Hansard, 2003-10-16

Under the provision of clause 2(d) of Article 46 of the Constitution of the Republic of Singapore, the following Members have been granted permission to be or to remain absent from sittings of Parliament (or any Committee of Parliament to which they have been appointed) for the periods stated: Name From (2003) To (2003) Mr Raymond Lim Siang Keat 03 Sep 15 Sep 11 Oct 14 Oct Mr Ahmad Khalis Bin Abdul Ghani 07 Sep 10 Sep Mr Arthur Fong 07 Sep 12 Sep 23 Sep 27 Sep 01 Oct 03 Oct 10 Oct 12 Oct Mr Hawazi Daipi 07 Sep 08 Sep 11 Sep 12 Sep Mr Inderjit Singh 07 Sep 12 Sep 22 Oct 23 Oct Dr Lily Neo 07 Sep 12 Sep Dr Amy Khor Lean Suan 08 Sep 12 Sep 10 Oct 11 Oct Mr Chiam See Tong 08 Sep 15 Sep Assoc. Prof. Yaacob Ibrahim 09 Sep 10 Sep 30 Sep 09 Oct Mr Wee Siew Kim 11 Sep 19 Sep 06 Oct 14 Oct 11 Dec 24 Dec Prof. S Jayakumar 12 Sep 15 Sep 23 Sep 08 Oct 16 Oct 21 Oct Dr Vivian Balakrishnan 12 Sep 15 Sep Encik Yatiman Yusof 12 Sep 15 Sep 13 Oct 15 Oct 21 Oct 24 Oct Ms Irene Ng Phek Hoong 13 Sep 14 Sep 26 Sep 28 Sep Mr Sin Boon Ann 14 Sep 16 Sep 29 Sep 05 Oct Mr Leong Horn Kee 15 Sep 24 Sep Mr Davinder Singh 17 Sep 22 Sep 16 Oct 16 Oct Mr Gan Kim Yong 17 Sep 19 Sep Dr Wang Kai Yuen 21 Sep 28 Sep Dr Balaji Sadasivan 22 Sep 27 Sep Mr Goh Chok Tong 22 Sep 04 Oct 06 Oct 08 Oct 19 Oct 21 Oct Mrs Lim Hwee Hua 22 Sep 25 Sep Dr Ong Chit Chung 22 Sep 25 Sep 03 Nov 07 Nov Dr Tony Tan Keng Yam 22 Sep 05 Oct 22 Oct 25 Oct Mr Chan Soo Sen 23 Sep 28 Sep Mr David T E Lim 23 Sep 25 Sep 28 Sep 05 Oct 09 Oct 11 Oct 28 Oct 03 Nov Mr Wong Kan Seng 23 Sep 08 Oct 23 Oct 27 Oct Mr Chew Heng Ching 25 Sep 28 Sep 30 Sep 07 Oct 14 Oct 17 Oct Mr Loh Meng See 25 Sep 30 Sep Dr Michael Lim Chun Leng 25 Sep 27 Sep 16 Oct 18 Oct Dr Tan Cheng Bock 25 Sep 05 Oct 12 Oct 19 Oct Mrs Yu-Foo Yee Shoon 26 Sep 02 Oct 04 Oct 20 Oct Dr Lee Boon Yang 27 Sep 30 Sep 01 Oct 06 Oct 10 Oct 25 Oct Mdm Cynthia Phua 29 Sep 02 Oct 05 Oct 10 Oct Mr Abdullah Tarmugi 30 Sep 01 Oct 05 Oct 10 Oct 20 Oct 23 Oct Mr Cedric Foo Chee Keng 30 Sep 30 Sep Mr Charles Chong 01 Oct 05 Oct 12 Oct 17 Oct Mr Lim Boon Heng 01 Oct 04 Oct 10 Oct 12 Oct Mr Lim Swee Say 03 Oct 05 Oct 12 Oct 15 Oct Encik Mohamad Maidin B P M 03 Oct 05 Oct 06 Oct 20 Nov BG George Yong-Boon Yeo 05 Oct 08 Oct 16 Oct 21 Oct Ms Indranee Rajah 05 Oct 17 Oct Dr Mohamad Maliki Bin Osman 05 Oct 10 Oct Miss Penny Low 05 Oct 18 Oct Assoc. Prof. Low Seow Chay 06 Oct 13 Oct 16 Oct 16 Oct Mr S Iswaran 06 Oct 10 Oct 12 Oct 15 Oct Dr Ahmad Mohd Magad 08 Oct 10 Oct 17 Oct 28 Oct Mr Khaw Boon Wan 10 Oct 12 Oct Mr Andy Gan Lai Chiang 11 Oct 25 Oct Mr Heng Chee How 11 Oct 13 Oct RAdm Teo Chee Hean 12 Oct 15 Oct Assoc. Prof. Koo Tsai Kee 13 Oct 15 Oct Mr Lee Kuan Yew 13 Oct 30 Oct Mr R Ravindran 15 Oct 19 Oct Mr K Shanmugam 16 Oct 16 Oct Mr Mah Bow Tan 17 Oct 21 Oct 26 Oct 02 Nov Mr Zainudin Nordin 27 Oct 28 Oct

ABDULLAH TARMUGI Speaker Parliament of Singapore

The following Bills were assented to by the President of the Republic of Singapore on the date stated:

15th September,2003 (1) The Evidence (Amendment) Bill (2) The Building Control (Amendment) Bill (3) The Financial Advisers (Amendment) Bill (4) The Securities and Futures (Amendment) Bill ABDULLAH TARMUGI Speaker Parliament of Singapore

[Mr Speaker in the Chair]

1. Mr Arthur Fong asked the Minister for Law if he will inform the House of the latest developments concerning the legal challenge brought by Malaysia in relation to Singapore's reclamation works at Tuas and Pulau Tekong.

Mr Speaker, Sir, Mr Arthur Fong asked about the latest developments. The latest development, of course, is the Order of the International Tribunal for the Law of the Sea (ITLOS) on Malaysia's request for provisional measures against Singapore.

Let me just highlight the following points. The main request by Malaysia was to get ITLOS to compel Singapore to suspend its reclamation works. This was not granted. We can continue with our reclamation works. ITLOS also found no basis whatsoever for Malaysia's request for provisional measures on their territorial claim to "Point 20" in Tuas.

What ITLOS prescribed was for both parties to cooperate and consult on various measures. These include establishing a group of independent experts to conduct a study to determine the effects of Singapore's land reclamation and to propose measures to deal with adverse effects, if any. Both sides are also to exchange information, consult with each other and implement the various commitments given.

Sir, we have welcomed ITLOS' decision. Indeed, this has been the very approach which Singapore had stressed and which we had taken in our negotiations with Malaysia. The orders given by ITLOS to consult, exchange information and to do a joint study are all assurances that Singapore had freely given to Malaysia. These assurances were given well before the case went to ITLOS.

After the talks we had with Malaysia in August 2003, Singapore had conveyed its agreement for the joint study. Before that, we had also informed Malaysia that we were prepared to consult, exchange information and give Malaysia a full opportunity to comment on our reclamation works. We gave these assurances and commitments, despite Malaysia's ultimatum of 4th July 2003. We had wanted to resolve this issue through negotiations. But Malaysia rejected these offers and decided to take us to ITLOS.

Sir, the Tribunal also dealt with developments in Area D, ie, Pulau Tekong. The Tribunal has asked both countries to consult with a view to reaching agreement on temporary measures, if any, to ensure that the infilling operations do not prejudice the commitment made by Singapore pending the completion of the joint study. This commitment is that "no irreversible action would be taken by Singapore to construct the stone revetment around Area D pending the completion of the joint study, which should be completed within a year".

When the Minister for National Development and I met the media on 9th October 2003, Minister Mah Bow Tan had given a detailed account of the significance of Area D, which was fully reported in the media. To summarise, it is the area south of Pulau Tekong that is currently used as an "Offshore Containment Site". It is used for the deposit of soft soil and marine clay that is dug up during the course of our reclamation works, as well as from other construction activities on the Singapore mainland. To keep the deposited materials within the site, Area D is presently enclosed within a barrier of metal sheet piles. Eventually, a stone revetment wall will replace the sheet piles. The stone revetment wall is scheduled for completion around 2008.

As Minister for National Development has told the media, ITLOS has allowed Singapore to continue with its reclamation works. We intend to do so with care and due diligence, in accordance with our assurances and commitments to ITLOS.

Singapore will abide by ITLOS' decision. We welcome the statements by Malaysia's leaders that Malaysia would also abide by the Tribunal's decision. We look forward to working with Malaysia to implement ITLOS' decision and orders in good faith. Both sides must now work together to sort out the details and ensure that the group of independent experts is quickly appointed so that it can get down to its job of conducting the joint study.

Sir, in this regard, our agent for Singapore, Ambassador Tommy Koh, has written to the Agent of Malaysia, Tan Sri Ahmad Fuzi, on 13th October 2003 to set the process in motion. The Malaysians have replied agreeing to have this meeting in Kuala Lumpur, and both sides are now sorting out mutually convenient dates for this meeting to be held soon.

Before concluding, let me say that the provisional measures hearing at ITLOS is only the first phase in the arbitration process. The next phase will see the proceedings move to what is known as the Annex VII tribunal, which was constituted as of 9th October 2003. Our team which has ably looked after Singapore's interests is fully geared up for this phase.

Meanwhile, as I said, the two parties will consult on the next steps that need to be done with regard to moving this phase forward. And as I said, we expect this to be done soon.

Mr Speaker, Sir, almost all the mainstream media in Malaysia have led the coverage by claiming that Malaysia had won in its application for provisional measures to ITLOS pending arbitration. But the Minister has told us that, in fact, all these assurances were made even before ITLOS. Can the Minister help us to square this differing interpretation?

Sir, I think everybody knows what ITLOS decided, and if there is any doubt, one should read the judgment. And as we have stated clearly, the judgment or the order makes several prescriptions. But the most important thing to remember is that the thrust of Malaysia's action was to obtain an order to stop reclamation works by Singapore, and ITLOS did not agree to this. Instead, the order boils down to prescription of measures which I would describe as cooperation and consultation. In short, ITLOS had asked both sides to return to the negotiating table. That is how I would describe it.

If I may say, I think we should now get away from this "I won, you lost" or "You lost, I won" game. The fact is that ITLOS has given an order. Its terms are clear. Each side can give its interpretation but, at the end of the day, there are certain things to be done. What is important now is for both sides to move on. By moving on, I mean get down to the business of sitting down and discussing the implementation of ITLOS' orders and the requirements for consultations and discussions.

The next phase really has two parts. One is the setting up of the group of independent experts for conducting the study. At the same time, the next phase also involves the work of the arbitral tribunal which has been constituted to hear the merits of the case. So there is much work to be done by both sides. And I believe and hope that both sides will sit down and get on with it in good faith.

2. Dr Ong Chit Chung asked the Minister for Foreign Affairs what is the status of the Points of Agreement (POA), which was concluded between the Governments of Singapore and Malaysia in 1990, now that the package negotiations have been discontinued by Malaysia.

Mr Speaker, Sir, Prime Minister Goh and myself have informed the House on 5th June 1997 as well as on several subsequent occasions on the full background and details concerning the Points of Agreement (POA) concluded between Malaysia and Singapore on 27th November 1990.

If I may recapitulate briefly, the POA is a government-to-government agreement between Malaysia and Singapore concerning railway lands in Singapore. It was signed on 27th November 1990 between then Prime Minister Lee Kuan Yew on behalf of Singapore and then Minister of Finance Tun Daim Zainuddin on behalf of Malaysia. Under the POA, the KTM railway station would be vacated and moved from Tanjong Pagar to Bukit Timah in the first instance. The land at Tanjong Pagar would be vested in a limited company for joint development (60% for Malaysia and 40% for Singapore). All railway lands south of Bukit Timah other than Tanjong Pagar would revert to Singapore. When the MRT station reached Woodlands New Town, which took place on 10th February 1996, KTM may, within five years, move its station from Bukit Timah to a site in Woodlands adjacent or close to the Woodlands MRT station. In that event, two additional pieces of land in Kranji and Woodlands would be vested in the limited company, also for joint development. All other railway lands south of Woodlands, other than the Tanjong Pagar, Woodlands and Kranji sites, would revert to Singapore. The POA was explicit that there will be no other compensation for Malaysian railway land outside of the three big pieces at Tanjong Pagar, Kranji and Woodlands.

As Members know, Malaysia has not implemented this relocation of the railway station from Tanjong Pagar as stipulated under the POA. We have tried to work with Malaysia to implement the POA. However, after signing this government-to-government Agreement, the Malaysians wanted variations of the POA to include additional parcels of land. We were prepared to consider their proposals as part of the package of issues.

However, now that Malaysia has discontinued the package approach, the basis to consider Malaysia's request for variations of the terms of the POA no longer exists.

Sir, Malaysia also took the position that the POA becomes operative only when Malaysia decides to move its station from Tanjong Pagar. In an exchange of letters in 1997 between myself and then Malaysian Foreign Minister Abdullah Badawi, Singapore clearly spelt out our position on the law, which was that the POA became operative on the day it was signed, ie, 27th November 1990. Moreover, we pointed out that Malaysia had in fact taken steps to implement the POA. However, Malaysia reiterated its stand and its interpretation that the POA would become operative only when Malaysia decided to move the KTM railway station from Tanjong Pagar.

Therefore, Sir, the dispute centres on the legal interpretation of when the POA becomes operative. The Singapore Government's position is that this issue can easily and amicably be resolved by international adjudication at the International Court of Justice (ICJ) or through international arbitration at the Permanent Court of Arbitration (PCA). We have sent a Third Person Note to Malaysia on 26th September 2003 proposing that we adopt this approach on the POA issue. We are awaiting Malaysia's reply.

Members are aware that several outstanding bilateral issues like Pedra Branca and reclamation have already been referred to the process of international arbitration or to the ICJ. On the water issue, Prime Minister Mahathir himself has publicly advocated the arbitration approach. In August 2002, Malaysia also took initial steps towards arbitration by serving formal notice to review the price of raw water. Singapore reserved our position on Malaysia's right to review. But we have stated that the dispute should be resolved through arbitration in accordance with the provisions in the Water Agreements.

Sir, our proposal for resolving this matter is also consistent with what Malaysia has stated publicly. The Prime Minister of Malaysia was reported in the New Straits Times on 8th September 2003 to have said:

"...if we can no longer negotiate, then we should have arbitration. That should be the way. If we want to settle the matter, then we need a third party."

He repeated this stance in his 2004 Budget Speech on 12th September 2003, and I quote:

"When two parties are unable to resolve a dispute through negotiations, then there is a need for a third party to arbitrate. We are willing to seek arbitration."

Sir, we share this view that where negotiations fail to resolve an outstanding issue, we should refer it to a third party adjudication or arbitration, especially where it turns on a legal issue.

Hence, our proposal that this approach be adopted for the POA issue as well. Rather than allow it to trouble the relationship, it would be in the interests of both Malaysia and Singapore to seek an amicable resolution of the issue through international arbitration or adjudication. It would also be consistent with our approach on certain other bilateral disputes. More importantly, it would allow both countries to move ahead in bilateral issues and focus on our many areas of mutual cooperation and interest.

3. Mr A Nithiah Nandan asked the Deputy Prime Minister and Minister for Finance whether he will consider granting Economic Restructuring Shares (ERS) to those who have reached 21 years old between 1st and 31st December 2002, as this group of Singaporeans has been excluded due to the cut-off date being set at 30th November 2002.

Mr Lee Hsien Loong): Mr Speaker, Sir, under the current rules, Singaporeans who are 21 years of age as at 1st December of the year before, and not 30th November, are eligible for the Economic Restructuring Shares (or ERS). The cut-off date was set at 1st December to tie in with the cut-off date for making the $50 CPF contribution in order to get the shares on 1st January.

I take note of Mr Nandan's concern that Singaporeans born between 1st and 31st December would be 21 years old when the shares are allotted. For the next tranche of ERS, I have therefore decided to extend the cut-off date to those who turn 21 by 31st December this year, but they must still make their $50 contribution by 30th November to get their shares on 1st January, or if they make their contribution by December, then they will get their shares on 1st February.

I would like to thank the Deputy Prime Minister for his kind gesture.

4. Mrs Lim Hwee Hua asked the Deputy Prime Minister and Minister for Finance, given the increasing concerns over financial agents acting on consumer's ignorance to market investment products and financial services, whether the Government has any plans to improve the financial literacy of Singaporeans and to educate them on how to better manage their financial resources, make sound investment choices and plan for their financial future.

Mr Speaker, Sir, over the past few years, we have been progressively liberalising the financial markets. This has led to greater innovation in the financial services industry, with institutions offering more complex and varied products. We have also moved away from a prescriptive approach to a disclosure-based regime. Amid these changes, we have experienced an economic downturn and have made changes to our Central Provident Fund.

In this new and changing environment, Singaporeans need to become more self-reliant in their financial affairs. They must acquire the knowledge and skills to manage their day-to-day finances, make prudent investments and plan for their long-term needs. They must also be equipped to exercise their rights as consumers, so that financial institutions will treat them fairly, or else lose customers. This makes it important to educate Singaporeans to be knowledgeable in financial affairs.

In February this year, MAS formed a public sector committee to recommend ways to increase the effectiveness of financial education in Singapore. Chaired by MAS, the committee comprises representatives from Ministry of Community Development and Sports (MCDS), Ministry of Education (MOE), Ministry of Manpower (MOM), Central Provident Fund Board (CPF Board) and People's Association (PA). The committee found that over the last few years, public sector agencies such as the CPF Board and MCDS, as well as industry players, had made a significant effort in financial education. They had produced educational guides and organised various investment seminars and workshops. However, while resources had been put into financial education initiatives, there had not been close enough coordination, resulting in some duplication and gaps in content and reach. The committee has therefore recommended a coordinated national financial education programme that brings together current industry and public sector initiatives. I will share some details of the programme today.

The programme is called "MoneySENSE". It aims to take a more structured and comprehensive approach to increase the level and effectiveness of existing financial education programmes, and to enhance the basic financial literacy of consumers. The MoneySENSE programme will cover three tiers of financial literacy:

Tier I - Basic Money Management - which covers basic money management skills such as budgeting and saving, and tips on the responsible use of credit;

Tier II - Financial Planning - to equip Singaporeans with the skills and knowledge to plan for their long-term financial needs; and

Tier III - Investment Know-How - which imparts knowledge about the different investment products and skills for investing.

Over the next few months, the Committee will work closely with industry groups such as the Association of Banks in Singapore (ABS), the Financial Planning Association of Singapore (FPAS), General Insurance Association of Singapore (GIA), Investment Management Association of Singapore (IMAS), the Life Insurance Association of Singapore (LIA), and Securities Investors Association of Singapore (SIAS) to develop activities to support the national financial education programme. The Committee will also work with consumer bodies such as the Consumers' Association of Singapore (CASE) and other community organisations to ensure that consumer issues are adequately addressed through financial education.

Public sector agencies such as MCDS, CPF Board and PA will help to organise regular workshops and seminars at CDCs and other neighbourhood venues. These will provide practical advice on how to manage money, evaluate financial products, and avoid financial scams. MoneySENSE programmes will also be delivered to working Singaporeans and young adults through MCDS' network of almost 800 Family Life Ambassadors and institutions of higher learning. MOE will look at ways to deliver financial literacy concepts through the economic literacy messages that are currently infused into the school curriculum.

MAS will be launching a new Consumer Portal on its website, which will serve as a central repository for all financial education materials, including activities and events that are organised under MoneySENSE. MAS will also be developing consumer guides to explain financial regulations or policies that impact the consumer. These include guides on what to look out for when seeking financial advice and how to seek redress in the event of a dispute with a financial institution.

To kickstart the MoneySENSE programme, the Financial Sector Development Fund will be setting aside S$1 million per year over the next three years to co-fund financial education initiatives. This will provide seed money to develop the MoneySENSE programmes, and ensure a steady stream of activities in the initial years.

Financial education will require a sustained effort by the public sector, the financial industry and consumers. The "MoneySENSE" programme will launch this effort. But its success depends ultimately on individual consumers realising that they lack financial knowledge and making the effort to seek advice and information. Consumers should be aware that they are responsible for their own financial decisions and that it is in their own interest to have a working understanding of financial matters. This is what self-reliance means.

I would like to know whether these initiatives will also be extended to the other languages other than English alone, for example, in Chinese, Malay and Tamil, and also how would the DPM guard against an expectation of Government protection by the public against individual bad investment decisions as opposed to a lack of experience.

Mr Speaker, Sir, yes, the programme will be in many languages. We are going to go down to the grassroots. So we will have to have materials in many languages too. The first requirement is to get people to have a basic literacy to understand money, how to save, how to put aside for the future, and how to budget. The next step beyond that is to have some knowledge of financial markets, some ideas of what are the risks and the possibilities, if you invest.

The whole idea of the programme is to get people to understand and therefore take responsibility for themselves. If we work on the basis that the Government will guard you, and if we allow you to invest, that means it is safe, I think we have a very serious problem of moral hazard, which means that there is no incentive for consumers to look out for themselves, and they will depend on the Government. If things go well, they congratulate themselves on their good fortune and high skills. If things go badly, well, the Government should have prevented them from being foolish. I think this is a very dangerous situation. One of the major objectives of this MoneySENSE programme is to get people to understand that they have to make their own decisions. It is their responsibility, it is their money, it is their savings and investments, and they decide what risk they can bear. And if they commit and it turns out well, good for them. If it does not turn out well, they knew what they were going into. That is what we have to aim for.

Sir, I would like to ask the Deputy Prime Minister, besides having the MAS portal to centralise the information and programmes available on financial education, if the Ministry would also consider other ways of dissemination of the availability of such programmes, for instance, even through Rediffusion, because of the segment of people who are less educated and they may not access the portal and so on.

Another question is this. Besides giving educational programmes, could the MAS, for instance, also give guidelines as to the comparison of different financial products, because the large variety of financial products may be very confusing and there may not be full disclosure of information to the potential investors?

Mr Speaker, Sir, we will use many avenues. We have roped in many agencies - PA, CPF Board, Ministry of Education. So we will try all avenues. The MAS website is only one of them. And we will try Rediffusion too, if I can persuade Mr Phua Chu Kang to lose some money and learn a lesson that would be helpful.

As for comparison of products, there are many, many products on the market. So I am not sure if you can find one comprehensive compendium or encyclopaedia where you have all of them put down with all of their characteristics and ups and downs. But we will make sure that each time somebody sells a product and markets a scheme and says, "This is marvellous! 10% over 15 years" or some number like that, there is full disclosure and, hence, there is a comprehensible disclosure, not just dozens of pages of small prints and legalese, but something in plain English which you read and you understand what it is.

We have gone for a disclosure-based regime. We have gone for caveat emptor, which means "buyer beware". I think there are all sorts of investment schemes, unit trusts and structured products on the market. I sometimes receive some of these blurbs too, and I look at them, and I need to read it three times to figure out what it is first; secondly, whether it makes sense - usually it does not - and thirdly, what to do with them next, which is either to send them to the staff to look at and ask what are all these about, or put them away and think about something else. But I think it is a learning process. If we clamp down and say, no, you cannot offer products like these, because I decide that individual savers or depositors should not have such products, I think we are doing the wrong thing. We have to take that responsibility.

Sir, since the Deputy Prime Minister has said that investors are basically on their own lookout for investment making decisions, is it possible for the Government to go beyond just informing investors on the types of products available by allowing them the opportunity to participate in Investment 101 type guidelines, where they can better understand basic strategies in making investment decisions and therefore make better informed choices as to what they are letting themselves into, what the trade-offs against returns are, and what kind of returns they are looking at? I think that would then give them a better approach towards making a decision rather than just telling them these types of investments that are available.

The idea of the MoneySENSE programme is to raise awareness as well as offer the programmes. But if you are talking about a nation-wide audience, a very wide range of people, the sort of education which you must provide will depend on each person's background, his ability to absorb and what his needs are. If he is investing $5,000, that is different. If he is investing $50,000, or he has half a million dollars because he is a professional who puts some nest-egg away, his needs will be different. But we will make the programmes available to them. And if we are talking about Investment 101, maybe that is a good alternative name for the MoneySENSE programme.

Sir, in view of the number of new IPOs coming in during this bull market, what is MAS' position with regard to ensuring that the aspiring companies waiting for listing are wholesome and economically viable, and that they are not some fly-by-night-time operations to milk the ignorant investors during a bull market?

Mr Speaker, Sir, the answer is we have to go on disclosure and listing standards where certain listing standards which SGX requires and which companies must comply with before they are allowed to list, either a track record, growth potential or a certain amount of shareholders' funds which are publicly known. So before they can be listed on the Stock Exchange, they have to comply with these.

Secondly, there has to be full disclosures or the risks, what are the business prospects, what sort of business you are in, what are the problems, what are the potential legal issues which may come up. All these have to be fully disclosed in a disclosure document in the prospectus before you can go for an IPO.

Thirdly, of course, there is a process for the IPO. The Stock Exchange has to agree, the IPO has to be posted publicly, MAS has to register it, and if all that passes, finally, the IPO can proceed. And you would have seen that there had been a couple of cases where this process had not gone through to completion, but somewhere along the way, some issues had popped up and the IPO had been withdrawn, or something else had to happen.

So these are precautions which we have in place to make sure that the Stock Exchange is a place to raise equity capital and not a casino. But the final safeguard, as I have said several times, is disclosure and consumer responsibility. In other words, before you invest in a stock, whether it is an IPO stock or any other stock listed on the Exchange, make sure you know what it is about, what is this company doing, what are the risks, can you or can you not accept the risks of putting your money there and maybe losing part of it or all of it. It is not an easy lesson to get through. But it is something that we have to get people to understand because an IPO is not a sure-win thing.

When you read the newspapers and each time the market is hot, IPO becomes exciting, and people say 200 times over-subscription was the last number they saw, something fabulous like that. They do not say that the denominator is very small, it is a few million dollars and everybody is putting in. It is a market which is excited without being knowledgeable, and that is worrying.

An IPO is not an opportunity for retail investors to get rich. It is an opportunity for companies to raise equity capital, to raise shareholders' funds, or to sell part of their holdings. And that is something which people have to learn.

Sir, it seems to me one good indication of how money-wise Singaporeans are is how they invest using their CPF money. Can I ask the Minister whether he can give us a sense, from studying how the returns have been from the investments made from CPF, whether Singaporeans are, by and large, prudent or in need of more hand-holding and whether we can use the data to target certain groups which might be more vulnerable, in terms of investing unwisely?

This is a question which should of course be addressed to my colleague, the Acting Minister, at the next parliamentary Question. But I should say that, by and large, most Singaporeans with CPF money have been quite conservative because they have just left their money in the CPF. They bought a house, they are living in it, and the rest they have just put in the CPF earning 2.5%, or 4% on a Special Account, and feeling quite happy that is rather a lot of interest in this current environment. Some people have taken the money out and invested mostly in stocks and shares, some unit trusts, some investment-linked insurance products. They have performed variously, not all have out-performed, leaving their money in the CPF. But we have felt that, as a matter of public policy, we should not lock up their money. But if they feel that they can do better, we should allow them avenues to do so, and this is what we have done.

We have adjusted the rules as we have gone along and cut back on the proportion which you can put in stocks and shares directly. So you cannot take your life savings and go and buy one company's stock. If you had bought Pan El, 15 years ago, you would be feeling very sad. And we would continue to adjust these rules. But I think, even with CPF, the general approach should be that the individual is responsible so long as he is investing the money and not spending it. We should give him latitude to do so with both the upside and the downside to be taken into account.

Sir, in view of the hot IPO market, does the MAS place restriction on the amount of shares given out for the public offer versus the private placement? As in most IPOs, the amounts are currently given out in a private placement. Would that effectively lead to another Mid-Continent's case where there is a cornering?

Mr Lee Hsien Loong: Mr Speaker, Sir, that is really a different subject, but just a very brief answer. No, we do not intend to have guidelines to have a certain proportion given out to a private placement. We do have guidelines to ensure that there is a reasonably wide distribution of shares and not all of it is given to a small number of purchasers. In Mid-Continent, there were lapses which, I think, have been identified and are being put right. The solution is to continue to watch vigilantly to see how the present rules work, rather than to go back to a formula where you require a certain amount of public placement, where you are just transferring the problem, because a public placement does not guarantee a good market. It just generates a different kind of excitement and more enthusiasm frenzy for the next round.

5. Dr Amy Khor Lean Suan asked the Acting Minister for Manpower in light of the recent Central Provident Fund (CPF) changes (a) what kind of information and through what medium the CPF Board will provide and use as a means of educating the public on the use of their CPF monies for housing purchases and other approved investments so that CPF members will make the most informed decision; and (b) if the CPF Board or financial institutions can be tasked or required by the Monetary Authority of Singapore to mandatorily advise Singaporeans who use CPF monies to finance their housing purchases as to the estimated time when they will exhaust their allowable CPF monies for mortgage repayments and thus will need to service their loans entirely with cash.

Mr Speaker, Sir, because Singaporeans will live longer, they need to consider carefully how they use their CPF monies which, in essence, is their personal retirement fund. This is implicit in Dr Amy Khor's question and I agree with her.

To help Singaporeans prepare adequately for retirement is a mandate for the CPF Board. And therefore, the CPF Board will enhance its public education programme to meet this objective. It will make available to members educational information modules structured to their life events, such as when they start work, get married, buy a house, and so on. And these modules will cover basic financial planning and investment. They will guide the member on what to consider when making a decision over the use of his CPF monies and how these decisions would affect his retirement savings. These modules will be ready by the first half of next year. They will be made available through the CPF website and at CPF Board offices, and supplemented by other mediums, such as newsletters, publications, seminars, print and broadcast media.

Second, the Board will provide more information on various features of investment products, I think a point brought up in the last parliamentary Question. For these investment products, information such as charges by different agent banks, the market value of investments held under the CPF investment schemes and, for each member, how the products they have bought have performed compared if they have left it in the CPF, will be given.

Third, the CPF Board already makes available to its members relevant tools, such as online calculators at its website to let members estimate how long their CPF savings can be used before reaching the housing withdrawal limit. Members can also use the CPF Savings Projector at the CPF Board's website to project their future CPF savings and estimate the monthly income they would receive from their Retirement Account.

The Monetary Authority of Singapore (MAS) does not regulate the provision of advice relating to mortgages, as these are not investment products. Members are encouraged to ask for more information from their lending institutions on the mortgage repayment schedules and clarify their monthly loan statements, if they feel that they require additional information on their mortgages to better plan for their finances. They can also use the various information services and tools provided by the CPF Board. We have, what we call, the online Housing Withdrawal Limit calculator. For members using their CPF monies to service their housing loans, the Board provides them a three-month advance notice before they reach their CPF withdrawal limit for housing. This will give members some time to make alternative financial arrangements to meet their mortgage payments. But of course we should not wait till then.

The CPF Board will work closely with the MAS and other Government agencies, as well as industry associations, to provide more consumer education on financial products and services under the MoneySENSE programme, as announced by DPM Lee earlier.

Sir, I would like to ask the Acting Minister that whilst mortgage is not under the purview of MAS, could the CPF Board work with the financial institutions with regard to asking them to advise, especially first-time home owners, on their mortgage sum because the understanding of how long before they exhaust their limit is very important, since it will impact on their housing affordability and the amount of loan that they should borrow from the bank. Because my understanding is that there is no standardised procedure now.

Dr Khor, please ask your question and no speeches.

Yes, we will do that. But structurally, we have restricted the amount that can be used for housing to reflect the appropriate proportion, in terms of what you conscribe to the OA Account and in terms of the withdrawal limits. And we will provide the information on our website, as suggested. I think some of these are already provided.

6. Mr Yeo Guat Kwang asked the Deputy Prime Minister and Minister for Finance whether the Government will (i) help policyholders affected by the recent critical year issue with insurance companies; (ii) prevent insurers from using the policyholders' fund to pay compensation in such cases; (iii) reconsider its decision to exclude financial services from the proposed Fair Trading Act; and (iv) facilitate class action suits, so that large groups of aggrieved consumers can band together to sue for their rights in the court.

Mr Speaker, Sir, since this Question was filed, there have been some significant developments on the critical year (CY) issue. At the request of the Consumers' Association of Singapore (CASE), AIA, the major insurer involved, has improved its support package and adjudication process for affected policyholders. Details of the revised package were released on Tuesday. The Monetary Authority of Singapore (MAS) welcomes this development.

As the regulator of the insurance industry, MAS takes the supervisory approach of full disclosure and consumer self-reliance. While MAS is not in a position to settle disputes between financial institutions and their customers, it will ensure that institutions disclose information promptly, accurately and adequately, and abide by high standards of professional and business conduct. MAS had earlier issued a Policyholders' Guide, to help consumers to understand better their policies, organise their documentation and be aware of the options available to them.

MAS has also encouraged companies that issued policies with a critical year feature to deal fairly with these complaints and has been monitoring steps taken by these companies to address the concerns of affected policyholders. At the same time, MAS is working with industry bodies to make available to consumers the information and channels for them to ascertain and enforce their legal rights, conveniently and affordably.

MAS is also strongly committed to ensuring that a robust dispute resolution mechanism is in place to provide an affordable and convenient alternative for consumers to seek redress. The insurance companies have entered into a voluntary arrangement, known as the Insurance Dispute Resolution Organisation (IDRO). MAS is hopeful that IDRO will minimise the need for more formal regulatory or statutory arrangements.

MAS will not allow insurance companies to use the participating policyholders' fund to compensate policyholders who have been mis-sold insurance products. This is against the principles of fairness and equity to participating policyholders. Participating policyholders' interests should not be adversely affected by financial losses caused by inadequacies in a company's own practices or internal controls, or mis-selling by its agents.

For greater clarity, MAS will be amending section 17(5) of the Insurance Act, to give the Authority the power to set rules on what constitute

receipts, income, expenses, and liabilities that are attributable to insurance funds, and the ways to derive each item. This would safeguard policyholders' interests from being compromised by unfair practices by insurers. An example of unfair treatment is to charge expenses and liabilities incurred as a result of mis-selling by an insurer or its intermediaries to insurance funds.

MAS had earlier decided not to include financial services in the proposed Consumer Protection (Fair Trading) Act (CPFTA). The Securities and Futures Act and the Financial Advisers Act have only recently been introduced, and financial institutions are still making the necessary adjustments. Also, industry mechanisms, such as the Consumer Mediation Unit and the Insurance Disputes Resolution Organisation, have only recently been launched. MAS therefore concluded that the industry should be given more time to develop and strengthen these and other initiatives to enhance business conduct standards so that they can be effective and credible.

In the light of the recent problems with the critical year issue, MAS has reviewed its position and confirmed that the reasons for excluding financial services from the proposed Act remain valid. However, MAS will continue to monitor the situation and will review the position in two years. An important consideration will be the effectiveness of industry initiatives to promote fair dealing with consumers.

For our disclosure-based regime and consumer self-reliance to work, there must not be an imbalance of power between the consumers and financial institutions. Consumers must be equipped with convenient and affordable means to enforce their legal rights and seek fair redress for their grievances. Introducing a class action regime in Singapore can be helpful, by making it easier or more affordable for large groups of aggrieved consumers to band together to seek redress in the courts. The Attorney-General's Chambers is currently studying the issue of representative and class actions in the context of the Singapore legal system as a whole.

7. Mdm Halimah Yacob asked the Minister for Defence (a) what is the cause of the recent deaths of three National Servicemen (NSmen), all within the period of one month; and (b) whether adequate measures have been taken to ensure the health and safety of our NSmen when they undergo training.

Sir, I will be making a Ministerial Statement later and request Mdm Halimah's forbearance till then.

Forbearance granted, Sir!

Your next question, Mdm Halimah.

Question No. 8, Sir.

8. Mdm Halimah Yacob asked the Acting Minister for Manpower what is his assessment of the job situation in the next six months as many Singaporeans are concerned with the prospect of a jobless recovery despite all the measures that have been taken recently to lower costs and to create a more competitive business environment.

Mr Speaker, Sir, the economic outlook for the next 12-18 months is brighter. MTI's preliminary estimate for Singapore's GDP growth in 2004 is 3-5%, and economic growth will eventually create more jobs and bring down unemployment. The advance GDP estimates for the third quarter show a positive 1.0% growth.

But employment growth is a lagging indicator, and typically lags behind GDP growth by around two quarters. Companies usually do not start hiring until they are more certain that the increased sales are sustainable. So I expect the unemployment rate to worsen this year before improving from the second half of 2004. The unemployment rate was 4.5% in June this year, and my Ministry's earlier forecast, that unemployment could move to 5.5% or higher by end of this year, is still valid and likely.

Why will the unemployment rate get worse before improving? This is partly due to the labour force participation rate (LFPR). Earlier this year, we announced that, because of SARS and the weak economic conditions, about 26,000 jobs were lost in the second quarter of this year. This was the eighth consecutive quarterly decline in employment, and the worst contraction since the mid-80s recession. But, paradoxically, the unemployment rate for residents (seasonally adjusted) in June 2003 was actually lower at 4.9%, than the 5.2% in March 2003.

Why was this so? The reason is that a higher number of people withdrew from the workforce. The economically-inactive proportion of residents rose from 34% to 37% and, therefore, were not captured in the unemployment data. Because the job market was weak, some perhaps decided to defer their job search to take a break; others went for training or further studies.

As the economy and the job situation turn for the better, we will see a flip side of what I described happened in June this year. The preliminary data for July this year show gains of over 8,000 new jobs. This was a notable gain after three consecutive months of job losses, and was twice that compared to a year ago. But because more jobs are available, more will resume their job search after the poor economic situation caused by SARS. In other words, they are coming out of the economically inactive pool and will expand that pool. In addition, a new batch of graduates from university, polytechnic and ITE also join the workforce annually at this time, adding to the pool of job seekers. So, as a result, I expect the labour force participation rate to rise, as well as the unemployment rate initially.

As the economic situation improves, more new jobs will be created and employment and re-employment will increase, and unemployment will go down.

The following Question stood in the name of Mr Ahmad Mohd Magad -

9. To ask the Acting Minister for Manpower (a) whether the publicity on the cost of disengaged workers in Singapore is affecting the reputation of the nation's workers as being the most productive in the world; (b) what steps will be taken to reduce the cost posted by the disengaged workers to the nation's productivity; and (c) whether his Ministry plans to provide services to companies facing disenchanted and dissatisfied employees.

10. Dr Amy Khor Lean Suan asked the Acting Minister for Manpower with reference to the recent Gallup poll on the low percentage of Singaporean workers who are actively engaged compared to other countries surveyed and, by contrast, the relatively large proportion of workers who are actively disengaged or not engaged, (a) if the Ministry can comment on the findings and if it has or will conduct studies to understand the reasons and factors for such a state of affairs among our workers; and (b) if the Ministry is conducting or will consider funding programmes to help employers, especially those from the small and medium-sized enterprises, acquire skills and knowledge to motivate workers and improve their attitude towards work and hence productivity.

Question No. 9, Sir.

Mr Speaker, Sir, may I have your permission to answer Question Nos. 9 and 10 together?

Yes.

Our labour workforce remains highly regarded, as shown by many reputable international surveys. In April this year, the Business Environment Risk Intelligence (BERI) ranked Singapore's labour force first among 49 countries, and this was the 14th consecutive year that we achieved this ranking. Singapore's manufacturing productivity was ranked top, under the Relative Productivity Sub-index in the Labour Force Evaluation Measure.

Singapore's labour market was also ranked top in the World Competitiveness Yearbook 2003 among 29 economies with populations of less than 20 million. Specifically in the area of worker motivation, the Singapore workforce was ranked 6th, ahead of countries such as Hong Kong, Belgium and New Zealand.

Despite these positive assessments by external agencies, the Ministry of Manpower agrees with Members that employers and workers must continue to be engaged to develop a competitive workforce. The Ministry of Manpower is currently conducting a study on the attitudes and expectations of both employed workers and job seekers, and this will be completed by early next year. The findings will be useful in the design and implementation of strategies and programmes to strengthen the engagement of employers and workers.

One of Workforce Development Agency's (WDA) focus is, therefore, to promote and facilitate efforts by companies to strengthen their human resource systems. The WDA is working with companies in various sectors to adopt best HR practices to maximise the engagement and productivity of the workforce. It will assist companies which wish to strengthen their human resource management capabilities. Enhancing workforce competitiveness is not just about sending workers for training. It also involves assigning workers the opportunities to develop and deploy their skills.

WDA has conducted dialogue sessions with employers and HR professionals. It recognises that these members are often a key leverage point in building a great workplace that can engage and challenge workers to develop their potential and enhance their contributions to the company. Managers, however, also need to acquire the skills to do so. For instance, in the hospitality sector, WDA has worked with employers to develop training programmes to enhance the supervisory skills of line managers. Under the SME Upgrading for Performance Scheme (SUPER), enhanced funding for executive training will be provided for those medium-sized companies that have shown commitment to recruit and train local workers. Such executive training can contribute to the ability of companies to better manage, develop and engage their workers.

Sir, I would like to ask the Minister when was the programme for supervisory staff started and how well subscribed it is.

Sir, it was only recently launched, so it would be some time before I could give the hon. Member more information.

11. Mdm Halimah Yacob asked the Acting Minister for Manpower (a) whether any study has been done to determine how workers are coping with the rapid changes at the workplace and the increased workload, particularly the impact on their mental and physical health; (b) whether his Ministry will include stress management as one of the topics in the training programmes which it conducts for employers; and (c) what can be done to encourage employers to provide counselling services at the workplace as there are indications that the level of stress and anxiety among Singaporeans has increased due to concerns over their jobs and livelihood.

Sir, my Ministry's Occupational Health Department, in collaboration with experts in organisational behaviour, psychiatry and organisational psychology, is developing a tool to help assess and monitor the psychosocial health of our workforce. The tool measures job stresses and strains, including aspects of work-life balance, and is intended to provide the basis for intervention, management and monitoring of employees' psychosocial health. The study is part of the national effort under the Workplace Health Promotion Programme coordinated by the Health Ministry's Health Promotion Board, with support from MCDS, my Ministry and SPRING, as well as the tripartite social partners - unions and employers - to promote stress management at work.

Members may also wish to know that the newly-formed Workforce Development Agency (WDA) will be working closely with companies to promote best human resource (HR) and organisational development practices. Such practices could include the promotion of staff counselling to help ease unemployed Singaporeans into new jobs unfamiliar to them before; WDA is also engaging employers and trade unions to look into issues, such as mentorship programmes. All these promotional efforts would contribute towards helping employees to better cope with the rapid changes at the workplace.

Sir, when will the tool that was mentioned by the Parliamentary Secretary be ready? Secondly, what follow-up measures will be taken after the tool is in place and results are produced as to the mental state of our workers at work? Thirdly, has there been a survey done at all? I think that question has not been answered. Before we can even have a tool, we would probably want to know what is the current situation and assessment of the impact of work stresses, workload increase and so on. So, has there been a survey? If not, will one be done?

Sir, there had been no survey or specific studies to determine how workers are coping with the rapid changes at the workplace. However, earlier studies in the insurance and healthcare sectors indicate there are a variety of factors contributing to stress at the workplace, including problems of work-life balance. We know that there are so many factors contributing to stress - relationships, nature of work, new job, new responsibilities. The new tool that has been developed has been successfully tested in 20 companies involving 300 employees in the service and manufacturing sectors. Mdm Halimah wants to know whether a study will be conducted. We will have to take a look at the results of the testing of our tool, and we will look into that possibility.

12. Ms Irene Ng Phek Hoong asked the Minister for Transport, in view of the rising number of cyclists involved in traffic accidents and of Singaporeans taking up cycling, will his Ministry study how developed countries such as Holland and Germany have brought down bicycle accidents drastically by integrating cycle paths into the traffic system in a coordinated network for both leisure cyclists and commuters.

Mr Speaker, Sir, in land scarce Singapore, our limited road space should be used for the efficient movement of people and goods. Because of this, we have only set aside dedicated road space for bus lanes and, that too, only for certain hours of the day and at certain locations. Bus lanes are justified because buses carry many more people than other vehicles. It would not be cost-effective nor physically feasible, in view of our limited land, to set aside dedicated road space for other vehicles, including bicycles.

Although we do not have the luxury of providing dedicated bicycle paths, as in Holland and Germany, we continue to study others' experiences and explore measures that help to enhance the safety of our road users, including cyclists. Members may wish to note that the number of injuries involving cyclists has remained stable in recent years. Nonetheless, both Traffic Police and LTA will continue to take measures to reduce such incidents. These include the use of traffic calming measures, such as speed humps, education of road users, and enforcement of traffic rules. Recently, a national road safety workshop was also conducted, with the participation of many concerned parties, to brainstorm new ideas that can further improve the safety of cyclists, amongst other vulnerable road users. These ideas include enhanced regulations on bicycles and cyclists, new traffic

rules and more public education. Public education is particularly important, as both cyclists and motorists play a crucial part in preventing road accidents. The ideas are being studied by the relevant authorities.

Sir, that Singapore is land scarce is a given. The question is: how do we help, in terms of physical infrastructure, roads and space, to reduce the number of cyclists dying on the roads? Just in the first half of this year, 11 cyclists died, compared to five in the same period last year. This is a high number that we should not tolerate. If it means building a few more lanes to schools or markets, why do we not invest in them?

Mr Speaker, Sir, in countries like Germany and Holland, they do build such special lanes. I have been to Germany and Holland. In Amsterdam, they have special bicycle lanes and cyclists rule the road. The sight of cyclists ruling the road and motorists being given a lower priority is most appealing. For one thing, it is environmentally-friendly. Cyclists only release carbon dioxide. There is no carbon monoxide, sulphur dioxide, nitrous oxide and particulate matter that combustion engines release. The puffing and wheezing of cyclists and the sound of swirling bicycle wheels is less jarring on the ears than the raw motorcycles and motorcars.

Cycling is also a good form of exercise. By cycling to work, you accomplish two goals at the same time. You can get your exercise and get to work at the same time. But the reality is, in Singapore, land is scarce. Less than 1% of Singaporeans use the bicycle for regular travel. Our land is limited. If we designate special bicycle lanes for the less than 1% of travellers for the use of bicycles, it would be at the expense of either existing road lanes or pedestrian ways. If we convert one road lane in our roads for cyclists, it means that 99% of Singaporeans who use buses, cars or motorcycles may be tied up in a gridlock of traffic jams. If we convert pedestrian ways to cycle lanes, then our pedestrians would have nowhere to walk and would be in danger of being knocked down by bicycles.

Even if we have special bicycle lanes, how many Singaporeans will cycle to work or the market? Our weather is different from the temperate climate which is present in Germany and Holland. Cycle for five minutes in the hot and humid afternoon and you will be soaked in sweat. If you do not shower at your destination, you will smell of stale sweat for the rest of the day. And, of course, ladies will have to redo their face because their make-up will come off. Sir, cycling is still for Germany and Holland, but for Singapore, it is not practical.

Sir, I feel that the Minister of State might have painted a too simplistic picture and also in giving a trade-off that we need not have to make, that is, a trade-off between cyclists ruling the road and not even having space for pedestrians to walk. I think we can meet the demands of the different groups without sacrificing the principle that we have to use our land wisely. I think the seriousness of the problem might not have sunk down to the Minister of State.

What is your question, Ms Ng?

I would invite the Minister of State to Tampines where we can see many housewives bringing their children to school on bicycles. I would ask the Minister of State to seriously consider doing a survey, going down to the ground, to schools, wet markets and MRT tracks, and see how commuters have been using the roads, and on how to make the roads safer for the cyclists who are trying to save money by not taking buses because transport costs are going up. So they are taking up cycling. There is also a bigger group of people who are keen to cycle.

I would urge the Minister of State to take this seriously and to please help the cyclists to negotiate on the road without risks to their lives.

Mr Speaker, Sir, we take the safety of cyclists seriously. Earlier this month, on 2nd and 3rd October, a major conference was held, ie, the Asian Development Bank's ASEAN Road Safety Programme. Experts and various stakeholders on road safety were at this meeting. A lot of brainstorming was done about ideas that can reduce the number of fatalities on the road. We are considering these ideas and the various authorities are looking at them.

Sir, I thought the earlier question asked by my colleague was: how does the Ministry intend to reduce the number of cycle deaths because, in the same comparable period, the number of fatalities has actually gone up? Can the Minister of State give an indication of the steps that the Ministry is contemplating in this regard?

Overall, the fatalities on our roads per capita are lower than most developed countries like the United States, and it has come down, as compared to about 10 years ago. Among the ideas that were generated were more stricter rules on cyclists and more education for cyclists and other road users.

Mr Speaker, Sir, would the Minister of State consider a trial bicycle lane in the MP's constituency to see how good is the demand for bicycle lanes? That may solve the problem.

If there is a Member of Parliament who requests for bicycle lanes in his constituency, we will study that.

Sir, the Minister of State has mentioned the number of fatalities, saying that it has not changed much. But I would ask the Minister to look at another figure, which I would think is more telling, and that is the number of cyclists involved in traffic accidents. From 1998, it was 266 but it rose to 363 last year. It is a drastic rise and whether one dies or not, it is a matter of luck. But the question is how to reduce the number of cyclists involved in accidents. We should be looking at the number of cyclists involved in traffic accidents.

I agree with the Member that cyclists are a risk group. Once upon a time, motorcyclists were a major risk group and the use of safety helmets has greatly reduced the number of deaths. We need to consider what else we can do to reduce the number of fatalities amongst cyclists.

I think we have "cycled" far enough. Your next question, Ms Irene Ng.

13. Ms Irene Ng Phek Hoong asked the Minister for Home Affairs, in view of the rising number of cyclists involved in traffic accidents and of Singaporeans taking up cycling, whether his Ministry will embark on an extensive traffic education programme for recreational and commuter cyclists to teach them street skills and traffic regulations.

14. Mr Ahmad Mohd Magad asked the Minister for Home Affairs whether measures are in place or being considered (i) to curb the recent increase in traffic accidents involving pedestrians and cyclists, particularly within residential areas; (ii) to reduce the rash and intolerant driving behaviour of the driving population manifested in aggressive driving, failure to give way and sounding the horn unnecessarily; (iii) to demarcate bicycle and vehicular traffic lanes within residential areas to enable the sharing of the roads in an organised manner; and (iv) to implement lower speed limits within school zones and specified busy school hours.

15. Ms Braema Mathiaparanam asked the Minister for Home Affairs (a) how many fatal accidents occurred at pedestrian crossings, in the last two years; and (b) what are his Ministry's plans to ensure that motorists slow down as they approach such crossings.

Assoc. Prof. Ho Peng Kee) (for the Minister for Home Affairs): Sir, may I take Question Nos. 13, 14 and 15 together?

Yes.

Sir, the number of accidents involving cyclists and pedestrians has remained stable over the last two years, averaging about 360 and 890 respectively per year. For the period January to August this year, compared to the same period last year, there were 241 accidents involving cyclists compared to 222 last year. There was an increase, but not as large an increase as Ms Irene Ng indicated. Accidents involving cyclists crept up from 222 last year to 241 this year, January to August. For accidents involving pedestrians, there were 533 this year, compared to 641 accidents last year. So that has come down. 16 and 17 pedestrians were killed at pedestrian crossings in the years 2001 and 2002 respectively.

Sir, indeed, we all agree that cyclists and pedestrians are two vulnerable groups of road users. In line with Ms Irene Ng's suggestion, Traffic Police has been educating them on safe cycling habits, tips for safer use of roads, and on traffic regulations. Traffic Police regularly conducts talks and exhibitions on the basic do's and don'ts of cycling for recreational and commuter cyclists of all ages. These talks and exhibitions cover safe cycling tips, such as wearing a protective gear, taking extra care when approaching road junctions and using proper hand signals. Tips are also provided to pedestrians on how to be seen and how to be safe. Particular effort is made to reach out to senior citizens who are usually less agile and responsive to dangers on the road and to children who are less conspicuous when crossing the roads due to their small build.

A total of 66 road safety talks and exhibitions, including segments on safe cycling, were conducted from January to August this year. These were conducted at primary and secondary schools, community and shopping centres and at army camps, reaching out to more than 37,000 people. Another key outreach is the Shell Traffic Games that has, since its introduction in 1981, been held annually and which has reached out to about one million school children. And indeed this year, it was expanded to cover more children and also held indoors, in conjunction with Children's Day.

On road safety in general, besides the annual road safety campaigns which are educational in nature, Traffic Police also takes tough and intensive enforcement actions to deter traffic violators. Besides regular patrols and special operations, Traffic Police also leverages on technology such as the use of static and portable cameras to keep our roads safe for road users. Traffic Police issued over 200,000 traffic summonses between January to August this year, an increase of about 13% compared to the same period last year.

Mr Ahmad Magad suggested lowering speed limits on roads within school zones and during specified hours. A similar concern was raised by Ms Braema Mathiaparanam, who asked about the plans to ensure that motorists slow down as they approach pedestrian crossings. Sir, there are already traffic signs in place to warn motorists to slow down and drive carefully when entering a school zone. Road humps have also been erected to slow vehicles down as they approach school zones as well as pedestrian crossings. Signages and road markings are also used in some major roads where it is not practical to have road humps. In addition, when these measures cannot be implemented to facilitate pedestrian crossing, pedestrian overhead bridges are erected.

Traffic Police will continue working with the Land Transport Authority to explore various measures, including lowering speed limits where appropriate, to enhance road safety around schools.

Sir, however, I am sure all in this House would agree that keeping our roads safe is not the work of Traffic Police alone. Traffic Police officers cannot be everywhere, every time, to keep an eye on road-users. A change in road users' behaviour and mindset to create a safe road environment for all can only come about through the collaborative efforts of all stakeholders, especially motorists, cyclists and pedestrians. Therefore, Traffic Police will continue to galvanise, through its various campaigns, more ground efforts. For example, following the recent accidents involving school children at Pasir Ris, I understand that Mr Ahmad Magad led a group comprising representatives from the Land Transport Authority, the Housing and Development Board, the Pasir Ris-Punggol Town Council and the Pasir Ris Neighbourhood Police Centre, to visit the accident site and its surrounding areas to explore ways to improve road safety there. I am sure other grassroots advisors do chip in too.

Another example is the Safe Drive Zones, a community-based road safety programme developed under the Community Safety and Security Programme (CSSP). This project aims to improve the safety of road users around schools, town centres and neighbourhood centres, by having volunteers from the community keep a watch on children and the elderly crossing the roads.

Hence, let us all do our part. On its part, let me assure the House that Traffic Police will continue to work closely with fellow professional agencies, like the Land Transport Authority, to improve road safety in Singapore.

Sir, can I ask the Senior Minister of State whether there is a study done on the bicycle accidents that have taken place and who tends to be at fault so that we can tackle the weak points?

Sir, it is a mixture of reasons. One reason is that motorists have not been keeping a good and proper lookout. There are other reasons, for example, the cyclists cycle across the pedestrian crossing, as has happened before. It is the fault of the cyclists. I think it is a matter of education and of being aware of each other's presence. If we take this collective approach, then the well-being of all road-users can be safeguarded.

: Sir, do we have a breakdown of the statistics of those that are involved in the accidents, for example, the children, the various adult age groups or even the foreign workers - I see a lot of foreign workers cycling around the estates - so that education efforts could be targeted?

Sir, in terms of the accidents involving cyclists, the number has crept up slightly. In terms of fatalities that have come up this year, most of them did not involve children. Once in a while we may have a child being hurt, and that catches our attention.

But the vast number of cyclists will be adult cyclists. I think it is better to really cover the ground, because we are also concerned about children. And, indeed, in terms of children's awareness of road dangers, we cannot take that for granted.

Let us take this current approach where Traffic Police will cover the ground working with various agencies to bring home the important message of not only safe cycling but also safe use of the roads and safe driving.

Sir, I am curious about the educational programmes that are given to pedestrians. I am asking this because right now there is a misreading at pedestrian crossings. The elderly person or the child does not know whether to cross or to wait. The motorist is also having that same dilemma. I think there is a lack of consistency and the pedestrians need to be informed that it is within their right to make a crossing. To have 16-17 people dying at pedestrian crossings is not a joke.

Sir, there is no confusion on the rules. But on the ground, it is important to do the right thing in a certain situation. For example, at a pedestrian crossing, the pedestrian will have the right of way. But our advice is that pedestrians must also be careful, because there may be drivers of cars who may not see you or who may be speeding or the driver may be drunk. If that happens, whilst a pedestrian may have the law on his side, he also suffers. So let us take this approach where we will continue to educate all concerned. It is better to be safe than sorry. For example, for young children and for the elderly, the advice to them is that when they cross a pedestrian crossing, they should raise their hands to catch attention. It is not required by the law. But our advice to all, including parents with children, is they may want to do that little bit extra. I have been to many Traffic Police functions over the years encouraging Singaporeans to be better motorists and better road users. If all of us can internalise it and if each of us with our own circle of contacts, whether as parents or siblings or children, can keep reminding our loved ones to be careful on the roads, that will go some way.

Sir, recently, I have seen a large number of bicycles equipped with self-installed motors travelling on the streets. Can I find out how aggressive is the authority clamping down on such activities? Do we see a need for stricter licensing requirements for such vehicles? I believe this is partly related to the Ministry of Transport.

Sir, this is under the Land Transport Authority. I think there is a categorisation where if it is above a certain capacity, then they will have to register. In terms of the details, the Member has to file a question with the Ministry of Transport.

Sir, would the Minister consider introducing legislation in the House to increase the penalty on errant drivers in situations where they are clearly at fault, and also to shift the onus of blame in such accidents on to the motorists, in favour of the pedestrian or cyclist?

Just to clarify on the Member's question, is he asking us to raise the punishment when the accident involves pedestrians and cyclists?

The motorist is at fault.

It all depends on the circumstances. There are enough sections in our various Acts, because we can charge a person under the Road Traffic Act or under the Penal Code. There is also a whole range of possible sections. So, for example, we can charge a person for careless driving or dangerous driving. In terms of the arsenal available for punishing errant motorists, it is there. For example, the Member, who has been in this House for a long time, will know that, in fact, the penalty for drivers who exceed the speed limit by more than 50 km per hour, the demerit points go up and his susceptibility to being suspended also goes up. Over the years, we have finetuned the range of punishments. What is really now needed is awareness that everybody can play a part.

Sir, the reason why I ask is that I recall an accident case involving a lady driver and a woman with a baby at the pedestrian crossing of a road junction. In that case, when it came before the court, it was found that the pedestrian was at fault. From that judgment, it seems that if a person is at fault and gets killed, it is his problem. I am asking whether we can introduce legislation in this House to shift the blame on to the motorist regardless of who is at fault.

I think each case will depend on its own facts. When the case goes before the court, the respective lawyers will argue the case. Sometimes, one party is wholly negligent. Sometimes, there is contributory negligence. The laws are there. I think it is better that the facts are presented before the judge who will then make a decision as to whether one side is wholly liable or both sides are liable and how to apportion the liability.

Sir, I wonder whether the Minister is willing to tighten and enforce the traffic laws in relation to cyclists. I notice that cyclists are cycling haphazardly on the roads. They turn and cross the road wherever they like. I also notice that bicycles are badly maintained. In the dark roads, many of them do not have any light at all. I live at a place where the road is going down a slope and I can hear these cyclists screeching down the road.

Do you mean "bicycles"?

It shows that their brakes are not in order.

Sir, in fact, we do have the Road Traffic (Bicycle) Rules where rules have been set down governing cycling behaviour. For example, if you are cycling at night, your bicycle must have proper lighting. Also, you cannot cycle against the flow of traffic. The rules are there. It is a matter of enforcement. The Traffic Police is mindful of the need to ensure road safety. Of course, it is also a matter of usage of resources because, in terms of road users that cause the greatest harm, it is really the motorists who speed or drink drive. So, let us leave it to the Traffic Police to do their job. Ultimately, the main point is that all who use Singapore roads should have that assurance that if they do their part, their lives will be safeguarded.

Two supplementary questions, Mr Speaker, Sir. First, can the Minister clarify if riding with slippers or sandals on the road constitutes a traffic offence? If it is, what is the rationale behind it? Secondly, will the Ministry look into capturing more specific data on accidents for data analysis so as to better understand the likely causes which lead to an accident? So far, we read of newspaper reports saying that the motorcyclist lost control of his vehicle. It seems irrational that the motorcyclist happily riding on the road suddenly loses control. Something must have caused the accident. Maybe more specific data could be captured for analysis.

Is the Member talking about motorcyclists or pedal cyclists?

Motorcyclists.

I think Mr Steve Chia rides a motorcycle. There is no prohibition against what kind of attire he should wear. It is more a question of education. Hence, it is common sense that a motocyclist should wear something that will not impede his control of the vehicle. I think we cannot regulate the T's and the I's. Ultimately, it is how the motorcyclist controls his machine. I think that is important. And this is where education comes in. Ultimately, if a person knows that what he does is really for his own safety, he would take the necessary precautions.

Mr Yeo Guat Kwang. We have five minutes left.

16. Mr Yeo Guat Kwang asked the Minister for Trade and Industry (a) whether precautions have been taken to prevent power failure in Singapore, as experienced in recent months in the United States, London and Malaysia; and (b) how will the opening up of the power generation market to more than one supplier benefit consumers.

Mr Speaker, Sir, power failures can occur for a variety of reasons, including accidents, poor design, improper maintenance, inadequate investments in back up capacity and inappropriate regulatory systems.

Initial reports from the US indicate that they may not have invested sufficiently in their systems. In the US, there was a perception that the regulators had not finalised formulating the rules for the industry. This made investments in infrastructure more risky. Consequently, the grid companies in US were less willing to invest in new infrastructure. As a result, there was inadequate reserve capacity, so a problem that would normally have been contained led instead to a massive failure in the system.

The power failure in the UK was attributed to the installation of an incorrect protection relay. This is a shoebox-sized item of safety equipment designed to act like a normal domestic fuse. It disconnected a circuit when it should not have, thus causing the power failure. This is an example of human error.

In the case of the power failure in north Malaysia, it was reported that problems in the main power delivery system were responsible. A standby power line had tripped without warning while maintenance work was being carried out on a major transmission circuit.

Recently, Italy also joined the ranks of countries that had suffered a major blackout. Reports indicate that the Italians were buying electricity from France instead of building up their own capacity. Without adequate capacity or diversity of supply, the Italian system became vulnerable and collapsed when the power lines transmitting electricity from France to Italy failed.

Mr Speaker, Sir, system security is a top priority for Singapore. The Energy Market Authority oversees system planning and development to ensure that we have a well-designed, reliable system with adequate capacity for our needs. This regulatory framework must promote adequate and on-going investment in up-to-date infrastructure and equipment by all the stakeholders in the industry. Adequate reserves must be put in place to back up any single failure that leads to a sudden loss of capacity.

We also have precautions against disruptions in our fuel supply. For example, all gas-fired power plants are also capable of using diesel as an alternative fuel source, and all generation companies must stockpile diesel.

Other precautions include:

a system to monitor the condition of critical cables in our electricity grid;

carrying out regular exercises to test the combined readiness of the entire electricity system and the organisations that operate the system in order to respond to emergencies and to restore power supply promptly; and

carrying out regular audits to confirm that the security of the system is maintained.

Sir, I must caution the House, however, that there is a need to balance these additional investments for system security against increased costs to consumers. In addition, I would also like to stress that while we can minimise the risk of failure, it is impossible to totally eliminate the risk even with the most modern systems in the world.

I will move on to the second part of the question which is on liberalisation of the electricity market. We have opened up both the generation and retail sectors to competition, and this has benefited consumers. Firstly, competition has incentivised the generation companies to actively pursue efficiency gains. The generation companies have installed gas-fired plants to replace the less efficient oil-fired steam plants. Within three years of its introduction into Singapore, natural gas now contributes to about 60% of the total electricity generated in Singapore.

This drive towards efficiency will, over the long term, exert a downward pressure on electricity prices. It has so far resulted in a 9.5% reduction in electricity prices, discounting for movements in oil prices. This saving has already been passed on to all consumers.

Retail competition has also benefited consumers. About 250 large electricity consumers with annual electricity consumption of 2 MW and above have become contestable since July 2001. About 97% of these consumers have already switched to buying electricity from a retailer of their choice. These consumers have reaped discounts of up to 20% to SP Services' regulated tariffs.

The next phase involving 10,000 large industrial and commercial consumers is currently being implemented. About 75% of total electricity sales in Singapore will be open to competition when this exercise is completed around mid 2004.

3.00 pm

Order. End of Question time.

[Pursuant to Standing Order No. 21(3), Written Answers to Question Nos. 17, 20-21 and 32 on the Order Paper are reproduced in the Appendix*. Questions Nos. 18, 19, 22-31 have been postponed to the next available sitting of Parliament.]

* Cols.

Mr Speaker, Sir, one regular SAF serviceman and two Full-time National Servicemen died during training in unrelated incidents over the period of 21st August to 23rd September this year. MINDEF is very sorry for the anguish and distress that has been caused to their families and loved ones. I deeply regret the loss of these three young men. I extend my heartfelt condolences to their families and loved ones.

MINDEF treats every training death with the utmost seriousness. In every case we convene a thorough investigation to determine the cause of death and also to enable us to take all the necessary measures so that what can be prevented will not happen again.

It is important to remember that the SAF has to train our soldiers as they will fight. The harder and more realistically we train them, the more likely they are to fight well and survive when called upon to defend the nation. The training also has to be conducted professionally and safely. MINDEF therefore constantly aims to strike the right balance between training realism and safety. We take all the safety precautions and measures feasible to minimise risks. But in the nature of military training, there will always remain some risks which cannot be completely eliminated.

Let me now explain the circumstances of the three cases and the measures that are in place to ensure the safety of our servicemen as they undergo military training, as well as the actions that MINDEF has taken. I shall take the most recent case first, which occurred on 23rd September 2003.

Recruit Chew Heng Huat, Andrew

- IPPT Categorisation Test, 23rd September 2003

Summary of Incident

The serviceman who died was Recruit Chew Heng Huat, Andrew. On enlistment, Recruit Chew had been classified as being medically fit except for being moderately obese. He was in the fourth week of the four-month Basic Military Training Programme for obese recruits. On 23rd September 2003 at the Basic Military Training Centre (BMTC) School 1 in Pulau Tekong, Recruit Chew was undergoing an Individual Physical Proficiency Test (IPPT) categorisation exercise to gauge his fitness level. At about 1745 hours, during the 2.4 km run of the IPPT, Recruit Chew collapsed 30 metres short of the end point. He was immediately evacuated to the Pulau Tekong Medical Centre for medical attention and thereafter, evacuated by helicopter to the Singapore General Hospital, arriving at 1842 hours. He was pronounced dead at 1905 hours. The cause of death is pending final determination by the forensic pathologist from the Health Sciences Authority.

IPPT Categorisation Exercise

The IPPT categorisation exercise for obese recruits takes place during the fourth week of their 4-month Basic Military Training programme, after they have completed three weeks of physical conditioning. In the normal 3-month BMT for non-obese recruits, this categorisation exercise is done in the second week. The purpose of the categorisation exercise is to group the recruits according to their physical fitness level. This allows us to design the subsequent training in a more focused, customised and progressive way, taking into account the health and fitness condition of each serviceman.

Actions Taken

Our preliminary investigations showed that there were no lapses in the conduct of the IPPT categorisation exercise which contributed to the death. Proper lesson plans and safety measures were in place. The measures included making sure that the recruits had adequate sleep the night before, that they were well hydrated, and were not feeling unwell when the IPPT started. The medical evacuation of Recruit Chew by land and air was also executed swiftly and according to the established plan for such contingencies.

MINDEF has convened a Committee of Inquiry into the incident. The Inquiry is still in progress. Meanwhile the Commander of the Basic Military Training Centre has briefed all the instructors on the incident and re-emphasised the need for safety understanding and awareness.

2SG Rajagopal Thirukumaran

- Ranger Selection Test, 3rd September 2003

Summary of Incident

The second death was that of 2SG Rajagopal Thirukumaran, a regular serviceman, on 3rd September 2003 when he was taking the Ranger Course selection test at Hendon Camp. This test is to ensure that candidates for the Ranger course meet the physical fitness standards required for the course. 2SG Rajagopal collapsed at 1627 hours, after completing the 5-km road run in good time. He received immediate medical attention before he was evacuated to Changi General Hospital, where he was pronounced dead at 1725 hours. The cause of death is pending final determination by the forensic pathologist from the Health Sciences Authority.

Actions Taken

Our preliminary investigations showed that the lesson plans and safety measures for the selection test were in order and properly executed. A warming-up exercise was carried out in accordance with the lesson plan. The safety briefing for the road run was conducted, and water points and safety marshals were deployed.

MINDEF has convened a Higher Board of Inquiry to investigate the incident, which is still in progress.

2SG Hu Enhuai

- Combat Survival Training (CST), 21st August 2003

Summary of Incident

The third incident, on 21st August 2003, occurred at Pulau Tekong during a Combat Survival Training (CST) course. This course trains reconnaissance troopers, scouts and snipers who have to conduct operations deep in hostile territory, to survive, evade capture, and resist and escape if captured by the enemy. The course has both theory and practical elements, and psychological preparation is a key feature. It culminates in a summary field exercise where the skills taught in the classroom are applied and put to the test. The 80th CST course began on 13th August 2003 and was scheduled to end on 22nd August 2003.

On 21st August 2003, 2SG Hu Enhuai, a sniper, was participating in the final summary exercise when he collapsed at around 1645 hours. He was given medical treatment at the scene and evacuated to the Pulau Tekong Medical Centre at 1710 hours. Subsequently, he was evacuated by helicopter to the Singapore General Hospital and arrived there at 1752 hours. He was pronounced dead at 1817 hours. The cause of death as certified by the forensic pathologist of the Health Sciences Authority was asphyxia and near drowning.

Actions Taken

The SAF suspended Combat Survival Training immediately after the incident. Four Officers and a senior Specialist who conducted the training were also immediately suspended from service.

MINDEF convened an independent Committee of Inquiry, chaired by a senior civil servant from outside MINDEF, to investigate and determine the full facts of the incident. The Committee of Inquiry submitted its report on 3rd October 2003. MINDEF is now studying the report in detail. I will now brief Members of the House of the facts established by the Committee. 2SG Hu's family has also been kept informed.

The Committee of Inquiry found that the trainers had not followed the approved lesson plan for this training exercise. According to the lesson plan, the trainees were only to be doused with water with the intent of showering them. The lesson plan specifically prohibits physical contact and manhandling of trainees during this phase, and states categorically that instructors should never force water treatment into the body. Submerging the head of a trainee into water was not authorised.

However, instead of being doused with water, 2SG Hu had his head submerged in water four times. As a result he aspirated water, had breathing difficulties and collapsed. He was treated promptly by a medical orderly at the scene and evacuated to the Singapore General Hospital, but despite the medical treatment he died.

Besides 2SG Hu, other trainees also had their heads submerged in water. As a result, six aspirated water and required medical treatment. The Combat Survival Training had been conducted in an unauthorised way.

Sir, this is an extremely serious lapse in the conduct of the training. It should never have happened. MINDEF takes the gravest possible view of this matter. I am determined to establish the full facts of how such an unauthorised act occurred and to identify the persons responsible for it. I have convened a Higher Board of Inquiry to do so. Investigations are also being conducted by the Criminal Investigation Department of the Police, and there will be a coroner's inquiry. The results of these investigations will be made public. Any SAF personnel who have been negligent or culpable will be held to account and punished according to the law.

After the incident, MINDEF suspended five instructors who conducted the training. In addition, MINDEF has relieved from their duties two other instructors who were responsible for supervising the training. MINDEF has also relieved the Commanding Officer of the School of Commando Training from his command and has also appointed a new Chief Commando Officer to take charge of the Commando formation.

The SAF will conduct a thorough and careful review of how the Combat Survival Training course is conducted and the safety measures for this course before we resume such training. For this purpose, the SAF will benchmark our training practices against practices in other established armies, and audit how our training is actually carried out in the field, to ensure that training of this nature is conducted professionally and safely.

Conclusion

Sir, MINDEF deeply regrets the loss of the lives of our three soldiers. Investigations as well as independent inquiries have been convened for all three cases. We will probe for deficiencies in systems and procedures; lapses in execution or compliance; whether any persons by their acts or omissions were responsible; and what remedial measures will prevent such incidents in the future.

Where we discover deficiencies, we will put them right immediately. Where persons have failed in their duties, MINDEF will take action against them. We expect the highest level of professionalism from our officers and men, and will not tolerate any laxity or indiscipline that endangers the lives of our soldiers. When something goes wrong, we will account to Parliament, the families of servicemen, and the public. We will explain fully and honestly what went wrong, and what we will do to put things right and prevent it from happening again. This is the way to maintain the confidence and trust of the public in the SAF.

What happened to 2SG Hu on the Combat Survival Training course should never have happened. I will get to the bottom of how such an unauthorised and unsafe training practice could have crept into the School of Commando Training. This incident has been a heavy blow to the Commandos, who are one of the finest formations in the SAF. Over the years, the Commandos have served Singapore well. In 1974, in the Laju incident, they escorted the hijackers to the Middle East. In 1991, they rescued 127 passengers from SQ117. In their quiet and unseen ways, the Commandos have performed

many other operations to safeguard Singapore from the new and deadly threats of terrorism. The Commandos will set things right and rebuild themselves because, as professionals, I know that this is what they will do. They will succeed as they have the professionalism and the determination to do so, and because they will have the support of the Members of this House and all Singaporeans.

Sir, parents entrust their sons to MINDEF and the SAF to prepare and train them to perform a national duty in the defence of Singapore. This is a heavy responsibility that MINDEF and the SAF do not take lightly. We should not let up on hard and realistic training. But we will never compromise on safety nor risk the lives of our servicemen. It is MINDEF and the SAF's solemn commitment to take in our young men, train them well and return them safely at the end of two or two and a half years to their families as operationally-ready soldiers.

Sir, first, I would like to thank the Minister for a very comprehensive, detailed and very open reply on his part. It is of course shocking for us to hear that there has been a gross violation resulting in the death of Sergeant Hu. And I think no matter what we say in this House, it will not erase the pain that the parents of these young men feel over the deaths of three people, particularly in the case of Sergeant Hu. But having heard the Minister, both the parents as well as the public would at least appreciate and rest assured that a thorough and open investigation will be done, the gaps will be identified and steps will be taken to rectify them. And I am also assured by the Minister's personal assurance that he will personally look into this - that the investigation will be done and those responsible will be punished - and that parents can feel safe in entrusting their sons to the SAF for training purposes and to defend the country.

Sir, having said that, I would like to ask the Minister a number of questions. I would like to ask, firstly, when will the inquiry be completed, the one involving Sergeant Hu, and when will it be made public. I do not think an inquiry of this nature should take too long a time because of the public interest involved.

Secondly, as the Minister has described, there is a system of checks and balances. But, in spite of that, some serious lapses had occurred. So after the review, what assurance will there be for parents that there will not be any future lapses?

Thirdly, I would like to ask whether there is a channel of communication for NSmen, who have any grievances or who are not happy with the way they are treated, to air them and get redressed.

Fourthly, Sir, were there any incidents of breaches of this nature involving the training of NSmen in the past, were these investigated and how were they dealt with?

Finally, with regard to the two other NSmen - Rajagopal Thirukumaran and Andrew Chew - were they suffering from any illnesses before the training, or did they show any signs of distress throughout the training? I would appreciate the Minister's response, Sir.

Sir, the investigations into the death of Sergeant Hu are being undertaken by the Criminal Investigation Department of the Police and the coroner. So they will have to take their course according to the law and the coroner's inquiry will be conducted in the open. The possibility is that there will be criminal proceedings in court and that will also be conducted in the open, and that will take the due course of the law.

Sir, on safety in the SAF, the SAF has evolved a comprehensive system of evaluating risks in all training and the likelihood of occurrence. Safety measures are prescribed which are commensurate with the risks and the likelihood profile of occurrence. For example, there is a mandatory hydration requirement for troops prior and during the conduct of strenuous training activities. There is also a rest management plan which stipulates the minimum sleep requirement for every window of 24 hours when troops are not staying overnight on field training. And this is complemented with a system of training supervision, audits and checks to ensure that the lesson plan are complied with in training. These are stated in the SAF's Training Safety Regulations. Within the unit that is conducting the training, the supervising officer supervises the training and ensures the conduct and safety of the training. In the event of any contradiction on the conduct of the training and training safety on the ground, he has the authority to overrule the conducting officer. The conducting officer conducts the training activity according to lesson plan and ensures that the training is conducted in accordance with the approved lesson plan. He also ensures that all safety requirements pertaining to the training are complied with by the participants, visitors and observers. Safety officers are appointed to ensure compliance of safety requirements by the participants during the training.

Over and above this, ad hoc training safety audits and checks are also conducted in the army by the General Staff Inspectorate (GSI). GSI conducts such spot checks on units conducting training to validate the safety awareness and procedures. The checks also serve to ensure that the training is conducted in accordance with the approved lesson plan and that the necessary training safety regulations are complied with. These training audits and checks are being stepped up. In this case, these systems and checks failed to pick up this gross violation of training safety and conduct of the training. In any such system, we depend on people to carry out their duties responsibly. And when people do not carry out their duties responsibly, no matter how many levels of checks, it will not solve the problem. The key here is that people must carry out their duties responsibly and they must be held to account for these responsibilities, and I intend to ensure that that is done.

Sir, on channels of communication, every recruit, and indeed every parent, upon enlistment is given a booklet. The recruit gets a Recruit's Handbook and the parents get a parent handbook, called My Son, The NS Man. And in these two handbooks, the method by which a soldier can seek redress, or if he has concerns, the methods for raising them are described. I will read from the booklet and I quote:

"The SAF provides for any serviceman who thinks that he has been unfairly treated to raise his problem to his Commander. When seeking redress, you [the serviceman] should give the relevant details of the facts in writing so that necessary investigations can be carried out. If the serviceman is unable to write, his complaint will be taken down in writing. The SAF also ensures that any case of complaint that is reported will be investigated and if it is valid, appropriate action would be taken against the guilty party. [And from time to time, it does happen and we do take action.]

If a serviceman is not satisfied in the way the complaint is being dealt with, he can bring this up to the Armed Forces Council in writing. The Armed Forces Council will examine the complaint and take appropriate follow-up actions. Such complaints should be addressed to the Secretary of the Armed Forces Council, Ministry of Defence.

The SAF Provost Unit also monitors and investigates any breach of military discipline including misconduct and ill-treatment. Where such complaints are found to be true, the SAF will take action against the offending serviceman."

Sir, there are also provisions for counselling for servicemen so that servicemen may call the SAF Counselling Hotline at 1800-2780022 at any time if they need to talk about personal problems which they may have. So, Sir, there are avenues for servicemen to seek redress and the same information is also contained in this book, My Son, The NS Man, which is distributed to all parents of newly-enlisted recruits.

On whether there were any previous breaches and how they were investigated, for the Combat Survival Training Course, this was the 80th course. 6,000 trainees have completed this course. There have been no previous similar cases which have been reported, although we are investigating to look into whether the practice may have started before the 80th course. But there were no reported cases which required medical treatment prior to the 80th course. The HBOI is looking into this matter.

Sir, whether the two NSmen were ill, first of all, they were not two NSmen. One was a NSman, Recruit Chew, and the other, 2SG Rajagopal, was a regular serviceman. 2SG Rajagopal was a very fit man and that is why he volunteered to go for the Ranger course, and the Ranger course is a physically very demanding course which challenges the servicemen considerably. So 2SG Rajagopal was a very fit man.

In the case of Recruit Chew, he did have a medical problem several weeks before the incident. But he had not reported ill on the day and each of the servicemen also had the opportunity to declare if they were not feeling well before such an IPPT test, as any other physically strenuous activity.

Mr Speaker, Sir, what has happened is tragic and we grieve with the families over the deaths of our servicemen. I also welcome the frank and sincere statement of the Minister. As a follow up, I want to ask some questions. From hindsight, we know that such things happen. I want to ask whether, based on this experience, the Minister considers the safety measures we have adequate and, if not, what new measures will MINDEF consider instituting in our training programme. Secondly, I know that in many armies overseas, those conducting combat survival training course, particularly prisoner of war training, would be very mature officers with many years of experience. I therefore want to ask the Minister whether he will consider appointing officers of certain breadth of experience to conduct such courses, officers who will know when to stop and when to let go if it is a very difficult judgement, but it is something required of officers in such strenuous training.

Secondly, the Minister admitted that there are lapses in our training programme which resulted in such a tragic event. I understand of course that the General Staff Inspectorate is supposed to do inspection of training to prevent such tragic incidents. I want to ask the Minister whether our General Staff Inspectorate is making regular visits to the camps, whether it has adequate staff to do such regular visits and whether he will consider beefing up the General Staff Inspectorate to make more regular and thorough visits to camps to ferret out any lapses or unwelcomed practices.

Lastly, the Minister has announced that there will be a Committee of Inquiry and a Higher Board of Inquiry. I understand from some parents that they have doubts over the composition of such a Committee and a Higher Board of Inquiry because they are mainly staffed by MINDEF or SAF officers. The Minister said that it is chaired by a civil servant from another Ministry.

But would it not be better, for transparency and public confidence, if members of the public outside MINDEF and outside the civil service were represented on such committees, so that they can participate and really assure the public that all is above board and is transparent?

Sir, the SAF, and particularly the Army, are reviewing all their activities and safety measures after this incident to ensure that things are in order. They have a risk categorisation system, and they are starting with the high-risk activities and moderate-risk activities before moving on to the other activities.

Sir, as I said earlier, systems are operated by people. People have to take responsibility for what they do. If we have two checks, and both are responsibly carrying out their duties, things will be all right. If we have three checks, and three people are not responsibly carrying out their duties, things will still go wrong. The key issue here in this case is that the officers who were charged with carrying out their duties did not do so in a responsible way and, hence, the tragic incident occurred. This has to be put right.

Sir, the persons conducting training in this case were experienced people. The conducting officer is 44 years old and has 10 years of experience in the School of Commando Training. The supervising officer is 33 years old, has been a Company Commander, Company 2IC and is the OC of the Commando Training Wing. These are experienced officers and Warrant Officers, and they should know what they are doing.

As for GSI, the Army is looking at the General Staff Inspectorate to see how it can strengthen the function of the General Staff Inspectorate in conducting independent audit checks on the units.

Dr Ong has suggested outside members to take part in committees of inquiry. Today we have members who are outside of MINDEF, such as civil servants who chair committees of inquiry, and we also have a doctor who is outside of MINDEF and the SAF to sit on the committee, so that there is an independence of views. But I think Dr Ong has raised a useful suggestion. Allow me to look at it and see whether we can put that into effect.

Sir, the commandos are an elite force, and it is a badge of honour to be tough and mean. I wonder whether the problem goes beyond the systems and into the culture of the commando unit, where perhaps an unwritten code has evolved that even overrules the written ones. Perhaps the Minister would want to see whether there is a deeper problem beneath the surface.

Sir, I expect my commandos to be tough and mean, but I expect them also to be professional and to carry out their duties properly. The two are not inconsistent, and that is why I have posted in a new Chief Commando Officer to draw a line under this incident and for the commandos to rebuild themselves.

Sir, I have two questions for the Minister for Defence. Given that the concept and image of National Service has evolved somewhat positively over the past few decades, where I think many now serve with real pride, how would the Minister assure the public that they can continue to put their trust in the SAF and that there will always be: firstly, honesty and complete disclosure about any mishap; secondly, utmost sincerity in tracking down the causes of death and taking the necessary corrective action as appropriate?

The second question is specific to the internal audit that the Minister was talking about, whether, as a preventive measure, there is merit in setting up an audit body comprising ex- or non-SAF personnel to audit training programmes so as to ensure that only authorised methods are allowed and that safety standards are adhered to.

Sir, I will look into the suggestion raised by Mrs Lim Hwee Hua on whether we can strengthen our audit in this way. I will look at it, together with the suggestion of Dr Ong Chit Chung on the GSI, to see whether that is one way in which we can bring a lot more experience into the GSI and to have more people to do more audits.

Sir, I know that the words I say in this House will never be sufficient to alleviate the grief of the families of those who had died, nor fully answer the points and concerns that have been raised today and which surely must be in the minds of the public. They have to be answered, they must be answered. But not only with words, but by the actions of the SAF - what the Commando formation does to put right what has gone wrong and what the SAF does to look after its soldiers.

Sir, this morning, I summoned all the unit commanders and senior commanders in the SAF from all the three services together with the service Chiefs - more than 400 of them - to impress upon them the seriousness of this incident and to reinforce the importance of looking after their men. I told them that this incident is a stain on the reputation of the SAF and that they have to erase that stain by their actions. Every instructor, section leader, unit commander, senior commander, is responsible for looking after his men. And they are personally responsible for this.

I explained to them what I mean by looking after their men. Several years ago, I visited a country where, due to the security situation, units of the armed forces had to be ready for battle at any time. I spoke to a young commanding officer in an elite unit with young national servicemen and asked him what weighed most heavily on his mind, what kept him up at night. He told me:

"Sir, what is foremost in my mind every day and what I think about all the time is that if my unit is called to battle tomorrow, that I have trained my men well enough so that they will do their duty for their country and be able to carry out their mission; that I can bring my men home again because I have trained them and prepared them properly; and that I can face the families of those who did not return, knowing that I did all I could to train them well and to lead them well in action."

Sir, that is what our commanders must do to look after their men. I have two priorities now.

First, to complete the inquiries and investigations, to find out who is responsible for carrying out these unauthorised acts and allowing them to take place. Investigations by MINDEF and the police will be thorough and complete and, where there had been shortcomings, failures or wrongdoings, those responsible will be held to account and face the full force of the law.

Second, to put right what has gone wrong in this unit and for the whole SAF to learn from this and tighten up, so that this does not ever happen again. To put the commandos on the path to setting right what has gone wrong and to rebuild themselves, MINDEF has posted in a new Chief Commando Officer to lead that process.

Sir, I said just now in conclusion - and I think it is important that I say it again - that parents entrust their sons to MINDEF and the SAF to prepare and train them to perform a national duty in the defence of Singapore, and MINDEF and the SAF do not take this responsibility lightly. We will not let up on hard and realistic training, but we will never compromise on safety or risk the lives of our servicemen. It is MINDEF and the SAF's solemn commitment to take in our young men, train them well, and return them safely at the end of two or two and a half years to their families as operationally-ready soldiers.

May I ask the Minister on the number of deaths of our National Servicemen in the last three years? Does he have a breakdown on the causes of such deaths? How many of them were due to irregularities, mishaps and sickness?

Sir, in the last three years, ie, from 2001 until September 2003, the Army has had a total of six training-related deaths, including the three that occurred this year: three this year, two in 2002, and one in 2001. There are various reasons for these. In the last 10 years since 1993, there were a total of 24 training-related deaths in the Army. There were a number of reasons. Some of the men were struck by lightning during exercises in the open; some died because of premature explosions of ordnance in the barrel; others had died during physical training, either during exercising or in field training exercises; and none, until this particular incident, had died for this kind of reason.

Sir, at the end of the day, to be able to discharge one's duties, it has got to do with one's character - that of the incumbents. In putting the instructors and trainers in these jobs, other than their competencies at their jobs, would the selection criteria of putting these men in these jobs, in order to balance their job competencies of having to be tough and mean as commandos, include a test and evaluation of their character traits?

Sir, instructors have to be competent, as in this case. The conducting officer is 44 years old and has had 10 years of experience in the School of Commando Training. He is an experienced commando and an experienced Warrant Officer. Others have had experience as Company Commanders and so on.

We select our officers carefully through a process by which they go through BMT. If they are selected, some of them go through as Specialists and Warrant Officers before they become Officers. They go through a 9-month OCS where their strengths and weaknesses can be seen, where their character can be seen where they are tested, and they have to pass. And before they become instructors, they have had to hold other sorts of appointments to prepare them, particularly instructors in a place like the School of Commando Training. So, they are tested and evaluated in a number of different ways before they become senior instructors, as in this case, in the School of Commando Training.

Sir, it is unfortunate that we lost three servicemen. But having gone through National Service myself, we know that accidents do happen and, in this case, there were two soldiers who collapsed due to physical activity and one due to negligence. The question I have for the Minister is: in training, accidents do happen, but in the cases that the Minister mentioned, did we react fast enough and appropriately? Did they get proper medical attention and is MINDEF in all its training procedures prepared to handle such unforeseen circumstances?

Sir, medical cover requirements for training activities are one of the most important things which have to be provided for and are one of the things on the checklist which every conducting officer must plan for. And the requirements are clearly prescribed in the Training Safety Regulations. The Training Safety Regulations outline when a medical officer, eg, a doctor, is required to be present, and when a medic is adequate. It depends on the type of activity that is being conducted. Ambulance, safety vehicle and what particular types of medical equipment required are also stipulated. The requirements are based on the nature of the activity,

in-camp or out-of-camp, and the number of soldiers involved. For example, a doctor would be present for all battalion size and above training.

Examples of different categories of exercises which require different kinds of medical preparations are live firing, field training, water-based training, heli-borne training, strenuous physical activities and sports. Examples of medical coverage requirements include the requirement for a medical officer to be physically present at the medical centre when physical proficiency and obstacle tests are carried out where soldiers are expected to exert maximally. Another example is the requirement for an automated oxygen resuscitator for water-based activities when there is possibility of drowning.

The training safety regulations were extensively reviewed in 1999 and further updated in January this year with inputs from all the Army formations. In the light of the recent incidents, the Army would conduct a further thorough review of medical coverage requirements for all moderate and high-risk activities. The plan is to widen the requirements for some of the equipment and look at perhaps new kinds of equipment that might be provided, for example, portable defibrillators.

Sir, the investigations of these three cases show that the medical attention and coverage on the ground - what the medics did to try to help the servicemen in distress - were correct and appropriate. In the case of Sergeant Hu, the medic did all he could with the equipment that he had. But because training was carried out in an unauthorised way, if he had other kinds of equipment, he might have done better. But that was not planned for because that type of training would not have called for that kind of equipment.

The medics do well, they get realistic training. In the three cases, so far as we know, the inquiries have not shown up any lapses in the medical treatment given by the medics on the spot.

Sir, I accept that it is very difficult to control human feelings which may lead to lapses in safety standards. In the case of Sergeant Hu's tragic and untimely death, I was wondering whether or not it could have been avoided if we had an independent officer accompanying the training troop at the time when they were going through a training session. For example, if we had a sadistic instructor, meting out all these punishments to the trainees, at least we would have an independent officer accompanying the training troop to act as an independent check against abuses and lapses in observing those training safety requirements.

Sir, I will ask the Army to consider this proposal from Mr Sin Boon Ann. The case here is that individuals who are charged with the responsibilities must carry out their responsibilities properly. Whether the person comes from the unit or outside the unit, he has to carry out his responsibilities properly. That is the key in making sure that the system works. You can put in certain levels of checks, but beyond a certain level, many more checks become counter-productive because everyone presumes that everyone else has checked, and therefore, he does not check. But if you know that you are the one and the only one responsible for checking, and if you did not, and something went wrong because you did not check properly, there is no doubt about who is responsible. I think, in this case, it is a question of discharging your duties properly and with responsibility.

Sir, as a mum, like many others who have sons who would go to the Army in the future, in the light of the unfortunate incident of Sergeant Hu, I would like the Minister to comment on the effectiveness of the current system of reporting of feedback by NSmen for possible breaches in training exercises that may endanger the lives of the NSmen and whether he would look into ways to improve this feedback system.

Dr Khor has raised a very useful comment here. The more open the organisation is and the more receptive the organisation is towards reporting of safety breaches, the better the organisation would be in terms of planning for safety requirements and eliminating safety breaches. Yes, Dr Khor has a point there. I will ask the Army to have a look to see how we can develop a more open system of reporting potential safety breaches because we have to report not just actual safety breaches, but potential safety breaches in order to reduce and eliminate the possibility of some violation of safety regulations resulting in accidents.

Mr Speaker, Sir, the Minister has said rightly that no amount of words can alleviate the grief of the three families. They have lost their sons serving the country. Can the Minister assure the House that the aggrieved families will receive adequate compensation? Secondly, in the light that accidents and deaths do happen during training, is it time to review relevant sections of the SAF Act pertaining to compensation for accidents and deaths?

Sir, when a serviceman dies in the course of duty, his next-of-kin or dependants will be compensated in accordance with the provisions in the Workmen's Compensation Act. The Workmen's Compensation Act is revised from time to time and, therefore, the compensation is also revised from time to time.

Besides the compensation according to the guidelines in the Workmen's Compensation Act, MINDEF has a group insurance scheme which we encourage our servicemen to take part in. Besides that, the SAF also has a benevolent fund to assist members of the family, for example, surviving children, with their education and other needs. So there is a variety of provisions available for compensation as well as to assist the families of deceased servicemen.

I have a question for the Minister. With regard to the report of the investigations, is there any indicator in the findings of the investigations of what may have caused or compelled the trainers or officers to grossly divert from the lesson plan and break rules?

Sir, I have no information on that. I would not like to speculate on what the motives or the reasons why these officers behaved in the way that they did.

Mr Speaker, Sir, I have two questions for the Minister. The first question is with regard to the access of NSmen to complain about ill-treatment and safety breaches. At the moment, I am glad that the Minister has explained that they can approach their Commanders and, ultimately, they can also approach the Armed Forces Council. But my fear is that this is still within the MINDEF organisation. Would the Minister consider setting up an independent Committee, comprising maybe external civil servants or even civilians where National Servicemen have access to, so that they can express their concerns? This is the first point.

The second question is with regard to the affected families. As a follow-up to Mr Arthur Fong's question, I would like to ask the Minister, other than the financial assistance that is given to these families, whether there would be other assistance, such as emotional and counselling support for these families to help them cope with the tragedy.

Sir, I would be hesitant to set up an independent complaints bureau for the SAF. It is a disciplined organisation. It has to operate in a disciplined system, in a system and structure where there is authority and responsibility between subordinates and superiors, and this should be respected. Without that, the discipline and authority structure in the SAF could be undermined. I would be hesitant to introduce an independent complaints bureau outside, a separate system.

Nevertheless, I should add that in the Recruit's Handbook, it does say that, "If a serviceman believes that he has been ill-treated or victimised by his colleagues or superiors and that his complaint has not been dealt with satisfactorily, he may approach the MP of his constituency for assistance. For any such complaint through the MP, the serviceman must give a detailed account of his complaint in writing. The serviceman would be required to sign his statement giving his NRIC No, name, rank and unit." This is to allow the matter to be taken up seriously because without such information, it would not be possible to investigate the matter. So there are avenues open.

With regard to other assistance provided to the families, yes, we do provide other assistance to the families in a way which is sensitive to the needs and requirements of the families.

Mr Speaker, I welcome the Minister's assurance and commitment to a thorough inquiry into all three incidents in a transparent manner. But, Sir, my concern is a different one, especially if it is sparked by the tenor of the discussion in Parliament so far, which appears to suggest that we have now got all these very deep concerns about the state of the SAF foremost and the kinds of suggestions that are emerging.

I would like to just find out what measures are going to be put in place so that this does not get taken out of context. We should not let the actions of individuals or isolated incidents tarnish the hard-earned reputation of the SAF. We do take pride in the SAF. My concern is that if this becomes a witch-hunt, then we have a different kind of problem. I am also concerned about the impact that it would have on the morale of our SAF men who are going to be called to put their lives on the line, if necessary.

I would like to ask the Minister what is the state of the SAF's morale in the wake of these incidents and also what steps will be taken in public communications, both externally and internally within the SAF, to ensure morale remains strong.

Sir, this incident is a setback and it is a blow for the SAF. And, obviously, it would affect the morale of the SAF, in particular that of the Commandos. But I am confident that the Commandos will rise to the occasion. They are determined to set right what has gone wrong, tighten up their systems, achieve the target of excellence that they set for themselves,

look after their commandos, look after their soldiers, look after those who are placed under their charge well, redeem their reputation. That, I know, is the make-up of the commandos. They rise to the challenge.

We will have to work hard in MINDEF and the SAF in the coming days, weeks, months, years, to restore the confidence of the public in the SAF. And that is the reason why I called my commanders in this morning, 400 of them, to speak to them, to tell them that this is a serious matter, pay attention to it, they are responsible personally, and what they do, more than what I say in Parliament today, will affect what the public think of them and the SAF, and I believe that they have got the message.

Sir, after the death of Sergeant Hu and the other two servicemen, is there any critical incident debriefing and/or counselling conducted for the other trainees and the unit members to ensure that they do not suffer from any post-traumatic stress disorder?

Sir, the answer to the question is yes.

Sir, the Minister says that in the last 10 years since 1993, 24 training-related deaths occurred. I can understand NSmen dying from premature explosion of ammunition or even struck by lightning. But I think death from lack of physical fitness is really unacceptable. I can understand why. Some of the boys who go into NS have not taken part in sports at all in school. How can they, within four weeks, be fit to run five miles and complete it within a certain time? I think it is quite impossible. I have done a lot of physical training whilst I was in school. And to be fit, we had to go for training almost every day. Within four weeks, how can these boys build up their physical fitness? I think it is just not possible. Unless, of course, they have been doing some physical exercises in school. An obese person, obviously, has not been involved in sports in school. My question is whether the Minister is willing to talk to the Education Ministry to see whether some of these boys can build up their physical fitness before they go into NS. Otherwise, there will be deaths from lack of physical fitness again.

Sir, I can assure Mr Chiam that I have done so very often. I have spoken to the Minister for Education, sometimes even in my sleep, over this subject. Mr Chiam will know that we have the Trim and Fit Club which has managed to maintain obesity rates in Singapore among young children to around 10%, which is quite remarkable compared to other countries which have the same level of development and access to good rich food, compared to even countries like China, certainly when compared to the United States. Even for this group who is obese, we try to bring them up to a physical standard which allows them to contribute to the nation in national service. That is why we have specially designed this basic military training package to cater to servicemen of different physical abilities. The normal basic military training programme is three months long, but the basic military training for those who have not passed the silver NAPFA standard in school is longer than that. And we categorise the servicemen according to their physical fitness and ability, and customise the programmes to prepare them in a progressive way to meet physical standards.

Two years ago, I went for the Sheares Bridge run. One of the guys whom I was running with was from the obese platoon. He was an officer. He out ran me. At that time when I spoke to him, he had gone back to Pulau Tekong as a platoon commander for the obese platoon to inspire and to train these young men, so that they can also acquire the same level of physical fitness. So they go through a progressive training regime which allows them to build up their fitness slowly.

It is also in the interest of the SAF that we do so because we want as many of our people as possible to serve in combat duties. And by building them up progressively in this way, we get more of them to serve as physically fit and combat fit servicemen.

Sir, I thank the Minister for being very frank in his disclosure in Parliament. I think the key task ahead of us now is to restore confidence of Singaporeans in national service, and I hope that he will conduct the investigation in as transparent a manner as possible. On the other hand, having heard the comment on compensation, I would like to find out from the Minister whether the investigation will be conducted under military jurisdiction or will it be open proceedings in a civil court? For instance, will the findings of the committee be published? If the family decides to take action in the civil court, will the Minister be prepared to release the findings to the public?

Sir, we have taken the position that the Committee of Inquiry reports are not released, because they deal largely with internal matters in the way that the Ministry or the SAF works. Also, the rules of evidence and so forth at the Committee of Inquiry are not the same as those in a court of law. The purpose of the Committee of Inquiry is to discover as many things as possible so that we can set them right. This is a different purpose than in a court of law, which is to find whether a person is in breach of the law. We have provided summaries of the findings of the Committee of Inquiry and we will also do so in this case.

In this case, the investigations have been undertaken by the Criminal Investigation Department of the Police. There will also be a Coroner's inquiry. The Coroner's inquiry will be held in open court. And if the cases do come to court, they will be held in open court. There is no reason to do otherwise.

Where no criminal offence has been revealed and the Attorney-General may decide not to proceed with criminal charges against individuals, it is still possible that the SAF may proceed with military charges where we feel that the serviceman may not have discharged his duties in a way which is required under the SAF Act, but which, of itself, does not constitute something which is criminally chargeable in the civil court.

Sir, as I understand it, there is a safety officer on site at the training scene. Will the Minister reveal the scope of the role and responsibility of these safety officers and their effectiveness on the site itself? I would also like to reiterate the Member's request for an independent safety officer, ie, someone who is not within the command of the unit.

I have already responded on the matter of the independent safety officer. The issue at hand is really whether the safety officer carries out his duties. In this case, I think the safety officer would be found wanting in his duties. If he had carried out his duties properly, many of these things would have been stopped.

Mr Speaker, Sir, it is quite disturbing to be told that there are such serious violations of rules within an organisation like the SAF. With regard to detecting violations, I wonder whether this is the first time such a violation has been detected. And by virtue of the fact that a death had occurred, were there any indicators that the SAF use to detect other possible incidences of violations, perhaps excessive numbers of servicemen requiring medical attention, not necessarily death as in this instance?

The Minister also mentioned about the ad hoc inspection processess that are in place. Can he describe a little bit more how these inspections take place? Because I wonder whether this particular training programme of the commandos has ever been subjected to such ad hoc inspections. If it has, when was the last time it has been inspected such that any violations before this could have been detected? Can the Minister also assure us that, at this point in time, there are no other similar violations in the other units in the SAF?

Sir, we have a comprehensive system of data collection. In medical cases, we know, for example, that several years ago, many of our soldiers were suffering from problems with their joints, because they were being subjected to very heavy physical training very early in their recruit training and also in their OCS training. And this was something which was not good for the soldiers and not good for the SAF, because we were losing soldiers because of medical downgrading for no good reasons. As a result of studies like this, we redesigned the courses to make them more progressive. So there was more walking with load rather than jumping, running and pounding in the early part of the course to build up the strength of the soldiers, their joints and their muscles/tendons. So there are data collection methods like this.

I do not have the information on when the last time the GSI inspected this particular unit. As I said, this is the 80th course. We have had 6,000 come through this course.

On whether there are other violations, the SAF is currently going through a complete relook of everything to make sure that procedures are correct and they are properly being adhered to. And that, Mr Speaker, Sir, is one of the reasons why I called in the 400 commanders this morning to tell them about this incident, to tell them how it happened and to tell them that they had better make sure that this does not happen in their commands.

Mr Speaker, Sir, in the case of the asphyxiation, it was just not involving Serjeant Hu. We had six other cases. My question to the Minister is whether at any point of time, there have been complaints received from either the late Serjeant Hu or in the case of the other six cases that they were receiving such kind of treatment. If there have been no such complaints, does it suggest that the trainees themselves are not aware of what is permitted and what is not permitted? And if they are not aware, they would therefore not be in a position to make any form of complaint if there is a violation. Would the Minister then consider also in the case of training, such as combat training, to keep the trainees informed of what sort of training is involved and permitted?

Sir, we have not received any complaints from the members of this course with regard to the training that they had received, certainly not prior to the date of the incident. I think Mdm Halimah has a good point about trainees also knowing what is happening. A good lesson should be conducted with the objectives and so on in mind. But one of the things that we do in training our soldiers is to have to deal with surprises on the battle field. So there is a limit to whether we can tell them everything that is going to happen during the course of the training. Otherwise, the objective of the training may not be achieved.

Mr Speaker, Sir, the Minister is right in that during army training, the safety aspects are taken care of by the Safety Officers, and we have a Commander to take care of all the training courses. I had gone through two-and-a-half years of National Service. I know all these have been taken care of by the SAF. But sometimes the training is done out of the camp. The servicemen go for jungle training and the troop may be a bit far away from the Safety Officers and the medic. I do not know whether the SAF can consider the provision of special equipment for individual soldiers so that in case they encounter any difficulty during the training, they can press a button to call for SOS.

Sir, we can consider such a technical solution. We have a sort of manual solution, if you like, today, ie, a buddy system which is when the soldiers go into camp, they get a buddy and they are supposed to look after each other. So we do not have the technical solution today. We have a "human" or manual solution.

Sir, does the Minister agree that to restore public confidence, the transparency of the SAF is important in order for people to understand how their children are being taken care of during the training? I also wonder whether it would be helpful if the trainees, especially the recruits, know what are their rights, what is required of them when they undergo certain courses, what are the safety precautions that should be in place, and what they are required to do or what they should not be asked to do. Because I think many of the people who have gone through National Service all know that they kena tekan. The point is that even when they are being ill-treated, they may not know that they are being ill-treated, because they do not know what are their rights and what the instructor can or cannot do to them. So I think it would be useful to make known to the recruits or trainees what are their rights and what the instructors and officers should or should not do to them.

Sir, Mr Low brings up a good point. In fact, we have received feedback of this kind before. And that is the reason why we produced the Recruits' Handbook. This particular edition [indicating] is the 16th Edition, December 2002. And not only have we done that, we have produced a handbook for the parents. So not only do the recruits know what is allowed and what is not allowed, the parents also know. This particular one is also the 16th Edition, "My Son, The NS Man", January 2003. Inside these booklets - this particular version that I have is in both English and Chinese - some of the things are listed: for example, points to take note before you take the NAPFA test; what the BMT programme consists of, what the requirements are for the various standards in the IPPT, advice on adjustments to community living (because we have many small families now and they are not used to living with each other), even things from camp cleanliness and maintenance to personal appearance.

There is, in fact, a section on what is allowed and what is not allowed in terms of the types of unauthorised punishments. There is a section, on page 37, on the types of punishments which are authorised. And there is, in fact, a list of unauthorised punishments on page 37, and these include things like change parade and running through an obstacle course outside training hours, and so on. So, in fact, it is quite complete.

Hon. Members, I sense that the questions repeat themselves in different forms. So, if I may suggest, make your questions specific and short, because we are taking a lot of time on them.

Sir, the Minister has not answered my question on transparency of the SAF.

Sorry, Sir, maybe I misunderstood his question. But I thought the Member's question on transparency was that if we provided this information, then it would be helpful, and that would be the transparency that the Member was asking for. And I just mentioned to him that we have transparently provided this information. I am not quite sure exactly what transparency he is talking about.

Sir, with regard to NSman Chew Heng Huat, Andrew, the Minister mentioned that he was obese. So we know that he was probably not very active in sports in school and that he died while doing his proficiency test. He was only short of 30 metres to the finishing line. My question is whether or not for this kind of case, the four weeks' training may not be long enough. Would he look at the period of training? Also, the exercise or the tasks in the proficiency test may be too tough for this type of NS boys. So can he review the tasks in the proficiency test to make them not too difficult for these boys?

Mr Chiam, I thought you have gone over that ground. But I would leave RAdm Teo to reply to that one.

I am referring to the proficiency test.

Sir, the purpose of the categorisation test is to assess the fitness of the individual so that we can design a programme in the next phase of his BMT to suit his physical proficiency standards, and this is after three weeks of physical preparation after he is enlisted. But I would ask the Army to look again to see whether there are any areas in the suggestions which Mr Chiam has brought forward which are worth implementing.

May I ask the Minister whether our NSmen receive adequate medical attention and rest when they report sick? Are there too many NSmen labelled as malingerers when they report sick? Have there been more mishaps occurring when NSmen are feeling unwell? And have there been surveys and studies done to ascertain the correlation between feeling unwell and accidents during training?

Sir, I am not aware that we have done any correlation studies between feeling unwell and accidents during training. But the basic philosophy which the SAF doctors practise, and this is something which is a requirement for them as doctors, is to treat those who come to see them, first, as patients, then as soldiers. So this is the priority and the attention which they give to those SAF personnel who come to see them.

I will allow for three last questions - Mr Zainul Abidin, Ms Braema Mathi and Mr Tan Soo Khoon.

Thank you, Mr Speaker, Sir. I have one question. But before that, if you allow me, Sir, to say this. As a father of three sons who had done National Service, and I am sure practically every household has a son who is doing National Service, it must have been quite frightening to learn that such unauthorised training practices have taken place. Parents, therefore, would expect higher discipline and adherence to authorised training. I would like to see MINDEF reassuring the public on that score. On that note, Sir, I am personally reassured to hear that MINDEF take the gravest view of the matter.

Your question?

The question that I would like to ask, Sir, is very specific. On the question of the time lapse which the Minister explained just now, between 1645 hours when SG Hu collapsed and the time he reached SGH at 1752 hours, I wonder whether anything could be done to improve on it, for example, Changi Hospital could have been used instead of SGH for the purpose. And what about the medical facilities at Pulau Tekong itself? Could they be improved?

Sir, the timeframe for evacuation in the case of SG Hu was within the norms which have been designed and found to be suitable by the medical professionals in the SAF. A helicopter was used to evacuate SG Hu from Pulau Tekong to Singapore General Hospital. You can imagine the response time was quite fast - to be able to get a helicopter to Pulau Tekong and from Pulau Tekong to Singapore General Hospital.

There are a number of phases in the medical treatment of SG Hu. The first phase was by the medic on the spot at the site. Then, he was evacuated to Pulau Tekong Medical Centre where he was again given medical treatment. Along the way to Pulau Tekong Medical Centre, he was continually treated and also during the evacuation from Pulau Tekong Medical Centre to Singapore General Hospital.

Sir, one must not look just at the timing but also the circumstances of any particular case. Because there will be occasions when the casualty may not be able to be moved for medical reasons and may have to be stabilised on the spot first before being moved, say, from the location where the incident occurred to the next echelon of medical facility, and then again he may have to undergo further stabilisation there before being transported again. This is a judgment, I think, that is best made by the medical professionals on the spot, given the particular case at hand and medical and evacuation facilities that are available.

Thank you, Mr Speaker, Sir. I thought you are not going to let me speak for half the population.

Questions, please.

Yes. I would like to thank the Minister for the transparency. Although we have discussed this issue, I have got three questions. He spoke about 24 deaths. I think it would be reassuring to the public if the lessons learned from the other incidents can be shared with the public, so that we know that there is constant improvement within the SAF where NSmen are concerned.

The second question is with regard to counselling. To what extent will anonymity be preserved because there is a hierarchical system within the SAF, and NSmen who are young would look below to complain about their superiors?

Thirdly, for errant NSmen, what is the system through which they can seek some kind of redress? And what is the system here that we have where you can complain against your superior and seek some kind of justice for any form of misdemeanors?

Lastly, the Minister spoke about the wonderful booklets that have been produced. I would love to know whether they are in different languages. Also for some of them, who are not very proficient with their languages, will there be some kind of oral presentation to them?

Sir, the booklets are in different languages. This particular one that I have here, "My Son, The NS Man", is in both English and Chinese. I imagine they are in other languages as well. As I mentioned earlier, in the Recruits' Handbook, if a NSman has a complaint and he is unable to write his complaint down, we will actually help him to write his complaint down, so that he can seek appropriate redress.

For counselling, anonymity is preserved. The counselling hotline, the number that I indicated just now (1800 2780022), is available, and this is anonymous. Matters discussed during counselling sessions are kept strictly confidential, and I am reading from the Recruits' Handbook, page 30. I have already discussed earlier in response to another Member's question about how

an NSman can raise issues if he feels that he is seeking redress. There is a system through the command chain and there is also a system outside the command chain where he can approach his Member of Parliament, but there are certain rules that have to be observed.

Sir, every time we have an incident or an accident, every time we lose a soldier, it is a painful experience for us because it is one of our boys. And we take it very seriously and we look for ways of improving what we do. And the Training Safety Regulations are paid for with the blood and, sometimes, the lives of our soldiers. That is why the Training Safety Regulations are written that way and that is why the Training Safety Regulations have to be followed. And this is exactly what I told my Commanders this morning.

We have to keep on improving. We have to keep on learning. And I can assure Members that we will continue to do our best to make sure that our men are trained well and that they are trained safely.

Mr Tan Soo Khoon, last question.

Mr Speaker, Sir, much has been said in the past 1 1/2 hours about how servicemen can seek redress for their grievances. I am glad that the Minister has mentioned that one of the rules is for the aggrieved servicemen to see their Members of Parliament. Many of us here have, at some time or other, servicemen coming to us with complaints about ill-treatment. And MPs too have to go through the proper channel in bringing up the complaints to the higher authority. But I notice that, in some instances, when I informed the aggrieved persons, or even the parents of the aggrieved servicemen, of how the complaint is to be raised, they tell me not to take it any further for fear of reprisals by their superior officers or colleagues against whom the complaint is being made. Sir, how can we assure the servicemen with complaints that all their grievances will be investigated in a very fair and thorough way, in a transparent way, and without any fear or favour?

I think the answer which the Minister just gave to Mdm Halimah on whether there were any complaints made about the unauthorised training in the first case is very important. Because I wonder if this is the case of the unauthorised training happening for quite a long time and nobody dared to make a complaint and everyone thought that it might be better just to look the other way. They did not want to have action taken against them because they feared reprisals from their colleagues or superior officers.

The point that Mr Tan Soo Khoon raises is well taken, and I have addressed that to some extent. It is important that we have a culture of openness in the SAF, particularly with regard to breaches of safety regulations. That is very important so that these safety breaches are well and quickly reported, and we can take action to redress them. If there are complaints about mistreatment by superior officers, in order for the investigation to proceed and in order to be fair also to the superior officers who have heavy responsibilities to discharge, the person who raises the complaint has to follow certain rules and therefore we will have to be able to know certain details before we can proceed. Otherwise, it will be most unfair also to the officers and warrant officers. But, let us say, if we receive a lot of feedback about a particular unit or particular types of activities, even though they are anonymous and we may not take action on specific cases which are anonymous, this will set alarm bells off, and we will have a look at what is going on with a particular activity or a particular unit. As I said, we also have an inspectorate, and so on, to go around and do surprise checks.

Sir, I would like to thank Members of this House for frankly and openly providing their views on this very serious issue. MINDEF will look into every suggestion and every point raised and we will act on them. This is one of the most serious incidents, if not the most serious incident, that we have had in the SAF of this kind in its history. The SAF will work hard to ensure that we maintain the trust of this House, maintain the trust of parents, maintain the trust of Singaporeans. And, at the same time, we will work hard to make sure that we continue to have a tough, capable SAF to defend Singapore and Singaporeans.

Sir, I thank you and I would like to thank Members of the House as well.

"to amend the Insurance Act (Chapter 142 of the 2002 Revised Edition)",

presented by the Deputy Prime Minister and Minister for Finance (Mr Lee Hsien Loong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Monetary Authority of Singapore Act (Chapter 186 of the 1999 Revised Edition) and to make related and consequential amendments to certain other written laws",

presented by Mr Lee Hsien Loong; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Computer Misuse Act (Chapter 50A of the 1998 Revised Edition)",

presented by the Minister for Home Affairs (Mr Wong Kan Seng); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to give effect to the provisions of the Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation done in Rome on 10th March 1988 and for purposes connected therewith, and to make consequential amendments to the Hijacking of Aircraft and Protection of Aircraft and International Airports Act (Chapter 124 of the 1997 Revised Edition) and the Supreme Court of Judicature Act (Chapter 322 of the 1999 Revised Edition)",

presented by the Minister for Transport (Mr Yeo Cheow Tong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to protect consumers against unfair practices and for matters connected therewith",

presented by the Minister of State for Trade and Industry (Dr Vivian Balakrishnan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Regulation of Imports and Exports Act (Chapter 272A of the 1996 Revised Edition)",

presented by Dr Vivian Balakrishnan; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Urban Redevelopment Authority Act (Chapter 340 of the 1990 Revised Edition)",

presented by the Minister for National Development (Mr Mah Bow Tan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Planning Act (Chapter 232 of the 1998 Revised Edition) and to make consequential amendments to certain other written laws",

recommendation of President signified; presented by Mr Mah Bow Tan; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Income Tax Act (Chapter 134 of the 2001 Revised Edition)",

recommendation of President signified; presented by the Second Minister for Finance (Mr Lim Hng Kiang); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend certain statutes of the Republic of Singapore",

recommendation of President signified; presented by Mr Lim Hng Kiang; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Central Provident Fund Act (Chapter 36 of the 2001 Revised Edition)",

presented by the Acting Minister for Manpower (Dr Ng Eng Hen); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to establish and incorporate the Singapore Examinations and Assessment Board, to provide for its functions, duties and powers, and for matters connected therewith",

presented by the Acting Minister for Education (Mr Tharman Shanmugaratnam); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 5.05 pm.

Sitting accordingly suspended

at 4.42 pm until 5.05 pm.

Sitting resumed at 5.05 pm

Order for Second Reading read.

Mdm Deputy Speaker, I beg to move, "That the Bill be now read a Second time."

Madam, this Bill repeals the Martial Arts Instruction Act.

Ministries carry out regular reviews of legislation under their purview to assess their continued relevance and need for amendment. The Ministry of Home Affairs has decided that the Martial Arts Instruction Act has outlived its usefulness. Its core objectives can be met through other pieces of legislation.

Before the Martial Arts Instruction Act was enacted, martial arts associations proliferated in Singapore. At the end of 1973, there were 128 martial arts organisations registered in Singapore, compared to only 32 in 1963. There were an estimated 13,000 to 18,000 martial arts trainees in the early 70s. This rapid growth can be traced to the popularisation of martial arts by Chinese films which glorified martial arts.

At that time, there was little control over martial arts associations. Any instructor who professed knowledge of any martial art could organise a class and apply to the Registrar of Societies or the Registrar of Companies and Businesses to be registered. Both these registries had no means then of checking whether an instructor was qualified to teach a skill or to whom he should impart his skill. Similarly, instructors would readily accept anyone as a student, with little concern about his background and his purpose in acquiring the art, so long as he was prepared to pay the fee required for receiving such training. As a result, many martial arts organisations were formed or were taken over by secret societies and other criminal elements to further their own ends. Martial arts skills were used in gang clashes and to intimidate innocent victims to submit to their demands. These problems led to the enactment of the Martial Arts Instruction Act in 1974 to regulate the setting up of martial arts associations, and register martial arts instructors and trainees.

Madam, the situation today has improved tremendously. Over the years, through tough enforcement, intelligence and strict laws, Police has effectively brought the secret society situation in Singapore under control. Activities involving territorial disputes and running of protection rackets by gangs which were predominant in the 60s and 70s, are very minimal now. The number of secret society members has dwindled from a high of some 10,000 during the 60s to only about 2,000 today. In fact, many of these 2,000 are actually members of loose affiliations and street gangs rather than hardcore secret society members. Because of vigilant action by Police to control and suppress secret societies, most ex-secret society members now keep a low profile and have stayed away from crime.

More importantly, since 1987, no trainee has been found to have links with secret societies. That is why since 1999, Police has stopped requiring martial arts trainees to be registered. In addition, very few martial arts instructors have been found to have links with secret societies. For example, between 1998 and 2002, only three out of 327 registered martial arts instructors were found to have secret society links. Concerns over secret society members and criminal elements using martial arts training for illegal activities or to pursue undesirable ends is therefore now very much reduced. The Martial Arts Instruction Act has outlived its usefulness and we are therefore repealing it.

But let me assure the House that important checks against secret society activities are in place. These include legislation such as the Penal Code and the Criminal Law (Temporary Provisions) Act which provide adequate enforcement powers against secret societies. In particular, the Criminal Law (Temporary Provisions) Act has been a very effective tool against secret society elements, especially when witnesses are not willing to testify in court against secret society members for fear of reprisal. Moreover, martial arts instructors generally operate out of premises belonging to associations, tertiary institutions, community centres and clubs and residents' committees which require their martial arts instructors to be registered with their respective martial arts associations. Hence, martial arts associations can also play a role.

On its part, Police will continue to keep a tight lid on secret societies, in particular youth involvement in secret societies and gangs. Public education programmes in the form of school talks to high-risk groups, prison visits for wayward youths and their parents, and the Streetwise Programme to engage youths who have steered towards crime, will continue.

Madam, the Martial Arts Instruction Act also regulates the setting up of martial arts associations. The Act requires the Controller of Martial Arts to register martial arts associations. In practice, martial arts associations are registered as societies under the Societies Act, businesses under the Business Registration Act, or companies under the Companies Act. Currently, the Registrar of Societies consults the Police before registering any martial arts association. This screening process will continue when the Martial Arts Instruction Act is repealed. Similarly, the Registrar of Companies and Businesses will consult Police on applications to register any company or business which lists martial arts as its main activities.

Mdm Deputy Speaker, the Act has served out its purpose. There is now no longer a need for an Act to regulate martial arts associations, nor to register martial arts instructors and trainees. The Act should be repealed.

Madam, I beg to move.

Question proposed.

Resolved,

That the proceedings on the business set down on the Order Paper for today be exempted at this day’s sitting from the provisions of Standing Order No. 1. – [Mr Wong Kan Seng].

Debate resumed.

Mdm Deputy Speaker, I wish to declare my interest as the Vice-President of the Singapore National Wushu Federation.

Madam, I rise in support of the Bill. The Martial Arts Instruction Act was implemented in 1974 to provide a system of control of martial arts associations, instructors and trainees who provide or receive instruction in martial arts. Over the years, the Act has served its purpose to ensure that martial arts is practised in an open and transparent environment, taking care of the interests of both the martial arts practitioners and the general public.

The Ministry of Home Affairs has also worked closely with like-minded organisations, such as the Singapore National Wushu Federation, People's Association and Singapore Sports Council, to oversee the developments of martial arts organisations and activities in Singapore. This partnership has indeed ensured that martial arts are practised as a form of self-defence and health exercise instead of being abused for other unlawful purposes.

While I understand that there are existing legislation, such as the Penal Code, Companies or Societies Acts which can control the activities of martial arts organisations and activities, there are concerns that the repeal of the Act will encourage a proliferation of unregistered martial arts groups in Singapore. I hope the Senior Minister of State can give assurance to this House that the repeal will not result in an uncontrollable increase of unregistered martial arts groups engaging in unlawful activities. Can the Minister also update the House on the number of unlawful martial arts associations, instructors or trainees who have been penalised under the Act over the last 29 years?

Madam, there are three areas of concern which I would like to highlight regarding the repeal of the Act.

First, protection of public interest. There is always this possibility that martial arts practitioners may abuse their skills to perform unlawful activities. This is especially so if they have bad records or conduct. This risk is higher if the martial arts practitioner has ill intentions to exploit his or her martial arts skills to abuse or bully the general public. With the repeal of the Act, there is a need to further increase public awareness on the penalty for abusing martial arts skills, and more crime prevention public education programmes must be conducted to safeguard the interest of the general public.

Madam, section 19 of the Martial Arts Instruction Act empowers the Controller of Martial Arts to prohibit persons to be officers of a martial arts association by reasons of a conviction of an offence or otherwise. With the repeal, any person

can now set up a martial arts organisation irrespective of his or her background or records. May I ask the Minister, what measures are taken by the Ministry to ensure that persons with bad records do not set up a martial arts school or association in Singapore. May I also ask the Minister whether persons who are classified as "unfit" in the Act would now be allowed to set up a martial arts association or recruit trainees.

Second, promotion of martial arts. In Singapore, martial arts have been receiving more recognition as a form of sports for healthy lifestyle. Due to the control, triad activities have reduced drastically. As a result, more parents are willing to encourage their children to learn martial arts. Some schools have also set up martial arts groups as part of their co-curricular activities. These are good signs of confidence which parents have shown towards the learning of martial arts.

I understand that the promotion of martial arts does not come under the purview of the Ministry of Home Affairs. But the confidence which the Martial Arts Instruction Act had given to the community has a direct impact on the development of martial arts in Singapore. Although wushu has not been recognised as a core sports by the Singapore Sports Council, it has good potential to win more medals for Singapore in world-class sports events. The repeal of the Act may cause a setback to the promotion of martial arts in Singapore. I hope the Minister can enlighten the House on measures in place, which can maintain the confidence of parents in sending their children to learn martial arts.

Third, loss of jobs. Madam, the repeal of the Act would result in some job losses. First, there would be no appointments for the Controller and Assistant Controllers of Martial Arts. The present team of administrators for the Act would also be made redundant. Furthermore, as there is no legislative compliance required, existing martial arts associations may cut their administrative staff, resulting in retrenchment. To-date, there are over 300 martial arts associations in Singapore employing many administrative and support staff. The repeal of the Act would affect the jobs of these staff.

If any association, firm or individual can give martial arts instructions, there would be many "SME" martial arts associations, including some "OMO" or one man show martial arts schools. The growth of these small set-ups may affect the student intake of some existing martial arts associations, thus affecting their businesses. In addition, there would be more intense competition among martial arts schools for students and businesses. This may inadvertently cause unhealthy tensions or rivalry among martial arts organisations. Furthermore, the repeal would facilitate the break-up of martial arts groups or instructors into various factions. This could spark off gang fights and public disorder. May I ask the Minister what measures are taken to prevent this from happening.

Madam, I support the Bill.

(In Mandarin): Mdm Deputy Speaker, I must declare my interest as the Vice-President of the Singapore National Wushu Federation.

Mdm Deputy Speaker, the Martial Arts Instruction Act was enacted in 1974. Over the years, as guided by this Act, the practice of martial arts in Singapore has been well regulated and has indeed flourished. It has now become an item in international sporting events such as the Asian Games and the SEA games. China has also successfully campaigned for martial arts to be included as an item in the Beijing Olympics Games 2008.

Nowadays, many schools in Singapore have included martial arts as a co-curricular activity. More than 3,000 students are learning martial arts in the schools. At grassroots level, martial arts are also being promoted in the community centres. Many courses are being offered, with tai chi quan and nan quan being the most popular. The practice of martial arts is readily becoming a part of our healthy lifestyle.

Recently, we sent a team of wushu practitioners to Beijing for an international Wushu Competition, and they returned with a remarkable haul of one gold, one silver and one bronze medals, competing with world class competitors from all over the world. This is because we have a good system of regulating martial arts in Singapore. We have good coaches and instructors and they produce good results.

Today, we are repealing the Martial Arts Instruction Act. With the repeal of this Act, would there be an authority to regulate the martial arts instructors in Singapore? If the instructors are not organised in a systematic manner, there would be confusion and chaos. I would like to ask the Minister whether there would be some better organisations to take over the task from the CID, so that our martial arts instructors would be regulated so as to produce world class practitioners who can be world-beaters and win more medals for Singapore at international meets.

The Singapore National Wushu Federation can take on this task. I hope the Ministry of Home Affairs would delegate this job of registering the martial arts instructors to the Singapore National Wushu Association. With such a systematic arrangement in place, we would be able to promote martial arts and strive to attain even higher standards in this art. Without a proper system in place, I am afraid that the individual instructors and coaches would start their own schools at random, and it would be very difficult to control them in future.

In this connection, what about the lion-dance and dragon-dance troupes? With the repeal of the Act, will the present lot of lion-dance and dragon-dance instructors be de-registered too?

Madam, thank you for allowing me to join in this debate.

Madam, I rise in support of the Bill. In my view, there was no necessity to enact the Act in 1974 in the first place. At that time, there was already in place section 55 of the Criminal Law (Temporary Provisions) Act which allowed the Police to arrest any person suspected of secret society or criminal activities and detained them for up to a period of two years at a stretch without the necessity of bringing them to a court of law. Section 55 was dreaded by those in the underworld. All secret society members and criminal elements really feared that provision of the law. As a result, they all had to lie low and behave themselves and did not cause trouble in public. There were no reports of widespread collection of protection money and gang fights were few and far between. The criminal elements and secret society members were already well-controlled by the 1970s.

Presently, the said section 55, in its amended form, is still in our statute books and can be used against secret society members and criminal elements. These days, shopkeepers and the general citizenry are more educated. They understand how the system works and have confidence in the Police to take care of any secret society members or criminal elements who want to prey on them. I agree with the Minister that bad elements in our society are much under control. We can repeal the Martial Arts Instruction Act readily.

First of all, I would like to thank all the speakers who have spoken in support of the repealing of the Bill. I am also glad to see that Mr Chiam See Tong attests to the effectiveness of the Criminal Law (Temporary Provisions) Act and the ability of the Police to curb the situation of secret societies.

But I think Mr Chiam came late just now into the Chamber when I was making my Second Reading speech, where at the beginning I stated the background. The situation in 1970s was vastly different from the situation today. In fact, I do not know whether he did some research, because if he had looked at the speech of the then Home Affairs Minister, Mr Chua Sian Chin in 1973, when he moved the Second Reading of this Bill in Parliament, he, in fact, cited figures to show that secret society elements had penetrated into quite a number of martial arts societies. Just to quote a section of it. He said, "In a recent study on some 115 pluralistic associations in Singapore, it was found that 33 of these have been penetrated by secret society elements and 10 of them have elements with adverse security records." Hence, it was very clear to the Government at that time that not only did we need enforcement measures, of which, of course, the CLTPA was a good instrument - but that is downstream measure, tackling the problem when the horse has bolted - the situation was serious enough to control it upstream by registration and control. The point is that the PAP Government takes a lot of care in deciding whether or not to introduce legislation and, indeed, is also very open and takes a lot of care in deciding whether or not to repeal legislation. That is why after careful consideration, we feel that we can repeal the Martial Arts Instruction Act.

Hence, as Mr Ang has said, in fact, the situation today is vastly different. Martial arts, including wushu, of which both Dr Teo and Mr Ang are the National Wushu Association's Vice-Presidents, have flourished. Many Singaporeans and residents living in Singapore take up martial arts to learn self-defence and improve their physique and health. And, in the process, those of us who have gone to some of these functions, as Guests-of-Honour to officiate at the testing and grading ceremonies or are in touch with the teachers would know, the trainees also imbibe positive values, such as self-control, discipline and respect for authority. I know, for example, in Nee Soon East, I have got many trainees and the teacher is called master. So there are a lot of values imbibed, besides the skills being imparted. But the point really is, statistics also bear out the fact that secret society links to the martial arts scene is no longer a consideration and, hence, the repeal.

But having said this, let me assure Dr Teo and Mr Ang, in particular Dr Teo who made this point, that Police's involvement with martial arts groups will not be reduced to zero. Indeed, any group that wishes to be registered as a society or business to promote martial arts would have its pro tem members or office bearers screened. Hence, this control will continue.

Any registered group thereafter which comes to adverse notice or commit any offence will be dealt with in accordance with the law. Like I have said, we have sufficient legislation to do that, whether it is under the Societies Act, Penal Code or the CLTPA.

On the flip side, and this is also a concern that Dr Teo has raised, anyone who purports to, on his own, without registering with the ROS or the Registry of Companies and Businesses, conduct martial arts training may run foul of the law. Even though he will not need to register with the Martial Arts Control Unit (MACU), he is likely to be in breach of the Societies Act, eg, if his group has nine or more trainees, or the Business Registration Act or Companies Act for running a business. But the real point is that, in any case, with today's discerning consumers, for any martial arts instructor to attract students to his class, I am sure his trainees, and if they are young trainees, their parents, will want to know his background and standing with the parent association. So, I do not see unregistered martial arts instructors or groups proliferating after the repeal of the MAIA, let alone unregistered groups committing unlawful acts.

Dr Teo asked for the number of prosecutions under the Act over the last 29 years. Madam, in fact, there were no prosecutions.

Dr Teo and Mr Ang are concerned about the maintenance of standards of training of martial arts instruction after the Act has been repealed. Let me say quite clearly at the outset that Police has never professed to have the competence nor is it within its functions to assess the standard and quality of instruction of martial arts. This is the case even now with MACU in existence. I believe that, currently, it is the various parent associations which certify the standard of instructors and who set the grading systems. In addition, I understand that national sports associations (NSAs), such as the National Wushu Federation, which incidentally has 160 affiliated groups under it, and other martial arts NSAs, such as the Singapore Karatedo Federation or Singapore Taekwondo Federation, maintain a register of certified instructors compiled from the lists kept by their affiliate members.

Let me say that the NSAs, in fact, can play an important role in promoting sporting excellence in the martial arts, and this should continue. Because besides the associations that I have mentioned, we have got the Singapore Judo Federation, Singapore Silat Federation and Singapore Kendo Club. So there are really six NSAs in the martial arts. And I would suggest that they should see the repeal of the Martial Arts Instruction Act as an opportunity to raise their own profile amongst their affiliate organisations, instructors, trainees and parents. Part of this goal, I would suggest, would be, as Dr Teo points out, to ensure that unhealthy rivalry does not surface. As the Government, in a sense, leaves this area, it creates space for VWOs and NSAs to play an enhanced role. So, I would encourage NSAs to take up this challenge.

Of course, on its part, Police will continue to monitor the secret societies situation - I think Dr Teo mentioned gang clashes - that is squarely within the remit and purview of the Police. Definitely all these years, as Mr Chiam himself has said, we have worked on it very hard through a combination of various measures, such as deterrence, enforcement, rehabilitation, prevention and education, in particular, targetting youths in gang who fight. There is a whole range of measures in place. The Police will certainly focus its attention where it should in these areas.

Dr Teo and Mr Ang are keen to promote martial arts in Singapore, especially wushu. They ask what MHA can do. Let me just say that the repeal of the MAIA is in itself an assurance to parents that the learning of martial arts in today's Singapore, unlike in the days of old, can take place in a setting where sports considerations are paramount. They no longer need to fear that their children will be influenced by secret society elements through these martial arts classes. That in itself is something which MHA has done. Like I have said, we will continue to keep a tight lid on secret society activities in Singapore.

It is really up to the NSAs to think what else they can do, whether it is upgrading training, or in starting a website to showcase its achievements to parents and trainees. I am sure the ingenuity of the likes of Mr Ang and Dr Teo will surface many more suggestions. And I know that this is happening because my check with the ground shows, for example, that the Singapore Karate Association has worked very closely with the Singapore Sports Council to produce a programme called the National Coaching Accreditation Programme (NCAP), which sets out what instructors ought to know when teaching young students including first aid and other things, besides just the core skills. I think this is wonderful. So I do not think, as Mr Ang suggests, that MHA should be the authorising body to delegate the responsibility of registering instructors to any NSA.

Let me wrap up. A minor point that Dr Teo raises is that the repeal of the Martial Arts Instruction Act may lead to loss of jobs. In fact, it would not, not in MACU, in any case, because police officers have been doubling up all these years. There is no dedicated MACU unit. So the Police works very hard. And I am sure even in the individual associations, in fact, they would probably welcome this freeing up and whatever staff, energy and time that may be released, I am sure can be very fruitfully used.

I want to check whether the lion dance troupe will be affected by the Bill.

I think lion dance troupes are affiliate members of his NSA. In that sense, they are covered by the Act.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Assoc. Prof. Ho Peng Kee].

Bill considered in Committee; reported without amendment; read a Third time and passed.

Order for Second Reading read.

5.38 pm

Mdm Deputy Speaker, I beg to move, "That the Bill be now read a Second time."

The Bill will amend the Goods and Services Tax Act to give legislative effect to the following four measures:

to zero-rate trust administration services provided by a trust company to a foreign trust of which it is not the trustee;

to provide for the Approved Third Party Logistics Company Scheme;

to make Government goods and non-regulatory services, which can be potentially provided by the private sector, taxable; and

to remove the requirement for GST-registered businesses to seek the Comptroller's prior approval for electronic invoicing.

Madam, I shall now explain the amendments in the Bill that relate to changes announced in Budget 2003.

The first change is the zero-rating of trust administration services. The zero-rating provision in respect of trustee services shall be extended to services provided by a Singapore trust company to a foreign trust of which it is not the trustee. This will increase the competitiveness of Singapore trust companies serving as management and administration hubs for offshore trusts. Clause 4 amends section 21 of the Act such that trust administration services provided to a foreign trust by a person other than the actual trustee can be zero-rated.

The first change is the Approved Third Party Logistics Company Scheme. Third party logistics companies generally undertake vendor-managed inventory operations where they import and hold goods belonging to foreign principals for local delivery.

A new scheme whereby qualifying companies can import goods belonging to them or foreign principals without payment of GST shall be introduced. Under this scheme, qualifying companies can also move goods to their customers who are under the Major Exporter Scheme or other qualifying companies under the same scheme, without charging GST. Clause 5 re-enacts section 27 of the Act to allow the Minister to make regulations to give effect to the Approved Third Party Logistics Company Scheme.

The third change is making Government goods and non-regulatory services taxable. Under the current legislation, supplies provided by the Government are only subject to GST if there are similar supplies made by the private sector. However, the taxability of supplies should be based on the nature of supplies rather than the legal identity of the suppliers. To rationalise this treatment, GST will be levied on all Government goods and non-regulatory services that can be potentially provided by the private sector, whether or not it is actually already being provided by the private sector.

Hence, clause 6 amends section 28 of the Act to levy GST on all non-regulatory Government supplies, except supplies the Minister may prescribe. The Government will not increase any fees and charges on account of the change in GST treatment of Government supplies. Instead, the price of the services provided at the time this amendment comes into effect will be deemed as being inclusive of the GST.

The fourth change is the removal of the requirement to seek Comptroller's approval for electronic invoicing. Currently, GST-registered businesses that wish to issue, transmit or receive tax invoices electronically are required under the Act to seek prior approval from the Comptroller. Clause 7 amends section 43 of the Act to remove the requirement to seek the Comptroller's prior approval for electronic invoicing. This will ease compliance for businesses.

Madam, I beg to move.

Question proposed.

Madam, first, may I be allowed to make comments on the GST? In principle, I do not support the GST in these difficult economic times. Despite the various rebates given to HDB flat dwellers, GST is still causing unnecessary hardship on the people. I support those who have called for the delay of the additional increase of 1% in addition to the 4% GST by at least six months from 1st January 2004. The delay will go a long way to help the poor tide over the current economic difficulties, and also encourage spending which may help to bring some life to the slow retail businesses.

We all know that GST increases prices, in particular, in Singapore today. We are concerned with any increase in retail prices. Retailers are crying out for help, especially those in the HDB heartlands. As politicians, we should do something to help them. What we can do is to try to stop the further increase of GST. I therefore call on the Government to delay the implementation of the 1% on GST which takes effect from 1st January next year.

As regards the Bill itself, I would like to comment only on clause 5 in respect of section 27 which empowers the Minister to make regulations to allow certain taxable persons in the cause of furtherance of any business to import goods without payment of tax. I wish to ask the Minister whether this section of the Act, soon to be enacted, can be a loophole or can be abused by poor implementation of regulations in regard to the collection of GST. We have all read in the recent Slim 10 case whereby Government authorities appeared to allow one batch of slimming drugs to pass through without problems but failed to check on the other poisonous batches which gave rise to lengthy litigation in the court.

Similarly, as regards this new section 27,

will there be stringent procedures to prevent abuse whereby merchants can avoid payment of the 4%, and soon 5%, GST on the goods they import for local use? Can the Minister give us an assurance? Otherwise, there will be unfair advantage to those who can avoid payment of GST due to the said loophole in the Act.

Mdm Deputy Speaker, I think we have been through this debate about the GST several times. I wish to reiterate the arguments. First, the reason why the Singapore economy is facing its current difficulties is that our competitiveness level has dropped. To overcome this competitiveness problem, we need to restructure. And part of the restructuring exercise requires us to lower income tax and we need to then balance this by raising the GST from 3% to 5%. To make sure that the GST increase will not cause hardship to Singaporeans, we have put in place a comprehensive range of support mechanisms, from the Economic Restructuring Shares, the second tranche of which will be issued starting in January 2004, to a whole range of rebates to Singaporeans.

We have stated many times, and shown many times, that the rebates that Singaporeans receive and the assistance that Singaporeans receive will pay for at least five years of their GST commitments. Just a simple example, a household with an income of $1,500. Even if they spend all the money and incur the extra 1% GST, the additional GST is $210, but the ERS would give them at least $400 for one adult - if there are two adults in the family, it would be doubled - plus all the rebates for the service and conservancy charges, and if they are in rental flats, the rental rebates. So we have demonstrated many times that this is the right way to help Singaporeans, not to delay the GST. We have proven this the first time we raised the GST by 3%, that inflation impact is very minimal, that the rebate scheme that we have is the right way to help Singaporeans.

On Mr Chiam's point about the logistics scheme, there are two specific schemes to help develop Singapore as a global integrated logistics hub. The first scheme, as I mentioned in the Second Reading speech, is the third party logistics scheme. This is to allow such companies which meet these criteria to apply to IRAS. And if their applications are approved, then they would not have to pay the GST. The second scheme is the Major Exporter Scheme, and that will also allow them to qualify. So there will be stringent controls and criteria before the companies can qualify. I assure Mr Chiam that these schemes will not present a loophole for people to escape the GST.

Madam, the GST obviously is causing hardship to many residents in HDB heartland. In our Town Council, the arrears of three to six months ---

Order. Mr Chiam, I have allowed the Minister to address your concerns on the general comments, and that is not the substance of this Bill. If your clarification pertains to the substance of this Bill, I will allow that. Otherwise we will not debate the GST policy. Do you have any clarification?

I want to clarify that, in fact, the GST is causing hardship to the residents in HDB heartland.

Yes, I think the Minister had addressed that, even though that is not the substance of this Bill.

Thank you.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Hng Kiang].

Bill considered in Committee; reported without amendment; read a Third time and passed.

Resolved,

"That, at its rising today, Parliament do stand adjourned to a date to be fixed." - [Mr Wong Kan Seng].

Mdm Deputy Speaker, I beg to move,

That Parliament do now adjourn.

Question proposed.

5.55 pm

Mdm Deputy Speaker, I support and welcome the eight priorities set out last July by the Ministry of Health to embark on. I would, however, like this House to consider the prerequisites necessary for such aspiring targets to be achieved with the best outcome for Singaporeans.

Priority One on building a healthy population or promoting healthy lifestyle in an aggressive and comprehensive way

I cannot agree more on this first on the list of priorities as it is better to prevent the occurrence of diseases through healthy living than treating end-stage diseases. Madam, healthy lifestyle will prevent many common diseases, for example, healthy living with eating healthily, exercising regularly and not smoking will prevent diabetes, obesity and lung cancer respectively. For better outcome of healthy lifestyle promotion and a wider coverage of the population, there is a need for much creativity, funding and enthusiasm.

Since about 1.9 million or 65% of Singaporeans are working, healthy lifestyle promotion on workers would be a key factor in influencing the health of our people and this can be most effectively administered at the workplace. Essential in workplace health promotion includes having good programmes and guidelines as well as getting the support for them from the various companies. Also, providing adequate support to the administrators or health facilitators and expanding the scope of occupational health and safety to include the promotion of workers' health through healthy living and financial assistance in the form of grants would help jumpstart health promotion programmes, particularly for small workplaces. One group of the population that may be left out of reach from health promotion is the housewives and more should be done to target this group. Perhaps, we may reach them with programmes organised through community centres and grassroots organisations.

Madam, it is vital to look at the most prevalent diseases in Singapore and tackle them head on when promoting healthy living. The aim should be preventing people from getting such diseases and preventing those already afflicted with such diseases from disabling complications. A good example here would be diabetes which afflicts about one-tenth of the population between the ages of 18 and 69 and one-third of those between 60 and 69, and carries complications like kidney failure, heart diseases, strokes, blindness, just to name a few. Other examples of prevalent conditions are hypertension and high blood cholesterol.

As morbidity and mortality from any disease can be dramatically reduced when the disease is treated in its earlier stages, preventive healthcare should be targeted at the entire population, especially to include the younger people. The young may erroneously assume that they are less vulnerable because of their age and therefore have no need for regular checkups.

Our Primary Care Partnership Scheme (PCPS) for those who are 65 years and above and have a per capita income of $700 per month or less, excludes the care for such chronic diseases like diabetes and hypertension and this should be adjusted. Our PCPS beneficiaries are the vulnerable ones that most crucially call for good treatment and follow-up to prevent the complications that eventually require hospitalisation and incur higher healthcare costs.

Priority Two on managing diseases holistically instead of episodically and on maximising overall cost-effectiveness

Preventive healthcare must be the hallmark of all issues concerning healthcare affordability. Adequate allocation of funds today and success of preventive measures will save us millions in the future. The Ministry's priority is to continually identify prevalent diseases that need greater attention and to continuously monitor and study the trends for prevention of such diseases. We should have more detailed epidemiological studies of disease patterns and base our medical research and life sciences studies on them to better plan and cushion our long-term healthcare. Appropriate investment in medical research and life sciences directed at our prevalent needs, like finding the cures for the common diseases and cancers that affect most Singaporeans, can help address long-term healthcare affordability. If gene therapy can be found to treat and prevent heart diseases, diabetes and hypertension, the amount of savings will be enormous.

Emphasis on the strategy and health promotion on eldercare with innovations and prediction of future trends is increasingly important because the higher life expectancy is associated with increase in the incidence of chronic diseases. The recent improved surgical procedure by our local doctors on reshaping the heart in order to give patients with chronic heart failure a new lease of life for a third of the price of a heart transplant is a good example of this.

On managing any disease through the combined efforts of the Government, community and the individual, I would like to suggest that MOH look at our homecare services that are almost non-existent at present. Community volunteers and home-help for families to care for the dependent elderly in their homes through domiciliary, daycare and rehabilitation services and home adaptations will translate into lower costs and more convenience for a happier people. The need to stay in tertiary institutions and the ancillary costs will lessen. It is vital we aim to have more patients looked after in their homes, anticipate an increasing demand for homecare services and recognise this as an integral part of our healthcare system.

Priority Three on exploiting IT maximally and maintaining secure electronic medical records

The third priority is still a relatively new concept here. A good electronic data system with comprehensive, well-organised and useful health database providing accessible and high-quality information will be useful, especially if we can link all medical facilities electronically and avoid the problems of medical records transfer. The resultant easy availability of medical information on the patient will enable better continuity of care, avert unnecessary repeats of medical investigations and so on. Connectivity and the use of IT can also be used as a means to tap up-to-date medical resources. Medical informatics will facilitate and provide an integrated and seamless healthcare system from primary to secondary and tertiary levels or to homecare. Telemedicine and video-conferencing will overcome distance boundaries and will provide efficient and seamless transfer of information towards better patient care.

Priority Four on plans to counter disease outbreaks

Here, our recent SARS experience gave us much insight and ideas to follow on. That episode exemplified our strength. But it also showed up our inadequacies. Our inadequacies in prevention of infectious disease spread in our public hospitals resulted from our complacency in terms of infrastructure and measures in infectious disease control. Improving upon our inadequacies is crucial towards coping with future eventualities.

Even as of now, a person with an undiagnosed highly contagious infection, like SARS, who seeks treatment in one of our public hospitals is likely to expose the disease to about 50 to 250 people in that one hospital alone. This calls for a concerted effort to revamp our hospital set-up to curb the problem.

Communication and

dissemination of useful information amongst the medical personnel proved to be such an important tool in combating infectious diseases which was almost non-existent before SARS. Many medical facilities in the private sector were in the frontline as they were preferred to hospitals by the patients. Although they were most vulnerable, they were left to fend for themselves with no support.

The level of preparedness to combat any infectious disease can only be maintained with the determination to be vigilant and to ensure that all the various resources are in readiness.

Our laboratories here deal with many dangerous microbiological organisms that can be disastrous to our community and country if mishaps happen as in the recent case where a researcher was infected at the National Environment Agency (NEA) laboratory. Urgent measures must, no doubt, be taken quickly to prevent a repeat of such occurrences. Having a 'safety culture' as a priority is the cornerstone for us to succeed as a biomedical hub. Stipulated biological safety standards must be in place and regulated. And, very importantly, all our laboratory personnel should be well-informed, well-trained and always mindful of safety standards.

Priority Five on managing healthcare inflation

The fifth MOH priority on managing healthcare inflation is indeed welcome and I am confident MOH will do this with tenacity and without jeopardising patient care.

Our National Health Expenditure (NHE) increased from $4.4 billion in 1999 to $4.7 billion in 2000. As a percentage of GDP, NHE formed about 3%. Per capita health expenditure rose about 6% from $1,360 in 1999 to $1,439 in 2000. The NHE proportion was borne two thirds by the people and only one third by the Government. NHE for the year 2002 increased to $5.5 billion or 3.5% of GDP. My point is that, with the increasing NHE over the years but without increased Government's share of NHE, the extra burden on the people was great indeed, especially during an economic downturn. The WHO recently ranked the Singapore health system as sixth in the world, in terms of performance. In other words, we seem to be getting relatively excellent value for money in relation to the health status of our population. However, it did not rank Singapore favourably, in terms of equity in financing. This is based on its criteria of estimating the extent of financial burden in healthcare costs that are borne by individual households relative to total public expenditure.

Today, I would like to beseech the Government to address this concern of many Singaporeans and find ways to ameliorate their worry with some expedient actions and with further and better planning to soften the future burden. Finding a sustainable way to fund health services and the challenge of cutting costs are key issues in need of urgent attention. Our public sector accounts for a high percentage of our NHE and it must, therefore, focus on cost discipline through eliminating waste and duplication and implementing best practices. We need champions that see to it that it is their mandate to prioritise on cost savings while maintaining good patient care.

It is, indeed, useful to have some systems in place which can continuously monitor, adopt measures, encourage contributions, recognise new ideas of best practices and study from the experiences of others.

The Harvard University School of Public Health had a comparative study on the healthcare systems of several countries, Singapore included. It had referred to Singapore in this way: Two countries opted for competition in health financing: United States and Singapore. These two countries expected that competition would drive down prices while providing incentives to improve efficiency and quality. However, evidence suggests the contrary: the USA and Singapore have experienced the highest growth in healthcare expenditures.

Madam, whilst cost containment through competition is the desired intention, we are inadvertently having more ill-effects from having our two clusters. The impression of many is that there are duplication and wastage of resources, such as personnel, administrative costs, specialised services and more high-tech equipment. Even institutions within the same cluster seem unable to cooperate in cost saving measures. Let me cite you an example: Hospital X did not own a certain radiology diagnostic machine and had to refer its patients to Hospital Y within the same cluster. It was ludicrous that Hospital X eventually decided on buying its own machine simply because it was charged so highly by Hospital Y. This is certainly not maximisation of resources, especially when the equipment is expensive and gets outdated very quickly. Is this approach ideal for a small country like Singapore with a limited and small pool of medical personnel and other resources?

Drug costs are a big expenditure item. There is a proliferation of more and more expensive drugs. Prudent prescriptions to ensure that only what the patients require are given and on the use of generic drugs require more emphasis. While central bulk buying adopted by the two clusters has achieved cost savings, further reduction can be gained through better sourcing of products and more vigilant on other best practices.

Capital expense needs reviewing especially in an economic downturn. Better postulation of our present and future needs is necessary to avoid ending up with unjustifiably overbuilt facilities requiring tremendous cost.

Newer medical technology can contribute towards efficient usage of hospitals by allowing for more day surgeries and obviating otherwise expensive hospitalisation. Technology acquisition is closely linked with manpower considerations and doctors are a major factor in the demand for and the use of technology. Thus, more specific training of physicians to use high-tech devices should be encouraged.

The cost of in-patient care accounts for a greater share of total healthcare expenditure. Therefore, the challenge is to provide continuing care of the many diseases and problems of ageing through primary care. The strategy should be on greater emphasis on step-down care and primary care as it is recognised that they are an effective means of reducing healthcare costs.

Last year, as many as 3,083,458 attendances at the Specialist Outpatient Clinics (SOC) were recorded at our public hospitals. This may have stemmed from the ease for people to self diagnose and use specialists as first-line medical care. Perhaps, patients were not discharged as readily from the clinics because of the system. Of course, the premise that our Public Primary Healthcare Outpatient Clinics would be developed further to take on a bigger role to ease the SOC overload must be seen to.

There is growing evidence that much of the demand in medical care could be generated by the providers themselves. This supply-induced demand is due to the fact that patients usually cannot exercise their sovereignty in getting the appropriate amount and level of medical care. Therefore, a review should be done to remove policy that encourages such practices, especially on the remuneration of personnel that favour such practices. A further effective watchdog body or systems of checks and balances can reduce on such unnecessary spending. This will also safeguard the medical standard.

Priority Six to ensure long-term healthcare financing with our 3M (Medisave, MediShield, Medifund) framework

On the sixth priority to ensure long-term healthcare financing with our 3M framework, this is the time to enhance our 3M financing with our present and future circumstances. Due to the globalised market and the fluid labour market, especially during an economic downturn, employers' offered insurance may be diminished or cut. The present Medisave system, where we save and pay as we go financing for healthcare, is becoming increasingly inadequate to serve our needs. Risk pooling through a good health insurance expansion, with nationwide coverage to involve the entire population, dependable coverage year after year and adequate benefits with stable premiums together with a combination of co-payment and strict enforcement of uniform fee schedules should have a bigger role.

There is also a need to allay the concerns of many, especially the elderly, on the affordability of the hospitalisation bills should they fall sick. We need immediate action towards assuring people that affordability of hospitalisation presently is ensured with our 3M scheme (Medisave, MediShield and Medifund). Remarkably, many people still do not understand their usage fully and opting for hospital care that they have to pay out from their own pockets substantially. Now with ElderShield and Elderfund added to the list, it may be worthwhile for MOH to rope in the MPs and their grassroots workers to help disseminate the message to their residents and support them with materials to explain the available schemes and how to best use them according to the individual's affordability and on moderating expectations.

Priority Seven on safeguarding medical standards

The Ministry of Health's seventh priority is on safeguarding medical standards. We must ensure the care of our subsidised patients in the public sector to the extent of having relevant policies enforced to prevent attention being skewed towards looking after paying patients. Public hospital 'A' class beds should be limited to no more than 13%.

Our "research culture" was not great and our "clinical research" was never the emphasis. There has to be a complete mindset change and a radical system revamp in the institutions if we are going to make the various aspects of "clinical research" meaningful. Doctors in the public sector have expressed disappointment in the high rejection rates on research projects and the lack of grants for what they proposed. Research activities on the worldwide prevalent diseases should be expanded expeditiously. Research on prevention, early diagnosis and drug therapy to combat coronary heart diseases is an example.

In order for Singapore to remain competitive, we need to pay attention to training of our future healthcare providers. By continuing to invest heavily on our undergraduate and postgraduate medical education, we ensure that our doctors are competent and we help them to be conversant with new developments in medical sciences. We must encourage and facilitate those who are willing to teach and those who are willing to learn by providing them with the opportunities. We ought to enhance our investments on the Health Manpower Development Programme (HMDP).

It is worthwhile to include the extension of the service hub to become a training hub as this will boost our aim of being a medical hub in the region. This will have the effect of promoting collaboration with doctors in the neighbouring countries and of gaining their acceptance of us. The goodwill and mentorship will continue long after the training period is over.

Priority Eight on establishing Singapore as the Regional Medical Hub

On the last priority of Singapore being the Regional Medical Hub, I have spoken, at length, in this House before. I would not, therefore, repeat myself, except to say that there is a need for both public and private sectors to come together for it to be successful and preferably through integration. Hopefully, there is the will and the tenacity to see to it that we succeed before it is too late.

I commend the Minister and his Ministry for the initiative to set the eight priorities for our healthcare needs. I support them and hope to see many positive changes going forward.

Mdm Deputy Speaker, I thank Dr Lily Neo for her strong support and her comments on our health priorities. She has deep knowledge and experience, both as a doctor and as a parliamentarian specialising in healthcare policies. I therefore value her views on this subject. Indeed, as part of my preparation when the Prime Minister assigned me the health portfolio, I read up all her comments in Parliament in recent years on healthcare policies.

Shortly after I rejoined the Ministry of Health, I also had a working lunch with Dr Lily Neo and her GPC members. I thought we had a good exchange of views and I was struck by how much we agreed than disagreed.

To be sure, healthcare policies are complex. At the core of the complexity is the fact that healthcare services are, what economists call, a public good and non-excludable. Unlike other goods and services which can be left to the market to allocate through pricing and consumers' ability to pay, we cannot deny the sick and dying with basic healthcare, just because they cannot afford to pay.

So governments all over the world, and Singapore included, subsidise to varying degrees the provision of healthcare services. With subsidy, however, comes distortion of both supply and demand. So the challenge is to subsidise, but with minimum distortions. And this is the healthcare dilemma: how to ensure subsidy goes to the right person, but without it being abused.

No government has a perfect solution to this healthcare dilemma. When I first joined the Ministry of Health 25 years ago, I read about the many healthcare problems faced by UK, US, Japan, Germany and many others. As I restarted my reading of healthcare journals, I was struck by how little the problems had changed in these 25 years. Indeed, in some countries, the problems seem to have worsened. For example, in the recent California Governor election, the issue of rising uninsured was a hot item.

Then-Governor Gray Davis had to rush through a Bill in the last few days of his term, shortly before elections, to require employers to insure their employees based on an 80-20 co-funding formula. But that was not sufficient for him to prevent his term from being terminated. And people remain unhappy. In the last few days, supermarket employees - and today I read in the newspapers transport workers - have gone on strike over rising health insurance premiums.

In comparison, the Singapore system has not done too badly. Compared to my first day in the Ministry of Health in 1978, we have made significant progress.

First, we now have more money set aside for healthcare. Singaporeans now have $28 billion in their Medisave Accounts, and Medifund has built up to $900 million.

Second, we have rebuilt all our pre-war hospitals, with the exception of Alexandra Hospital. Even Alexandra Hospital has had a facelift and is no longer the same British Military Hospital that we inherited.

Third, we have many more doctors and nurses: 6,000 doctors and 18,000 nurses on the registers, and these are double or triple the numbers 25 years ago.

Mdm Deputy Speaker, my job is to build on this very strong foundation which I have inherited and to build on it, so that when it is my turn to pass on the responsibility, my successor will have something even stronger and better.

I have, therefore, spent the first few weeks of my appointment to MOH talking and consulting a wide range of stakeholders in healthcare - doctors, nurses, sinsehs, pharmacists, administrators, the public and private sectors, politicians, journalists, patients, etc.

My first task is to settle the priorities for my term. There are many things worth doing, but we need to focus our energy, if we are to be effective, and we have settled on the eight priorities. These are all long-term issues. They are not easy nuts to crack. There are no quick fixes or instant results. We need patience and perseverance. It will be a slow push up the hill, but worth doing.

For example, healthy lifestyle, which Dr Lily Neo mentioned a few times. Imagine: if every Singaporean can be as disciplined as Senior Minister Lee - whether it is in his diet or exercise routine - what a dramatic difference that will make to our total healthcare needs. Of course, I am not naive. It is not possible to get 100% of Singaporeans to be like Senior Minister Lee. But, if every five years, we convert another 20% of Singaporeans to join the healthy lifestyle club, we can potentially reduce healthcare need by 10-20%. That means hundreds of millions of dollars saved per year. This is not a trivial sum.

I agree with Dr Lily Neo that Singaporeans are worried about rising hospital bills, and this is also one of my priorities. We are getting our hospitals to pay close attention to this and to slow down the medical inflation rate. Medical inflation rate in recent years has exceeded general inflation rate. I hear the concerns and I will do my best to strike a balance and address them. Let me explain this.

We cannot over-manipulate the prices of healthcare services. It is not possible for us to artificially induce deflation in medical fees, especially when the rest of the economy is doing well by, say, suppressing or cutting the wages of our healthcare workers. Otherwise, our hospitals will suffer a brain drain, which will be detrimental. Similarly, we should not allow medical inflation at an excessive rate, beyond what the economy as a whole and Singaporeans can bear. But what we can and should do is to make sure that the medical inflation rate does not diverge too much from the general rate of increase in wages and other factor prices. I think that is a fair proposition.