1 Mr Yee Jenn Jong asked the Acting Minister for Social and Family Development what is the number of childcare centres that had changed operator over the past three years and whether the Ministry tracks the reasons for the transfer of operators for the centres.
\tThe Acting Minister for Social and Family Development (Mr Chan Chun Sing): Each year, the number of centres that has a change in owner or ownership structure has remained fairly constant at about 4% to 5% of the total number of centres. About one-third are for administrative reasons, such as the inclusion of new persons as business partners or a change in ownership structure, for example, from sole proprietorship to partnership or private limited. The other two-thirds are due to sales to another owner for business reasons.
To ensure that standards of care and development are met, all childcare centres are licensed by MSF. Where there is a transfer of ownership, the new owner is required to apply for a new childcare licence. The owner and the centre concerned must meet the regulatory requirements before the licence is issued.
\tMr Yee Jenn Jong (Non-Constituency Member): I thank the Acting Minister for the answer. I just want a quick check as to whether MSF also monitors if there are any changes to the fees after the change of ownership in the immediate few months, and whether there is any trend in that respect.
\tMr Chan Chun Sing: Mdm Speaker, I thank Mr Yee for the supplementary question. No, we do not have the data at this point in time, but we do monitor any change in the fees made by the operators. We ask them to give adequate notice to the parents before any fee increase is made. Usually, for those who take the Government subsidies, we also scrutinise their cost structure to make sure that the fees are justified.
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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":"Programme for Rebuilding and Improving Existing Schools (PRIME)","subTitle":null,"sectionType":"OA","content":"2 Mr Yee Jenn Jong asked the Minister for Education with regard to the Programme for Rebuilding and Improving Existing Schools (PRIME) (a) how many schools have yet to commence on PRIME; and (b) when will Junior Colleges be scheduled for PRIME.\t
\tThe Senior Parliamentary Secretary to the Minister for Education (Mr Hawazi Daipi) (for the Minister for Education): Mdm Speaker, most schools that need to be upgraded under PRIME have been completed or are in progress of upgrading. Only 19 schools have yet to undergo PRIME. They will be phased based on the availability of suitable holding sites.
Junior Colleges (JCs) were upgraded under a separate JC upgrading programme from 1998 to 2005. Their infrastructural requirements are reviewed regularly by MOE.
\tMr Yee Jenn Jong: Mdm Speaker, just two supplementary questions. First, I need to declare that I am on the Advisory Board of a Junior College, although that PQ is not specific to any school in particular. The first question is that PRIME is into its 14th year. What are MOE's plans for the schools that are in the first phase of PRIME, which means that they are about 14 years old now? Are there any plans for the next cycle of PRIME, that is, PRIME 2, after all schools have finished and when? The next supplementary is: some of the older JCs have taken on the Integrated Programme but they have not gone for any upgrading. Is there any impact on the facilities or the lack of these on the operations of the schools?
\tMr Hawazi Daipi: Madam, as I have said in my reply, we always review the infrastructural needs of schools regularly. So, the needs of the schools and JCs will be taken into consideration. The programmes that JCs and schools organise are also taken into consideration in our planning for enhanced facilities.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Performance of PSC Undergraduate Scholarship Holders","subTitle":null,"sectionType":"OA","content":"3 Mr Yee Jenn Jong asked the Prime Minister with regard to PSC undergraduate scholarship holders over the past five years (a) how many graduated with (i) First Class Honours; (ii) Second Class Honours (Upper
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Division); (iii) Second Class Honours (Lower Division); and (iv) Third Class Honours and below, from local universities; and (b) how many graduated with (i) First Class Honours (ii) Second Class Honours (Upper Division) (iii) Second Class Honours (Lower Division) and (iv) Third Class Honours and below, from foreign universities.
\tThe Deputy Prime Minister and Coordinating Minister for National Security and Minister for Home Affairs (Mr Teo Chee Hean) (for the Prime Minister): Mdm Speaker, over the past five years, more than 97% of PSC scholarship holders graduated from local and overseas universities with good Honours, that is, a Second Upper and above or equivalent. There is no exact equivalent. We are not able to provide all the details requested by Mr Yee, as PSC scholarship holders pursue their studies in a variety of countries and institutions, some of which do not follow the Commonwealth \"Honours\" classification system.
We would like to stress that PSC scholarship applicants are not assessed based just on academic results, but on whole-person qualities to determine their suitability for the Public Service. Beyond academics, PSC scholarship holders are also encouraged to seek out diverse experiences by participating in internships, community initiatives and other programmes. This seeks to broaden their perspectives so that they can contribute better as public officers.
\tMr Yee Jenn Jong: I thank the Deputy Prime Minister for the answers. I am glad to know that 97% of the PSC scholars graduate with good Honours, which I take it to be Second Upper and above. I just want to know whether the PSC and MOE look at the comparison between the standards expected of PSC scholars and foreign scholars that are given scholarships. I understand from previous answers that the rate of international scholars who get good Honours is 65%, which is very low, compared to 97% for PSC scholars.
\tMr Teo Chee Hean: Mdm Speaker, the basis for awarding these scholarships is quite different. There is a variety of scholarships to our Universities which are awarded by the Universities, MOE and a range of bursaries and so forth. Scholarships awarded by the PSC are of very high standards. The expectations are that they do perform to very high standards. If the Member has a question on the performance of other scholarship holders in general, he may want to direct that to the Ministry of Education.
Mdm Speaker: Order. End of Question Time.
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[(proc text) Order read for consideration in Committee of Supply [Allotted Day]. (proc text)]
[Mdm Speaker in the Chair]
The Chairman: Supplementary Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads C, G, O, P, R, S and X of the Supplementary Main Estimates.
[(proc text) Question, \"That the sums stated for the Heads of Expenditure as shown on page 6 of Paper Cmd 4 of 2013 stand part of the Supplementary Main Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $831,326,100 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 2012 to 31 March 2013 contained in Paper Cmd 4 of 2013,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
[(proc text) Question, \"That the sums stated for Heads W and X as shown on page 8 of Paper Cmd 4 of 2013 stand part of the Supplementary Development Estimates,\" put and agreed to. (proc text)]
[(proc text) Question, \"That the sum of $833,819,800 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 2012 to 31 March 2013,\" put and agreed to. (proc text)]
[(proc text) Resolution to be reported. (proc text)]
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[(proc text) Thereupon, Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
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)]
[(proc text) \"That the sum of $831,326,100 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 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013.\" (proc text)]
[(proc text) Second Resolution reported – (proc text)]
[(proc text) \"The second resolution of the Committee of Supply is that the sum of $833,819,800 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 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013.\" (proc text)]
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 2013 to 31 March 2014","subTitle":"Committee of Supply – Paper Cmd 3 of 2013","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]
[Mdm Speaker in the Chair]
\tPage: 12
","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 N (Ministry of Foreign Affairs)","subTitle":null,"sectionType":"OS","content":"Dr Lim Wee Kiak (Nee Soon): Mdm Chairperson, I beg to move, \"That the total sum to be allocated for Head N of the Estimates be reduced by $100\".
The external geopolitical situation is getting more challenging and unpredictable. What started out as the Arab Spring has become a long-drawn and bitter winter, leaving millions of people in these countries divided and economies in a shamble. There are multiple flash points in the Middle East and Central and Northeast Asia that may threaten peace any time. North Korea has just warned that any joint military exercise by South Korean and the US allies in her vicinity is tantamount to a declaration of war.
Although the US remains the leading superpower in the world after the end of the Cold War, the rise of other large nations, including China, Russia and India, will affect the current equilibrium and bring about a New World Order. How do all these changes affect our foreign policies? Can MFA provide an update on the major developments in our external geopolitical environment and an assessment of how these will affect our foreign policy considerations, if any? How has MFA positioned itself to deal with the challenges in the new external geopolitical environment to help Singapore stay relevant and competitive? Is the MFA adequately staffed to deal with these changes? How many Foreign Service Officers do we have in the MFA currently? Has the number increased over the years? Does the MFA have the necessary resources to deal with the new challenges?
Ms Irene Ng Phek Hoong (Tampines): Madam, the changing strategic environment creates new challenges as well as opportunities for Singapore's foreign policy. While Singapore is a small state, its record has shown that, with visionary thinking, skilful diplomacy and courage, it can have significant influence on regional and global affairs, through cooperation with other countries or groupings, such as ASEAN.
The relationship between the US and China will decisively shape the 21st century world. A major concern is how the US-China rivalry will change regional dynamics and whether ASEAN will be united and retain a central role in the regional security architecture.
In the past, ASEAN members might have had their differences and disagreements with each other, but they maintained solidarity and consensus
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on key issues, building up its international credibility over the years. However, this reputation was damaged last year when it failed to agree on a joint communique at its ministerial meeting. The after-effects are still being felt.
On the face of it, it reflects the inability of the Cambodian Chair and some ASEAN members to settle differences over the mention of the South China Sea dispute. But there are deeper forces at work.
There is little doubt that Cambodia was under pressure from China to toe its line.
ASEAN solidarity has been breached with China leveraging on its economic and strategic clout – it is Cambodia's largest investor and a generous aid donor. If such pressure continues to be exerted and spreads to other ASEAN countries also beholden to China's largesse, there is a danger that ASEAN may not hold.
Madam, a key goal of Singapore's foreign policy is to build a strong, cohesive and autonomous ASEAN. Singapore should play a more pro-active role in influencing the course of regional affairs, especially in helping to get ASEAN back on track. Allowing events to take their own unguided course would mean running major risks.
One of our top priorities should be to explore how Singapore, together with other like-minded countries, can play a positive role in bringing together the US and China to focus on areas of common interest, and that will contribute towards a more stable strategic relationship.
Such collaborative engagement would contribute to the peace and security of this region, not least by avoiding dangerous military competition and confrontation between these two powers in the years ahead.
With the changing US-China dynamics, it is imperative for Singapore to deepen its relations with the US and China at the various levels, and over a much broader base. To the greatest extent possible, Singapore's relationship with these two powers needs to be insulated from the ups and downs of the US-China relationship.
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At the same time, we should strengthen our bilateral relations with ASEAN countries, and invest in win-win projects that cement our relationship. In this regard, I welcome the Iskandar project with Malaysia.
We need to also step up our assistance to developing countries and extend our soft power. An important platform is the Singapore Cooperation Programme (SCP). Can the Minister give an update of bilateral relations with ASEAN countries and an assessment of the SCP?
Given the uncertainties ahead, we should diversify our economic and security interests. Singapore has been at the forefront of moves to encourage greater economic integration in Asia and Australasia, and to promote global free trade. Can the Minister update us of these efforts and how we are expanding to emerging markets, such as the Middle East and Latin America?
Singapore is a small country, but we can punch above our weight in the international field with pragmatic diplomacy and delicate skill.
Assoc Prof Fatimah Lateef (Marine Parade): Madam, the South China Sea issue has been through rounds of discussions, with various parties stating their views on the matter. Cambodia, ASEAN's Chair, has earlier announced the consensus will not be internationalised on this maritime dispute. However, with the latest move by the Philippines to take China to international arbitration, are there any new developments or updates from the ASEAN front? What happened to an earlier suggestion to discuss the issue at the ASEAN-China framework? Do we still think that we will have the intended outcome with a Code of Conduct arrived at?
The Chairman: Dr Lim Wee Kiak, you have two cuts. You can take them together.
Dr Lim Wee Kiak: Mdm Chairperson, ASEAN was formed on 8 August 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand, and, later, the membership expanded to include Brunei, Myanmar, Cambodia, Laos and Vietnam.
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ASEAN covers a land area of 4.46 million sq km, which is about 3% of the total land area on earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. Together, ASEAN has a combined nominal GDP growth of about US$1.8 trillion. If ASEAN were a single entity, it would rank the 10th largest economy in the world.
How has ASEAN performed so far as a geopolitical grouping? In July 2012, for the first time in its history, the ASEAN Ministerial Meeting failed to issue a communique. If ASEAN solidarity cannot be assured, will ASEAN be able to maintain its position at the hub of ASEAN-centric regional institutions that shape the regional order in the Asia Pacific? If such a situation persists, what are the implications for Singapore? With no Ministerial Statement in the July ASEAN Ministerial Meeting, which some see as a sign of disunity, what impact might this have on ASEAN's plans towards establishing a community by 2015, and ASEAN's credibility?
Considering that freedom of navigation in the sea lanes of communication in the South China Sea is vital for Singapore's economic security, can the Minister highlight whether we can expect any progress on the Code of Conduct for the South China Sea? Can MFA explain what the implications on ASEAN are with regard to the recent Philippine move to bring China to arbitration in the South China dispute? Can MFA give an update on ASEAN Community 2015?
With only two years remaining, can we achieve the goals and the target set to be an ASEAN Community by 2015? What are MFA's assessment and expectations of the Brunei ASEAN Chairmanship and what about the bilateral relationships between Singapore and Brunei? What is MFA doing about our bilateral relations between Singapore and the key ASEAN member states, such as Indonesia, Malaysia, Vietnam and Thailand? Can MFA briefly update us on the developments in Myanmar and whether Singapore has a role to play in its reform processes?
Mdm Chairperson, the Sino-American relationship has been described by top leaders and academics as the world's most important bilateral relationship of the 21st century. Most analysts characterise the present Sino-American relationship as being complex and multi-faceted. The United States and the People's Republic of China are neither allies nor enemies. The US government and her military establishment do not regard the Chinese as an adversary but
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as a competitor in some areas and a partner in some.
How is the evolving US-China relationship, in which there is growing competition and tension between the two, affecting Singapore and ASEAN? What role does Singapore have to play? Singapore has enjoyed strong and good relations with both countries. How will their tension and competition affect this relationship?
Does MFA expect any changes in the US' engagement of Asia in light of the appointment of the new US Secretary of State, Mr John Kerry? Similarly, does MFA expect any further changes in China's engagement of ASEAN and Singapore, in light of the new leadership change recently?
It is, indeed, important for the US and China to continue on a cordial as well as competitive relationship. It is also important for a strong US military presence in the South China Sea to help to maintain a balance. Singapore's sentiments and logistical support for the US forces are obvious. With a new leadership in China, President Xi may likely adopt a \"hard ball\" approach, especially in respect of the Senkaku or Diaoyu Islands dispute. The US is obliged to lean towards Japan in the event of hostility. China is also involved in territorial disputes with other ASEAN countries, too. US involvement may be unavoidable in the case of the Philippines as well. How will this impact our relationship with China?
The Minister of State for Trade and Industry (Mr Teo Ser Luck): Mdm Speaker, in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] As the annual plenary session of the National People's Congress and Political Consultative Conference is currently on-going in China, there will be more leadership renewal and transition in the next two weeks, with the rise of more young leaders taking on more important roles and responsibilities.
At the highest level of the Chinese Communist Party, there are seven Central Politburo members, and Singapore leaders have close ties with most of these Central Politburo members.
Our political leaders have always maintained close ties with the leaders of China, dating back to the bilateral meeting between former Prime Minister Lee
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Kuan Yew and former Chinese leader Deng Xiao Ping, which paved the way for several bilateral collaborations, deepened ties between Singapore and China, and led to the establishment of the Suzhou Industrial Park and, more recently, the Tianjin Eco-city and Guangzhou Knowledge Hub. These projects not only promoted closer trade ties between the two countries, but also created job opportunities for both the peoples of China and Singapore. Singapore and China also established seven bilateral trade councils.
Currently, China is undergoing political leadership renewal at all levels, including provincial and municipal levels. Has MFA considered how our long- and short-term diplomatic ties with China will change, in terms of planning and the way ties are maintained?
Mr Hawazi Daipi (Sembawang): Mdm Chair, China is important to us and we watch developments in China with a keen eye. It is undergoing a once-in-a-decade change in leadership. The new generation of leaders are ushered in at China's 18th Communist Party Congress in November last year.
China is growing in economic and political importance. It is developing rapidly and will have increasing influence, not only on the region, but also in global affairs. It is already the world's second largest economy, and many of its companies have become major international players. As it becomes even stronger, China's leaders will certainly become more confident. The way in which they manage China's relations with the rest of the world will naturally evolve. With this change, does MFA expect any change in relations with China?
I share the concern of Mr Teo that there are also cascading changes in leadership at the provisional level, and we have several collaborations with provinces as well. For example, in Tianjin, there is the on-going Eco-city project. With the leadership change, will it affect the progress of our engagement with the individual provinces and cities in China?
Mr Ong Teng Koon (Sembawang): Mdm Chair, relations between Singapore and the European Union reached a milestone in December 2012 when the EU-Singapore Free Trade Agreement was successfully concluded. This important FTA will pave the way for greater market access and increase trading links to each other's markets. It will also see the removal of a number of tariff and non-tariff measures.
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For Singapore, the 27 member states of the EU and the Union itself represent important political, economic, social and cultural influences. For the EU, Singapore is an important hub and gateway to Asia.
It is thus mutually beneficial for Singapore and the EU to maintain good relations and find more common areas for cooperation. I would like to ask the Ministry how Singapore is managing other bilateral relationships with major economies, such as the EU, and how do we build more common ground with these entities for our mutual benefit.
Ms Ellen Lee (Sembawang): Mdm Chair, through suspending sanctions on Myanmar, acceding to ASEAN's Treaty of Amity and Cooperation, and completing a successful ministerial meeting in April 2012, the EU has shown strong interest in upgrading its relationship with ASEAN. It is widely felt that the EU could do more in economic relations and cultural exchanges. Can the Minister please explain why Singapore seems to have taken a longer time to conclude its FTA negotiations with the EU and how it was clinched? What plans does MFA have to actively encourage people-to-people exchanges or promote cultural ties between the EU and Singaporeans?
Next, recently, the media reported that Temasek Holdings paid 1 billion euros for shares in Repsol, Spain's biggest oil company. Repsol sold shares to protect its credit rating and, for Singapore, this purchase represents her biggest investment in Spain. How will this purchase benefit Singapore or improve our bilateral relations?
The late President Hugo Chavez of Venezuela, Latin America's symbol of socialism, died on 5 March 2013, after being in office for 14 years. Media reported that the controversial, anti-America leader was much loved by poor Venezuelans for his populist policies funded by the country's vast oil reserves. It is not clear if his appointed successor, Vice President Nicolas Maduro, will win the coming elections and carry on with his populist policies. In what way will Singapore's relations with Venezuela be affected by the political upheaval?
Besides Venezuela, what is the extent of Singapore's engagement of emerging markets in Latin America? How does MFA assess the progress, and what more will MFA be doing?
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Mr Ong Teng Koon: Mdm Chair, Latin America is most famous for its footballing prowess. Brazil, Argentina and Uruguay have won the World Cup nine times amongst them. Pele, Maradona and Messi are familiar names to many people.
What is less often mentioned about Latin America is its increasing prominence and influence as a political and economic bloc. As a continent, it possesses enormous natural reserves which give it broad sway in its international trade relations.
Chile, as a country, produces 30% of the world's copper, an important raw material especially to China. Venezuela is an important producer of oil. Brazil is regarded as one of the new engines of growth for the world, not to mention Argentina and Mexico who have dynamic and young economies and are growing very rapidly.
Latin America holds many opportunities for Singapore as a trade partner as well as in other areas of international cooperation, such as in security and representations on international forums. What is MFA's assessment of emerging markets in Latin America, and Singapore's engagement of countries in this region?
Mr Teo Ser Luck: Given the uncertainties in the Middle East, with civil war in Syria, political instability in Libya, conflicts between Israel and Palestine, Iran's nuclear ambition and so on, countries in the region would be focusing more on dealing with challenges at home.
In this context, is there still an interest from countries in the Middle East to engage with Singapore? The Middle East region covers a wide area. Is there a particular area or are there any particular countries in the Middle East region which MFA is focusing on? We have already established a diplomatic presence in a few countries in the Middle East. Are there plans to expand Singapore's diplomatic presence in the region?
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I believe that Middle East diplomacy for us cannot be a one-size-fits-all approach. It is complex, much of it due to the history, geography, domestic factors, regional alliances, Western influence and conflict. What is Singapore's engagement, diplomatic strategy and approach for the Middle East?
Mr Hawazi Daipi: Mdm Chair, as a small country, Singapore needs to be friendly to all. We stepped up our engagement with the Middle East since 2004. This has benefited us in enlarging both our political and economic space. However, since the Arab Spring in 2011, the geopolitical situation in the region has changed and, in some cases, the security situation has deteriorated.
How have these changes affected our perspective towards the Middle East? Despite the sweeping changes that have taken place in some countries, has MFA found new areas of cooperation to expand our engagement?
Secondly, we need as many friends on the international stage as possible. Many Singaporeans are travelling to Turkey and other countries rich in history and culture situated at the crossroads of Asia and Europe. It has been growing in stature and importance. Its leaders have expressed interest in engaging Southeast Asia.
I know that Minister Shanmugam had travelled to Turkey earlier this year. Given Turkey's international stature and regional influence and its interest in Southeast Asia, how do we plan to increase our engagement of Turkey, and having established an embassy in Ankara, do we plan to establish other embassies in other parts of the Middle East?
Mr Teo Ser Luck: Over the years when Singapore was a developing country, we had been helped by many developed nations, and now that Singapore is a developed country, we are beginning to look at developing countries that have been left behind and provide any assistance that is possible.
I have been to Myanmar and seen many of our private sector companies going there to provide educational services, infrastructure development and healthcare services. Could MFA provide an update on Singapore's recent assistance to those of the other developing countries?
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Mr Alex Yam (Chua Chu Kang): Mdm Chair, when I was studying international relations in University, we referred to consular services as the \"Cinderella services of diplomacy\". Just like Cinderella – much abused, much neglected and underpaid.
With increasing numbers of Singaporeans living, travelling, working or studying overseas, and with the wide range of consular services now available across an increased number of countries and regions, I would like to ask the Ministry if there has been an increase in the number of requests for consular support, and what have been some of the challenges faced.
In addition, would MFA, like in some foreign ministries in other countries, consider charging a call-out fee for out-of-ordinary requests or negligent claims?
With consular staff increasingly being called to help an irresponsible minority whose problems may have been easily avoided through better planning or sensible behaviour when overseass, I further suggest that the Ministry increase its publicity to influence behaviour of those travelling, and also to publicise more case studies regularly to demonstrate the consequences of irresponsible behaviours overseas.
Consular staff are often mistakenly perceived within the diplomatic services of having a lower status than other Foreign Service Officers. It is often shunned elsewhere as a career route. I would like to ask if the Ministry is currently understaffed in terms of consular services and perhaps, our consular and Foreign Service Officers should have their salary scales reviewed to keep in line with existing Administrative Service pay scales.
Lastly, on the subject of Honorary Consuls and locally-engaged staff in other countries, does the Ministry have an assessment of the roles played so far by these Honorary Consuls, and whether there is a case for more professional officers or to continue with the robust system of Honorary Consuls?
All of this is especially so, with the domestic reputation of the Ministry dependent to a degree on the perceived success in meeting our citizens' expectations overseas. I urge, therefore, for a greater priority on consular services so that there is no longer just Cinderella, but that they enjoy a happy ever after!
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Mr Sitoh Yih Pin (Potong Pasir): Mdm Chairperson, MFA performs the pivotal task of protecting Singapore's national interests through foreign and diplomatic relations. It also performs another extremely important task \"behind the scenes\" – consular services. Consular services do not often get much limelight. A lot of the work goes on behind the scenes. Yet, this is a very important function.
In a globally connected world, Singaporeans enjoy the benefits of easily available and accessible travel. Yet, whilst travel and living abroad have become easier, the problems that Singaporeans face overseas may have not. Whether these are problems that are endemic to the country that they live in or travel to, or personal problems that they face, consular services often have to \"come to the rescue\".
Yet, it is not often easy to provide these services. How do we decide what are requests that can be attended to, as opposed to requests that have to be turned down for a variety of reasons?
For example, we do not have an established presence in all countries. It is, therefore, often difficult to provide immediate assistance to Singaporeans who may be in a part of the world where our modest arms do not reach. Even so, when our consular services respond, the assistance may be delayed for a number of logistical reasons.
Similarly, to each his or her own problem is of utmost importance and almost always requires immediate attention. In such a situation, our consular officers try their very best to deal with the problem. However, some problems do not fall within the purview of consular services. Similarly, some personal problems cannot be dealt with by the State. Sometimes, there is only so much that can be done and nothing more. Some have to be turned away. Others have to be told that this is the end of the road. This may not go down well and it may leave a bitter taste.
Madam, consular assistance is provided under some very difficult circumstances. Physical constraints are one thing. Often, the difficulty is in turning away fellow Singaporeans when there is little that can be done.
On 10 December 2011, the BBC (UK) published an online article entitled, \"Foreign Office reveals some weird requests to consulates\". Here are some of the examples that were cited: one, a man called the consulate in Sydney asking what clothes he should pack for his holiday; two, the caller to the Foreign Office
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staff in Spain wanted Prince Charles' shoe size, so he could send him shoes as a present; and, finally, a man asked consular staff in Dubai to meet his dog on arrival at customs and help it through the customs process.
The Minister for Foreign Affairs and Minister for Law (Mr K Shanmugam): Madam, I thank Members for questions on Singapore's foreign relations. My fellow officeholders and I will answer the questions.
Let me start with an overview. The external environment for 2013 will continue to be challenging because the fragile international economic and financial situation will continue.
There is a deficit in global leadership. The United States is still the only truly global power. Its leadership role is indispensable for the foreseeable future but it is preoccupied domestically. It needs to overcome its domestic political gridlock to jumpstart the economy. China is reluctant to assume greater responsibilities of global leadership, preoccupied with maintaining domestic stability and sustaining economic growth. If you look at other major countries globally and in the region, the European Union, Japan, Republic of Korea, India, as well as multi-national institutions, they are not yet ready for truly global leadership.
We are living through a period of transition and adjustment as relative power balances are adjusted. So, the geopolitical environment will continue to be volatile and, in our own region, that is reflected in enhanced tensions – such as the maritime claims, for example, the China-Japan, South China Sea issues.
Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Assoc Prof Fatimah Lateef asked about the recent developments in the region, including the South China Sea dispute and its implications on Singapore and ASEAN.
Strengthening regional relationships is the key to protecting our interests in this unpredictable environment. ASEAN reflects as well as mitigates diversities inherent in the region. It is strategically vital to Singapore as a buffer as well as an influence multiplier.
Twenty twelve was not a year that ASEAN could be particularly proud of. Its unity and credibility were painfully tested by the South China Sea issue during Cambodia's chairmanship. On-going developments in South China Sea
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will continue to present challenges.
The initiation of arbitration proceedings by the Philippines against China was a national decision of the Philippines. ASEAN was not consulted. China has decided not to participate in the Tribunal hearings. But that is not the end of the story. The Tribunal may proceed even without China's participation. We can only hope that all parties will remain calm.
ASEAN's and Singapore's positions remain unchanged on these issues. ASEAN's six-point principle issued on 20 July 2012 called for formal negotiations on a Code of Conduct (COC). Singapore's position is as stated in our Press Release of 23 January 2013.
ASEAN and China held several rounds of informal consultations on the Declaration on the Conduct of Parties (DOC) in the South China Sea and COC at officials' level over the past year. Senior officials from ASEAN and China will meet next month in Beijing.
ASEAN is united in the view that formal discussions between all 10 ASEAN members and China on the COC should begin as soon as possible. It is important for ASEAN to regain unity and credibility by realising community-building targets by 31 December 2015.
ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP) present opportunities for Singapore. We will remain relevant and effective, and taking positions on key issues affecting our region, including the South China Sea. It is also important for ASEAN to retain its central role in the regional architecture, particularly in the East Asia Summit.
This depends on our community-building efforts, particularly the economic pillar, which must continue beyond 2015.
Brunei's Chairmanship this year will be crucial. Brunei is an experienced and committed member of ASEAN. We are confident that it will promote consensus through consultations with all ASEAN members and Dialogue Partners. Singapore strongly supports Brunei. We will work closely together with the others to ensure that its Chairmanship is a success.
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Dr Lim Wee Kiak asked about Singapore's bilateral relations with our neighbouring countries. We have built a firm foundation of strong bilateral relationships in the region. We have good relations with all ASEAN members, in particular, strong ties with Malaysia and Indonesia, which are strong, broad-based and steady bilateral cooperation. All sides recognise the benefits of working together. The Leaders' Retreat with Malaysia in February took place successfully, and there will be one with Indonesia in April.
Elections are expected to take place in Malaysia soon and, in Indonesia, of course, by mid-2014. We will work with both countries and their leaderships, and we will continue to strengthen many existing institutional links.
With Vietnam, we have many high level exchanges. Bilateral relations continue to strengthen. The 40th anniversary celebration is later this year and we are working towards a strategic partnership.
With Thailand, we have strong long-standing ties, underscored by strong institutional linkages. The Thailand-Singapore Civil Service Exchange Programme, which I officiated with the Thai Foreign Minister in January, is one example and brings our civil services closer together.
With Myanmar, the story is positive and encouraging with an upward trajectory in developments. We will keep up our commitment to help Myanmar in capacity building.
With Brunei, the special relations are based on close personal ties, common strategic outlook and interests. Long-standing cooperative arrangements include the Currency Interchangeability Agreement and, of course, SAF training facilities.
Minister of State Teo Ser Luck, Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Ms Irene Ng asked about the United States engagement with Asia in the light of the appointment of a new Secretary of State and the growing US-China competition in this region, and how it might affect Singapore's bilateral relations with the United States and China. The US-China relationship is a defining relationship for the region and the world. The United States has strong historical presence in the region since the end of World War II. That has brought a long period of peace, prosperity and stability for the region and it is a foundation for growth.
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It is an important trade and investment partner for Singapore and the region. It is our single largest foreign direct investor and the fifth largest trading partner, at about US$200 billion of bilateral trade with ASEAN and the fourth largest foreign direct investor in ASEAN. It is a vital source of technology and management expertise. The United States' engagement of our region has to be based on US' interests and not personalities. That has been a basic continuum for more than 30 years, although the tempo of engagement has stepped up of late. This is welcomed and it is significant that President Obama attended the ASEAN-US Leaders' meeting every year. We hope that the new Secretary of State, John Kerry, will continue the US' active engagement of the region and will make an early visit to Southeast Asia.
China, geographically, is obviously an intrinsic part of the region with strong historical links, as well as growing economic ties with all ASEAN members states. China's growth is fundamental for Singapore's own success and for the region's success. It has provided strong support for ASEAN Connectivity, for example, the US$10 billion ASEAN-China Investment Cooperation Fund and US$15 billion credit support scheme.
It is in our region's interest to keep both the United States and China engaged in our region in a collaborative manner, accommodating each other's and the region's interests to enhance peace and stability in the region.
The US and China are deeply interdependent across a broad spectrum of areas. Neither can prosper without the other, and both know that. Many bilateral platforms of engagement between the two exist as well as engagement within the regional architecture, for example, the East Asia Summit and the ASEAN Regional Forum (ARF), but we must recognise that competition is an intrinsic part of any great power relationship – interdependence co-exists with strategic wariness. If tensions rise within them, that will unsettle the region, and the domestic politics in both countries is an unknown x-factor.
Singapore's consistent position is to maintain strong links with both – close cooperation and common interests across a range of issues, and good personal relationships between our leaders and theirs, sustained through leadership changes in both countries. And there are good institutional links, for example, the Joint Council for Bilateral Cooperation with China and the US-Singapore Strategic Partnership Dialogue. These relationships are maintained by frequent high level exchanges. I will be visiting the United States shortly, in fact, next week, where I will meet Secretary Kerry. If schedules allow, I also plan to visit
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China later in the year.
Second Minister Grace Fu, Senior Minister Masagos Zulkifli and Senior Parliamentary Secretary Sam Tan will respond to the remaining questions. But let me emphasise some key points.
The uncertain geopolitical situation and global economic uncertainties continue. We have worked hard to ensure that we are well positioned to meet those challenges. We have worked to strengthen ASEAN, built up bilateral accounts with our regional neighbours as well as major powers, but we cannot be complacent. We will continue to stay alert and nimble, and to respond to challenges and opportunities.
People are the key to diplomacy – there is no substitute for people – and MFA is fortunate to have quality staff. The Foreign Service must remain competitive, both with other services in the public sector and in the private sector. And that is necessary for maintaining the high standards in safeguarding and advancing Singapore's interests.
The Second Minister for Foreign Affairs (Ms Grace Fu Hai Yien): Madam, Mr Ong Teng Koon and Ms Ellen Lee asked about our relations with the EU and other major economies, including the Latin American countries. Ms Ellen Lee also asked about the time taken to conclude our FTA negotiations with the EU.
Negotiations on the US-Singapore Free Trade Agreement started in March 2010. It was substantively concluded on 16 December 2012. This is about the same time as we have taken to negotiate our FTAs with the US, China and India. Both the EU and Singapore wanted the FTA to be comprehensive and ambitious. It covers not just conventional trade issues, such as tariffs and custom procedures, but also newer issues, such as renewable energy generation and sustainable development. MFA and MTI had to negotiate these issues carefully, consulting multiple stakeholders, including our local agencies and business associations and the 27 EU member states and understanding the present and future realities and needs of both parties. Our general approach towards all negotiations is that it is more important to do it right than to do it fast. We are confident that we have secured a comprehensive and high quality agreement that will benefit both businesses and consumers of both regions.
We are also negotiating the EU-Singapore Partnership and Cooperation Agreement (ESPCA), which is a broad framework agreement for deeper
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economic, political and cultural cooperation between Singapore and the EU. Approval of the EU FTA and ESPCA by the EU Council and ratification by the European Parliament and national Parliaments of 27 EU member states is a complex process and will take time.
Ms Ellen Lee also asked about people-to-people exchanges with the EU. In fact, we agree with Ms Lee that we need to promote broad-based exchanges between Singapore and the EU and, in fact, we have been doing so. On the education front, the Universities have already started many exchange programmes and also, on the cultural front, we have many offerings from European countries and performance groups in the area of film festivals, performances, exhibitions of paintings and art work. There are extensive exchanges across a broad range of areas, from political, economic to people to people.
EU countries are important sources of investments in Singapore. Similarly, investments from Singapore into EU countries have been gaining strength. It stands at $47 billion as at 2011. Repsol is the latest. It is a commercial decision by our business. For increasing our presence in EU and in Singapore, it is important to have deep economic relations. We will continue to be supportive to our businesses in expanding the economic opportunities overseas.
We have maintained good relations with other key partners of strategic importance to us. The EU-Singapore FTA joins a network of FTAs that Singapore has with the world's major economies – ASEAN, US, China, Japan, the Republic of Korea, India and Australia. We are also negotiating the Transpacific Partnership Agreement which started with Brunei, Chile and New Zealand, and now includes the US, Australia, Peru, Vietnam, Malaysia and, more recently, Mexico and Canada. We hope Japan will join soon. Japan is a strategically important country that should not be excluded.
These FTA networks are not just important economically but also strategically. They provide strong institutional links to key global and regional powers. Members will know how vital international trade is to Singapore. As our FTAs are all WTO-plus – in other words, they have better terms than WTO commitments – collectively, they help to provide an added impetus to global trade liberalisation talks.
We would like to thank Mr Ong Teng Koon for highlighting the potential of Latin America as well as giving us an education on football. It is important that we continue to engage emerging markets in Latin America. We fully recognise
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that it is increasing in economic and political influence. Trade with the region has more than doubled since 2005 to reach US$30 billion in 2011. Countries like Brazil and Mexico are playing important roles in international bodies, such as the UN, G20 and WTO. This is why we opened our first Embassy in Latin America in Brazilia in September 2012. Minister Shanmugam will be visiting Brazil in early April.
It is also interesting to note that the Latin American countries are expressing greater interest in Asia, in ASEAN and in Singapore. We have stepped up political engagement in the past few years, both at the leaders' and at the official levels, through institutionalised bilateral political consultations. In the past three years alone, we have concluded five air services agreements with Brazil, Ecuador, Paraguay, Colombia and Uruguay. We have signed a DTA with Panama and are in negotiations with Ecuador, Peru and Uruguay. We have also signed a partial Visa Abolition Agreement with Brazil, and both Uruguay and Mexico have unilaterally waived visa requirements. These agreements, including work on investment guarantee agreements, will make it easier for our companies to do business in Latin America.
Ms Ellen Lee asked about the passing of Venezuelan President Mr Hugo Chavez. First of all, let me express my condolences to the people of Venezuela on the passing of President Hugo Chavez who will be sadly missed by his people.
Singapore enjoys good economic ties with Venezuela. We understand that presidential elections will be held in 30 days and Vice-President Nicholas Maduro will assume the presidency in the interim.
We will continue to work closely with President Chavez's successor in strengthening our bilateral relations. Senior Minister of State Mr Masagos Zulkifli, will now speak about our engagement of major markets in the Middle East.
The Senior Minister of State for Foreign Affairs (Mr Masagos Zulkifli B M M): Mdm Chairman, Minister of State Teo Ser Luck and Senior Parliamentary Secretary Hawazi Daipi asked about developments in the Middle East and Singapore's efforts to tap on the emerging markets in the Middle East and Turkey.
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Singapore is actively expanding our reach to emerging markets in the Middle East. We are monitoring the fluid geopolitical situation in the region closely where the uncertainties are mainly in Levant and the Maghreb. Our focus in the region remains on the Gulf countries which are stable, perhaps except for Yemen. Last year, our trade with Middle East countries reached S$75.9 billion. We will establish a Consulate-General in Muscat, Oman, later this year. With this, we now have a diplomatic presence on the ground in Egypt, Saudi Arabia, Abu Dhabi, Dubai, Qatar and Oman.
Our engagement is not only economic. There remains keen interest to learn from Singapore's developmental experience. For instance, the Crown Prince of Abu Dhabi, Sheikh Mohamad bin Zayed Al Nahyan, instructed officials to visit Singapore just a few months ago to understand our water management strategies – a strategic issue for the UAE.
We also received study visits by the Egyptian Muslim Brotherhood to learn from our developmental experience in areas, such as economic planning, developing SMEs, public administration and port management. I called on President Mohamed Morsi when I visited Cairo last November, and he expressed admiration for Singapore's achievements. As Egypt undergoes a challenging political transition, Singapore is happy to share our experiences where relevant.
The Palestinians have also expressed interest in learning from Singapore. Last month, I attended the Conference on Cooperation among East Asian Countries for the Palestinian Development in Tokyo where we pledged Singapore's assistance towards the Palestinian National Authority's capacity-building efforts – an enhanced technical assistance package worth S$5 million over five years. I also met Prime Minister Salam Fayyad, who highlighted education as one area they are keen to learn from Singapore's experience.
Singapore has been expanding relations with Turkey too, which has a growing importance both in the Middle East and Asia. We opened an Embassy in Ankara in July 2012 and there has been increased bilateral engagement. Minister Shanmugam visited Turkey in January 2013 and he had a good discussion with Turkish leaders on how to enhance economic, transport and cultural relations.
Another emerging market that we have been watching is Africa, where recent developments and economic performance have opened up possible
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opportunities for Singapore companies.
Let me now hand over to Senior Parliamentary Secretary Sam Tan who will respond to the rest of the questions on Singapore's technical assistance to other countries and MFA's consular assistance to Singaporeans.
The Senior Parliamentary Secretary to the Minister for Foreign Affairs (Mr Sam Tan Chin Siong): Mdm Chairperson, Mr Teo Ser Luck and Ms Irene Ng asked about the rationale behind Singapore's assistance to other countries and how this has benefited Singapore.
Mdm Chair, Singapore extends technical assistance to other countries, mainly through the Singapore Cooperation Programme (SCP). This is the right thing to do because we want to give back something to the international community for the assistance that we had received in the early days of our independence. However, we do not extend financial aid or fund infrastructure projects as we find that giving technical assistance is actually the most effective and the prudent way for us to help others.
Through the SCP, we train officials from many other countries in areas where Singapore is strong, such as public administration, economic development, port management, civil aviation and water management, and the list goes on. Helping our neighbours and friends through the SCP can, in return, benefit Singapore, too. A good part of the SCP is aimed at strengthening ASEAN. It is in our interest that our region is well governed and attractive to international investment. So, Singapore also benefits when other countries are well equipped to deal with transnational challenges, such as financial crises, terrorism and pandemics.
The SCP also helps Singapore build friendships. The SCP is very well received and well regarded by our friends and partners and, since the establishment of the SCP in 1992, we have trained more than 80,000 officials from over 170 countries. So, for a small country like Singapore, it is important to have this international network of friends who help us defend our interests at the United Nations and also other international organisations.
Mdm Chairperson, Mr Sitoh Yih Pin and Mr Alex Yam asked about what MFA deems as reasonable or unreasonable requests by Singaporeans for consular assistance. I would like to take this opportunity to assure Mr Alex Yam that our consular officers have long passed through the stage of \"Cinderalla\", although they may not have been transformed into princesses. Nonetheless,
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they live quite happily ever after, so long as they do not receive too many of those weird or unreasonable consular requests.
Madam, there is an increasing challenge of meeting the rising demands for prompt and effective consular services. From 2001 to 2012, overseas travel by Singaporeans increased by 67% from 3.8 million to 6.4 million annually. In 2012 alone, MFA handled almost 4,000 cases of consular requests for assistance. MFA treats all the requests for consular assistance seriously and we will continue to do all we can to assist Singaporeans in distress. But there are also clear limits to which and to what we can do. We need to act in accordance with international conventions, for example, the Vienna Convention on Consular Relations. We also need to respect local laws and the judicial processes in other countries.
Mdm Chairperson, most of the consular requests are reasonable and have been rendered the necessary and appropriate assistance. But like what was mentioned by Mr Sitoh Yih Pin just now, he quoted the BBC's report on weird consular requests and I would also want to report to this House that, in Singapore, we, too, face a fair share of such unreasonable and weird requests. Just let me cite a few examples. We had a request for assistance from a Singaporean to seek a refund after he had procured illegal sexual services. Another case involved a Singaporean living in Indonesia and he requested MFA to ship to him a desktop computer that he had ordered online from the US. Another Singaporean had also sought MFA's assistance to persuade his foreign girlfriend to expedite her divorce proceedings with her husband so that he could marry her.
Such requests divert our limited resources from handling cases of Singaporeans in genuine distress. We are continuing to train and professionalise our Consular Officers at headquarters and at our Overseas Missions. We are also constantly reviewing our work processes to better meet the public needs for effective consular services.
Our 47 Overseas Missions are supported by another 29 Honorary Consuls-General offices which provide consular coverage in countries where Singapore does not have resident missions. Where we do not have representation, there is also an agreement among ASEAN countries to help each other's nationals when there is an emergency. We can also request assistance from friendly countries like the UK, Australia and New Zealand to render consular services to Singaporeans in places where we do not have a presence while these countries
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have a presence.
Finally, we are also leveraging on new technology to improve the quality of our consular services. We launched a mobile application called MFA@SG in August 2012 to allow the public to eRegister and access useful consular information on their smartphones. So, I would like to take this opportunity to encourage Singaporeans to eRegister with MFA when they travel overseas. This will allow MFA to provide timely information to them should there be emergencies in the countries that they travel to.
In conclusion, Mdm Chairperson, as Minister Shanmugam mentioned, MFA will face increasing demands and challenges, not only because of external uncertainties, but also from rising expectations of Singaporeans. We will continue to work hard to tackle these challenges so as to uphold Singapore's and MFA's credibility and good standing, both in the international arena and also amongst Singaporeans.
The Chairman: We have a bit of time for clarifications. Do any Members wish to seek clarifications?
Dr Lim Wee Kiak: Mdm Chairperson, I would like to thank the Senior Minister of State for talking about the launch of the electronic service. That was one of my suggestions last year. I would like to ask the Minister regarding visa-free travel. I understand that the Singapore passport can actually be used to travel to 164 countries visa-free. Within ASEAN itself, the only country that we cannot travel to visa-free is Myanmar. I am not sure whether MFA is working on this, and when will Singaporeans be able to travel visa-free to Myanmar. That is one question.
The other question is on ASEAN Community 2015. What is the Minister's assessment on ASEAN Community 2015, and whether we will be able to achieve the target? Last of all is that when the KL-Singapore high-speed rail is achieved, will there be a possibility there will be a passport-free travel between Singapore and Malaysia?
Mr K Shanmugam: Let me take those three questions in sequence. For visa-free travel to Myanmar, it depends on the Myanmar authorities. Each country decides the framework for immigration, and the current approach of the Myanmarese government is that they require visas. Sometimes, these issues depend on reciprocity as well. In general, and I am not just talking about Myanmar, if reciprocity is required, then from our end, we will also have to
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consider and assess the security situation which depends on Home Affairs and its agencies. That really answers the third question as well in terms of Malaysia and Singapore.
As regards ASEAN 2015, it is a goal, a vision, something that we want to achieve. It is in our interests as well as the interest of all the ASEAN countries to achieve it. And we have a two-speed process for that because different countries are at different levels of development. We have made considerable progress in terms of removing tariff barriers, in terms of people-to-people connections and political and strategic issues. What I can say to Members is that we will continue to work very hard to try and achieve it. It does not just depend on us; it depends on other countries, their internal processes and political processes. So, we will have to see.
Ms Irene Ng Phek Hoong: Thank you, Madam. In my speech I spoke about the challenges facing ASEAN and urged Singapore to play a more proactive role in getting ASEAN back on track. Can I ask the Minister, how he sees Singapore's role in improving relations in ASEAN and guiding ASEAN through this turbulent and uncertain time, even if it is leading from behind? Does MFA have any specific ideas on how we can drive ASEAN in the right direction towards a more cohesive and strong and autonomous ASEAN?
Mr K Shanmugam: I think the question raises two aspects. It is not just about relationships within ASEAN that may have an impact on ASEAN unity. It is also about relationships between specific ASEAN countries and external powers, which could have an impact on ASEAN unity. ASEAN, as an organisation, moves on the basis of consensus. The inherent logic of ASEAN acting together is obviously there, but at the same time, each country looks at its own interests while looking at it within the framework of ASEAN unity. And on specific issues, any country may well decide its interests do not coincide with that of the other countries. In such situations, it is not often easy to convince any particular country that, for the sake of ASEAN unity, they should take a particular position. Every country understandably will put its own interests, front and centre.
What are we doing about it? We work closely with many other countries to try and move ASEAN further, for example, towards the vision of ASEAN 2015. If you take the South China Sea dispute, the Foreign Ministers' meeting last year in Phnom Penh did not end in a glorious success. There was no joint
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communique. But soon thereafter, we had the Six-Point principles issued at the initiative of Indonesia. We were very supportive of Indonesia's initiative. Likewise, we, in our own way, have talked to all the different ASEAN countries to see how we can come together and move together. We have played a significant role in the ASEAN 2015 vision, both on the trade and industry side, as well as on the MFA side. We work very closely with our partners in ASEAN. But there is a limit to what we can do in the context of an ASEAN where each member has its own interests and where many, many countries are interested in ASEAN, because it is a region which is dynamic and growing.
Mr Alex Yam: Mdm Chair, I am happy to hear that Cinderella now lives a somewhat happier-ever-after life. But this brings me to a question that I raised earlier that has not been covered as yet. I understand that our Foreign Service Officers are paid in a separate pay scale as compared to the rest of the Administrative Service, as such, I would like to know whether or not our officers are adequately compensated for what is definitely challenging work that they are doing.
Mr Sam Tan Chin Siong: Mdm Chair, I thank the Member for the clarifications. The Foreign Service Officers are paid within the overall framework of the civil service, so although their pay scale may be slightly different, but it is still within the framework. From the number of the turnover that we have seen in the Ministry, it suggests that the morale is still high, people are still fairly happy and, therefore, we are quite happy to see the situation. However, as the civil service has done, we will also be periodically reviewing all the terms and conditions to make sure that the Foreign Service Officers will remain a happy lot.
Ms Irene Ng Phek Hoong: Madam, listening to Senior Parliamentary Secretary Sam Tan talking about the unreasonable requests of some Singaporeans, such as the illegal sexual services procured and asking MFA to intercede on behalf of his foreign girlfriend, reminds me of the saying that the twist to the words \"Foreign Affairs\" may be taken too seriously by some Singaporeans.
MFA has done a great job of providing our Singaporeans with consular services. But can I ask the Senior Parliamentary Secretary given the increasing demands, whether there is sufficient funding to our Missions and also to improve its programmes. As the Minister has mentioned, diplomacy involves human contact and personal relations and engagement on the ground. Do we invest enough in programmes for our Missions to carry out, to build relations
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and to build goodwill, and at the same time to project a softer face of Singapore to the world, especially through cultural programming?
Mr K Shanmugam: Madam, as regards Ms Irene Ng's point, we will certainly try and do that – or to continue, within our limited resources. But we will certainly try and continue. If I may also deal with the point about remuneration of Foreign Service Officers. We try and keep morale up; we try and reward them appropriately. But, of course, there is always a difference in perception, within the service, as to whether the remuneration is adequate. It is a continuing conversation that we will have to have in the Foreign Service with the Public Service Division.
The Chairman: Dr Lim Wee Kiak, do you wish to withdraw your amendment?
Dr Lim Wee Kiak: Mdm Chairperson, let me thank the Minister, the Second Minister, as well as the Senior Minister of State and Senior Parliamentary Secretary for their comprehensive answers to all our cuts. I would also like to thank the men and women of the Foreign Service for keeping our Singapore flag flying high overseas. Madam, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $389,459,800 for Head N ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $60,000,000 for Head N ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head R (Ministry of Law)","subTitle":null,"sectionType":"OS","content":"Mr Hri Kumar Nair (Bishan-Toa Payoh): Madam, I beg to move, \"That the total sum to be allocated for Head R of the Estimates be reduced by $100\".
I first declare my interest as a practising lawyer. I would like to begin by commending the Ministry for the many legislative and policy changes implemented in the past year. One key move was in respect of the mandatory
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death penalty. On the whole, the move to give our courts wider discretion in sentencing has been applauded. Likewise, the changes in respect of legal aid, to refine the means test to allow legal aid for proceedings before the Commissioner for Labour, this allows more Singaporeans to receive legal aid and, therefore, legal representation.
Madam, these changes signify a shift in putting more heart in our laws and policies. Consistent with this approach, I would like to highlight several areas for consideration. First, I believe more can be done to expand the pool of resources available for legal aid. There are untapped legal resources we should explore. These include retired lawyers, in-house counsel and academics. One problem would be that these individuals would have to apply and pay for practising certificates, which is sometimes inconvenient. Will the Ministry allow a limited practising certificate which can be issued without payment or other usual formalities solely for the purposes of appearing in legal aid or probono cases?
Further, I am troubled by the high number of accused who appear at their first criminal mention unrepresented. I mentioned the figure at 47% at the debate on the Legal Aid Amendment Bill. Will the Ministry consider enacting a scheme where accused with legal representation can obtain simple advice and guidance in respect of the charges against them and their options, at least before their first mention? This will reduce the fear and anxiety many of them faced when they appear before the court, and allow them to make more informed decisions about how they respond to the charges. We could involve law students or those doing their Practice Law Course to assist in this. It will provide them valuable hands-on training and may even encourage more of them to practise criminal law when they qualify.
Related to this is an issue I raised in 2010 and that is the recording of statements of accused or witnesses in criminal proceedings. Recently, there has been a number of high profile cases where the time of the court has been taken up to determine whether statements of the accused and witnesses were properly recorded or accurately represent their evidence. I had raised in 2010 the possibility of having a more independent check on this process and that would include having the statements recorded by video – by having a video recording of the statement-taking process – or at least having an independent third party, like a Commissioner for Oath, sign off on the statement before they are made final. These would cut down the costs of trial – of court time – to determine the integrity and accuracy of the statements and will give more confidence in the reliability of these statements when they are used in court.
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My next point relates to the need for laws against hate speech and greater privacy laws in Singapore. The advent of the Internet and social media has improved access of information and allow the ordinary citizen to air his opinions online. This is a good thing. However, the anonymity that the Internet affords has also led to a deterioration of social mores and etiquette on online platforms. While rude expressions per se should not be restricted simply because they are unpleasant, we should be concerned when hate speech and hateful ideas are spread online by vilifying, disparaging, ridiculing or inciting violence against particular groups of people; hate speech threatens social cohesion and stability. Some countries have enacted legislation prohibiting and criminalising hate speech, and even speech online.
We have the Sedition Act but that may be too blunt a tool to use in some situations. A more focused legislation against hate speech or inappropriate conduct online may be timely for it to give more responsive and effective remedies.
Related to this is a need for stronger privacy laws. In January this year, following the horrific accident in Tampines that claimed the lives of two young brothers, photographs showing the mangled state of their bodies were circulated rapidly on the Internet. The photographs made a spectacle out of a tragedy and robbed the family of their privacy and dignity that they deserved. This is only one incident. The recent sex corruption cases have seen photographs of innocent women circulated on the Internet, speculating whether they were the parties involved. There are many instances online where people snap photographs of others in public spaces for the purpose of subjecting them to online ridicule and scorn.
The question is whether we as a society find this acceptable and, if not, whether the Government should step in to do something about it. At the very least, we should allow persons who are aggrieved the facility to bring an effective response themselves. Most people will not have the ability or resources to discover the persons behind inappropriate posts online. Our judicial system is difficult for ordinary folk to navigate without incurring significant costs to obtain discovery and, subsequently, redress. There should be a facility to enable discovery of the identities of persons who put up inappropriate posts and for effective remedies for these posts to be taken down swiftly. I ask the Ministry to consider setting up a bureau or agency to offer such services to the public.
Finally, may I ask the Minister for an update on the Qualifying Foreign Law Practice (QFLP) scheme? How many more licences does the Ministry intend to
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issue? And what gaps in our legal services does it hope to bridge in the next round of licences?
Ms Sylvia Lim (Aljunied): Madam, I would like to raise two areas for review concerning the investigation and pre-trial stages of criminal cases. First, I would like to revisit the suggestion to video record the statements given by accused persons in custody, which Mr Hri Kumar just touched on.
This practice of video recording is in place in various jurisdictions, including Australia, the United Kingdom, South Korea and Taiwan. Its purpose is as a safeguard, to ensure that the person in custody gave his statement voluntarily and that the words in the statement fell from the accused's own lips and were not force-fed.
I first raised this issue during MinLaw's COS five years ago in 2008. At that time, the Government's response was that video recording does not ensure that statements are voluntarily given. In 2011, MinLaw made a similar response after the Ismil Kadar case.
While I agree that video recording is not a fool-proof guarantee against impropriety or allegations of such, the benefits of doing so are undeniable and accrue to both the state and the defence. For the state, it offers significant protection to our law enforcement officers against groundless allegations that they threatened the accused or subjected the accused to duress. Footage of the statement recording will show the demeanour of the accused and the recording officer, to enable the court to come to certain conclusions about whether the accused's will was sapped through sleep deprivation or he was not in a proper frame of mind during the recording. Furthermore, statements are often challenged by the defence on the ground that the words in the statement were put in by the recording officer and did not come from the accused. A video recording will settle that question decisively.
In other countries, video recording has been found to save Police and Court time, as both sides may decide not to pursue certain matters after viewing the recording. At the same time, it is a safeguard to maintaining high standards of law enforcement. We in Singapore may need this safeguard even more, since an arrested person's right to see counsel under arrest is so limited. Would the
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Government at least re-think its position on this issue or at least for capital cases?
Secondly, the Criminal Procedure Code 2010 introduced a new pre-trial case disclosure regime where both prosecution and defence are required to disclose evidence relevant to the case well ahead of the trial. Since its implementation, I have assisted as defence counsel in a few court cases under the framework, and I can see its value and contributions towards a fair trial. Currently, only District Court cases under the Penal Code and selected statutes come under the disclosure regime. Other cases, for example, those charged under the Prevention of Corruption Act (PCA) have not been brought under the framework yet. As the framework has proven useful and successful, when will its scope be expanded to cover other laws like the PCA?
Asst Prof Tan Kheng Boon Eugene (Nominated Member): Madam, the fourth Presidential Election in August 2011 was the first contested election for the presidency since 1993.
Candidates presented competing, and often conflicting, visions of the Elected Presidency. In some respects, the conflicting visions were encouraged by the electorate which had high expectations, and saw the President as a political player to function as a check on the Government.
This is notwithstanding that Singapore's Head of State is not vested with the same powers as the executive Presidents of the United States, France and many Latin American countries.
There was the palpable expectation that the presidency should be a watchdog that can both bark and bite. The sense was that the current reactive powers of the Elected President results in a watchdog that could only bark, and even then only in limited circumstances.
However, put simply, the Elected President is not designed as a countervailing source of political power in our system of Government.
The silver lining is that Singaporeans saw the first presidential contest in 18 years as an opportunity to demonstrate their aspiration for a more robust political system and to entrench good governance.
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Would the Government consider using the next couple of years before the next presidential election to create better awareness and understanding of the constitutional limits of the Presidency? I note the Minister's own efforts in trying to clarify the role and function of the Elected President but I felt that it did not make much headway in the lead up to the hustings, particularly as it came on the back of the bruising 2011 General Election.
Madam, candidates must run for the office that exists, not one that they wish to have. The Elected President is a little understood and a much misunderstood institution in our system of constitutional government.
More importantly, the electorate must be discerning to know which candidate is over-promising on the Elected President's constitutional powers and mandate. I make this call to Singaporeans to better understand our system of Government.
At the same time, I call on the Government to let the Elected Presidency to evolve in tandem with Singaporeans' reasonable expectations of the roles and functions of the office, all in the name of entrenching good governance.
Mr Patrick Tay Teck Guan (Nee Soon): Madam, the Small Claims Tribunal (SCT) has been kept busy and efficiently handled numerous small claims for a whole range of claims. My residents, as well as some of the freelance professionals whom I have come into contact with, have shared with me the limitations of the Small Claims route. The issue is not with the process and getting the order but the costs of litigation if one seeks to enforce the small claims judgement. For example, if the amount of judgement claims is $1,000 or even $5,000, the cost to enforce, if the losing party refuses to pay, may render it not worthwhile to take further civil action. Can MinLaw help plug this lacuna and provide some recourse for the claimants who have judgement in hand?
In line with my earlier point on enforcement of small claims is the incidence of small companies which are liable to pay under a small claims judgement and end up winding up the company and setting up shop under another company and a new name. The claimant is often left in the lurch. Can MinLaw do something to help such claimants?
And, finally, with an increase in our population and the rising number of household units and the close proximity of neighbours, the frequency of
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disputes between neighbours is likely to increase. It can be noise, smoke, dripping water, excessive items along corridors, to invasion of space. Besides community mediation, a Magistrate's Complaint, and show cause action by the Police, can we not set up a tribunal for neighbourly disputes which should incorporate compulsory mediation, penalty provisions and establishing community norms?
Dr Janil Puthucheary (Pasir Ris-Punggol): Madam, I would like to follow on from the suggestions by my colleague, Mr Patrick Tay, about the discussion for developing a Community Mediation Framework. In particular, whether it is possible if the first round of mediation does not resolve in an amicable situation, then an appointed body or group issues a notice to the party or parties involved requiring them to comply with an appropriate or described set of behaviours.
And where the offence then is a failure to comply with the notice, rather than letting cases drag on until one party reports the matter to an authority, the other party gets fined and the relationship becomes more strained and very adversarial, I am not suggesting that we could use this opportunity to develop a framework to draw up a list of offences – which may be a difficult list to agree upon. It is the process which is prescribed and the failure to engage with the process that is the offence.
For long-drawn disputes where either party refuses to attend mediation, could the act of refusal to attend mediation be considered as an offence and give the process of mediation more bite and enhance its effectiveness?
Mr Vikram Nair (Sembawang): Mdm Chair, our bankruptcy laws currently try to strike a balance between allowing debtors to maintain a modest lifestyle, while providing creditors with the opportunity to recover some of the debts owed to them in an equitable manner. In many countries, bankrupts might lose their houses and life savings when bankruptcy occurs. In Singapore, the fact that HDB flats and CPF monies are protected from creditors in the event of bankruptcy provides significant protection for debtors.
There are two specific aspects of our bankruptcy regime where I think we could be even more liberal to debtors. The first is in cases where the bankruptcy is the result of business failure. Now, this is quite a common cause of
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bankruptcy for small business operators who trade in their own name or for those who might provide guarantees for companies when securing loans. In relation to many of these businessmen, once the business fails, and they become bankrupt, that probably means that they will not be able to continue running the business and they may have to find a very different means of earning a living. If they do not have proper educational qualifications, this may mean a substantial drop in income. And this puts them in a bind because it means that their income would be reduced, which makes it more difficult for them to get out of bankruptcy. But if they do not get out of bankruptcy, they will not be able to go back to doing business. It also means that many of these operators do not get a second chance to get back into business even though they might have learned from the first failure and might be able to do better the second time.
A slightly different approach towards bankruptcy is the approach taken by Hong Kong where bankrupts are generally given discharge after four years if they conduct themselves well while they are bankrupt. Creditors may object to the automatic discharge but only on very limited grounds, namely, if the bankrupt did not comply with the conditions of the bankruptcy. This is obviously a much more liberal regime than Singapore. But I think it is probably a direction that we could move in if we want to encourage entrepreneurship and risk-taking. Hong Kong is well-known for entrepreneurship. And I also think the risk of credit freezing up is not that big an issue because businesses remain vibrant to Hong Kong. This might be one approach to allow those who fail in business to pick themselves up again.
The second area where I think our bankruptcy regime can be a little more liberal is those who become bankrupt as a result of unsecured personal credit. These are typically people who incur a large amount of consumer debt. This can come in the form of credit card debt, generous consumer lendings, such as those offered by some electrical and furniture shops, as well as unsecured personal loans from banks and authorised moneylenders. Unauthorised moneylenders are also a problem, but they generally would not be creditors in bankruptcy.
The main mischief here is I sometimes get very concerned when I see how easily consumer credit is extended. I see low-income families buying very large television sets, for example, because low monthly instalments are a great attraction. But when they default, the furniture or the electronic goods they buy get seized and they may be made bankrupt if the debt is sufficiently large.
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Credit cards continue to be marketed quite aggressively, giving people additional spending power. But if people cannot pay these debts, then the interest rates are usually quite substantial and, again, they might end up in a vicious credit spiral. If people were to become bankrupt as a result of unsecured personal credit, we could probably be more liberal than letting them being discharged as well.
I understand the main risk in having a more liberal bankruptcy regime is that we may create moral hazard where people may borrow excessively and borrow more than is prudent. But I also think that this risk is something that can be managed because what it means is that lenders will also become more prudent in how they lend. If they know that there is a chance that people may be discharged from bankruptcy more easily, they will be more careful in extending consumer credit and this, I think, is a good thing.
Mr Desmond Lee (Jurong): Madam, the law protects HDB flats and the proceeds of sale of such flats from being used as a security or collateral for any debt. The exception is for housing loans.
When a person becomes bankrupt, his flat is also protected from other creditors as the HDB flat does not vest in the official assignee. This protection is consistent with the HDB flat's status as public housing. When an owner of an HDB flat falls into mortgage arrears, the HDB will help him to restructure his payments and explore ways to help him. But if that does not work out, he would be encouraged to right size by moving to a smaller and more affordable unit.
In a very worst case scenario, if substantial arrears accumulate and nothing is done, HDB may compulsorily acquire the flat and compensate him. This puts certain households who owe substantial debts in a quandary. If they sit tight, their shelter is assured and their flat is protected from creditors. However, this is not financially prudent. Housing arrears build up and there is that worry about compulsory acquisition at the end of the day.
On the other hand, if they proactively try to downgrade to a more affordable unit, the full amount of cash proceeds from sale of their flat becomes fair game for creditors such as moneylenders, credit card companies and banks. The cash proceeds will also vest in the official assignee on bankruptcy. I believe this will be case even if the owners attempt to use HDB's enhanced contra facility. This is problematic because debtors often need to use a portion of cash to buy a
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smaller home and, if the proceeds are seized by creditors, they will lose their roof. This is not ideal.
Some residents I have met are caught in this bind. I would like to propose that MinLaw enhance protection of public housing for Singaporeans and plug this gap by putting cash proceeds from the sale of flats beyond the reach of creditors, whether in bankruptcy or otherwise, to the extent that such portion of cash proceeds is needed to be used for the payment of another flat.
The Chairman: Mr Edwin Tong is not in the House. Mr Arthur Fong.
Mr Arthur Fong (West Coast): Madam, Singapore has earned a reputation internationally as the country that can get things done, with good infrastructure, capable IT support and personnel and a knowledge-based economy. These are the basic, necessary and vital ingredients to achieve our ambition to be an Intellectual Property hub. If I may add one other critical ingredient necessary to be an Intellectual Property hub is our impartial and efficient legal system.
Madam, the areas of IP patents, royalties and licensing are important ones and set to grow. The World Bank listed royalties and licensing to be worth about US$200 billion.
The number of patents is growing at a furious pace of 45% annually.
We should have a slice of that pie. But we must work at removing some impediments to growing the IP industry. Perhaps, even consider a review of section 34 which could blind-side an IP newbie, mostly inexperienced start-up individuals, registering their product overseas first and not being aware of the requirement under this section and would be fined.
More communication and education are needed to counter potential \"leakage\" of IP filings going elsewhere. Could the Ministry study if this section could be removed or reviewed altogether or have more publicity or comprehensive communication plans such that the public is aware of this? Secondly, would MinLaw also consider setting up a Do-it-Yourself registration, a DIY facility, especially for small companies, many of which are start-ups, who
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may find it costly to register through the services of a lawyer?
I look forward to the Minister for Law updating the House on the plans to further develop Singapore into an IP hub. How else can we help our local businesses to commercialise and exploit the IP that they own?
The Chairman: Minister Shanmugam.
The Minister for Law (Mr K Shanmugam): Mdm Chairperson, I thank all who spoke.
Mr Hri Kumar asked for an update on the impact of significant legislative changes in the past year. MinLaw administers over 80 Acts, which is about 20% of the Statute Book, which we review and seek to reform from time to time. A number of reforms were made in the last financial year.
Looking at criminal justice, the Evidence Act was amended to expand the court's discretion to admit hearsay and opinion evidence. As regards sexual assault victims, we made it clear that cross-examination on sexual history can only be done when directly relevant.
Together with MHA and AGC, we worked on and brought before this House, reforms to the mandatory death penalty in relation to drug trafficking and murder, as well as the procedure for the Court of Appeal to review death sentences. The transitional cases are now being dealt with. We will monitor the impact on our crime rates as a result of these changes.
Separately, a law reform committee led by the Senior Minister of State for Law will be looking at rationalising the Penal Code offences relating to homicide and hurt where death is caused; and whether and to what extent mentally disabled offenders should be punished differently across the whole spectrum of criminal law.
Mr Kumar also asked about hate speech in the context of the Internet. I think that Members would know that yesterday, Deputy Prime Minister Teo made some comments about reviewing this area. We will update the House when that review is completed.
To boost the legal services sector, we amended the Legal Profession Act, the International Arbitration Act, and the Foreign Limitation Periods Act. If you
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look at the Legal Profession Act, we widened ad hoc admissions for Queen's Counsel. More flexibility was also given for Singapore firms to collaborate with foreign firms.
Under the International Arbitration Act, we updated the definition of arbitration agreements, recognised emergency arbitrators, clarified the tribunal's power to award interest and allowed judicial review of negative jurisdictional rulings.
As regards the Foreign Limitation Periods Act, it was made clear that, where a case is governed by foreign law, the issue of limitation will be governed by foreign law. This has made Singapore a more neutral forum.
The amendments were made as part of an overall effort to develop our arbitration sector. It is difficult to pinpoint the effect of each change on the legal sector, but you can see, in broad terms, the overall effect on our legal sector. In 2012 – the nominal value-add from legal services was estimated at around $1.85 billion. In 2008 – it was $1.48 billion. That is a 25% increase. And if we have a vibrant legal services sector, that will in turn support the banking sector, the finance sector, corporate headquarters in Singapore and areas which require sophisticated legal support.
Other changes we made include the Legal Aid and Advice Act, where we updated the means test to keep pace with the cost of living, and try and protect vulnerable persons in family disputes. With the amendments, an additional 300,000 citizens and PRs can meet the income test. That is about 25% of Singapore residents, up from the current 17%. The Civil Law Act was expanded to give greater discretion to distribute property of deceased persons with no heirs. For example, unclaimed CPF monies are now covered. That Act came into effect on 15 February 2013 and I have tasked the Public Trustee to take charge of its administration.
For the Moneylenders Act and Rules, we enhanced the enforcement powers of the Registry of Moneylenders, extended interest rate caps, prohibited up-front fees which increased borrowing costs, and removed exceptions to caps on unsecured lending. This and earlier measures reduced the volume of moneylending, and the number of moneylenders fell from 249 in 2011 to 209 in 2012. The value of the loans fell from $480 million to about $260 million over the same period [Please refer to Official Report of 7 July 2014].
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Moving forward, we will continue to reform the law across the different areas of legislation that MinLaw covers.
One of the major areas that will be covered this year is our bankruptcy and insolvency regime. Mr Vikram Nair asked if we can consider an easier regime to discharge certain types of bankrupts: bankruptcies due to business failure and bankruptcies due to unsecured consumer credit. I think there is merit in differentiating between the different types of bankrupts. We have started a review of our discharge policies, but I ask that Members bear in mind that we have to balance between the creditors' interests and discharging bankrupts where it is just to do so, without creating a moral hazard. We will certainly consider the Member's views in the review.
We will also consider the Member's views in the context of the Insolvency Law Reform Committee. That Committee will be finalising its report on the Omnibus Insolvency Bill which will improve and streamline personal bankruptcy and corporate insolvency regimes. We will also consult the public after reviewing the Committee's report and our discharge policies.
In this context, Mr Desmond Lee asked whether our laws would allow a HDB flat owner who is in financial distress but not yet a bankrupt to downgrade to a small flat without having the proceeds of the sale taken by creditors. Under the Housing and Development Act, HDB flats in general cannot be used as security. In bankruptcy, the HDB flat owned by at least one citizen will not vest in the Official Assignee; that is to say that it is not available to the creditors. The High Court has also ruled that that protection also applies to proceeds from the sale of the HDB flat. Those in financial distress should be aware of these bankruptcy protections. We will also ask MND and HDB to see if there is a gap in this area.
Next, if I can move to resolving community disputes. Mr Patrick Tay and Dr Janil Puthucheary spoke on this. We note their concerns and suggestions. Community disputes, as Members recognise, fall into many categories, ranging from noise disturbances to unpleasant smells. Some are bona fide and some may suggest extreme sensitivity. It is inherently difficult to resolve these disputes because emotions tend to run high and views on what is acceptable behaviour are very subjective.
The existing framework of criminal and civil laws, I think, may need to be relooked at. My Ministry is working with MND, MHA and MCCY to see if we can develop a framework that can apply to this set of issues. This was broadly
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referred to yesterday by the Second Minister for Home Affairs in the context of what should be the norms of acceptable conduct between neighbours, enhanced mediation processes and calibrated sanctions to enhance compliance.
This is a work in progress and we welcome suggestions, but bear in mind that legislation cannot solve all issues.
Finally, on Asst Prof Tan's suggestions on improving Singaporeans' understanding of our system of Government, especially the role of the Elected President. Since 1988, when the idea of the Elected President was first mooted, the Government has explained the role of the Elected President several times. In 1999, then-Prime Minister Goh made a statement in this House. In 2011, statements clarifying the role of the Elected Presidency were issued.
The role of the President, as stated in the Constitution, is not very difficult to understand. Article 21 states clearly that the President acts on Cabinet's advice, except in certain specified areas: the use of past reserves; appointments to key public offices; ISA detentions; CPIB investigations; and restraining orders relating to the maintenance of religious harmony.
I think it is very clear. If I may refer to Asst Prof Tan's own article which was published on 31 May 2011 in the media, and I quote, \"Singapore's Head of State is not vested with the same powers as the Executive President of the United States, France and many Latin America countries. Despite our President being elected, our system of Government remains a parliamentary one, in which policy making and law making are the prerogatives of the Cabinet and Parliament. Put simply, the Elected President is not designed as a countervailing source of political power in our system. The Elected President has two key custodial functions: That of protecting Singapore's financial assets and safeguarding the integrity of Singapore's public service… In layman's term, the President holds the ‘second key'. But the President cannot initiate a drawdown of the reserves or make key appointments, laws or policies; his powers are inherently reactionary. In most other areas, the President has limited discretionary power, mostly acting on the advice of the Cabinet, or being constitutionally required to consult with the Council of Presidential Advisers.\"
So, it is very clear. Asst Prof Tan has set it out, I have set it out, and others have set it out.
I would suggest that in the specific context that Asst Prof Tan mentioned, of candidates – or some of the candidates at least – saying what they thought
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the powers were – that it is not a problem of public misunderstanding. It is perhaps a misperception of what candidates may have considered to be the powers of the Elected President.
I agree with Asst Prof Tan that public education is important and the Government will continue to clarify these areas. Students are educated on Singapore's system of government, including the President, and on their responsibilities as citizens. These include their responsibilities as voters in presidential and parliamentary elections. They are taught at a level commensurate with their maturity through compulsory subjects, including Social Studies, and Citizenship and Character Education.
The Senior Minister of State for Law will take the remaining cuts.
The Senior Minister of State for Law (Ms Indranee Rajah): Mdm Chairperson, Mr Hri Kumar asked about the QFLPs. From 2008 to 2011, the value of legal services exported from Singapore increased by 51.8% from $363 million in 2008 to $551 million in 2011. This growth has been catalysed by our calibrated liberalisation of the legal services sector, mainly through the QFLP Scheme.
In 2008, the first six QFLP licences were handed out. The six firms have done well. Eighty percent of their gross revenue comes from offshore work, work that would otherwise have been done overseas. Last month, we awarded a second round of QFLP licences to four top international firms. We will continue to monitor the QFLP scheme to ensure that it continues to contribute to the strength and diversity of our legal sector.
Mr Fong had asked about making Singapore an Intellectual Property hub. Mdm Chairperson, today, the development and exploitation of intellectual property have become a key driver of economic growth globally. The importance of intellectual property (IP) will continue to increase. Transactions in IP will become a business in itself and Singapore must ride this wave. A vibrant IP marketplace in Singapore will support high-value jobs and business opportunities for Singaporeans. It will also enable Singapore businesses and innovators to commercialise and exploit their IP. We, therefore, set up the IP Hub Steering Committee last year to formulate a Master Plan to guide Singapore's development in this area.
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The Committee has submitted its findings and recommendations to the Government. It identified three strategic outcomes that we should work towards. The first is that Singapore should aim to be an international hub for IP transactions and management, so that companies will use Singapore as a base for regional and international IP transactions, and manage their IP portfolios from Singapore.
Two, Singapore should aim to be a hub for quality IP filings for companies all over the world. These companies can tap on our IP service providers and infrastructure and use Singapore as the gateway to secure IP protection in key markets all over the world. Singapore should become a choice venue for IP dispute resolution by leveraging on our efficient, cost-effective and high quality judicial system, and alternative dispute resolution methods, such as arbitration.
To reach these strategic outcomes, the Committee has recommended that Singapore develop skilled IP professionals, networked to the region and beyond, to effectively serve the international needs of companies. Also, we should build a conducive and progressive environment to encourage IP players worldwide to bring their IP activities to Singapore, and thus create a thriving IP eco-system in Singapore, entrench our status as an IP hub, and position us to assert thought leadership in the field.
We are in general agreement with the recommendations of the Committee, and we intend to aggressively develop Singapore into a regional and international IP hub. Detailed announcements will be made over the next few months on this front.
Mr Fong also asked about the review of section 34 of the Patents Act, currently referred to as the National Security Clearance (NSC) provision, which is meant to safeguard the disclosure of information prejudicial to national defence interests and public safety. Patents agent professionals are aware of the requirements and the clearance process at IPOS is simple and quick. Information about NSC is available at the IPOS website, but IPOS will study how to further raise awareness of the provision among companies.
On Mr Fong's suggestion to set up a DIY facility, it is already possible today for companies to file IP, such as patents and trademarks, on their own, but most still seek IP service providers for professional assistance. Companies can enjoy a 400% tax deduction or 60% cash payout on IP registration under the Productivity and Innovation Credit (PIC) scheme. This can include the
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associated fees paid to professional service providers.
On the Small Claims Tribunal – an issue raised by Mr Patrick Tay – legal costs for proceedings are minimised as the process is simple and parties appear in person. Money orders are enforced through the Magistrates Court through the Writ of Seizure and Sale (WSS), and the filing fee for the writ of execution to enforce the Tribunal's order is $105, which is 30% lower than the fee for a case not under the Tribunal. Incidental costs of enforcement, such as bailiff and auctioneer fees, may bring the total cost of the enforcement to about $400 to $600. However, the Court will generally order the losing party to bear all enforcement costs, so that the successful claimant may not need to pay.
We are conscious of the cost factor in our on-going review of the Small Claims Tribunal Act together with the Subordinate Courts. We will ensure that the Small Claims Tribunal stays true to its purpose of providing effective and swift redress for small claims.
Mr Patrick Tay had asked about consumers' recourse against errant companies who fold up and set up as new companies. A person who uses the corporate form for fraud can be made personally liable for the debts of the company. He may also be guilty of a criminal offence. If a person is a director, he could also be disqualified from holding directorships. In terms of public education, ACRA has collaborated with CASE to develop a guide for consumers dealing with business entities. That guide shows consumers how to use ACRA's information services, to conduct background checks on business entities before deciding whether they should deal with them.
On criminal procedure, Ms Sylvia Lim had raised a question on the disclosure regime under the CPC. In launching the disclosure regime, we determined a body of predicate offences to be included. The Prevention of Corruption Act is not included in this list. CPIB investigations under the PCA, therefore, are excluded from the disclosure regime. However, CPIB investigations of predicate offences included in the regime will observe the same disclosure requirements.
The Police has introduced measures over the years to improve the quality of their investigation processes. These practices are shared among the Government investigation community, which includes the CPIB. MinLaw will convey the Member's comments to the CPIB and this will continue to be reviewed. In the meantime, for cases not covered under the statutory regime, the common law will still apply, as the Court of Appeal made clear in Kadar's
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case.
Both Ms Lim and Mr Hri Kumar raised the issue of video recording. The issue of video recording is an operational matter relating to police investigations and it comes more directly under the purview of MHA. However, MinLaw understands from MHA that there are currently no plans to introduce video recording for the taking of statements. MHA's position is that the issue of video recording as well as other operational issues should be looked at in the following manner: there should be a fair system which seeks to ensure that crimes are solved, and the system should also seek to ensure that the rights of the accused are protected. If an accused wishes to challenge the statement given by him, there are clear avenues available today.
On the question of whether this regime can be re-thought, over the years, MHA has introduced a number of changes, and it is MHA's intention to continue to look at the processes. I think the Government recognises the rationale behind the suggestions made by Mr Hri Kumar and Ms Lim. That rationale, together with other considerations, will be considered in the light of evolving circumstances when MHA further reviews its processes.
Mr Hri Kumar also raised the issue of legal aid, and made three points for consideration: whether we could have ad hoc practising certificates for retired practitioners or people who can come in to help with legal aid; using law students for pro bono work; and what can be done for accused persons who are unrepresented. As I had mentioned previously, I am currently chairing a committee on the promotion of pro bono work. We will take these suggestions to the committee and consider them and see what can be done.
On a slightly broader note, because Mr Kumar also mentioned what MinLaw has done over the past year, if I may just say a few words on the legal sector in general. The legal sector has grown, as mentioned by the Minister. If I may just add that the arbitration sector, in particular, has also seen stellar growth.
Singapore is now recognised as the leading international arbitration hub in Asia. A 2010 White & Case International Arbitration Survey found that we are clearly the most popular Asian seat. Worldwide, we are the third most preferred seat by companies, together with Paris and Tokyo, and after London and Geneva.
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The growing caseload of the Singapore International Arbitration Centre (SIAC) reflects our rising stature in international arbitration. The number of new cases handled by SIAC rose from 99 in 2008 to 235 in 2012. The total value of disputes reached a record high of S$3.61 billion in 2012, well in excess of the total for 2010 and 2011 put together.
This growth is the result of the aggressive and holistic approach we have taken to develop the arbitration sector over the years. We have a completely open regime for international commercial arbitration. Parties engaging in arbitration in Singapore have the freedom to engage lawyers of any nationality and to use any governing law. We have also introduced tax incentives for arbitrators and arbitration work. And we have established Maxwell Chambers, which offers world-class arbitration facilities. The Global Arbitration Review called Maxwell Chambers' opening one of the \"Best Developments\" in the arbitration industry. Our Courts, too, have been strongly supportive and pro-arbitration. Finally, we have a supportive legislative framework in the form of the International Arbitration Act, which we continually update in consultation with academics and practitioners.
Our coming of age was evident when the International Council for Commercial Arbitration held its Congress here. The Congress was attended by the who's who of the international arbitration community, and had the largest participation rate in its history, of more than 1,000 attendees.
Concurrently, we have seen the growth of arbitration expertise in the local Bar, at all levels. This will enable Singapore to continue to be the arbitration centre of choice for the region as well as internationally. I would encourage younger Singaporean lawyers to deepen and extend their arbitration skills and knowledge to take advantage of this growth area so that, in the years to come, we will continue to have a strong pipeline of Singapore lawyers who will be able to serve the local, regional and international markets for arbitration.
We also hope to see the continued growth of strong Singapore law practices and hope that they will take advantage of some of the available incentives, such as the Development and Expansion Incentive for International Legal Services, a concessionary tax rate for firms which do international work from Singapore; and a tax incentive for international arbitration work done substantially or culminating in hearings in Singapore. In addition, agencies, such as EDB, SPRING Singapore and International Enterprise Singapore, provide a variety of general incentives for capability building that the Singapore
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law practices can tap on.
For dispute resolution, as the Chief Justice announced at the Opening of the Legal Year, Justice V K Rajah and I will lead a committee to study the proposal for creating a Singapore International Commercial Court, and this will further expand our dispute resolution offerings.
Mediation is also a priority. In the coming year, we will build on earlier efforts by the Singapore Mediation Centre to strengthen our services for international commercial mediation.
Mdm Chairperson, the development of the legal services will be a source of growth in itself, and more importantly, a vibrant legal services sector supports growth in other sectors of the economy which require sophisticated legal support.
The Chairman: Ms Sylvia Lim.
Ms Sylvia Lim: Thank you, Madam. Two clarifications for the Senior Minister of State on her response to my cuts. The first is regarding the disclosure regime and whether other statutes, for example, the PCA, would be brought under it. The Senior Minister of State seemed to suggest that it is something discretionary and may or may not happen. But my question is: should we not proceed on the basis of whether there is any good reason why it should not be brought under that regime? After all, is it not desired to have uniformity in these pre-trial disclosures, especially for cases heard by the District Court?
The second clarification is concerning the issue of video recording. The Senior Minister of State appeared, in the gist of her remarks, to say that this issue is actually an MHA issue. Perhaps, she would like to clarify because, historically, MinLaw has taken ownership of this issue of video recording, both in the CPC review in 2010 as well as certain statements made to the media about this issue.
I would like to ask: does MinLaw not have an interest in the standards of evidence brought before the Court and how Court time is used? In fact, Mr Kumar also alluded to the fact that much Court time is being used now to refute such allegations which I think video recording could somewhat mitigate. In other countries, it has been shown that prosecutors are pushing for this because they have found the value in video recording in the handling of trials. I would
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like to ask the Senior Minister of State what is actually MinLaw's ownership of this issue or whether it is just something which they think MHA should take the lead on from now on?
Mr K Shanmugam: Madam, I will answer the question. The Government takes ownership of this issue. Obviously, the Member is entitled to ask the Government and someone has to answer. The gist of the response on video-recording is that, in the past when MinLaw took up the issue, it is often that the office-holders were double-hatting, or because of the specific context of the legislation before the House.
Now, today's question is operational in nature: video-recording has to be done by the police if it is instituted, and the Member knows that.
Therefore, given the operational nature of the issue, given the fact that MHA agencies have to deal with it, they will have to assess whether it is feasible, whether they have the necessary resources, and what implications it has on their investigative procedures. On these operational issues, we defer to them. We are happy to relay the answer on their stance, but we also think that it would be more productive, in the specific context in which this question is raised, that it be put directly to MHA, perhaps in the form of a parliamentary question. But we are happy to respond, and we have responded today. We also recognise the rationale for the Member's point, as well as Mr Kumar's point, and we would put it across for MHA's consideration. So, if the Member wishes to continue to raise the issue with MinLaw, we will be happy to answer; we are just making the additional point that the Member could consider specifically raising it with MHA.
In response to the Member's point as to whether or not MinLaw is interested in making sure that standards of evidence in court are up to scratch – I would reply, yes, absolutely. We want to make sure of that, and as everyone can see from the moves that we have made in the last few years, and as the Member will recognise, standards have been refined considerably. I think the Member will welcome the changes, for example, to the disclosure regime. Last year, when we had a meeting with the members of the criminal bar, several stood up and welcomed the changes. One of them, a leading member, said, \"This is the best time to practise at the defence bar.\" But that does not mean that the current position is crystallised. We have to continuously evolve, look at
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the best practices, and we welcome suggestions by Members and others.
Secondly, as far as criminal case disclosure is concerned, again, we put it in because we believe that it is the right thing to do, and it has been put in place for many pieces of legislation. But let us see how it works before we expand it to other agencies, other pieces of legislation.
So, that rationale has already been explained. The speed with which the regime can be expanded depends also on the ability to make sure that the agencies can comply with the processes, and whether they believe it is workable in their particular context. That is the case in the specific context of CPIB and PCA. That is also the case for other agencies and other pieces of legislation, and we will continue to have conversations with CPIB and other agencies on this.
Asst Prof Tan Kheng Boon Eugene: Madam, I would like to raise a question with the Minister for Law. I appreciate his assessment that some of the presidential candidates, perhaps, misperceived the office of the Elected President. But certainly, I would take the view that some of the candidates probably found it politically expedient to present what they would do if they were elected. I think that certainly got a segment of the electorate rather excited. In any case, I take the position that, in the end, it is still important for the electorate to be informed so that people do not get too politically entrepreneurial.
Mr K Shanmugam: Asst Prof Tan, we on this side of the House know all about political entrepreneurship. We have seen it. I do not, of course, want to specifically comment on what the candidates' motivations may have been. All I can say is that, when candidates go out and say they are going to do this and that, they should know whether or not it is legally possible, given their qualifications, and given the clear explanations as to what the President's powers and functions are. They would know the answer, if they apply their minds to it. And yet they make these statements. People have to draw their own conclusions as to why the candidates do it. When appeals to emotion are made and played up, it is not often easy to counter them with logic and reason but we will continue to try.
The Chairman: Mr Hri Kumar, do you wish to withdraw your amendment?
Mr Hri Kumar Nair: Mdm Chair, I would like to thank the Minister and the Senior Minister of State for their responses. I think that MinLaw had a full plate
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last year, and I think they have a larger plate but no less fuller this year. Plato said, \"Good people do not need laws to tell them to act responsibly but bad people will find a way to get round those laws anyway.\" So, on behalf of my Members and other Members of this House, I would like to record my appreciation for the officers of the Ministry for the hard work and the diligence and passion with which they performed them. With that, may I have leave to withdraw my amendment?
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $242,042,400 for Head R ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $565,072,000 for Head R 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 2.45 pm.
Sitting accordingly suspended
at 2.24 pm until 2.45 pm.
Sitting resumed at 2.45 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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The Chairman: Mr Zaqy Mohamad, you may want to take your two cuts together.
Mr Zaqy Mohamad (Chua Chu Kang): Madam, I beg to move, \"That the total sum to be allocated for Head Q of the Estimates be reduced by $100\".
First, I would like to take the opportunity to congratulate the Minister and staff of MCI for its first official Budget session. On behalf of my parliamentary colleagues and the GPC, we look forward to a meaningful and enlightening session today.
Madam, let me begin with some entertainment. I do not mean singing or dancing, but I will start with digital TV. Digital TV entertainment for Singapore comes at a time of media convergence where viewers have access to various technologies and platforms on the Internet. We have evolved from the times of communal TV at the CCs in the past, and today, we watch the TV in the comfort of our living rooms, on our computers and tablets and sometimes even our smart phones.
Recent news of Singapore embracing digital TV is certainly exciting as this will change our perception and use of the TV. Digital TV will bring better quality images to our TV screens and I hope that MDA will play a proactive role to maximise the potential of this platform by increasing the range of content it can deliver, and more online services that can benefit and improve the productivity of citizens.
I hope that MDA will further develop the industry as well, to enable more businesses to take advantage of this evolution.
Ultimately, I hope that the MDA will foster a broadcast market that is more diverse and able to carry a wider variety of channels and programmes. I would like to hear more from the Ministry what benefits can Singaporeans expect of digital TV, when can they expect to start enjoying the benefits and how will this transition take place.
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From an industry standpoint, I hope there is also a concerted plan to take our media production and broadcast industry to a new level of play. It would be great if the Ministry uses this opportunity to further develop and bring fresh opportunities for our local talents, writers and production houses.
But as we embark on this initiative, we must bridge the digital divide as 40% of Singaporeans today are not on pay TV, which is today's main digital platform. We must ensure that the transition leaves no one behind, especially low-income families. We must also ensure that every household will have the necessary infrastructure provided to ease the transition – whether it be a new antenna, receivers or other connectivity requirements.
This brings me to my second cut – media convergence. Today, even before we embark on digital TV, the ways that people consume media has changed dramatically.
In 2012, the Media Convergence Review Panel outlined its recommendations in a 64-page report to the Government. The recommendations aim at taking Singapore's media and broadcast regulation into this converged media landscape.
Clearly, in this converged landscape, new commercial platforms, such as iTunes, have given us food for thought on how content regulation and licensing should differ online compared to those sold in our stores and those through pay TV. At the same time, whether there should be a difference in how we regulate or classify content that is user-generated, such as those on YouTube and Facebook.
Thus, consumers and industry players are looking to the Government for its position, following the Panel's recommendation on which recommendations it will accept and how it will impact Singapore.
With the convergence of traditional and new media, many industry watchers are also looking to the Government on where the policy shift will take us. Will the Government deregulate and shift regulations and licensing policies towards greater openness and embrace the openness of the Internet players? Or will the Government try to fit the workings of the internet media and platforms into our traditional methods of regulating and licensing print media
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and broadcasters?
From a policy perspective, some would say this is an opportunity for our media and broadcast policies to move into the Internet era. But at the same time, many Singaporeans are also cautious whether Singapore will take a liberal position with such regulations, especially with regard to content classification or censorship. So I agree that we need some sort of standardisation in how we manage content across different platforms. But we also need to keep pace with societal norms and acceptance – but this is a delicate balance, given the diverse views, perceptions and beliefs between the different segments of our population.
Thus, I would like to hear from the Ministry on its position and which recommendation it plans to adopt from the Media Convergence Review.
Mr Baey Yam Keng (Tampines): Madam, the way that people consume media has changed dramatically. Hence, the Government has tasked the Media Convergence Review Panel to look at how our media policy and licensing framework can remain relevant and adequate. Like Mr Zaqy, I would like the Minister to share the recommendations that the Government is looking to accept and the potential impact on our consumers. In particular, I am interested in the measures to build social cohesion and reduce polarisation.
Consumers increasingly gravitate towards content which are in line with their own outlook and perspectives. What is our strategy to build national identity and community cohesion across both new and traditional media platforms? We also have to produce strong and identifiable local content which Singaporeans can relate to and be proud of. In view of how easily Singaporeans can access global content, we must develop our own content which is attractive and sustainable and which can contribute to inspire and spur further contributions and future developments.
Madam, I would like to suggest that we provide free online access to more local news articles and commentaries, particularly for The Straits Times and Lianhe Zaobao. These are typically well-researched and thoughtful analyses by the journalists and contributors. However, as more readers access online news and some, especially the young, even obtain information online exclusively, they are not readily exposed to views expressed in these newspapers. Now that both papers' online versions are available only via subscriptions, most turn to free sites like ChannelNewsAsia.com and TODAY online. In cyberspace, it is not so much the ease of accessing information but the power of social media
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through the sharing of articles via links.
When an article goes viral, it is quite possible for its reach to grow exponentially, reaching hundreds of thousands quickly through links. However, if a Straits Times or Zaobao subscriber would like to share an article, he would not be able to do so unless his friends are also subscribers. Our newspapers play an important role in shaping our national discourse and our sense of identity and provide platforms for us to voice our collective aspiration and concerns.
I understand that it may not make commercial sense to expect people to pay for physical newspapers when the online version is totally free. However, TODAY newspaper has and is doing well even when both its physical and online versions are free of charge. I am sure a commercial mind can work out a viable business model because it is imperative that such content, especially of local interests, be made as accessible as possible to as many Singaporeans as possible.
Lastly, we need to advocate responsible behaviour online and I would like the Minister to share his plans to raise awareness of right online behaviour and increase media literacy among the people.
Miss Penny Low (Pasir Ris-Punggol): Like the Agriculture and Industrial Revolution that changed society, the advent of ICT can change lives.
Amidst the hustle bustle, have we ever paused to ask ourselves what do ICT tools do to us, what do we use it for and how can we use it to pursue meaningful ends? Some technologies simply keep us busy. Others make a difference between life and death, but may not be the most profitable.
Many social entrepreneurs (SEs) work in this space, where social dividends matter as much as financial profits. But many are high touch and low tech, with productivity lags. The use of ICT could boost data transparency, knowledge sharing, mutual trust, productivity and collaborative innovation.
For example, SEs like RSVP, Silver Spring and grassroots networks, are working to help keep seniors active. Could big data be used to create apps where information-on-demand can be accessed to provide or take courses, job match and disburse specific medical advice? What about wireless sensor
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networks that could help elderly find their way to bus stops or homes, or allow the deaf to communicate more effectively, or even connect networks of caregivers directly to experts and beneficiaries? These are technologies that matter.
What about living in a community where ICT enable peer-to-peer sharing of tools and handyman, nanny, doctors and experts are available at the click of an app? The community feels secure, bonded and happy.
What about using ICT to connect rural producers to real-time market so there is fair price? Connecting remote villages to teledoctors to save lives? Or using mobile phones to send remittances and crowd fund social ideas? These are technologies that matter.
The IDA ICT Roadmap identified nine tech themes to enhance the competitiveness of key economic sectors in Singapore and to build a well-connected society. It should go further. It should invest in ICT that shapes society, ICT that matters. Given the many socio-economic challenges and shortage in social services like childcare, eldercare, disabled care, flexi-work arrangements, transport issues and so on and so forth, I would like to ask MCI:
(a) Is there a road map on how the current investments in ICT can help Singapore resolve pressing social concerns?
(b) What are the specific measures to use ICT to forward social good? and
(c) What is the update on infocomm plans for the social sector which was announced in Budget 2012?
In essence, technology can create wonders for us and spur new frontiers for a brave new world. Letting it happen by default or based on what is hot alone will be erroneous. Instead, we should ask what shapes the world we want and invest into the technology that matters.
Ms Lee Li Lian (Punggol East): Madam, in September 2012, M1, SingTel and StarHub did not comply with Quality of Service (QoS) standards for 3G mobile telephone services. Under the QoS standards, at least 99% service coverage must be provided. As such, IDA fined these three operators $10,000 each for not meeting the QoS standards, under which, at least 99% service
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coverage must be provided.
As an industry regulator, the purpose of IDA is to provide greater incentives for telecommunication services and infocomm to grow and help Singapore become a dynamic and vibrant global Infocomm hub to enhance Singapore's economic and social development.
I would like to ask MCI to elaborate on how IDA determines the sum of $10,000 as penalty for operators not meeting IDA's QoS standards.
How much capital expenditure and operational expenditure does the Ministry expect the operators will require in order to achieve QoS Standards?
As commercial entities, the three operators will understandably seek to provide the greatest shareholder returns and profit margins. In order to improve their coverage and service quality, they will have to invest in additional hardware and related services which will lead to an increase in capital expenditure and operational expenditure. From the perspective of a commercial entity, the $10,000 fine may be a more cost effective alternative, than investing in the improvement of their network infrastructure for the benefit of Singapore's economic and social development.
I would like to ask the Minister if $10,000 is a sufficient penalty to push operators to improve their network services.
Mr David Ong (Jurong): Madam, information and communications technology are playing an ever-larger role in Singapore. It is now deeply integrated into the workings and infrastructure of our society. As we celebrate progress in our high computer and smartphone penetration rates, we must remember that groups in our society who fall behind in the adoption of infocomm will be increasingly disadvantaged.
For senior citizens, ICT can play a major role in helping them stay socially connected and engaged. Simple things like browsing the Internet, accessing e-Government services, or even connecting to friends via Facebook can meaningfully affect their lives. Many senior citizens feel helpless when thrown into an unfamiliar ICT world. We should step up our outreach efforts to provide them with the skills to navigate infocomm technologies so that they can stay
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vibrant, active and social individuals.
As Infocomm is becoming increasingly important for e-learning and education, students and children from low-income families should not be denied basic access to computers and Internet.
For the disabled, can the Ministry look at how to better equip them with ICT skills and improving accessibility to disabled-friendly ICT technologies, assistive devices, such as alternative keyboards, low-vision and blindness aids, mounting systems and writing tools?
We cannot forget that Singapore is a fast ageing population. And as droves of seniors leave the workforce, there may be fewer and fewer avenues for them to stay connected.
What will MCI do to make sure that elderly and financially-challenged students and children, and also other groups like the disabled, are not left behind in the midst of this relentless pace of change in the ICT landscape? Mdm Chair, I look to the Minister for updates.
Dr Chia Shi-Lu (Tanjong Pagar): Mdm Chairwoman, I think we all agree that we live in a digital age where infocomm technology or ICT has become an essential and inescapable part of our lives.
I remember when the Intelligent Nation 2015 master plan was unveiled in 2005 and I was dazzled by the vision of how Singapore will transform into a smart nation and a smart city. I was thinking that 2015 is quite a long time away, but being 2013 as it is now, it is only two years in the future. So, I would like to request that MCI provide us with an update on the progress that we are making towards achieving the goals of this iN2015 master plan, and particularly, with relation to a few vulnerable groups – seniors, the disabled and the needy.
Now, our seniors would mostly have lived their lives in a bricks-and-mortar world, they would have been familiar with things like bookshops, CD shops and going to the bank. But as we spend more and more of our lives in the online world, whether it is learning, working, shopping or banking, how do we make sure that our seniors can make sense of this brave new world and so remain active and engaged in our community? I mean the same question also applies to the disabled. So, what measures are being taken to ensure that they remain
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a part of our intelligent nation and smart city vision?
Finally, one stated goal of the iN2015 master plan was that there should be 100% computer ownership or access in families with school-going children. I note that as of 2011, only 86% and 85% of households respectively had access to a computer and the Internet. So, I would like to request an update on the programmes that are in place to ensure that lower income families, particularly those with children, gain regular access to computers or smart devices, since I fully believe that equal access to ICT technology is critical for inclusive growth and social mobility.
Mr Inderjit Singh (Ang Mo Kio): Madam, ICT as an enabler. The Budget gave a clear direction of how the Government is expecting companies to restructure quickly. In this restructuring exercise, the vulnerable groups are going to be the SMEs and Singaporeans who may not have the right skill-set to adapt to the type of economy and jobs that they are expecting to see in the new future.
With the crunch in manpower availability, companies need to rely on technology, especially ICT, to do things more productivity and to remain relevant in the expected future economic environment. Because of foreign manpower cuts, companies will also have to rely on more Singaporeans to pick up the new type of jobs that will be created as a result.
I see three groups of Singaporeans who will need help to improve their ICT skills, namely the elderly, the needy and also the disabled. Can the Minister share with the House the Ministry's plans on enabling companies and the groups of people that I have mentioned earlier on their ICT skills? Also, how can the Ministry help children from needy families be better equipped with ICT skills so that they do not get left behind, so that we can level the playing field for everyone?
Mr Low Thia Khiang (Aljunied): Madam, MOM announced at last year's Budget Committee of Supply that the Tripartite Committee on Work-life Strategy have formed a workgroup on homeshoring. The workgroup comprises representatives from MOM, IDA, NTUC and SNEF.
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The workgroup would identify jobs that leverage on Singapore's increased infocomm technology capacity and recommend measures to encourage companies to \"homeshore\" these jobs. IDA is to drive the initiative under the Next Generation Services Innovation Programme (NGSIP), which was developed in consultation with the partners.
In April 2012, IDA launched a Call-for-Collaboration (CFC) to conduct pilots with industry partners in home-based work and the setting up of Smart Work Centres, to encourage employers to adopt flexible working arrangements through the use of infocomm technology. The key to the initiative is for Next Gen Nationwide Broadband Network to connect 95% of Singapore by mid-2012 to further support and encourage home-based work initiatives.
I would like to ask the Minister what milestone has been achieved and what progress has been made since?
Apart from connecting homes to Next Gen broadband network, other factors, such as Internet speed, are also critical to support home-based work initiatives. Is there a reason why speed is not included as one of the compliance KPI for IDA's quality standard? Although IDA stated that it is monitoring the issue of speed, could IDA provide its own data on multiple and single TCP speed, instead of relying on information providing by third party such as Ookla and Akamai.
I would also like to know if there is a roadmap on the initiative, given that MOM had published \"An Employer's Guide in Implementing ICT-Enabled Home-Based Work\"?
Ms Sylvia Lim (Aljunied): Madam, an integral part of evolving Singapore's identity must include encouraging the creation and promotion of local music. Original music tells the world about local rhythms and sounds. When words are put to music, the lyrics paint a picture about Singapore, Singaporeans, our relationships and our way of life. These are powerful anchors for Singaporeans as well, unifying us in ways which words alone cannot. Local songs are part of our unique legacy.
Local songwriters, however, cannot live on love and fresh air. The viability of their careers hinges on how much they can earn from their work, and how
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wide a reach they have.
I believe that for those who create original work, especially songs, the Government could take a simple measure to boost the sustainability of their careers. This move will ensure that local music is played constantly and consistently, which will provide sustenance for the song creators to take their careers further, even internationally.
Currently, songwriters receive royalties when their songs are played in public, whether the songs are played in CD form or are played live. All organisations playing music or songs in public as part of their business or ambience must pay the song-music owners through COMPASS or the Composers and Authors Society of Singapore. When foreign works are played, the royalty money flows out of Singapore. To channel more royalties to flow to Singaporeans, the Government can take the lead to encourage consistent and significant playing of local music.
Currently, the Government plays music in its building lobbies, phone systems, and at events and occasions. At all these occasions, the Government can direct its organisations to routinely include local works as often as possible. This will not increase costs for the Government, as it would have had to pay royalties for music played anyway. However, this move will ensure that our local songs or music account for a good share of the royalties paid. This will also increase their public following, with more members of the public recognising and appreciating local songs.
I believe such a simple move can be documented easily to ensure that our local songwriters get the royalty payments due to them. I urge the Government to consider this suggestion to give our local creative musicians a leg up.
Mr Sitoh Yih Pin (Potong Pasir): Mdm Chairperson, the Budget has made it clear in no uncertain terms that the days of importing large numbers of foreign labour are over. SMEs will be the ones facing the brunt of this economic restructuring. There is no easy way out even as the Budget contains numerous measures that companies can take advantage of to ease the pain.
Central to the theme of this year's Budget is raising productivity. There are many Government schemes that encourage SMEs to do so. Just to name a few: Productivity and Innovation Credit Scheme; Technology Adoption Scheme;
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Lifelong Learning Endowment; SME Talent Programme.
These schemes either aim to improve the quality of manpower or the use of technology. However, I believe that awareness is low. I would like to see a confluence of manpower and technology schemes to raise productivity. These can include a one-stop training centre to equip SME staff with the skills to use information, communication and technology (ICT) as well getting SME owners to adopt ICT in their businesses in a holistic and comprehensive way so as to overcome the current and near-future manpower crunch.
The Chairman: Mr Arthur Fong, you may want to take the two cuts together.
Mr Arthur Fong (West Coast): Thank you, Madam. Singapore's low unemployment rate is an envy of many other countries. Yet, it is a source of tension for many of our business enterprises. The situation is not better with the tightening of foreign manpower, the lowering of dependency ratios and the hiking of foreign labour levies.
Concomitantly, the Government has been calling on companies to look at ways and means to improve businesses' productivity as well as the productivity of its labour.
The info-communications technology industry is a major player to boost productivity. A survey by the Economic Intelligence Unit revealed that the United States relied heavily on and successfully boosted its productivity using information communications technology. Sadly, the same report stated the same reliance on ICT was not material in recent times.
In a Business Times article of 13 November last year, it mentions that the labour productivity of companies that are labour intensive is about US$37,000, whilst those that relied on ICT is almost 15 times more at US$545,000. The advantage of using ICT to boost productivity is obvious.
We have invested heavily in this sector. It is timely for us to reap dividend in our attempt to boost our productivity all around, not just labour. For instance, IDA has provided our business industries a lot of schemes and grants to boost productivity. We have also launched a $46 million road map over five years to further develop the ICT industry. We are second behind Sweden in innovation and currently Asia's first.
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All these accolades are useful only if they have practical use to boost not only our productivity but also solve current problems, such as the manpower crunch. What is MCI doing to help companies tackle productivity and manpower problems with the use of ICT?
Next cut, in the realm of good food, a critical part of things Singapore, 色，香，味 is all important. Literally, it means appearance, smell and taste. They are factors that help one to decide a dish is delicious or not.
Thus, good design would help shape the appearance of a product. This is all important as products manufactured by our local SMEs will potentially venture and compete for market share abroad. An active design industry here would help successful local businesses like Mr Bean, for example, to venture abroad. Many would know the little \"kink\" at the back of a BMW that is called the Hofmeister kink. And, perhaps, our own business, in time, would have a brand like this going forward.
Our Government announced that it would set up a National Design Centre (NDC) to achieve growth and transformation of the design cluster and to develop design as a vibrant integrated and competitive sector. When is the NDC expected to open? What can the design industry look forward to?
Mr Vikram Nair (Sembawang): Mdm Chairperson, there are three different issues I wish to discuss in this cut but all of which relate to different assistance that might be provided to SMEs and young workers in Singapore.
Now, the first – I was quite intrigued to read about a programme titled \"The Infocomm at SME\", which I understand aims to accelerate the adoption of infocomm technology by SMEs to help them improve productivity and competitiveness. SMEs are one of the groups that might be hardest hit by the current restructuring as they face a manpower crunch from the tightening of foreign labour and the prospect of rising labour costs as wages of Singaporeans rise. It will be important for SMEs to reduce their dependence on labour.
Traditionally, the adoption of technology has been an important aspect of moving from a low-wage, labour-intensive business to a higher wage, less labour-intensive structure. This is your textbook illustration of a productivity
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increase as well. I am, therefore, interested to know how a programme such as this would enable SMEs to adopt to ICT in order to cope during this difficult time. It would be especially useful to know if this would also help SMEs that are not traditionally associated with infocomm, such as those in retail and construction, as these would be some of the industries facing the greatest difficulties. So, I hope the MCI would be able to elaborate on what are the systems it can provide to assist SMEs to deal with the current challenges they face using ICT technology.
The second point I wish to discuss is with the National Design Centre. Like my Parliamentary colleague earlier, Mr Fong, I am also interested to know when this design centre would open. In particular, I think, that this could potentially offer lots of interesting opportunities for young Singaporeans and a good variety of jobs. I mean, the Secondary schools in my area, for example, produce very good design and technology students and I wonder if a centre like this would provide more opportunities for them.
There are some specific questions I have in relation to this centre. The first is when will the centre open? The second is what is the aim of this centre and what types of programmes would it offer? The third, what types of opportunities will it offer to individuals and SMEs interested in this field? And, finally, will this centre have tie-ups with students in local schools interested in design and technology?
The third aspect I wish to discuss is whether there are any plans the Ministry has to help firms use design as a competitive advantage. Now, many global businesses rely on design to provide them with a competitive advantage. This is especially important in the consumer goods industries, and companies, such as Apple, sometimes create entirely new markets through a combination of good technology and innovative design.
I am interested to know how Singapore companies fare in using design as a competitive advantage.
I understand that the Design Singapore Council, working with IE Singapore and SPRING Singapore, has established a Design for Enterprises programme to help businesses adopt design for competitive advantage to the marketplace. I am interested to know what this programme allows, and whether there is any early success story to share. And does MCI have any plans to strengthen design
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adoption in local companies?
The Minister for Communications and Information (Assoc Prof Dr Yaacob Ibrahim): Madam, I would like to thank hon Members for their valuable comments and suggestions. Madam, the infocomm, media and design sectors continue to show great promise in their right as well as their potential to transform society and their economy. Innovation has come about through successive waves of convergence.
The first wave of convergence brought together the IT and telecommunication industry to give us the infocomm sector. This wave is almost complete. Later this year, new homes to be built will no longer need to be fitted with telephone ports, since the data port can serve both voice and data needs.
The second wave of convergence is unifying data. This wave is allowing for the emergence of massive data sets from which businesses and Government can get deep insights to help improve services. This is why we see data analytics as a promising growth area for the infocomm sector.
The third wave of convergence is bringing together the infocomm and media industries. It is presently disrupting traditional business models for content creation, but there is no doubt that it will eventually lead to new and more robust business models. We must ensure that our regulatory frameworks are able to keep pace, and Singapore is among several countries at the forefront of studying its impact.
Around the corner, we see possibilities for infocomm flowing into autonomous machines. This will be especially relevant as the Singapore economy shifts gear in view of slowing workforce growth.
Madam, we estimate that the infocomm, media and design sectors grew by 6.5% in 2012. Singapore has also been consistently ranked among the top two countries in the World Economic Forum's Global Information Technology Report since 2009.
Our plans for the infocomm, media and design sectors are four-fold. Firstly, we want to improve our infocomm and media infrastructure. Secondly, we want to ensure the sectors deliver enhanced quality of life for our people. Thirdly, we want the sectors to contribute to business competitiveness and a more productive economy. Finally, we want Singapore to to be in a good position to
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seize future growth opportunities in infocomm, media and design.
Mr Zaqy Mohamad and Miss Penny Low have highlighted the importance of investing in infrastructure and technology that can improve Singaporeans' daily lives. Ms Lee Li Lian also touched on the Quality-of-Service (QoS) standards for our mobile services infrastructure.
We will be improving our wireless infrastructure. The free Wireless@SG network is popular with Singaporeans. More businesses have subscribed to Wireless@SG for their own operations, such as cashless payments and facility surveillance. But the system is now over six years old.
IDA will, therefore, enhance our national wireless infrastructure by expanding the capacity and speed of Wireless@SG. We will also simplify the login process. Instead of having to repeatedly enter one's login information, the improved Wireless@SG will be able to recognise registered users through the SIM cards in their mobile devices. This will complement our mobile networks and allow subscribers to more seamlessly shift from 3G/4G networks to Wireless@SG.
We recognise that mobile services have become increasingly integral to consumers and businesses. In fact, Singapore is one of the few countries globally to impose quality of service (QoS) standards for compliance. Over the past two years, IDA has enhanced the standards required of 3G mobile service operators. Mobile operators also face higher financial penalties for non-compliance. The standard for outdoor service coverage was raised to above 99% in April 2012.
The recent $10,000 financial penalty that IDA imposed on each mobile operator was for failing to comply with this enhanced standard. I understand that IDA had taken into consideration that it was the first time the operators failed to meet the new requirements, and by a relatively small margin. Therefore, the penalties levied were appropriate – not the maximum under the current standard, but still much higher than allowed for under the old standard.
IDA will be holding a 4G spectrum auction in mid-2013. This will give our mobile operators greater certainty over their spectrum holdings, and allow them to expand their 4G offerings. We will encourage further deployment and adoption of new mobile capabilities that will bring more benefits to consumers – greater coverage and bandwidth. IDA will also soon revise the Code of Practice for Info-communication Facilities in Buildings (COPIF) to ensure that building
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facilities have adequate space set aside to support the quicker deployment of mobile services.
Our mobile payments system will see improvements. Since August 2012, consumers have been able to make contactless payments with their Near-Field Communications (NFC)-enabled phones at over 30,000 acceptance points. These include convenience stores and most taxis. At least seven additional NFC mobile payment and value-added services will be launched by 2014. IDA will be working with the public transport industry to assess the feasibility of adopting NFC payment, and the public can look forward to field trials and pilots later this year. All these initiatives spell more convenience and options for consumers.
It has been 50 years since Mr S Rajaratnam went on air to launch our television service. It was a momentous occasion for our people. We have seen much progress over these five decades, including going colour and adding more Free-to-Air channels. And it is fitting that this 50th year will herald another milestone in our broadcasting history – we are going digital. We are upgrading our broadcasting infrastructure and will begin our transition to digital TV by year-end. Digital TV will enhance our viewing experience. At the same time, going digital will also free up the spectrum that can be reallocated for better and faster wireless services for our public and businesses.
Come December, MediaCorp's seven Free-to-Air channels will be broadcast in digital format and move to High-Definition in two phases. Channels 5, 8, Suria, and Vasantham will move first to High-Definition. Channel U, Okto and Channel NewsAsia will be broadcast in Standard-Definition first, and then High-Definition in 2016. Viewers will be able to enjoy the higher quality images and surround sound from digital TV through existing pay-TV set-top boxes or a separate receiver.
We will ensure sufficient time for households to make the digital transition. MediaCorp will continue to broadcast analogue signals for Free-to-Air channels for at least two years from the digital switch-on in end-2013. MDA will also introduce consumer labels for dealers to affix to compatible digital receivers. This will allow consumers to easily identify the equipment suitable for their needs. From April 2013, consumers will be able to buy TVs with compatible integrated digital receivers that are affixed with MDA's consumer labels. Consumers can also choose to buy set-top boxes affixed with these labels to connect to their existing TVs as the boxes gradually become available.
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We will not forget the needy households who may need assistance with the switchover. MDA is looking at ways to assist them. We expect to finalise and ready these plans by 2014. We recognise the important role that TV broadcast plays and I would like to assure the House that MDA is working to ensure that all Singaporeans can benefit from our Free-to-Air digital programming.
Through infocomm, media and design, we are improving Singaporeans' quality of life. Miss Penny Low, Mr David Ong, Dr Chia Shi-Lu, Mr Inderjit Singh, Mr Low Thia Khiang and other Members have shared their views about the important role that infocomm plays in this. The Next Generation Nationwide Broadband Network is already allowing IDA and industry partners to explore projects, such as home-based work. This can help Singaporeans better balance their work-life commitments and minimise travel during peak hours. Our economy will also benefit from the increased level of labour force participation. Businesses may also derive long-term cost savings in office space rental.
Rasa Sayang Healthcare is a home-grown SME that will be launching a home-based work pilot project soon. The company provides home nursing services. Currently, their nurses pick up their scheduled jobs from the office before travelling to the patients' homes to do their work. They subsequently return to the office to file their patient reports. With this pilot, Rasa Sayang's nurses will be equipped with computing devices and broadband connectivity to allow them to receive their schedules at home. They will be able to start work from home, and return home to file their reports. The reduced travelling and time saved will allow nurses to spend more time with patients and improve productivity. In addition, Rasa Sayang's customer service staff will be equipped with proprietary customer management and call routing solutions. This allows their staff to work from home and continue serving their customers in a timely manner.
IDA will also call for proposals to establish Smart Work Centres. Smart Work Centres are conducive alternative working spaces. They will be equipped with professional facilities and shared by employees of different companies. Employers looking to offer flexible work arrangements can arrange for their employees to work at a Smart Work Centre nearer home. IDA is also currently working with NLB to pilot Smart Work Centres at selected libraries. At the same time, the Public Service will be piloting a similar concept at the Treasury building and the new MND and MOM buildings for use by public officers from participating public agencies.
We will continue to commit resources to ensure that ICT benefits all and fosters a cohesive and inclusive society. Over the past three years, IDA's People
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Sector programme has reached out to over 460,000 people. IDA has also equipped more than 100 people sector organisations with infocomm capabilities and to increase ICT literacy and competency of their clients.
For example, the Singapore Association for the Deaf has partnered with the People Sector Infocomm Resource Centre, and are developing a Singapore Sign Language mobile app to meet the needs of our hearing-impaired and promote our Singapore Sign Language. [A video was shown to hon Members.] The video on the screen shows some of the signs that one can learn from the prototype app, such as \"Durian\" and \"Kallang\".
IDA will also continue to actively engage and promote ICT programmes and initiatives among the elderly, low-income households with school-going children, and people with disabilities. To date, the Digital Inclusion Programme has assisted more than 14,600 low-income households with PCs and broadband service. It has trained more than 76,000 senior citizens and people with disabilities to use infocomm for digital lifestyle activities and work support.
Volunteers play a key role in this effort as well. They are young at heart and sharp in the mind – just like Mdm Irene Lim. Sixty-one year old Irene retired seven years ago and has been pursuing her interest in photography and in computers. She attended courses on Social Networking and Digital Photo Management, which were offered under the Silver Infocomm Curriculum. In her words, \"being able to catch up with the latest technology trends, I feel young and active again\". She puts to good use her IT skills in enhancing photographs and producing video collages of her travels. She is also an active Facebook user, blogger, and, as I said earlier, a volunteer IT tutor.
Beyond improving work-life balance and social inclusion, we also recognise that the media industry can uplift, inspire and entertain Singaporeans. Last year was a very good year for film, but I want to specially recognise the contributions of the TV sector. For example, local production company \"Very!\" won two Gold Medals at the prestigious New York Festivals for their work on the Channel NewsAsia documentary \"The End/Beginning\" in 2012. Last year's Asian TV Awards also saw local company Scrawl Studios win the Best 2D Animated Programme with \"Guess How Much I Love You\", while another local production, \"The Moving Visuals\", picked up an award for their work on The Biography Channel's social awareness programme \"Junkie Monastery\".
Ms Sylvia Lim spoke about the local music scene. We are committed to growing our music industry and creating opportunities for our music talents.
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MDA has various schemes to support our local music professionals at varying stages of their careers. This includes the development of singles, production of albums and Extended Plays (EPs), marketing assistance, training, and upskilling. And her suggestion for us to consider using local content or local music in Government buildings will be considered seriously. Yet, at the same time, the preservation of local identity and national identity is the purview of MCCY. We will be in discussion with MCCY.
MDA has been working with local broadcasters and industry partners to increase their repertoire of local works for broadcast, and to provide greater exposure to our local musicians. Several radio stations, such as Class 95, Y.E.S. 93.3FM, Ria and Oli, have programmes to showcase local artistes and music. In September last year, MDA and MediaCorp put out a joint call-for-proposal seeking theme songs for MediaCorp's TV dramas. This provides nationwide exposure to our local musicians, and uncovers new talent. The winning compositions received airplay on our Free-to-Air TV channels and radio. We ensured that the intellectual property (IP) rights of these songs stayed with their creators, so that the composers could further benefit from it. MDA will launch another call-for-proposal for theme song production soon. Selected applicants will be provided with a Development Assistance grant of up to $8,000 each.
Madam, the Government also recognises the importance of royalty payment to sustain our music industry. An industry Code of Conduct was launched in June last year to improve the collection of royalty payments. This has taken us another step in the right direction as we work to ensure that royalty payments reach the rightful owners. We will continue to work with our broadcasters, MinLaw, industry associations and various stakeholders to support the growth of a vibrant eco-system for local music.
But we are happy to listen to suggestions from Ms Lim for this particular sector.
Miss Penny Low, Mr Inderjit Singh, Mr Sitoh Yih Pin, Mr Arthur Fong and Mr Vikram Nair have asked about how we can increase business productivity, and the measures we have taken to enhance our design sector. Allow me now to touch on these areas.
An increasing number of companies have used design to gain an advantage for business competitiveness and growth. The Design Singapore Council
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provides schemes to incentivise local businesses to invest in design for innovation and productivity gains. Over the past two years, over a hundred companies have been supported through assistance schemes, such as the Design for Business Innovation Grant (DBIG) and the Productivity and Innovation Credit (PIC), for investments in design.
Atmosphere Air-conditioning & Engineering Private Limited is a local SME that has benefited from DBIG and PIC. Faced with difficulties expanding their business due to manpower constraints and logistical challenges, Atmosphere partnered a design consultancy to transform the way their air-condition technicians go about their servicing jobs. Instead of a two-man service crew in vans, motorcycles outfitted with a specially designed storage box containing re-designed servicing tools were introduced. Only one technician is now needed for smaller jobs. Clients are now served faster, productivity has doubled, operational costs have come down and Atmosphere has eased its manpower constraints.
New high-growth ICT developments, such as data analytics, can also improve business competitiveness and create value across sectors. IDA is encouraging greater adoption of data analytics among businesses. It has been working with six early adopters to develop business analytics shared services for the retail and wholesale sector. Such analytics services will allow businesses, such as Best Denki Singapore, to derive useful information from their customers' data, to better understand customers' needs. The services will also help optimise inventory levels to meet forecasted demands. We expect the shared services to be rolled out progressively to early adopters starting middle of this year.
Raising productivity is key to greater competitiveness. IDA has supported the efforts of more than 5,000 SMEs to raise business productivity through ICT solutions. IDA works closely with sector champions and industry associations to facilitate the development of collaborative ideas and innovative ICT solutions that can benefit the wider industry. With economies of scale, such solutions are more cost effective to adopt than if developed separately by businesses on their own.
For example, to increase service staff productivity in the food and beverage industry, IDA supported mobile ordering systems for restaurants to automate key operational processes. Diners at Ocean Spoon Dining now submit in their orders via tablets and have their payment processed at their tables. Ms Jocelyn Chng is the Managing Director of JR Foodstuff Industries, which owns Ocean Spoon Dining. She shared that, \"With e-Menu and payment at the table, other
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than being able to achieve faster table turn-around, we foresee that we would be able to expand our operations without the need to increase service staff at the same rate.\"
Furthermore, to help SMEs speed up their ICT adoption, IDA has also pre-qualified over 160 \"ready-to-use\" ICT packaged solutions under the iSPRINT scheme. SMEs can purchase and implement these solutions right away and, subsequently, claim from the iSPRINT grant.
We will also continue to support initiatives that raise labour productivity, to help our companies to be better equipped to face challenges that arise from the tightening of local manpower. IDA will review existing infocomm manpower initiatives to develop the necessary skill sets for local infocomm professionals in anticipation of changing job profiles and to attract greater talent into ICT.
For example, IDA has been working with the Singapore Workforce Development Agency (WDA) to organise Infocomm Productivity Masterclasses to help local ICT businesses reshape their business models and improve productivity. These Masterclasses target the top management executives and cover topics, such as product management, business strategy and user experience design. Over 100 infocomm professionals have benefited from this programme in the past nine months. We will continue to provide our local infocomm companies with more of such Masterclasses through our Infocomm Continuing Education and Training Centres.
Madam, this year, the Design Thinking & Innovation Academy (DTIA) will also partner with WDA to expand the availability of design thinking training. The DTIA has been helping both the private and public sectors to develop design-driven innovation capabilities and to adopt a user-centric approach in creating innovative products and services. Up to $2.5 million has been set aside over the next three years for design thinking training. This will allow DTIA participants to receive up to 70% WDA co-funding when they apply for relevant Workforce Skills Qualification courses.
We are also making it easier for our designers and other vital players in the design value chain to network, test and exchange ideas and co-create new products and services. The National Design Centre (NDC) will be opened later this year. Located at the former site of St Anthony's Convent, and now a designated conserved building, the NDC will serve as a key node in Singapore's design eco-system. It will house a prototyping laboratory for developing design concepts into prototypes, as well as design galleries to showcase design works.
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The Design Singapore Council will also relocate there in the last quarter of 2013, to make it more convenient for both our businesses and designers to seek the Council's expertise and assistance.
Madam, I spoke earlier about the changes being brought about by media convergence. Both Mr Zaqy Mohamad and Mr Baey Yam Keng have also asked about this. In March last year, we appointed a Media Convergence Review Panel, chaired by Mr Koh Boon Hwee, and comprising experts from the private and public sectors, to study these issues. The Panel submitted their report in November 2012 and made recommendations to address four important areas – content regulation, encouraging local content, copyright challenges and licensing frameworks.
The Government broadly agrees with the Panel's recommendations. I will elaborate now on the approach to the recommendations on the economic interests of the sector, and take up content regulation and public service broadcast aspects in my response to later cuts. My colleague, Senior Parliamentary Secretary Sim Ann, will address Mr Baey Yam Keng's comments on media literacy in her response later.
Madam, local content plays a vital role in strengthening Singapore's cultural identity and community bonds. There is merit in the Panel's recommendations to incentivise local content creation by requiring nation-wide broadcasters, including pay TV operators, to invest part of their content expenditure on local content. We will consult stakeholders on the design and the implementation of the local content obligation. We will explore the possibility of providing incentives to encourage more local content development. We will also study how best to ensure that local content is made prominently available on the landing pages of TVs with integrated Internet connectivity or Connected TV.
To address online copyright challenges and digital piracy, we agree with the Panel's recommendation of a three-pronged approach, comprising public education, promotion of legitimate digital content sources and potential regulatory measures. We will continue to support the efforts of MinLaw and IPOS to strengthen existing collaborative efforts with the industry on online copyright issues.
The Government will also work on the Panel's recommendation and look into providing further clarity and certainty for the licensing of all broadcast and online content services, something raised by Mr Zaqy, including the definition
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of licensable audio-visual services. We agree with the need to align requirements imposed on both local and overseas broadcasters targeting the Singapore market. We look forward to working with our stakeholders to follow up on the Report's recommendations. The target is to conduct the necessary consultations this year, with a view to implementing the recommendations, where feasible, from 2014 onwards.
Next, we recognise that our industry development plans should anticipate the eventual convergence of the infocomm and media sectors. Convergence will extend beyond just media platforms as infocomm technologies increasingly become more deeply embedded with media. For example, data analytics has been increasingly used to better understand the viewers of media content. Pay TV operators in the UK are already looking to launch TV advertisement services that target specific homes based on viewing habits, household composition and geographic location. The targeted advertising that we are most familiar with on the Internet is looking to expand the TV set in our homes. And, here, I mention the example of Amazon which keeps track of what books you have been buying, the trend, and advertises to you the books that you should be buying.
Convergence has and will continue to create opportunities and challenges both within the infocomm and media sector, and between it and other economic sectors. Our businesses can exploit new opportunities in the converged environment to move up the value chain, and create new products and services to meet rapidly changing consumer demands.
As the distinction between the traditional structures of infocomm and media undergoes this paradigm shift, we need to look at the future Masterplans for the ICM sectors in a more holistic and integrated manner. Hence, Madam, I intend to commission a Joint Infocomm and Media (ICM) Masterplan to synergise their Masterplanning efforts for the future. This joint Masterplan will be led by a Steering Committee that comprises both public and private sector representation. We expect extensive industry consultations for the Masterplan to begin later this year.
The Joint Masterplan is a significant effort and will take some time. However, we want to start early to give ourselves time to carefully study both the opportunities and the gaps brought about by ICM convergence. This will allow us to streamline our ICM policy frameworks and industry development efforts. By 2015, we hope to have a Masterplan that will give Singapore a competitive advantage and propel Singapore's digital economy ahead to the
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next stage of development.
Madam, there was a concern raised by Mr Low about the data on Internet speed. He may have missed it but I have answered a Question in Parliament that we do our own study. We commissioned a consultant to measure the data for download and upload speeds so that we can monitor this. So, we do not rely on the sources that he mentioned earlier, but we use that for international comparison.
Dr Intan Azura Mokhtar (Ang Mo Kio): Madam, libraries have traditionally played a central role in being the repository of information and a centre for reading and learning for the general public. There is much that libraries can offer in terms of developing an individual's information literacy and life-long learning skills for the 21st century, especially for those who may have limited access to print materials or online information.
Having done research on libraries and information literacy, I cannot sufficiently underscore the importance of public libraries, especially for our children and school students. For it is only through reading first that we are thereafter able to write and generate new ideas for scholarship.
Our public libraries have evolved over the years and I can see more people visiting the libraries. Can the Ministry provide an update of how our public libraries have kept relevant in seeing to the needs of our society in navigating an increasingly knowledge-based environment and economy?
Mr Gan Thiam Poh (Pasir Ris-Punggol): Madam, there are currently three regional libraries and 24 public libraries. In terms of reach and impact, NLB mentioned in its website that there were about 24 million loans and 1.96 million library members in 2007. With the advent of e-readers and the rise of e-book usage amongst the youths, I would like the Minister to provide an overview of the 2012 figures. Our library membership and loans are affected by the shift towards e-reader devices. I hope the Minister can also elaborate on the plans to maintain the libraries' relevance among young Singaporeans.
Budget 2013 talks about providing a better quality of life for Singaporeans and to build a more inclusive society. Libraries are social spaces where people from all walks of life can come together and learn through common interests. Many young members bring their kids to community libraries over the
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weekends to inculcate them with a love for reading. I would like to ask the Minister about the roles of libraries in the future, particularly in promoting social mobility, building a more knowledgeable society and fostering a close-knit community.
It is with much anticipation that a new library at Orchard will be reopened in the first quarter of 2014. This will help increase the reading spaces in town owing to the closing down of bookshops, such as Borders and Page One. The public was asked to provide feedback on what they hope to see at the new library. I wish to ask the Minister for an update about the public's feedback.
I would also like the Minister to consider extending the opening hours for the libraries, especially for those located in shopping malls, to cater to the lifestyle of Singaporeans.
Ms Low Yen Ling (Chua Chu Kang): Mdm Chairperson, to stay at the forefront of knowledge-driven economies, we need to ensure that Singaporeans stand in good stead with regard to information, or what we call \"knowledge highways\" where Singaporeans can easily search, assess and obtain the data information that they want.
These \"knowledge highways\" can then spawn virtual communities that bond Singaporeans as they interact, share knowledge, even trade expertise and exchange knowledge, whether online or offline.
So, the demand for higher speed and greater ease of access to information and knowledge will certainly increase; no doubt about it. The push for telecommuting, flexible work hours and arrangements will also expand our pools of workers who need and use information from wherever they are.
We know that Singapore has the highest smart phone penetration rate in the world – 92%. This pervasive use of smart phones is forming an information-on-the-go habit. We are being accustomed to getting information knowledge at the tap or swipe of our phones. Expectations on the amount and types of information we have at hand, how fast and easy we can obtain them, and the shareablity of knowledge will become unprecedented.
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So, besides the present network of public libraries that serves millions of Singaporeans every year, what are the Ministry's plans to meet this increasing demand for knowledge-on-the-go? How can Singaporeans better access the current rich depository of books, information and films available? How is technology being harnessed to build knowledge highways for Singaporeans at work, study and play?
To this end, I hope the Ministry can share with us how it plans to expand its deployment of technology and skills:
One, boost public data availability, for example, location apps for our Singapore public amenities and transport alerts;
Two, improve digital literacy, which means educate our users about online use or abuse, encourage considerate online behaviour and promote cyber-wellness;
Finally, leverage the potential of fibre broadband coverage in Singapore to build a super knowledge highway that will really transform the way Singaporeans learn, interact, communicate and live together, virtually and physically.
Mr David Ong: Madam, social media platforms can ease communication but, just as easily, cause tension and friction. Facebook is an outlet for expression, but innocent status updates can trigger religious and racial sensitivities.
Singapore has had its fair share of irresponsible and intolerant Facebook updates that, when screenshot and shared, go viral. Like all viruses, they can inflict grave damage that is hard to mend.
Last year, if the racist comments posted by Ms Amy Cheong regarding Malay weddings were to be posted online in Europe, she would have been taken to task, as the European Parliament considers racism not an opinion but a crime.
It is easy to make seditious damaging comments online and hide behind pseudonyms and it is highly irresponsible. Creators of racist rants need not take responsibility for the after-effects of such comments even if it resulted in violence. In such eventuality, the damage done could have long lingering
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repercussions.
Over the past year, we have seen several cases of netizens using the Internet and social media to post socially irresponsible comments with scant regard for the repercussions. In some instances, when the remarks were racially offensive, I was glad that the authorities were quick to take immediate action to nip the problem in the bud.
But there may be cases that escape the attention of even the most vigilant of authorities. How does the Government plan to address this issue? How does the Government intend to balance Singaporeans being more outspoken online while encouraging awareness of the racial and religious fault lines in society?
While there is a Media Literacy Council in Singapore to enlighten Singaporeans on responsible Internet use, how successful has such an effort been? What has it achieved so far?
The Chairman: Mr Zaqy Mohamad, you can take the next two cuts together.
Mr Zaqy Mohamad: Madam, the formation of the Media Literacy Council comes at a time when Internet participation, especially on social media, continues to grow. In the past year, we have seen high profile irresponsible use of the Internet, such as the one mentioned by my Parliamentary colleague, Mr David Ong, about Amy Cheong's racist postings.
But beyond the radar are also many smaller incidences, such as classroom bullies in cyberspace among the school children, and regular occurrences of insensitive remarks posted online that hurt individuals.
Early this week, I attended an event promoting mental health. A gentleman commented about his forum letter that was featured in The Straits Times online. He wrote about the lack of a support structure for care-givers like himself. He has been taking care of his spouse who suffers from mental illness for many years. He was upset with the online comments that followed. One said that if his spouse were taking over 42 pills to control her temper condition, even a doctor would go crazy. Another post said he should euthanise his spouse as he had already kept her for many years.
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I take the view that the Internet should be open and not be manipulated for censorship for political or commercial gain, but these hurtful statements, if they become an online culture, will only serve to divide and lead to the detriment of society.
In many advanced countries, including Australia and UK, similar councils also promote media education as part of school curriculum. They also promote publication of journals and research on media literacy and conduct. I believe our own Media Literacy Council has an important role to play and can bring great value to develop Internet use in Singapore.
Can the Ministry update on the Council's efforts to promote Internet self-regulation? What is the latest development on the earlier suggestion to have an Internet code of conduct? And what is the Ministry's position on the recent International Telecommunications Union or ITU's proposal in the United Nations that will enable world governments to have more control of the Internet?
The Internet should continue to be given a light touch and remain unregulated, but a good code of conduct and principles, if implemented well, can bring greater credibility and integrity to this Internet space.
The Government has sent strong signals that have seen it increasingly moving towards co-regulating media content with the industry. Last year, it announced that the video industry will be empowered to classify or self-classify films up to PG13 rating. When will this be implemented and what are the details of this co-regulatory framework?
Importantly, what same cuts should have been in place to ensure that films are classified appropriately as I am sure that many parents and members of the community are concerned that public trust in our classification systems will be dependent on the accuracy of the rating according to social norms and acceptance?
Does the regulation have other plans to introduce or extend co-regulation for other forms of media as well especially in this era of media conversions that we earlier spoke about?
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Mr Baey Yam Keng (In Mandarin): [Please refer to Vernacular Speech.] The Government will pump in $630 million in the next five years to invest in Public Service Broadcast. A portion of this will fund programmes produced by MediaCorp and the rest will go to independent production houses. I do not have a lot of time to watch television programmes, but recently I happened to catch a few episodes of \"Game Plan\" and was intrigued by its story on swindlers. The story was full of twists and turns, the dialogues were not stereotypical, and it was shot in a very different manner. I could not catch every episode as the story moved very fast, it was not like some drama serials where you could guess what happened even if you missed a few episodes. I could only find out the latest development from my children. I found out later that this serial was produced by independent production house Wawa Pictures.
On the other hand, the next serial in the same time slot, MediaCorp's \"Beyond\", could have been shot in a very different way due to its supernatural theme. But it was no different from MediaCorp's other dramas. I could see that it was trying to be something different but lacked the flair and flavour.
I am not an expert on television programmes. But as an ordinary audience, I am worried. Has MediaCorp been producing too many programmes that it was just focusing on quantity and not quality? Is it not able to make a breakthrough? The drama serials were either on family relations or police work. Even the variety shows lacked variety. They were either food or travel shows, or they just feature celebrities playing games and entertaining themselves. Good programmes require time to develop and plan. Producing too many programmes in too short a time is like a factory production line, using the same model to make products which look more or less alike.
It is good that MediaCorp is outsourcing some of the programmes. This allows viewers to have a variety of good programmes. I hope MediaCorp and other media companies will do more in this aspect and provide more platforms for independent production houses. In addition, I hope they will also be fair towards independent production houses in terms of production budgets, as the creative people also need to make a living.
The Senior Parliamentary Secretary to the Minister for Communications and Information (Ms Sim Ann): With your permission, Madam, I would like to display some slides on the screen. I would like to thank
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Members for their comments and suggestions.
Building a knowledgeable nation is one of MCI's key goals. There are two essential building blocks: first, providing access to quality information resources; and, second, equipping our people to harness the power of information.
Although we live in an information-rich world, not everyone has the financial means to access information and knowledge that they could benefit from. Our libraries thus play a pivotal role in providing our people with access to knowledge and reading resources and will be evolving to meet the greater demand for information.
I will now address Dr Intan and Mr Gan Thiam Poh's questions on how our libraries will be increasing their reach and can better serve our people. In fact, total membership reached some 2.12 million as at the end of 2012.
I am pleased to announce that we are developing two new libraries. The Tampines Library will be redeveloped as part of the upcoming Tampines Town Hub in 2016. It will be co-located with other community arts and sports facilities. To serve the growing population in the north-east region, we will also be building a library in Punggol in 2017. These two libraries will be planned as next-generation libraries, with new offerings to meet the evolving information needs.
Over the years, we have seen an increase in the demand for physical books. Overall, loan figures have increased 22%, from 21 million to over 38 million items, in the past few years. To serve readers better and grow the reading base, National Library Board (NLB) will increase the loan quota. From May onwards, Singaporeans and PRs with basic library membership will be able to borrow eight items instead of six, and this includes three audio visual items instead of two.
As Ms Low Yen Ling rightly pointed out, our libraries need to evolve to cater to those who prefer online sources of information. E-book holdings will be increased and, by the end of 2013, the public will enjoy 820,000 more e-books available for borrowing through NLB's website, bringing the total collection to over three million e-books. Users can also borrow electronic devices, such as Kindles and iPads, if they do not have their own.
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This year, NLB will also put in place a partner membership scheme where partner organisations can help promote reading to their members, and partner members can borrow up to 10 items, including four audio visual items.
The people and private sectors can make a difference in contributing their expertise and by giving back to society through libraries. In addition to the libraries opened by NLB, the Government is partnering closely with the community and further encouraging cultural philanthropy in opening and operating new library branches in the next few years.
The Library@Chinatown opened at Chinatown Point recently in January. It is NLB's first community-contributed and supported public library. The contributions included funding for the library's development and operations which came from the mall owner, CP1 Private Limited, and the Kwan Im Thong Hood Cho Temple. Individuals also play an important role. Volunteers run the many key operations of the library. The Library@Chinatown is, thus, a unique effort in which all stakeholders and the community can contribute to building up their own library.
The Library@Orchard, as mentioned just now by Mr Gan Thiam Poh, is another exciting partnership with the community. NLB is working with Singapore Polytechnic to use design thinking as part of the library's development process and has consulted the public widely in testing its service prototypes. I am happy to update that just a few months ago, an exhibition was held at the Central Library showcasing the service prototypes for the Library@Orchard seeking public feedback.
One of the prototypes shown was a reading cocoon which provides quiet reprieve while being surrounded by books and multi-media. Users could walk through these prototype spaces and experience these ideas first hand. Many users thought it was exciting to be a part of the co-creation process in bringing the Library@Orchard to life. I should also add here that our libraries in shopping malls have opening hours that are in line with those of the shopping malls.
Even as new libraries are being built, with the support of private and people sector partners, we are also working to ensure that, as we build a fair and inclusive society, disadvantaged groups are taken care of.
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I share Mr Gan Thiam Poh's concern that libraries need to reach out beyond their physical network. I would like to assure Members that we will continue to reach out to those groups that have less access to information resources. To serve our orphanages, welfare homes, kindergartens and childcare centres, NLB will be having two more mobile libraries. This builds on the success of the current mobile library, Molly®, which has served more than 450 organisations and has had a visitorship of more than 300,000 since its launch in 2008. The development of these new mobile libraries was enabled through funding from sponsors.
NLB also works together with communities to promote curation of local content. This goes beyond its traditional role of promoting reading and processing book loans.
The National Library has started the Singapore Memory Project to engage individuals through community groups in collecting, preserving and providing access to a rich archive of personal memories of Singapore. It is a massive national effort, and rides on the hard work and commitment of many volunteers, and they have our sincere appreciation. I would like to thank the many individuals who have signed up to become part of the SMP Memory Corps to help the community document their memories.
We asked ourselves, how can we present all the memories that we have collected in a way that people can easily relate to? To support ground-up initiatives for creating new products and showcases out of these memories, the irememberSG fund will be launched this year. Such products could include short films and publications featuring Singaporeans' stories that have been collected.
In August 2013, we can look forward to a large-scale exhibition that showcases the collected memories. As we provide greater access to information resources, it is equally important to ensure that our people have the skills to use these resources to gain useful knowledge and insights. The Government has stepped up efforts to equip Singaporeans for a lifelong learning journey.
Our libraries have championed reading for many years. They do so through the annual nation-wide Read!Singapore campaign, and through programmes like kidsREAD. kidsREAD helps children from less well-to-do families pick up the love for reading.
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Ms Low Yen Ling pointed out that, in this digital age, children may be more inclined to learn with visuals than with texts. We agree with Ms Low that a good reading habit is important as it builds the foundation for independent, sustained and enjoyable learning.
To further encourage good reading habits and sustain reading interests, a new programme called Read@School was launched in January this year at 152 Primary and Secondary schools. The programme aims to nurture the reading habit through a suite of activities that caters to different age groups and learning aptitudes.
There are reading discussion groups on different genres that are catered to reluctant readers. These sessions provide a broader perspective, compared to book-based discussions, and could engage reluctant readers better. For example, one fun activity under the Fantasy Theme is the creation of a job advertisement for a dragon.
There are also activities that help students learn how to use the library. Last year, Secondary 1 students from Queenstown Secondary School participated in \"Dewey's Amazing Race\" to learn how to use the library's services through an exciting race format. We recognise that teachers and parents are also role models for reading, and they are actively engaged in the programme as well.
Ms Low Yen Ling and Dr Intan highlighted the need to equip our people with the skills to harness the power of information, while Mr Zaqy Mohamad and Mr David Ong emphasised the importance of fostering responsible and discerning use of the Internet among our netizens. I would like to thank the Members for raising these important issues.
The Internet is a game-changer in the world of information, as pointed out by Ms Low. Its vastness and reach are unparalleled. It has given us easy access to almost any information that we wish to find. The benefits of being wired and plugged in are tremendous, and we want to help more of our people get plugged in, especially the elderly and those from low-income households. However, we also acknowledge society's many concerns about the dark side of the Internet. Anti-social behaviour that we see in the real world can take place and do similar harm in the virtual world – bullying, grooming and gambling happen online, too. As a community, we are also concerned about the spread of untruths and rumours, racist comments and hate speech that could undermine our social cohesion and racial harmony.
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Given the pervasiveness of the Internet, it is a shared challenge for many societies to deal with its downsides while optimising its benefits. How do we protect our young, in particular, from cyber risks? How can we preserve and uphold our shared values of respect and graciousness, and importantly, our racial and religious harmony?
Madam, these issues are not new to this House. Just yesterday, Mr Edwin Tong called for tough measures against cyber bullying, echoing comments made by Mr Zaqy Mohamad and Mr Hri Kumar earlier in the year. Ms Low Yen Ling proposed that we equip parents to better guide their children in navigating cyberspace safely. Beyond this Chamber, Members have also called for more responsible use of the Internet's power for communication and interaction. Mr Baey Yam Keng has also alluded to this issue just now.
I share the Members' concerns. I would like to assure Members that the Government will continue to support cyber wellness efforts and equip our people with information literacy skills. We have taken a multi-partner approach so as to reach out effectively.
Working hand-in-hand are NLB, MDA, the Inter-Ministry Cyber-Wellness Steering Committee, and the community-led Media Literacy Council. We have worked closely with schools and parents to equip our next generation with the skills to be responsible content consumers and creators. Last year, my Ministry updated this House on NLB's and MDA's plans. NLB's workshops have equipped more than 6,000 parents and teachers with these skills. NLB and MDA have also developed interesting teaching and learning resources. This year, both agencies will continue to find creative ways to share the important message with our people. The Inter-Ministry Cyber Wellness Steering Committee (ICSC) has provided funding support to more than 20 public, private and people sector projects.
One upcoming project is the iZ Hero Adventure Exhibition at the Science Centre. It aims to inculcate healthy online habits among young children. Primary school students will take on the role of the hero in an interactive, multimedia game, learning strategies to overcome risks, such as cyber bullying. The exhibition will be open soon, and more than 150,000 students are expected to visit it before it ends its run in 2016. We want to encourage healthy practices with full input from the community. I am heartened that Singaporeans have spoken up against negative online behaviour.
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In my interactions with youths, I have also noticed that many of them voluntarily bring up their worries about some of the less savoury sides of the Internet, such as hate speech and cyber bullying. It is encouraging that the generation of \"digital natives\" wants to shape cyberspace for the better, reaffirming the importance of values, such as respect, tolerance and harmony.
I would like to commend parents, teachers, students and members of the community for taking an active interest in shaping our online common space. The Media Literacy Council (MLC) plays an important role in catalysing and driving these important discussions.
Just last month, the MLC-organised activities to mark Safer Internet Day, centred on the global theme, \"Online Rights and Responsibilities\". I dropped in on a workshop at the Bishan Library and found it very useful for parents and their young children as they were taught about the potential risks of the Internet.
Last year, my Minister spoke about a safer and more civil Internet environment when he mooted the idea of an Internet code of conduct. The MLC has studied the idea of a code of conduct, and consulted stakeholders. It has decided that one good way forward is to work with the community to distil and develop a set of social values. In his speech to mark Safer Internet Day, the MLC Chairman, Prof Tan Cheng Han, highlighted that our shared values, such as \"integrity, responsibility, respect, tolerance and empathy…hold well, whether offline or online\". I think this would serve us well as the underpinning philosophy to guide public education efforts towards instilling the kind of behaviour that we would all like to be part of and like to see on the Internet.
On our part, the Government will continue to support the MLC in its efforts to engage the people and private sectors. Ultimately, all of us can play a part to make the Internet a safer and more responsible space for all users.
I would like to close by reiterating that the Government is committed to ensuring that our libraries continue to inform and enrich the lives of Singaporeans, and that agencies continue to work together in fostering responsible content consumers and creators.
Assoc Prof Dr Yaacob Ibrahim: Madam, Senior Parliamentary Secretary Sim Ann spoke about our investment in libraries to foster a knowledgeable people. Another important investment is strengthening our Public Service Broadcast (PSB).
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Like libraries, PSB programmes are also funded by our Government. Indeed, we see both as important public goods. They both help foster a knowledgeable people who are appreciative of our past, informed of the present, and prepared for the future.
Madam, with your permission, may I display a few slides on the LED screen, and I will also play a video later on?
The Chairman: Yes, please.
Assoc Prof Dr Yaacob Ibrahim: Thank you, Madam. The slides show a few examples of PSB programmes that have done well. Last year, some 4.4 million viewers tuned in to PSB programmes on free-to-air TV. PSB programmes offered online at xinmsn.com had five million views. I thank Mr Baey Yam Keng for affirming the importance of PSB and its role in building a Singaporean identity and fostering social cohesion.
The Government recognises the value of public service broadcasting to Singaporeans. We have thus continued to support bringing PSB programmes to our people, even after we stopped collecting radio and TV licence fees in 2011. We are also taking steps to enhance the quality of locally-produced PSB programmes – a point raised by Mr Baey. This was recommended by the PSB Review Panel, whose members were drawn from the community, the media industry and academia. The Government accepted the Panel's recommendations last year, and we boosted support for PSB with a 35% increase in funding, with $630 million spread over the next five years.
With the increased budget, MDA has begun to roll out the Panel's recommendations. It worked with MediaCorp to develop and test pilot episodes for PSB programmes. This pilot testing enables programme concepts to be refined through a feedback process. We hope this will result in more PSB programmes that better resonate with viewers, such as Mr Baey.
MediaCorp piloted three episodes in October last year. Audiences – in the studio and online – voted for their favourite programme concepts. They also gave useful ideas on how to improve the programmes. After pilot testing and taking in viewers' feedback, MediaCorp will be producing three full drama series later this year: Mata Mata on Channel 5; Di Luar Garisan (Out of Line) on Suria; and Veethi Varai (Estate) on Vasantham. MediaCorp will continue engaging viewers on more pilot episodes.
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Besides engaging viewers for feedback, we need innovative ideas to keep good PSB programmes coming through the pipeline. MDA launched the PSB Contestable Funds Scheme in July last year. This opens PSB funds to both FTA and non-FTA broadcasters. We want to encourage a diversity of ideas from a variety of players. MediaCorp has been awarded funding under the scheme, and we hope to see more non-FTA broadcasters participate.
The PSB Contestable Funds Scheme also encourages broadcasters to deliver content on multiple platforms, thereby spurring them to be more innovative. It will take time, but we are moving towards a future where PSB content can be viewed beyond FTA TV – on pay TV, on the Internet, and on our mobile devices. So, it is quality PSB content on the go, anywhere and anytime.
Parts of that exciting future are already here. In February this year, MediaCorp launched Toggle – its \"Over-the-Top\" (OTT) service. Toggle includes locally-produced programmes from MediaCorp's free-to-air TV channels. Viewers can access them on-demand for free, via the Internet and selected mobile devices. Major national events will also be streamed \"live\". In fact, the recent 2013 Budget Speech was streamed \"live\" on Toggle. Come August this year, Singaporeans will be able to enjoy watching the National Day Parade on their mobile devices. MediaCorp also plans to extend free local content from Toggle to overseas Singaporeans in the middle of this year.
The increased PSB funding will also benefit the production sector as we reach out to a diversity of players to produce better quality PSB programmes. This will help attract and retain talent, thereby sustaining and strengthening our local broadcasting and production ecosystem.
However, Madam, we recognise that the TV industry is still dependent on advertising revenue. We thus see more entertainment programmes on TV, as they are more popular with our viewers. But TV can do more than entertain. I believe it can play a key role in fostering a knowledgeable people through a strong line-up of quality, informative and educational programmes.
Hence, the Government will invest another $182 million over the next four years, dedicated to supporting more locally-produced documentaries and current affairs programmes. We currently have a few good, informative programmes on TV. For example, we have Channel 8's Tuesday Report and Channel NewsAsia's Insight. Singaporeans can look forward to more of such
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programmes as we ramp up production in our four official languages – English, Malay, Mandarin and Tamil. These programmes will cover a wide variety of issues, such as our culture and heritage, the environment and public housing.
One example of the type of quality local documentaries that we want to see more of is \"History from the Hills\". [A video was shown to hon Members.] The video shows a trailer of the programme, which was aired on MediaCorp's Okto earlier this year. The programme recounted the history of our nation through stories revolving around the Bukit Brown cemetery – starting from the first grave dated 1833 to the closure of the cemetery in 1973. It shed light on our past, and brought to life important pieces of Singapore's heritage.
Madam, with the additional funding, we hope to bring more of such insightful and interesting programmes to our people – not only to inform and educate, but also to inspire our people to pursue and fulfil their dreams.
Madam, I will now address other issues that Mr Zaqy Mohamad has raised, which relate to the Government's approach towards content regulation.
Our objective in classifying content is to enable consumers to make informed choices. Through classification, we get to enjoy a vibrant media scene, with a wide variety of choices to suit our needs when we turn on the television or go to the movies. At the same time, we ensure that our young grow up in a safe media environment, with parents helping to guide them in making the right choices.
Classification is not the job of MDA alone; we have to consider the views and needs of our society. So, MDA takes a co-regulatory approach. It actively consults the industry and the community in developing content guidelines. This process gives MDA invaluable insight into our people's diverse views and sentiments, even as we come together to shape our common space. Industry co-regulation is not new. It has long been the practice with the broadcast and print industries, where the industry takes responsibility for ensuring that the content adheres to MDA's content guidelines.
I would like to take this opportunity to affirm the importance of our partnership with the industry and the community. Building on that, I am pleased to announce that we will be introducing co-regulation for videos and the arts.
First, under a new video co-regulatory scheme, video distributors will be able to self-classify videos up to PG13 rating. This will facilitate industry growth.
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It will also benefit both video distributors and consumers as new video titles will be made available faster. As more than 70% of the video titles that MDA currently classifies are PG13 and below, the potential benefits are substantial.
At the same time, I would like to assure Mr Zaqy and hon Members that safeguards are in place to ensure that these self-classified videos will be in line with existing content guidelines. Only qualified content assessors will be allowed to self-classify content. I am pleased to say that MDA has worked with the Workforce Development Agency and the Singapore Media Academy to train content assessors. So far, 50 content assessors have been trained. This will facilitate the roll-out of the scheme when the Films Act is amended to cater for industry self-classification.
Secondly, we will also introduce co-regulation for the arts. Currently, all arts performances are classified and licensed by MDA on a per event basis. But for a majority of arts performances, this will no longer be the case with the introduction of a two-tier Term Licensing Scheme.
I am pleased to announce that all arts groups will be invited to join Tier 1 Term Licensing. Tier 1 groups will be able to self-classify performances that fall under a \"General\" rating, and which do not have racial, religious or political content. This will cover the majority of arts performances in Singapore – up to 90% if we go by performances classified in 2012. Arts groups will be able to stage as many performances as they want during the one-year licence period, and the licence will be renewable. Furthermore, they need not pay licensing fees to MDA for self-classified performances.
Even as we empower our arts groups to self-classify content, term licensees need to exercise this function responsibly. Arts groups need to provide accurate classification ratings and consumer advisories so that the public can make informed choices. Given that classification is an important responsibility that needs to be exercised with care, all Tier 1 Term Licensees will need to furnish a $1,000 performance bond signed by a guarantor. There is no need to make an upfront cash payment.
Going one step further, Tier 2 Term Licensees will be able to self-classify all performances up to the \"Restricted, or R18\" rating – the highest rating for arts performances and events. Because they can self-classify performances that deal with potentially sensitive issues, such as race or religion, Tier 2 arts groups need to have established a good track record over three or more years in order to qualify. This involves adhering to licence conditions, being consistent in
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providing the necessary consumer advice in publicity materials, and being responsive to community feedback about potentially controversial content.
The qualifying criteria for Tier 2 Term Licence that I have just outlined are not meant to discourage any arts groups from participating in the scheme. The criteria are meant to set a minimal benchmark for self-classification to be done in a responsible manner.
Madam, we target to amend the Films Act and Public Entertainment and Meetings Act early next year to provide for video self-classification and arts term licensing.
Besides extending co-regulation, we will also be reviewing how we regulate content across different forms of media. As I mentioned in my earlier speech, the Media Convergence Review Panel had recommended the harmonisation of content regulation. The Panel envisaged that the same piece of content would be labelled with the same age rating, whether it is delivered through TV broadcast and film, or through the Internet. I agree with the intent to make our classification system more intuitive and helpful to consumers. We will take steps to harmonise content regulation across all platforms.
Madam, I would like to address one more question from Mr Baey Yam Keng. He asked if more local news articles from The Straits Times and Lianhe Zaobao could be provided for free online. I am afraid this is a commercial decision for the newspapers to make.
Madam, to sum up, I would like to reiterate that the Government is committed to fostering a knowledgeable society. We will extend access to library resources, equip our people to harness the power of information, and provide quality PSB programmes that inform, connect and inspire our people. In all our efforts, we are actively engaging and collaborating with industry and community partners as I believe that, collectively, we can provide better quality public goods that meet the diverse needs of our people.
Another point that was raised by Ms Low was on leveraging the potential of the NGN (Next Gen NBN). The NGN that is currently being deployed provides nationwide high-speed broadband access up to 1Gbps to all physical addresses, including homes, schools, Government buildings, businesses and hospitals. With this network, households and businesses will be able to access more information with rich content at a faster speed. More than 350 schools will tap into our network, which will benefit teaching, learning and assessment
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applications that may be bandwidth-intensive. Consumers were also enjoying lower broadband connectivity prices then in 2009 when the NGN was launched. So, with this, Mdm Chairman, we will move forward. Through co-regulation with video distributors and arts groups, we hope to encourage a more vibrant media and arts scene that will bring more choices and quality content to our people.
Mr Seng Han Thong (Ang Mo Kio): Madam, as policy issues become more and more complex and cut across many Ministries, like the issues of population, housing and transportation, what is the Ministry's overall strategy to engage and communicate with Singaporeans of all ages? For the younger generation, has the Ministry exploited fully the new media to reach them and to the seniors? What are the most effective ways to communicate with them with specific messages? What constraints does the Ministry face to engage them? Also, with the appointment of the Chief of Government Communications, have there been any new initiatives launched in terms of policy announcements and other Government messages? As the Ministry's information service is to enhance the Public Service's communications network, how does the Ministry coordinate with the various agencies and Statutory Boards to help them engage stakeholders and communicate policies and programmes to the public?
(In Mandarin): [Please refer to Vernacular Speech.] Madam, the Health Sciences Authority recently published a newspaper advertisement reminding members of the public not to believe in claims that certain pills can deliver miracle cures. I think this is an innovative and effective way to communicate with the elderly, because old folks worry most about falling ill, and they love to buy medicine on their own. The only problem is, they may buy the wrong medicine. I hope that the various Government Ministries will take a pragmatic approach when they communicate with old folks. Firstly, do not show them too many figures; secondly, do not tell them too many reasons. They understand the reasons, but they must know what is the message you want to convey. In this aspect, I believe the Government needs to do more to improve communication with the masses, and to focus on the main communication media with the elderly, namely: newspapers, radio and television.
There are a few reasons why the elderly read newspapers: firstly, is to look through the obituary, to see if any of their friends has passed away; secondly, they listen to the radio as there is a rich variety of information and the presenters are humorous; they like to watch television news and share those news with their friends. Some television programmes, for example, Tuesday
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Report and other documentaries, are well loved by old folks as they are informative. Therefore, I hope MCI will consider increasing funding for these programmes.
Many old folks also have iPhones, so we also hope that the Government can make use of iPhones to communicate with the elderly. For example, during Chinese New Year, we receive cartoon versions of the God of Fortune. Why can we not create a cartoon version of the Minister for Finance, and tell them about the good news from the Budget? For example, the Wage Credit Scheme, where 40% of workers' wage increment will be subsidised by the Government.
Mr Baey Yam Keng: The Government has been actively encouraging the participation of Singaporeans in many aspects of policymaking. This is evident in the public consultations, dialogue sessions and, of course, REACH. To the Government's credit, in preparation for this Budget, much public feedback has been taken into account in the many new measures announced.
Despite this, the level of citizen involvement in policymaking can be improved. Singaporeans are always complaining that the Government is not listening to them and that their feedback is not taken seriously.
Madam, a case in point is the White Paper on Population. In the last few years, many Singaporeans have been complaining about the increasing squeeze in our common spaces and the overwhelming presence of foreigners in every sector of our economy. According to the White Paper, between March and October 2012, close to 2,500 pieces of feedback were received directly. How does this number compare with the figures for other consultations? Have enough time and avenues been allocated and utilised for Singaporeans to understand and discuss the proposals and projections for this very complex issue, and to collectively brainstorm possible solutions for our future? As far as possible, new policies should be well thought-through, discussed and debated, widely consulted with all relevant stakeholders, revised and fine-tuned, as had occurred with some of our Bills, including HOTA and Consumer Protection. Not everyone will agree with all policies, but a rigorous process will improve understanding of the subject matter and, subsequently, buy-in.
Madam, as the Vice Chairman of REACH Supervisory Panel, I know that the volume of feedback and suggestions REACH has received over the years has been increasing. However, REACH can only play a limited part in channelling
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the feedback received to the relevant Ministries, and closing the loop with the contributors when the Ministry replies. What is the overall Government's strategy of tapping on public suggestions and views to help shape our policies? Could the Minister also share recent examples of how feedback has impacted policies and the speed with which the changes are being implemented? Finally, what are the obstacles preventing more expeditious response to feedback and what are the strategies we have in place to overcome these difficulties?
Mr David Ong: Madam, the pervasive use of multiple communication platforms, coupled with our heightened social and political consciousness, has raised public expectation and participation in policy formulation and decision-making. This is clearly evident from the recent discussions and debates on our Singapore Conversation, Our Population White Paper and, now, Budget 2013.
The investment into advancing Singapore's information highway has spurred the public's consumption of more varied views and information. There is no doubt that more Singaporeans will turn to social media to be more vocal about their own views.
These views posted on Facebook, Twitter or blogs can spread quickly and widely. One man's disgruntlement in a Facebook update can catalyse and rally a mass of people. In a way, these posts are symptoms of Singaporeans who want an outlet for their anxieties and who wish to be involved in the decision-making process of policies which will concern them. In the same vein, policy-makers, Ministers and Members of Parliament have embraced social media to better explain policies, push out an idea, issue or suggestion to solicit and engage citizen participation.
So, whether it is online, offline, traditional or new media, one can easily assess ground reaction, comments and views on any given policy or issue. People want a greater say in policy formulation, as public participation is regarded as a way of empowerment and as a vital part of democratic governance.
Singaporeans are no longer willing to be passive, being fed policies concerning them. They want to be part of the policy decision process, to be consulted and have their views and feedback considered. This may well lend ground realities, better terrain assessment before policies are passed. More importantly, this \"joint ownership\" of policymaking will become more important
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and relevant as Singapore matures as a democratic country.
Can the Ministry share on how the Government is planning to involve more Singaporeans in policymaking and facilitating a better two-way communication between Government and citizens? What is the Ministry's diverse range of citizen-engagement platforms doing to meet the needs of different segments of our population? How effective is REACH, the Government feedback unit, in gathering feedback, engaging its citizenry in policy decision-making and closing the loop of feedback received? How is such feedback relayed to and considered by the various Ministries?
The Chairman: Mr Zaqy Mohamad, you can take the two cuts together.
Mr Zaqy Mohamad: Thank you, Madam. The Government has set up many feedback channels over the years. The Feedback Unit has evolved into REACH today, and the various Ministries and agencies also conduct regular feedback forums and consultation exercises.
The participation rate and level of activity over the years have certainly increased – credit to the various agencies and staff. But based on my involvement with REACH previously, the quality of feedback is also getting better as more citizens have a better understanding of the social and economic environment, the policies, and they are also better able to look at alternative examples and models.
There is, indeed, a strong desire among Singaporeans today to want to be consulted and have their opinions considered in policy decisions. However, despite the increased efforts, the question we need to answer as a Government is why do people still feel as though they have not been heard or engaged? Is it because the Government's outreach has not achieved a certain degree of scale? For those who participated, do they feel that the replies have not been convincing or they receive no replies to their proposals? I understand REACH has tried to aggregate some views, and Ministers and Members occasionally do explain why the alternatives were not considered at dialogues and interviews. But, perhaps, Government communication has not been effective enough in sharing the engagements, feedback and considerations out there with the wider public.
The other question is whether or how the Government engages with the public needs to evolve because we do very well in one-to-one situations or small dialogues. On a wider scale – on a mass scale – I think there has to be
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some way in which we need to engage better. Often, at feedback sessions, the scepticism I sometimes receive from people is that, on top of their minds, is the Government ready to listen or have they already made up their minds?
So, many feel that the Government spends a lot of time engaging on policies, but only done after the fact when the policies seemed to have been decided, especially the important policies that impact citizens.
So, perhaps even we could look at the Parliamentary process to see whether it can be fine-tuned to allow for better feedback and engagement with citizens. We get this feeling that sometimes we run through a lot of approvals of the Bills in such a short space of time that leaves little time for feedback and engagement with citizens to make them believe that their views were taken on-board.
The Second Reading and PQs provide a good platform for sharing of perspectives in Parliament because they enable both the Government and citizens to understand the various issues and concerns of a policy or Bill. But if we believe that the Government does not own all good ideas out there, it may be worthwhile to let the community internalise and revert with feedback following the Second Reading. Government agencies can then organise forums and feedback sessions with citizens, and this can be achieved if the Parliament's Third Reading comes a month later or at a later session, before Parliament comes to a vote on the Bill. And this enables the Government to make any amendments to policy after considering the debate by the Members and the Government's feedback channels with the public. It also enables the Government to assess public sentiments on the various issues and to make adjustments, if necessary, for immediate implementation.
My next point, Government engagement with citizens is certainly important but cannot be just left to the officeholders and Members. Perhaps, we could also involve more civil servants and make them play a more active role in Government feedback as this will also help the whole-of-Government be in better touch with the ground and understand sentiments better. This will make for a more connected Government and policy-making if we can achieve this at connected levels, from political officeholders down to the executives.
It is important for the Government to use the citizen engagement process with the aim of consultation and garnering citizen buy-in on public policies. This comes at a time when Government credibility and trust are at stake, given how little people feel they were engaged and consulted with recent policies, such as
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the Population White Paper and recent hot topics, such as minimum wage or car financing. More dialogue and engagements are certainly needed and the Government must be able to listen and reach a wider audience. Otherwise, this is a lost opportunity for the Government to build credibility and trust with citizens at a time when the Government needs it most.
My next cut, Madam. Given the popularity of the Internet, more and more Singaporeans are turning to online sources for information and news. It is heartening to see Government communications have evolved to make more information available online and opening up more channels for feedback and interaction.
Factually, a new site set up by the Government is an excellent initiative in harnessing information to clarify doubts and explain policies, especially if citizens are unclear or need clarification of hot topics online. This is something we are good at – the factual and logical explanations to explain any misinformation online.
The online media provide the Government the ability to better sell its messages and policies. The Government should also explore how it can harness the online platform to \"sell\" its policies better and share stories of how various schemes and policies have helped the people, businesses or organisations in Singapore.
The online media also provide the Government with the opportunity to capture people's imagination of our hopes and aspirations for Singapore to be better. Perhaps, our population paper could have also been better explained using multimedia through visualisations and stories to portray different scenarios being considered.
In addition, difficult issues on housing prices and minimum wage can be better presented, through explaining the considerations of alternative models and taking citizens through why the Government's model is better through visualisation and stories and scenarios.
The Government has always done well in providing information, perspectives and putting forth logic. But this is no longer enough in today's terms. The Government needs to engage citizens visually, emotionally and with
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narratives that will connect, especially online.
The question the Government needs to answer is not just about whether Singaporeans receive accurate information and are well-informed on Government polices online. Just as important today is whether the people buy-in and accept the information provided; and whether the Government has connected and won the hearts of the people, too.
Assoc Prof Dr Yaacob Ibrahim: Madam, I agree with Members that Singapore society has grown more diverse and the public wants to have a greater say in policies. For the past 50 years or so, this Government has been concerned with the survival and success of this nation and the aspirations of our people in wanting a better future. Public officers, especially those working on public communication and outreach in the various Ministries and statutory boards, have been integral in helping the Government explain policies and responding to feedback. No society remains static.
As our society becomes better educated and open to ideas and influences from near and far, there are bound to be different views, perceptions and expectations. The ways in which the Government departments operate have to evolve with the times and, indeed, they have. Increasingly, we have seen different pockets of society forming quickly to declare their interest and take positions around an issue or a cause. Government agencies, therefore, got to be better equipped to engage an increasingly diverse society of Singaporeans.
We also have to take note of the high expectations of those who sometimes want to have their way and quickly on an issue. And I am sure Members of the House have themselves noted the diversity of voices on the ground when they meet constituents and the challenges of representing conflicting viewpoints fairly. Even as some Singaporeans are increasingly articulate in expressing themselves and using various platforms, like new media, there remain many others who are quiet by nature but with dedication to their work, and their role in bringing up families and contributing to Singapore is no less important. They should never feel left out. We should be inclusive of as many views as possible and continue to engage in ways that they feel comfortable, such as the elderly.
The Government is committed to making public engagement a cornerstone of policy-making. We have enhanced our efforts to engage stakeholders in policy making, explaining policies, getting feedback and tweaking policies to better benefit people from all walks of life.
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Last year, Madam, we embarked on a national conversation on the kind of home we would like to have in the future. Across the Government, many similar conversations have been taking place, and Singaporeans have responded very positively. We have to continue along this vein, listen carefully and consult widely before a decision has to be made at some point.
Even as the Government expands on our public communication efforts, we are aware that there is room to do better. Where issues appear complex, we have to learn how to explain in bite-size fashion, in appropriate ways for different audiences, such as the elderly, especially policies that have great impact on our people. Many policies have benefited from Singaporeans' inputs and ideas and the Government will continue to bring people together to co-create long-term policies for our collective future. At the same time, in any public engagement or policy-making process, we need to realise that there will be benefits, conflicting interests and trade-offs. What may be of importance to our home-grown businessmen may not appeal to our graduates fresh out of school or the retirees. Some people get cautious or defensive at first glance but may later realise it is a good move when issues and trade-offs are discussed and explained.
We also have to move towards not just engaging our stakeholders but encouraging them to share ownership and run programmes with our support. Several of our agencies are already moving in this direction, giving room for our philanthropists, community leaders, experts and volunteers to play their role as active citizens. To this end, we will continue to build skills and abilities within the public sector to better engage and involve stakeholders in policy-making and responding to ideas and feedback, and giving them space to take ownership.
Beyond the intricate modelling and farsighted data and analysis we might have for policy-making, we will continue to built capabilities to better understand the various stakeholders and inspire to cater to their different needs. This will always be a work-in-progress to keep in step with the changes in society. Public communication and engagement are critical in building and keeping trust as we go forth and progress further as a people, as a nation. And that is how we have come this far and we will do more to go further.
Now, let me invite the Senior Minister of State Mr Lawrence Wong to elaborate on our efforts.
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The Senior Minister of State for Communications and Information (Mr Lawrence Wong): Mdm Chairperson, Minister Yaacob has shared about how the Government will be listening carefully and consulting widely in the formulation of policies. So, let me now further elaborate further on how we intend to do this.
Several Members of the House – Mr Zaqy Mohamad, Mr Baey Yam Keng, Mr David Ong and Mr Seng Han Thong – have highlighted the need for the Government to involve Singaporeans in the policy-making process. We fully agree with them. Our policies are meant to improve the lives of Singaporeans and must take into account the views of Singaporeans.
Public engagement is an important part of the policy-making process. It is neither new nor something that we are just doing now. It is, in fact, something that we have been doing all along but, over the years, we have increasingly intensified our efforts to engage on a wide range of issues with as many stakeholders as possible, and through various platforms, be it dialogues, webchats, town halls or discussion forums.
In 2012, there were more than 30 public consultation efforts across the different Ministries and we have a slide up that shows some examples of the various consultation exercises that took place. These are just a few illustrations. Beyond these 30 consultation efforts, there were many other more informal exchanges, focus group discussions that took place across the different Ministries and agencies.
However, as highlighted by Mr Baey Yam Keng and some other Members, there is certainly scope for us to do more and we can still do better to improve the level of citizen involvement in our policy-making process. So, I would like to assure Members that the Government will continue to look for meaningful and relevant ways to engage Singaporeans and involve them in policy-making. Our aim is to give Singaporeans a sense of ownership over the issues and policies that matter to them – a sense of ownership over shaping their future. We will improve our capabilities to do this, to gather ground sentiments and public feedback. We will also distil lessons from our recent experiences, including the White Paper on Population, and then see how we can do better.
One key strategy for us is to enhance REACH, which is now part of MCI. REACH will take on a larger role to spearhead engagement efforts across the whole of Government. Mr David Ong asked about the effectiveness of REACH. In fact, last year, REACH alone conducted 21 engagement activities, both face-
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to-face and online, and received an average of 5,500 inputs a month from Singaporeans. This is a six-fold increase in feedback received since REACH was first launched in 2006. So, REACH has done quite a fair bit and it will continue to do more. It will step up its efforts face-to-face with various segments of the community in terms of engagement. For example, this year, REACH will be launching a series of dialogues for Professionals, Managers, Executives and Technicians (PMETs) group, to delve deeper into issues facing this group, who make up more than half of Singapore's workforce. REACH will also make greater use of social media platforms, including Facebook, to make it even more convenient for Singaporeans to provide feedback and for REACH to stay connected with them.
Besides working through REACH, MCI itself will also help to coordinate the building of public communication and engagement capabilities across all Government agencies.
Mr Seng Han Thong mentioned this and highlighted the role of our Information Service Officers. Indeed, an important group of people who are crucial in our public engagement efforts are our information service officers. They form the backbone of our public engagement efforts. We are proud of them and we are building them up and investing in their capabilities. As Mr Seng mentioned, we have appointed a new Chief of Government Communications. That has brought more professional expertise, experience and leadership to the service, and we will continue with that leadership to invest in the service to build up capabilities to coordinate efforts across Ministries and also to improve our ability to do things like sensing of information on the ground, analyse information, and better craft messages to different audiences.
Some Members − Mr Zaqy Mohamad and Mr Baey Yam Keng − have shared how people sometimes question the value of giving feedback to the Government. I understand their concerns. Government agencies can and must do more to consult at the early stages of the policy process upfront and consider all public inputs given seriously and with an open mind. Agencies also need to do more to close the loop after the feedback has been given to explain the reasons for their decisions, so that people can understand how their inputs helped to shape the final decision. Some Ministries are already doing this. But, clearly, we need to level up the efforts across all our public agencies. So, through REACH spearheading our public engagement efforts through the
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information service, we intend to do that.
At the same time, we must also recognise that consultation is also a two-way street. Just as the Government needs to be open to different views, so, too, must the participants of public consultation. Individuals and civic groups are entitled to expect every serious proposal to be considered, but they must also accept that not all suggestions can be accepted by the Government, especially when there are different and often competing viewpoints among Singaporeans.
So, the key to effective consultation is that all parties must take part in it with a spirit of mutual respect for the legitimacy of the process and the perspectives of all participants. And there are many examples of consultations undertaken in this spirit which have led to important changes and shifts in policies. Mr Baey asked about examples. Let me cite just two of them.
For example, the Enabling Masterplan, which was initiated by the then MCYS, was a masterplan to address the needs of persons with disabilities and their caregivers. The masterplan was very much the result of a process of co-creation, involving NGOs and other stakeholders.
Another example is when MOH recently extended MediShield to cover newly-diagnosed congenital and neonatal conditions. This also arose from suggestions, including those made during a public consultation on enhancements to MediShield, and also suggestions from participants at the Our Singapore Conversation (OSC) sessions.
Going forward, the OSC will be an important process for us to discuss the broader directions for our nation, and how policies should change to support these new directions. We have had many organisations and interest groups organise their own ground-up dialogues as part of the OSC. You will see a slide here. You have Minister Grace Fu doing a session in Yuhua with the senior citizens. The other picture is one of the OSC sessions held in London with overseas Singaporeans. But there have been many OSC sessions and, through this process, we aim to involve as many Singaporeans as possible from a wide cross-section of society.
One participant said of her experience in the OSC: \"I must say that my experience of the SG Conversation opened my eyes to other Singaporeans. I do encourage people to go and speak their minds, and learn from fellow Singaporeans. If we are Singaporeans, we do have a duty to engage in a
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dialogue about our future.\"
It is very encouraging to hear this and, indeed, we have heard similar feedback, not just this one but from many other participants in the OSC. This is something that bodes well for our maturing society because, for our democracy to work, our citizens must be prepared to engage deeply on the issues that matter to them. We already see this happening. As Mr Zaqy Mohamad said, the feedback on REACH, in terms of quality, is getting better. In the letters columns of our newspapers and in various online platforms, we now see more Singaporeans debating with each other, advocating their respective positions. Sometimes, before the Government agency has time to reply to a letter, you see a counterview from another Singaporean. These are positive trends. They demonstrate our peoples' desire to play a part in shaping the future of Singapore through robust dialogue and conversations, not only with the Government, but also with each other.
Sometimes, passions are aroused during these debates. That is okay, because the issues we are discussing are serious issues that affect the lives of all Singaporeans. But it is important that we do not vilify those who disagree with us, or tear down each other in the process of debate. Ultimately, we all want the best for our country and for Singaporeans. At the end of the day, we must be able to look past all of our differences, all of our disagreements and still forge a common future, for there are far more things that unite us than divide us.
That is what we are seeking to do in the OSC. So, I would encourage all Singaporeans to participate actively in this process of a national conversation. We are now moving to the next phase of the conversation where we will dive deeper into the concerns raised during the earlier phase of a more open dialogue. There will be a range of issues to discuss, and various forums and sessions where people can sign up to join the conversation in shaping our future Singapore.
Mdm Chair, I would like to assure the House that the Government is committed to consult as widely as it can, to listen deeply and to incorporate the views of Singaporeans when formulating its policies. I acknowledge there are still areas to improve. But through the OSC, through efforts by REACH, through MCI's own Information Service Officers and the efforts of all public agencies, we will do more to promote public engagement.
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One area which Members talked about and which I think we can do more because we are somewhat behind the curve is in social media. We recognise that new media usage is rising and that more and more Singaporeans now turn to online platforms for information and news.
That is why, as many Members observed, you will see Government agencies now stepping up their online presence. It is not limited to our Ministers on Facebook because you will also see many agencies using a combination of Facebook, YouTube, Twitter, mobile applications and digital platforms. The statistics show an increase across-the-board. But beyond the statistics, it is how agencies actually use these platforms. I will cite some examples.
The Singapore Civil Defence Force (SCDF) uses several social media platforms to communicate with the public. It has a Facebook page to reinforce the importance of fire safety and to share information on the work of SCDF personnel. It also uses Twitter to provide the public with time-sensitive updates during emergencies. The Singapore Police Force has a Facebook page with a very strong 300,000 fan base. It also uses that to reach out to the community to help solve crimes and ensure public safety with timely advisories.
The Gov.sg website also has mobile applications for the Apple and Android platforms. So, we do not take sides. To tap on the increasing popularity of tablets, such as the iPad, we will be launching an upgraded Gov.sg application. Mdm Chair, with your permission, I will show a short video clip on this.
The Chairman: Yes, please. [A video was shown to hon Members.]
Mr Lawrence Wong: With the new application, we can provide users access to the latest news updates and services across all Government agencies from a single platform. Subscribers will get latest news alerts, videos, publications and Government data and will be able to share them easily with friends online.
Parliamentary debates are also an important way for the public to know more about policies. I think Mr Zaqy Mohamad alluded to this earlier. I am pleased to inform Members that MCI will work with MediaCorp to enhance coverage of Parliamentary proceedings. We will work with MediaCorp to upload all footage from Question Time to CNA's microsite. We will also look into lengthening the archival period for Parliament videos from the current one month. This will allow the public to fully follow the debates at a convenient pace.
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The Government will also put out more short video clips using multimedia to explain issues to the public – something that Mr Zaqy Mohamad has also suggested. Last year, for example, we produced many videos that touched on a wide range of topics, from the GST Voucher to the Green Man Plus scheme for pedestrian crossings, and we will have more this year and the years to come.
But communication online is not the same as our traditional broadcast medium. Social media is not a one-way broadcast; it is not a monologue. Rather, it is about dialogue; it is about participation; it is about engaging in an ongoing and meaningful conversation with stakeholders.
This is where some public agencies are already doing this but the efforts are still uneven across the Government. So, we will need to build up capabilities across all agencies, and be able to engage Singaporeans actively through social media.
An important part of this engagement is to ensure that our conversations are grounded in facts and that our citizens are well-informed on policies, a point that several Members also highlighted. We already have websites like \"Factually\" where people can find key facts relating to Government policies. Other agencies also have similar sites, like \"HDB Speaks\" by HDB and \"Mythbusters\" by MOT. But platforms alone are not sufficient. It is one thing to have a platform where you clarify facts. I think it is more important to engage online, to be present, to engage − so that any distortions, half-truths or untruths can be corrected quickly and we can all agree on a certain set of facts to debate from.
While we do more through social media, Mr Seng Han Thong also reminded us that there are Singaporeans who may not be comfortable using such platforms, and we need to be mindful of these Singaporeans and how we get our message across to them and how we engage them. So, I would like to assure Mr Seng and Members of this House that the Government will continue to leverage on both traditional and digital platforms to ensure that we engage with a wide spectrum of Singaporeans. We recognise that they are very diverse audiences and our messages have to be customised and better targeted at these different audiences in order to resonate with them. That is something we will be mindful of.
We will also intensify our ground efforts to reach out to Singaporeans and engage them directly, face-to-face, whether it is through town halls, policy forums or dialogue sessions. I believe many of my colleagues in this House are
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already doing this, and we will continue to do more.
Mdm Chair, public engagement is not a one-off effort. It is an on-going process to build relationships between the people and the Government, so as to shape better policies and improve the lives of all Singaporeans. The Government will do its part by stepping up our engagement and communication efforts so that, together with all Singaporeans, we can build a better Singapore for the future.
The Chairman: We have a bit of time. Does any Member wish to seek any clarification? Mr Png.
Mr Png Eng Huat (Hougang): The Minister mentioned about set top boxes to receive digital signals. Are those integrated set top boxes, in a sense, where you do not need to get another set top box from the cable TV? The second question is on teletext services. Will they be discontinued once the analog system is stopped? Would that be continued on a digital platform? And would you still allow people to use the vertical blanking interval lines on the analog signal for broadcasting data in the old system? Would you just shut it down or are you going to lease it out?
Assoc Prof Dr Yaacob Ibrahim: The set top box that I referred to is to allow you to use your existing TV to receive the digital signal. If you have cable TV with the set top box from the supplier, you do not need it. So, at the moment, if you are on SCV and you have a high-definition set top box, you can receive programmes in digital and high-definition.
On the Member's second question about whether or not other services on the analog system will be switched off, I will have to check this with MediaCorp. But our concern at the moment is only the free-to-air programming that we have now provided thus far through the seven channels. That will switch on to digital. I think, invariably, everything will have to go on to the digital platform, but if he allows me to check with MediaCorp on some of these services, I will get back to him on this particular point.
Ms Lee Li Lian: I would like to thank the Minister for his response to my cut. I would like to enquire about OpenNet. OpenNet is subjected to a penalty from $10,000 up to $1 million or up to 10% of their annual revenue and they are evaluated on a monthly basis, whereas M1, SingTel and StarHub face a financial penalty of up to $50,000 for each instance of non-compliance and they are evaluated on an annual basis. All providers are regulated by IDA. May I find out
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why is there a difference in the potential penalties imposed? And lastly, M1, SingTel and StarHub, as mentioned earlier on, are evaluated on an annual basis. At this pace, will our network be able to keep up with the pace and evolving needs of Singaporeans?
Assoc Prof Dr Yaacob Ibrahim: The penalties are different because they are providing different services. OpenNet is commissioned by the Government to roll out fibre optic network, and they have a certain deadline that they have to meet. But, to be fair to them, they have met the 95% target, which was met last year in June. So, now, the Universal Service Obligation (USO) is kicking in and, therefore, they have to deal with the USO. Meanwhile, M1, SingTel and StarHub are basically providing telecommunication services, including 3G services.
The Quality of Service that we just imposed last year, which is an improvement, is really to allow the companies to try and meet the standards as quickly as possible, even though they are evaluated on a yearly basis. I have to check that because we monitor this on a quarterly basis. We go out and do the checks. We are in constant dialogue with the providers to make sure that they can meet our targets.
It is not easy, given in a built-up area like Singapore, because signals came down and sometimes got blocked because of buildings around. But the three companies are improving their infrastructure as quickly as possible to meet the targets that we have imposed upon them. As I mentioned in my reply, the recent measurement showed them just a bit off the target that we want in their coverage. So, we will continue to work with them, and I agree with the Member that the pace is very important.
For the 3G network which has been rolled out for some time, we want to improve the coverage as much as possible. The 4G network will come very soon and, therefore, they have to be ready for that.
I think, more importantly, it is the expectations of our consumers. They want to have better coverage. They want to be able to receive the signals anywhere. So, I think these standards are good, in terms of meeting those expectations. But we will continue to review how best we can work together with the industry partners to meet these targets.
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Mr Low Thia Khiang: Madam, I would like to know from the Minister what the roadmap is for the initiative under the Next Generation Service Innovation Programme. In his reply, the Minister said that IDA is talking to the industry to set up smart centres. So, how long do you need to \"talk\"? Has any centre been set up so far and is there any target set for the future as to setting up of such centres, which I think is important for the productivity drive?
Madam, the next clarification is on the test regime that the Minister mentioned. He mentioned about 99% of coverage. But the coverage is a test on signal strength. How about signal quality? I understand that signal quality is important in terms of the speed of reception and all that. The other issue is about test on mobile phone dropped calls. It seems that there is a disconnect between the test results of the IDA and the actual experience of mobile phone and mobile device users outside. Could the Minister explain why?
Assoc Prof Dr Yaacob Ibrahim: Madam, on the last point, there are many factors that influence how signals get transmitted from the base station. The most important thing is that if Mr Low is prepared to give me some information about the places where the dropped calls have occurred, I will ask IDA to go and check, because we are concerned. If there is certain feedback that he would like to share with us, we will ask IDA to check that.
On his second point about the test regime, basically, what we do is we go out and test the speeds, which includes uploading and downloading. We are doing this on our own because we do not have quality standards for mobile broadband at the moment in time. But I had mentioned in my last reply in this House that we were looking into that. The most important thing is we must recognise that Singapore is a very built-up environment and there are many factors affecting upload and download speeds, like the equipment that you use, the kind of handphone that you have, the location. But, having said all that, we agree with the Member that we want to try and make sure that the experience of using ICT is as comfortable and convenient as possible for all Singaporeans. So, we will endeavour to try and improve on that.
On the work centres, I did not mention in my reply, we now have six pilots that we are working on. On the smart work centres, we have just called for proposals. So, let us be patient. We have to work with industry partners because we cannot go to anybody's place and just set up. As I mentioned in my reply, we are working with the NLB. The public service is also working on this particular project, together with the Treasury, the new MOM and MND buildings. So, as more partners come on board, we can provide a lot more accessibility to
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people who are prepared to work off-site.
On his point about the innovation roadmap, I hope he was referring to the iN2015. There was a same question asked by Dr Chia Shi-Lu. I did not have time to reply. Based on our assessment of the last masterplan that we have, we are on target to achieve everything that we have mentioned in the plan in 2015. As I mentioned in my reply, we are now looking at a new masterplan. We want to look at what we have done so far, how far we have gone and how we can improve further. But the new masterplan will be a joint masterplan between MDA and IDA because of the convergence. For the ICT rollout that we have done so far for businesses and homes, we are reaching the target. One target that was mentioned by Dr Chia about households is the 100% target for the low-income families. I just checked, we are now 97%. I think we are on target to reach the 100% target for low-income households to have both a PC and broadband access.
So, we will do our best, because we know that Internet access and the computer are now a necessity; they are no more a luxury. We want to make sure that everybody in Singapore has access to them.
Mr Zaqy Mohamad: Madam, I just want to pick up on the earlier point raised by the Member, Mr Low Thia Khiang. I think this was a Parliamentary Question (PQ) I asked previously on mobile access speeds. The issue is not so much the Quality of Service but more in terms of accessibility of the base stations. What I understand from the Minister is that they are working on something like having the mandatory setting up of base stations in new buildings. However, I was quite surprised in the reply earlier on that we are not looking at existing buildings or we are having difficulty gaining access to existing buildings. My sense is we should work with BCA to make it mandatory for such access. Because I think most of the mobile operators today have difficulty trying to access existing buildings. And these are usually spaces that are not available for retail or any other meaningful purpose, so there should not be any need for them to negotiate with building owners for space that is not really required. I think there is cost involved just to rent space, and we pass on to consumers. Perhaps the Minister would like to clarify.
The second question that I have, which I think is actually not covered so far, is about content pricing. On the last PQ that I asked, I was surprised that the Minister replied that content pricing was not the objective of MDA. If that is the case, the concern I have is whether content providers, like the three operators or even MediaCorp, out there are bidding for content at very high prices and passing the cost back to consumers. So, that is another question about
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affordability as well.
Assoc Prof Dr Yaacob Ibrahim: I thank the Member for asking the clarification. He is right. In my reply I mentioned about Code of Practice for Infocomm Facilities (COPIF). For all new buildings, we are now going to mandate them to have space to provide for the deployment of mobile infrastructure. For existing buildings, COPIF will apply, and the Member is right, we are now trying to increase the coverage as much as possible. We need to be able to have spaces to place the base station. There are times whereby we have difficulties engaging the building owners. A good number of them are private owners. I would like to assure the Member and the House that IDA is on top of the situation. We are in consultation and meeting the building owners as much as possible. But the most important thing is also to work with the Telcos to make sure that their requests are reasonable, because coverage and how they design it would also make sure that they have maximum optimal coverage in order to be able to relay the signals.
On content pricing, the Member may be referring to the issue of cross-carriage. As I mentioned earlier in the reply, the purpose of cross-carriage is not content pricing but really to avoid the fragmentation that we have seen in the pay TV market. Ultimately, I think consumers will have to reflect their unhappiness to the content providers that they are not prepared to pay a certain price. We are subject to market forces, unfortunately. And I know the providers – SingNet, StarHub – are all negotiating to be able to bring content to Singaporeans. But having said that, those are contents which they acquire. In my reply, I also mentioned about PSB content in which the Government is supporting a lot − $630 million over the next five years and an addition of $182 million over four years – to build up information contents, such as documentaries and current affairs.
So, we will do our best to provide content. But content pricing, which refers to offerings from the private providers, is really very difficult for the Government to intervene. We just hope that sensibility and rationality can prevail among all partners and all stakeholders because, ultimately, we want to ensure that Singaporeans have access to good quality content, both local and acquired.
Mr David Ong: My question to the Minister is this. I understand that almost 95% coverage is already in place for the New Generation Broadband Network, but there is still that 5%. And even in mature estates, like Bukit Batok, some of the residents are chasing and asking us why they could not enjoy the benefits of this network. Perhaps, OpenNet can be more transparent in telling us why it
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cannot be done. At the same time, it should also step up efforts to try to make it happen for the rest of the 5%.
Assoc Prof Dr Yaacob Ibrahim: It is a good point because the Universal Service Obligation (USO) has kicked in from 1 January this year. There are specific requests from the Member, and I am happy to look at that. But I would like to assure Members of the House that IDA is on top of the situation. We want to make sure that every household that asks for the fibre optic service will get it. There is a Quality of Service framework that we put in place, but we will monitor this very closely because, at the end of the day, unlike the first rollout that reached the 95% target, some of the locations here are basically not contiguous and they are dispersed all over the island. But there is no reason why we cannot deliver it in time. So, we will work with the providers and we are monitoring the situation very closely. But if there are specific requests from the Member, I am happy to get IDA and OpenNet to look into them.
Mr Png Eng Huat: For non-cable subscribers, if they want to buy a dedicated set top box, how much would it cost? Is there any indicative price?
Assoc Prof Dr Yaacob Ibrahim: The price that we obtained from the market – the total (the set top box plus the antenna) is between $80 and $100.
The Chairman: Mr Zaqy Mohamad, you may wish to withdraw your amendment.
Mr Zaqy Mohamad: Madam, on behalf of the Members in this House who have spoken earlier on, as well as the GPC, I would like to thank the Minister and all staff of MCI for a job well done and for giving us a very enlightened session today. I want to congratulate the Ministry once again for completing its first Budget session since its inception last year. With that, Madam, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $539,386,700 for Head Q ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $110,139,100 for Head Q ordered to stand part of the Development Estimates. (proc text)]
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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 T (Ministry of National Development)","subTitle":null,"sectionType":"OS","content":"Er Dr Lee Bee Wah (Nee Soon): Madam, I beg to move, \"That the total sum to be allocated for Head T of the Estimates be reduced by $100\".
To encourage couples to start their own families, more suitable housing options must be made available in a shorter period of time, and they must be affordable for the masses. So, what is affordable housing? What is the yardstick? Currently, many flat owners are saddled with long HDB flat repayment periods, up to 30 years and it puts them at great insecurity. There is a Chinese saying, 活到老, 学到老, that means lifelong learning. And many of my residents say that, in the case of HDB repayment periods, it is 活到老,还到老, that means lifelong repayment. Many of them are paying their HDB flats throughout their whole working life.
Could the flat prices be re-examined and re-adjusted? It will be good if perhaps, it could be priced not more than three times their annual salary so that residents can repay within 20 years. Perhaps, the Minister can also explore piloting shorter leases for HDB flats. The word \"progressive\" has been used many times in this Budget debate. Perhaps, he can also look into \"progressive\" interest rates to differentiate between the first-timers and the second-timers. The main purpose is to help Singaporeans to own HDB flats at affordable prices.
Next, I would like to propose a return of multi-generational flats via Build to Order (BTO). While the concept did not take off following its introduction in 1986, times have changed, and we must embrace the new demands of our population. Multi-generational flats can achieve several objectives, the first being keeping extended family members together and protecting the eroding family unit. We are a society that embraces filial piety, but the small sizes of HDB flats these days make it difficult for married couples and their children to live with their parents. With limited breathing space for everyone, increase in tension and differences becomes unavoidable. As a result, parents and their married children live apart, and may grow apart with time.
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With increasing numbers of husbands and wives working full time, the children will have to be placed in the care of someone else. In a multi-generational flat, there is the added advantage where grandparents can care for their grandchildren under the same roof without any hassle.
As we promote marriage and parenthood in Singapore, we must not neglect the needs of the singles. While every bit a contributing member to our country, many have found that the resale flats are currently beyond their reach, and I hope that our ever-compassionate Minister will lift his hand and allow singles to buy new BTO flats direct from HDB. In fact, living in HDB flats is uniquely Singapore. In the long term, we should work towards letting Singaporeans to buy an HDB flat at least once in their lifetime – that is, to remove the salary cap totally.
A report in November 2012 indicated that Design, Build and Sell Scheme (DBSS) flats are losing popularity, considering that BTO flats are comparable in quality. Suspending the DBSS scheme was a wise move, and I propose that the provision of Executive Condos (ECs) be reviewed, too, so that HDB may focus on providing affordable basic housing to Singaporeans. Is there a need to subsidise multi-million dollar ECs? My concern is that some Singaporeans may be over-indulging in real estate investments. This is evident from the recent incidences of ECs selling at record prices. The wealthy continue to buy up these condominiums because they know the value will appreciate even further later. If these people wish to dabble in the property market, they must not do so at the expense of other Singaporeans.
Next, I would like to re-appeal to the Minister to help those who are forced to rent from the open market because they are unable to pay the resale levy. I just saw a resident at my meet-the-people session last week. He has to pay a resale levy of $80,000. He has four children, his monthly income is $3,100, and do you know how much he has to pay for his unit that he rents from the open market? He pays $2,000 every month. That is, indeed, a very huge burden on him and his family. I have appealed many times to HDB for him to pay by instalments but it has been rejected, and I have seen several similar cases.
For new HDB precincts, neighbourhood infrastructures and amenities, such as transport, childcare centres and hawker centres, should be built in new estates before residents move in. The lack of facilities would be a nuisance to residents and may cause couples to postpone plans of having children as they
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would need to travel further to locate relevant facilities. One such example is my new BTO precinct in Jade Spring. There are 960 units but there were not childcare centres built. When the residents shifted in, I had to get the help of HDB, MCYS and PAP Community Foundation (PCF) to quickly build up a childcare centre. Now we realise that one childcare centre is insufficient, so I am working to build the second childcare centre. There will be three more BTOs completed in 2014, and I found out that the hawker centre, the road works – that means, the interchange linking the CTE, SLE and TPE – all these will only be completed in 2015, which is one year later. Certainly, we require better coordination between the Ministries.
Last but not least, bearing significant importance to quality housing is the Town Council which is vital – adequately managing a residential estate and addressing the needs of residents beyond providing a living space.
With inflation and increased costs of living, the work they do and the resources they require incur increased expenses each year, yet the grant given to Town Councils has seen no increase since the initiation of the Town Council concept. It is only fair that the Town Council grant is increased relative to rising costs, so that Town Councils may continue to plan substantial upgrading activities and programmes that add value to residential estates.
Last but not least, I would like to commend the Minister and his team for doing very good work for the last few years. The above are my humble suggestions and I certainly hope that our compassionate Minister will look into them. With that, Madam, I beg to move.
Dr Teo Ho Pin (Bukit Panjang): Madam, housing policies must meet the housing needs and aspirations of Singaporeans. With a fast ageing population and low birth rate, our housing policies must facilitate ageing in place of our elderly, and provide flexibility for family members to live near one another for mutual support.
Madam, at my Meet-the-People sessions, I frequently receive requests from residents for new and rental flats. Many of these residents face tremendous stress in housing their families due to the high open market rental. Children of these families are also badly affected as they face problems to find schools while their families are moving around or squatting with others. Many upgraders and downgraders also face difficulty to buy flats from HDB. Many cannot afford the Cash Over Valuation (COV) and open market HDB resale flats.
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Thus, I would urge the Ministry to consider providing more flexibility for families to live near one another through the following suggestions:
One, allow Balance of Sale flats to be sold daily so that those eligible for such flats can purchase the flats as soon as possible. The queue should be on a first-come-first-served basis. We should allow more time for the applicants to choose their flats based on the urgency of their needs. We should not penalise those who have yet to select their flats.
Two, more studio apartments for elderly should be built and integrated into new or infill HDB developments. This will provide more choices for families to live near each other.
Three, more rental flats should be built for low-income families for short-term or long-term stay.
Madam, I wish to ask the Minister the following questions. First, how effective are the existing housing policies in facilitating family and community bonding? Two, can HDB allow Balance of Sale flats to be sold daily?
Mr Gan Thiam Poh (Pasir Ris-Punggol): Mdm Chairperson, I would like the Government to re-consider my proposal last year about special housing grant for HDB applicants starting a family. I mentioned that we can start with $10,000 for each child which they can use to offset against the payment of their flat. We can introduce a HDB family housing grant for $10,000 for the birth of the first child, $20,000 for the second child, $30,000 for the third child, and so on. This will help encourage young couples to start a family early.
Young families also need the support of their immediate families, such as their parents and in-laws. We can do more for three generations of families staying together. The new multi-generation priority scheme allows parents and their married child to submit a joint application to purchase a studio apartment or a two-room flat together with another flat in the same project. I would like to ask the Minister for National Development about the take-up rate for this scheme.
I also suggest that the Government look at making bigger sized flats, that is, 4-room and 5-room flats, a priority for larger families.
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I read from The Straits Times that the Parenthood Priority Scheme (PPS) has seen a strong take-up rate, with applicants making up 30% of the flats on offer in the non-mature estates. The number of married-couple applicants with kids in the more popular mature estates was almost 80% of the flats supplied. I would like to ask the Minister whether he sees the take-up rate stabilising in mature estates and whether the proportion of PPS is likely to increase in the future. Would the Minister further streamline the priority scheme to grant higher priority for families of three or more for 3-room applicants, a family of four or more for 4-room —
The Chairman: Mr Gan, your time is up.
Mr Gan Thiam Poh: And a family of five or more for applicants to promote procreation and strengthen family bonding.
Mr Ang Wei Neng (Jurong): Madam, yesterday, Channel NewsAsia reported that more 5-room resale HDB flats were sold at above $900,000. Such news prompted critics to say that Singaporeans need to be a millionaire to buy a HDB flat. Hence, it is important for MND to move fast and amend its policy to ensure that the new HDB flats would be even more affordable to Singaporeans. If we could lower the housing cost for first-time HDB flat applicants, it would go a long way to lower the cost of living and, perhaps, encourage young people to start a family earlier.
Deputy Prime Minister Tharman, in his Budget Speech, has warned that our economy has to restructure and some companies may not survive. This means that some Singaporeans might lose their jobs and it might take them some time to look for a job in another industry, thus creating structural unemployment. Hence, Singaporeans would feel more secure if they could pay their first HDB flat within 20 years, instead of the 30 years yardstick HDB uses to calculate the affordability of an HDB flat. This will help to reduce the fear of losing the roof over one's head should Singaporeans lose their jobs due to structural unemployment.
Er Dr Lee Bee Wah also shared the same view earlier. In this respect, HDB could consider giving a higher housing grant, subject to means testing, so that young couples would be able to pay for their first HDB flat in 20 years' time. And with the additional grant, Singaporeans could also save a sufficient amount of interest cost. To prevent abuses, HDB could mandate all first-time flat owners
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to pay back the additional housing grant if they sell their flat within a minimum occupation period of 10 years, instead of the current five years. I hope MND could consider the above suggestions.
The Chairman: Mr Gerald Giam, please take your two cuts together.
Mr Gerald Giam Yean Song (Non-Constituency Member): Mdm Chair, the Minister said in February this year that the prices of new HDB flats have been \"delinked\" from resale flat prices by varying the quantum of discounts applied to the selling price. He said that HDB will continue with this pricing policy for as long as \"property remains hot\". What are the criteria he will use to determine if the housing market is cool enough, resulting in the prices of new and resale flats being \"linked\" once again? Would HDB consider permanently delinking the price of new and resale flats so that new flat buyers are not at the mercy of resale flat prices, which the Minister has said he is not able to control?
I understand from the Minister's earlier replies to this House that the factors used to determine the selling price of new flats include the typical household income of the families who buy them, the market price of similar resale flats in the vicinity and the attributes of the flats including their size and location. He said that HDB applies a discount to this price and gives housing grants to eligible buyers. Could the Minister share with us what is the exact pricing formula used to string all these factors together to determine the selling price for new flats? More specifically, what is the formula used to calculate the discount or \"market subsidy\"?
For future launches, could HDB publish the price of the new flat before and after the discount, so that home buyers will have a clearer picture of the market price of the new flats, and the discounts that they are receiving from HDB?
Now on to my next cut on the Parenthood Priority Scheme (PPS). In January 2013, HDB introduced the PPS to give priority allocation for new flats to \"first-timer\" married couples with children. Under this scheme, 30% of BTO (Built-to-Order) flats and 50% of SBF (Sale of Balance Flats) flats will be set aside for this group.
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I agree that Singaporean couples with children should get priority in flat allocation, because they not only have to house themselves, but also their children. However, the proportion of flats set aside for all first-timers remains unchanged at 85% for BTO flats in non-mature estates. This means that other first timers, including married couples who do not have children yet, will effectively have a lower proportion of the flats set aside for them.
If the goal of the PPS is to raise birth rates, then it might be necessary to also include married couples without children, because many of these couples may be waiting to get their own home before having kids.
The Minister has said that once the HDB clears the backlog of first-timer married couples with children, the HDB can then extend the PPS to married couples without children. Will this mean that all first-timer married couples — with or without children — will be allocated 30% of BTO flats and 50% of SBF flats, or will married couples without children have a separate allocation? More clarity on this will help prospective home buyers better plan their flat applications.
To get a sense of the size of the backlog, for the BTO launch in January 2013 during which PPS was first offered, what proportion of PPS applicants had unsuccessful applications for previous BTO launches? Can the Minister provide an estimate of when this backlog of married couples with children is expected to be cleared, and when married couples without children can start to benefit from PPS? And, lastly, will PPS be a permanent scheme or will it only be in place until the current backlog of flat applicants is cleared?
Mr Seah Kian Peng (Marine Parade): Madam, I have proposed various suggestions to improve our total fertility rate (TFR) over the years, many of which have been incorporated in this year's Marriage and Parenthood Package. Under the PPS, young married couples with children under 16 years old are now given priority to buy their first public housing flat and, to facilitate that, 30% of new flats will be set aside for them.
I would like to suggest, though, that this PPS be refined to also include young married couples who are expecting but do not belong to the above-mentioned group. There may be some implementation concerns in terms of verifying if the couple is, indeed, expecting, but I am sure it will be just a simple
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matter of producing some medical documentation as supporting evidence.
This move will certainly help further boost the TFR. For these couples, knowing that they are given priority and that they can get their flat when their child is born is a major boost in encouraging them to have children younger, if any at all. And having spoken to many such young couples, I know this is a consideration for many couples starting or growing their family.
[Deputy Speaker (Mr Charles Chong) in the Chair]
The Parliamentary Secretary to the Minister for Health and Minister for Transport (Assoc Prof Dr Muhammad Faishal Ibrahim): Sir, housing has always been an issue close to my heart. For many of us, the home represents a haven for comfort, peace, happiness and tranquillity. For some, the passage of home ownership represents milestones in their lives and their stake in Singapore. Whatever the intention of owning a home, the majority would agree that, as a society, we must try our best to ensure that every Singaporean has a home, be it rental or their own, to build their lives and their families, who will, ultimately, build our Singapore society.
We have seen how our housing landscape has changed over the years. We have witnessed how the quality of our public housing and its ancillary facilities has improved significantly over the last five decades. We have seen how the Government has tweaked the bundle of rights in public and private housing, such as the lease term, the relevant taxes, as well as the minimum occupation period, and so on in meeting the objectives of its policies. We have also seen the different types of flats being rolled out to meet the needs of Singaporeans from different backgrounds. These include the flats under the Design and Build Scheme; Design, Build and Sell Scheme; Executive Condominiums and Studio Apartments.
The selection of public housing has also evolved – from the much anticipated experience of selecting our flats beneath a big tentage to the current BTO approach. The much-debated issues of price, demand and supply have also been a point of interest and concern among Singaporeans over the years. On the other hand, the share of the private housing market has also shifted over the last few decades. We have seen more and more private housing, especially condominiums, being developed in close proximity to the heartlands, giving a vibrant mix to the housing landscape in Singapore. Housing issues have, indeed,
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become integral to the lives of Singaporeans.
In recent years, many Singaporeans have raised issues which they hope the Ministry should review as we move forward in the next phase of housing our nation. These include the issues of price-to-income ratio, loan period, the use of CPF, going back to basics of public housing, the role of the Government in public housing, and many more.
During my engagements with Singaporeans at their homes and coffee shops in Yishun, many of them are appreciative of the efforts of the Ministry in trying to stabilise the housing market. As the market is relatively imperfect, they are concerned as to where the market is going. In particular, they are concerned about how the housing market will affect their children and grandchildren, in essence, the future generations of Singapore.
Sir, as we move forward, if I may, I would like to touch upon the topic of housing for our future generations. The MND has transformed Singapore's housing landscape and created homes and communities that Singaporeans are proud of. Beyond building on past achievements, I believe that our housing market should be set to scale a greater height, while at the same time meeting the needs of Singaporeans. A home today is more than a cherished dream; it is the foundation on which future aspirations will be built upon. It is now a place for family development, retirement for some, and a future stake and investment in the country for others. Young people today adopt a geo-social viewpoint when selecting a property for their future. The surrounding space and activities do matter and will affect the way they view life in the country as a whole.
With the new normal environment in place, as well as the increasing diverse needs of our society, I would like to urge the Ministry to review its thinking processes behind its housing policies in building for our future generations. With Our Singapore Conversations in progress, I encourage the Ministry to use this platform, or create a similar platform, to talk and discuss deeply with Singaporeans, to better understand the aspirations and needs of our current and future generations.
Let us have a conversation about housing issues and take this opportunity to have a shared perspective in our journey to develop the housing market for our current and future generations. This will help us set a balanced expectation of Singaporeans and the Government in the development of the housing market for the future.
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Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Sir, I understand that the Resale Levy is introduced to reduce the subsidy on the second subsidised flat, with the function of exercising fairness in the granting of housing subsidies between the first- and second-timer citizen families and to grant priority to first-timers who have more urgent housing needs.
The Resale Levy constitutes a financial burden to owners with a monthly income of $1,500 and below. Often, during my Meet-the-People sessions, I come across many lower income families who have been advised by the HDB to sell off their flat due to outstanding arrears, or owners who have been ordered by the court to sell off their matrimonial flat due to a broken marriage.
Sir, under the circumstances depicted above, it is noteworthy to highlight that the owner has little or no choice as a result of evolving life circumstances to sell off their property. In the first place, these families already face considerable financial difficulties and the proceeds from the sale of the flat would provide some much needed financial breathing space. At the same time, the owner has been debarred from renting a flat directly from the HDB and, hence, has to resort to paying open market rental rates. Any sales proceeds received would then be depleted by exorbitant rental rates. Moreover, by the time the owner decides to obtain a new flat, he would not have the financial means to pay for his Resale Levy. This has the effect of limiting his housing options and his desire for a new start.
Hence, I would like to call upon the Minister to consider allowing the Resale Levy to be incorporated into the new housing mortgage, to be paid together with the monthly mortgage instalment, for lower income families.
Mr Edwin Tong Chun Fai (Moulmein-Kallang): Sir, MND and HDB have worked very hard to redress the mismatch between supply and demand in the housing sector. Some 110,000 units of new residential public housing will be completed in the coming years, with at least 23,000 of those units to be launched this year in 2013. The ramped-up supply, together with the recent cooling measures, has also combined to keep public housing costs affordable to Singaporeans.
In addition to generating more supply, the HDB has also put in place many new programmes and schemes which have been carefully calibrated to meet
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the needs of certain targeted and specific groups of people. There have been several schemes aimed specifically at promoting parenthood to ease the anxieties of parents who are concerned, to ensure that they and their children will have a roof over their heads. Two examples of the schemes are, first, the PPS which my colleagues have mentioned earlier, and, of course, the Parenthood Provisional Housing Scheme (PPHS) as well. These are just two examples of the several schemes available which have been very well received by Singaporeans.
I take this opportunity to commend the Ministry for the work that has been done in improving the overall supply of flats in Singapore. It is also obvious that the Minister and his team have been very careful, very deliberate and thoughtful in the way they have gone about designing the various schemes to provide targeted assistance and priority. In particular, the schemes which I have outlined above underpin the broader national agenda in promoting family and parenthood.
However, Mr Chairman, despite best efforts, not all marriages work out. Some marriages, unfortunately, come to an end. Sometimes, there could also be young children involved and, in such a situation, it is their interest which is paramount. In this context, I would like to ask the Minister to look into how we can better assist in giving a divorced parent with custody of the children priority in the reallocation of another flat. Let me just briefly describe the circumstances.
A matrimonial home is usually jointly held in the names of both the husband and the wife. When the couple undergoes a divorce, the usual court order, in relation to joint property, provides for the HDB flat to be sold on the open market and the proceeds distributed to the couple after the CPF funds are repaid. This is usually also ordered to be done within a prescribed timeframe. Once this sale is made and the proceeds are apportioned, very often, the wife – of course, I am generalising but not all situations – usually with custody of the children, will be left with some cash but with no flat. It is, of course, possible for the wife to buy out the husband's share, but this requires a substantial disposable income which the wife is unlikely to have available.
The sale could be deferred so that the wife and the children could continue to stay in the matrimonial home. But for how long? And this would effectively only be kicking the problem down the road and would probably also be detrimental for both parties in a falling market. Very often, the husband himself would also want the matrimonial home sold quickly so that he gets his share of the cash and moves on with his own life. So, it is likely that the wife will have to buy or rent, leave aside an open market purchase, which is possible but will
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require a stash of cash.
If she approaches the HDB, she will no longer be a first-time buyer and there will be restrictions and a debarment. And there will also be considerable time pressure on the wife because, once the sale is complete, she and her children will have no roof above their heads. It is not possible for her to join the queue for another BTO or SBF or wait for an allocation even after taking into account the debarment period. And even if you overcome that, the normal rental housing queues would be so long that by the time that allocation takes place, it is likely that the matrimonial home would have long been sold.
So, in that connection, I wish to ask if the Minister would be prepared to consider designing another scheme aimed at extending to this group of persons a priority allocation either for the purchase or rental of a flat, depending on the financial position of the wife. I end by asking the Minister to bear in mind that this is a very vulnerable group of persons, normally a single parent with one or maybe more young children. So, I hope that this can be favourably considered.
Mr Lim Biow Chuan (Mountbatten): Chairman, last year, I had appealed to MND to consider allowing singles to buy BTO flats directly from HDB. Minister had then replied that his priority was first-timers. The policy intent was to promote marriage and family support, and I understand that policy intent.
But many singles feel that they are being discriminated against simply because they are not married. Many of them desire to have their own home so that they can have some degree of independence from their family. Others may have disputes with their family members and so desire to live separately so that they can minimise their daily interaction with each other.
Sir, I know of many singles who have worked hard to contribute in their own way to Singapore's nation building. They cannot afford to buy a resale flat or a private property because prices are very high. They deserve some consideration for their role in making Singapore a success story. I understand that HDB has made great headway to build more flats last year. And there are plans to build even more flats this year. This will help to meet the demands for flats from married couples.
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I urge HDB to set aside some BTO flats for singles to buy for their own occupation. Let them, too, be able to fulfil their aspirations and be part of the Singapore story.
Mr Pritam Singh (Aljunied): Sir, the gist of this cut is to understand the HDB's plans for larger BTO flats going forward and, separately, the size of flats for Singaporeans in future. The latter issue continues to be discussed even more so in the aftermath of the discussion covering the Population White Paper and with the high cost of private housing in mind.
Parliament has also seen a similar range of queries dealing with Executive Condominiums (ECs) and HDB's Executive Maisonettes (EMs), amongst others, in this session of Parliament. In October 2012, the Minister stated in a Parliamentary reply that the HDB stopped building EMs in 1995 and that ECs have effectively replaced this segment of flats that seek to accommodate buyers who want to purchase other flats. While the old HDB EMs range from 138 to 243 sqm, ECs have unit sizes ranging from 69 to over 300 sqm, but this was reduced to 260 because of ECs that were priced closer to the $2 million mark.
The Minister also said not too long ago that ECs are better placed to meet the diverse needs of Singaporeans and there is no need to introduce executive flats even though the idea of ECs, as mooted in 1995, was a means to shorten the queue for HDB executive flats and to meet Singaporeans' demand for affordable private property.
In view of the high cost of executive flat size apartments in new EC launches, can the HDB consider a pilot scheme, in fact, building a small number of larger apartments in new BTO launches built in mature or non-mature estates? So, second- or even first-timers who want to purchase apartments larger than 5-room flats are not restricted from doing so by the price deferential that comes with ECs of the same size.
As most BTO flat applicants today are younger couples and smaller families, it may be argued that there is a risk of oversupply if larger flats are built again. But in light of modern construction techniques, it will be helpful if BTO flats could be designed in such a way that two adjoining flats can be easily converted, as it were, to form an executive apartment and for allowance for this to be made prior to construction. For example, the HDB can set aside a percentage of any new launches for such flats, let us say, 10%, and in the event that demand is not
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met, then the flats can be easily converted to 3-room flats without significant cost implications.
Sir, it is also quite common to hear of middle-aged Singaporeans talking about how small new 3-, 4- or 5-room HDB flats are. This is an old issue, but it still requires the Government to say not too long ago that the size of HDB flats has not shrunk since 1997. Nonetheless, the Government's commitment to plan for a 6.9 million population in future does bring this issue back to the fore. The Government has previously said that smaller flats do not have to mean a lower quality of living because the living space per person has actually increased over time due to smaller families. But after the passing of the White Paper, there is an irony in this position. In light of our urgent need to raise our TFR and encourage families to have more children and, separately, the Government's stated intention for a larger population, would there not be an argument for the Government to consider building flats which are of the size of those built prior to 1997 so as to plan for flat sizes that anticipate and even encourage a rise in TFR?
Finally, I would be much obliged if the Minister could give us an update on the Government's plan on the DBSS scheme, in light of the suspension of the DBSS land sales for the last six months.
Mr Liang Eng Hwa (Holland-Bukit Timah): Sir, the last three years have been a trying time for home buyers. High COVs, long waiting time for BTO flats, and the fear of being caught behind the curve as property price rises were real concerns and anxieties many Singaporeans live through.
Credit to the Minister for National Development, I think we are on our way to resolving the public housing imbalances in the next two to three years. More new BTO launches are coming and there are record numbers of completed flats in the next few years. The slew of demand management measures and the massive ramping up of housing supply have since begun to show some stabilising effects in the property market. I think we have probably seen the worst of the housing imbalances.
All that we are hoping for now is for a nice soft landing in the next few years. But with housing prices at this level, we cannot rule out the risk of a hard landing though, which could be triggered by, among other things, unexpected change of market sentiments, sharp rises in interest rates or the abrupt unwinding of
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liquidity easing.
Now that we have largely met the demand of first-time buyers, and soon able to satisfy the demand of second- and third-time buyers, I believe it is timely now to take stock of our housing programme, carefully study the lessons learnt from this cycle, and refresh the intent and purpose of our public housing policy.
HDB housing started in the 1960s as a low-cost model with the aim of accommodating Singaporeans in the shortest possible time.
Over the years, as the country progressed and became more affluent, the quality and aesthetics of public housing have improved to meet the changing lifestyles and rising aspirations of Singaporeans. HDB flats then became more expensive in tandem with the rising private property market. Flats today are still affordable but not as affordable as they used to be. HDB prices have risen sharply in the last 10 years but household incomes were unable to keep up with the same pace and magnitude.
Public housing should not be like any asset class where those with cash liquidity can take a view on property and hoping to profit thereafter. We have to keep HDB home prices within the comfortable reach of our low- and middle-income Singaporeans, regardless of the property cycles. While there is still room for the private property market and the resale market to discover their price levels, I agree with Minister Khaw that new flat prices should be delinked from the market and not be at the mercy of swings in the private property markets or the resale market.
HDB should also look into building a small reserve stock of flats; some new and some resale from the resale market; and release them to the market from time to time should the HDB resale market or the COV run ahead of its fundamentals. There will be obviously carrying cost for holding such a stock but, as HDB covers more than 80% of the housing market, it will be in a better position to manage such costs.
In the years ahead, let us bring more stability to home prices, especially in public housing, so that Singaporeans can have peace of mind that HDB homes will always be affordable to our citizens.
What it means is that prices of new HDB flats should be directly linked to incomes of the different median household groups to ensure affordability for
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each segment.
In addition, we should also re-look at this concept of affordability. Currently, HDB uses the Debt Service Ratio (DSR) as an indicator of housing affordability. The DSR refers to the proportion of the monthly household income set aside to pay for the housing instalments. It is based on a 30-year loan, and it includes interest payments. So, if the interest rate moves up and the tenure of the loan changes, it would affect the DSR if your income remains unchanged.
Currently, HDB flats are priced at DSR of about 25% or thereabout so that most buyers are able to pay for their monthly instalments using CPF, with no or minimal cash outlay. However, we need to study further whether the 30-year-tenure loan is too long for our life cycle. Also, are too much of our CPF savings being channelled to housing and too much of our savings are into property investments?
Some countries use the Home Price-Income Ratio (HPI) as an indicator to determine affordability. It essentially measures the number of times the property price purchased is priced over the median household income.
In a The Straits Times' article in February 2010, Professors Tu Yong and Yu Shi Ming noted that Singapore's HPI for resale flats in non-mature estates is 5.8, compared to Hong Kong's 19.8 and London's 7.1. That means Singaporeans generally need 5.8 times of their household income to buy a resale flat in non-mature estates, whereas a Hong Kong resident needs more than three times that amount. I want to ask the Minister: what is our HPI ratio now and what would be an optimal HPI ratio we hope to achieve going forward?
Sir, another factor is land cost. Due to the rising private property market, it has directly impacted the Chief Valuer's valuation of land cost for public housing. I would like to ask the Minister whether we should review this entire approach of public housing so that we can reduce the land cost so that the financing cost for individuals to buy HDB flats can be further reduced.
The Chairman: Ms Foo Mee Har, you have six minutes. You can take your two cuts consecutively.
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Ms Foo Mee Har (West Coast): Sir, Singapore has one of the highest home ownership rates in the world, with 90% of Singaporeans owning a HDB flat that they stay in. So, much of their assets are locked in their properties.
The Lease Buyback Scheme (LBS) was introduced in 2009 to help lower income elderly households in 3-room or smaller units unlock their housing equity to meet their retirement needs. This is to enable them to age comfortably in their own homes whilst the scheme provides them with a steady income for the rest of their lives.
However, to date, only 471 households have taken up the scheme. The scheme was further enhanced in February this year to allow more cash payouts. I hope the Minister could consider further improvements to make the scheme more accessible and attractive to a wider group of seniors, help them be self-reliant and live a fulfilling life in their retirement.
I would like to make the following suggestions for the Minister's consideration.
One, extending the scheme to 4-room and 5-room HDB owners, so that these flat owners also have the option to age gracefully in the homes that they are accustomed to, rather than to have to downgrade or move to a smaller flat if they feel the need to monetise their flat they currently live in.
Two, offering different tenures beyond the standard 30-year lease, ranging from 10- to 30-year lease tenures, to cater to seniors of different age groups.
Three, removing altogether the income criteria to make this scheme a universal option available to all HDB owners so that more are able to tap life savings locked up in the value of their homes.
Four, and most importantly, providing better financial counselling and outreach to help seniors understand the scheme and its benefits. Much more can be done to raise awareness of the merits of the Lease Buyback Scheme.
Mr Chairman, our HDB flats are more than a roof over our heads. It is our home, our sanctuary, a place where we bring up our children, a place where we
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look forward to return to at the end of a hard day's work, to rest and relax. Given that we live in close proximity to each other, having good neighbours makes a big difference to the quality of our life.
Furthermore, in Singapore, we have a unique Ethnic Integration Policy (EIP) implemented to promote racial integration and harmony. This is also to prevent the formation of racial enclaves by ensuring a balanced ethnic mix amongst the various ethnic communities living in public housing estates.
Notwithstanding the challenges faced by those selling their flats in the secondary market due to the ethnic quotas, most Singaporeans accept that the EIP is in place for a good reason. Many recall lessons learnt from racial tensions and conflicts arising from racially segregated neighbourhoods in other cities.
Yet, despite our strong efforts in EIP, we do not have the equivalent policy to guide the management of foreign workers who rent HDB flats in our estates. Whilst there are subletting rules limiting the number of sub-tenants allowed for each flat type, flat owners are free to rent out their flats after the minimum occupation period (MOP). Sir, we run the risk of allowing foreign worker enclaves of significant numbers and size to form in HDB estates.
Large groups of up to nine workers tend to share one flat. There have been complaints from residents about encountering poor habits, such as excessive noise, smoke and littering, amongst other issues. On weekends and public holidays, a large number of workers may congregate in one flat when foreign workers' friends visit each other and enjoy each other's company and some home-cooked food. Foreign workers also gather in our neighbourhood parks and void decks, where drinking often takes place. Lifestyle differences have caused social tensions between them and their Singaporean neighbours.
Sir, I would like to suggest to the Minister to review subletting rules for foreign workers in HDB estates. I would like to propose that we set a limit of not more than 10% of flats in any particular block be allocated for rental as housing for foreign workers. We must institute the same discipline as we have in EIP to prevent the formation of foreign workers enclaves in our HDB estates and also disamenity to local residents.
We should also think carefully about the housing options for these foreign workers on a longer term basis, especially if their numbers are to grow to fill jobs that are not attractive to Singaporeans. We are thankful for the job they do. These foreign workers are here on a temporary basis to do a job and will leave
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when their contracts are over. They come from very different backgrounds and cultures and they are not expected to integrate. We should question if they should be housed in our HDB flats in the first place. I urge the Minister to consider purpose-built apartments or dormitories to house these foreign workers, with dedicated facilities and amenities to serve their needs, including retail, sports and entertainment.
Not only will these preserve the communal space for Singaporeans, but they will also set aside places for foreign workers to enjoy the social and cultural environment tailored to them.
The Chairman: Ms Foo, your time is up. Mr Hri Kumar.
Mr Hri Kumar Nair (Bishan-Toa Payoh): Sir, the key to assessing the success of any policy is to distinguish the will from the deed. In other words, we do not look at what the intention behind the policy is, but what its effect is. Nowhere is that more relevant than in public housing.
As the salaries of Singaporeans, especially professionals, rise and as they marry later, a good number of couples will have combined salaries which will disqualify them from buying a new HDB flat. At the same time, they find private properties out of reach. So, ECs are intended to help this growing group. The problem is that ECs are also an attractive financial proposition. Minister Khaw recently described the scheme as offering residents a Lexus for the price of a Corolla. That is a good analogy. But because it is such a good deal, those who could otherwise have afforded to purchase private property are buying ECs as well, and some who may not be able to afford it are being helped by their parents and others.
The critical question, therefore, is whether ECs are only being sold to the class of people they are intended to benefit. The selling prices of ECs suggest that they are not. This is best illustrated by the recent sale of $2-million EC penthouses. And even for the more regular priced units, prices have risen in tandem with the private property market.
We cannot blame Singaporeans for taking advantage of a good deal. Neither can we blame developers for high prices. They bid competitively for the
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land; they take risks and, therefore, want to maximise their profits. Developers are not the least concerned that their units may not be affordable to couples who earn up to $12,000 a month because that is not their only pool of buyers. This also means that taxpayers' monies are effectively being used to subsidise the purchase of ECs for those who may not need a subsidy, and, no doubt, in some cases, to make a profit. Subsidies should be used to help Singaporeans buy homes, not make windfalls.
The Ministry has implemented measures to deal with some undesirable aspects, such as capping the size of EC units. However, that does not address the problem I have highlighted. I accept that it will be difficult for MND to investigate the financial backgrounds of purchasers to assess if they belong to the class of Singaporeans intended to be helped. But if we cannot ensure that the objectives of the EC policy can be met, perhaps we should reconsider having the policy in the first place.
The problem is also, I believe, this concept of hybrid housing – public in some respects, private in others. In the case of ECs, public evolving to private. But, again, I understand the intention behind these policies is to give Singaporeans more choices, better quality homes/housing if they can afford it. But, again, what is the result? In my division, there is a running battle between the residents and the private developer of The Peak, the DBSS development, over quality issues. One of the residents' complaints is that the HDB is not taking a more active role in resolving matters. But I can understand why HDB is not, because the contractual relationship is between the purchaser and the private developer, and HDB has limited powers to intervene. But as far as the purchasers are concerned, they bought the flats under HDB rules, under HDB restrictions, and, therefore, they deserve help from the HDB. So, the intention of DBSS was to provide Singaporeans with better quality flats but, again, what is the result? They pay a high price for their flats and they end up being angry, disillusioned and unhappy with their homes, and they end up blaming the very people who were trying to help them in the first place.
I, therefore, urge MND to focus on providing good quality public housing for the masses for the benefit of most Singaporeans. MND can offer a suite of choices with different amenities and sizes, but retain ownership of the process and the legal relationship with the purchaser.
Let us keep separate private and public housing, and not have one morphed into the other, so that everyone functions and benefits at the same levels, and
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those who aspire to something different should look to the private market.
In the same light, I ask that MND reconsider the ceiling level for the purchase of HDB flats. Let us raise it beyond $12,000 so that more Singaporeans can enjoy and purchase a flat and make their choice.
Miss Penny Low (Pasir Ris-Punggol): Sir, yesterday, in The Straits Times' Forum page, a Jolly Wee wrote titled, \"Best live within our means\". Wee described how some people have lifestyles that are beyond their earning powers, and make themselves miserable. I showed it to a friend and he said, \"This is logical, don't people already know?\"
Statistics show that more people are getting into debt at an earlier age, mostly consuming what they cannot afford. Needs and wants are less blurred, as materialism becomes a norm.
Financial literacy, planning and prudence need to be instilled, especially when buying big-ticket items. Most people shun it. When they cannot make ends meet, they say they have no money to plan. And when they have extra, they say they are doing okay, so there is no need to plan. Hence, could the Minister consider incorporating financial literacy as part of the existing financial counselling which is administered ahead of house purchase?
Today, the process itself considers the person's current finances, but not the impending expenses, like children's education, car purchases, and so on. I suggest that we use a life cycle and life goals approach, together with a financial health ratio check, and setting aside emergency funds, so that prudent decisions can be made to avoid fire sales and pitfalls in a downturn, or when one loses a job.
Corollary, can the Minister consider lifting the income ceiling for direct purchase of HDB flats? If people are frugal enough and genuinely want to live in HDB flats despite higher income ability, we should not penalise them. It will be a less stressed and happier life when one practises financial prudence and lives within one's means.
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Mr Yeo Guat Kwang (Ang Mo Kio) (In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, our public housing policy has helped more than 80% of Singaporeans to own their own homes. We have achieved the vision described by the ancient Chinese poet Du Fu in his verses, \"where millions of houses shall give all the poor a welcome shelter\".
Looking forward, I suggest that MND re-assess our public housing model and the basic principles behind our public housing policy. Our public housing policy has gone beyond the fundamental principle of providing basic housing for our people. In reality, Singapore has provided every household with not just accommodation, but a piece of asset, allowing Singaporeans to sink their roots here, and strengthened social cohesion.
Nowadays, HDB flats have become valuable assets for many Singaporeans. Many parents and elderly Singaporeans have seen the price and CPF monies they paid for the flat appreciate in value. We definitely do not have the kind of housing problems seen in the classic movie \"72 Tenants\". Our public housing policy has solved the housing problem of most Singaporeans. More importantly, it has allowed the fruits of our labour and our savings to appreciate in value.
Currently, many Singaporeans are concerned about whether this policy will mean that our next generation of newly-weds will have to invest more money to buy their first home. They are worried about undertaking a huge mortgage after marriage. Mr Chairman, as our population ages, and our economy moves into a developed phase, there will be less room for the value of HDB flats to appreciate, it is time we conduct a review.
In other places, for example, Hong Kong, public housing is very conventional and basic, purely to provide accommodation for the people. Their public housing is priced lower and not linked to market price, and occupants can only live in there during their living years, without ownership of the house. This is akin to a long-term lease. Hence, there is no resale market, and resale transactions are not allowed. When the occupants no longer need the flat, or when they have found another place to stay, they will have to return the unit to the Government.
I hope MND will consider allowing the co-existence of the two models, as they embark on the review to better cater to the housing needs and expectations
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of Singaporeans. In other words, to allow public housing on long-term leases, while providing Singaporeans with public housing that will appreciate in value. This will enable Singaporeans to choose the most suitable public housing for themselves, according to their personal needs and financial situation.
(In English): Mr Chairman, I also hope that MND will get the PRs to know that when they purchase a HDB flat in the open market, they must understand that it is purely for residence. They should not use their HDB flat as an additional source of income by renting it out to others.
Lastly, I urge MND to consider providing more Interim Rental Housing for all those newly-wed couples, as well as the elderly.
The Minister for National Development (Mr Khaw Boon Wan): Sir, as Members can see, my portfolio is not an easy one, but I do enjoy the many cuts inflicted on me and the many speeches. It is an important Ministry because millions of people's lives are affected – where they stay. If I can make a little contribution to make their lives better, I do not mind a few more cuts.
This is my second MND Committee of Supply (COS); I have been here almost two years now. I think we have achieved a few things. So, to the many cuts, I have some answers. But to many others, I do not have the answers yet, but I would share with Members how I think we can go forward on them.
Sir, we had an intense debate in Parliament just last month. Let me share my two takeaways. First, Singaporeans continue to be unhappy with the current infrastructure crunch, including the housing imbalance. We are addressing this aggressively. Second, Singaporeans care deeply about Singapore and its future. They want to help build a vibrant and inclusive Singapore for future generations to come. We will facilitate such participation. In the area of housing, I will involve fellow Singaporeans in working out some housing policies together. Let me elaborate on these two takeaways.
First, the current housing imbalance. It is temporary and, given sufficient time, can be solved. This, I am confident. As I have said, I have been in MND for almost two years. So, I thought I would use this occasion to report to Members on the progress in these two years.
First, we increased supply dramatically. An exceptionally large number of new homes are currently being built. We will begin to feel the impact this year when 30,000 units are completed and families get the keys to their new homes.
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The full impact will kick in from next year, when 50,000 units are completed, followed by 54,000 units in 2015 and 63,000 units in 2016.
For public housing specifically, the ramped-up programme has statistically cleared our backlog of married HDB first-timers. With 15,000 marriages each year, family formation is well within this building programme of 25,000 per year. But some of them have lost out during balloting to couples yet to marry under the Fiance/Fiancee Scheme, who outnumber them in BTO applications. We are correcting this through the PPS. In the recent exercise for non-mature estates, most of the 600 married HDB first-timers with children who applied will get the chance to select one.
Mr Seah Kian Peng proposed that we should extend PPS to pregnant mothers. I agree and we can do so from the May BTO launch. By the way, Mr Seah was the first who suggested giving housing priority to young couples with children – this was some three years ago. I would like to record his role as the \"father\" of the PPS. I am just the \"midwife\". After we have cleared this backlog, we will extend the scheme to cover those already married but without children yet. I hope to be able to do so next year.
Mr Gerald Giam asked whether, when we do this extension, the quota will be amended. Yes, certainly. Otherwise, we would not be able to clear the backlog of the targeted population. Just to share with Members, if we look at the profile of the BTO first-timer applicants, it is quite interesting. From memory, about 55% are not married yet. These come under the Fiance/Fiancee Scheme. That was what I meant when I said that they outnumber the married couples. Those with children form about 20%; and those married but not yet with children, the remaining 25%. We can easily adjust the quota in order to achieve the purpose of clearing the backlog. To me, this is the clear ranking priority which I think is fair. Those who are already married and with children, we will try to give them their flats as fast as we can. Those who are married but do not yet have children, give the flat to them and then they have to deliver the \"deal\", which is the baby, next year! And then, those who are not married yet, get them to get the keys to their flats quickly, get married and have babies.
We have complemented the PPS with the PPHS. This provides an additional housing option to first-timer married couples with children who need to rent while they await completion of their new HDB flats. And the \"father\" of this scheme is Minister Lim Hng Kiang. He proposed this to me a couple of years
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ago and I kept it in mind. So, now the \"baby\" is delivered.
The scheme has attracted 200-plus applicants. All the 200-plus families can soon move into these interim flats after they have been retrofitted. Mr Yeo Guat Kwang suggested that we extend the scheme to married HDB first-timers without children. As we still have a few hundred vacant units, I am able to say \"yes\" to Mr Yeo. In other words, all married HDB first-timers, with or without children, will be eligible for such interim rental flats, while they wait for their new flats to be completed. In the process, if demand were to exceed supply, we must still give priority to those with children.
Second, we stabilised BTO prices by de-linking them from the resale market. This is done by increasing subsidy and keeping BTO prices steady, even as resale prices go up. We are committed to continuing it until the market stabilises.
Mr Giam asked what I meant by stability. We will assess it by examining, for example, the Resale Price Index. He also asked about how we compute market discount. This is not difficult to calculate because the resale prices of most flat types are widely available. In fact, we publish them on the HDB website. But, of course, it is not so easy comparing two flat units because local characteristics have to be factored in. So, there is some subjective element – is it near to MRT; is it not; which level – is it level 15 or level 40, and so on. I think those are the adjustments that one needs to make.
In the last two years, 38,000 HDB first-timer families have benefited from this new pricing policy. The attractiveness of the new BTO prices has been noticed. Almost all HDB first-timers now buy their new flats instead of resale flats. This is quite a big change. In the past, it used to be more bought direct from resale market because they are immediately available. Now, almost all got it from us. This has diverted significant demand from the resale market and has helped to moderate the rise in resale prices.
But we know that this is not enough to tame the resale market because resale flat prices, like those of private properties, are determined by the market and they are heavily influenced by market sentiments. And this is where the media do play a role to guide the sentiments. Mr Ang Wei Neng mentioned a Channel NewsAsia report last night about some $900,000 resale flat units. Yeah, I was watching the news and I noted it, too. So, this morning, I flipped through The Straits Times to see how it reported on the same story. It correctly highlighted that resale transactions have plunged, which is the main story. Unfortunately, Channel NewsAsia chose to forget about the main part of the
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story but focused on this $900,000 unit, which, obviously, is an outlier, and is in a resale market, which is beyond my control.
So, I hope the media can help us here. I think we are in a collective exercise here. I think nobody wants the property market to continue to escalate and build up a possible bubble. Nobody will benefit. So all of us are in this boat together. We want to calm down the property market. The way The Straits Times reported on this story had a calming effect. The way Channel NewsAsia did so, unfortunately, had an alarming effect and should not be repeated.
Third, we acted to curb speculative demand in our property market. Sub-sales, as a proportion of all private housing sale transactions, have fallen to 7%. We have gone on to curb investment demand, especially with the recent cooling package. It is still early days, but we observe that some developers have lowered their prices. Most analysts expect the measures to impact both sale volumes and prices.
These cooling measures are necessary as we do not want Singaporeans to over-stretch and expose themselves to unforeseen changes in the property market. Yesterday, hon Member Ms Tan Su Shan gave a good speech when she talked about her worry of a double-whammy in the property market. She is worried that if there was this perfect storm or double-whammy, that is a global economic slowdown and interest rates go up, then what will happen to those who go in now, hoping to buy their second or third property as investments and hoping to make a killing? They may get killed in the process because we are vulnerable to external shocks, such as a global economic downturn or a rise in interest rates.
Interest rates now are extraordinarily low, both globally and in Singapore. They could return to the norm quickly. An increase of two to three percentage points, which is conceivable, could increase mortgage payments by up to 40%. If homeowners fall behind on their mortgage payments, they could lose their homes. This had happened to many Singaporeans not too long ago. We will do all we can to prevent a property bubble because no one benefits and many will be hurt when a property bubble bursts. We continue to watch over the property market and will harden the cooling measures, if necessary.
Lastly, we increased access to public housing. We raised the BTO and EC income ceilings in 2011. Eight in 10 households now have access to new, affordable flats directly from HDB. As we reduced the first-timer backlog, we tripled the second-timer quota for BTO flats in non-mature estates last year. We
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share Er Dr Lee Bee Wah and Mr Hri Kumar's concerns on ECs, and, in January, we tightened the EC Housing Scheme to nudge it back to its original policy intent. I am ever ready to tighten the scheme further if necessary.
So, this is, briefly, the progress in two years. I think the immediate phase of fire-fighting for first-timers is over, but there are still some hotspots to tackle. The temperature has come down a few notches, but it is still uncomfortable, I know. The progress has, however, gained us some breathing space to take a pause and review the priorities for the next two years. In addition, I am taking the opportunity of this COS to begin the process of a public discussion on our longer term housing policies.
Let me first discuss the housing work plan for this financial year, my third year in MND. This year, we will maintain the ramped-up construction programme and launch another 25,000 BTO flats. A couple of months ago, HDB announced that they were planning about 23,000 BTO flats. I decided to tell them to up the figure to 25,000 because I wanted to decisively clear the backlog of all married HDB first-timers this year. This will allow us to begin to meet the housing needs of other segments of the population, besides the first-timers.
First, singles. While families will continue to be our top priority, singles have housing needs, too. We know this. Currently, singles aged 35 and above can buy resale flats. And each year, about 4,000 do. However, rising resale prices have made it more difficult for them. Er Dr Lee Bee Wah and Mr Lim Biow Chuan spoke about their difficulties and asked that we allow singles to buy new BTO flats direct from HDB.
We will do so. We will allow first-timer singles aged 35 and above to buy new 2-room flats directly from HDB to meet their housing needs. These will be singles earning up to $5,000 per month as they face more financial difficulty owning a home. These new flats will be built in non-mature estates. In order to keep the prices down, it will come in two sizes – 35 sqm and 45 sqm – and we leave it to them to choose according to their needs and budget. A couple of other important details are still being finalised. For example, how much should we subsidise the flats, as compared to married couples? What should the relative priority be between singles and married couples applying for these flats? We will settle these outstanding issues as quickly as we can, so that the first batch of eligible singles can apply in the July BTO launch, most likely in Sengkang.
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Second, second-timers. This is a diverse group and most of them already have a home, but they are looking for a change, either upwards, downwards or laterally. Their needs vary and, typically, they buy from the resale market as they should. But many have sought to get it directly from HDB. In the last two years, because of our attractive BTO prices, second-timer applicants have doubled to 30,000 in 2012.
To help more second-timers, we tripled the second-timer quota in non-mature estates from 5% to 15% in March last year. This has reduced second-timer application rates in non-mature estates significantly, to about 10.
Some have difficulties paying the Resale Levy, as commented by Er Dr Lee Bee Wah and Mr Muhamad Faisal. We try to help, for example, by including the Resale Levy in the price for the flat, so that it can be paid for as part of the housing loan. This has to be on a case-by-case basis. So, do appeal if you feel that there are genuine cases of difficulties and we will, as always, try to be as compassionate as we can.
This year, we will take further steps to help two vulnerable groups of second-timers. We will double the second-timer quota for 2-room and 3-room flats in non-mature estates from 15% to 30%. This will help second-timers needing to downgrade. I have given priority to those who are looking at smaller units obviously with a view to downgrade, presumably with financial difficulties. This will help them downgrade and address some of their financial difficulties. In addition, in line with Mr Edwin Tong's feedback, we will reserve 5% of this 30% quota for divorcees or the widowed who have children below 16. This will almost guarantee their ability to select a 2-room flat, and significantly increase the chances of those who apply for a 3-room flat. These changes will be implemented from the May BTO launch.
We will further help those divorcees who face debarment from subsidised flats, by shortening the debarment period from five years to three years. I think this will help them move on with their lives, especially those with children. As a further measure of assistance, Dr Teo Ho Pin suggested selling balance flats, on a daily basis, as and when they become available. This one I have some problem with because we have been actively clearing our stock of \"balance flats\" through the various SBF exercises. Currently, there is only a small outstanding stock of about 5,000 flats at various stages of construction.
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We will put those nearing completion – and there are about 3,000 such units – to market soon. There are significant benefits in bunching them for sale under SBF. Small batches inevitably attract disproportionately large numbers of applicants, resulting in repeated disappointment and intense frustration. I hope Dr Teo can accept this explanation. His suggestion of giving them on a first-come-first-served basis does not quite work. If you put them on a first-come-first-served basis, it may not reflect the correct order of needs priority. Moreover, if it is based on first-come-first-served basis, when it comes to your turn to choose a flat and if it is a unit that you do not like, you will reject the selection and go back to the back of a very long queue. There will be more unhappiness, I think, if done this way.
Third, seniors and retirees. I agree with Ms Foo Mee Har that many of our seniors have significant assets in their houses. This opens up opportunities for them to get some retirement income, for example, by subletting their flats or rooms. This year, we have increased their options by implementing the new Silver Housing Bonus (SHB) scheme to facilitate right-sizing, and the Enhanced Lease Buyback Scheme (LBS) to support ageing-in-place. But many may still not be aware of the schemes or they may not have accurate information. We will step up public outreach and financial counselling to those who may benefit from these options.
To support right-sizing, we are building more studio apartments for seniors and in various towns. I know many are prepared to right-size, provided they do not have to leave their neighbourhood. So, we are introducing a new scheme, the Studio Apartment Priority Scheme (SAPS), and we will reserve half of the supply for seniors who apply for one either near their current flat, that is within the same community, or near where their children live. This is a further enhancement to the current Ageing-in-Place Priority Scheme or the Married Child Priority Scheme which award priority through giving the seniors more ballot chances. The new Studio Apartment Priority Scheme will replace these two priority schemes. This will be implemented from the May BTO exercise.
I agree with Dr Teo Ho Pin and Mr Gan Thiam Poh that many multi-generational families prefer to live together or close to one another. That is why, last year, we introduced the Multi-Generation Priority Scheme to allow them to apply in the same BTO project so that they can live close by. More than 60 pairs of families have benefited from it, not that many. But for the 60 families, they were most happy.
Er Dr Lee Bee Wah suggested that we go further and build some multi-generational flats, say, with four bedrooms, to help such families live in the
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same flat. I heard her – she has advanced very strong arguments on how such families could better support, especially the newlyweds, both financially as well as transmitting important cultural values. I agree with her. I believe there is some demand because some of my residents come to me, too, for such multi-generational flats. But I really do not know how big the demand is. Anyway, I have asked HDB to consider doing so in some BTO developments to test out their demand. If we can, we will try to do one in Yishun.
On a separate point, Ms Foo Mee Har spoke about the growth of foreigner enclaves in some HDB blocks. I agree with her that we should avoid such enclaves. Ms Foo suggested that we cap the number at, say, 10% of each block. Let us do some analysis to see if 10% is the appropriate cap. I find that figure a little low; I think it is on the low side. In any case, let us do the analysis, and, in principle, I agree that we should impose one. While we sort out the implementation details, HDB will immediately cap approvals for all new and renewal of HDB tenancy agreements involving non-citizens to one-and-a-half years. Right now, it is three years. We shall halve it immediately. These changes will not apply to Malaysian tenants as they face less integration challenges.
Sir, for the rest of this speech, let me elaborate on my second takeaway of involving Singaporeans more in designing housing policies. After 50 years of public housing, it is good to re-examine some old assumptions and re-visit some key policies. I intend to do so, jointly with Singaporeans. For certain, the next 50 years will be different from the last 50.
First, home ownership has already crossed 90%. We have probably reached the limit of what is possible. Second, the days of high economic growth of 7%, 8%, 9% and, hence, strong wage growth are over. As property prices are closely correlated with economic growth, low growth means the huge capital gains that our parents and our generation made through reselling HDB flats will now become less likely. Third, Singapore's population was young and rapidly growing in the past, but future growth will severely moderate. Increasing singlehood and declining birth rates may persist though we will continue to persevere to reverse those trends. This has implications on family formation and household size. Fourth, the biological ageing of our population and the physical ageing of HDB towns will become the dominant themes that shape and colour our community life. HDB estate layout and designs will need to keep pace with such major social developments.
In short, our public housing system needs to evolve with the times. Which elements in our current system remain relevant; which require enhancement or strengthening; and which need to be overhauled? If some major changes are
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called for, how do we implement them without adversely affecting the vast majority of Singaporeans who own those valuable assets and are quite comfortable with the status quo, especially the elderly, which was Ms Foo Mee Har's point about how to further monetise their asset? They will be most worried if their assets suddenly shrink because we bring about some policy to bring the prices down.
These are complex issues affecting millions of Singaporeans. While change is necessary to address these challenges, it is important that, in doing so, we do not forget the needs of the silent majority. We should give voice to those in our society who are less well resourced to make their interests, needs and concerns heard. Policies must benefit the larger good. As we make changes, we must be mindful not to throw the baby out with the bath water. We must implement these changes judiciously and with heart.
Er Dr Lee Bee Wah, Assoc Prof Dr Muhammad Faishal Ibrahim, Mr Liang Eng Hwa, Mr Pritam Singh, Mr Hri Kumar and Mr Yeo Guat Kwang have made thoughtful comments on this very important subject of housing policies going forward. I listened carefully and thank them all.
From their speeches and other comments aired during Our Singapore Conversations, I distilled four issues worthy of deeper reflection. First, at the ideological level, what should be the purpose for building HDB flats? Second, at the practical level, what kind of housing should the Government provide to meet future needs? Third, at the individual level, how do we address affordability concerns of HDB flat buyers, living in a global city with a high-end private property segment imposing upward pressure on mass market private home and HDB resale prices? Fourth, at the macroeconomic level, how should public housing respond to upcoming demographic changes and, specifically, how can we help elderly Singaporeans better monetise their housing assets? Let me elaborate.
First, what should be the purpose of building HDB flats? The HDB flat is first and foremost a home, where couples start their lives together, and build their hopes and dreams. This is fundamental. But it is also an asset, which they can use to build a better life in their prime and provide security for their retirement needs.
In the early years of Singapore's Independence, homelessness and squatter living were the norm. At that time, we were all HDB first-timers. Having basic, no-frills, low-cost homes was top priority. As Singapore progressed from Third
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World to the First, the quality of HDB flats has improved dramatically and we have now become a nation of proud homeowners. The majority are HDB second-timers. HDB flats have become significant assets to most Singaporeans. A home is now also an asset. This is a proud achievement which citizens in many other countries could only hope or dream about.
We enabled this transformation through several important housing policy changes over the decades. I thought it useful to recount the key milestones. In 1971, we allowed HDB flats to be resold for a profit. Before that, flats could only be sold back to HDB at very low, pre-determined prices. In 1989, we allowed flat owners to retain their HDB flats even when they buy a private property. Before that, they would have to sell off their HDB flats. In 1993, we allowed buyers to take loans based on the prevailing market value of the flat, which allowed sellers to maximise the value of their assets. Before that, housing loans were based on HDB's historical selling prices. In 2003, we allowed flat owners to sublet their flats. Before that, the underlying principle was strict owner-occupation.
These policy changes have benefited many Singaporeans. Many were able to upgrade their homes and dramatically improve their quality of life. It has also allowed many to accumulate large nest eggs to fund their retirement needs.
Looking ahead, as we may no longer get the same kind of returns from reselling a HDB flat as in the past, how will its role as an asset be affected? If it is likely to diminish, how should we make the adjustments? How will any such adjustments impact different groups of Singaporeans with different aspirations and needs?
Second, what kind of housing should the Government provide to support future needs and at what size? I heard Mr Pritam Singh talking about this particular aspect just now. I do not have an immediate answer. I think we have to search for the answer together. Over the years, we have widened the range of choices, in terms of flat types and designs to meet a wide range of aspirations. Many are clamouring for HDB to return to basics and its original mission of helping Singaporeans own a basic home. But what does \"returning to basics\" mean?
Does returning to basics mean that we should focus only on HDB flats? Then where should we set the income ceiling for HDB flats? Should we lower it, raise it or lift it altogether? What about the upper middle class? Should we, for example, stop offering ECs, as suggested by Mr Hri Kumar and Er Dr Lee Bee
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Wah?
Does returning to basics mean that we return to pre-2003 days of strict owner-occupation? How will this affect the many retirees who rely on the income from subletting or the younger homeowners who use it to help support their lifestyle?
Does returning to basics mean that we return to pre-1989 days when we required HDB flat owners to sell off their flats when they buy a private residential property, as suggested by Mr Hri Kumar? How will this affect the plans of many Singaporeans who aspire to live in a private condominium and use their HDB flat for additional rental income?
Third, how do we ensure the affordability of new HDB flats for a new generation of newlyweds? Global liquidity and low interest rates since the Global Financial Crisis of 2009 have caused house prices to appreciate sharply, more than income growth. Affordability has worsened. Whilst high prices make homeowners happy, it has caused anxiety amongst young buyers as well as their parents. Some can look to their parents for help, but this may be at the expense of their parents' retirement savings.
We will do more to reduce BTO flat prices relative to incomes, and reduce the financial burden of housing on our young. One way is to increase housing grants for families with children to partly improve affordability and reward parenthood, as suggested by Mr Gan Thiam Poh. Mr Ang Wei Neng suggested the same thing, but not looking at it from the parenthood incentivisation point of view. But there may be other ways. However, even as we make new HDB flats cheaper, we must continue to encourage prudence and avoid over-spending on housing, which is a point very well emphasised by Miss Penny Low. So, I agree with her and Mr Yeo Guat Kwang that more must be done to help Singaporeans buy within their means. Higher housing grants must, however, not lead to more people buying larger flat types than they can afford. I hope this is a principle that we can have consensus upon.
In the earlier days, a 3-room flat was acceptable to many. Now, I think it is a 4-room flat; some a five-room flat; and some maybe an EC. What can a young graduate couple in the workforce for two years reasonably aspire to? What about a lower income household? Are these aspirations within their means? Will they get into trouble if individual circumstances change suddenly or when
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the economy heads south? As a Government, how can we help meet newlyweds' aspirations, while also ensuring that they make prudent and sustainable purchases?
Fourth, how should public housing respond to the ageing of our population? When our population was young and incomes were rising across the board, public housing was an effective way of sharing the fruits of economic growth. But as our population ages and economic growth moderates, I agree with Ms Foo we have to be much more proactive and creative in working out options to help our seniors unlock their assets in the HDB flats. We have tinkered with the Lease Buyback Scheme, and introduced some right-sizing incentives. What else can we do?
Sir, our public housing policies have been highly successful in enabling the vast majority of Singaporeans to own their homes. The opportunity to own homes has not been confined to those in the higher or middle income groups. Low-income Singaporeans, too, have benefited. This is quite unique in the world and our achievement has been the envy and the subject of many studies by many countries. I know, because I receive these visitors almost every other week.
A relook is, however, necessary in the light of significant demographic and economic changes. The primary mission of HDB to offer an affordable flat for the majority of Singaporeans will remain unchanged. Fortunately, this is within our control, as we set BTO prices and HDB is the largest housing developer. We have stopped BTO prices from rising by delinking them from resale prices. We can now pause and see what else we can do to bring BTO prices in non-mature estates to, say, around four years of salary as it was before the current property cycle started. We will do so partly through cooling measures to nudge the property market down, and partly by seeing if an alternative housing option can be designed. One thing is clear: we are committed to restoring and maintaining the affordability of new HDB flats to the vast majority of first-timer Singaporean households. Their Singapore Dream of owning their own homes, just like their parents, is safe. We will make sure of that. At the same time, with the ageing population and the bulk of the seniors' savings tied up in their HDB flats, we have to press on with more options for the seniors to unlock their assets.
I have earlier posed quite a number of questions which we need to find answers to. They are not trivial questions, and forging consensus on what the answers should be will be challenging. But they are useful food for thought, I thought. Post-COS, I agree with Assoc Prof Dr Muhammad Faishal Ibrahim that we should organise several Our Singapore Conversation discussions to explore
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some of these issues with fellow Singaporeans. I hope some Members can join in such sessions. As public housing impacts the lives and well-being of many Singaporeans, we will need to deliberate over these issues carefully. I invite concerned Singaporeans of all ages to mull over these issues with us. Share with us your worries, fears, hopes and dreams. We hope to hear many views and ideas so as to better inform our housing policies. Let us work on the challenges together, and let us help shape our future housing policies together.
Mr Png Eng Huat (Hougang): Sir, while having lift access on every floor is a given for new HDB flats, many residents living in flats built before 1990 have to live without the convenience due to what HDB claimed was \"to meet demand for privacy\". While HDB did not reveal how it arrived at that conclusion, that decision impacted many residents, especially the elderly and the disabled.
The Lift Upgrading Progamme (LUP) was subsequently rolled out to address the lift access issue. The LUP provides direct lift access to those pre-1990 flats but it comes with a heavy price that Town Councils and residents will have to bear going forward.
The LUP, while providing convenience to residents, has created a whole new set of issues to contend with. Some flats had to open up another doorway in the living room in order to access the new LUP lifts. Other oddities of LUP include lift landings with no escape stairwells and emergency buttons on the inside and outside of the lifts. The emergency button outside the lift is required because residents can get trapped outside the lift lobby as there is no escape stairwell provided in the LUP design for some of these flats.
Maintaining lift lobbies for some LUP flats has also become a challenge. Without a stairwell and water point, washing the lift landings is now a tedious and time-consuming process. To add to the maintenance cost, some flats ended up with 10 to 14 lifts per block, up from three to four lifts before LUP.
However, the LUP anomalies I have mentioned are not found across the board. Some better designed flats implemented direct lift access without increasing the number of lifts. Thus, HDB must acknowledge that the designs of some older flats are complicated to begin with and that implementing LUP for those types of flats will lead to rising maintenance cost. Residents and Town Councils are already made to co-pay for these new lifts, so they should not be made to bear additional increases in lift maintenance costs due to a strange
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design decision taken by HDB in the past.
Preliminary estimates for some LUP blocks in Hougang alone have already seen a doubling of the routine maintenance cost for the newly added lifts. I am sure other Town Councils will also experience a phenomenal rise in maintenance cost for those LUP blocks that ended up with more lifts than before.
I, therefore, call upon HDB to review and raise its grant for 3-room, 4-room and even 5-room LUP flats to take into consideration the additional cost required to maintain those flats with additional LUP lifts.
Mr Zaqy Mohamad (Chua Chu Kang): Mr Chairman, in a recent reply to the Member, Mr Zainudin Nordin's PQ on the LUP, MND replied that 200 blocks across Singapore will not qualify for LUP by 2014, and it is looking into the matter. I have 30 of such blocks in my constituency, with segmented design which accounts for 15% of the national total.
I did a simple computation − that it may cost HDB about $60 million or more in subsidies to complete the remainder at the national level, assuming we double the benefiting unit criteria, keep the resident share the same and hope that this can address 80% of the remaining units. But the issue should not be just about costs; it is about the philosophy that this Government cares and is preparing for an ageing population.
My residents define their home not just by the space they live in, but the community and friends around them. These cannot be easily replaced, especially when many have lived there for 20 years. We cannot expect residents of the 422 homes to simply move on and find alternatives as they age and need a lift to serve their units. A significant number are increasingly going past middle age; some have parents living with them who are aged.
Let me share this email from a young gentleman who recently wrote to me:
[(proc text) \"I met my neighbour (Uncle Peter) ... with his elderly father who is on a wheelchair. We have to either take the lift to level eight or 10, and walk up or down the stairs to level nine respectively. … Uncle Peter has to carry his father from level 10 to his home at level nine … twice every day, to daycare and back from daycare. This can be very taxing on Uncle Peter as he is also not young. Both of them can fall together if Uncle Peter misses a step. I am living with my mother who is getting old too. As a concerned son, I am too
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worried for her safety in the future.\" (proc text)]
I hope his story and that of many others will also change the lens through which we look at this issue and address barrier-free access in our HDB heartlands.
Ms Sylvia Lim (Aljunied): Sir, at the outset, I wish to clarify that my cut today will not touch on matters currently being studied by MND, under the review ordered by the Prime Minister. As the review is still in progress, and I am assisting in the review, those matters will be deferred to after the review. For today, I wish to focus attention elsewhere, on something foundational to the Town Council's functions – the concept of \"common property\" under the Town Councils Act (TCA).
Town Councils exist to control, manage and improve the common property of HDB estates. I will argue that the definition of common property under the TCA is inadequate, and should be reviewed, for example, to bring it in line with the definition of common property under the Building Maintenance and Strata Management Act (BMSMA).
For a Town Council, the definition of what constitutes \"common property\" is of paramount importance, as it has legal responsibility for it and must bear the cost of maintaining it. Under the TCA, the definition of common property is \"any property which is not comprised in the flat, subject to certain named inclusions and exclusions\". I believe this definition of \"common property\" is too simplistic and has given rise to many practical problems. There are items which may be outside a flat but be used by the occupants of just one flat alone, rather than be for \"common\" use, for example, bamboo pole holders and air-con ledges and panels. HDB, in fact, had to issue a circular in March 2007 to Town Councils with Standard Operating Procedures on who is responsible for what. So, for bamboo pole holders, the flat lessee is responsible for routine maintenance, but cost of replacement is to be shared between the lessee and the Town Councils. As for air-con ledges and panels, Town Councils are responsible where an air-conditioner has not been installed but where it has been, the responsibility for repairs and replacement rests with the flat lessee. HDB has made a gallant and intriguing attempt to guide Town Councils and flat lessees through what is caused by an inadequate definition of \"common property\" under the TCA.
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In comparison, the definition of \"common property\" under the BMSMA is much more practical and clear. In addition to being \"not comprised in any lot\", property is only deemed \"common\" if it is \"used or capable of being used or enjoyed by occupiers of two or more lots\", that is, units. If this definition was adopted for HDB estates, the bamboo pole holders and air-con panels and ledges would not be common property but would be properly the responsibility of HDB and the lessee. Such a definition would enable Town Councils to focus on property for common use and give rise to a more equitable allocation of expenses. I hope the Government will review the definition of common property under the TCA, for better management of HDB estates.
Mr Pritam Singh: Mr Chairman, last year, MND announced its plans to build lifts for all HDB multi-storey carparks, with the project expected to be completed by 2017. The Minister also stated that priority will be accorded to multi-storey carparks with high parking demand and that HDB will dovetail the lift installations with upcoming improvement works in the precinct, so as to minimise inconvenience for residents. Some of the blocks in my ward, specifically those at Jalan Damai between Block 650 and Block 672, are less than 20 years old. As it stands, they are not likely to be eligible for major upgrading, as there are other older blocks in the town that are in more urgent need of upgrading.
As the precinct I mentioned is only by multi-storey car parks and not open car parks like in older HDB estates, it is inevitable that the parking demand is very high – a point that is repeatedly made to me by residents during house visits. Can I ask the Minister if HDB has a plan or a schedule when the multi-storey car parks in such precincts throughout Singapore will get their lifts?
Mr Low Thia Khiang (Aljunied): Sir, I understand that HDB has launched the Greenprint initiative last year and that works under the scope will be carried out in 2013 and 2014 under the pilot project at Jurong East. I would like to request MND to consider rolling out the following initiatives as soon as possible to all eligible HDB towns in view of the national push towards productivity and escalating costs of town maintenance.
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I think many precincts could benefit from the following Greenprint initiatives:
(a) Pneumatic refuse collection system. The old design of individual bin-chute system in older HDB estates with daily manual collection is a low-productivity design and is not cost-effective. Residents also often have to live with foul smell during the collection. A modified centralised refuse collection system would increase productivity in town maintenance and reduce the cost of manpower in conservancy work.
(b) Energy and water-saving solutions for common areas. Water and electricity cost is one of the big expenditure items in Town Council management. The initiative on water-saving devices and exploring new sources of energy for common areas can not only achieve the green effect, but also save cost.
I would like to ask MND for its future plans for the Greenprint initiative. Will there be more pilot projects to be conducted and, if so, what are the criteria for the selection of precincts for such pilot projects as it could save the Town Councils some costs? What is the timeframe to roll out the initiative?
Mrs Lina Chiam (Non-Constituency Member): Sir, the void decks of our HDB flats are a uniquely Singapore space. Minister Dr Yaacob Ibrahim put it eloquently when he once said, \"The void deck carries fond memories for many of us where the residents can gather to meet friends or where our children can run around, rain or shine.\"
Recently, our void decks have come under threat of being encroached by childcare, wellness activities, elderly centres, shops, eateries, and so on. I am sure residents appreciate the importance of these centres to the community. The question is: why are they encroaching into void decks which are used primarily for residents' interactions and bonding? Residents feel that there is now very little of what counts as community spaces. It is hard for them to get a slot to hold a wedding or a funeral wake at their own void decks.
The issue is not just void decks in Potong Pasir or other estates. Allow me to also cite the incidents surrounding the decision to build the nursing home in Bishan Street 13. Some residents hold a not-in-my-backyard mentality which I do not condone. But the site for the nursing home was an important community space that residents valued. It was a soccer field for children to play. There was
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no replacement for this. We understand the need for a nursing home, but why must it be here?
The Chairman: Miss Penny Low, six minutes, two cuts.
Miss Penny Low: Community design and land use plan impacts the way people commute, communicate and live. It impacts a person's physical and mental health, shapes a person's perspective, cultivate habits and behaviours that become social norms. In short, the environment has a profound but understated impact on the well-being of society. Today, 85% of our households live in HDB heartlands. Hence, if a heartland design goes beyond lodging function and aesthetics, and incorporates elements of what we aspire of the Singapore society, then HDB's role in nation-building becomes even more critical.
So, what do Singaporeans want? I think we want a caring home where neighbours are considerate and look out for each other. We want a compassionate home where the young, old and disabled feel dignified and can move around with ease. We want a green home with affordable lifestyle choices and lower costs of living. We want a home where we feel safe and warm. In short, we want a home we can call home. So, how do we achieve this?
From the onset of planning, we need to go beyond the pure aesthetics and apply design thinking with the ends in mind. At the heart of heartlands, it is people that counts. Our social fabric has always been the backbone of our peace and stability, which is why heartland designs, being the skeletal platform upon which people interact, can help promote communal living and social capital. The reverse is also true, and we have seen examples of this. Recently, in a new precinct, the designers incorporated a skate park in the middle of blocks. The result, noise pollution and litter got on the nerves of surrounding residents. This could have been avoided via design thinking.
Building flats too near a community club, for example, is also a potential source of conflict. Similarly, the lack of consideration of daily chores like marketing, traffic and commuter needs, width of sidewalks, crowding, and so on, can create tensions. As such, I would like to suggest that the Minister consider the following.
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(a) Design people-centred spaces to increase physical activity level so that residents are encouraged to live healthily and reduce obesity, but do so with the concerns of surrounding residents in mind.
(b) Design clever town layouts to minimise the demand for motorised transport so as to reduce road casualties, energy use, pollution and cost.
(c) Design towns to be truly people-centred and inclusive. Barrier-free access and sidewalks should be generous and easily accessible. This is critical for the integration of the elderly, families with baby prams or marketing trolleys, and the physically challenged. Broad sidewalks have interesting impact on people. Broad ones encourage people to smile and stroll at a leisurely pace, but narrow ones can cause people to become uptight and defensive about their limited space. If you do not believe it, try walking on a broad sidewalk and a narrow sidewalk and you will see the different responses from the onward human traffic.
(d) Central to successful high-rise and high-density living is the ability to integrate communities better, increase residents' connectedness and create more spaces for people to interact and build bonds. The community garden is a case in point where strangers meet to pursue a common interest, with facilitation of a small piece of land.
I spoke about the sharing economy and collaborative consumption in my Budget speech, so why not allocate space for co-creation of ideas and sharing of goods and services? Some ideas can include a common tools sharing room or hub, where neighbours can share their little-used items, like power tools, bicycles, magazines and old textbooks.
Why not facilitate a real space or a cyberspace, or an app where localised nanny networks, tutors, plumbers, car pools, travel kakis and freelance workers can offer their time and talent for local services? What about designating a pop-up shops area where residents can peddle their wares while getting to know each other? Or create community kitchens in community clubs so that residents can savour good, cheap food from different cultures, integrate and bond through food? What about designating a collaborative innovation corner where residents can gather and offer tips for free or for a token fee? It will add to the resources of a community, bring jobs closer to home while answering your neighbour's needs. In fact, it can also spur social entrepreneurial activities where companies like T-Story and other social enterprises where they get low-income and stay-at-home mums to sew up laptop sleeves from old t-shirts. This
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could be a form and a space for social enterprises to overcome high rental and provide jobs for those who cannot leave their homes.
All said, in designing a heartland, MND needs to set its priorities right and consider designs that will enhance our social capital and well-being. This is especially important in new towns like Punggol 21, which is slated to be the model township and we have a chance to shape it accordingly. I hope we can have some such trials in Punggol 21 and I hope that in building the biggest heartland in Singapore, we build with it our homes, our dreams of a well connected, collaborative, compassionate and caring Singapore.
My next cut was to be on housing for elderly and singles but I think the wish has already been fulfilled. I only want to say that singles also have a need to take care of elderly parents and disabled siblings and sometimes host some guests. Therefore, perhaps the Minister can consider giving singles more than just a 2-room flat option, giving them something slightly larger so that they can bring their parents or their disabled siblings to live with them, especially since in most cases their parents would have got two bites of the cherry and may not be eligible for loans or new HDB flats.
The Senior Minister of State for National Development (Mr Lee Yi Shyan): Sir, let me first thank all the Members for speaking and making very thoughtful suggestions. I will respond to them accordingly.
I have two favourite towns. One is Toa Payoh in which I grew up. Over 20 years, from kindergarten to university, from a 1-room flat to a 4-room flat, I saw a new town created. I knew every lorong of Toa Payoh because, as a child, I used to run around the estate. Life improved significantly for my family in the two decades, and so it was for a whole generation of Singaporeans growing up with our first batch of new towns.
Another favourite town of mine is Bedok. Like Toa Payoh, it is also an old town that was deemed too far and unpopular when it was first launched in the late 1970s. But, today, it has become one of the most sought-after mature towns amongst flat buyers. It has great amenities, is very well-linked and self-contained. Yet, under HDB's Remaking Our Heartland plans, Bedok Town Centre will be transformed into a vibrant new hub. A modern shopping mall, a condominium integrated with a new bus interchange next to the MRT station and a hawker centre, are being built as we speak. And not too far away, a new
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super Community Centre, integrated with a swimming pool, indoor courts, a fitness centre and F&B outlets, is also being planned. We are even working to develop new dedicated cycling and pedestrian paths linking the two major recreational destinations in the East Coast – the East Coast Park with Bedok Reservoir through Bedok Town Centre.
Our mature HDB towns may be old but are never outdated. We keep them young by injecting new ideas and amenities into their renewal programmes. Many Members in the GPC and in this House have contributed ideas to the upgrading of old towns, too. Increasingly, we are involving the community and residents to co-develop these ideas.
As in the example of Bedok, we rejuvenate old towns in a number of ways. First, we refresh the old towns through our various upgrading and estate renewal programmes to make them more elderly- and family-friendly. Second, we green our towns through our Greenprint initiative, rooftop gardens and other greening efforts. Third, we test-bed and apply new technologies to improve liveability. Let me elaborate.
Estate Upgrading and Renewal. As our population ages, we will need more elderly-friendly fittings in homes. This is why we rolled out the Enhancement for Active Seniors (EASE) programme last July. Since the launch, 40% of the residents living in older flats undergoing the Home Improvement Programme (HIP) have opted for the EASE package. The pilot project to offer EASE directly to flats with elderly in Bukit Merah and Kallang/Whampoa towns have also received good responses. Residents are appreciative of our efforts to make their homes more elderly-friendly. In addition, HDB has received more than 600 applications for EASE from outside the pilot towns. Encouraged by the good response, we will extend EASE nationwide for direct applications from March 2013 – meaning this month.
To reach out to seniors who might be at risk of falls, HDB is also working with some hospitals and grassroots organisations to refer to HDB cases that need the EASE improvements most, so that these seniors can get to enjoy the benefits of the EASE programme earlier. In a recent case, Er Dr Lee Bee Wah had contacted HDB regarding a resident who was hospitalised due to stroke and requested for EASE improvement items to be done in his flat so that he could enjoy the benefits of the EASE soon after his discharge from the hospital. I am happy to report that the HDB Yishun branch promptly assisted the resident and arranged for the contractor to carry out the works.
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While EASE helps make our HDB flats more elderly-friendly, the Lift Upgrading Programme (LUP) aids our elderly in external mobility. Nearing the end, the $5.5 billion LUP has benefited close to half a million households.
For the remaining eligible blocks, the process of polling will commence soon. Mr Zaqy Mohamad asked if we could further extend the programme to blocks for which upgrading is not feasible with current technology. HDB will continue to look out for new technologies to bring lift access to these blocks. Meanwhile, residents who stay in non-eligible blocks, but need direct lift access due to medical conditions, can come forward to seek assistance from HDB. We will see how best to render help.
HDB's effort to install and upgrade lifts to make the HDB towns more elderly- and resident-friendly goes beyond LUP. Last year, we introduced a new programme to install lifts in older HDB multi-storey car parks (MSCPs). Mr Pritam Singh asked for an update on this. Following the announcement of the programme last year, HDB has commenced works to install lifts in 76 MSCPs. We will step up the pace of the lift installation in the remaining 445 MSCPs, after the LUP for residential blocks is completed. Given the scale of the project, we expect to complete the programme by 2017.
Another user-friendly initiative we introduced is the mandatory barrier-free features in the common areas of new buildings and their surroundings. To build a more liveable and inclusive environment, BCA is doing a fourth enhancement to the Accessibility Code to include more Universal Design concepts to address the needs of all age groups and people with different needs. To better understand their needs, BCA formed a User Consultation Group which included representatives from various voluntary welfare organisations, such as the Handicapped Welfare Association, Disabled People's Association, Singapore Association for the Deaf and Singapore Association for the Visually Handicapped, in the review. The team tirelessly went around visiting sites to conduct trials to re-examine existing provisions and proposed new enhancements.
The new Accessibility Code will also include child-friendly toilets and lactation room for nursing mothers in buildings frequented by families. To aid those with hearing impairment, the new Code will also spell out hearing enhancement requirements for function rooms, halls and auditoriums in buildings. BCA is also looking at making some basic accessibility requirements,
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such as entrance ramps and at least one accessible toilet, mandatory in existing buildings. I am glad to announce that BCA will launch a public consultation in March on these proposals. BCA aims to finalise the Code in the second half of this year to give the industry a grace period of at least six months before implementing the new code in 2014.
Second, we will make our existing towns greener and more sustainable through the Greenprint initiative. Mr Low Thia Khiang asked for an update on this, and what are the selection criteria and roadmap going forward. Let me say that HDB launched the Greenprint initiative last year. Under this initiative, HDB will introduce the concept of green and sustainable lifestyles, to build Green Neighbourhoods, Green Flats and Green Communities.
The first Greenprint pilot is now being conducted in Jurong East to test-bed sustainable initiatives, including energy and water-saving solutions, such as the rainwater harvesting system and rooftop solar panels. We are also piloting a Pneumatic Refuse Collection System that will help to enhance cleanliness of the overall living environment, and increase the productivity of waste collection, as Mr Low Thia Khiang has pointed out, thereby cutting dependence on foreign labour. The system also comes integrated with recycling bins to promote recycling among residents. These pilots are just at the beginning phase. In fact, the tenders are being prepared and called. I could update the House in due course. HDB has also launched a $1 million Greenprint Fund to support test-bedding and seek new ideas for the Greenprint initiative.
Another new green initiative is the intra-town cycling project. Our plan is to facilitate intra-town cycling in two ways. One, we will work with LTA to grow and improve cycling connectivity in our towns. For example, as part of the \"Remaking Our Heartland\" plans for Jurong Lake, HDB and NParks will work with LTA to develop a 24-km cycling network over the next few years. This will connect the main nodes, including the regional town and neighbourhood centres, and transport nodes. Other towns, like Yishun, East Coast and Punggol, will also incorporate cycling networks as part of the \"Remaking Our Heartland\" plans. Punggol already boasts the North Eastern Riverine Loop, while the first phase of the tracks in Yishun, which connects Yishun and Khatib MRT stations, has been completed.
Two, we will also look into providing more bicycle parks at the void decks and key nodes around the town. Through this supportive infrastructure and the bicycle paths, we hope to make cycling within the HDB town convenient, safe and fun. This will facilitate residents to do short distance commutes to the shops, market or hawker centre on their bicycles. We will involve residents in
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developing this project. For example, Yuhua residents are coming together to discuss the provision of secured bicycle parking facilities within their housing estate which supports the 24-km cycling network in Jurong Town I have mentioned earlier.
Third, we will test-bed and apply new technology to improve liveability. New technologies can help us overcome old constraints, and create new possibilities. One example I will highlight today is mechanised car parking. Last year, the Government Parliamentary Committee (GPC) for National Development and the Environment chaired by Er Dr Lee Bee Wah, offered to lead a study on mechanised car parking. As Members of Parliament on the ground, the GPC Members were keenly aware of the inconvenience caused to residents by localised parking shortages, and wanted to seek new solutions. The GPC set up a team to understand the different technologies available and study the implementation issues. They studied the experiences of Japan and South Korea. Arising from this effort, the GPC has recommended to HDB to pilot mechanised car parking in a few selected sites in existing HDB estates with parking shortages. The GPC Members have offered to continue to work closely with HDB to engage the local residents on this. I would like to thank Er Dr Lee's GPC for its leadership on this. HDB will work with the GPC on these pilots, and will announce the details when ready.
As you can see, we are doing a lot to rejuvenate the mature towns. However, as part of our efforts to build infrastructure and housing ahead of demand, we are developing plans for new towns, too.
Unlike retrofitting old towns, which faces many constraints, opening up new towns offers us greater latitude in design and planning. The outcome is often that each new town is better than the old, usually by a few notches. Punggol New Town is a great example. With waterways and boardwalks, green features and solar panels, integrated carpark and pavilions, Punggol has won the praises of many Singaporeans and accolades of many international judges in urban planning competitions. The fact is, we are going to build more \"Punggols\" whenever possible.
Punggol New Town itself still has room to grow. With the next phase of development, Punggol is poised to grow into one of the largest HDB towns, with about 96,000 homes, when fully developed. Later this year, HDB will also unveil its plans for Bidadari and Tampines North. These two developments are expected to yield 32,000 more homes, when fully developed.
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In the longer term, however, a larger supply of BTO flats will come from our developing of Tengah. Tengah is a large site that offers a sizeable area for township development. With creativity and imagination, Tengah can be developed to be a township of the future with many exciting possibilities.
In all these developments, we challenge ourselves to create towns that are even more resident-friendly than we know today. We believe strongly in resident-centricity as the main philosophy to design and enhance the living environment. HDB will continue, therefore, to build well-designed and community-friendly new towns that are cost-effective and sustainable. At the same time, as emphasised by Er Dr Lee Bee Wah, HDB will work with the relevant agencies to ensure that the amenities, such as childcare centres, kindergartens and supermarkets, are in place at the same time or soon after the residents have moved into the new precincts. Besides pre-planned facilities that are built together with the residential blocks, HDB also safeguards space for future facilities to meet the needs of residents as the community grows and needs change.
Miss Penny Low made many suggestions on how we can better cater to different groups of residents and make high-density living more comfortable through thoughtful designs and a better understanding of their needs. We agree. We thank her for the suggestions, too. Today, HDB's Studio Apartments are an example of customised design and purpose-built housing to meet seniors' needs. Studio Apartments are of comfortable size, easy to maintain, and provided with built-in kitchen cabinets and wardrobes in a ready-to-move-in condition. It is also equipped with elder-friendly fittings, such as lever taps, slip-resistant tiles, and support hand-bars. For projects launched from November 2011 onwards, applicants for new Studio Apartments can choose whether they want the kitchen cabinets at the normal height, or at a lowered height catering for wheelchair users. They even have an alert alarm system to enable them to seek assistance during an emergency.
Our Studio Apartments are also integrated within communities amidst other flat types and are close to amenities, so the elderly can live side-by-side with young families and children, sharing common spaces and experiences. This is a good example of how we design our flats for specific groups. We will continue to adopt this approach for future flats.
Miss Penny Low also asked that we apply design thinking to help build social capital, particularly in our new housing estates. We thank Miss Low for her ideas, and have, in fact, sought her inputs for our community efforts in Punggol. For instance, the National Environment Agency, the Public Service
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Division, People's Association and HDB, have worked on a joint project with Punggol residents to co-create the Punggol living experience. Called \"Project Love Punggol\", it aims to develop new ideas that will enable stronger community ownership by Singaporeans of their neighbourhood, community and environment. The enthusiasm of the residents and their readiness to take ownership to create a unique neighbourhood are most heartening.
Mrs Lina Chiam spoke about the need to provide adequate community spaces in our towns. We agree. Planning for communal spaces to facilitate social interactions and community bonding is a key consideration in the design of HDB estates. HDB does it at various levels, from the town plazas and neighbourhood parks, to precinct pavilions, rooftop gardens and void decks. We also have the 3-Generation (3G) family playground, consisting of children's playgrounds, adult fitness stations and elderly wellness exercise stations located in close proximity to provide children, adults and the elderly a common space to play, exercise and bond.
Indeed, as shown from our efforts in creating a liveable and inclusive environment for Singaporeans, the task of improving our living environment cannot be the Government's alone. Residents' participation is paramount.
To build ownership, it is important to encourage greater community participation and give residents more say in the running of their estates. In 1989, we set up Town Councils precisely to do this. The elected local Members of Parliament are given autonomy and authority to take charge of estate management and maintenance, and to shape the direction and character of their estates.
It is an example of local empowerment.
To further support resident involvement, MND, in recent years, introduced the Town Councils Management Report (TCMR). The TCMR provides residents with objective information on how their Towns are performing, and performances are graded in simple colour bands of \"red\", \"amber\" and \"green\" for easy interpretation.
The Leader of the House (Dr Ng Eng Hen): Can I beg leave for you to leave the Chair so that I can move a Motion to allow the Minister of State to
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complete his reply?
The Chairman: I give my consent.
[(proc text) Resolved, \"That the Chairman do leave the Chair.\" – [Dr Ng Eng Hen]. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Exempted Business","subTitle":"Committee of Supply","sectionType":"OS","content":"[(proc text) With the consent of Mr Deputy Speaker and the general assent of Members present, (proc text)]
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolved, \"That the proceedings on the business of Supply be proceeded with beyond 7.30 pm.\" – [Dr Ng Eng Hen]. (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 T (Ministry of National Development) ","subTitle":null,"sectionType":"OS","content":"[(proc text) Debate in Committee of Supply resumed. (proc text)]
[Deputy Speaker (Mr Charles Chong ) in the Chair]
Mr Lee Yi Shyan: Thank you for the extension. We believe that the TCMR framework has strengthened accountability. With information in TCMR, residents can then work with their Town Councils to determine the priorities for the town and improve its upkeep.
While we give the local Members of Parliament and town councillors autonomy, we do at the same time need to establish a larger legal framework
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to provide guidance and clarity to facilitate the autonomous operations of the Town Councils. The rules and regulations under the Town Councils Act and Town Councils Financial Rules are put in place for this. MND has set up a team to review Town Councils' operations. In this review, we will re-examine the fundamental nature of Town Councils, including the standards of corporate governance that should apply to them to best serve the interests of the public. We note Ms Sylvia Lim's suggestions on the definition of common areas and we will take her input into consideration.
Er Dr Lee Bee Wah asked if there could be more grants for Town Councils to help them cope with rising costs. We expect Town Councils to fund their operations through the Service and Conservancy Charges (S&CC) they collect from residents. This is in line with the Town Councils' operational and financial autonomy. Town Councils have the authority to set their priorities and determine their programmes in discussion with their residents. They thus also have the flexibility to set S&CC charges to fund them. Periodically, they would also need to revise their S&CC to meet higher resident expectations, improve service and keep pace with rising cost.
To help Town Councils offset part of their cost, MND provides an annual operating grant of about $90 million a year, and this accounts for 15% of the Town Council's annual budget. Besides the annual operating grant, the Government also provides S&CC rebates directly to residents, from time to time, to help them with rising cost. We are giving $77 million in this Budget under the S&CC rebate scheme.
Mr Png Eng Huat asked specifically about grants for the maintenance costs of lifts. On this point, I would like to stress that, when carrying out LUP, HDB has been prudent in the number of lifts added as this impacts on both the upfront cost of LUP as well as subsequent maintenance cost to be borne by the Town Councils and eventually the residents. And this is why we also go through a polling process to ensure that residents are aware of the decisions they are going to make. So, to help Town Councils with their co-payment of the initial cost, $130 million of LUP Assistance was disbursed in 2010. Towns that required more extensive lift upgrading received more grants.
Still on community involvement, we also think of other ways to encourage residents' contributions in terms of ideas and suggestions. I launched the \"Cool Ideas for Better HDB Living\" Competition in 2011 to source for ideas from the community. We received more than 100 suggestions in a series of competitions from students, housewives, working adults, retirees and SMEs. The Cool Ideas platform also serves as a good avenue for greater community interactions.
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Encouraged by this positive response, we will roll out Cool Ideas in other precincts this year.
To engage the community in the planning and design of its precincts, HDB also conducts surveys and focus group discussions among residents. They gave feedback on usage patterns of the communal facilities, satisfaction levels, interaction patterns and suggestions for improvements. Recently, HDB also piloted \"Building Our Neighbourhood's Dreams\" (BOND!) in Bukit Panjang. HDB invited residents to co-design their community facilities under the Neighbourhood Renewal Programme. HDB observed that residents were happy to be part of the process and to \"own a piece of the community\".
Chairman, HDB builds flats; people own them and make them home. HDB builds towns; people give them life and make them communities. Just as we will involve the people more in designing housing policies, we will also work with the people more to co-create HDB towns and build vibrant and active communities.
","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 Minister for National Development (Mr Khaw Boon Wan): Sir, may I seek your consent to move that progress be reported now and leave be asked to sit again on Monday, 11 March 2013?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again on Monday, 11 March 2013.\" – [Mr Khaw Boon Wan]. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Khaw Boon Wan: 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 on Monday, 11 March 2013.
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.\" – [Dr Ng Eng Hen]. (proc text)]
Adjourned accordingly at 7.40 pm.
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1 Asst Prof Tan Kheng Boon Eugene asked the Prime Minister what is the cost of conducting the Punggol East by-election in January 2013.
Mr Teo Chee Hean (for the Prime Minister): The expenditure incurred by the Elections Department for the Punggol East By-Election in January 2013 is estimated to be $840,800. This includes the cost of printing ballot papers and election materials, rental of equipment, transportation costs, and allowances paid to election officials.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Breaches of Rules and Regulations Governing Outdoor Rallies in the 2011 Presidential Election and 2013 Punggol East By-election","subTitle":null,"sectionType":"WA","content":"2 Asst Prof Tan Kheng Boon Eugene asked the Deputy Prime Minister and Minister for Home Affairs (a) whether there are breaches of rules and regulations governing outdoor rallies in the 2011 Presidential Election and the 2013 Punggol East by-election; (b) if so, what is the number and nature of the breach(es).
Mr Teo Chee Hean: There was only one breach of the election regulations governing outdoor rallies during the 2011 Presidential Election. This took place on 24 August 2011 during Presidential candidate Tan Kin Lian's outdoor rally where the rally ended shortly after the permitted time. Taking into account the facts and circumstances of the breach, Police issued a verbal warning to the election agent.
There were no breaches detected during the recent Punggol East By-Election in 2013.
Police will continue to refine its rules, regulations and penalties to ensure that candidates, agents and/or their permit holders take the permit conditions seriously and adhere strictly with all permit conditions.
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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":"Use of the Construction Productivity and Capability Fund","subTitle":null,"sectionType":"WA","content":"3 Mr Yee Jenn Jong asked the Minister for National Development if he can provide a breakdown of the use of the Construction Productivity and Capability Fund (CPCF) since its inception in June 2010, by the type of fund and by the type of companies measured by company size.
Mr Khaw Boon Wan: The $250 million Construction Productivity and Capability Fund supports companies in the built environment industry in (a) manpower and capability development, and (b) technology adoption, with a view to raise their productivity. Since its inception, about $20 million and $65 million have been committed under (a) and (b) respectively. About 2,200 firms will benefit from these disbursements. More than 80% of the firms are regarded as small firms under the BCA's classification system.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"NUS Campus Crusade for Christ Student Group","subTitle":null,"sectionType":"WA","content":"4 Asst Prof Tan Kheng Boon Eugene asked the Minister for Education if he can provide an update on the matter regarding the NUS Campus Crusade for Christ student group whose posters and website were deemed disrespectful and insensitive to Buddhism and Islam.
Mr Heng Swee Keat: NUS convened a Board of Discipline hearing for the NUS Campus Crusade for Christ (NCCC) Executive Committee members in September 2012, after confirming that the police were not taking any action against the students involved. After the hearing, NUS tasked the NCCC to submit a reflection report. NUS has accepted the outcome of the NCCC reflection report, which includes steps NCCC has taken to ensure that a similar incident will not happen again.
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