1 Mr Lim Biow Chuan asked the Prime Minister when will MAS review its car loan policy to ensure that Singaporeans will have reasonable opportunities to purchase a car with adequate financing.
2 Er Dr Lee Bee Wah asked the Prime Minister in view of the recent changes to car ownership policies (a) how has this impacted the livelihood of used car dealers; (b) how many used car dealers are there currently in Singapore and how many workers do they employ; (c) what is the current stock of used cars held by these dealers; and (d) what measures will the Ministry take to ease the financial hardships faced by these used car dealers.
\tThe Acting Minister for Culture, Community and Youth (Mr Lawrence Wong) (for the Prime Minister): Mdm Speaker, I am taking this question on behalf of Deputy Prime Minister Tharman Shanmugaratnam. And with your permission, I will take Question Nos 1 and 2 together.
Mdm Speaker: Yes, please.
\tMr Lawrence Wong: Mdm Speaker, as MAS had explained in its press statements, and as I had elaborated during the Committee of Supply (COS) last month, the restrictions on car loans were introduced for two reasons: first, to encourage financial prudence among consumers, particularly in light of the current prolonged period of low interest rates; and second, to moderate the demand for cars, which has been driving up prices of Certificate of Entitlement (COE) and car prices sharply, including over the last year. Higher COE prices contribute to a higher inflation rate and create negative spillover effects on the broader economy.
Er Dr Lee Bee Wah highlighted the plight of used car dealers. She did so during the Budget debate and she is asking about it now in this PQ that she has filed, and what we can do about that.
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As Members would know, to help the used car industry adjust to the new environment, MAS announced last Friday that it would lift the financing restrictions for two months for used cars that were acquired by dealers prior to the introduction of the restrictions. In making this decision, MAS gave consideration to the fact that demand had fallen more significantly for used cars, and also that the used car industry found it challenging to dispose of the inventory that was acquired at higher in built COE values before the introduction of the restrictions.
However, it is not possible to relieve the industry from the impact of the restrictions on a continual basis without undermining the policy objectives of promoting financial prudence, moderating the demand for cars, and cooling COE prices. So, MAS will not be extending the concession beyond this two-month period.
The two-month relaxation of the rules will in fact provide a good window for the used car industry to clear much of its previous inventory. Data from LTA indicates that of the 11,000 used cars acquired before the introduction of the restrictions, 4,000 were sold in the one month since the financing restrictions were introduced. So, 11,000 used cars were acquired before, and in the one month since the financing restrictions were introduced, 4,000 of these 11,000 used cars were sold. Based on this trend, and with the temporary lifting of the financial restrictions, dealers should be able to sell most of the remaining 7,000 used cars within the two-month window.
MAS will continue to monitor developments in the COE market and will recalibrate the financing restrictions for all cars, new and old, in response to market conditions – in particular, a sustained moderation in COE prices. But we will not for some time revert to the pre-February situation of having no financing restrictions on car purchases.
We understand that the used car business has grown in recent years and many dealers have done very well, especially when COE prices were moving up. The industry should take advantage of the temporary reprieve for its inventory, and adjust to the new reality in the car market. If the industry should eventually consolidate and employees are affected, the Government will do its part to help them through the transition, and to find new jobs in other industries.
Mdm Speaker: Mr Lim Biow Chuan.
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\tMr Lim Biow Chuan (Mountbatten): Mdm Speaker, I would like to ask the Acting Minister how the Government came to this financing restriction of 50% to 60% to encourage financial prudence. Perhaps, the Government can shed some light on how it came to the financing limit of 50% to 60% and not 70% to 80% financing for vehicles. Secondly, the latest COE prices suggest that the COE prices have not come down very much. This seems to suggest that there is quite strong demand for vehicles. The feedback is that this car loan restriction policy has benefited those who are better-off, and younger citizens who may need a slightly higher loan would be disadvantaged. How can the Government assure Singapore citizens that the policy is not intended to be disadvantageous to those who are having this aspiration to buy a car?
\tMr Lawrence Wong: Mdm Speaker, I thank the Member for his follow-up questions. On how the percentages for the loan limits were derived, it is really a judgement of looking at the past trends and at what is necessary in order to moderate the demand for cars, which is the objective of this whole exercise and review. Having looked at the current situation where we have very low interest rates and very easy financing, we did not feel that was prudent. And so we looked at how we can have appropriate adjustments to moderate the overall demand for cars, which was the intent of the policy. Based on that and the assessment on what is necessary, MAS felt that it was necessary to have something that was significant – not just a 10% to 20% adjustment. I think this would not have been sufficient to achieve the intent of the policy. We needed something that was more significant in terms of moderating demand.
We tiered it so that for those who are purchasing the smaller vehicles, there would be a higher loan limit. So, from that point of view, first-time buyers – people who are looking at buying a smaller vehicle – with the loan limit, while it is slightly higher, would still allow them to purchase a car with a higher quantum.
It is really a balance. As I mentioned earlier in my COS reply as well, these adjustments are not permanent. The policy will continue to be recalibrated and adjusted based on looking at how the COE market adjusts to these new policies. We have had only one month of data and I do not think we should judge the outcome of the policy just based on that one single data point. We will have to look, over a period of time, how the COE market adjusts and then if indeed the policy objectives are achieved, as I said earlier, MAS will be continually reviewing and adjusting its policies accordingly.
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\tEr Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I would like to thank the Acting Minister and MAS for giving the second hand car dealers this 60-day breathing space. I have two supplementary questions. First, I would like to ask the Acting Minister why he has mentioned so soon that there will not be any extension to the reprieve? I would think that we should monitor and see whether there is a genuine reason for any extension or not. Secondly, if I heard the Acting Minister correctly, this curb is introduced in order to cut inflation. How effective would it be, because for those who need a car, they would still need to buy a car? This only adds on to their business costs.
\tMr Lawrence Wong: Mdm Speaker, I will answer the two questions on the extension and why we have decided not to go beyond. We have made very clear that it is a two-month window. I think it is precisely because we have taken in the feedback, studied the issues very carefully, and worked out what would be a reasonable window to help the used car dealers deal with this particular problem where they have an inventory of used cars with a higher built-in COE value. We recognise that it poses problems for them because of the changes in policy, and we would like to help them clear this particular inventory. If Members look at the data that had been presented – 11,000 used cars purchased before; 4,000 sold within one month – I think two months is a very reasonable window. If Members also look at used car sales, in the past, it was about 5,000 a month. In the month since we introduced the financing restrictions, it has come down to about 4,000. Prices have softened somewhat – about 10%.
The used car sales are still happening. The market is adjusting. With two months, they should be able to clear the inventories that they have. The adjustment we are making now in providing this temporary lifting of two months is particularly to address this problem, and within this two-month window, the problem should be able to be resolved. That is why we have decided that the two-month window should be a definite period.
On the impact on inflation, yes, we are hoping to moderate the impact on inflation. The Member talked about business costs, but commercial vehicles are not included in the financing restrictions. Overall, by moderating the demand for cars, this will have an impact on COE demand and therefore, have an impact on moderating inflation as well.
\tMs Foo Mee Har (West Coast): Mdm Speaker, I would like to ask the Acting Minister two supplementary questions. First, with the car loan tightening policy requiring a much higher amount of payment in cash, I am concerned that those who are less cash-rich will resort to raise the necessary funds by taking
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up personal loans from banks or moneylenders. Personal loans now attract a much higher interest rate, averaging six to 12 times higher than car loan rates. This will add significant financial burden to consumers. I would like to ask the Acting Minister how we can prevent this situation from happening as we have seen in other countries when the loan-to-value (LTV) is very low.
The second question is on how to help people who need a car as an essential form of transportation. For those who need the car for family care-giving obligations or as part of their job requirements, I wonder whether the Acting Minister would consider a different category of loan financing. For example, giving up to 80% LTV for cars but capping the loan value to 50%, therefore creating a new segment of financing for low-cost cars.
\tMr Lawrence Wong: On the first question of whether there are other means of financing that people will resort to like moneylenders and bank loans which would then circumvent the financing restrictions or put more pressure and add to the burdens, I think it is something which we will have to monitor. I do not think we have seen any signs of this happening. We would also have read the media reports of how financing restrictions have been extended to non-financial institutions as well. So, to the extent that we can, the financing restrictions have been extended. I do not think we have seen any signs of loan behaviours being driven to moneylenders. We will continue to monitor and make sure that that does not happen.
On the second point on whether we can extend the LTV for different categories of buyers to make it easier, in the end, it is really about managing the balance between achieving the intent of the policy and making sure that there are some exemptions that we can give to those who are deserving. We have already announced some of the exemptions earlier in the Budget and COS sessions. We should keep to the current position for the time being and look at the impact of the policy, whether it, indeed, achieves our policy objectives which are, as I stated earlier, to ensure prudence and moderate inflation. And then, we can adjust along the way.
\tMr Teo Siong Seng (Nominated Member): Mdm Speaker, I thank the Acting Minister that MAS calibrated the policy according to the reaction from the ground. From 1995 to February 2003, the restriction on car loan was 70%. After that, for the next 10 years, there was no restriction. Now, with the new restriction announced at this year's Budget, MAS has within a month, assessed the ground feel and changed the policy. Would the Acting Minister consider two months later, depending on the situation, taking a moderate line of having a
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restriction of between 70% and 100%?
\tMr Lawrence Wong: Mdm Speaker, I thank the Member for the question. It was something that Mr Lim Biow Chuan also alluded to earlier in his follow-up question. As I said, we will continue to monitor developments in the COE market and we will re-calibrate our financing restrictions for all cars, new and old, in response to market conditions, in particular, if there is a sustained moderation in COE prices. We have just announced this policy. We have granted a temporary lifting of the financing restrictions for a particular objective, which is for the inventories that were built up. We would like to help the used cars dealers release these inventories without too much difficulty. Having taken this step, let us maintain the policy and look at whether it achieves its objectives over the coming months. MAS will continue to review the policy and re-calibrate based on the outcomes that it observes in the COE market.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Review of Salaries for Civil Servants and Appointment Holders","subTitle":null,"sectionType":"OA","content":"3 Mr Baey Yam Keng asked the Prime Minister whether the Public Service Division has completed its review of the salaries of Administrative Service officers, the judiciary and statutory appointment holders and, if so, whether highlights of the changes can be shared.
\tThe Deputy Prime Minister and Minister for Home Affairs (Mr Teo Chee Hean) (for the Prime Minister): Mdm Speaker, the Public Service Division (PSD) has completed a comprehensive and thorough review of the salary framework of the Administrative Service officers, the judicial appointment holders and selected statutory appointment holders, that is the Attorney-General, Chairman of the Public Service Commission and the Auditor-General.
For the review, I had asked PSD to take into account the need to continue to have market competitive salaries in order to recruit and retain persons of high ability, integrity and commitment to be capable public service leaders. This is consistent with the view of the independent Committee chaired by Mr Gerard Ee which reviewed political salaries and which was debated in this House last year.
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Mr Ee's Committee felt that civil servants, judicial appointment holders and statutory appointment holders are \"pursuing professional careers, albeit in the public sector. Competition for talent in these groups is very keen, not just in Singapore but overseas as well\". They concluded that \"civil servants, other statutory appointment holders and judicial appointment holders should be paid salaries that are competitive with the market\".
In carrying out the review, the PSD also maintained the policy that Civil Service salaries should lag, and not lead the market even though they take reference from the market. PSD looked at multiple sources of data and also engaged Mercer, an international expert on remuneration issues. Using this data, the conclusion of the review is that current salaries are at about the right level, and will be maintained, that is, there is no need to raise them or to cut them. There will be some adjustments to certain salary ranges and start points to smoothen out salary progression.
There will, however, be two structural changes made to the salary framework. First, pensions will be removed. A Long-Term Retention Package will be introduced for the Administrative Service to retain officers for leadership and policy continuity within the Public Service. For the judicial and statutory appointment holders, a gratuity plan will be introduced. Both the gratuity plan and the Long-Term Retention Package are essentially of the same value as pension and are taken into account in the overall salary levels when carrying out salary comparisons. The removal of pension for the statutory appointment holders and the Judiciary will require constitutional amendments. These amendments will be tabled in Parliament in due course.
Second, the Gross Domestic Product Bonus (GDP)Bonus currently received by the officers and appointment holders will be replaced with the National Bonus similar to that for political appointment holders. Unlike the GDP Bonus which is tied only to GDP growth, the National Bonus is linked to a broader set of indicators, such as the socio-economic progress of the middle and lower income Singaporeans.
Mdm Speaker, the Government will continue to regularly review the salaries for the Administrative Service and the judicial and statutory appointment holders to ensure that they remain competitive. When doing so, PSD will not follow any specific formula, but will examine and take reference from a number of different sources, including market surveys by compensation specialists of salaries of professionals and executives in comparable jobs, and salary data from IRAS. This is no different from how it reviews the salaries of all other civil servants regularly to ensure that we are able to recruit and retain
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sufficient numbers of persons at all levels with the commitment and ability to serve the public and, in so doing, uphold the quality of the Public Service.
\tMr Baey Yam Keng (Tampines): Madam, I am glad to note from the Deputy Prime Minister that the Government is using among various sources independent experts to reassess the appropriateness of salary scales for its top services in the Government. I would like to ask: going forward, is the Government continuing to use that as a way to ensure that the scale is relevant and competitive, instead of a straight peg to the private sector salaries, or as the Deputy Prime Minister said, a lag behind certain benchmarks in the private sector? With these changes, in terms of removal of pension and the bonus calculation, how is the Government in a better position to attract and retain top talent in these elite services of the Government service? My final question is: besides compensation, in the Public Service, integrity and public ethos are equally important, how is the Government ensuring that high standards are maintained in the service?
\tMr Teo Chee Hean: I will take the last question that Mr Baey has raised first. Commitment and integrity are very important for the Public Service, and these are key things which we assess our public officers on and demand very high standards of. So, when an officer is found to have not lived up to the standards of integrity and honesty that we require for public servants, we do not hesitate to take action against him. We can see examples of that already.
In order to make sure that we can recruit and retain officers of high quality throughout the Public Service, not just the Administrative Service and the Judiciary, but everywhere, including policemen, teachers, accountants and the average civil servant who serves the public wholeheartedly and does his best to serve the public, we will continue to pay competitive market salaries. That is the best way to make sure that we can continue to recruit and retain officers in the Public Service to serve members of the public. But we will take suitable comparators for each job in the Public Service where there are equivalent jobs in the private sector. For example, if a person works in an administrative job in, say, the back room of one of our organisations, we will try and take a comparable job in the private sector and set the salary according to that. If a person is an accountant, economist or a lawyer, we would take comparables as well. Similarly, we will apply the same principles for the Administrative Service and the Judiciary.
In terms of maintaining competitiveness and sufficient numbers, we have seen in the past from our experience that where salaries have gone out of line with what is happening in the market, we have had difficulties in recruiting and
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retaining officers. Because we have maintained salaries at a comparable level – we lag, we do not lead – but at a comparable level, we have been able to maintain our recruitment and our retention.
\tMr Lim Biow Chuan (Mountbatten): May I ask the Deputy Prime Minister whether competitive salary is the only way to retain talent within the Public Service? There had been Administrative Officers who left the service and have become seemingly quite critical of Government policies. Is there a provision for Administrative Officers to come up with differing suggestions to the Government and have a proper dialogue with the Government so that policies that we develop would be able to match their expectations of what they are expected to do within the Civil Service?
\tMr Teo Chee Hean: Obviously, salaries are not the only way in which we recruit, attract and retain officers. The officers also look for worthwhile jobs, a job which is respected by others in the community and also they are motivated by being able to do something larger, for the community, for Singaporeans as a whole. So, they are motivated not by just the bottom line of a company, but really their bottom line is the well-being of all Singaporeans. These are the motivations of public officers who come in and will stay for a long time.
There are many opportunities and avenues for officers to express their views. In fact, before a policy decision is arrived at, there are often very many different options which are explored. In that process, officers are encouraged to exercise their initiative and creativity in developing these policies. A number of the policies that have been developed have had significant inputs from our officers, for example, the Jobs Credit Scheme, Workfare Income Supplement (WIS) and so forth. These are important inputs that they have provided. There may well be a difference in views of what is a better policy or what is a better way of executing things, but these are natural in any organisation. But we do expect, that once a decision has been made, our officers will follow through and see through the execution well. That is also expected of any organisation that an officer serves in.
\tMr Zaqy Mohamad (Chua Chu Kang): I thank the Deputy Prime Minister for his explanation. During the debate last year, one of the key issues that we raised was connectedness. When we talked about salaries, there was also a concern that political office holders were not that connected because of the scale of salaries that they earned. For members of public who are watching this right now and the feedback that the salaries are still going to remain for Administrative Service Officers, the question would be how do we ensure that
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the Administrative Service continues to be connected and understanding of public sentiments as well as public needs. The feedback that we often get is that civil servants are highly paid and, therefore, there is a concern whether they are still connected to the ground.
\tMr Teo Chee Hean: This is, indeed, one of the things which the Public Service as a whole, not just the Administrative Service Officers, needs to take very seriously. There are many avenues for this. I would say that the ongoing \"Our Singapore Conversation\" has been a very useful exercise in hearing public feedback, getting views, not just on policies but on how policies are executed and transmitted. Those have all been very valuable opportunities. We also encourage our public officers, whether they are Administrative Officers or not, to get involved in the community. A good number of them actually have spent some time volunteering for various good causes. We also institutionally and structurally have our public officers, especially our Administrative Officers, attach to various organisations, for example, the CDCs. I know of one of our officers now who is working in the frontline in one of our public hospitals, dealing with public feedback. This provides opportunities for our officers to gain an understanding of issues on the ground, and we will find more opportunities for them.
\tMs Denise Phua Lay Peng (Moulmein-Kallang): Madam, I agree with the Deputy Prime Minister that civil servants should be paid competitive salaries, especially those who are strong performers and those who are at the frontline. I have three questions to ask.
What is the actual formula that is currently being used for pegging Civil Service pay, especially for the top civil servants? Is it pegged at the 90th percentile or 75th percentile because that is a typical way by which the private sector, for example, will peg their salaries? The second question is this. The Deputy Prime Minister spoke about the Long-Term Retention Plan. I would like to find out a little bit more about that. How much of it is a financial component and how much of it is a non-financial component? Also, in HR management, what is the onus, therefore, on the employer, which is the Civil Service itself, to build other non-financial factors, such as culture, to make people want to stay and want to contribute to build our nation together? The last question is really on accountability. Political office-bearers now, we know, go to the polls every five years and if they do not perform and for various reasons, they are out. In the private sector, CEOs are evaluated based on either the bottom line or non-bottom line, certain KPIs, and so forth. So, it is pretty obvious for their accountability. I just want to seek the Deputy Prime Minister's clarification on what would be the accountability for top civil servants in the work that they do?
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They are almost on par or, if not, higher than what the Cabinet, for example, is making. So, I would like to seek clarification from the Deputy Prime Minister.
\tMr Teo Chee Hean: There are quite a few questions. I will try and answer all of them. If I forget some of the questions, please repeat them. I will try my best to answer them. On accountability, we do have a process by which officers are assessed by the Head of Civil Service and also the Chairman of the PSC on an annual basis. Officers have, of course, to state their KPIs and performance indicators. In the process of coming to their assessments, the Head of Civil Service and the Chairman of the PSC do consult the Ministers whose Ministries these officers are working in. So, that is one process. We have a very rigorous process, in fact, of assessing performance in the Civil Service, especially for those in the top ranks of the Civil Service.
We also have performance bonuses. This is not always usual in most public services. We do have performance bonuses and therefore, how much and how well an officer has performed in a given year, how he has contributed, are taken into account in determining his bonus. There is a range and it is not fixed.
Where do we set our salary points? The same principles apply across the whole Public Service. We choose comparables. Then, we look at what type of officers we are trying to recruit and retain. We do indeed sometimes choose the 75th percentile, and sometimes the 90th percentile, depending on the range and the group of persons that we are looking for.
These are basically similar to HR principles that are used in the private sector. We do use HR consultants from the private sector who have experience in compensation and remuneration to help us to devise the schemes that we have. There are probably several other questions which I have not answered but I will be happy to answer them.
\tMs Denise Phua Lay Peng: What about the Long-Term Retention Plan? How much of it is made up of the financial components, and how much of it is non-financial?
\tMr Teo Chee Hean: While I spoke only of the monetary side, which is the Long-Term Retention Plan, of course, there is a whole range of other things which motivate a person to stay. The most important motivation for a person to stay in the Public Service is that he gets happiness out of other people's happiness – it basically comes down to that. If you get happiness only from the remuneration package that you have, then I think the Civil Service is really the
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wrong place for you. Your ultimate satisfaction and happiness must really come from seeing other people happy, other people doing better in life – that is, our fellow Singaporeans, the public at large and the community. So, that is the ultimate satisfaction for a public servant. We try to bring that across to our public servants in the course of their work, in the courses that they attend and so on. But that motivation comes from inside the person as much as it does from what somebody tells him. So, that is one aspect.
The other aspect of motivating our people is we try and give them development opportunities. We have a system where officers have 100 hours of training a year. We give our officers opportunities to go for developmental courses, both within the Public Service and also other kinds of courses, to improve themselves or to get higher qualifications, postgraduate degrees and so on. These are ways in which we develop our officers, keep them motivated and also increase their ability to contribute to the Public Service and to Singapore.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Number of Full-time National Servicemen Downgraded in Each Cohort","subTitle":null,"sectionType":"OA","content":"4 Mr Nicholas Fang asked the Minister for Defence (a) what is the average number of downgraded personnel in each annual cohort of full-time National Servicemen; and (b) how many of these are assigned to clerical or administrative jobs each year.\t
\tThe Minister for Defence (Dr Ng Eng Hen): Mdm Speaker, National Servicemen are medically assigned a Physical Employment Standard (PES) according to their medical history and health condition. The PES of the full-time National Serviceman (NSF) is one factor which determines their suitability for various vocations within the SAF. It is not the only factor, it is one factor. Other factors include the SAF's operational and manpower requirements, as well as the educational qualification of the individual and his physical fitness. But, generally, PES A and B full-time National Servicemen can be deployed to all vocations, while PES C NSFs can be deployed to combat support and combat service support vocations. Mr Fang asked for percentages. The corresponding percentage for PES A is 27%, PES B is 58% and PES C is 8% at enlistment.
PES E full-time National Servicemen have medical conditions which limit their physical activity but some can still be deployed for combat service support vocations. PES E forms 7% of full-time National Servicemen, with 2.5% assigned
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to clerical and administrative roles within the SAF.
\tMr Nicholas Fang (Nominated Member): Madam, I thank the Minister for the answers. I would just like to express gratitude at this point to the Minister and the Ministry for the work they have done in making National Service a worthwhile and fulfilling experience for all NS men. As an NSman myself, I have experienced it first-hand. At the same time, I have heard feedback, especially from full-time NSmen in clerical positions, who complain that they do not feel fulfilled or actively engaged in a useful way for the two years of their experience. My clarification is in two parts.
Would it be possible for clerical and administrative functions within the SAF to be outsourced in the way that a lot of the cookhouse functions and some of the training functions have been outsourced to commercial suppliers? As a follow-on from that, would the then non-combat personnel who were allocated clerical and administrative tasks be possibly deployed to carry out some social functions in the same way that many militaries in other countries, including Singapore, contribute during humanitarian disasters or crises to help the broader community. This would then contribute more to Singapore's concept of Total Defence in the economic, social, psychological and civil areas, as well as the military.
\tDr Ng Eng Hen: Madam, there are two principal considerations when replying to Mr Fang. One is that the SAF and MINDEF fully recognise that when we take these National Servicemen when they are serving their National Service, we have a very strong responsibility to make sure that they are safe. The medical classification or the PES classification allows us to deploy them in areas which are not detrimental to their health or their disease conditions. That is the first principal consideration.
The second is that, at the same time, even those with limited physical ability – as I said, PES E – we want to continue still to deploy them, as the Member said, to meaningful vocations within the SAF. And where it is safe and possible to do so, we have actually, over the years, expanded the list of vocations that they can do.
Pointedly, how do you ensure that even those with administrative activities or responsibilities continue to be meaningfully deployed? I think they still can. For example, the unit can be deployed in operations and while they are doing administrative duties, they ought to see that as part of the function of the whole. But I recognise the challenges that when they are limited to clerical duties, they
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may think that they do not contribute to Total Defence. But they still serve a meaningful role. We will have to continue to engage this group and to find ways in which they feel that they can better support our NS and defence activities.
\tMr Nicholas Fang: Minister, what about the second part of the question – whether it is possible to outsource some of these clerical functions?
\tDr Ng Eng Hen: Outsourcing – that should not be a motivation. Even whether we outsource or not, that is a separate consideration for how do you meaningfully use a small group of National Servicemen with medical conditions that make it difficult for them to be involved in the more combat vocations? For example, we have outsourced, as the Member said, chefs and so on and so forth but that is not our principal driving force. I think the main challenge is, even for those who have PES E or PES C, if we can meaningfully deploy them into combat service support vocations, we will. And for those who we cannot, we still need to engage them and make sure that their time in NS is meaningfully spent.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Impact of Tighter Foreign Worker Quotas on Completion of new HDB Flats","subTitle":null,"sectionType":"OA","content":"5 Ms Foo Mee Har asked the Minister for National Development what is the impact of tightening policies on foreign workers on (i) completion periods for HDB's Build-To-Order (BTO) projects; and (ii) costs of new BTO flats in view of the higher foreign worker levies.
6 Er Dr Lee Bee Wah asked the Minister for National Development with the tightening of foreign workers (i) how will it affect the construction programme for the 25,000 new HDB BTO flats for this year; (ii) what is the expected range of construction time for these flats; and (iii) what are the contingency plans if the contractors are not able to complete the projects on schedule.
\tThe Minister for National Development (Mr Khaw Boon Wan): Madam, may I take Question Nos 5 and 6 together, please?
Mdm Speaker: Yes, please.
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\tMr Khaw Boon Wan: The foreign worker tightening policy will impact the construction industry in two ways. First, the man-year-entitlement (MYE) quota for new projects will be further reduced by 15% in July this year, so this would bring the cumulative MYE cut since 2010 to 45%, which is quite hefty. Second, the foreign worker levy will be further increased in phases over 2014 and 2015, with the exception of the levy for higher skilled workers employed within the MYE quota. These measures aim to steer the industry towards skills upgrading, mechanisation, and streamlining workflow to improve productivity and to reduce the reliance on foreign workers. During the process of adjustment, construction time and cost may be affected.
Like other developers, HDB will likely be impacted by the tightening on foreign worker policy, despite there being no delay to the construction timeline for HDB's BTO projects so far. Having said this, HDB should be less affected as it uses prefabrication construction extensively, which helps to raise productivity and reduce on-site labour requirements. Currently, 60% to 70% of the super-structure of HDB projects is constructed with precast components. Indeed, HDB is the market leader in prefabrication. HDB is however, monitoring the situation very closely.
If any contractor is unable to proceed with the construction work, HDB will consider allowing the contractor to novate the contract to another contractor. HDB could also terminate the employment of a non-performing contractor and engage a new one to complete the remaining work. Regardless of which option is adopted, delivering flats to Singaporeans on time remains our top priority.
HDB has not closed any building tender since the announcement of the increase in foreign worker levy. The impact on construction cost will be clearer when we receive new tender bids. HDB will continue to work closely with the contractors to improve productivity and minimise the impact of the recent changes on construction time and construction cost.
Mdm Speaker: Er Dr Lee Bee Wah.
\tEr Dr Lee Bee Wah (Nee Soon): Thank you, Mdm Speaker. I would like to thank Minister for the answer. My supplementary question is that the cut of 45% MYE is indeed hefty. With the many projects that are to be rolled out over the next few years, is there any consideration that the Ministry will look into relaxing the quota for the foreign worker? Next question is that, yes, pre-casting is in fact widely used in HDB projects. Is the Ministry going to help the contractors to resolve some of the crunch? I was told that pre-casting yards also
\tPage: 24
cannot cope; they have dormitory shortage, they face long delays at dumping grounds as well as the shortage of engineers, architects and so on.
\tMr Khaw Boon Wan: Madam, the Acting Manpower Minister has repeated several times that there will be no turning back on this tightening policy. Let us forget about options or possibilities of further relaxation. If you look at the growth of the foreign worker population for the last few years, the construction sector is really a laggard in productivity. The bulk of the increase in foreign worker numbers is really due to this sector.
We are determined to work together with the construction industry to try to upgrade and raise productivity. For the private sector, they can take reference from what HDB is doing. Even HDB itself will continue to push the frontier. Our internal guidelines state that by 2020, we should try to push up our productivity by another 20% to 25%, if possible.
Let us forget about the option that we would go back to the good old days of freely available cheap, unskilled foreign workers. We just got to press on with the job of raising productivity. The tightening is necessary. Yes, there is heavy pressure on us to deliver on building more HDB flats and also MRT trains and so many other infrastructural projects. We must work together as a team, together with the developers, contractors, engineers and the architects, to try to achieve productivity that has been achieved in other countries. Indeed, we have been talking about this for a long time. I remember when I joined the Civil Service 36 years ago, we have been talking about productivity being very low in construction. Thirty six years later, now that I am in MND, we are still talking about this subject.
The 45% MYE reduction is hefty, but is doable and we have been watching how our HDB contractors perform. They have been able to achieve that. We monitor their utilisation of foreign workers outside the MYE quota, it remains at single-digit percentage. That is a very good sign.
As I said, I believe that this can be done and can be achieved and let us work hard at it. Senior Minister of State Lee Yi Shyan is chairing an inter-Ministry committee because this work involves many agencies to try to make sure that this tightening policy maximises the upside that we hope to achieve. And what is the upside? The upside is increased productivity in the construction sector, and minimise the downside. What is the downside? The downside is delay in project completion or costs may go up. But if you do it well, we may be able to maximise upside with minimal downside. That is the intent that we want.
\tPage: 25
On precast and prefabrication yard difficulties, their difficulties are my difficulties and we intend to work together as a team. Because when they succeed, I succeed.
\tMs Foo Mee Har (West Coast): I would like ask the Minister a supplementary question. Given the Minister's assurance to keep BTOs prices low, yet the cost of building will invariably be higher due to the higher foreign worker levies. How can we account for the additional cost that the Government will need to bear, going forward? Even though the Minister said that some of the tenders have not come in but, I guess, the cost escalation will invariably be pushing upwards. Could the Minister share how the Government is going to address this cost that the Government is looking to undertake?
\tMr Khaw Boon Wan: As I said, we are still awaiting new tender bids to come in and we will see. Tender bids, of course, partly depend on cost of the operator but also on the competitiveness in the industry. So far, there has been good stability in HDB tender bid prices in the last couple of years, which have been very reassuring for me. But even if tender costs should go up, we have already delinked the BTO prices from resale price index, which is the subject of the next question. If, indeed, it comes to that, then the Government subsidy just grows, and we will absorb that increased cost so that we can continue to be able to achieve the objective of ensuring affordability of HDB flats.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Impact of New Pricing Policy on BTO Flat Prices","subTitle":null,"sectionType":"OA","content":"7 Mr Png Eng Huat asked the Minister for National Development what are the average price ranges for new 3-room, 4-room and 5-room flats within the same mature and non-mature estates 12 months before and after HDB de-linked BTO flat prices from resale market prices.
The Minister for National Development (Mr Khaw Boon Wan): Mdm Speaker, as I said, we have stabilised BTO flat prices by delinking them from the resale market. This is done by increasing the Government subsidy so that BTO flat prices do not follow the same extent of resale price increases. Let me illustrate with examples in three towns: Punggol, Sengkang and Tampines. These are the three towns where we have launched a good supply of BTO flats since 2010 and, therefore, they have comparative pricing data as requested by the Member.
\tPage: 26
In Punggol, 3-room BTO flat prices were between $150,000 and $210,000 in 2010, and remained the same in 2011 and 2012. Four-room flat prices were between $240,000 and $330,000 in 2010. They increased slightly to between $260,000 and $340,000 in 2011 and stayed at that level in 2012. Five-room flat prices were between $330,000 and $410,000 in 2010 and remained stable in 2011 and 2012.
In Sengkang, 3-room flat prices were between $120,000 and $170,000 in 2010, increased to between $130,000 and $210,000 in 2011, and stabilised at between $150,000 and $190,000 in 2012. Four-room prices were between $200,000 and $280,000 in 2010, increased to between $230,000 and $340,000 in 2011 and remained at that level in 2012. Five-room prices were between $280,000 and $350,000 in 2010, increased to between $290,000 and $420,000 in 2011 and moderated to between $280,000 and $410,000 in 2012. I am sorry for presenting so much data, but that is at the request of the Member.
In Tampines, a mature estate, we did not have a BTO launch in 2010. But because this is the only mature estate where there are some comparative data, I have to quote Tampines as an example. Flat prices for projects launched in 2011 and 2012 were similar: between $180,000 and $240,000 for a 3-room flat, between $290,000 and $360,000 for a 4-room flat, and between $370,000 and $440,000 for a 5-room flat.
The BTO prices are not identical as every BTO project is unique, with differences in location and flat attributes. But by and large, we have kept the BTO prices steady, even though resale prices have risen. And we will continue to do so, until the market stabilises.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Trend for Singapore's Inflation Rates","subTitle":"Impact of tight labour market policies on inflation","sectionType":"OA","content":"8 Ms Tan Su Shan asked the Minister for Trade and Industry (a) whether Singapore's inflation rates will decline and whether this will reflect the underlying cost of living in Singapore; and (b) whether the tight labour policies will continue to drive structural inflation higher and keep price pressures elevated for a longer period.\t
\tThe Second Minister for Trade and Industry (Mr S Iswaran) (for the Minister for Trade and Industry): Mdm Speaker, the consumer price index
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(CPI) inflation declined from 5.2% in 2011 to 4.6% last year. In the first two months of this year, inflation further moderated to an average of 4.2%. Over the same period, CPI less imputed rentals on owner occupied accommodation, a measure which relates more directly to the actual cash spending of households, was lower at 3.7%.
In terms of the drivers of CPI inflation, the two largest contributors last year were accommodation costs, particularly imputed rentals on owner occupied accommodation, and car prices. Nevertheless, housing rental growth has slowed more recently and, if sustained, would lead to a slower pace of increase in accommodation costs. Certificate of Entitlement (COE) premiums have also moderated with the recent policy changes to tighten car loans, although they remain volatile and would need to be monitored closely. In all, we expect accommodation costs and car prices to account for around three-fifths of inflation this year.
Imported inflation is expected to be benign this year. In particular, food price inflation moderated from 3.1% in 2011 to 2.1% in 2012, and further to an average of 2% in the first two months of 2013. Similarly, in tandem with a decline in global oil prices from the peak in March 2012, prices of oil-related items, including fuel and utilities, have trended downwards since the second half of last year. In the first two months of 2013, the prices of oil-related items were 0.8% lower on average compared to a year ago.
Another driver of inflation is services costs. We recognise that as the economy restructures towards productivity-driven growth, tight labour market conditions may lead to an increase in wage costs during the transitional period. In turn, this could exert upward pressure on the prices of some consumer services, especially those with high labour content. However, as the Government is helping companies to defray some of the wage increases over the next three years through the Wage Credit Scheme, the pass through of higher wages to consumer prices is likely to be dampened. The Government is also committed to helping companies raise productivity through the various productivity initiatives. In the longer term, with productivity gains, firms will be able to afford higher wage costs and cope with higher business costs, without having to pass on the increased costs to consumers.
Taking into consideration the above factors, MTI and MAS expect CPI inflation for the whole year to come in at 3.5% to 4.5% at this stage. The forecast will be reviewed in the upcoming MAS' Monetary Policy Statement on 12 April.
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\tMs Tan Su Shan (Nominated Member): I thank the Second Minister for the reply. Madam, the CPI figure for February was 4.9% and that is going up from a very high base last year. My follow-up question is: is the Government or policy-makers differentiating between long-term structural issues such as a tighter wage market as well as higher rentals across the market versus the short-term tactical changes of lower COEs or lower prices caused by loan curbs? For example, just raising wages will not necessarily lead to productivity rises in the long term. If our structural labour policy leads to structural inflation, will this be a long-term sticky issue for Singapore and Singapore businesses?
\tMr S Iswaran: Madam, I thank the Member for her supplementary question. The question really pertains to how we look at the issue of inflation and we have to look at it in totality. Whilst we can talk about long-term and short-term movements, it is the aggregate that impacts the overall CPI number and any other measures of price inflation.
Having said that, the Member used the term \"structural\" several times. By that, she means that there could be a wage cost price spiral, and I think that is the thrust of her question. I want to emphasise that it is not axiomatic that just because wages increase that prices must go up, and inflation must be a consequence, because the key elements here are whether those wage increases are underpinned by productivity and other enhancements in the economy. That is why in our measures, we are not just talking about support for wage increases by companies, which is an important part of the transition process, but also a key part of the strategy is to work on productivity at the national level, at the sectoral level and at the company level. So, we have to look at the real economic outcomes as well as the impact on prices through wage increases in order to draw a conclusion over a longer term. It would be too early to conclude that wage increases\tper se, as a result of our tighter labour market, will lead to longer term inflationary trends.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Staff Adequacy at Public and Private Hospitals","subTitle":null,"sectionType":"OA","content":"9 Mr Gan Thiam Poh asked the Minister for Health (a) whether the prevailing doctor-to-patient ratio and healthcare staff-to-patient ratio in both public and private hospitals are adequate in meeting the needs of an ageing population in the next 10 years; (b) what are the measures taken to ensure that the public hospitals are adequately staffed; and (c) whether the Ministry will increase the emphasis and investment significantly in preventive healthcare in
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the face of our ageing population.
\tThe Minister of State for Health (Dr Amy Khor Lean Suan) (for the Minister for Health): While indicators like the doctor-to-patient ratio and healthcare staff-to-patient ratio are useful in providing a broad comparison across time and across countries, we need to be mindful of the differences in clinical practices and operating environments across different institutions and countries.
Between 2007 and 2012, Singapore's doctor-to-population ratio improved from 1:620 to 1:520. Similarly, our nurse-to-population ratio also improved from 1:205 to 1:154.
To meet the needs of a growing and ageing population, my Ministry has worked with the public healthcare clusters to expand our pool of public sector healthcare professionals. The number of doctors in the public sector has increased by more than 50% since 2007 to around 6,200 in 2012, while the number of nurses has increased by about 70% to 21,000 over the same period. The pay of healthcare professionals has also been enhanced in 2012 to be more competitive against the market, to better attract and retain healthcare professionals in the public healthcare sector.
At the upstream training level, we are expanding intakes to meet the projected additional 20,000 more healthcare professionals needed by 2020. The medical intake will further increase this year by another 50 students with the opening of Singapore's third medical school, the Lee Kong Chian School of Medicine at NTU, bringing the total medical intake to around 400. This will further increase to 500 over time. Likewise, we will increase the nursing intake to 2,700 eventually.
We are also working with the public healthcare clusters to optimise the use of our public healthcare workforce through productivity measures. These continuous efforts to improve workflow, redesign jobs and better utilise technology will not only drive efficiency gains and savings in operating costs, but will also provide higher job satisfaction for the healthcare workers.
We agree with Mr Gan Thiam Poh that there should be an increase in emphasis and investment in preventive healthcare in the face of our ageing population. In view of this, we are investing in the promotion of healthy lifestyles, including the adoption and maintenance of good dietary habits and regular physical activity, as well as leading a smoke-free life. We are also
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encouraging regular health screenings to facilitate early detection and management of chronic diseases. The Integrated Screening Programme (ISP) was introduced in 2008 to encourage Singaporeans aged 40 and above to screen for chronic conditions, including diabetes, high blood pressure and high blood cholesterol. To improve the health of our adult population, who will become the next generation of elderly Singaporeans in time to come, we have implemented the Workplace Health Promotion (WHP) programme to provide a comprehensive support infrastructure for companies to introduce health promotion policies, activities, and programmes for their workforce.
In addition to health promotion, we are investing in good primary healthcare. The Chronic Disease Management Programme (CDMP) available at enrolled GP clinics works in conjunction with the Community Health Assist Scheme (CHAS) to ensure the accessibility and affordability of medical treatment for persons with chronic conditions in the community. These help improve individuals' health outcomes as well as prevent the deterioration of the chronic conditions and the development of complications later in life.
As part of the public consultation on the Healthy Living Master Plan that was announced at the recent Committee of Supply Debate, my Ministry will get feedback and suggestions on how we can make healthy living, including preventive care, a part of our everyday fabric. The on-going review of our healthcare financing framework will also cover our funding framework for preventive health to ensure that it remains affordable and accessible to all Singaporeans.
\tMr Gan Thiam Poh (Pasir Ris-Punggol): I thank the Minister of State for the comprehensive reply. I just want to find out how the current ratio compares with those of other countries, both developed and developing. Will MOH also look into contingency plans should there be a sharp increase in demand, such as an outbreak of bird flu, and whether the current strength is sufficient enough to meet the challenges? Will MOH also consider planning for extra manpower in case there is a sudden rise in demand? Will MOH think about looking into improving the ratio further from the current level?
\tDr Amy Khor Lean Suan: For the healthcare manpower ratios, as I have noted in my reply earlier, these basically provide a broad level comparison of the adequacy of healthcare manpower across time and countries. We need to be mindful that we need to take into account differences in demographic and epidemiological profiles, healthcare systems and legislations in order to make the
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comparisons more informative and useful.
As regards our current healthcare manpower ratio, the common ratio used is the healthcare manpower-to-population ratio. Thus, doctor-to-population, and nurse-to-population ratios. For these ratios, they are comparable to those of developed regional economies which have a similar proportion of elderly, such as South Korea, Hong Kong and Taiwan.
As I have noted, we expect to expand our healthcare professional workforce by about another 20,000 by 2020 to take into account the growing and ageing population. By 2030, we expect to expand our healthcare professional workforce by about 32,000 staff, as well as about 9,000 support care staff. With this expansion, our doctor-to-population and nurse-to-population ratios are likely to remain broadly comparable internationally with economies with similar economic development and ageing demographics.
As regards the need to address pandemic outbreaks, such as SARS or H1N1, we have learnt from our experience with SARS and H1N1 and also with the surge in dengue cases previously, so we have put various processes and measures in place to deal with such a surge in cases due to, say, H1N1 or SARS. In the event of an outbreak of a pandemic, the public healthcare institutions would temporarily cut back on elective surgeries, outsource certain services where possible, bring back temporary healthcare support staff where appropriate, and redeploy the staff to tackle the higher load due to the pandemic. So, by cutting back, say, for instance, the electives, we will be able to redeploy some of these staff. Manpower could also be deployed across various healthcare systems, depending on where the loading and the need is. These are some of the measures that we will put into place in the event of a surge in cases.
\tMr Zainudin Nordin (Bishan-Toa Payoh): A supplementary question, Madam. I am very happy to hear from the Minister of State about the recruitment increase in nurses and allied health workers. But is the Minister of State aware about the difficulty to recruit students into the nursing courses and the allied courses like physiotherapy, occupational therapy and radiography? These are areas where workers are really in demand and in need in Singapore. I hope we will look also into ways of how to promote such occupations and the ways to encourage our younger generation to consider such careers in the healthcare industry.
\tDr Amy Khor Lean Suan: I thank Mr Zainudin for the question. Indeed, it is a challenge to recruit, especially upstream in terms of attracting school
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leavers into the various healthcare courses.
Recently, in the COS, the Minister has also said that we have gone on a campaign to promote these various healthcare professions, such as nursing and the allied healthcare professionals (AHPs), particularly the school leavers, with the intention of attracting more into the courses at ITE, Polytechnics as well as at the Universities. The response so far to this campaign in terms of advertisements on TV, radio, online and so on has been positive. We will continue to do what we can to promote this in terms of showcasing the good work done by the nursing profession, the AHPs and so on. They are very noble professions and we should continue to promote these professions and create awareness among the school leavers.
Of course, as I have noted earlier also, we have reviewed the pay of the healthcare professionals and we have also put in place career pathways and development for the various healthcare professionals, such as nurses, AHPs and doctors, and we hope that that will also help to attract and retain healthcare professionals.
\tDr Lam Pin Min (Sengkang West): I would like to thank the Minister of State for reassuring us that the doctor-to-patient ratio in Singapore is relatively healthy compared to other developed countries. I would like the Ministry to look in detail at the number of specialists in areas, such as geriatrics as well as rehab medicine, since these specialties are more relevant in looking after the elderly population. I would also like to know whether MOH has plans to encourage more doctors to take up specialty training in these areas.
\tDr Amy Khor Lean Suan: The short answer would be \"yes\". In addition to projecting our healthcare manpower needs based on population demographic profile, as well as on the epidemiological profile, we would also need to look specifically at the different specialties required among the doctors. One of the areas that we need to look at is to promote or encourage doctors to go into specialties that will be increasingly in demand, for instance, in geriatric care.
\tMr Yee Jenn Jong (Non-Constituency Member): Thank you, Madam. I would like to ask the Minister of State two supplementary questions. I noticed that there has been quite widespread use of medical officers from non-traditional sources (NTS MOs) in the medical institutions. My first supplementary question is whether there will likely be further significant increases in the use of NTS MOs to supplement shortages in the hospitals,
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especially to fill up these 20,000 places. And what would be the likely ratio to doctors from traditional sources.
My second supplementary question is: what are the measures to ensure that these NTS MOs are sufficiently equipped, both in medical skills as well as the ability to converse in local dialects and languages with our patients, especially since our elderly patients may not speak English.
\tDr Amy Khor Lean Suan: Our key objective is to build up a core of Singaporean healthcare workforce. So, in addition to increasing our upstream intake of doctors to the medical schools – and I have noted that we are increasing the placements or number of places in our medical schools, especially with the addition of a third medical school – we are also increasing the number of places for our pre-employment grant for doctors, that is, foreign-trained Singaporean doctors. We are trying to attract them from the various countries, of course, from accredited institutions.
In addition to that, there is definitely a need to supplement our healthcare manpower with foreign manpower and we have said that a number of times. Whilst we will take in foreign manpower, say for doctors and so on, they must also be from recognised institutions. If they are not, they will not be registered. They will be working as support staff and there will be requirements for them to undergo further training and registration. I do not have the ratio at this point in time. If the Member wishes, he can submit another question.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Consumer Education on Premium Rate Services Provided by Telecommunications Companies","subTitle":null,"sectionType":"OA","content":"10 Mr Lim Biow Chuan asked the Minister for Communications and Information whether IDA will take action against telecommunication companies which allow third party content providers to mislead consumers into taking part in expensive quizzes and contests without adequate notification about the costs of participation.
\tThe Minister for Communications and Information (Assoc Prof Dr Yaacob Ibrahim): Madam, Premium Rate Services (PRS) are value-added services which are typically provided over mobile telecommunication networks via SMS messages. These SMS messages cost more than a typical SMS as they include the provision of chargeable content, such as news alerts, weather or traffic
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updates or information, ringtone downloads, game credits, quizzes, contests, chat services and fund-raising services. The charges may be applied on a subscription basis, weekly or monthly recurring charges, or for each SMS message sent by the PRS operator or by the subscriber.
Madam, IDA will take enforcement action against telecommunication operators or PRS providers, which we call \"licensees\", where rules on the provision of PRS services are flouted.
Since 2007, IDA has put in place a Code of Practice for the Provision of PRS. The Code sets out the duties for PRS providers and their billing network operators to prevent accidental subscriptions and wrongful charges for unsolicited service. For example, PRS providers must clearly publish the prices, terms and conditions of their services. This information is displayed upfront within their advertisements. Before the PRS providers charge end users for the services, PRS providers must ensure that consumers take explicit steps to subscribe to the service, such as sending a purchase confirmation to the PRS provider via a distinctive prefix number \"1460\". This is to help consumers easily identify these providers to be offering chargeable services. Only upon receiving such confirmation will PRS providers activate the service.
Licensees can be fined up to $1 million or 10% of annual gross turnover, whichever is higher, per contravention. Repeat offenders could also have their licences suspended or cancelled. To-date, Madam, IDA has taken enforcement action in 26 PRS cases. Such action ranged from the issuance of warnings to the imposition of financial penalties commensurate to the degree of contravention. For five cases, warnings were issued without financial penalties, whereas financial penalties were imposed for the remaining cases, with the highest being $100,000.
IDA has implemented additional measures to further protect consumers' interest. Since February 2012, IDA has required mobile operators to offer consumers the option of barring PRS and not be billed even if they may have accidentally subscribed to them. Consumers need to activate the barring service if they do not wish to receive PRS.
Madam, aside from these regulations, we would also advise consumers to remain alert and vigilant. For the more vulnerable groups like young children and the elderly who may use mobile phones, parents or caretakers could choose to activate the PRS barring service for these users or educate the users
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to be more careful when subscribing to such services.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Submission of Singapore Botanic Gardens for Consideration as UNESCO World Heritage Site","subTitle":null,"sectionType":"OA","content":"11 Asst Prof Tan Kheng Boon Eugene asked the Acting Minister for Culture, Community and Youth (a) what are the considerations and reasons for submitting a tentative World Heritage Site listing for the Singapore Botanic Gardens; (b) whether there are plans to submit other sites for consideration as UNESCO World Heritage Sites; and (c) whether the public will be engaged in future submissions.\t
\tThe Acting Minister for Culture, Community and Youth (Mr Lawrence Wong): Mdm Speaker, the tentative listing of the Singapore Botanic Gardens is part of the process to gain inscription for the Gardens as a World Heritage Site. Through this process, we hope that more Singaporeans will come to appreciate the rich heritage and cultural significance of the Singapore Botanic Gardens, beyond its obvious natural beauty.
The decision to submit a listing for Singapore Botanic Gardens was taken based on a study commissioned by then-MICA, which was done in consultation with experts, academics and other stakeholders. This decision was also taken after some members of the public expressed their support for the Botanic Garden's listing.
The study then showed that the Botanic Gardens has a strong case for nomination as a cultural site. It fulfils UNESCO's rigorous assessment criteria of having outstanding universal value and having made important contribution to the region and the world. It has also had significant impact on the cultural and natural developments of the region.
For instance, the Gardens' history parallels the development of Singapore and the regional economy – rubber seeds grown at the Gardens were distributed to plantation owners around the region, which propelled the growth of the rubber industry and the development of Singapore from a small fishing village to one of the world's busiest ports in the early 20th century.
Above all, the Botanic Gardens is a cultural site well-loved by all Singaporeans from all walks of life over the years. As far back as 1959, it was
\tPage: 36
the venue for a multi-cultural concert where for the first time, Malay, Chinese and Indian performances shared the stage. Today, many Singaporeans exercise in the Gardens and attend the free concerts that are held there from time to time.
My Ministry, together with NHB, will continue to work with NParks and other stakeholders, to secure the inscription of the Singapore Botanic Gardens as a World Heritage Site, and more importantly, to share the heritage value of the Gardens with many more Singaporeans.
As we work towards achieving Singapore's first World Heritage Site, we will need strong support from all Singaporeans. The Member also asked about future submissions. At this stage, we have no plans to submit other sites for tentative listing because we would like to focus on the current bid for the Singapore Botanic Gardens. If and when we consider any future submission, we will certainly continue to engage stakeholders and the public.
\tAsst Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Speaker, I thank the Acting Minister for his reply. I am heartened to hear that he regards the importance of strong support from all stakeholders. Given that that is the case, I would like to ask the Acting Minister why there was a rather long silence given that Singapore chose to ratify the World Heritage Convention and also sought a tentative listing for the Singapore Botanic Gardens last year.
Two other supplementary questions, Madam. One relates to the consultants. Would the Acting Minister enlighten us as to how the consultancies were awarded, for example, whether there was a tender called? If not, why? The choice of the Singapore Botanic Gardens is uncontentious. It is a popular choice. I certainly hope that the Government will try to seek the extensive local knowledge that is available which will certainly enhance our submission for the inscription of the Singapore Botanic Gardens as a World Heritage site.
\tMr Lawrence Wong: I am not sure what the Member meant by long silence. I would say this. The process started quite some time back in 2010. I was not involved in it personally but I looked at the files, I looked at the records. There was consultation done with different groups, stakeholders and heritage groups. The Singapore Heritage Society was consulted. They were supportive of the bid. When the then-MICA and NHB decided to move forward, they went ahead to make the submission for the tentative listing but we were not sure that we would be able to get even a tentative listing. I suppose at that stage, the sense was that there was no need to tell people that we were making this first step for a tentative listing yet because there was no certainty that we would
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even get a tentative listing. Now that we are on a tentative listing, then we are ramping up the efforts to make a formal submission for inscription as a World Heritage site. It is a continuous effort, starting with engagement and consultation.
On the consultancy that was done, I do not have the details, but I am sure it was done in accordance to Civil Service procurement rules as with any other procurement for consultancy services. So, there was a consultancy service done at that stage, again, when this process started. They looked at various sites that were discussed with the stakeholders then. Then, based on the consultancy study, the Singapore Botanic Gardens was chosen as the best site for submission as a tentative listing for the UNESCO World Heritage Site.
\tMs Janice Koh (Nominated Member): Mdm Speaker, I have two supplementary questions for the Acting Minister. The first is: given that the guidelines under the UNESCO World Heritage Convention oblige governments to embark on consultation processes over the identification and nomination of potential heritage sites, was there any public engagement and communications undertaken in the lead-up to the nomination of the Botanic Gardens, and if not, why not?
My second supplementary question is: how will signing the 1972 World Heritage Convention change the way the Government is currently engaging with local NGOs and community interest groups in terms of identifying future potential sites and future submissions, especially in light of the fact that potential sites require legislative protection by governments before they can receive UNESCO World Heritage status?
\tMr Lawrence Wong: I think I answered the first question earlier, that there was, indeed, consultation done in the lead-up to even identifying the Singapore Botanic Gardens. It was not the only site that was highlighted as a possibility. There were a few sites that were considered at that time. There were different views and people had expressed their views. In fact, if you would just google Singapore Botanic Gardens – which I did, incidentally, because I was curious about what happened in the past – you will find people talking about the listing of the Singapore Botanic Gardens way back in 2009 and 2010. It is there on public record.
On the signing of the Convention and what it means for the future, I think it means a stronger commitment to heritage and it means that my Ministry and NHB will do even more to engage different stakeholders on the importance of
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heritage, with regards to the different sites in Singapore and how we can make an even greater effort to preserve and recognise heritage value in the sites that are important to us.
\tMs Faizah Jamal (Nominated Member): Mdm Speaker, my supplementary question is this: the Acting Minister mentioned that there were other sites that were considered. Would the Acting Minister enlighten us as to what these sites were, before deciding on the Singapore Botanic Gardens?
\tMr Lawrence Wong: Various sites were discussed at that time, including the Civic District, the Bukit Timah Nature Reserve, Haw Par Villa, the former Ford Factory. These were some of the sites that were discussed at that time. Different stakeholders had views about the heritage value and they were all valid. Eventually, the consultancy study identified amongst these sites, the Botanic Gardens as the one with the best heritage potential – which would have significant heritage value and also the best potential in terms of inscription for a World Heritage Site listing.
Mdm Speaker: Ms Irene Ng, next question, please.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Accidents at Pedestrian Crossings","subTitle":null,"sectionType":"OA","content":"12 Ms Irene Ng Phek Hoong asked the Deputy Prime Minister and Minister for Home Affairs for each year from 2008 to 2012, what is the number of accidents at pedestrian crossings involving vehicles and what is the number of fatalities and injuries involving pedestrians and cyclists hit by vehicles at these crossings.\t
\tThe Second Minister for Home Affairs (Mr S Iswaran) (for the Deputy Prime Minister and Minister for Home Affairs): Madam, over the past five years, there were on average 82 accidents a year which involved pedestrians or cyclists and vehicles at pedestrian crossings. This accounts for 1% of total accidents island-wide each year.
On average, three pedestrians and one cyclist lost their lives while 55 pedestrians and 21 cyclists were injured in such accidents each year. On the whole, the number of pedestrian and cyclist casualties at pedestrian crossings has declined by 63% since 2008, from 144 to 54 in 2012. There is a similar trend
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in the number of accidents at pedestrian crossings as well.
The Traffic Police will continue its education, engagement and enforcement efforts to ensure road users abide by traffic rules. LTA also reviews infrastructural measures regularly to make pedestrian crossings safer. At the same time, we also need pedestrians and cyclists to be alert, and practise good habits when using pedestrian crossings.
\tMs Irene Ng Phek Hoong (Tampines): Mdm Speaker, there is evidence that motorists are becoming more impatient on roads. Cars would butt into the pedestrian crossings at turnings and drive across even when pedestrians are using the crossing. I have three supplementary questions. I would like to ask the Second Minister if he would consider changing traffic rules so that all vehicles come to a stop behind the stop line at the junction with the traffic light red for vehicles, whenever it is green for pedestrians, and that motorists not be allowed to turn around the bend until the red man at the pedestrian crossing appears. This may lose a few seconds for the motorists, but may save the lives of pedestrians and cyclists using the crossings.
Second, I would like to ask the Second Minister if he could mount a road safety campaign dedicated to pedestrian and cyclist safety, and educating motorists to look out for them at crossings. And finally, would the Second Minister consider imposing stricter penalties on motorists who hit and kill pedestrians at crossings?
\tMr S Iswaran: Madam, I thank the Member for her suggestions and I think we all share her concerns for the safety and well-being of all road users. On the traffic signals, this is a matter under the LTA and there is a Committee chaired under MOT's leadership on pedestrian and cyclist safety. This is something they are looking at. We will certainly convey the Member's suggestions to them.
Secondly, on road safety campaign, we have an on-going effort in terms of ensuring road safety awareness for all road users – motorists through the Basic Theory and other forms of training for their driving, as well as for pedestrians, whether it is children through the Road Safety Park and other road safety efforts, or the elderly through the Road Safety Ambassadors programme. We are continuing this effort – the Traffic Police, in particular – in order to not just work on enforcement, but also on engagement and education. These are important pillars, as the Member has highlighted. We will continue in this regard.
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I want to assure the House and Members that education and engagement will continue to be important parts of the effort to promote road safety in Singapore. On enhanced penalties, the numbers as they suggest do not indicate an increasing trend. The trends, if any, have been falling. We have already introduced a range of measures recently to promote greater road safety but we will closely monitor this and are prepared to take action, if necessary.
Mdm Speaker: Order. End of Question time.
[Pursuant to Standing Order No 22(3), Written Answers to Question Nos 15, 17, 22-23, 25-26, 30, 33-35 and 38-41 on the Order Paper are reproduced in the Appendix. Question Nos 13-14, 16, 18-21, 24, 27-29, 31-32, 36-37 and 42 have been postponed to the next available sitting of Parliament.]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Fire Safety (Amendment) Bill","subTitle":null,"sectionType":"BP","content":"[(proc text) Order for Second Reading read. (proc text)]
The Senior Minister of State for Home Affairs (Mr Masagos Zulkifli B M M): Mdm Speaker, I beg to move, \"That the Bill be now read a Second time.\"
We last amended the Fire Safety Act in 2004 to implement a performance-based regulatory system for buildings and to extend regulatory control over non petroleum-based flammable materials. These amendments strengthened our fire safety regime and contributed to Singapore's success in maintaining its good track record in fire incidences and fatalities. In fact, Singapore's fire fatality rate is lowest when compared to major cities such as Hong Kong, Tokyo, New York and London. We had 0.02 fire fatalities per 100,000 population in 2012.
We have recently completed a review of the fire safety enforcement framework, taking into account changes in our industrial structures, lessons and experiences from major incidences both locally and overseas.
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Arising from the review, we are introducing this Amendment Bill with the aims of strengthening the operational effectiveness of the SCDF and raising the fire safety standards of buildings and premises. SCDF will keep up its tempo of inspections and will take action against those who do not comply with fire safety regulations. We will also enhance measures against those who repeatedly flout the law.
One example is the People's Park fire on 21 April 2010. The fire occurred at the fifth level of the multistorey car park. Post fire investigation revealed that there were extensive illegal fire safety works, with full height partitioning segregating part of the car park into storage facilities. Apart from contributing to the fire load with excessive storage of combustibles, the unauthorised partitioning covered up the original openings at the fifth level of the car park and impeded the natural ventilation. These resulted in a heavily smoke-logged environment which made it very difficult for SCDF to put out the fire. Due to the severity of the fire safety violations and consequences, the management was brought to Court and fined the maximum sum of $60,000 on two charges involving unauthorised fire safety works and change of usage.
Madam, let me now elaborate on the key amendments.
Currently, Commissioner SCDF is empowered to order the owner or occupier to close the identified premises for a period not exceeding 72 hours if a previously issued Fire Hazard Abatement Notice (FHAN) has not been complied with. Two conditions have to be met for the closure to take effect.
First, the fire hazard constitutes an immediate or substantial danger of fire within the premises, or if a fire breaks out in or on the premises, it is likely the fire hazard will increase the normal risk to life.
Second, the safety of persons within the premises cannot be reasonably ensured by any other means.
Clause 13 amends the second condition such that the Commissioner's Closure Order (CCO) may be issued when it is \"necessary for the safety of persons that the premises should be closed immediately\". This will allow the SCDF to act quickly and decisively to address fire safety violations.
Clause 13 gives SCDF additional powers to deal with recalcitrant offenders. Currently, the CCO has to be rescinded once the fire hazard is abated. However, there may be premise owners who continue to violate the fire safety
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requirements, such as permitting overcrowding, once SCDF's inspectors leave the site. Clause 13 gives the Commissioner the authority to effect the CCO for up to the full duration of the 72 hours, even after the fire hazard has been abated. This will only apply to a small group of premise owners that have a poor track record and where SCDF deems it necessary for the safety of persons that the premises be closed immediately. The premise owner will be considered to have a poor track record if he has had three or more court convictions for fire hazard offences during the past 24-month period. Imposing the CCO will send a strong signal to recalcitrant premise owners. However, I would like to assure all Members that the CCO will only be used as a last resort. As far as possible, SCDF will rely on other measures such as fines and court-imposed closure orders to compel premise owners to put in place the required abatement and mitigation measures.
Mdm Speaker, in January this year, a fire broke out in a nightclub in Brazil resulting in more than 200 fatalities. This is indeed very tragic. Preliminary findings have revealed that the high death toll was due to numerous fire safety lapses such as faulty fire extinguishers, absence of clear exit lights and overcrowding. This incident illustrates the importance of compliance with fire safety requirements, otherwise there could be dire consequences.
The Amendment Bill also proposes to increase the penalties for certain categories of fire safety offences and notices of composition. This is to align the penalties with similar offences under the Building Control Act and ensure that the penalties continue to have a deterrent effect. The fire safety offences affected include unauthorised fire safety works, failure to supervise fire safety works, non-compliance with closure orders and continuing offences. In particular, the penalties for serious offences such as unauthorised fire safety works and failure to supervise fire safety works will carry an increased fine of $200,000 and/or 24 months imprisonment compared to the current fine of $50,000 and/or 12 months' imprisonment.
Improving Fire Safety Provisions. Clause 17 amends section 21, which deals with fire emergency plans, by renaming the Fire Emergency Plan required for designated premises as an Emergency Response Plan (ERP). The intention is to require owners of designated premises to draw up plans to cater not only for fire emergencies, but also for fire-related emergencies, such as gas leaks and chemical spillages, that may cause injury or the loss of lives. The Emergency Response Plan will also require owners of designated buildings to notify the SCDF immediately in the event of a fire-related mass casualty incident, which is defined as having 10 or more casualties.
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Clause 18 amends section 22 to require premise owners of designated buildings with Fire Safety Managers (FSMs) to also appoint Company Emergency Response Teams (CERTs) for the premises. This will expand the coverage of the CERT scheme which has been implemented for the chemicals sector since 2008. The function of the CERT is to respond immediately to emergencies prior to SCDF's arrival in an emergency situation. Time is of the essence in an emergency and the CERT provides a first line of defence in mitigating incidents. Having a competent and well-trained CERT minimises the risks to lives and property, and disruptions to operations. A good example is Exxon Mobil's CERT team which was mobilised when a fire occurred at one of its pumps on Jurong Island in April 2011. The CERT was immediately activated to assist in the emergency. Because of the fast response rendered by the CERT prior to SCDF's arrival, the fire was extinguished within five minutes, preventing further damage to other parts of the premises.
Enhancing Investigative Powers. Clause 10 inserts new sections 8B and 8C to enhance the investigative powers of SCDF officers. Currently, SCDF's fire investigators have the powers to collect samples of substances for analysis and evidence during fire investigations, only if the substances are petroleum or flammable materials. Fire investigators have to be empowered by the Police to collect other types of evidence. The proposed amendments will allow fire investigators to collect any samples required to test for fire resistance or flammability. They will also be able to retrieve any other materials to assist them in their investigations, or as evidence.
The scope of SCDF's investigative powers will also be extended to include means of transportation such as vehicles, vessels and aircraft. There are over 100 vehicle fires in Singapore per year and it is important that SCDF's officers have the powers to investigate such fires. SCDF will also be able to detain or impound vehicles and aircraft to establish the cause of fires.
Control of Petroleum and Flammable Materials (P&FM). SCDF is the regulatory body for Petroleum and Flammable Materials (P&FM), and it currently regulates the import, storage and transport of such materials. The current licensing regime authorises SCDF to stipulate control measures and carry out inspections, audit checks and enforcement actions. Clause 40 inserts a new section 36A into the Act, to extend this licensing regime to cover pipelines conveying P&FM. As more pipelines are developed, there is a need to ensure that they adhere to the relevant design, construction and maintenance standards. The pipeline owner is also required to formulate an Emergency Response Plan (ERP) and establish a Company Emergency Response Team (CERT) that will respond quickly should an incident occur. In accordance with
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the ERP, the CERT will provide an immediate first response to deal with any pipeline incident.
Clause 40 also inserts a new section 36B into the Act, which stipulates requirements for contractors who conduct earthworks in the vicinity of the licensed P&FM pipelines. And the contractors will be required to inform the license holders of their intention to conduct earthworks. Prior to commencement of the works, the contractors will have to take precautionary measures such as marking out the pipelines and maintaining a safety distance from the pipelines. This is important so that earthworks do not endanger the lives of others in the vicinity of the pipelines.
To enable action to be taken against persons who wilfully or recklessly damage P&FM pipelines, clause 40 inserts a new section 36C to create an offence and clause 41 amends section 37 to stipulate penalties for that offence.
Powers for marine firefighting and rescue (MFFR). Clause 10 inserts a new section 8A into the Act to give SCDF powers for marine firefighting and rescue. SCDF took over marine firefighting and rescue functions from the Maritime and Port Authority (MPA) on 1 April 2012. This allowed us to provide an integrated response for both land and sea emergencies. SCDF will also be given the powers to facilitate its operations such as obtaining information on layout plans of ships for the purpose of firefighting and rescue and to investigate fires on board vessels at sea, regardless of the country or registration of the vessel. Clause 45 inserts a new section 43 into the Act to allow SCDF to continue MPA's practice of imposing charges on vessel owners for extinguishing fires or protecting life and property in the event of fires on their vessels, whether in inland waters or at sea.
In summary, Mdm Speaker, this Bill will ensure that we continue to have a comprehensive fire safety enforcement framework and that SCDF will have the necessary powers to carry out its mission to save and protect lives and property. Mdm Speaker, I beg to move.
[(proc text) Question proposed. (proc text)]
Ms Sylvia Lim (Aljunied): Madam, I am in general support of the rationale for the Bill, however, I wish to seek some clarifications on clauses 17 and 18 which require designated buildings to provide Emergency Response Plans and
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to have Company Emergency Response Teams. Specifically, I wish to ask what role SCDF will play to collaborate or partner with building managements to comply with the new requirements, and whether the burden being placed on the fire safety managers under the new scheme is, perhaps, a bit onerous.
First, Madam, the new requirement for emergency, not just fire, plans. Clause 17 amends section 21 of the Act to require owners or occupiers of designated buildings to have in place not just a Fire Emergency Plan but an Emergency Response Plan. The new requirement is supposed to obligate building management to cater for all emergencies, not just fires, that may cause injury or loss of lives. Earlier, in his second reading speech, the Senior Minister of State mentioned that the emergencies should be fire-related but I do not see this restriction in the legislation. So, I would appreciate if the Senior Minister of State could clarify further on the scope of the emergencies to be catered for. Clause 18 will amend section 22 to require that buildings which are currently required to have fire safety managers shall also have competent Company Emergency Response Teams as part of emergency preparedness.
Madam, the need to prepare response plans for emergencies is self-evident, and this is especially so in our high-density urban environment. In addition, the proximity of our homes, workplaces and recreational spaces means that when emergency plans are drawn up for buildings, they should be able to respond to not just critical incidents from within the building but those which could potentially come from nearby facilities and even the external natural environment.
What then is SCDF's optimal collaborative role in emergency planning? Madam, the law currently places the responsibility for emergency planning squarely on the building owners and occupiers. Under the Act as well as Fire Safety (Fire Emergency Plan) Regulations 2008, they have to prepare and execute the emergency plans, conduct regular drills and gather tenants to form Fire Safety Committees. The role of the SCDF itself is reflected as issuing of guidelines about the contents of plans, reviewing records and so on. SCDF's role appears to be as regulator and auditor. Under this Bill, building management will have an even more onerous statutory obligation, with wider coverage to include non-fire emergencies, which will require more specialised expertise. What will SCDF do to assist building management in drawing up the required emergency response plans?
Even though the building management should bear the primary responsibility for the plans, the benefits of SCDF being involved in drawing up the emergency response plans would be tremendous. SCDF could advise on
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matters which the building management has no knowledge of or control over. Examples of such matters would include: the potential emergencies from outside the building which the management should plan for; whether there is potential to share emergency resources with nearby facilities; and even which open areas to use as assembly points, especially at our blistering pace of urban renewal. Worldwide, it is increasingly recognised that public-private partnerships in emergency planning, involving both Government and private organisations, will improve the quality and practicality of the emergency plans. At the same time, through joint efforts, SCDF would have a good grasp of the private sector expertise and resources available which could be tapped on in national emergencies.
Could Ministry explain how SCDF will collaborate with the building managements to comply with the new requirement and to improve the quality of emergency plans? For instance, would SCDF provide a template for building managements to use and adapt?
Finally, Madam, the role of Fire Safety Managers and the Company Emergency Response Teams (CERTs). Clause 18 will amend section 22 to require buildings with fire safety managers to now have CERTs with competent in-house staff. The proposed section 22(3A) states that it is the building owners or occupiers who are required to maintain the CERTs. However, the MHA's Press Release dated 14 January 2013 indicates that it will be the responsibility of the Fire Safety Managers (FSMs) to ensure that the response plan guidelines are complied with, including upgrading the competencies of the in-house teams to form CERTs.
Is this task too onerous for the FSM to be held responsible for? The FSM in a building is likely to be a mid-level employee with several corporate roles, for example, he could be an occupational safety and health officer doubling up as an FSM. To place on him the responsibility of ensuring that competent CERTs are in place which comply with SCDF guidelines on emergency response seems very onerous.
Will the Government assist building managements to comply with this new requirement of CERTs and if so, how? For instance, are there any plans to develop new training courses in emergency response planning to cater specifically to the new statutory requirement for CERTs?
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Mr Arthur Fong (West Coast): Thank you, Mdm Speaker, for allowing me to speak on the Bill. I welcome the Bill's overall objective of raising the fire safety standards of buildings and premises and improving the level of fire safety in Singapore. In particular, I support the move to enhance the preparedness of our people and premises in dealing with emergencies. Emergencies like fires can have severe consequences, causing injuries, deaths and serious damage to property. Hence, acting ahead of the curve and being proactive is important. However, I have some concerns about whether the new requirements may be too onerous for premise owners.
For instance, the Emergency Response Plan covers both fire as well as fire-related emergencies. My question is: how will the owner know what types of emergencies he has to plan for? And in the first place, will the owner know how to draft such a plan, or does he have to engage a consultant? What are, if any, are the requirements for Fire Safety Officers (FSOs) for the various types of properties or buildings?
Secondly, the formation of CERTs requires manpower. Some businesses are already facing labour shortfalls, so I am worried whether the industries, especially the SMEs, are able to cope with this requirement. Can the Minister clarify whether the premise owners are required to hire dedicated staff to form CERTs? Also, who will conduct the training and how long is the training for?
Lastly, while it is important for premise owners to adopt the Emergency Response Plan and CERT framework to provide a contingency plan and an immediate first response during emergencies, we should also target the general public to educate them on the importance of fire safety and prevention. May I ask what programmes and initiatives does the Ministry have in place to educate the public on fire safety?
I hope the Minister can address my concerns and assure Members that the new requirements will not be onerous for the premise owners. With that, Mdm Speaker, I support the Bill.
Mr Masagos Zulkifli B M M: Mdm Speaker, I would like to thank Mr Arthur Fong and Ms Sylvia Lim for speaking on and supporting the Bill.
Preparedness is key to ensure that the public feels safe even in the event of emergencies and we should not take this for granted. I would like to draw the
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analogy with airlines and how we, as passengers feel safe and confident that the air crew are well-trained and equipped to respond to emergencies. Likewise, premise owners should provide this same level of assurances to those who work and visit their premises.
Let me first address Mr Arthur Fong's concerns on whether the compliance cost will be significant and too onerous on premise owners. I would like to reassure Members that SCDF has conducted extensive consultations with various stakeholders including building owners from the commercial and industrial sectors over the past year.
The stakeholders understood the need for these additional safety requirements and were generally receptive to them. They recognise that being prepared and having a comprehensive Emergency Response Plan, coupled with a competent Company Emergency Response Team (CERT), would help them mitigate incipient incidents and minimise potential damage. Most buildings and premises already have plans for fire-related emergencies such as the In-Place Protection Plan and the Arson Prevention Plan. The Emergency Response Plans (ERPs) serve to integrate all these plans together.
Ms Sylvia Lim asked whether SCDF will be working with premise owners to formulate their ERP and identify the resources required for response. Indeed, SCDF's role goes beyond just auditing and approving plans. SCDF is committed to supporting and working closely with premise owners in the development and formulation of ERPs just as it is doing for the existing fire emergency plans. During the audit process, the SCDF works together with the premise owners to make improvements to their plans and capabilities. SCDF has also published guidelines on for the formulation of such plans on its website. These would serve as a basic template for most plans.
As to the query why the ERP includes fire-related emergencies, this is because FSA is about fire and safety measures, and therefore the ERP includes fire related emergencies. The FSMs are also trained to conduct in-place protection should there be gas leaks or chemical spills that may endanger others in the building.
Mdm Speaker, the Fires Safety Managers, being certified by SCDF, which I believe Mr Arthur Fong was referring to, are trained in both fire and fire-related emergencies to assist premise owners in formulating the ERPs. Should circumstances change, premise owners can also approach SCDF directly for help in updating their plans. Fire stations also conduct regular exercises at
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various premises. In these exercises, SCDF and CERT work together with premise owners to test and validate their plans to ensure they work well holistically.
Through these exercises, greater understanding and synergy are fostered amongst all partners involved so that they will be better prepared in the event of an incident. So, we have to work together, exercise the system so should an emergency happen, we will be ready.
The requirement of CERT has already been implemented for the chemical industries since 2008 and is working very well. The proposal therefore is to extend the CERT scheme to other premises to formalise their existing in-house firefighting teams and raise their competencies. The role of an FSM today is to ensure and enhance the fire safety standard within the premises. To do so, the FSM is trained in basic firemanship, emergency planning and fire safety management. Premises will typically not need additional manpower for CERT as the CERT can be made up of existing FSMs and include members of the buildings, security, maintenance staff and volunteers from the tenants as it stands today.
We have discussed this with the various stakeholders during the industry consultation. I would like to assure Ms Sylvia Lim the assessment is that the compliance requirements are not overly onerous.
In order to cater for the anticipated increase in demand for CERT training, SCDF and WDA are collaborating to start and develop three new CERT courses under the WDA's Workforce Skills Qualifications system with the usual absentee payroll subsidy and up to 90% in course fees support.
Training for CERT members is available at the Civil Defence Academy and also private service providers, such as the Association of Company Emergency Response Teams (A-CERTs). The course duration is typically between one and three days. There are also other benefits to having done or gone through this training. CERT members are trained to conduct basic first aid, CPR and AED so that they can also respond during medical emergencies to render assistance to the public as well as occupants within the premises.
We recognise that there should also be sufficient time for the premise owners to gear up and meet the new ERP and CERT requirements. Hence, SCDF will give premise owners a six-month grace period for ERP and a two-year grace
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period for CERT from the commencement of the Bill.
On public education, SCDF recognises the need to reach out to the public and promote the importance of fire safety and fire prevention. One of its key public education initiatives under the CD Ready Homes Programme is SCDF's collaboration with People's Association's, C2E or Community Emergency and Engagement Committees in conducting Emergency Preparedness (EP) days in the heartlands annually.
The EP days feature exercise which showcase realistic emergencies scenarios like corridor fires and household fires to drive home the importance of emergency preparedness and fire safety. One exercise held during EP days is the Vertical Stretcher Challenge where SCDF has leveraged on the energy and enthusiasm of students to spread important fire safety messages. This exercise, whereby the students race across the corridors with stretchers, serves to educate the community on the importance of having a clutter-free corridor which will aid emergency responders during an emergency.
SCDF also has a comprehensive emergency preparedness school engagement programme that covers all levels from pre-school to tertiary institutions. In addition, SCDF works closely with the National Fire and Civil Emergency Preparedness Council, PA, HDB and Town Councils. Most recently, they have put up fire advisories at lift doors. These serve to create awareness amongst residents of fire hazards in common areas and to remind them to alert their Town Council if necessary.
Whenever new fire risks are identified, SCDF will also work with the relevant stakeholders to mitigate the situation. For example, in its effort to reduce the number of fires involving discarded items and keep the common corridors and staircases obstruction-free, SCDF issued fire safety guidelines concerning the use of common areas.
Mdm Speaker, we have had a good track record for fire safety. The enhancement of the enforcement framework and fire safety provisions is timely and ensures that our laws remain relevant as the operating environment changes. I urge Members of the House to give your support to the Fire Safety (Amendment) Bill.
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Ms Sylvia Lim:\tMadam, I have one clarification for the Senior Minister of State. This concerns the legal liability of the FSMs in relation to the formation of the CERTs. It was mentioned in the press release issued by MHA on 14 January that under this new scheme, the FSMs will be required to ensure that the response plan guidelines are complied with including upgrading the competencies of the in-house CERTs. And as I mentioned in my speech earlier, the FSM in the scheme of the organisation is not a very high level employee, so I would like the Senior Minister of State to confirm that the legal liability does not fall on him if there is non-compliance but on the building owners and management.
Mr Masagos Zulkifli B M M: Mdm Speaker, the FSM is hired to advise the owners on the safety requirements of the premises. Therefore, apart from the owners, the FSM is the competent, certified personnel on the ground for the owners to make sure that the compliances to the Fire Safety Act are met. This includes having the requisite number of people who should be able to help and step forward should an emergency occurs because the SCDF cannot come instantly.
There will be a time gap before they arrive, and during this time the CERT and the FSM are very key to the safety of people who are in the premises. Therefore, we have to put the onus on somebody to ensure that the plans are up to date and relevant to the buildings, as the buildings and CERT personnel may change over time, and also ensure that the CERT are up-skilled to the right level and are updated to ensure that new challenges are being met and that they are trained to ensure that they can coordinate and work well with the SCDF.
Ms Sylvia Lim: Yes, Madam, just one more clarification. I understand all that, Senior Minister of State. Just that the FSM may be aware of his responsibilities but the organisation has to support that, and if that is not forthcoming then the FSM cannot be legally liable for the lack of staff in the CERT teams, for example.
Mr Masagos Zulkifli B M M:\tThe Member is right. The ultimate onus and responsibility fall on the owners of the premises. So, when a fire hazard abatement notice is served, it is served on the owners. But the FSM must ensure that plans for the abatement measures are up to date, and that the CERT is operational and ready.
[(proc text) Question put, and agreed to. (proc text)]
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[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]
[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Masagos Zulkifli B M M]. (proc text)]
[(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Financial Holding Companies Bill","subTitle":null,"sectionType":"BP","content":"[(proc text) Order for Second Reading read. (proc text)]
The Deputy Prime Minister and Minister for Finance (Mr Tharman Shanmugaratnam): Mdm Speaker, I beg to move, \"That the Bill be now read a Second time.\"
The Financial Holding Companies Bill introduces a regulatory framework for the Monetary Authority of Singapore (MAS) to regulate financial holding companies (FHCs) and their financial groups. For the purpose of the Bill, an FHC is a non-operating holding company which is incorporated in Singapore and holds a Singapore bank or insurance subsidiary, or both.
The FHC Bill will provide greater clarity to the industry and other stakeholders on the rules and standards applicable to financial groups organised under FHCs in Singapore. It is common for internationally active financial groups to be organised under holding companies. As Singapore develops as an international financial centre, more global banks and insurance companies are locating parts of their global operations in Singapore. At the same time, our domestic financial institutions are growing regionally and some may find a holding company structure more suited to their purpose.
The Bill will clarify and ensure appropriate MAS prudential oversight of financial groups in Singapore.
Group-wide supervision allows MAS to assess the impact that a financial institution's relationships with other entities in the group may have on its safety
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and soundness. The concept of group supervision is of course not new. Financial groups in Singapore are mostly headed by banks and are already subject to group-wide supervision by the MAS. The Bill extends group-wide supervision by MAS to an FHC and its financial group. It is aimed at mitigating intra-group contagion risks, preventing the multiple use of capital within the group and limiting concentration risks at the group level.
The FHC Bill is in line with international regulatory developments. Key international supervisory committees such as the Joint Forum have called for greater oversight of unregulated entities in financial groups, in particular the parent FHC. The IMF has also cited the limited legal authority over FHCs of cross sector financial groups as a weakness in some financial systems. Many regulators are therefore widening their scope of group-wide supervision to include FHCs, either directly through an FHC regulatory framework or indirectly through a regulated entity like a bank or insurance subsidiary. Australia, Canada and the US are among the countries that have established legal frameworks for FHCs. The EU is moving in the same direction of strengthening regulatory authority over their FHCs.
However, the introduction of this Bill does not mean that MAS is advocating a holding company structure for financial institutions in Singapore. Whether a financial group organises itself under an FHC or is held directly by a bank or insurance company is a business decision. MAS, as the financial regulator, needs to ensure that all financial groups in Singapore, regardless of their holding structure, can be effectively regulated and supervised under an appropriate regulatory framework.
MAS has consulted the industry on the FHC regulatory framework. The first consultation in February 2012 sought views on the broad policy and regulatory principles underpinning the framework. The second consultation in October 2012 invited comments on the draft FHC Bill. MAS has considered the views and feedback received and taken them into account in refining the FHC Bill, where appropriate.
Mdm Speaker, let me expand on the key provisions of the Bill.
The FHC Bill draws upon the same regulatory toolkit as the Banking Act and Insurance Act. These tools will include requiring regulatory approval for acquiring or holding of major shareholdings in an FHC, putting in place limits on an FHC's credit and investment exposures, and giving MAS powers relating
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to key appointments, supervision, and inspection.
The Bill does not require every FHC in Singapore to be regulated by MAS. Unlike banks and insurance companies, an FHC is a non-operating holding company and will not engage in financial transactions directly with the public. It may also not be exposed to the same risks that a bank or insurance company may encounter in the course of business. In deciding which FHC to regulate, MAS will consider how the regulation of the FHC and its financial group can enhance the effectiveness of prudential oversight of the financial group.
The Bill sets out the following criteria by which MAS will assess whether an FHC should be designated for regulation. First, MAS will regulate an FHC if it is the ultimate parent of a financial group with a bank or insurance subsidiary in Singapore. In such cases, MAS is the home supervisor of the financial group and has responsibility for group-wide supervision of the financial group. Second, there are FHCs that are themselves subsidiaries of a parent FHC or financial institution. For these intermediate FHCs, MAS will assess the importance of the FHC's bank or insurance subsidiary to Singapore's financial system or to the intermediate FHC group when deciding whether to regulate the FHC. For foreign-owned FHCs, an additional consideration would be the extent to which the parent holding company, incorporated overseas, is subject to effective group-wide supervision by its home supervisor. MAS will list the names of FHCs designated for regulation in an order published in the Gazette.
While FHCs that are not designated will not be regulated under the FHC Bill, MAS may require these FHCs to provide information necessary for MAS' surveillance and supervision functions.
Major shareholders of an FHC may be in a position to exercise indirect influence or control over its bank or insurance subsidiaries through their shareholding interest in the FHC. Hence, it is necessary to require shareholders with substantial or controlling interest in designated FHCs to obtain approval for their shareholding interest, just as the Banking Act and Insurance Act currently require for significant stakes in Singapore-incorporated banks or insurance companies. The shareholding and control thresholds at which approval will be required will be consistent with existing thresholds under the Banking Act and the Insurance Act. MAS will consider whether the shareholders are fit and proper and the nature of their likely influence over the conduct of the FHC when assessing applications for approval.
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It is also vital that the directors and senior management of the designated FHC carry out their functions in a responsible and prudent manner. The FHC Bill provides for the application of corporate governance regulations on the FHC.
Besides regulatory requirements on the designated FHC itself, the FHC Bill sets out requirements at the FHC group level. To achieve alignment in the regulatory approach towards financial groups, whether they are held under a bank, an insurance company or a designated FHC, regulatory requirements under the Banking Act and the Insurance Act will be mirrored in the FHC Bill where appropriate. The FHC's bank and insurance subsidiaries in Singapore will continue to be regulated under the Banking Act or the Insurance Act as the case may be.
The FHC Bill empowers MAS to prescribe rules to support the safety and soundness of the FHC group. Several of these rules are also present in the Banking Act and Insurance Act and will be extended to designated FHCs. The Bill also provides for MAS to conduct on-site inspections and investigations of the FHC and its subsidiaries.
Further, to support MAS' administration of the FHC regulatory and supervisory framework, the FHC Bill contains administrative provisions, including powers to make regulations and issue directions and notices to designated FHCs, to require the submission of annual audited accounts of the FHC and FHC group, and impose penalties on the FHC and individuals for the contravention of FHC regulations.
Mdm Speaker, let me conclude. Singapore's financial system has held up well amid the turbulence of the global financial crisis of the past few years. It is important that MAS continues to have the appropriate and necessary regulatory tools to discharge its responsibilities as the financial landscape evolves. The introduction of the FHC Bill represents the continuous efforts by MAS to ensure its regulations stay relevant to developments and challenges in the financial system. Madam, I beg to move.
[(proc text) Question proposed. (proc text)]
Ms Tan Su Shan (Nominated Member): Thank you, Madam. Allow me to declare my pecuniary interest as a banker. Mdm Speaker, following the Global Financial Crisis, the changes in the global financial landscape have been
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swift and active. In the West, many banks are deleveraging and shedding assets. In Asia, many banks are capitalising on domestic growth trends to grow their balance sheet. Though economic cycles may differ region to region, the potential international contagion arising from banks failing cannot be under-estimated. Hence, a well thought through regulatory framework that is cognisant of global trends and systemic risks and yet sensitive to the domestic needs of the industry is welcomed.
Specifically for this Bill, as the financial industry evolves either through organic or inorganic growth, it has become common for financial groups to be organised under holding companies. Although these Financial Holding Companies (FHCs) do not, themselves, conduct banking or insurance businesses, growing recognition of the role of the FHC has prompted global regulators to include the FHC in their scope of group supervision. As the Deputy Prime Minister pointed out, other countries like the US, Australia and Canada have done so.
In Singapore today, given that some financial groups are now organised under FHCs, I think it is timely that this Bill is proposed now. Apart from helping Singapore meet the international standards on group-wide supervision, this Bill will enable the MAS to strengthen prudential oversight of such FHCs here, and mitigate the risk of intra-group contagion. It will also provide greater clarity to the financial industry and other stakeholders on what standards should apply to FHCs here.
Mdm Speaker, I support this Bill and what it is trying to achieve. I also applaud the regulator for having conducted two rounds of consultation prior to this reading. However, I do have some feedback and suggestions on some of the methodologies or details of the Bill so please allow me to make a few points briefly.
Firstly, the issue of \"smart regulation\" versus \"over-regulation\". Here, allow me to refer to the keynote address made by Mr Ravi Menon, Managing Director of the MAS last month, at the IMAS conference. Mr Menon said that \"a higher premium has been placed on well-regulated financial centres like Singapore, which sets high standards but implement them in a way that makes business sense. MAS pays close attention to the design of financial regulation to ensure they are risk-based and not more burdensome than necessary.\" This Bill is one such example. The powers to designate in this bill means the regulator has some flexibility to regulate at the right level and to concentrate regulatory
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resources only at entities which are systemically important to Singapore.
Secondly, this theme on \"Smart Regulation\" should continue to guide the MAS as they prescribe prudential requirements to support the safety and soundness of the FHC group. These will include the requirements on minimum liquid assets as well as the extent of leverage assumed. Here, may I suggest less reliance on a \"strait jacket\" regulatory approach but a focus on risk-based supervision with regulatory methodologies that take into account, and are tailored to accommodate, the risk profile of the FHC under review.
Thirdly, may I suggest that the Bill be cognisant of the fact that many FHCs operate under other jurisdictions, or they are already regulated. Many are also rated by international rating agencies. These rating agencies or rules promulgated by other jurisdictions already set expectations on permitted leverage and liquidity management. These should perhaps provide a good starting point for the MAS and it is important that these rules set are not, from the perspective of the FHC, inconsistent with those of other constituents. Level-playing field considerations should also be taken into account.
Mdm Speaker, the Financial Holding Companies Act was publicly consulted, allowing all constituents to provide feedback. May I ask that the same consultative approach should continue when the MAS formulates subsequent rules and directives pursuant to this Act?
In conclusion, Singapore's value proposition as a premier international financial centre rests on our pillars of transparency, sustainability, stability and international competitiveness. This Act will serve to enhance this value proposition and hence I fully support it.
Asst Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Speaker, I welcome this Bill. It is a timely piece of legislation to support the growth, integrity and robustness of our financial sector. The justifications for regulating financial holding companies (FHCs) derive from the same need and imperative to regulate financial intermediaries directly.
The proposed legislation can provide for a more effective regulation of the financial sector, a vital part of our economy. Implicit in this Bill is the recognition that the regulation of banks and insurance companies as financial institutions is incomplete or inadequate. Indeed, we must assume that commonly
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controlled financial institutions will typically act in concert, with all the attendant challenges such as the need to preserve the solvency of the regulated entities, the need to prevent systemic disruptions through related entities acting in concert, and to prevent uncompetitive practices.
My interest in the Bill is not so much on the technical aspects. The Bill strikes me as being well drafted and comprehensive in its scope and coverage. Rather, my interest relates more to the guiding principles on regulating FHCs.
There are three areas of interest. The first revolves around the potential for regulatory gaps arising from overlapping or perhaps inconsistent regulatory structures as a consequence of FHCs having a presence in several jurisdictions. The second area coheres around how the proposed legislation would deal with variations in organisational form of FHCs. And the third area centres on the regulatory approach towards holding companies controlling different types of regulated entities. Let me deal with them in turn.
We should not be surprised that FHCs, local or foreign, will expand across jurisdictions. A basic assumption of holding company legislation is that regulatory controls of some sort must extend beyond the boundaries of regulatory entities and reach their corporate affiliates. Yet, international comity and the lack of enforcement reach require that laws with extra-territorial jurisdiction should be the exception rather than the rule.
Let me illustrate with an example. If a holding company in country A acquires a regulated entity in Singapore, the logic of holding company regulation requires that regulatory authorities in country A concern themselves with the activities and conduct of the holding company in its home jurisdiction, country A. However, if Singapore's regulatory authorities apply our holding company laws to the said firm, the potential for overlapping and inconsistent regulatory structures arises.
If Singapore defers to country A's regulatory system, the supervision of the holding company may then be inadequate and the supervisory policies of Singapore may be undermined.
Even if the differences in supervisory regimes are not substantial, Singapore-based financial institutions may well, understandably so, object to a more lenient regulatory regime for foreign-based holding companies. So, I think here is a question of whether the law is over-inclusive or under-inclusive.
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Madam, I acknowledge that such a \"regulatory gap\", if it can be described as such, is unavoidable. Perhaps, with time, harmonised systems of holding company regulation may evolve. Nonetheless, I would like to ask the Deputy Prime Minister: how does the Monetary Authority of Singapore (MAS) intend to deal with such regulatory gaps?
Notwithstanding the limitations, the legal, political and practical problems of maintaining an effective system of holding company regulation in a multi-national global economy bear close watch. We must be mindful that FHCs may engage in \"regulatory arbitrage\" whereby FHCs seek out and take advantage of loopholes and differences in regulatory systems to avoid certain types of regulation.
In this connection, can I ask the Deputy Prime Minister what are the ballpark numbers on foreign and local FHCs that are likely to fall within the jurisdiction of the proposed law? I note that the law applies only to local FHCs.
In the second area relating to organisation forms, it is conceivable that, besides the traditional holding company structure, alternative organisational forms for a FHC are possible and likely. This could be in the form of affiliations through downstream subsidiaries, or expanded activities conducted within a single regulated entity, otherwise known as the universal banking model. Each organisational form presents different regulatory pressure points and concerns.
As such, I would like to ask: how does the proposed legislation deal with variations in organisational form of the FHCs? Can the proposed regulatory regime manage different types of organisational structures that FHCs are organised under?
The third broad area of interest relates to the appropriate regulation of financial holding companies with controlling interests in diverse regulated entities, such as banking, insurance, and securities. Where a holding company controls different types of regulated entities, two overlapping and potentially inconsistent systems of holding company regulation may well apply.
What legal rules should take precedence and apply in this context? Does our regulatory regime envisage differential treatment of say, a holding company with a single banking subsidiary vis-a-vis a firm with both banking and insurance subsidiaries?
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Questions of fairness and efficiency and effectiveness naturally present themselves in such situations. Should we work towards a harmonised system of holding company regulation without also first making changes in the direct regulation of financial intermediaries?
Overall, this Bill adds to our regulatory arsenal. We should not be afraid of prudent and sensitive regulation given that there are many benefits for financial institutions operating in Singapore. I regard such regulation as being necessary if we are to ensure that our financial sector continues to inspire trust and confidence of all stakeholders. The Bill is, in my view, necessary to protect against anti-competitive harms and to ensure that there is systemic robustness in our financial institutions and financial system. Going forward, the ability of the MAS and other regulatory agencies to regulate with the right dose of prudence, firmness and integrity is vital. Madam, on that note, I support this Bill.
Mr Tharman Shanmugaratnam: Mdm Speaker, I thank Ms Tan Su Shan and Asst Prof Tan for their comments on the FHC Bill. Ms Tan referred to \"smart regulation\", or regulation that is no more burdensome than is necessary to achieve our regulatory objectives. That is indeed, as she mentioned, the MAS' approach and we will continue to take that approach. In other words, maintain high standards of regulation while ensuring that the application of regulation, be it liquidity requirements or leverage caps as she mentioned, is risk-appropriate, that is appropriate to the risks posed by the institution or the group and proportionate to those risks.
The FHC framework was therefore designed such that FHCs in Singapore are not automatically subject to regulation. MAS will designate an FHC for regulation only where doing so can enhance the effectiveness of prudential oversight of the financial group. Let me explain further.
Under international supervisory standards, the supervisor in the jurisdiction where the ultimate parent FHC is based is expected to carry out consolidated supervision of the financial group. MAS will therefore designate for regulation FHC of a financial group that is headquartered in Singapore. An example would be DBS Holdings Ltd.
By this same principle, the home supervisor of a parent group to which a foreign-owned FHC belongs is also expected to carry out consolidated supervision of its financial group, including the group's entities operating in
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Singapore. However, MAS may also designate a foreign-owned FHC in Singapore for regulation in two situations. The first situation is where the foreign bank or insurance company in Singapore is significant to our financial system. The second situation is where the bank or insurance subsidiary is significant to a subgroup of related companies, in other words, to an intermediate FHC group based in Singapore. MAS will designate such a foreign-owned FHC for regulation if doing so can enhance prudential oversight of the financial group and provide assurance to Singapore depositors or policy holders that potential intra-group risks posed to the Singapore bank or insurance company are adequately supervised.
With regard to Asst Prof Tan's question of how many FHCs we envisage being subject to regulation under the Bill, at this point in time, there are five FHCs that meet the criteria to be designated for regulation under the Bill. All five are FHCs of banking and insurance groups that are headquartered here.
Ms Tan also commented on the need for consistency with international regulatory norms. That is key to MAS' approach. The FHC Bill is consistent with international regulatory developments on and standards for group supervision.
Let me now address the specific areas raised by Asst Prof Tan and Ms Tan.
Asst Prof Tan spoke about the possibility of \"overlapping regulation\" or \"regulatory gaps\" arising from differences in regulatory regimes in different jurisdictions. He gave the illustration of an overseas financial holding company in Country A, subject to Country A's regulation, which acquires a regulated entity in Singapore, subject to MAS' regulation.
Let me explain how the regulatory regimes across jurisdictions interact. MAS will impose regulatory standards on the solo regulated entity in Singapore, which may be a bank or insurance company licensed under the Banking Act or Insurance Act. The foreign regulatory authority in Country A, the home jurisdiction, will exercise regulatory oversight over the FHC, including the regulated entity in Singapore, at the group consolidation level. So, there is a division of responsibilities in the regulation of the solo entity and the regulation of the group.
There could indeed be overlapping regulation with regard to the regulated entity in Singapore due to MAS and the foreign regulatory authority addressing risks at different levels, namely the solo and the group levels.
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However, in respect of the regulated entity in Singapore, MAS as host regulator would not defer to the foreign regulator with regard to the solo regulation of the bank or insurance company. The entity is subject to MAS' minimum regulatory standards. MAS' FHC regulations will nevertheless not apply to the FHC itself in this instance, as it is not incorporated in Singapore.
Further, amongst banking and insurance regulators – and Asst Prof Tan rightly points to the potential for overlapping regulation or regulatory gaps − there are well-established principles for cross-border collaboration and cooperation, not perfect, but they are working principles, including information sharing, to facilitate effective group supervision of cross-border financial groups. In fact, this has been a very important emphasis, post-financial crisis – getting more effective, international collaboration for the supervision of cross-border and cross-sectoral financial groups. So, MAS will collaborate actively with its regulatory counterparts to ensure adequate supervision of the bank or insurance subsidiaries in Singapore.
I should add that MAS will also apply similar regulatory standards to solo entities in Singapore, regardless of whether the bank or insurance company is held by a holding company based in Singapore or overseas.
Next, Asst Prof Tan also asked about how the proposed FHC Bill would deal with various organisational forms of financial groups. Related to this, Ms Tan had also commented on the need for a level playing field.
The FHC Bill sets out MAS' regulatory approach and powers for financial groups that are organised under a non-operating FHC. As Asst Prof Tan mentioned, financial groups or downstream financial subsidiaries could also be held under a Singapore-regulated operating entity such as a bank or insurance company.
Regardless of organisational forms, MAS, as the financial regulator, seeks to ensure a consistent regulatory approach. For example, a banking group organised under a non-operating FHC will be subject to rules at the group level that are consistent with rules that apply to a bank-held financial group regulated under the Banking Act. That is the basic principle. To achieve this, the regulatory requirements for a bank under the Banking Act are mirrored in the FHC Bill, where appropriate.
Finally, Asst Prof Tan asked about the regulatory approach for FHCs of mixed groups; in other words, groups which operate businesses in more than
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one regulated sector, in particular in both banking and insurance. That is a good question. We will use a predominance test to assess whether at the group level, the FHC is principally engaged in banking or insurance business. An FHC group that is assessed to be predominately banking, for example, will be required to adhere to potential rules governing the banking sector at the group level, such as large exposure limits. In practice, the financial groups in Singapore are either predominantly banking or insurance. However, this could evolve over time and there could be hybrid groups where there may be more of a balance between banking and insurance. It is entirely possible. In all instances, MAS will assess the group in totality to obtain a holistic picture of its risks and determine the appropriate regulatory or supervisory treatment. So, it is not a binary treatment where it is either banking regulation or insurance regulation. There will be hybrids and we will have to look at the group in totality.
In summary, MAS has proposed a single piece of legislation, in the form of this FHC Bill, to strengthen MAS' prudential oversight of financial groups in Singapore. A single Bill to regulate all FHC group structures offers clarity and consistency, as far as is appropriate, in our regulatory approach to bank groups, insurance groups and mixed financial groups held under an FHC.
Going forward, MAS will formulate the detailed regulations to bring into operation the FHC Bill. And we will, as Ms Tan suggested, continue to, first, consult widely; and second, to ensure that we apply a risk-appropriate approach. Over the course of the past year, as I mentioned, we have consulted the industry on both the broad policy proposals as well as the draft Bill. And when it comes down to the detailed regulations, we will engage in more specific discussions with the lawyers, the individual institutions and all other stakeholders.
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]
[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Tharman Shanmugaratnam]. (proc text)]
[(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (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":"Housing Developers (Control and Licensing) (Amendment) Bill ","subTitle":null,"sectionType":"BP","content":"[(proc text) Order for Second Reading read. (proc text)]
The Senior Minister of State for National Development (Mr Lee Yi Shyan): Mdm Speaker, I beg to move, \"That the Bill be now read a Second time.\"
The Housing Developers Act was enacted in 1965 to safeguard the interests of buyers of uncompleted private residential properties through the control and licensing of housing developers. In so doing, the Act also helps to ensure that the private residential property market functions smoothly for the benefit of buyers, developers and other stakeholders in this market.
All licensed developers are required to comply with a set of stipulated controls under the Act. For example, developers are required to provide financial statements to the authorities and use project accounts for the deposit and disbursement of construction loans and sales proceeds. The Act also empowers the Minister to make rules – the Housing Developers Rules – for the implementation of the Act. Advertisements by developers are also regulated by the rules.
The Act itself was last amended in 1984 to introduce the Project Account requirement. However, the Housing Developers Rules have been updated several times, in 1997, 2005 and 2012. For instance, we amended the rules last year to require developers to provide more information to home-buyers on housing projects and properties prior to issuing the Option to Purchase. Such information includes a drawn-to-scale location plan, site plan of the project, unit floor plan and breakdown of a unit's floor area by the various spaces such as bedrooms and balconies.
This Bill seeks to ensure that the Act remains relevant and effective in safeguarding the interests of home-buyers, taking into consideration developments in the private residential property market. We are also taking this opportunity to improve the administration of the Controller of Housing function.
As part of this review, the Urban Redevelopment Authority carried out extensive consultations with members of the public, real estate professionals
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such as property agents and consultants, and professional bodies such as the Consumers Association of Singapore, the Law Society of Singapore, the Institute of Estate Agents and the Singapore Accredited Estate Agencies. The URA also consulted the Real Estate Developers' Association of Singapore and individual developers.
Mdm Speaker, I am pleased to inform you that these parties expressed support for amending the Act, as the various initiatives in the Bill will help foster a more transparent property market and professional real estate industry. In particular, the professional bodies provided many constructive suggestions for its refinement.
This Bill will provide additional safeguards to home-buyers in two key ways. First, there will be measures to improve the quality of information on housing developments and the sale of housing units. This information will enable buyers to make more prudent and better-informed purchasing decisions. Second, housing developers will be subject to higher standards of accountability and professionalism, so that their business activities will further enhance the credibility of the industry. This set of amendments deals with the Government's regulation of developers
Mdm Speaker, I will now detail the key amendments proposed, starting with measures to improve the quality of information made available to the public.
First, we will amend section 22 of the Act to empower the Minister to make rules requiring developers to accurately depict homes through show flats. Many home-buyers base their purchases on what they see in the show flats. It is therefore crucial for show flats to be built to scale, and be \"WYSIWYG\", or what you see is what you get.
For instance, all structural walls of a show flat should be erected with dimensions as per approved in the approved building plan. Using a glass panel in lieu of a solid brick wall would be misleading. Likewise, the ceiling height of a show flat shall be the same as that approved in the building plan.
This Bill also introduces section 17A to empower the Controller of Housing to investigate and penalise instances of non-compliance with the requirements relating to show flats.
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Second, we have made provisions in this Bill to give the Minister new rule-making powers requiring developers to disclose and publish all rebates, discounts and other benefits offered or extended to home-buyers.
Over the years, we have noticed more and more developers offering discounts to home-buyers. More recently, some developers have started to mark their units at a higher price, while offering significant discounts through rebates and other benefits such as furniture vouchers. Such inflated sale prices mask the real transacted prices and undermine transparency in the property market.
The proposed amendments will require developers to provide accurate information on residential transactions to the Controller of Housing in the same way they would to the Monetary Authority of Singapore for the purpose of loan applications. In other words, they will need to disclose any price discount, rebate, or any other benefit, including the reimbursement of any stamp duty or tax granted to home-buyers.
In addition, section 11 of the current Act will be amended to give the Controller of Housing legal power to collect and publish information on building projects, units sold and made available for sale by developers, and sales transactions. Data collected will be published in an aggregated fashion, as frequently as weekly, to aid home-buyers in timely decision-making.
Mdm Speaker, I will now outline how this Bill enhances the governance of housing developers.
First, the amended section 7 will expand the grounds on which the Controller of Housing can revoke or suspend a licence. New grounds for revocation include the failure of the developer to furnish information concerning the development project, sale of the project and sales transactions. The amendments to section 25 will also debar persons who have been convicted of, or have served a sentence of imprisonment for, a fraud or dishonesty-related offence in or outside Singapore, from holding or continuing to hold responsible positions in a licensed housing developer for a period of five years.
Second, this Bill will require developers to make public their audited financial positions. Currently, section 10 of the Act requires a developer to publish its last audited balance-sheet and profit and loss account. This section will be amended to require a developer to submit its audited accounts and the
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report of its auditor to the Controller of Housing. In addition, the developer must allow the public to freely inspect the accounts and report for a period of 24 months either via the Internet or at its place of business.
Third, this Bill empowers the Minister to set rules regulating the marketing and promotion of residential units. This goes beyond the existing regulatory scope of advertisements. The new rule-making powers will allow us to regulate marketing and promotional activities across a variety of channels and platforms. They will also allow us to ensure that the marketing and prospective sale of residential properties are conducted in an orderly and transparent manner, with due regard for the interests of all buyers.
For instance, rules could be introduced to regulate the practice common among some developers to collect blank cheques from prospective buyers as a form of advance booking for a residential unit. Although developers will retain flexibility in their marketing and promotional activities, the new rules will empower the Minister to regulate such activities if there is a need to do so in the future.
Fourth, this Bill substantially increases the monetary penalties for non-compliance. For example, the maximum fine imposed on developers who fail to comply with any of the conditions laid out in their licences will be raised from $20,000 to $100,000; they could also be subject to an imprisonment term of up to three years.
Madam, we believe that this Bill is timely. A home is, in most cases, the single largest investment in one's lifetime. It is only right that home-buyers are provided with the appropriate tools and legal safeguards to make informed decisions. This Bill will also enhance the professionalism of the residential property industry. With that, Mdm Speaker, I beg to move.
Mdm Speaker: Order. I propose to take the break now. I suspend the Sitting and will take the Chair at 4.40 pm.
Sitting accordingly suspended
at 4.18 pm until 4.40 pm.
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Sitting resumed at 4.40 pm
[Mdm Speaker in the Chair]
[(proc text) Debate resumed. (proc text)]
Asst Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Speaker, I support this Bill. Given that land commands an exalted premium in Singapore, it is not surprising that residential property is not just what a typical Singaporean thinks of, it is also what he thinks with. Residential property, HDB or private, is the single largest asset for the vast majority of Singaporeans. HDB dwellers often aspire to upgrade to private housing. Private housing developers are very attuned to these upgrading aspirations and the fear factor among prospective buyers that characterises an exuberant private residential property market.
Many major life decisions are made with residential property being a key factor. For example, the location of one's residential property can be very much influenced by where one wants his children to be schooled. Courting couples often make the leap into a future together by first purchasing their matrimonial homes, often with the marriage proposals coming later!
In short, we do not just think of property when purchasing a new home. Rather, the residential property becomes something we think with in making other major decisions for the family.
The residential property market remains robust in my view, despite several rounds of cooling measures. This is testimony to the centrality of residential property in the Singaporean psyche and wellbeing.
As a result of the lucrative profits that can be made, housing developers often compete to out-do each other, sometimes through unscrupulous means, often at the expense of the eager but unsuspecting homebuyer. Advertisements are either economical with the relevant information or may even misrepresent. The truth will only be known when the homebuyers receive their keys and see their properties for the first time. By then, it is too late to back out.
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To be sure, there is the legal doctrine of caveat emptor. Although a buyer, whether of a piece of cake or a residential property, must be aware of he is getting into, it is also clear that property buyers need protection as consumers given the big-ticket item that a home purchase is. There must be responsibilities and duties that come with the privilege of being a licensed housing developer. Such a licence cannot be the fast lane to unscrupulous profit making.
We often see advertisements of private residential developments surrounded by lush greenery, with the nearest residential development being some distance away. Showrooms, a favourite haunt of Singaporeans trying to secure their dream home, are where prospective buyers are cajoled to sign along on the dotted lines. And housing developers spare no effort in the design and ambience of the showrooms.
But what a prospective purchaser sees may not be what he will get. What is fact or fiction often becomes blurred in the showroom and in the promotional materials prepared by the developers. The disclaimer, or excuse, is simply described as the \"artist's impression\".
Madam, developers should not be allowed to profit from deliberate inaccurate representation of the housing units available for sale. Further, given the information asymmetry that often exists between the buyer and housing developer, the information playing field should be made as level as possible so that prospective buyers can make informed decisions. Caveat emptor and consumer protection cannot operate if housing developers do not provide relevant information that is presented clearly, accurately and easily accessible.
As such, I welcome clause 16 to empower the Minister to provide for the regulation of the display of show flats, with accuracy of representation being the desired goal. In May 2012, the Housing Developers Rules were amended to better protect home buyers by requiring developers to provide not just more but also accurate information such as the scaled location plans, unit floor plans and detailed breakdowns of a unit's floor area. This is to enable homebuyers to make better-informed decisions concerning a significant asset.
This must be the key objective of the law before us today. Caveat emptor still applies but homebuyers should not have to navigate treacherous waters because of housing developers' penchant for varying formats and selectivity in presenting relevant information. Would the Senior Minister of State be able to elaborate on how his Ministry intends to more robustly enforce the law?
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In this regard, I welcome the various clauses in the Bill to require developers to provide more comprehensive and timely information to the public and the regulatory bodies. As a rule of thumb, the more information that is available on a timely and accurate basis, the better it is for the prospective homebuyers in helping them decide if they have a fair deal.
In particular, clause 19 of the Bill, which requires developers to lodge with URA information pertaining to the discounts provided for units sold, can give transparency a much-needed boost. Generally, clause 19 also enables URA to collect and publish more comprehensive and timely information on the transacted prices of private residential properties. Such information can help reduce the frenzy and fear factor that accompanies information gaps. In this regard, does the Ministry have any plans to make as much consolidated market information available freely as opposed to a fee-paying basis than what it is at the moment?
The Government has a responsibility to ensure that the property market is not one denominated by the lack of information, allowing unscrupulous developers to prey on consumers, and to have prospective home buyers go into needless price bidding wars that only serve to power the over-exuberant property market.
As the residential property market is likely to remain a sellers' market for the foreseeable future, the need to tighten the entry of housing developers is necessary. There should not be fly-by-night housing developers which are not interested in the industry as long-term players. Similarly, the residential property market demands that developers should not have directors who have been convicted of, or have served a sentence of imprisonment for a fraud or dishonesty offence in or outside of Singapore within a period of five years before the date of the housing developer licence application. It is better to be prudent in this regard.
Madam, the Bill provides for fines to have five-fold increase in quantum. I doubt that this will be sufficient to sustain the deterrent effect that the Bill seeks to endow in the regulatory framework. The quantum of fines still pales significantly when compared with the potential profits to be made. Can the Senior Minister of State provide the number of housing developers licences granted and revoked or not renewed in the last two decades? I believe the figures will demonstrate how lucrative it is to be a housing developer even on a one-off basis. I should add that there is nothing wrong with that except that
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the profits must be fairly earned and not derived through unethical means.
Finally, I welcome the Bill for providing the Minister and/or the Controller of Housing with more power to make rules so as to promptly respond to the changing market practices that often attempt to tilt the playing field to the disadvantage of home buyers.
Private housing has become immortalised as one of the five \"C\"s integral to the \"Singapore Dream\". The deep fear of being priced out such that one's dream property becomes rapidly unattainable, and the attempts to \"speculatively invest\" in property have contributed to the property booms and associated anxieties for both the housing \"haves\" and the \"have-nots\".
The proposed amendments before this House can further enhance protection afforded to home buyers and promote transparency in the property market. Madam, I welcome these much-needed amendments. They have a role to play to contribute to the stability of not just the new private housing market but the residential property market generally.
Mr Lim Biow Chuan (Mountbatten): Mdm Speaker, allow me to declare my interest in this topic as a conveyancing lawyer and the President of the Consumers Association of Singapore. Every year, thousands of properties are sold by housing developers directly to purchasers. Except for shoe box units, most of these properties are sold at prices ranging from half a million to about $2 million to $3 million. For many buyers, it has been their lifelong aspiration to upgrade from living in HDB public housing to living in a private property with condominium facilities. It is also usually their largest financial commitment in their life. Many of my clients tell me that the cheque amount for payment to the developer is the largest amount cheque which they had signed.
Unfortunately, not every purchase of a private property from a housing developer ends with the happy fulfilment of their aspiration. Unlike the purchase of completed private properties, buyers from a housing developer do not get to see the physical structure of their property. They buy based on the layout plan in sales brochures and/or from seeing the layout in the developer's show flat.
I have received frequent feedback from buyers that after they collect the keys to their properties, they realise that the unit which they had bought look
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quite different from what they had seen in the developer's show flat. Buyers complain that the size of the flat look smaller because the flat which they bought would usually include a planter area and an aircon ledge. However, in the show flat, these areas may not be reflected in the show flat which makes the show flat look bigger.
There are also some complaints that there were brick or structural walls in the actual flat but which had been cleverly hidden in the show flat design; and that the ceiling of the flat looks much higher giving the impression of a greater volume of the flat. Many show flats also do not show the doors to the room and how much is the required space to swing open the doors. Thus, what they see in the show flat may not be what the buyer actually gets when the buyer receives the keys.
The reality is that many property buyers do buy their properties based on what was represented to them in the show flats. As such, I support the proposed amendments at clause 19 of the Bill to empower the Minister to introduce rules and regulations to ensure that housing developers do not erect show flats in a manner that gives a false impression to buyers or to depict houses or flats with inaccurate information.
I also support the proposed amendments at clause 19 (d) of the Bill which is to empower the Minister to prescribe rules to regulate marketing activities of developers. In particular, I am concerned that some developers when advertising the location of their development would represent in the location maps that the development is situated much nearer to MRT stations or to other amenities and schools than they actually are. In other words, these developers take liberty with the location map. They shrink the distance from the MRT station or amenities to make it look nearer to the development. To me, such form of marketing is misrepresentation and should not be allowed and I understand that rules have been amended in 2012.
There were also developers who had advertised that Phase 1 of the development has been fully sold out without stating how many units have been offered for sale in that particular Phase. Thus, a housing developer can actually offer a small number of units for sale under a particular phase and thus giving the potential buyer a false impression that there is overwhelming demand for the property.
The Government should also disallow the current practise whereby estate agents deliberately queue at the launch of a new development to create the
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hype that there are many buyers wanting to purchase limited units in a development. If this form of marketing activities is not regulated, it will create a lack of market transparency because buyers do not have actual information whether there is real demand for the property.
In the newspapers a few days ago, we read of buyers being told that they would be picked in a lucky draw of some sort so that they have the right to select a property. Is there a real pent up demand or is it a mere marketing gimmick? I submit that the Government should look into the sales and marketing techniques of the developers to ensure that consumers are dealt with in a fair manner and given adequate information about the demand for a property.
I also urge the Government to ban the practice of allowing agents to collect blank cheques from potential buyers to buy a property. Such practice may result in market manipulation in that developers can set the price that they wish to sell since they already have a blank cheque in their hands. It may also lead to fraudulent behaviour by unscrupulous estate agents.
Clause 19 (d) of the Bill also seeks to regulate the giving of benefits to buyers through the issue of stamp duty rebates, cash rebates or other kinds of discounts or vouchers. Whilst it may be argued that the grant of such rebates discounts or vouchers would benefit the consumer or the buyers, the fact is that such rebates in any form distorts the market. It means that any potential buyer would not be able to know what is the market price for the property, since he would not know the discount given to the previous buyer through such rebates or vouchers. Thus, I also support the proposal to regulate the grant of rebates or other benefits in this clause.
I would like to ask the Minister to comment on the following.
Currently, the Housing Developers (Control and Licensing) Act provides that a licence is only required if a housing developer develops more than four units of housing accommodation. Thus, if a developer builds only four units of housing accommodation, he does not require a developer's licence and he is not subject to the regulations imposed under the Act. Would MND consider imposing the requirement for a housing developer's licence for any development of more than two units? This will reduce the risk of any buyer who buys a property from an unlicensed developer.
Next, in the prescribed sale and purchase agreement for a property subject to the Housing Developer's rules, there is a provision in the agreement that the
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developer has a margin of error of up to 3% in the actual area of a property for which the developer does not need to compensate the buyer. In view of the high prices of properties, would the Government be prepared to reduce the margin of error to 1% of the area of the property? Thus, if the actual area of the property is smaller by more than 1% of the area stated in the sales and purchase agreement, the developer would have to compensate the buyer.
Next, would the Government also consider excluding the unusable areas like planter box or air-con ledge in the computation of the area sold by the developer? These are not really usable areas in the flat and there is no reason why the buyer is asked to pay for such an area.
Finally, if I may ask the Senior Minister of State, what is the intent of the Government in deciding to delete section 22(2)(b) of the Act? Does this mean that the developer no longer needs approval for the name of the housing estate? Would this lead to meaningless or misleading names of the housing estates? Mdm Speaker, with this, I support the Bill.
Mr R Dhinakaran (Nominated Member): Thank you, Mdm Speaker, for allowing me to speak on this Bill, which will seek to provide better protection for those seeking to buy property. Whether people are buying property for investment or to live in, they should not be exposed to exploitation and be protected. There are a few ways in which potential buyers can be exploited, misled or given false information.
I have heard recently from several friends and acquaintances that the developers have now become very innovative in marketing their new launches. I was told that they will advertise that a particular flat is, say, 1,400 square feet, for example. But when they view the property, they realise that it does not seem as big as 1,400 square feet. When they probe, they are then reluctantly told by the marketing or the sales agent that the 1,400 square feet size includes the bay windows, balcony, the access area, and in one case, I was even told that the personalised parking lot was included. I stand corrected. So, in effect, the property size was much smaller.
For such misrepresentation of details, we must take the developers and the marketers to task so that potential buyers know exactly what they are getting themselves into and are not misled by such jargons. Given the high property costs in Singapore now, we do not want buyers here to spend through their
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noses and not receive the accurate value for what they think they are buying or paying for.
The same goes with the show flats that developers put up. I have heard that the developers have many tricks up their sleeves and employ them to make the show flats look much bigger and nicer than what the actual property looks like or comes with. In other words, in many instances, the show flat is an illusion. Such tricks include higher ceilings and mirrored walls to make the apartment look much more spacious than it actually is, or lavish fixtures and fittings to make the property look much more appealing. I think we should mandate that the developers do not use these tricks any more. Show flats should be mandated to look as close as possible to the eventual product sold to the customer. I hope the Minister will take this into account when deciding the specifications of the show flats for developers. Overall, I am happy that this Bill includes provisions that will help developers play a fair game with potential buyers.
In discriminating convicts, I do feel, however, that there is an over-generalisation of former convicts in this Bill. Yes, we recognise that the Bill is taking the necessary steps to protect buyers and even the developers in some cases of potential fraud. But to specifically assume that an ex-convict guilty of fraud offences is likely to do so is I feel unfair and playing to stereotypes.
We must remember that the ex-convicts, when released into society, sometimes struggle to earn equivalent jobs again in our society. Especially those who were convicted of white collar crimes and are educated may not be able to find professional jobs again and may have to settle for odd jobs or low-skilled jobs to earn their living. For many, jobs in such sales positions may be a second chance to earning a decently paid job again and we should not close that door on them. I fear that after this Bill is passed with these provisions, developers may on the whole not hire ex-convicts at all, in the fear of running afoul of the law. That would be sad, as we should do all we can for the convicts to assimilate back into society.
I must make an appeal that the authorities do not take a harsh stance on associations in this regard. In some communities in Singapore, some of the places of worship and some of the important community social organisations are registered as associations due to historical reasons. It is important for some of these organisations to develop their own property either for operational or administrative use or to raise revenue. So, in this context, requiring them to have prior paid-up capital may not be possible for such associations and they may still be fund raising from their members to develop the property. I hope
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the Minister will look into associations, therefore, on a case-by-case basis and not unduly penalise the ones who are not-for-profit and are important components of our social fabric. On the whole, Mdm Speaker, I support this Bill.
Mr Ang Hin Kee (Ang Mo Kio): Mdm Speaker, I rise in support of the Bill. Many agents sell properties based on three reasons: location, location and location. But for many buyers, the decision to buy a property should be based on what is inside the unit, what is outside the unit and what is surrounding the unit.
Let me share the experiences of my residents at a Design, Build and Sell Scheme project in Ang Mo Kio, feedback from others and my own visits to many show units recently.
Firstly, let the show units accurately reflect the space inside the unit as well as what is available inside. Many were frustrated that their kitchen, living room and bedroom appeared smaller when they moved in. In some cases, show units that they visited had interior designs that gave the illusion that it will be spacious, similar to the point mentioned by the hon Member Mr Lim Biow Chuan earlier.
Amendments to the regulations in 2012 requiring that developers indicate accurate to scale floor dimensions is a step in the right direction. But that is not enough to achieve \"what you see is what you get\". For example, one will notice that many show units do not come with doors. Upon collecting their keys, some were appalled that they could not even open the door to the toilet without it banging against the toilet seat. A resident showed me in his new flat how he could not open the door to his wardrobe after he put in his bed. He had to change the door to a sliding one because the design had not catered for that.
Perhaps we can expand the regulations. When we visit a show unit, we should be able to see what we will be getting upon making a purchase. For instance, any walls that may have been removed for interior design needs should be accurately reflected in the show units, including the thickness of the wall on the floor and not just a solid line on the floor. I also hope that, in future, doors will be installed in show units as well.
Secondly, let us move to what is outside the unit. In the past, residents were not informed by the developer regarding the dimensions of the balcony, aircon
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ledge and planter box. It was only until they moved in and did a physical measurement that they realised the dimensions of these areas. In fact, a floor area of 1,200 square feet could have up to 100 square feet of space occupied by these features, a point made in an article in today's The Straits Times Forum Page that indicate that the recent change of such a regulation is in the right direction because now consumers know what they are getting into and the developers are required to indicate what are the sizes of these areas.
However, many continue to be unaware of the restriction concerning what they can do with the balcony area or planter box area. Some thought they can install full-height windows but did not know they were not allowed to. However, it was shown in the show units that it was there although it was for display purposes only. They now have to pay money to uninstall what they have installed. Developers should make it clear, not only in bold print in their collateral but also at show units that such fixtures are not allowed. It is not viable for residents to have to separately check with HDB, URA and BCA on the various restrictions.
Thirdly, let us look at what is surrounding the unit. Some residents who bought units next to vacant land were upset when they found out that new Build-to-Order flats or new institutions would be constructed next to their blocks after they have moved in. They shared that the developer had not indicated any new residential development on that particular plot of land in the collateral. Instead, the artist's impressions showed the development set amidst lush greenery and even omitted some other existing flats. I reviewed some of the old brochures that they shared with me and it clearly showed unobstructed views.
In fact, a staff from the developer informed me and the residents that all land use plans are available from URA, and buyers can go down to Maxwell Road to do their own checks to find out what are the actual plans around the development and to go to the Internet to check what \"plot ratio\" means. Yes, the onus is on the buyer to do his or her own checks before making a purchase. However, many lack the awareness and know-how to go about doing so. Some of the artist's impression drawings can often be misleading.
I am glad that the Ministry has addressed some of these concerns in last year's changes to the regulations. I would like to propose that developers show accurate spatial distance between existing and to-be-constructed new buildings and land use plan. This should cover a two-kilometre radius around the housing development which is put up on sale. This two-kilometre radius is similar to the Primary 1 registration Phase 2C coverage because they specifically, in their marketing
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collateral, promote that as an attractive option. Whether there will be an educational institution, condominium or religious institution nearby should be made known to the buyers. Many developers are only keen to show shopping malls, schools and facilities.
Finally, the amendment to the Bill to improve quality of information given by the developers to the buyers is timely. One area which is not currently addressed is the information given by property websites. Many such sites have popped up recently and many buyers are turning to them for reference. Moving forward, I hope that the Ministry can look into ensuring that any representation or reproduction of housing accommodation and land use featured by these websites is accurate. Of course, there are many challenges dealing with property websites, but I believe this is an area which will be increasingly important. Madam, with that, I support the Bill.
Mr Gan Thiam Poh (Pasir Ris-Punggol): Madam, I declare my interest as a bank employee. Mdm Speaker, I support the objective of the Bill which provides additional safeguards in two ways, namely, improving quality of information and enhancing governance of developers to home buyers and better protection of their interests by ensuring that the Act remains relevant and effective in light of industry developments and dynamic property market trends.
I noted the Bill will provide four areas of improvement: show flats, information of sale transactions, marketing activities and disclosure of financial status. Accurate and timely information on market values of homes is important to buyers. Inflated sale prices can mislead buyers and undermine market transparency and lead to distortions of the home market. Hence, it is important that full disclosure and publication of all rebates, discounts and other benefits, whether directly or indirectly granted by developers, should be made known to the home buyers, and such information should not be wilfully withheld by developers. Such benefits should include legal and valuation subsidies, whether in part or in full, by third-party, including financial institutions.
Developers shall also make known to the public the total number of units that have been sold to the inter-related parties, such as directors, their immediate families and business associates, to ensure transparency of sales information. In addition, there have been public criticisms over questionable practices, for example, collecting blank cheques in advance, paying people to queue outside show flats to create hype, and misrepresentations of sales
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bookings and so on.
While the Bill is set up to address these issues and inject new rules to regulate irregular marketing activities, they may be administratively difficult or challenging to enforce, thus resulting in ineffectiveness of enforcement action. It is always a question of balancing between rigidity and practicality. Nevertheless, having a robust market regulating framework is key to ensuring an orderly and transparent market for the benefit of buyers and maintaining public confidence in the housing market.
While the developers and their marketing agents have been focusing on the distinct features and attractiveness of the project site, including proximity to amenities and facilities, such as popular schools and shopping, it may be prudent for the developer to adopt a balanced and objective approach in his publication of sales information to highlight the potential trade-offs arising from being close to such facilities, such as schools and shopping malls, as these areas could produce noise and heavy traffic congestion.
There has been a mandatory requirement for financial institutions to ensure investors are aware of the prevailing and investment risk factors so that investors can make informed decisions. I hope a similar practice could be encouraged to minimise unnecessary and undesirable disputes between buyer and developer and its marketing agent.
Madam, property purchases require radically larger financial commitments from buyers. The financial health of developers is paramount and is important information to home buyers. The Bill that requires the developer to submit audited accounts for the financial year and auditors' report as opposed to the present requirements that require the developer to publish the last audited balance sheet and profit and loss account is only welcomed by home buyers. This will help facilitate more prudent decision-making by potential home buyers. This will instill discipline in developers to ensure a clean bill of health that will serve home buyers' interests.
However, there is a need to provide better clarity to the rules. A special purpose vehicle is usually set up by the developer to undertake a property development. Therefore, home buyers should be allowed to have access to the audited accounts and auditors' report of the ultimate holding company or the developer company to have a more complete picture of the overall health of the developer. In the absence of holding-subsidiary relationship, perhaps the developer could provide a bank confirmation that the shareholder has the
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financial means to ensure the completion of the development.
Madam, I appreciate the Ministry's efforts to consult the public, real estate professional bodies and consumer associations regarding the Housing Developers (Control and Licensing) (Amendment) Bill. In conclusion, I think the refinements are in the right direction. They will improve the quality of information and resources to the public so that it enables home buyers to make better informed and more prudent decisions. Secondly, they will enhance the governance of developers to ensure they carry out business activities in ways that best serve the public interest. The Bill injects greater rigour in accepting and assessing licence applications. Sales suspensions and revocations of licence are good deterrence for errant developers. With that, I support the Bill.
Mr Lee Yi Shyan: Mdm Speaker, I thank Asst Prof Eugene Tan, Mr Lim Biow Chuan, Mr Dhinakaran, Mr Ang Hin Kee and Mr Gan Thiam Poh for their many very good suggestions and for spending time to read the amendment Bill, and also for their general support of the Bill. I would also like to thank all Members who have previously shared their feedback and suggestions.
Many of the suggestions raised by the Members relate to the provisions we can include under the Housing Developers Rules and not so much the Act per se. So, let me assure the House that we will take these views into account as we embark on the changes to the Housing Developers Rules, following the passage of this Bill.
Let me also respond to the various points raised one by one. Asst Prof Tan, Mr Lim, Mr Dhinakaran and Mr Ang suggested that show flats be better regulated. We agree and are, therefore, prescribing show flats as an area in which the Minister shall be empowered by this amendment Bill to make precise rules. While we have yet to finalise all the new rules, we have thought about a number of areas which we intend to tighten up. For instance, we intend for all structural and external walls to be erected in the show flat, in the same thickness as the final product. All \"add-ons\", such as furnishings, finishes and interior fittings, must be duly labelled and made known to the buyers. The Controller of Housing will also be granted investigative and enforcement powers to enter and even close show flats if serious breaches are discovered.
Mr Lim asked if the Government would consider reducing the margin of error, as stipulated in the prescribed sale and purchase agreement, from 3% to
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1% of the area of the property. This provision of a margin for error exists as variations in floor area could arise due to construction difficulties or the use of different construction methods. Our view is that this plus or minus 3% could be reviewed in the future if technology allows for more accurate construction methods. We have received very few complaints on this matter over the past 10 years.
With regard to Mr Lim's suggestion on the exclusion of unusable areas such as planter boxes and air-conditioner ledges, in the computation of the area sold by the developer, we do not think it is necessary to do so now. Today, developers are already required to indicate on the plans and in the showroom the exact dimensions of such ancillary spaces so that buyers can make informed purchasing decisions. Although these areas are perceived to be less useable, they are, nonetheless, functional spaces which constitute a residential unit, and it is the responsibility of home owners to maintain them. As such, these areas should still be computed as part of the strata area of a unit. Even if developers were required to exclude such areas from the computation of prices, they could compensate for this by marking up the average per-square-foot price of other parts of the unit.
Mr Lim also urged the Government to disallow some of the practices of real estate agents, such as the deliberate forming of queues at the launch of a new development, as well as the collection of blank cheques from potential buyers to buy a property. For a start, the Council for Estate Agencies (CEA) is already working with the relevant Government agencies and the real estate industry to set guidelines on the collection and proper use of cheques. We have also made provisions in this Bill and will monitor the situation before assessing if further regulatory safeguards are needed.
Mr Ang has called for greater regulation of property websites which may provide inaccurate information to the public. He has also called for more information to be supplied to buyers on the developments, features and amenities in the vicinity of the housing project, a point echoed by Mr Lim as well. These are suggestions that we will consider as we refine the Housing Developers Rules with the passage of this Bill.
Asst Prof Tan has asked if we will make as much market information freely available to the public without the need to pay a fee. I wish to inform the House that comprehensive real estate market information is already provided free-of-charge to the public on URA's website. Such information is also provided through mobile Apps made available by URA which home-buyers can download free-of-charge if they want to access information on-the-go. This Bill
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will enable us to enhance the existing information to be provided and to do so in a more frequent and timelier manner.
Mr Lim asked for the rationale behind the deletion of section 22(2)(b) of the Act. We have deleted this clause as the function of regulating names of buildings and estates is now under the Street and Building Names Board. Since April 2010, the Urban Redevelopment Authority has taken over the secretariat functions of the Board. So, names of housing developments should still have to be approved by this Board.
Asst Prof Tan suggested that the Bill can go further to provide the Minister and/or Controller of Housing with more power to make rules so as to promptly respond to rapidly changing market practices that attempt to tilt the playing field to the disadvantage of home-buyers.
Mdm Speaker, the approach we are taking with this Bill is a balanced and fair one. We fully recognise how dynamic the private property market is. Hence, it is important for us to be nimble in the face of new concerns and problems which may arise now and in the future. This Bill already empowers us to make rules in several key areas, if and when necessary. So, I thank Asst Prof Tan for his suggestion.
The Members have also provided feedback on specific issues relating to the Act. Let me respond to them.
Mr Lim asked if the Act could be extended to impose the requirement for a housing developer's licence for any development of more than two units. This is, indeed, an issue we are looking into. However, we will need more time to fine-tune the implementation details to ensure that small developers are not over-burdened by new requirements, without compromising the protection extended to home-buyers. We will consider this in a future round of the amendment of the Act. Suffice to say, on average, less than 1% of our development comprises five units or less.
Asst Prof Tan has also asked for the number of licences granted and revoked or not renewed. I would first like to clarify that a licence for each project undertaken by a developer is valid until the project is completed. There is, therefore, no renewal of licences involved. Since 2000, some 6,800 licences have been granted to developers. Of these, there has, so far, been no licence revoked but there have been a small number of cases in which the Controller of Housing has disallowed developers from selling units off-plan. I believe this
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attests to the overall professionalism of the industry.
Asst Prof Tan and Mr Lim are of the view that the increased fines are still not hefty enough and may not be a sufficient deterrent to the cash-rich developers. I understand their concerns if fines are the only deterrents developers are liable to. Instead, the deterrence measures contained in the Bill are multi-levelled, including imprisonment, suspension and revocation of licence.
For example, the Controller of Housing can prohibit a developer from marketing and selling homes until all units are fully completed. This applies not only to the project in question, but also on the developer's future projects. Developers' revenue inflows will be severely constricted as they cannot rely on instalment payments received during the construction process to fund development of the project. There is also the negative impact on the developer's reputation amongst would-be buyers. A developer also risks affecting his track record, which is a key assessment criterion for future licence applications.
We believe that all these, taken together, constitute sufficiently strong deterrents against offences. We remain watchful of the situation and we will not hesitate to push for harsher penalties, through further legislative amendments, if necessary.
Mr Dhinakaran commented that there is an over-generalisation of former convicts in this Bill. Let me clarify that the Bill does not permanently prohibit companies from hiring ex-offenders. Instead, the Bill imposes a five-year debarment period during which ex-offenders cannot take up responsible positions in a licensed firm. This approach is consistent with the disqualification for persons convicted of fraud and dishonesty-related offences from holding company directorships under the Companies Act.
We think this requirement is fair because developers are selling properties for significant sums of money. It is, therefore, important to ensure adequate prudence in the licence-approval process. The Act defines a \"responsible position\" in a company as a director, manager or secretary; companies which employ ex-offenders in other positions are not affected by the requirement.
Mdm Speaker, let me conclude by saying that the Bill is not a short-term response to the current state of the private residential property market. It is a timely and necessary exercise to enhance the administration of the Controller of Housing function and ensure that the Act remains relevant and effective. It
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seeks to protect buyers of uncompleted private properties by stipulating greater clarity in product information and developers' obligations in marketing and transaction. Our developers here have largely been responsible and professional in their dealing and, with this Bill, we hope we will raise the professionalism and efficient working of the industry. Mdm Speaker, I beg to move.
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]
[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Lee Yi Shyan]. (proc text)]
[(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]
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The Acting Minister for Social and Family Development (Mr Chan Chun Sing): Mdm Speaker, I beg to move, \"That the Bill be now read a Second time.\"
Families are the most important building blocks of Singapore society. The Government is committed to helping Singaporeans achieve their marriage and parenthood aspirations. In January this year, Deputy Prime Minister Teo Chee Hean unveiled a new package of measures to encourage Marriage & Parenthood (M&P).
This Bill gives effect to some of the measures under the M&P package, namely, the enhanced maternity benefits and new parental leave schemes.
There are four key components in the Child Development Co-Savings (Amendment) Bill.
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First, the Bill introduces new leave benefits in the form of paternity leave and shared parental leave to encourage fathers to play a bigger role in bringing up their children. Second, the enhancement of existing childcare leave and adoption leave. These are to better help working parents manage work and family commitments. Third, we will enhance maternity benefits to better support working mothers whose employment arrangements make them ineligible for maternity leave today. Finally, we will extend protection for working mothers against dismissal without sufficient cause and retrenchment, to cover the full term of pregnancy.
Mdm Speaker, fathers play an important role in raising children. To encourage fathers to take on shared parenting responsibility, the Government is introducing one week of Government-paid paternity leave and one week of Government-paid shared parental leave. Both leave types are subject to a reimbursement cap of $2,500 per week. We wish that all fathers will make good use of all these leave schemes for their families.
All lawfully married natural and adoptive fathers are eligible for paternity leave. The natural father must have served an employer for at least three months immediately preceding the child's birth. In line with maternity leave, the fathers can consume paternity leave in a block within 16 weeks after the child's birth. If there is mutual agreement between the employer and employee, paternity leave can be consumed flexibly within 12 months from the child's birth.
Shared parental leave is contingent upon the mother being eligible for 16 weeks of maternity leave. The eligible mother can choose to allocate one week of shared parental leave to the father. This can be done on a new Shared Parental Leave Allocation System available on the Central Provident Fund Board website.
Employers can also log into the system to check on their employees' maternity leave or shared parental leave entitlement. To give certainty to employers, the allocation of shared parental leave, once done, cannot be changed. The only exception is if the father's employment is terminated before he has consumed the allocated leave, in which case, the leave will be returned to the mother. As couples can allocate the shared parental leave within the child's first year, they should have sufficient time to decide on the arrangements.
I now come to the second part. Let me elaborate on the enhancement of existing leave schemes. In 2008, we increased childcare leave from two days to six days per parent per year, to better support working parents in taking care of
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young children under the age of seven. Recognising that parents also need time away from work to see to the needs of their children in Primary school, the Government will extend two days of childcare leave to parents of Singapore citizen children aged seven to 12 years.
To be eligible, parents must have served their employer for at least three months. Each parent will be able to take two days of childcare leave per year, subject to an overall cap of 12 days over the six years between the child's seventh to twelfth year. The leave is fully paid by the Government, subject to a cap of $500 per day. If a couple has children in both age groups, that is, below seven years and seven to 12 years, an overall cap of six days of childcare leave per parent per year applies.
We are also enhancing the Adoption Leave. In 2004, the Government introduced voluntary Government-paid adoption leave. Employers who grant adoption leave to female employees who adopt a child below the age of 12 months could receive salary reimbursement for up to four weeks. With effect from 1 May this year, the four weeks of adoption leave will be made a statutory provision for adoptive mothers who have served their employer for at least three months. The payment for the four weeks of leave will be subject to a cap of $10,000.
We have also made changes to provide more time for mothers to take adoption leave. Currently, adoption leave can only be taken after the court appoints the Director of Social Welfare as Guardian-in-adoption of the child, or when the dependant's pass has been issued. With effect from 1 May this year, adoptive mothers can take adoption leave earlier, from the date the adoptive mother applies to the court to adopt a local child, or, in the case of a foreign child, when the adoptive mother receives in-principle approval for a dependant's pass. Adoption leave can also be taken within the child's first 12 months, instead of within six months previously. All the above arrangements will apply to paternity leave for adoptive fathers.
As we are granting adoption leave ahead of the court's issue of the Adoption Order; we have included provisions for the Government to recover the paid adoption leave and paternity leave benefits in the event that the Adoption Order is not issued within one year from the adoption application or the in-principle issuance of the dependant's pass; or if the child does not obtain citizenship within six months from the Adoption Order.
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Shared parental leave, paternity leave, adoption leave and extended childcare leave will apply to self-employed mothers and fathers as well. These parents would need to be engaged in their trade, business, profession or vocation for at least three months, except when consuming shared parental leave.
While not part of the M&P package, we have taken this opportunity to extend some leave benefits under the Child Development Co-savings Act to never-married single parents. As announced in my Ministry's Committee of Supply session, we will extend the childcare leave and unpaid infant care leave to unwed single parents with effect from 1 May, if they have a Singaporean Citizen child and served an employer for at least three months. This move is in line with my Ministry's efforts to enhance support for vulnerable families, of which single parent families are one such group.
The third aspect of the Bill is provisions to provide maternity support to more working women. Today, some do not qualify for any maternity leave due to their employment arrangements. These could be women who have worked for some time, but their contracts expire before the delivery of the child. They could also include women who are on multiple short-term contracts.
With the new Government-paid Maternity Benefit (GPMB) scheme, they will now enjoy the Government-paid share of maternity leave in the form of a cash benefit. They are eligible if their total employment or self-employment duration is at least 90 days in the 12 months preceding delivery. Mothers can receive the GPMB for births on or after 1 January this year.
The mother will receive eight weeks, or 56 days, of GPMB for her first or second child, or 16 weeks, or 112 days, for her third and subsequent child. GPMB will be based on the average income earned over the 12-month period preceding birth. Mothers who have worked for longer periods before giving birth will receive a higher benefit. The GPMB is capped at $10,000 for every 28 days.
Generally, a working woman cannot receive both maternity leave and GPMB. The only exception to this is if a mother's contract ends before she could fully consume her maternity leave. In such cases, the mother can receive GPMB in addition to the maternity leave, such that she receives paid maternity benefits of up to eight weeks for the first or second child, and 16 weeks for the third or subsequent child. This ensures that the mothers whose contract expires before
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or after delivery can receive equivalent paid maternity benefits.
Let me emphasise that the GPMB is not to replace the paid maternity leave. For the majority of women, they remain employed after childbirth and continue to benefit from the normal maternity leave provision.
This brings me to the fourth aspect of this Bill, which is ensuring that mothers are better protected from being denied their maternity leave benefits due to termination of employment. The Bill has extended the protection period for pregnant employees. From 1 May 2013, pregnant employees who have served an employer for at least three months and obtained a doctor's certification of pregnancy prior to the notice of dismissal will be protected against dismissal without sufficient cause, or retrenchment, throughout their pregnancy. This means that employers will be required to compensate or reinstate pregnant employees with their full maternity leave benefits, if employers dismiss pregnant employees without sufficient cause or retrench them.
This is an enhancement to the existing provisions, where pregnant employees' rights to maternity leave benefits are only protected during the three months preceding delivery for retrenchments, and six months preceding delivery for dismissals without sufficient cause. The Bill makes such provisions through related amendments to the Employment Act, which also applies to the maternity leave provisions under the Child Development Co-Savings Act.
MOM has also reviewed the offences and penalties provisions to ensure that employers do not deny their employees their leave benefits. The changes bring the associated penalties for employers who fail to grant or pay for the various statutory leave schemes in the Child Development Co-Savings Act, in line with other employment offences in the Employment Act. Employers who commit an offence in relation to the various leave schemes can be penalised with a fine of up to $5,000 and/or imprisonment for up to six months. For repeat offences, the penalty is a fine of up to $10,000 and/or imprisonment for up to 12 months.
The maternity leave and childcare leave provisions are under both the Child Development Co-Savings Act and Employment Act. Any maternity leave or childcare leave offence on or after 1 May 2013 under one Act will be considered in determining if an offence is a repeat offence in the other Act.
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In formulating the enhancements, the Government has consulted the Tripartite partners and other stakeholders extensively. Whilst providing working parents with more leave entitlements to help them better balance work and family commitments, it is important to ensure that employers' concerns over the impact on business costs and operations are also taken into consideration, so as to mitigate any adverse effects on the employability of the parents. Hence, the new leave schemes, namely, paternity leave, shared parental leave, the two-day extended childcare leave and adoption leave, are all fully Government-paid. Before going on leave, employees should work out with their employers arrangements that best meet the needs of both parties while minimising disruptions to business operations.
The Bill is scheduled to come into effect on 1 May. Notwithstanding, the Government will reimburse employers who voluntarily grant their employees the extended childcare, paternity and shared parental leave schemes from 1 January this year, even before the enhancements are made mandatory through legislation. This is to encourage employers to be generous and start granting the leave benefits early.
Mdm Speaker, encouraging marriage and parenthood is an important and worthwhile goal for Singapore. It is also one in which Government legislation alone cannot accomplish. And let me conclude this portion by urging all employers and the community to not only embrace the new measures but also do their own part to create a more positive environment for marriage, parenthood and family life. It is through a whole-of-society effort that we can make Singapore A Great Place for Families. Madam, I beg to move.
[(proc text) Question proposed. (proc text)]
Mr R Dhinakaran (Nominated Member): Mdm Speaker, thank you for allowing me to speak on this Bill. The amendments contained in this Bill are of immense importance nationally as it helps address a persistent problem that has been affecting our country for a number of years. And if not addressed, the issue of low birth rate may continue to undermine nationhood and economic growth in Singapore going forward.
I would like to make some key points on this Bill that I feel are relevant. Employers here have generally been accepting and supportive of the measures that the Government has announced in encouraging a more flexible work
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arrangement and even to increase the paid maternity and paternity leave for parents. We must be cautious that in trying to entrench some of these measures in legislation through this Bill, that we do not make it too onerous or unnecessarily burden employers with the mandated measures. What I really mean is that while we proceed with these measures and hope that they result in the desired effect, we must ensure that employers receive adequate protection. I am encouraged that the Government has taken responsibility of bearing the costs of the mandated leave but there are other costs that employers may be exposed to.
Chief among these is the possibility of employers being misled or misinformed on information from employees on these measures. I would like to suggest that since we have enforced in this Bill that errant employers be taken to task, a similar mechanism should also be enshrined for errant employees. Hence, if any employee is found to be supplying inaccurate or misleading information, there should be mandated penalties for this errant employee in respect of this Act. Such strong penalties will deter employees from going down this road in the first place and also protect the employers from incurring such unnecessary costs. With these mechanisms in place, I am sure that the confidence in these pro-parenthood measures will be preserved and kept high.
But I recognise that confidence has been kept from both sides and that adequate and equal effort should be made that both employers and employees are protected. To uphold the sanctity of these pro-parenthood measures, I suggest that it is important to not only promote transparent practices and ethical and accurate representation, but also to encourage red-flagging contrary practices. But for this to happen, there must be clearer protection of those who come forward to report such deviances.
What I am asking for is a clear whistle-blower mechanism which will protect those who dare come forward that these policies are not being adhered to or abused. For instance, should an employer not be practising these measures and unfairly deprive its employee of these privileges, the question still remains if the employer will be reported to the Government. Will the employee concerned or someone associated with the company risk losing his job in reporting this incident? If there is a whistle-blower policy, then those who surface such deviant practices will have more confidence in coming forward.
Similarly, if an employee is misrepresenting information and abusing the pro-parenthood privileges accorded to an employee, then he or she should be reported. But will any colleague, relative or friend come forward knowing that
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it may jeopardise his or her relationship with the alleged employee? If there was a clear whistle-blower policy which protected their identities, I think transparency will be better achieved and, hopefully, create a strong deterrent against deviations in the first place. I feel such a step will help protect the sanctity of the pro-parenthood measures and help achieve their intended outcomes.
It is important that we recognise that these measures are done to help prop up birth rates in Singapore. It is hoped that some of these initiatives, particularly allowing parents to spend more time with their young children while still receiving an income, will help encourage them to take a step forward in starting or expanding their families.
While we try to entrench some of these measures into our legislation, I hope we also recognise that more can be done to achieve greater results in this regard. Take adoption, for example. I applaud the Government as it has decided that parents who adopt will also be accorded maternity leave, although for a shorter period. Nevertheless, this is a step in the right direction.
However, this Bill suggests that the maternity and paternity leave be allowed in the first 12 months from the date of the birth of the child. I would like to point out that for an adopted child, some adaptation needs to be allowed here. For starters, not all parents may adopt children at the time of their birth. It could be possible that the parent adopts the child when the baby is already many months old, possibly even a year old. The parents who do so will be excluded from maternity or paternity leave since they have already passed the 12-month criteria. And if this is, indeed, an important determinant, it would push adoption demand for newly born babies and perhaps result in older babies being neglected by potential adopting parents.
I think we need to appreciate that regardless of when the baby is born, any parent adopting a child will need to spend some time with the child to familiarise and acclimatise the child to new surroundings and build new bonds. So, my suggestion is that if the parents adopt a child of up to two years old, meaning the child is still an infant, then the parents be allowed to take their maternity and paternity leave not in the 12 months from the date of birth of the child, but in the 12 months from the date of adoption of the child. For parents adopting children of more than two years old, perhaps the maternity and paternity leave can be reduced and it can also enforce its criteria to be in the 12 months within the adoption of the child. Adoption is, indeed, one alternative source of expanding families in Singapore, particularly for those who are unable or unwilling to use traditional or medical conception methods. So, we
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should facilitate adoption and not keep the door only half open.
These measures are only part of the overall solution to increasing a pro-family and pro-parenthood culture in Singapore. But, certainly, by entrenching such measures in our legislation, we are taking the right step and sending appropriate signals to all segments of our society. Thank you, Mdm Speaker. On the whole, I support the Bill.
Asst Prof Tan Kheng Boon Eugene (Nominated Member): Mdm Speaker, the primary aim of the Child Development Co-Savings Act (CDCA) is to encourage married couples to have more children, with the Baby Bonus and Leave Schemes being the primary drivers. But it will take more than the proposed changes in the Bill before us today to create a genuinely pro-family environment in Singapore. Ultimately, all stakeholders need to see that a pro-family environment is to their advantage, whether it is the Government, business or society. The challenge is to have the various stakeholders to look long term.
Madam, I welcome the proposed amendments to enhance maternity leave protection. The move to provide working mothers with maternity benefits at any stage of their pregnancy should they be dismissed without sufficient cause or be out of a job on grounds of redundancy is to be welcomed. The current legislation provides protection for a period of six months before delivery in the case of dismissal, or in the case of job redundancy within a period of three months before delivery.
In this regard, I hope the Government will pursue all cases of unjustified dismissal and redundancies of pregnant women with determination. Unscrupulous employers should not get away so easily. In this regard, the proposed fines under the Employment Act strike me as being on the low side.
Discrimination is a scourge, and the Government should consider naming and shaming the recalcitrant employers who discriminate against pregnant employees. Otherwise, we will be fighting a losing battle against the stereotypes of pregnant women as lesser employees at the workplace. Women should not have to decide between their jobs and being a mother. Sure, some compromise is needed but it need not be an \"either-or\" option.
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The various clauses in the Bill that relate to shared parental leave are welcomed. This introduction of shared parental leave provides for a working father to share one week of the mother's 16 weeks of maternity leave, subject to certain requirements. This provision of shared parental leave is significant and reinforces section 46 of our Women's Charter (Cap 353), which was remarkably innovative when the Charter was first enacted more than 50 years ago in September 1961. As a society, we seem not to give sufficient recognition to section 46(1) of the Charter which states: \"Upon the solemnisation of marriage, the husband and the wife shall be mutually bound to co-operate with each other in safeguarding the interests of the union and in caring and providing for the children.\" Section 46(4) of the Charter reinforces the theme of equality in a family unit. It reads: \"The husband and the wife shall have equal rights in the running of the matrimonial household.\"
Given the need to have fathers more involved in the care of newborns, I welcome the long overdue introduction of paternity leave. The Bill introduces one-week Government-paid paternity leave for a male employee who is the natural father or adoptive father of a Singapore Citizen child born on or after 1 May 2013.
With the amendments, a couple who are the natural parents of a Singapore Citizen child would have 16 weeks of maternity leave and one week of paternity leave between them. Why not let a couple decide how to allocate the 17 weeks of leave between them?
Can we consider moving away from unique leave schemes for mothers and fathers, and graduate towards a broader understanding of shared parental leave? Parents should have the autonomy to decide how they would like to utilise their leave to better tailor to the circumstances and needs of each household.
If the couple agrees that the father should spend more time with and caring for the newborn, why not give that couple the liberty to split the wife's 16 weeks of maternity leave, with the father taking on anything between one and eight or more weeks of shared parental leave?
Mdm Speaker, as it stands, how we package our leave schemes can reinforce the mindset that fertility decisions and childcare responsibilities are almost the sole preserve of the woman. This, in my view, has partly contributed to our low-fertility rates, with childcare duties being primarily borne by women. Let us not forget that the Singaporean women, like her male counterparts, are
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well educated and have careers of their own. A paternalistic approach will do us more harm than good in terms of trying to engender a pro-family environment.
On adoption leave, the Bill seeks to amend the Act to mandate employers to provide up to four weeks of Government-paid adoption leave for female employees who have adopted a child and meet the eligibility criteria. Madam, I would like to ask the Acting Minister for the policy rationale behind giving mothers of adopted children only four weeks of leave.
In the case of an adoptive mother, the need for her physical recuperation is not an issue. However, there can be no denying that the need for the adoptive mother and the adopted newborn to bond is just as crucial, if not more so. There is also the need to care for the adopted newborn. Therefore, given the differential entitlements where leave is concerned for natural and adoptive parents, are we sending the signal that an adopted child is valued less, or that adoption is not encouraged?
Madam, I would now like to discuss the issue of treatment of unwed mothers. While not under the ambit of the Bill before us today, we cannot avoid the issue of unwed mums and the reality of the Child Development Account (CDA), which is under the purview of this Act. The CDA is used as a conduit for the disbursement of the Child Development Credits. Further, the Child Development Co-Savings Act (CDCA) seeks to ensure that such Credits are used in ways that would directly benefit the child.
Madam, I appreciate that inroads have been made for unwed single mums to have the same parental leave benefits as their married, divorced, or widowed counterparts. However, unwed mothers do not benefit from the Baby Bonus scheme and the Marriage and Parenthood benefits. In addition, they get eight weeks of paid maternity leave, less than their married counterparts.
I appreciate and support that the state policy is to promote families, conceived as one where a family unit comprises a man and a woman married to each other and a child or children. This is notwithstanding that societal attitudes have become relatively more liberal and tolerant of alternative household formats.
The challenge pivots on how the state can uphold this policy without discriminating against children born to unwed mothers. These children did not choose to be born. These children are Singaporeans as well – they have a stake
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in Singapore, and we have a stake in their well-being. How do we ensure that such children are not disadvantaged or have the disadvantages of being in a single parent household from being magnified?
I appreciate that there are no easy solutions. Every Singaporean life is precious, relatively more so now given our demographic imperative. In other countries that have treated single mothers and married mothers alike in terms of benefits, indications are that it promotes irresponsibility on the part of the unwed fathers and mothers, with the state and taxpayers picking up the tab.
Even if societal norms are not in favour of doing more for single mothers, let us not have the children suffer \"collateral damage\" of their unmarried parents' action. How can we ensure that such children do not bear the legacy and burden of disadvantage?
The legislation for which this House is now considering amendments to is called the Child Development Co-Savings Act. We should not let high principles to blindside us as to whom this legislation is for and what it is all about. It is fundamentally about the Singaporean child, regardless of his or her race, language, family background and the like.
Madam, I note the Acting Minister's assurance last month that his Ministry will consider the needs of an unwed mother's child to determine the appropriate assistance package for the child. Nevertheless, as a society, we must endeavour to endow the child equally, regardless of whether he/she is adopted or born to married parents or an unwed mother.
Madam, although the leave enhances the overall leave entitlements to parents, the crucial question is whether working parents will be able to utilise them without fear that it will prejudice their job prospects such that they feel \"pressured\" into not consuming their leave entitlements.
A pro-family environment requires employers to be on board and buying into the need to create a supportive environment that is child- and family-friendly. The Bill also provides for the Government to reimburse the employer, if certain requirements are met, which grants the employee paid paternity leave, shared parental leave, or adoption leave. While the state's financial outlay is generous in this regard, I hope it does not send the message that raising a child is the state's responsibility, and that the state has to compensate employers for the time that their employees are not at work because of maternity, paternity,
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adoption, or childcare leave.
Madam, I welcome the amendments even though laws and incentives, while necessary, are not sufficient to make for a society that is nurturing of children. More importantly, I hope we can do more to remove any remaining discrimination – be it against pregnant women or children of unwed mothers. Every Singaporean child is precious and our laws and policies must be unequivocal about that.
Mr Gerald Giam Yean Song (Non-Constituency Member): Mdm Speaker, this Bill seeks to amend the existing Child Development Co-Savings Act (CDCS) to implement some of the measures in the Marriage and Parenthood package that were announced this year.
I welcome the amendments and I am glad to see the introduction of paternity leave. This was something I appealed for during last year's Committee of Supply debate. I urge all new fathers to fully utilise the one week of paternity leave to bond with their newborn babies and help their wives during their confinement period. I am glad I was able to take paternity leave when my two babies were born a few years ago and I am grateful to my company for providing it even before the Government mandated it.
I think the Government is moving in the right direction by extending paid childcare leave to all single mothers. However, the Baby Bonus and equal maternity leave, which are two of the biggest and most helpful parenthood benefits, are still being denied to single unwed mothers. My colleague, Ms Lee Li Lian, advocated on behalf of single mothers and for the equalisation of maternity leave during the COS debate for MSF this year. Now, I would like to add to her calls.
Currently, unwed mothers get eight weeks of employer-paid maternity leave and their companies are required to give them an additional four weeks of unpaid leave. Essentially, the Government bears no cost for the maternity leave of unwed mothers. This is unlike married, widowed or divorced mothers who enjoy eight weeks of employer-paid leave followed by eight weeks of Government-paid leave. Unwed mothers also do not receive the Baby Bonus cash gift of $6,000 and the Government's co-matching contribution of up to $6,000 in the Child Development Account (CDA). There are also several tax benefits that are not available to mothers of what IRAS calls \"an illegitimate
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child\", including the Parenthood Tax Rebate, Qualifying Child Relief, Handicapped Child Relief, Working Mother Child Relief and Grandparent Caregiver Relief. Unwed mothers also do not qualify for public rental flats from the HDB, a point raised by Mr Png Eng Huat during the COS debate for MND.
Madam, I would like to ask for unwed mothers to receive the same 16 weeks of paid maternity leave, including the last eight weeks paid for by the Government. The Baby Bonus cash gift and the Government's co-matching contribution to the CDA should also be extended to them. The Baby Bonus scheme, as stated on MSF's website, is to \"support parents' decision to have more children by helping to lighten the financial costs of raising children\".
It is, therefore, not a reward for having children but a financial assistance scheme. I note for the other new measures in the Marriage and Parenthood package like Extended Childcare Leave, the Medisave grant for newborns and MediShield coverage for congenital and neonatal conditions, the same benefits are extended to unwed mothers or their children. Why not take the next logical step of equalising the remaining parenthood benefits? Equalising benefits for unwed mothers helps not just the mother but her child as well. The Ministry should take a child-centric view of the family and not make the child pay the price for the past actions of his or her parents.
Unwed mothers have made a choice to keep and raise their child despite their difficult circumstances and the options for abortion or adoption. We should give them the due recognition for making this difficult choice. I note that a single unwed mother can become eligible for the Baby Bonus if she marries the biological father of her child before her child turns 12. However, some single mothers may not end up marrying the man for various reasons and this should not prevent them from receiving the same benefits. Providing these benefits will help reduce their financial burden which, for some unmarried women expecting a child, could tip the scales in favour of keeping the child instead of choosing to undergo an abortion. It is certainly not a silver bullet to reduce our high abortion rates but, if just one more life is saved, I think it is worth providing the benefits.
During the COS debate on 14 March, I pointed out that the issue of out-of-wedlock births is a complex, moral and social one that needs to be tackled in ways other than through selective social benefits. In response, the Acting Minister assured me that the Government does not judge people by their status. I was glad to hear this because I took it to mean that the Government is not trying to shape moral behaviour using parenthood benefits. The Acting Minister also told me that there will always be some help that we give to married couples
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and there will be another package of help that we give to singles. That being the case, what alternative package of help is the Government giving to unwed mothers? I do not think there is any universal package available, apart from means-tested social assistance.
I believe that it is important that, as a society, we continue to uphold the centrality of a two-parent household within the institution of marriage. This norm should continue to be promoted by the Government, for example, through schools. However, breaking with this norm should not result in a mother and her child being denied the Baby Bonus and equal maternity leave. After all, we do not encourage divorce but we still give divorcees the same Baby Bonus and maternity leave as married mothers.
While some may fear that providing equal benefits to unwed mothers may encourage the emergence of \"welfare moms\" where single women get pregnant just to collect welfare cheques, I think this fear is unfounded in Singapore's context. First, the quantum of benefits is hardly enough to make up for the high cost of raising children in Singapore. No rational woman will choose to conceive a child just to collect the Baby Bonus. Second, I am not asking the Government to provide additional benefits to single mothers as they do in some countries – just equal benefits.
Madam, unwed mothers face huge challenges raising their child on their own. I can only imagine how tough it must be whenever I have to look after my own kids on my own when my wife is away. Unwed mothers have to single-handedly care for their child, take on the role of both father and mother, and hold onto a job to pay the bills. They also have to face the social stigma of being single and unmarried. On top of all that, they are denied many of the parenthood benefits that married, divorced and widowed mothers receive. This could add to their feeling of marginalisation from society.
Single mothers need more of society's support. As the Acting Minister said, many of them are from vulnerable families. They are mothers first and singles second; not the other way around. The welfare of their children should be our top priority. Do we, as a society, believe in second chances? Do we believe that all children are born equal and that every child is legitimate, no matter how he or she was conceived? If we do, I urge the Government to accord to single unwed mothers the same parenthood benefits as all other Singaporean mothers.
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Mr Laurence Lien (Nominated Member): Mdm Speaker, thank you for allowing me to speak. I would like to start by expressing my support for the Bill in widening the scope of the Act in its coverage of maternity leave, adoption leave, parental leave, paternity leave and childcare leave.
I think these amendments and extensions are steps in the right direction, but I think we need a more critical review of our social policies to create a total environment that makes Singapore one of the best places in the world to bring up children. Specifically, we must love and support all our children and their families, without discrimination.
I am not disagreeing with the state being involved in buttressing parental efforts in raising their children. In fact, I was part of the team in the then Ministry of Community Development and Sports that developed the pro-natalist policies that were implemented in 2001.
What I believe differently is that the Government's primary objective should not be a paternalistic one, one in cajoling Singaporeans to marry and have more children. These are highly personal decisions, and Singaporeans increasingly baulk at exhortations to have one more for the nation.
Moreover, the state probably does not have enough credibility to speak on pro-natal matters. For more than two decades since 1959, the Government had in place aggressive population control policies that heavily discriminated against large families. So, when the state goes from saying that a third child is a bane to saying that the child is a boon, citizens would be quick to note that having children, to the Government, seems only a means to an end, which is, economic prosperity. Citizens would not desire to have children who are treated as mere factors of production.
Hence, financial assistance schemes that are provided to families, like the ones that are covered in the Act and Bill, should not be seen as financial incentives. Financial incentives are extrinsic motivators and nobody would or should have a kid just because of them. Instead, we must have children because they are both an enormous source of joy and also of sacrifice.
However, I do believe the Government has a role in building a total social environment that supports the bringing up of children. Only the Government has the power of taxation to redistribute from those who have no or few
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dependants to those who have more and to fund and regulate crucial services that are vital to the development of children.
But, fundamentally, the state is significantly involved because we, as a society, believe in strong families and loving children. We love children because they are an enormous source of joy. When the love of children is both the start and end points, the babies will eventually come.
But do we really love our children? Loving here is similar to saying that we must be inclusive in our approach. Inclusiveness is primarily a mindset and value system, which both citizens and the Government must demonstrate in thought and action. Inclusiveness here means that we must respect and value each child for who he or she is, not what he or she should be. And, ultimately, each must be treated with equal dignity and compassion, and provided equal opportunities, no matter what their family backgrounds are, like how rich their families are, how intelligent the parents are and what family type they belong to. The point is all the more stark when we consider that these children could not choose who their parents are.
Yet, in many of our policies and many of our perceptions, we discriminate against children. Let me recount some of the ways.
As mentioned by the two speakers before me, we discriminate against the children of single parents and unwed mothers, who struggle harder than other parents because they do not have a partnering spouse to share the load with. Unwed mothers are not eligible for Baby Bonus and a single mother receives only part of the normal entitlement of paid maternity leave and childcare leave. A single parent would also have obstacles purchasing and renting an HDB flat.
We discriminate against the children of low-income parents. The co-savings component of the Baby Bonus favours higher income families who are better able to save upfront to get the matching grant. We also have the HOPE scheme, which illustrates that we value the children of less economically productive people less. And the education system increasingly favours those who can afford tuition for their children.
We discriminate against children whose fathers do not have stable incomes and whose mothers are foreigners. These foreign spouses often find difficulties in procuring a Long-Term Visit Pass, let alone Permanent Residency or a Long-Term Visit Pass-Plus. I regularly learn about children whose families' financial situation is dire and their mother is not allowed to work, or not allowed to even
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stay in Singapore for the long term. These are Singaporean children who need a mother; and in making it harder for their mother, we make life hard for their children.
We discriminate against the children of stay-at-home mothers. Working mothers, especially the higher income ones, are eligible for huge tax benefits through the Working Mother's Tax Relief and receive more generous infant care and childcare subsidies. Stay-at-home mothers, on the other hand, feel under-appreciated, even though they have more babies on average and try to invest more time with their children.
Finally, the worst discrimination, I feel, is against all unborn children who are aborted. I understand this is a highly emotive issue, and many would defend vigorously the rights of women to choose. But who asks about the rights of the unborn children who are voiceless? If they are unloved by their mothers, there are many others in Singapore who would queue up to adopt them.
Hence, the picture is quite clear. We seem to love only certain kinds of children. We favour the ones who are from intact and financially stable families, and who have both parents working and with decent income. Do not get me wrong. I am a social conservative when it comes to marital and family matters. I, too, wish for children to have parents who are married and have a strong relationship. But after the children are born, I think we should treat them equally. Like what Asst Prof Eugene Tan and Mr Gerald Giam mentioned, they should not be made to suffer for whatever their parents did or did not do.
To achieve our vision to be one of the best countries in the world to raise children, we must do more than avoid discrimination. We are already excellent in some areas, like public safety and security, and healthcare. But there are some areas that I think need improvements.
Firstly, we need to establish quality childcare and pre-schools for all. Government is already investing heavily in this area to improve quality and availability. I hope it continues to do so, working closely with the private and non-profit sectors. However, currently, I think there are too many assistance schemes. So, why do we not streamline and merge all the pre-school subsidy schemes, including the co-savings component of Baby Bonus, into one standardised voucher for each child that is sufficient to provide a basic, no-frills preschool education free for the three years leading up to Primary school?
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Secondly, we have to revamp our education system, and allow a more flexible one that caters to a wide diversity of abilities and learning styles and foster a lifelong love for learning. The current highly test-based system impacts adversely on parent-child bonding time, on their well-being, on household expenditure on education enrichment and tuition, and, eventually, on the number of children desired.
Thirdly, we must strengthen families. Marital instability is a major concern. Nearly a fifth of marriages result in divorce within the first 10 years, the prime time for most to have children. Couples need to work on their marriages more and be open to external help in marital counselling. As mentioned earlier, we need to give more permanent immigration status to foreign mothers with Singaporean children. Parents also need much better work-life balance, more than just having childcare leave, so that they can spend more time with their children.
Fourthly, we need to strengthen gender equity. Low fertility is prevalent in countries where there is gender equity in social institutional settings, like in schools and the workplace, but gender inequality in family settings. In the home setting, women often continue to take on many of the traditional wife and mother duties, while also holding paid employment, resulting in fewer working women having fewer or no children. It is great to see a lot more fathers nowadays in Singapore actively involved in raising their children but, on the whole, gender expectations in Singapore still need to be discussed and refined.
Fifthly, there must be strong and clear social safety nets for all families who have children facing major health problems and disabilities, regardless of their income levels. I am happy that MediShield coverage has been extended for congenital and neonatal conditions. But there are still many parents who spend too much of their limited savings on children with medium to long-term needs, be it on healthcare, or on physical, occupational, speech or other types of therapy.
In conclusion, we need to create a total social environment that makes Singapore one of the best places in the world to raise children. It is not one thing that needs to be fixed, but a bunch of them, and it is not the Government's job alone to fix them. In the end, it is primarily also a matter of mindset and values. For couples and families, it is about how we value children and how we view what constitutes a good life. For the state, it is about helping all children and their families without discrimination. And any financial help from the state is welcomed as supporting parents in their efforts, but should not be seen as
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incentives.
Overall, we need to be more upbeat in our efforts. Despite the improvements required, Singapore is already a good place to raise children. Things will get better. And it is because the outlook is hopeful that Singaporeans would bring new children into this world.
So, thank you, Mdm Speaker, for letting me speak on matters beyond the ambit of the Bill but within the intent of the Bill. On the Bill itself, I support it, but would like it to go further in future.
Ms Low Yen Ling (Chua Chu Kang): Mdm Speaker, I rise in support of the amendments to the Child Development Co-Savings Bill. The amendments demonstrate the Government's commitment to enhance the Marriage and Parenthood Package to encourage the formation of families, support parenting and better work-life harmony.
Confucius said and I quote, \"The strength of a nation is derived from the integrity of the home.\" Strong families form the foundation of a healthy nation. Marriage and parenthood play a key part in the future of Singapore. So, as we work towards building a firm base for families to grow, I would like to highlight three key points for the House to consider in relation to the amendments to the Child Development Co-Savings Bill.
The first point is on extended childcare leave. The additional two days of leave for parents of children from seven to 12 years old is, indeed, a welcome one. It acknowledges parents' need for time off to attend to their children's needs, especially if both parents are working. The current leave entitlements are provided, regardless of the number of children that a couple have. This does not give them the additional support they would need should they have more children. If we want to encourage parents to consider having more than one or two children, we should try to provide as many avenues as possible to support their child-rearing efforts. So, I hope the House would consider giving couples with more than two children the additional support they need, especially in this area of leave entitlements for parents.
The second point I would like to raise pertains to the shared parental leave for fathers. The amendment to the Bill now allows for fathers to have one week's paternity leave, as well as share another week of parental leave from the
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16 weeks' maternity leave provided to mothers. This recognises the important role of the father in a family and the much-appreciated support his physical presence will bring to his wife, especially in caring for a young baby.
However, the additional week of shared parental leave will not apply to fathers whose wives are stay-at-home mothers. As MSF seeks to encourage fathers to take on a more active fathering role, I hope the Ministry can consider including this group of fathers so that they, too, can enjoy two weeks of leave to bond with their newborn.
The third and last point I wish to highlight to the House today is the protection of pregnant women. The amended Bill will enhance protection for pregnant employees. Working mothers will be entitled to maternity leave benefits from their employer if they are dismissed without sufficient reason or retrenched at any stage of their pregnancy. I support this and I feel that we can do more to protect pregnant women at the workplace.
While the Child Development Co-Savings (Amendment) Bill has addressed unfair dismissal and maternity benefits, I hope this House can look into the other areas of maternity protection – such as health protection at the workplace and ensuring arrangements for mothers' breastfeeding and expression of milk. These two areas are part of guiding points provided by the International Labour Organization's (ILO) Maternity Protection Convention 2000 No 183 and Recommendation No 191.
For instance, are there specific guidelines or regulations to protect pregnant mothers and breastfeeding mothers from risks related to chemical, physical and biological agents, industrial processes, movements or postures that could lead to harm? Do employers carry out assessment of such risks in order to adjust working conditions or hours for pregnant or breastfeeding mothers? Are mothers able to request for a change in job scope or roles so as to protect themselves and their child?
The ILO recommends that mothers are given one or more daily breaks or a daily reduction of hours of work to breastfeed her child. These breaks or the reduction in daily hours of work are to be regarded as working time. So, are our workplace environments built to support breastfeeding mothers? Last Friday, an article in The Straits Times brought to our attention how it has now become compulsory for some shopping malls to provide nursing facilities. Likewise, I think we should review the design and environment of workplaces and help them create or modify facilities to support breastfeeding mothers. As SMEs
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employ over 80% of our local workforce, could we also provide assistance to our SMEs that need funding or expertise in this area?
The difficulties that nursing mothers face were widely reported and discussed by several mothers in yesterday's Sunday Times article entitled, \"Helping Mothers Express Themselves\". Ms Fatimah Abdul Rahman had to endure a smelly and unhygienic staff toilet before she gave up expressing at work and it was so very different when she joined KK Hospital later. In KKH, she found a dream nursing room; it has five cubicles, breast pumps, steam steriliser and the works. Of course, not all companies can be as well equipped as KK Hospital but all companies should exercise basic understanding and support for our nursing mothers. Nursing mothers not only juggle work demands, they also face unhappiness from bosses or colleagues when they take time out to express milk.
As a mother of two young children, I understand the inconvenience faced by nursing mothers. Nursing while at work can take tremendous patience, discipline and lots of coordination. I also struggled to juggle all that a few years ago. That is why it is not surprising that many mothers find it very hard to keep breastfeeding after they return to work. So, let us all give them the support that they deserve.
In essence, increasing support for pregnant women and breastfeeding mothers, and supporting parents and fathers in their family responsibilities are big steps in the right direction. We cannot do less. If we want to reverse the declining birth rate, we need to give strong signals to parents, mothers, men and women thinking of having children that they are not alone in this area of parenting. The state cannot be a nanny but it can assist parents in parenting through setting pro-family polices and creating family-friendly environments in workplaces and taking the lead to set examples for companies and organisations to follow.
Mdm Speaker, please allow me to wrap up in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, I support the Child Development Co-Savings Amendment Bill wholeheartedly. Besides the above-mentioned three suggestions, I also want to emphasise that although the Government provides various supporting schemes, we still need employers' cooperation. Only with their combined efforts can we create a pro-family workplace culture. I recently read a report on Japan's declining birth rate and the ageing problem. One point worth noting in the report is that Japan's
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employers generally believe low birth rate is the country's and society's problem, not their companies' problem. Therefore, it is not something that workplaces can help to resolve.
Singapore's employers may be more proactive in their attitude. However, many employers believe that we can rely on importing foreign workers to solve the problems of declining birth rate and manpower shortage. If we allow this trend to continue, eventually, our society will not be able to develop in a sustainable manner. Our young people will leave Singapore to look for opportunities overseas and start their family there, simply because they cannot find high-quality jobs in Singapore. Our population problem will become even worse then.
Hence, I urge companies and employers to make the workplace more pro-family and pro-marriage so that your offices can become a place where employees can marry and start a family with peace of mind. More important than Government policies is the employers and supervisors' flexibility towards employees' needs for family life during different life stages. Employers should help them start a family and contribute their best to the company. Only with the combined efforts of the Government and the companies can we build a youthful, vibrant and hopeful Singapore.
Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I rise in support of the Bill. I believe it is good that we are trying to take a broader approach to the issue of compensating especially women who are self-employed so that they do not fall through the net when they have to go on maternity leave. It is, indeed, refreshing that the men are also covered under the Bill.
Population replacement is, indeed, not an easy issue for the Minister to tackle. We know there are also many other countries facing the same problem. In fact, very often, I hear residents discussing this issue and, very often, they say that we are facing this problem because of our \"Stop at Two\" policy. It was too efficient. Is that really true? There are many other countries, including Japan, Taiwan, which do not have the \"Stop at Two\" policy and they are also facing the same problem.
As our citizens are better educated, they have also set higher standards for themselves in terms of their careers and their expectations of marriage and having children. In fact, personally, I feel that we need to tackle the problem
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even more upstream which is, helping women to find partners. Why do I say so? I observe that in my cohort, in my tutorial group, there were four ladies; only two are married. In a university female basketball team, out of five players, only two are married. So, it is between 50% and 60% who are not married and that is why I feel that we need to tackle the problem upstream.
For those who are married, many of them told me that they welcome financial help and packages from the Government but it will not sway their decision on the number of children that they are planning to have. To some, it is their mindset. To others, it is the experience that they went through from pregnancy to delivery to bringing up their first child. Improve the process, such as a shorter wait at clinics and more family support in terms of housework and so on, perhaps will help.
Many parents have also set higher expectations in bringing up their own children. No longer are they like our parents who would leave us to fend for ourselves at school and in our studies because they were busy looking for three meals for the family then. I remember during my time, after school, I would just have to go to the kitchen to look for porridge. If there was no porridge, I would then have to wait until dinner. My parents would never ask me whether I had homework, whether I had finished my homework or not.
Today's parents want to bring out the best in their children. They want to give their children everything they did not manage to have during their time, including enrichment programmes, swimming classes, drawing classes and, perhaps, table tennis classes as well. Well, this is good. However, in the process of trying to achieve this, they are confronted with some real challenges. And the problem with the challenges is that it is not just about money but it is also about finding the time to create the right environment and the social support to meet the standards they set for their children. I believe this is where there is a gap between what benefits the Government has been able to offer to get them to have children and their ability to bring up their children thereafter. The bigger issue which remains unaddressed is this \"thereafter\".
Take the example of a child who is growing up. The parents need to find time – and I mean quality time – to oversee the child's studies. They would want to find time to send the child for enrichment programmes on weekends. Worse still, some of them are unable to get good caregivers to take care of their child while they are at work. Remember – not every family wants their child to be put into childcare. Remember – not every family is fortunate to have good domestic helpers who can do the housework and oversee the child. We know how domestic helpers can create as many problems as they are able to help in some
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homes. So, as parents, they worry about what is going on at home. Plus, in today's context, getting a domestic helper is not cheap. In addition, some are less fortunate than others and their children grow up with problems in their studies or with emotional problems that require special attention. The children may not be able to cope with their schoolwork or their social environment, spend too much time playing computer games and so forth. All these add on to the challenges that parents face after childbirth.
The steps taken by the Education Ministry to run kindergartens is a step in the right direction. What prospective parents need is support after the child is born. I believe many can afford the fees for childbirth as they enjoy medical benefits. Their problem is what next, after the child is born. We have so far focused on dangling the dollar to get married couples to have children. Our policymakers have not adequately addressed the emotional and social support after the child is born. And I encounter many such issues that parents raise on bringing up children. The modern child is learning so fast that if the parents cannot cope, it will be a lost opportunity that can never be recouped. Hence, I hope the Ministry will continue to search for the answers. If we can find the answers, then the joy of bringing up children will be the draw. They will no longer see the child as a burden or a hindrance to career development.
In conclusion, financial help alone will not sway the decision of the married couples on the number of children they have. What the Ministry needs to work on and highlight is the joy of having children and the need to have more children.
Dr Intan Azura Mokhtar (Ang Mo Kio): Mdm Speaker, I support the Child Development Co-Savings (Amendment) Bill, in particular, in the areas of greater employment protection for our working mothers, shared parental leave, provision of paternity leave and extended childcare leave.
These are commendable changes that are necessary for our working parents – not so much to simply improve our current Total Fertility Rate, but more to provide the much needed support for our Singaporean parents to spend more quality time with their children and family and to have better work-life harmony.
While the amendments are lauded, there are some areas which I hope the Ministry can consider, study a little bit more and, hopefully, implement in the
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near future.
First, clause 4 of the amendment indicates the addition of section 9 subsection 5A. While the addition is welcomed, I would like to propose a further amendment. Instead of simply providing 56 days of paid maternity leave for all working mothers for their first and second confinements, and 112 days of paid maternity leave for their third and subsequent confinements, I would like to propose a more staggered paid maternity leave provision by the Government.
For the first confinement, it is the same – 56 days of paid maternity leave. For the second confinement, I would like to propose 84 days of paid maternity leave. For the third confinement, I would like to propose 112 days of paid maternity leave and an additional four weeks of half-pay maternity leave. For the fourth and subsequent confinements, I would like to propose 140 days of paid maternity leave and an additional four weeks of half-pay maternity leave.
While I understand that a longer total maternity leave period may compromise the initial or overall employment opportunity for the working mother, I feel that the extended maternity leave period beyond the current 16 weeks can be provided as an option for working mothers.
There are several compelling reasons to do this. One, the amount of paid maternity leave by the Government should increase with later confinements to indicate greater support for working mothers who have more children. In addition, the amount of time that a working mother needs to take care of a newborn and an older child or children is definitely more. Imagine nursing yourself back to health after giving birth, and taking care of a newborn baby and two older children who may be below the age of seven each – all at the same time. As a working mother of three children myself, I know how challenging that can be. Once one child falls ill, the others are quite likely to fall ill as well. It can be quite stressful.
Two, in light of the current employment crunch and to further protect the continued employment of working mothers, the Government can show greater support in this by bearing a larger proportion of the cost of employing working mothers compared to employers. In addition, it might just be easier and probably neater to employ a relief employee over a six-month period on a contract basis compared to over a four-month period to cover the employee who is on maternity leave.
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Three, the extended four weeks of half-pay or full-pay maternity leave can be made optional but it certainly can provide the mothers who have just given birth to their third or subsequent child the option to spend more time at home with her children and make it easier to nurse the newborn child with exclusively mother's milk for at least the first six months, as recommended by health professionals as well as the World Health Organization. As a mother who has done this, I know the difference it makes.
Next, clause 10 to include the new sections 12AA to 12AD is a welcome move. However, it is indicated therein that \"adoption leave must be consumed within a period of 12 months commencing on the date of birth of the child.\"
The hon Member Mr Dhinakaran has talked about this earlier, but I would like to add on just a little bit more. While the four weeks of adoption leave are rather generous, I would like to propose that the duration in which these four weeks can be taken be extended to 18 months from the birth of the child – up from the current 12 weeks given. On the part of the biological mother, more time ought to be given to the biological mother to spend time with the newborn child to fulfil the maternal instincts developed throughout pregnancy and for the biological mother to sufficiently nurse the child with mother's milk.
On the part of the adoptive mother, a longer period before the adoption process is completed and approved is also important to give more time for the adoptive mother to ease into the role as the mother and main caregiver to the child.
Essentially, this longer runway of 18 months is necessary to allow the child to have a smoother transition from the care of the biological mother to the adoptive mother and, above all, to ensure the well-being of the child. So, it is not merely an item to be passed on from one person to another.
Third, clause 11 which amends section 12B where two days of childcare leave are given to working parents with at least a child between the ages of seven and 12 years old, inclusive, is a right move.
However, for a working parent who has more than one child – and whose children can be either below seven years old, or between seven and 12 years old, or both – the maximum number of childcare leave they are eligible for, is still six days.
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I would like to propose instead for such parents to have the maximum six days of paid childcare leave – three days paid by the employer and three days paid by the Government – and an additional two days paid by the Government. Hence, working parents with more than one child below the age of 13 years old ought to have up to eight days of paid childcare leave. As I have said earlier, it certainly requires more time to take care of more children.
In conclusion, the Government has done much to help Singaporeans plan for a family and have children, such as giving priority for housing and providing child development co-savings and education financial support for the children, among others. We must not fail to acknowledge all these.
Notwithstanding, there are still areas in which the Government can continue to improve on and provide for Singaporean couples to help them have and raise children. The decision to have children is simply not based on the financial ability to raise them, but also on one's ability to spend quality time with them.
While money can provide for most physical needs, time is required to nurture human relationships and inculcate values. Hence, I hope that the Ministry will take a look at the additional measures that I have mooted earlier. Overall, I support the amendments to this Bill.
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The Minister, Prime Minister's Office, Second Minister for the Environment and Water Resources and Second Minister for Foreign Affairs (Ms Grace Fu Hai Yien): Mdm Speaker, thank you for allowing me to speak. Singaporeans are at the heart of our nation and the family is the bedrock of our society. Encouraging Singaporeans to get married and have children is our top priority and remains the central starting point of our population policies.
In January this year, we enhanced the Marriage and Parenthood (M&P) Package for the third time since it was introduced in 2001. The enhancements address the needs of Singaporeans in different stages of their marriage and parenthood journey – supporting Singaporeans in getting married and setting up a home, defraying the costs of having and raising children, strengthening childcare support, as well as encouraging the sharing of parental responsibilities and better work-life harmony. I would like to encourage Members to support this Bill. While the Bill focuses on leave-related enhancements, the Package aims to create a pro-family environment, as suggested by many Members who spoke before me. Allow me to touch on the Package more generally and the Bill specifically.
The M&P Package supports our young adults in getting married and raising children. It underpins our societal values on the importance of the institution of marriage and I am very glad that Members Mr Gerald Giam, Asst Prof Eugene Tan and Mr Laurence Lien have supported us on that. We agree that the society values the importance of marriage. But there are also other societal goals that the Package supports and promotes. These are, first of all, to encourage responsible parenting by both father and mother; to foster self-reliance, with the Government avoiding the provision of financial incentives as the primary motivation for having children; to help and support mothers to continue working; and to promote a pro-family environment in our society, particularly in our workplace.
We have adhered to these social norms and values in formulating our Package so that the populace knows where we stand on these issues.
For these reasons, most M&P measures benefit families broadly across all socio-economic segments and have no income criteria. These include the enhanced Baby Bonus, new Medisave grant for newborns and MediShield coverage for congenital and neonatal conditions, the enhanced Co-funding for Assisted Reproduction Technology Treatment and the enhanced Foreign Domestic Worker Levy Concession.
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The M&P Package also includes targeted measures which are aimed at supporting working parents. For example, the leave schemes are targeted at working parents to help them balance their work and family responsibilities and benefit all working parents, regardless of income.
In addition, we recognise that working mothers may require the help of their parents or parents-in-law, or grandparents, or a domestic helper, to take care of their children while they are working. The Grandparent Caregiver Relief and Foreign Domestic Worker Levy Relief are meant to support working women in such care-giving arrangements. Other M&P tax measures, such as the Parenthood Tax Rebate and Qualifying/Handicapped Child Relief, provide more broad-based support to both working fathers and working mothers.
Member Laurence Lien asked about support for children from low-income families. He spoke about the need to support all Singaporean children, especially those from lower-income backgrounds. While I agree that families of lower income deserve greater help in general, we need to recognise that financial assistance for low-income families is not the primary objective of the M&P Package. Giving low-income families more help under the Package may inadvertently send a message that is incongruent with our emphasis on being self-reliant. Instead, the Government helps low-income families through a range of social assistance programmes, such as in income support, housing, education and healthcare. The developmental needs of children from low-income families are supported by higher kindergarten, childcare and student care subsidies under the Ministry of Social and Family Development (MSF). Low-income families, for example, receive significantly higher housing benefits.
In summary, the M&P Package will continue to help Singaporeans realise their marriage and parenthood aspirations while continuing to shape societal norms and values in the process. Since its introduction in 2001, the measures have benefitted the families of about 350,000 children, and with the enhanced Package, we expect even more parents and children to benefit from our efforts to strengthen the pro-family environment.
Members Asst Prof Eugene Tan and Mr Gerald Giam have asked if we could provide more support through M&P measures for single unwed parents. The Singaporean society remains primarily Asian, and most Singaporeans still value the traditional family structure of having children within a marriage between a man and a woman. The community at large does not appear ready to accept single-parent families as the norm. In the 2012 M&P Study conducted by NPTD, 80% of single and 85% of married respondents agreed or strongly agreed that only legally married parents should have children. The Government
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believes that a stable, intact family structure provides a more conducive environment to raise a child. Our policies and the M&P Package carry this belief.
Notwithstanding this, we understand that, more often than not, single unwed parents are victims of circumstances and usually not by choice. The Government takes a child-centric perspective and has, over time, increased the schemes and benefits that single parents can tap for their child. These include enhanced childcare and infant care subsidies, Medisave grant for newborns, and the enhanced Foreign Domestic Worker Levy Concession. In addition, the Government has recently extended infant care and childcare leave provisions to unwed single parents. This move is in line with MSF's efforts to enhance support to vulnerable families, of which single parent families are one such group.
Members Asst Prof Eugene Tan, Ms Low Yen Ling and Dr Intan Mokhtar have made some suggestions to further enhance the leave measures. To address Dr Intan's comments on maternity leave, I would like to clarify that all working mothers of citizen children are entitled to 16 weeks of paid maternity leave regardless of confinement order. For the first two confinements, the first eight weeks of maternity leave are employer-paid. The last eight weeks are funded by the Government. For the third and subsequent confinements, all 16 weeks of leave are funded by the Government. As Dr Intan pointed out, this signals the Government's encouragement and support for working mothers to have more children, while taking into consideration concerns by employers on business costs and operations.
During the review of the M&P Package, NPTD consulted widely and received a range of feedback on the M&P leave schemes. There were views calling for an extension of maternity leave, and also views to maintain the status quo. While we received feedback that an extension of maternity leave may benefit some working mothers, many women were also worried about the impact on their employability, career disruption, job security and losing touch with work. At the same time, employers were concerned about business operations being affected in a tight labour market. Member Mr Dhinakaran has also shared with us his concerns in this area.
Internationally, Singapore's 16-week paid maternity leave provision is quite generous. For example, South Korea provides 15 weeks of maternity leave, Japan 14 weeks, Hong Kong 10 weeks and Taiwan eight weeks. Taking into consideration trade-offs, such as the employability of mothers and the possible impact on employers' business costs and productivity, we have assessed that
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16 weeks of maternity leave is about right.
On childcare leave, we recognise that parents need time off work to look after their children. This is why we increased the childcare leave provisions in 2008 from two days to six days per parent per year for parents with children below the age of seven. Parents of infants below the age of two can also take six days of unpaid infant care leave per parent per year. This gives parents of infants below the age of two a total of 24 days of infant and childcare leave per year to look after their young children, on top of the 16 weeks of maternity leave – that is, including shared parental leave – and the one week of paternity leave.
Parents with more children will be able to enjoy the higher childcare leave entitlement of six days per year for a longer period of time until all their children have turned seven years old. And with the extended childcare leave, they will now also enjoy two days of childcare leave per parent per year, until all their children have turned 13 years old.
While more childcare leave may help parents with more children better manage their work and family commitments, we have to be mindful that we do not inadvertently affect their employability. Employers may find it difficult to manage their operations and manpower needs if their employees are absent from work often or for an extended period of time. Even with the Government funding childcare leave, we are mindful that some companies face practical difficulties. Childcare leave enhancements, therefore, have to be considered carefully, taking into consideration the needs and concerns of both employers and employees.
We agree with Asst Prof Eugene Tan and Ms Low Yen Ling that fathers play an important role in caring for their children and we should support fathers to get more involved in raising their children. To encourage shared parental responsibility, we introduced one week of Government-Paid Paternity Leave and one week of Government-Paid Shared Parental Leave under the 2013 Package.
The introduction of paternity leave, together with shared parental leave, complements the existing six days of childcare leave per year and six days of unpaid infant care leave per year in the first two years, to enable fathers to have more time to care for and bond with their children. Altogether, working fathers can now enjoy about three weeks of paid leave and one week of unpaid leave in the year their child is born.
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The one week of Government-Paid Shared Parental Leave is shared from the working mother's 16 weeks of maternity leave to bond with the child.
Ms Low Yen Ling has made a case for stay-at-home-mothers. In the case of stay-at-home mothers who have chosen to take time off work to care for their children, the working fathers can still enjoy paternity leave, childcare leave and unpaid infant care leave to care for their newborns.
Members will surely know that this is the first time we are introducing shared parental leave. It is significantly more complex to implement and administer than the other forms of leave because it involves both parents and their respective employers. One week of shared parental leave is a manageable period which would allow parents and their employers to get used to this new leave scheme and for employers to make the necessary adjustments to their existing HR policies and systems.
The M&P leave provisions have been progressively enhanced over the years to better support working fathers and mothers in balancing their work and family commitments. We appreciate the suggestions from Members and will take them into consideration as we continue to study ways to better support our working parents.
In conclusion, I fully agree with hon Members Asst Prof Eugene Tan, Mr Laurence Lien and Er Dr Lee Bee Wah that it takes more than financial benefits to raise Singapore's birth rates. Ultimately, we all recognise that the decision to have and raise children goes beyond dollars and cents. Singaporeans have children because they value the joys and fulfilment of parenthood. And Mr Laurence Lien put it wonderfully, expressing the deep joy and happiness that we, as parents, feel. It is a deeply personal decision which involves intangibles, such as investments in both time and emotion, to nurture and raise a child to be the best that they can be, as Er Dr Lee Bee Wah has so appropriately described.
The enhanced M&P Package consists of a suite of both financial and non-financial measures to support Singaporeans in different stages of their marriage and parenthood journey. Non-financial measures in the Package, such as the pro-family leave measures, create a more supportive environment for raising children. They encourage shared parental responsibility. It signals where we, as a society, stand on that – that fathers have to get more involved now. It also helps parents better manage their work and family commitments, allowing them to find quality time to spend with their children and care for their
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needs. We are also encouraging employers to implement and sustain more work-life measures for their employees through the Work-Life Grant. MOE and MSF are making significant changes over the next few years to the pre-school education and care-giving sector to improve the accessibility, affordability and quality of pre-school education. This will address the many stresses that Er Dr Lee Bee Wah has described.
The M&P Package aims to improve the child-raising experience and is supported by many other Ministries, such as MND for housing, MOE on education, MSF on supporting our families and MOM in work-life and employment practices. This is a whole-of-Government approach towards marriage and parenthood.
However, as I said earlier on, getting married and having children remain a very personal decision. The majority of Singaporeans hold positive family values and dispositions. Most Singaporeans aspire to get married and have children. We hope that the society, every one of us, in our capacity as family members, friends, colleagues, bosses and neighbours, play a role, be supportive in helping our young Singaporeans achieve their aspirations – to meet their life partner, to spend some time meeting one another, to experience the joys of family and children, and nurture the next generation who will grow up to shape the future of Singapore.
We thank Members for their suggestions and will take them into consideration as we continue to study ways to better support Singaporeans in their marriage and parenthood journey. Madam, I support this Bill.
The Acting Minister for Social and Family Development (Mr Chan Chun Sing): Mdm Speaker, let me first thank all Members for their comments and suggestions on how we can move forward on this issue together. Let me round up Members' comments and put them into three sets of issues that we have to tackle.
First, many of you have given ideas on how we can extend the Marriage and Parenthood benefits to more parents. The second set of issues has to do with various suggestions on how we can refine the various leave schemes and benefits from both the perspective of the employers and the employees. And, third, most importantly, how do we create the entire environment for us to make
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Singapore the best place to have families and children?
Let me thank all Members for their suggestions. There are some things that we will do immediately. There are other things that we will do, perhaps, in due course, with your support.
Let me begin with the first. As Asst Prof Eugene Tan has mentioned, we have two sets of objectives in this entire discussion. Many Members have said that we want to continue to promote the family as the central institution in our society. We want to encourage people to get married; we want children to be able to have a happy environment within the ambit of a marriage. These are the reasons why we have the enhanced Marriage & Parenthood Package.
But many Members have also spoken of a different objective, which is that we should take care of the vulnerable families, especially their children, amongst us. As Members said, the children are innocent. They are brought to this world not because they have a choice and we should do our best to take care of them, regardless of their parents' circumstances.
These are two slightly different objectives. On the one hand, we do not want to send the wrong signal on the kind of values we hold in society towards marriage and the institution of the family. On the other hand, whatever else has happened, we want to be able to take care of all children amongst us and I think we can all agree on that.
For the first set of reasons, this is why we have the enhanced Marriage and Parenthood Package. We have addressed many of these challenges. For the second set of issues, we need another policy instrument. As many practitioners of policymaking will know, when you have two different objectives, you will need at least two sets of instruments. The Marriage and Parenthood Package is to meet one set of objectives, and we need another set of instruments to help the vulnerable families amongst us. I must say that we never, never, never discriminate against any child, regardless of what their parents did. I do not imagine what a single-parent family goes through. I come from one myself. I know it is difficult, which is why we endeavour to do our best to help the children, regardless of their circumstances.
But I would not say that the Baby Bonus is the most significant package to help the children. That has a different policy objective.
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We have other instruments to help children from vulnerable families. The most important thing that we can do for children in such vulnerable families is to provide them with the best education that they can get, to allow them to fulfil their potential to the best of their ability. The second thing that we can and must do for them is to make sure that their healthcare is provided for. These, to me, are the two critical things from my own personal experience, which is why we have invested so much in education and childcare to ensure that children, regardless of race, language, religion and socio-economic background, get the help that they need in getting out of the difficult situations that they are in.
If we look at the lifetime investment that we have in a child, I think the most significant one – and even in financial terms, the most significant one – will be in education. The subsidies that we give to every child, from infant care to childcare subsidies, education subsidies, Edusave, Post-Secondary Education Account (PSEA) and so on. The other very significant one is healthcare subsidies, which include the Medisave grant for newborns, MediShield coverage for congenital and neonatal conditions and other social assistance schemes. And we want to do more.
I have said during my Committee of Supply speech that in the coming year, we are looking forward to developing new measures to help vulnerable families – families that do not just need financial help but who require long-term handholding. Many of the single-parent families that Members have talked about fall into that category. They require financial help, mentorship, training, assistance in housing and so on and so forth. Our job and challenge is to package that help for them.
At the same time, we want to do what we can, to make sure that the children have access to this package of help and they know where to go to. As I have mentioned before, the most challenging thing for us when we help these families is to make sure that we can mobilise the resources of the community, to come forward together and provide the mentorship for these people.
I would say that we never, never discriminate against any children. Every child to us is precious. My Ministry will continue to assist them, but we understand different families need different packages and we will continue to design those packages for them.
While trying to simplify the schemes, it will not be possible for us to have one scheme to meet all the diverse needs of the different families in need and the different vulnerable families. I have no problem running different schemes,
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as long as I can meet the objective of helping each and every one of these families. I would like to encourage Members of this House to come and join us. Identify those families in need and help us to reach out to them.
I come to the second set of issues, which is about the refinement of the leave schemes. I think all Members supported the move towards paternity leave and the shared parental leave. We have made a start towards that trajectory. Where we eventually end up will depend on how fast and readily society is able to adjust. I would not rule out that, one day, the proportion between paternity leave and maternity leave may change. These are things that we, as a society, have to decide. But let us make the first step, to get us onto the correct trajectory. The rest of the second order details, we can adjust and refine along the way.
On adoption leave, Members have suggested a longer leave period, as well as more time for adoptive parents to take the leave. The Bill now enhances the adoption leave by making a voluntary scheme mandatory, and allowing it to be taken over 12 months from the birth of the child, instead of over six months previously. We have also shifted the start date of the adoption leave earlier on in the adoption process. Let us monitor this and see whether it meets the needs of the majority of the parents who want to adopt a child. As of today, the majority of them adopt their children within the first year. But if we need to make further adjustments, we can consider that in the future.
Asst Prof Eugene Tan has pointed out that there is a difference between maternity leave and adoption leave because maternity leave caters to the time required for the mother to physically recuperate from childbirth and nurse the infant before returning to work. It is for this reason that maternity leave is slightly different from adoption leave. Adoptive mothers who wish to take longer adoption leave, or couples who adopt older children, can tap on the six-day childcare leave and six-day unpaid infant care leave to spend more time with their adopted child.
On refinements to the protection provisions, Asst Prof Eugene Tan spoke about higher penalties for errant employers, while Mr Dhinakaran spoke about the penalties for errant employees and a whistle-blowing mechanism. We understand where the Members are coming from. We appreciate that. In designing any protection measures, there is always a need to balance the interests of the employers and the employees. What is most important in this is not the letter of the law but the spirit of the law.
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We hope all employers and employees can come on board to realise that it is a win-win and mutually beneficial relationship to promote a pro-family environment for employers to support employees in bringing up their families, and also for employees to realise that they, too, have a duty to work with their employers to work out a mutually beneficial relationship. This is part of the total environment which I will talk about later.
The current Bill represents a balance and this balance will evolve as society evolves.
We have already introduced higher penalties for errant employers – up to $10,000 in fines and/or 12 months of imprisonment for subsequent offences. Section 11 of the Child Development Co-savings Act also enables employers and the Government to recover payment from the employee if the payment was granted based on false or misleading information. Any employer, employee or even a third party can lodge a complaint to the Ministry of Manpower on employment malpractices he observes or suspects, and MOM will take the appropriate action. We would like to assure Mr Dhinakaran that all information provided, including the identity of the informant, will be kept confidential.
To sum up, let me come to the most important part, which is the third prong of what we have discussed, and how do we, together, create a pro-family environment for Singapore, and for Singaporeans to have children and a happy family.
I would characterise it in terms of three concentric circles. At the heart of it are the parents, the individuals. The second ring has to do with the environment that we live in, the society, the community. At the outermost ring, that has to do with our policies and the macro environment.
Let me start with the outermost ring. As Members of the House have mentioned, indeed, the Government provides the macro environment through laws and policies. We try to be as supportive as we can. Where we are able, we try to share the fruits of our labour with families, especially those who need it more. I hope Members of this House will agree with me that, within the finite pool of resources that we have, we should always try to help those who have less with a bit more. That is the way we go about designing our policies. Of course, some people might feel that they should get a bit more; some people might feel otherwise, but we should all agree that within the finite pool of resources that we have, we should help those with less, much more. That
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speaks for an inclusive society.
So, whether it is in terms of leave schemes or balancing the requirements between employees and employers, we will continue to find that balance. But the Government can only provide that part of the circle. We need the support of the employers, the businesses and the community to make for a more inclusive, more pro-family environment.
Beyond all the policies that the Government has, at the end of the day, the individuals, the parents come into contact with their employers day in, day out. They go into the work environment every day. What they experience will shape their perception towards the family. How pro-family the employers' practices are will shape and influence decisions made by the individuals. How we design our living environment, even our recreational environment, will send a signal to everyone about how welcoming we, as a society, are towards families and families with young children. How do we, as a community, respond to children screaming and running around us? Do we frown upon them or do we look at them with appreciative eyes? That speaks to the young parents deciding whether or not to have a child.
So, I agree with Members that we all have a responsibility and a part to play in making this pro-family environment possible, whether it is in the neighbourhood or in the workplace. We all can do our part.
Ultimately, that decision to start a family and have children is a deeply personal one. We can have all the correct policies, incentives and benefits and all the help schemes in the world, but if at the end of the day, our individual priorities and value systems are not geared towards having a family, then no matter what policies and help schemes we have, we will never be able to have that pro-family mindset.
We are not doing this because we are trying to see babies as economic digits. We want Singaporeans to have happy families because this is part and parcel of having a meaningful life in Singapore, beyond having a meaningful career.
Children are not economic digits. Children are part of our family life. It saddens me when people take out a balance sheet to try and calculate all the pluses and minuses financially, numerically, before they decide to make that leap of faith. I am sure our parents, with much less than us, never did that before they conceived us. If they had done so, maybe we would not be where we are.
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We would not even be here today. But it is a deeply personal choice.
What we can do is to make sure that we educate our young people and help them at every stage of their lifecycle. This is the reason why MSF has embarked on the Family Matters initiative. It is a life-cycle approach towards promoting family life, getting our people to share in the joys of family from young till they go out to work, and even after they have their children, at every stage of their lifecycle. From young, we have to start inculcating in our youths an appreciation of family life, that the family is the anchor of all that we do and it gives meaning to all that we do. When they are older, we try and help them to have the opportunities to meet their life partners, to settle down. Even after they got married, we try to give them help to make sure that we lessen the burden and the fear of starting a family. That is important.
But I am quite sure this will not yield us benefits in the short term, because this is a long-term challenge. It takes us many years to build that pro-family environment and mindset. And we want to make this possible across the entire environment – from the workplace to the community – which is why we are going to spend $40 million in the next three years to encourage that environment, to work with employers, to work with community partners, to bring that about. And we want to use all channels, all mediums, to send this message forth, and that is important.
If we get this right, then we will never talk about children as being a digit, because children become an intrinsic part of our family, part of our meaning in life. So, this is what we seek to do. At the end of the day, whether we talk about the M&P package or the TFR at the macro level, it boils down to individual decisions at the micro level. And this is where we need to have our values right, our priorities right, and then we can go forth and build that community that is pro-family, that business environment that is pro-family.
The Government will continue to endeavour to make sure that we walk this journey with all fellow Singaporeans. The Government will make sure that the macro environment is right, that we move on the correct trajectory to encourage the second circle – the businesses, the work environment, and so forth – to do their part. But, at the end of the day, we need to get the individual values and priorities right, without which the rest will not work.
On that note, I would like to thank all Members of the House for your support of this Bill, and I am quite sure that, with time, we will continue to evolve our policies to meet the changing needs of our society. And I hope that
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we can all walk this journey together and each of us doing our part to encourage a more pro-family environment to encourage that sense of love for our children.
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]
[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Chan Chun Sing]. (proc text)]
[(proc text) Bill considered in Committee. (proc text)]
[Mdm Speaker in the Chair]
[(proc text) Clauses 1 to 7 inclusive ordered to stand part of the Bill. (proc text)]
Clause 8 −
The Chairman: Clause 8. There is an amendment standing on the Order Paper Supplement. As inadequate notice has been given of this amendment, it is subject to my consent and the general assent of Members present. I give my consent for the amendment to be moved. Is it the pleasure of hon Members that the amendment be moved?
[(proc text) Hon Members indicated assent. (proc text)]
The Chairman:\tActing Minister for Social and Family Development, Mr Chan Chun Sing.
Mr Chan Chun Sing: Mdm Speaker, I beg to move,
[(proc text) \"In page 12, line 23, to leave out \"84\" and insert \"84A\". (proc text)]
This corrects a typographical error under section 12(1), which unwittingly omitted section 84A when applying the provisions of the Employment Act to the maternity leave scheme under the Child Development Co-Savings Act.
Section 84A of the Employment Act deals with the protection of the employee's right to maternity leave payment if the employee is retrenched
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during her pregnancy. It has been applied in the Child Development Co-Savings Act together with sections 77 to 86. The Ministry of Manpower has repealed section 85 in the current round of related Employment Act amendments, and section 12(1) was re-drafted to exclude section 85. However, it should be read as sections 77 to 84A and 86 instead of sections 77 to 84 and 86.
[(proc text) Amendment agreed to. (proc text)]
[(proc text) Clause 8, as amended, ordered to stand part of the Bill. (proc text)]
[(proc text) Clauses 9 to 21 inclusive ordered to stand part of the Bill. (proc text)]
[(proc text) Bill reported with an amendment; read a Third time and passed. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adjournment","subTitle":null,"sectionType":"OS","content":"[(proc text) Resolved, \"That Parliament do now adjourn to a date to be fixed.\" – [Dr Ng Eng Hen]. (proc text)]
Adjourned accordingly at
7.22 pm\tto a date to be fixed.
\tPage: 126
15 Mr Lim Biow Chuan asked the Minister for Health in light of the 10th anniversary of the SARS episode, in what ways will the Ministry continue with its education programme to remind Singapore residents of the need to observe their personal hygiene and to take steps not to spread cough or flu viruses when affected.
Mr Gan Kim Yong: Since the SARS crisis in 2003, the Health Promotion Board (HPB) has been putting out education campaigns regularly to emphasise the importance of good hygiene practices to prevent the spread of respiratory diseases. Several key strategies have been used.
Firstly, HPB uses mass media, such as radio, TV commercials and print media, to increase the population's knowledge and awareness on how respiratory diseases are transmitted and can be prevented. Examples of this approach would include the flu campaigns that are rolled out twice a year, around May and November.
Secondly, HPB proactively reaches out and educates the public on social responsibility and good hygiene practices through workplace programmes and community talks. Behaviours, such as hand washing and covering one's mouth and nose when sneezing or coughing, can help to prevent the spread of respiratory diseases. Individuals are also reminded to seek medical attention promptly if they have symptoms, such as fever and cough. These educational messages, while simple, will help to reduce the spread of diseases like influenza.
Thirdly, educational outreach to schools is an important strategy in promoting personal and social hygiene. Interactive skits for primary school students as well as the \"Health on Wheels\" initiative that also targets pre-schoolers, ensure that these messages are delivered in a fun yet effective way. HPB also launched the \"Let's Wash Hands\" initiative in primary schools in 2012. This programme sets out to reach all Primary 1 and 2 students by 2015. Initiatives for relevant stakeholders, such as parents and teachers, have also
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been implemented.
Finally, HPB works closely with community and business partners to roll out setting-specific programmes. An example of this work would be the programmes for staff and volunteers at community centres and eldercare centres. These interventions couple the awareness of flu and other respiratory diseases with practical application of necessary skills like mask use and proper hand washing techniques.
Infectious diseases continue to be a concern in Singapore. We will continue to educate and encourage Singaporeans to adopt good hygiene practices to prevent the spread of respiratory diseases in our community. In recent months, we see a rise in dengue cases in Singapore, MOH is supporting NEA's efforts in public education on dengue prevention.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Layout of Traffic Junctions","subTitle":"Making changes to ensure safety at accident-prone junctions","sectionType":"WANA","content":"17 Er Dr Lee Bee Wah asked the Minister for Transport following recent fatal traffic accidents, whether LTA will (i) study measures to amend the layout of traffic junctions; (ii) enhance safety measures at junctions that are accident-prone, such as Lentor Avenue and Yio Chu Kang Road; and (iii) impose harsher penalties on motorists who cause death due to their recklessness.
Mr Lui Tuck Yew: LTA designs traffic junctions with safety as the paramount consideration, while ensuring reasonably smooth traffic flow. LTA frequently studies and reviews traffic junction designs based on international best practices, and applies them to local conditions. Safety enhancements that have been implemented recently include a separate set of traffic lights to control right-turning movements, lighted road studs along pedestrian crossings and advance warning lights for traffic signals turning red.
For the specific junction at Lentor Avenue and Yio Chu Kang Road, there has not been any major traffic accident in the last three years. Nevertheless, we note the Member's feedback and LTA will do a safety review for that junction.
\tPage: 128
Currently, motorists who cause death due to reckless, rash or negligent driving can receive a maximum penalty of up to five years' imprisonment, a fine and a driving ban, upon conviction. These penalties are aligned to other criminal acts under the Penal Code where a death is unintentionally caused. The Singapore Police Force reviews the adequacy of the penalty framework regularly and will impose harsher penalties if required.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Requests for Banking Account Information","subTitle":"Requests received from Malaysia and Indonesia","sectionType":"WANA","content":"22 Mr Png Eng Huat asked the Prime Minister (a) in the past 10 years, how many times have Malaysia and Indonesia approached Singapore to provide information on their citizens who operate bank accounts out of Singapore, for tax or investigation purposes; and (b) whether there are any suspicious and irregular bank accounts detected in the process.
Mr Tharman Shanmugaratnam (for the Prime Minister): Singapore cooperates readily with foreign jurisdictions to fight financial crime. The channels of cooperation for tax and investigation purposes include Mutual Legal Assistance under the Mutual Assistance in Criminal Matters Act and Exchange of Information provided for under our bilateral tax agreements.
Our cooperation under each channel is guided by international standards and norms. Furthermore, under our anti-money laundering regime, financial institutions in Singapore are required to be vigilant against suspected illicit monies. They have to know their customers, and to report any suspicious transactions in customers' accounts.
Under the Mutual Assistance in Criminal Matters Act, Singapore stands ready to assist foreign authorities investigating possible criminal activity, including the exchange of bank account information. We can provide mutual legal assistance for investigations into money laundering as well as a wide range of serious crimes – including corruption, bribery and fraud. This is in line with the recommendations of the Financial Action Task Force (FATF) and the United Nations Convention Against Corruption. Through our bilateral tax agreements, we also exchange information actively with Malaysia and
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Indonesia for tax investigations.
It is, generally, not the international practice among authorities to reveal the number of legal assistance and information requests from specific countries. However, I can assure Members that we have helped fully on all requests from Malaysia and Indonesia in accordance with our current tax agreements. This includes information on details of transactions and companies.
We have also offered to Malaysia and Indonesia to update our tax agreements with the internationally agreed Standard for exchange of information for tax purposes. The Standard provides for the exchange of bank information. Once our tax agreements with Malaysia and Indonesia are updated with the Standard, just as for our tax agreements with other countries, we can build further on our good working relations with Malaysia and Indonesia and enhance tax cooperation further.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Benefits from Mergers and Acquisition Scheme","subTitle":null,"sectionType":"WANA","content":"23 Mr Yee Jenn Jong asked the Deputy Prime Minister and Minister for Finance (a) how many companies have benefitted from the Mergers and Acquisitions (M&A) Scheme since its inception in 2010; (b) how many companies that have claimed tax allowances under this scheme are SME companies; (c) how much M&A tax allowances have been granted; and (d) what are the average and the median deal sizes of M&A supported by this scheme.
Mr Tharman Shanmugaratnam: The Mergers and Acquisitions (M&A) scheme was introduced in Budget 2010. It supports businesses that restructure and grow through mergers and acquisitions by defraying the costs of such transactions. Under the scheme, the acquiring company in qualifying deals may claim a tax allowance of 5% of the deal value, up to a maximum allowance of $5 million. The cap on allowance helps focus the benefits of the M&A scheme on SMEs. We also remit stamp duties on the transfer of unlisted shares for such deals.
Based on the tax returns for the Years of Assessment 2011 and 2012, there are 42 companies which have benefited from the scheme. Of these, 34 or 81% are SMEs (companies with annual revenue of up to $100 million). The average and median size of deals supported by the scheme is $25 million and $3 million
\tPage: 130
respectively. The total allowance granted is $40 million.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Sinkholes Created by Construction of MRT Downtown Line","subTitle":null,"sectionType":"WANA","content":"25 Mr Gerald Giam Yean Song asked the Minister for Transport (a) how many sinkholes have occurred since the start of excavation works for the MRT Downtown Line; (b) how many of these sinkholes caved in again after being filled; (c) how many motorists or pedestrians suffered injury or had their vehicles damaged as a result of these sinkholes; (d) whether this is a reflection of the quality of planning conducted by LTA prior to tunnelling works or such works not being carried out according to plan; and (e) what is the Ministry doing to eliminate the occurrences of such sinkholes which can potentially cause injury or death to motorists or pedestrians.
Mr Lui Tuck Yew: Sinkholes can occur naturally when earth beneath the surface is eroded, typically by water, resulting in subterranean cavities. In the excavation of underground structures, cavities can form when water or fluvial sand leaks into the excavated area. If these cavities are not detected and filled up in time, they will eventually cause a sinkhole.
For the Downtown Line, there has been only one incident of sinkhole to date. This happened on 16 March 2013 at Woodlands Road. Investigations show that due to the varied nature of the ground conditions, the excavation works of Downtown Line Stage 2 (DTL2) had led to differential ground settlement, causing an underground water pipe to rupture. The soil movement, coupled with water from the ruptured pipe, weakened the ground under the road and resulted in the sinkhole.
On 23 July 2012, there was also an incident of a localised road depression along Bukit Timah Road resulting from tunnelling works for DTL2. The depression was detected promptly and action was taken to remedy it, before it deteriorated to become a sinkhole.
For both incidents, there was no injury to motorists or pedestrians, nor damage to vehicles.
\tPage: 131
There had been a number of other sinkhole incidents, but these were not related to any MRT construction activity. In the Keppel Road incident in January this year, investigations found that the sinkhole was caused by an old water pipe bursting. A car was trapped but no one was hurt in the incident. In the two cases on Clementi Road in March 2013, preliminary investigations show that the erosion of soil into an old abandoned utility manhole may have caused the sinkhole and led to the road caving in again after the first sinkhole had been filled. A motorcyclist was reported to be slightly injured trying to avoid the sinkhole.
To minimise the occurrence of sinkholes, prior to any major underground construction, LTA carries out comprehensive investigations of ground conditions and ensures that appropriate construction methods are used. Extensive instrumentation is installed to monitor the ground and building settlement at all times. In addition, LTA closely monitors the condition of the roads, especially those near to excavation sites or where tunnelling works are ongoing, to look out for signs of ground settlement or movement. Tunnelling control parameters are also strictly followed to ensure safety. In addition, LTA checks for potholes, cracks and other physical defects on all roads in Singapore regularly.
I assure Members that the safety of motorists is of utmost importance. My Ministry takes a serious view of these incidents. LTA will step up its monitoring efforts. This includes installing more extensometers, which are geotechnical instruments that locate and measure settlement, displacement and deformation in soil and rock, as well as opening up small sections of the pavement or road surface adjacent to excavation sites to physically check for the presence of any voids underneath. To minimise the risk of sinkholes forming due to soil erosion into abandoned utility structures underneath public streets, as in the case of the sinkhole that re-collapsed at Clementi Road, LTA will work with the utility agencies and companies to check their underground structures and records, and to carry out the necessary removal or rectification works. LTA will also work with the utility agencies to tighten the monitoring and maintenance regime to prevent rupture of underground water pipes which will weaken the ground and lead to formation of sinkholes.
\tPage: 132
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Prioritising Requests for Additional Buses and Bus Routes","subTitle":null,"sectionType":"WANA","content":"26 Mr Arthur Fong asked the Minister for Transport (a) how will LTA prioritise competing requests for more buses and bus routes; and (b) how will LTA manage road use with the increase in buses on the roads and current traffic congestion on many roads.
Mr Lui Tuck Yew: LTA works closely with the local communities to understand and prioritise their different travel needs and requests. In deciding on new routes or service improvements, LTA also incorporates planning information, public feedback, data from its ticketing system, and ground checks. New routes are typically added in areas where there are new public housing developments, such as Yishun, Sengkang and Punggol, and generally implemented in tandem with their completion.
With more buses on the road, more priority will be given to them. Today, there are about 180 kilometres of bus lanes and over 200 locations where the Mandatory Give Way to Buses Scheme is implemented. Over the next two years, the coverage of bus priority measures will be enhanced with 30 more kilometres of bus lanes and the Mandatory Give Way to Buses Scheme will be increased by another 150 bus stops. The number of bus hubs, where several buses can pick up passengers at the same time, will also be quadrupled from the existing 10. Enforcement of bus priority schemes will be stepped up, as infringements will result in delays for buses.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Offshore Islands as Sites for Foreign Workers' Dormitories","subTitle":null,"sectionType":"WANA","content":"30 Mr Gan Thiam Poh asked the Minister for National Development whether the Ministry will consider having some of the nearer offshore islands to house our foreign workers, especially construction and shipyard workers.
Mr Khaw Boon Wan: We are open to such an idea of housing some foreign workers at nearby offshore islands. We have, in fact, housed workers on Jurong Island and Pulau Brani, at different times, scales and duration.
\tPage: 133
However, not all offshore islands are suitable, due to the availability of supporting infrastructure, such as sewers, as well as other planning considerations. But we will continue to look for suitable opportunities to help us house the foreign workers properly and without causing too much inconvenience to them or to Singaporeans.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Access to Pay and Tax Records for Processing of MediFund","subTitle":null,"sectionType":"WANA","content":"33 Mr Gerald Giam Yean Song asked the Minister for Health whether Government restructured hospitals are currently able to tap into patients' CPF or IRAS records (with their consent) to process MediFund and other applications and, if not, when will the hospital systems be enhanced to spare patients the hassle of submitting their payslips, CPF statements or tax returns.
Mr Gan Kim Yong: Since last year, with consent, the Public Hospitals are able to tap into patients’ and their families' records of income at CPF, and Annual Value of residential property at IRAS, and use the information for financial counselling, means-testing for subsidies, and applications for MediFund or other assistance.
Nevertheless, there is still room for improvement. For example, CPF data do not capture incomes above $5,000. We are currently working on tapping into IRAS records for full income data and we hope to implement it by early next year. We will continue to improve our processes and train our staff to minimise administrative hassle for patients and their families.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Places at School-based Student Care Centres","subTitle":null,"sectionType":"WANA","content":"34 Mr Yee Jenn Jong asked the Minister for Education (a) what is the total number of student care places across all school-based student care centres (SCCs) that are already in operation; (b) how many more SCCs and student care places will be available in schools over the next two years; and (c) what are the measures that the Ministry has put in place to ensure SCCs are staffed with
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trained personnel.
Mr Heng Swee Keat: At the Committee of Supply sitting in 2012, MOE had announced our commitment to improve the quality, accessibility and affordability of school-based SCCs as one of the many measures to support students from low- to middle income families. We had pledged then to increase the number of school-based SCCs to 70 by the end of 2014. With strong community support and proactive efforts by our schools, there are already 80 school-based SCCs as of today with enrolment of more than 6,500 students.
At the recent Committee of Supply, we have said that more school-based SCCs will be set up in Primary schools, as part of our efforts to level up and support students. We will make an announcement on this when the details are ready.
Our schools select their SCC operator through an open procurement approach. Prospective operators are required to submit proposals that include the nature of programmes to be offered, fees to be charged, staff-to-student ratio, and the qualifications and experience of the staff. Schools will evaluate the proposals submitted and select the SCC operator that offers the best package in terms of quality and affordability.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Plans to Develop Singapore into a Global Interactive Digital Media Hub","subTitle":null,"sectionType":"WANA","content":"35 Mr Yee Jenn Jong asked the Minister for Communications and Information (a) whether he can provide a status report on the initiatives to develop Singapore into a global Interactive Digital Media Hub, in particular (i) the amount of funds invested since the launch of the initiative in 2006; (ii) a breakdown of the types of projects that are supported; and (b) whether the Government is on track to achieve its targets of S$10 billion in value-add and 10,000 new jobs in the industry by 2015.
Assoc Prof Dr Yaacob Ibrahim: In 2006, the National Research Foundation (NRF) allocated S$500 million to fund the development of a strategic Interactive Digital Media (IDM) research programme.
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The Interactive Digital Media strategy anticipated two big technological trends. The first is the increasing digitisation of media content. The second is the emergence of new ways for media consumers to interact with content. It was recognised that the impact of IDM would ultimately be seen in the growth of the media industry. When the IDM Programme was first established, it was hoped that the media industry as a whole would reach S$10 billion value-add (VA) by 2015.
Supervening events, such as the global financial crisis of 2008 and rapid technological changes in media sub-sectors, such as printing (which would not have significantly benefited from IDM), meant that the media industry did not grow as fast as originally estimated. The media sector reached S$7.4 billion in 2011 with 14,700 new jobs created since 20061. Nevertheless, the programme has created significant new capabilities which will continue to benefit Singapore in the future.
To date, the IDM Programme has funded more than 400 R&D projects and supported more than 3,000 Researchers, Scientists and Engineers (RSEs). In addition, more than 450 products and services have been launched and more than 1,500 research papers published. In terms of investments, a total of S$241 million has been committed in Singapore. VA for the IDM sector alone grew by 23% from S$763 million in 2008 to S$1.41 billion in 20112.
IDM funding amounting to S$328 million has been committed to three funding initiatives.
The first initiative establishes partnerships between local universities and their overseas counterparts. S$171 million was committed and a total of eight International Research Centres (IRCs) have been formed. For example, the National University of Singapore and Keio University in Japan set up the Centre for Ubiquitous Technology for Embodiments (CUTE). CUTE conducts research on multi-sensory human communication, such as touch, smell and taste, through technologies embedded in everyday life.
Research undertaken at these international research centres are being commercialised. Taken together, these projects have resulted in 63 patents filed and 1,318 papers published at prestigious international scientific journals and international conferences, as well as attracting a total external funding of S$14.07 million from organisations, such as the US Air Force, Philips Electronics and Microsoft Research Asia.
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The second initiative is to foster IDM startups. A commitment of S$34 million was set aside to support these startup projects. IDM funding provides an initial grant of S$50,000. If the startups are able to raise their own funding of up to S$100,000, the IDM Programme will match it dollar-for-dollar.
To date, more than 200 start-ups and over 700 entrepreneurs and individuals have been supported via a pool of 10 incubators from the public and private sectors. A total follow-on funding of more than S$20 million has been raised by the IDM startup companies.
The third strategic initiative establishes test-beds and innovation platforms. It also identifies businesses that can stimulate demand for IDM innovations. A total of S$123 million was committed to support companies through this effort. In turn, these companies have been successful in attracting third-party investments of more than S$100 million. Affle is a Singapore-headquartered mobile advertising company that secured over S$12.4 million in investments from D2 Communications, Japan’s largest mobile advertising company.
While many of the IDMPO projects are still in the developmental stage, a few of the projects have received international recognition. KAI Square, a company specialising in innovative technology-related surveillance services and monitoring solutions, was named in the Deloitte Technology Fast 500 Asia Pacific 2011 list. With revenue growth of 777% over a three-year period from 2009 to 2011, KAI Square was the fastest growing Singapore company, ranking 62 out of 500 in Asia Pacific. The company is now venturing into overseas markets with the set up of marketing offices in Beijing, Shanghai, Taiwan and Bangkok.
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","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":["1 : Source DOS/EDB.","2 : Deloitte IDM Sector Study 2012 – http://www.deloitte.com/assets/Dcom-Singapore/Local Assets/Documents/Industries/2012/IDM_report_2012_final.pdf."],"footNoteQuestions":["35"],"questionNo":"35"},{"startPgNo":0,"endPgNo":0,"title":"Flexi-Hour PMET Jobs","subTitle":"Increasing prevalence of such jobs to attract economically inactives back to workforce","sectionType":"WANA","content":"38 Ms Tan Su Shan asked the Acting Minister for Manpower (a) whether the Ministry monitors the number of new roles or jobs created that offer flexible hours, in particular for PMET roles; and (b) whether any measures can be taken to increase these types of new and flexible jobs and to offer such opportunities to mothers who may wish to return to the workforce on a part-time basis.
Mr Tan Chuan-Jin: The Government has put in place a range of initiatives to promote flexible work arrangements and to help individuals return to the workforce. This includes WorkPro that was launched this month as a one-stop programme to encourage employers to build progressive workplaces through funding assistance for flexible work arrangements and to recruit back-to-work individuals, including mothers, by supporting job redesign and on-the-job training.
In particular, the Work-Life Grant under WorkPro provides funding of up to $160,000 per employer to encourage the implementation and support of the use of flexible work arrangements by their employees. Employers who hire and retain back-to-work individuals can also receive On-the-Job Training Allowances and New Hire Retention Incentives of up to $4,000 per worker. This encourages employers to put in more effort to hire and retain back-to-work individuals, including by equipping them with the right skills on the job. We also work with various agencies, including the Employer Alliance, to promote positive mindsets and build capability to offer flexible work arrangements at the workplace through forums, tool kits and case studies. Through these measures, we hope that more employers will redesign their workplaces and offer more flexible jobs to attract those who wish to return to the workforce.
We will continue to work closely with our tripartite partners to facilitate the gainful employment of back-to-work individuals on flexible work arrangements or otherwise. While we do not track statistics on the number of job vacancies that offer flexible working hours, we do monitor the proportion of establishments that offer flexible working arrangements as an indication of how commonly available such options are. We are heartened that there is a rising trend of employers offering flexible work arrangements to their
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employees. In 2012, 41% of establishments offered at least one form of work-life arrangement to their employees, up from 25% in 20073.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":["3 : Source: MOM's Conditions of Employment Survey 2010. The survey covered establishments in the private sector each with at least 25 employees and the public sector comprising Government Ministries, Organs of State and Statutory Boards."],"footNoteQuestions":["38"],"questionNo":"38"},{"startPgNo":0,"endPgNo":0,"title":"Wheelchair-Accessible Bus Stops","subTitle":null,"sectionType":"WANA","content":"39 Mr Png Eng Huat asked the Minister for Transport (a) how many bus stops currently remain inaccessible to Wheelchair Accessible Buses (WAB); and (b) what is the target date to make all bus stops accessible to WAB.
Mr Lui Tuck Yew: Of the 4,653 bus stops we have today, 4,484, or 96% are wheelchair-accessible. The remaining 169 bus stops are not yet accessible to persons in wheelchairs, due to reasons, such as site constraints, which would require adjacent properties to be redeveloped first.
LTA will continue to work towards making all bus stops wheelchair accessible by upgrading them when opportunities arise.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"School Programmes Inculcating Respect for All Job Types","subTitle":null,"sectionType":"WANA","content":"40 Mr Teo Siong Seng asked the Minister for Education whether the Ministry will consider developing programmes from the primary school level onwards that inculcate respect for all job types, including blue-collar and low-skilled jobs, so as to change Singaporeans' mindsets on job preferences.
Mr Heng Swee Keat: Respect for all is a fundamental value taught to all students by our schools. In addition, as part of the Character and Citizenship Education curriculum from 2014, the Education and Career Guidance (ECG) module further emphasises this value within the context of education courses
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and occupations.
Schools provide ECG to students from Primary to post-Secondary levels, based on their developmental needs. At the Primary level, ECG helps our pupils know themselves – their abilities and interests and be aware of the many different occupations in the world of work. Teachers help to correct misconceptions about occupations, such as gender-role stereotypes and perceived social status of certain occupations.
At the Secondary level, teachers will reinforce in our students, an appreciation for the value of all occupations and how different jobs contribute to the well-functioning of society. Students will have opportunities to explore a wide array of occupations, including new jobs and new industries.
To supplement the curriculum, an online ECG portal, ecareers.sg, has been implemented in schools since 2009. This allows students to discover their own strengths and interests, engage in education planning and career exploration. The occupational database comprises jobs requiring different skills available in Singapore. This expands our students’ minds to consider jobs aligned to their interests and abilities that they have not thought of.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Annual CPF Medisave Account Balances from Accounts of Deceased","subTitle":null,"sectionType":"WANA","content":"41 Mr Patrick Tay Teck Guan asked the Minister for Health for each year from 2008 to 2012, what is the average amount of monies left in the CPF MediSave Account of CPF account holders who have passed away.
Mr Gan Kim Yong: Half of CPF members aged 65 or older who passed on in 2012 had about $2,700 or less. About one-third of them had less than $1,000. Some of them may also have benefited from Government top-ups, as well as from the use of their children's MediSave either as a form of top-up or direct payment for healthcare expenses on their behalf.
We need to help Singaporeans maintain adequate MediSave balances to help pay for their old-age healthcare expenses, as well as remain covered under MediShield, possibly up to age 90.
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Any unused MediSave balance forms part of the total CPF balances which are bequeathed to the deceased member's family.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Grant of Singapore Citizenship","subTitle":null,"sectionType":"WA","content":"1 Asst Prof Tan Kheng Boon Eugene asked the Prime Minister (a) in each of the five years prior to and after the commencement of the Constitution of the Republic of Singapore (Amendment) Act 2004, how many children born overseas to Singapore Citizens were granted Singapore citizenship; and (b) how many of these children were already holding another nationality or citizenship when registering for Singapore citizenship.
Mr Teo Chee Hean (for the Prime Minister): Between 2000 and 2004, an annual average of 700 Singapore Citizenships (SCs) were granted by descent to minors born overseas to Singapore Citizens. Sixty-four percent of these minors declared that they were holding a foreign citizenship at the point of registration for SC.
Between 2005 and 2009, there were 1,100 SCs granted annually by descent to minors born overseas to Singapore Citizens. Sixty-eight percent of these minors declared that they were holding a foreign citizenship at the point of registration for SC.
Individuals with a foreign citizenship must renounce their foreign citizenship within 12 months upon reaching the age of 21 to retain their Singapore Citizenship.
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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":"Breakdown of Statistics on Foreign Spouses of Singapore Citizens","subTitle":null,"sectionType":"WA","content":"2 Mr Laurence Lien asked the Deputy Prime Minister and Minister for Home Affairs over the last 10 years, what is the breakdown for all non-Singapore spouses married to Singapore Citizens by immigration status and gender.
Mr Teo Chee Hean: Foreign spouses of Singapore Citizens (SCs) are typically granted a Long Term Visit Pass (LTVP) in the first instance. ICA will require some time to assess that the marriage is stable before it considers the foreign spouse for Permanent Residence (PR) and, subsequently, for Singapore Citizenship (SC).
Based on ICA records, the number of foreign spouses sponsored by their SC spouse for long term immigration facilities and subsequently for Permanent Residence and Singapore Citizenship under the Family Ties Scheme has been on the increase in the last 10 years.
The total number holding LTVP, LTVP+, PR or citizenship in 2003 and 2012 are as follows:
The majority of foreign spouses sponsored by their SC sponsors for long-term immigration facilities, PR or citizenship under the Family Ties Scheme are
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females.
The above figures do not include foreign spouses who applied for and were granted PR or SC under other schemes, such as the Professionals/Technical Personnel and Skilled Workers' scheme nor those who were already PR at the time of marriage.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Singapore Public Sector Outcomes Review (SPOR)","subTitle":null,"sectionType":"WA","content":"3 Asst Prof Tan Kheng Boon Eugene asked the Deputy Prime Minister and Minister for Finance whether there are plans to introduce quantitative measurements of performance outcomes in key areas of national interest in future editions of the Singapore Public Sector Outcomes Review (SPOR).
Mr Tharman Shanmugaratnam: The Singapore Public Sector Outcomes Review (SPOR) reports several quantitative measures of outcomes that are of national interest, such as real median monthly household incomes, fertility rates and crime rates.
However, not every desired outcome can be measured with quantitative indicators. An example is \"community bonding\", where an indicator like the volunteerism rate provides a useful reference point but not the complete picture. SPOR supplements quantitative measures with qualitative assessments aimed at a more holistic perspective of an issue.
Nevertheless, we will certainly consider further quantitative measures of outcomes where appropriate in future editions of SPOR.
In addition to SPOR, the Government releases other reports, such as MTI's Economic Survey of Singapore and MOM's Labour Market Report, which provide a wider range of quantitative indicators in their respective domains.
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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":"Internationalisation Finance Scheme (IFS) and Loan Insurance Scheme","subTitle":"LIS and LIS+","sectionType":"WA","content":"4 Mr Yee Jenn Jong asked the Minister for Trade and Industry in the past three years (a) how much loans have been approved under the Internationalisation Finance Scheme and Loan Insurance Scheme (LIS and LIS+) respectively; (b) what is the average revenue turnover of the successful applicant companies; (c) what is the breakdown of the industries that the successful applicant companies come from; and (d) what is the rejection rate of such applications to the financial institutions.
Mr Lim Hng Kiang: The Internationalisation Finance Scheme (IFS) assists Singapore-based companies to expand overseas, by supporting companies to acquire fixed assets for use overseas, or financing the working capital expenses of their overseas projects. The total value of loans approved under IFS in 2010, 2011 and 2012 were S$378 million, S$195 million and S$121 million respectively, and the average annual turnover of successful applicant companies is around S$40 million. The decline in approved IFS loan quantum over this period was due to the scaling back in 2010 and withdrawal in 2011 of enhancements made to IFS as part of the Special Risk-Sharing Initiative (SRI) in 2009. The 2012 levels, therefore, are more representative of the steady-state runrate for our schemes.
Of the approved IFS loans, 41% by value went to the infrastructure services sector, 26% to the electronics and precision engineering sector, 12% to the lifestyle services sector, 7% to the information communications technology sector, 6% each to the commodities and environmental services sectors, 2% to the transport and logistics sector, and the remaining 1% to the business services sector.
The Loan Insurance Scheme (LIS and LIS+) enables SMEs and Singapore-based internationalising companies to have better access to working capital financing and trade financing, by supporting insurance against default. The total value of loans approved under LIS and LIS+ in 2010, 2011 and 2012 were S$2.3 billion, S$1.6 billion and S$1.3 billion respectively, and the average annual turnover of successful applicant companies is around S$15 million. As with IFS, the decline in approved LIS loan quantum over this period was a result of the scaling back and withdrawal of the SRI enhancements in 2010 and 2011
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respectively.
Of the approved LIS and LIS+ loans, 14% by value went to the construction sector, 13% went to the manufacturing sector, 11% to the services sector and the remaining 62% to the wholesale and retail trade sector.
Interested applicants will first consult their relationship managers (RMs) at the participating financial institutions (PFIs), whereupon the RM will conduct a preliminary screening, before advising the interested applicant whether or not to submit an application. The RMs do not maintain a record of the number of cases where they have advised potential applicants against submitting an application.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Micro Loan Programme (MLP)","subTitle":null,"sectionType":"WA","content":"5 Mr Yee Jenn Jong asked the Minister for Trade and Industry (a) how much loans have been approved over the past three years to companies under the Micro Loan Programme (MLP); (b) what is the average interest rate for the loans; (c) what is the breakdown of the industries that the successful applicant companies come from; and (d) what is the rejection rate for such applications to the banks.
Mr Lim Hng Kiang: The Micro Loan Programme (MLP) is a fixed interest rate working capital financing programme for micro-enterprises with no more than 10 employees. The total value of loans approved under MLP in 2010, 2011 and 2012 were S$144.1 million, S$94.6 million and S$120.7 million respectively, with the corresponding median interest rates being 5.5%, 5.5% and 5.75%. The dip in 2011 was due to the retraction of the enhancements to government loan schemes under the Special Risk-Sharing Initiative (SRI) Package. Loan levels have since risen.
Of the approved MLP loans between 2010 and 2012, 14% by value went to the construction sector, 12% to the manufacturing sector, 37% to the services sector, and the remaining 37% to the wholesale and retail trade sector. The wholesale and retail trade sector takes up a significant share of MLP due to the sector's comparatively higher working capital requirements than other sectors.
Interested applicants will first consult their relationship managers (RMs) at the participating financial institutions (PFIs), whereupon the RM will conduct a preliminary screening, before advising the interested applicant whether or not
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to submit an application. The RMs do not maintain a record of the number of cases where they have advised potential applicants against submitting an application.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Independent Verification of Drop Call Rates on Mobile Operators' Network Traffic Logs","subTitle":null,"sectionType":"WA","content":"6 Ms Lee Li Lian asked the Minister for Communications and Information whether the drop call rates for 2012 based on mobile operators' network traffic logs cited in IDA's Quality of Service (QoS) Standards for 3G Public Cellular Mobile Telephone Service are independently verified by IDA or third party experts.
Assoc Prof Dr Yaacob Ibrahim: IDA audits the operators' network traffic logs, in order to validate the operators' drop calls rate. IDA also conducts independent checks on drop call rates across the island, including roads and MRT tunnels.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Monthly Network Availability for Public Cellular Mobile Telephone Services","subTitle":null,"sectionType":"WA","content":"7 Ms Lee Li Lian asked the Minister for Communications and Information (a) for the past three months, what is the monthly network availability for Public Cellular Mobile Telephone Services for the three operators in Singapore; (b) why is network availability a compliance requirement for broadband services but not for Public Cellular Mobile Telephone Services; and (c) in view of M1's nationwide service outage on 15 January 2013 (i) whether the Ministry will provide an estimated cost suffered by businesses and consumers as well as loss of productivity; and (ii) what can the Ministry do in the future to ensure that such disruptions do not happen.
Assoc Prof Dr Yaacob Ibrahim: IDA’s Quality of Service (QoS) frameworks for mobile telephone services comprise of indicators meant for operators’ compliance and IDA's monitoring. As the three mobile telephone operators have typically achieved an average of more than 99.9% network
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availability for many years, IDA classified this indicator for monitoring purposes. SingTel Mobile and StarHub Mobile performed above that benchmark in the recent months. M1's network availability remained above 99.9%, except in January 2013 where its network outage caused its performance to dip by about 2%.
IDA is investigating the outage to M1's mobile telephone network pursuant to IDA's Code of Practice for Telecommunication Service Resiliency (Resiliency Code). A breach of the Resiliency Code carries a penalty of up to $1 million or 10% of Annual Gross Turnover (AGTO), whichever is higher. The maximum penalty is thus greater than the maximum penalty of $50,000 if IDA had made network availability a compliance indicator, and held the operator accountable for failing to meet the indicator. Singapore's penalties for disruptions are higher than those in other countries, such as Hong Kong, where penalties range from about S$32,000 to S$161,000, and in the UK where penalties are capped at about S$3.77 million.
IDA views M1's service disruption in January 2013 seriously. The disruption affected a wide range of consumers and businesses, and thus the perceived value of the disrupted services also varies greatly. Hence, it is difficult to estimate the impacted costs to users.
IDA is studying the learning points from this incident, with a focus on preventive measures that can help ensure such disruptions do not recur in the future. IDA will share these learning points with the three operators.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adoption of International Telecommunication Union's Framework and Methodology for Telecommunication Services","subTitle":null,"sectionType":"WA","content":"8 Ms Lee Li Lian asked the Minister for Communications and Information (a) what are the reasons that IDA's QoS Standards for 2G and 3G Public Cellular Mobile Telephone Service (PCMTS) include requirements for signal strength but not signal quality; and (b) whether IDA will consider adopting the International Telecommunication Union's framework and methodology for quality telecommunication services into the QoS Standards.
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Assoc Prof Dr Yaacob Ibrahim: It is not correct to say that IDA's QoS framework for 3G mobile telephone services does not include requirements for signal quality. Mobile operators are required to comply with a variety of indicators, including outdoor coverage nation-wide, within buildings, roads and MRT tunnels, as well as call success rates, dropped call rates and signal strength. These indicators, taken together, provide an indication of signal quality.
The framework already incorporates recommendations from the International Telecommunication Union (ITU), such as coverage, dropped call and call success rates.
IDA has correctly not included technical specifications in the ITU's recommendations that have no relevance to consumers. For example, the facilitation of global interconnection and interoperability, or efficiency improvement of international telecommunication services.
In setting the QoS framework, IDA ensures that the parameters and standards set are meaningful and reflective of the regulatory and policy objectives of the telecommunication regulator. Singapore is also one of the few countries known to have imposed QoS standards on telecommunication services for compliance purposes. The ITU itself does not recommend nor require members to create QoS frameworks to protect consumer interest.
IDA will regularly review the QoS frameworks. In fact, it has further enhanced the standard from 1 April 2013, where mobile operators are required to provide at least 85% of coverage within buildings for each building in Singapore.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Plans for Development of Land Next to Blocks 155 & 156, Rivervale Crescent","subTitle":null,"sectionType":"WA","content":"9 Ms Lee Li Lian asked the Minister for National Development whether there are plans for the development of the plot of land next to Blocks 155 and 156 of Rivervale Crescent.
Mr Khaw Boon Wan: The plot of land has been safeguarded for the development of the Rivervale Delta HDB estate. HDB launched the sale of the
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flats last November. We expect to complete the construction of the flats by 2016.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Breakdown of Newly-Installed Lifts under HDB's Lift Upgrading Programme (LUP)","subTitle":null,"sectionType":"WA","content":"10 Ms Sylvia Lim asked the Minister for National Development regarding new lifts installed under HDB's Lift Upgrading Programme (a) what is the rate of breakdown of these lifts within the defects-liability period; (b) whether certain models of lifts have higher breakdown rates; and (c) whether the Ministry finds the rates of breakdown acceptable.
Mr Khaw Boon Wan: The rate of breakdown is below one per month for every 10 lifts installed under HDB's Lift Upgrading Programme during the defects liability period. There is no significant difference in breakdown rates across the various models of lifts. The current breakdown rates are within the performance standards, as specified in the tenders.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Complaints of Real Estate Agents' Involvement in Illegal Sub-Letting of HDB Rental Flats","subTitle":null,"sectionType":"WA","content":"11 Ms Sylvia Lim asked the Minister for National Development whether the Government has in the last 24 months received complaints, through the Council for Estate Agencies or other channels, of real estate agents being party to brokering illegal sub-letting of HDB rental flats and, if so, what is the number of such complaints and the outcome of investigations, including the actions taken.
Mr Khaw Boon Wan: In the last 24 months, CEA has investigated three complaints alleging illegal subletting of HDB rental flats. One involved a salesperson who had facilitated the rental transaction of an HDB rental flat and had collected rental deposits and commissions from the tenants. The individual has been prosecuted in Court on 28 March 2013 by CEA for eight charges relating to offences under the Estate Agents Act and Regulations for dual representation, handling transaction monies and failure to attend an interview at CEA. In addition, the individual has been charged by the Police for cheating
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offences. The CEA investigations are still ongoing for the other two cases.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Complaints of Real Estate Agents' Involvement in Sale of HDB Flats with Illegal Moneylenders","subTitle":null,"sectionType":"WA","content":"12 Ms Sylvia Lim asked the Minister for National Development since the formation of the Council for Estate Agencies, how many cases have been lodged with the Council on real estate agents instigating or facilitating arrangements for the sale of HDB flats to repay illegal moneylenders and what is the outcome of investigations and the actions taken.
Mr Khaw Boon Wan: CEA has investigated a case where a salesperson, who is also the Key Executive Officer of an estate agent, was involved in unlicensed moneylending activities. The Police has charged the salesperson in Court in November 2012 for unlicensed moneylending. The case is pending Court hearings.
CEA has also investigated five salespersons who were engaged in conduct related to activities of licensed moneylenders. CEA has charged one of the salespersons in Court in December 2012 for six charges relating to referral of clients to licensed moneylenders, which is an offence under the Estate Agents Regulations. The case is pending Court hearings. The CEA investigations are still ongoing for the remaining four cases.
CEA works closely with agencies, such as the Police, HDB and the Registry of Moneylenders, as well as the public, to investigate cases of salespersons involved in moneylending activities. CEA takes a very stern view of any estate agents or salespersons who work in collusion with moneylenders, and will not hesitate to prosecute any estate agent or salesperson involved in Court. The estate agent or salesperson may face debarment by CEA if convicted.
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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":"AVA's Plan to Tackle Mynah Nuisance","subTitle":null,"sectionType":"WA","content":"13 Mr Png Eng Huat asked the Minister for National Development (a) if he can provide an update on the study by AVA to determine the population of mynahs and the distribution of their roosts; and (b) what is AVA's comprehensive plan to tackle the mynah nuisance.
Mr Khaw Boon Wan: In June 2012, AVA appointed the Raffles Museum of Biodiversity at the National University of Singapore to study the ecology and population management of mynahs. The study will determine the current population size of mynahs, their roost preferences and roost site behaviour, and the distribution of their roosts.
The study is expected to be completed by May 2013. With the study findings, AVA will work out the plan to manage the mynah population in Singapore, with the help of other agencies, such as the National Environment Agency, National Parks Board and Town Councils. An effective mitigation strategy is likely to require the full cooperation of many stakeholders, including members of the public.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"\"Home Lifts\" for Low-Rise HDB Flats","subTitle":null,"sectionType":"WA","content":"14 Mr Png Eng Huat asked the Minister for National Development (a) what is the cost of implementing \"home lifts\" for low-rise HDB flats with few benefiting units; and (b) what is the height restriction for such lifts.
Mr Khaw Boon Wan: The cost will depend on the local site conditions. Such \"home lifts\" can serve blocks of up to five storeys. For such lifts to be used in the Lift Upgrading Programme, the cost must be within the cap of $30,000 per benefiting unit.
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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":"Waste Disposal Guidelines for Public Waste Collectors (PWCs)","subTitle":null,"sectionType":"WA","content":"15 Mr Zainal Sapari asked the Minister for the Environment and Water Resources (a) whether NEA can allow the public waste collectors (PWCs) to dispose more waste tonnes at the Senoko and Tuas incineration plants; and (b) whether the current operating time for waste disposal can be extended to allow the PWCs to have better operational efficiency and productivity.
Dr Vivian Balakrishnan: There are four Waste-to-Energy (WTE) Plants in Singapore, namely, Senoko, Tuas, Tuas South and Keppel Seghers Tuas WTE Plants. Today, the operating hours of these plants have already been extended as much as possible to optimise the operational efficiency for the waste collectors. Tuas South and Keppel Seghers Tuas WTE Plants operate round the clock. Senoko WTE Plant is open to receive waste from 8 am to 12 pm and Tuas WTE Plant from 6 am to 12.30 pm. The PWCs, however, are allowed extended hours up to 6 pm to dispose of their waste at Senoko WTE, subject to a daily tonnage cap. Given their locations, the latter two plants will usually reach their full capacity fairly quickly and, hence, their opening hours cannot be further extended. The two plants are already working round the clock to incinerate the waste received during their opening hours. Nevertheless, NEA will continue to monitor the situation and make changes where necessary.
We are in the process of developing the next WTE plant to replace Tuas WTE Plant as well as to cater for growth. When it is ready, we will review the operating hours for all our plants.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Requirement for Pre-abortion Counselling","subTitle":null,"sectionType":"WA","content":"16 Mr Gerald Giam Yean Song asked the Minister for Health why women who have not passed the PSLE, have no secondary education, have three or more children, or are foreigners, are not required to undergo pre-abortion counselling by a trained abortion counsellor before undergoing an abortion.
Mr Gan Kim Yong: Mandatory pre-abortion and post-abortion counselling was introduced in 1987 to provide information and support to women intending
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to undergo abortion. The criteria reflected the main concern then.
Some of the criteria are no longer relevant and should be reviewed. The Ministry had commenced a review of this in early March this year and will consult the public in due course.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Abortions Carried out in Singapore from 2002 to 2012","subTitle":null,"sectionType":"WA","content":"17 Mr Gerald Giam Yean Song asked the Minister for Health in each year from 2002 to 2012, how many abortions were carried out (i) on or before the 12th week of pregnancy; (ii) from the 12th to the 20th week of pregnancy; (iii) from the 21st to the 24th week of pregnancy; (iv) after the 24th week of pregnancy; and (v) on Singaporeans, PRs and foreigners.
Mr Gan Kim Yong: The statistics of abortions carried out in the first trimester (up to 12 weeks), second trimester (>12-24 weeks) and after 24 weeks of pregnancy are provided in Table 1. Table 2 provides the breakdown of abortions by Singapore Citizens, Permanent Residents and foreigners.
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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":"Foreign Nurses in Acute Care Public Hospitals","subTitle":null,"sectionType":"WA","content":"18 Ms Sylvia Lim asked the Minister for Health (a) what are the current proportion and number of nurses in each of the acute care public hospitals who are of non-Singaporean nationality (other than Malaysians); (b) whether such foreign nurses are trained to have some proficiency in either Chinese dialects, Malay or Tamil prior to deployment; and (c) what is the attrition rate of Singaporean nurses from these public hospitals in the last 10 years.
Mr Gan Kim Yong: As at 31 December 2012, foreign nurses, excluding Malaysians, made up 26% (or around 4,950) of our public healthcare clusters' nursing workforce. While we have expanded local nursing intakes over time, we will continue to need foreign nurses to supplement the local workforce to meet the healthcare needs of Singaporeans.
In addition to meeting registration requirements set by the Singapore Nursing Board, foreign nurses have to meet minimum standards in English proficiency before they are allowed to practise locally. Local assimilation programmes, which include basic conversational language courses, for example, Mandarin, Chinese dialects and Malay, are conducted to familiarise foreign staff with our local clinical practice, language and cultural context, to help them adapt more quickly to the local working environment and enable better patient-staff communication. Their language and communication skills are monitored closely during their induction period in our local system. Mentorship and supervision are also provided. In instances where the patient and the nurse do not speak the same language, other staff are called upon to help interpret. It is through such training, supervision and teamwork that our public healthcare workforce work together, regardless of nationality, to give our patients a good quality of care.
The attrition rate of local nurses in our public healthcare clusters fell from about 13% in 2003 to about 8% in 2012. MOH will continue working with our public healthcare clusters to strengthen the retention of nurses.
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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":"Railway Noise Survey and Installation of Noise Barriers","subTitle":null,"sectionType":"WA","content":"19 Mr Alex Yam asked the Minister for Transport (a) what are the main findings of the railway noise survey that began in September 2011; (b) what are the sites slated for installation of noise barriers; and (c) whether areas like Yew Tee and Keat Hong, where tracks still suffer from loud track noise due to the noise tunnel effect, will be considered for installation of noise barriers.
Mr Lui Tuck Yew: The island-wide railway noise measurement study found stretches of MRT tracks close to residential areas where noise levels exceed NEA's guidelines of 67 decibels (dBA) averaged over an hour (Leq 1-hour). Noise levels near turnout sections of rail viaducts tend to be higher.
LTA will progressively install noise barriers at these hotspots. Due to the physical constraints in carrying out the works, the programme will be closely co-ordinated with other ongoing MRT renewal works, such as sleeper replacement.
The first phase comprising 16 stretches of plain line track along the eastern and western sections of the East-West Line, and the Woodlands section of the North-South Line will be implemented between 2014 and 2016. This includes the stretch along Choa Chu Kang Street 62 to Pang Sua Park Connector, which will benefit residents staying near Yew Tee MRT station.
The second phase, which will include the Keat Hong area, is expected to be completed by 2020. Details are still being worked out.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adjustment of Road Height Difference between Northbound and Southbound Lanes of Woodlands Road between KJE and Mandai Road","subTitle":null,"sectionType":"WA","content":"20 Mr Alex Yam asked the Minister for Transport (a) whether there are plans to readjust the road height difference between the northbound and southbound lanes of Woodlands Road between the KJE and Mandai Road; and (b) whether a controlled right turn will be considered so that a trunk service may
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be introduced for residents of Yew Tee and Limbang towns.
Mr Lui Tuck Yew: The road level difference between the northbound and southbound lanes of Woodlands Road between Mandai Road and KJE will be adjusted after the construction of Downtown Line 2 is completed, and LTA will consider a controlled right turn from Stagmont Ring Road to Woodlands Road.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Peak Period Reversible Traffic Lanes","subTitle":null,"sectionType":"WA","content":"21 Mr Alex Yam asked the Minister for Transport with the announcement of reversible traffic lanes for peak periods on the KJE, which stretches will be considered for the scheme.
Mr Lui Tuck Yew: LTA has engaged a consultant to study stretches of the KJE and PIE (near Jurong) that are suitable for reversible flow lanes. The study is still ongoing.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Repainting of Bridge Connecting St Andrew's Village to Flats in Potong Pasir","subTitle":null,"sectionType":"WA","content":"22 Mr Sitoh Yih Pin asked the Minister for Transport when the bridge that connects St Andrew's Village to flats in Potong Pasir can be repainted.
Mr Lui Tuck Yew: LTA has awarded a contract to repaint the existing footbridge near St Andrew's Village. The repainting of the footbridge commenced on 22 March 2013 and is expected to be completed by end April 2013.
\tPage: 156
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Installation of Surveillance Cameras to Deter Illegal Parking in Sennett Estate","subTitle":null,"sectionType":"WA","content":"23 Mr Sitoh Yih Pin asked the Minister for Transport whether surveillance cameras can be installed at frequently used roads and road junctions in Sennett estate to deter illegal parking.
Mr Lui Tuck Yew: The installation of CCTVs to deter illegal parking is currently prioritised for locations along public roads. LTA will work with the community and other relevant agencies on other solutions for the localised parking problems at Sennett Estate.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Staffing Arrangements for Proposed Social Service Offices","subTitle":null,"sectionType":"WA","content":"24 Mr Muhamad Faisal Bin Abdul Manap asked the Acting Minister for Social and Family Development (a) what are the manpower arrangements for the proposed Social Service Offices; and (b) whether these Offices will be staffed by social-work trained officers and, if so, what is the proposed number.
Mr Chan Chun Sing: The Social Service Offices will deliver ComCare assistance, undertake local social service planning, and provide coordinated assistance to help Singaporeans with multiple needs, together with partner agencies on the ground. The staff will comprise mainly staff employed by MSF. Some of them may have social work training. The Ministry will provide the requisite training to enable all staff to perform their roles. The number of officers will vary across each location depending on the level of needs in the area.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Computation of Increment for Public Assistance (PA)","subTitle":null,"sectionType":"WA","content":"25 Mr Muhamad Faisal Bin Abdul Manap asked the Acting Minister for Social and Family Development how is the scale of the increment for Public Assistance (PA), ranging from $50 per month for a one-person household to
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$130 per month for a four-person household, considered, tabulated and arrived at.
Mr Chan Chun Sing: The assistance provided to beneficiaries on the Public Assistance (PA) scheme is reviewed regularly to keep pace with their specific needs and cost of living. PA households with school-going children receive additional cash assistance per child. Those with healthcare needs would receive additional assistance for medical consumables and dietary supplements. Other forms of assistance include free medical treatment in polyclinics and restructured hospitals, free or highly subsidised social services, and supplementary assistance in cash or kind.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Withdrawal of CPF Funds upon Reaching 55 Years of Age","subTitle":null,"sectionType":"WA","content":"26 Mr Gan Thiam Poh asked the Acting Minister for Manpower how many Singaporeans have opted not to withdraw their CPF funds upon reaching 55 years of age and what is the percentage out of the total number of CPF members.
Mr Tan Chuan-Jin: When a member turns age 55, his savings in the CPF Ordinary Account (OA) and Special Account (SA) will be used to set aside the Minimum Sum (MS) in his Retirement Account. Members are free to withdraw amounts in excess of the MS. As at December 2012, about 18% of the cohort who turned age 55 in 2012 had balances above the MS that were not withdrawn.
We have observed that members with balances above the MS generally keep these monies in the CPF for the longer term. These monies could have been retained in the CPF by members who find CPF interest rates attractive.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Effective Retirement Age in Singapore","subTitle":null,"sectionType":"WA","content":"27 Mr Yeo Guat Kwang asked the Acting Minister for Manpower whether the Ministry monitors the effective retirement age in Singapore and, if so, what has been the trend over the past five years.
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Mr Tan Chuan-Jin: My Ministry monitors the labour force participation rate (LFPR), which is defined as the proportion of the working-age population who are economically active. Over the past five years, LFPR of residents aged 55 to 64 increased from 58.6% in 2007 to a new high of 66% in 2012. The pattern was similar for both males and females. They increased from 77.4% to 82.3%; and 39.9% to 49.7% over the period respectively. The vast majority of our economically-active residents aged 55 to 64 were employed, as the unemployment rate for residents in this age group was only 2.4%, compared with the overall rate of 2.8% in 2012.
In fact, Singapore has one of the highest LFPR for older males, ahead of Hong Kong, Taiwan and many OECD countries. But we are behind Japan and Sweden. Our LFPR among older females still lags behind many developed countries, such as the United States, the United Kingdom, Norway, Sweden, Japan and South Korea, though we compared favourably with Hong Kong and Taiwan.
\tPage: 159
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