance from landlords that will be considered direct monetary assistance under the Act will also be prescribed.
Ms Jessica Tan asked about who the Assessors will be, the process for seeking assessment and the estimated timelines. A panel of Assessors, professionals, a fair number of legal and accounting professionals – they have already been appointed. More will be appointed to consider applications for assessments by landlords. With regard to timelines, we will make the process as simple as we can. We have made it very simple under COVID 1. The actual time taken for determinations to be made depends very much on the parties themselves and whether they adhere to the timelines. But, we will make them short and fast.
Mr Christopher de Souza asked whether tenants will have access to the assessment mechanism either to challenge the landlord's assertion of financial hardship or to ascertain whether they are eligible.
The criteria for landlords facing financial hardship as well as the tenants' eligibility will be objective. As for tenants, it will be IRAS which will make the assessment. If the landlord wants to challenge that, he can. If the tenant wants to challenge the landlord's assertion of financial hardship, which will again be based on annual value of the property and what proportion of the rental income forms part of his total annual income, they will be allowed to challenge.
Mr Pillai asked how we arrived at the 3% cap on interest in the repayment schedule and when it starts accruing. The 3% interest is comparable to the median rate of secured bank loans in April 2020 and takes into consideration the landlords' cost of capital with property as security. We are aware that some landlords' cost of capital could be higher than 3% but this rate is intended to strike a balance between the needs of landlords who have their own financial obligations, and the tenants who do face significant challenges repaying their rental obligations under these fairly extraordinary circumstances.
Interest at that cap rate will apply from the time that the rent was originally due and payable but the rent and interest will only be payable in accordance to the repayment schedule. Interest at that cap rate will continue during the schedule repayment period until the arrears are paid off. To be clear as well, only arrears that accrue from 1 February 2020 until 19 October 2020 can be repaid under this repayment schedule.
Mr Murali Pillai referred to clause 7 on the relief for tenants who are unable to vacate their premises after the expiry of lease because of COVID-19. He asked about whether there is a corollary provision to protect the landlords who have a back-to-back arrangement, with a new tenant to deliver vacant possession by a certain date. This is why I said this legislation is not simple, though it looks simple at first glance. There are many related contracts that need to be thought through and we have provided for it. The landlord can serve a Notification for Relief on the new tenant. We imposed the rules that for those two months, there can be no work; and if there is a knock-on effect, that has got to be taken into account.
So, the landlord can tell the new tenant he cannot deliver vacant possession on time and the new tenant cannot terminate the lease on that ground. This will give the landlord and the new tenant time to work out a compromise. If they cannot agree, they can apply to an Assessor who will make a determination to reach a just and equitable outcome.
Mr Christopher de Souza asked about the interaction between this relief and the rental waivers. There is non interaction. The rental waivers apply to the period during which the tenancy subsists. Holding over or double rent is only relevant when the tenancy has already ended and is not subsisting.
Mr Murali asked about whether leases are covered under Part 8. Part 8 may apply to all contracts that may be affected by an upstream delay in construction, except those which may be prescribed. Some contracts will be excluded.
We are looking at categories that should be excluded. For example, employment contracts should never be subject to these sorts of laws. But we also take the approach that only contracts which are actually written in, will be affected by the law as well and that will be gazetted.
Ms Jessica Tan asked if I could share how we have addressed the concerns of other affected stakeholders besides tenants and she mentioned that she is on the board of a REIT. We consulted landlords, bigger landlords as well as smaller landlords, we consulted REITs, we consulted business people and of course, we had substantial assistance from MTI, ESG, MOF, MND, MAS, bankers and so on.
So, in the process of formulating these measures, we consulted all of them. We held engagements with all of them, got their views, we actually took substantive feedback and amended, adjusted our proposals where we thought that we ought to do so. We could not take all the suggestions. You will see, as I have set out in the opening speech for the Second Reading, how we have come in to help the REITs, the landlords as well as the tenants, some by MinLaw, some by MAS talking to the banks, and some by IRAS and others, waiving some rules, amending them to help the REITs, for example.
Mr Christopher de Souza mentioned that some distinction should be made between large corporate landlords, and smaller landlords who may themselves be facing financial hardship. We considered this carefully. We considered the factors that should be taken into account as to when landlords should considered to be unable to provide the additional rental waiver. We think that the two factors to be taken into account are the annual value of their properties and the proportion the rental forms of the landlord's total income. This will allow us to distinguish between larger landlords and those who are heavily dependent on rental income for their livelihoods. The precise proportions, percentages will be set out in subsidiary legislation.
Mr Murali Pillai asked about the steps the Government is taking to ensure that those who are eligible for the rental reliefs are aware of this. I would say, I think businesses who need relief would be very aware of this legislation. In fact, they are waiting for it. We have had a fair bit of publicity. It was in Deputy Prime Minister's Statement last week. MinLaw has put it out. I would be very surprised if anyone who qualifies is, at this point in time, not aware that they are going to get some benefits. We will put it out as much as we can. And IRAS will notify property owners who have eligible tenants and the property owners will have to notify their tenants and sub-tenants as well.
Ms Jessica Tan asked whether the rental relief measures would unnecessarily prolong the exit of unviable businesses, or benefit such businesses at the cost of landlords and taxpayers’ monies. This is a very serious and important, fundamental question which more than troubled me and was front and centre in my consideration in deciding whether or not to intervene. Because we need to help but it cannot become a crutch and it cannot be such that unviable businesses, therefore, continue because we are using taxpayers' money.
So, the starting principle, I would say is this. It is fairness. When we have imposed the circuit breaker rules for two months telling businesses not to operate, then I think we ought to give relief for that period. If we accept that COVID-19 was an exceptional event, then we ought to legislate for that as well in that whether it is viable or unviable, that is something that no one could have predicted.
Second, the risk is not so much looking at unviable businesses but looking at viable businesses. Even perfectly viable businesses, given the kind of hit that I have pointed out – 60% drop in turnover in April and probably as bad if not more for May – viable businesses will go down, their employees will go down, people will lose a lot of money. That is our focus. So, I would say it is not as if we are asking them to get down to a cruise liner and everyone is going to be saved. We are throwing them a lifeline of a few months rental waiver.
But the seas are still rough because Phase Two, it is not as if immediately, business is going to go back to normal. And then Phase Three, how many people are going to go out? How many people are going to spend money? What about the safe distancing measures? In a restaurant, how many can sit? So, business conditions are going to be tough. The seas are going to be rough. People would have to swim very hard. So, it will only be the very fit, the viable businesses that will survive that period even with the relief that we are giving. And none of us knows how long this will last.
In addition to the measures already taken under COVID 1, we are also considering measures to assess certain micro and small businesses which may need help in winding up or where appropriate, with debt restructuring. But that is a larger piece of work. It is still work-in-progress and we do it when we can do it. This answers Mr de Souza's question on whether the Government has any plans to make further adjustments to the insolvency framework so that non-viable businesses that need to exit are able to do so smoothly.
Sir, I think I have covered all the questions. I thank again those who have contributed to this effort. Mr Speaker, I beg to move.
Mr Speaker: Are there any clarifications?
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]
[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr K Shanmugam]. (proc text)]
[(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adjournment","subTitle":null,"sectionType":"OS","content":"[(proc text) Resolved, \"That Parliament do now adjourn to a date to be fixed.\" – [Mr Desmond Lee]. (proc text)]
Adjourned accordingly at 8.05 pm.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Applications Received and Approved for Self-employed Income Relief Scheme","subTitle":null,"sectionType":"WANA","content":"16 Mr Leon Perera asked the Minister for Manpower to date, how many applications from self-employed adults below the age of 37 under the Self-Employed Person Income Relief Scheme have been received and how many of these applications have been successful.
Mrs Josephine Teo: The Self-Employed Person (SEP) Income Relief Scheme (SIRS) helps Singaporean SEPs with less means and family support tide over this period of economic uncertainty.
There is readily available information for auto-inclusion of SEPs aged 37 and above. The SEPs would have been previously assessed for eligibility under the Workfare Income Supplement scheme. This approach enabled over 100,000 SEPs to receive SIRS support without the need to apply for it.
To ensure deserving SEPs aged below 37 receive SIRS support, we accept applications for SIRS through the National Trades Union Congress (NTUC). So far, NTUC has received 20,500 applications from SEPs under the age of 37 that met the eligibility criteria and processed payments. A further 9,100 applications were incomplete and will be assessed for eligibility when applicants revert.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"One-off Extension of Hospitalisation Insurance Policies to Cover Elective Surgeries Postponed due to COVID-19","subTitle":null,"sectionType":"WANA","content":"17 Ms Sylvia Lim asked the Prime Minister whether the Government will advise healthcare insurers to provide a one-off extension of hospitalisation policies to cover elective surgeries that have been postponed due to the COVID-19 circuit breaker restrictions.
Mr Tharman Shanmugaratnam (for the Prime Minister): Due to COVID-19, many elective surgeries were put on hold since February this year. The Ministry of Health has announced that from 2 June, medical procedures for patients with higher needs will resume, while the less urgent elective medical procedures may continue to be deferred.
The postponement of elective surgeries should not result in any loss of health insurance coverage for policyholders. All Singapore Citizens and Permanent Residents are covered under MediShield Life for the lifetime of the policyholder, and will not be affected by the deferment of the surgeries.
As for those who have taken on additional health coverage. These include Integrated Shield Plans (IPs), other types of individual medical expense plans, and employer-based group medical expense policies. These policies are typically renewed every year, either by the individual or the employer, which means that coverage under these policies will also not be affected by the deferment of surgeries.
However, there may be some instances where the policyholder does not, or is unable to, renew a private health policy, and hence coverage is affected by the postponement of the elective surgery. The Monetary Authority of Singapore (MAS) has informed insurers of its expectations that they treat customers fairly and consider these claims favourably if the postponement of these procedures was solely due to COVID-19. Policyholders are advised to approach their insurers to discuss the circumstances of their claims. If that fails, they can appeal through their Members of Parliament or directly to MAS.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Review of Convertible Bonds for Retail Investors","subTitle":null,"sectionType":"WANA","content":"18 Assoc Prof Walter Theseira asked the Prime Minister whether MAS will review if convertible bonds should be issued, marketed, sold or traded to retail investors in light of the complexity and risks associated with these hybrid securities.
Mr Tharman Shanmugaratnam (for the Prime Minister): In regulating the sale of investment products, Monetary Authority of Singapore's (MAS) objective is to empower investors to make informed investment decisions which are compatible with their investment objectives, risk appetite, and financial situation. Our approach has worked well so far, and is a common approach adopted by many advanced jurisdictions.
Hence, for complex investment products which the average retail investor may not understand, MAS requires financial institutions (FIs) to implement various safeguards, including:
First, assessing a customer's investment knowledge and experience before selling the product to the customer;
Second, explaining to the customer the general features and risks associated with investing in such products; or
Third, advising the customer on the suitability of the product.
Convertible bonds are currently classified as non-complex as the product is well-established in the market, and the terms and features can be understood by most retail investors. It is sold as a bond, and stays as a bond, unless the investor or the issuer decides to convert it to equity.
However, in recent years, issuers have introduced non-conventional convertible bonds with features that retail investors may not be familiar with. For example, certain bonds may not have a fixed maturity date or may be converted to equity upon the occurrence of certain trigger events which are beyond the investor's control. MAS is therefore reviewing the classification of these products and other hybrid securities. MAS expects to issue a public consultation paper by the end of the year.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Impact of COVID-19 Pandemic on Implementation Dates of CareShield Life and MediSave Care","subTitle":null,"sectionType":"WANA","content":"19 Dr Chia Shi-Lu asked the Minister for Health whether the ongoing COVID-19 pandemic will affect the implementation dates of (i) CareShield Life and (ii) MediSave Care.
Mr Gan Kim Yong: CareShield Life is a new long-term care insurance scheme, and MediSave Care provides cash withdrawals for long-term care needs. Both schemes were originally planned for launch in mid-2020.
In light of various steps taken amidst the current COVID-19 pandemic, such as safe distancing precautions and the circuit breaker measures, there has been a reduced pace of development and testing work that can be undertaken by teams across our implementing agencies and vendors. This has caused a delay in the completion of IT systems needed to implement both CareShield Life and MediSave Care. As such, both schemes will be launched by end 2020.
CareShield Life will be launched first for future cohorts, who are Singaporeans born in 1980 or later. Singaporeans in these cohorts who are aged 30 to 40 years old in 2020 will be covered from end 2020, while those aged 29 or younger in 2020 will be covered when they turn 30.
The delay will also affect the launch date of CareShield Life for existing cohorts, who are Singaporeans born 1979 or earlier. This was originally planned for mid-2021. The launch date will now minimally be deferred till end 2021. MOH will review the situation and announce more details on the launch dates for future and existing cohorts when ready.
In the meantime, disabled Singaporeans and their caregivers who require assistance can continue to receive help from existing disability assistance schemes, such as the Home Caregiving Grant, Interim Disability Assistance Programme for the Elderly and ElderFund. If they require additional support for living costs, they can also tap on other schemes such as ComCare, the Temporary Relief Fund and the COVID-19 Support Grant.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Measures to Boost Immunity and Increase Awareness for Strengthening of Personal Immunity","subTitle":null,"sectionType":"WANA","content":"20 Mr Chong Kee Hiong asked the Minister for Health (a) what measures will be implemented to boost immunity amongst the general population; and (b) whether there are age-group specific practices which can be included in public education information materials and broadcasts to increase awareness about strengthening personal immunity.
Mr Gan Kim Yong: There is currently no effective vaccine to boost immunity against COVID-19.
However, keeping healthy will help ensure that our immune system is functioning properly. This means a well-balanced diet with sufficient intake of fluids, adequate physical activity, as well as having enough sleep and rest. Smokers should quit smoking as there is evidence linking tobacco smoke1 with immune dysfunction. Similarly, alcohol consumption2 should be avoided as it impairs the body's ability to defend against infection.
For persons with chronic conditions such as hypertension or diabetes, particularly among our seniors, complying with medication and regular medical follow-up to ensure that their condition remains under control is important to keep up the body's defences against infection. They should also go for the vaccinations recommended under the National Adult Immunisation Schedule (NAIS), such as vaccinations against seasonal flu and pneumococcal diseases.
It is equally important to take care of one's mental well-being3 during this period. Taking up one or two hobbies such as music, reading a book or learning a new skill online, as well as using relaxation techniques, can help improve mental well-being.
The Health Promotion Board (HPB) launched the \"Stay Well to Stay Strong\" campaign in February to provide Singaporeans with bite-sized videos and articles on practising good personal hygiene, healthy eating, physical activity, and mental well-being. With Singaporeans staying at home during the circuit breaker period, this has proven to be a valuable resource. In a span of three months from February till mid-May 2020, HPB's resources on the Stay Well to Stay Strong resource hub have seen over 360,000 page views, with a 17-fold increase in monthly viewership since inception. There are over 162,000 views of the exercise videos, a 13-fold increase in monthly viewership since the campaign started.
For seniors, who may use social media less often, Agency for Integrated Care (AIC) and HPB have partnered Mediacorp to roll out the \"Learn Together with Me Season 2\" television series on Channel 8, as well as the \"Stay Well to Stay Strong\" series in Malay and Tamil on Suria and Vasantham respectively. Viewership for the Channel 8 series averaged 113,000 people aged 50 and above per episode; the other two series are currently on air.
Amidst the ongoing COVID-19 situation, we will continue to provide Singaporeans with various health initiatives and use alternative platforms to encourage Singaporeans to remain healthy.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":["1 : Taghizadeh-Hesary, F, & Akbari, H. (2020). The powerful immune system against powerful COVID-19: A hypothesis. Medical hypotheses. 140, 109762. Advance online publication. https://doi.org/10.1016/j.mehy.2020.109762.","2 : Testino, G., & Pellicano R. (2020 Mar 27). Alcohol consumption in the COVID-19 era. Minerva Gastroenterologica e Dietologica. https://doi.org/10.23736/S11210421X.20.02698-7.","3 : Abudurachman, & Herawati, N. (2018). The role of psychological well-being in boosting immune response: An optimal effort for tackling infection. African journal of infectious diseases, 12(1-Suppl), 54-61. https://doi.org/10.2101/Ajid12v1S.7."],"footNoteQuestions":["20"],"questionNo":"20"},{"startPgNo":0,"endPgNo":0,"title":"Medical Consensus on Blood Clotting Abnormalities in COVID-19 Patients","subTitle":null,"sectionType":"WANA","content":"21 Ms Anthea Ong asked the Minister for Health (a) whether there is a medical consensus on the blood clotting abnormalities seen with COVID-19 patients; (b) whether the Ministry is looking at overseas data to guide Singapore; (c) what measures are being taken in the dormitories to detect blood clots early; (d) what support is given to conduct research on this growing concern; and (e) whether the Ministry will give priority to fast-track such research.
Mr Gan Kim Yong: I thank the Member for the question, which has been addressed to a similar question filed by Mr Leon Perera on 4 June 2020.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Mental Healthcare Provisions for Work Permit Holders","subTitle":null,"sectionType":"WANA","content":"22 Ms Anthea Ong asked the Minister for Manpower (a) what mental healthcare is provided for work permit holders residing in (i) dormitories (ii) factory-converted dormitories (iii) onsite temporary quarters and (iv) other residences; (b) how are these measures communicated to (i) work permit holders and (ii) their employers; (c) how does the Ministry work with NGOs in expanding support to work permit holders for their mental health needs; (d) whether the Ministry will establish for work permit holders (i) a dedicated mental wellness hotline that funnels to the respective NGOs and (ii) ground consultation teams staffed with mental healthcare professionals.
Mrs Josephine Teo: The Ministry of Manpower (MOM) partners with NGOs, such as Migrant Workers' Centre (MWC) and Healthserve, to meet the mental well-being needs of foreign workers living in dormitories and other forms of housing.
The Migrant Workers' Centre has an existing 24 hours helpline manned by MWC staff where workers can call in for assistance on any issues, or if they just need a listening ear. In April, Healthserve launched a dedicated mental wellness hotline where workers can access important medical information and submit their requests for tele-counselling sessions. These tele-counselling sessions are conducted by more than 100 trained volunteer counsellors in the foreign workers' native languages. Since April, Healthserve's hotline has received more than 4,000 enquiries and more than 300 workers have signed up for their tele-counselling sessions. Workers who are in distress for any reason can call either the MWC or the Healthserve hotline.
In addition, our FAST teams and MWC's network of 5,000 Foreign Worker Ambassadors proactively look out for residents, whom they assess may benefit from the service, and refer them to a mental health counsellor. Depending on the group size, Healthserve may tap on their pool of more than 30 volunteer Psychiatrists for a remote group counselling, or activate a counsellor for one-to-one tele-counselling session with the worker. More than 150 cases have been referred to Healthserve so far.
Besides counselling services, Healthserve and MWC also provide financial assistance to help foreign workers in financial distress.
To ensure dormitory residents are informed of the available support channels including the MWC and Healthserve hotlines, MOM sends out regular bulletins highlighting the help that organisations such as MWC and Healthserve can offer. Videos produced by Healthserve on upholding mental health have also been shared among the residents. At the dormitories, posters are put up to inform residents of when they should seek help and how. Additionally, all first-time non-Malaysian work permit holders are required to attend a mandatory one-day Settling-in Programme where they are taught the avenues and given the hotline numbers to seek help if they are stressed or depressed.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Measures and Penalties to Ensure Dormitory Operators and Landlords Comply with Requirements for Communal Living","subTitle":null,"sectionType":"WANA","content":"23 Miss Cheryl Chan Wei Ling asked the Minister for Manpower (a) apart from periodic checks by the enforcement team, what more will be done to ensure that dormitory operators and landlords that provide lodging for foreign workers comply with rules for communal living; and (b) whether there will be tougher penalties for failure to comply such as the suspension of their operating licence and repossession of the rental flats or houses.
Mrs Josephine Teo: The Inter-Agency Taskforce is systematically testing to clear all dormitories of COVID-19 infections in the coming months. Before residents are allowed to resume work, all parties, including dormitory operators, employers and workers, are required to implement safe management and safe living measures to ensure migrant workers work and live in a safe environment.
Besides implementing safe management measures to prepare for the re-opening of workplaces, employers are also required to cooperate with the dormitory operators to facilitate the testing and clearing of their workers in the dormitories. These include confirming and updating the addresses of their workers in the Online Foreign Worker Address Service (OFWAS) and working with the dormitory operators stagger pick-up and drop-off time and provide dedicated transport for their workers to and from the workplaces.
Dormitory operators are required to implement safe living measures to minimise the risk of transmissions in the dormitories. These measures include tracking the entry and exit of residents and visitors in and out of the dormitories, limiting the inter-mixing of residents such as by staggering the use of common facilities, and strengthening the health surveillance of dormitory residents to identify residents who display symptoms of infection and isolate them quickly. In addition, we are working with the dormitory operators to progressively reduce the density of the existing dormitories by re-housing workers in the new temporary dormitories as they come online. This will allow the existing dormitories to provide more living space per resident to reduce the risk of transmission of infectious diseases in the dormitories.
Finally, workers also have an important role to play to ensure that rules for communal living are complied with. For example, they are responsible to monitor their health conditions daily, abide by the rules set up by the dormitory operators to minimise physical interactions with residents from other blocks, and promptly report to their dormitory operators and employers if they are feeling unwell.
To help employers and dormitory operators to understand and implement these measures effectively, MOM has provided relevant advisories and checklists and conducted briefings for the dormitory operators. To help foreign workers better understand their responsibilities, we have produced simple communications materials, such as infographics, in the workers’ key native languages for employers and dormitory operators to educate their workers and residents with. We have also tapped on mobile applications for foreign workers and foreign worker ambassadors from the Migrant Workers' Centre to reach out to the workers.
Besides engagement and outreach efforts, there will be penalties and consequences on each party if they do not do their part. Employers who fail to fulfil their responsibilities may be fined up to $10,000 or jailed up to 12 months, or both under the Employment of Foreign Manpower Act (EFMA). They may also be debarred from employing foreign workers.
Dormitory operators who fail to put in place safe living measures at the dormitories can face a fine of up to $50,000 or imprisonment term of up to 12 months, or both, per contravention. Operators licensed under the Foreign Employee Dormitories Act (FEDA) may also have their operating licence revoked. Private property owners or landlords who have not complied with these measures will not be allowed to rent out their properties or flats to foreign workers.
To ensure that workers comply with the safe living measures in the dormitories, dormitory operators are to set clear house rules and corresponding consequences for non-compliance. All cases of non-compliance have to be reported to the Ministry of Manpower (MOM). Workers who repeatedly breach house rules pose a risk to others and may have their work passes revoked.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Monitoring Payment Modes of Salaries to Foreign Workers Living in Dormitories","subTitle":null,"sectionType":"WANA","content":"24 Mr Louis Ng Kok Kwang asked the Minister for Manpower (a) currently, what number and percentage of employers with foreign workers residing in dormitories (i) declared that they will pay salaries electronically (ii) paid salaries electronically and (iii) paid salaries in cash; (b) what specific steps, other than relying on worker complaints, does the Ministry take to monitor employers who are paying salaries in cash are correctly paying their foreign workers residing in dormitories; and (c) what are the exceptional circumstances under which employers are permitted to pay workers residing in dormitories in cash.
Mrs Josephine Teo: As is the case for all employees whether local or foreign, they must step forward to inform MOM if they have been paid an incorrect salary. It is in their own interest to do so in a timely manner.
Since April 2020, MOM has been requiring employers of foreign workers, especially those with workers staying in the dormitories, to make declarations on the status and mode of salary payment to their workers. This is an additional precaution that MOM has introduced proactively, to track the payment of salaries to foreign workers to intervene early in cases where salaries are owed. We also required employers to pay salaries electronically to ensure that workers can receive their salaries even if they are unable to leave the dormitories.
The vast majority of employers contacted declared to MOM that they would pay April 2020 salaries electronically. A very small number of employers declared that they were unable to do so, citing technical or administrative issues. Such employers were allowed to pay outstanding salaries in cash at dormitories where the risk of COVID-19 transmission was assessed to be low.
MOM is following up on every case in which the employer declared that he owed salaries, or a dormitory worker reported that he was owed salaries. Should workers face any salary issues, they can raise them with the Forward Assurance & Support Team (FAST) officers on the ground, so that MOM can follow up with their employers.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Rehoming and Implementing Controls over Euthanising Healthy Dogs or Cats","subTitle":null,"sectionType":"WANA","content":"25 Mr Louis Ng Kok Kwang asked the Minister for National Development with regard to people seeking to euthanise their healthy dog or cat (a) whether the Ministry will make it compulsory for them to produce documented proof that they have (i) attempted to rehome the animal and (ii) received certification from an Animal and Veterinary Service-accredited trainer that the animal, if aggressive, is untrainable; and (b) whether it will be made compulsory for veterinarians to wait for a pre-determined length of time before euthanising the animal, during which the animal's details are published on websites of NParks and animal welfare groups to facilitate rehoming.
Mr Lawrence Wong: All veterinarians in Singapore must comply with the Code of Ethics for Veterinarians. Under the Code, veterinarians are required to take into account public safety and animal welfare in deciding on the course of treatment for an animal. The Code states that veterinarians must consider other treatment options prior to considering euthanasia. It also allows veterinarians to reject an owner's request for euthanasia, should he or she deem it inappropriate. Failure to comply with the Code can result in enforcement action being taken against the veterinarian.
Mr Ng has raised several suggestions, which we will consider carefully, and in consultation with all stakeholders. In particular, NParks will continue to work with the Singapore Veterinary Association on these matters, and ensure that the Code of Ethics remains up to date with developments in the veterinary industry and international best practices. NParks will also continue to work with its partners to promote awareness of behavioural training options and rehoming avenues amongst pet owners.
All parties, be it pet owners, animal welfare groups, dog trainers, or veterinarians, have duties and responsibilities regarding the adoption and euthanasia of pets. We will need everyone to do their part, even as we continue to update our regulatory rules and requirements.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Reports of Spalling Concrete in Owned and Rental HDB Flats in Last Three Years","subTitle":null,"sectionType":"WANA","content":"26 Ms Joan Pereira asked the Minister for National Development for each of the past three years, how many reports of spalling concrete has HDB received for (i) owned and (ii) rental HDB flats respectively.
Mr Lawrence Wong: Spalling concrete is a result of natural wear and tear due to the corrosion of steel reinforcement bars embedded in concrete floor slabs. The corrosion is caused by moisture and acids in the concrete which can build up over time. Spalling concrete can be minimised through surface maintenance such as regular painting of the ceiling. If ceiling surfaces are regularly maintained, and any spalling concrete is detected early, spalling concrete is usually minor and can be easily repaired.
For sold flats, flat owners are responsible for the maintenance of the interior of their flats. We encourage flat owners to regularly inspect their ceilings for signs of spalling concrete, and to undertake the necessary maintenance and repairs. In the last three years, Housing and Development Board (HDB) received a yearly average of 10 reported cases of spalling concrete per 1,000 sold flats, and 23 reported cases of spalling concrete per 1,000 rental flats.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Disease-testing for Wild-caught Soft-shelled Turtles Imported for Consumption","subTitle":null,"sectionType":"WANA","content":"27 Mr Louis Ng Kok Kwang asked the Minister for the Environment and Water Resources with regard to the import of wild-caught soft-shelled turtle for consumption (a) what diseases are the animals tested for; (b) for each disease, how many tests have been carried out in each year for the past five years; (c) for each disease, what are the number and percentage of test results that have been positive in each year for the past five years; and (d) whether the Ministry will start collecting this data if it is not already doing so.
Mr Masagos Zulkifli B M M: The Singapore Food Agency (SFA) takes a science-based risk assessment approach to manage food safety from farm to fork. For imports of food, SFA imposes control measures that are calibrated based on the assessed food safety risks. Importers must be licensed, and apply for import permits for each consignment of food imported into Singapore, which facilitates food traceability and recalls if any food safety infringements are found. SFA also conducts regular food safety inspections and testing of the end product to ensure that food sold in Singapore complies with our food safety standards and requirements.
Such control measures are applied to the import and slaughter of turtle for food in Singapore. Approximately 95% of all the turtles, including wild-caught soft shell turtles, which are imported for food are slaughtered and processed into meat products at a SFA-licensed local slaughterhouse, with the remaining live turtles being distributed to the four wet market stallholders within one market for sale. Given that the food safety and disease transmission risk associated with the import, slaughter and sale of turtles is low, SFA does not test for diseases in imported turtles which are sold live. Nevertheless, as part of SFA’s inspection regime, SFA conducts random sampling and testing of turtle meat products, including those from the SFA-licensed slaughterhouse, for foodborne pathogens such as Shigella species and Vibrio cholerae (pronounced as vee-brio collar-rae).
Over the past five years, SFA has collected a total of 63 samples of turtle meat products and conducted 129 laboratory tests on these samples. All test results showed that the samples met SFA's food safety and hygiene requirements with no foodborne pathogens detected. Thus far, there have not been any foodborne outbreaks associated with the consumption of turtles.
In line with ongoing efforts to improve public health and environmental hygiene standards in Singapore, SFA will continue to be vigilant in its inspection regime and tighten requirements for food safety when necessary. However, the assurance of food safety is a joint responsibility across the industry, consumers and the Government. To prevent foodborne illnesses, food handlers and consumers should also observe good food safety and hygiene practices, such as the washing of hands with soap and water before and after handling any raw meat, and by thoroughly cooking the meat, which helps to kill any harmful bacteria.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Impact of Recent Commodity Trade \"Blow-ups\" on Singapore's Reputation as Commodity Trading Hub and Need to Strengthen Regulatory Frameworks","subTitle":null,"sectionType":"WANA","content":"28 Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) whether recent commodity trade blow-ups in Singapore will impact our reputation as a commodity trading hub; (b) whether there is a need to strengthen regulatory frameworks; and (c) how are financial irregularities kept at the minimum and adequately penalised to ensure Singapore remains a fair and safe hub to conduct trading.
Mr Chan Chun Sing: Approximately 80 percent of the world's largest entities in the energy, agriculture, and metals and mining sectors have made Singapore their home for international trading. This makes Singapore one of the top three global trading hubs along with Geneva and London. Singapore is regarded as an attractive location by global trading companies due to our robust legal framework, open and competitive marketplace with a large pool of counterparties, and strong financial and shipping sectors.
Members would be aware of the recent news of a few high-profile cases in the commodity trading sector. While I am unable to comment on specific cases that are undergoing investigations, let me set out some principles that underpin our regulatory philosophy.
First, trading companies, like all commercial entities, must abide by Singapore's penal code and commercial laws. Instances of fraud are punishable by a fine, imprisonment, or both.
Second, like Geneva and London, we apply a risk-based regulatory regime. For example, companies that deal with retail customers in commodity derivatives and spot commodities, are licenced and regulated under the Securities and Futures Act and Commodity Trading Act respectively. Those that transact only in commodities derivatives and spot commodities on their own account, and do not solicit funds from members of the public, are currently exempt from licencing. Such companies are subject to credit assessments by their lenders and counterparties, and market best practices. Following the recent cases, Enterprise Singapore and the Monetary Authority of Singapore are reviewing the disclosure and lending practices in trading companies and their financing banks respectively, to consider if additional measures are needed to increase transparency and trust in the industry.
Third, we review our regulatory regime regularly to continue to ensure that we are in line with global standards and ensure that we remain a fair and safe trading hub for all market participants.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Funds and Time Required in Packing and Distributing NDP Funpacks This Year and Process to Opt Out of Receiving Funpacks","subTitle":null,"sectionType":"WA","content":"1 Ms Anthea Ong asked the Minister for Defence (a) how much state and sponsorship funds and NSF time will be used in packing and distributing the increased number of NDP funpacks this year; (b) whether the Ministry has considered specific items that the funds can be used in a way that brings forth the community spirit of Singaporeans and demonstrate our solidarity and gratitude with the workers on the frontlines of the COVID-19 crisis; (c) whether there will be a process to ensure citizens can opt out of receiving the funpacks; and (d) so, whether the savings from these opt-outs can be redirected to more urgent needs in this time of financial prudence, for example food programmes for those in need.
Dr Ng Eng Hen: With regards to Question No. 1, the Member's question has been addressed in my reply to similar oral Questions 1, 2 and 3, as raised by MPs in this sitting.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Extent of Information Used for Contact Tracing from SafeEntry System for Recent COVID-19 Incidents","subTitle":null,"sectionType":"WA","content":"2 Mr Leon Perera asked the Minister for Health to what extent information from the SafeEntry system has been used to do contact tracing and alerts in relation to the incidents on 20-21 May 2020 whereby COVID-19 patients visited Jurong Point as well as other similar incidents.
Mr Gan Kim Yong: SafeEntry information has been used to strengthen the movement history information provided by confirmed COVID-19 cases, for purposes of contact tracing and epidemiological investigations. This includes the confirmed COVID-19 cases who had visited Jurong Point.
The Ministry of Health (MOH) had used the check-in information from SafeEntry to confirm that COVID-19 cases had separately visited Jurong Point, and the specified outlets there. The information was used to formulate the list of public places that the cases had visited, and this has been made available to the public. Persons who had been at the locations during the specified times should monitor their health, and promptly seek medical care if they develop COVID-19 symptoms.
MOH will continue to leverage on different modes of technology to better support the efforts to prevent and control the COVID-19 outbreak.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Ensuring Public Safety when Seeking Mental Healthcare Services and Standards of Practice within the Mental Healthcare Profession","subTitle":null,"sectionType":"WA","content":"3 Ms Yip Pin Xiu asked the Minister for Health (a) what is being done to ensure public safety when the public seek mental healthcare; (b) how can the general public check that mental health practitioners are competent and fit to practice; and (c) what is being done to uphold standards of practice within the mental healthcare profession.
Mr Gan Kim Yong: Licensed healthcare institutions and clinics providing mental health services have systems in place to ensure that psychiatrists, psychologists and other mental health professionals are adequately trained. They also need to have mechanisms to monitor the quality of services provided and address any complaints.
The list of registered doctors and their credentials are available on the Singapore Medical Council's website. Psychologists may choose to register with their professional associations. The public can refer to the websites of private psychology associations, such as the Singapore Psychological Society, for listings of psychologists registered with them.
Both MOH and our healthcare institutions have systems in place to look into feedback or complaints against mental health practitioners. Patients may also lodge a complaint against doctors, including psychiatrists, with the Singapore Medical Council (SMC).
To uphold and improve standards, the SMC requires doctors, including psychiatrists, to undergo continuing medical education before their practicing certificates can be renewed. For other professionals such as psychologists, the Skills Framework for Social Service spells out the skills and competencies required for each job. The framework helps healthcare providers, training providers and the professionals to identify training needs and develop training programmes to upskill these professionals.
In addition, MOH and our healthcare institutions provide fellowships under the Healthcare Manpower Development Plan (HMDP) to send mental health professionals for specialised training. The HMDP scheme also facilitates visits by reputed overseas experts to Singapore to transfer knowledge and capability to local mental health professionals.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Organisations and Personnel with Access to Parliament Livestream","subTitle":null,"sectionType":"WA","content":"4 Mr Leon Perera asked the Minister for Communications and Information what are the organisations, whether Governmental, media or otherwise and what kinds of personnel within those organisations have access to the Parliament livestream offered by the Ministry.
Mr S Iswaran: Selected Government officials have access to Parliamentary livestreams to support their official work duties.
Mediacorp and Singapore Press Holdings also have access, to facilitate accurate and timely reporting of parliamentary proceedings.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Installation of Metal Window Grilles for HDB Flats to Enhance Safety for Young Children and Elderly","subTitle":null,"sectionType":"WA","content":"5 Ms Joan Pereira asked the Minister for National Development whether the Ministry will consider installing metal window grilles for (i) owned and (ii) rental HDB flats to enhance safety for young children or the elderly who may move into these flats.
Mr Lawrence Wong: The Housing and Development Board (HDB) does not provide window grilles as a standard feature in its flats, whether sold or rental, as not all households require them.
Flat owners who require window grilles, such as families with young children, can purchase them readily from the market, selecting from the range of options available based on their design preferences and budget.
For HDB rental tenants, HDB will install window grilles for windows facing the external facade at no cost upon request. Tenants may approach HDB if they wish to have window grilles installed.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Study on Safety Measures Taken by Other Countries upon Reopening of Parks and Nature Areas","subTitle":null,"sectionType":"WA","content":"6 Miss Cheng Li Hui asked the Minister for National Development (a) whether the Ministry has studied the safety measures taken by other countries as they reopen their parks and nature areas; and (b) whether the Ministry will consider reopening parks with safe distancing measures in place to allow Singaporeans and families to spend more time with nature.
Mr Lawrence Wong: Our parks and nature areas have remained open for the public to exercise throughout the circuit breaker period, with safe distancing measures in place. Besides deploying NParks officers as safe distancing ambassadors and enforcement officers on the ground, we also use mobile applications, robots, and drones to conduct crowd monitoring and ensure safe distancing. These allow NParks to track visitorship in real time and respond promptly to crowding. Visitors can also access real-time updates on visitorship online, so that they can exercise at uncrowded parks near their homes.
Some facilities, such as car parks, food and beverage outlets, playgrounds, fitness corners, fishing areas, and certain beaches have been closed to allow for safe distancing and to prevent gathering in groups. We plan to gradually re-open these facilities in Phase 2 of the post-circuit breaker period with the necessary precautions. NParks will continue to study the measures taken by other countries as we reopen these facilities, and consider adopting additional safe management measures where relevant.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Statistics on Complaints Received by Tripartite Alliance for Dispute Management (TADM) in Areas of Wrongful Dismissal, Retrenchment and Contractual Termination","subTitle":null,"sectionType":"WA","content":"7 Mr Patrick Tay Teck Guan asked the Minister for Manpower whether she can provide a statistical breakdown of complaints received by the Tripartite Alliance for Dispute Management (TADM) from 1 April 2019 to 31 May 2020 in the areas of (i) wrongful dismissal (ii) retrenchment and (iii) contractual termination.
Mrs Josephine Teo: Table 1 below provides a breakdown of claims related to wrongful dismissal, retrenchment benefit and salary-in-lieu of notice received by the Tripartite Alliance for Dispute Management (TADM) between 1 April 2019 and 30 April 2020.
In anticipation of the increase in claims since the start of the circuit breaker, MOM has strengthened the support to both employees and employers to resolve end-of-employment disputes. Where employees have filed wrongful dismissal claims, a good number have been due to the abrupt manner of termination rather than unfair terms – most employers have fulfilled their contractual obligations. With the complainants' agreement, we refer them to Workforce Singapore or e2i for employment facilitation.
We recognise that this is a period of unusual stress for employers and employees alike. Regardless of their business circumstances, all employers should carry out termination of employment contracts fairly, responsibly and sensitively. They must continue to adhere to employment laws, contractual terms, and the relevant tripartite advisories.1 Employees are also encouraged to engage their employers to seek clarity on issues of concern. Where there are irresponsible practices by employers, MOM will investigate and take enforcement actions as necessary.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":["1 : Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment and Advisory on Salary and Leave Arrangements during circuit breaker."],"footNoteQuestions":["7"],"questionNo":"7"},{"startPgNo":0,"endPgNo":0,"title":"Consequences for and Enforcement Against Employers Who Have Not Made Declaration for Salary Payment Electronically","subTitle":null,"sectionType":"WA","content":"8 Ms Anthea Ong asked the Minister for Manpower (a) what percentage of employers have not made a declaration by 15 April 2020 that they will pay salaries electronically by the next salary payment due date; (b) what are the reasons cited for not doing so; (c) what are the consequences for this non-declaration given that electronic salary payment is now a legal requirement; and (d) how will the Ministry enforce this new law.
Mrs Josephine Teo: The vast majority of employers are now paying salaries electronically. In the initial month of implementation, a very small number of employers were unable to do so, due to technical or administrative issues. For example, their workers' bank account applications were still pending approval by the bank. In these cases, the Ministry of Manpower (MOM) allowed the employers to continue to pay outstanding salaries in cash.
Due to its urgent necessity, this new requirement was introduced at very short notice. Nevertheless, the vast majority of employers have complied. MOM will continue to follow up and remind the remaining employers to make the switch if they have not already done so, especially now that circuit breaker measures have been lifted. MOM will in due course take enforcement action against non-compliance, as it would for other conditions under the Employment of Foreign Manpower Act.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Gender-disaggregated Data on Job and Income Losses during COVID-19 Outbreak Period","subTitle":null,"sectionType":"WA","content":"9 Ms Yip Pin Xiu asked the Minister for Manpower whether the Ministry will release gender-disaggregated data on job and income losses during the COVID-19 outbreak period.
Mrs Josephine Teo: MOM releases gender-disaggregated labour market data such as unemployment and retrenchment indicators on a quarterly basis through the Labour Market Reports. The 1Q 2020 report will be released in mid-June.
Gender-disaggregated gross monthly income data is released on an annual basis through the Ministry's Labour Force in Singapore report.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":"1","footNotes":null,"footNoteQuestions":null,"questionNo":null}],"writtenAnswersVOList":[],"writtenAnsNAVOList":[],"annexureList":[{"annexureID":1401,"sittingDate":null,"annexureTitle":"Annex 1","filePath":"d:/apps/reports/solr_files/20200605/annex-Annex.pdf","fileName":"Annex.pdf","sectionType":"BP","file":null}],"vernacularList":[{"vernacularID":3941,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Ang Wei Neng","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Ang Wei Neng Fortitude 5June2020-Chinese.pdf","fileName":"Ang Wei Neng Fortitude 5June2020-Chinese.pdf"},{"vernacularID":3942,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Gan Thiam Poh","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Gan Thiam Poh Fortitude 5June2020-Chinese.pdf","fileName":"Gan Thiam Poh Fortitude 5June2020-Chinese.pdf"},{"vernacularID":3943,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Dennis Tan Lip Fong","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Dennis Tan Fortitude 5June2020-Chinese.pdf","fileName":"Dennis Tan Fortitude 5June2020-Chinese.pdf"},{"vernacularID":3944,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Terence Ho Wee San","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Terence Ho Fortitude 5June2020 -Chinese.pdf","fileName":"Terence Ho Fortitude 5June2020 -Chinese.pdf"},{"vernacularID":3945,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Leon Perera","filePath":"d:/apps/reports/solr_files/20200605/vernacular-5 June 2020 - Mr Leon Perera - Debate on DPM Statement.pdf","fileName":"5 June 2020 - Mr Leon Perera - Debate on DPM Statement.pdf"},{"vernacularID":3946,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Zaqy Mohamad","filePath":"d:/apps/reports/solr_files/20200605/vernacular-5 June 2020 - MOS Zaqy Mohd - Debate on DPM Statement (cred2).pdf","fileName":"5 June 2020 - MOS Zaqy Mohd - Debate on DPM Statement (cred2).pdf"},{"vernacularID":3947,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Vikram Nair","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Mr Vikram Nair, Take 24, 3.45-4.00 pm, 5 June 2020 (Tamil).pdf","fileName":"Mr Vikram Nair, Take 24, 3.45-4.00 pm, 5 June 2020 (Tamil).pdf"},{"vernacularID":3948,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mr Heng Swee Keat","filePath":"d:/apps/reports/solr_files/20200605/vernacular-Heng Swee Keat Fortitude Roundup 5June2020-Chinese_MOF edits.pdf","fileName":"Heng Swee Keat Fortitude Roundup 5June2020-Chinese_MOF edits.pdf"}],"onlinePDFFileName":""}