1 Ms Ellen Lee asked the Minister for Foreign Affairs (a) whether the existing water agreement signed between Malaysia and Singapore allows for Malaysia to raise the price of raw water sold to Singapore at any time before its expiry in 2061; (b) if not, what is the reason for the Johor state government to make this proposal now; and (c) how will bilateral relations between Singapore and Malaysia be impacted if Singapore rejects the proposal for a price increase. \t
\tThe Minister for Foreign Affairs (Mr K Shanmugam): Mdm Speaker, Ms Ellen Lee has asked whether Malaysia had the right to review the price of raw water sold to Singapore. We have stated our position on this issue and also conveyed it officially to the government of Malaysia on several occasions.
As I had mentioned in my COS speech yesterday, neither Malaysia nor Singapore can unilaterally change the price of raw water sold to Singapore. Indeed, neither party can unilaterally change any of the terms of the 1962 Water Agreement. This is no ordinary agreement. It was guaranteed by both governments in the Separation Agreement in 1965, which was registered with the United Nations. Both countries have to honour the Water Agreement and the guarantee in the Separation Agreement. Any breach of the Water Agreement would also be a breach of the Separation Agreement and of international law.
Singapore's position is that Malaysia has lost its right to review the water price. The Water Agreement provided for the review after 25 years. Specifically, there was a right to review the price jointly in 1987. However, Malaysia consciously chose not to review the price.
It had good reasons for this. Malaysia benefits greatly from the current pricing arrangement. Johor buys 16 million gallons per day of treated water back from us at 50 cents per 1,000 gallons. Fifty cents per 1,000 gallons is only a fraction of the true cost to Singapore of treating the water, which includes building and maintaining the entire infrastructure of the water purification
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plants.
Malaysian leaders have acknowledged that Malaysia benefits from the current arrangement and explained that, indeed, that was why Malaysia made a carefully considered decision not to review the water price in 1987.
Then Malaysian Prime Minister Dr Mahathir Mohamad said in 2002 that Malaysia did not revise the water pricing when it was due because they thought Singapore would also revise the price of treated water supplied to Malaysia. One can refer to the Bernama report on 11 October 2002.
Then Johor State Assembly Speaker, Zainalabidin Mohd Zain, said that the Johor government had not made a mistake in not pressing for a review in 1986, and said, \"There was no point in doing so because Johor was dependent on Singapore for its treated water supply, and Singapore would have also increased its price of treated water sold to Johor.\" This was from New Straits Times, 3 July 2002.
Under the agreement, after Malaysia decided not to review the water price in 1987, there is no longer any right to review the price of water. Had Malaysia exercised the right to review the water price in 1987, Singapore might then have made different investment decisions to develop Johor River, for instance, that Linggiu Dam project of 1990.
In the event Malaysia chose not to review the water price in 1987 and, on that basis, Singapore then took several actions which also benefited Malaysia. This included building the Linggiu Dam at the cost of over $300 million, which has increased the yield of the Johor River, and enabled both Johor and Singapore to draw water from it during this dry season.
Our position on this issue is well-known to Malaysia. We have stated this publicly and also conveyed it to the Malaysian government, including at the highest levels. The Malaysian government understands the position. Foreign Minister Anifah Aman said on 17 February 2014 that, \"an agreement is an agreement. When there is an agreement, we will honour the agreement. If there is any need for review, we will forward it and if their response is positive, we will start talking\".
We welcome the Foreign Minister's statement. It reaffirms the position Malaysia has taken previously on honouring the agreement – indeed, that cannot be in any doubt – and acknowledges that a review on the water price is
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possible only if Singapore agrees with such a review.
Ms Lee also asked about the Johor government's reported proposal for a price review. We have only heard of this proposal from media reports emitting from Johor, but there have been no official approaches from Malaysia on this issue. It would thus be premature to speculate on the impact of any such approach on our bilateral relations.
We enjoy good relations with Malaysia at all levels, starting with the two Prime Ministers. But good relations also depend on both parties taking a broad approach to the relationship and honouring all agreements between the two countries. We will continue to work to enhance our cooperation and friendship with Malaysia in order to benefit both our peoples.
\tMs Ellen Lee (Sembawang): Mdm Speaker, the Minister's comprehensive reply has taken away two out of my three supplementary questions, but I still have one more – thank goodness. Do we still need to buy raw water now that we have our own reservoirs, desalination plants and NEWater?
\tMr K Shanmugam: I think the Member may want to ask that of the Minister for the Environment and Water Resources.
\tMdm Speaker: Minister Vivian Balakrishnan?
\tThe Minister for the Environment and Water Resources (Dr Vivian Balakrishnan): Mdm Speaker, I am actually answering a question on this tomorrow. So, maybe the Member can wait a while and we will provide a more comprehensive answer.
\t
\t
Mdm Speaker: Order. End of Question Time.
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[Mdm Speaker in the Chair]
The Chairman: Supplementary Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014, contained in Paper Cmd 2 of 2014. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads E, F, K, O, P, Q, V, W and X of the Supplementary Main Estimates.
[(proc text) Question, \"That the sums stated for the Heads of Expenditure as shown on page 5 of Paper Cmd 2 of 2014 stand part of the Supplementary Main Estimates\", put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $318,452,700 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014 contained in Paper Cmd 2 of 2014\", put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Question, \"That the sums stated for Heads Q, T and X as shown on page 7 of Paper Cmd 2 of 2014 stand part of the Supplementary Development Estimates\", put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $1,674,209,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014\", put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mdm Speaker: Minister for Finance.
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The Deputy Prime Minister and Minister for Finance (Mr Tharman Shanmugaratnam): Mdm Speaker, I beg to report that the Committee of Supply has come to certain resolutions.
[(proc text) First resolution reported, (proc text)]
\"That the sum of $318,452,700 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014, contained in Paper Cmd 2 of 2014.\"
Second resolution reported,
\"That the sum of $1,674,209,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2013 to 31 March 2014, contained in Paper Cmd 2 of 2014.\"
Mr Tharman Shanmugaratnam: Mdm Speaker, I beg to move, \"That Parliament doth agree with the Committee on the said resolutions.\"
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolutions accordingly agreed to. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Estimates of Expenditure for the Financial Year 1 April 2014 to 31 March 2015","subTitle":"Committee of Supply – Paper Cmd 1 of 2014","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]
[Mdm Speaker in the Chair]
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","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head J (Ministry of Defence)","subTitle":null,"sectionType":"OS","content":"[(proc text) Resumption of Debate on Question [5 March 2014], (proc text)]
[(proc text) \"That the total sum to be allocated for Head J of the Estimates to be reduced by $100\". – [Dr Lim Wee Kiak] (proc text)]
[(proc text) Question again proposed. (proc text)]
Mr Alvin Yeo (Chua Chu Kang): Mdm Chairman, may I take my two cuts together?
The Chairman: Yes, please.
Mr Alvin Yeo: First cut on ASEAN Defence Ministers' Meeting. Mdm Chairman, our defence cooperation agreements with other ASEAN countries is an important aspect of our regional security framework. The ASEAN Defence Ministers' Meeting (ADMM) and the ADMM-Plus are both relatively new components of our regional security architecture, especially the ADMM-Plus which was established in 2010. Can the Minister provide an update on how the ADMM and ADMM-Plus have progressed and contributed to our regional security?
My second cut on the Gulf of Aden. The Gulf of Aden has been notorious for piracy incidents which have threatened international shipping. As a responsible member of the international community, Singapore has to do its part to counter the piracy threat. Can the Minister update the House on our contributions to the international counter piracy effort in the Gulf of Aden?
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Mr Alex Yam (Chua Chu Kang): Mdm Chairman, at the Committee of Supply in 2013, the Minister for Defence made mention on the creation of additional posts for full-time safety officers in the SAF to ensure better compliance with training safety regulations. A Directorate for Safety and Systems Review (DSSR) has also been formed. The House was informed that the DSSR would also set up external review panels which will submit recommendations to the Minister for Defence.
The SAF is the port of call and a rite of passage for a vast majority of Singaporean men. Families send their sons and, now, also some of their daughters, to serve and defend this land we call home. It is, therefore, imperative that, in doing so, the utmost is done to ensure that they have a safe and secure training environment.
While there have not been major incidents in 2013, I hope that the Minister will be able to provide and update as to the number of near-misses and serious injuries that occurred during the last year and whether this has seen a downward trend with the introduction of more safety measures.
The external review panel for SAF safety, one of the review panels of the DSSR, was set up in September last year. While the visits have commenced, they will only conclude their report in 2016. Could this be accelerated? What other systems have been put in place to address safety lapses?
All of us owe it to our men and women in the SAF that they train with one of the best-equipped and best-trained forces in the region. It is therefore important that they have peace of mind, knowing that we do all we can to ensure their safety.
The Chairman: Mr Ong Teng Koon, you have three cuts. You can take them together.
Mr Ong Teng Koon (Sembawang): Thank you, Mdm Chair. The commonly held notion of \"chance favouring the prepared\" cannot be underestimated. Effective training of our NSmen is, therefore, vital if we are to
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have a strong defence force.
Changes to our demography are posing new challenges to the way we train our soldiers. The influx of new immigrants, falling birth rate and a shorter NS stint mean that we have to update our training methodology to be more responsive to changing circumstances. Of particular concern is whether the operational readiness of our NSmen is affected by falling birth rates. Does this mean SAF would have to intensify its efforts to capitalise on technology to make up for less physical bodies?
We need to keep NS going and to keep NS strong. Training enhances the fighting competence and capability of our NSmen. Singaporean youths are a highly sophisticated and educated bunch. They are technologically savvy. This is a good thing. How can we tailor our training to better take advantage of their abilities?
Training safety is equally important. I am happy to note that we have had no training deaths in 2013. I look forward to hearing from the Minister for Defence on MINDEF's continuing enhancement to the training efforts of our NSmen to effectively harness their talent and to hear what the Minister has to say about MINDEF's efforts to augment training safety.
Next cut, Madam. A related topic is Singaporean's commitment to defence. The defence of Singapore is dependent on the will of Singaporeans to support the policy of having a strong SAF, and crucially, to take personal responsibility and to get involved in our defence.
Our defence philosophy is predicated on being a strong deterrent force that is technologically advanced. Enemies know that they will have to suffer significant losses if they ever decide to take up arms against us. At the same time, they know that Singaporeans will hold nothing back in the defence of our homeland. This psychological edge is as important as having the latest and most advanced machines. To this end, how does MINDEF ensure that Singaporeans continue to remain committed to defence?
On Total Defence, the concept of defence should really be seen at the level of Total Defence. Besides Military and Civil Defence, Economic, Social and
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Psychological Defence are as important. This year marks the 30th Anniversary of Total Defence. How has Total Defence remained relevant, and how is MINDEF educating the public about the continued importance of Total Defence?
Mr Alex Yam: Madam, in my Budget speech, I asked if we could all remember what we were doing when we were 16. Being 16 in 1942 at the fall of Singapore was perhaps the worst of times. In the decades after, being 16 has gotten easier and much less fraught with danger and uncertainty. But perhaps for some, we have become soft, unaware of the dangers of unstable geopolitical winds. But, at the same time, NS, as a key institution, continues to play a key role in rooting our people to the defence of our nation. Yet, defence can be a vague concept. And as we mark 30 years of Total Defence, how do we plan to further strengthen this message that all of us, in and out of uniform, play a crucial role? With recent incidents in the region, including the naming of an Indonesian navy vessel, it is perhaps no better time than this to do so.
Being 16 in the decades to come should still be filled with carefree joy and security. Yet, we must remain cognisant of the constant need to be united. The theme for this year's Total Defence is \"Because You Played a Part\". Let us not revisit anytime that being 16 could be the last year of life amidst conflict and suffering.
Mr Nicholas Fang (Nominated Member): Madam, many Members have spoken on the changing and evolving challenges that face Singapore and other small countries in this region, in terms of security concerns and relations with other powers.
The increasing tensions between China and Japan seem to draw in even superpowers like the United States and there are implications for smaller states within ASEAN in their relations between these two superpowers. The maritime territorial disputes in the South China Seas though not directly affecting Singapore itself as a non-claimant state, also threaten to draw in some of our partner nations within the ASEAN grouping as well, and there are pressures for ASEAN as a whole and for small countries like Singapore to take a stand potentially to align itself on one side or the other, which goes contrary to the nature of ASEAN and to Singapore's position of being a friend to all sides.
The implications for Singapore, in terms of defence, are far reaching, in terms of the changing, evolving international concerns. I believe the Defence
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Minister has mentioned the potential of Singapore being part of the multinational force under the auspices of ASEAN. I think the evolving nature of the SAF should take into consideration what this will actually mean for the development of the force as we go forward.
Other challenges that face our country, Singapore, of course, involve issues like terrorism, which is a continually evolving challenge, and the current Third Generation SAF and, hopefully, the Fourth Generation SAF, will also take into consideration some of the future needs to deal with such challenges as times evolve.
A core issue, despite all these challenges from abroad and within, comes down to the idea of communicating what it means to have a strong defence in Singapore.
Through my work as a member of the Working Group of the CSNS committee, we have heard many stories of the commitment by NSmen, both full-time and those who have moved out of their full-time service, is very, very great. My own experiences as an NSman show that many of my compatriots and my colleagues within the unit are willing to extend the service voluntarily to ensure that they play a role and continue to play a role in the defence of the country.
As other hon Members have mentioned so far, a key question now is how do we ensure that the future generations take on the significance of everyone doing their part for Total Defence. The relevance of Usman Harun, the recent incident, the historical anecdotes of what happened during Konfrontasi, I think much of this is actually lost on the younger generation. I hope that the Ministry, as it continues to plan its budget going forward – considering the hardware that we need to acquire and to renew to ensure that we remain relevant as an international force – will also consider devoting sufficient resources to communicating the message of the need for defence.
I think it is very easy for the younger generation these days to be a little bit cynical and to point out the fact that given that we are friends with so many nations, there is no real need for a defence force that is strong or stronger, in terms of relative capabilities to our neighbours, given that we are friends with everyone.
Members in the House spoke yesterday of the need to speak from a position of strength before we can exhibit work from the heart. I think that before we can
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talk about the conviction and the ability to use some of the hardware that we will acquire, we have to ensure that we receive broad-based support from the younger generation and generations to come who commit to NS as an important part of nation-building, as an important part of Singapore's growth story going forward.
This becomes even more critical with the diminishing population, given the population trends that we are facing, that everyone carries out their duties, not just in the sense of fulfilling the time required to ticking the box and saying that I have completed it, but to do it wholeheartedly and with the conviction that this is something that it is really relevant and really important for the future and security of Singapore.
Each generation comes forward and says that we are willing to do our part. But how do we communicate to them that the relevance and the importance of having a strong defence force is something that is integral to the question and survivability of Singapore going forward? And I believe ensuring that the communication and the awareness of the evolving framework that we are facing will continue to be an important part going forward.
The Minister for Defence (Dr Ng Eng Hen): Madam, first, let me thank Members of the House for their continued support for MINDEF and the SAF and the strong defence of Singapore. I feel very heartened because this support came from Members regardless of party affiliation, Nominated Members included. I take to heart Mr Nicholas Fang's affirmation for a strong defence and for individual effort, and for us to communicate a need for a strong defence.
The Pioneers of Singapore take centrestage of this Budget and COS. But the Deputy Prime Minister and the Minister for Finance is a bit upset with MINDEF for putting up the PIONEER bag. Well, you know the PIONEER magazine came before his package, so that gives us some latitude.
For them to take centrestage is the right thing. Singaporeans owe a debt of gratitude to our founding generation – for their vision, tenacity, sacrifice and hard work. Because without these pioneers, today's modern, successful and stable Singapore could not have been built. Our pioneers were deeply convicted that a strong military was necessary to defend Singapore as an independent nation.
The convictions of this founding generation were visceral, emotionally riveted, as many of them personally lived through Singapore as a British Colony,
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through the Japanese Occupation, Konfrontasi, the communal riots and the Communist insurgency. You would have met some of them. Some of them were your relatives, as you have described. When you speak to them about these events, you can see in their faces a face shift as they are relating an incident, mental images seared in their minds, and they speak to you with a different depth of conviction.
Subjugation and terror; fearful even when unjustly treated; defenceless and too weak to respond – these raw lessons that they learnt first-hand on power and dominion shaped their belief, sank deep their conviction that a strong security force was critical to ensure peace and stability for Singapore and to protect our sovereignty.
Even so, when we gained Independence in 1965, this founding generation saw clearly the insurmountable odds to build a credible defence. The reason: Singapore was a poor country with very few resources and our people lived in an island with what military experts say we have no strategic depth geographically.
For the Army, National Service started with significant teething problems in equipment and training. Conscription was newly introduced, and had yet to find general acceptance and commitment. To train our first pilots, the RSAF – it was not called the RSAF then, it was called the Singapore Air Defence Command (SADC) – had to borrow a Cessna from the Singapore Flying Club! The Singapore Flying Club was built before the SADC. Our Navy's illustrious beginnings were two wooden hull boats that could not go very far from our shores and so they confined themselves to constabulary duties within the Singapore Strait.
And what of our magnificent \"communications network\" that we speak of today? Well, in our beginnings, we had six high frequency radio sets that we took over from the 4th Malaysian Signals Squadron.
From these humble beginnings, we have today a modern, professional and credible SAF – the Army, Navy and Air Force linked as one fighting machine – able to stand up to the wide range of security threats, able to protect Singaporeans and defend our airspace and surrounding waters.
The SAF has had to undertake missions thousands of kilometres away from home, whether it was in unfamiliar seas off Somalia, the air space over Iraq or the mountains of Afghanistan. We have done well and this transformation of
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the SAF speaks volumes of past efforts and of the sterling and defining contributions of our pioneers. We salute the pioneers who laid the foundations of the strong SAF today.
But as with the building of Singapore, the work of building up the SAF is not done. This generation must continue the pioneering efforts to maintain and build up a strong SAF. Present challenges exist and new ones are on the horizon, as many Members in this House have spoken about – Dr Lim Wee Kiak, Ms Irene Ng, Mr Alex Yam, Mr Ong Teng Koon, Mr Nicholas Fang, Mr Pritam Singh, Mr Gerald Giam.
A new generation with different experiences, memories and motivation now form the SAF as protectors of this nation. And, indeed, our immediate part of the world is changing dramatically, as Dr Lim Wee Kiak and Ms Irene Ng pointed out.
In the latter half of the 20th century, US dominance in both security and economic spheres was unchallenged, and it provided the security umbrella for this region. In the 21st century, China's rise as an economic and military power is redefining the power dynamics in the Asia Pacific. Japan and Korea are responding to these dramatic shifts as are India and ASEAN.
Already, Asia's defence spending has surpassed that of Europe's and it is projected to surpass that of the US within the next decade – Asia will spend more than the US. A militarisation of many countries within Asia of this magnitude has no historical precedent. This is the larger strategic backdrop against which territorial disputes and incidents amid rising nationalism should be viewed.
I recently attended the 50th Munich Security Conference – its 50th gathering – and there was one distinguished panel which stood out. It consisted of, among others, former German Chancellor Helmut Schmidt, former French President Valery Giscard d'Estaing, and former US Secretary of State Henry Kissinger – octogenarians, maybe even nonagenarians, in their 80s and 90s, all World War II and Cold War veterans.
This distinguished panel made the trenchant observation that Europe had not seen a major war in the last 50 years. That was a signal of achievement to them because after two World Wars and the Cold War, there was political will
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by European leaders to make war between one European country and another irrelevant. But barely a month after that meeting, a crisis has precipitated in Ukraine, taking it to the brink of war with concerns that another Cold War might emerge.
Beyond Europe, I was struck by a comment Secretary Kissinger made of Asia. Often, we look at Asia from within but, often times, it is useful to hear the views from outside, from others looking towards Asia. Kissinger said that Europe, in the post-modern period, was reluctant to engage in military conflict, very eager to maintain its standard of living and quite different from the Europe that organised the world 100 years ago. A hundred years ago, because this is 100 years since the First World War. However, he continued, Asia, at present, was more like 19th century Europe, where military conflicts among each other – he mentioned between China and Japan, or other neighbours – could not be excluded. Military conflict in Asia could not be excluded. Kissinger added that the risk exists that \"some relatively peripheral issues are escalated step by step, into a conflagration.\"
These were sobering words, indeed, on the risks that exist in Asia from wise men who have studied or witnessed the making of wars.
How do we prepare and build our defences for this kind of future? I think many Members here in their speeches are grappling with this issue. How do you prepare for this future? It is not possible to predict the future precisely or tailor-make an SAF that meets only specific security challenges. All of us know that because if you look within the last decade – just within the last 10 years – all the major security challenges globally, whether it was 9/11, the terrorist threat, SARS, piracy – all came as surprises.
No one foresaw us operating a Weapon Locating Radar and UAVs and running hospitals 6,000 km away in Oruzgan in Afghanistan, or deploying frigates and naval helicopters more than 7,000 km away in the Gulf of Aden. This is not a surprise because military history is replete with unknown unknowns. And because we are unable to forecast specific security threats, we, therefore, must adopt a more robust and resilient approach by building an SAF that can deter would-be aggressors and meet a wide range of security threats so that we would not be caught off-guard or flat-footed.
A robust approach in building our defence capability to achieve strategic deterrence is why MINDEF maintains a steady defence spending which has delivered, over time, a strong SAF respected by even advanced Western
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militaries. Our planning horizons are intentionally long term and we spend prudently and steadily. This steady defence spending allows us many \"opportunity buys\", for example, the refurbished Leopard Tanks from Germany. It was a good buy because this was what they termed the \"post-Cold World War dividends\" – the Berlin Wall came down, people said tanks were no longer required, so there was a huge surplus of tanks that went on the market and we picked them up at a relatively good price and refurbished them.
After this came Iraq/Afghanistan where the Canadians, who had sold their Leopard Tanks realised that Leopard Tanks were, indeed, very much needed even in desert warfare, had to re-buy them at an escalated price. So, we were smiling and said, \"Good buy\".
This steady defence spending allows us a long lead time to train our men adequately and to develop platforms that meet our specific requirements when we cannot buy from the open market. For example, some of you may have heard of our Pegasus lightweight howitzer that was locally developed, it can be lifted by helicopters and self-propelled; it is the first and still the only one of its kind in the world.
MINDEF will continue this approach of steady defence spending that has reaped significant benefits for our defence capabilities. In other words, we will avoid sharp spikes unless the security risks require increased spending. We will also avoid sharp dips that will undermine our defence capabilities over the medium term. So, if you look at our defence spending over the last 10 years, and I think Members have asked for it – what is our thinking, what is our trend – if you look at our defence spending over the last 10 years, it reflects this steady investment in capability building where our defence budget has roughly kept pace with inflation. Let me give you the figures.
In 2004, it was S$8.6 billion and, last year, it was S$12.2 billion. In other words, it has kept pace more or less with inflation and I expect going forward that our defence spending will continue on this trajectory that more or less keeps pace with inflation over the long term. It is sustainable and it is a prudent way of investing in our defence capabilities.
In buying equipment, we prefer to upgrade existing platforms instead of buying new ones. For example, we upgraded our Navy's missile corvettes which were first commissioned in the early 1990s. These \"ladies\" are not particularly young but they are still very seaworthy and we have upgraded them. The Army's Leopard tanks were also bought second-hand and upgraded to
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meet our needs.
Through this prudent, steady, long-term view of defence spending, the SAF today that has been built up is a deterrent force, and it sends a strong signal to all that Singaporeans value our independence and we will fight to protect it. This signal, this unequivocal signal of deterrence is priceless.
The SAF has also responded well to security challenges, even unexpected ones, as we have done in Afghanistan and the Gulf of Aden. Another \"test\" that validated whether our SAF is ready was our response to the Indian Ocean Tsunami in 2004. Members would remember that this happened on Boxing Day, so there was no prior warning, but we were able to quickly dispatch the Charlie-130 aircraft with supplies and helicopters to assist in the efforts, as well as a Landing Ship Tank (LST). The RSS Endurance carried over 400 people, more than 50 vehicles, and a large amount of relief supplies. This was, of course, to Aceh and this was before we realised also that other parts were also hit. Remember the epicentre, it also affected Krabi and across in Thailand.
So, within days, we had to send our second LST, it was deployed, and then a third. At this time, our fourth and remaining LST was deployed in the Northern Arabian Gulf. For your information, we only have four LSTs – all deployed, 100% operational efficiency, button pushed, all out – deployed, ready, men and machine working well.
It is because we have invested steadily, trained our men, made sure that our systems are optimised that we are able to do this. And when called to do more, the SAF will step up. Ms Ellen Lee asked about our National Maritime Security System (NMSS), and the SAF have stepped up to coordinate and control this maritime security system.
We have done well thus far, but MINDEF and the SAF must again be strongly positioned for the future. Mr Sitoh Yih Pin, Mr Nicholas Fang and Mr Pritam Singh asked about this.
The question is: what are we building for the future? So, I thought instead of telling you, I will try to show you, I think it is much easier. Let me illustrate with a schematic of what the SAF might look like in the SAF in 2030. You will find this in your goodie bag, this particular picture [A slide was shown to hon Members]. Basically, it says current, planned and future.
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The SAF in 2030 will be one with all parts highly connected. Which means that whether it is the fighter pilot in the air, the sailor out on the oceans or the soldier on land, each will be able to see the big picture and, beyond that, speak to one another to jointly target threats and orchestrate responses. Let me repeat that. Whether you are a fighter pilot, sailor in the ocean, soldier on land, you will be able to see the big picture, speak to one another, jointly target threats and orchestrate responses. It sounds simple but very, very difficult to do. This concept of a networked force is now a reality and the SAF is a frontrunner, in global terms, in realising the full potential of a networked military.
In 2030, our F-16s would have been upgraded with what we call the Active Electronically Scanned Array (AESA) radars which are more precise, which can see further and can see with greater precision and will have more precise air-to-ground munitions. The F-16s upgraded, with our F-15s, would be able to defend our airspace ably. In addition, we would have acquired our next generation fighter aircraft, which I think Mr Pritam Singh asked about, but we are not quite ready to decide yet. We will take our time because our F-16s and F-15s serve us for the near term and medium term.
We will also have in place multi-layered air defence capabilities with the deployment of the SPYDER and ASTER-30 Surface-to-Air Missile Systems. In other words, layers of air defence. Our current KC-135 aerial tankers will have been replaced by the Airbus A330 Multi-Role Tanker Transport (MRTT), which we have decided to acquire. The MRTT or the A330 can hold 20% more fuel than our current KC-135 and we will extend the range of our fighters through Air-to-Air Refuelling. The Airbus 330 can also double up as a cargo and troop air-lift to deploy troops and equipment to overseas sites further away as we have done in HADR operations. You will be familiar with the A330 because you fly in some of these commercial planes.
For our Navy, the two Type-218SG submarines will be in operation, together with our two Archer-class submarines. Our Frigates, operating with their Sikorsky S-70B Naval Helicopters, and our new Littoral Mission Vessels, will form the mainstay of our surface fleet. The Naval helicopters have proved to be effective and versatile for a wide range of missions. When we deployed them in the Gulf of Aden, we validated their usefulness in counter-piracy missions, and therefore the SAF has decided to acquire two more Naval helicopters. The SAF has also found the multi-role Landing Ship Tank (LST) to be an effective workhorse in our relief efforts. So, whether it was the Indian Ocean Tsunami, the Northern Arabian Gulf, whether it was to relief efforts elsewhere, they were found to be effective. But if there was one limitation, it was in the carrying capacity. We are therefore studying carefully the need for
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larger LSTs that can carry more helicopters as well as more cargo.
The Army in 2030 will certainly be more mobile. In the next 10 years, the number of units that will operate on wheel or track platforms will almost double. So, whatever we have now, in 10 years they will double in numbers and this will create more mobile units. This includes more Terrex Infantry Fighting Vehicles to deal with threats in urban environments. The Terrexes will be linked to UAVs to see better, further and act more decisively. The Bionixes will also be upgraded and this will be operationalised by 2030.
By 2030, the SAF also expects that future systems that are currently prototyped or thought about will probably be part of our day-to-day use. Possibilities include multiple micro-UAVs for individual soldiers. Some of you may have seen them on YouTube – these gyrocopters that are swarming. It is very likely that individual soldiers will be able to use them, or robotic mules that can carry very heavy loads and follow soldiers autonomously. I know this will be every soldier's dream where a robot mule carries your rifle, but do not get ahead of yourself, this is for serious stuff. We will continue to test these capabilities in realistic terrain and scenarios. For example, we did it in Exercise Forging Sabre 2013 where we deployed the widest range of platforms and precision munitions to date, including F-15, F-16, Apache and Chinook helicopters, and our High Mobility Artillery Rocket System (HIMARS).
I am painting you a snapshot of the SAF 2030 so that you can see what our defence spending is moving towards in visual terms. These capabilities of the SAF, if achieved by 2030, should provide Singaporeans the confidence that Singapore can be protected. I say \"confidence\", not \"certainty\". The future is as always unpredictable. I would also remind Members of this House and Singaporeans, who have asked whether we are too far ahead or we are too well protected, that as a small country of only 700 square kilometres and about four million residents, our vulnerabilities will always exist. We cannot erase these vulnerabilities. We can mitigate them, and prepare the best we can for our defences with the resources available. But we must be resilient enough to withstand the unforeseen. But, most importantly, whether we can deter would-be aggressors for another 50 years and achieve peace depends not on advance systems or weaponry, no matter how sophisticated, but our people and their resolve to defend our island home.
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Therefore, I agree completely with Members who have said that we have to raise and inculcate values in the next generation and in this generation. We must therefore continually strengthen the training and commitment of our solders, which is why we started the Committee to Strengthen National Services which I chair, and the Second Minister and Minister of State chair the workgroups. Our National Servicemen are a critical part of our fighting force and, together with the regulars, are crucial to our defence. This is why we have to ensure that Singaporeans give full commitment to their duties during NS.
I think Singaporeans should be heartened that NS continues to enjoy widespread support. Many of you would have read the independent survey conducted by Institute of Policy Studies. It was randomised, rigorous in statistical terms. We outsourced it so that it would not be connected with MINDEF. They surveyed 1,200 people last July – 98% of respondents acknowledged that NS is crucial for national defence and for securing Singapore's peace and prosperity. When they presented these results to me, I tried very hard to poke holes in the methodology. I said these were the people that you knew would say that defence is important. The researcher was somewhat taken aback. He said \"no\", and he defended it very well. I kept probing him. And he was satisfied that his methodology was rigorous. I know of no issue in Singapore when 98% of your respondents give support. The Committee also engaged nearly 40,000 people from all walks of life to draw ideas as well as to find ways that we think we can improve.
I would say while the majority of Singaporeans support NS, many also said that the time committed to the SAF during full-time national service and in-camp training could be better utilised. I think that is fair comment. The SAF takes this criticism to heart because those who gave feedback were not asking for lighter loads or less involvement. They, in fact, wanted NS to better strengthen our national identity, social cohesion and instill discipline and values, which many Members of this House have echoed. They said that there should be less time wasted and more effective training systems. I agree that these are good outcomes, even if people are committed to NS, and that we should find ways to improve the system – seriously look at the system to see if we can improve. So, I asked the SAF to take a serious look, and let me share with Members some preliminary responses from the SAF.
We need and we can improve training, but we will need to employ more professional trainers, especially for the Army. Let me explain why. The current system has second year full-time NSmen train and lead new recruits and servicemen. You would have gone through it yourselves or you may have children and relatives who have gone through it. In other words, the older batch,
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second year NSF train and command the first year NS batch. I think there are merits in this. You really build commanders, you need leadership skills and build a sense of stakeholdership, ownership.
But there are limitations, compared to having professional trainers which will have greater impact on training outcomes, inculcating discipline, and more important, transmitting values. There is a limit to which what a 22-year-old NSF second year can transmit to a 21-year-old. Some of them do it very well and I am very proud of them. But we have to accept that there are limits. In fact, using only full-time regular trainers is how the commandos train their recruits in basic training. They have done that for years. All their trainers are professional trainers. So, for the basic military training centre, which I think your relatives and children go to, only one in six trainers are professional regulars. Of all the trainers, five are NS full-time, and one of them is a professional regular.
So, arising from the Committee to Strengthen National Service (CSNS), the SAF has decided to employ more regulars as full-time trainers, as a career path. We are studying the details about how many we need, but we could employ as many as 1,100 more regulars to fill this vital role. This will increase the proportion of professional regular trainers in Basic Military Training Centre from one in six, to one in three, which is a significant improvement and which I think will strengthen the training of our NSmen.
Full-time Army trainers will make the training of NSmen more effective and efficient, possibly even shorten training duration. As quickly as I said that, let me quickly dispel unrealistic expectations. The number of in-camp training that NSmen have to perform will not be reduced. Let me say that, again – will not be reduced. The reason is this: we reduced it from 13 in-camp training to 10 in-camp training cycles in 2006. As many of you have pointed out, including Mr Ong Teng Koon, demographic challenges are there, and we need these 10 in-camp training cycles and those in MINDEF reserves to maintain the strength in our standing force. This will meet our defence needs, even with falling birth rates, until 2040.
The largest impact of employing more regular trainers will be on the training of our full-time NSmen. There can be some time savings because in the present system, some time is required for the second year NSF trainers to adapt themselves to the training environment in their units and training schools. Having regular trainers will smoothen this transition. But here, again, let me quell unrealistic expectations. The time savings will be a few weeks at most, if any. I am not making any promises here, because the Army has to study many details to ensure that we can continue to generate operationally ready units. If
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there are some time savings in terms of weeks, we will pass it on and we will operationalise it, but Army is under no pressure to deliver on that score.
However, there is an area which we can improve in, arising from the feedback, and that is to reduce the waiting time before enlistment. Many of you know this problem. The reason is because Singaporeans before enlistment have different education pathways. Some go to Junior Colleges, some go to Polytechnic and some go to ITE. They have different waiting times – some are longer than others. I asked the SAF to respond to this feedback, to develop a system where we can commit to all enlistees, except for some exceptions, that all of them can start their BMT and NS within a fixed timeframe, say, within four to five months. I think this is possible. But please remember that we are dealing with nearly 20,000 enlistees every year, so the logistics are very challenging. The Army is studying this seriously and expects to complete its detailed studies on the issues raised by the CSNS in the second half of this year.
The Committee also noted that many Singaporeans supported the idea of more women, first-generation PRs and new citizens volunteering for roles in national defence. The idea of an SAF Volunteer Corps for women, PRs and new citizens has gained wide acceptability. Mr Pritam Singh talked about his own session that he was involved in and we think that this is a very good idea that we will adopt. Second Minister Chan Chun Sing will speak more on this idea. Minister of State Maliki will also share ideas from the CSNS how we can enhance recognition and benefits for our NSmen.
Some of the Members have asked how we are good stewards of another precious resource, apart from dollars – land – and I agree with them. MINDEF is mindful to use land efficiently, given competing needs, which Dr Lim Wee Kiak and Ms Sylvia Lim asked about. This is why MINDEF and the SAF, on its own, undertook studies to relocate Paya Lebar Airbase. I want to remind everybody here that this will free up 800 hectares in Paya Lebar for redevelopment, as announced by the Prime Minister last year.
Where we can, we also train overseas. But we do need local land for training, which we optimise. The Multi Mission Range Complex (MMRC) is an example. We encourage Members to visit it. We will arrange for you to visit this Complex. The Multi Mission Range Complex houses seven ranges which can simulate both day and night conditions. It occupies the site of what used to be one single 100-m range. Seven ranges on one site.
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We consolidated our training into two main training areas – the live firing and manoeuvring areas in the West and the offshore training area in Pulau Tekong. We have intensified the use of our camps and equipped centres to fulfil operational, security and safety requirements.
Our security is also strengthened when we build up defence ties with other countries, as Ms Ellen Lee mentioned. With Malaysia, our Armed Forces cooperate regularly through bilateral exercises and joint activities, including the Malacca Strait Patrols and the Five Power Defence Arrangements. Last month, our two navies – the Malaysian and Singapore navies – commemorated the 30th anniversary of Exercise Malapura. My counterpart Dato' Seri Hishammuddin Hussein visited Singapore recently and we agreed to strengthen bilateral defence cooperation. With Indonesia, the warship naming episode has impacted bilateral relations and set back many years of relationship-building in defence ties. Yet, Singapore and Indonesia continue to share many common interests in maintaining regional peace and security. We want good defence ties with Indonesia. I hope that we can rebuild this important relationship, based on mutual trust and respect.
With the US, the rotational deployment of the US Navy's Littoral Combat Ships in Singapore began last year. Our close relations with the US have provided us with many benefits, such as access to high-end defence systems, which contribute to our capability as well as access to training space. I mentioned to Members that the training space in Arizona is many multiples of the whole of Singapore. Without these areas, we will be unable to hone or test our capabilities. We also welcome the US Secretary of Defence Hagel's reassurance that the US remains committed to this region.
With China, the SAF and the People's Liberation Army have regular professional exchanges. We attend each other's courses and port calls. Last year, when the PLA Navy called at Singapore, we took the opportunity to conduct a bilateral passage exercise. I look forward to working with the new Chinese Defence Minister Chang Wanquan and the new PLA leadership. Our ties with partners, such as Brunei, Thailand, Australia, New Zealand, India, France and Germany, also remain strong.
Mr Alvin Yeo asked for an update on the ASEAN Defence Ministers' Meeting-Plus. The ADMM-Plus has made good progress. One example is the Humanitarian Assistance and Disaster Relief Exercise in Brunei last year where
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over 3,000 personnel from all 18 ADMM-Plus countries exercised in June last year.
Mr Alvin Yeo also asked about our international security efforts in the Gulf of Aden. We will deploy a fifth Task Group, comprising a frigate and a naval helicopter, to the Gulf of Aden, from March to June this year.
Madam, we build the SAF for an uncertain future with unknown risks and new challenges. But MINDEF is confident that as long as we have the strong support of Members of this House and Singaporeans, who are resolved to defend ourselves and willing to invest in building these capabilities, the SAF will be able to preserve our peace and protect our sovereignty. Second Minister Chan and Dr Maliki will address your remaining questions, as well as elaborate on the deliberations of their various CSNS Working Groups.
The Second Minister for Defence (Mr Chan Chun Sing): Mdm Chair, beyond military hardware, the strength of our defence and the SAF is founded on the support of our society and the fighting spirit of each and every Singaporean.
I chair the CSNS \"Support for NS\" Working Group. We take it as our starting point that societal support for NS, while very high now, should never be taken for granted. As Mr Sitoh Yih Pin said, support for NS has to be reinforced and continuously strengthened, especially in times of peace. For what we do today will determine what we can achieve tomorrow. The commitment of the previous generation defined the SAF of today. The commitment of this generation will define the SAF of the future.
To strengthen community support for NS, we will look into restructuring the Advisory Council on Community Relations in Defence, or ACCORD, as we call it. MINDEF intends to strengthen ACCORD's outreach with various groups, especially with employers or businesses, schools, families and the community at large.
For partnership with employers and businesses, we desire to work closely with trade associations and business chambers in the different sectors to find specific ideas to better support NSmen in balancing their work commitments and their duties to our nation.
We will also review the Total Defence Awards to recognise organisations which have gone the extra mile to demonstrate their support for NS. These will
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include employers, businesses, schools and community organisations.
During the CSNS discussions, it was heartening to hear much feedback and many ideas on how MINDEF can provide more avenues for more Singaporeans to come forth and serve our defence needs. MINDEF is seriously working on the proposal for a new SAF Volunteer Corps. This will allow the broader community – in particular, women, new citizens and first generation PRs – to better understand and contribute to our defence.
The proposed SAF Volunteer Corps should harness the different skills of the volunteers to complement our defence capabilities. Volunteers with expertise in specific areas, like healthcare, communications and psychology, could be given opportunities to serve in their respective specialist areas. Others who wish to serve in other military functions, like Protection of Installations or Access Control as part of our Island Defence, could be trained as necessary for these operations.
MINDEF will also look into developing basic modules to impart relevant basic military skills and values to all volunteers. Specific training will then be conducted according to operational needs. In order for meaningful contributions to be made, volunteers could commit to performing various operational duties for a certain period of time.
Madam, when I speak to NSmen, they often tell me that they are not afraid of hard work or more work. They want, more than anything else, meaningful work. In fact, many of them would want their potential to be fully realised. We can take pride that we have come a long way since the early days of NS, where one might be advised by concerned parents to do the minimum necessary and never to volunteer for more.
MINDEF will look into this feedback to see how we can increase the leadership opportunities for our people to do more, in more meaningful ways, and to do justice to the potential of our people. Indeed, the operational demands of the SAF have evolved. Increasingly, operations are now much more decentralised, necessitating stronger small unit leadership. More advance technology also requires better trained operators and leaders.
These are opportunities for us to better match each serviceman's background potential and interests with the operational needs of the SAF. A system that allows us to build on the potential of our soldiers will certainly be
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stronger than a system that deconstruct and then reconstruct them.
MINDEF will also want to strengthen our qualification system for employers to better appreciate the skills and leadership qualities of our NSmen. This will not only help NSmen in their job market, but also provide meaningful recognition for their efforts during NS.
Mdm Chair, Mr Gerald Giam asked about the prudent use of our NSmen resources.
MINDEF appreciates that we are stewards of our nation's most important resource and, that is, our NSmen. We have spoken about optimising the talent and contribution of our NSmen above. Let me now touch on optimisation of training time, which we recognise is a premium for all of us.
Take, for example, call-ups and in-processing for In-Camp Training (ICT). MINDEF has, over the years, refined the call-up system according to operational needs. Only NSmen needed for a specific set of duties are called up for that specific timeframe that they are needed, and no more. For example, for planning of ICTs and Mobilisation Exercises, only relevant Commanders are called up prior to ensure the smooth planning and execution before the main body comes in for training. For Mr Giam's information, this system has been in place for many years.
On the day of the in-processing, what used to take half a day or more, will now require less than an hour to complete. Many NSmen have given feedback that, in the past, they would come in and have about half a day just to adjust to the new environment before training commenced. Nowadays, they would have in-processed, completed their unit route march with full battle order before lunch time. I am not sure if this is a compliment or complaint.
Last year, at the Committee of Supply 2013, I shared with Members of the House how we used to conduct mobilisation and equipping over the entire day or night. Now we take the same time to do everything that was done previously, plus many more things like refresher training – all within the same time budget. MINDEF will continue to refine our processes and leverage on IT to optimise the use of our NSmen's time, without compromising safety and operational effectiveness.
The Multi-Mission Range Complex (MMRC) that the Minister talked about is another investment that MINDEF has made to maximise our NSmen's
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training time and also to optimise our land use, as suggested by Dr Lim Wee Kiak. We combined seven ranges into one single complex. What used to take almost two days and two nights for a 500-men unit, can now be done in slightly just under a day. In addition, new training proficiencies, like shooting under different environment conditions – day or night, urban or jungle terrain, or different operational scenarios – can now all be done faster and with better and more immediate feedback.
MINDEF will soon launch the Murai Urban Live Fire Facility to strengthen our units' live fire competencies in an urban environment. Previously, we could only allow up to a section of seven men to conduct urban live fire training. In the future, we will be able to train a company size force of more than 100 men in an urban live fire environment, operating in an integrated manner with support fires from tanks and armoured personnel carriers or infantry fighting vehicles and all these done with facilities to provide immediate feedback to help our soldiers and units improve their performance.
Ms Sylvia Lim asked about the benefits of outsourcing and security controls. MINDEF outsources certain non-operational roles selectively to free up manpower for critical operational roles. For example, basic driver training is outsourced because we can tap on the civilian learner-driver market. However, vocational and combat driving is maintained under the core competencies of the SAF.
All sub-contractors are subject to the necessary security and safety requirements. For example, the contractors working at the MMRC, where weapons and live ammunition are involved, would be subject to an even higher level of security clearance. All contracts have their respective series of performance indicators that contractors must meet.
Mdm Chair, let me now update Members of the House on the SAF's training safety system.
Last year, Dr Ng announced the formation of the Safety and Systems Review Directorate to conduct safety and systemic reviews on MINDEF and SAF. This Directorate has been established since June last year with a mix of ex-military and civilian officers.
The Directorate has also convened an External Review Panel for SAF Safety since October 2013, comprising experts from outside the SAF. The panel has since reviewed the safety practices at the Basic Military Training Centre (BMTC),
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Officer Cadet School (OCS) and Specialist Cadet School (SCS). They have found the SAF safety system to be robust. They have also made useful recommendations to help check our blind spots. For example, they have recommended that as much attention be paid to the psychological well-being of our soldiers as to their physical safety. They will continue to review the safety systems and practices of more units in the coming year. We will constantly and continually ensure that we stay vigilant and make sure that we continue to check our blind spots.
We have also commenced the deployment of Unit Safety Officers in every unit. As ex-Regulars with experience, they will help strengthen our system by imparting their knowledge and experiences to new and junior commanders. They will also complement the \"external pair of eyes\" from the inspectors beyond the unit.
Madam, safety depends as much on robust system as our people's constant vigilance. There are inherent risks in all military operations and training. We can never eliminate all risks but we must certainly reduce everything to a minimum possible. We have to get it right, first time, every time and all the time. A momentary slip of concentration or ill-discipline can have fatal consequences on one's life and one's buddy's life.
There were no training-related fatalities in 2013. This is not a sign that we have arrived. But this is a sign of how much we need to do and how intensely we need to focus our efforts to get things right and stay that way.
In response to Mr Alex Yam's question, the number of training incidents is about the same between 2012 and 2013. The number of near misses reported has increased by about 60%.
May I now invite Dr Maliki to speak on the CSNS efforts and initiatives arising from the \"Recognition and Benefits for NS\" Work Group, and the Total Defence Campaign.
The Minister of State for Defence (Dr Mohamad Maliki Bin Osman): Madam, I thank Mr Ong Teng Koon, Mr Gerald Giam and Mr Pritam Singh for asking what more can MINDEF/SAF do to recognise the contributions of our NSmen. Over the years, we have shown our appreciation to NSmen in different ways, such as the National Service Bonus, the NSman Tax Relief and the National Service Recognition Award (NSRA). Many NSmen have benefited from these schemes. For example, the NSRA has already benefited 210,000 NSmen
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to date.
As part of the Committee to Strengthen National Service (CSNS), I chair the \"Recognition and Benefits for National Service (NS)\" Working Group to address how MINDEF and SAF can better recognise the contributions of our NSmen. We have spoken to many NSmen as well as Singaporeans from all walks of life, and are at our final stages of evaluating the feedback and suggestions, including enhancing our existing recognition schemes like the NSRA, for example, to better recognise our NSmen in the area of healthcare.
When we commemorated the 45th anniversary of NS in 2012, MINDEF also offered SAFRA benefits in the form of vouchers and club memberships. I am pleased to report that more than 80% of NSmen have redeemed some $43 million worth of the SAFRA vouchers, and about 400,000 NSmen have taken up the free membership offered.
With increased membership and as part of our continuing efforts to recognise our NSmen, I am pleased to announce that the construction of a new SAFRA clubhouse in Punggol will commence in the middle of this year. This will add close to 20,000 square metres of additional recreational spaces for our NSmen and their families to enjoy and bond. When completed, NSmen and their families will have convenient access to quality lifestyle facilities at six SAFRA clubs located island-wide. We will also be redeveloping SAFRA Tampines to include new sports and other exciting facilities, and also studying the feasibility of a new SAFRA clubhouse in the northwestern part of Singapore, to expand further the variety of offerings to more than 540,000 NSmen and their families who are SAFRA members today.
Mr Giam has suggested that NSmen who take on extra responsibilities be specially appreciated. We are heartened that Mr Giam shares our sentiments. In recognition of their efforts, these NSmen have been given an additional allowance since 1983. This is reviewed periodically and MINDEF will continue to look into other ways to recognise the contributions of these NSmen.
However, as we explore how MINDEF and SAF can continue to offer more recognition to our NSmen, it is also important for other stakeholders to do their part in showing recognition to our NSmen. Employers, families, communities – there is much that each can do to send a clear message that NS is a critical institution and its success, including showing recognition, is everyone's
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responsibility.
This shared responsibility and the commitment of all Singaporeans to defence were highlighted by Ms Irene Ng and Mr Ong Teng Koon. MINDEF continues to engage all Singaporeans to strengthen their support for defence. The CSNS is only the latest in our series of engagement efforts over the years. We have been engaging ACCORD members, grassroots leaders, employers, trade union leaders, overseas Singaporeans, new citizens and others through various activities, to keep them updated on NS and defence-related issues. For example, we arranged for more than 260 different stakeholders and their family members, and more than 10,000 students, to visit the Singapore Airshow in February 2014. In November 2013, the Navy@Vivo also attracted around 31,000 visitors. Such outreach efforts aim to enable Singaporeans to experience first-hand the capabilities of the SAF, particularly also the competence of our NSFs and NSmen. In collaboration with MOE under the SAF-Schools Partnership Programme, we have also reached out to almost 70,000 students from 30 schools through various activities since 2010. Hopefully, these activities do give the boys a good preview of the SAF before their enlistment, thereby increasing their level of commitment when they get enlisted and, for the girls, we hope to give them a better understanding of what their friends and family members go through during NS.
MINDEF has continuously sought new communication and engagement initiatives to bring the SAF closer to the hearts and minds of Singaporeans. On the social media front, our cyberpioneerTV YouTube channel, and the Army, Navy and Air Force Facebook pages have attracted strong followings. It is heart-warming to read some of the personal reflections on these Facebook pages. Let me share with the House one such post made by LTA(NS) Davis Koh Han Rong, who is currently a University student, on the Army Facebook last year: \"I am grateful for the Army that has transformed me to who I am today... Ever a day the button is pressed, I will be ready to stand forth and protect this place I call home.\"
Many Members will be familiar with PIONEER magazine, which was started in 1969. PIONEER continues to reach out to 180,000 subscribers each month. Over the years, we have refreshed the magazine to make it more relevant and informative. We have also shared its content on our social media channels to extend its reach and help us engage our audience. Members will also be familiar with the BMT web reality series \"Every Singaporean Son\", and may be pleased to know that MediaCorp will be telecasting the series on Channel 5 later this year. Entertainment aside, these efforts create a strong emotive resonance that allows all members of the public to understand the need for defence, the SAF
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and NS.
We are extremely heartened that Singaporeans' commitment to NS and defence remains high. According to the October 2013 survey conducted by NUS' Institute of Policy Studies, more than 98% of respondents agreed that NS is necessary for Singapore's defence. Surveys aside, we have also witnessed different members of the community expressing their support for our NSmen in their own ways, ranging from the 21 retailers who offered exclusive promotions to all SAF servicemen during SAF Day last year, to bloggers, such as Darryl Kang, who saluted online those who have contributed to national defence, and an unnamed female student who gave PTE Yang Hui a thank-you note for his service to the nation whilst on a bus earlier this month. MINDEF will not take this support for granted and we will continue to expand our engagement efforts to further strengthen Singaporeans' commitment to defence.
Madam, we agree with Ms Irene Ng and Mr Ong Teng Koon that Singapore's defence depends on Singaporeans taking personal responsibility and getting involved in our defence. Mr Ong and Mr Alex Yam asked how Total Defence remains relevant and how MINDEF engages the public on Total Defence. This year marks our 30th anniversary of Total Defence. Over the last 30 years, we have seen and have been confronted with a variety of challenges, including the Global Financial Crisis of 2007-2008, the SARS outbreak in 2003 and the potential terrorist threats post-9/11. In all these instances, we witnessed Total Defence in action. Total Defence has stayed relevant because it has adapted to changing circumstances. Because everyone played a part, we were able to overcome all these adversities.
But as we move forward, a new generation of Singaporeans will need to take ownership of Total Defence. For the younger generation, their memories do not stretch to World War II and Konfrontasi, events that many could read about only in textbooks and the Internet. While these events remain vivid in the minds of our Pioneer Generation, it may not be so for our younger generation. Of course, we must not allow these memories to fizzle away. But we must also recognise that our younger generation will have their experiences and memories that will be etched in their own minds. We must ensure that these experiences continue to have relevance to Total Defence, given that the younger generation now exists in an increasingly unpredictable world and that the next crisis could be just around the corner.
How Singaporeans responded to the haze crisis last year gives us clues of how our younger generation views and is capable of managing Total Defence.
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We witnessed how many young Singaporeans stepped forward to help fellow Singaporeans. Some groups set up Facebook pages to encourage Singaporeans to share resources, such as masks and air purifiers, while others distributed masks and herbal tea to the less fortunate.
Similarly, when asked to share their takes on Total Defence via an animation clip for our annual N.E.mation! competition for students, I was impressed by how many of the teams went the extra mile for their projects and also how thoughtful their messages were. Many of the students' stories revolved around helping people in need and initiating actions to strengthen our society. This sense of community is integral to Total Defence today.
The path of reflection and self-discovery taken by these students must be integral to Total Defence as we move forward, as every generation of Singaporeans must also discover for themselves what Total Defence means for them. On MINDEF's part, to strengthen support for Total Defence, we will continue to reach out to the younger generation and other sectors of society through more \"experiential\" and \"reflective\" forms of engagement. Indeed, Total Defence must be a daily experience of every Singaporean.
In this year's Total Defence campaign, which is themed \"30 Years of Total Defence: Because You Played a Part\", we featured stories of everyday Singaporeans who have contributed to Total Defence in their own way. For instance, Mr Lin Chin Heng, who was once a troubled youth, is today a mentor to other troubled teenagers. Or the senior SMRT bus captain, Mr Suppiramaniam, who unfailingly greets all his passengers and remembers the names of his regulars.
These are everyday Singaporeans doing what they consider to be ordinary things, but the outcome for the community is anything but ordinary. Their stories were featured at an interactive Total Defence exhibition at the National Museum last month and were also published in a commemorative book. These stories will also be showcased at some of our public libraries over the next few months. We hope that these ordinary Singaporeans with extraordinary hearts will be inspirations for others to do their part, daily, for Total Defence. Some of these materials are in the bags that you have received.
Let me conclude by sharing a quote from a young Singaporean taken from the reflection wall we put up at the National Museum during the Total Defence exhibition this year, which I found very encouraging. Ms Lee Li Wen, a 21-year-old student wrote, \"Singapore is home to me and I love her dearly. I am glad
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that my parents and the public are taking the time to make meaning of Total Defence Day. Indeed, we protect what we love.\"
This tells us that the younger generation shares the conviction that Total Defence continues to be relevant and important to Singapore. It also gives us confidence to, together, build an even stronger Singapore. Total Defence has evolved and it will continue to evolve. It is up to each generation of Singaporeans to take ownership of Total Defence and infuse it with fresh purpose. But what will not change is Total Defence as a personal and collective commitment to defend our home and our way of life.
The Chairman:\tWe have a bit of time for clarifications. Dr Lim Wee Kiak.
Dr Lim Wee Kiak (Nee Soon): Mdm Chairperson, let me thank the Minister for his earlier reply to our questions. Every day, the peace that Singapore enjoys is a victory for the SAF as well and, for the last 50 years, we have been doing well.
I would like to ask the Minister to paint a picture as to what is happening in the next 50 years, given that Singapore has limited land mass, our population is going to dwindle, in terms of ageing population, our economy has matured, we are having a slower growth now while our immediate neighbours are continuing to grow. They have much bigger land mass than us, their economies will be projected on a growth path, their defence spending will definitely surpass Singapore's in the next few years. What is going to change the equation? How does SAF continue to defend us over the next 50 years to ensure that Singapore is around to celebrate the 100th anniversary?
Dr Ng Eng Hen: Mdm Chair, that is a tall order, but let me try to do it within as few phrases as possible. It is clear that we are better resourced. Thankful that over the last number of decades we have built up our defence capabilities.
The trend, as I have described, a change in power dynamics in the Asia Pacific and the ongoing China's rise, economically and militarily, is a fact. We all have to adjust to it and countries are adjusting. It is also clear that countries within ASEAN, because their economies are doing well, will increase their military spending to modernise their militaries, whether it is Indonesia, Malaysia, Vietnam and so on and so forth. It is a legitimate need and something
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which countries want to do and will do.
I will not ex-ante say that increasing modernisation of militaries is an unstable factor. It is only unstable when there are inadequate platforms to resolve disputes or to conduct dialogues or increase cooperative measures, which is why we spend considerable time in ASEAN Defence Ministers' Meetings and the ADMM-Plus partners to find ways to do it. I mentioned the 18-nation military exercise.
We will continue in these efforts and we will continue to make sure that, for SAF, as I have said, we build the best defence we can with resources available in a sustainable manner over a longer term. With that trajectory, I am fairly confident that we will have the means and the wherewithal to be able to defend Singapore for the next two or three decades.
Ms Irene Ng Phek Hoong (Tampines): Chairman, I have two questions for the Defence Minister. Before that, I would like to extend our deepest condolences to Minister of State, Dr Maliki Osman, on the passing of his father two days ago. I thank him for being here to answer our questions during this difficult time for him.
Questions for the Minister: China's increased defence spending of 12.2% this year comes at a time when it is taking a more assertive stance in territorial disputes in this region. It also comes at a time when the US is cutting back on its defence spending.
Can I ask the Minister for his assessment, first, on the impact of these trends on regional security, given the rising tensions over territorial disputes in this region; and, second, the impact on our defence planning and strategies, especially defence diplomacy on how to build more confidence and trust among emerging powers and established powers during this historic juncture?
Dr Ng Eng Hen: Madam, that is an excellent question because that is exactly how we have to approach our defence plan over one decade and beyond. There is a level of certainty in which we decide based on security requirements that we can plan. But always at the back of your mind, there is a significant degree of uncertainty that you have to be able to adapt your forces to respond.
I mentioned that within the last decade, whether it was 9-11 which no one predicted; whether Afghanistan or piracy or the Humanitarian Assistance and Disaster Relief (HADR) efforts after the Indian Ocean tsunami, Typhoon Haiyan,
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so on and so forth, despite the uncertainties, we are able to configure our units to respond.
Ms Irene Ng asked an important question: how does the trajectory of others impact Singapore's defence planning. We are fairly well positioned because we have had this steady investment in our planning so that we do not have to make any sudden jumps, even if, for example, defence spending increases in our region. That is a significant benefit of having a longer-term horizon. We take the trajectory which I mentioned: keeping up more or less with inflation at this level is the right level for the foreseeable decades.
Obviously, if something happens, another incident like 9-11 where you have increased risk, we have to increase spending, then we have to. Barring those unforeseen and precipitous events, I think we will keep our current defence trajectory.
Ms Sylvia Lim (Aljunied): Madam, I have one clarification for the Second Minister concerning the outsourcing of functions that he responded to earlier. He mentioned that each contractor is given a performance indicator to meet. I note that in the Auditor-General's Report for FY2012, they did note, under MINDEF, one case of lapse when it came to managing this logistics contractor. They stated that the basis for measuring the contractor's performance was not actually agreed while the contract was in force. In other words, there was some disagreement between MINDEF and the contractor about what needed to be done and how it was to be measured. I would like to ask the Minister whether the Ministry has actually done any review on whether there are any other such cases and whether they are tightening up on this aspect.
Mr Chan Chun Sing: Mdm Chair, let me respond to Ms Sylvia Lim's question. Yes, we have taken account of the Auditor-General's comment. The larger point that the Member made is an important one, which is, that whatever that can be written in the letter of the law must also be interpreted according to the spirit that we want it to be. Given the many contracts, there will be cases like this but we want to keep it to the minimum, if not to eliminate this altogether.
Where there are contestations about interpretation of what it is, we will work through with the contractors, first and foremost, to make sure that they understand what exactly we need them to achieve in terms of performance indicators. Only as a last resort will we go for the legal recourse because we want to develop a long-term relationship with the respective contractors. MINDEF regularly and routinely scrutinises all our contracts with the existing
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contractors and this will give us important lessons to plan for future contracts whenever we have new contracts with other contractors.
Mr Alex Yam: Mdm Chair, again, our condolences to Minister of State Dr Maliki in this time of bereavement. Two questions for the Second Minister. One is in response to my question on the safety regime. The Minister stated that there was a 60% increase in near misses. Just to clarify whether this was because we now have a stricter regime and not because there are more incidences of being careless during training.
The second is with regard to the SAF Volunteer Corps and other CSNS proposals. Would the Second Minister be able to share with us when more specific details will be made available?
Mr Chan Chun Sing: Mdm Chairman, let me respond to the first question. Let me clarify that the increase is due to the increased command emphasis to have more incidents reported. So, there is a 60% increase in the reporting in the first half of last year, compared to the year before. But the number of training incidents, non-fatal training incidents, has remained the same between 2012 and 2013, which is between 67 and 68 respectively.
We were fortunate not to have any training fatality last year, but, as I mentioned in my speech, this requires tremendous effort. This requires us to be constantly on our guard and we hope to keep it that way. Having said that, we recognise that all military operations will have inherent risks. Our job, and the job of all commanders, is to make sure that we minimise the risk to the lowest possible, even though we cannot eliminate them altogether.
On the second question about the SAF Volunteer Corps, we will be providing more details on this in the next two months when the CSNS report is submitted to MINDEF.
The Chairman: If there are no other further clarifications, Dr Lim, do you want to withdraw your amendment?
Dr Lim Wee Kiak: Mdm Chairperson, let me thank the Minister, the Second Minister as well as the Minister of State for answering all our questions. Certainly, we are pleased and happy to note that the long-term investment in both hardware as well as heartware in the SAF has ensured that all of us can sleep well at night as well as enjoy more years of peace. May I beg leave to
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withdraw my amendment?
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $12,137,000,000 for Head J ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $429,000,000 for Head J ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head P (Ministry of Home Affairs)","subTitle":null,"sectionType":"OS","content":"Mr Hri Kumar Nair (Bishan-Toa Payoh): Mdm Chairperson, I beg to move, \"That the total sum to be allocated for Head P of the Estimates be reduced by $100\".
MHA does not usually get into the spotlight unless something unpleasant happens. We are surprised and shocked by serious crimes and high profile incidents because they are and remain the exception in Singapore, and we continue to enjoy living in one of the safest countries in the world. That is in no small measure due to the efforts of the staff, officers and leaders in MHA.
But it is clear that the challenges to maintain safety and security are growing. Last year, we witnessed a number of incidents which have challenged assumptions on how secure and ready we really are when a crisis hits us. Just recently, the Little India riot and the border-security breach at Woodlands have led us to review our readiness and protocols and, indeed, much soul searching.
No one expects, or should expect, a perfect system. The best equipment, systems and protocols in the world cannot anticipate all challenges our officers will face on the ground. Often times, these gaps must be bridged through good judgement and exercise of discretion, and these usually come with training, time and experience. I will not comment on the ongoing Committee of Inquiry (COI) in relation to the riot, but Deputy Prime Minister's answers to this House on the riots and the breach of border security do raise uncomfortable questions on whether our officers will respond adequately to emergencies and unexpected situations.
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I would, therefore, like to ask the Deputy Prime Minister on his perspective on what the Ministry's key challenges are in the current climate and how his Ministry intends to tackle those challenges. And underpinning those issues, whether the Deputy Prime Minister believes he has, or is able to recruit and train, sufficient personnel with the sufficient experience and ability to meet those challenges.
I would like to make three points on this.
First, are we prepared to deal with future riots and public order disturbances? The Little India incident involved a crowd of about 400 migrant workers, but not all were actively involved. It was eventually quelled by two Police Tactical Troops from the Special Operations Command (SOC). We know from the Deputy Prime Minister's statement in Parliament that the first SOC troop arrived about an hour after the incident occurred. As Ms Denise Phua so eloquently explained during the debate on the Public Order Bill, things could have turned far, far worse in that time. Over and above the questions the COI will answer, there are a number of other questions we need to ask. Do we have enough trained Police to handle a riot on a larger scale?
I understand that we presently have eight SOC troops, each comprising 20-30 men – therefore, at most, we have 240 SOC officers. Larger foreign dormitories may house thousands of men. Would the SOC be able to quell a riot breaking out in such a dormitory? And if we have two incidents at two different dormitories at the same time, what will happen? Coordinated riots are not unheard of. It has been revealed that the SOC has grown smaller over the years – from a peak of 12 troops to the present eight. In addition, they now perform other duties, such as counter-terrorism operations. Will we therefore be able to deal with such threats?
My second point has to do with the deployment of Auxiliary Police Officers. The SPF relies on the Auxiliary Police in several capacities, such as to conduct patrols and to beef up enforcement on the roads. In fact, Auxiliary Police were involved in patrolling Little India before the riot and were also present at the incident. Is this high degree of dependence on Auxiliary Police desirable?
Auxiliary Police are not substitutes for Police Officers. They have limited enforcement powers. The quality of training received by them may also be different. Therefore, I would like to ask the Deputy Prime Minister to what extent do we depend on the Auxiliary Police force to supplement our Police force and
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what does he see as a desirable balance?
Thirdly, much more is expected today of our Police and law enforcement officers. Singaporeans hope to see a stronger Police presence, not just in areas where foreign migrants congregate, but everywhere, particularly where we live. I have lost count of the number of times my residents have requested more Police patrols, even in areas where statistics show low crime rates.
We all want to feel safe in and around our homes. And in a way, the Ministry is promising that – with its Community Policing initiatives – more boots on the ground and more bottoms on bicycle seats. We have also recently amended the Prisons Act to introduce the Mandatory Aftercare Scheme where ex-offenders will be provided with counselling, case management and supervision to support their reintegration into society. This is an excellent approach, but will require the involvement of more resources, more counsellors and more officers. Can the Ministry realistically deliver or continue to deliver on these programmes? Or do we need to temper our expectations? If the Home Team is not adequately staffed, they will be hard-pressed to deliver.
I understand that the Ministry has stepped up recruitment efforts over the past few years, but is this going to be enough, particularly in our tight labour market? A comparison with other cities shows how lean our forces already are. We have 239 Police Officers per 100,000 people; Hong Kong has 393 police officers per 100,000 people; New York has 430.
Even if we are able to recruit sufficient numbers, how does the Ministry intend to keep them in the force to ensure that there is sufficient experience both at the management level and, more importantly, on the ground? A cool, experienced head on the ground may prove more effective than an entire troop of raw officers.
In this regard, I have one suggestion. The Ministry should find an enhanced role for retired Police Officers. I had the pleasure of recently lunching with the Management Committee of the Singapore Police Retirees' Association. They may have thinning, greying hair and may be less fit than they once were. But what struck me most was their passion for law enforcement and their sense of duty, and most of all, a powerful call deep within them to help Singapore remain a special place. With their experience and instincts, their older and wiser heads can be a tremendous resource. They can be tapped on to train younger officers,
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reviewing investigation reports and other work which can accommodate their physical abilities. They told me they are ready, willing and able to serve again, if called. What a shining example they would be in our efforts to get more older Singaporeans and retirees active and involved.
Madam, do I continue with my second cut, please?
The Chairman: Yes, please.
Mr Hri Kumar Nair: Madam, the community plays a critical role in our efforts to keep Singapore safe and secure. Recognising this, the Ministry has made structural changes to promote community engagement. In 2012, following the launch of the Community Policing System, our Neighbourhood Police Centres were revamped to enhance their crime fighting and community liaison capabilities. More foot and bicycle patrols were introduced to allow Policemen to become more familiar with residents and neighbourhoods, thereby enhancing Police engagement with the community.
These structural developments were complemented by a range of schemes. The Singapore Police Force (SPF) runs several volunteer schemes, including the Neighbourhood Watch Zone, which cultivates mutual assistance among residents in the community to help to prevent and detect crime. We have the Crime Prevention Ambassador project and the Volunteer Special Constabulary, which recruits, trains and supervises volunteers to work with the SPF in helping to enforce law and order in Singapore. We also have programmes like the Community Safety and Security Programme which provide an additional platform for residents and grassroots to work with the Home Team.
Madam, there is no doubt that these schemes are important, but there is scope for further engagement. A study published in 2012 from Ottawa, Canada, confirms that crime prevention and law enforcement are more effective where the community takes collective responsibility for them. According to the study, the reported incidents of crimes against persons or properties in three communities that adopted community-based crime prevention techniques were tracked and the results were significant. From 2006 to 2011, the rate of reported incidents in each of the three communities fell far more than the overall city average. The overall city average fell 15% and the three communities fell between 20% and 27%.
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What was critical to each community's success was the diverse and holistic range of initiatives launched. Police conducted outreach sessions, resident-led walkabouts were organised to identify and report safety issues, such as signs of drug peddling and prostitution, and community forums were organised to bring residents together to discuss security and crime-prevention strategies. What is clear from the study is that crime prevention is not about enforcement or enforcement-type activities alone.
Therefore, I would like to ask the Minister what strategies MHA will adopt to continue engaging and building strong relationships with its community partners, and to continue supporting the Home Team's work in keeping Singapore safe.
Mr Vikram Nair (Sembawang): Mdm Chair, in September 2013, it was reported that a young Singaporean was the fifth to be self-radicalised and was detained for two years under the Internal Security Act (ISA) for trying to join an insurgency in Thailand. According to reports, he had been influenced by what he read online to join this insurgency. I understand that, in this case, he was detained under the ISA after he had been handed over by the Thai authorities following his arrest and conviction in Thailand for immigration offences because he entered Thailand illegally.
The threat of self-radicalisation is one of particular concern because it seems that the material on the Internet that influenced this individual is readily available and continues to be readily available. In this regard, is MHA able to provide an update on the regional terrorist threat and, in particular, on any measures it plans to take to deal with the threat of self-radicalisation in Singapore?
Mr Edwin Tong Chun Fai (Moulmein-Kallang): Mdm Chairperson, the crime rate in 2013 fell to 549 cases per 100,000 population and it was the lowest in 30 years. It also fell 4.3% compared to the year before in 2012. But, Madam, these are statistics and numbers. These are not numbers that we can afford to be complacent about and we need somewhat to look into the details as well.
The decreases were in relation to crimes against persons, housebreaking, theft and other miscellaneous crimes like vandalism, trespassing and disorderly behaviour. But what is troubling and remains troubling is that there were
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increases in violent and serious property crimes as well as commercial crimes, such as cheating and other related offences. Anecdotally, we have seen how the Kovan murders, the Little India riot and other such fairly high profile newsworthy incidents have dominated the headlines in the course of 2013. And it is these concerns which I would like to focus on.
Madam, the Home Team is responsible for various aspects of security in Singapore and it is something that we can never take for granted. There are other issues which remain pertinent to security in Singapore today and will continue to evolve. It is a threat that will continue to evolve over time and I would like to highlight a few.
The first, cyber crimes. The usage of the Internet has grown. It has proliferated to an extent that we have an Internet penetration rate of 160% of our population having broadband access; a mobile penetration rate of 150%. Access to wireless, location-based cloud computing and other such technologies has become pervasive in daily life. That itself has led to an increased Internet usage and penetration, with a corresponding increase in the number and type of cyber crimes.
Take, for example, cheating using e-commerce. That has been the main contributor to the increase in commercial crimes. It has seen a rise from 238 cases in 2012 to 509 cases in 2013, almost more than double the number. Further, there have also been significant increases in multiple payment online purchase scams involving culprits who posed as sellers of various products and advertising them on the Internet and failing to deliver at all.
The number of cases demonstrates that the Internet-savvy audience, typically the young, the vulnerable, had been targeted and we have to pay particular attention to how these crimes continue to evolve on the Internet. We have also seen in the last year how various high-profile prominent websites had been hacked into. This hacking into the servers and websites of entities, which are otherwise considered to be the most secure in Singapore if not the world, in a matter of days if not weeks, almost with impunity, makes for interesting news. But they highlight just how much of a threat this can be and how much this will cripple the day-to-day life which relies so much on technology.
Second, on the areas of drug enforcement, we have seen how in recent times the number of drug-related arrests has gone up. Just in the month of February 2014 alone, and based on the CNB website, we have seen that in that 28-day period, two-and-a-half kilograms of heroin and more than two kilograms
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of cannabis were seized, with a street value worth more than hundreds of thousands of dollars. The number of drug abusers arrested has gone up. The number of repeat abusers has gone up. The number of new abusers has gone up.
Third, counter-terrorism measures, which Mr Vikram Nair has outlined earlier, I would simply say that the recent apprehension of Masyhadi tells us that extremist terrorism remains a real and potent threat. The underlying structures, which have training camps supporting terrorism, remain in place. Self-radicalisation remains a growing phenomenon and we cannot afford to assume that no terrorist threats will materialise. To deter terrorism in Singapore, we need strong operational capabilities with a variety of different skill sets just to be commensurate with the ever-changing methods used by these small cells to evade detection.
Fourth, Madam, on civil defence readiness, a seemingly simple and straightforward issue, but one must look at the underlying numbers as well. We have seen an increase in the emergency ambulance services by 5.3% year to year. But the demand from the elderly alone, which comprises 10.5% of our population, has accounted for 36% of those requests or calls for emergency assistance. That illustrates that there already is and will continue to be, in light of our ageing population, an increased demand on the resources of the civil defence operators.
Finally, on immigration, we have seen in 2013, 203 million travellers cleared for entry into Singapore, a slight increase of about 3.6% compared to 2012. The ICA faces the constant challenge of accommodating these increasing traveller volumes while at the same time having to clear them efficiently and ensure that security is not compromised.
Madam, I raise these points because all of them require a few challenges to be met by the Home Team: one, the increase in resourcing which Mr Hri Kumar has touched on; and two, the increase in the amount of training to deal with these ever-changing and evolving threats through different means will continue to be a serious challenge to the Home Team.
In that context, I would ask the Deputy Prime Minister what MHA is doing to ensure that the Home Team is able to rise to meet these operational demands as well as to remain constantly vigilant and ready to deal with these threats on the horizon which one may not be able to anticipate today.
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Mr Arthur Fong (West Coast): Mdm Chair, Singapore is an attractive city state that many have come to work, play and live. Our resident population has increased over the years. In this respect, our security forces, particularly the SPF, needs to keep up. Sophisticated criminals are quick to adapt to new technology, demographic changes and increases in resident population. The Home Team needs to and will have to prepare, equip and deal with demands that such changes bring.
In the 1980s, the Home Team was quick to realise that efficiency and speedy response could not be just placed with the divisional Police stations. With larger housing estates, they required a relook at the response and policing system. That led to the NPP system that was decentralised to better serve an increasingly urban Singapore.
The NPC of today and the success of the Community Policing system in an even more urbanised setting is testimony to the foresight of that strategy. Even as we actively promote community involvement in crime prevention, we need more resources to address crime and emergency incidents.
While the Little India incident had alluded to manpower issues, I am even more concerned that multiple incidents could have arisen from that. The ripple effect from, say, multiple incidents of terrorist action will put the Home Team's resources and deployment into question.
Are we preparing ourselves in enlarging our Force size to cope with increasingly complex security situations that can befall upon us? Can our officers cope with the air and land checkpoint loads that Mr Tong alluded to?
I understand that with increased expectations from a more affluent and educated public, hiring of officers to meet such expectations will be more difficult. Our education system has made our graduating cohorts attractive for the private sector. It would have to be a compelling, appealing and rewarding career for men and women to join up.
Our current Force size is about 10,000, including civilians in service. Even if we harness technology as a multiplier to the Home Team in its work, we still need boots on the ground. As mentioned, will our young men and women be attracted to this noble profession and spend extended time on the beat?
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We can increase our Force size through enlarging the pool of reservists by having a larger intake of NS Policemen. Through a few cohorts, we can build up this ballast. Therefore, training resources and facilities must be prepared and future budget allocated.
I urge the Minister to review policies as well as training and doctrines relating to security coverage, crowd control, incident response and rules of engagement. Organisation structures that directly affect frontline operating systems and response time could similarly be reviewed so that manpower gaps, resource re-allocation and hybrid solutions can be considered.
Ms Sylvia Lim (Aljunied): In similar vein, Madam, I am concerned about many Home Team uniformed services turning to outsourcing as a response to increasing demand for services and manpower shortages. For example, in October 2013, the SCDF added only four more emergency ambulances to increase its fleet to 50 vehicles, but doubled the number of private ambulances to 20. Today, the number of Auxiliary Police Officers stands at 6,000 officers, compared with over 8,000 regular officers in the Singapore Police Force. At the Woodlands checkpoint, Auxiliary Police Officers make up 20% of officers. Recently, the Prisons Act was amended to expand the role of Auxiliary Police Officers to allow them to conduct inmate escort and patrols within prison premises.
Will the trend of outsourcing of Police, security and emergency functions to private operators increase further? If so, where is the line to be drawn before we see the quality of functions compromised and cost-effectiveness eroded? Should the issues be dealt with not by outsourcing, but instead by allocating more resources and support for recruitment and retention to the Home Team? And instead of outsourcing with its limits, should we not focus on \"best-sourcing\" instead?
I would like to point out three problems. First, Auxiliary Police Officers do not have the same level of training as regular officers. Regular officers go through a six-month basic training course at the Home Team Academy, while auxiliary officers attend a much shorter in-house training course offered by Aetos or Certis-Cisco. Police Officers also attend continuous training to keep their skill up to date with societal and criminological developments. The esprit de corps of belonging to
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the Home Team also instils a greater sense of purpose, pride and discipline.
Second, best-sourcing is about choosing a provider, be it a public agency or a private sector provider, who could deliver the services most efficiently and effectively. Here we have a paradox. To maintain standards, private operators have to comply with equivalent deliverables and ensure their staff are just as competent in those functions. If the public officers also have to conduct constant auditing and supervision to ensure the outsourced entity is up to mark, as in the case of emergency ambulances, would it not be more cost-effective to increase the regular services?
Third, best-sourcing is targeted at non-strategic functions of public agencies, so as not to compromise public health and safety. But what are considered non-strategic security functions to be outsourced to auxiliary officers? As the recent breach at Woodlands Checkpoint suggests, the secondary security check by the Auxiliary Police Officer is very important and has implications on public safety.
With 300,000 people and 130,000 vehicles passing Woodlands checkpoint each day, co-ordination between ICA, SPF and Auxiliary Police Officers is a huge challenge. Likewise, prison inmate escort within the prisons is not merely a security function but requires proper training to ensure the prisoner's rehabilitation is not compromised. Furthermore, injuries or death of an inmate resulting from improper handling can be disastrous for the services. In today's complex policing environment, every Police Officer requires strong situational awareness and adaptive leadership skills, and foresight in exercising discretion.
Outsourcing clearly has its limits. Should the focus instead be on Home Team manpower recruitment and retention, and ensuring they have the best resources on hand to protect our Home?
The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How): Madam, Singapore's total population has grown over the years. At the same time, the mix of the population has also become more cosmopolitan. This growth in population density and complexity increases the likelihood that friction would occur as groups and people, so to speak, rub each other the wrong way, whether intentionally or otherwise.
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To deal with this challenge, it is right that measures be put in place to emphasise and catalyse continued racial and religious harmony, as well as increase mutual understanding and integration between locals and migrant communities.
While we pursue these proactive and preventive steps, we must at the same time plan for the worst, which is the scenario where larger scale public disturbances occur. The recent Little India riot is an example of that. However, I am not referring specifically to that particular riot as the Commission of Inquiry (COI) is ongoing.
What I am concerned about is whether the Police riot control function, in terms of sheer manpower, as well as equipment and access planning, given the more congested roads, for example, has kept pace with population urbanisation trends over the years.
Sometimes, when things appear to be calm, emergency resources may be less emphasised. Some may think of such \"standby\" resources as somewhat of a dead weight. However, when emergencies occur, we may then find the resources insufficient or quickly over-stretched and not sustainable. A proper balance has to be struck between the two, taking into account the assessments of threat and the likelihood of multiple concurrent needs.
Madam, I want to help make sure that our troops on the ground get the support and resources they need to do a good job. How will MHA ensure that there are enough riot troops in headcount terms, SOC and divisional resources together, to keep pace with population changes, so that deployment would not be stretched too thin and the security forces are able to dominate the ground quickly when called upon?
Mr Low Thia Khiang (Aljunied): Mdm Chair, biometric information is increasingly being used for security purposes. Recently, the National Environment Agency is using face scans to clock in hawkers to prevent illegal subletting and a pre-school is using the same technology to control door access for parents and guardians to drop off and pick up their children.
With the proliferation of biometric information collection and usage in society, the theft of it becomes easier and likelier. Furthermore, biometric information technology is undergoing mass commercialisation, as smart
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phones are now capable of thumbprint and face recognition.
Many organisations are also outsourcing their information technology and security systems. It was previously pointed out in this House that the Government's outsourced systems experienced many instances of unauthorised access and other security vulnerabilities.
Biometric information is very important for our border security. How are the Ministry of Home Affairs and its agencies, particularly the Immigration and Checkpoints Authority, prepared for security breaches and identity theft? Are there contingency plans to maintain the same level of security and functionality in the event of system glitch or breakdown? Is there a need to update the Personal Data Protection Act to tackle the specific problems caused by biometric information and to regulate its collection and usage?
Mr Baey Yam Keng (Tampines): Mdm Chair, presently, Singapore Identity Cards (IC) are issued at the ages of 15 and 30. They are only replaced if they are lost, defaced or damaged, or if the holders wish to change their particulars or photos. In contrast, the validity of our passports is only for five years. For security reasons, ICs, like passports, should be updated more frequently.
I would like to suggest that we require IC replacements every 20 years, that is, additionally at 50 and 70 years old. The prevailing opinion is that most adult facial features do not change significantly. Hence, there is no legal requirement to update the photos in our ICs. However, it is not possible that a person looks the same at ages 30 and 80, which is the average age a Singaporean man is expected to live to today, or five years longer for ladies. For a span of 50 to 55 years on average, there will be visible changes due to ageing.
Facial identification is an important component of security checks. Authorities would have the necessary equipment to check the thumbprint, but most others can only rely on the photo to verify that the person using the IC is the person in the photo, whether to start a new mobile subscription or borrow money. We have heard of cases of people losing their ICs, and even after they have reported the loss, having their ICs being used illegally and becoming victims of loanshark harassment or being laden with funny bills. Who am I to challenge someone who insists that he is the person in the IC photo, just that
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he has put on weight, lost weight, or the photo was taken on a bad hair day?
As plastic surgery becomes even more common, we can also expect facial features to change in more people. Hence, it is important that citizens and PRs update ICA on these changes. These measures will ensure that we do not reduce the effectiveness of facial identification.
Security technologies develop rapidly. Today, when I change my IC at 30 years old, I have to rely on the same card and technology for at least 40-50 years. There would not be many other personal belongings which are around after all these years, and I am not referring to items of sentimental value.
Another compelling reason to replace the IC is that while it is made of relatively good material, it is subjected to wear and tear. Even our credit cards are replaced every few years. People in certain occupations also require frequent presentation of ICs. For example, those in the delivery and despatch line need to exchange their ICs for visitor passes at camps, certain commercial buildings, and condominiums. They have to take out their ICs a few times every day, and these are also the people who do not have strong financial strength. If their ICs are damaged, they will have difficulties affording the replacement fee.
I have met one man whose tattered IC is kept in one piece by scotch tape. He told me he could afford the replacement fee, but feels that since it is compulsory for Singaporeans to carry our ICs, it is reasonable for him to expect the Government to replace it for free after every few decades of wear and tear. Hence, I urge the Ministry to review the current system of IC renewal.
Assoc Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Chair, there is the human tendency to value effort almost independent of outcome. Effort alone, even when apparent to all, is not enough. And so, the sweet spot for the Home Team is one where it is not only working hard but also getting things right and well.
These are challenging times for the Home Team. Convictions of senior Home Team officers for a variety of criminal offences in the last few years, the lack of coordination between Home Team agencies in the Woodlands Checkpoint security breach and the seemingly inadequate response in the Little India riot all conspire to undermine the image and standing of the Home Team.
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This is unfortunate.
It is no surprise if the public has legitimate concerns of the Home Team's integrity, competence, professionalism, coordination, operational readiness and the ability to adapt to the rapidly changing operational realities.
To be sure, we must not exaggerate the challenges and issues but every lapse in performance dents the public confidence in the Home Team. Major lapses are body blows, detrimentally affecting the morale of the dedicated men and women of the Home Team.
The harsh reality is that people mostly pay attention when the Home Team gets things wrong or does not measure up. The fact that the Home Team is performing well matters little as the public perception is more often than not the prism through which trust in and confidence of the Home Team is measured by.
There is no doubt that corrective actions are always taken to tackle the lapses, including internal disciplinary sanctions and criminal prosecutions. However, if there are systemic issues and problems resulting in sub-par performance, is it fair to punish the officers concerned, especially the rank and file men and women? Yes, they may not have measured up but there may well be systemic factors beyond their control.
It is easy to dissect or micro-analyse a Home Team officer's conduct and judgement after the event. But we should bear in mind that how a reasonable officer exercises his discretion and powers in any given situation is very much a function of his or her training, the applicable standard operating procedures and operational doctrines. If they did not equip the officer well to do the job well, then the officer should not be solely culpable.
As such, I would appreciate it if the Minister could provide details on the ongoing effort to renew confidence and trust of the public in the Home Team, and what efforts are being taken to maintain and improve the morale within the Home Team itself.
Mr Edwin Tong Chun Fai: Like Policemen wearing shorts, community policing is actually not new. It has been around for about 30 years, since the early 1980s and it was modelled after the Koban system in Japan. We launched
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our first neighbourhood Police post in 1983. It was these NPPs which brought the Police closer to the ground, closer to the community and making them more effective as patrols were made on foot, on bicycle and the familiarity of the Policemen and community was seen as an advantage. Over the years, the system has been reviewed to ensure that it is kept up to date and in tandem with the operating environment. In 1997, the NPP system was redesigned to the Neighbourhood Police Centre (NPC) system. The NPCs were empowered with more resources and capabilities for community policing.
In May 2012, the transition of the NPC system to the Community Policing System (COPS) was made and this was in response to the changing needs of our population. Under this system, we strengthened localised crime fighting capabilities with the creation of crime strike force in each NPC. The officers in the crime strike force are familiar with local terrain, and therefore more effective and responsive than tackling crime.
A community policing unit was also set up to deepen our community engagement and Police Officers now interact more with residents in these local communities. Today, I think COPS has about 20 over presence in the 30-odd NPCs that we have. It has been about two-and-a-half years or so since the programme started. In that respect, I would like the Deputy Prime Minister to comment on whether the results have been encouraging, what improvements, if any, should be made to the system and the extent to which this would be continued to be rolled out to the rest of the NPCs.
The other benefit of having the NPCs close to the ground is something which I find quite laudable, which is the use of non-traditional means to also engage the public. I believe some NPCs have their own Facebook pages, and this in turn has assisted with the apprehension of suspected criminals. Some advertisements have been put up on Facebook. The community has also responded with various suggestions and tips. Using that, I think the Police has been able to better apprehend the criminals.
Finally, the importance of the community as the key partner of the Police can only grow with time, given the challenges of the increasing changing environment for the Police and crimes being more complex. The trust, confidence and support of the community are critical for the Police to be successful in community policing. To stay effective, Police forces around the world will need to continually evolve in the way they serve and engage the
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communities and to keep up with the operating landscape. It is in that context that I invite the Deputy Prime Minister to comment on these issues.
Mr Arthur Fong (West Coast): Mdm Chair, our crime rate is low by international standards. Community policing is a principal policing strategy that has shown success since the NPPs were set up in the 1980s, and then the revamp of the same towards the NPCs in the 1990s.
My residents in Clementi Division can testify to the effectiveness as well as the significant impact on the ground of community policing introduced two years ago as a pilot, through the various initiatives such as the Community Safety and Security Programmes and the very successful Citizens on Patrol. Our resident volunteers and the Police work together to detect, report, suppress and prevent crime in the neighbourhood. Through this experience, our residents learn that crime prevention is a community responsibility, as much as it is the Police's enforcement of law and order. It cannot be just a Police issue. Residents are involved in community policing.
Safety and security can be enhanced if the community can be persuaded to do more for itself. Public education about the kind of crime, criminal behaviour and effect of different types of crimes in the community can further bring citizens to the growing force of community crime fighters. I congratulate the SPF for being proactive and incorporating community policing into its crime fighting strategy. At the same time, this ownership of the community and not allowing criminals to roam free encourages community integration and mutual trust.
It is my belief that the Police Force is stretched and community policing will help our Home Team officers to concentrate on problem solving and investigation, rather than just incident response at the outset. Community policing cannot be successful if the partnership between the Police and the community is not established and strong. As a result of the information provided by the citizen cops, the Police will able to apprehend UML harassment activities. This public-assisted arrest has contributed to the overall positive effects on residents over the safety and security of the neighbourhood. What other initiatives or support for community policing can we expect? Can the Minister update the House if the goal to roll out community policing at the 35 NPCs has been achieved? What is the progress? Are there any intentions to
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scale this up further and to include other partnerships?
Ms Tin Pei Ling (Marine Parade): Madam, ensuring law and order is essential and enabling in an environment in which we can be freed up to focus on our lives, work, families and aspirations. Against the backdrop of rising expectations and tight labour force, the Police has actively leveraged technology to attain efficiency of scale, accuracy and effectiveness in law enforcement.
In public housing estates and even on the roads, the Police has deployed cameras to deter offences and fight crimes. Therefore, I would like to ask how effective have the cameras been in fighting crime? Are there any other initiatives or examples that the Ministry can share to illustrate how the Police is leveraging technology to support its policing efforts?
Mr Pritam Singh (Aljunied): As of the end of 2013, a total of about 1,000 cameras would have been installed by the Police at HDB void decks and multi-storey carparks under the larger community policing system initiative. There is a public expectation that these cameras would go a long way to address the scourge of loansharks who harass HDB residents even if these residents are not involved in any illegal moneylending. At one block in Bedok Reservoir, where such cameras have already been installed, a resident not involved in any illegal moneylending activity remarked to me that he had to endure harassment to his family by loansharks who masqueraded as salesmen when he was out at work, causing him much consternation.
Have the Police determined whether loansharks have changed tactics in light of installation of such cameras? In tandem, I would like to ask for an update of this specific programme under the Community Policing System with cameras already installed in a number of precincts in Singapore, and its success in addressing the scourge of loansharks. Separately, would the Ministry consider allowing Town Councils to access video footage on an ad hoc basis from these cameras to tackle unauthorised dumping, for example, and other anti-social activities?
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I turn to my second cut. In view of the heavy use of Auxiliary Police Officers for various policing and patrolling responsibilities in Singapore, from foreign worker management in places where they gather to the staging of international events, I seek to enquire what sort of formal training these Auxiliary Police Officers undergo to manage and communicate with the culturally diverse public they face.
As Singapore diversity becomes more apparent with Filipinos, mainland Chinese and Indian families, and yet other races and transient population coming to Singapore for work and long-term residence, have the relevant agencies under the Ministry reviewed their training programmes to take into account the demographics changes in our society? Is there a formal training package for mainstream Police Officers for our Auxiliary Police Officers to tap on? Would the Ministry consider setting up a cultural advisory unit or institutionalising similar training to work with migrant groups in particular, as they tend to congregate in large groups on their off days, so as to build up trust and understanding, as seen in other immigrant communities in Commonwealth countries, such as Canada and Australia?
Separately, have there been any operational examples where there has been a lack of Auxiliary Police Officers with the appropriate language training to communicate their intentions or instructions to the public, and how are these challenges overcome? Finally, for our Auxiliary Police Officer force, how many are Singaporeans, PRs and foreigners respectively?
Ms Denise Phua Lay Peng (Moulmein-Kallang): Madam, when vulnerable persons are detained and interviewed by the Police, they often do not understand the questions, the significance and the intent of the questions asked, nor the significance of their replies due to their mental state or capacity. These persons are not limited to only children or those with intellectual disabilities. They include those with other learning difficulties like Attention Deficit Hyperactivity Disorder (ADHD) and high-functioning ones with Asperger Syndrome and others with mental or personality issues.
The Appropriate Adult (AA) Scheme is a common feature in progressive Police and criminal justice systems. For instance, in the United Kingdom, the role of an AA was created alongside the Police and Criminal Evidence Act (PACE) 1984. The AA supports, advises and assists the vulnerable person especially
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during Police interviews.
In Singapore, a workgroup comprising members from the Law Society, the Attorney-General's Chambers, Bedok Police Station and several others started a pilot programme. They convinced a group of volunteers to sign up to support AAs. The feedback is overwhelmingly positive. I seek the approval of the official adoption and funding of an Appropriate Adult Scheme by the Ministry and to include (i) all key disabilities, and (ii) across all Police Divisions.
The Chairman: Ms Sylvia Lim, you have two cuts. Take them together, please.
Ms Sylvia Lim (Aljunied): First, sexual crime investigation. According to the 2013 report on the International Violence against Women survey on Singapore, only 17% of women who experienced sexual violence reported the matter to the Police. Victims were found more likely to report if they had been injured, felt that their life was in danger, if they perceived the incident was serious, or if they regarded it as a crime. It does appear that women who do go to the Police, go with some expectations – for protection or seeking justice. Yet, the Police data raises questions about whether these victims' concerns are met.
According to the answer to my Parliamentary Question on 17 February this year, there are about 180 reported cases of serious sexual crimes handled by the Criminal Investigation Department each year for the last three years. Of these, only close to 30 cases are charged in Court each year, or about 17% of the reported cases. This means that about 83% of reported cases are not charged in Court. These cases were instead dealt with by a warning or no further action taken against the accused. Besides the low prosecution rate, the investigation procedures also seem long and cumbersome. The same answer revealed that, on average, it took 12 months to conclude investigations. Since this was an average, some cases would have taken much longer.
Beside having to undergo medical examinations and polygraph tests during investigations, victims are left wondering about their status of their cases for months. Given the above, I seek the following answers from the Ministry. First, why is the prosecution rate only at 17%? Two, what are the main reasons for issuing a warning in lieu of prosecution? Three, where lies the bottleneck for investigation to take an average of 12 months? And four, have Police sought feedback from social workers and women groups on gaps in
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Police's service and tried to address them?
Next, road traffic investigations. At last year's MHA COS, Minister Iswaran talked about the initiative called \"Safer Roads Singapore\". He mentioned that Traffic Police would be employing Auxiliary Police to complement its presence on the roads for enforcement duties. I would like to obtain some clarity as to the exact role of the Auxiliary Police and the approach of Traffic Police in accidents resulting in injuries.
Recently, I came across two incidents of injured motorcyclists along the Pan-Island Expressway. In the first case, the injured motorcyclist was possibly the victim of a hit-and-run. Several motorists, including myself, stopped to render assistance and call for help. A while later, a SCDF ambulance arrived followed by one Auxiliary Police Officer. Some of us potential witnesses gave our contact details to both the paramedic and the Auxiliary Police Officers who recorded them on pieces of paper. The victim was conveyed to the hospital. The Auxiliary Police Officers told us that the Traffic Police might contact us, but I receive no follow-up communication from Traffic Police at all. I am not sure whether this was because the information was not conveyed to Traffic Police, or because Traffic Police does not investigate every injury case.
In the second incident, I observed an Auxiliary Police Officer attending to several injured motorcyclists after a collision. He appeared to be finding out what had happened, and what needed to be done, but the extent of his role was not clear. Do the Auxiliary Police Officers have a role in traffic investigations now? What safeguards do Traffic Police adopt to ensure they make proper assessments of injury cases?
Dr Janil Puthucheary (Pasir Ris-Punggol): Mdm Chair, the Safe Road Singapore Action Plan was announced at last year's Committee of Supply debate with the pillars of education engagement and enforcement. Could MHA provide an update on the implementation of this effort and measures that perhaps have brought about some of the improvements in road safety? Over the past years, the statistics from the Traffic Police show that the total number of accidents with fatalities or injuries has decreased by about 8%.
One area of concern is heavy vehicles. More people were killed in accidents involving heavy vehicles last year. Traffic violations by such vehicles have also increased. I would like to ask what measures would be taken by the Traffic
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Police to address this matter, apart from stepping up enforcement against heavy vehicles who flout traffic laws.
Madam, every vehicle on the road is a potential source of danger to other road users, in particular, heavy vehicles, because of the combination of their size and speed as well as issues with the visibility that the drivers have over other road users are particular risks and of particular concern to vulnerable road users, that is, those on cycles, motorbikes and pedestrians. I would appreciate the Minister's comment on this.
The Chairman: Mr Alvin Yeo is not here. Mr Baey Yam Keng.
Mr Baey Yam Keng (Tampines): Mdm Chair, the number of fatalities from accidents involving heavy vehicles had risen from 32 cases in 2012 to 44 cases last year, that is, almost one person died every week in 2013 due to heavy vehicle accident. This is a big and tragic jump.
One seemingly logical reason is that there are just more heavy vehicles on our roads due to more construction projects around the island. However, let us compare the numbers. The total number of vehicles in Singapore increases slightly by 0.4% over these two years. Yet, there has been a decline of 5.4% in the total number of fatalities from traffic accidents. On the other hand, there is a 3.7% increase in the number of heavy goods vehicles and very heavy goods vehicles from 2012 to 2013. But the rise in number of fatalities involving heavy vehicles was 10 times at 37.5%. There is clearly something about heavy vehicles that we need to look into than for it to take a natural course.
The heavy vehicle industry is loosely regulated and drivers are paid on a per trip basis. I have received feedback that many of these drivers are under pressure to make more trips due to higher demand as well as to make ends meet. Hence, sometimes they take the risk of driving beyond speed limits. On the other hand, we also need to appreciate that the driver's work conditions are pretty tough. First, it is not easy to control a heavy vehicle. Heavy vehicle parking lots near the driver's home are also not easy to come by. Many have to find transport to and from home in the dead of the night or early wee hours where public transport is not available or accessible. They do not hence get to rest well and have irregular meals. There are also reports on drivers spending the night in their vehicles. It is not easy for them to even find a temporary space to park their heavy vehicles to have toilet breaks. We should do more to
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enhance the work conditions and the welfare of these drivers for it would translate to safer roads for us all.
With the volume of infrastructure works in Singapore increasing, there will be more heavy vehicles, more trips on the road and more drivers joining the trade. Let us do something before the accident and fatality rate goes out of control. I would like to suggest that we require all heavy vehicles to install two devices: one, real-time speed recorder, the requirement to submit speed locks at regular intervals, say, every three months; and two, digital video cameras which should be useful in getting drivers to be more conscious of the way they drive.
I am sure that the recorders would not only be useful in accident disputes, it would also help the drivers to drive more safely. I understand that these issues are not totally under MHA's purview. They include MOT, LTA for vehicle registration and traffic regulations, MOM and perhaps NTUC for driver's work conditions and MND, URA, BCA for parking and construction industry practices.
However, even that the accident fatality rate is checked by MHA and Traffic Police, I would like to ask MHA to take the lead or perhaps arrow another Ministry to coordinate efforts with all relevant authorities to address the problems.
The Chairman: Mr Christopher de Souza, take your two cuts together, please.
Mr Christopher de Souza (Holland-Bukit Timah): A close partnership between the Home Team and the wider Singapore community is integral towards ensuring the effectiveness of measures to curb the occurrence of illegal moneylending, or loansharking, activities within our neighbourhoods.
With both parties being actively involved in the detection and deterrence of such activities in our heartlands and residential neighbourhoods, we will have peace of mind that our children and families are growing up and living in a safe environment.
In light of this, I would like to ask the Minister for Home Affairs to provide an update on what new efforts are being taken to eradicate the prevalence of
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unlicensed moneylending and related harassment cases, and an update on the progress that these initiatives have made in targeting the scourge of loansharking in our community.
Taken together, the Police and MHA have implemented many broad-based measures that are meant to support and complement one another in the fight against unlicensed moneylending in Singapore. These measures, namely, preventive education, enforcement and community engagement, ensure that the Police have robust measures at their disposal to curb the spread of unlicensed moneylending and related harassment incidents.
Thus far, initiatives, such as the Community Policing Scheme (COPS) and the Anti-Unlicensed Moneylending Awareness Campaign, enable the Police to tap onto the community as a potent source for surveillance and information gathering in the neighbourhoods.
Furthermore, the deployment of Police cameras at HDB blocks has assisted in allaying safety and security concerns of such loansharking activities happening in our communities. Regular reports of the arrests of unlicensed moneylenders are a testimony of the effectiveness of these initiatives.
Also, with the introduction of tough measures under the Moneylenders Act and other legislation, the Police have been successful at achieving a consistent reduction in the number of reports of unlicensed moneylending and related harassment cases in Singapore.
But as the Police slogan goes, \"Low crime doesn't mean no crime\". Therefore, tough and robust measures must continue to be utilised to stem the spread of such activities in our community. This is particularly important as unlicensed moneylending is amongst a cluster of crimes that tend to involve large organised crime syndicates and often have a transnational aspect to them.
Therefore, I would like to ask the Minister whether existing punitive, legal and enforcement measures to reduce illegal moneylending activities continue to be relevant and effective, and whether there are further enhancements that may be required to augment the Home Teams' ability to fight against such activities, particularly in pursuing upstream offenders who are the puppeteers and masterminds of such activities.
With the ever-evolving nature of such crimes, the Home Team and the Police must remain up-to-date with their measures and methods to reduce
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loansharking in our neighbourhoods, and must be able to adapt to the ever-changing and evolving criminal landscape.
Mdm Chair, my second cut on remote gambling. In this era of unprecedented Internet broadband access and widespread prevalence of smart phones amongst Singaporeans, a new phenomenon of remote gambling is starting to take root amongst our Singaporean population.
Remote gambling is essentially gambling either via the Internet or through a communication device like a smart phone. It was noted in 2013, that the size of the remote gambling market in Singapore was estimated at around $375 million and was expected to grow by about 6% to 7% annually.
This spread of remote gambling in Singapore is particularly worrisome as remote gambling websites can be accessed at any time of the day, from anywhere and often without any charge. This is unlike one of Singapore's two casinos where there is a $100 levy imposed on Singaporean seeking to enter the casinos.
Therefore, Singaporeans who wanted to gamble but are reluctant to pay the $100 would choose to engage in remote gambling instead. This would allow Singaporeans to circumvent the preventive measures that had justified the implementation of the levy on Singaporeans at the two local casinos, namely to prevent the spread of problem gambling in our community.
Another key issue with remote gambling is that remote gambling operations tend to be centred beyond the jurisdiction of Singapore and remote gambling operations may also become a source or conduit of funds for illegal activities or syndicated crimes.
Therefore, in November 2013, the Government announced that it would be introducing new laws to allow enforcement agencies to act against those who are involved in the provision or facilitation of remote gambling in Singapore.
These new laws are expected to block Singaporeans from accessing gambling websites, prevent them from making payments to remote gambling operators online and to ban advertisements that promote remote gambling sites.
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Soon after, MHA announced that it would be holding a public consultation exercise to engage with relevant stakeholders to understand how best such legislation can be crafted and implemented.
Hence, I would like to ask the Minister for Home Affairs: what feedback had been collated from the public consultations that were conducted and, moving forward, what plans does the Ministry have to operationalise the proposed measures to restrict remote gambling in Singapore.
Until and unless the Government implements tough and robust measures to curb the spread of remote gambling in Singapore, there will continue to be an avenue for Singaporeans to get caught in the vicious cycle of problem gambling.
Mr Alvin Yeo (Chua Chu Kang): Mdm Chair, on the drug situation, the worsening regional situation has made its impact felt even in Singapore, with the growing use of recreational or party drugs, especially among young adults. Singapore has fought hard to contain the drug menace and it is important that we do not let up on our efforts now. Given its disturbing developments, could the Minister update the House on how he perceives the current drug situation and the plan that MHA has to deal with new abuses of drugs, particularly among our youth?
Mr Vikram Nair: I have similar concerns as Mr Yeo. According to the Home Team's annual statistics on drugs for 2013 that were recently released, there was a 2% increase in the number of arrested drug users as well as repeat offenders. Altogether, some 3,574 drug abusers were arrested, of which 69% were re-offenders. The large number of repeat offenders tells the story of how serious the problem of drug abuse is. My own encounters with reforming addicts in the course of my work as a Member of Parliament leave me under no illusions about the man exposed to drugs.
In this regard, I was particularly concerned because of the people who are arrested, 31% are new drug abusers and of these new drug abusers, about half were between the ages of 20 and 29 years old. This might be a long painful road ahead for these drug abusers.
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I also understand that about 92% of the drug arrests were for heroin and methamphetamine. But it was also notable that there was a sharp increase in the number of abusers of cannabis, a drug which some people might perceive to be less harmful.
I understand that while heroin is the main drug of abuse for older addicts, younger addicts are more likely to use methamphetamine, such as Ice and cannabis. Could the Ministry provide an update on the local situation in relation to these types of drugs? Are any steps being taken to educate the youth of the risks of drugs such as these?
Ms Tin Pei Ling: Madam, this House will agree that the ability to find a job as in financial independence and being meaningfully engaged in community will ensure offenders stay drug-free and crime-free for as long as possible after their release from the prison. Even while they were in prison, it is also reassuring and motivating for them to know that their families are not left alone to fend for themselves. These are also some of the reasons underlining the appointment of Yellow Ribbon Champions in our communities of which MacPherson is part of. As such, can the Ministry provide an update on its overall effort to work with volunteers and community partners to rehabilitate and reintegrate offenders?
The Chairman: Deputy Prime Minister.
The Deputy Prime Minister and Minister for Home Affairs (Mr Teo Chee Hean): Thank you, Mdm Chairperson. First of all, let me thank all the Members for their keen interest in issues that are faced by the Home Team and also for their support for Home Team officers for the very challenging and difficult work that they do. Very often, Home Team officers are held to account for what happens in society and to answer for how they respond to them. But, in fact, they are helping to maintain peace and order and to clean up what happens in our society. So, I thank all Members for their support.
With your permission, Madam, may I ask the Clerk to distribute a handout with some Home Team statistics, just to illustrate the points I want to make. [Handouts were distributed to hon Members. Please refer to Annex 1.]
As Assoc Prof Eugene Tan and other Members have pointed out, we have built a strong record of safety and security in Singapore. The overall crime rate
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has been falling steadily and is at its lowest in 30 years. Our crime rate is among the lowest in the world, well below major cities like New York, London, Tokyo and Hong Kong. Recidivism rates remain stable. Our fire fatality rate is also lower compared to these same four major cities. Our road fatalities and injuries continue to fall, though we want to see them decline further and there are some specific areas which we need to look at. The number of immigration offenders arrested has been declining steadily and is less than half of what it was five years ago.
The most recent Safety and Security survey, carried out by MHA in 2012, found that more than 90% of Singaporeans felt safe in their neighbourhoods. Members would also have read in the news today that the US-based World Justice Project Rule of Law Index 2014 ranked Singapore second out of 99 countries, in terms of order and security.
Mdm Chairperson, law-abiding citizens in Singapore have the freedom – a real freedom – to feel safe and secure in their home, and wherever they go in Singapore, whatever time of the day or night. There is strong deterrence against law-breakers because of strong public support for robust laws and effective enforcement, complemented by strong community partnerships.
We have been able to achieve these positive outcomes because the Home Team has been working together with Singaporeans to be more united in our efforts, integrated in our systems, committed to our values, and dedicated to serve Singapore and Singaporeans. Let me speak about these four principles and how they have been applied in our approach to tackling our key safety and security challenges, which Mr Hri Kumar and others have asked about.
First, drugs, which Mr Alvin Yeo and Mr Vikram Nair were concerned about, as are we in the Home Team; very concerned. Many of us have seen the damage that drug abuse causes, not just to the drug abuser but also his family and the community. And this is why Singapore has remained committed to our zero-tolerance stance against drug abuse. Singaporeans support these tough measures because they keep our streets safe and our children safe.
In contrast, some other countries have given up the fight in the face of rampant drug abuse. Instead of suppressing abuse itself, these countries have adopted so-called \"alternative approaches\" to reduce the collateral harmful effects of continuing drug abuse. They tolerate and even decriminalise drug
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abuse in order to reduce, for example, the spread of hepatitis or HIV by offering free needles to abusers to inject drugs, sometimes, as many as 100 needles per year. Such alternative approaches do not mitigate the demand for drugs but instead perpetuate drug abuse and we should not go down this route.
While the Central Narcotics Bureau (CNB) is the agency responsible for our anti-drug efforts, it is able to succeed only because it works together in an integrated manner with other Home Team and Government agencies, as well as the community.
Within the Home Team, CNB works closely with the Immigration and Checkpoints Authority (ICA) to stop drugs from entering Singapore. CNB has also stepped up inland enforcement together with the Police. As a result, the number of drug offenders arrested and drug seizures rose in 2013.
Beyond the Home Team, societal support is also needed to rehabilitate drug abusers and to ensure youths say no to drugs. CNB and Prisons have recently enhanced our post-release reintegration and supervision programmes to help former drug offenders break the cycle of re-offending. We need community support through halfway houses, the Yellow Ribbon Project and employers. All these are key to improving our success rates. With support from family members and the community, former drug offenders will be less likely to seek out their old friends and relapse back to their old habits.
This integrated approach extends beyond our shores. CNB works closely with their overseas counterparts to exchange information and conduct joint operations to crack down on transnational drug syndicates. In this integrated, coordinated and united way, we are able to keep our grip on this menace which has overwhelmed many other countries.
Senior Minister of State Masagos will say more about how we are tackling the drug scourge.
Second, unlicensed moneylending (UML), which Mr Christopher de Souza and others asked about. The number of cases of UML and loanshark harassment has fallen by more than 55% in the past four years, from a high of over 18,000 cases in 2009 to over 8,000 cases last year.
A coordinated and integrated approach including strengthened laws, coordinated and sustained enforcement, effective use of technology and strong
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community partnerships, brought the UML issue under control.
With the backing of strengthened laws, Police stepped up their presence and enforcement efforts, including through the Community Policing System. Installing Police cameras in over 2,000 HDB multi-storey carparks and residential blocks has also proven to be a strong deterrent to UML operators and has also helped us to catch many of them.
Local residents also play an important part. We now have nearly 10,000 volunteers in Citizens-on-Patrol groups, who patrol their own neighbourhoods and promote a greater sense of vigilance. Police will continue educating the public on the dangers of getting involved with UML activities, protecting themselves against UML harassment and keeping an eye out to detect UML harassment activities.
Because many UML syndicates are now transnational, with ringleaders based overseas, our investigation officers also work closely with their overseas counterparts to track them down, dismantle the syndicates and bring the perpetrators to justice.
Second Minister Iswaran will say more about our integrated anti-UML efforts in his speech.
Third, terrorism. Mr Vikram Nair asked for an update on this issue. Political instability in the Middle East and Africa has seen the emergence of new terrorist groups, some of whom have aligned themselves with Al Qaeda. The conflict in Syria has attracted thousands of foreign fighters, including some from our region and we cannot rule out the possibility, remote though it may seem, that Singaporeans may join them too.
The reduction and possible complete pull-out of US and NATO troops from Afghanistan at the end of this year will leave the country in a fragile state. Will Afghanistan proceed on a stable trajectory after more than a decade of UN-endorsed international efforts since December 2001? Or will the country return to turmoil again, and provide a safe haven in which terrorists can be trained and exported to other parts of the world? What happens in Afghanistan and other hot-spots has an impact on us. Members will recall that several of the core Singapore JI members received training in Afghanistan prior to September 2001.
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Self-radicalisation remains a concern for us, given the widespread availability of radical material on the Internet, including in English. Several Members have brought this up. Since 2007, we have detained five self-radicalised individuals under the ISA, and issued Restriction Orders against six others. All of them were radicalised through the Internet, and had intended to wage armed jihad in overseas conflict zones.
Our officers from the ISD, Police and ICA work hard to detect and apprehend these terrorists before they do harm to others and to themselves. More importantly, the community plays a critical part to protect Singapore and Singaporeans against terrorism. MUIS and our local Muslim community are vigilant against teachings that promote extremism or violence. In 2003, our Muslim religious leaders came forward to form the Religious Rehabilitation Group, to help counsel and rehabilitate those who have been involved in terrorism-related activities. Sixty-six individuals have been detained under the ISA for their involvement in terrorism-related activities since January 2002. More than two-thirds have since been released after they were assessed to have been rehabilitated.
The efforts to counter violent extremist ideology continue. In 2013, the Religious Rehabilitation Group organised an international conference on terrorist rehabilitation and community resilience to share best practices and lessons learnt amongst experts and practitioners from Egypt, Pakistan, Saudi Arabia, the US, as well as European and ASEAN countries to counter extremist ideas. Such efforts will help to expose and counter the distorted interpretations of religious texts and doctrinal concepts that are propagated by extremists and this includes doing it on the Internet and on the web.
Violent extremism is a transnational phenomenon, which manifests itself as a threat to Singaporeans, both in Singapore and Singaporeans overseas. An integrated approach involving security agencies, the community and international cooperation is required to protect ourselves from this dangerous and constantly evolving threat.
Fourth, cybersecurity. Cybersecurity is important for Singapore, given our high dependence on information technology and the Internet. And cybercrime, as I pointed out, is also growing. Cyberattacks can take many forms and come from many sources. They range from hacking, defacement of websites to data theft, often by persons who hide behind the anonymity of cyberspace, which Singapore experienced last year. They can also pose systemic threats against the security of our National Critical Information Infrastructure. Last year, the attacks that we faced did not impact upon our National Critical Infrastructure
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but we cannot rule that out in the future when such attempts may be made.
Cybercrime is also a growing concern. The number of cheating cases involving electronic commerce more than doubled last year compared to 2012. Internet love scams also increased by more than 60% and the amount cheated last year increased to more than S$5 million – five times that in 2012.
Police cannot solve this problem on their own. They require people to have an awareness of those sort of \"too good to be true\" offers, whether they appear in the physical world or in the cyber world and to be very wary of them. Because once you fall into the trap, for Police to catch somebody who is somewhere in another part of the world is very, very difficult. And this is not the physical world; this is in the cyber world. So, self-awareness is important. The Police will do their best to enforce and are increasing their ability to investigate such crimes, even at the divisional level.
Last year, we amended the Computer Misuse and Cybersecurity Act to strengthen our defences against cyberattacks. We continue to work closely with the community and industry to promote good cybersecurity practices and expand Singapore's pool of infocomm security experts.
The National Cyber Security Centre will commence operations in April 2014. It will work closely with sector leads responsible for each of their respective sectors on round-the-clock detection of major national cyber threats. We are not where I would like us to be but we are getting there and we will make progress to defend our critical infrastructure in Singapore. The Cyber Security Lab in the Home Team Academy will open in September 2014. It will provide realistic hands-on training for those regulating, managing and operating the National Critical Information Infrastructure.
Because the cyber world transcends national borders and attacks can materialise without notice from anywhere in the world, it is critical that we continue to work with like-minded global and industry partners, to build a community of responsible and security-aware users, and to strengthen our cybersecurity capabilities. INTERPOL is opening the INTERPOL Global Centre for Innovation (IGCI) in Singapore over the next year and one of its areas of focus will be cybercrime.
Mr Hri Kumar and Mr Edwin Tong asked how we will ensure that the Home Team is able to meet its operational demands, including unanticipated incidents
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and threats.
Given the wide range of existing threats, as well as the emergence of new threats, it is indeed a challenge to meet all these demands within the very real overall resource constraints that we have, particularly people. Every company, every agency, every organisation faces that, and we have to try and manage this within the overall resources that can be made available to the Home Team. But we have been growing.
Over the last 10 years, manpower in the Home Team has grown from about 19,000 to about 24,000 – a 25% increase. And the Police have grown from about 9,000 to about 10,300, an increase of about 15% over the last 10 years. But we have to be realistic. Can we continue to recruit good men and women of high quality, train them to do all the general-purpose work that is required, for example, in the Police Force, and then we deploy them to do very simple, mundane duties – boots on the ground?
We have to strike a balance and, therefore, we are using Auxiliary Police Officers and security officers, and training them to do very specific duties which they can do on a regular basis. Then we can deploy our Police Officers who are generally trained for a wider range of duties to areas where their qualities are most valued and needed. This provides a good balance between having more people who are generally trained and more people who are specifically trained in order to meet our overall security needs.
Let me describe how we deal with emerging threats, emergencies and crises. There are so many things that happened which the Home Team has to clean up after and to protect ourselves against. These can fall into two main categories, namely, situations that our officers have trained and prepared for, and situations that are difficult to anticipate. They can happen but will they happen; when will they happen?
So, let me illustrate the first category by looking at how we deal with emergency medical response. These are things that we can anticipate, and our officers train and prepare for them. Where the type of situation can be anticipated and occur fairly often, the main variables are where, when, what, or who is involved – for example, a medical emergency.
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To improve our emergency medical response, we are growing the Singapore Civil Defence Force (SCDF) ambulance fleet. We have cross-trained some fire-fighters as Emergency Medical Technicians. And we have fitted our fire bikes and fire engines with Automated External Defibrillators (AEDs). We have also engaged private operators to augment our ambulance fleet to attend to the growing number of ambulance calls, particularly medical emergencies as compared to trauma cases.
So, how can we respond better to emergency cases, in particular medical emergencies? If we focus solely on continually improving ambulance response times, it will require an ever increasing resource level that will ultimately reach our resource limits. But we can redefine the problem. If somebody has a medical condition that requires a fast, almost immediate response, there is no faster first responder than the person standing right next to him. So, how can we make him more able to respond and help? How can we help each other?
We can facilitate this by leveraging on resources already available in the community. SCDF is collaborating with the Singapore Heart Foundation to set up and maintain a National AED Registry to guide members of the public to the nearest AED in an emergency. SCDF is also developing a complementary mobile app to alert volunteers trained in AED and CPR to emergencies in their immediate vicinity so they can provide first response even before the emergency ambulance arrives. This can help improve patient survival and outcomes.
Together with MOH, we are working with stakeholders to encourage the installation of AEDs in public places with high human traffic and to train more first responders in the community. For a start, we are partnering the People's Association to install AEDs in Community Centres and conduct CPR and AED training for their staff and for the public. By marrying the accessibility and the location of AEDs, the readiness of AED-trained volunteer community partners, and the reach of mobile communications, we can supplement our emergency medical responders to achieve faster response and better outcomes in a sustainable and resource-efficient way. Similarly, we can tap on community resources to detect and report crime or traffic violations. Some of these suggestions were put up by the Members today.
The second category comprises situations that are difficult to anticipate. They may only happen once in a very long while, but can have very serious consequences. Or they might not have even been anticipated at all. We can try to anticipate every eventuality, and plan and prepare for every one of them. But it is not possible to predict to the last detail what can happen, nor can we set
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aside dedicated resources at high alert for every single eventuality all of the time, and all at the same time.
So, our approach is to organise the Home Team and train our officers to prepare them for their core work and the situations that they are most likely to face and, at the same time, our forces and our officers must have the right instincts and operational flexibility to respond and adapt to the specific requirements when the unanticipated happens.
Let me give you an example. We have not had a kidnapping case for a very long time but when a kidnapping occurred, the Police was able to respond very, very quickly and resolve the case within 12 hours. And they had their priorities right – which was the safety and the life of the victim. They made sure that she was safe, then they arrested the suspects and then they recovered the ransom. So, victim survived, arrested the suspects, then recovered the ransom. That was a response in a very, very rapid way, in a very well coordinated way to an incident which has not happened for many, many years.
So, we may not necessarily have specific and separate forces that are dedicated to and on high alert for each possible eventuality, but we can structure our forces to provide sufficient redundancy and resilience to adapt as necessary and respond to whatever situation arises. You may not get an optimal 100% response which comes from a dedicated high alert force that is ready to do it all the time, but you will get a very good response anyway.
By preparing a tiered response and building in some redundancies and reserves, we can bring our forces up to the required level of alert, deployment and response according to the threat or risk assessment for each eventuality. The deployment posture for our forces will adapt according to operational needs. For example, a high profile international meeting that attracts international protest groups or terrorists will require one type of deployment; a major football game, another; a street parade, an international sporting event, a civil disaster, or possible tension among foreign groups in Singapore that might arise due to developments overseas. All these require different postures and deployments, out of the same general purpose response forces that we have.
The approach I outlined also applies to how we prepare, train and equip our officers for riot control and other public order and security threats, which Mr Heng Chee How and several others asked about. For example, the structure, equipping and training of our forces was reviewed in preparation for the World
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Bank/IMF Conference in 2006 and reviewed again after the Mumbai terrorist attacks in 2008. I do not just mean the SOC forces but also our general purpose Police Officers as well as the SCDF.
One area that the Committee of Inquiry into the Little India riot is looking into is examining how the response forces managed the incident. As you would have seen from the testimonies at the COI, there are many considerations in dealing with such a fluid and fast-moving incident and all the factors should be taken into account before arriving at any conclusions. SPF, SCDF and MHA will study and consider the Committee's recommendations as part of our review of public order management and response capabilities.
Mr Hri Kumar, Mr Arthur Fong and others asked whether the Home Team has adequate resources and manpower. The short answer is that more resources and manpower are always welcome because there are growing operational demands and calls for more enforcement presence. But there are natural limits to how much we can grow the Home Team, without compromising the standards expected of officers. As our resident workforce ages and stops growing, it will be even more challenging to recruit and retain good officers, especially given the demands of a uniformed career. I had explained earlier our approach to recruiting officers of good quality and whom we can train in a general purpose way; and employing Auxiliary Police Officers whom we can deploy effectively but for more specific domains and jobs.
I agree with Mr Hri Kumar that it is important to retain a core of experienced officers within the Home Team. That is why in October 2013, we extended the retirement age of Home Team officers. These experienced officers can help to guide younger officers, and share the experience and expertise that they have built up over the years.
We are also increasingly using technology to support the work of our Home Team officers – Ms Tin Pei Ling asked about that.
ICA has been deploying automated self-service immigration lanes that offer secure immigration clearance through the use of biometric identifiers. Many of you would have used it at the airport – it is very fast, it is very convenient and it is secure. SCDF is acquiring unmanned fire fighting machines that are able to respond to a variety of operating environments safely and remotely.
Installing Police cameras at the foot of every HDB block serves as a deterrent against crime and helps in investigations and prosecution, and this is
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a more effective way of using our Police Officers than deploying a Police Officer 24 hours a day at the foot of every block. This frees up the Policeman to take on more and higher value tasks, such as understanding the local community and their needs.
Assoc Prof Eugene Tan spoke about public trust and confidence. We will continue to recruit and retain good officers, and we will train, equip and prepare our officers so that they can perform their duties well. Our Home Team officers work round the clock, 365 days a year – investigating and solving crimes, manning our immigration checkpoints, responding to medical and fire emergency calls and more. They bring justice to victims, protect the vulnerable from harm and steer people who have broken the law back onto the right path. In all they do, Home Team officers are expected to act with honour and integrity.
As I said in this House last month, when officers perform well, I will recognise and commend their good work publicly and so should we all – give them a pat on the back when they do well. If they act professionally and discharge their duties properly and to the best of their abilities, while the outcome does not turn out as well as expected, I will still support them publicly – for this is the difficult and challenging work that they do in the Home Team. And they need our support and encouragement. So, do give them your support and encouragement too when the outcome is not as good as one might have expected. However, if they do not discharge their duties properly and fall short of the standards expected of the Home Team, I will hold them accountable and where warranted, admonish and discipline them.
We will not tolerate wilful misconduct, abuse of power or a lack of integrity. This is not only fundamentally wrong at the individual level, but also tarnishes the Home Team's reputation and undermines the public trust that our officers have collectively and painstakingly built up over the years.
Mdm Chairperson, the individual Home Team agencies already have a system of carrying out investigations into allegations of wrongdoing or misconduct by their officers. To strengthen this system, I have decided to set up an Independent Review Panel. When directed by the Minister, the Panel will review the findings of internal investigations into cases of serious alleged misconduct by an officer in his official capacity. Examples include cases which have resulted in death or serious injury, cases which obstruct, prevent, pervert or defeat the course of justice, or where it is in the public interest to do so.
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The Panel will report directly to the Minister, and review whether the allegations are substantiated and whether the investigations were thorough and carried out in a fair manner. The members of the Panel will comprise prominent members of the community, including people with deep legal knowledge and experience, and also include former Home Team senior officers. The Panel will ensure that there are independent, robust and fair processes in place to review allegations of misconduct by Home Team officers. And this will, in turn, foster greater public trust and confidence in the integrity of the Home Team.
Mdm Chairperson, the Home Team has the important mission of keeping Singapore a safe and secure home. Our officers know that the duties they perform and the decisions they make can have a serious impact on the safety and security of fellow Singaporeans. This is a heavy responsibility. It is a responsibility that every Home Team officer bears.
Our officers can only succeed if they have the support of Singaporeans for the difficult and challenging work that they do. We will continue to forge strong partnerships with businesses, community groups, and fellow Singaporeans in tackling our current and future security changes. Working together with Singaporeans, the Home Team will remain united in our efforts, integrated in our systems, committed to our values, and dedicated to serve Singapore and Singaporeans. Let us give them all our support and encouragement.
The Second Minister for Home Affairs (Mr S Iswaran): Thank you, Mdm Chair. May I have your permission to show some slides on the LED screens?
The Chairman:\tYes, please. [Slides were shown to hon Members.]
Mr S Iswaran: Deputy Prime Minister Teo has laid out MHA's strategy to keep Singapore safe and secure. Let me now elaborate on our efforts to ensure the safety of our neighbourhoods and roads, and also address some specific queries from Members.
Madam, as we have heard, the overall crime rate declined to 549 crimes per 100,000 population, which is a 6% decrease from 2012, and it continues a favourable trend since 2005. To sustain this, we will continue to invest in our frontline policing capabilities, harness technology, while building on our partnership with the community.
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Community policing is a key aspect of our efforts to keep neighbourhoods safe. Many Members have spoken on this. Mr Hri Kumar has commented on the efficacy and merits in the context of other jurisdictions.
Mr Edwin Tong and Mr Arthur Fong asked about the progress of the Community Policing System (COPS). To strengthen our frontline policing capabilities, we have been implementing COPS in phases since 2012. To date, 20 of our 35 Neighbourhood Police Centres (NPCs) have adopted the COPS model. Under this approach, a Community Policing Unit (CPU) and a Crime Strike Force (CSF) is established at each NPC to reach out to the community, and to tackle local crime concerns.
Our Community Policing Unit officers regularly engage residents to forge closer ties, to raise crime prevention awareness, and to assist and support victims of crimes. Their outreach efforts have generally been well-received by members of the public.
The familiarity with the local operating terrain has enabled our Crime Strike Force officers to be more effective in detecting and deterring crime. For example, officers from Clementi NPC relied on their experience, knowledge of the neighbourhood, and detailed crime pattern analysis to solve within three days a case of serial theft of television sets in November last year.
We will continue to allocate more resources to the Community Policing System. In the second half of 2014, COPS will be implemented at eight more NPCs in Ang Mo Kio North, Bedok South, Bukit Batok, Bukit Merah West, Bukit Panjang, Kampong Java, Queenstown and Yishun North. We expect COPS to be introduced in all NPCs by 2015.
Ms Tin Pei Ling and Mr Pritam Singh asked for an update on the programme to deploy Police Cameras in HDB estates. To date, Police Cameras have been installed in over 2,000 HDB blocks and multi-storey carparks (MSCPs), across all 16 Town Councils, and the 87 wards that they cover. Police Cameras will be rolled out to 1,000 more blocks and MSCPs by the end of this year. We expect all 10,000 HDB blocks and MSCPs to be covered by 2016.
Harnessing such technology is another important element in our efforts to enhance Police's ability to fight crime. Over a period of 21 months, footages from Police Cameras have been used to solve 48 crime cases and generate
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investigative leads for a further 195 cases. On Mr Singh's specific query, the Police is willing to share footages from its cameras with Town Councils where it is relevant for investigations into offences under the Town Councils' purview.
The Home Team continues to seek new ways to leverage on technology as a force multiplier. One new initiative that the Police is working on is the use of body-worn cameras by frontline officers. The experience of Police forces in countries like the UK and Canada indicates that such cameras and their recordings have been useful in deterring crime, calming rowdy members of the public and providing valuable investigative leads. Police will commence a pilot on the use of body-worn cameras for frontline policing in the middle of this year.
Madam, we also remain steadfast in our efforts to strengthen community partnerships. As the Deputy Prime Minister has mentioned, more residents are stepping forward to partner the Police, as evident from the 36% increase in Citizens-on-Patrol membership – from 7,094 members in December 2012 to 9,623 in December 2013.
Police have also extended their partnership to other community stakeholders. For example, Jurong Police Division collaborated with dormitory operators, employers and MOM to launch a Community Safety and Security Programme (CSSP) to promote crime prevention and safety and security awareness among foreign workers.
Madam, let me now turn to some specific issues that have been raised by Members.
Mr Christopher de Souza asked for an update on the unlicensed moneylending situation. As we have heard, the number of reported unlicensed moneylending and related harassment cases fell to around 8,300 in 2013. This is a decrease of over 2,500 cases, or 23%, from 2012. Since 2009, there has been a cumulative decline of over 55% in such cases. There has also been a shift in the harassment tactics of loanshark syndicates; for instance, harassment cases with damage to property fell by almost a third, or 2,461 cases, over the past year.
This is the combined result of the tough laws that we have enacted, the Police's sustained enforcement effort complemented by the use of technology, such as CCTVs and public education and community partnership.
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Police will also press ahead with their community outreach efforts to educate the public, especially the financially vulnerable, on the perils of borrowing from loansharks, the availability of legal channels and to stay vigilant against loansharking activities.
On the enforcement front, Police have detected an increasing incidence of debtors assisting unlicensed moneylending syndicates by allowing their bank accounts to be used for transactions. To curb their illicit operations, Police are working with banks on a three-year pilot trial to terminate the ATM and Internet banking facilities of persons who are convicted of, or administered with a stern warning in lieu of prosecution, for assisting unlicensed moneylending syndicates. They will be denied such services for a year after which the banks will have to assess whether their services are to be reinstated.
As highlighted by Mr de Souza, unlicensed moneylending tends to involve organised crime syndicates, which are transnational in their activities. MHA is working on legislation targeting organised crime that will strengthen our enforcement efforts against the various levels of unlicensed moneylending syndicates, including those who are based overseas but conduct their unlawful activities in Singapore.
Ms Sylvia Lim spoke on investigations into serious sexual crimes, in particular the length of investigations and the prosecution rate. Madam, investigations into such offences are delicate and inherently complex by their very nature. Where it entails the word of one party against another, the challenge for the Police investigators lies in finding objective evidence to prove the guilt, or otherwise, of the accused beyond reasonable doubt.
To this end, as part of investigations, Police record statements from the victims, witnesses and defendants. Exhibits, if any, would be sent for forensic examination. Polygraph examinations may also be conducted in some cases, on a voluntary basis with written consent. Time is also needed for any additional investigative enquiries, and the preparation of the necessary medical and forensic reports. The Deputy Public Prosecutor (DPP) may also conduct further interviews with the victims and witnesses.
As Ms Sylvia Lim has noted from previous replies, typically, Police take 12 months on average to conclude investigations into serious sexual crimes. The duration can vary for individual cases depending on its complexity. And as a point of reference, its duration of process is comparable to murder cases, which
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like serious sexual crimes are also tried in the High Court.
Upon the conclusion of investigations, as with all criminal investigations, the Attorney-General's Chambers (AGC) will make the final prosecutorial decision based on the facts and circumstances of the case and the strength of the evidence. That will determine the outcome, whether it is to be a prosecution, a stern warning, or no further action to be taken. Police go their part of the work and the AGC will have to evaluate the evidence and circumstances in deciding on the path forward.
Where a victim requires more specialised support, Police work closely with agencies like MSF and MOE, especially for young victims, the National Crime Prevention Council, crisis support groups, for example, Family Service Centres and medical social workers, to provide additional victim care. Police are also working on a pilot to implement a new Victim Care Cadre (VCC) programme. Under this programme, members of the public will be trained by Police psychologists as victim care officers to provide direct moral support to victims of rape.
Ms Denise Phua asked that the Appropriate Adult Scheme be formalised. As she has noted, an inter-agency committee led by AGC concluded a pilot recently of this scheme at Bedok Police Division and is in the process of evaluating the results.
The preliminary feedback from stakeholders has been positive. The inter-agency committee overseeing this programme will assess how this scheme can be implemented across all Police land divisions for the benefit of vulnerable groups, such as young persons and those with intellectual disabilities. The review is expected to be completed in the coming months.
Mr Christopher de Souza had asked for an update on the public consultation exercise on the proposed framework to restrict remote gambling. MHA had earlier announced that we were developing a regulatory framework that would include blocking measures, and laws for enforcement against facilitators, intermediaries and providers of remote gambling services.
MHA conducted the public consultation on the proposed framework from 29 November 2013 to 10 January 2014. We received feedback from industry stakeholders, community and grassroots organisations, religious and social services groups, as well as members of the public.
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The majority of respondents supported the move to restrict remote gambling and for Government to implement blocking measures. However, there were mixed views on whether a limited form of remote gambling should be permitted. Some called for a complete ban on remote gambling. Others felt that there was a need for a tightly regulated authorised entity that could divert demand away from illegal and unregulated operators – somewhat akin to Hong Kong, where a locally-based, not-for-profit operator is allowed to offer a limited range of non-casino style products on online platforms. The Ministry will take the next few months to further study these issues and the experience of other jurisdictions before arriving at an appropriate set of actions, including legislation.
Madam, I now turn to road safety, raised by Dr Janil Puthucheary, Mr Baey Yam Keng and Mr Alvin Yeo. As Members have noted, there was an 11% reduction in the number of accidents with fatalities or injuries, from 7,188 cases in 2012 to 6,426 cases in 2013. The number of injured road users also decreased, by almost 12%, and the number of fatalities declined by 5%.
Notwithstanding this decrease, the fact is that such accident-related casualties can and should be prevented. We must therefore persist and persevere with our efforts to improve road safety. This was the impetus for the launch of the Safer Roads Singapore (SRS) action plan last year. Through Safer Roads Singapore, we aim to foster a culture of safe and courteous road use, with a three-pronged strategy of enforcement, education and engagement.
On enforcement, we have deployed Auxiliary Police Officers and an additional 70 Traffic Police officers on our roads. The objective is to remind road users to continue to use our roads safely and responsibly, and to deter poor behaviour. Enforcement operations in 2013 resulted in a 10% increase in the number of traffic violations detected, compared to 2012.
We have also begun rolling out new digital red light and speed cameras around the island. This will complement the efforts of officers on the ground, and enhance our ability to detect and identify vehicles that speed or run red lights. The first five digital red light cameras began operations earlier this month. By the first half of 2015, a total of almost 260 additional digital red light and speed cameras would have been installed.
To complement enforcement efforts, Traffic Police have also strengthened road safety education for various groups of road users, in particular the more vulnerable. One such group is the motorcyclists who
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constitute nearly half of all injuries and fatalities on our roads.
Since June 2013, almost 3,000 learner motorcycle riders have undergone the new compulsory Expressway Familiarisation Ride (EFR) course. It aims to help new motorcyclists become more familiar with riding on expressways, and to pick up useful tips for safer riding. Riders who have gone through the EFR course are much less likely to cause, or be involved in, accidents on the expressways. This was based on the pilot study that was done by Traffic Police previously.
The community and industry play important roles in ensuring road safety. To this end, Traffic Police have continued to engage the community and industry partners to champion a culture of road safety.
For example, the Singapore Road Safety Council has launched the annual Singapore Road Safety Award (SRSA), to recognise industry fleet owners that are committed to improving road safety within their companies. The inaugural Award was presented to PSA Corporation Ltd in December 2013 for putting in place a comprehensive framework to instil a strong road safety culture among its drivers.
This is not just confined to large companies. For example, LTH Logistics, a chemical logistics and distribution company with about 80 drivers, has taken a proactive approach to ensure the safety of its drivers and also our roads. All their vehicles are equipped with Global Positioning System (GPS) devices that allow the company to monitor the drivers' speed. Those who adopt good driving habits are rewarded. These are good examples well worth emulating by all other companies with respect to ensuring the safety of their employees.
The Traffic Police will also be launching a new one-stop online portal on 15 March. This portal will allow members of the public to report traffic violations as well as examples of courteous and considerate driving. Members of the public will thus be able to play a part in improving our road use norms by providing feedback on both positive and negative road conduct.
Mdm Chair, even though the overall road safety situation has improved, some specific groups of drivers warrant closer attention. Mr Alvin Yeo and Mr Baey Yam Keng have identified heavy vehicle drivers and, more generally, vocational drivers as one such group. As Mr Baey has pointed out, vocational drivers do spend long hours on the road, often in large vehicles, and they also
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tend to ferry passengers or goods in the course of their work. It is important to ensure that these drivers have the requisite driving competencies and safety mindset.
One part of this is enforcement. Traffic Police have stepped up enforcement efforts against heavy vehicles. Last year, Traffic Police mounted significantly more operations against heavy vehicles as compared to 2012. We have also tightened the inspection requirements for heavy vehicles caught speeding. Since the implementation of this measure in November 2013, more than 190 vehicles that were caught for speeding were required to go for additional inspections. This enhanced inspection regime, which does disrupt operations for companies, coupled with the demerit points and fines imposed for speeding offences, will serve to emphasise the importance of safe driving habits among heavy vehicle drivers and, importantly, their employers.
In addition, we are working with key industry players as well as Government agencies, like MOT and MOM, on a comprehensive study of the causes of such accidents and to identify specific initiatives which can help improve road safety amongst vocational drivers. These could include vehicular technological solutions, such as the in-vehicle cameras that Mr Baey suggested. This collaboration is spearheaded by the Safer Roads Industry Taskforce, which is co-chaired by Senior Minister of State Mr Masagos Zulkifli and Parliamentary Secretary Assoc Prof Muhammad Faishal Ibrahim. The Taskforce will, certainly, take on board the Member's suggestions.
Finally, let me address some Members' comments on the role of Auxiliary Police Officers and private operators. As Deputy Prime Minister Teo has highlighted, our operational demands have grown over the years and will continue to do so. In response, we have been strengthening our Home Team agencies with more officers. Over the past five years, the number of Home Team officers has grown by an annual average of about 2%.
But there are limits to how much we can grow the Home Team, not least because we need to balance the increasing operational demands with the high standards that we expect of our Home Team officers. This, in turn, translates into selection criteria in recruiting. Hence, apart from harnessing technology, Auxiliary Police Officers and private operators play an important complementary role in supporting the work of the Home Team.
Today, Auxiliary Police Forces (APFs) and other private operators support us in performing specific functions in various areas such as facilities protection,
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checkpoints security, inmate escort and the provision of emergency ambulance services. This allows Home Team officers to focus on duties and situations requiring more specialised skills, or a higher level of judgement and decision making.
We have to be clear – Auxiliary Police Officers are not a substitute for regular Home Team officers. They are a complement to our Home Team effort. Ms Sylvia Lim had said that we should look at best-sourcing rather than outsourcing. I agree with her. By advocating best-sourcing, she already admits the requirement that there is a need to look at some external augmentation of the Home Team resources. Secondly, APFs are appointed under the powers of the Police Force Act. This is not a general tender exercise where we go for the lowest bidding entity. This is a strategic calibrated move as a result of the recognition of the need to find a continuum of capabilities in our system to meet rising operation needs. The APFs are formed and officers are appointed as a result of that.
I would also add that the number of Auxiliary Police Officers as a proportion of Home Team officers has remained relatively modest and stable over the past five years. The Member cited the example of Woodlands Checkpoint being 20%. When you look at the operational environment in Woodlands, you will see why there is a need for more supplementation from Auxiliary Police Officers. But if I give you an aggregate picture, MHA collectively contracts about 1,700 APOs, and this is about 9% of the 18,000 of the Home Team uniformed officers. When the Member said that we should have a limit, I agree with her. Yes, there should be a limit, but I think at this current level, the agencies are, in fact, exercising their discretion to use APOs in a very responsible and calibrated way.
Mr Singh asked about the nationalities of the Auxiliary Police Officers. If you look at the ratio of Auxiliary Police Officers between foreigners and locals, it is not dissimilar to the general involvement of foreigners in our workforce. About two-thirds are locals – Singaporeans and PRs, and the rest are foreigners, specifically Malaysians.
Even as we work closely with the APFs and private operators, the Home Team agencies have to ensure that the Auxiliary Police Officers and private operators perform to the required standards in support of the Home Team's mission. This is critical. Auxiliary Police Officers are therefore, typically deployed under the supervision of Home Team officers and operate in accordance with procedures stipulated by the Home Team. Ultimately, the Home Team agencies and their officers maintain overall responsibility and accountability for the outcomes.
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Hence, it is in our interests to ensure that Auxiliary Police Officers receive the necessary training to effectively perform their duties. Today, Auxiliary Police Officers receive both basic and specialised training. All Auxiliary Police Officers are required to pass a basic training course. In addition to this, they also undergo specialised training for the type of duties that are assigned.
For example, Auxiliary Police Officers who are deployed to patrol foreign worker congregation grounds are briefed on the operating terrain and given training to deal with the common scenarios that they may encounter in the course of their duties. I want to assure Mr Pritam Singh that a structured training programme is in place to ensure that Auxiliary Police Officers are able to meet operational needs. This training is targeted at their special duties or duties they are assigned, and reviewed on an ongoing basis by Home Team agencies to ensure that Auxiliary Police Officers continue to be able to support our officers as the operating environment evolves.
A question was raised whether there is a scope for Auxiliary Police Officers to tap into some of the Home Team training. The answer is yes, a lot of it is focused on training the trainers, or commanders of the Auxiliary Police Officers, so that they in turn are able to create the right culture and mindset amongst their officers.
The APFs also conduct regular audits and inspections on the ground to ensure that their own officers meet the required standards of performance in their duties. Drills, exercises and red-teaming are also conducted to improve Auxiliary Police Officers' operational effectiveness. The Police independently conducts its own audits and inspections of APFs and their operations.
Ms Sylvia Lim asked about the role of Auxiliary Police Officers in road traffic accident investigations. Auxiliary Police Officers do not conduct road traffic investigations; only Traffic Police Officers conduct investigations. LTA engages Auxiliary Police Officers as traffic marshals to manage traffic accident scenes. This initiative was started in late 2007 between LTA and Traffic Police in order to expedite the clearance of accident scenes and promote faster restoration of smooth traffic flow. Even then, Auxiliary Police Officers are not activated by LTA in all accident cases; they are mainly deployed for incidents, such as those in expressways and tunnels, which can affect traffic efficiency substantially. That is really the context.
When the LTA Auxiliary Police Officers arrive at the scene, they help to cordon off the affected lanes, direct traffic to ease congestion and, where necessary, preserve evidence for Traffic Police's investigations. Traffic Police will usually not conduct investigations into minor accidents where there is no injury caused to the parties. The parties will be advised to report the accident to their respective
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insurers promptly.
Traffic Police investigate accidents where injury or fatality is caused. For such cases, LTA traffic marshals may facilitate the investigation process by noting down basic preliminary details, such as sketching of the accident scene and vehicle damage. In these cases where an investigation by Traffic Police is required, the traffic marshals are to relay any information that they have gathered to the Traffic Police officer in-charge of the case as soon as possible. This includes the contact information of involved parties and potential witnesses such as Ms Lim.
As part of the investigations, Traffic Police may contact – I stress may contact – the involved parties or potential witnesses for further information. However, if the facts are clear or where sufficient evidence has been obtained, Traffic Police can take the appropriate action against the parties involved without necessarily contacting all the potential witnesses for input.
Traffic Police train and assess these Auxiliary Police Officers in their roles as traffic marshals, prior to their deployment. There are also established operating protocols to guide the traffic marshals in executing their tasks professionally. Traffic Police take the delegation of its functions very seriously and these processes are reviewed regularly to ensure that they remain relevant and robust.
Madam, I have taken some time to elaborate on this regime which we have with respect to Auxiliary Police Officers. First, I understand and share the intent behind Members' comments on Auxiliary Police Officers and private operators. But it is also important to understand, as Mr Hri Kumar has pointed out, that we need to strike a balance between the use of Auxiliary Police Officers and private operators to complement the Home Team in meeting operational demands, whilst upholding the high standards expected of the Home Team and its officers. It is a dynamic environment that we are in, and the Home Team agencies work with the Auxiliary Police Officers and other complementary entities in order to ensure they can achieve the best outcome in terms of safety and security. We will regularly review the regulation, deployment and training of Auxiliary Police Officers to ensure that they have the skills and training to be able to support the Home Team effectively.
Mdm Chair, MHA will continue to strengthen our operational capabilities, maintain a tough enforcement stance against crime and continue with our efforts to keep our roads safe. Our operating environment is dynamic, and we will constantly review and adapt our strategies in response to the evolving
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challenges.
The support of community and Singaporeans has been a key pillar of the Home Team's efforts. We will broaden and deepen our partnership with the community to keep Singapore safe and secure.
The Senior Minister of State for Home Affairs (Mr Masagos Zulkifli B M M): Mdm Chairperson, I will now speak on our fight against drugs, strategies to prevent reoffending and efforts to strengthen community relationships.
Mr Vikram Nair and Mr Alvin Yeo have asked for updates on the local drug situation, especially among youths, and our plans to counter these threats. When discussing the local drug situation, it is important to first set the context. The regional drug situation is expected to worsen, with reports of higher production, trafficking and consumption of heroin and amphetamine derivatives. International drug syndicates are also targeting the region. The attack by the suppliers has been relentless.
We are monitoring these trends closely because even though the situation in Singapore is contained, the unfavourable regional situation poses a challenge to our efforts to combat drugs. This is evident from local drug seizures. In 2013, CNB seized 72 kg of heroin. What does this amount to? What does this mean? This amount is sizeable because it can potentially feed the drug habit of around 8,000 abusers for 30 days. That is more people than those detained in our Prisons today for drug abuse. This is also a 150% increase from five years ago. There have been similar increases in cannabis and methamphetamine seizures in recent years.
As pointed out by Mr Vikram Nair and Mr Alvin Yeo, drugs such as methamphetamine, more commonly known as Ice, and cannabis, which some may perceive as \"party\" drugs or \"lifestyle\" drugs, have now gained popularity of late. Arrests of methamphetamine and cannabis abusers increased in 2013 when compared to the year before. Between them, they account for 73% of new abusers arrested in 2013 and nearly 64% of new abusers arrested were below the age of 30. This is a serious concern.
We are studying the reasons for this increase. One reason could be misperception that young persons have about drugs. When arrested, many Ice
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and cannabis users say they took these drugs because they assumed they could control their addiction. They can try it just once and then they can stop thereafter. Please let me make this clear. There is no such thing as \"lifestyle\" drugs. One cannot experiment with drugs and not expect to get hooked. Ice and cannabis are no less addictive and dangerous than the drugs we have seen in the past. They can lead to a lifetime of drug dependency, damage our bodies and, in some cases, result in death.
From time to time, we also read stories about how drugs have claimed the lives of celebrities everywhere. Every time this happens is an opportunity for the media and the entertainment industry to step up and rally against drug taking and its harmful and potentially deadly consequences. Indeed, what has been happening is that we mourn their death and, worse, sometimes continued to produce materials that promote drug taking. For ourselves, we should send a clear message to the young to always to say \"no\" to drugs.
Therefore, I am glad that Singaporeans understand this and support our tough zero-tolerance stance against drug abuse. Our approach to the drug problem is a comprehensive one, comprising targeted prevention, strong enforcement and detection, upstream intervention for drug abusers, and supervision and rehabilitation to reduce re-offending. I would like to touch on how we have been applying this approach, particularly to youths and first-time abusers.
CNB adopts a calibrated and targeted approach in its Preventive Drug Education initiatives, or what we call \"PDE\". It is important that we address drug abuse as upstream as possible, which is why youths are a key target segment. CNB uses a range of platforms and works with various stakeholders, such as educators and parents, to outreach to them. Apart from mainstream media, CNB has been using social media sites like FaceBook, YouTube and Instagram to disseminate this information.
In April 2013, we launched a youth-oriented blog (LiveItLoud.Sg) to promote a healthy and drug-free lifestyle. It takes on a more personal approach and youth-centred content and popular guest bloggers, and has more than 4,000 unique visitors to date.
We also recognise the important and complementary role that parents can play in speaking to their children, all through the various phases in their life, guiding them to the right information and keeping them away from drugs. A recent survey by the National Council against Drug Abuse (NCADA) found that
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the majority or 96% of youths who spoke to their parents about drugs and drug abuse were more likely to be deterred from taking drugs. Over the course of the year, CNB will be covering topics, such as the effects of drugs and the importance of family support in popular local magazines like Manja, I-Weekly, 8 Days and NTUC Lifestyle. CNB is also working with MOE to feature e-articles with anti-drug information for parents on platforms, such as the Edumall and Parents in Education portals, and individual school websites.
We have also strengthened early intervention programmes for young drug abusers of various profiles. For example, we collaborated with MSF to introduce casework and counselling for young first-time drug abusers since July 2013 as part of an enhanced supervision scheme. To date, 28 youths aged 14 to 20 have benefited from this. Besides individual counselling and group work, families of these youths are also involved in their rehabilitation.
We will continue to finetune this programme as we believe these low-risk young abusers, with sufficient support, have a good chance of turning over a new leaf and staying away from drugs. Later this year, a Community Rehabilitation Centre for moderate-risk youths will commence operations. It is a residential programme that allows youths to continue their schooling and employment in the day, before returning for counselling and programmes.
Let me touch now on partnering the community to keep Singapore safe and secure. Keeping Singapore safe and secure is a whole-of-community effort that requires support from all stakeholders, as Mr Hri Kumar and Ms Tin Pei Ling have pointed out. Please allow me to provide some updates on how we work with volunteers and the community to prevent re-offending, as well as in other areas.
In our work with ex-offenders, we have found that securing employment, finding accommodation and having support from the family and community are all critical factors in helping ex-offenders reintegrate into society.
Ex-offenders who are gainfully employed are less likely to re-offend. The Singapore Corporation of Rehabilitative Enterprises (SCORE) prepares offenders for employment by providing them with training that is accredited by the Workforce Development Agency (WDA), and other market-relevant skills before their release. SCORE has steadily built up a network of over 3,800 employers from various fields, such as logistics, manufacturing and food and beverage industries, who are all willing to offer ex-offenders a second chance. In 2013, SCORE helped more than 2,000 offenders secure employment before
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their release. This was a 23% increase from 2012. The support from employers to help ex-offenders stay in a job is an important part of our strategy to help ex-offenders rehabilitate and reintegrate into society.
Accommodation and family support are also important factors that support ex-offenders' reintegration efforts. In this regard, the Yellow Ribbon Community Project (YRCP) plays a crucial role in helping families of incarcerated offenders during their term of imprisonment. Piloted in 2010 in just seven grassroots divisions, the YRCP helps these families link up with relevant Government agencies for social assistance and support. They conduct house visits and help to ensure that the bonds between the families and the incarcerated offenders remain intact and that the ex-offender then has a home and family to return to upon release. As of today, the YRCP has expanded to 60 grassroots divisions all over Singapore, involving more than 500 volunteers. Over 1,600 families have benefited from this initiative. In 2014, we will broaden its coverage and extend the YRCP to more divisions.
In 2013, we celebrated the 10th anniversary of the Yellow Ribbon Project (YRP). The YRP has helped raise awareness about the challenges of reintegration, increase the acceptance of ex-offenders and inspire action in the community. Since inception, more than 420,000 members of the community have participated in various Yellow Ribbon activities, such as the Yellow Ribbon Prison Run and Yellow Ribbon Concert. The YRP has also partnered close to 1,000 community agencies and schools to organise and run activities for ex-offenders.
Volunteers and community support are not limited to the rehabilitation sector. We are fortunate that the Home Team can rely on the partnership and involvement of people from all walks of life to keep Singapore safe and secure. They complement our work and are critical in rallying the community quickly when crisis strikes. Our philosophy is that a community comprising individuals committed to the well-being of society, equipped with training and skills, is best placed to take ownership of local issues and assist each other in times of need.
We will continue to build on these partnerships. There are two aspects to our work with the community. First, equipping and engaging. As a starting point, it is important that we equip the community with the relevant information, skills and tools. I am glad to note that many students are coming on board to be equipped with emergency preparedness skills and help share what they have learnt with their fellow schoolmates through the SCDF's Junior Lionhearters' Programme. This was launched in April 2013 to cultivate young ambassadors who generate interest and awareness among their schoolmates, friends and
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families on the importance of emergency preparedness and the need to take individual ownership.
In the case of the Police, they work with schools in the Youth Engagement Programme, which plans activities to engage youths and steer them away from trouble and crime. A very good example of this is the Delta League. Since 2011, the National Crime Prevention Council and Police have organised this community football programme where youths are engaged in sports and other meaningful activities. But off the pitch, the youths interact with Police officers and life coaches, as well as take part in community activities. To date, close to 4,000 youths have participated and benefited from the Delta League.
The second aspect is partnership in action. Residents play a vital role in helping to keep their neighbourhoods safe and secure. Grassroots leaders, volunteers and residents have also taken the initiative to assist Police in the forming of Neighbourhood Watch Groups (NWGs) and Citizens-on-Patrol (COP) groups. To date, more than 7,000 NWGs and 600 COPs have been formed island-wide, helping to watch over their communities and keep them safe and secure. There are also members of the community who do more and regularly serve alongside us in the Civil Defence Auxiliary Unit, Volunteer Special Constabulary and Community Emergency Response Teams.
The effectiveness of the Home Team is the sum total of the efforts of our individual Departments and our partnerships with the community. These community partnerships create a multiplier effect that amplifies the Home Team's ability to keep Singapore safe and secure. Having the right mindset is important. Today, you may be doing your part to help a neighbour in need. Tomorrow, someone else may be doing likewise for you. The Home Team will continue to deepen our engagement with the community, expand the scale and scope of some of the programmes I have just mentioned, and explore new areas of collaboration. I hope that many more will step forward and join us in this endeavour.
Let me now touch on two other issues that Members have raised. Mr Low Thia Khiang has asked about the security and integrity of the Home Team's biometric databases. MHA uses biometric technology and systems for various applications in areas, such as traveller clearance at the Checkpoints.
We recognise the need to safeguard the security and integrity of our Home Team databases. As mentioned earlier by Deputy Prime Minister, cybersecurity is important for us, especially given our inter-connectedness. Hence, we have
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taken a comprehensive approach to ensure the security and integrity of our databases.
First, there are strict controls to ensure that only designated individuals have access to data. These officers are then only allowed to access data that is required for their specific operational need. Our servers are also protected by physical and software measures which are on par with international security standards. These measures are able to quickly detect hacking and raise alerts such that remedial action can be taken immediately. For all the processes I have mentioned, we conduct regular audits and reviews to ensure compliance.
Finally, ICA has a business continuity plan for biometric systems to ensure that critical systems are able to function, even if there is a disruption. We note Mr Low's comments and we will continually review our security policies to ensure that the integrity of personal data is safeguarded. Nevertheless, it is also important for individuals to be alert and careful about sharing personal information and details in cyberspace.
Mr Baey Yam Keng suggested that we replace NRICs at intervals of 20 years for security and other functional reasons. The current practice for Singapore residents is to register for an NRIC at 15 years old, and undergo a re-registration at the age of 30 where they will provide an updated photograph. Since the introduction of the current type of NRIC in 1991, the vast majority of them have remained in good condition after more than 20 years of use. Nevertheless, Mr Baey's suggestion is a valid one. ICA will study the viability of introducing another NRIC re-registration after the age of 30, so that the information captured will be up-to-date. This is especially relevant with longer life expectancy. ICA will also consider a waiver of the NRIC replacement fees for those who face financial difficulties or if their NRICs were damaged due to situations beyond their control, such as accidents or fires.
Mdm Chair, the safety and security we enjoy in Singapore do not come about by chance. We all have a part to play. MHA will continue to be vigilant in the fight against drugs and crime. Together with our community partners, we will strengthen and enhance our capabilities and programmes to remain ready for the challenges ahead.
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The Chairman: We have a bit of time for clarification. Any Member wishes to seek clarification? Mr Hri Kumar.
Mr Hri Kumar Nair: Madam, I would like to thank Deputy Prime Minister for his response to my question about keeping experienced officers within the Force and extending the retirement age. Could I ask for comment on retaining experience within departments? What I mean is that within each department, be it Prisons, border security, SOC, CAD, SCDF, they all call for different skillsets and different experiences and, if there is a regular transfer of officers at the mid or senior levels between these departments, then that sufficient amount of experience would not be built up as well. Will there be any thought towards trying to keep officers within the same department for longer periods so that experience can be built up?
Mr Teo Chee Hean: We do not generally transfer officers across services, say, an SCDF officer to do policing. That does not generally happen. So, the SCDF officers remain within SCDF, by and large. Prisons officers remain within the Prisons service. We sometimes have Police Officers who cross over to, say, the Prisons service. But officers do come together at various times in their career, for example, in MHA Headquarters in, say, the Policy or Operations departments. That is where they will bring their collective knowledge and experience together to help the Ministry manage various cross-cutting issues.
We are also encouraging more cooperation between agencies at the ground level so that they can resolve many of the operational issues and also look at issues from a citizen-centric point of view rather than an agency point of view.
But we do post officers around within each service. The Police, for example, gives its officers a mix of experience between community policing, investigations and also work at the Headquarters to help them understand the broader policy issues that the Police faces. The experience that we gain from keeping officers longer is something which we value, as long as officers continue to be fit and able to contribute. And we think the officers also appreciate this as well.
Assoc Prof Tan Kheng Boon Eugene: Madam, I welcome the Deputy Prime Minister‘s emphasis on resilience as being critical in enabling us to rise above the threat of terrorism. How society responds in the aftermath of discovering a terrorist plot, or worse, after a successful attack, is what really matters, not so much as the discovery of the terrorist plot or the terrorist attack
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itself. I would like to ask the Deputy Prime Minister whether more can be done to deal with the perception that terrorism is solely an issue that concerns only the Malay/Muslim community.
Mr Teo Chee Hean: I would like to make a few points. We look at terrorism as a phenomenon of violent extremism, as a whole. That is what we deal with. We do not look at it as a Malay phenomenon or Muslim phenomenon, but we look at it as a phenomenon of violent extremism.
Hence, when our Religious Rehabilitation Group worked with other agencies internationally to have a seminar here, the focus was on violent extremism and how such ideas are purveyed and enter into people's heads, and they become extremist and violent, and the strategies that can be taken to counter them.
But I must say that our communities here in Singapore post-2001 reacted very positively. That is because we all reached out to each other. The Government had a big part to play, encouraging the communities to come together. But the trust and the integration in our communities over many decades contributed a great deal.
If you look at our housing estates, we have been building trust for many years. With the Ethnic Integration quotas, our housing estates are mixed. So, we do not start off by living in different places. We go to schools together; we live together; we are at the same hawker centres. And that has helped a great deal.
In some countries, after 2001, communities looked at each other with suspicion. Some felt squatted upon, communities feared other communities and looked with suspicion at each other. Whereas here in Singapore, the communities reached out to each other, and said, \"Look, we have a problem. How do we deal with it?\" We dealt with it together.
My own sense is that the community spirit between communities became stronger after that. There are a number of reasons, one of which is that the Muslim community in Singapore took ownership of the issue. The RRG was a very important element in that because they said, \"Look, that is the problem – violent extremism. Let us deal with it. We will deal with it.\" And other communities, seeing that, said, \"Look, this is good. Let us work together on it.\" And trust and confidence were strengthened.
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Mr Vikram Nair: I thank the Deputy Prime Minister for the answer. This is also a follow-up on terrorism, particularly self-radicalisation. It seems to be a simplistic solution. But are any steps being taken to track the sites, for example, that purveys such messages and maybe block access to the sites?
Mr Teo Chee Hean: We will try to block and also to track people who go to those sites. As the Member will know, blocking and prohibiting sites are technologically complex and also not so difficult to circumvent. So, if a person is determined enough, he can access these sites. As Mr Vikram Nair pointed out, some of these sites are really quite toxic because not only do they purvey extremist ideologies, they also are a how-to guide: how to make various kinds of devices which can cause harm to others.
Eventually, I think the inoculation comes from the kind of things that Assoc Prof Eugene Tan was talking about, which is that it starts from the community itself. It is the community we live in and the different communities that we have in Singapore, which can inoculate our young people, particularly, against this kind of extremist tendencies.
I must say that the RRG, MUIS and other groups in Singapore, including our schools, play an important role in helping to inoculate the young people.
Mr Zainal Sapari (Pasir Ris-Punggol):\tDeputy Prime Minister Teo, while I understand the rationale for outsourcing certain Police services to the commercial Auxiliary Police Officers, I have two queries. Will MHA consider allowing Auxiliary Police Officers to be represented by a union? Secondly, how can MHA ensure remuneration packages for the commercial Auxiliary Police Officers are fair and progressive that are commensurate with their skills and productivity level?
Mr S Iswaran: Madam, I thank the Member for his questions. I will take the second part first. In terms of fair remuneration and compensation, it is really a function of skills, productivity and what sort of value-add they deliver, which is why the emphasis has always been on the quality of the service provided which, in turn, is affected by the training and the skills that the officers acquire. That is where our focus is. On the issue of unionisation, I would say that if we are able to achieve the latter, then I think the former would not be as essential.
The Chairman: If there are no other clarifications, Mr Hri Kumar, would you like to withdraw your amendment?
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Mr Hri Kumar Nair: Madam, I would like to thank the Deputy Prime Minister, Second Minister Iswaran and Senior Minister of State Masagos for their answers. Despite all our questions and comments, I should acknowledge that we remain still one of the safest countries to live in. For that, I would like to thank Deputy Prime Minister and his team for their leadership on these issues. With that, Madam, may I have leave to withdraw my amendment?
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $3,769,663,700 for Head P ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $439,215,500 for Head P ordered to stand part of the Development Estimates. (proc text)]
The Chairman: Order. I propose to take the break now.
[(proc text) Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mdm Speaker: Order. I suspend the Sitting and will take the Chair again at 4.05 pm.
Sitting accordingly suspended
at 3.48 pm until 4.05 pm.
Sitting resumed at 4.05 pm
[Mdm Speaker in the Chair]
[(proc text) Debate in Committee of Supply resumed. (proc text)]
[Mdm Speaker in the Chair]
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","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head V (Ministry of Trade and Industry)","subTitle":null,"sectionType":"OS","content":"The Chairman: Head V – Ministry of Trade and Industry. Ms Jessica Tan, I think you have three cuts; take them all together.
Ms Jessica Tan Soon Neo (East Coast): Madam, I beg to move, \"That the total sum to be allocated for Head V of the Estimates be reduced by $100\".
Madam, the underlying assumption for sustainable and quality growth is that Singapore is able to compete, continue to drive growth opportunities and to create quality jobs. Manufacturing continues to be an important contributor to Singapore's economy. With the changing landscape and increased competition from regional markets, and the rise of manufacturing hubs in China and Vietnam, can Singapore's manufacturing sectors stay competitive? What measures are we driving to ensure that manufacturers in Singapore can contribute to and thrive amidst this condition and remain competitive? With our manpower constraints, scarcity of land and cost of energy, can manufacturers in Singapore address these constraints to be able to build the capability and to enable them to address growth opportunities?
I recently spoke to several SME manufacturers who informed me that they were facing challenges in growing their businesses, given the constraints they face, especially with regard to having the right skills to address the opportunities. They have invested in restructuring their business, in making investments in process improvements and technology to streamline their operations and improve productivity. However, they continued to be challenged in getting the right manpower for the business and have to hold back their growth and expansion. While many have advertised and work with agencies to get locals for the jobs, they are still not getting many Singaporeans willing to take on the roles.
A local manufacturer informed me that he had five employees who had accepted the job but did not turn up on the first day of the job. Another employee left after a month because his girlfriend said that she did not like the way he smelled and prefer him to take another job, and he went for a lower paying job.
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Can Singapore continue to differentiate itself with the quality of our infrastructure, our reputation for a stable political climate, flexible business models, robust intellectual property protection and management regime? Will we continue to be able to justify the premium in cost given our branding, reputation for quality and reliability? Are there new growth opportunities in manufacturing that we can leverage these strengths for competitive advantage?
Apart from incentive schemes, what specific development activity is the Government driving to strengthen and transform Singapore's manufacturing sector for continued competitive advantage? What are the areas of new capability, investments in research that Singapore has developed in the manufacturing sector to enable us to stay competitive?
Based on the Global Competitive Index 2013/2014, Singapore remains the second most competitive market and is amongst the three Asian economies in the top 10 markets. We continue to see the top 10 markets dominated by a number of European countries, with Switzerland at the top. An interesting point to note is that strengths in innovation and a strong competitive framework are strengths that the majority of these top 10 markets have in common. Switzerland continues to maintain its top position and stands out for its innovation, quality of its labour and sophistication of its business sector. So, going forward, how we address social and environmental concerns will also be important for Singapore to differentiate our competitiveness and our ability to stay competitive.
The services sector is also the biggest sector for our economy, accounting for 72% of GDP. So, within services, the main segments are wholesale and retail trade, business services, finance and insurance, transport and storage, and information and communications. What is being done to promote the growth of these service sectors in Singapore? With the increasing competition, which are the service clusters that have the most growth potential? What can we do to support Singapore-based companies capitalise and leverage these opportunities? How are we building the relevant skills to support these growth opportunities?
Madam, my second cut on cost of business. While Singapore continues to be a prime investment and business hub, there is increasing concern with the high cost of doing business here. Given our manpower constraints, scarcity of land and our focus to increase real incomes of Singaporeans, we must recognise that Singapore is not a low-cost market and will never be. We,
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therefore, have to ensure that Singapore can continue to deliver real value to differentiate and justify the cost.
The continued focus on restructuring and productivity in this year's Budget highlights the importance of our companies being able to do so. Our focus has been to raise real wages, as well as to drive measures to ensure social mobility and to drive for a fairer and more equitable society. This would mean that we will not be low-cost. While Singapore is not and will not be a low-cost city, we have to recognise that we cannot allow costs to escalate to a point that we out-price ourselves and become uncompetitive. We must continue to differentiate and deliver value to remain attractive.
Apart from manpower costs, land and rentals are also important contributors to business costs. While I agree that we should allow the market forces of demand and supply to determine rental, I do feel that we need to ensure that there are measures to control speculative demand of space which contributes to higher rental.
Can MTI share what measures are being taken to ensure that Singapore remains attractive for doing business? What is MTI doing to support companies in addressing the high costs of doing business as they restructure to improve productivity and innovate to stay competitive? With our increasing cost of doing business in Singapore and competition from regional markets, can Singapore remain an attractive location for MNCs and for companies to leverage Singapore as a hub for their business in Asia?
Madam, my third cut on macroeconomic outlook. There is cautious optimism as the global economy seems to be improving in 2014, supported by the recovery of the US and Eurozone economies, but the uncertainties in the global macro economy still remain. The tightening of the US monetary policy, political uncertainty and emerging market challenges do pose downside risks that could derail the recovery.
So, against this backdrop, our companies in Singapore and our economy are restructuring to improve productivity. While we see sectors like manufacturing and wholesale continuing to improve to support growth, our tight labour market and rising wages could impact our ability for businesses to scale and to grow in the short term.
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What is MTI's assessment of the opportunities in the ASEAN region and the role that Singapore and Singapore businesses can play? How does MTI expect the Singapore economy to perform in 2014? There have been concerns on the increase in household debts in Singapore and the level of consumer leverage. What is MTI's assessment of the risk to the economic outlook of Singapore in 2014?
Mr Gerald Giam Yean Song (Non-Constituency Member): Madam, the Trans-Pacific Partnership (TPP) is an ambitious Free Trade Agreement (FTA) involving 12 Asia-Pacific countries, including the US and Japan. The scope goes beyond removing tariffs to tackling broader environmental, labour and intellectual property rights issues. The IP rights chapter in the TPP has raised much concern among negotiating countries. The US proposals reportedly seek a much more stringent level of IP protection than the WTO standards or even the US-Singapore FTA. They are said to strongly favour American industries and big corporations.
There are worries that the TPP may extend the scope of pharmaceutical patents and delay the sale of generic drugs. This could raise prices of pharmaceuticals in TPP member countries, including Singapore.
Can I ask the Minister: would the TPP directly or indirectly cause an increase in the price of medical drugs in Singapore? Will our patients have to wait longer to obtain affordable, life-saving generic medicines? And what are the concrete steps our negotiators are taking to protect our national interests in this area?
As a major trading nation, it is important for Singapore to be part of the TPP. However, I hope the Minister can assure us that the strategic and macroeconomic benefits of the TPP to businesses will not come at the expense of ordinary Singaporeans. Thank you.
The Chairman: Mrs Lina Chiam, you have two cuts, please take them together.
Mrs Lina Chiam (Non-Constituency Member): Madam, Singapore concluded negotiations with the European Union on an FTA in December 2012. At the same time, ASEAN is in the process of building up the ASEAN Economic
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Community. Around 80% of tariff reductions have been achieved to date ahead of the 2015 deadline.
As we know, the EU and ASEAN were negotiating an FTA between them back in 2007, but talks were suspended. Economic differences between the two regions and within ASEAN were too great. Both parties have indicated that they will resume negotiations when the time is right. Indeed, as ASEAN becomes more integrated as a result of the ASEAN Economic Community, the time may soon be ripe again for FTA negotiations as a bloc.
But Singapore's current situation with its FTAs invokes the situation which economists call the \"spaghetti bowl effect\", where an intertwined mass of FTAs creates a complicated web of rules that could lead to discriminatory trade policy in the Asian region. Singapore is also a negotiating partner in the Trans-Pacific Partnership. All these may complicate the prospects for negotiating future FTAs involving ASEAN as a bloc.
The Singapore People's Party believes that Singapore should prioritise ASEAN as a bloc, and work towards negotiating FTAs as a bloc. This is because in the larger scheme of things, the Singapore market is too small for the major economies to be interested in doing business with us forever. The US, for instance, is arguably more interested in their current FTA negotiations with the EU and with Japan.
Could I ask what the Government's current stance is, with regard to potential bloc-to-bloc FTAs like the EU-ASEAN FTA?
Singaporeans have always been top performers in math and science competitions, but have yet to produce top scientists to challenge the frontiers of basic research. The integration between basic research and application-based engineering know-how is required. We have been pursuing R&D by way of foreign direct investments. We facilitate investments globally for the best technology, but all this remains in the hands of our investors. Our SMEs continue to struggle with low productivity.
Technology will become even more ubiquitous. For example, are we using technology to manage healthcare costs the right way? That is not only a
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healthcare problem. This is economics at play. Some time ago, we proposed a central database of medical records for Singapore for this reason. How do we enable our SMEs to solve some of these questions?
Our biomedical industry growth looks exactly the same as those in other industries – greater production, more sales, more acquisitions. This cannot be the way to succeed. We need to actively participate in scientific breakthroughs. If we can be at the centre of medical breakthroughs, we will attract investments from MNCs and we will naturally be the centre for medical services. Otherwise, we have to compete only on cost. We think, already, our healthcare workers are frustrated with low wages.
This calls for a new economic growth model, geared towards basic research and frontiers of science; one that focuses on new technology development, not just the acquisition of it. We do not want just to facilitate research – we want to be leaders in that field. From a practical point of view, we need big operational changes. A*STAR should step up its role as a developmental agency. Its KPIs should be prioritised.
We will also need to work with institutions to have a broader understanding of cross-industry opportunities. How do we enable digital healthcare services to support the optimisation of resources? The principle is how these issues can be transformed into opportunities for our people.
We must avoid being the Asian version of a Geneva or a Luxembourg. We cannot only be a financial gateway for Asia because we will never be able to compete if the Chinese renminbi takes over as the international currency one day. China will not prioritise Singapore over Shanghai or Hong Kong.
The Chairman: Dr Chia Shi-Lu. Not here. Mr Ong Teng Koon.
Mr Ong Teng Koon (Sembawang): Madam, some members of the public have asked about the outcomes that demonstrate the economic benefits of making R&D investments.
According to the National Survey of R&D 2012, between 1990 and 2012, the money spent by the public sector on R&D grew about ten-fold while businesses' spending on R&D increased fourteen-fold. In the same period, the number of
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research scientists and engineers also increased seven-fold.
Can MTI describe how businesses, especially local SMEs and Singaporeans, have benefited from these R&D investments?
Block 71 at Ayer Rajah Crescent is home to 100 startups. National Research Foundation (NRF) has been supporting this initiative and generously topping up investment by accredited incubators by putting up $5 for every one dollar investment, up to a maximum of $500,000. The Tech startup sector, being an extremely competitive space, Government policies can make a big difference.
I would like to ask the Minister if NRF will continue to support startups financially.
On to my second cut. At the opening of the liquefied natural gas (LNG) terminal last month, Prime Minister Lee shared that Singapore will continue to explore new energy options, such as solar energy, which is renewable, clean and reduces our reliance on imported fuels. The Prime Minister also said that the Government is keen to learn more about solar, in order to be ready to deploy it on a larger scale, as the technology becomes cheaper and more competitive.
As I understand it, the cost of solar has decreased in recent years. From 2008 to 2012, the global average price of solar photovoltaic (PV) modules dropped by about 80%, due to a variety of factors, including solar technology advancements and global manufacturing overcapacity.
Given these developments, what is the Government doing to capitalise on the declining price trend and facilitate the adoption of solar energy? In addition to the environmental benefits, could the Minister also share how the Government's efforts will benefit Singaporeans and businesses?
Mr Liang Eng Hwa (Holland-Bukit Timah): Singapore imports almost all its energy needs and hence will always be subjected to supply risks as well as fluctuations in energy prices.
Over the years, the Government has instituted various policy measures, such as the building of LNG terminals, opening up of energy markets to commercial companies, initiated a wholesale electricity market with spot bidding to enhance energy resilience as well as competitiveness. Last week, the
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Government further announced the building of a second LNG terminal.
Our energy market landscape fosters competition to prevent abnormal profits and provide better services to consumers and businesses. It is also important that we look for alternative energy sources as back-up. In the recent dry spell which also affected our neighbouring country, NEWater and sea water desalination have proven to be good alternatives and add to our water resilience. I would like to ask the Minister where are we in terms of energy diversifications and in harnessing other alternatives like solar power?
Recently, the retail electricity market has been liberalised with the aim to promote efficient supply of competitively-priced electricity. How has this liberalisation in the retail electricity market benefited consumers at large? I would also like to ask the Minister for an update on when we would introduce direct electricity imports.
Dr Lim Wee Kiak (Nee Soon): Mdm Chairperson, many companies have raised concerns about the rising cost of doing business in Singapore, and energy is a significant cost component. Last year, MTI announced that the electricity retail market will be further liberalised this year by lowering the threshold for retail contestability. This will allow smaller consumers to pick their own electricity retailers. Businesses will also be allowed to aggregate demands across different locations to meet the contestability threshold. I would like to ask about the response thus far from the industry and consumers to this initiative. How will consumers benefit from this retail contestability initiative?
Mr Vikram Nair (Sembawang): Mdm Chair, at the official opening of the River Safari last week, Prime Minister Lee said that Singapore needs to be more imaginative about drawing visitors to its shores and refreshing attractions to give tourists an unforgettable experience. He also mentioned that the Government is looking at how to equip workers with the skills, knowledge and courtesies to do well in the tourism sector as well as helping the sector deal with the manpower crunch in Singapore.
We live in an age where there is intensifying competition for tourists. There is a very large variety of destinations to choose from in Asia itself where larger countries with longer histories offer tourists a larger variety of experiences that
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Singapore cannot.
Against this backdrop, what is the outlook for Singapore's tourism sector in 2014? Are there any interesting developments Singapore can look forward to over the next few years? In the face of intensifying global competition for the tourism pie, is MTI taking any steps to assist tourism stakeholders in Singapore to raise their capabilities and deal with issues such as the manpower crunch?
Mr Lim Biow Chuan (Mountbatten): Mdm Chairperson, many Singaporeans see travelling as a form of education where they not only visit the tourist sights of another country, they also learn about the history and culture of that country. For the past three years, during the annual NATAS Fair, consumers had spent about $100 million each year on travel-related expenses. Each time they book a travel package, air tickets or hotel accommodation, they are required to pay deposits to the travel agencies.
The recent closure of Five Stars Travel Pte Ltd has shocked many consumers. According to some media, about 6,000 consumers who had paid deposits to the said travel company were adversely affected as their travel arrangements were disrupted due to the closure of the travel agency. These consumers, being unsecured creditors, have lower priority in claiming refund of their deposits from liquidators of the travel company.
In view of the huge amount of monies being transacted at travel fairs, this current arrangement is unsatisfactory. Consumers who have paid deposits to their travel agencies ought to have better protection for their payments, which, when added up, come to a large sum of money. Even lawyers are prohibited from holding conveyancing monies above $5,000 as they have to pay such deposits into a conveyancing account. I urge MTI to consider amending the law to ensure that deposits paid by consumers to travel agencies are protected when a travel agency is liquidated or suffers business failure.
One option is for every travel agency to provide compulsory insurance against insolvency of travel agencies. Another option is to make each travel agency contribute towards a fund to compensate consumers affected by the liquidation of the said travel agency. This is akin to the Law Society's compensation fund.
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STB must play a more proactive role to protect the thousands of consumers from another failure of a travel agency before consumer confidence in the travel industry is eroded.
The Chairman: Minister Lim.
The Minister for Trade and Industry (Mr Lim Hng Kiang): Mdm Chairperson, first, let me thank Members for their comments and for raising very pertinent issues.
First, let me set out the backdrop. The Singapore economy has performed well despite the very recent global financial crisis. If you look at the last five years, between 2008 and 2013, our economy grew by 5.2% annually.
This economic growth has lifted the incomes of Singaporeans. Real median wages among citizens have increased by about 9% in the five years to 2013. This is higher than the income growth in a number of countries, such as Switzerland, Germany and the UK. This tells us that our efforts to restructure the economy, by moving up the value chain and into new growth sectors, are benefiting Singaporeans.
Our economy grew 4.1% in 2013, supported by strong growth in finance, insurance, and wholesale and retail trade. Our manufacturing sector also expanded at a faster pace, on the back of strong growth in transport engineering and electronics.
Ms Jessica Tan asked how our economy would perform this year. She is right in pointing out the downside risks from monetary tightening in the US, and the economic restructuring in China. The persistent tightness in Singapore's labour market could also weigh on growth in some labour-intensive, domestically-oriented sectors.
Nonetheless, we expect the global economic outlook to improve modestly, supported by the gradual recovery of the US and the Eurozone markets, as well as continued resilience in key ASEAN economies. Against this backdrop, we expect Singapore's economy to grow steadily by 2% to 4% this year.
Ms Jessica Tan also asked about MTI's measures to help businesses cope with rising costs. Our economy is now entering a new phase of development, where our cost structure is higher as our economy matures. We have to cope with this adjustment, as we cannot expect to have a First-World economy with
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Third-World costs.
To grow sustainably, we need to improve productivity by growing our topline and managing costs. Many of our companies understand this and are already transforming to respond to this new reality.
We will support our companies by continuing to expand our economic space overseas. Our companies can capitalise on growth opportunities overseas, particularly in our neighbourhood in the ASEAN region, by leveraging on our network of Free Trade Agreements (FTAs).
Mr Gerald Giam is concerned that Singapore's interests may not be adequately protected as we negotiate with other countries participating in the Trans-Pacific Partnership. Let me assure Mr Giam that Singapore and Singaporeans are at the heart of our FTA negotiations. We proactively consult other Government agencies as well as relevant stakeholders to ensure that Singaporeans benefit from our FTAs with other countries. Our approach to the TPP is no different.
More specifically, Mr Gerald Giam also asked about the trade-off between a strong Intellectual Property (IP) regime versus healthcare cost through generic drugs. A strong IP regime is a critical enabler for Research and Development, and, in fact, our strong IP regime is an important factor why we have succeeded in building up a significant biomedical sciences sector over the last 15 years.
At the same time, keeping drugs affordable for Singaporeans is a very important consideration. Therefore, MTI will work with MOH and other Government agencies to make sure we are able to strike the right balance in our TPP negotiations.
Mrs Lina Chiam alluded to a \"spaghetti bowl\" problem created by overlapping FTAs. Our approach to FTAs has been explained several times. We are committed to multilateral trading systems like the World Trade Organization (WTO). But at the same time, we see regional and bilateral FTAs as being important because they complement the multilateral approach. They allow like-minded and progressive trade partners to move ahead and liberalise earlier.
Mrs Chiam refers to the EU-ASEAN bloc-to-bloc FTA negotiations. As she mentioned in her speech \"this negotiation was initiated in 2007, and after two
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to three years did not get anywhere\". That is the reason why the EU decided to change tack and reverted to a EU-Singapore FTA, and we successfully concluded that in December 2012. The EU is now in the process of negotiating with Vietnam and Malaysia. This approach of EU negotiating with individual ASEAN countries and then, later, putting it together into a regional agreement is very similar to the process that Japan undertook in negotiating with ASEAN. So, it is not unusual for countries, regional blocs like EU, to do so on a country-to-country basis and then put it together later on in a regional bloc.
But the key point I want to make is that in our FTAs, we try to open market access for our companies. Overall, Singapore benefits from the network of FTAs that we have negotiated. We have, indeed, capitalised on these FTA agreements to strengthen our position as a key trading, investment and services hub. Our companies appreciate this and are working with IE Singapore, as well as our trade associations and chambers, to fully utilise our extensive FTA network for preferential market access.
Mdm Chair, in addition to strengthening our trade linkages, we will continue to restructure our economy and to help companies transform the way they operate. Deputy Prime Minister Tharman outlined how we can keep our economy vibrant and create good jobs for Singaporeans.
Let me delve one level deeper and explain our specific strategies for the four broad clusters of our economy, namely, the manufacturing, financial and business services, exportable services and domestic services sectors.
First, let me talk about manufacturing. This sector remains a key growth engine for our economy, providing more than half a million jobs and contributing about a fifth of our GDP last year. In recent years, key manufacturing sectors continued to deliver topline growth even as our cost base increased.
Ms Jessica Tan asked if we remain attractive as a manufacturing hub, given keen regional competition.
The prospects for our manufacturing sector remain bright. Singapore is plugged into the regional manufacturing supply chain and our companies stand to benefit from the growth of manufacturing in China, India and ASEAN. This is only possible because we are continually moving existing clusters up the value chain and have established a competitive niche at the higher end of this value
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chain.
To maintain our competitive advantage in manufacturing, we will continue to sharpen our industry development strategies. First, we will leverage on the strengths that we have built up in traditional sectors, like Precision Engineering, to upgrade and move into adjacent industries, such as Aerospace and Medical Technology (Medtech). In a similar way, in the petrochemicals sector, we have moved into specialty chemicals; in the biomedical sciences sector, into biologics; and in the electronics semiconductor sector, into the fabless segment.
Second, we will invest in R&D to deepen our manufacturing capabilities. We are already tapping on cutting-edge technologies to upgrade existing activities and open up new growth opportunities in manufacturing. Through the $500 million Future of Manufacturing initiative, EDB and A*STAR are helping businesses to develop and adopt such technologies. For example, EDB has worked with GlaxoSmithKline to pilot new technologies like enzymatic and continuous processing techniques. These have enabled the company to reduce its resource requirements, lower its physical footprint and shorten its manufacturing lead time.
Third, we will build up industry capabilities by leveraging on our Institutes of Higher Learning. For example, EDB is supporting the Nanyang Additive Manufacturing Centre, which is a $30 million research facility at NTU equipped with the latest 3D printers capable of printing metal objects and even human tissue. The centre will work closely with businesses through R&D projects to develop new commercial applications for additive manufacturing.
SPRING is also supporting our SMEs to adopt new technologies. Take Lintech Engineering, for example, it has implemented a robotic welding system to automate its oil and gas repair jobs. The effect has been quite dramatic – Lintech has increased its productivity by up to three times and is now better equipped to expand its business. MTI will develop more of such partnerships to build up industry capabilities and expand our talent pool.
Ms Jessica Tan has highlighted manpower constraints as a key issue for the manufacturing sector. EDB is working with industries' stakeholders to develop a pipeline of multi-skilled engineering talent to support the growth of manufacturing. Through initiatives like the Precision Engineering Vocational Continuing Education and Training programme, EDB is grooming a pool of 2,800 master craftsmen to take on higher value, more complex manufacturing operations and leadership responsibilities. This will help the industry recognise
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and reward craftsmen who build up their skills and experience.
Mdm Chairperson, the profile and nature of jobs in manufacturing will change as we restructure and upgrade. Future manufacturing jobs will be highly skilled, multidisciplinary and have high potential for career growth. They will be different from the jobs today. There will be a need for data analytics professionals, supply chain experts, industrial engineers, designers, business managers, and software programmers. In addition, future jobs will require individuals who can integrate multiple skillsets, such as technical knowledge, systems thinking and industry application. Therefore, I strongly urge Singaporeans to look at the prospects of our manufacturing scene. Good jobs are being created and they should take full advantage of these jobs.
Ms Jessica Tan asked about the services clusters with the highest potential for growth and our plans to help companies leverage on these opportunities. Let me address her questions as I go through our strategies for the various service clusters.
I will begin with financial and business services, which provide close to 700,000 jobs and accounted for 28% of our GDP last year. MAS is developing the financial sector by enhancing our strengths in areas, such as trade finance, foreign exchange trading and wealth management. MAS is also working with the industry to build capabilities that facilitate trade and investment in renminbi.
MTI will complement MAS' effort by growing our business services sector. The sector has seen strong growth over the past few years, with the likes of Proctor and Gamble, IBM and other multinationals setting up their regional and even global HQs here.
Ms Jessica Tan asked if Singapore remains an attractive location for MNCs in view of our rising cost. Multinationals sink roots here because we are an attractive Global-Asia Hub for their industry leaders. We are a leading global city with a solid foundation in connectivity, skilled labour, sound governance and liveability, and these help us to compete for new investments.
We will build on these strengths to continue growing our business services cluster. We will also work with MNCs to groom Singaporean leaders from within their ranks, in functions such as business development, sales and marketing, brand management, talent management and supply chain management.
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At the same time, we need to remain open to global talent as they bring perspectives and deep in-market knowledge that are necessary for keeping our cluster innovative and relevant to global markets.
I will now turn to our exportable services cluster, which covers wholesale trade, transportation and storage, and information and communications. Together, these provide about 650,000 jobs and contributed about a quarter of our GDP last year.
We will continue to strengthen existing clusters, such as commodities trading. Singapore is now one of the top commodities trading hub in Asia, with over 400 global trading companies across the energy, metals, minerals and agri-commodities clusters. In 2012, the trading community here generated about $16 billion in local business spending which, in turn, yielded spillover benefits to the rest of our economy, especially in business services.
We will continue to build on our solid foundation and pursue new sectors with strategic growth potential, such as the precious metals cluster.
However, we will need to move quickly, as competition in exportable services is growing. Shanghai, for example, has established a Free Trade Zone which attracted over $140 billion in trade in 2013 – the first year of its initiation.
We are working with businesses to enter new, higher value services clusters that play to the strengths of our workforce. One example is infrastructure services. Asia alone will need more than $10 trillion of infrastructure investments between 2010 and 2020. Singapore is well-positioned to serve the strong demand in Asia with our strengths in urban solutions. Hyflux, for example, has signed a deal valued at over $500 million to build a sea-water desalination plant in the Dahej Special Economic Zone in Gujarat, India.
We will help our businesses access opportunities in this sector by increasing the number of bankable infrastructure projects, through collaboration with multilateral agencies like the Asian Development Bank and World Bank. We will also catalyse deal-making for Singapore companies by organising roundtables where industry stakeholders can discuss infrastructure projects in detail, such as the inaugural Asia Singapore Infrastructure Roundtable held in October last year.
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We will help Singaporeans embark on careers in infrastructure services. For example, IE Singapore is working with our tertiary institutions to initiate an Infrastructure Development Programme to equip our undergraduates with the inter-disciplinary skills needed by the industry. As a first step, IE has also launched an Infrastructure Development Internship programme in collaboration with NUS and nine industry partners.
EDB will also be helping Singaporean professionals develop deep expertise in project development through an executive education programme known as ALPINE – the Asia Leaders Programme in Infrastructure Excellence. This course will be conducted by SMU and the Lee Kuan Yew School of Public Policy. EDB will announce the details soon.
Another exportable service sector that we are developing is in the information and communications cluster. We will capitalise on our established base of business HQs, infocomm infrastructure and research capabilities to grow this sector and, in particular, the data analytics segment. With falling costs of collecting and analysing data, companies across a range of industries are increasingly looking to use \"big data\" to improve on how they serve their customers and, indeed, anticipate their needs. We will build up a pipeline of talent to support the growth of this sector. EDB, for example, is working with stakeholders to grow a pool of 2,500 data analysts by 2017.
The last economic cluster that we are continuing to support is the domestic services sector. The demand for domestic services, such as healthcare, F&B and retail, will increase in tandem with the increase in our population.
The key to sustainable growth in these clusters is to raise productivity and innovate our product offerings. We have embarked on several productivity roadmaps to foster such transformation, but the journey has not been easy for many, especially our SMEs.
However, we need to press on and stay the course in our restructuring efforts. Senior Minister of State Lee Yi Shyan and Minister of State Teo Ser Luck will elaborate on how MTI will continue to support our businesses in doing so.
Mdm Chairperson, the growth areas which I have outlined will provide many jobs with good wage growth potential. MTI, MOM and MOE are working together to prepare Singaporeans for these jobs. We will also enhance
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upgrading and employment support for Singaporean workers as we continue to restructure the economy.
Through these efforts, we will ensure that Singaporeans continue to benefit from our economic growth. The journey ahead will not be easy but we need to stay the course. Our economic growth strategies will enable us to capture the new opportunities in our region and translate them into better jobs for Singaporeans.
Minister Iswaran will now respond to the cuts raised on energy, R&D and tourism.
The Second Minister for Trade and Industry (Mr S Iswaran):\tMdm Chair, may I have your permission to use some slides in the course of my speech?
The Chairman: Yes, please. [Slides were shown to hon Members.]
Mr S Iswaran: Mdm Chairperson, Minister Lim has painted an overarching picture of Singapore's economic landscape. Now, let me elaborate on the opportunities and initiatives specific to R&D, tourism and energy, and address Members' queries in that context.
R&D is an important enabler in our economic ecosystem. It allows our companies to expand their business opportunities, manage their costs and create good jobs for Singaporeans.
We have committed a significant amount of resources, $16.1 billion from FY2011 to FY2015, towards this national R&D effort. This commitment has also catalysed – and this is important - complementary business investment in R&D. In 2012, the private sector invested almost $1.60 in R&D for every dollar from the public sector. In the same year, Singapore businesses increased their R&D expenditure by 16% to $1.3 billion. The overall rate of private sector R&D investment, as demonstrated by this data, is comparable to that of other economies, such as the United Kingdom, France and Germany.
Our investments in technology have strengthened existing clusters, such as precision engineering. A*STAR has established a Nanoimprint Foundry where our research institutes and participating companies collaborate to design special plastics and surfaces for commercial use. For example, Nanoveu, an
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SME, has used these materials in products like EyeFly 3D, a screen protector filter which turns smartphone screens into 3D displays. Since its launch, Nanoveu has sold more than 10,000 pieces of EyeFly 3D and continues to attract local and overseas interest.
R&D also enables our businesses to apply their existing capabilities to adjacent industries. One good example is precision engineering company, Meiban. It started as an injection moulder in the consumer electronics sector, and has since successfully branched out to design and manufacture biomedical devices. Through A*STAR's marine and offshore programme, Meiban has also developed Southeast Asia's longest deep-hole drilling machine. Meiban now undertakes diverse, high-value projects which have added to its topline.
Mr Ong Teng Koon has asked how SMEs benefit from our R&D effort and I think Mrs Lina Chiam was also referring to that obliquely. The answer: the R&D effort has assisted our SMEs in several ways that have enhanced their competitiveness.
First, SMEs need manpower to develop and execute an R&D plan. The Get-Up, which stands for Growing Enterprises through Technology Upgrade programme, serves this purpose and was set up for that reason. This inter-agency initiative – led by A*STAR but it also involves EDB, IE Singapore and SPRING Singapore – has benefited over 400 SMEs in sectors, such as electronics, chemicals and biomedical sciences, with the secondment of 460 A*STAR researchers.
Second, SMEs need time to translate technology and intellectual property (IP) into commercialised products and services. Under the new \"Headstart\" programme that A*STAR has launched, all local SMEs who collaborate with A*STAR will enjoy 18 months of royalty-free and exclusive IP licences for IP arising from the collaboration.
Third, SMEs need technology to be accessible. That is the goal of the Technology Adoption Programme (TAP), which was launched last year. And under this programme, teams of A*STAR intermediaries link SMEs with solution providers to customise and implement technology solutions, as well as conduct training for such technology adoption.
About 200 SMEs in the construction, food manufacturing, aerospace, marine, precision engineering and retail sectors have benefited so far. And to foster networking and even more TAP collaborations, A*STAR is organising its
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inaugural \"SME Day\" next month involving businesses, A*STAR research institutes and technology providers.
One participating company is Feinmetall, which designs and manufactures equipment for the semiconductor industry. Using A*STAR's pictorial recognition technology, Snap2Tell, customers can now scan logos of Feinmetall equipment and access updated instruction manuals immediately instead of relying on hardcopies.
There is scope for us to do more. Hence, A*STAR will expand TAP to the food services, healthcare, logistics and infocomm-media sectors. With this expansion, more companies will be able to leverage on technology to raise productivity and realise more business opportunities.
[Deputy Speaker (Mr Seah Kian Peng) in the Chair]
Our R&D effort has also enhanced Singapore's appeal as a competitive investment location and vibrant technology hub. More MNCs are coming to our shores to collaborate with our local research institutes and technology companies.
This, in turn, has created a diverse range of employment opportunities for Singaporeans. The number of research scientists and engineers in Singapore has grown at a compounded annual rate of 7% over the last 10 years to about 30,000 in 2012. Seventy percent of these research scientists and engineers are locals.
L'Oreal, Danone, Nestle and Abbott are some of the MNCs that have expanded their R&D investments in Singapore. Over the last four years, more than 200 R&D jobs have been created in the food and nutrition sector alone. Mr Lau Jun Jie, who is 35 years old, is an example. He is part of Abbott's sensory analysis department, applying his training and experience to the development of food products.
So, Mrs Lina Chiam should be assured the R&D effort is broad-based. It works with not just MNCs; there are specific programmes that are geared towards our SMEs. It has also created good jobs and opportunities for our businesses.
Sir, let me now turn to the tourism sector. Last year, we welcomed 15.5 million tourists, 7% more than in 2012. These tourists spent $23.5 billion, 2%
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more than the year before. These figures are encouraging, and they were achieved despite business travellers scaling back on spending due to a relatively uncertain economic climate.
STB expects companies to remain cautious in their business travel expenditure in 2014. Mr Vikram Nair asked about the outlook for 2014. STB has forecast visitor arrivals to grow to between 16.3 million and 16.8 million. This is an increase of between 5% and 8% from last year, and tourism receipts to be in the range of $23.8 to $24.6 billion, which is a 2% to 5% increase.
STB will continue to pursue quality tourism growth, by focusing on visitor experience and driving tourist spend. Given our land and manpower constraints, we need to creatively achieve more with less, and invest in both tourism hardware and software.
We start from a position of relative strength, having progressively augmented our tourism assets. Just last week, Prime Minister Lee officially opened the River Safari. Soon, the Sports Hub and the National Art Gallery will be ready.
We will complement such tourism hardware with distinctive content and programming. This will help to differentiate us from competitors and enhance the value derived from existing assets.
Lifestyle events are a good example. Our tourism calendar and capabilities are strengthened by international sporting events like the F1 Singapore Grand Prix, and, from this year, the Women's Tennis Association (WTA) Championship. If you are wondering who that young lady is between Serena Williams and Li Na, she is an RGS tennis player. Her name is Maxine Ng. I think her T-shirt says \"Strong is Beautiful\". Complementary entertainment and business events maximise the tourism and international branding benefits for Singapore. The experience we have gained from hosting such marquee projects also boosts Singaporeans' event management capabilities.
We maintain our standing as a top global venue for the Meetings, Incentives, Conventions and Exhibitions (MICE) sector. This has enabled Singapore to grow a pipeline of quality MICE events which will draw high-spending business travellers. This includes, for the first time in Asia, and as part of the inaugural Singapore Design Week, Maison & Objet Asia, which will be held alongside one of our top tradeshows, the International Furniture Fair Singapore. Over the next few years, the World Confederation of Physical
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Therapy, and the International Society of Magnetic Resonance in Medicine, will also hold their meetings in Singapore for the first time.
Smaller scale, ground-up innovations also make for a vibrant tourism landscape. Last year, we launched the Kickstart Fund to support and test-bed novel ideas with good tourism potential and scalability. The response has been good and STB has received a variety of ideas.
One example is \"The Inside Job\", which will commence its interactive walking tour combining elements of live theatre and adventure. Participants will be taken through precincts, such as Marina Bay and neighbourhoods, where they will encounter in-character actors.
In general, I would encourage all who have exciting and interesting tourism ideas to come forward and jointly develop them with STB.
There are also opportunities to innovate and deliver superior service, despite the manpower constraints that Mr Vikram Nair and other Members have highlighted.
For example, STB and IDA recently concluded a call-for-collaboration for the use of self check-in technology in hotels. So far, about 60 of our hotels have expressed interest. With such technology, hotels can better anticipate the arrival timings and check-in habits of business travellers and other guests. They can then tailor their services and stagger their staffing to provide the best check-in experience for their valued guests, every time. It will also allow hotels to re-deploy manpower to other high-touch customer-facing functions. In other words, they can focus on services that would really matter to their customers.
Travel agents have also been raising their productivity. Last year, I spoke about the National Association of Travel Agents Singapore's (NATAS) skills accreditation framework that aims to raise the capabilities and professionalism of the travel agents industry. Since March 2013, almost 200 individuals have participated in the scheme and about 60 more are undergoing assessment.
Mr Lim Biow Chuan has pointed out that travel agents also need to better protect the interests of consumers. Today, there are about 1,200 travel agents providing a range of services like coach tickets and travel packages. STB licenses them under the Travel Agents Act and Regulations. One of the
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requirements is that TAs must have a minimum capital requirement of $100,000 to ensure that these operators are bona fide.
The incidence of sudden or distressed closures of large travel agents like Five Stars Tours is relatively uncommon. In the past decade, only one other large travel agency closed abruptly and that was in 2006. To some extent, this is unavoidable because travel agencies, like any other business, are subject to risk and business failure. Under such circumstances, customers can usually make claims under travel insurance, or seek redress through the Small Claims Tribunal.
I fully accept Mr Lim's point that customers should be protected and we should look for more ways to do so. Mr Lim has suggested various other ideas to protect consumers' deposits, including compulsory insurance and a compensation fund. STB will study these proposals, as well as the consumer protection practices in other countries, to assess what more can be done in our context. In doing so, I think it is important that we remember that there is a need to balance the protection of consumers' legitimate interests against any additional regulation, and its impact on business cost and, ultimately, the cost to consumers.
On the manpower front, our training institutes like Singapore Hotel and Tourism Education Centre (SHATEC) and our Polytechnics have been working with STB and the industry to review their pre-employment training in light of evolving industry needs.
These industry stakeholders are also keenly aware of the aspirations of young Singaporeans, and the need to offer structured career pathways that can attract and reward those who wish to make tourism their career. One example is Mr Kung Teong Wah, who is 43 years old and graduated from SHATEC more than 20 years ago. He has risen through the ranks to now become the Executive Assistant Manager of Holiday Inn Singapore Atrium.
Our collective efforts to enhance Singapore's tourism hardware, software, manpower capabilities and service quality will have a sustained and positive impact on our quality tourism strategy.
Sir, let me now turn to the energy sector. Our aim is to strike a balance between energy security, economic competitiveness and environmental sustainability. We seek to do so by pricing energy right, avoiding consumption subsidies and fostering a competitive energy market for the benefit of
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businesses and households.
As I announced last year, Energy Market Authority (EMA) has sought to promote more competition in the electricity retail market through the Increased Retail Contestability initiative.
Dr Lim Wee Kiak and Mr Liang Eng Hwa have asked how such measures will benefit consumers. Currently, only about 8,000 large consumers who use more than 10 megawatt-hours (MWh) per month can choose to purchase electricity from electricity retailers through negotiated contracts. This is the contestable segment of our market.
This threshold will be lowered to 8 MWh from 1 April, and then to 4 MWh from 1 October this year. In total, this will allow 15,000 more consumers to choose their electricity retailer and sign on to packages that best suit their needs.
So, who does this specifically benefit? With this change, 15 Town Councils have already signed up for contestability under this initiative. In fact, this was a point that Mr Zaqy Mohamad raised in last year's COS as well. As a result of the 15 Town Councils signing up, I understand that they will collectively enjoy a reduction of at least 10% of the regulated tariff, which works out to an estimated $640,000 in monthly savings.
Companies, especially SMEs, across all sectors will also benefit. They can now aggregate their demand across various locations to meet the lower threshold and choose a retailer who offers the most competitive pricing. Several firms from various sectors, like SMD Manufacturing and Kleen Pak Products, F&B outlets like the Song Fa chain of restaurants, and logistics firms like Huationg, have already done so and they will enjoy cost savings ranging from 3% to 12%.
EMA is studying how to further expand the contestable segment of the market over the next few years to include all consumers, including households. In doing so, EMA will also have to ensure that there are adequate system safeguards even as more businesses and households benefit from greater retail contestability.
We will also continue to provide progressive and targeted assistance to low- and middle-income households through the Utility-Save (U-Save) special payment and quarterly U-Save rebates. This is announced by the Finance Minister in the Budget Statement. For the majority of Singaporeans who live in
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3- and 4-room flats, the rebates will offset around two to three months' worth of utilities, or three to six months' worth of electricity bills.
Energy security is another key priority as we import almost all our energy. Singapore's energy security was given a significant boost when our first LNG terminal on Jurong Island commenced operations in May last year. This allows us to import natural gas from around the world. To meet future demand in a secure manner, we will develop a second LNG terminal to diversify our LNG infrastructure.
And we continue to explore other energy options. Mr Liang Eng Hwa has asked for an update on electricity imports. We are studying how electricity imports can add to our energy mix without compromising the stability and security of our system. EMA is developing the proposed regulatory framework and will be seeking further industry feedback by the end of the year.
We will also do more to encourage the use of renewable energy. This will help reduce our reliance on imported fuel and our carbon footprint.
Among the various renewable energy options, solar has the greatest potential for wider deployment in Singapore. As a principle, rather than subsidise consumption, we have supported R&D and encouraged the market to adopt economically viable forms of renewable energy.
As Mr Ong Teng Koon has noted, recent global developments suggest that solar energy has become more cost-competitive. As a result, we plan to raise the adoption of solar power in our system to 350 Mega-Watt-peak (MWp) by 2020. This is about 5% of 2020 peak electricity demand, a significant increase from the present 15 MWp of installed capacity today.
EDB will work with key Government agencies to aggregate demand for solar deployment across Government buildings and spaces. This \"SolarNova\" programme will also catalyse the growth of the clean-energy sector and create opportunities for Singapore businesses, such as Sunseap, PV World and SolarGy.
As renewable energy sources like solar are intermittent in nature, EMA is reviewing its regulations to ensure our system remains stable, even with greater adoption of renewables. EMA will continue to work with industry to refine the regulatory framework.
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We will also support the use of renewables by continuing to test-bed innovative energy technologies and business models. An example is the deployment of floating photovoltaics on reservoirs to overcome land constraints. In addition, the inter-agency Energy Innovation Programme Office is funding research into technologies to allow the integration of intermittent generation sources into our electricity grid. These initiatives not only create business opportunities for our clean-tech ecosystem but also good jobs for Singaporeans.
Sir, over the next 10 years, we need around 2,400 technical professionals for the energy sector. These are good jobs and we will continue to equip Singaporeans with the skills to fill such jobs.
Ms Katelyn Ng, 25 years old, and Mr Ridhuan Abdullah, 39 years old, are two of the growing pool of Singaporeans who have chosen careers in the energy sector. Ms Katelyn Ng joined Singapore LNG Corporation over two years ago on its Graduate Development Programme. She helped set up the LNG terminal's laboratory and now oversees its operations. Mr Ridhuan Bin Abdullah is a Polytechnic graduate who made a mid-career switch to join Tuas Power. He has since progressed from a Technical Officer to an Assistant Shift Manager at Tuas' $2 billion Tembusu Multi-Utilities Complex. We want to encourage more Singaporeans to embark on a promising career in the energy sector.
Sir, I have outlined my Ministry's and our agencies' major initiatives in R&D, tourism and the energy sector for this year and beyond. These and other measures that MTI, MOM and MOE will be outlining will help us to continue transforming our economy, enable our businesses to seize growth opportunities and create good jobs for Singaporeans.
The Chairman: Minister Iswaran, you mentioned that strong is beautiful. Given the size of our country, I would add that small is beautiful, too.
Dr Lim Wee Kiak: Mr Chairman, I agree with the Government's push towards higher productivity to ensure sustainable economic growth. The National Productivity and Continuing Education Council (NPCEC) was set up in 2010 to drive national productivity. However, productivity growth numbers have been fluctuating. Furthermore, productivity growth has been weak in recent years. Could MTI share the reasons for this and what are we doing to
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ensure we raise national productivity?
We have also seen the Government roll out multiple initiatives to help companies improve productivity. There is a need to ensure that implementation is on track. Could MTI update Members on the number of companies that have implemented productivity projects and the benefits they have reaped, apart from the one that was just mentioned by the Minister?
Each sector has its own unique set of challenges in driving productivity. I am glad to note that the NPCEC has implemented customised solutions for specific sectors. What else is the NPCEC doing to help companies within and across sectors?
The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How): Sir, productivity has not improved in the past several years. This is worrying as Singapore's competitors are not standing still but are improving. Even if we have a lead to begin with, then it would be narrowed. Productivity is critical to our long-term standard of living and improved wages.
In the initial period of foreign manpower tightening, I believe that the response from many companies was to clamour for a return to the status quo of easy access. When that did not happen, companies basically responded in two ways. For those who knew what to do, they rolled up their sleeves and started in earnest to adapt and change. And I believe that many of these are probably now claiming PIC grants.
But money itself is not a sufficient solution. For those who do not know what to do, they see themselves in an increasing state of quiet desperation, and some close shop and die.
It is clear that while curtailing over-reliance on foreign manpower is a necessary step toward encouraging productivity improvement, it is not a sufficient measure. Just because firms do not have easy access to foreign labour does not mean that they naturally know what to do. Processes, job designs, technology, skills, mindsets, culture, must change.
I, therefore, ask for MTI's assessment of the state of know-how of our companies, big and small, in terms of conceiving and implementing productivity improvement measures. What is being done to help companies
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acquire know-how in this area, especially for companies that are finding it a struggle, and what more can be done to encourage them to, indeed, take concrete efforts to do so? Also, is there a sufficient pool of productivity improvement consultants in Singapore that they can draw upon? If not, how could such a pool be built up?
Ms Foo Mee Har (West Coast): Mr Chairman, many Members of this House have spoken about the problems of escalating prices and rents in industrial and commercial properties.
I would like to ask MTI to share details on the supply of new industrial space projected for the next three years, and whether this supply will ease the pressure on commercial property prices and rentals, in the same way that we have seen pressures ease in the residential market. It is critical that the Government retains some strategic levers to influence the market and ensure that Singapore remains competitive and businesses remain sustainable.
It may be time to review the policies on industrial Government land sales. Instead of relying solely on bid prices, qualitative factors, such as economic contribution and quality of jobs created, as well as purpose of development, whether it is for investment or owner-occupation, should all be taken into consideration.
The Government needs to step up its efforts to help effect the necessary structural change needed for more productive land use. They should increase the supply of next-generation industrial facilities that help companies achieve economies of scale and reduce business costs. Developments like JTC Food Hub that provide shared facilities, supported with a full suite of logistics services, can transform industries.
In fact, the competitiveness of selected industries, such as aerospace, biomedical sciences and food manufacturing, can be boosted with specialised land and space for the industry clusters, as seen in recent JTC developments. We should aspire to lead in this area, turning our land constraints to a unique advantage with innovative features.
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With signs of recovery in the global economy and in preparation for the ASEAN Economic Community in 2015, we should also help more companies seize growth opportunities overseas. I would like to ask the Minister to elaborate on support schemes available to help SMEs go international. What help is available to support them to pool their set-up costs collectively and jump-start their operations overseas?
Mr Liang Eng Hwa: Mr Chairman, given the small domestic market in Singapore, we have seen many of our home-bred companies expand overseas and seek new areas of growth. It is a logical strategy for local companies, given the circumstances, and many have, indeed, done well in the regional locations. Successful local brands that come to mind are CapitaLand, BreadTalk, Hyflux, SembCorp and so on, which have, in a way, carried our flag high.
Our aim is to develop more globally competitive companies that are rooted in Singapore and thereby expand our economic space. The Government has been very helpful in directly assisting companies through agencies based in overseas locations, such as IE Singapore, EDB, STB, MAS and Overseas Singaporeans Unit. In addition, there are available schemes, such as Global Company Partnership (GCP) and Market Readiness Assistance (MRA), to assist local companies venturing overseas.
Beyond that, as the Minister has said earlier, the Government has also helped open access through the FTAs. Here, I want to compliment the good work done by IE Singapore. I have received very positive feedback from businesses on how IE Singapore has been a great help to Singapore companies, especially those stationed in Chinese cities. The officers there have solid ground knowledge and insights as well as the necessary contacts and connections to the local business and regulatory establishment. Many of the officers will often go the extra mile to help companies to link up with the right business partners and cutting short the learning curve.
Given the labour constraints in Singapore and our effort to promote internationalisation of our companies, I would like to ask the Minister what are some of the high-growth markets that companies can expand into and how is MTI working with companies to make inroads there. Also, I would like to find out from the Minister what are the common challenges faced by companies going global. What more and how differently can MTI work with the private
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sector to address these challenges?
Mr Teo Siong Seng (Nominated Member) (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, Members of Parliament, good afternoon to all. I am the Immediate Past President of the Singapore Chinese Chamber of Commerce & Industry and the Managing Director of Pacific International Lines. The key points of my speech today are how to determine the value-add and productivity of business, and how to preserve traditional businesses and help them to grow.
A number of SCCCI's pre-Budget wish-lists, based on our Survey findings, have found responses in this year's Budget, especially in the fine-tuning of schemes like the Productivity & Innovation Credit (PIC) and the Innovation & Capability Voucher (ICV), to assist local enterprises in improving their productivity and alleviating their cash flow pressures. However, some small business owners told me that the Government assistance schemes mainly benefit profitable companies and of a certain size. The requirements for most of these assistance schemes are unattainable by micro-enterprises. Moreover, their most pressing needs remain unsolved, especially with regard to escalating rentals and manpower shortage. These are problems mostly encountered by traditional businesses, neighbourhood shops, hawker centres, food processing, timber, glass, F&B and the services sector in general.
How can we change the predicament faced by these small businesses at root source? I have long thought about this. To this very day, the Government has been the prime mover of Singapore's economic development, steering Singapore towards the path of industrial upgrading and transformation. Some high value-added and high-technology industries would be well taken care of – receiving all kinds of preferential treatment for land allocation, tax holidays, financing and application of high-tech solutions. On the contrary, assistance provided to the SMEs and traditional businesses is very peripheral and many assistance schemes come with a slew of conditions, making them almost impossible for SMEs, especially micro-enterprises, to enjoy.
Recently, Prime Minister Lee Hsien Loong said this in an interview, in Mandarin, with the Chinese weekly magazine, New Century: \"In balancing the two needs, to be competitive as well as to take care of the people, Singapore needs to do somewhat more to tilt towards the latter. As competition gets fiercer, the middle- and lower-income will need more attention. If you go too much towards competitiveness, you lose that cohesion and sense of being
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Singaporeans together.\" Thus, I would like to understand how MTI determines that a particular industry belongs to the high value-added category, or how the productivity of a particular industry is evaluated. Based on current calculations, some high value-added industries will have very preferential treatment in doing business, but those deemed low value-added, especially those belonging to traditional businesses, would never become high value-added no matter how hard they try to upgrade and innovate. A slab of bean curd, a bowl of bak kut teh, one plate of char kway teow and one ang ku kueh can never be equated to a computer chip in terms of value. However, in terms of social acceptance and cohesion, such traditional businesses can never be weighed by monetary considerations.
Similarly, how does the Government measure a company's productivity? If we were to measure based on unit value of production, certain small workshops from the services sector would find it difficult to continue improving their efficiency. For example, while small printing outfits specialised in printing name cards, invitations, signs and advertisements can make use of computer software, they are unable to take advantage of mechanisation and high-tech solutions due to the customised nature of the business and because they deal in small quantities. Although their productivity is not high, businessmen and working people still require these timely services.
According to the Government agencies' current calculations, some small enterprises are \"doomed\" to belong to the low value-added industries. Although these industries may not be as prominent in economic performance, they provide the means of livelihood for many families. Many old and established businesses have helped to raise two or three generations of Singaporeans; they can be said to symbolise the original flavours of Singapore, and have become an integral part of Singapore culture. They are still struggling to survive. Thus, I feel that MTI should look after the needs of the SMEs and micro-enterprises when they draw up industrial policies. This is not only my personal view, but represents the voice of many SMEs in Singapore.
The most classic example is that some qualifying conditions attached to the PIC prevent many micro-enterprises from leveraging on the cash payout portion of the PIC. PIC has a prerequisite where companies need to have at least three local CPF-paying employees. Some family-operated businesses are unable to qualify and they are unable to recruit workers. Because of their low profit margins, they are also unable to fully enjoy the cap of 400% for enhanced tax deductions. Most SMEs are strapped for cash. The PIC cash payout, ICV and PIC Bonus are all most helpful to them, but this all depends if they qualify in the
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first place.
Ninety percent of Singapore's local enterprises are SMEs. Owing to the existence of these SMEs, MNCs can operate in Singapore's business environment with ease. SMEs also provide a wide range of services and help Singapore to gain its stature of being a liveable city. The services sector accounts for a large number of these SMEs. According to the World Economic Forum Global Competitiveness Report 2013-2014, out of 148 countries and regions, Singapore ranked number two for three consecutive years; but in the area of Business Sophistication, the ranking dropped from number 14 to number 17 this year, and the Innovation level also went down one notch from number eight to number nine. Business sophistication and innovation levels have dipped, reminding us that we ought to pay more attention to SMEs' survival and growth.
Social stability can only be achieved if people can meet their basic needs in life and in their work, especially among blue-collar workers and workers in the services sector. If SMEs and micro-enterprises have the prospects of growth, young people can be attracted to join them and the call to improve productivity becomes more of a reality than a theoretical notion. This is also related to policy planning concerning education, manpower, business costs and business infrastructure.
As I mentioned in the Budget Debate for 2011, Government assistance schemes are like carrots hanging high. If they are hung up too high, the SMEs cannot consume them. I mentioned this again in November 2012 and the problem was raised for a third time during the 2013 Budget Debate. Later, the Minister said that there are carrots everywhere on the ground for SMEs to pick up and eat, and even provided a telephone number for SMEs to call if the rabbits are keen to eat the carrots. We called this telephone number and the receptionist took down the contact, promising that a consultant would contact us. Actually, the Government does provide many carrots; however, they are not strewn on the ground but hung on trees. Big rabbits have no problem accessing the carrots, but the small rabbits that are jumping around still cannot eat a single carrot.
Having said that, I would still urge the Government to set up a coordinating agency focusing on SME matters. Currently, the SME Centre@SCCCI is putting all its efforts into promoting the Government assistance schemes. However, we keep running into problems during the implementation process because of the need to coordinate with multiple agencies. Moreover, dealing with one Government agency would not be effective because Government departments
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need to work within their own boundaries. In fact, many of our civil servants are very effective \"goalkeepers\" for the Government.
The Chamber can only be a channel for communication and a feedback channel. Businessmen still require a decision-making organisation with an in-depth understanding of SMEs' operations and which can set and promote policies based on SMEs' perspectives and coordinate with other agencies to take care of the needs of SMEs and micro-enterprises. This recommendation has been raised time and again, but I wish to raise it once again to help local enterprises.
Budget 2014 will be set in motion and I earnestly hope that this beautifully presented Budget could bring sufficient benefits to more small business owners.
Assoc Prof Tan Kheng Boon Eugene (Nominated Member): Sir, there is growing empirical evidence that points to corporate social responsibility (CSR) making a significant positive contribution to national competitiveness.
Countries like Denmark, Sweden and the United Kingdom promote their homegrown companies overseas through leveraging on CSR as a selling point. CSR becomes a quality assurance of best and responsible practices at a time where values matter just as much as value.
The European Commission defines CSR as \"the responsibility of enterprises for their impacts on society\". To fully meet their social responsibility, enterprises \"should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders\".
We should consciously use CSR as a strategic differentiator and as a key competitiveness instrument in the economic arena. This leverages on Singapore's brand reputation as a country with a strong anti-corruption stance, high performance standards, and ethical leadership.
However, we will need a national policy on CSR to catalyse the growth and development of CSR here. The national policy can be the roadmap, a framework, by which CSR can grow and develop to enhance Singapore's export competitiveness.
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We need to be cognisant of the growing CSR movement in the advanced economies and globally, and how that will impact upon us.
With the development of global norms and guidelines on responsible business conduct, such as the UN Global Compact and ISO 26000 Guidance Standard, CSR – if not appropriately managed – could, in time, operate as a non-tariff trade impediment and eat into Singapore's export competitiveness.
I urge the Government, which has been a promoter and practitioner of CSR, to consider developing a national policy for CSR.
Mr Inderjit Singh (Ang Mo Kio): Mr Chairman, instead of making a speech, I decided to refer the Minister for Trade and Industry to the speech that I made during the Budget Debate. It was specifically covering the issues businesses face in the restructuring efforts that we are putting in place. If we listened to the tone of debate in this House and the speeches that have been made, many of the Members of Parliament, whether elected or nominated, who come from the business world have one tone, which is quite different from some of the Members of Parliament who may not have the business experience. The tone is that the rate of restructuring that we desire is hurting many companies.
So, I really hope that the Minister for Trade and Industry, together with the Finance Minister, can relook at the rate. There is no doubt that we need to make productivity improvements and future growth needs to be productivity-driven. But the rate at which we are doing is going to hurt many companies that could have made it in a bit of a longer term. They can be hurt so badly that they would not even cross the hurdle and end up folding. As I mentioned during my speech, we are going to end up in a situation where companies fold and jobs would be lost, and I think the situation could be very serious.
During the debate, I had spoken about a few things. I want to, again, highlight \"cost\". Immediately after I made the speech about the cost of doing business and cost of living, the Economist Intelligence Unit (EIU) report came out and Singapore was ranked as the most expensive city in the world. If there is a measure of cost of doing business, I think we would also end up as one of
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the highest cost in the world right now.
The situation is such that cost has gone too high. If we can address the cost issue, I think we would have worried less about the types of payment that we have to make in PIC and many other grants that we are making. In fact, if you look at the rate of productivity improvement that companies have made, it is not so impressive in the last three years, simply because any improvements that they made have been lost in the cost increases that came about in the last couple of years. Let us say, if we failed to address the issue of cost, the productivity drive that we are trying to achieve will be a lost cause.
Many Members have also raised issues about JTC and the Government's land divestment policies. I urge the Minister, this time, to rethink about JTC's share drop of 18% to 3% of the rental market. It has been a big change and I think, at 18% to 20% share, we could have some influence on the rentals – I am not saying that you set low prices – we could maybe put in controls like having companies to graduate from a JTC rented factory that has a lower cost after a certain number of years. But if we do not even have an opportunity for companies to start in low-cost facilities, they will never get started. So, I hope that we can reverse the policy that we have already made in this area.
I have one specific suggestion to make on the PIC. It is an excellent scheme. I think the companies which are tapping on it are benefiting. Many small companies, as we heard from Members, cannot access this; they have problems. In addition to the six areas, innovation is key. And I think innovation does not have to be innovation in a product or service. Innovation can come also in a business model or business process improvement. If we can add this as one of the initiatives that companies take to be eligible for grants, I think that will help many companies. In fact, many of the small companies that Mr Teo talked about need business process re-engineering for them to be able to survive in this environment. If we can tweak the system a bit, I hope that we can include this as one of the measures that companies are eligible for.
Mr Vikram Nair: Mr Chairman, one of the sectors that has been hardest hit by the economic restructuring has been the SME sector. From Mr Inderjit Singh's speech and Mr Teo's speech earlier, we get very much the experience of business people. But I also understand that the Ministry overseeing this, MTI, has also been doing a great deal to assist these businesses and there have also been many engagement sessions with various SMEs and industry associations. I am interested to know if MTI could update this House on what sort of views
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and insights these engagements have yielded, how many of the SMEs at these engagement sessions are aware of the assistance that is available and how many of them are making use of this assistance.
The Chairman: Mr Zaqy Mohamad, you can take your two cuts together.
Mr Zaqy Mohamad (Chua Chu Kang): Mr Chairman, MTI and SPRING launched the SME Workgroup last year. I was fortunate to have the benefit of being involved in some of the dialogues. I found it a valuable process where we not only get to share with the SMEs, but also to make them better aware of the scope of the various schemes. This is useful for those harder-to-reach groups, as I have mentioned in my Budget speech, to look into how they can adopt the PIC or PIC+. During the Budget debate, I had also covered at length how the smaller SMEs may be an insulated group, and why we may need to take a more hands-on approach to try to aggregate demand and drive productivity collectively across groupings or supply chains. The SME dialogues, therefore, offer an opportunity to reach out to the small business communities and this will complement the SME satellites that were established across Singapore to reach out to the SMEs. I commend SPRING and MTI for this initiative.
I would like to ask the Minister on the progress of the SME Workgroup to date and what are some of the issues that the SMEs have raised through this process. Based on these concerns, what policy changes can we accept that are aimed at supporting SMEs through the economic restructuring process, and what role will the SME Workgroup play in the review and the execution of these policies?
Mr Chairman, let me continue to my next cut on managing rising business costs for SMEs.
Many other Members have spoken at length about this. However, the challenging business environment has also meant that there is concern whether the micro-SMEs and traditional businesses will go out of business in this new transformed economy that we are going for. In fact, overall, the challenging environment of slow economic growth and rising business costs remains a concern for many SMEs. Labour tightening has meant higher wage expectations to attract local talent while increased foreign worker levies and rising rentals have impacted the competitiveness of many businesses.
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Personally, I support the increase in CPF contributions for our workers, especially the seniors, but this would also add to the cost factors.
With such high cost, I fear that Singapore may lose its competitiveness. We have done well in keeping corporate taxes and higher-tier income taxes low, but there are also many cost levers that have also gone up in recent years which the Government needs to do better to keep in check. My Budget Debate speech touched on the setting up of a Cost Competitiveness Review Committee, as was proposed by the Member, Mr Inderjit Singh. I hope that the Ministry can seriously consider this in an effort to improve our cost competitiveness as a Business Hub and address many Singaporeans' concerns on cost of living and affordability. We need more concrete strategies and initiatives to manage our high-cost environment. More needs to be done to also address public fears that they will not be able to retire comfortably or whether they can still afford to live in Singapore. Thus, it is about time we do a holistic view of all direct and indirect contributions to business and living costs in Singapore. I hope we can take a consultative approach, with inputs from business associations and consumers, and make these findings and recommendations public and have a review panel that is inclusive.
For the short term, how can the Government help SMEs manage business costs better, especially in aspects, such as rental cost, which is driven by market forces and Singapore's land scarcity? Given the scarcity of land, what can we do better to manage rental cost for our commercial, industrial and retail sectors?
But specific to the retail sector, many have raised concerns that a number of landlords charge a percentage of revenue income, in addition to base rent. This percentage is set based on the ability to access a company's point of sale system to maximise rent charges depending on how successful your business is. This practice dampens entrepreneurship because the entrepreneur is effectively working for the landlord, especially when landlords take the share of revenue without having invested into the business. There is also a lack of transparency on what percentage each retailer is charged, even within the same location. I would like to propose that we establish a more transparent rental benchmark for the retail sector. For such a benchmark to be useful, it should include what various landlords charge, in terms of base rent, plus the percentage range of the revenue income wherever this is practised. What I hope is for businesses to be given a fairer, more transparent view of the rental landscape here in Singapore, and I believe that transparencies should go both ways between retailers and the landlords, and not just one way, as it is today.
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Mr R Dhinakaran (Nominated Member): Sir, I want to speak on a very real issue that is affecting businesses here, similar to what Mr Inderjit Singh and Mr Zaqy said just now. I am going to reiterate more or less the same points. Rental is today one of the biggest cost items. Rental has risen at rates which no industry has grown over the past decade. JTC offers affordable property for rentals which help the businesses. But with the JTC and other landlords moving their assets to REITs, whose sole motive is to enhance the returns for REIT holders, the increase in rental has been their only objective. With the limited land supply, rents have been soaring, making businesses unviable over the decade. Every business has grown and given almost all or more of their gains from growth to their landlords as rent, literally working for the landlords. I would like to question if it is worthy to emulate the practice of REITs in a land-scare country like ours. Are REITs sustainable? Or should I ask, should businesses be sustainable if REITs are, indeed, a necessity?
Another issue is regarding landlords. With no check on unfair practices by landlords, and complete access to tenants' sales by landlords, we are providing the landlords an infinite ability to increase the rents, thereby making the tenants work for the profitability of the landlords only. As an example, food retail space rents have a variable component linked to traffic. With the closing of the Budget Terminal, and the traffic moving to Terminal 2, rents have increased suddenly. Is it fair to equate the Budget Terminal passenger purchasing power with other terminals and seeking higher rentals? Is there a mechanism to rationalise or put a check on what yield a landlord is justified to ask?
Mr Yee Jenn Jong (Non-Constituency Member): SMEs have borne much pain from a tight labour market and continuously higher industrial and commercial rents.
Supporting SMEs is vital to lift productivity across a huge swathe of our economy. In Germany and Switzerland, SMEs are celebrated as drivers of exports and economic growth. Some of their mid-sized companies have world-class capabilities and are global leaders in their fields. We should aim to help some of our home-grown companies become global leaders.
First, I echo the concerns of Members who have called for attention on industrial and commercial rents. We have already lost the ability to manage rental costs, having ceded buildings that the Government once controlled to
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REITS, which now dominate the market. In commercial retail, REITS, with their huge collective hold on the market, can force up prices, sometimes steeply, with each renewal. I call on the Government to look at intervention measures, including having more industrial space of its own, to set desired rental benchmarks and to provide checks on the rental practices of REITs in the malls, as some Members have mentioned earlier.
Next, on financing. MLPs have provided 3,500 loans to small companies over the last two years. Even with the Government's increased risk share, banks may still not be willing to lend to start-ups with short track records. MTI had said it does not monitor the success rate of loan applications for MLPs. I hope SPRING can work with banks to raise the awareness of MLPs and other schemes, and monitor the success rate of applications. It could intervene should banks be found to remain unduly cautious.
There are also many SME schemes administered by different Government agencies. The range of schemes is daunting and often difficult for the \"小白兔\" or little rabbit type of small companies Mr Teo Siong Seng just spoke about, to take up.
I am concerned that some schemes are too prescriptive. My colleague, Mr Giam, had, in his Budget speech, cited the example under IPG, where IDA pre-qualifies vendors for sectoral solutions under iSPRINT.
SMEs may be limited to these vendors if they want a fuss-free way to tap on IPG funds. SMEs sometimes know what solution they want. A pre-qualified list may restrict the development of new innovative solutions.
I declare that I had used grants from various agencies previously. Other than PIC, I have found the rest challenging in terms of application, approval wait time, making claims and writing of reports.
Perhaps, we can learn from the PIC. PIC benefited from much publicity. Can we \"push\" schemes to SMEs by requiring the completion of a simple questionnaire in the annual filing to ACRA? This questionnaire could ask about planned investments in training, software, automation and so on that are not receiving scheme support. Based on these responses, forms for the relevant schemes or SME Centre officers could be despatched to the companies.
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Ms Tin Pei Ling (Marine Parade): Sir, I have spoken about how many SMEs have been under immense pressure from the economic restructuring during my Budget Debate speech on Tuesday. As the reality of curbs on foreign manpower, tight local labour market and rising operational cost sets in, businesses can only look to innovation and increases in productivity for a way out. I would agree with the hon Member Mr Teo Siong Seng about small and micro businesses. These businesses, especially those owned or run by people who tend to be older and have little education, are most squeezed and they are very much in need of help. Many of them work from dawn to dusk and because they had low education, they do not have the free time, the energy and the know-how to transform, and they are also not clear how the Government can help them. I had illustrated this with an example in my Budget Debate speech on Tuesday.
As we transform, we cannot leave them behind. Hence, with the plethora of programmes available, I would like to ask how the Ministry intends to hand hold and link up these SMEs, especially the small and micro businesses, through the transformation – for example, helping them with horizon scanning of suitable innovations, technologies, best practices, hand holding them through the implementation of these improvements and helping them to develop new niche areas and move into growth industries.
In terms of effective outreach, could the Ministry proactively translate material and training courses into different languages, for example, in our Mother Tongues – Chinese, Malay and Tamil – so that many non-English speaking bosses and employees can better understand and make use of the help available? I understand that one Continuing Education and Training (CET) Centre, the Human Capital Singapore, has received warm responses from non-English speaking business owners who attended its classes where the Chinese versions of these courses were rolled out. These owners would otherwise not have been able to benefit or to understand what the Government has for them.
I was also told that there was an observable change in attitude and a greater understanding in acceptance of the Government's intention because of the training. Perhaps, similarly, the CETs and MTI could work with self-help groups, such as MENDAKI, to reach out to these CET centres to develop their courses in different languages so that some of these entrepreneurial communities – these
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micro and small businesses – can benefit from the schemes that we have.
Finally, for those who tried very hard but eventually could not sustain their businesses, would the Ministry consider an employment guarantee programme, similar to the European Youth Guarantee programme, for the displaced SME owners and employees so as to minimise their pain and structural unemployment. We already have many good programmes and funding in place, so this programme is merely an additional and a synergistic step of ensuring that these displaced workers and owners will not be left in the lurch.
The Chairman: Dr Chia Shi-Lu. Not present. Mr Chen Show Mao.
Mr Chen Show Mao (Aljunied): Sir, the Labour Force Survey tells us that more than 41,000 residents over the age of 50 are classified as under-employed, meaning that they work part-time but would like to work more. Six thousand persons aged over 50 are classified as discouraged due to reasons of perceived discrimination, such as due to age, so that they have become demoralised in their job search and have stopped looking for work. In total, over 51,000 persons over the age of 50, with tertiary qualifications, are economically inactive.
A great reservoir of experience, talent and drive resides in our seniors. Many seniors face difficulties, however, including ageism, when seeking to re-enter full-time employment after even a short break in working. Many have given up the search altogether. Perhaps, assistance may be provided to them as they pursue another option of returning to economic activity – that of becoming entrepreneurs.
Sir, entrepreneurship is not for everyone. Nor would it by itself solve the under-employment problem among seniors. But it is an option that more seniors may wish to explore.
To quote Mr Geoffrey Kung, the Secretary of the REVERSE Cooperative for seniors, \"Planning for seniors to return to work requires an understanding of their lifestyles and aspirations... we need a different system of compensation and motivation.\"
Whether it is launching a firm with world-scale ambitions, a micro-business or even a one-person consultancy, entrepreneurship holds many attractions for seniors. It offers the prospect of more flexibility in hours, the fulfilment of life
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goals and a longer period of active engaged work. It even allows seniors to command a premium for commercial experience in their chosen fields, as ageism may be less of an obstacle when it comes to winning business versus getting hired.
Sir, we welcome the lifting of the age restriction of 26 years or younger for ACE start-up grants since 2012. But newly-minted older entrepreneurs face other challenges. Being self-employed means they cannot accumulate Medisave and medical expenses are more of a concern for older persons.
Another challenge is that, on the whole, older persons may be less IT-literate, that is, in information technology. This is borne out by an MDA survey of IT and Internet literacy across various age bands.
Sir, many SME and entrepreneur support schemes already exist and available to entrepreneurs irrespective of age. Perhaps, the Ministry could consider measures targeting seniors to raise their awareness about the entrepreneurship option, about available business opportunities, such as those in the silver industries, and to redress the deterrence posed by age-specific factors. For instance, the Government may consider special Medisave top-ups and free ICT training in the first three years of business operation for older entrepreneurs. Also, perhaps, a special part of the MLP (micro-loan programme) or CIP (Co-investment Programme) funds could be set aside for funding entrepreneurs aged above 50.
The most rewarding efforts may involve working with different Ministries to provide better support for self-employed workers and freelancers in our economy, as some Members of this House and members of the public have urged, as in this letter today to the newspapers: \"A thriving environment for self employment and freelance work is necessary to breed entrepreneurship.\"
The Chairman:\tMr Chen, please round up your speech.
Mr Chen Show Mao: Yes. Sir, I am 53 years old this year. With the right support, a Singaporean senior may become the next Ray Kroc, who launched the McDonald's corporation, as we know it, when he was my age.
Mr Png Eng Huat (Hougang): The timeshare industry is known for its hard-sell tactics and scams associated with it. It accounts for one of the top 10
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industries with the most number of complaints made with CASE for three consecutive years from 2011 to 2013.
Sir, errant timeshare companies must be brought to task or stopped from operating here because they will scam the victims over and over again. One of their modus operandi includes getting another company to contact existing timeshare customers to offer assistance to terminate, sell, rent or dispose of their existing contracts for a fee. More often than not, these customers will fall victim to another scam and end up poorer instead. Some of these errant companies move part of their operations overseas which makes local scrutiny and enforcement difficult. Some of these operations are just outright scams haunting victims and authorities – catch me if you can!
Singaporeans are avid travellers. Customers of timeshare companies are not out to make a quick buck. I urge the Minister to look into tightening the regulation to prevent such black sheep companies and their affiliates from scamming victims here with impunity.
Come 1 April 2014, the Amendments to the Consumer Protection (Fair Trading) Act will give consumers greater protection for timeshare and long-term holiday products. Would the Minister also consider further regulations to cover existing timeshare customers so as to give them a course for redress? Currently, such customers can only file their complaints with CASE or take legal action against the timeshare companies on their own accord and costs. The Small Claims Tribunal does not handle disputes regarding timeshare agreements, according to the CASE website.
The Senior Minister of State for Trade and Industry (Mr Lee Yi Shyan): Mr Chairman, may I have your permission to display some slides on the LED screens later on in my speech. May I also add my thanks to the various Members who have spoken on the various issues regarding our economic restructuring.
Minister Lim Hng Kiang has highlighted the need to stay on course in our economic restructuring. We need to press on with our productivity efforts. Companies need to transform and evolve themselves with business models commensurate with Singapore's cost structure. Many need to find new markets here and overseas to grow their profits.
Mr Heng Chee How and Dr Lim Wee Kiak asked about the progress of our productivity drive. Since 2010, our national productivity growth has averaged
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2.7% per year. This is within our target of 2% to 3% per year. However, the growth was front-loaded due to the strong cyclical recovery in 2010, and became weaker subsequently.
At the sectoral level, some sectors are doing better than the national average. Precision engineering and transport engineering, for instance, saw good productivity growth. Sectors which performed below the national average included construction. These sectors added manpower faster than they could raise output.
Our goal, therefore, is to help the leading sectors grow even more, and the laggards to catch up. Productivity improvement is a long-term undertaking. This is nearly an inside-out process. To do so, we have taken a sectoral and broad-based approach.
Since 2010, the National Productivity and Continuing Education Council (NPCEC) has been working with the industry to develop and implement sector-specific productivity roadmaps. Fifteen roadmaps out of 16 priority sectors have been endorsed. These roadmaps seek to build capabilities and address weaknesses in the sectors' eco-systems. We also have productivity consultants to help companies acquire the know-how to implement productivity initiatives. To date, 17,000 companies have benefited.
To complement the NPCEC initiatives, we also have broad-based enablers, such as the Productivity and Innovation Credit (PIC). PIC has helped about 40% of active companies in 2013. This was discussed extensively by DPM Tharman in his round-up speech.
Mr Chairman, may I now speak in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Mr Teo Siong Seng asked what determines the value-add and productivity of sectors or firm. He also asked how we can help to develop our traditional sectors. Traditional sectors like food services and food manufacturing are, in fact, our NPCEC priority sectors. The Singapore Food Manufacturers' Association, SPRING and the NPCEC are working hand-in-hand to raise the sector's productivity and capabilities, while helping companies and workers retain precious traditional skills.
To put it simply, productivity is defined as value-add per worker. To increase value-add, a company has to increase its operating profit, or EBITDA,
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and workers' wages. In even simpler terms, it means the more profitable a company is, the more productive it can be.
Of course, the price of a piece of beancurd cannot be compared to a computer chip. But I know of many famous local hawkers who have made a name for themselves using their own unique recipes and thereby attracting a steady stream of customers every day. From the fried Hokkien mee at Upper Changi Road, to the frog leg porridge at Geylang, to the bak kut teh at Balestier Road, and to the Hainanese chicken rice at Thomson Road. Because their business is good, they charge more for their food and they make a higher profit. As a result, their productivity is higher than their peers. And this is what they call the high price, high profit and high productivity – the three high \"Ps\" – in the traditional food industry.
Apart from these examples, there are others that have embraced productivity. Many local companies have started out as food retailers but later moved into food manufacturing. For instance, Bengawan Solo, which has come a long way from the days of making traditional ang ku kueh by hand to automating the process; BreadTalk used to make bread by hand and now has a central kitchen; Tee Yih Jia, no longer makes roti prata by hand and has instead gone the automation route. These companies' foresight and ability to seek out and analyse opportunities have brought them much success and enabled them to enjoy a stable growth for years.
Let me take Polar Puffs and Cakes as an example. It used to be a traditional cafe and how many pieces it could sell depended on how fast the chefs could make them, and also the number of customers patronising its cafe.
To grow such a business model, there are only two ways – open more outlets, and hire more kitchen staff. However, this is the traditional way. Many people are, in fact, doing it, but this is certainly not the most profitable way. In the 1980s, Polar changed its business model. Instead of relying on manual production, they set up a central kitchen and gradually established its supply chain and sales outlets. Since then, its growth was no longer restricted by their small shop front and the number of staff it had. It then opened up a path for healthy and stable growth.
Today, Polar Cafe is partnering a number of petrol kiosks. They are looking for more development opportunities in the B2B space. They are now exploring
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the possibilities of supplying to airlines, catering companies, chain restaurants, hotels as well as local and overseas supermarkets. If their expansion plans come to fruition, they expect to achieve 30% sales growth in three years. To expand their ability to do so, they have purchased new machineries to produce consistently delicious pastries.
Over the past few days, many Members had raised the issue of high rental cost. Polar is a good example of how a company has changed with the times and adopted a different business model enabling it to move past the reliance on shop front and staff to increase its top line. Competition is stiff in the F&B industry. So, the operators have to be innovative, and there are many examples of successful innovations in the sector.
We all are familiar with vending machines. Everywhere in the world, especially in places with high human traffic, vending machines are readily available, selling 24 hours a day potato chips, hamburgers and fresh vegetables. In Singapore, we notice that there are more and more vending machines. This is a picture of my colleague buying a packet of steaming hot fried beehoon from the vending machine at 2 o'clock in the morning. She said it tasted delicious. More importantly, with vending machines, people working at the airport, hospitals, hotels, factories and students staying at the University hostels have another way of purchasing food as and when they wish. On the other hand, companies providing this 24/7 service need not worry about the high rental cost and the difficulty in employing night shift staff.
(In English): Mdm Chairperson, businesses can adopt technology to improve their existing processes in a number of ways. The example of RedRing Wanton Mee shows that even traditional business can upgrade. RedRing Wanton Mee invested in a Japanese noodle cooker to ensure noodles are consistently cooked at the right temperature and duration.
Like their counterparts in the food sector, other SMEs have also adopted technology to achieve higher productivity. Let me illustrate with some examples associated with smart devices. More and more intelligence is now built into personal items, such as mobile phones, backpacks and even clothing. Increasingly, the things we use will be able to communicate and talk to each other.
For instance, pest management companies are installing smart pest traps. Workers are deployed to collect and dispose of pests only after the pests have been caught. Likewise, smart sensors installed at construction worksites send
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site vibration and other safety data to control rooms. For FOSTA, this eliminated 90% of the manpower previously required to manually inspect sites on schedule.
A*STAR also developed the smart fence system. Advanced optical fibre sensors are planted at regular intervals on fences. They detect intrusions far more accurately than other similar systems around the world. Today, these smart fences protect our airports, SBS Transit's bus depots, as well as the North-East Line (NEL) train depot. Smart fence reduces the need for security patrols. Existing security officers can be deployed in control room to monitor more fences with far greater accuracy.
To support companies in adopting technological solutions like this, A*STAR launched the $51 million Technology Adoption Programme (TAP). Mrs Lina Chiam may be pleased to learn that TAP benefits many sectors, including Construction, Food Services, Retail, Precision Engineering and Logistics. Our companies must, therefore, find new and imaginative ways to compete. Technology adoption clearly offers us a way forward.
One challenge SMEs face is their small-scale operation and this has been pointed out by many Members. To help SMEs reduce upfront capital investments and save on ongoing operating costs, JTC will custom-build a new generation of industrial space with shared facilities as a key feature.
Ms Foo Mee Har will be pleased to learn that companies operating in JTC's new Food Hub, for instance, can utilise a shared integrated cold room warehouse while tenants in JTC's new Surface Engineering Hub can benefit from a centralised wastewater treatment plant. Such shared services will help companies save up to half a million dollars collectively on upfront capital expenditure and enjoy 10%-20% off their long-term operating costs.
Some shared services take a non-physical form. For logistics companies operating out of JTC's upcoming Integrated Logistics Hub, the shared IT management system will enable companies to schedule and monitor the flow of container movements within the depot, cutting down drivers' waiting time.
This year, JTC will be rolling out more than 10 such customised industrial facilities. Other sectors that will benefit from such facilities include general manufacturing, electronics and medical technology.
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Competition is often cited in surveys as one of SMEs' key challenges in the face of growth. For some, competition brings out the best in them.
If I tell you that a start-up in Singapore was growing at 20%-30% month-on-month, would you have guessed that all they did was to sell everyday products, such as toothbrushes, shampoos and detergents? This company is RedMart, a wholly online grocer.
RedMart's success lies in its ability to meet the needs of this target market and consistently fulfil delivery orders. Its integrated supply chain allows it to do so. From inventory management to delivery, it maximises productivity. Being online also means it avoids the common challenges its competitors face, such as high commercial rentals and manpower constraints.
Being wholly online, RedMart can understand its customers better than its competitors. Because every order is tracked, analysed and compiled, it can establish patterns and preferences of its consumers' purchases. RedMart's business model is based on knowledge and intelligence, and data analytics is a new competitive tool for the company.
Assoc Prof Eugene Tan suggested that companies could leverage Corporate Social Responsibility (CSR) as a business and branding strategy. In my opinion, we welcome and encourage companies to undertake meaningful CSRs in the areas they have passion for.
I would not, though, hard-wire a company's CSR programme with its business or branding strategy and expect business benefits from such linkages.
But having said that, we believe branding of our firms' products and services is important. To help companies define their branding strategy, SPRING's Capability Development Grant is a well-established programme that offers funding support for companies to develop their brands.
We have also discussed earlier how raising sales is a sure way to raise productivity. For ready Singapore companies, developing overseas markets is a logical and integral part of their productivity strategy. For some, designing products for the global market has actually been their growth strategy since day one.
Started seven years ago by two brothers, Ryan and Reuben Lee, then 29 and 32, the company makes pocket-size X-mini Capsule Speakers to go with
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today's many smart devices. In fact, I have one sample here. This must be a third or fourth generation now. So, you open up, it looks like this. If you close it, it is very small. You can link it with a 3.5 mm cable, and it doubles up as a speaker as well as microphone for teleconferencing. It also has blue-tooth connection for remote music enjoyment.
From day one, X-mini recognised that the company's fortune lies in the global market. This was why they launched their first product in Western Europe. X-mini sells a range of X-mini speakers to over 80 countries. Such sales make up 95% of their revenue of S$32 million – it is not bad for a very young startup by 30-year-olds. X-mini overcame stiff competition by differentiating itself. It promised quality through its \"made-in-Singapore\" branding, invested in R&D to grow its product line and also, of course, launched a very slick and targeted marketing campaign in the various markets.
As Mr Liang Eng Hwa and Ms Foo Mee Har have pointed out, a company's internationalisation journey is not without challenges. And this, we agree. In fact, our agencies offer a comprehensive suite of support programmes by focusing on three areas: (a) expanding our overseas networks or connectivity; (b) partnering our companies in their growth; and (c) grooming a pipeline of global-ready talent.
First, to help companies gain market access and knowledge, we are increasing our overseas and global connectivity. We have a network of 20 FTAs that have helped to open new markets for our companies. This is complemented by 41 Investment Guarantee Agreements (IGAs) that provide companies with greater confidence and legal certainty when investing overseas. MTI will continue to pursue more of such agreements.
In terms of in-market assistance, companies can leverage IE Singapore's network of 38 overseas centres globally, from Africa to the Americas, Middle East to East Asia. These overseas centres, together with the network of Singapore companies overseas, form a natural and powerful source of market insights for our companies seeking opportunities and partnerships. Even in newer markets like Myanmar and Ghana, the two latest countries where IE Singapore opened up new overseas centres, IE Singapore has engaged about 100 companies last year alone.
Second, we will continue to partner our companies in their growth. In 2013, IE Singapore assisted over 26,000 companies, of which 85% are SMEs. There is scope to do even more. Going forward, we will set aside $25 million to enhance
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IE Singapore's programmes to better cater to companies at different stages of growth. The enhancements are expected to benefit 200 companies over the next two years.
For companies which are rapidly expanding, securing financing is often a challenge. We will, therefore, double the maximum loan quantum under the Internationalisation Finance Scheme (IFS) from S$15 million to S$30 million to support companies.
For companies which are looking to enter new markets and learn from overseas partners, we will enhance our Global Company Partnership (GCP). We will increase our support for pilot and test-bedding projects from 50% to up to 70%. Companies can tap on this to test out the viability of their products and solutions in new markets.
In addition, we will expand our support for market attachments to include companies sending their staff overseas to acquire new business capabilities or technologies. Companies can tap on this to develop their manpower resources and at the same time gain new strengths. We will extend up to 50% funding support.
For startups which are looking to broaden their overseas connections, we will introduce the Market Access Incubation Programme (MAIP) to provide up to 70% funding support for participation in overseas missions and fairs organised by approved incubators.
Together, I am confident that these enhancements will help more companies expand into new markets.
Lastly, we are helping companies to tap on local talent for their overseas operations, as this is pivotal to the success of their internationalisation plans.
In my travels, I often meet globally-oriented Singaporeans. Consider our two intrepid youngsters: Esther Yap, 28, and Denise Lim, 27, for example. I met Esther in Ghana last year and learnt that she is working as a Marketing Manager of a beverage distributor and has been living there for three years since she graduated from NTU. As for Denise, she quit her job as a management consultant to set up a restaurant in Guatemala and was recently featured in Channel NewsAsia's Business Warriors. Denise and Esther show that our
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youths are bold and dare to step out of their comfort zones.
Our youths have the potential to spearhead the overseas expansion of our companies. IE Singapore's Young Talent Programme (YTP) will support our local schools and companies to identify and groom a pipeline of talent. Since its launch last year, 11 undergraduate scholarships have been awarded and about 500 undergraduates have received support for overseas immersion. I am encouraged by our youths' enthusiasm and their readiness to learn. This augurs well for our companies seeking local talent to chart their overseas growth.
Mr Chairman, the most fundamental way to secure our social and economic well-being is through productivity improvement. Productivity improvement itself is hard work. There is no short cut. It is a long-term endeavour and requires commitment. With imagination and determination, and our companies in the driver's seat, we can, together, restructure our economy and transform our companies. Engraved on every X-mini speaker is the company's motto: \"Sound beyond size\". Is this not the spirit of enterprise and the spirit of the SMEs?
The Minister of State for Trade and Industry (Mr Teo Ser Luck): With your permission, Mr Chairman, I have asked the Clerk to place booklets detailing our SME schemes on the Members' seats. I have also included an FAQ questionnaire because of the various questions raised about SMEs accessing the schemes.
Several Members have spoken about SMEs and how restructuring has affected them. I thank all of them for the comments and suggestions. And, Mr Chairman, I agree with you that small is beautiful and we are here to help these SMEs to make them more beautiful through restructuring.
The restructuring effort is tedious and difficult. However, if you change your mindset, it may just get easier. They can tap on the schemes we have to start this journey of restructuring.
We started the process a few years ago with the objective of achieving a productive, competitive and vibrant SME sector. However, it is not an easy journey. I know that restructuring has been painful for some businesses. A clothing retailer told me that high rental costs have forced him out of business or move to a smaller office, and his profit margin is shrinking with the increase in foreign worker levy. Another SME in the precision engineering sector is relocating part of its business to Thailand and Iskandar Malaysia due to the
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rising costs.
All said, I have also noted that the SME sector has continued to grow at a relatively steady pace, with a net formation of about 14,000 new SMEs each year from 2010 to 2012.
Easing up on restructuring would not help our businesses in the long run. What we want to do is to strengthen them, not weaken them. And as our domestic economy continues to mature, our cost base will increase accordingly. At the same time, our competitors will not stop innovating and moving up the value chain. If we continue with a business-as-usual mindset, these competitors will overtake us. It is not just another country or another city but, even within an industry, SMEs against SMEs, you will see the differentiation. This will erode the competitive advantage that we have worked so hard to build. Change is never easy but it is necessary.
Most of the SMEs that I have spoken to understand this and they have already started to restructure or they are trying to figure out what they need to do to restructure. Surveys have shown that more SMEs are measuring their productivity improvements and many have taken up the various Government schemes. Mr Teo Siong Seng will be glad to know that most of these are also available to SMEs, including micro enterprises, even if it is below three employees.
For example, more companies have made PIC claims. There were 45,000 PIC claimants in 2012, which is a 25% increase from 2011. More than three-quarters of these claimants were small and micro enterprises. And the PIC scheme is not just meant for larger companies. Micro-enterprises qualify for the tax deduction. Only the cash payout option requires businesses to have at least three local employees. So, over 16,000 micro-enterprises have claimed for PIC. And, in fact, micro-enterprises have shown the greatest rate of increase amongst these claimants, increasing by over 40% since 2011. Let me also address Mr Teo's question in Chinese.
(In Mandarin): [Please refer to Vernacular Speech.] Small and micro businesses are very important to us. Mr Teo Siong Seng says they are part of our culture, and I agree with him. Some of these micro businesses have a long history. Not only do they contribute to our economy, they are also a part of our lives. I personally grew up in the community and I patronise these businesses daily, such as visiting the coffeeshops to have breakfast. I am sure many of you have similar experiences. And because of this, it is important for
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us to help these micro businesses, encourage them to change in order to survive. The best way to help them is to guide them.
I would like to emphasise that all these SME packages and assistance schemes, or what we call \"carrots\", are available everywhere. \"Carrots\" actually grow on the ground, I do not know who hung them up on trees. But regardless of whether the \"carrots\" grow on trees or on the ground, the important point is that we must guide these small businesses, that is, these \"rabbits\", to eat the \"carrots\".
\"Carrots\" come in big and small sizes. The small \"rabbits\" do not have to compete with the big \"rabbits\" for big \"carrots\". If they eat the big ones, they may suffer from indigestion, so it may be better for small \"rabbits\" to eat in moderation.
Mr Teo also talked about small \"rabbits\" which hop around looking for carrots. I think it is not a bad thing that they are hopping around. They may be feeling energetic after eating the \"carrots\" and hopping around is a good form of exercise that will help them grow. The most important thing is that we are able to guide these rabbits to the right location, so that they get to eat the carrots.
Previously, I gave out phone numbers; this time, I will be giving out brochures with addresses and there are 11 of them in all. These SME Centres will provide assistance, particularly the consultants at the centres, who will lead and guide them. There are many packages now. These micro businesses need to better understand the information so that they can make changes. Most importantly, they must be determined, for determination is required for change to happen. Only then will they have a chance to survive. So, everyone must allow these small rabbits to develop slowly. We want to give these micro businesses a chance to grow and provide them with assistance. We cannot just give them the carrots. Instead, we should also help them find the carrots and this is the most important point. Give them the chance to be bigger and stronger SMEs.
(In English): Mr Teo Siong Seng also spoke about an SME coordinating agency. As the SME sector is diverse, it is not easy for one agency to look after all the SME issues. As Members can tell, we have so many questions this year for the SME sector. They cover a wide range of areas. I can assure you that there is close collaboration amongst Government agencies to understand SME issues and develop solutions to help the sector. SPRING, as an agency, is always there
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on a day-to-day basis to help the SMEs.
We have also set up an SME Workgroup to look at the strategic measures and initiatives. The SME Workgroup was set up last September to consolidate our efforts to reach out and engage the SMEs and help them provide feedback and provide recommendations to different Ministries to look at what are the SME assistance strategies and schemes that can be implemented. The Workgroup comprises industry leaders from trade associations and chambers, relevant Government agencies, as well as several Members who are present here today.
Mr Zaqy Mohamad and Mr Vikram Nair have asked for an update on the progress of the Workgroup. The Workgroup and our partners, such as the SME Centres and Trade Associations and Chambers, have been actively reaching out to the businesses in their neighbourhoods. Over the last six months, we have reached out to more than 7,500 SMEs. Let me thank all the Workgroup members and our partners for their hard work.
At these outreach sessions, SMEs have asked questions about various Government schemes. Most are technical questions which can be answered easily, such as queries about the application process for the Innovation and Capability Voucher (ICV), or questions about the types of investments that are claimable under the PIC scheme. For cases which require more detailed advice, the Advisors would link the businesses up with the SME Centres.
The Advisors have also received feedback that the SMEs are hoping for more assistance to cope with restructuring. The Workgroup has consolidated all the feedback, developed recommendations and shared them with the relevant Government agencies. Some of those recommendations have also been adopted in this year's Budget.
As Deputy Prime Minister Tharman announced in his Budget Statement, the PIC scheme will be extended for another three years up to 2018. He also introduced the PIC+ scheme for SMEs, which raises the PIC expenditure cap by 50%, or up to $600,000, for each of the six qualifying activities.
We will continue to engage SMEs through the Workgroup to understand their concerns and needs, and we will also keep close tabs on industry feedback and calibrate the pace of restructuring to better support SMEs. The Workgroup is a long-term committee; it does not stop its work with a recommendation. It continues to engage and provide recommendations to the different Ministries.
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So, I want to assure the Member that we will continue to monitor, take suggestions and give those recommendations to the different agencies.
Let me now address Ms Tin Pei Ling and Mr Heng Chee How's questions in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Ms Tin Pei Ling and Mr Heng Chee How have asked what the Government can do to help SMEs who do not know how to improve their productivity or how to access our Government schemes.
SPRING and the SME Centres conduct outreach sessions in English, Mandarin, Malay and even dialects, and their information brochures are available in these languages.
We are working closely with the trade associations and SME Centres to reach out to individual SMEs. We now have a total of 11 SME Centres, including satellite centres in each of the five Community Development Councils (CDCs).
Across the SME Centres, there are about 60 business advisors. They provide SMEs with information on Government assistance schemes and business advice. The business advisers at our ethnic chambers can do so in their respective languages. These business advisers will even visit the SME offices and shops to observe their business operations and offer customised advice.
Collectively, our SME Centres have assisted over 20,000 SMEs in 2013, 25% more than in 2012.
We have also made our schemes more accessible. Last year, SPRING shortened and standardised its application forms for their Capability Development Grant from 11 to two pages. Next month, they will launch the online SPRING Grant Portal to make grant applications faster and easier for businesses.
The booklet that I have distributed contains the key schemes available to address the main SME needs at various stages of their business development. This booklet will be distributed to SMEs through all the trade associations and chambers, as well as the SME Centres. I welcome Members' feedback to help
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us make this booklet better and simpler to use.
(In English): Mr Inderjit Singh and Mr Zaqy Mohamed have also asked what the Government will do to help SMEs find suitable workers and cope with rising manpower costs, given our tight labour market.
Last year, we launched the SME Talent Programme to attract more young talents to work in SMEs. We believe that if you can attract talents into SMEs, change and restructuring may be able to speed up and mindsets may change.
SPRING and its partner trade associations match these students from Polytechnics and ITEs with SMEs, and encourage SMEs to develop exciting career paths for them. Since the launch last year, over the last few months, we have made close to 100 successful matches. There are a lot more matches to go. There are a lot more applicants, both from students and from SMEs.
The Government has also been encouraging businesses to enhance their processes and adopt technology to optimise their manpower. We have adopted these suggestions by the SME Committee and SME Workgroup to enhance the ICV scheme beyond procuring consultancy services. Each SME can now use two ICV vouchers, out of their maximum of eight vouchers, to implement solutions. This means the two vouchers can be used to purchase equipment or implement software applications. It need not go through consultancy services. But we believe SMEs still need consultancy services because they may need new ideas and plug some gaps that they may not be able to see after having been in business for too long.
Mr Inderjit Singh mentioned that business process change should be recognised as innovation and to be included. I can assure Members, it is included. Business processes can change in many ways – for example, the procurement process, the stocktake or sales process. There are many different ways to change processes. We believe that if the SMEs are willing to make that change and prove the productivity level increases, it will be included. Thus, the schemes are there for them to use – big and small ones. It just depends on the scale and size of the change, as well as the enterprise itself.
Mr Zaqy Mohamad and Ms Foo Mee Har have asked about what the Government is doing to help businesses cope with rising land and space costs.
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Singapore is land scarce and our land prices and rents reflect this. The retail rental index published by URA has grown at an average of 1.1% per annum over the last four years. Over the same period, rents for multiple-user factory space have increased at an average of 10.3% per annum. However, the increase for the whole of 2013 was at a lower 3.5%, which indicates some signs of moderation.
Rents for space are likely to moderate in the medium term as the Government has released a significant amount of land. Over the next three years, about 145,000 sqm of new shop space will be completed each year. This is more than double the average annual demand in the last three years. Over the same period, an average of 500,000 sqm of multiple-user factory space will come on-stream each year. This is almost double the average annual space demand for such space in the last three years.
We have also released small land parcels with shorter tenures as more affordable options for SMEs. As Members know, for industrial land, when we roll out, we also will build on some of these lands for clustering the space for industry needs. We will also build some of these as factories that are customised for particular industries. Ms Foo has mentioned about the aerospace industry. We are going into the food industry as well. That helps the SMEs and we make sure that it is customised for their needs. For some, it may also mean a change in their process in order to fit into some of these factories. As Members know, we have rolled out the small footprint standard factories. Those have had a very warm response from SMEs. We will roll out a similar type of factories that is customised to the needs of the industry. We believe that this is the path towards land intensification and building up the productivity level.
Mr Inderjit Singh and Mr Dhinakaran have also asked specifically about the impact of real estate investment trusts, or REITs. We note that REITs are not the leading players in the rental space market because they currently only own about 13% and 16% of retail and industrial rental space respectively. Like any other landlord, they have to compete in the rental market to attract tenants and cannot charge excessive rents.
Some REITs buy conveniently located properties, such as those near MRT stations. And they also usually invest in asset enhancements and national marketing efforts which have helped to increase foot traffic to their malls, and raised the revenues of some of the retailers. So, these mall owners usually
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charge higher rents.
Nevertheless, let me assure Members that we will continue to monitor this rental market. We know it has come up as an issue. Many Members have raised it. We will monitor it and we will intervene if we see evidence of collusion or abuse of market dominance by any player, including REITs.
Some SMEs have shared that they face significant rental spikes when their tenancies are renewed. The Government supports fair practices. To help businesses make more informed decisions about the rental market, the SME Workgroup has suggested that the Government share more rental information. Mr Zaqy Mohamad has also mentioned rental benchmark transparency. MTI and URA have taken this feedback on board and we are looking into publishing more comprehensive shop rental data later this year to make rental pricing more transparent.
Mr Chairman, let me now address Mr Yee Jenn Jong's question on how we will help SMEs expand and grow.
The SME Committee and the Singapore Business Federation have also shared about the urgent need for SMEs to revitalise their appetite for growth. The Government will encourage more private sector financing and facilitate internationalisation. Several initiatives have also been outlined in this year's Budget speech.
Under Phase II of the Co-Investment Programme, the Government has set aside Government capital for two new funds to provide SMEs with both equity financing and debt financing options. The SME Co-Investment Fund II will make direct equity investments into companies, alongside other private equity investors. The SME Mezzanine Growth Fund will provide a hybrid debt-equity financing option for SMEs that do not wish to dilute their equity. And the funds will be managed by Heliconia Capital Management Pte Ltd.
It also announced the enhancement of the Micro-Loan Programme (MLP) to support smaller businesses and startups. Mr Yee has also mentioned this. Young businesses face difficulty securing working capital loans as they lack business track record and collateral. We will increase the Government's risk-share from 50% to 70% for MLP loans to firms that have been registered for less than three years. This, we hope, will increase the incentives for banks to lend to them. But we will work with the banks and look at how else we can reach out to
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these SMEs or startups to help them access the loans as well.
Senior Minister of State Lee Yi Shyan had earlier also shared IE Singapore's plans to help SMEs venture overseas through enhancements to the Global Company Partnership (GCP) and Market Readiness Assistance (MRA).
In addition, IE Singapore's new Market Access Incubation Programme (MAIP) will help smaller SMEs and start-ups internationalise. It will support up to 70% of costs, such as airfare, accommodation, registration fees and booth set-up costs, when they participate in overseas events by approved incubators. These incubators will help to identify potential overseas markets, offer mentorship support and provide seed funding.
Taken together, our various programmes provide comprehensive help for all SMEs. The challenge is to create more awareness among SMEs and guide them to access these schemes and to implement them.
Let me give this example. The company is called Aftershock PC Pte Ltd, a company that builds customised gaming laptops. Aftershock PC started as a small operation with three employees and now has 11.
It sought assistance from one of our SME Centres. The business adviser visited the company. The adviser realised that the SME needed more manpower and introduced it to the SME Talent Programme which I mentioned earlier. Through the programme, it was matched with Mr Kwan Suan Qing. With SPRING's support, it is co-sponsoring his final year in Singapore Polytechnic, after which he will join it as a full-time staff.
The adviser also recommended for Aftershock PC to automate its ordering process. Aftershock adopted the idea and it tapped on the PIC to invest in a platform for customers to order its products online. This has made the orders more accurate and less labour intensive. With Government support, businesses are better placed to restructure and transform. The scheme has helped to provide product innovation – the way the sales process is done. With the business process re-designed, that increased the revenue stream. It also helps in covering talent gaps in the company.
We are trying to help as many businesses as we can but businesses must help themselves first. Nonetheless, some firms will find themselves in non-viable business lines. Ms Tin Pei Ling has asked about our support for these
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displaced SME owners and staff.
Unlike Europe which faces structural unemployment, Singapore is in a full employment situation. Thus, we have focused our efforts on helping SME owners and employees move to new, higher value sectors. The Government has a range of schemes to help firms do this as well.
The Government also supports training programmes, such as those conducted by e2i, to help workers acquire new skills and do higher value-add job in new industry sectors. MOM will elaborate on these training schemes and other forms of support provided for displaced workers.
Let me just say that the vibrancy of an economy is not just dependent on the existing SMEs but also new SMEs as well. Entrepreneurship is a big and major pillar for any vibrant economy because it keeps the economy sustainable and at the same time re-energises the business sector. We want to encourage people – young people, old people – regardless of age to embrace entrepreneurship, take risks and come up with new ideas.
We would like to grow Singapore into an Entrepreneurship Hub. The Government set up ACE (Action Community for Entrepreneurship) 11 years ago. The mission of ACE is to develop an entrepreneurial culture and a pro-enterprise environment. ACE and SPRING together provide access to funding, mentorship and infrastructure support.
As Members know, since I took over ACE, one of the first things I changed was the ACE Startups Grant. It used to have an age limit. Today, there is no more age limit. The ACE Startups Grant provides first-time entrepreneurs with tax exemptions and funding support, matching $7 for every $3 raised by entrepreneurs for up to $50,000. There are other schemes. SPRING's Start-up Enterprise Development Scheme (SEEDS) co-invests with third-party investors in promising startups. With this support, the number of active startups in Singapore has grown by almost 60% in the past seven years.
I would like to share with Members an example of Ms Ee Poh Luan. She is a successful example of someone who made entrepreneurship a second career. Luan worked for 20 years in the communications sector before deciding to follow her passion in cooking. She signed up for two stints as a kitchen intern in different restaurants and then decided to become an entrepreneur. She was awarded the ACE Startups Grant and was also assigned a mentor to help her develop her business model. Since the start of last year, Luan has been
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operating her gourmet food truck – the Kerbside Gourmet. This mobile kitchen is also a social enterprise. Luan channels a part of her profits to feed low-income families.
It is not just about getting grants. More importantly, it is the networking and the mentorship that come along with it. We offer this mentorship not just for grant awardees, but also to those who are interested to set up. We try to do the match between mentors and mentees.
Mr Chen Show Mao has asked about support for older Singaporeans interested in entrepreneurship. We want to encourage older entrepreneurs or seniors to embark on entrepreneurship. We do not discriminate against age, nor the nature of business – whether tech or non-tech.
We can all be inspired by 69-year-old Ms Shelley Siu, who founded The Singapore Shawl, in 2003. The company designs shawls that feature Singapore's culture and makes them from eco-friendly products. Besides Singapore, the shawls are sold overseas in the US, UK and France. Ms Siu said that her reason for starting the business was to give back to her community. She hires local women, mostly senior citizens or those who are in need, to work in the stores or as seamstresses. Ms Siu did not require any Government support to start her business, but others may need help. For those who need help, we encourage them to approach ACE and SPRING to find out more about the help schemes.
As Members would know, I am also trying to let ACE be led by the private sector. I believe that in doing so, it would keep the entrepreneurship scene and landscape a lot more vibrant. This is aligned with the recommendation in the Entrepreneurship Review Committee's report, which was completed this year.
Another significant recommendation was for the Government to provide more physical space to incubate startups. I am happy to share that JTC will be developing new incubation spaces, more than what we have today with the famous Block 71 at JTC's one-north.
This builds on the success of the original start-up hub at Block 71. Block 71 has drawn global attention to our entrepreneurial culture. Earlier this year, it was covered in the Economist magazine, which featured the opportunities for startups to interact and work together. Block 71 currently houses 23 incubators,
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250 startups and 1,000 entrepreneurs from the infocomms and media cluster. This compact seven-storey block provides a collaborative environment for like-minded entrepreneurs.
Being sited with fellow startups and potential investors meant that discussions happened quickly. Deals can be made, capital investments are made and they can pitch ideas at any point in time. We want to be able to provide that platform, a larger one, for more people to be involved and, in turn, set up a culture, the spirit and an ecosystem for entrepreneurs.
By the end of this year, JTC will open two more blocks as part of an incubation cluster called JTC LaunchPad@one-north. This is adjacent to Block 71; so, we will have Blocks 73 and 79, and these will nurture the growth of startups and incubators in promising industries. The expansion will double the current community at one-north to 500 startups and 2,000 entrepreneurs, and provide more common spaces for startups to interact, share ideas and make deals. As Members can see from the layout, there will be Blocks 71, 73, 79 and there will be community space, cafes, bistros and eateries for them to mix. Hopefully, we can create our own mini-Silicon Valley.
If there is sufficient demand, the Government will consider creating more startup clusters around Singapore in the future.
We will discuss more details of JTC LaunchPad@one-north later this month.
Let me move on to the issue of consumer protection. MTI recently announced changes to the time-share regulations that will take effect in April this year. These changes will expand the regulation's coverage to cover relevant products, such as holiday club memberships. They will also prevent companies from collecting a deposit from consumers during the five-day cooling-off period, and ensure that consumers have all the relevant information needed when making purchases.
Mr Png Eng Huat has asked about the recourse available to consumers who have already purchased timeshares and think that they have been scammed. Unfortunately, the regulations only apply to new contracts, and do not cover existing contracts. For clear cases of cheating, the party should make a police report. I urge consumers to consult the Consumers Association of Singapore (CASE) if they need advice.
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While we cannot enforce the regulations retroactively, we can do more to ensure that our consumers' interests are not adversely affected. CASE will reach out more to consumers to educate them on their rights to reduce future cases of cheating. I believe CASE is continuing to monitor how badly the consumers are affected and how many cases of complaints they receive each day.
In conclusion, the Government will continue to help SMEs enhance their productivity and develop new capabilities. We will also continue to cultivate a climate of entrepreneurship in Singapore. SMEs and entrepreneurs must also take the lead and embrace the restructuring process. We are seeing progress but there is more to do. SMEs in countries like Germany constantly upgrade themselves so that they can become market leaders in their respective niches. It will take time, but we will move along in this journey together with our SMEs.
Today, many home-grown brands are already household names. Most Singaporeans know Jumbo Seafood and Eu Yan Sang. Other SMEs have achieved recognition overseas. Crystal Jade is popular in Hong Kong and OSIM has a strong reputation in China. These SMEs make us proud, and the Government will support more SMEs as they work to reach such heights. With effort, I am confident that SMEs will continue to grow and create good jobs and better jobs for Singaporeans.
The Chairman: Minister Lim Hng Kiang.
Mr Lim Hng Kiang: Mr Chairman, thank you for letting me join the debate again. This is because Mr Inderjit Singh raised a very important issue about the pace of restructuring and I thought we should spend some time responding to it.
Deputy Prime Mininster Tharman responded completely yesterday. The way Deputy Prime Minister Tharman put it, we have two options. One is to restructure very rapidly and that will cause a lot of consolidation, shake-out and some companies will be attrited when they actually have a chance to survive. The other way is to do it very slowly and then it would be an even more painful process. Deputy Prime Minister Tharman stated very clearly that the path that we are taking is the middle path and we feel that this is the right pace.
Let me address it slightly differently. We can look at it at the macro level; we can look at it at the sectoral level; or we can look at it at the firm level. I would argue that if you look at it at the macro level, we are not doing it as fast as we should. As I explained just now, our growth in the last five years is 5.2%.
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Many economists would argue that we are growing above potential.
Last year, we generated 134,000 jobs. When we set out the White Paper on Population, one party in this House argued for freezing of foreign workers. That is, in fact, a very drastic solution. We prefer the middle path – consistent, steady restructuring but at a pace that the economy can take.
If we look at the way the economy is still growing and the jobs that it is still generating, and the fact that the labour force is still growing, one could argue that we are slightly behind the curve.
If you look at sectoral level productivity, as Senior Minister of State Lee Yi Shyan mentioned earlier, some sectors are doing well; some sectors are not restructuring as fast as we want them to do.
We are monitoring this very closely but, on the whole, as many Members have pointed out, our productivity numbers are not shaping up as much as we would like. Again, this indicates that we are not restructuring as fast as we should.
Similarly, when SPRING and all our agencies deal with the firms at the firm level, we get a slightly varied experience. Some firms now realise that they have to do the restructuring process and are doing so in a more determined way; others are just beginning. We are extending our outreach programmes to try and reach out to all the firms that want to restructure.
I would argue in support of Deputy Prime Minister Tharman that we are taking this in a very measured way and the pace of restructuring is the crucial issue. If we do it too slowly, we will cause more pain to the economy; if we do it too fast, we will cause unnecessary attrition.
I would like to assure Mr Inderjit Singh and all Members in this House that all the various Government agencies in MTI, MOM and MOF are monitoring this very closely. We will make sure that the pace is done right.
The Chairman: I will allow some time for clarification. Are there any? Mr Inderjit Singh.
Mr Inderjit Singh: Mr Chairman, I understand what Minister Lim Hng Kiang just mentioned about the pace. It is a matter of judgement. I would just
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urge the Government to get the pulse of the ground right. While I agree that we need to take the middle path for the reasons that the Minister mentioned, what we feel is that the middle path may not be what the ground is feeling from the feedback that we have received. The feedback that I got may be wrong but maybe it is good to have some dialogue with some of the players – both big and small companies – to understand whether we are doing it at the right pace.
I also mentioned that there are a few things happening at one time: restructuring, productivity drive, labour reduction and cost increases. The confluence of all these issues is also making it feel a bit more painful. While restructuring at a certain pace is important, the other issues are creating a problem.
It is a matter of judgement. I am not just saying the Government is wrong. I think it is best that we keep a close pulse to the ground, have more dialogues, so that we get it, finetune along the way and do not make some mistakes and cause more pain.
Mr Lim Hng Kiang:\tIt is, indeed, my assurance to the Member that we will watch and monitor very closely. We have dialogues with the various business groups, both at the Chambers level, sectoral level and the different industries, and we also reach out to the companies on the ground. We will continue to have these dialogues. We do these dialogues regularly. And we will monitor this very closely.
Mr Teo Siong Seng: I thank the Minister of State Mr Teo Ser Luck for the clarification, and for the handbook printed. We will try and read it. Mr Teo had clarified that to apply for any PIC scheme, a company can have fewer than three CPF-paying accounts. My understanding is that there must at least be three.
Mr Teo Ser Luck: Mr Chairman, with regard to Mr Teo's question, with less than three employees, the company cannot apply for the cash payout portion of the PIC. But for the PIC tax deduction portion, it can be done. On the requirement of having at least three local employees: when I did my rounds to visit the smaller and micro enterprises, I found that a lot of them do not need massive and immediate investments. They are actually more suitable for the voucher scheme, which is the Innovation and Capability Voucher (ICV) scheme. For ICV, it is $5,000 per voucher. The companies are entitled to eight vouchers. I encouraged them to do so and now they have a better awareness about it. Once they are better aware, they can apply for it. And for the ICV, when the
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companies get reimbursement, it is within two weeks.
Ms Foo Mee Har: Mr Chairman, I would like to ask the Minister about the policies on Industrial Government Land Sales. MSF has set the precedent of evaluating bidders for childcare centres not based on just price bids, but qualitative factors. To address some of the cost pressures that the businesses have been talking about in terms of getting industrial land, I would like to ask the Minister if he would consider also a formula, other than bid price, to include qualitative factors, such as economic contributions, jobs created and the purpose of the development, whether it is for investment or owner-occupation. I would like to ask whether these qualitative factors can also go into the Government land sales programme.
Mr Lim Hng Kiang: In fact, we do so. For big plots of land, as well as for SMEs seeking renewals of their leases, we have a dialogue with them. To qualify for renewal of their tenancies, they have to demonstrate value-add, types of jobs created and the linkages to the cluster, that is, whether they add value to the competitiveness of the cluster or the sub-clusters, before we renew the lease.
For the plain vanilla flatted factory type, we would just release it, sometimes with planning conditions, for example, floor loading, so that it caters for certain types of industries. We leave it to the market.
Ms Tan Su Shan: I would like to ask the Minister, given that our GDP is subject to global cycles, would he consider a more relevant measurement of productivity, perhaps, a sector-based one or Total Factor Productivity (TFP)?
Mr Lim Hng Kiang: That is what we are doing under the NPCEC. We have a sectoral plan. We have a dialogue with the players, and we work out what are the appropriate and most relevant productivity measures for that sector. We do so for the hotel sector, the food manufacturers' association sector and so on. We do that at the sectoral level.
Mr Yee Jenn Jong: Thank you, Mr Chairman. I would like to ask the Minister of State, earlier he mentioned a figure of 145,000 sqm of shop retail space that will be coming out into the market. I would like to know where are these locations, and who are the operators of this space. Will they be mostly going to the REITs, and will that strengthen their bargaining position if they are
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given more retail space?
Mr Teo Ser Luck: We will reveal the details later.
Mr Inderjit Singh: I believe Minister of State Mr Teo Ser Luck mentioned just now the company formation rate of about 14,000. I would like to ask are we monitoring the rate of companies folding up. I have heard recently that the rate has also increased, especially in some sectors that are very dependent on rental. Entrepreneurs are such that they see opportunities but many of them come in and may not last long, particularly in the F&B and the retail sector. Many of our entrepreneurs try in that area. So, I am a bit concerned about the rate of failure and bankruptcy. In addition to formation, are we monitoring closures also?
Mr Teo Ser Luck: I would like to assure Mr Inderjit Singh that we are measuring that. In fact, the SME Workgroup meets very often with the retailers or the retail associations to measure the closure. I do not have the exact numbers right now, but the last seen trend is that it is not increasing at a very high rate, even for the F&B sector. We are monitoring it.
It may also be because there are new entrants. There are a lot more new entrants into the sector. We are not seeing fewer entrepreneurs. In fact, we are seeing quite a vibrant entrepreneurship landscape today in the different sectors, such as the services sector. If you look at some of the shopping malls, you can see that sometimes there is change-over but you do not really see vacant space.
Ms Tin Pei Ling: Thank you, Sir, I would just like to ask, since the Ministry does track businesses and, in this case, entrepreneurs that may have folded or that have closed, may I just ask, overall, for these entrepreneurs and businesses, do they get re-allocated into other industries, or do they find a way back in, or are they just being displaced permanently and be kept in limbo?
Mr Teo Ser Luck: To answer Ms Tin, they have various scenarios. Some of them change their business model, others just close up and go back to corporate life; and sometimes they become a second-time entrepreneur. It really depends on the situation and on the entrepreneurs themselves. The closure rate itself has not been climbing; the trend has been very steady. We are monitoring that very closely. If there is any prevailing trend coming out in prominence, we will track and see what is the issue there.
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The Chairman: On that note, would Ms Jessica Tan like to withdraw the amendment?
Ms Jessica Tan Soon Neo: I would like to thank Minister Lim Hng Kiang, Second Minister Mr S Iswaran, Senior Minister of State Mr Lee Yi Shyan as well as Minister of State Mr Teo Ser Luck for sharing with us strategies, as well as going through the various schemes. Through that, we all realise that it is a journey, as well as it is extremely complex. But I do want to say that it is good that there is a recognition that it is not easy, the restructuring is not easy, as well as that we still have to address the cost issues and continue to monitor that, and work together with our companies in Singapore. With that, Mr Chairman, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $707,862,600 for Head V ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $3,836,981,900 for Head V ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head M (Ministry of Finance)","subTitle":null,"sectionType":"OS","content":"Ms Jessica Tan Soon Neo: Mr Chairman, can I take my two cuts together?
The Chairman: Yes, you can.
Ms Jessica Tan Soon Neo: Mr Chairman, I beg to move, \"That the total sum to be allocated for Head M of the Estimates be reduced by $100\".
One of the fundamental ways that the Government is connected to citizens is through the public services it provides. How does the Government know if its citizens are happy with the quality and effectiveness of services provided? How are sentiments tracked? But more than that, how does it know that the services provided are reaching out to the people that most need it?
Today, the Government has done well to set up touch points, for example, counter services, hotlines, and even online access where citizens can connect
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and seek services for help.
Today's society is much more diverse. With the changes in our society, how is the Government keeping up with these changes and staying connected? How is the Government reaching out to citizens in need? With the pervasiveness of technology and adoption of social media, there is opportunity for the Government to enhance engagement, efficiency and timeliness of service delivery to citizens. With mobility and social media, there is opportunity to allow citizens to have a voice and for the Government to reach out. How will the Government leverage such new approaches? For example, the use of information on traffic conditions via data capture from cameras, and using data analytics allow the prediction of traffic conditions. This will allow the agency to proactively dispatch officers to the area, if required, to redirect traffic or lend support to motorists to address situations on the ground.
Let me now touch on the matter of procurement. With the past lapses in Government procurement, there has been focus to strengthen the procurement practices and compliance. What is the progress of this effort? How can the Government be assured that beyond process and compliance, the right and best decisions are made for effective solutions to deliver public services that meet the needs of our people?
If procurement practices are tightened to the extreme, it could be counter-productive as it would discourage any deviation or justification for procurement decisions, even if they are the right decisions, as they may be construed as procurement violations. Can MOF share how the Government is also continuing to develop deep skills, so that it is not only able to deliver public services to meet current needs, but also continues to build capability and deepen expertise to address shifting and new needs?
My next cut on inclusive growth. As we discuss the transformation of SMEs and capability building, one of the ways for local SMEs to develop is to use Government procurement as a strategy. Government procurement can play an important role by awarding contracts and providing recognition to SMEs. This will allow them to build the track record which is so often required as a pre-requisite in bids for larger projects, both locally and internationally.
Several countries have measures for SME access to government procurement. For example, the UK Efficiency and Reform Group (ERG), whose
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objective is to achieve efficient and effective buying and management of government goods and services, has set a goal for deliberate focus on ensuring that SMEs have access to government contract opportunities, making it easier for them to do business with government, and that 25% of government spend, either directly or in supply chains, goes to SMEs by 2015. This, as I understand it, from all the reports, is still seeing challenges in its implementation.
Other governments, like the New South Wales government, too, has a government procurement small and medium enterprise policy framework, which is a government procurement reform commitment that aims to maximise opportunities for SMEs to participate in government procurement.
SPRING, too, I have realised, has published a Government procurement guide to help SMEs better understand Government procurement rules, so that they can take part and bid for business opportunities and projects required by Government departments.
There is a perception, however, that SMEs in Singapore may not have equal opportunity in accessing Government procurement and tend to be disadvantaged in securing Government contracts. Are these concerns valid? Can MOF share what the percentage of Government contracts were awarded to SMEs in 2013?
Mr Liang Eng Hwa (Holland-Bukit Timah): Mr Chairman, we should help our SMEs to do away with as much red tape as possible, so that they can focus on business transformation and increasing productivity. In view of the manpower constraints faced by SMEs and the much smaller resources and bandwidth that SMEs have compared with larger firms, can the Government do more to reduce the corporate regulatory and compliance burden on SMEs, for example, in the area of tax filing and auditing requirements or in the area of business registration and so on?
A study of 521 companies conducted by NTU's Nanyang Technopreneurship Center (NTC) and the Singapore Chinese Chamber of Commerce & Industry (SCCCI) in 2012 revealed that about 78% of the companies surveyed said that excessive documentation required during the application process for the various Government schemes was their greatest challenge. This survey was done two years ago. My sense is that things may not have changed too much at this point in time.
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Although corporate governance and compliance are an important aspect of good business practices, could we help the smaller companies more by making compliance with these various regulatory requirements easier?
The Chairman: Mr Yee Jenn Jong, you can take your two cuts together.
Mr Yee Jenn Jong (Nominated Member): Sir, I refer the Minister to my Budget Debate speech. I had spoken quite extensively about encouraging M&A as it can raise our productivity and global competitiveness. The current M&A scheme has not been well-utilised and is meaningful mainly for the larger acquisitions.
I hope the Minister can review the provisions in the M&A Scheme to encourage more M&A activities among SMEs through targeted measures. It can allow, for example, higher allowances for smaller M&A transactions. It can also cover purchase of operations and businesses of SMEs rather than outright share sales, as some acquirers are wary of the potential liability associated with the acquired businesses. The acquirers who invest in automation of their acquired businesses to achieve greater productivity and to change old business models could, perhaps, also be rewarded with more generous PIC incentives or special grants.
Sir, currently, taxpayers can claim tax relief on premiums paid for life insurance if their CPF contribution is less than $5,000. This $5,000 ceiling was last raised from $4,000 in 1979, 35 years ago. That increase was to ensure that the lower middle-income earners at that time continue to benefit from the concession.
Income levels have changed a lot in 35 years. Many working Singaporeans are not able to enjoy this concession while their foreign counterparts can because they do not contribute to CPF. I hope the Minister can review this scheme to raise the ceiling to a more appropriate level, so that the lower middle income earners of today can benefit and will be encouraged to save more for their old age.
The Chairman: Dr Chia Shi-Lu, not present. Ms Tan Su Shan.
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Ms Tan Su Shan (Nominated Member): Thank you, Sir. Singapore embarked on a restructuring path since 2010. Our Deputy Prime Minister rightly called this a multi-year task. Many likened it to a marathon rather than a sprint. Without a doubt, the extension of the PIC schemes was welcomed, but allow me to comment on the take-up rate, the type of firms that benefited, the potential for abuse and the trade-offs between short-term cost-cutting versus long-term innovation. I will end with some suggestions on ways to relook the real measurements of productivity gains.
First, the take-up rate. Surveys done by SBF showed that 89% of respondents were aware of the PIC schemes; 68% used it. That is quite a high figure. Amongst the over 1,000 respondents, the largest part of these claims was on automating processes and staff training, though some companies found the claims onerous and did not use it.
Second, size matters. The size of the companies matters. The take-up rate for the PIC for smaller companies is low, compared to bigger ones. In 2012, the take-up rate for companies with a turnover of less than $1 million was 24%, those between $1 million and $10 million was 59%, and those above $100 million was 81%. But it is precisely these smaller companies, with fewer resources, that need the most help.
Third, administration of these claims. Some 44,000 SMEs tapped the PIC scheme. That is up 21% year-on-year. Most of these claims were for purchases of IT equipment and since IRAS depended on the checklist approach for some of these claims, these were quite easily approved. But claims for investments in mechanical automation are based on a case-by-case basis. These claims need to be wrapped up by a rather onerous set of information to prove that the new machinery does improve productivity. Some companies have found these claims too onerous and did not use it. One suggestion is to simplify the process, have an independent expert body set up to decide what claims can qualify.
Meanwhile, on the flipside, there is some evidence of abuse and cheating relating to inflating and falsification of such claims. IRAS has singled out consultants and vendors as culprits behind these fraudulent claims. One suggestion here is to have a list of accredited consultants, similar to a list maintained by SPRING Singapore, that can help SMEs make these claims in an
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honest and efficient manner.
Businesses also welcome the move to extend deduction on qualifying R&D expenditure for another 10 years. However, we must have some clarity on how many companies and in what sectors have benefited from such schemes. A*STAR's yearly survey reveals that growth in business expenditure on R&D remains low at 1.33% in 2012. IRAS' statistics also showed that such R&D tax claims accounted for less than 3% of such PIC claims last year.
Again, the experience of some companies in claiming these benefits has been less than satisfactory. Anecdotal feedback is that the qualification processes of such projects seem to be fairly opaque as are the approval processes. Indeed, it is not easy to verify if a new R&D project has novelty value or can become commercial. It is also difficult to understand fully the technical risks involved.
The outcome is never certain and some may fail, but if we do not try and we do not encourage them to try, we will never know. Hence, in order to encourage some take-up of these R&D schemes, an independent expert body can be set up to evaluate and approve such projects in a timely and efficient manner whilst acknowledging that, in many cases, it will be a bit of a bet. It is important to allow for an environment where decision-makers feel it is okay to make the wrong bets sometimes as long as it is not fraud. After all, when it comes to R&D, we have to make a few mistakes to get to where we want to get to.
Fourth, cost-cutting versus game-changing innovation. As most of the PIC claims so far were in training and computer acquisition or replacement, this may not lead to long-term productivity gains the way innovation does. A recent KPMG survey revealed that while 65% of businesses said these schemes did help, many or more than half said measures had no impact on innovation. So, where is the \"I\" or the \"innovation\" agenda in our PIC scheme? The fact is that most SMEs have gone for a low-hanging fruit of just getting help for cost-cutting.
While the good news is that many SMEs are learning to rely less on foreign labour, the bad news is that most of them are not optimistic about growth. According to DP Information, nearly half expect no discernible growth. In another survey by KPMG, local firms were lamenting that the speed of restructuring was too fast. So, the question here is: are businesses still too preoccupied with survivability in the short term to think about long-term growth
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opportunities? According to SBF, we had the least number of growing companies amongst SMEs last year, and the credit-worthiness of these companies has gone towards the high risk side.
More access to education might help. It is interesting to note that while Singapore as a country is an overall global leader in adopting ICT, business usage of ICT is still weak. In the Network Readiness Index 2013, our lowest score was in the sub-index for business usage, with Singapore doing badly in the indicator for business-consumer Internet use, at number 13 in the world.
Here is an insight on why, and I have checked with A*STAR. According to a recent study, one in five Singapore SMEs have no current plans to adopt big data technologies. The big obstacles cited were budget and corporate culture. This tells us smaller firms need a better eco-system. On the cost front, the reality is that tools are available on cloud platforms. However, the analytical tools are not very easy to use unless one is an experienced data scientist. Thus, one solution is to provide SMEs access to a managed service resource where they can lease expertise to use these tools and access common industry insights, thereby removing any upfront costs in investing in such infrastructure.
Whilst the Budget's proposal to subsidise broadband subscription will help, business sector-specific infocomm solutions could be even more transformational. Put simply, some SMEs were just not aware of the plethora of good schemes available. For example, 40% said they were not aware of SPRING's intra-industry collaboration schemes to help SMEs grow, nor were they aware of A*STAR's programmes.
Lastly, as discussed, perhaps we should look at a better measurement for productivity gains. The headline news we read on productivity gains have not looked promising. According to the Department of Statistics, labour productivity shrank by 2.6% in 2012, but, as we all know, our measurement on productivity, which is defined by value-add of GDP per worker, is subject to global economic cycles and has little to do with efficiency of our workforce. One suggestion is to focus more on Total Factor Productivity. This is the part of output growth not accounted for by an increase in the input of capital or labour. This is where innovation and competitiveness are key. Unfortunately, this figure, too, has been low in Singapore, accounting for only 15.2% of growth here from 2000 to 2010.
Another example which I am happy to hear is that we are working now on a more sector-based approach to measuring productivity. Here, I think the
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industry groups could take the lead in developing their own productivity measures, perhaps, with some support from SBF, ACE or SPRING. Each sector can then strive to improve productivity relative to a sector-specific indicator with innovation.
In ending, Sir, I wish to commend Budget 2014 for giving out more carrots than sticks to businesses. Overall, as the Deputy Prime Minister says, \"The Scheme favours the more dynamic and efficient players.\" But we should remember that many dynamic and successful enterprises began life as start-ups or SMEs. In this age of digital Darwinism, let us not forget that there are no businesses that are too big to fail or too small to succeed.
Mr Inderjit Singh: I would like to raise some points on our reserves, specifically on its use and also the rate of return.
Before 2009, the Government was allowed to spend only up to 50% of the Net Investment Income (NII) from our reserves for the Budget. The NII came from the assets managed by Temasek Holdings. Since then, this amount has been expanded to the Net Investment Return Contribution (NIRC) which comprises up to 50% of NII and up to 50% of return on assets managed by GIC and MAS.
Even though we have increased the principal source of these funds that can be used for the Budget, we have not reduced the proportion that we are withdrawing but are actually using more in absolute terms. I am concerned that we are digging too much into our reserves to fund big ticket Budget items like the Pioneer Generation Package. While I really want that to be funded, I am thinking about the long-term impact.
In fact, this year, of the $11 billion transfers that the Government budgeted, $8 billion came from the NIRC. If we continue with this, I am worried that we may be eroding the buffer for the future that we have been building for a long time.
On the rate of return – and this also leads to my next point – as the need for spending our reserves increases, would we then rely on better rate of return from the likes of Temasek, GIC and MAS so that our reserves would not decline so rapidly? What are the factors that will help to determine this?
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I would also like to take the opportunity to raise the point on whether our 2.5% interest rate paid out to the CPF Ordinary Account is a fair compensation for Singaporeans who have left their savings locked up for so long. I recently read that, in Malaysia, the EPF holders are paid 6% for their savings for a number of years, and this is much higher than the return we are paying to our CPF holders. If we can pay a higher return to the CPF holders, this may be a better approach than having to resort to Government transfers which may be unsustainable in the long term, and also disincentivise Singaporeans from working hard.
Perhaps, to help us better understand why our returns on the reserves are much lower than Malaysia's, can the Minister shed some light on what the returns of GIC, Temasek and MAS have been in the last five years, compared to that of Malaysia's?
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply Reporting Progress","subTitle":null,"sectionType":"OS","content":"The Deputy Prime Minister and Minister for Finance (Mr Tharman Shanmugaratnam): Sir, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again tomorrow.\" – [Mr Tharman Shanmugaratnam]. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Tharman Shanmugaratnam: Mr Deputy Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2013/2014, and ask leave to sit again tomorrow.
Mr Deputy Speaker: So be it.
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","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.\" – [Mr Gan Kim Yong]. (proc text)]
Adjourned accordingly at \t7.26 pm.
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