Hansard, 2007-03-03

Under the provisions 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 (2007) To (2007) Dr Muhammad Faishal Ibrahim 11 Mar 16 Mar 18 Mar 24 Mar 11 Apr 16 Apr Dr Ng Eng Hen 14 Mar 17 Mar

ABDULLAH TARMUGI Speaker Parliament of Singapore

Order read for consideration in Committee of Supply [2nd Allotted Day].

Head Q - Ministry of Information, Communications and the Arts. Miss Penny Low.

Talents in the Creative Sector

Sir, I beg to move,

That the total sum to be allocated for Head Q of the Estimates be reduced by $100.

Sir, in the year since the cultural, capital and Renaissance City Plans were introduced, much buzz has been added to the creative sector. More recently, other initiatives like the Creative Community Singapore, Design Singapore, Media 21, Renaissance City 2.0 and even the iN2015 plans collectively contributed to the making of the creative ecosystem. MICA deserves praise in this respect. In fact, the value-add per worker is amongst the highest and its economic pie has been growing exponentially. To attract, groom and retain creative talents, generate innovation and stimulate economic growth, there must be substantial attention paid to providing a holistic and conducive environment for creative juices.

I list four essential elements for the Minister's consideration.

One, environment. Be they artists or technologists, film makers or fashion designers, creative talents need centres of creativity in the places that they work, play and live in. Diversity adds colour and vigour to the process. Talent favours open-minded and connected environment where they can fit in easily. Cities that offer places where talents can share and exchange ideas and even places such as cafes, artists markets, cultural belts will help to integrate newcomers into a community and strengthen the existing community. Would the Minister consider upgrading current arts housing schemes, especially those at Telok Kurau and the Performing Arts Centre at Telok Ayer, which are rather run down currently. What about supporting even a dance centre or the likes of a centre like in Paris. I mean the quality of place counts?

Two, innovation. We need to support new ideas and put a premium on innovation. The emphasis on a high trust economy and patents should be extended to the creative and artistic works and not only be focused on traditional hi-tech industries. This will spell greater growth in original works and entrepreneurial activities.

Three, recognition. The need to be recognised. They need to be recognised by what they do more than who they work for. Due to the nature of their work and the industry, many may fall out of the traditional definitions of formal employment or full-time job. They have little or no CPF or employment benefits or protection, even Medisave, and some move out of the creative sector after some years. I think that is quite a waste. To retain them, we need to find ways to help them get ahead and retain them effectively. Our ability to recognise individuals for their unique contribution rather than their company will help create an environment that attracts and retains talents from across the world and give us the competitive edge.

Four, demand and supply. On the demand side, creative talents need a hand up, not a handout. Demand spurs supply. Perhaps the Government, not just MICA but all across the Government bodies, can purchase local creative works, visual performance or design and collectively provide a demand floor to support the creative industry. On the supply side, each year, MOM projects the manpower needs and NMC translated them into intake quotas which affect the number of tuition grants given. Last year, for NAFA and LaSalle, the quota was 903 and 102 for visual arts and performing arts respectively, including the arts administrators. Is this way too conservative? In addition, perhaps the tuition grant should also be extended to degree level to recognise it as a full profession. Perhaps the Minister can also explain what are some of the KPIs used in measuring the success of talent cultivation in Singapore and KPIs in measuring the effectiveness of nurturing ground that we have provided.

I would also suggest considering the criteria used in Richard Florida's book, The Rise of the Creative Class, and I think the four criteria outlined are quite useful. They are, one, innovation measurements such as the number of businesses created, patent applications, national share of hi-tech output and the concentration of hi-tech output versus non hi-tech output. Two, talent measurements such as the number of Bachelors degrees or better, per capita and number of creative sector occupations per capita. Three, diversity measurements such as number of foreign bond per capita, a Bohemian index of artists, musicians, etc, a percentage of people and colour and integration index because diversity is key. And, four, workforce measurements such as occupational clusters, industry clusters and creative senses. Would the Minister please consider the above suggestions?

Singapore produced Stephanie Sun and Lin Jun Jie. They were famous overseas before becoming popular in Singapore, and Singapore Idols and other programmes have also produced many talented artistes but they seem to fade away just focusing on the local markets. We need Stefanie Sun and Jun Jie. But if we are a hub for many other services and sectors, are there any plans to grow the local market into a hub to attract talents as well as help the local talents provide opportunity and reverse the process to fame for these local artists?

Sir, talent for the creative sector can be quite different from other sectors. These are people who may not do well in the mainstream education system but just have a unique creative streak in them. For example, local song-writer Dick Lee did not even have a full certificate for his 'O' levels, yet he has written many great songs for local and international singers, and for many years, was the winner of the COMPASS Composer of the Year Award for having received the most in music royalties. On the other hand, creative talent can also be high academic achievers who finally decided to pursue something that they are really passionate about. For example, theatre director Ong Keng Sen, playwright Eleanor Wong and actress Selena Tan are all law graduates. It seems like besides becoming politicians, lawyers are also quite versatile and multi-talented.

However, if I may stereotype, creative people do not want to be tied down to a fixed routine or job. Coupled with the fact that the nature of the work opportunities in the creative industries is more on a project basis, many creative practitioners are freelancers.

I am hence happy to note that the Creative Industries Scholarships offered under MICA and its statutory boards are mostly without a bond. Therein lies the challenge of how the Ministry is able to be accountable to the public on whether the money is well spent, and how the Ministry is tapping on the returning scholars to further develop the creative industries in Singapore. As with the high performing Government scholars who are given the exposure to be groomed for leadership positions, is there also a concerted effort to help the scholars scale greater heights in their creative or artistic fields? Many creative people are waiting for their big break. The Government could look at appropriate platforms to help showcase the talents of the people whom we have invested the scholarship in.

In the creative sector, not many disciplines can be substantiated solely with a piece of paper. In most cases, having worked on a great project is far more valuable than having graduated from a top university. The network is also very important. Landing a project in the creative sphere is usually dependent on who you know or who knows you. For example, in my theatre practice, we seldom audition for the cast. It is usually through our own contacts, referrals or who we have seen acting in other productions. Our scholarship system may need to be tailored so that they can also help talents gain relevant work experience, track records and networks.

In our pursuit to develop the creative sector as an industry, we need to also develop talent in business, management and marketing. I find that currently much focus is on the artistic or creative development. For example, in the performing arts, most arts groups, be it in theatre or dance, the key person is typically the artistic director. He or she is usually the choreographer, director, actor or playwright, someone usually heavily involved in the creative process.

In today's Life! section, Mrs Tina Leo-Tan, owner of The Link boutique who has helped local fashion designer Sven Tan break into international market, said, "[Local designers] have to multi-task and play other roles integral to the business, like marketing, overseeing manufacturing, operations and pricing for merchandise." In the same article, fashion and lifestyle publicist Lionel Lim added that, however, "They stubbornly believe the product will speak for itself."

12.15 pm

I believe in the science that each of us has the left sensible and the right central brain, and usually one side is more developed than the other. Hence, a creative person is typically not too at home with numbers, dollars and cents and, in general, organisation and administration work, at least, from what I know of my wife! Hence, it may not be realistic to find many people with a creative talent who can also run a business well.

But let us look at the technology sector for comparison. When we mention a company like Motorola, it is the CEO Edward Zander that comes to mind. Not many people will be able to name the CTO, Padmasree Warrior, who, while in the top management team, is usually listed after the CEO, the CFO and the CIO. Zander would also learn a lot more than the CTO, I assume.

But, however, in the arts scene, the administrator, or typically called the GM, who takes care of the company's accounts, records, writes the proposal, usually plays a supporting role and gets paid a lot less as well and, also, less profiled.

I am not saying that we should pay more attention to the GM at the expense of the Artistic Director (AD). However, people with the CEO calibre usually can apply their strengths in other industries and with much better financial rewards as well. Sir, I believe in order for arts companies to grow further, we have to pay special attention to develop, train and retain the GM or CEO. This could be in the form of scholarships, training grants or operating budget for our major grant recipients. I believe we could explore having the arts company model of a CEO and a Chief Artistic Officer (CAO).

Progress in the Creative Industries

Now, for progress in creative industries, it has been more than four years since the Economic Review Committee identified creative industries as a key sector to grow for Singapore's future economic development. This is a sector that is different from the more traditional industries in manufacturing, which Singapore is familiar with. To develop this area, I would like to ask the Ministry what are the new mindsets and approaches that we have adopted so that we are not just replicating another industry model that may not be relevant for the creative industries. And what is the overall progress of the creative industries during the past year?

Promoting Music and Design Talents

Sir, let me, first, declare my interest as a keyboardist of a local rock band. The arts scene is finally beginning to take root in Singapore and this is good because it gives Singapore a dimension it needs to be a global city. But that is at the first level. More importantly, the arts can give a nation a stronger identity. Local music, too, can play an integral part in nurturing the Singapore identity. The songs and music created can speak to the experiences and zeitgeist of Singaporeans. Local music can give us a shared experience.

Unfortunately, in the eyes of the state, popular music is one of the poorer cousin in the nurturing of the arts scene, especially at an international level. While you have exceptions like Stefanie Sun, we should not just rely on one or two individuals who may not on their own reflect the rise of local music. We need to find a way to provide for the ground up growth of local music and local bands. While all this must start from the ground up, I believe the National Arts Council and other agencies must play a role. Not doing anything can also stifle the growth of local music. This also applies to local designers, although I think they have it just a little bit better than musicians.

So what can be done? The NAC should open up more platforms on the national level first, and then on an international stage for local musicians to work towards and build upon. If we think big, we can project Singapore on a larger platform, for example, the Singapore Showcase in London and next in New York. This is a positive step even if the objective is marketing driven. However, if you think of exporting the Singapore brand, why not make Singapore music a part of that brand? If we want to make the Singapore image, why not use Singapore music as part of that remaking?

Recently, two local bands, Electrico and the Great Spy Experiment, were two out of 400 international acts that were handpicked to perform at the South by Southwest Music Festival in Texas, where some of the world's great bands were discovered. We need to help local acts to aim for such opportunities. We are now talking about diverse paths of success and so, it is good to provide opportunities for musicians to strive for the heights of their passion.

Festivals, like the one in Texas, require monetary support though. Besides organising events like this at the national level, the state should consider helping to fund local musicians and designers to participate in these internationally. The NAC helped the Great Spy Experiment with funding, but I think it was only one quarter of the funding needed. So perhaps a more dual process of funding could be shared between the corporate and the Government. The NAC can also play the role of matchmaker between corporations and local musicians and designers. MCYS, for example, plays the same role in sourcing for funding in sports.

Sir, by taking a more active role than it does now, the Government will send a clear message - one that goes beyond just words - that local music is an important part of the arts scene and a valuable aspect of enriching our identity as a nation. It is better for our youths to grow up listening to their own song writers than Snoop Doggy Dog.

Creative Intellectual Property

Sir, the creative sector is not one that depends on high capital investments or a large labour force. It only takes the talent of one person like JK Rowling to write the Harry Potter series, and now she is a millionaire, or probably a billionaire. But the application of the copyright in the form of the manuscript into books, movies, computer games and merchandise has created jobs and profits in the publishing, printing, film, gaming and manufacturing industries, not to mention hours of enjoyment for many end consumers.

The creative sector is, hence, one heavy on intellectual property (IP). Besides stories, these could also include scripts, songs, TV formats, design patents, etc. We should do more to support the development of new original IP. In design, the idea can be easily copied and replicated. A few years ago, I was shopping for a new home and discovered that there are many copycat furniture and lighting designs over Singapore. Two items very similar in design may look identical, but the original, usually an European design, can easily cost 10-20 times more than a similar piece manufactured somewhere in Asia. Not only must we have the talent to create the designs, we must have the legal infrastructure to protect the IP. What are Singapore's plans to increase design IP?

In the performing arts, I have observed that there have been a number of restaging of productions, both local and classic, eg, Forbidden City, Titoudao, Lei Yu. While re-runs could ride on past successful performances, I understand that each re-staged production does bring along with it new elements in direction, acting, design and treatment. However, we should also give more encouragement for local talents to create new IP. A piece of new work, as it is untested, is usually more difficult to attract sponsors and audience. Like in pop music, Singaporeans began to take notice of Stefanie Sun and JJ Lin after they made it big in Taiwan and China. Our audiences also prefer to pay for tickets to established names, like Phantom of the Opera and Mama Mia. The new works hence tend to be less commercially popular.

So I would like to call on the Ministry to provide greater incentives for creative practitioners to invest in and to take a greater risk in creating untested new works.

Sir, I thank the hon. Members for speaking on the creative industries and for raising many relevant comments and suggestions.

Let me begin by sharing with the House a brief overview of what the industry represents. In our context in Singapore, we describe the creative industries as encompassing the arts, design and media.

Globally, the creative industries were estimated to be worth over US$1 trillion in 2005, accounting for about 7% of the world's GDP. It has a projected growth of about 10% annually. It is obviously a big and rapidly growing sector of the global economy. In Singapore, between 1995 and 2004, the creative industries grew by about 7% annually, which is very healthy, better perhaps compared to 4% for the general economy's growth.

The impact of the creative industries goes far beyond their direct economic contributions to the economy. The indirect contributions are equally, if not more, important. For example, the creative industries can contribute to even more innovative and desirable products and services in manufacturing, healthcare and tourism sectors. The strong multiplier effect of the creative industries on other sectors was, in fact, something which the United Kingdom's Creative Economy Programme singled out for mention. In Singapore's context, we note through anecdotal evidence that the performing arts, for example, have much higher multipliers than many other economic activities.

So the creative industries also improve our quality of life and make Singapore more vibrant by stimulating awareness and demand for the arts, design and media products. It opens up new opportunities for Singaporeans to turn their creative ideas into businesses.

By coincidence, The Straits Times today, mentioned by Mr Baey Yam Keng, carried several pages featuring fashion designers and other designers' works as well as pointing out the ups and downs of the design industry. I think it is natural, like many other industries, they will have their successes and failures. The article makes for interesting reading about the state of the design sector in Singapore.

Sir, our investment in the creative industries is a long-term effort. It would be a long journey. The good news is that we are making encouraging progress. The latest economic figures indicated that, in 2004, Singapore’s creative industries contributed about 3.6% to the GDP, total value add was $6.7 billion, which was an increase of 8% over the previous year. Total creative employment increased by more than 1,000 to over 93,000 workers in the creative sector, accounting for about 4.3% of total employment.

Many countries are aggressively investing in their creative industries. Countries, such as the United Kingdom, the Nordic countries, Australia, New Zealand, South Korea, China, including Hong Kong, have all launched national strategies to develop their creative industries. Singapore cannot lag behind. We must seize the opportunities and be responsive to changes in the global environment. We must update our strategy and effort to promote our creative enterprises. In response to Mr Baey Yam Keng on what are we planning to do for the creative industries, let me inform the House that MICA will review and refine our creative industries development strategy which we adopt about three years ago and we will update the strategy so that we will be able to develop new initiatives to further support and nurture this very important sector of the economy.

But not everything has to change when we review and refine. One key component which remains unchanged is developing human capital. After all, it is the breakthrough ideas by the talented individual that lead to innovative products and services. We will continue to adopt a holistic approach through education, capability development, awareness-building, showcasing and recognising creative talents and achievements. If we take this approach, we will be able to make a greater impact to catalyse and stimulate our creative industries.

Miss Penny Low asked whether our artists and arts groups are doing well, and how we measure ourselves in this area. There is no simple measure of such achievements. Some of it may well be intangible. One rough measure though is the number of international awards and engagements that are secured by our local talents. It is an indication of recognition. The numbers are not large, but the National Arts Council (NAC) reported a 50% increase in 2005 over the year before for such recognition and international engagements. I would say more about the increasing demand for the arts and internationalisation of our artists and arts groups later on.

On Miss Low's question about the intake quotas for our arts institutions, each year, the National Manpower Council establishes the intakes of subsidised students in the post-secondary education institutions. This is done in consultation with various Ministries, economic agencies and the education institutions themselves in order to be able to channel resources to areas with the highest economic demand. I am glad to inform this House that to support the growing demand for creative manpower in the creative sector, the local arts institution has overall increased the art intakes of subsidised students by 10% between 2004 and 2006. We will continue to review and monitor the demand for talent in the creative sector. As the need manifests itself, we would certainly be working with the post-secondary education institutions to increase their intake so that we will be able to supply the required number of talents to take on these jobs in the creative sector.

12.30 pm

Mr Chairman, Sir, Mr Baey Yam Keng has noted that talent for the creative sector needs to be developed differently. I agree with him. He also asked about the scholarships and the informal training opportunities that are equally important in nurturing talent for the creative industry. Last year, 30 scholarships were awarded by the arts, design and media sector. Since 2003, MDA has also supported an additional 76 aspiring media talents under the Media Education Scheme at both local and overseas institutions. I would strongly encourage students who are interested in a career in the creative industry to apply for these scholarships.

Our scholarships and bursaries have enlarged our pool of creative manpower. Some of them joined Singapore’s creative workforce immediately after graduation, while others opted to work overseas to gain international exposure and establish invaluable networks before returning home. Our established artists are also helping to mentor and to develop the next generation of artists. For instance, seven out of 10 recipients of music and dance scholarships given in the early 1990s have remained active musicians or dancers as well as teaching aspiring young musicians and dancers. A good example is Ms Cheah Mei Sing, a scholar who used to dance with the Singapore Dance Theatre. She has now joined the School of the Arts to help groom younger talents. Sir, Mr Baey Yam Keng pointed out that formal education alone is not sufficient. MICA’s agencies offer various programmes beyond formal training to help creative practitioners to build up their creative skills, arts management and business capabilities, as well as gain international exposure. I agree with him. Trying to help and grow these arts companies is not just a matter of the artistic side. There is also the business side, and we are aware of it. That is why we help them to develop arts management and business capabilities. This assistance also includes local and overseas attachments, grants for them to conduct studies, as well as master classes and seminars.

We are also partnering the Workforce Development Agency to develop a Creative Industries Workforce Skills Qualifications (WSQ) framework, which includes the development of skills standards, assessment strategies and training curriculum for the creative sector. We believe that having a creative industry Workforce Skills Qualifications framework will certainly help many workers in this sector to improve their employment prospects.

Miss Penny Low asked about freelancers, workers in the creative sector who are not employees in the usual sense and who will move between projects. I agree with her that the creative sector has a large proportion of such people, and that freelancers are in fact an essential part of the talent pool for Singapore’s creative industries. It is also the same in many other creative cities. They have a pool of freelancers who will move around from project to project and sometimes doing different things. I agree that it is important for freelancers to also upgrade their skills and capabilities. MICA’s agencies offer capability development programmes for creative workers, including freelancers. Last year, nearly 5,000 employees and freelancers took advantage of these programmes. Freelancers can also benefit from our Workforce Skills Qualification framework, which I have just mentioned.

Freelance creative workers are also no different from other freelance or casual workers in other economic sectors. This is to address the point that Miss Penny Low mentioned about the savings for old age pension, retirement, healthcare, and so on. So I would like to encourage all freelance workers in the creative sector to better plan for their retirement and old age by voluntarily contributing to their CPF accounts. The Workfare Income Supplement Scheme announced by the Second Minister for Finance is also available and will benefit the lower-income and older group of workers in the creative sector.

Mr Teo Ser Luck asked about developing the local market to support and promote local musicians. Ms Eunice Olsen also enquired about the Government’s efforts to promote local music and design talent internationally. Both comments are relevant and deserve support. MICA’s approach is to develop our talents to succeed not just in Singapore but beyond our shores, to be able to go onto the international stage, so to speak. It will not be easy. But we must try. We have three key strategies to underpin this effort to promote and to internationalise our creative sector.

Firstly, MICA actively promotes and showcases Singapore’s creative talents around the world. Last year, The Art House at Old Parliament launched the Spotlight Singapore series in Hong Kong and Tokyo featuring our top musicians, including popular musician and composer, Iskandar Ismail, and also a certain number of popular DJs from Singapore. The Singapore Season series, which we piloted in London in 2005, successfully introduced Singapore’s arts and cultural talents to the London audience. Since then, the Tang Quartet was invited back to perform in 2006 and the Singapore Chinese Orchestra had also been invited to perform in Gateshead, Newcastle, UK, in 2008, and maybe another invitation for 2009. Arising from that exposure through the Singapore Season in London, we are beginning to see Singapore arts company being invited back for further performances. This year, we will present a month-long Singapore Season in Beijing and Shanghai in China which, we hope, will lead to even more invitations for Singapore artists and arts companies to perform in China. In our Singapore Season's programme for China, we will incorporate a popular music segment to provide a complete picture of the diversified art and culture developments in Singapore. This invitation to our arts company to perform internationally is also another indicator of the arts sector's achievement, which also addresses Miss Penny Low's question on how well they are doing.

Secondly, MICA's agencies work closely with industry partners to market Singapore’s creative products at key international events. In the music sector - to address Ms Olsen's point - NAC and MDA supported Singapore talents and companies at international markets, such as MIDEM, the world’s largest music trade fair. Last year, 11 Singapore music companies participated in the Singapore Pavilion at MIDEM and secured collectively S$9.5 million worth of contracts, which is almost nine times more than what they did in the year before in 2005. So we are making progress. In film and content for TV, MDA led 15 Singapore media companies, including ST Electronics (Digital Media), Lights and Shadow, Oak 3 and Scrawl Studio, to the 2006 MIPCOM in Cannes. This is the world's foremost TV content market in France. These companies collectively secured co-production contracts worth US$50 million. These are good indicators of Singapore's music and media companies’ ability to enter the growing global market for media content. MICA will continue to help more Singapore companies to venture into the international market.

In the design sector, the DesignSingapore Council presented Singapore designers at premier international platforms, such as the Milan Fair 2006. We showcased designs by four home-grown companies - Lee Hwa (a jewellery company), Stikfas (a toy company), Air Division and Enzer (consumer electronics) in collaboration with renowned industrial designer Toshiyuki Kita. Similarly, in the 2006 London Design Festival, we featured 20 award-winning Singapore-based designers. I would also like to take this opportunity to mention the inspiring story of two Singaporean designers, namely, Ms Wendy Chua and Mr Gabriel Tan. As students at the NUS Design School, they won the prestigious Electrolux Design Lab International Competition. I think they have already graduated and established a design group with two other designers from Argentina and Spain. The group is called "Out of Stock". They will present their furniture and product design at the Milan Fair this April, with the support of DesignSingapore Council. This example shows that our designers are innovative and they are ready to venture onto the global market.

Thirdly, MICA supports the internationalisation of artistes and designers through various grant and assistance schemes. These include overseas scholarships and internships, and funding assistance to participate in international events, awards and competitions. Going forward, we will continue to explore more avenues to help our creative sector enter the global market.

At home, of course, we will continue to give recognition to successful designers through our President Design Award scheme which was inaugurated last year. In fact, the call for nomination for 2007 President Design Award is out now and I would like to invite people to put in their nominations for recipients of this award.

Mr Baey asked about the support for the development of intellectual property. Let me assure Mr Baey that we are making strong efforts to ensure that our creative professionals are well equipped to develop and exploit IP. The DesignSingapore Council is planning a new initiative to support designers and design entrepreneurs by establishing a Materials Library and a Prototyping Resource Centre. This initiative will be a great help to many designers, especially the young and up-and-coming designers, who may lack access or have difficulty gaining access to such a resource which they would need in their design work.

I would also like to mention that we already have a number of design companies in Singapore which are well positioned to develop and exploit their own design intellectual properties. For example, Kingsmen Exhibits, which designed the Mini Habitat Showroom for BMW Asia, is now applying the concept to various MINI showrooms overseas. Likewise, WOHA Designs, a President Design Award winning architectural firm, has spun off a company to turn original furniture designs for their one-off architectural projects into design IP which can be licensed for royalties.

Sir, in response to Mr Baey's request for more resources to stimulate the creation of intellectual property, I would like to say that, last year, NAC invested more than $1.3 million to commission new artworks that will enlarge our repertoire. NAC will increase financial support for the creation and presentation of new works, including launching a Co-Publishing initiative to co-invest in the publication of new works. NAC will also commission artists and arts companies to create new creative works. For example, a new dance development platform, Forward Moves, was commissioned for the Singapore Arts Festival to stimulate development of new choreography by Singapore’s emerging choreographers. Sir, in conclusion, the creative industries offer tremendous opportunities for Singapore. The results so far have been very encouraging. We will continue to support capability development, whether it is through formal scholarships or through informal networking, seminars, master classes and other sharing opportunities, and help creative Singaporeans to gain skills in important areas, such as content creation, growing intellectual property, as well as accessing new markets. The direct and indirect contributions to our economy will be significant. Equally importantly, the creative industries also contribute to making Singapore a more vibrant and exciting city for our citizens as well as visitors. MICA will continue to take a holistic approach to developing the creative industries and the creative potential of Singaporeans.

Creative and Cultural District

Sir, listening to the Minister for MICA, it seems that the creative sector is set to grow and grow even faster. But I think there has been reflection from the ground that there is a lack of cohesive and permanent public space available for both the visual and performing arts. What is available currently is rather scattered and ad hoc. For the creative talents, this means wasted resources in scouting for venues while, for the consumers and business, which is the demand side, there is no clear place where they can go to embrace the arts.

In many great cosmopolitan cities, there are exclusive cultural districts and creative belts for exhibiting and transacting artistic works. For example, London has Covent Garden, Paris has Centre Pompidou and more, and New York has the Green Village where both the public and the tourists can have access to appreciate art for free or for a fee. Over time, these places can develop into a major tourist attraction for showcasing Singapore's creative talents' work and an iconic place that embodies a distinctive Singapore culture and a global interaction point for the top-tier creative talents to meet and exchange ideas.

12.45 pm

Moving on, with regard to MICA's objective to grooming our local talents and reaching out to our fellow Singaporeans to appreciate arts, what plans are there to bring arts and artists to the people especially in areas where there is already a natural crowd? For example, on the busy Orchard Road, underpass of CityLink, the underpass linking City Hall MRT and Suntec City, is it possible to turn some of these spaces into permanent living art gallery, or at least blend in some artworks or features as part of the architect? Could we allocate some prime areas as creative space and permanent space for our artists? And in lieu of the space constraint, I suggest that on weekends, we can even turn the lifeless Raffles CBD area into a live street arts performing centre just like Harajuku in Japan which has become a popular iconic place in and outside of Japan.

In conclusion, we have definitely scored well in providing the initial sparks for the creative mind to venture. Now is the time to move on to allow space for these sparks to ignite other sparks.

The plans to convert City Hall into the National Arts Gallery and the redevelopment of Victoria Theatre and Concert Hall underscore the Government's seriousness in turning Singapore into a global city of the arts. These are monuments of great historic and symbolic significance.

To maximise our huge investments, we need big-bang ideas and blockbuster events which pull together all the arts venues in these precincts, from the Esplanade, the ACM, the City Hall to the National Museum. We can link all these venues together by bumboat rides along the Singapore River as well as an underpass which is air-conditioned. The new National Arts Gallery opens in five years, in 2012. We should start planning now for a world-class mega month-long festival involving all the arts venues around that area and link them up.

We should bring together our festivals, which are the Arts Festival, the Jazz Festival, the Book Festival, the Drama Festival, the Film Festival, the Fringe Festival, during a designated month and market them aggressively to Singaporeans and to the world. A major Book Festival could be held on our historic Padang, in the light of the International Book Festival in Edinburgh which takes place in a historic Charlotte Square Gardens.

Sir, by 2012, for example, you can visit the National Gallery at City Hall to view a collection on the whole history of Asian paintings. Then, walk across to the Padang for the Book Festival to listen to our best thinkers and writers. Then, stroll to the Victoria Theatre to catch a world-class concert, synthesising the best of East and West. Or pop into the ACM to catch a blockbuster exhibition of rare artefacts of the great civilisations of the East. Then, you can take a bumboat ride from Raffles' Landing Point at Empress Place, the spot where Raffles landed in 1819, to the Esplanade to catch a late-night jazz concert, as part of the Jazz Festival which jams till the early hours of the morning. Or you can take a bumboat ride down to Clarke Quay or Robertson Quay where venues, which involve pubs and open squares, can be converted into performance spaces for buskers and stand-up comedians from all over the world - maybe as part of the Fringe Festival. Or you can catch a late-night film at the Arts House at Old Parliament as part of the Film Festival. If the weather is too hot for bumboat rides, then use the underpass, which is air-conditioned, linking the Esplanade to the City Hall MRT, and even maybe to the National Museum.

Sir, we need to think big and I know the Ministry has big plans ahead, and I would ask the Minister to share it with us. Sir, we need to make an impact on the world, and to do that, we need to ratchet up our festivals and package them and coordinate them to make a big impact. The WEF Travel and Tourism Competitiveness Report ranked Singapore among the top 10 travel destinations in the world, but said that it was dragged down because it lacked cultural attractions. This is a pity when we have so much to offer.

Can I ask the Minister for his vision for these precincts and his plans to market these precincts as a cultural jewel to the world?

Dr Ong Seh Hong is not here. Dr Teo Ho Pin.

Arts Outreach

Sir, to build an active and gracious society, we need to have more effective arts and cultural outreach programmes in the community. Today, many arts and cultural activities have limited outreach to Singaporeans and there is a lack of arts and culture in Singapore. Sir, even the energetic and artistic Crazy Horse cannot live in our sterile environment.

Sir, many Singaporeans are still not into arts appreciation and also not willing to pay for arts and cultural activities. That is why many arts and cultural groups find it a struggle to sustain their operations in Singapore. Sir, as we progress to be a first-world nation, we must provide more opportunities for Singaporeans to appreciate arts and culture. We must tap on the creative talent of our people and nurture them to excel in the creative industries.

Arts and culture will also enhance our quality of life and strengthen the bonds of our people, but it will be a challenge to match the interest and aspirations of our people with the different types of arts and cultural activities in a multi-racial and cosmopolitan society. The market for arts and cultural activities is fragmented and small. Therefore, we must be focused to select sustainable arts and cultural activities in our community outreach. Otherwise, too much wastages will occur, thus hampering our outreach efforts.

Sir, besides community outreach, I would like to propose the setting up of a national arts gallery in Singapore. We can make Orchard Road our national arts gallery and encourage building owners, businesses and arts groups to display their works along Orchard Road. In this way, we can also provide more arts outreach to Singaporeans and also further enhance the tourism attractiveness of Orchard Road.

Sir, I wish to ask the Minister the following questions:

First, how effective are the arts outreach programmes and initiatives by the Ministry? Two, are there plans to develop an arts culture in the heartlands? And, three, how does the Ministry encourage more corporate sponsorships to support its arts outreach efforts?

The Arts School

Sir, the proposed Arts School will be a place where we nurture our pre-tertiary students to achieve and develop their creative and artistic potential. It hopes to diversify our educational landscape just as the Sports School and the NUS School for Science and Mathematics have done. Indeed, the arts scene in Singapore is expanding and getting more vibrant, but running a whole new school dedicated entirely to the arts at the pre-tertiary level will be a relatively new venture for Singapore.

There will be challenges but we can learn from the experts from collaborations and visitations to world-renowned arts schools. I believe a committee has already been set up to do this and I applaud that. I would like to ask the Ministry what would be the cost to Singapore in terms of capital as well as operating cost. Which discipline of arts will be available, namely, the visual, the performing as well as the design arts? And, also, will there be an emphasis given to the ethnic arts? Will foreign students be enrolled as well? Will it be able to sustain attendances after the initial novelty period wears off, bearing in mind that currently, we also already have the arts and music education programme offered in several schools?

'Cool' Singapore

Mr Chairman, the Singaporean brand name is known to be good but it is very rarely known to be "cool". And yet, in the next day's career development, being "cool" is important in justifying greater returns for our goods and services.

If we were to go to any Southeast Asian country and we buy a leather wallet, if it costs $2, we want to bargain until it is 50 cents. But if you go to Milan and the same leather wallet costs 200 Euro, we happily pay the 200 Euro and say how wonderful that particular wallet is. Why is that so? Because the Italians are seen to be "cool" and the Southeast Asian is seen to be not as "cool", not because the Italian bull is anything better in producing leather that is Southeast Asian variety. The same goes for McDonald's and Starbucks, vis-a-vis the equivalent of paus and coffee produced in our local coffeeshop. It is all a matter of being "cool".

If we look at certain other countries, for example, like Korea, if you look at Korean films 30 years ago - I have looked at some - it had only two themes. It was either Korean war or some sad stories in a family that everybody dies. But today, Korean films are very different. It has created a very "cool" image of Korean culture and the Chinese here call it "han liu ". I think it must have facilitated the value of Korean brands. So I think it is more "cool" to own a Korean-branded car or Korean-branded handphone.

Sir, the point is this. In order to make the Singapore economy continue to grow, we need to create a "cool" Singapore image. But to create a "cool" Singapore image, we need to do quite a bit of homework. We need to reinvent ourselves, we need to change, we need to be able to come to terms with our own feelings and able to express it confidently. We must be able to accept other people's viewpoints and values even if we do not quite agree with them. We must accept that there must be a certain amount of untidiness even chaos because, like what the Asian sage says, "pure water will produce no fish", ie, "qing shui wu yu". And we must also be willing to be patronage of arts, willing to buy books, to pay good money to see good performances of the local variety. I know if Pavarotti comes, we can pay $200 for one ticket because he is "cool". But for local traditional operas, we have to give tickets away and plead with the people to come. If that continues, we are going to kill our own culture.

So, I feel that we have to develop a "cool" Singapore image, but I think I am not that pessimistic, because if we look at our younger generation, ie, my children's generation, they are more expressive, willing to share, willing to scream more and they really are charming and charismatic. We are also going into Arts School and various varieties to give values to arts, both visual and performing. But like what my parliamentary colleagues have also shared, we need a more coordinated effort in order to make Singapore really "cool" in the next generation.

So could I propose that MICA lead an effort, maybe with participation from other Ministries and agencies like MTI, MOE, MCYS, to look into how we can create an environment to facilitate a "cool" Singapore, perhaps in the next five to 10 years. This is not something that can be created overnight but I think the society is already changing in that direction. All we need is for us to work together, to search our soul, to discover our soul, to discover other people's soul, and be really "cool" about it. It is about environmental change.

Mr Chairman, Sir, I thank all the Members who had spoken on MICA’s programmes for arts and culture. I believe that most of them have observed that Singapore is now a much more vibrant place when it comes to arts and culture. Before I respond to their specific queries, allow me to provide this House with an overview of MICA’s strategy for promoting the arts, culture and heritage in order to achieve our vision of Singapore as a Global City for the Arts.

Sir, six years ago, we launched the Renaissance City Plan (RCP) to develop the people side of the arts and culture as a necessary complement of our investments in the hardware side, ie, the arts and cultural institutions, the performing space, the museums, the galleries, etc. We set out to build a strong and creative cluster of arts and cultural practitioners and also to grow audiences. We have invested in many new facilities. But if we do not have growing audience, then the investments would have gone to waste.

Have we succeeded? The answer is yes. We have made progress, but like many other things, there is still a lot more work to be done. Today, Singapore has a much more lively arts and cultural scene as observed by many Members. While it is not easy to measure the level of success or the actual level of the vibrancy, let me just mention three areas for illustration.

Last year, there were over 6,000 art performances and exhibitions. That is nearly 16 events a day. So, in fact, many people have said they have a great difficulty deciding which one to go to. There were so many things happening on the same day, particularly in major festival months like in June where we have the Singapore Arts Festival. So many events are happening, almost 300 events during the SAF. There is a lot of vibrancy and a lot of activity. This number of arts events was, in fact, more than double that in 1999 before we launched the RCP.

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A second indicator is the number of registered arts companies and societies which has now reached 670. This is an increase of 45% over the same period. It is not just the numbers which matter, but the quality as well. The Singapore Symphony Orchestra, Singapore Chinese Orchestra and Singapore Dance Theatre have all acquired international reputation. They performed overseas and they have got a good standing among the international performing arts circle. Our theatre groups, such as TheatreWorks, Wild Rice, Finger Player, Drama Box and Toy Factory have also received acclaim both at home and when they perform internationally. So we have developed a growing number of quality arts companies that do us proud.

Our local arts audience has also grown significantly. A recent NAC survey showed that one out of three Singaporeans participated in at least one arts and cultural activity a year. Ten years ago, it was one Singaporean out of 10. We can say that the increase in arts audience is almost three-fold over the past 10 years. Since 2002, ticketed arts attendances have crossed the one million mark. In 2005, museum visitorship crossed the two million mark. These indicators suggest that the Renaissance City Plan's effort to grow the arts audience has certainly yielded good results.

Even more encouraging, we see strong audience growth among younger Singaporeans, and this is something which is very important. Because many visitors whom I have interacted with in the arts and culture area, when I bring them around to some of our performances, often, they observed that among our audience, there were a lot of young people. They say that back in their home countries, whether it is somewhere in Europe or Australia, most of the audience are actually older people. This is a significant difference. It augurs well for the arts scene in Singapore that we have a growing number of young people who are interested in the arts.

NAC’s Arts Education Initiative has resulted in more than 60% of the student population participating in activities such as attending arts performances, attending workshops on the arts or visiting arts institutions. These programmes will continue. We will continue to reach out to our students to ensure that they get a good grounding in the arts and gain interest in the arts.

Sir, we can be proud of our vibrant arts scene. The provision of special funding amounting to $10 million per year between 2000 and 2003, and the funding which was increased to $12 million between 2004 and 2006 under the Renaissance City Plan actually enabled MICA to achieve these results. But this is only the beginning and, as I said, the mission is far from accomplished. We have to chart new strategies and initiatives to maintain the momentum. For this, I am pleased to inform this House that MICA will allocate $15.5 million a year for the next phase of the Renaissance City Plan.

Sir, the new phase of the Renaissance City Plan is not just about additional funding, although obviously funding is very important for the arts. There is always a question of money not enough and funding is always uppermost in the mind of the arts groups and the companies. More importantly, we will now focus on a 3P or public-people-private partnership approach in implementing arts programmes. We will build on the strong foundation already in place to galvanise the many stakeholders in Singapore. These include artists, arts companies, community and grassroots organisations, corporate sponsors, cultural entrepreneurs, the creative industries, private museums and collectors, to name a few. We will leverage on the diverse pool of expertise, networks and resources to enrich and charge up the arts. Our aim is to cultivate a greater sense of interest and, more importantly, ownership among all Singaporeans for what happens in the arts and culture. Allow me to elaborate, Sir.

Firstly, the National Arts Council will engage more industry partners to champion and support the creation of new content. This is an important area. We must continue to expand our repertoire, as I said earlier. The NAC is already commissioning new work and encouraging our artists and arts companies to venture, to experiment and we will continue to support them.

The National Heritage Board (NHB) will also explore collaborations with private museums, heritage organisations and private collectors. Over the years, we have seen the emergence of private museums which enrich our network of heritage institutions. I do not know how many Members have visited this incredible museum called the Nei Xue Tang, along Cantonment Road. Nei Xue Tang is an excellent museum showcasing Buddhist artefacts. It is a private museum belonging to a private collector who has generously opened up the museum for public viewing, to share his collection with the general public. If you have not visited it, it is well worth a visit.

There is also an excellent museum called the MINT Museum of Toys. It is a whimsical and nostalgic collection of toys. So we have diversity in our museum landscape. In fact, our museum roundtable has 43 members. There are 43 museums, both public and private, in Singapore offering a great deal of diversity in cultural and heritage collections.

In the next phase of the Renaissance City Plan, the National Heritage Board will pilot a programme called Heritage Development Assistance Scheme with selected partners, to promote greater diversity and inclusiveness in showcasing our rich multi-cultural heritage. This is to work with the private museums to help them to grow and develop, so that they can contribute to enriching our cultural landscape.

Secondly, we will now aim for a more dynamic and diverse ecosystem to support our artists and arts companies in their internationalisation efforts. For example, last year, we organised the inaugural Singapore Biennale. The event attracted more than 800,000 local and international visitors. The local and international media gave many positive comments on Singapore's visual arts scene and the new artistic buzz in Singapore as a result of the Singapore Biennale. The exposure had resulted in several Singaporean artists, who participated in the Biennale, being invited to participate in overseas art shows. The next Singapore Biennale will be staged in 2008. But this year, we will organise the Singapore Art Show to promote and celebrate the works of our local artists.

Finally, MICA will step up our efforts to build a strong sense of community and personal engagement in the arts and culture. Dr Teo Ho Pin asked about the involvement of the heartland community and corporate sector in arts outreach. These are important issues. Last year, NAC organised more than 100 free arts events under the ArtReach banner. Also, NAC signed an MOU on Arts Cooperation with the People’s Association to support community art. This year, NAC will organise more District Arts Festivals in collaboration with the Community Development Councils. This is part of our arts outreach programme. We will bring the arts to our heartlands' aunties and uncles and our youths, so that nobody needs to miss out on the vibrant arts scene.

NAC and the Republic Polytechnic will also jointly develop a regional arts centre in Woodlands, to allow both students and the local community to enjoy, participate in and take ownership of major arts activities in their community.

On the corporate support side, MICA has also worked closely with the corporate sector to reach out to the community through popular arts activities. Over the years, sponsorship for the arts has averaged $30 million or more annually. We have encouraged private philanthropy and corporate sponsorship through a variety of financial and tax incentives. In the next phase of the Renaissance City Plan, MICA and our agencies will continue to explore ways of promoting people and private sector cooperation to support the arts.

Miss Penny Low and Ms Irene Ng enquired if Government had considered developing a more vibrant arts and cultural district. One of the ideas of Dr Teo Ho Pin was whether we could have a national gallery, about making Orchard Road a place to display artworks. I would like to say that, today, we already have the foundations of an Arts and Heritage district. The foundations are already well established and in place. In fact, if you look at the city, within an area of about three square kilometers, we have the iconic Esplanade - Theatres on the Bay - we have the Empress Place cluster comprising the Asian Civilisations Museum, The Arts House at the Old Parliament, Victoria Theatre and Victoria Concert Hall. At the nearby Bras Basah area, you will find the recently reopened National Museum, the Singapore Art Museum, the National Library and Drama Centre, and soon-to-be re-opened Peranakan Museum at the old Tao Nan school along Armenian Street.

The Montemarte in Paris and Covent Garden in London, mentioned by Miss Penny Low, are great examples of world-class arts districts. Everybody knows about them. Every tourist makes a bee line for these places when they are visiting these cities. But we must remember that these famous places were developed over many decades, if not, hundred years or more. It takes time to establish such reputation, recognition and also to accumulate the critical mass of activities that will attract people on a permanent basis.

Our Arts and Heritage District is still in the early stage of development. But it is already a showcase for our creative talents and rich heritage as well as a focal point for Singaporeans and international visitors to learn about Singapore's arts and Singapore's creative works. For a start, MICA has recently spearheaded a multi-agency national branding effort to promote and raise awareness of the Arts and Heritage District. Hon. Members may have noticed, when they drive to Parliament, the colourful buntings on lamp posts along the streets which advertise the arts and cultural district.

Ms Irene Ng spoke about the project to convert the former Supreme Court building and City Hall into a National Art Gallery. Let me say that the National Art Gallery will certainly add another iconic attraction to our Arts and Heritage District. The project is under way. An international architectural design competition has already been launched, to seek out the best ideas and design for the Gallery.

Ms Irene Ng asked if MICA would consider developing underground linkages to link up the various cultural institutions in the District, and she painted a very exciting and engaging scenario of what it can be when the whole place is connected up, and many activities are happening and flourishing at the same time. I support that vision and I agree that this is something that we should be striving for. In developing the National Art Gallery, MICA will explore with URA and potential private sector partners on the feasibility of such linkages, both underground and at street level, in order to facilitate access to the National Art Gallery, linking to the Esplanade and the Empress Place cluster.

Let me now turn to another aspect, which I think would complement our whole development for arts and culture, although Members have not actually touched on it, and this is really on the provision of library service which is a very important part of MICA's mission. Since the launch of the Library 2000 Plan, we have built one of the best public library systems in the world to cater to the reading and learning needs of Singaporeans.

I am pleased to take this opportunity to inform this House that MICA will invest $100 million to further improve library services and support life-long learning under our Library 2010 Masterplan. This is a 5-year plan to build-up digital content and capabilities of our libraries to deliver real time information and knowledge services to Singaporeans at all stages of life. It will also serve the research needs of businesses and organisations in creating new products and services to help drive our economy forward.

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Let me turn to Dr Fatimah Lateef's question about the development of the Arts School. We had earlier estimated the total development cost to be about $100 million.

However, with the upsurge in construction activities and cost and some changes to the design of the Arts School, we expect the development cost to rise. We are in the process of seeking funding approval to cover the additional cost and we expect to be able to launch the construction soon. In the meantime, for this financial year, we have set aside about $16 million or 3% of MICA’s total budget to be used for the pre-operating expenses. We are in the process of recruiting faculty members. We have already recruited the principals and heads of some of the departments. We are in the process of building up a team, developing the curriculum, so the pre-operating expenses are already mounting up. We have set aside about $16 million of MICA's budget to finance these pre-operating expenses. MICA’s budget for the project will also be supplemented by generous contributions from the Tote Board towards the capital cost for the project. We have actually completed the piling work for the project and we will be launching the construction of the school building itself and expect the construction to be completed towards the end of 2009.

In the interim, the School will open as planned in January 2008 at a temporary campus at Goodman Road. This site will soon be vacated by LASALLE-SIA College of the Arts. MICA will embark on the necessary renovations and improvements to ensure that the interim campus is well equipped and conducive for the students’ needs.

Dr Lateef also enquired about the disciplines offered by the School. When the School opens in January 2008, it will offer a six-year curriculum, equivalent to through-train Secondary and Junior College education. Students will be able to develop a strong inter-disciplinary foundation in the arts, together with other academic subjects such as English, Mother Tongue languages, Literature, the Humanities, Mathematics, Science and IT. They will also develop a specialisation in music, dance, theatre or the visual arts, and they will graduate with the widely-recognised International Baccalaureate Diploma which will enable them to enter universities and other tertiary institutions in Singapore and overseas.

The School will admit up to about 300 Year 1 and Year 2 students in the first group in 2008. I am pleased that the School has received positive response from parents and interested students. 403 students signed up for its first Talent Academy in November last year, and, to date, another 390 students have already signed up for auditions in March and June this year. To attract the best young talents and to provide adequate support for all deserving students who require financial assistance, the School will launch a bursary and scholarship fund this year.

Sir, the progress we have made in the arts, culture and library services underscores our emphasis to promote arts and culture in Singapore and to develop our ”soft-power”, which Mr Chan Soo Sen has pointed out is an important aspect of our overall national development. "Soft power" will certainly contribute to a Singapore brand.

So MICA, in fact, has launched cultural diplomacy programmes, such as the Singapore Season in London in 2005, and, as I mentioned earlier, this year, we will do so in China (October to November). We will launch the Singapore Season in China - in Beijing and Shanghai - to promote cultural relations and also reinforce awareness of the arts and creativity in Singapore. Major international events involving the creative industries, such as the Asia Media Festival and the Singapore Design Festival also enhance mindshare of Singapore among our global partners. International publications such as the IHT, Newsweek, Time magazine have all reported on the changing arts scene in Singapore. Many have noticed the new buzz in Singapore. Last year's inaugural Singapore Biennale alone attracted more than 400 media reports, mostly with favourable remarks on the arts in Singapore.

MICA is also working with the Ministry of Trade and Industry on the National Marketing Action Committee to develop a whole-of-government effort to market and promote Singapore internationally. This will address Mr Chan Soo Sen's suggestion that we should have an inter-ministerial group, to better promote Singapore, particularly to promote the 'cool' image of Singapore. The National Marketing Action Committee will be working on this.

I believe that our arts and creative programmes will change the way we look at ourselves and how others perceive us. But will we be perceived as "cool" - that is something we should leave to others to judge. Based on the Country Brand Index released by global branding consultants FutureBrand, which I believe the Second Minister for Finance mentioned in his round-up speech to the Budget Debate, in November 2006, Singapore was second on the Nightlife/Eating and the Shopping categories and ranked ahead of USA, which is a country that people generally perceive as being ‘cool’. Incidentally, yesterday, the Today newspaper reported on the launch of the Singapore Edition of the World's Best known arts and culture magazine called "Time Out". With this launch, Singapore joined 17 other cities, including London, Paris, Barcelona, New York, Beijing, Shanghai and many others, to have a local edition of "Time Out" magazine. The Singapore editor of "Time Out" magazine, Miss Billie Cohen, who was the "Time Out" New York editor for nine years, was reported to have said - this is the report [indicating ] - and I quote: "Singapore is such a city on the edge with a vibrant, creative community. Your city is such an international city that is now making its mark on the world map." So maybe we are 'cool', but I think there is still a lot of work to do. To gain recognition, acceptance and also perhaps even a premium for designed-in-Singapore products, for created-in-Singapore cultural content, and media content, these are areas that we have to continue to work on and we have to ensure that whatever we do, we will receive greater acceptance and be even more welcomed in the global market.

To sum up, Sir, let me assure the House that MICA will not spare any effort in our plans and strategy to transform Singapore into an even more vibrant, exciting and attractive global arts city.

Intelligent Nation 2015

Sir, a sophisticated IT infrastructure has helped Singapore to stay on the cutting-edge of information and knowledge acquisition. It has also increased transparency and productivity. However, while our e-Government is still lauded, our ICT infrastructure has begun to lag behind countries like Korea. The iN2015 plan therefore is laudable. Laying the hardware, however, is only useful if this infrastructure can also serve as collaborative platforms for the people, public and private sectors. The iN2015 should target to be a web 2.0, a truly integrated and collaborative platform where individual, businesses and the Government can interact to exchange ideas, transact and even work on projects together. In other words, it has to be useful, appealing and also relatively cheap to adopt.

Driving adoption rate will also be paramount to ensuring that the iN2015 does not become a white elephant, as in the case of the Singapore One Project. Currently, the adoption rate observed amongst our local SMEs is less than ideal. The key focus of MICA and IDA should be to review and look at developments of adequate and attractive software applications that fit the needs of MNCs, SMEs and the people sector, meaning the NGOs as well, so that what is needed to drive the broadband adoption is put on top of just building another ultra high-speed broadband infrastructure where we already have one today. In fact, as we replace our ICT expressway with a superhighway, how can we make it accessible, attractive and ERP-free - I mean, affordable. So to drive broadband adoption, I think we need to understand a few factors.

What are the killer applications that help SMEs and NGOs to drive business productivity, lower their costs and help them reach out to other markets at regional and global levels? How do we make these applications affordable for them and also ensure that they can be supported if they run into issues? How can we also enhance the horizontal and vertical integration of these applications?

Are there e-communities that businesses can already integrate to help them provide better interactions with their customers, suppliers and partners? An example of this would be a web portal that links manufacturing companies to logistics firms to finance companies in a secured and private network such that these businesses can transact more efficiently. We can perhaps take a leaf out of the European umbrella strategy for developing information and community technology called the I2010 plan. Applications include provision of financial incentives like consultancies, vouchers, creation of neutral one-stop shops to provide information on the benefits of ICT usage in case studies, encourage higher adoption rate by the European ICT SMEs by simplifying public procurement requirements, and so on and so forth.

On the people sector, how could iN2015 be served as a platform to meet the needs of this sector and cultivate a more inclusive society? On visiting the iN2015 website, all have been talks about the benefits and wonderful experiences that ICT can bring, but none on education and engaging all sectors to participate in the development. I think we have to talk more than just about the innovation - the 3Is, which is the innovation, integration and internalisation - but also talks about the 3Es, which is educating the SMEs and individuals, empowering all to use ICT in their daily life and enhancing the experience of using ICT.

To conclude, a customer-centric mindset could do wonders for us. Specifically for iN2015, more efforts in fostering higher ICT adoption rate amongst the micro, especially the smaller SMEs, and infusing an innovative ICT culture for the entire SMEs and people sector would be essential.

Sir, I support the Ministry's investments in the interactive and digital media sector and its iN2015 masterplan. However, building an industry that is supported by a resilient, creative workforce needs more than just hardware, business transplants and talent imports. Based on industry feedback, I would like to raise two main concerns with regard to how we implement this masterplan to achieve the desired results and more in the next eight years.

First concern: what kinds of returns on investments can we expect from the large expenditure for iN2015? Can we expect quantum leaps in productivity, innovation, growth or differentiation of our end-user industries such as banking, manufacturing, logistics, retail and communications. The iN2015 has to be more than just higher speeds and more wireless broadband access across the county. Singapore has ready access to the top technology providers of the world. However, one main issue we continue to face is the differences between the rate at which the Government introduces them and the rate at which our industries and consumers adopt them as well as the rate at which these technologies actually mature and when they go obsolete. For example, the introduction of 3G licences in the telecommunications sector a few years ago, till today, we have not seen a quantum leap in subscriber adoption nor compelling sets of services that drive usage. Yet, we have already moved on to 3.5G and Ymax.

I certainly hope that we are not merely investing to keep pace with our performance ranking on the global index and get too far ahead of the demand curve. Perhaps it is not a lack of technology that is an issue, it is a lack of adoption by our consumers as well as our businesses. Many fail to capitalise on technology to optimise their businesses, innovate and differentiate themselves in the marketplace. Thus, MICA should then put much more efforts and investments to ensure that if we invest in this and other iN2015 initiatives, we need to put in more to drive adoption. To boost adoption for local businesses, perhaps the Government could invest in more shared services platforms for various industries with subsidised low-cost subscriptions to bring world-class capabilities and innovation that local businesses would have otherwise had difficulty developing on their own. For example, today, IDA promotes the radio frequency identification or RFID type adoption. I think we can accelerate this through shared services. Imagine if we created a shared service platform for logistics businesses with RFID tracking capabilities, then through the platform, you can provide data mining capability that enables SMEs to track the movement of its shipments, analyse the data, and optimise its processes and inventory.

So what is the impact? Now you can enable our local businesses to leverage on technology innovation

the same capabilities. Top-class companies, like DHL, already have today with such infrastructure. It uplifts the general capability of your industry, even the smaller players. On their own, they may not have had the expertise or funds to do this with the same desired outcomes.

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As a concerted measure, the Government can subsidise the shared services cost upfront. Let us not penalise the early adopters simply to show for quick ROIs for the infrastructure. Imagine if we did the same in the retail sector to provide shared services application, such as in store touch screen catalogues and artificial intelligence, same as those seen in Japan and other shopping capitals, the possibility is endless. But this is not a new concept. The Government has done it quite successfully itself and leads the e-Government space. However, I suggest that shared services for the industries should be run by private sector expertise that understand the industry better and anticipate and drive demand.

The second area of concern is boosting talents and creating a more resilient workforce. Now, most infocomm workers fall in the PMET category which I spoke about in the Budget debate and face low cost competition as barriers to entry for professionals and technicians are low. Technology management and development can be performed anywhere in the world. Because technology also becomes obsolete quickly. The industry often finds it cheaper to outsource or employ foreign talents with the latest certifications.

The challenge for MICA is to move our professionals up the value chain from the sales persons, management to the technicians. Today, much of our efforts are focused on certification and project management skills. If necessary as a foundation, these skills are no longer differentiators for our professionals. The Second Minister Dr Vivian spoke at the SITF forum recently about the need for more business strategies and technologists in the infocomm sector. I think this is a move in the right direction. However, I believe this can only happen by driving a mindset change across the industry.

Today, the industry is very much driven by activities in system integration, maintenance contracts or reselling of commodity hardware and software. We need to make our infocomm professionals more attuned to the industry, identify how growth or productivity can be derived from technology. We need to help our professionals change from a cost-centred mindset to one that brings strategic value to their companies. To achieve this, MICA has to encourage or even incentivise companies to invest in high-value training for the infocomm professionals, such as business strategy, industry solution and branding, privatisation, intellectual property protection, marketing and even management.

On the other side of the coin, MICA also needs to engage our business leaders better, particularly, the SMEs on getting the best value out of technology and how to exploit the talents of the IT professionals. As DPM Wong pointed out yesterday, it is increasingly difficult to find middle-management for our economy. And this is also true for the infocomm sector based on feedback. Hence, even more so, the time is right for us to groom our own infocomm PMETs to fill these gaps.

Infocomm Sector

Sir, I move on to my second cut with regard to SME development in the infocomm sector.

Sir, the Government has put in place sound policies and rational approaches to develop the infocomm industry. However, based on feedback from local SMEs and industry service providers in the sector, the ground reality leaves much more to be desired. I cite some areas I hope we can improve as we develop our local infocomm businesses.

We often see two thrusts in the development of the enterprise eco-system, that is, (a) enterprise attraction; and (b) local enterprise development. Our success in enterprise attraction has been excellent. Even, recently, Google, as DPM Wong pointed out yesterday, has set up its base here. But local infocomm SMEs have it tougher, given little room for business development, limited access to local venture capital where it almost seems certain that they are likely to succeed overseas than in Singapore. Almost from an outsider's point of view, we seem to suffer what we have been talking quite a bit lately about the Singapore Girl effect. We embrace the big ang mo companies, while locals get the second class treatment. I think what we need is to transplant our enterprise attraction, pro-business, risk-taking culture, through the local enterprise development efforts across Government agencies. Agencies like EDB and JTC are often seen to be ahead of the curve in the way they embrace businesses and help develop ventures. Perhaps, more departments and other agencies should be given the same empowerment and higher risk tolerance.

Earlier, I mentioned that many local infocomm businesses feel as though opportunities are limited here, that they are more likely to get capital and business opportunities elsewhere, such as Korea, Taiwan, or even Europe, which companies, such as the former System Access, had done before it was acquired. Then perhaps, if this were the case, would it be better for the Government to move in this direction with the same enthusiasm and support as how we attract global enterprises here? MICA then should do more than just showcase our talents overseas, but create a system of matching agents, specifically at targeted infocomm venture capitalists in key cities. When I said, "agents", I do not mean Government agencies. Employ private sector expertise to drive this. How would one know which business model to pick if one has not had any experience as an entrepreneur or venture capitalist? How can one develop programmes for SMEs to generate a million dollars a year or a hundred million dollars a year, if one has not done it himself? Employ top local business development agents to match enterprises overseas - people who truly know the ground and are very well connected. For this to work, we need a civil service that is able to manage its risks better and as a result, be more confident or be more risk tolerant.

Many companies I have spoken to often cited the lack of opportunities to innovate back home. For example, while Singapore ranks top in the world for its e-Government infrastructure, many of our SMEs have difficulty in citing e-Government experiences or projects that they have done in Singapore when they are exported overseas. Are they not having enough opportunities back home, even in areas where we are supposedly strong in? If I took e-Government, again, as an example, perhaps we should then put a cap on the minimum size of projects large companies can bid for to allow SMEs, the middle sized ones, a chance to grow, say, projects of about $500,000 and below. The big boys, including the local ones, should then focus to value add and drive innovation in our high value projects. Of course, the Government may reply that if the SMEs fulfil their requirements, today, they will be given the advantage. The truth of the matter is, would the civil servant on the ground dare to take such a risk? It would certainly be safer for them to choose a large MNC, or even one of the GLCs, to serve these smaller or even medium sized projects. Thus, there is likely a gap between policy stand and what happens on the ground.

So I echo Mr Teo Ser Luck's call during his Budget debate for the civil service to be more risk tolerant. Let us give our SMEs and mid-sized companies, even the global ones that we are trying to attract, a chance to grow. With more local experience, they too would have a better chance in the marketplace and overseas and, hopefully, this risk tolerant culture will spread to the other industries.

Interactive Digital Media

Sir, recently, the National Research Foundation has announced the disbursement of $500 million for R&D for the interactive digital media industry. This is good news. May I know what is the intent of such a funding? Could MICA elaborate on the strategy to further enhance this sector?

Traditionally, Sir, resources are channelled into developing cutting edge infrastructure and expanded bandwidth. Presently, what is lacking in the market are relevant content and friendly useful applications. Could resources be strategically allocated to research and development, useful content for both the private and people sectors to accelerate the adoption of ICT?

Sir, as the question that I was about to ask is relatively similar to what the previous speaker has just said, I will just go ahead to my question. In the area of interactive digital media, could the Ministry please share with us the progress and disbursement of the fund that has been mentioned earlier thus far? What has the take-up rate been and which are the areas of focus? And, also, finally, how many IPs that have been created are online for this?

Sir, let me first thank hon. Members for their very pointed queries which give us a chance to set the record straight or to take their ideas on board.

First, let us talk about the the Intelligent Nation 2015. This is our infocomm masterplan. This was announced by IDA in June last year. We intend to invest $4 billion into this sector, not a small sum. Over the next 10 years, we believe this investment will transform the way we live, the way we work, the way we play, the way we make a living.

Miss Penny Low has asked quite rightly about the state of our infrastructure relative to other countries. Today, we have a pervasive, good broadband infrastructure in Singapore. For instance, if you look at home broadband penetration rate, today, it stands at 63%. We expect that this would go up to 75% by the end of the year. And we target that, by 2015, 90% of homes would have broadband access. This did not come about by accident, but because of foresight and plans which were laid more than a decade ago. But this investment puts Singapore, as far as our infrastructure is concerned, in the forefront of the development of a knowledge economy, which we reap today. But I will be blunt with all of you and say that this is a dynamic moving situation and other cities have not stood still. We are all aware of the developments in Seoul, Tokyo, Hong Kong, Shanghai and Hangzhou, which have already started to implement their own ambitious ultra high-speed broadband networks. Therefore, we cannot afford to sit still.

In this day and age, broadband infrastructure is not a luxury. In fact, it is probably in the same order of magnitude as the pipes and the sewers that run under our ground in order to support our economy and our lives. Against this backdrop of keen competition, we therefore have to plan for the future but, because the Ministry of Finance always overlooks and oversees us, we have to promise to do so, and, in fact, all of you promise to do so, in a cost-effective and efficient way.

We have already started on this. Let me give you some examples. In December last year, you may be aware that we launched the first component of our Next Generation National Infocomm Infrastructure, and this first component is what we call Wireless@SG. With this infrastructure, we provide free access to some 1,300 hotspots across Singapore today, and the number of hotspots will increase to 5,000 by September this year. But Wireless@SG is not just to gain headlines. It has to benefit both the individuals who use it and, perhaps, just as importantly, to businesses and SMEs that Mr Zaqy spoke about. Many of you will recall the Straits Times' article just before the New Year in which even a bak kua seller in Chinatown is making use of Wireless@SG to run his wireless point-of-sale terminals so that he can conduct sales literally on the five-foot way, on the pavement, or even outside the shop.

Complementing the wireless component, of course, is now the next enhancement of the wired component of broadband infrastructure. We envisage that the next generation broadband infrastructure will provide symmetrical 1 Gbps access for all businesses and homes that subscribe to it. We also intend to ensure that this will be an open access architecture, so that we will have the same competitiveness which you currently see in the mobile telephone market in order to keep prices as low and as affordable as possible. Because, as many of you have already observed, it is pricing which also determines uptake. This, we believe, will lead to the development of diverse new services for both businesses and individuals. We conducted a Request-For-Concept exercise last year and 33 big and small companies responded.

Later today, IDA will announce the shortlist of pre-qualified applicants who will participate in our upcoming Competitive Dialogue in order to take this project on to its next phase.

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But I agree entirely with Members that pipes, broadband and hardware are just one part of the equation. Ultimately, we need to fill those pipes with applications, services and to develop platforms for the people, private and public sectors to interact and transact on a day-to-day basis, because that is where value gets created. Let me cite some examples.

The Government has taken the lead on this. We know that mobile telephony has a penetration rate of 103% in Singapore, ie, many people have more than one handphone account. What we have done is to transfer as many e-Government applications as possible onto these mobile platforms and today we have counted that we have about 150 Government services available for mobile transactions. By 2008, we expect that there will be 300 mobile Government services. This will include whether you want to discover where is the next big event, pay taxes or fines, and hopefully other more pleasant interactions with the Government. The Government has to use this, again not to gain headlines but because we believe that, when the Government takes a lead in this, we can set standards, develop platforms and help private-sector companies, to whom we outsourced these applications, to develop IP. This then becomes available to benefit the individuals who transact these services and the businesses which will use these services. So I agree entirely with the suggestions by Mr Zaqy Mohamad that the Government outsources. This is another source of business for our SMEs.

Having said all this, it is also important to remember that, as a Government, we must ensure that we build an inclusive digital society, which means nobody gets left behind in the digital space too. Whether you are rich or poor, young or old, able or disabled, we must make sure that you have the hardware, connectivity, education and options to tap the many, many opportunities that this sector will generate in the future. I will give you some examples.

IDA has the New PC scheme which is basically a subsidised computer ownership programme. Between April and December last year, close to 1,900 households benefited through this scheme by getting the subsidised computer. But, today, we realise it is not just about a computer. You need broadband access. So we launched the programme in November last year to provide subsidised broadband access to some 10,000 needy households, focusing especially on those with school-going children, because we believe that, in these specific instances, this is not a luxury or entertainment but essential for education. By 2015, our goal is to see that 100% of households with school children will have both computers and broadband access.

For those who are perhaps older or, for whatever reason, less comfortable with computers, we have launched a series of CitizenConnect Centres. Some of you may have seen that in your own Community Clubs. This is basically a sort of a kiosk in which an elderly person or a person who does not have a computer or connectivity at home can use. If he needs help, someone will hold his hand, show him or her how to use it to transact with the Government. But the larger objective is educational, that they will use the computer and that they will know that it makes a difference to their daily lives.

Let me now focus a little bit more on the SME point. I want to assure this House that we give equal opportunities for all suppliers who are bidding for Singapore Government contracts. And local SMEs have a fair shot at winning Government contracts in open competition. Let me cite some statistics.

In FY2005, 116 out of 196 contracts were awarded to local SMEs for Government ICT tenders of value less half a million dollars. So there is no need to create artificial insulation or protection. Our SMEs are well capable of competing and winning contracts. Have a little bit more faith in their ability. Since 1st July 2004, the Government has also taken the position - and this is significant - that all Intellectual Property (IP) developed by our outsourced agencies and by SMEs, when they are participating in any Government ICT contract, this IP will belong to that company, unless there are very clear strategic reasons for Government to retain ownership of that IP. Why do we do this? Because, having given you an opportunity to participate in this, you have developed an application, an idea, we now want you to be able to take this idea, service and product to the local market and, better still, the global market beyond. Again, we are putting our money where our mouth is, and we are saying, take this IP, which you have worked with us, to develop, and exploit it fully. IDA and the Singapore Infocomm Technology Federation (SiTF) are still engaged in further discussions on how we can make other improvements to our contract terms and conditions for SMEs and the other companies participating in Government ICT contracts.

But the Member has also quite rightly said that we do want our SMEs to grow globally. The Singapore market, on its own, is too small. We have several schemes to support our SMEs, eg, the infocomm Enterprise Programme (iEP) which enables smaller companies to develop reference sites and to build their IP. We also have the Overseas Development Programme, the infocomm Local Industry Upgrading Programme (iLIUP). All these, as Mr Zaqy has said, help to promote and facilitate partnerships between MNCs and our local infocomm enterprises and help them to acquire technology, gain access to markets and also gain track record. For instance, Friartuck, a local company, partnered with Fujitsu to successfully out-compete international players to snag a very significant deal recently with the National University Hospital. Since 2002, infocomm Local Industry Upgrading Programme (iLIUP) has helped to develop 400 products or solutions and train more than 1,000 IT professionals.

I also want to spend a little bit of time talking about IT professionals. The Member is quite right. If our IT professionals stay still, ie, just on the basis of their qualifications which they obtained five or 10 years ago, they are in very great danger of being crushed by the forces of globalisation, eg, the PMETs, which many Members have spoken of over the past few days. So we need to make sure that our IT professionals are able to upgrade themselves. And this is a significant number because, today, we have 111,400 IT professionals in Singapore. In fact, our target is to expand this number by a further 80,000 people. We need to make sure that these almost 200,000 people will continue to be globally competitive and be able to get good jobs and have a good livelihood in the decades to come. How will we do this?

IDA has set up the Critical Infocomm Technology Resource Programme (CITREP). This is basically a way in which local professionals will be able to obtain financial assistance in order to upgrade themselves, and we have committed $53 million since 1996 to fund some 35,000 training places. And I will give this House the assurance that we will continue to fund this programme to ensure that upgrading opportunities will exist for our IT professionals. But it is not just for the Government to do so because, as the Member has also quite rightly said, this is a fast-moving field. The developments occur in the industry itself. So it is better that the IT professionals themselves take charge of their own professional upgrading.

We therefore helped to establish a National Infocomm Competency Framework (NICF) and a National Infocomm Competency Academy (NICA) will basically build a consortia, consisting of the Institutes of Higher Learning (IHLs) and industry experts, to make sure that there are industrially relevant courses and upgrading opportunities. So we will work on this.

We will also continue to invest in our youth. Last year, MICA unveiled a $120 million Infocomm Manpower Development Roadmap with a particular emphasis on Student Outreach, to help develop infocomm appreciation in the first instance but to encourage innovation and capability amongst young people who ultimately can become infocomm professionals. For example, we have 110 Infocomm Clubs established in both primary and secondary schools, with more than 5,000 students currently enrolled as members.

We have also expanded the National Infocomm Scholarship. It is now supported by 20 leading employers who offer these scholars global industrial attachment opportunities as well as taking them on as employees subsequent to their training.

Singapore’s Institutes of Higher Learning (IHLs) must continue to attract their fair share of the brightest and the best into this industry, and we will continue to encourage them to do so and to also have, for example, integrated Masters programmes which will feature tie-ups between local universities and reputable foreign universities, such as Carnegie Mellon University and Georgia Institute of Technology. We currently have ongoing joint programmes with our local institutions.

Sir, let me sum up by saying that we have had encouraging results so far, as far as iN2015 is concerned. We have made global headlines. In the last few months, we have seen a string of CEOs from many MNCs coming here, people like John Thompson, Michael Dell, John Chambers from CISCO, just to name a few. They have come here to look for opportunities, because they know that whatever Singapore says it will do, it is serious about it. Non-IT companies, such as Credit Suisse from banking and DaimlerChrysler, have moved their IT nerve centres to Singapore because they understand that with First World infrastructure, a stable government, a stable regulatory regime and with IP protection, this is the place to be to develop and have their disaster recovery sites, back-up sites, business contingency and continuity sites going. So there is buzz in the sector and there will be many, many opportunities.

It has also benefited the man-in-the-street. For example, Members must be aware by now that broadband prices are falling. In fact, broadband prices have fallen by as much as 37%, just in 2006 alone. Speeds have also been increasing. Some households already have access of 100 Mbps. But the significant drop in broadband prices has fuelled further adoption of services. And 3G subscriptions, which Mr Zaqy enquired about, has increased from 174,000 in December 2005 to close to 884,000 in December 2006. It now comprises about 19% of our subscriber base. Three out of four households have access to at least one computer at home, and it is the norm for our youths to use the Internet and this connectivity as their primary means of communication, gaming, entertainment, gathering information and interaction. So I remain optimistic that these investments that we are putting in place will be used and we will be able to exploit the fruits of these investments.

Let me quickly move on to the two questions on the interactive and digital media (IDM) scene. The Member has quite correctly pointed out that the National Research Foundation has set aside $500 million to invest into this sector. We aim to use this money to increase Singapore's R&D capacity in the IDM space and more than that. It is not just research for research's sake, but so that we can help develop breakthrough products and services which can make Singapore and Singapore businesses more competitive.

We intend to increase the value-added contributions of the interactive digital media space to $10 billion. That will be up from the $3.8 billion in 2003 and to create 10,000 new jobs. At the end of the day, everything which we do here is still about jobs and money, livelihood. I am also acutely aware that there is a need to focus, because Singapore is very small. So at this point, we have decided to focus on four areas.

Animation, games and special effects;

Media intermediary services;

Mobile services; and

Educational services and the use of IDM to further educational opportunities.

So these are four areas which we have decided to focus on.

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How will we make progress in these four areas? First, we have decided that we need to form a global network of research institutions,

both local and overseas, in order for them to focus on these four areas and to see how Singapore can be a useful site to develop ideas and research potential in these areas. Last October, the MDA and Massachusetts Institute of Technology announced the Singapore-MIT International Game Lab which will further global research and develop world-class academic programmes in games technology. We all know that this is a huge growth area. In fact, the market potential for games probably exceeds the potential for Hollywood blockbuster films. This is a big area.

The second way we are doing this is to develop online platforms. We call it i.JAM for short in which people from both research and industry sectors can come together, exchange breakthrough ideas and suggestions and look for opportunities to collaborate to bring these ideas to reality. This is, in a sense, what the Member was suggesting just now that there is a need for constructive and useful engagement and dialogue to occur between the experts, on one hand, the venture capitalist, on the other, Government, on the third hand, and potential users on the fourth hand. We are creating these platforms for dialogue and collaboration.

The third way we are doing this is to position Singapore as the preferred testbed for innovative and commercially-viable IDM R&D applications. We may be a small market, but we are a reference market. And if an application works in Singapore, it has got applicability in other areas in Asia and in the Middle East and, ultimately, at the global level.

The fourth initiative is to encourage further investments by key industry players in the development of new open access platforms. This, we believe, will stimulate the development of applications, products and services on these open access platforms.

These initiatives have received tremendous support so far. We have had 30 IDM stakeholders who have come on board. Our educational institutions have ramped up their R&D efforts. Local institutes have offered a slew of their breakthrough technologies or their IP for further development. But it has only been six months, so I can assure that we have not spent $500 million yet. But we are targeted, we have sorted out our strategies and we have identified our partners. So I would advise Members of the House to just watch this space. This is a place in which I think a lot is going to happen and we will give you a further update next year.

Values and Norms in the e-Arena

The Internet and mobile phones have empowered individuals in unprecedented ways. But it has also brought a lot of abuses and problems - the MRT suicide broadcast, the rise of cyber sex predators, racial blogs, etc, have become quite prevalent.

The OECD estimated that the IPR violations cost the world a whopping $770 billion in 2004. Local surveys by the Fei Yue Community Services have also revealed weak knowledge especially knowledge of the cyber ethics.

The Straits Times also reported that many netizens were not aware of the do's and don'ts and the rights and wrongs in the cyber world. As such, I would like to propose two schemes. One, a cyber literacy programme, something like the financial literacy programme under the MAS where a fund is set aside to improve the cyber literacy of Singaporeans. This can be carried out via PPP efforts at community centres, schools, lunch-time breaks in the companies, etc. Perhaps, the infocomm clubs, mentioned by Dr Vivian Balakrishnan, can also play a key role here.

Two, a code of cyber ethics. Obviously, any voluntary code of ethics could appear ineffective on the surface. However, like the code of racial harmony, it serves as a beacon for behaviour norms and foster the treasured values and ethos of the society. Code of cyber ethics is an inclusive measure to provide strong social acceptance, acceptable norms and behaviours among the netizens beyond the educationist school.

Sir, cyber crimes are not bound easily by any jurisdiction system and neither can the law catch up with it very easily. However, if ethical behaviour could be enshrined in generic principles and further guided by examples and even illustrations via cartoons for easy understanding, then in the long run, the Net community could identify and weave themselves out of ethical predicament and troubles with the law.

Dr Ong Seh Hong is not here. Mr Siew Kum Hong.

Control and Regulation of New and Old Media

Mr Chairman, the Government has repeatedly stated that it regulates the Internet with a light touch. That is commendable and I think also a pragmatic recognition of the difficulties in regulating the online world. But what is a light touch? Can regulation truly be light touch if behind it is the threat of a criminal offence, punishable by a fine not exceeding $200,000, or jail of up to three years or both, with additional fines of $100,000 per day for committing offences?

Sir, that is exactly what our light touch regulation is. The Media Development Authority regulates the Internet through the Class Licence and a breach of the Class Licence will potentially attract the penalties that I have described.

Sir, the MDA's website describes the Class Licence as setting minimum standards for the responsible use of the Internet. I think it goes much further than that. Read in conjunction with the Internet Code of Practice, the Class Licence prohibits, and I quote, "material that is objectionable on the grounds of public interest, public morality, public order, public security, national harmony or is otherwise prohibited by applicable Singapore laws" .

Sir, I would submit that this language is unnecessarily broad and that the Class Licence, in its present form, is no longer relevant or appropriate. When the Government wanted to take action against certain racist bloggers, it chose to charge them under the Sedition Act. That decision surprised many, including lawyers. I myself wondered why the racist bloggers were not charged for breaching the Class Licence. After all, they had posted objectionable online content that would have breached the Class Licence which was specifically created to regulate online content.

Sir, the Government can and will use traditional statutes like the Sedition Act to regulate the Internet and the Penal Code is being updated for the digital age. So I think that the time is right to review the Class Licence 10 years after it was issued, so as to limit the prohibitions to match its existing practice of enforcing the Class Licence against sexual contents. This will avoid ---

Your time is up, Mr Siew.

Regulation of Advertisement Standards

Sir, the arrival of Crazy Horse in 2005 was a milestone in the level of liberalisation in Singapore's entertainment scene. It signals an openness of the authorities in allowing an alternative form of entertainment for paying audiences.

It is unfortunate that the show did not enjoy satisfactory ticket sales and has had its last curtain call on 31st January this year. Various factors have led to the closure of Crazy Horse and one reason quoted was the restrictions on its advertisements. The show was allowed to run its advertisements in selected magazines and in the movie pages of newspapers. The revue could also place only black and white advertisements in the cinema pages of the Straits Times and Lianhe Zaobao, with coloured ones only in The Business Times.

Over the last two years, I note that the mass media, especially the newspapers, has given great coverage on the show with extensive colourful images. Based on a rough count, I believe all the local papers published a total of about 70 pictures of the Crazy Horse performers. I would imagine that the total page area taken by these pictures is far bigger than the total advertisement space that the operator had placed in the newspapers. The media reports, at many times, do achieve the same impact as advertisements. I do not remember that there were adverse reactions from the public on the count of indecency.

I have not seen the show myself, but from what I understand, the Crazy Horse is more a show of colourful lighting than a flesh parade. It was reported that some audience even left disappointed because there was not much to see! Sir, I wonder if the authorities had allowed coloured pictures in the advertisements in the Straits Times and Lianhe Zaobao, how different would they be from those widely used in the articles appearing in the same papers? As the Chinese saying goes, "hao ma bu chi hui tou cao", relaxing the guidelines now is too late to turn back the Crazy Horse, nor am I suggesting that the business will be viable just by lifting the advertising restrictions. I understand that the operator was well aware of the advertising regulations even before it decided to launch the show, and that this was not a case of new or additional restrictions being imposed on the operator after the show was launched.

Having said that, I hope that the Ministry does not then turn the wheel backwards to introduce more stringent rules for pictures in the mass media. I would like to make a point that, in view of more exciting programmes and entertainment advertisements that will come to Singapore as we continue to develop our night life, including the Integrated Resorts, I hope that we can adopt a lighter touch in advertisement regulations, so that Singapore does not end up being too conservative compared with other global cities, and our rules do not become a convenient punching bag for any business failure.

Subtitles for TV News

(In Mandarin): [For vernacular speech, please refer to Appendix A *.] Mr Speaker, Sir, when I was young, I learnt English by reading the subtitles on the TV screen. After watching the Chinese News, I would follow up to catch the English News so as to train my listening skills. Many of my friends who are English educated Chinese Singaporeans told me that they learn their mother tongue by reading the Chinese subtitles appearing on the karaoke TV screen. As they sing along, they will be able to follow the Chinese lyrics and have since learnt many Chinese characters. If we consider both scenarios, ie, if we can have Chinese subtitles on our TV programmes, it will play an important role in promoting the learning of the mother tongue and helping our people in the use of the language.

Therefore, I am most happy to know that our Channel 8 News has already inserted the Chinese subtitles. In this regard, I would like to request if MICA could encourage our Chinese media to display Chinese subtitles and captions during the telecast of all Chinese News bulletin slots. This will help to increase the probability of our TV audience being exposed to the Chinese characters and in turn promote the learning of our mother tongue.

Having said that, I believe one important consideration will be the costs involved. However, I would like to share my experience in China. It is a very common practice for their programmes to display Chinese subtitles and captions during the Chinese dialogue. In China, the people in different cities/provinces have a different Chinese accent. During a TV interview, if a Beijingese speaks with a Beijing accent, the Fujian people may not understand what the Beijingese is talking about. Similarly, the Hunanese will speak with a Hunan accent, and the Shandong people will have difficulty understanding. As such, it is very common for them to display Chinese subtitles. I do believe that there are plenty of subtitle experts in China. If cost is the main concern, maybe we can consider outsourcing the typewriting of subtitles and captions to the China experts.

Besides Chinese News, I would like to further extend this idea to include literature and history documentaries, etc. While watching the Chinese documentary, and as we discuss our traditions and culture, the narration of the history can be put down into words using the Chinese subtitles. And I hope that the Malay and Tamil community can also consider putting subtitles in their Malay and Tamil News, if they think that it is a good way to learn their mother tongue. After all, most of the reading materials, such as newspapers, books and signboards, are written in English. To ensure that our younger generation continues to master both Chinese and the English language, we can help by exposing them to Chinese subtitles through educational programmes, and I believe it will be very useful to the learning of the mother tongue.

*Cols. 2625-2626.

2.15 pm

Mr Chairman, Sir, you are TIME magazine’s person of the year for 2006. So are Miss Penny Low, Mr Siew Kum Hong and anyone who sits in front of a computer and interacts with it. TIME magazine’s selection of you as person of the year was meant to highlight the millions of individuals who, through their interaction in cyberspace, have created new channels and types of communication. Two hon. Members of Parliament have pointed out the problems related to the new media and I shall answer their cuts together. These are wild and exciting times in cyberspace.

Blogs, YouTube, MySpace, Secondlife and Wikipedia are impacting the lives of millions. Many among the younger generation socialise in cyberspace. Some have termed this revolution in cyberspace as Web2.0, likening it to an updated version of software. While this revolution has brought the wisdom of millions together to create Wikipedia, there is stuff in cyberspace that can make you fear for the future of the next generation. There is a large supply of obscenity and stupidity, dishonesty and danger. So how does my Ministry deal with this brave new world?

We have a three-pronged approach in managing the new media: (1) a light-touch regulatory framework; (2) industry self-regulation; and, (3) public education.

Let me start with light-touch regulatory framework. Internet content providers are regulated under the Media Development Authority’s Class Licence Scheme. There is an Internet Code of Practice, which stipulates the type of content prohibited in cyberspace. The Class Licence requires Internet content providers and service providers to take down or deny access to such harmful content. This light-touch regulatory approach has served us well in regulating online content, helping to facilitate the growth of the industry while allowing us to act if we find harmful content that threatens our social values and racial and religious harmony.

Mr Siew asked whether we should review our light-touch regulatory framework. Last year, the National Internet Advisory Committee (NIAC), a people-private sector body set up to advise MDA, reviewed the Class Licence Scheme. It found the light-touch scheme still relevant and appropriate in dealing with emerging media trends.

The Member was also concerned about the use of the Sedition Act recently. The Sedition Act reinforces MDA’s light-touch regulation on new media. The proposed expansion of the Penal Code to cover electronic transmissions now will provide an alternative to the Sedition Act for charging offenders purveying inflammatory content that stirs up public mischief.

Besides legislative action, another important limb in managing the new media is industry self-regulation. The MDA and NIAC work closely with the industry to promote industry self-regulation. For example, last year, the mobile service operators - MobileOne, SingTel and StarHub - developed and adopted a voluntary industry content code for mobile services which aims to protect users, especially the young, from undesirable and objectionable mobile content.

The third prong, public education, is vital. Public education is vital and I totally agree with Miss Penny Low on the importance of public education.

Our youths readily embrace the Internet, freely uploading personal pictures and videos on their blogs, MySpace and YouTube. Some are intimate self-exposures. But few seem to realise that everything sent over or posted on the Internet is likely to be stored somewhere and could be easily retrieved, even long into the future, and could be misused by someone else to their detriment.

Given the perceived anonymity of the Internet, there are also netters who feel empowered to “blog any thing, any how”. Racist sites can be found on the Internet. Netters may not realise that they may be breaching the law when they post racist content. Many too are probably unaware that they could be sued for cyberspace defamation.

MDA recognises the dangers of the Internet. Over the last few years, it has worked closely with NIAC and various partners to inculcate responsible Internet habits through Cyber Wellness programmes, which educate users and parents on the proper use and dangers of the Internet. Starting this year, the Ministry of Education has incorporated Cyber Wellness values and programmes into the school curriculum for younger primary and secondary school students. In fact, Cyber Wellness is for everyone - grassroots, community centres, businesses should start Cyber Wellness programmes to encourage and teach people about the dangers as well as the value of the Internet.

With this three-pronged approach to managing the new media, there is currently no need for a separate Internet Code of Ethics. Furthermore, responsible websites do lay down terms and conditions which users have to abide by. Recently, a racially offensive video posted on YouTube was removed after it was flagged out by netters themselves. Such self-regulation is a positive and encouraging sign.

The Government recognises that Singaporeans are tech-savvy and take very well to the Internet. It also recognises that it is important to study the long-term social, ethical, legal and regulatory implications of the new media. Thus, a high-level advisory committee will be set up for this purpose. More details will be available at a later date.

Mr Baey Yam Keng had spoken about the Crazy Horse. It was a milestone to him, but he may be too young to remember that before Crazy Horse, we had Tropicana, and after that we had Neptune.

Sir, we do want to be a global city. But the hallmark of a global city is its diversity and not its homogeneity. If we were a homogenous society, regulating what is acceptable and what is not acceptable would be simpler. But a diverse society will have a wide spectrum of views and interests as to what should be the norm. So MDA has to strike a delicate balance between the concerns, wants and needs of different groups.

Let me now deal with the specific issue of the Crazy Horse. The Crazy Horse, as Members know, is a topless dance revue meant for a mature audience. Many parents will be pleased if their young daughters came home and said they wanted to take dance lessons because they saw an advertisement for a performance by the Singapore Dance Theatre. I do not believe these same parents will feel the same way if their daughters came home and said the same thing after seeing an advertisement for Crazy Horse. So there is a need for some regulatory control for advertisements of adult entertainment.

I met the owner of Crazy Horse in Paris who told me that they have advertising rules in the European Union too. So we are not unusual in having advertising rules. Advertisements in Singapore must not be offensive to the public and should adhere to the guidelines of the Advertising Standards Authority of Singapore (ASAS). Eng Wah, the operator of Crazy Horse, was well aware of the advertising guidelines, even before it decided to launch the show, and had at its disposal, various channels to promote the show before the launch. And as Mr Baey himself has pointed out, besides the advertisements, there was so much write-ups and free advertisement in the newspapers as there were so many articles about the show. So it may not be fair to say that the show failed because of lack of advertising opportunity.

Sir, while we open up more, we must continue to be sensitive to our societal norms and values. The norms and values differ from country to country.

Let me cite a recent article in Straits Times Life!, which pointed out that a person in Shenzhen had watched the movie "Curse of the Golden Flower" and wanted restrictions for the movie. Why? Apparently, “the abundant cleavage was too much for the 32-year-old electronics worker”. Interestingly, the article pointed out that "by contrast, in the United States - a place many Chinese consider as wildly permissive - the movie is rated R". This means that children younger than 17 must be accompanied by a parent or an adult guardian to see it. The Americans were not concerned by the cleavage, but they were concerned by the violence. So society norms and sensitivities are different, and regulatory authorities have to be conscious and sensitive to these differences.

Next, Mr Chan Soo Sen asked about more subtitles in programmes. MDA supports it. It is a good way for people to learn a second language, particularly the mother tongue. MDA has always been supportive of providing subtitling services for programmes. It not only helps the younger generation but it also helps the hearing impaired and the elderly, particularly if the elderly are conversant only in the dialects and the programme is in Mandarin. By reading the subtitles, they can follow the programme.

As news is one of the most-watched programmes on free-to-air channels, MDA has worked closely with MediaCorp to introduce real-time subtitling for English, Chinese and Malay TV news. Subtitling for the 9.30 pm English news on Channel 5 was launched in October last year. In December, the service was extended to the Chinese news at 10 pm on Channel 8 and the Malay news at 8 pm on Suria, both of which are the highest rated time slots for Chinese and Malay news bulletins.

There is a technical problem in finding a programme that does Tamil subtitling. So subtitling for the Tamil news will be implemented when there is a viable system in the market that can produce real-time subtitles in Tamil.

Besides news, major national programmes such as National Day Rally and National Day Message are also subtitled. But I agree with Mr Chan that we should subtitle more and more programmes so that viewers will have an opportunity of learning a language better.

We have some time left. Yes, Mr Siew.

Sir, the Senior Minister of State has pointed out that the NIAC had endorsed the light-touch approach under the Class Licence. He has also mentioned that the Sedition Act supplements the regulations, and the Penal Code provides an alternative mechanism for enforcement. What this means is that a single action can technically contravene three different laws with very serious consequences for each contravention. There is overlapping liability under multiple statutes for one single action. That creates uncertainty and a potential chilling effect on Internet speech. I would like to ask the Senior Minister of State whether this is healthy and leaves too much discretion to the authorities when taking enforcement action.

Sir, let me begin with the real world before I go into the cyber world. Even in the real world, there is much overlap between laws, and a particular wrongdoing can come under several sections of the Penal Code, and it is for the Attorney-General to study the various laws and decide which one is applicable in a particular case.

In cyberspace, the same is true. A law applies in cyberspace and so the same law and the same overlap that is found in the real world will be found in cyber space. The difference is that in cyberspace, it is a particular medium that is being used when compared to print, but the laws apply equally whether in cyberspace or in the real world. In cyberspace, what we do not do is that we do not go after every action that breaks the law, because it is impractical and impossible to police cyberspace. So, by and large, cyberspace is left alone and that is what we mean by regulating with a light touch. But where wrongdoing or bad action in cyberspace can have an impact on the real world, like the racist blogs, then we act.

Sir, the Esplanade-Empress Place arts and heritage precinct can well qualify as a world heritage site under UNESCO. This destination is known to be an important driver not only for conservation but for tourism too. I would like to ask the Minister: Singapore left UNESCO in 1985 following the US and the UK which had also left the UN organisation. But following reforms in UNESCO, UK and the US had since rejoined UNESCO, but Singapore has yet to do so. Can I ask the Minister whether Singapore plans to rejoin as part of Singapore's strategy to promote Singapore to the world stage as a global arts city with a unique heritage?

In relation to this, I just want to highlight that the WEF travel and tourism competitiveness report used the number of world heritage sites as a criterion in its ranking. Singapore has none. Singapore has not ratified the World Heritage Convention under UNESCO when 183 states have done so. Can I ask the Minister whether there are plans to ratify that Convention?

2.30 pm

Sir, it is correct that Singapore left UNESCO in 1985. But the circumstances were very different when we left UNESCO.

We understand that over the past 20 years or so there has been much changes within UNESCO. We have also kept ourselves informed about what is happening in UNESCO and participated in selected UNESCO activities even though we are not a member. In fact, since 2004 we have become an observer at UNESCO activities or meetings and events. We take our observer status seriously because we want to learn more about how the organisation functions, how we can contribute to its mission and how we can also derive benefits from our participation in future as a member.

We have also been selected by UNESCO for heritage recognition despite the fact that we are not a member. We do not have a World Heritage site. But I understand that in 2001, UNESCO awarded the Thiam Hock Keng, in Telok Ayer Street, the Asia Pacific Heritage Award, and this was followed in 2002 with an award with the CHIJMES Project for Asia Pacific Heritage Award. We have two UNESCO-recognised Asia Pacific Heritage sites here in Singapore. We are now an observer and, as I have said, we participate in their meetings. We will learn more about what they are doing, what are their programmes, how we can contribute, what are the benefits we can derive. We look forward to rejoining the organisation in the near future.

I would like to remind Members to make their interventions brief.

Sir, I would like to find out if there are any plans to actually coordinate activities, basically cultural and heritage activities, organised by the many clan associations that we have in Singapore to come under some kind of umbrella so that they can contribute towards the future that we look forward to in the area of arts and culture.

Mr Chairman, Sir, certainly this is a desirable effort and, in fact, this is something that the National Arts Council does regularly to coordinate with the various cultural groups, artists, collectives and practitioners in order to ensure that our arts and cultural activities receive the prominence that they deserve. So when we organise events like, for instance, the Singapore Arts Festival, we involve many Singapore arts groups to participate in the various events that contributed to the Arts Festival. Later this year in October/November when we organise the Singapore Art Show, we will be involving all the artists and arts collective. The visual arts community will be part of this effort to showcase and recognise the works of Singapore artists. Sir, we will continue to work with all the arts groups to ensure that we have coordination and that support is given to the groups when they are making major production and presentation in order to liven up our arts and cultural scene.

With response to SMS' reply, I would like to clarify that I do not think that the failure of Crazy Horse was solely due to the restriction on advertising materials. But my question is, if the operator would like to use the same coloured picture that is published in the Straits Times as part of its advertisement, what would be the concern of the Ministry here? To the scenario that SMS referred to about the undesired impact of young girls who wanted to audition for Crazy Horse because of the advertisement, I think the operator would be more interested to place advertisement to publicise the event rather than to recruit dancers.

There is a code of practice that all advertisers have to follow. Periodically, that is reviewed. This code is drawn so that there is a balance between the needs of the artistic creators who create advertisements and the needs of the general society; sometimes, their requirement not to be offended, particularly parents who do not want their children to see rather racy pictures. So a balance has to be struck and in every particular case, the advertisement has to be looked at and seen in the context of the code. With regard to the particular colour picture that he is talking about - it is a picture and it is hard for you to describe it - if there was a similar situation and there was a photograph, then the regulator would look at the photograph and determine whether or not it can be on the advertisement based on the code that covers advertisements.

Sir, I would like to thank the Minister for his support and recognition of the fact that even though it is not easy, we should try to do more for the local music scene. I would like to ask if the Minister can look at the NAC playing the role of a matchmaker specifically between corporations and local musicians, like how MCYS does for sourcing for funding for sports.

Mr Chairman, Sir, I would certainly ask NAC to explore this possibility and see how we can further support the local musical groups or musical talents.

With the various initiatives and investments we are making to promote arts in Singapore, I would just like to ask the Minister whether he thinks we are doing enough to promote the arts as a mainstream career for Singaporeans - it tends to be an alternative career because of things like critical mass and so on - and with the art schools being set up and other investments and infrastructure, whether in time to come we should increase the amount of communication and encouragement to get talented Singaporeans to take up arts as a mainstream career.

Mr Chairman, Sir, I think the time has come where the arts is now very much a part and parcel of life in Singapore. More and more Singaporeans are participating in the arts either as creator or content contributors, whether it is visual performing arts or as arts consumers. So there is a lively market for arts and cultural activities, which means that making the arts a mainstream career is becoming an increasing possibility but whether people would want to take on this challenge depends very much on individuals. It is not a question of saying that there is a demand and therefore I want to do this as my career or profession. There is a question of artistic capability, and I think this is an area where we cannot assume that everyone would have this ability. So it would be left very much to the individual. And that is why in our effort to promote the arts, you look at how we approach the arts school - it is to encourage the talented youngsters to come forward and they have to go through a process of audition. We have to look at them, assess whether they indeed have the passion and the talent for the arts. Are they committed to it? Will they really benefit from a dedicated arts education and if they do, then we are prepared to help them, groom their talent, nurture their talent to the fullest potential so that, perhaps, some from among those who come to the arts school will indeed make the arts as a mainstream career for themselves or as a chosen profession. But, like many other careers, there are challenges and a lot of competition. So whether one could succeed in this area or not depends very much on one's own innate artistic talent, capability and commitment to the passion.

Short intervention. Will the Minister agree that the marketplace would indeed be the best place to spur demand and supply? Whether or not there would be more people joining the arts or creative industry as the mainstream career would also depend on the sort of demand for their services and their creative output. So would the Government consider supporting them by becoming a purchaser of their creative outputs? This, obviously, should not be restricted to just MICA alone but also across the board. Give them a hand out, not a handout.

My second question is this. Earlier on, I spoke about the need for quality housing for the arts. So would the Minister also reply to whether we would be upgrading Telok Ayer Performing Arts Centre and Telok Kurau Arts Centre?

And my final question is on the Cyber Code of Ethics. I think SMS replied that there is a Cyber Wellness Programme that is ongoing, but I think a Cyber Wellness Programme is very different from a Code of Cyber Ethics. Perhaps the Code of Cyber Ethics could also be incorporated into the Cyber Wellness Programme itself.

Mr Chairman, I will respond to the first three points and then the Senior Minister of State will take up the other point about Cyber Code of Ethics.

On whether supply and demand will make an impact on the people choosing the arts as a mainstream career, I entirely agree. At the end of the day, Singaporeans must be prepared to pay going rate for whatever art or cultural activities that they consume. You cannot expect everything to be for free, and the arts cannot be all for free too. You must be prepared to pay the price of a ticket which will then allow performers and art companies to survive in this very competitive marketplace. And I would agree with her that supply and demand play an important role there.

As for Government becoming an arts consumer, Government is indeed already an arts consumer through various programmes. We have an arts acquisition programme within National Heritage Board where we purchase works of art to form part of our national arts collection. As it stands today, many of the Government Ministries are operating under block budget and they are already empowered within their budget to dedicate maybe a part of their budget, a small part, where it is necessary to acquire works of art for their premises, buildings or whatever. So if a Ministry has a new building and they want to have some works of art, they are already empowered to do so. I would imagine that if a Government agency wants to purchase a work of art to be displayed in the offices or in their premises, the priority or the natural inclination would be to purchase Singapore art. I think that would be something that we can take as a given. I would think it would be unusual if they were to go beyond Singapore to look for some other artworks. But certainly the Government is already contributing. Besides that, the Government is also contributing by commissioning works of art and we have done this. NAC has regularly commissioned arts companies to produce works of art. For instance, the celebrated Forbidden City was one of the most successful and most lavish musicals created locally by Dick Lee with local artistes and supplemented by international artistes. It has performed three seasons. The work was a commissioned work for the opening of the Esplanade - Theatres on the Bay in 2002. We will continue to commission works by Singapore arts companies in order to support them and also to increase the repertoire of the Singapore arts companies.

On the Member's last point about the quality of arts housing, we already have quite an extensive range of arts housing - Telok Kurau, as she mentioned; Chinatown, we have some; and we also have some in Little India. We will continue to look at how we can improve the quality of arts housing. The NAC is looking at a new project for art housing which is, in fact, the former NAFA premises in Waterloo Street. I think this was also the old St Anthony Convent. It is quite a sizeable facility and a lot of space there. We are looking at designing a new model of arts housing where arts and arts businesses can co-exist to make it a more vibrant arts hub. So artists can work there in their studios. There will be galleries with food and beverage outlets that would bring people to the premises so that there will be a lot more interaction between arts consumer and the arts community. This is one of NAC's projects which they are looking at in the coming years. So we will certainly continue to look at our arts housing and where we can, we will try to improve them.

2.45 pm

The cyber wellness programmes do not use the words "code of practice" or "code of ethics". Perhaps, when you are dealing with young people, the word "code" sounds rather authoritative. But instead, they use core values. And there are four core values that are promoted in the cyber wellness programme. The first is balanced lifestyle, that is, the users should embrace the Internet and integrate it into their daily lives and, at the same time, a balance has to be maintained between their physical lives and their virtual world lives. The second core value is embracing the Net and inspiring others, that is, users should harness the positive powers of the Internet to be proactive contributors who can inspire and benefit others. The third core value is astuteness, users need to be astute and street-smart when navigating the Internet, including disseminating information online and defending strangers on social sites, that is, they have to be aware of the dangers of the Internet. The fourth core value is respect and responsibility, users need to have a sense of respect for the Internet and other individuals, and that they should not abuse the power of the Internet nor condone subversive content.

I have a question for the Minister. On the return investment of $4 billion spent on iN2015, on the one hand, we always see traditionally we have got KPIs based on adoption. I think with the infrastructure today, we need to look more into innovation. Would the Ministry be looking at how we measure value add, in terms of the IT knock-on effect on end user industries, such as banking, manufacturing, and the other sectors?

The short answer is yes.

It is about the Arts School. I had the chance to visit the Philippines' Arts School and the curriculum is the academic curriculum, which revolves around the arts curriculum. So the arts take centre stage. Is that the direction that the Arts School will take in Singapore as well? The second question is: what is the entry requirement for the Arts School? Are we going to focus on the academic results which means that they have to be from the Express stream? If they are from the Normal stream and if they are not doing too well academically, would they have a chance to enter the Arts School, even if they have the passion for the arts?

Sir, we would take the same approach as Arts Schools elsewhere, which is that the arts will take centre stage in the education of our students in the Arts School. But, at the same time, as I have said earlier, we would offer a comprehensive academic programme to supplement the arts. But the arts would be used in many other ways to teach the students. The arts would feature in as many different ways as possible so that the students would be totally immersed in the arts in the Arts School.

As for entry requirements, we have said before that the key requirement is that the students must have a talent for the arts and also passion for the arts. Those are overriding requirements. Then, of course, since the school is geared towards preparing the students to take the International Baccalaureate (IB) Diploma, we need to assess the academic ability of the students so that they can complete the programme and successfully gain an IB Diploma. The students obviously must also show a certain level of academic excellence. But at the end of the day, academic excellence will not get you into the Arts School per se. You will need to demonstrate, through audition, your artistic ability in order to qualify. For those whose artistic ability is of such a high level, compared to their academic abilities, we would certainly make exception and the Arts School is prepared to give extra support to such students so that they will continue to be able to keep up with the demand or the rigours of the academic side of the Arts School programmes. We will try not to miss out on any talented youngsters. We will try to ensure that those who are indeed artistically talented will be given the chance in many ways, including those who come from families which may not have the financial resources to support their children. We will give them scholarships or bursaries, as the case may be, to ensure that they are not deprived of the opportunity to undergo such an excellent arts education programme.

Sir, the City Hall is a building of huge historical significance. It was where Admiral Lord Louis Mountbatten accepted the surrender of the Japanese Forces in 1945 and it was where our first Prime Minister Lee Kuan Yew was sworn in in 1959. Can I ask the Minister, given that they are going to convert the City Hall into our new National Gallery with the international architecture competition, for his assurance that it will maintain its historical significance and preserve nooks and corners which may reflect the richness of our history? Another question is that I also want to thank the Minister for considering underpasses to link the important buildings in the precincts which include Empress Place and City Hall -

Ms Ng, we do not have time.

Can I ask the Minister whether he could consider including a heritage trail in the underpasses as well?

Sir, in developing the City Hall and the old Supreme Court building into the National Art Gallery, we will pay particular attention to the historical values and qualities of both buildings. They are national monuments. They are not just ordinary buildings. So in refurbishing them, we will have to pay great respect to the history of both buildings and, certainly, we will be preserving certain parts of the building in order to tell future generations of Singaporeans who may not be aware of this historical aspect. We will keep alive the memories of what went on in this building and the part they played in Singapore's development in our history. Let me assure this House that, in calling for international architectural competition to suggest ideas and proposals on how we can refurbish the building, we will not in any way remove the historical details of the importance of both buildings to Singapore. We will in fact preserve and enhance those historical aspects.

As to the heritage trail, certainly, we will be including this nucleus of wonderful heritage institutions in our arts and heritage district as part of our heritage trail. As and when the underground links are created, they will certainly form part of our heritage trail to bring people from one point to another in the most convenient manner.

Dr Fatimah, one final question. Please make it brief.

I know we like all the developments in the arts. But I would like to get some assurance from the Minister that we will always integrate the elderly, the disabled, as well as the sick, because arts can also be used as a form of therapy.

Sir, yes, we will do that. We will bear that in mind. We will always ensure that the arts reach out to as wide a spectrum of our society as possible - the aged, the disabled. We will include them. Interestingly enough, towards the end of last year, I went for an arts outreach programme, conducted by the Singapore Chinese Orchestra. It was held in the Singapore General Hospital. Being end of the year festive occasion, the Chinese Orchestra decided to hold an outreach programme where the group went there for free performance to all the in-patients of the hospital. I was there. I thought the patients had a great time and they enjoyed themselves listening to all the cheerful festive music. I hope that it had contributed to uplifting their spirit and speeded up their recovery.

Miss Penny Low, are you withdrawing your amendment?

Sir, just to continue on what my colleague Dr Fatimah said, I think it is not just the arts but also the ICT that has to be an inclusive platform for everybody in Singapore - able or disabled, high income or low income. I think the Ministers and Minister of State have given us a very comprehensive answer to the questions posed on the creative, media and IT sectors and also painted many exciting plans in these sectors. MICA can be assured that we will be watching this phase very, very closely.

With that, Sir, I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

The sum of $393,584,080 for Head Q ordered to stand part of the Main Estimates.

The sum of $147,582,900 for Head Q ordered to stand part of the Development Estimates.

Head T - Ministry of National Development. Mr Charles Chong.

Concept Plan 2001 Review

Sir, I beg to move,

That the total sum to be allocated for Head T of the Estimates be reduced by $100.

Sir, the Minister for National Development recently announced a mid-term review of Singapore's Concept Plan 2001. The revised Concept Plan aims to transform Singapore into a top First World nation and provide capacity and infrastructure to support a population of 6.5 million people, up from 5.5 million that was originally planned in 2001. It envisages a steep increase in demand for industrial land and also a significant increase in the proportion of high density housing to accommodate a larger population as well as to cater for more foreign workers and elderly Singaporeans. There will also be increased transportation demands to satisfy amidst our severe land constraints. Could the Minister elaborate further on how his Ministry intends to achieve these objectives as there are concerns over how we will be dealing with a much larger population comprising old and new citizens and foreign workers, all of whom will be closely packed in high density housing?

Sir, we would also need to overcome some immediate obstacles that others seem quite determined to place before us. Could the Minister clarify the media reports that, in addition to the sand export ban by the Indonesian government, there is now the granite export ban, this time imposed by the Indonesian navy? How would this development affect the construction industry and what measures would the Government be able to take to overcome such impediments to our progress and development?

Sir, I was glad to hear that the Concept Plan, while intending to cater for a significant population and industrial growth, will continue to enhance the quality of life in our city, our housing estates and public places. Could the Minister let us know his Ministry's plans for enhancing our clean and green Garden City image and providing good quality living environment for all present and future Singapore residents? We also need to ensure that our buildings incorporate features that would reduce energy consumption, increase water conservation and promote recycling. Could the Minister tell us what measures are being considered to make our buildings more green and ecologically friendly?

Finally, would the Minister consider requiring all town councils to meet minimum standards to ensure that our public housing estates remain among the best in the world and that none degenerates into a slum due to mismanagement? Singapore is just too small for any constituency to become a slum, as this will undoubtedly have a negative impact on the neighbouring constituencies and, ultimately, the rest of the country.

Concept Plan

Sir, may I ask MND what is the progress in the planning for increase in population growth? How do we cater for the increased demand on housing land space where it supplies education, healthcare, transport, recreation facilities and social services. Should there be inter-ministerial cooperation among the various Ministries for this planning? How much funds must be needed for this plan for the 6.5 million population growth and has MND put aside this funding?

Property Market and Public Housing

Sir, high-end property prices have risen dramatically over the past 12 months. Nary a day passes without the press reporting a story of how new price records are being broken, how queues formed outside choice show flats, queue numbers swapped for an astronomical sums of money,

blank cheques only are taken at popular launches, and units are flipped at profits of $100,000 or more. These scenes are eerily similar to the heydays of speculation in the mid-1990s.

3.00 pm

The Minister has repeatedly assured Singaporeans that the problem is confined to the luxury segment of the market and that the masses need not worry of being outpriced. The Government has gradually resumed its land sales programme and reintroduced payment of stamp duty upfront, instead of upon completion of sale, presumably to discourage speculation. We have also read about returned units from options left unexercised because the original purchaser is unable to find a buyer to flip the property and wants to cut losses.

Sir, the situation is worth monitoring closely for its potentially debilitating effects on the quality of banks' housing loans portfolio in the event of a price correction. Equally disconcerting is the manner in which sky-rocketing prices dampen aspirations and create middle-class anxiety. I understand the logic that, so long as speculation does not extend to the mass market, the Government has no business to intervene. After all, those who choose to punt on Marina Bay residences or One Shenton are best left to their own devices. If they suffer a loss, it is their problem.

My fear, Sir, is that the mass and luxury segments of the market, seemingly decoupled now, may rejoin once again. In fact, there is already evidence of filtering effects of the high-end boom into the lower to mid-tier segments. I also understand from property professionals that the primary market rather than the secondary market is all the rage now. This is no longer value investing. I urge the Government to monitor the situation carefully and stand ready to introduce measures to curb excessive price increase which, left unchecked, could only end in grief. The stock market correction we have witnessed in recent days is a grim reminder of the market's self-correcting mechanism and how much chaos it can create not just to computer trading systems but to the savings of people as well. The euphoria has also seeped into the public housing segment, evident by recent press reports of public outrage at people who seemed to have prior notice of upcoming walk-in selection exercises.

Sir, looking at it positively, this is but a reflection of the strong demand underpinned by solid economic gains over the past few years. But we should not dismiss the risks of faulty markets creating the conditions for a painful correction. While HDB exercises strong influence because of its ability to set new flat prices, it should not neglect the pressures that may build up in the resale market. After all, the prices of new HDB flats are influenced by resale flat prices. I urge the Government to keep a close watch on affordability so that public housing flats will not be out of reach to ordinary folks who may already feel envious of the millions some people are reported to have made in their property trading.

With regard to housing for a city of up to six million, I would like to ask the Minister what is the mix of low-rise and high-rise dwelling units the planners are considering and what will be the intended housing density for high-rise living. How can we ensure that we still have sufficient public and green spaces for communal interaction and bonding which are even more critical with an increasingly diverse population?

Land Use Planning

Sir, the development of Marina Bay is an important thrust in making Singapore a vibrant and global city. Could the Minister update this House on the development of Marina Bay, whether it is on track, and what the future plans are after the successful award of some major developments, such as the BFC and the IRs? With the focus of attention on Marina Bay in the next few years, what would next happen to the existing Central Business District (CBD)? What are the plans for the CBD to ensure that it remains attractive? Would the Government also be developing other areas outside of the city? If so, where would that be?

While we develop various areas, it is equally important to inject life and soul to places. We note efforts have been made in this through the attraction of national and international events. These should continue. To further the effort, we should also look into the evening economy. I would like to ask the Minister whether within the downtown areas there are plans to encourage activities to take place at night so that the areas can remain lively. What are the plans to inject night buzz into the downtown areas?

City in a Garden

Sir, City in a Garden will incorporate the best features of the world's top cities. But it will come with a tropical twist, lots of water and business charm. Indeed, an exciting vision to bring the buzz into the city.

In response to criticisms about the homogeneity of our HDB flat design, we are beginning to see more variations and colours. In planning for a City in a Garden, it is important that we inculcate a sense of ownership. Many worry that the buzz may give way to the importance of evolving a character of the city. Consultation with the public will ensure that we incorporate the input of Singaporeans, including those living overseas, whose exposure may be a rich source of ideas. With involvement of the stakeholders, we can then continue to build on our strength of a sense of unity amidst variety and diversity of our environment.

Sir, one way we can achieve this is to let residents take ownership of the gardens, fruit trees or waterways adjacent to their homes. We have seen PUB's efforts in this direction to get schools and residents to care for their nearby waterways. If Singaporeans can take shared ownership and responsibility of these gardens and waterways, they will also get to enjoy the benefits of the beauty and the cleanliness of these amenities. I believe that by inculcating this sense of shared ownership and responsibility at the community level, we will also develop our national heartware of community bonding and harmony.

I have the following questions:

How would MND go about engaging the community in taking ownership of their living environment?

What steps will MND embark on in sustaining the efforts of the community towards reaching the vision of a City in a Garden?

What is the budget set aside to translate this island into a City in a Garden and how will this budget be financed?

The Minister for National Development has recently said that, indeed, we can create a global city by working together in meeting the future challenges to provide for population growth and capitalising on economic opportunities while maintaining a good quality of life. How will the group of Singaporeans who will not be able to catch up with this higher standard of living be helped along such that they will not become paupers in the midst of plenty?

Order. I propose to take the break now.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Order. I suspend the Sitting and will take the Chair again at 3.20 pm.

Sitting accordingly suspended

at 3.07 pm until 3.20 pm.

Sitting resumed at 3.20 pm

[Mr Speaker in the Chair]

Debate in Committee of Supply resumed.

Head T - Ministry of National Development - (cont.)

Head T - Ministry of National Development. Mr Mah.

Mr Chairman, Sir, a number of Members, including Mr Charles Chong, Dr Lily Neo and Dr Amy Khor, have asked about the 6.5 million population figure and how we can cater to the needs of such a population. I would like to begin my response by addressing this very basic question of why we should prepare for a larger population.

The key messages in the Second Minister for Finance's Budget Speech this year were that we should prepare for future growth and embrace globalisation. Put very simply, without growth, we stagnate and there will be no future. We have done well over the last 40 years. We started off with very little resources, but we built up our infrastructure gradually, grew a strong economy, and improved our social services, such as education, healthcare, housing. Our development supported and, in turn, was supported by a growing population. At the time we became independent, our population was about 1.9 million. Today, we are talking about 4.5 million.

Sir, in the next phase of our development, our population is expected to grow further. Two questions Members may ask:

Do we need to grow our population?

If so, by how much?

My answer to the first question is an unequivocal yes. If we aspire to become a global city, we need a variety or a whole host of activities and facilities that cater to different groups of people. So, if you want hawker food, you will have hawker food, but if you want fine dining, you can have fine dining. If you want cinemas, they are there; if you prefer theatres and concert halls, we have to provide those as well. Or flea markets versus high fashion. So we need different things to cater to different needs and tastes. We need different housing types, transport modes, recreational options and employment opportunities. We need a critical mass of people to support this range of activities. Hence, our population must grow.

The second question then is by how much. How many more people should we add and accommodate in Singapore? As I have explained in this House, we do not have a target population per se, but what we do is to seek to enable and encourage population growth as far as possible. How large a population we can accommodate will depend on many factors, eg, our physical constraints, the quality of life that we want, our success at social integration of immigrants, and so on. If we look at major global cities, eg, London, Paris, New York, Hong Kong, etc, we will find that they all have populations ranging from about seven million to 12 million people. These cities are abuzz with life and vibrancy. Even second-tier cities in China and India are growing rapidly, attracting attention from multinationals, attracting talents and investments.

One example is Chengdu, which the Second Minister for Finance cited in his closing speech on Thursday. I visit Chengdu regularly, at least once a year, in my capacity as the Adviser to the Singapore-Sichuan Trade Investment Committee (SSTIC). My first visit was in 1996. At that time, I found Chengdu to be a rather drab and dreary city. The buildings were rather nondescript, with bicycles everywhere, people wandering and crossing the streets everywhere. Today, it is a booming city. Its people are well-dressed, there are cars everywhere. In fact, I am told that Chengdu is the city with the third largest car population in China. If you go to the shopping street, Chun Xi Lu, which is the equivalent of Orchard Road, you will see all the major brands there, whether it is Hugo Boss, Cartier, Starbucks, even our own Breadtalk,

Old Chang Kee. They are all there. So it is a different Chengdu today supported by a population of 11 million people, all very gung-ho, all wanting to do better and better for themselves and all very optimistic about the future. We have opportunities there in Chengdu and indeed, many of our businessmen have already moved in, large and small. Surbana is developing a major township there. For the first phase, 2,000 flats were all sold out within a week. I visited one of those flats. I was quite amazed to see the quality of the interior decoration of this so-called low to middle-income housing. It had teak parquet flooring, and wallpaper, large screen plasma TVs on the walls, built-in stereo systems, high quality bathroom fittings, things that you seldom see in many Singapore homes. And this is supposed to be in Chengdu, a second-tier city.

The point I am trying to make is that, even in this second-tier city, they are moving and moving fast, and they are attracting talent and investments. Intel, Motorola, Nokia and Ericsson are all there. So are our own businessmen. In fact, when the Prime Minister visited Chengdu and he spoke to the businessmen, many of them said, "Quality of life here is not bad, in fact improving, and in some areas, just as good as Singapore." If we just stay still in Singapore, I think we are making a big mistake because everybody else is moving and moving very fast. This is the reason why we have to continue to push for growth. How fast we grow and how much we grow depends on us really, on how ingenious and resourceful we are. There are many trade-offs that we need to make and it is up to us what kind of trade-offs we want to make.

To give ourselves an idea of the kind of trade-offs we need to make, what kind of impact a larger population will have on our infrastructure, we asked our land use planners and transport planners to come together to work with economic and social agencies to do a review of our Concept Plan. We did the last Concept Plan in 2001. This Concept Plan is our long-term land use plan for Singapore. By long-term, I am talking about 30-40 years. We have asked them to base it on a population of 6.5 million, a population projection which we derive from current demographic trends. The findings show that we have enough land - spare land, vacant land - to cater to such a population, as well as land that we can intensify. So if we take certain steps to make better use of the land, we should be able to comfortably house a population of 6.5 million, if we need to. I will elaborate on some of these plans later but I have asked the Clerk to distribute a copy of a pamphlet which sets out some of these ideas that are in the Concept Plan review.

But as Members have rightly pointed out, physical infrastructure alone is not enough. We also need to be mindful of the social impact of a larger population. I know that this is outside the scope of urban planners, but it is a key consideration. Let me reiterate that this is an important consideration if we are able to grow our population. It is not a new challenge. We have always been an open economy. We have always been an immigrant society. Our population over the years has grown, both through indigenous birth as well as through immigration. As I just said, we grew from 1.9 million around the time of independence to something like 4.5 million today. So there is no reason why we cannot grow further and still remain socially cohesive.

But, we have to plan for our physical development ahead of time, and we have to invest in the necessary infrastructure. This is one of the reasons why the Budget this year has taken some very bold steps. We need to put in place some of these measures now to ensure not only that we have sufficient land but that we are also able to maintain a quality environment.

What are some of these considerations. First, housing. In terms of housing density, we should be able to meet needs quite comfortably, provided we plan our land use carefully. Dr Amy Khor asked what kind of densities. All I can say at this point in time is that our densities will increase. We will need to build taller flats in some places, but it does not have to be so everywhere. We will continue to have a mix of different housing types, both landed as well as non-landed. We also need to make sure that quality housing will come with good amenities, proper greenery, clever use of parks and waterbodies for recreation, so that we can mitigate the impact of a denser environment.

Our HDB heartlands in particular will undergo a makeover, a major regeneration. Members have expressed concern about the affordability of public housing with a larger population. I would like to reaffirm the Government's commitment to support home-ownership for eligible Singaporeans.

Dr Amy Khor is also concerned that the speculative activity in the high-end market will spill over into the public housing market and, therefore, affect affordability. There is no evidence at the moment to support this concern, but we are monitoring the situation. At this point in time, overall housing prices for the whole Singapore market have increased by slightly over 10% last year, whereas the HDB resale price index increased by 2%. That is a comfortable rate of increase which maintains a store of value, but at the same time, does not price it out of reach of many Singaporeans. And HDB flats will continue to remain affordable. Last year, those who bought HDB flats used, on the average, around 20% of their monthly household income to service their housing loans. 20% is actually a very comfortable margin because, by international standards, 30-35% as about the limit for expenditure on housing. So it is well within that norm of 30-35% for the debt servicing ratio. If you think about it further, this 20% that they use, most of them would actually be able to make use of their CPF contributions entirely to service this debt. They do not even have to touch their take-home pay. However, this is a dynamic situation, so we will continue to monitor both the private and also the public housing market to ensure that there is sufficient supply in the pipeline to meet demand. And if it is necessary, we can always release more sites for private development through the Government Land Sales programme or we can step up public housing development if needed.

Another area of concern is transportation. More people means greater transportation needs and we need to accommodate these needs within the land constraints. The only way to do this is to promote more efficient transportation which, by definition, must be public transportation. And we will have to do this by providing a well-connected and comfortable public transport system while, at the same time, managing the growth in car population through both car ownership as well as car usage measures. The Ministry of Transport will be considering these issues when they review land transport policies and plans in the coming year.

Mr Charles Chong also asked about the promotion of energy-efficient and environmentally-friendly buildings. I am happy to inform him that the MND and BCA have formulated a comprehensive plan to promote a wider adoption of green building technology. The plan will consist of regulatory requirements for Green Mark standards as well as incentives, intensifying R&D in this area and also raising awareness of efficient building technology.

He has also asked about our plans to create a "City in a Garden" and Mdm Ho Geok Choo also did the same. We will continue to expand our park infrastructure, build new parks, and enhance existing ones, such as the much loved Singapore Botanic Gardens, the well used East Coast Park and also develop a new park. The Horticulture Park is coming up on the West Coast and three world-class gardens at the heart of Marina Bay, collectively known as the Gardens by the Bay, will come up around 2010.

We also intend to increase our park connectors network which is a very efficient way of leveraging on the use of existing parks. We hope to treble the land from the park connectors from 70 km to 200 km by 2012. Our waterways will also be turned into attractive recreational destinations and PUB is working on this together with NParks.

As Mdm Ho Geok Choo rightly pointed out, this effort must also be a private sector effort. It cannot just be a public sector effort alone. So we will take this public-private sector approach in order to green our city. We have launched community gardening programmes, which some Members may know, are very popular in the HDB heartlands. We will mobilise public support and participation in these programme. We will work with the landscape industry to upgrade their capabilities. So all these efforts will help us realise our vision of making Singapore a distinctive "City in a Garden".

Mr Zainudin asked about Marina Bay, I am pleased to inform him that the Marina Bay development is well on track. There are significant developments going ahead apace, buildings being developed and infrastructure put in place. And in the next five years, you are going to see a very different Marina Bay. It will be totally transformed when Marina Bay Sands Integrated Resort is up and the Marina Bay Financial Centre is ready. We have the new double helix bridge, and the waterfront promenade which will link all these attractions together. It is a necklace of attractions. When they are all ready, Marina Bay will be a totally transformed area, a very exciting prospect for Singaporeans.

For the next phase of development at Marina Bay, even as we complete this phase, we will be focusing on three new areas. The first will be the Central sub-zone which is adjacent to Shenton Way. In other words, we will move the developments from Shenton Way south into Marina South. Secondly, we will continue the development along the bay front because there are still some areas which we can develop. And last but not least, we will start to initiate development to frame the Gardens-by-the-Bay, the ones at Marina South.

The existing CBD will also not be left behind. We plan to enhance public spaces within the CBD. We will improve the walkways and the street furniture, introduce landscaping and attractive lighting. Of course, we will facilitate redevelopment of some of the buildings in the CBD area as well.

What about outside the CBD? Obviously, we are not concentrating our efforts on the CBD or Marina Bay alone. Other than the city centre, we will be opening up new areas to bring more jobs and facilities to people living in the suburban estates. The first area of focus would be Jurong. We intend to facilitate development in the Jurong Regional Centre as the next phase and then the Paya Lebar Sub-Regional Centre after that. Further afield, we hope to be able to do the same in areas like Woodlands.

Mr Zainudin Nordin also spoke about the lack of a night-time buzz. I think it is difficult for the Government to be involved in creating this night-time buzz, but we can do something to facilitate it. We want to make Singapore an attractive city not just by day, but also by night, a 24/7 city. In this respect, there are many things that we can do. URA, together with other agencies are working to see whether we can improve the range and quality of evening activities by improving the infrastructure in this area. We will focus on four main areas - Orchard Road, Singapore River, Bras Basah, Bugis and Marina Bay.

For example, in the Marina Bay, we are looking at two projects. One is called a "Light, Water and Sound" show, where you use the Marina Bay's skyline as the backdrop or centrepiece for the show. The second is an "Aqua Shell", which is a floating stage for live theatre and musical performances.

We are also exploring the feasibility of brightening up the Bras Basah-Bugis area, eg, through "Artvertisements" - advertisements that also double up as art pieces. Maybe this should come under MICA. This is something which should facilitate and encourage in order to create that night-time buzz Mr Zainudin is talking about. We want Singapore to be a key destination in Asia for round-the-clock excitement in entertainment, shopping and dining, all within a safe and secure environment.

3.45 pm

Sir, even as we talk about all these long-term plans, as Mr Charles Chong rightly pointed out, we also need to address some immediate concerns. One of the immediate concerns is this issue of the sand export ban and the disruption in granite supply from Indonesia. Let me, first of all, explain that we import raw materials for our construction industry from many sources. In the case of land sand to make concrete, as opposed to sea sand which we use for reclamation, we have been importing land sand mainly from Indonesia until they banned it recently. We have found alternative sources, so that is no longer an issue.

We have also been importing granite from Indonesia, which our construction industry uses to produce concrete. Unlike land sand for concrete, and sea sand for reclamation, which Indonesia had banned in 2003, the export of granite in the form of aggregates as well as granite dust is not banned.

However, in the last few days, the supply of granite from Indonesia has been disrupted. We understand that the Indonesian authorities have stepped up their checks and detained some barges which were carrying the granite materials to Singapore. Our importers told us that these barges carry granite; they are not carrying sand. It is granite in the form of aggregates or dust. They also say that they have the necessary certificates to prove this, because before they can export, they have to get certification from the various government agencies in Indonesia. They say that they have these certificates; yet their barges have been detained. On our end, we have verified that there has been no land sand from Indonesia since the ban took effect in early February. The reason why the barges were detained, according to our importers, was that it is to prevent the smuggling of sand following the recent ban on sand exports. Our verification in Singapore shows that sand has not been coming from Indonesia since the ban. So we are quite puzzled.

We do not know how long these actions will continue. I have informed Minister for Foreign Affairs, George Yeo, and he has raised the matter with his Indonesian counterpart, Minister Hassan Wirajuda, to seek clarifications on these latest actions by the Indonesian authorities. Minister Hassan told George Yeo that there was no export ban on granite from Indonesia and that he would check what was the reason for the actions being taken that has caused this disruption. The Minister for Trade and Industry Lim Hng Kiang has also spoken to his Indonesian counterpart, Minister Mari Pangestu, who confirmed that there is no export ban on granite and that they are now verifying the situation.

Meanwhile, to make up for any immediate shortfall in the supply and to make sure that work goes on at our construction sites, we are releasing granite aggregates from our stockpile. As part of our on-going efforts to diversify our sources of supply of essential construction materials, we are buying granite aggregates from other sources and encouraging the private sector importers to do the same.

If the situation continues, I expect that the price of granite aggregates will go up due to the higher transportation costs, because we are bringing in this material from alternative sources, which are further away.

As in the case of land sand, as Members may have read, the Government has worked out some co-sharing arrangements with the contractors and concrete suppliers to assist them for the existing public sector projects, and we will do the same for this disruption. The BCA has briefed the industry associations on the situation and what the Government is doing, and what the Government is prepared to do to help the industry. Sir, let me assure Members that the Government is closely monitoring the disruption in the supply of granite, and is taking necessary measures to ensure that our construction activities will not be disrupted during this period of uncertainty. We will work with the industry and we will do whatever is necessary - find alternative sources, supply from stockpiles, look for alternative methods. This is something that is urgent and necessary for us and, going forward, we must adopt more sustainable construction methodologies. We have got to look for alternative materials. We have to reduce our dependence on concrete and therefore the need for granite and sand. This is the best way to ensure that our long-term plans to develop our infrastructure and to rejuvenate our city will not be derailed. I am confident that this can be done.

Sir, to conclude, our population will grow, both as a stimulant to and a result of economic growth. The challenge we face is how to ensure that the quality of our living environment is not compromised. We want a Singapore that is not just a place that provides jobs and opportunities, but also a quality of life that other major cities will increasingly find hard to maintain, and this is something that will become our competitive advantage. We can do this by planning ahead, by investing in our future needs now. Obviously, we have to address not just future needs but also present challenges, ie, the one that we are facing now in the construction industry. But with resolve, determination, creativity, with the long-term planning approach, we can overcome constraints and we can achieve our vision of making Singapore a livable and attractive city, even with a higher population.

Affordable Housing

Sir, I fully agree with the Minister's explanation that we must plan forward for growth, if not we stay stagnant. However, Singapore is our homeland. We would like to urge the Ministry to carefully take into consideration the concerns of Singaporeans in detailing the planning parameters for our limited urban land. I would also like to urge the Ministry to let our people be involved and have the answers in the drafting of the planning parameters and make the process transparent, eg, to answer some of these questions.

What do we mean when we say we aim to have an "endearing home, a global city"? And what are the global standards we set to ensure that our quality of life is comfortable to our people? Do we have in mind which country or city we hope to emulate for the population parameter of 6.5 million? How much space can we afford to provide for each resident and each family? And what is the green lung space that each citizen could have? Do we build more Sentosa Coves where our precious seafronts are taken up for premium housing instead of for the general public?

I feel that we must keep in mind the fact that the housing needs of our citizens are changing in a more diverse manner. With the improvement of overall education standard and change in socio-economic status, there is an increase in the number of singles, single parents and smaller families. We must also not forget the numbers of foreigners that are streaming in each year. With the diverse categories of people, each with their own different housing needs, the Ministry must draw up a long-term plan to manage the competing demands of the housing needs of residents. What measures do we have in place to ensure that there is enough land for public housing, and ensure that it continues to be affordable for those who need it? Will there be a change in the present policy to provide public housing up to 90% of our population? Will there be a shift in the policy in view of the diverse population having very different needs? Would we move to the private sector to provide the top 50th percentile of our population income level? Or will the Ministry review its policy of affordability to take into account the bottom 20th percentile of the population income level instead of the standard measurement at the 30th percentile income level?

Presently, in view of the economic and property cycle, the housing authority is unable to fine-tune the supply to meet the demands for each sector of the population. For example, presently, there are limited 2- and 3-room flats for residents who wish to downgrade, especially elderly residents and smaller families.

(In Mandarin): [For vernacular speech, please refer to Appendix A *.] Sir, I hope that the HDB will review its policy to also provide subsidised loans to second-time buyers who wish to downgrade to a smaller unit. The flat buyers should be given the flexibility to decide whether to upgrade to a bigger unit or downgrade to a smaller flat.

In view of changing housing needs, HDB should constantly try to revise and improve its policy and processes to ensure that the housing needs of the nation are largely met. Therefore, I urge that the HDB consider exercising greater flexibility in its policy, so as to ensure that HDB is in tune with changing preferences.

(In English): Another issue concerns the elderly. How can they unlock the value of their property? This will help those who require cash to maintain their health and lifestyle as they grow older. I am going to make a bold suggestion. We have the reverse mortgage of NTUC Income. The take-up rate is low and the understanding is also not there. Can the HDB, besides providing mortgage loan, now provide reverse mortgage loan for our senior citizens who need to cash out?

*Cols. 2627-2628.

Sir, the last economic crisis that our country experienced had unearthed quite a number of problems related to housing, namely, the cost of owning flats, and the availability of rental flats in Singapore. This could be seen by the rising number of demand for rental flats and more flats being repossessed than before, and more people are in arrears of their instalment payments for their flats.

Sir, the new initiatives of our Government to increase the supply of smaller flats and rental flats are welcomed by Singaporeans. May I ask the Ministry to update the House on the progress of the effort?

With the rapid economic growth, the cost of building new flats and infrastructure is expected to rise. What impact will this have on the cost of new public housing? Will the change to the Land Acquisition Act be translated to higher cost of public housing too?

Sir, we have also seen an increase in demand for studio apartments for senior citizens recently. The two projects that have been launched in Bishan and Tampines have had a very good response. What are the long-term strategies and plans to provide suitable and affordable housing for senior citizens in Singapore? While the number of citizens who have their flats repossessed by banks and HDB is still small, the number is higher than before. What is being done to assist families who are in such a predicament for alternative housing? And may I also know how effective is the HLE?

Public Housing

Sir, I intended to speak about the speculative activities spilling over to public housing, but the Minister had anticipated and had given able and adequate reassurance to this House.

Housing for Singles

Sir, the opening of new HDB flats to singles above 35 was for two reasons. First, it is always stressed that all Singapore citizens should have access to affordable housing and medical care. Why should we withhold subsidised housing for singles? It is like telling singles that they cannot go to subsidised wards in hospitals but to Class A and private hospitals only.

Second, working singles, like married couples, pay taxes which are used to subsidise HDB flats. If HDB wants to give priority to families for new flats, then can we do this through a differentiated subsidy? For instance, a higher subsidy for families and lower one for singles, rather than completely blocking out singles from buying any subsidised HDB flats.

Third, social inclusion. Singles, especially the knowledge workers, are a very mobile lot and can move to any other country which welcomes them. Socially, we also want to make sure that they have a stake in Singapore and to enhance their efforts, the way we do for families through their new subsidised HDB flats. Sir, it has often been remarked that Singapore men propose marriage to their girlfriends by asking, "Want to buy a HDB flat?" And when they divorce, and we know that an increasing number of couples do as the divorce rate is rising, they say to each other, "Okay, sell our HDB flat, split up."

4.00 pm

Sir, my point is that the HDB's so-called pro-family policy does not necessarily reduce the number of singles. In fact, I wonder whether it has any effect at all beyond forcing singles to live unhappily with their married siblings and parents in cramped HDB flats. In fact, in 1990, 14.1% of those aged 35-44 were singles. Despite HDB's pro-family policy, the figure rose to 19.4% in 2005, and we cannot argue that there will be more if there were no HDB pro-family policy as there is no evidence to that effect. Sir, I do not believe there will be a sudden spike in the percentage of singles if HDB allows them to buy new flats.

There are many reasons why singles are not married - long working hours, high expectations and so on - but not being able to buy a new HDB flat is not one of them.

HDB Bank Loans

Sir, as of 1st January 2003, the HDB home mortgage market was liberalised. The Ministry announced that HDB would no longer offer market rate loans but instead would transfer the service to our financial institutions. HDB flat buyers who are either not eligible for an HDB concessionary loan or who choose to take a private loan may apply for a home loan from any bank or financial institution licensed by the MAS. In addition, those buyers that have existing market rate loans with the HDB could re-finance their mortgages.

In his speech in this House on the Second Reading of the Housing and Development (Amendment) Bill on 31st October 2002, the Minister for National Development said, and I quote:

"Some Members have previously expressed concern that the provision of market loans by banks, instead of HDB, is in effect a withdrawal by Government of its social safety net. They see HDB as generally being more sympathetic towards flat owners in arrears, and will not repossess flats as a last resort. On the other hand, they perceive banks as being less forbearing, as they are profit-driven. Let me reiterate that there is no change in the Government's commitment to the provision of basic housing in the form of subsidised HDB flats. We are not touching our basic housing safety net. Our housing subsidies have enabled the vast majority of Singaporeans to own their own homes. Concessionary loans are a key instrument to promote home ownership. Hence, the Government will continue to provide HDB loans at concessionary rates to eligible buyers. We will continue to maintain our home ownership policy by providing subsidised loans for subsidised flats so that eligible Singaporeans can continue to afford good quality public housing.

However, with bank origination of market rate loans, the Government is indeed pulling back the safety net at the fringes. But this will only apply to those who do not need extra help in the first place. They are either financially better off, or those who already own an HDB flat."

Three to four years on, we are beginning to see the effects of this liberalisation of the HDB home mortgage market. Interest rates are no longer what they used to be and the value of the home has also decreased in some areas. Those that are being affected are not those at the fringe who do not need extra help. They are certainly not financially better off.

In a recent answer to a question posed in this House, the Parliamentary Secretary for the Ministry said that as at end 2006, of the 89,000 HDB flats financed by bank loans, 895 mortgagee sales of flats financed by bank loans had been completed. He went on to say that the rate of repossession was about 60 flats a month but that was on the decline.

It is, therefore, timely that the Minister update us on the following: What steps has the HDB put in place to better prepare existing or potential borrowers from banks of the risk of taking a bank loan and how to manage their debt? What steps has the HDB put in place to reduce the probability of borrowers over-extending themselves with the banks? What measures will the HDB take to assist families who have been displaced by poor judgement taking bank loans and as a result, over-extending themselves? Is the HDB aware of the fact that many banks are not willing to grant loans, a loan of less than $100,000, to buyers and, therefore, some buyers are unable to get loans from the banks unless they borrow more than $100,000? If so, what is HDB's position in this regard? Is this causing buyers to borrow more than they can afford? What will HDB do for buyers who do not qualify for both HDB concessionary loans and bank loans? At the end of the day, we cannot ignore the fact that they will obtain mortgage from the HDB or a bank when a person buys an HDB flat, ie, public housing. He does not expect to subject to same rigours as when he buys public housing.

Mr Chairman, Sir, before I answer the specific questions posed by the Members on the various HDB policies, let me just go back to the earlier answer that I gave concerning our efforts to reach the top of the premier league of global cities. And, here, I want to say that even as we are striving for that goal, I am proud that as far as our public housing is concerned, I believe that we are up there with the best in the world, with possibly the highest home ownership rate in the world. If you cast your mind back, considering that less than 50 years ago, most Singaporeans were living in overcrowded slums, squatter colonies in the city, I think you will agree with me that it is quite a remarkable achievement.

So when Members raised concerns about whether social stability will be affected by a larger population and more immigration, I can say with quite a high degree of confidence that it will not. One of the reasons for my confidence is our public housing programme. It is a programme that has not only given Singaporeans a roof over their heads but it has also provided Singaporeans with an asset and a physical stake in the nation, and successive generations of Singaporeans are able to own a piece of Singapore and call it home.

Indeed, the common experience of HDB living has played a key role in the development of the collective Singapore identity. Each HDB estate is a mini Singapore. It has residents of different races, languages, and religions living and interacting as neighbours. We learn to understand one another, and we relate to one another through this common experience. And this identity is important for us, especially as we face the challenges of globalisation and even as we welcome more immigrants to Singapore. Unless we do so, some of these immigrants will live with us in our HDB estates. They will be introduced to our local food, the local lingo, and local habits, both good and bad habits unfortunately. Their children will go to our local schools and they will mix with Singaporeans of all races. Over time, some of them will become citizens, do national service and raise Singapore families. So the cycle goes on, just as many of us were born and bred here when our forefathers came to this land as fresh immigrants from China, India and other parts of Asia and beyond.

Sir, many Members, including Mdm Cynthia Phua, Mr Zainudin Nordin and others, are worried and expressed concerns about how we are going to keep public housing affordable. Are we going to keep to our policy of housing as many Singaporeans as possible in HDB estates, especially when we are going to compete for limited housing resources? Let me just categorically state upfront that, going forward, public housing remains a key policy instrument to meet two major objectives. The first objective is obviously to meet the housing needs of the majority of the population and that will remain. The second objective is to provide a social safety net for lower income Singaporeans. Together with the CPF scheme, together with the medical healthcare support system and now together with Workfare, public housing will be one of the key pillars of our social security framework.

Let me turn to the specific questions about HDB policies, concessionary loans, housing grant, resale levy, rental flats, singles, elderly and so on. Let me try and put all these individual policies into a coherent framework, to put into context so that some of these individual policies start to make some sense.

In gist, the public housing programme serves to cater to the different housing needs of different groups of Singaporeans over the course of their lifetime. First, we meet the needs of the young couple who want a roof over their heads, and their first flat must be affordable and preferably near their parents. Next, as their income level rises and as the number of family members increases, they may want to upgrade to a larger home. Then, finally, as they grow old and their children get married and start their own families, they need cash for their retirement needs. So this is the lifecycle framework for public housing.

Let me elaborate on each of them. First, home ownership for first-timer families. To help young couples set up their first home, the Government provides subsidies in two ways, depending on the type of flat they buy. If they buy a new flat, the subsidy is built into the price of the flat. In other words, the flat is priced below its market price. Those who prefer to buy a resale flat because of location or size, the type of flat or they want it more urgently, they can obtain a CPF housing grant, which at the moment stands at between $30,000 to $40,000. In addition, the Government provides an additional CPF housing grant of between $5,000 to $20,000 for lower income households, ie, those defined as earning up to $3,000 a month. At the end of January 2007, more than 2,000 households have benefited from the additional housing grant. Over and above all these subsidies, the Government also helps first-time flat buyers by providing them with a subsidised mortgage financing loan in the form of an HDB concessionary loan. So if you take all these together - the housing subsidy and the concessionary loan - first-time flat buyers who purchased flats from HDB last year, as I indicated in the House just now, would use, on average, about 20% of their monthly household income to service their housing loans and more than 70% of those who purchase HDB flat can service their housing loans entirely from their CPF contributions. In other words, they do not have to touch their take-home pay at all.

Will affordability be affected if we have a larger population? Mdm Cynthia Phua asked this question. Our planners have concluded that we will have enough land for housing this number of people if we have to. Let me also assure her that at the same time, we will calibrate our housing subsidies such that up to 90% of Singaporeans can continue to afford a basic HDB flat. In other words, there is no change in our HDB home ownership policy. In addition, we will also not compromise on the quality of the HDB heartlands. This is where most of our people live and we will make sure that they will continue to live in an environment that is of the highest quality. So it is not just affordable but it is of the highest quality. I will leave my Minister of State, Ms Grace Fu, to elaborate on our new urban regeneration plans in her speech later on. So that was about the young family, the one who started off in life - first, HDB flat, housing subsidy, concessionary loan.

Next, I want to talk about social mobility for upgraders. We recognise that the housing needs of families will change over time. Their children grow older and there will be increasing demand for space within the home. So to help families upgrade to a larger flat, HDB provides eligible families with another housing subsidy in the form of a second concessionary loan. Flat buyers can also enjoy a second housing subsidy if they choose to buy a second subsidised flat from HDB but this second bite, so called second bite for upgraders, would be a smaller bite because they would be subject to the payment of a resale levy. This is to ensure that the Government's housing budget is skewed towards more help for first-timers who are seeking to set up their first homes. These first two objectives, ie, purchase of a first flat (the home ownership objective) and enabling them to improve themselves, upgrade if they need to (the social mobility objective) - collectively, help the household to accumulate housing equity over their lifetime which sets the stage for the third objective, which is monetisation in old age. This third objective has become increasingly important in the light of our rapidly ageing society.

So home ownership has provided Singaporeans with a valuable asset in the form of the HDB flats. How valuable? The Department of Statistics (DOS) did a study in 2005 and they found that HDB households on the average had about $154,000 in net equity. Net equity means the value of their assets minus any outstanding loan that is due, and this equity is captured within their HDB flat. We have put in place several policies to help HDB residents unlock this value that is stored in their flat, and I will elaborate on some of these options in my later replies. They can either cash out or move to a smaller flat, HDB studio apartment, or sub-let their rooms, etc.

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But we have also allowed flat owners to sublet their entire flats. This relaxation was done several years ago. Under certain conditions, they can sublet their entire flats. I would like to inform Members that we will be further relaxing some of these conditions. Currently, households have to stay in their flats for either five or 10 years, depending on whether they have an existing HDB loan or not before they can sublet their flats. With immediate effect, HDB will reduce the minimum occupation period for subletting to five years for a subsidised flat and three years if the flat was purchased without a housing subsidy.

Sir, while we have put in place a comprehensive public housing framework to cater to the changing needs of Singaporeans over their lifetime, how it benefits each household obviously depends on the individual choices and the judgement that they have made. As Mr Michael Palmer mentioned just now, whether they make right choices, whether it is a right judgement, poor judgement, etc, I would reply to him in greater detail later on.

But I think we have all seen in our meet-the-people sessions how families end up homeless, and come to us for help. When we check and trace their records, we will find that they have bought and sold two, sometimes, three, and in a few cases, more than flats. They bought and sold HDB flats when times were good, they made a lot of money. Instead of saving it, they went on a spending spree. Then they took on larger mortgages for subsequent flats, and at the end, when the musical chair stopped, property market took a downturn, many of them found themselves unable to service their mortgage loans.

This is a problem with some families. How do we help them? I think the starting point is that we have got to keep on advising and educating them - advising them that before you buy a HDB flat, it is a big ticket item, it is a long-term financial commitment, think carefully, exercise prudence, buy a flat within your means. This is a message that I have sent out, and I mentioned in the House many, many times. But I think that is not enough. We will have to put in place measures at the HDB end to also ensure that they exercise prudence and if they do not exercise it, we will take certain steps to ensure that they do not over-commit.

So to respond to Mr Michael Palmer as to what HDB is doing, we have offered financial counselling to flat buyers since 2002. We started credit assessment of HDB loans since 1997. From January this year, we will be requiring home flat buyers to produce a home loan eligibility (HLE) letter from HDB, or if you are borrowing from the banks, a letter of offer before they are allowed to proceed with their purchases. So before they buy and commit, and sign on the dotted line, they must know exactly how much they can borrow and what are their repayments like, and work out very carefully their commitments before they plunge in. This will help, I believe, to ensure that flat buyers do not over-commit when they are unable to afford it.

Sir, let me now turn to the issue of housing subsidies. Many Members have asked for greater allocation of subsidies to various groups of people. I acknowledge that, yes, there are people who are in special needs. But in general, if we are making public policy, we have to recognise that, on the one hand, we want to help, but, on the other hand, there is a limit to the amount of subsidies that the Government is able to provide. And more importantly, if we overdo this, if we over provide subsidies and give to people who actually should not be entitled to such subsidies, I think we undermine some of the larger public housing objectives that I outlined earlier.

So what is our general philosophy on subsidies? First, it is to encourage family formation and personal responsibility. We provide more housing support for first-timers versus subsequent flat buyers. First-timers who have not enjoyed any subsidies will receive more subsidies than those who are buying for the second or third time. Of course, there are certain cases where, for example, first-timers marry second-timers, etc. In such cases, we will have to tweak the situation such that if one party has already enjoyed the housing subsidy, the household would still enjoy a subsidy in the form of a grant, but instead of the full grant, he will get only half the grant.

Ms Irene Ng suggests that we relax the rules on the sale of new flats for singles. In the same spirit of giving more to those who need it more, we give more subsidies to families as opposed to singles. Why? Because families have more pressing housing needs. Yes, singles would also need housing, and that is the reason why we have, over the years, relaxed many of the rules for singles. Those who are aged 35 and above are allowed to buy resale flats. Those who earn up to $3,000 a month are eligible for single's grant of $11,000.

But why resale flats, why not new flats, Ms Irene Ng asked. For the same reason that they get a single's grant and not a family grant. In other words, the level of subsidy for new flats is much higher, and it is for a family unit. She asked why we cannot have differential pricing where you sell a new flat to a single at a different price. In cases where HDB is able to unbundle the housing subsidy from the new flat, it has actually made them available to singles. Recently, HDB released a batch of 250 unsold flats for sale as resale flats on the open market. For these flats, first-timer singles can apply for them and also make use of the single's grant to purchase these flats. So it is possible. But for the general stock of new flats, we are not able to have this differential pricing formula at the moment. But where we are able to do so, yes, singles will be able to continue to enjoy the subsidy and, at the same time, buy themselves a new flat.

Mdm Cynthia Phua asked about giving downgraders a concessionary loan. The policy is that second-timer households that are moving naturally or downgrading will not enjoy the second concessionary loan. Why? Because, generally, when they do so, they are unlocking the value from their first flat and they actually have quite a significant proceed from the sale which can then be used to finance the purchase of their new flat. So if you are selling your first flat and you have enough for your second flat, what is the rationale for us to provide the second concessionary loan. But there are downgraders who are facing financial difficulty. I recognise that. For these cases, HDB will grant concessionary loans to them on a case-by-case basis upon appeal. We have to do this because if we change our policy, as the Member wants us to do, then in fact most of the people who are either downgrading or moving naturally will be benefiting from something which they do not need to benefit from. But where there is a need, where the case is a compelling one, and we look at every case, HDB will grant a second concessionary loan, and even a third one, sometimes, even a fourth one, and it has been done before.

Similarly, those who have tried or unable to secure a bank loan, for whatever reason, can also apply for a concessionary loan from HDB. I am aware, as Mr Michael Palmer pointed out, that some banks may not be willing to grant mortgage loans below a certain quantum. HDB does check and consult with the various banks and financial houses, and they are told that it is possible for flat buyers to secure mortgage loans which are lower than $100,000 - in fact, I am told, as low as $40,000. So it depends on the banks and it depends on the credit worthiness of the individual and the individual circumstances. But we will have to leave this to the banks.

Sir, the point about the concessionary loan and the bank loan is that those who want a basic first flat, the first timers, and even the second timers who are upgrading, will continue to enjoy the concessionary loan. That will not be changed, and this is what I said when I spoke about the concessionary loan in this House. But those who require bank loans are those who are getting market rate loans in the past - those who have high net worth, those who have private property, and so on. This is still the situation that, as far as basic housing is concerned, as far as the first house and the second house are concerned, we will not change our policy on providing concessionary loans for eligible Singaporeans.

Let me now touch on Members' questions about the HDB building programme and the supply and demand for public housing. I think Members, including Mr Zainudin Nordin and Mdm Cynthia Phua, asked about housing for the elderly singles, and so on. Let me just briefly inform the House that we are making good progress with clearing our stock of unsold flats. We currently have about 4,000 to 5,000 unsold flats available for sale. This is a far cry from the 20,000-over flats that we had in the past.

On smaller flats, we are now building smaller flats. We started building smaller flats under the BTO programme a few years ago, starting with the 3-room flats. We have offered about 1,000 of such 3-room flats up to now. We are going to build 2-room flats and, to date, we have launched for sale about 270 2-room flats. We have also launched about 1,400 studio apartments for elderly citizens so far. We are going to launch some more in the course of the next few years. For example, in 2007, we intend to launch 4,000 new HDB flats and half of 4,000 will be the smaller flats - the studio apartments, 2-room and 3-room flats.

Let me just make one other point about building of flats in mature estates. I wanted to make this point because Members of the House have raised this with me and I have also received many letters and emails about young couples wanting new flats in mature HDB estates. I want to make the point that we cannot build the new flats in the area of their choice all the time. This is why I mentioned earlier that first-timer young couples should also be looking at resale flats, not just new flats. This is important because we do not have space to build many new flats in mature estates, and if we try to over build new flats, then I think we will be storing problems for ourselves later. So I would like to urge young couples to also look at HDB resale flats as a first home for them and make good use of the housing grants that the Government is giving to them.

One final announcement I want to make is on DBSS, that is, the Design, Build and Sell Scheme. We launched the first one in Tampines. I think Mr Zainudin Nordin mentioned that it was very successful and, yes, it was. Are we building anymore? Yes, we will do so. We will launch more new sites in 2007 and the next site is scheduled to be in Kallang, Whampoa.

Sir, in conclusion, let me reiterate that we are well on track, in terms of public housing to prepare Singapore for the future. I want to assure Members that we remain committed to provide flat buyers with a range of housing options. We also want to commit that these flats would remain affordable. There would be flats that meet their specific needs and budgets. We would also work with Singaporeans to make this small island nation of ours their best home.

Rejuvenation of HDB Estates

Sir, the Minister has briefed the House on plans to rejuvenate HDB housing estates. Many of my constituents are excited about this makeover plan. This would change the way we live, work and play. Ultimately, I believe this would certainly enhance the attractiveness of our heartlands and improve the quality of life for all. May I ask the Minister on the timeline for this makeover? And will this makeover also involve other land users within the HDB housing estates? Related to the issue of rejuvenation of HDB estates, in recent years, we have seen changes in the retail landscape in a few of our HDB towns.

For example, we have seen the changes in the Toa Payoh Town Centre. We have also seen the NTUC Hypermarket in Ang Mo Kio. In Tampines, we have seen the emergence of new retail concepts in Singapore, with the development of IKEA, Courts and the upcoming Giant Hypermarket which is opening soon.

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The renewal of town centre retail landscape and the new retail forms in Tampines have given shoppers in Singapore's heartland an up-to-date retail environment and new options for them to do their shopping. While these changes have given the shoppers additional and more attractive as well as entertaining shopping destinations, it will likely affect the shoppers' patronage pattern in Singapore. In a small city-state like Singapore with an efficient transport system, the attraction of newer, bigger and up-to-date retail centres which are easily accessible by public and private transport are likely to dominate the shoppers' choice of retail destinations. Shoppers may give their shops at the neighbourhood centre a miss for the retail centres in this related town centre and new retail forms which are able to provide a large variety of goods and services, as well as a more entertaining shopping experience.

Currently, we have already seen some shops in the neighbourhood centres having problems in attracting shoppers within their catchment. There are arguments which direct the problem to the shopowners who are not able to keep up with the changes in the expectation of the shoppers. During my walkabouts, I am surprised to observe that a few of the shopowners are operating the same way they used to operate a few decades ago. I believe that many of the MPs have been working closely with their merchant associations to liven up the area to enhance their attractiveness. However, we cannot deny that there is a limit to the amount of money and time a shopper has in his or her resource allocation. Thus, a shopper has to make a choice in getting his items or in his search for entertaining shopping destinations.

May I ask the Minister on how will the makeover of HDB town centres and insertion of new retail concepts like IKEA, Courts and Giant affect the retail landscape in a typical HDB housing estate? In particular, how will this affect the retail landscape in the neighbourhood centre? Will the HDB be changing the retail planning parameters in its neighbourhood commercial space allocation? Will there be any exit strategy for these neighbourhood shopkeepers who would be competing with these new retail centres and big superstores? Are there any efforts to educate HDB neighbourhood centre shopowners on the business strategy in preparation for the changes in the retail landscape?

In its attempt to rejuvenate the HDB estates, I would like to suggest that the HDB relook at the relevance and adequacy of the neighbourhood retail facilities in a typical HDB neighbourhood. If required, we should redevelop existing neighbourhood centres which have little relevance during the current context. We have seen changes in the demographics of residents in the different HDB estates in the last few decades. I would also like to suggest that the HDB carries out a retail space needs survey and analysis to better understand the expectations of the residents with regard to the demand of shopping facilities in the different towns and neighbourhood centres.

Sir, in addition to our existing shopping landscape, the remaking of Orchard Road, the upcoming Integrated Resort in Marina Bay and new retail developments in the downtown area will provide an exciting and entertaining shopping destination in the central area. I believe that an exciting and vibrant retail landscape in the heartlands will add to the feast of shopping destinations for Singaporeans in this city-state of ours.

Lift Upgrading Programme

Sir, the Government has made a commitment to complete the Lift Upgrading Programme for all eligible HDB blocks, including blocks in Opposition-held constituencies by 2014. As this 2014 commitment is only applicable to eligible blocks, I would like to seek clarification from the Minister as to how many blocks are currently classified as being ineligible and, therefore, may not have their lifts upgraded by 2014.

Could the Minister also give us an update on the number of blocks that have been upgraded by the HDB and Town Councils since the commencement of the Lift Upgrading Programme? How many blocks have yet to be completed, and is the original programme running on schedule, such that the 2014 deadline will be met? Could the Minister also tell us if the Lift Upgrading Programme in Potong Pasir is progressing as scheduled, as promised by the MP during the last general elections? If I recall correctly, the promise was that all blocks in Potong Pasir will have their lifts upgraded within five years.

Mr Chairman, Sir, the Lift Upgrading Programme provides lifts on every level and additional benefits, such as decorative tiles, security cameras, planters and better lighting. I would like to request that the Ministry consider implementing the cost cap to qualify for the LUP on a per-precinct basis, rather than on a per-unit basis. The Minister could consider using the cost cap per benefiting unit to identify the blocks that are eligible for LUP. After this, the cost could be looked at from an accumulated precinct-wide basis so that the blocks in a particular precinct would be treated similarly for the features that they will have. For example, the blocks in a single precinct will have different designs for point blocks, segmented blocks, common corridor blocks, etc. Because cost is capped for each benefiting unit in the block, the cost per block is fixed. The Minister says that when there is enough money to tile the lobbies of some blocks but not the others, there would be a stark difference between the tiled blocks versus the untiled blocks after the upgrading. We will also not want a situation that, due to this anomaly, all blocks are deprived of tiles. Hence, this suggestion that the cost cap, once the eligibility of the blocks has been determined, be based on a precinct-wide aggregate basis.

Sir, may I take the cuts together, please?

Yes, please.

Sir, the very successful introduction of the Lift Upgrading Programme for HDB is a hallmark of the PAP in its management of public housing in the heartlands. The benefits to the residents more than compensated for the cost that the flat owners have to pay, taking into account all the subsidies from the HDB and the Town Councils. Because of these, I have to ask the Minister what can his Ministry do to put the LUP on an even faster track.

Since the new LUP was launched in 2001, the residents in Nee Soon South are waiting for their turn. Without fail, at every house visit, they will ask me when are they getting their lifts upgraded. The current pattern for upgrading appears to be a sprinkling here and there and, somehow, the showers do not fall on Nee Soon South. I feel that there should at least be an indicative date given for these homeowners. This will enable them to make informed decisions about their future and not leave them in a limbo.

Furthermore, with the rising activities in our construction industry, many residents also fear that this will have an impact on the construction cost. They are concerned that, should there be an undue delay in LUP, what if the cost escalates? Will HDB and the Town Council raise their subsidies so that my residents will not be penalised? As it is, the price of readymix concrete has gone up spirally recently.

Water Seepage in HDB Flats

Next, I would like to raise another problem that very often crops up too when I go on house visits. And this is about leaks in their HDB flats. This is apparently a common problem, especially for older flats. In some instances, water also seeps through the external walls and windows. I am currently carrying out a survey of all the HDB blocks in Nee Soon South to ascertain the extent of the problem. Finding the leak is one problem. Getting to the source of the water and the right method of repair is the other. Very often, the leaks come back soon after the Town Council has repaired it. In some cases, it has also caused tension or quarrels among the neighbours, ie, those upstairs and downstairs. I am sure my other parliamentary colleagues too would have faced these problems. I hope the Minister can share with this House an overview of the situation in Singapore and whether the Ministry will consider rolling out a national programme to tackle the leaks so that it can be more cost effective to carry out such works on a larger scale.

On this note also, it would be good to know if the HDB carries out any R&D to determine how it can improve on the situation, perhaps through the use of better water-proofing materials, better sealants for windows, detailings, etc, to minimise the occurrence of water seepages.

My Minister has informed the House on how we have comprehensively and systematically planned for our long-term land-use needs. This includes an investment plan to sustain and upgrade the quality of our living environment so that Singapore remains a home of choice for our people.

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With some of our flats reaching 40 to 50 years old over the coming years, it is timely for us to carry out total redevelopment of some of our HDB heartlands. The transformation of our older estates to a new generation of housing estates will raise HDB living to new heights. Given the scale and scope of such a programme, it is estimated to cost the Government about $1 billion a year when the programme is in full swing. In this new generation estate, not only will we adopt ideas on sustainable development, we will incorporate features that enhance our living experience. We will do so without compromising our commitment to maintain affordable public housing. This will not be just a HDB initiative. It will incorporate ideas and technologies from agencies, such as URA, PUB, NParks, LTA, NEA, and so on. Construction of this new-generation public housing estate in the Dawson area of Queenstown is expected to commence within three to four years.

Let me give you a glimpse of what this new-generation HDB housing will be like.

To begin, you will live in a park-like environment. We call this “Housing in a Park”, which mirrors our vision for Singapore as a “City in a Garden”. Looking out from your window, you will see lush greenery and landscaping, including sky gardens in neighbouring blocks. Depending on where you live, you may also enjoy water features, play areas and water-sensitive urban features. Car parks will be built beneath the blocks, so that more greenery and open spaces are available at ground level. With the car park podiums integrated with the blocks, you can walk to your cars, sheltered from the elements of the weather. In addition, the estates will be integrated with transportation nodes, such that there is accessibility to buses or trains. You will also find it easy to move around your estate using integrated covered linkways in a barrier-free environment. Your flat will adopt universal design features which enable residents to age-in-place. There will be environmentally-friendly features to save water and energy. Recycling will be very convenient with centralised chutes. Your regenerated estate will also retain some of its heritage and identity that are associated with the area.

One final point is this. The new generation of HDB estates will be built to encourage greater community participation and ownership. For example, you and your neighbours may collectively decide on what communal facilities to have. More spaces for interaction will also be provided to encourage social integration. The agencies are currently working together on the feasibility of the new ideas. HDB will launch a public exhibition later this year to showcase the new concepts and invite public feedback. Besides the new heartland regeneration programme, the Government remains committed to upgrading and maintaining our existing HDB estates so that they meet the needs of the residents. Let me now update Members on the progress of the Lift Upgrading Programme (LUP). The Government has committed to provide lifts stopping on every floor for eligible blocks by 2014. We have made good progress. As at January this year, we have selected around 3,000 blocks for lift upgrading. This is more than half of the 5,300 blocks currently eligible for lift upgrading. We will maintain this pace so that all eligible blocks will have their lifts stop on every floor by 2014.

Mr Charles Chong has asked for the number of blocks that are not eligible for lift upgrading. My Ministry had set a cost cap of $30,000 per benefitting unit as eligibility criterion for the LUP. The purpose of the cost cap is to maximise the LUP budget and to allow as many residents to benefit from the programme as possible. The cost cap is necessary because the cost of lift upgrading can be very expensive, and it does not make sense to provide lift upgrading at any cost. At the present juncture, there are about 200 blocks whose LUP costs exceed the cost cap.

HDB will look at new technology and methods to bring down the costs so that more blocks can have their lifts upgraded. HDB has made significant progress in finding new solutions. In February last year, HDB introduced the use of machine-roomless lifts, lighter materials for lift shafts and new procurement methods to bring down the costs. This allowed 250 blocks that previously exceeded the cost cap to qualify.

In November last year, we announced new lift solutions again, such as shaftless lifts, smaller lifts suitable for low-rise blocks, and reconfigured lift access for blocks with internal voids. That allowed another 520 blocks to qualify for LUP. With these solutions, 96% of HDB blocks without full lift access are eligible. HDB will continue to pursue cost-effective solutions.

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Mr Wee Siew Kim suggested costing the blocks in the precinct on a shared basis so that the costs of the more expensive blocks can be shared with the cheaper blocks. While the intent of this approach may be good, it would not be fair. Certain block configurations, such as segmented blocks where a new lift shaft would benefit only two units per floor, are much more expensive to upgrade compared to a standard block with common corridors. The difference can be as large as two to three times more. It would not be fair for the residents of standard blocks to cross-subsidise the segmented blocks.

We are upgrading our lifts as quickly as we can. Our original target was to complete lift upgrading by 2019 and this was just for high-rise blocks. We have brought the target for completion forward to 2014, and have included an additional 800 low-rise blocks to the number. We have correspondingly increased the budget to cater to the accelerated pace of lift upgrading, from $410 million for FY2004 precincts to $630 million for FY2006 precincts. Taking into account the capacity of the construction industry, as Ms Lee has rightly put, and the funding involved, I believe that 2014 is a realistic target.

Mr Charles Chong has asked about the progress of lift upgrading in Potong Pasir. This issue has been discussed quite extensively in this House. I think the question is probably best answered by Mr Chiam at another time. In the interest of time, I will not go into that here.

Mr Charles Chong has also asked about Town Councils’ maintenance of estates so that they do not degenerate into slums. My Ministry shares that concern. It is for this reason that we have required Town Councils to build up their sinking funds over the years for the essential cyclical maintenance of their estates. These works include the replacement of roofing systems, water tanks and electrical systems, and repainting of blocks. HDB has issued guidelines to Town Councils for the recommended cyclical replacement schedule for these items.

Ms Lee Bee Wah asked for a nation-wide programme to address the problem of water seepage. MND is studying the feasibility of a more structured and systematic programme, as suggested.

In conclusion, we have a vision to bring public housing to new heights in Singapore, thus providing a first-class living environment for the 80% of Singaporeans who live in HDB estates. By making our HDB heartlands distinctive, attractive and comfortable, we can make Singapore a great place to live, work and play, and the best home for every Singaporean.

Housing for the Elderly

Madam, we need to provide more housing options for our cash-poor and asset-rich elderly. Many of them with medical and household bills and worries for their future financial security have seen me at my MPS to ask for more options. But each option that the HDB has provided has created more problems. If they sell, say, their 4-room HDB flat, they may have a little profit but not enough to buy another resale flat after paying for all their bills. No bank would give them a loan. They are often jobless or lowly-paid and their prospects of better jobs are scarce.

Some who have approached the HDB get this reply. They can get a concessionary loan from the HDB if they upgrade to a 5-room flat, but not if they downgrade to a 3-room flat. I do not see how that will solve their financial problems. If they want to downgrade, then they have to get a bank loan. That is what the HDB tells them.

Madam, this is a no-go for the elderly. So option number two: can they buy a studio apartment for the elderly? I am assured to hear the Minister say that there will be more apartments built in the future. But the reply that came from HDB to my request is often that HDB has earlier announced that there would be no more studio apartments for sale in the future. If there are any studio apartments available for sale, HDB will announce the details of the sale in the mass media or the HDB's InfoWeb. This would not give any confidence to our elderly who are caught in a bind and who plan for how they are going to liquidate their assets so that they can catch up. In other words, they are just stuck. If they cannot buy an HDB flat from the HDB, can they then rent from the HDB? And that is where they get bumped up with another problem, which is when the 30-month debarment period kicks in. Those who have sold their flats in the open market cannot rent a flat from the HDB for 30 months.

Can they rent a flat from the open market? They cannot because the prices of rental flats have gone up in the open market. I did a check on the rent for a 3-room flat in Tampines in the open market. A whole unit would cost about $1,000-$1,200 a month. That is a whole lot of money. So, do we then tell them, "Okay. Just rent a room." If they rent a room, the master bedroom will cost about $400-$450 a month. I think it will be quite sad if we ask them to do such a drastic downgrade from a 3-room to a 1-room in a stranger's flat because they cannot liquidate their assets in a viable way.

If they cannot buy another flat or rent a flat from HDB in the open market, can they stay put in their flat and apply for a reverse mortgage? It is not a viable option either. Only NTUC Income offers a reverse mortgage scheme and the typical payout is $141 a month for a 3-room flat; $208 a month for a 4-room flat; and $274 a month for a 5-room flat, and this is based on a 28-year tenure from the age of 62 to 90. Madam, this sum from $141 to $274 for a 5-room flat is barely enough to buy food for a month, much less to rely on. And if you want to pay your medical bills, this is the not the way to go.

I would like to ask the Minister to make it easier for the elderly to downsize, to rent a flat and also to improve the attractiveness of the reverse mortgage scheme. The reverse mortgage scheme has proved popular in Australia, the US and also, recently, catching on in South Korea. In South Korea, the reverse mortgage scheme incorporates the provision of Government guarantees to boost its value. I would urge HDB to spur the reverse mortgage scheme by performing a market risk balancer role, by perhaps taking an underwriting role.

Another scheme worth looking at is the home reversion scheme which is gaining popularity, I read, in Australia. It involves a portion of the property being sold at a discounted price that is usually 36%-60% of its value. By providing the discount, sellers will not only receive cash upfront but also have their right to continue living in their homes until they sell it or pass away. The loan provider will be entitled to place a caveat on the property and enter into a forward sale that will put off settlement until sale or death. Can the Minister look into that?

Madam, it is estimated that there will be about 600,000 senior citizens by the year 2020, a number that is equivalent to five Toa Payohs. Most worrying will be those aged citizens in the low-income groups. With small CPF contributions and meagre savings, they may not have the means to own their own homes and may be forced instead to rent low-cost HDB flats.

There is another group who may be staying with their children but because of family squabbles, are forced to seek lodging on their own. Renting flats, even HDB flats in the open market, may not be economically feasible for this group of people with little or no disposable income as they are subject to market forces of demand and supply.

Madam, demand for rental of HDB flats has jumped in the past 12 months as a result of severe over demand from private sector where rents have also climbed. I would like to ask the Minister, in addressing the new developments, will HDB be reviewing the criteria for rental flats for the aged low-income?

Among the aged, there will be those elderly who can better afford housing, healthcare and recreational facilities. Last April, MND announced that it has shortlisted a few potential sites for construction of a retirement village. Can MND provide an update and details of this project and when such a retirement village could be launched? One possible challenge in such projects is the high cost of land in Singapore. Is MND studying the feasibility of locating the retirement village in lower cost neighbouring countries? One good example is the South Johor Development Zone which the Johor State government is wooing Singapore investors. Perhaps the lower cost of land there plus other attractions can make the retirement village economically feasible.

Barrier-free Access

Madam, the Government recently announced that it will make available $32 million over five years to implement barrier-free access in housing estates. These funds will be disbursed through the Community Improvement Projects Committee (CIPC). Based on media reports, Town Councils will be required to co-pay 5% of the cost of projects using these funds.

The use of the CIPC, coupled with the requirement for co-payment by Town Councils, effectively excludes the Opposition wards of Hougang and Potong Pasir from access to these funds. CIPC funds are channelled through the Citizens' Consultative Committees, but the advisers to the CCCs in those two wards are from the PAP and are not the elected MPs, which is the case in the PAP Government wards.

So I think that is very unlikely that the CCCs and Town Councils in Hougang and Potong Pasir will be able to come to an agreement on how to use such funds. This penalises the disabled and elderly folks in those estates. If we are serious about making society more friendly to the disabled and the elderly, then this method of disbursing the funds is unhelpful and unfair. In fact, it directly contradicts the vision of an inclusive society for Singapore, knowing that the use of the CIPC will almost inevitably exclude Hougang and Potong Pasir from access to these funds.

Madam, these funds are for barrier-free access. In an ageing society, that is increasingly a must-have and not a good-to-have, like upgrading. They should not be subject to political considerations such as whether the ward in question is an Opposition ward. I would suggest that a better way to distribute these funds is to make direct grants to the Town Councils for their use. After all, the Town Councils would know the best ways in which to apply these funds and what are the most pressing areas of need for barrier-free access. This would truly further our vision of an inclusive society.

HDB

Madam, lately, MPs have been seeing more cases of residents with apparently no alternative accommodation being evicted from their flats by the banks due to arrears in their instalments. These evictions are sometimes done even when these families have young children with them. Some ended up sleeping in void decks or in public parks and at least one in his lorry in the carpark until alternative shelters can be found for them by MCYS.

Madam, I am not sure that each and every one of these cases involve people who are homeless by choice. Could the HDB work out an arrangement with MCYS to ensure that families facing eviction would be offered temporary shelters before their flats are repossessed? While it is not possible to ensure that everyone behaves in a financially prudent manner and avoid getting into such trouble, we cannot afford to aspire to be a top first-world country if we have our homeless sleeping in public places, whether by choice or by circumstance.

Rental Flats

Rental flats are heavily subsidised and I agree we should leave it for those who are really in need. But with the increasing demand for rental flats and to avoid people trying to stay outdoors, will the Ministry actually consider a multi-tier approach for rental flats like offering rental flats at different rates based on the income affordability so that the rental flats can be made available to more potential residents that may lose possession of their flats?

Madam, first of all, let me address the questions that were posed by Ms Irene Ng, Mdm Ho Geok Choo and Mdm Cynthia Phua about the need for more public housing support for the elderly and the low-income.

I have earlier explained earlier in this House the overall framework for Government's measures in catering to the housing needs of Singaporeans. Let me now elaborate a bit more on the specific measures that we are taking to help the elderly and the low-income households, especially those in financial difficulties.

As Members noted, post-retirement financial security is an important consideration for the elderly. Fortunately for us, most elderly HDB lessees have a store of wealth and this is in the form of that HDB flat that they own, a flat which they have bought with their hard-earned savings and which the Government has facilitated through the provision of housing subsidies and concessionary loans. They have this store of value. The question is: how do we unlock this store of value? How do we help them to monetise their flats to supplement their CPF and also other savings?

In this regard, the HDB has put in place a range of options which would suit various elderly households, their different circumstances and needs. Let me just go through these options.

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First of all, staying with the family - I think this is an important option. This is an option that many MPs do not mention when they write to the HDB to appeal on behalf of their residents. But this is something which I think needs to be highlighted to the Members and also our residents. Staying with the family means making use of the availability of alternative accommodation provided by their children. And if they can do so, they can actually monetise their flat by either selling or sub-letting their flat and realising a steady stream of rental income. This is actually quite a lucrative option. The rental rate for a whole flat is quite substantial now. I think Members may have read in the papers that, in fact, it has gone up. I know that in Tampines, my constituency, the average rental for a 3-room flat is about $1,000. So far, about 12,600 households in Singapore have taken up this option to sub-let their whole flat. We have opened up the housing HDB market to allow people to sub-let their whole flats without having to do it surreptitiously, locking up one room and so on. So now they can actually sub-let the whole flat openly, legally, provided they meet certain conditions. In fact, we are going to further relax these conditions, as I have announced earlier. So this is one very viable and very lucrative option.

The next option, of course, is downgrading. They want to stay on their own and they do not want to bother their children. They can do so. How? By selling their flat, and buying a smaller flat or a studio apartment. An elderly household downgrading from a 3-room flat to a studio apartment can unlock about $80,000 in cash and CPF proceeds to meet their non-housing needs, assuming there is no outstanding loan. So, again, this is a fairly substantial amount. We have offered about 1,400 studio apartments to date, and they have been very well received. Almost all of them have been taken up and we intend to build more. So we will resume the building of studio apartments as well as other small flats such as the new 2-room flats which I have announced earlier. For this year, out of the 4,000 new flats that they are going to build, about a quarter of them will be studio apartments or 2-room flats which will allow more elderly lessees this option of downgrading.

Then there is the other option of ageing in place. I think Ms Irene Ng spoke about this as an option. This is an option that is favoured by quite a few of our elderly lessees. They like the flat, they like the neighbourhood, they like the neighbours, and they do not want to move. Fair enough. So there is another viable option for them. They do not have to move. They can sub-let one or two rooms if they are living in a 4-room or 5-room flat to earn rental income. Again, this is a very lucrative option because the current going rental rate for just a room in an HDB flat itself, depending on its location, can be anything from $250 to $500. No inconvenience to them, they stay where they are, rent out a room to a respectable couple or to a single person and collect $250 to $500 a month.

Yet, another option is reverse mortgage. Since March 2006, HDB has relaxed its regulations to allow the elderly to commit their flat to a reverse mortgage scheme and to receive a steady flow of income. Now, this is a scheme that is offered by the private sector and HDB does not intend to offer this scheme or to take up the risk, as suggested by Ms Irene Ng, but it is a viable scheme for a few people and they have taken it up. But, nevertheless, I accept that this is still not as many as we would like to see taking up such a scheme, maybe because they are not familiar with it. So we will keep on looking at it and see how we can further improve or tweak the scheme to make it more attractive. I want to assure Ms Ng that we will continue to also explore other monetisation options, such as the home reversion scheme that she talked about, to give the elderly a greater variety of choices.

Let me now talk about barrier-free accessibility which Mr Siew Kum Hong mentioned. It is an important part of our programme to help the elderly to age in place to make sure that the environment is barrier free and more elderly friendly. My MOS has already updated Members about the progress of the LUP which is also part of the barrier-free accessibility programme, and we are also supporting the Town Councils. We will extend the barrier-free accessibility to all HDB precincts by 2011.

How do we fund it? We have a CIPC fund. The CIPC fund is meant to help or improve projects within the community. So we decided that we will expand the CIPC fund to also fund the construction of the barrier-free accessibility (BFA) items such as ramps, railings and so on. All Town Councils will be invited to draw up their BFA masterplans for their estates and apply for access to the CIPC fund. I just want to make it very clear at this point that we are not excluding any Town Council from applying for these funds. Everybody is welcome to apply for the funds and, in fact, we have written to every Town Council, including to Mr Low Thia Khiang, to apply for the CIPC funds in order to implement BFA. So I do not think there should be any problem in so doing. This is not subject to political consideration, it is just commonsense. Here you have a CIPC fund and you are using it to improve the neighbourhood and the precincts and there we have a need to improve barrier-free accessibility. Why do we not put the two together? So that is the reason why we have expanded CIPC to allow for BFA and the simple procedure is to apply for it through the CCC. Why the CCC? Because they are the ones who are most familiar with the neighbourhood. If all Town Councils do this, follow the procedure, draft their BFA masterplans and apply for access to the CIPC funds, I am sure that by our target date of 2011, all Town Councils will be redeveloped and all the BFA facilities will be put in place.

Let me summarise how we are helping the elderly with their housing needs. First, we will continue to facilitate monetisation. We will help the elderly through downgrading and building more studio apartments and smaller flats. Second, we will explore the enhancement of other monetisation options to include those who wish to age in place. And third, we will continue to make our housing estates more elderly friendly through lift upgrading and BFA.

There is another issue which Members have consistently brought up. Mdm Ho Geok Choo raised this issue, and this is the issue of low income households. There is no doubt that even as we continue to ensure the affordability of our flats for the vast majority of Singaporeans, there are citizen households who do not have the financial means to afford home ownership. And I think it would be wrong for us to try and get them to go into home ownership flats when they cannot afford it in the first place. So for these households, we are providing a roof over their heads through the public rental scheme. And because they are very, very low income households, these public rental flats are very heavily subsidised. The public rental scheme is really meant for the very low income families in our community. They are not meant to be rental flats for those who want to leave their homes or their children want to throw them out of their houses or they feel that they want to live on their own because it is more convenient and so forth. I just want to make this point very clear that our public rental scheme is meant for those families who are extremely poor and in real need for the public rental flats.

To help these needy households, towards the end of last year I announced that we would increase the supply of subsidised rental flats. We started off by converting some old flats at Boon Lay and Woodlands into 1- and 2-rooms rental flats. This will generate about 1,000 new rental flats. We are also going to build new rental blocks at Chua Chu Kang, Sembawang and Yishun and we intend to convert another two blocks at Redhill to rental flats. All these will yield a total of 2,200 rental flats by 2009, but this is the supply of rental flats. Let me remind Members that we still need to ensure that the rental flat subsidies are targeted at those who really need them and not those who would like to have a cheap place to stay. That is the reason why we have aligned our rental rates to household incomes. The majority of our tenants, about 80%, who have household incomes below $800 a month will not be affected. They will continue to pay the heavily subsidised rent of about $30 a month. So, if you are staying in a 1-room flat, you pay $30 a month. Those who have incomes between $800 and $1,500, they will now pay about $110 per month. Those above $1,500, we are raising it to between $180 and $250 a month. This last group, those who are earning more than $1,500, actually are quite able to afford a small flat with some help from the Government. We will help them along this direction. We will give them an additional housing grant. Indeed, this is why we must continue with our home ownership policy - we want to help Singaporeans who can afford to, to own their own homes.

Let me now address Ms Irene Ng's point about the permanent debarment scheme. She asked whether we will review the rule that debars somebody for 30 months from coming back to the housing market. Specifically, she asked whether we could remove the debarment rule to allow the elderly persons to sell their flat and switch to a rental flat. The question in this case really is not about the debarment scheme, it is really about our subsidy policy. It is about whether we want to provide yet another subsidy, the third subsidy in some cases. Earlier, I have explained that we provide a first subsidy, and, in some cases, a second. The question now is whether we are going to provide a third one, since HDB rental flats are essentially subsidised flats. We should really be reserving these heavily subsidised rental flats for those who have no other housing options.

In the example she cited, she talked about those who are downgrading, renting from the open market, reverse mortgage, and so on. But there was no mention about staying with the family. In many of the cases, when we investigate, we find that they actually have three, four or even five children, all of whom have their own flats. So we asked them why is it that they do not stay with their children. They said, "Oh, it's inconvenient" or their children do not want them to stay with them. Why is it that the children they raised do not want to allow them to stay? Surely, it is incumbent upon the children to look after their parents' housing needs, rather than to toss them to the Government.

It is important for us to continue to maintain our family focus, to insist that if you have children, if you have somebody who can afford to house you, this is your first option and not your last option. So, this is the reason why every appeal case of elderly families who do not have a house or who have lost their house, and want to come back to the rental housing market, we examine it very carefully. One of the questions we ask is: "Do you have a family?"; "Do you have children?"; "Are they able to house you?". As for those who are having financial difficulty with the mortgage loans, HDB, as a general policy, says, "Look, this is between you and the banks. You may lose your flat because you are not able to repay your loan. We will help you to talk to the bank. We will help you to refer your case to maybe the CDC or VWOs. We will try and help you in these other ways."

But we cannot say that because you have lost your flat, therefore, automatically, you will be entitled to an HDB flat. HDB will always examine every case carefully and, if it is a deserving case, they will consider either granting them another concessionary loan to buy a flat or give them a rental flat.

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So these are the ways that we try to help these families - whether it is the elderly, the low-income or those who have lost their flats. I stress again that not all mortgagee cases need HDB's help with their housing arrangements. Many of them, after investigation, find that they can actually reside with their families, friends or relatives, and they do so, and we encourage them to do so until they are ready to purchase the next flat. My Parliamentary Secretary, in an answer to a question a few days ago, told the House that we have about 900 households that are affected by mortgagee sale action so far. This is about 1% of the total number of mortgage loan cases by the banks. Out of the 895 households that are affected so far, 273 have appealed for help. Of these, 131 were offered a rental flat while another 13, or 5%, who met the credit assessment guidelines, were provided a concessionary loan for another flat.

Madam, in conclusion, let me just restate again that our housing subsidies are limited. They need to be very carefully and equitably distributed, with focus on the truly deserving cases. So personal financial responsibility is the key; family support is the key and where such is not available, then the Government steps in to provide help to those who have no other options.

HDB Shops

Madam, the unique feature living in our heartland is the accessibility to retail shops. There are about 17,883 commercial establishments in 2005, comprising shops, eating houses, offices, kiosks, and so on. This is no small number. I have lived in three countries, each for a protracted period and in all these countries, you had to have a car to shop at the nearest grocery or supermarket or eat at a restaurant. Unless you have been subjected to this inconvenience, you will never appreciate the service provided by the proximity of HDB shops to residents, in terms of convenience and saving of transport costs and storage. For some, the shopkeepers are familiar faces of the neighbourhood and a source of friendly social chats. To the elderly, these are the familiar things that they cling to as the environment changes around them. Our HDB shops are, however, challenged by changing shopping habits and new forms of competition.

The Economic Restructuring Committee's report in 2003 highlighted many problems faced by the HDB retail setup. One of the three recommendations is to correct the over-supply of shops and this has been acted upon by the HDB through its restructuring programme for shops in 2005. But this alone will not help them to keep alive in the long run. Departmental stores and large supermarkets are now co-located with them in the heartland. The warehouse retail scheme in Tampines, combined with good roads, ample and free parking and cheaper COEs, is yet a new challenge to our heartland retailers. The RC correctly pointed out that these shops lack marketing savvy, have no scale individually, employ untrained staff and usually have strong resistance to change. Individually, without help, they would probably not survive in the long term. But the services they provide to residents and the character they lend to our towns, they are worth helping to continue to evolve and thrive. Recently, after Courts and IKEA opened in Tampines under WRS, the Tampines Business Council got retailers together and launched a counter-promotion exercise during the Christmas and Chinese New Year periods with light-ups, lucky draws and mini-concerts to retain and draw the crowds.

During my walkabout, I know the neighbourhood shops are very happy with this campaign. Bringing them together and collectively executing programmes to counter competition is one way to inject new strength and level of entrepreneurship to these retailers. We should also not underestimate the strength of the merchant associations. In my constituency, the Merchant Association formed by Mr Yatiman in 1990 got together with the grassroots to revive a failing wet market and neighbourhood. Together, they relocated the many small illegally sublet stalls in HDB shops into a well-organised centralised wet market. Today, it is thriving and a great weekend hangout for food and socialising.

My question to the Ministry is: other than the RPS, what other assistance is the HDB offering to the retailers to help in their business, namely, is HDB well engaged with the retailers and hear them and review policies that may be counter-productive to their business? Secondly, how can they be trained and upskilled to reorganise and meet the new service level demanded by new shopping habits and the HDB heartlanders? Is there also a possibility that a dying shopping neighbourhood be turned over to a management company to change it into a themed shopping neighbourhood, much like the hip and happening Holland Village or a town to buy and bargain for the latest electronic gadgets like Akihabara in Tokyo or to a place where they can buy fresh fish, like the Sydney Fish Market?

Madam, the growth of mega shopping malls and multi-purpose shopping centres has brought about a change in the shopping habits of Singaporeans. This makes it most often not just retail outlets but also entertainment from cinemas to game arcades as well as food and beverage outlets. They just become a draw for the younger generation who prefer to hang out at these complexes. Invariably, the parents of this younger generation are also sucked in as they go with their children to shop. Against this onslaught, what chance is there for our HDB shops? I hope the Ministry will be able to do something to help the HDB shop owners and breathe some freshness into their setting and operations.

Some merchants associations have banded their members together to face the challenge. However, I feel that the Government should look into the design and layout of HDB shopping areas so as to help them withstand the test of time. HDB planners and architects involved in designing the town centres should look at the concepts successfully implemented overseas and see how they can be implemented here. Our HDB dwelling areas have undergone a remarkable transformation each time they undergo upgrading but the retail areas need some catching up to do.

Mdm Chairman, I am glad the Minister mentioned in his speech earlier on that hawker food is still an option for our future 6.5 million people. The wet markets and our hawker centres have a unique position and a special place in every Singaporean's life. They are very much a part of our way of life and our culture in Singapore. They are among the commonest missed items for overseas Singaporeans.

As our society progresses, there seems to be a preference by many, especially the young, for buying their groceries and raw food from air-conditioned supermarkets and dining at air-conditioned food courts. And the authorities argued that there is a general decline in demand for wet markets and hawker centres.

The old wet markets and hawker centres are often deemed as dirty and unhygienic. They only function for half a day and are left vacant for the rest of the day and that seems to be a waste of our precious land resources. Because of these reasons, since 1997, there had been no new wet markets or hawker centres in the new HDB townships. Hence, the new towns like Sembawang, Punggol, Sengkang do not have wet markets and hawker centres.

There is a new phenomenon of the elderly diaspora in the new HDB estates. The elderly who moved into the new HDB estates with their children, or on their own, find the environment foreign and unfamiliar. Many still prefer wet markets and hawker centres to air-conditioned supermarkets and food courts. The Government has managed to revive some of the older wet markets and hawker centres and has given them a new lease of life through upgrading programmes. The upgraded markets have proved to be successful and have increased business as well as interest.

Mdm Chairman, I think the wet markets and hawker centres still have an important role to play. They are still useful and in demand by the young and old. The wet markets and hawker centres are natural community focal points for our residents. They enhance community interactions and cohesion between all races and all strata of our society. The stallholders and hawkers usually develop a close and friendly relationship with their customers. There is much warmth and concern in the community among the stallholders and the residents. Many of these stallholders are actually key community leaders today as they have good knowledge of the area.

The wet markets and hawker centres are important sources of entrepreneurial activities. They offer a low barrier to starting a business. Because of the low cost, they are also a source of cheap food. It is generally cheaper to eat in a hawker centre compared to an air-conditioned food court. This is one way of providing affordable living for our residents.

In the recent HDB heartware public consultation sessions, there were many calls to bring back the wet market and hawker centres to HDB estates. While we plan and cater for the needs of the young, I think we must not ignore the needs of the older generation as well. I hope the Ministry would give these calls due consideration and respond to the suggestions favourably.

Madam, as the Members have rightly pointed out, the HDB retailers are in fact facing competition from suburban shopping malls and hypermarts. Mr Masagos has rightly focused on the role of HDB shops in meeting the needs of local residents. They add to the vibrancy of HDB communities. To enable HDB retailers to adapt to changing market conditions, HDB has progressively relaxed its policies on shop tenancy such as change of trade, subletting and assignment. However, HDB retailers must take the lead in upgrading and revitalising their shops. Miss Lee Bee Wah and Mr Masagos have called for HDB to enhance the vibrancy of HDB shops and help the retailers adapt to changing lifestyles. Where retailers are keen to improve the competitiveness of their shops, I am pleased to announce that the Government will provide assistance to them to help them upgrade. We have distributed a handout and Members may like to refer to that.

HDB will be introducing a new package of measures called the Revitalisation of Shops Scheme (ROS). The ROS will be targeted at areas where the HDB retailers, whether sold or rental shops, are prepared to organise themselves and take the lead to drive the project. Under the scheme, assistance will be provided through three components, namely, upgrading of the common area; promotional activities as well as rent-free period.

First, upgrading of the common area. HDB will co-fund upgrading of common areas and facilities. For rental shops, HDB and the Town Councils will pay for 100% of the upgrading cost, up to $20,000 per shop. For sold shops, HDB and the Town Councils will pay up to 50% of the upgrading cost or $10,000 per shop. The balance will be borne by the shop owners.

Promotional activities organised by the local merchants associations (MAs). To encourage more MAs to organise promotional activities, HDB will co-fund 50% of the expenditure incurred for the promotional activities, or up to $1,000 per rental shop per year and $500 per sold shop per year.

Rent-free period will be granted for HDB retailers who renovate their shops while undertaking the overall upgrading and promotional activities. To qualify for the ROS, the retailers must be represented by a merchants association to ensure that there are collective efforts and a common vision for their area. They can apply for all or a combination of the above items.

Besides HDB, SPRING has also enhanced its assistance for HDB retailers through the Heartland Retail Programme comprising two initiatives: firstly, SPRING will provide funding for revitalisation projects driven by the MAs, such as the engagement of consultants to develop marketing strategies. SPRING will co-fund up to 70% of the costs of manpower, equipment and professional services. Secondly, SPRING will fund individual shops to upgrade their business operations, skills and premises. SPRING will co-fund up to 70% of the upgrading cost or $10,000 per shop.

We will launch these assistance measures on a pilot basis for a few clusters of shops in the later half of this year and we will provide more details of the schemes later.

The Workforce Development Agency (WDA) is looking into a new Skills Upgrading Programme for individual HDB retailers to raise their service standards.

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Meanwhile, HDB will continue with the Restructuring Programme for Shops (RPS) to assist HDB shop tenants located in areas where there is an over-supply of shops to exit the business. The aim is to reduce supply of shops judiciously so that the remaining shops will become more viable. Since the RPS was announced in March 2005, HDB has offered the programme to a total of 455 shops in 44 blocks. Twenty blocks comprising 219 shops, or 48% of the shops, will be cleared.

Under the present scheme, HDB will consider only these blocks where more than 50% of the tenants wish to quit. With the majority expressing desire to quit, HDB will clear the entire lot of shops. Now that we have cleared the shops in relatively large numbers, we are ready to fine-tune our programme. Henceforth, HDB will also consider blocks where at least 30% of the tenants opt to quit, while those remaining agree to regroup, where necessary. Regrouping of remaining shops is necessary to avoid interspersed vacancies and inconveniences to the residents. As with the current RPS, eligible tenants who opt to quit will receive an ex gratia payment of $60,000. Those who need to be regrouped will receive a $10,000 removal allowance.

With this revision, we believe we would have reached an optimal level of shops, considering the needs of both the tenants and the residents. Therefore, we are likely to discontinue RPS after the next offering. Shop tenants who are keen to participate in the programme should take this opportunity to nominate themselves to HDB for the RPS through their Advisers.

Dr Lim Wee Kiak has asked the Government to build wet markets and hawker centres in the new HDB towns. We recognise the role of wet markets and hawker centres as a focal point for community interaction. However, with the changing lifestyle of Singaporeans, the general demand for traditional wet markets and hawker centres has trended downwards over the years. Singaporeans, including the elderly, are turning to modern amenities like supermarkets for their grocery needs.

Currently, the Government sets aside land in the new towns for commercial space development. The commercial operator is free to decide the type of eating and marketing facilities to provide, whether coffee-shops or air-conditioned food courts, wet markets or supermarkets. At the precinct level, however, HDB will ensure that basic facilities in the form of eating houses and mini-marts are provided to meet residents’ needs.

Defects in HDB Flats

Madam, the mission of HDB is to provide affordable quality homes. This is stated in HDB's mission statement. In our quest to create and rejuvenate our towns at breathtaking speed, have we overlooked the quality of our HDB flats? Here, I am referring to flats that are built only in recent years. For example, I come across six blocks of flats at Senja Road, Bukit Panjang Town, which had only just been completed in 2003. Since 2003, these residents have to live with external wall cracks and seepages, some as soon as less than one year after completion. Complaints about wall defects were as high as about 25% in some blocks. There are others who suffer in silence.

My question is whether MND is satisfied with the quality of work by HDB contractors. What does the Ministry intend to do to ensure good quality work by contractors? What more can HDB do to help those who are experiencing repeated defects? For the batch of flats that experienced high percentage of defects and poor workmanship, can the HDB take the contractor to task? According to feedback on the ground, there is this feeling that HDB is placing low priority and setting aside minimal resources on rectifying HDB flat defects. Waiting time for inspection by HDB can take about two to three weeks and another few months before repair works get started. I suggest that for such situations with high numbers of defects and poor workmanship, HDB can tender out a contract to do the entire repair works at one go, thereby enjoying considerable savings, rather than taking care of it on a piecemeal basis. Alternatively, if HDB cannot cope with the numerous requests for repairs, it can outsource them to town councils who can respond to them more judiciously.

We need to give Singaporeans a positive experience in our public housing and build an endearing home that would foster home ownership. While I am excited by the scenario painted by MOS Grace Fu earlier on, we still need to plug those cracks and seepages judiciously.

Security in HDB Neighbourhoods

Madam, in last year’s COS debate, I raised the issue of security in our HDB basement and multi-storey carparks. Thefts from vehicles and property damage aside, late-night drivers and passengers also feel unsafe. Today, I have another two items to add to my list of security concerns in our HDB estates. The increasing audacity and prevalence of harassment by loan sharks has compromised the security of our neighbourhoods. They vandalise and destroy public properties, and intimidate both the borrowers and their unfortunate neighbours. There is also an increase in the number of foreign worker dormitories in close proximity to HDB estates. Affected residents have expressed their unease.

I would like to reiterate my request to the Ministry to consider installing more security features, such as cameras in our HDB common areas and carparks. While the police is responsible for maintaining the general level of security, they cannot be everywhere, at every hour. While residents and grassroots organisations can help to keep an eye out for criminals and mischief makers, there are limits to what they can do. I seek the Ministry's consideration for hardware, such as surveillance cameras and other building design features, that can help to minimise crime and put the residents at ease.

Mdm Deputy Speaker, I would like to assure Mr Liang Eng Hwa that HDB has not gone soft on the building quality of HDB flats. HDB subjects all its flats to assessment under the BCA’s Construction Quality Assessment System, or CONQUAS.

Nevertheless, given the number of building projects that HDB oversees, there may be isolated cases of contractors not meeting HDB’s standards. HDB takes a very strong view of such cases and constantly reviews the workmanship of its contractors to keep such cases to a minimum.

I assure Mr Liang, for affected lessees, the defects detected and are reported will be addressed. For those which are within the liability period, we will recall the contractors to do the repairs. For those after the liability period, HDB will arrange for repairs without charge if the cause is found to be of poor design or workmanship. Madam, for all new flats built from 2005 onwards, HDB offers an extended warranty scheme which covers three types of defects - ceiling leakage, water seepage and spalling concrete. This reflects HDB’s commitment towards providing high-quality workmanship to flat buyers. I understand that at the Senja Road situation, which Mr Liang mentioned earlier, 120 units have been rectified, with only 38 still undergoing rectification works. Mr Wee Siew Kim mentioned the issue of security and we know that he has been raising this issue several times. HDB takes the security of its residents seriously and factors this consideration into its design plans, for example, minimising blind corners and facilitating good visibility within public areas. As Mr Wee has mentioned earlier, the Singapore Police Force works together with the town councils on a new project by installing CCTVs on void decks as well as multi-storey car parks. The feedback so far has been very positive that it has been effective in deterring against crimes like housebreaking, robberies and harassment from moneylenders. Town councils will continue to work with the Singapore Police Force to see if CCTVs could be made available to more HDB blocks and car parks, subject to the availability of funds. I would also highlight that we do have community programmes like the neighbourhood watch groups to ensure and to continue with the community's efforts to try to minimise the possibility of crimes in HDB estates.

Construction Industry

Madam, we heard the Minister tell the House earlier in the day that sand and granite prices are expected to go up due to the ban on land sand from Indonesia and, more recently reported, disruption of granite shipments from Indonesia. I would like to ask the Minister if he is aware of any instances of profiteering by suppliers and, if so, what measures would the Building and Construction Authority, or BCA, take to curb such profiteering.

On another subject, the Minister announced sometime ago that the Singapore Contractors Association Limited (SCAL) and the Specialists Trade Alliance of Singapore (STAS) were negotiating a standard form contract for use between domestic subcontractors and main contractors. This, I believe, was being done in order to reduce disputes between main contractors and subcontractors. Could the Minister give us an update on the progress of the formulation of standard form contracts? Would BCA take a more active role in curbing profiteering in the construction industry as well as assisting to facilitate agreement between SCAL and STAS on standard form contracts?

Infrastructure for the Disabled and Elderly

Madam, I am very heartened to know that this Government recognises the needs of the disabled and elderly of this country. The Government has shown priority in making Singapore a barrier-free country and we are certainly making progress in certain areas. We have seen our public transport become disabled friendly. There are now wheelchair-accessible buses and more MRT stations have installed lifts at their stations.

Madam, it is truly a commendable effort. Since we are going to invest a substantial amount of money in this area, I think we have to get it right for whom we are building these. There is no point building something that ends up being not completely suitable for the disabled. The reason why I say this is because I spent half a day on a wheelchair to better understand the needs of the disabled and elderly. Firstly, it is no easy task to wheel oneself around. Biceps are paramount, especially when it comes to ramps. One would think that it is sufficient to just have ramps for the disabled. But it is only when you are wheeling yourself up the ramp that you realise that the gradient and length of the ramp makes a huge difference, and I thought climbing stairs was bad enough. You would think that manoeuvring up a ramp is hard enough work, but the neighbourhood mall that I was at decided to place glass doors right at the top of the ramp that was leading into the mall. Had it not been for some kind-hearted Singaporeans who held the doors open for me, my next best option was to be an octopus, as I had to try and wheel myself up the ramp and open the glass door all at the same time.

Just when I thought these obstacles were over, I decided to cross over to the community library which had great accessibility features, barring the fact that there were no clear directions as to where the ramps were situated. As I was about to wheel over, I realised that it was almost impossible because there were no ramps at the traffic light junction that I needed to use to get across. If not for a friend who knew where there was a small ramp right in the small corner that was used to transport goods and trolleys into the mall, I would not have made it across to the library without having to wheel myself all along the pavement looking for one. So, in this case, one building was accessible but there was no proper connection between the two buildings.

Madam, even when I was trying to get across at another traffic light that had ramps, the ramps were too steep and I thought I was going to roll back onto the oncoming traffic. In view of my experiences, I would just like to ask the Ministry, firstly, whether it could provide for synergy and coordination between developers to better facilitate access between buildings. Secondly, I would like to ask for an honest and genuine consultation process to be put in place involving stakeholders like the disabled people in the entire planning and construction process from start to end. I would also like to ask the Ministry to look into implementing, if not already in place, the best in accessibility seal, just like how our environmentally-friendly buildings get a Green Mark, and set up an independent body to check accessibility of buildings and functionality of facilities. I believe as we want Singapore to be a barrier-free country, we need to go beyond the mentality that ramps and lifts equal accessibility. It is not about accommodating the needs of the disabled, but it is about understanding the user's needs.

Sustainable Built Environment

Just now the Minister has touched briefly on sustainable development. I would still want to express my views and ask some specific questions. Although Singapore is a small nation, we, too, must do our part to ensure that our future development is sustainable.