Hansard, 2009-10-19

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 (2009) To (2009) Mr Zainul Abidin Rasheed 23 Sep 26 Sep 05 Oct 10 Oct Mr Tharman Shanmugaratnam 24 Sep 26 Sep 01 Oct 05 Oct Dr Mohamad Maliki Bin Osman 27 Sep 07 Oct 12 Oct 17 Oct Mr Yeo Guat Kwang 28 Sep 30 Sep 05 Oct 10 Oct 16 Oct 21 Oct Mr Charles Chong 29 Sep 02 Oct 04 Oct 08 Oct 19 Oct 22 Oct Ms Sylvia Lim 29 Sep 28 Oct Mr Teo Ser Luck 29 Sep 03 Oct 06 Oct 09 Oct 15 Oct 18 Oct Mr Wee Siew Kim 29 Sep 01 Oct 02 Oct 02 Oct 05 Oct 05 Oct 06 Oct 08 Oct 13 Oct 16 Oct 19 Oct 20 Oct 27 Oct 30 Oct 06 Nov 06 Nov 08 Nov 10 Nov Column: 1553 18 Nov 18 Nov 30 Nov 01 Dec RAdm [NS] Lui Tuck Yew 04 Oct 08 Oct 14 Oct 16 Oct Dr Ng Eng Hen 04 Oct 10 Oct Mr George Yong-Boon Yeo 05 Oct 08 Oct 14 Oct 18 Oct 22 Oct 25 Oct Mr Lee Hsien Loong 05 Oct 08 Oct 19 Oct 20 Oct 22 Oct 25 Oct Mrs Lim Hwee Hua 05 Oct 08 Oct 17 Oct 25 Oct 27 Oct 31 Oct Mr Michael Palmer 05 Oct 08 Oct Mr Seah Kian Peng 05 Oct 11 Oct 29 Oct 30 Oct Mr Hri Kumar Nair 06 Oct 11 Oct Mr Masagos Zulkifli B M M 06 Oct 17 Oct Mr Sam Tan Chin Siong 07 Oct 09 Oct 15 Oct 21 Oct 26 Oct 30 Oct 11 Nov 13 Nov 23 Nov 01 Dec Assoc. Prof. Dr Yaacob Ibrahim 07 Oct 08 Oct 21 Oct 22 Oct Mdm Halimah Yacob 08 Oct 11 Oct 21 Oct 23 Oct Mr Lim Boon Heng 08 Oct 11 Oct 20 Oct 23 Oct Mr Ong Kian Min 08 Oct 22 Oct Dr Lee Boon Yang 09 Oct 17 Oct Mr Lee Yi Shyan 11 Oct 17 Oct 26 Oct 29 Oct Mr Mah Bow Tan 11 Oct 23 Oct Dr Muhammad Faishal Ibrahim 11 Oct 11 Oct 17 Oct 23 Oct Mr Ang Mong Seng 12 Oct 17 Oct 22 Oct 27 Oct Mr Cedric Foo Chee Keng 12 Oct 15 Oct 12 Dec 20 Dec Dr Ahmad Mohd Magad 13 Oct 16 Oct 25 Oct 27 Oct 28 Oct 30 Oct Column: 1554 09 Nov 14 Nov 27 Nov 08 Dec Ms Grace Fu Hai Yien 13 Oct 16 Oct Dr Teo Ho Pin 13 Oct 16 Oct Mr Chan Soo Sen 14 Oct 17 Oct Mr Gan Kim Yong 14 Oct 17 Oct Ms Joscelin Yeo 16 Oct 26 Oct Ms Irene Ng Phek Hoong 17 Oct 31 Oct Mr Lee Kuan Yew 19 Oct 19 Oct 20 Oct 02 Nov Mr Zaqy Mohamad 19 Oct 20 Oct Mr Lim Hng Kiang 21 Oct 25 Oct Mr Matthias Yao Chih 22 Oct 23 Oct Dr Vivian Balakrishnan 22 Oct 23 Oct 25 Oct 25 Oct 24 Nov 29 Nov Mr Sin Boon Ann 26 Oct 30 Oct 03 Nov 06 Nov Dr Balaji Sadasivan 27 Oct 07 Nov Mr Abdullah Tarmugi 01 Nov 06 Nov 20 Nov 22 Nov 10 Dec 16 Dec Miss Penny Low 09 Nov 22 Nov Mr Raymond Lim Siang Keat 22 Nov 28 Nov 09 Dec 12 Dec

ABDULLAH TARMUGI Speaker Parliament of Singapore

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

25th September,2009 (1) Private Education Bill (2) Casino Control (Amendment) Bill (3) Copyright (Amendment) Bill ABDULLAH TARMUGI Speaker Parliament of Singapore

[Mr Speaker in the Chair]

1. Mdm Ho Geok Choo asked the Minister for Finance given that it may take three years or so for the Singapore economy to register healthy growth figures, what plans does the Government have with respect to the Jobs Credit Scheme.

2. Mr Liang Eng Hwa asked the Minister for Finance (a) whether the measures in the Resilience Package such as the Jobs Credit Scheme and the Special Risk-sharing Initiative have achieved the results intended; and (b) what factors will be taken into account when deciding whether these measures should be extended or fine-tuned.

3. Mr Teo Siong Seng asked the Minister for Finance (a) if the Government will consider extending the Jobs Credit Scheme beyond the current year to give local enterprises support and confidence to sustain their business and to continue saving jobs in view of the uncertain economic recovery; and (b) when will the Government announce its decision to withdraw or extend the scheme so that businesses can do forward planning and budgeting for the next financial year.

Mr Speaker, with your

permission, may I take Question Nos 1 to 3 together?

Yes.

Sir, as the Prime Minister has announced on 13th October 2009, the Jobs Credit Scheme has been extended for half a year, with two more stepped-down payouts in March and June 2010. Whereas the Jobs Credit is currently calculated based on 12% of an employee’s salary (up to the first $2,500), the two additional Jobs Credit payments will be based on 6% and 3% of the salary. The Special Risk-sharing Initiative (SRI) expires in January 2010, and the Government will monitor the situation in the coming months before deciding what should follow it.

As the Prime Minister had also stated, the Government will be introducing and enhancing other measures suitable to the new phase of the economy. We want to support companies in their efforts to grow, restructure and raise productivity. The measures will take into account the proposals of the Economic Strategies Committee. They will also complement SPUR, which was introduced as a two-year programme and will be kept for the full period until end 2010.

Mr Liang Eng Hwa had asked if the Resilience Package measures such as the Jobs Credit and SRI had achieved their intended results. The Package is generally assessed as having mitigated the scale of economic decline that Singapore would have faced and helped avert major job losses. Despite the sharp fall in our GDP resulting from the global recession, unemployment went up moderately and local employment actually increased by 7,000 jobs in the same period.

The Jobs Credit Scheme, in particular, has been strongly supported by both employers and workers. A survey conducted by Ministry of Manpower from

Reducing the immediate loss of jobs has not been the only benefit of the Jobs Credit, however. Companies receive the Jobs Credits based on the number of local workers they employ but the money they receive can be used in many ways to help their business and employees. On the evidence we can gather this has included using the money to avoid wage cuts or reduce the scale of wage cuts; to invest in their people; to pass on the savings to consumers; or to pay suppliers on time. It is not possible to estimate the full impact of the scheme with any precision. But whichever way companies use the Jobs Credit, the scheme amounted to a significant fiscal injection that would have had a multiplier effect on the economy, and thereby helped support more jobs.

The Special Risk-sharing Initiative (SRI) has also proved beneficial. It has helped to stimulate bank lending to SMEs and ensure that a broader segment of companies have access to credit to sustain their operations. In the first eight months of the enhanced Government measures to share risks with banks (from February to September 2009), the 16 Participating Financial Institutions (PFIs) registered loans worth about $4.9 billion under the various SME financing schemes. This is about seven times the value of loans approved in the same period last year. SMEs especially have benefited from the SRI. More than 90% of the loans approved were granted to SMEs and these loans accounted for about 70% of the total loan quantum approved.

May to July 2009 showed that the scheme was having a positive impact in helping companies and workers cope with the downturn. About three in four (73%) companies which had earlier plans to lay off workers reported they would postpone or reduce the number of workers to be laid off, as a result of Jobs Credit.

Sir, in the recent G20 Summit, which the Finance Minister attended, the leaders cautioned against any premature withdrawal of the stimulus measures. I would like to ask the Minister what are our exit strategies for the $20.5 billion Resilience Package? Secondly, given that we are expecting slower-than-typical growth rates in the next few years, how would this exit and reduction in measures in this Package affect the momentum of recovery? Thirdly, the Prime Minister has said the extension of the $675 million Jobs Credit Scheme will be funded from the Government Budget and not from reserves. I would like to ask the Minister what our Budget position would be like in the financial year.

Sir, it is too early to talk about the Budget position for the next fiscal year but I do not expect a significant swing away from the fiscal stimulus position that we have this year. There are a few reasons for that. First, our expenditures are going up. We are spending a lot more next year, and in the coming years, compared to the past. If you take infrastructure alone, we are spending a lot more – the Marina Coastal Expressway, the Circle Line, the Gardens by the Bay. Infrastructural spending is on the uptrend. We are also spending more on education, healthcare and continuing education and training. When you add all together, our expenditures are going up, and will be higher next year compared to this year. Our revenues will not fully compensate for that. Corporate tax revenue, in particular, can be expected to be dampened by the fact that this year was a bad year for most companies. Our tax revenues next year will reflect what happened this year as well as last year. So revenues will not go up by as much as expenditures.

Overall, I do not expect to see a major shift from the expansionary fiscal stance that we had this year, but it is too early to

We will live within our means within this term of Government. We have some savings, as I indicated in the Budget this year, and we will ensure that we live within our means.

say exactly what our fiscal position will be. We will have to look at the economic situation and outlook at the time of the Budget as well as our revenue position.

I would like to ask the Minister – would the eventual cessation of the Jobs Credit Scheme cause employers to stop making new hires? Would it also lead to less emphasis on training and productivity? How would the relevant agencies help to overcome these concerns or challenges? And related to this, how could we ensure that the mature employees, especially those 45 years and above, are efficiently, effectively and gainfully employed, and that they are not disadvantaged in anyway by this discontinuation of the scheme?

The next question is related to what the Prime Minister has announced with regard to the need for companies to restructure their operations for higher productivity. I would like to ask two questions related to this – are there any specific plans to help these companies restructure their operations? I fear the impact on our next generation if they have parents who are chronically unemployed because the economy cannot restructure fast enough to absorb the numbers and the numbers cannot be upgraded fast enough to be capable of working in the restructured economy. What plans does the Government have for this group of people?

I would like to thank the Member for her questions. To relate them to the previous question, the key issue is not merely the size of fiscal deficit that we run in the next fiscal year but the type of measures

This does not mean aiming to help companies create only high-end jobs. This means improving our workers' capabilities up and down the line, from the simplest jobs to the most complex jobs. Every worker can improve and every job can yield higher productivity and therefore, higher pay. So whether it is a mature worker or a younger worker, we have to address this across the board. The Economic Strategies Committee is looking at this very comprehensively. Minister Gan Kim Yong heads the sub-committee that is spending a lot of time looking at this issue of raising skills, productivity and therefore wages, up and down the line to preserve employment for everyone in our workforce.

that we put into place. What we do is as important as how much we do. And as the Prime Minister has indicated, we are making a shift from broad-based relief type measures towards measures that are targeted specifically at restructuring and enhancing productivity and preparing for growth over the medium to longer term. We are making that shift. This means measures that all companies can enjoy if they are putting into place productivity-enhancing measures or increasing their innovative capacity, as well as measures that some companies will enjoy more than others because they are the ones that are growing the fastest, are investing more and are likely to lead the economy, not just out of recession, but for growth over the next five years. So we will be more discriminating and more targeted.

Sir, with the extension of the Jobs Credit Scheme, does it mean the Government is more confident of a full economic recovery ahead? Will we likely see a U-shaped recovery or a W-shaped recovery that the Minister mentioned a few months ago?

I think the most that can be said is that we are

past the worst. And in particular, we are past a stage in the world economy when there was a tremendous psychological fear that the bottom would fall apart. So we are not in a stage of unending decline. The banks, at least the larger ones, are now in a position where no one expects them to fail but there are still problems ahead because the global financial system is still fragile and the underlying problems have not been resolved. The fear of big failures has receded but fear over the extent of the economic recovery and about the banks' ability to shed bad assets and to start lending again remains. Confidence has not returned to normal and we, for that matter, seasoned observers all over the world, do not expect the next year or two to be very pretty.

4. Ms Ellen Lee asked the Minister for Finance (a) how many offenders of customs and excise related offences, specifically cigarettes smuggling, were prosecuted in the last two years; (b) where vehicles were used in the commission of the offence, how many of these vehicles were detained and forfeited by the court; and (c) whether there were instances where the vehicles were owned by third parties who had no knowledge of the use of their vehicles, and upon due proof were not forfeited but returned.

Mr Speaker, Sir, the number of offenders prosecuted for cigarette smuggling offences was 1,314 in 2007 and 1,382 in 2008. From January to September this year, 895 offenders have been prosecuted. The court forfeited 218 vehicles used for cigarette smuggling in 2007, 193 vehicles in 2008 and 156 vehicles for the

period to September this year. Singapore Customs applies to forfeit a seized vehicle used for cigarette smuggling if it belongs to an offender. If the seized vehicle belongs to a third party, Singapore Customs considers whether the owner had conducted due diligence prior to letting the car be used. If investigations reveal that the owner was unaware of the use of his vehicle in the customs offence, the vehicle is released. One hundred and twenty-six vehicles belonging to a third party were released after seizure in 2007, 101 in 2008 and 48 for the period to September this year. This works out to roughly half of the total number of third party-owned vehicles that were seized in the first instance.

Thank you, Minister, for your replies. Just like to check with the Minister, is there any duration within which the vehicle has to be confiscated before it is released to the innocent third party?

It is not possible to fix a duration because it depends on how long it takes to conduct investigations, in fairness to both the third-party as well as to ensure that where in fact an offender has not conducted due diligence, then something has to be done. So investigations are conducted expeditiously but it is not possible for us to fix in advance a time limit. In practice, it has not been very long duration.

5. Dr Ong Seh Hong asked the Minister for National Development if he will provide an update on the Sino-Singapore Tianjin Eco-City project and what spin-offs there have been to date for Singapore businesses.

The Master Plan and Key Performance Indicators to guide its planning and development were finalised and approved in early-2008. We target to complete the development of the 4 sq km start-up area (SUA) in five years’ time by late 2013. Since the groundbreaking ceremony in September 2008, we have achieved good progress in the development of the SUA, despite the global financial crisis. The reclamation works for the SUA have been completed, while the construction of roads, the laying of the utility services and the landscaping works in the SUA are progressing well. Environmental rehabilitation works, such as the construction of the wastewater treatment plant, are on schedule. Developers have taken up nearly all the land in the SUA, and construction works are scheduled to commence soon. The Chinese Government has decided to locate national-level projects, such as the National Animation Park in the Eco-city to help drive its economic development and provide jobs for its residents.

The Green Building Evaluation Standards, which were jointly formulated by officials from Singapore and China, have been officially adopted in the Eco-city, in line with the KPI that all buildings in the Eco-city must meet green building standards. MND and other agencies are sharing with Tianjin officials our software, expertise and experiences in areas like public housing, community management and water management, in tandem with

To help Singapore businesses tap business opportunities in the Eco-city, MND has been working with agencies like IE Singapore and the Building and Construction Authority (BCA) to organise awareness seminars and business missions to the Eco-city. The Joint Venture Company (JV Co) undertaking the development of the Eco-city, which is formed by a Singapore consortium led by Keppel Corporation and a Chinese consortium, has also engaged or signed MOUs with several Singapore companies to be involved in projects in the Eco-city. These include architectural consultants, developers, contractors, education providers, solution providers and service providers. Surbana International Consultants, for example, was involved in drawing up the Master Plan as well as the design for the first public housing project for the Eco-city. As the project progresses, MND and the JV Co will continue to facilitate the involvement of more Singapore companies, including Small and Medium Enterprises (SMEs), in the project.

Mr Speaker, Sir, the Sino-Singapore Tianjin Eco-city, or "Eco-city" for short, is a joint project between China and Singapore to develop a city which can serve as a model for sustainable development, environmental protection and social harmony. It is our second flagship collaborative project with China, after the Suzhou Industrial Park. The framework agreement to jointly develop the Eco-city was signed in November 2007. the development of the Eco-city’s hardware.

6. Mr Christopher de Souza asked the Minister for National Development (a) how many HDB flats do not have lift access on the same floor yet due to the cost of the Lift Upgrading Programme (LUP) going beyond the allocated financial budget and subsidy for each unit; and (b) given the Government's aim to upgrade all flats by 2014, whether the Ministry will consider prioritising the upgrading of blocks which have a disproportionately high number of senior citizens, despite the costs exceeding the budget.

Mr Speaker, Sir, when the Lift Upgrading Programme (LUP)was introduced in 2001, there were

Over the years, HDB has introduced innovative and cost effective lift solutions so that more blocks can be eligible for LUP. Some examples are the shaftless lifts, smaller lifts suitable for low-rise blocks, and reconfigured lift access for half landing blocks. Today, we have reduced the number of ineligible blocks to just 200 – from the 1,000 to 200. HDB will continue to actively explore alternative cost-effective solutions so that more blocks can become eligible for LUP.

Mr Christopher de Souza also asked whether the MND would consider prioritising the upgrading of blocks that have a high number of senior citizens. This can be one of the considerations by the Adviser in his nomination of his precincts for LUP. HDB will take this into consideration when selecting blocks for LUP.

more than 5,300 blocks that did not have full lift access. Almost 1,000 blocks exceeded the LUP cost cap then and were not eligible for LUP. In other words, that is about one in five not eligible because of cost cap. The cost of lift upgrading could range from $40,000 to more than $120,000 per benefiting unit, depending on the configuration of the blocks or due to site constraints. This cost may be as high as 40% of the value of a typical 3- or 4-room HDB flat. It does not make sense to implement the LUP in such blocks.

I thank the Senior Minister of State for her reply and note that HDB has taken concerted efforts to reduce the 1,000 blocks in her reply to just 200 blocks. I would like to know whether there is any indication from HDB that if among the 200 blocks, where there is a disproportionately high number of elderly citizens living in the blocks, would HDB

prioritise such blocks such that they move ahead of the rest in the queue.

I just need to re-emphasise that at this moment we do not have any plans to extend LUP at any cost. So it has to be limited to a certain cost consideration but we are looking for solutions. We hope that we are able to bring solutions to some of these blocks and if they are eligible, obviously if they have a very high number of senior citizens, if the Advisers so suggest and so nominate, HDB will definitely take that into consideration.

Mr Zainudin Nordin (Bishan-Toa Payoh): Supplementary question, Sir. I just would like to know when the $30,000 cap was decided and if it is still relevant in this current time?

We look at $30,000 as a general cost guideline and that we have at the very marginal cases exercised some flexibility, especially when cost of construction has gone up significantly, you know, when we had problem with sand supply and so on. We have exercised discretion but, on the whole, it has been a very good and prudent principle to follow because, as we have seen, when construction costs have recovered and come down over the last few months, we have been able to provide LUP to more blocks with the same budget. So we believe that the budget indeed has helped us to allocate precious resources to benefit more HDB residents.

7. Mr Zainudin Nordin asked the Acting Minister for Information, Communications and the Arts given the recent successful bid by SingTel to telecast the English Premier League football matches (a) how do the consumers in general benefit from

the competition among the pay-TV retailers; (b) whether the media market is large enough to sustain such competition; and (c) how does this competition compare to the ill-fated experiment of SPH's MediaWorks and MediaCorp.

8. Dr Lim Wee Kiak asked the Acting Minister for Information, Communications and the Arts with the competitive bidding for popular overseas sports channels by SingTel and StarHub (a) what is the Ministry doing to ensure that subscriptions to the sports channels remain affordable to the majority of Singaporeans; and (b) whether the Government will consider providing free viewing of selected games on MediaCorp TV during key sporting events, especially World Cup soccer matches.

9. Mr Calvin Cheng asked the Acting Minister for Information, Communications and the Arts what is being done to address the concern that the exclusive sale of football broadcasting rights has driven up prices and reduced choices, to the detriment of consumers in Singapore.

Mr Speaker, Sir, with your permission, I would like to take the next three questions together.

Yes.

Mr Speaker, Sir, I thank the Members and Nominated Member for their questions and concern for consumers affected by the exclusive sale of football broadcasting rights in the pay TV market. First, let me address the concerns that are topmost on the minds of sports fans, that is, the subscription cost of the sports packages and termination charges for those locked into contracts with StarHub Cable Vision (SCV).

Let me take this opportunity to share briefly with the House some of the issues that the MDA has to consider in reviewing the various regulatory options. They include foreign content owners' rights, Singapore's obligations to abide by international conventions that protect such rights, and commercial agreements for broadcast of sports events.

Singapore is signatory to a number of international conventions in intellectual property protection which require us to protect the rights of copyright holders, including their exclusive right to authorise their works in the manner they choose. These apply to both content owners

MICA and the Media Development Authority (MDA) share consumers' concerns. Hence, following the announcement of the outcome of the EPL bid, the MDA had asked SingTel to provide early clarification on the pricing of their sports packages, so as to assess whether any intervention would be necessary to protect consumers' interests. I note that SingTel announced its pricing plans last week, offering viewers the choice of a standalone EPL channel or a full sports package, both at prices comparable to SCV's current sports package charges. SingTel has also offered their customers UEFA Champions League and UEFA Europa League at no additional cost if they sign up for a one-year contract. Most consumers will thus not be adversely affected as far as pricing is concerned. Separately, the MDA had also asked SCV to provide clarity on their termination charges for subscribers who may wish to switch subscription plans. SCV has since announced that they will not be charging any early termination fees for subscribers of sports packages who cancel their service after July 2010. Dr Lim had also raised the question of whether Government will consider providing free viewing of selected games on MediaCorp TV during key sporting events, especially World Cup 2010. The MDA requires key sporting events to be made available for free-to-air television. These include the Olympic Games and SEA Games. Specific to World Cup, I understand that the terms of the World Cup broadcast rights include the requirement for selected key matches to be made available on free-to-air television. These include the opening, two semi-finals and final matches of the World Cup 2010. Let me now address the questions raised on competition in the pay TV market. Competition in the pay TV market has been evolving ever since SingTel entered the market in 2007. Prior to this, SCV carried a total of 99 TV channels, of which only three were focused on sporting events. Today, with competition, consumers have access to a wider and more diverse choice of programmes available on 179 channels, of which more than 13 are focused on sporting events and this is of course over both SCV as well as SingTel mio TV. Competition has also, I believe, provided consumers with higher quality and innovative content, as well as more flexibility in viewing choice. High-Definition (HD) content is increasingly being made available on both platforms. Consumers are now able to catch some of the latest episodes of hit Hollywood series as early as 24 hours after their US telecast. Consumers can now choose from a range of viewing options, from subscription tiers to á la carte channels to pay-per-view content and cross-platform access. The question of whether Singapore's media market is large enough to sustain competition is really one that is best answered and determined by the operators over the course of time. In the case of SPH's MediaWorks and MediaCorp, they decided that the free-to-air television market was not large enough to sustain both players, and hence they made a commercial decision to consolidate. For the pay TV market, the competition landscape is still evolving and so it is inappropriate to conclude at this stage that the market is too small to sustain competition. The operators will continue to be driven by market share and profitability and will no doubt be constantly reviewing their position as the pay TV market evolves. Late last year, the MDA commissioned a study on competition issues and are currently exploring various short and long term regulatory options.

such as the Football Association Premier League (FAPL), and channel providers such as Discovery Asia and the Star Group. In the case of the English Premier League, the FAPL dictates, to a large extent, the terms of the agreement, including the sale of exclusive rights in Singapore, and the ability of pay TV retailers to share content. The MDA has to give due consideration to these commercial agreements as they involve international content owners who are not our licensees. The MDA is also monitoring international developments on this issue. Countries such as the UK and France are facing similar issues with content exclusivity in their respective pay TV markets. The UK has, in fact, been holding consultations as to whether to impose regulatory measures in the market since January 2007, and has yet to arrive at a decision. The MDA’s goal remains to find an effective solution that best addresses consumers’ concerns while fulfilling our international and commercial obligations.

Thank you, Mr Speaker. Supplementary question. I would like to ask the Acting Minister : how much did SingTel bid for the EPL rights and in his opinion, does he think that Singapore has overpaid for the rights? Comparing this with the other nearby countries such as Malaysia, Indonesia as well as Thailand, or similar economies such as Hongkong, Taiwan or South Korea, what steps does the Government intends to take to prevent such overbidding from causing the consumers to pay much more in the future?

Thank you for the questions. First of all, I think the tender returns are actually governed by confidentiality agreements so it is not for me to reveal those amounts, even if MICA and MDA are aware of it. But if you are a shareholder of SingTel, obviously you are in a better position to ask those questions.

As to whether we overpaid or how much we have paid compared to the rest of the countries, again the data on this is vast. The question really is, whether the Government should intervene and how much should the Government intervene and in what areas should the Government intervene? Traditionally, the Government has moved in areas where it concerns the provision of basic essential services and to make sure that this is made available and at an affordable price. This is not the case for the English Premier League, although I am sure consumers may disagree on this, to some extent. Because essentially, it is entertainment and if the Government moves in this area, then in what other areas should we intervene? And so, we have got to do so very, very carefully.

Ultimately, if I may quote from a commentary that was written a week-plus ago, in the Straits Times by one of the reporters, Mr Chua Hian How, and I

thought it was quite a thoughtful piece and therefore, I want to quote the closing paragraphs of his article. He said: "The greater power lies in the consumers' hands or rather their wallets. If the costs of entertainment (he is talking about entertainment here) outweighs the benefits, perhaps it is time to cancel that pay TV subscription." Those are his words. And this is not something that I am recommending but I think there is a truism here that it is for the consumers to decide for themselves whether that package, be it in sports, be it in entertainment or something else altogether, is appropriate for them.

Thank you, Minister, for showing us that competition in the long run would be beneficial to consumers but our experience with MediaCorp and MediaWorks have shown that it is actually in the short run, that competition can be the most destructive, especially during the initial market-entry phases. So, what stop-gap regulatory measures does the Ministry have to ensure that these sort of destructive competitive measures are not prevalent in the short-run and what timeframe does the Ministry think these regulatory stop-gap measures can be implemented?

In the case of SPH and MediaCorp, as I have mentioned in the reply, that was in the free-to-air market. We understand, of course, over the years, that the landscape for free-to-air versus pay TV had also been evolving with more eyeballs shifting to pay TV, in part because of the variety as well as the quality of content that has come up over the years. And so, the commercial operators, on their own, after a period of time when they were competing intensively, decided that the pay TV market, because of the shrinking viewership, was probably not the most ideal landscape for them to go head-to-head over an extended period of time and

For pay TV, I think, we have not arrived at such a situation yet. It is, in my mind, still an evolving landscape and as to whether and when it achieves a certain degree of stability and in what form that will take, it is yet to be seen. Today, you have SCV having a subscriber base of over half a million; you have SingTel having a subscriber base of over a hundred thousand. So, it is quite an unequal market and over the coming years, how that will shape up, we really do not know and so, therefore, they compete intensively on packaging of content, bundling of channels, in order, they believe, to provide the best package for consumers.

The MDA is looking at this carefully. But, as I mentioned in the example of the UK, they have been looking at this over the past three and a half years and have yet to arrive at a decision. Obviously, because the issues involved are actually very, very complicated. But where we have some concerns, is actually, because we have seen the number of exclusive contract arrangements increased over the years – in the early days when only SCV was the provider – there were about 64 channels that were locked in, what I called ECAs and as of October this year, these have increased to 131 channels, to the best of my knowledge. And what it means, I think, is that, with such an arrangement, you actually introduce new barriers of entry to potential service providers and which is something that we hope to see, particularly so, given the next generation nationwide broadband network that we want retail service providers to be able to come in and participate in the market. And too many ECAs may result in barriers to entry that would impede such new companies from

The other problem, of course is, as we have seen in this case for soccer, that there is some penalty, if I may use that term, to consumers. But, ultimately, I think as MDA looks at this and considers what are some of the possible measures that we can introduce to improve the situation, I want to reiterate the point that consumers will have to send their own signals to service providers as to whether they want to continue with the arrangement that we have today.

they made the commercial decision to consolidate their operations. being formed and from participating in offering innovative services to consumers.

Mr Speaker, Sir, thank you very much. If ever anything that we have learnt from the financial crisis was that free market sometimes, do not work. Just like to ask whether MDA has considered a regulated monopoly for such a small market for distribution and maybe, operating on a cost-plus basis? Secondly, I would like to ask whether the issues on the exclusive right actually impede the real free market we are looking for, because in actual fact, we are only guided by one service provider – when we want to buy a product, the product cannot be given by other service providers.

The MDA is looking at a range of options and we will take time to study these carefully.

Mr Sin, last question.

Mr Speaker, Sir, given the great popularity of football matches, I am not sure if a model that is funded by a free-to-air broadcast, sponsored by advertising, could be an alternative that the Government would consider as opposed to an exclusive broadcast of these very popular sports programmes? That way, you can actually have a wider reach and allow more people to have the pleasure of viewing these matches, subsidised by advertising

revenue, instead of just on a pay-to-view basis that these cable TVs are now charging.

I think the point would be that, whether you have it on free-to-air TV or pay-per-view, somebody would have to bid for the content and bid at an appropriate price. And whether soccer is more important than anything else that we have to formulate such an arrangement to bid for these content and exclude something else altogether. So, those who are passionate about the arts may say, why not the arts; why not educational programmes and so on? Sir, that is, indeed one of the dilemmas.

Hypothetically, we can tell whoever it is – service providers, in this case on a free-to-air – that you can only charge subscribers a certain amount. So, they would bid accordingly. But bear in mind that the content owner is not obligated to sell to us. And the content owner may say that if other countries follow a similar hypothetical practice that they would run into great difficulties and challenges to be able to pay the transfer fees, to be able to pay the players that they are paying in Europe, in particular. So, the content owner may very well say, "I would not sell to Singapore" and we would be at a greater loss, particularly for the consumers who feel that they are prepared to pay the price for the package. And, therefore, when the Government thinks about intervening in a competitive marketplace, I think they have got to be very careful about what we should do and how much we should intervene. So, that is why, we are taking the opportunity to relook at this, not because of the assumptions that we have made in the past and the considerations from the past were wrong but because the landscape had over the last three years evolved and changed and the number of exclusive arrangements has grown and we are watching these with some concern. And,

therefore, we are taking this opportunity to take a fresh look at it, consult with other people, including those in the private sector, to determine what is the best approach that we can take – balancing the need for commercial arrangements to proceed; balancing our international obligations and taking into account the needs and the interests of consumers.

10. Mr Arthur Fong asked the Acting Minister for Information, Communications and the Arts (a) what is the operating profit/loss of the Esplanade since its inception; (b) how has the poor economy affected the Esplanade and its operations; and (c) whether the various programmes organised by the Ministry have brought about an increase in Singaporeans' interest and translated to an increase in ticket sales at the Esplanade.

Mr Speaker, I would like to thank Mr Arthur Fong for his interest in the Esplanade and its operations. The Esplanade Company Ltd is registered as an Institution of Public Character and is a non-profit organisation, not a profit-driven commercial enterprise. Being an arts centre for everyone, the Esplanade fulfils several key social and national objectives. It thus continues to receive Government and Tote Board funding. The Esplanade’s revenue comes from ticket sales, sponsorship and other sources, such as rental income. Annually, about half of its operating expenditure is covered by revenue while Government grants make up the balance. With careful planning and prudent financial management, the Esplanade has managed to operate within its revenue and grant quantum, without incurring any deficits since its inception. In FY 2008, Esplanade’s operating expenditure was $63 million, its earned income was $24 million and grants accounted for $40 million.

Nonetheless, the economic downturn has severely affected sponsorship income. The Esplanade had lost regular corporate sponsors, particularly financial institutions and multi-national corporations. In addition, several large, long-running commercial productions had also pulled out as promoters became more risk-averse. While Esplanade managed to secure other bookings to cover these cancellations, these did not generate the same amount of revenue. Despite these, the Esplanade has not cut back on programming. Instead, it has adjusted ticket prices downwards and stepped up free programmes to provide respite to audience and opportunities to performers. They have also not committed to big ticket shows which charge premium pricing. The Esplanade has also carved out unconventional spaces such as its rooftop for lease, stepped up mall promotions and given rebates to help its tenants tide over this difficult time.

On Singaporeans' interests in arts and ticket sales at the Esplanade, MICA takes a long-term view in providing audiences and raising the level of arts appreciation and engagement among Singaporeans. We already have various programmes such as the National Arts Council’s Arts for All – Community Engagement Plan and the Arts Education Programme.

Together with the increased free outreach performances and excellent programming, these efforts have helped increase attendances at the Esplanade. Gross ticket sales at the Esplanade in FY 2008 were $27 million, as compared to $18 million in FY 2003, following the Centre's first complete year of operations. Correspondingly, the total attendance in FY 2008 was around 1.7 million, compared to around 900,000 in FY 2003.

I would like to encourage Mr Fong and other Members of Parliament to continue

with their support for the Esplanade and to enjoy the programmes and other arts activities that are put forward to you.

Mr Speaker, three supplementary questions.

Firstly, could the Minister dimension the loss in the corporate sponsorship so that the House can understand how much was that? Secondly, with the F1 in the second year held in and around the area, were there any positive contributions to the Esplanade's activities, or negative effects on the Esplanade's operations or events? And, thirdly, on the increase of attendance from 900,000 to 1.7 million, what is the profile of this increased attendance, the demographics and the people who are attending the events?

Thank you to the Member for the supplementary questions.

I do not have the specifics on the loss in corporate sponsorship but I would actually take this as a blip for the past year in part because the sponsorship growth over the years had been strong. And in the case of the Singapore Arts Festival for this particular year, we actually saw an increase in the number of sponsors as well as the amount of sponsorship. So, it is really hard to categorise it as whether this would be a trend for the future but you can be assured that the Esplanade is working very hard to cultivate the sponsors as well as to encourage them to increase the amount of sponsorship.

On the F1, obviously, I think with some of the road closures, it has impeded the activities in the Esplanade somewhat but I think for this particular year, compared to the inaugural F1 last year, the arrangements went far better and the inconveniences posed both to the retailers as well as to people attending the shows were far less.

On the increase in attendance, we have actually been very encouraged that a good number of these people who have come forward are doing so for the first time. In fact, I think the Esplanade was telling me that particularly so when they run programmes for school children, that up to about 30%-40% of those participating would be going to the Esplanade for the very first time and, in a sense, therefore, these programmes are very beneficial in providing a foretaste of how exciting and how innovative the arts can be and how it can contribute to the curriculum for a school-going child.

Miss Audrey Wong, last question.

Two supplementary questions, Minister.

First, I would like to ask if the Ministry is studying the impact of the poor economy on the arts in Singapore as a whole and, secondly, whether the increase in the Esplanade's programming has actually impacted on the use and attendance at other theatre venues in Singapore.

On the impact of the poor economy, we were not looking only at the Esplanade but, in fact, looking at how we could make available additional resources for the different arts groups and the practitioners. Originally, we had planned to do a Singapore Season overseas, and we decided that this was not the right time to do so for a variety of reasons. One, of course, sponsorship was going to be difficult; two, the overseas audience would, I think, be distracted by some of the difficulties in the financial and economic spheres. But the most important consideration was actually that we wanted to swing more of the resources to support the domestic market and make more money and more support available to our arts practitioners.

Although we recognise, of course, that they do benefit from the exposure overseas but we felt that we could do more by channelling the money that would otherwise be spent on Singapore Season overseas to support arts groups here in Singapore. When the economy recovers, we actually would think of renewing some of these programmes.

11. Mr Baey Yam Keng asked the Minister for Manpower in cases where employers of foreign domestic workers are not able to afford the full payment of their maids' medical, hospitalisation and related bills (a) what are the options available to the employers; (b) whether it is possible to put a cap on the maximum liability of the employer; and (c) whether part of the foreign maid levies collected can go towards a fund to pay for the excess beyond the maximum liability.

12. Mr Baey Yam Keng asked the Minister for Manpower (a) how the new minimum medical insurance coverage of $15,000 for foreign domestic workers (FDWs) compares with other countries; (b) what are the percentages, numbers and medians of hospital bills in excess of $5,000 incurred by FDWs over the last three years; and (c) what is the rationale for requiring employers to face unlimited liability for their FDWs' hospital bills compared to the standard employment contract in which employers have limited liability for their employees' hospital bills.

Mr Speaker, Sir, may I take Question Nos. 11 and 12 together?

Yes, please.

Employers have all along been responsible for the upkeep and

We have received feedback on some cases of medical bills that have far exceeded the minimum coverage of $5,000 set initially. Last year, about one out of every 10 hospital bills for foreign workers and foreign domestic workers was in excess of $5,000.

To help reduce employer’s exposure to potentially large hospital bills, MOM announced last month that the Government will increase the minimum insurance coverage to $15,000 a year with effect from 1st January 2010. However, employers may choose to obtain higher coverage on their own accord if they wish to have greater protection.

For cases where the medical bills exceeded the coverage, the employers will have to pay the difference. Employers who face difficulties in paying medical bills beyond the insured amount may approach the hospital directly to discuss various options, such as instalment payments.

We should not cap the maximum medical liability on an employer. Employers, who make the decision to bring foreign workers into Singapore, should bear the cost of their care. Otherwise, hospitals will run deficits, which are ultimately paid for by the taxpayer.

The purpose of the foreign worker levy is to regulate the demand for foreign manpower. As with other taxes and levies collected, revenue arising from the foreign worker levy is channelled to the Consolidated Fund and forms part of the Government’s revenue to finance Government expenditures in general. The Government does not earmark specific levies for specific expenditure purposes.

maintenance of their foreign domestic workers, including their medical treatment, under the work permit conditions. When healthcare subsidies for foreigners were removed from 1st January 2008, we mandated employers to purchase and maintain medical insurance for S Pass holders, Work Permit holders, and foreign domestic workers. This was to help employers mitigate and manage their exposure to the cost of medical care for their foreign workers and foreign domestic workers.

Mr Speaker, medical insurance usually has a maximum coverage, so it may not help the employer to purchase additional medical insurance for the foreign domestic worker. And I would like to ask whether MOM has also considered the fact that employers of foreign domestic workers are mere individuals and are not corporations. Hence, these employers are unlikely to also have the resources, like companies, to take care of cases where there are extremely high medical bills for their foreign domestic workers and especially when the subsidies for healthcare have been removed for foreigners. Would he also not agree that the foreign domestic workers themselves would not also be able to afford the fees themselves? And could the Ministry consider again using part of the levy or charging something separate so that there is a consolidated pool to go towards helping employers paying beyond the minimum insurance coverage?

Sir, I thank the Member for his suggestion. We will require all employers of foreign workers, including foreign domestic workers, to take care of the medical needs and the upkeep of their foreign workers. This means that they have to buy the medical insurance beyond which coverage they will have to bear on their own.

But in case any employer has difficulties, then they can approach the hospital concerned directly to work out the payment plan or to seek assistance

We will leave it to the employers to decide on their own whether or not to have higher coverage of insurance for their foreign domestic workers or foreign workers. We will not set the limit to any insurance coverage but we will leave it to the employers to decide.

from the hospital. That, I think, the employers can try to work out with the hospital.

Mr Baey, last question.

Mr Speaker, I am afraid the Senior Parliamentary Secretary has not addressed a part of my question, ie, in Singapore, companies which employ either Singaporeans or foreigners do not have unlimited liability for the workers' medical bills. So, why is it that employers of foreign domestic workers have that liability?

Sir, for local workers, we require employers to purchase insurance coverage under the Work Injury Compensation Act (WICA) that covers the workers in case they meets with injuries during work. We do not have that for the foreign domestic workers. That is why, as a result of the removal of the subsidy for foreign domestic workers and foreign workers, we would require employers of foreign workers to buy insurance coverage first, initially, for $5,000 and from January next year, we will require them to buy insurance coverage for a minimum of $15,000.

This is to explain to the Member that we actually require employers of local workers to buy insurance coverage under WICA for their local workers. We think that we should leave it to the employers to decide on the maximum limit of insurance coverage for medical purposes for their foreign workers.

13. Mdm Cynthia Phua asked the Minister for the Environment and Water Resources (a) for the past five years, what is (i) the number of hawker stalls let out under the Tender Scheme and Walk-in Scheme; (ii) the average percentage above the reserve price that were bidded for stalls under the Tender Scheme; and (iii) the number of tenancy assignments; (b) whether his Ministry keeps track of the assignment fee paid for such stalls; (c) what is the number of vacant hawker stalls, average period of vacancy and reasons for the vacancies; (d) whether some vacant stalls in each market can be set aside for deserving hardship cases at subsidised rental.

Mr Speaker, Sir, over the past five years, NEA let out an average of 250 stalls through the Tender Scheme and 130 stalls through the Walk-in Scheme every year. The successful bid prices for market and cooked food stalls are about 32% and 56% above their reserve prices, respectively.

Stallholders may assign their stalls to another party. On average, there are about 360 stall assignments a year. However, NEA does not keep track of the assignment fees as these are private transactions.

There are currently 228 vacant stalls in the markets and hawker centres managed by the NEA. The stalls typically fall vacant when the stallholders decide to exit from the trade or when it is no longer financially viable for them to carry on operating, for instance, due to competition or decline in patronage. The duration in which these stalls remain vacant varies according to their demand.

Sir, the practice of allocating vacant stalls at subsidised rent to hardship cases was discontinued in 1990. It was observed that many of those who applied for these stalls did not appear to be in urgent need of assistance. Moreover, Sir, there are currently several job and financial assistance schemes administered by the five CDCs for hardship cases, and these schemes, Sir, are less risky than the hawking trade. NEA therefore has no plans to reinstate this practice.

Thank you, Mr Speaker. I have two supplementary questions. Currently, the high assignment cost from one tenant to a new tenant is very high. In view of that, I am wondering if NEA could keep a tab as well as a cap on this. Just like the HDB, they have imposed the resale levy. He may want to consider an assignment levy so that the cost of it will not be borne by the consumer.

Just ask your question, Mdm Phua.

Mdm Cynthia Phua: I just want the Minister to consider keeping tab on the assignment cost of these Tender Scheme stalls.

Question two. The Tender Scheme pricing is at least 50% higher than the walk-in Scheme. This means the entry level for those who need the stalls is very high. I would urge Minister to consider setting aside 10% to 20% of the stalls for low-income families and some of the elderly residents who do not have the skill set and are unable to upskill their skill set.

Sir, the answers to both questions asked by the Member are in my first answer. The assignment process is a private transaction between two interested parties. As to whether we can keep a tab, if you mean

On her second point, the better alternative for those who are really in need of a job or any form of assistance is to go to the CDCs or find other forms of assistance. The hawking trade is very risky. If you do not have the skills set to cook and your food is not that great, you may not be able to get the patronage. If you go to the market stalls, you need to have the ability to garner supplies for the things that you are trading in. So there are a lot of hurdles for them in order to enter the trade. But if they were to go to the CDCs, they have a lot of opportunities for training or even alternative employment, and that is a lot more stable. So for those reasons, we decided that it is not best for us to continue with this practice.

monitoring the numbers, we can do that. But in terms of the assignment fee, it is going to be very difficult to track, because of our inability to verify if the assigned value is true or not. So it is very difficult for us to do the verification, because it is a private transaction. But her point about the fact that the fee is very high, I think is worth noting, and I hope the public will also understand that this is a private arrangement. Therefore, they have to go in with their eyes open to see whether they can afford it or not. But it will not be passed on, because the person who takes the assigned stall will be charged market rent and he knows what the market rent is. The market rent is irrespective of the assignment fee.

14. Mdm Ho Geok Choo asked the Minister for the Environment and Water Resources in view of the impending closure of several privately-owned wet markets (a) what are the implications on wet markets managed by the National Environment Agency (NEA); (b) what has been the take-up rate at these NEA markets and the profile of applicants over the last 10 years; and (c) how has the rate and profile of hawkers at these

markets managed by NEA changed over the last 10 years.

NEA currently manages 82 Government-owned wet markets which were built in the 1960s and 1970s to resettle the street hawkers. In 1981, the Government decided that it would no longer build wet markets in new HDB estates.

However, in response to residents’ feedback that they preferred to buy produce from wet markets, HDB had since 1992 constructed smaller scale markets in HDB neighbourhood shopping centres. These markets were leased or rented out en bloc to single private operators, who in turn sublet stalls within the markets individually under their own private arrangement.

Although the media recently reported that these privately-operated markets were being bought over by supermarket operators and converted into supermarkets, the operators of these premises would need to seek approval from HDB for any sale/assignment and change of use. NEA currently has no plans to change the use or management of the Government-owned wet markets that it manages.

The current occupancy of the Government-owned wet markets is about 91%, compared to 78% 10 years ago. The Hawker Centres Upgrading Programme (HUP), which started in 2001, has also improved the occupancy of the wet markets. Some 1,700 stallholders or 30% of market stallholders per centre opted to leave the trade during HUP, citing reasons such as retirement and tough business conditions. Consequently, vacant stalls that were in low demand were removed to enhance the stall sizes and layout.

Vacant stalls in the wet markets are put up by NEA for tender or direct

application under the Walk-in Scheme every month and the average take-up rate of these vacant stalls is about 23% and 3%, respectively. The current median age of hawkers operating in the wet markets is 60 years old.

Thank you, Minister, for the reassuring response. I am just wondering how many of those applicants were from the wet markets earmarked for closure and what would be the likely success rate in obtaining alternative stalls at markets managed by NEA?

Question two – judging from the reports and comments from the public, wet markets have a special place in the heart of Singaporeans and foreigners alike as a place for community bonding. What are NEA's plans in ensuring that wet markets will continue to function because the hygiene standards are well taken care of by NEA? And how could NEA ensure that the wet markets with its smell, sights and sounds will remain alongside the supermarkets, and continue to be preserved as part of our heritage?

Sir, to the second question, as I mentioned in my reply, we have no plans to change on how we manage the 82 Government-owned wet markets. For now, they will remain as what we know, with the smell, the sound and the sights.

As to the Member's first question of whether I can ascertain what is the success rate for the take-up, it really depends on the stallholders themselves and the location of the centre, some of which are more popular than others, and these will attract higher bids. For those that are less popular, obviously they will attract lower bids. So it is really up to the individual stallholders to decide which market they want to tender for.

15. Mr Christopher de Souza asked the Deputy Prime Minister and Minister for Home Affairs (a) what is the local terrorism threat level after the recent successful operations against terrorist cells in the region; (b) whether such operations have made Singapore and Southeast Asia safer; and (c) what measures Singaporeans can take to maintain our heightened vigilance against terrorist attacks.

Mr Speaker, Sir, security operations undertaken by the Indonesian authorities following the attacks against two Jakarta hotels on 17th July 2009, and by the Malaysian and Philippine authorities in recent months, have led to the capture and death of several terrorists, including Noordin Top. These counter-terrorism successes have improved the security situation in the region. However, the elimination of several terrorist leaders does not remove this threat. We must remember that other terrorists are still at large and individuals continue to be recruited to become terrorist operatives. The recent security operations also uncovered terrorist plots, and surfaced weapons and explosives. These confirm that terrorist elements remain intent on and are capable of carrying out terrorist attacks. One concern is that terrorist elements might even be driven to launch more attacks out of desperation or revenge. We should also not underestimate their capability to regroup and the possibility that a new charismatic, and equally violent, leader will emerge to take Noordin’s place.

The key challenge against terrorism is the violent jihadist ideology. Societies and governments need to take a firm and unequivocal stand against such radical

There have also been signs that international terrorists like Al-Qaeda may be re-establishing ties with regional terrorist elements. Previous collaborations between Al-Qaeda and the Jemaah Islamiyah (JI) had resulted in major regional attacks like the 2002 Bali bombings, the Marriott Hotel attack in Jakarta in 2003 and the Australian Embassy attack in Jakarta in 2004; Al-Qaeda had also previously collaborated with the Singapore Jemaah Islamiyah to plot attacks here.

Sir in short, the threat of terrorism to Singapore and Southeast Asia remains a major challenge despite the recent successful operations. We have a long way to go before this threat can be considered eliminated or reduced.

In Singapore, MHA has been meticulously investigating and tracking down Singaporeans and others involved in terrorism. Over the years, we have also undertaken many measures aimed at countering terrorist ideas and hardening our defences. However, we know that we remain on the terrorists’ radar. They will continue to look for opportunities to attack us, hoping that we will let down our guard. They may also try to take advantage of high profile events hosted by Singapore to maximise publicity.

The Home Team will continue to work in concert with our local and regional partners to try to prevent terrorist attacks in Singapore. Some of the measures we take will cause inconvenience to the public. However, I hope that Singaporeans will continue to be understanding and render their full cooperation. Security is everyone’s business, not just the responsibility of the Government and

and violent ideology. By doing so, such ideas would have limited space to spread in the population. Otherwise, we will continue to see new generations of radicals and terrorists develop. security agencies. The public should also continue to stay alert for any suspicious persons or activities, and report such observations to the authorities so that we can take preventive action.

Thank you, Senior Minister of State, I have two supplementary questions. On the issue of Singapore being on the terrorists' radar, have our MHA officers been given access to Mas Selamat and if so, what did he say?

And secondly, what is the outcome of Mas Selamat's family's request for travel documents to enable them to visit him in Malaysia?

Sir, let me first say that, Singapore understands Malaysia's need to hold Mas Selamat for further investigations in order to neutralise any potential security threat, specifically the plot he was hatching whilst hiding in Johor. Malaysian authorities have given our security officers access to Mas Selamat. He was, however, uncooperative during the interview and refused to talk. So at this point, ISD's accessment is that he remains defiant. Sir, the security agencies of both countries are in close communication with each other. Nevertheless, given Mas Selamat's past records, we must be realistic about what we can extract from a hardcore terrorist like him, in particular, on the details of his escape. He may not reveal everything. Indeed, even if he does eventually talk, we may have no way of confirming with certainty everything that he says. So that is the reply to the first question.

On the second question, Sir. ISD is still considering the request from the family members for travel documents. The passports of Mas Selamat's family members were seized in 2005 because of the immigration offences they had committed whilst they were in Indonesia in the earlier years, when Mas Selamat was on the run from the authorities. He

had produced a false Indonesian identity card and he and his family had hidden in Indonesia as illegal immigrants. Moreover the passports were also seized for security reasons as Mas Selamat's wife was a member of the JI's Women's Wing. ISD will take all these factors into consideration in coming to a decision whether or not to issue the family with travel documents.

16. Mdm Ho Geok Choo asked the Minister for Trade and Industry (a) how can productivity-driven growth be facilitated across the various economic sectors; (b) how should various industries and sectors enhance their human resource management and practices to be productive; and (c) whether he can provide reasons for the drop in productivity in Singapore.

Sir, in the run-up to the current financial crisis, our productivity growth averaged 3.2% p.a., for the period of 2002 to 2007. This compares favourably against the 1.9% growth achieved by the OECD economies over the same period. Nonetheless, we need to continue to strengthen our productivity fundamentals to ensure sustainable economic growth and safeguard Singapore’s competitiveness. A joint MOM-MTI Productivity Taskforce was formed in February 2009 to examine the drivers of productivity with the services sector as a key area of focus. The Taskforce highlighted four strategies to raise productivity in the services sector. They are i) undertake research and benchmarking to establish the relevant productivity matrix and develop new tools to enhance productivity; ii) raise service excellence to achieve service that is both effective and

Currently, companies can tap on a wide range of Government programmes to help raise their productivity. For example, SPRING has the Technology Innovation Programme to help companies secure technology consultancy services as well as to fund plans to accelerate technology adoption in business operations. There is also the Local Enterprise Technical Assistance Scheme, which helps companies to bring in experts to improve business management and operations.

Good human resource management is also key in improving productivity. Companies can leverage on Human Resource Workforce Skills Qualifications (HR WSQ) and Leadership and People Management Workforce Skills Qualifications (LPM WSQ) frameworks developed by WDA to help them improve their human resource practices. At the national level, MOM has also formed strategic partnerships with leading institutions to share best-in-class programmes with local HR practitioners, for example the HRST and Hot Spots Programme.

efficient; iii) invest in greater innovation to improve products and processes; and iv) to enhance human resource management. The Economic Strategies Committee is also studying how enterprise productivity can be improved and will make its recommendations to Government in due course.

Beyond companies, we will work with industry associations to raise awareness of productivity issues, facilitate the sharing of best practices and the deployment of productivity tools and techniques relevant to the context of their industries.

Three supplementary questions. One is, which sector in particular, has seen the greatest drop in productivity and what are the reasons.

Second question is with respect to the foreign labour force. In what way are we inducting the foreign labour into our productivity-drive programme? The third question has to do with the availability of schemes. In particular, to the SMEs to enhance soft skills that are quite hard to grapple with, especially like HR management skills. Are there any special incentive schemes or awards that are targeted at the SMEs?

Sir, I believe the Member is alluding to the drop in productivity in the recent two years. Let me give some numbers to help explain the situation.

First of all, productivity numbers fluctuate from year to year. This is true in our records; this is also true in other countries. However, in periods of recession and slowdown, productivity numbers tend to drop even further to negative territories. This happened in the 1997 financial crisis as well as after the dotcom bubble burst in 2001. In the current period, therefore, is not surprising that productivity has dropped. In 2007, there was a record employment growth of 234,900 jobs, and this was far higher than the average of 116,000 jobs created the previous year. This is almost twice the number. So even then, in 2007 when output was growing at 7.8%, it was not able to keep pace with the manpower growth, resulting in negative productivity growth of -0.8%. By 2008, the output growth had moderated to 1.1% and this is really a reflection of the weakness of the global economy. However the total employment growth continued by 221,000 or 8.1%. So therefore, if you divide the two, we saw a sharp decrease in productivity growth of -7.8%.

The Member may ask why are the firms recruiting ahead of demand. I think in a free economy like ours, all the firms are recruiting in anticipation of higher output, higher demand and greater volume

The Member asked which sector saw the drop in productivity. Generally speaking, the greater the export orientation of the sector, the higher would be its productivity and it would also record the biggest drop in its productivity level from the peak. This is really because they depend on the market; if the market grows 30%, productivity will rise correspondingly and if the growth drops, it will suffer a bigger cut. However, it is also the export sector that has got higher productivity per worker compared to other sectors. The lower productivity sectors are those that are more domesticated. They are typically found in the retail, construction, hotel and F&B industries. These are the sectors that hire a lot more workers but they are not able to raise productivity very much compared to the export sector. So this is why the Task Force by MTI and MOM have identified this sector to study for productivity improvement. For the hotel, F&B and retail sector, their output is about $10.8 billion last year but they hired 300,000 workers. Obviously if we can make productivity improvement in this pool, it will lead to a far better productivity level for these sectors.

Our foreign workers control – I think the various measures are in place and they are governed by different measures from sector to sector and they are designed in such a way that the foreign workers are hired based on the number of Singaporean workers hired. I think there is an elaborate set of measures. Previously, MOM has explained how this worked. However, going forward, I think we can look at how we can improve the quality of foreign and Singapore workers so that all of them are capable of higher output.

The Member also mentioned some of the softer skills required for productivity improvement. Indeed, productivity improvement is both the employer's as well as the worker's responsibility. If the business owner or the employer is in the wrong type of business, if they are not able to create new products and services of higher value, if they are not able to diversify away from markets that are too competitive, then there is very limited growth in terms of raising output and value. Likewise, if the workers are not able to acquire new skills, to handle new machinery or processes, or handle technologies introduced in the processes, then our productivity movement will also be retarded. So therefore we need to work on both technology intervention and also on better human resource management within the organisations to help deploy, retain and retrain our workers.

of business. When these turned out to be not true, the important thing we have to ensure is that in our labour market, there is flexibility for them to downsize and trim the workforce. Indeed, our labour market is one of the most flexible in the world.

Supplementary questions that I would like to ask the Senior Minister of State. On the second pillar to raise service excellence – are there any plans to make sure that service workers, migrant workers, must at least have a working knowledge of English? That is my first question. Second question is, are we looking at the experiences of other countries in the area of improving service productivity and what are the lessons that we can learn from them? My third question is the service sector has predominantly a large number of small and medium-sized enterprises. How do we help these small and medium-sized enterprises to move up in their service productivity because they traditionally hire a very small number of workers and very small amount of investment in service process improvements and so on? Thank you.

Mr Speaker, Sir, let me respond to the three questions. The first, whether to include English as a requirement. Well, from the productivity point of view, if the English language or

As for small companies, we cannot say that all small companies are inefficient or unproductive because the big companies started small. I think if they have the right technology, if they have the right business model, with the right orientation towards export to the world, from Day One, they can be growing very quickly. We have seen many examples of software development and games development business, they either go into the phone or internet gaming that has got worldwide market on the first day they launch the company. So, such companies tend to be able to grow and ride the growth of other key markets quickly. The important point is to introduce greater innovation in these companies so that they can become big one day.

any other language is an additional skill set to help the workers do better at their jobs, certainly, it can be included. Second, when it comes to benchmarking, I think this is an important area that we are doing at the national level. We are also working with industrial associations to understand, for instance, how would the F&B industries in Japan or in Hong Kong achieve their higher productivity in Singapore. Or how would the US and the European counterparts in retail sectors can achieve higher sales per worker or sales per floor area than our Singaporean retailers. I think when we study this, we will find that sometimes the industry structure is different and it may mean intervention at the company level. Sometimes it may mean also intervention at the industry level.

17. Mr Arthur Fong asked the Minister for Trade and Industry with the successful completion of F1 second night race in Singapore (a) what is the revenue

generated for our economy as compared to the one held last year; (b) how can we further improve on minimising disruptions to businesses in the Marina Bay area as well as traffic into the city; and (c) whether the Ministry will be working with LTA and the race organisers to address the bumpy track of the Marina Bay Circuit.

Mr Speaker Sir, Singapore has been able to host successfully two Formula One (F1) races to date and we retain the distinction of being the only night race on a street circuit set in the heart of the city. We have also complemented the race with a strong line-up of leisure and lifestyle events under the banner of the Singapore GP Season, such as the inaugural F1 Rocks concert this year. Taken together, these initiatives have helped us to maximise the branding and economic benefits for Singapore.

Last year, the event drew more than 40,000 overseas visitors and generated nearly $170 million in incremental tourism receipts. The race captured the international media's attention and was watched, at least, in terms of general TV viewership, 110 million, but it exceeds half a million when you take it on accumulative basis over the year. Hotels across all tiers also benefited substantially during the F1 race weekend last year.

It is a little more than three weeks since this year's race. The Singapore Tourism Board (STB) is still collating data from various sources and should be able to give the numbers for F1 2009 by the end of the year. However, it should not be a surprise to us if this year's numbers are not as strong as last year's. This is to be expected given the backdrop of the global economic downturn. But the attendance was still very strong as the media has reported – more than 95% of the tickets

Learning from last year's inaugural race, the organisers have made a significant effort to shorten this year's road closure period from 12 to seven days. This is by no means an easy task because it entails a significant addition of resources, coordination and also safety clearance for the international sports authorities. And this reduction has lessened inconvenience to road users. Government agencies that were closely monitoring traffic conditions observed that while there were still some instances of congestion due to the various diversions, the situation was a marked improvement over 2008.

Most stakeholders appreciated the significant improvement in the management of this year's road closures. The organisers will use their cumulative experience to review the plans for next year and explore options, together with the FIA and FOM, to further enhance road access and reduce inconvenience to road users where feasible.

On the Member's last question pertaining to the alleged bumpiness of the track, LTA remilled and resurfaced Raffles Boulevard to remove the bumps observed last year. However, we must recognise that Singapore's F1 race takes place predominantly on working city streets which are used for the rest of the year by a variety of vehicles. By its very nature, an F1 street circuit will never be as smooth as a purpose-built track. It is also noteworthy that the FIA had thoroughly inspected and approved the Marina Bay Circuit as safe for racing both last year and this year.

Our Government agencies, working closely with race promoters and the FIA, remain committed to ensuring that the Singapore Marina Bay F1 circuit is safe for drivers, marshals, spectators and indeed all who are there at the street circuit.

were sold. Beyond tourism receipts and arrivals, the F1 race continues to strengthen Singapore's international branding and improves our mindshare. It also serves as a good platform for business networking, innovative activities and the creation of new opportunities.

In light of increased competition from new street circuits in Abu Dhabi, and with Malaysia upping its ante by introducing its own team, and with the novelty of the night race wearing off, what is the Ministry doing to ensure that our night race would continue to be internationally competitive?

Sir, I think the short answer is that we will have to continually look for innovative ideas to enhance the attractiveness the Singapore Race in order to continue to position it as one of the top two or three races in the F1 calendar every year.

3.00 pm

Order. End of Question time.

[Pursuant to Standing Order No. 22(3), Written Answers to Question Nos. 23-27, 31-33, 35, 38, 42 and 47-48 on the Order Paper are reproduced in the Appendix*. Question Nos. 18-22, 28-30, 34, 36-37 , 39-41, 43-46 and 49 have been postponed to the next available sitting of Parliament.]

*Cols. 1639-1658.

"to amend the Singapore Armed Forces Act (Chapter 295 of the 2000 Revised Edition) and to make related amendments to the Enlistment Act (Chapter 93 of the 2001 Revised Edition)",

presented by the Deputy Prime Minister and Minister for Defence (Mr Teo Chee Hean); read

the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Medical Registration Act (Chapter 174 of the 2004 Revised Edition) and to make related amendments to the Dental Registration Act, the Pharmacists Registration Act and the Private Hospitals and Medical Clinics Act",

presented by the Minister for Health (Mr Khaw Boon Wan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

Order for Second Reading read.

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

The Income Tax (Amendment) (Exchange of Information) Bill proposes amendments to the Income Tax Act that will allow Singapore to implement the internationally agreed Standard for the exchange of information for tax purposes upon request.

The Bill was released for public consultation from 29th June to 28th July this year. The Ministry of Finance (MOF) has revised the Bill to incorporate the public feedback received.

Internationally agreed Standard

Sir, for the benefit of Members who may not be familiar with the internationally agreed Standard for the exchange of information, allow me to first explain how it came about.

The principles of transparency and exchange of information for tax purposes have evolved over the years. The Standard in its current form was first published by the Organisation of Economic Cooperation and Development (OECD) in 2005. It was most recently articulated in the OECD 2008 Model Tax Convention on Income and on Capital, and sets out how tax jurisdictions should address cross border tax evasion by entering into effective information sharing arrangements through their Avoidance of Double Taxation Agreements (DTAs).

When the Standard was first published by the OECD in 2005, jurisdictions which were not members of the OECD did not have to adopt it in their DTAs. Not all jurisdictions accepted the Standard. In fact, even some OECD jurisdictions expressed reservations on the Standard. Singapore noted the Standard, but did not adopt it because it was one promulgated by the OECD which we are not a member of, and was not a worldwide Standard then.

The Standard only gained recognition as an internationally agreed Standard when the United Nations Committee of Experts on International Cooperation in Tax Matters endorsed the Standard in October last year.

Following the UN Committee's move, Singapore decided to endorse the Standard in March this year. It has always been our practice to adopt relevant international standards, in keeping with our role as a trusted international financial centre and a responsible jurisdiction.

Our financial sector is built upon the quality, depth and breadth of services we offer, strong and consistent regulatory policies and a firm commitment to the rule of law. Our strict anti-money laundering regime, for instance, is held in high regard by the Financial Action Task Force (FATF) which is an international body, which

What the Standard means for Singapore

It is important to note that Singapore was able to exchange information with foreign jurisdictions on tax matters even before we endorsed the internationally agreed Standard. We can and already provide tax information in response to foreign requests through our DTAs. However, assistance through DTAs was subjected to the domestic interest condition, meaning that the information had to be relevant to the enforcement of domestic tax laws before the Inland Revenue Authority of Singapore (IRAS) can gather and exchange it with DTA partners. Where there was a domestic interest, our banking and trust confidentiality laws allowed for information to be obtained for the purposes of investigating or prosecuting a tax offence.

The new internationally agreed Standard for exchange of information enhances the scope of information exchange cooperation under DTAs by lifting the domestic interest condition and allowing for access to information from banks and trust companies under certain conditions. This enhanced scope of cooperation will not only allow Singapore to provide greater assistance to its prescribed treaty partners, but also help Singapore obtain information for the enforcement of our domestic tax laws.

An integral aspect of the internationally agreed Standard is its respect for taxpayers' rights. The Bill contains important safeguards in this respect. Spurious or frivolous requests for information will not be acceded to. Further, it does not allow for what is called "fishing expeditions" – it requires requests for information to be specific,

Additionally, the Standard also does not allow jurisdictions to take advantage of the information system of another jurisdiction if it is wider than their own system. Hence, we will only exchange information that a requesting jurisdiction would have ordinarily been able to obtain under its own laws or administrative practices, had the information resided in that jurisdiction in the first place. Jurisdictions must also have pursued all domestic means to access the requested information before putting forth a request to us.

Such safeguards do not impede the effective exchange of information. They are provided for by the internationally agreed Standard to uphold the principle of respecting taxpayers' rights. With the amendments proposed in this Bill, Singapore is committed to respecting these rights, while fully meeting our obligations under the Standard and playing our full role as a trusted and responsible jurisdiction.

The Standard also sets out clear limits on the types of information that jurisdictions are obliged to exchange. Jurisdictions are not obliged to exchange trade or business secrets, or information that is subject to legal privilege. They may also decline to exchange certain information if doing so would be contrary to public policy. Some examples of such information include state secrets or information sought for the purposes of political, religious or racial persecution. However, these are serious grounds of refusal, and we do not expect to invoke them under normal circumstances.

Implementing the Standard through DTAs

The legislative amendments contained in this Bill will enhance the level of assistance that Singapore can provide to foreign jurisdictions whose DTAs with us incorporate the new Standard. To date, we have reached agreement with 20 jurisdictions to incorporate the Standard under our DTAs, and have formally signed such agreements with 11 of these jurisdictions.

Most of these jurisdictions are those we already have full DTAs with and therefore have broader cooperative arrangements with on matters of tax, and with whom we have established a good understanding on each others' systems and processes of law. Of the 20 jurisdictions that we have reached agreement with, 15 are in fact OECD members.

Sir, the changes Singapore is making are essentially similar to those being made by other major financial centres. For example, Hong Kong is making the same moves. It is amending its legislation and intends to conclude DTAs to give effect to its amended legislation. Switzerland and Austria have each signed more than 12 DTAs that incorporate the internationally agreed Standard, and will be able to fulfil their obligations under the Standard once these DTAs are ratified.

Enhancing the scope for foreign assistance

Sir, I will now explain the two categories of specific amendments to the Act that will allow us to implement the internationally agreed Standard. The first category enhances the scope of assistance that Singapore can provide to foreign jurisdictions under DTAs that incorporate the Standard, or "prescribed DTAs" for short.

Lifting of domestic interest

Firstly, as I have explained earlier, under our current laws, exchange of information with our treaty partners is subjected to the domestic interest condition. The new section 105F lifts this domestic interest condition to enable IRAS to satisfy its obligations under the prescribed DTAs.

Access to information held by banks and trust companies

Secondly, under existing laws, IRAS may only obtain banking and trust information for the purpose of investigating or prosecuting a suspected domestic tax offence. The internationally agreed Standard requires the exchange of information which is foreseeably relevant to the administration of the requesting jurisdiction's own tax laws, without it being predicated on the taxpayer having committed an offence. IRAS' information gathering powers will be widened under the new Part XXB to enable it to access bank and trust information to accommodate requests on tax administration matters under prescribed DTAs and domestic tax administration matters.

Allowing exchange of information for other taxes in addition to income tax

Thirdly, as the internationally agreed Standard applies to all forms of taxes, IRAS will be allowed to share information obtained under the Goods and Services Tax Act, Stamp Duties Act and Property Tax Act to fulfil Singapore's exchange of information obligations under the prescribed DTAs. The new section 105G provides for this change.

Safeguards

The second category of amendments sets out safeguards to ensure that requests for information are only acceded to where they are clear, specific, relevant

Documentary requirements

The new Eighth Schedule sets out the documentary requirements which a requesting jurisdiction must fulfil for all requests. These requirements ensure that requests are justified, that is, clear, specific, relevant, legitimate and consistent with the Standard. They will help screen out "fishing expeditions".

Access to banking and trust information

There will be safeguards for assisting in requests relating to information that is protected from unauthorised disclosure under the Banking Act and the Trust Companies Act. The new Part XXB sets up a judicial process for IRAS to obtain such information in response to requests under prescribed DTAs. The affected taxpayer and bank or trust company will be notified of the request, unless there are exceptional circumstances, such as if doing so would prejudice an investigation into any breach of tax laws, or prevent or unduly delay the effective exchange of information. IRAS will make an application to the High Court for a production order to access the requested information. The affected taxpayer and bank or trust company will have the right to apply to the Court to discharge or vary the Court order.

I should emphasise that these procedures are not meant to frustrate or delay the information exchange process. Rather, they are intended to provide a fair and independent assessment of the validity of requests, and allow us to render effective assistance to valid requests. They are essentially similar to procedures used in the United Kingdom,

Sir, the proposed amendments that the Bill contains will allow Singapore to implement the new internationally agreed Standard. Other leading financial centres are moving in tandem to implement the Standard. The changes we are enacting are fully in keeping with Singapore's status and reputation as a trusted and responsible business and financial hub committed to the international effort to combat cross-border tax evasion.

Sir, I beg to move.

Question proposed.

rates Singapore's compliance score equal to the US and second to none. Our confidentiality laws are not intended to shelter tax criminals. detailed and relevant to the tax affairs of the taxpayer in question. Consistent with the tax Standard, we will only provide assistance where there is a genuine case at hand, and the requested information is specific and relevant to the case. and consistent with the internationally agreed Standard. Proper safeguards, including due legal process, are crucial to protecting the rights of taxpayers, and in maintaining confidence in our tax and legal systems. which relies on a tribunal process, or the United States which relies on the courts.

3.13 pm

Sir, I commend the Government for its swift and sensible action to amend this Act. This amendment inserts key provisions that strengthen the ability of IRAS to comply with requests for information under the Avoidance of DTAs.

These legislative changes are inevitable and necessary if we do not want to be singled out by OECD as countries that are less than cooperative on the tax front. As a small and open economy that heavily depends on international trade, services and global investments to sustain our economic livelihood, the ramifications are serious if Singapore is being categorised as an uncooperative tax regime.

Since the publication of the grey list at the G20 London Summit in April, the number of jurisdictions in the list has acted equally fast to amend their law and implement the exchange of information (EOI). Like Singapore, countries such as Switzerland, Belgium and Luxembourg have no choice but to expedite the implementation of the exchange of information.

While getting out of the grey list may be the key motivation for this amendment, I feel that these changes are also a step in the right direction if we want to build a respected and admired tax regime that is sustainable and healthy.

Our value proposition as an international financial centre cannot be based on "beggar-thy-neighbours" approach. Neither should it be at the expense of other jurisdictions’ tax policy. Rather it should be built on the quality and expertise of our financial institutions as well as the strong and fair legal system that we have established.

In today's environment where business transactions are increasingly international in nature, tax authorities around the world face greater challenges to enforce cross border tax laws. There would be increasing dependence on international co-operation. And having a commonly accepted international standard on the effective exchange of information would enhance certainty and stability as countries interact and cooperate. This would not only benefit our trading partners but Singapore as well.

As an international financial centre, one of our strong credentials among others is the tough confidentiality laws. This is probably one important ingredient that made Singapore a vibrant wealth management centre that it is today. So the key concern with the EOI is whether this would jeopardise financial privacy and undermine the attractiveness of our private wealth management industry. A relevant question would be whether any competing financial centres will benefit at our expense when the EOI is rolled out here.

Judging by the recent successes of Global Forums to urge both OECD and non-OECD countries to substantially implement the standards, no jurisdictions which aspire to be a financial centre or

In any case, we do not want a reputation where our banking secrecy laws will be abused to facilitate tax evasions or other crimes. The existence of EOI with our treaty partners would encourage compliance and deter taxpayers from withholding information from their tax authorities.

However, I do have some concerns to raise. We need to be watchful of any cases of disguised protectionism when countries seek information under the EOI. We read about reports where foreign governments when faced with daunting economic challenges would put the blame on low tax jurisdictions for their problems. In particular, it is sometimes perceived that tax benefits enjoyed by these companies, outside their home country, led to the loss of jobs and tax revenues. Foreign corporate taxpayers that are subjected to the request for sensitive information by their government will fear the loss of financial privacy and that may discourage other companies from moving offshore.

How would the Government safeguard against requests for information which has this protectionist intent?

My second concern is the so-called "fishing expeditions" that the Minister mentioned. The safeguards against the so-called "fishing expeditions" by the requesting party are provided for at the Eighth Schedule with the list of 11

At the individual level, I welcome the clarity and legal security provided for by section 105J for the individuals, which essentially provides for the right of the party against whom the order is made and the information is sought to apply to the High Court to vary and discharge the order within seven days. This right must be highlighted to the taxpayer whenever the situation arises.

My third concern is in regard to the need to regulate and monitor the information flow to avoid it falling into the wrong hands.

There is this real risk that the information sought by the requesting state may be lost, leaked, stolen or misused. Such sensitive information in the wrong hands could cause damage to the taxpayer's good name, reputation and his business activities.

I would like to ask the Minister whether we would require the requesting state to sign an undertaking acknowledging the duty of secrecy as well as indemnifying IRAS from any claims should this sensitive information be mishandled.

With the EOI in place, the requests for such information are expected to increase significantly. So my next question is whether these jurisdictions would have the ability as well as the capacity to reciprocate when the request is made. In

With the EOI in place, it should smooth the path for more DTAs to be signed and therefore enhance Singapore status as an international business centre.

Singapore has yet to enter into the Comprehensive Avoidance of Double Taxation Agreement with the US. I would like to ask the Minister if EOI is the stumbling block in the earlier negotiations. Would the implementation of this new EOI standard open the door to reviving negotiations with the US and increase the prospects of entering an agreement with the US?

Finally, in a way, this financial crisis and recession have hastened these developments. The various corporate bailouts and economic stimulus measures have left many governments with huge fiscal deficits. These gaps need to be filled quickly and hence the push by politicians in these countries to focus on tax leakages and finding ways to discourage the use of tax havens or low tax offshore financial centres.

In a short span of a few months, OECD has "forced" upon a certain level playing field. We have no choice but to adjust and adapt accordingly to the new tax world.

In any case, in this ever dynamic and competitive environment, with or without the EOI, Singapore will still need to

Sir, I support the Bill.

commercial centre can get away with just remaining in the status quo. Coupled with the synchronised approach among the so-called Peer Review Group, in which Singapore is the Vice Chairman of the group, it is unlikely any late mover would be able to profit from these developments. For example, Hong Kong, like us, has also put forward legislative changes. In fact, there are no countries left in the list of un-cooperative jurisdictions maintained by OECD. questions. I felt that the safeguards can be made even more explicit by making the requesting jurisdiction declare that they are not on a "fishing expedition". Also, as issues related to such "fishing expeditions" can cut across different areas of Government, is there the need for the involvement of other agencies other then IRAS to ascertain that request is not a "fishing expedition"? We may want to err on the rigorous side to prevent any abuses. particular, do these countries have the administrative practices and the legal mechanism to professionally carry out the exchange of information? This was an issue raised in some forums by a few concerned jurisdictions. As Singapore is a member of the steering group in the Global Forum, we should strongly emphasise that reciprocity of EOI is an important building block. Non-reciprocity can alter the level playing field and lead to parties second guessing each other and therefore mistrust. continually find our own niches and comparative advantages to stay as the top financial centre.

Mr Speaker, Sir, I applaud the amendment tabled to facilitate the exchange of information under double taxation agreements. It clearly shows Singapore’s strong commitment to the eradication of tax evasion, and tax authorities worldwide will see this as a reassuring move on our part.

However, in this era of globalisation where security considerations are of paramount importance, good intentions could be read wrongly and I do have a number of clarifications regarding this Amendment Bill.

First, to protect the privacy of persons affected by the request of information by foreign tax authorities, we must be sure that the request is bona fide and is not a "fishing" exercise to extract and store the persons’ personal details and other relevant information. To this end, the new section 105D(2) requires that the foreign authorities provide in their request certain information as prescribed in the new Eighth Schedule. While detailed, I feel that some clarity is required in the terms used.

In Article 8, one of the required pieces of information is "[a] statement that the country has pursued all means available in its own territory to obtain the information including getting the information directly from the person in relation to whom the information is requested".

My question is, Sir, does "the country" refer to all relevant authorities in the country (ie, tax authorities, police, any other relevant regulatory agencies), or just the "competent authority" as defined

In Article 9 of the Eighth Schedule, another piece of vital information required is, "the details of the period within which that country wishes the request to be met". Does "the period" refer to the time frame that includes the relevant tax positions, or does it refer to how soon that country wishes the request to be met by the Comptroller? I would also repeat my earlier query about the definition of "the country" in regard to this Article.

Sir, my second query relates to the new section 105G, which empowers the Comptroller to request for information in the possession of other local tax authorities in order to comply with a request for information by a foreign authority.

Sir, I would like to clarify if the other local tax authorities have a duty to actively procure the information from the persons concerned, or is "information in his possession" to be read narrowly to only apply to information that the other local tax authorities may already have.

My third query relates to the new section 105J(3), which lists as one of the conditions of the High Court must be satisfied before issuing an order to disclose protected information is that the disclosure not be "contrary to the public interest".

Sir, I note that the EOI provision in some of our double taxation agreements, as well as the OECD recommendations on the exchange of information, uses the phrase "public policy" rather than "public interest". The OECD has also mentioned that "public policy" generally refers to the vital interests of a country, for instance,

Sir, a case of "public policy" may also arise, for example, where a tax investigation in another country was motivated by racial or political persecution.

I would like to clarify if "public interest" under the new section 105J(3) is meant to have the same meaning as public policy as defined by the OECD, such that (a) it is wide enough to encapsulate national security interests, and (b) it is wide enough to allow the High Court to refuse to grant the order on the grounds that the request for information is rooted in reasons that are not bona fide.

My last query relates to the status of information protected by legal privilege.

Sir, I note the deliberate exclusion of information subject to legal privilege from the new section 105J(1)(b) that allows the Comptroller to apply to the High Court for an order to produce information, and the new section 105K(3)(4)(a) which explicitly states that information, subject to legal privilege, need not be disclosed as a result of the court order obtained under section 105J(2).

However, the new section 105K(3) and section 105K(4)(b) appear to take the opposite position – that information is to be disclosed even if it is protected by law or otherwise. I would like to ask the Minister for a clarification on the status of information protected by legal privilege, where an order has been issued for the production of that information under the new section 105J(2).

Mr Speaker, Sir, I would also like to applaud the safeguards put in place to ensure a rigorous processing of the request for information before sensitive, confidential information is provided to foreign authorities, especially when no notice is given to the person against

Sir, under the new section 105E(4), notice need not be served on a person if it could impede effective exchange of information or be prejudicial to investigations in the foreign country. Furthermore, even if the Comptroller applies to the High Court for an order for the disclosure of protected information, it appears that this application is intended to be made ex parte (ie, only one party appears before the court, and it is the Comptroller in this case).

Sir, therefore, the person whose information is at stake may never get to hear about it, even though he can appeal against the order, if by some stroke of luck he gets wind of the order. Sir, I understand the rationale for this seemingly harsh approach, which is to prevent surreptitious efforts to hide the request information but I am glad to note that the harshness of this approach is ameliorated by the fact that an order to produce information, otherwise protected under our laws, has to be issued by the High Court and not just the Subordinate Courts; and also that there is a right to apply for the order to be discharged or varied.

On this note, I support the Bill.

under the Income Tax Act? If we want to prevent information extracting exercises, it should be stipulated that the requesting country exhausts all possible means within its means and authority before approaching Singapore for information. where information requested relates to a state secret. whom the information is required, and I also note the limited extent to which a person can lodge a protest against the exchange of information to the foreign authorities.

Mr Speaker, Sir, I would like to thank Mr Liang Eng Hwa and Mdm Ho Geok Choo, both for their statements of perspective on the matter as well as their specific queries.

Let me first say that our decision to endorse and implement the new internationally agreed standard is a natural consequence of our long-standing policies. It is the right thing to do and it is in our

interests to do so without delay. In fact, we announced our intention to endorse the Standard in February this year before the OECD had put out its listing of countries according to their compliance with the new Standard in April 2009.

After the G20 London Summit in April this year, the OECD published a list of tax jurisdictions classified according to whether they had committed to the internationally agreed Standard and whether they had already substantially implemented it. White-listed countries were those that had already substantially implemented the Standard – the benchmark being at least 12 signed agreements with others that incorporate the Standard. Grey-list jurisdictions were those that had already committed to the Standard, but had not substantially implemented it yet.

Singapore was on the grey list together with several other financial centres. However, as I have said earlier, we have since reached agreement with 20 jurisdictions to incorporate the Standard under our DTAs, and have formally signed 11 of these agreements. We are confident that we will formally conclude more than 12 agreements before the end of this year. Further, most of our agreements are with major economic jurisdictions, such as the United Kingdom, the Netherlands, Australia, New Zealand, Denmark and Norway. We have not treated this as a numbers game or sought to sign DTAs indiscriminately.

Mr Liang Eng Hwa was concerned, with good reason, that some countries would adopt protectionist moves under the guise of taking counter-measures against jurisdictions that they deem to have unfair tax systems. The diversity of fiscal and tax systems internationally, and competition between fiscal and tax

As of this point, there is no indication of a descent into concrete protectionist measures. There is also no reason for any country to adopt protectionist measures against Singapore. We are a jurisdiction committed to international cooperation according to the internationally agreed Standard; we will soon meet, in fact, more than meet, the OECD target of 12 DTAs incorporating the new Standard.

It is also well-recognised internationally that Singapore is not a tax haven. We will not otherwise be having comprehensive DTAs with major countries – not merely Tax Information Exchange Agreements (TIEAs). The Tax Information Exchange Agreements are concluded between countries which are unable to conclude comprehensive DTAs. We have not taken that route. We have instead stuck to comprehensive DTAs and incorporated the Standard within them. And we would not be able to do so with major economies if we were regarded as a tax haven. They regard us as a substantive and well-diversified economy, not a name-plate jurisdiction.

What we have always believed in is that the global issue of cross-border tax evasion has to be addressed through the rule of law and on the basis of a level-playing field internationally. As Mr Liang has pointed out, our move to adopt and implement the internationally agreed

Mr Liang Eng Hwa also asked whether Singapore's implementation of the internationally agreed Standard would pave the way for negotiations with the United States on a comprehensive DTA. We do think that such a DTA would be in the interest of both US and Singapore taxpayers, and would deepen the strategic relationship between the two countries. Both Singapore and the US are keen to explore a comprehensive DTA and I expect the process to get underway next year.

Mdm Ho Geok Choo had several specific questions on the Bill which I will now address. I will first address her question on Paragraph 8 of the new Eighth Schedule, which requires requesting countries to have pursued all means available in their own territories to obtain the information they are requesting. Requests between countries must be made through their Competent Authorities as defined under the DTA between the two countries.

They may be made on behalf of other agencies that require the information for the enforcement of tax laws, such as the Justice Department or other relevant agencies. All of these agencies, and not just the Competent Authority, must have employed all legal means under the country's domestic laws to gather the relevant information before they can make a request to us. In fact, the internationally agreed Standard recognises that it is reasonable to expect a country to do this before it sends a request to another country.

With regard to Mdm Ho's question on Paragraph 9 of the Eighth Schedule, the term "period" refers to how soon a requesting country wishes the request to be met. Mdm Ho also asked whether the new section 105G would oblige other local tax authorities besides the Comptroller of Income Tax – in other words, the Comptroller of Goods and Services Tax and the Comptroller of Property Tax for instance – to actively gather information that they do not possess in order to fulfil a request. The Standard obliges us to cooperate on information exchange, regardless of the type of tax information. Section 105G(1) spells out that the Comptroller of Goods and Services Tax, the Comptroller of Property Tax and the Commissioner of Stamp Duties are only obliged to transmit information already in their possession to the Comptroller of Income Tax. For any other information not in their possession that is required to comply with the request, the Comptroller of Income Tax, himself, may directly obtain the information, before transmitting all information requested to the foreign jurisdiction. These powers are provided for under section 105F(2).

Next, on the definition of "public interest", which was raised by Mdm Ho. "Public interest" under the Act covers the same grounds as "public policy" as stated in the internationally agreed Standard. The internationally agreed Standard has the concept of "public policy" or what they call in French, ordre public. It covers especially national security interests, or sensitive information held in the vital interests of the requested country. We have used the term "public interest" only so as to be consistent with our Mutual Assistance for Criminal Matters Act (MACMA), which is an existing act. "Public interest", as used in the Act, does not depart in substance from what is

Public interest, however, is unrelated to the rejection of requests that are not bona fide, or fishing expeditions. Such requests should be screened out in the first instance by the Eighth Schedule, which spells out very clearly the information that a requesting jurisdiction has to provide to IRAS when it makes its request. These requirements are intended to ensure that any request carries the necessary specificity and has clear relevance to the tax matter at hand. In addition, under section 105J(3)(a), the High Court has the power to reject unjustified requests.

Fishing expeditions can therefore be stopped at two levels – first by IRAS, then by the High Court if it relates to information protected under the Banking Act and Trust Companies Act. This arrangement offers robust safeguards without compromising on the efficiency and responsiveness of our information exchange regime. It is in essence similar to the processes in other major jurisdictions such as the US and the UK, and is not aimed at stifling the effective exchange of information.

To answer Mr Liang Eng Hwa’s query, IRAS, rather than other agencies, will determine if a request is a fishing expedition. IRAS has substantial experience in handling foreign requests and tax administration, and will be competent in making an assessment of whether a request constitutes a fishing expedition.

Mr Liang rightly points out that it is important that information shared with the requesting authority does not fall into the wrong hands. The internationally agreed Standard recognises this as a key concern

Next, the question of legal privilege that was raised by Mdm Ho. The protection of information subject to legal privilege is provided for under the internationally agreed Standard, and is spelt out in our DTAs which have legal effect under section 49 of the Income Tax Act. The Comptroller is not obliged under the DTAs to obtain or exchange information that is subject to legal privilege. There is no need to repeat this requirement in section 105J of the current Act. In addition, where a court order is served on a person, he is entitled to refuse to comply with the order insofar as he can claim legal privilege.

Mdm Ho had also asked about sections 105K(3) and 105K(4)(b). Section 105K(3) provides that a person cannot refuse to comply with a court order because he is under a duty to protect the information. It is clearly subject to section 105K(4)(a) which preserves legal professional privilege. Other than legal privilege, a person served with the Court order cannot refuse to comply with it on any other grounds. So section 105K(4)(a) ensures that if you have legal professional

The safeguards I have described are perfectly consistent with the internationally agreed Standard, which makes it clear that high Standards of transparency and exchange of information must encompass respect for taxpayers' rights.

As Mr Liang has pointed out, our treaty partners must have the administrative practices and legal mechanisms to professionally carry out the effective exchange of information according to the Standard. Exchange of information under our DTAs is premised on reciprocity. We stand ready to provide the fullest cooperation on bona fide requests, but we are obliged, just like any other country which subscribes to the Standard, to draw a clear line should a requesting jurisdiction be abusing the new provisions.

Mr Speaker, Sir, this Bill is about adhering to the principles we uphold. Trust, openness and the rule of law are the foundations upon which we have built up our financial centre, and indeed our broader economy as a whole. These principles and practices have served us well and will continue to support our efforts to further grow and develop our financial sector.

Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [ Mr Tharman Shanmugaratnam].

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

systems internationally, is a strength of the world economy. It is entirely distinct from the need for concerted action to tackle the global problem of tax evasion or financial crimes. Tax diversity is a real positive for global economic growth. However, everyone knows that the fact that countries have diverse tax systems is something which can be easily politicised, and we have already seen this happen between countries which have a long history of differences on the matter. Standard for exchange of information is being taken together with other financial hubs such as Hong Kong and Switzerland, which are taking similar steps to enhance their respective tax cooperation regimes. A level playing field will be maintained. envisaged under the internationally agreed Standard, under its public policy provision. for many countries, and has hence made the confidentiality of any exchanged information a key tenet of the Standard. This is therefore explicitly spelt out in our DTAs which incorporate the Standard. Any information received by any jurisdiction in the course of processing or making a request shall be treated as secret in the same manner as information obtained under the domestic laws of that jurisdiction, and may only be disclosed to persons or authorities concerned with the assessment and collection of, enforcement or prosecution in respect of, determination of appeals in relation to the relevant taxes. Such persons and authorities shall use the information only for such purposes. privilege, that does provide basis for not being forced to provide the information to the Court.

Order for Second Reading read.

3.45 pm

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

Sir, this Bill seeks to revise the quorum of Board meetings stipulated in the Acts of 16 statutory boards.

Let me first explain the background to these amendments.

The amendments are part of the continual effort to review and where necessary enhance governance structures and processes across the Public Sector. While statutory boards enjoy considerable operational autonomy to serve the public effectively, we have to set minimum standards for them to abide by.

In 2008, the Auditor-General's Office (AGO) had recommended that the Ministry of Finance (MOF) prescribe the quorum for Board meetings that statutory boards should specify in their Acts. MOF agrees with the Auditor-General's Office on its proposal. My Ministry has consulted Government agencies, and has decided to set a quorum requirement of "one-third of the total number of members or three members, whichever is the higher" for the Board meetings of all statutory boards.

The aim of this quorum requirement is to ensure that Board decisions are not dominated by a very small number of individuals, but are not so onerous as to hinder the effective functioning of the statutory boards.

The new provision is a minimum requirement. Statutory boards that already

Most statutory boards already comply with this new quorum requirement. This Bill amends the relevant sections of the statutes of 16 statutory boards to reflect this new quorum requirement.

Proposed amendments

The amendments can be categorised with respect to three groups of statutory boards:

First, there are 13 statutory boards whose statutes currently provide for a range in the sizes of their Boards, with a lower bound of less than 10 members. With the proposed amendments, the statutes of these statutory boards will now stipulate the quorums of Board meetings as one-third of the total number of members or three members, whichever is the higher. Just to give an example, the statute of the A*STAR or Agency for Science, Technology and Research, states that its Board size should be minimally nine, but not more than 21. It currently has 21 Board members including the Chairman. With the new provision in place, the quorum for A*STAR's Board meetings will be seven.

Second, there is one statutory board, the WDA, ie, the Singapore Workforce Development Agency whose statute currently provides for a Board size of minimally 10, but not more than 18 members. The quorum will be specified as one-third of the total number of members. As WDA currently has 17 Board members, the quorum will thus be six.

Finally, there are two statutory boards, namely, the Institute of Southeast Asian Studies (ISEAS) and the People's

Mr Speaker, Sir, this Bill recognises what has been the general practice amongst most of our statutory boards. Instituting a formal quorum requirement will enhance standards, and reflect good governance in the Public Sector as a whole.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. – [Mr Tharman Shanmugaratnam].

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

have more stringent quorum requirements may retain their existing provisions. Association (PA), whose statutes currently provide for a specific number of Board members. ISEAS's Board size is currently fixed at 22, and so its quorum will be increased from seven to eight in line with the new requirement. As for the People's Association, its statute currently stipulates a Board size of 14. With the amendment, there will be a quorum of five members.

Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 4.10 pm.

Sitting accordingly suspended

at 3.50 pm until 4.10 pm.

Sitting resumed at 4.10 pm

Order for Second Reading read.

Mr Speaker, Sir, I beg to

Sir, this Bill amends the International Arbitration Act.

These amendments are the result of a consultation process involving key industry experts, both local and foreign. The current Act incorporates the 1985 United Nations Commission on International Trade Law or UNICITRAL Model Law. We have now taken into consideration amendments made to the Model Law by UNCITRAL in 2006.

This Bill introduces three key amendments.

Court-ordered interim measures in support of foreign arbitrations

The first is to allow court-ordered interim measures in support of arbitrations conducted outside Singapore. In the case of Swift-Fortune v Magnifica Marine SA[2007] 1 SLR 629, our Court of Appeal held that our present Act only empowered the Singapore court to grant interim orders to support arbitrations held in Singapore. Similar orders cannot be granted in respect of foreign arbitrations. The new amendment gives the Court the power to do so in respect of foreign arbitrations as well.

While this amendment augments the powers of the Court in relation to arbitration, it also places appropriate restrictions on the exercise of these new powers.

It is in line with our policy of minimal curial intervention in arbitration proceedings.

The scope of the new powers is limited to interim measures in support of arbitration, for example, interim injunctions to preserve assets. They do not extend to procedural or evidential matters

Consistent with the policy of limited court intervention, the Court can exercise these new powers only when the arbitral tribunal or arbitral institution has no power to act, or is unable to act for the time being effectively.

It is envisaged that one such scenario could be where the foreign arbitral tribunal has power to make an interim order but that order cannot otherwise be enforced in Singapore apart from an application under this new section.

Other examples include: (a) a party applying to Court for relief before the arbitral tribunal has been fully or properly constituted; (b) a party applying to Court for relief against a non-party to the arbitration, which an arbitral tribunal has no power over; and (c) where the arbitral tribunal is unable to hear an urgent application for interim relief sufficiently quickly.

The amendment is also sensitive to the fact that some arbitration cases may genuinely require urgent assistance from the Court. If the case is one of urgency, the Court may make such orders to preserve evidence or assets for the arbitration. The term "assets", in line with current case law, should be read widely in this context, to include intangible assets or "choses in action", which include bank accounts, shares and financial instruments.

If the case is not one of urgency, the Court will make an order only if notice of the application has been given to the other parties and the arbitral tribunal, and

Ultimately, the Court retains its discretion in deciding whether to make an order or not. If the Court considers that the fact that the place of arbitration is outside Singapore (or likely to be so) makes it inappropriate to make such an order, the Court can refuse to do so. For example, the English High Court has held that if an applicant to a foreign arbitration was unable to show that the other party has substantial assets in England or was unable to show any link between the foreign arbitration and England, the Court could refuse to make an order.

Once the tribunal is able to act, it should be accorded primacy. Accordingly, the amendment makes clear that any order granted by the court may cease to have effect, should an arbitral tribunal subsequently make an order which expressly relates to the previous court order. This is in line with our policy of facilitating arbitration and minimising judicial intervention in the process.

Sir, this amendment will be welcomed by industry and parties to arbitrations. It ensures that our arbitration laws are progressive and will boost our efforts to promote Singapore as a leading venue for arbitration.

I should add that this is the only 2006 amendment to the 1985 Model Law which the Bill will incorporate into our International Arbitration Act. At present, the majority of industry experts consulted were against the full adoption of the 2006 Model Law. We will keep this issue under review, and may make further amendments as necessary.

Definition of an arbitration agreement

Sir, the second key amendment is to modernise the current definition of an "arbitration agreement" in Part II of the Act by expanding it to cover "electronic communications". The present Act defines an arbitration agreement by reference to physical written forms of communications, like letters, telexes, telegrams, and so on. This amendment would make it very clear that Singapore recognises that an arbitration agreement can be contained in "electronic communications" like electronic mail or electronic data interchange.

Consequential amendments are also made by the Bill to the Arbitration Act to ensure that the definition of an arbitration agreement is similarly updated.

There is, however, no corresponding amendment to the definition of "arbitration agreement" under Part III of the International Arbitration Act. Part III deals with the enforcement in Singapore of foreign awards, via an international treaty, the New York Convention on the Recognition and Enforcement of Arbitral Awards 1958. The definition of "arbitration agreement" in the New York Convention has not changed. In dealing with the New York Convention, Singapore will continue to follow the existing definition.

Authentication of "Made in Singapore" awards

Sir, the third key amendment introduced by this Bill is to allow the Minister to appoint an entity to authenticate "Made in Singapore" awards.

Currently, a party seeking to enforce an arbitral award outside Singapore under the New York Convention is required to tender before the foreign court: (i) A duly authenticated original award or a duly

The Ministry has received feedback that some parties face difficulties in enforcing their Singapore arbitration awards overseas. These difficulties have arisen because certain foreign courts require that the awards be duly authenticated before allowing the awards to be enforced.

There is currently no public body authenticating awards made in Singapore. The Bill will amend the International Arbitration Act to allow the Minister to prescribe, in rules, designated entities to authenticate, "Made in Singapore" arbitration awards for the purposes of overseas enforcement.

The authentication process is non-mandatory. It does not prevent any person from authenticating any award or arbitration agreement by any other manner.

The Bill also makes consequential amendments to our domestic Arbitration Act in order to introduce a similar system for the arbitrations governed by the Arbitration Act.

Housekeeping and consequential amendments

Finally, besides the three key amendments, the Bill includes some minor housekeeping amendments. This includes the deletion of section 32 of the International Arbitration Act. This deletion will obviate the need for the Minister to gazette States that are party to the New York Convention, or to certify that a State is a Convention country. This is no longer required since the list of Convention countries is published on the official UNCITRAL Internet website.

Sir, the amendments contained in the Bill are intended to keep our International Arbitration Act modern, effective and

Sir, I beg to move.

Question proposed.

move, "That the Bill be now read a Second time." dealing with the actual conduct of the arbitration itself – like discovery, interrogatories, or security for costs. These procedural matters fall within the province of the arbitral tribunal and must be decided by the tribunal itself. This is similar to the position taken in the UK Arbitration Act. the application has been made with the permission of the arbitral tribunal or the agreement in writing of the other parties. certified copy; and (ii) The original arbitration agreement or duly certified copy. arbitration-friendly. This will in turn help to keep Singapore at the forefront as a top international arbitration centre.

4.19 pm

Mr Speaker, Sir, thank you for allowing me to join in this debate. First, Sir, I declare my interest as a lawyer who acts as counsel in SIAC arbitration cases.

I rise in support of the Bill as I believe the amendments are part of a package of measures which will continue to ensure Singapore's continued choice as a top tier international arbitration city. Singapore is currently the top city in Asia for International Chamber of Commerce-International Court of Arbitration (ICC) arbitrations and one of the top six ICC arbitration venues in the world, which venues include New York, Paris, London, Geneva and Zurich.

With the rapid rise of big Asian economies like China and India, there is great growth in commercial activity in this part of the world. It is inevitable that the number of international arbitration cases in our region will increase dramatically as the globalisation of commercial entities continues. We are set to capture much work in this area as we are currently a top arbitration venue in Asia if not, the top. We are a highly attractive and conducive venue, thanks to our accessibility to East and West, the integrity of our public institutions, transparency, geographical proximity, availability of international legal and related expertise, infrastructure and connectivity, tight security, cost-effectiveness and a strong sense of the rule of law.

Top international arbitral institutions such as the American Arbitration Association's International Centre for

Thus, clause 2 of the Bill is timely. It amends section 2(1) to recognise the enormous changes in the way the world communicates today. Electronic communication has permeated and dominated communication in every business organisation. Re-defining "arbitration agreement" to include electronic communications such as electronic emails and data exchange is necessary and inevitable. This is also in line with Option I of Article 7 of the Model Law on International Commercial Arbitration, as amended by the United Nations Commission on International Trade Law (UNCITRAL) in 2006.

The second amendment to empower Singapore courts to grant interim orders to assist foreign arbitrations is consistent with the 2006 amendments to the 1985 Model Law and in line with the legislation of other countries such as the United Kingdom and New Zealand. Currently, a Singapore court can only grant interim orders to assist Singapore arbitrations.

Concerns have been expressed by members of the public about how the proposed new section 12A may be a disincentive for parties to park their funds here. I, on the contrary, think that as we develop into an international investment and wealth management hub for organisations and individuals, it is even more critical to have legislation that maintains transparency, cooperation and adherence

Lastly, the new section 19C will empower the Minister for Law to designate entities to authenticate, on a non-mandatory basis, 'made in Singapore' arbitration awards to facilitate the enforcement of such awards in countries that are party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (ie, the New York Convention). I support this amendment as this will certainly make it more attractive for arbitration parties to settle their disputes here as they will be able to enforce their Singapore arbitration award overseas.

Sir, to echo the Minister for Law's sentiments, the amendments in this Bill signal to the legal world that the Government is serious about ensuring that Singapore continues to be an attractive and effective hub for international arbitration.

I support the Bill.

Dispute Resolution (ICDR) and the Permanent Court of Arbitration (PCA) are already based here. Just two months ago, the World Intellectual Property Organisation (WIPO) signed an agreement to set up an arbitration centre here in 2010 to hear intellectual property-related (IP) disputes, as its Director-General, Francis Gurry, observes Asia "becoming the centre of gravity for creativity and technology". to international laws. Such provisions are important as they provide assurance and confidence to all parties and establish our reputation as a legitimate world-class financial centre, with International Arbitration services to match. I note that the Monetary Authority of Singapore, which was consulted, has no objections to these amendments which underline our commitment to attracting legitimate sources of funds. Nonetheless, the proposed new section 12A(3) provides a safeguard in giving our courts the flexibility and discretion to refuse to grant such interim orders if they consider it appropriate. I think this is a wise and cautious provision.

4.24 pm

The Bill updates the definition of "arbitration agreement" in Part II by expressly including arbitration agreements made by electronic communications.

Clause 2 amends section 2(1) by redefining "arbitration agreement" to clarify an arbitration agreement can be made by electronic communications as defined in Option I of Article 7 of the Model Law on International Commercial Arbitration, as amended by the United Nations Commission on International Trade Law (UNCITRAL) in 2006.

International arbitration is becoming more widespread. Singapore aspires to be an international arbitation hub of this region. We have the expertise but more importantly, Singapore must build up a reputation as a fair and honest place where impartiality is an accepted norm. We must also put in place our arbitration laws which recognise the irrevocability of arbitration agreements and the enforceability of awards prevails. The method of selecting arbitrators is an important aspect of the arbitration process, for arbitrators' ability and fairness are the decisive elements in arbitrations.

Mr Speaker, Sir, I would like to thank Mr de Souza and Mr Chiam for their support on the Bill.

Sir, I can pick up Mr Chiam's points first. I think there are a couple of points that Mr Chiam made. We need to build up our reputation as a fair and honest place, and that arbitrators' fairness and ability are key in any arbitration. I entirely agree, and that is what we have been working on for a very long time. And international rankings which rank both Singapore's judiciary as a top-class centre and emphasing rule of law, and specific to arbitration, that we are one of the top six destinations in the world, speak volumes for that. We are now recognised as a top centre for arbitration where rule of law is paramount, and where people can come and get a good arbitration service as a whole suite, with an excellent panel of arbitrators. And if they are not happy with them, they can choose whom they want and also they can appoint as counsel

As Mr de Souza has pointed out, these amendments are part of our larger initiative to ensure that Singapore continues to be a leading destination for international arbitration work. The power of the courts to grant relief in support of foreign arbitration may be considered as an essential element of a complete and well-ordered international arbitration regime. Such a power is also seen as consistent with the spirit of the New York Convention. It also recognises party autonomy and gives full support to the party's intention to have their dispute resolved by the forum of their choice.

Sir, ensuring that our legislative framework remains up to date is just one of the facets in our effort to develop a world-class ecosystem for arbitration.

As Mr de Souza highlighted, we are privileged to have been able to attract the American Arbitration Association's International Centre for Dispute Resolution (ICDR) and the Permanent Court of Arbitration (PCA) as well as the UN World Intellectual Property Organisation to our shores.

We are also very pleased to note that our Singapore International Arbitration Centre (SIAC) is gaining wide acceptance internationally. This March, an international blue-ribbon Board of nine members from seven different countries was appointed to helm the SIAC, adding even greater lustre to an already vibrant arbitration scene. In 2008, SIAC administered 85 new cases. As at the end of August this year, there were 72 new cases for 2009. In terms of value, the claims handled or held at the SIAC soared to almost S$1.6 billion for the year 2008 – slightly over three times that of the

With Maxwell Chambers, the world's first fully integrated arbitration facility, now set up, Singapore has become an even more desirable venue for arbitration. A number of well-known industry players have relocated to Singapore. Law firms have expanded their arbitration practices, and two sets of premier barrister chambers will locate at Maxwell Chambers, along with other international arbitral institutes.

Sir, Singapore is well poised to be a leading arbitration centre and the

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. – [Mr Shanmugam].

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

anyone from the world, and we provide the framework for that. And so it is an extremely arbitration-friendly jurisdiction which is recognised throughout the world now. S$500 million in 2007. For 2009 (as of end of August), the SIAC had already handled claims totalling close to S$700 million. These figures do not include arbitrations administered by other arbitral institutions, such as the ICC-ICA, and other ad hoc arbitrations where Singapore is the neutral and popular venue of choice. proposed amendments will ensure that our regime will continue to be on par with that of other leading international arbitral jurisdictions.

Resolved,

"That Parliament do now adjourn to a date to be fixed." – [Dr Ng Eng Hen].

Adjourned accordingly at

Twenty-sevenminutes to Five o'clock pm

to a date to be fixed.

WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 3.00 PM

asked the Minister for Education (a) what action is the Ministry taking to prevent school children from being lured into working as runners for loan sharks; and (b) how many students have been caught for such activities in the past 12 months.

Police data indicate that from 1st October 2008 to 30th September 2009, 136 youths were arrested for loanshark and related harassment activities, of which almost half were students.

Ultimately, parents are primary caregivers of their children. They must take responsibility to monitor the after-school activities of their children and know who their children are interacting with so as to provide timely guidance to their children.

The reasons for school children being lured into working for such activities are complex. Even as we reiterate the responsibility of parents to mould their children’s character, schools can play a complementary reinforcing role in this respect. Schools raise awareness of their students to illegal activities through the formal curriculum and a variety of character development and life-skills programmes in order to teach them to discern right from wrong. The actions taken by schools include counselling and support, and as a last resort, disciplinary actions.

Schools also engage the parents and community to work in partnership in nurturing our young holistically. Schools have adopted a variety of strategies to facilitate communication with parents and keep them informed about the needs of their children.

Schools also collaborate with relevant agencies or authorities to guide students back on the right track. For example, MOE works with the Police to raise awareness at the school level through roadshows in schools and the provision of advisories.

asked the Prime Minister in mapping out future plans for an integrated holistic approach of service delivery to promote active ageing and general well-being of older persons, whether there will be an apex body to facilitate coordination between the various Ministries as elder care issues cut across several Ministries covering health, finance, accessibility, housing, employment etc.

asked the Prime Minister in view of the ageing population (a) what are the long term plans to promote active ageing; and (b) what are the principles that will be used in considering measures to address the problem of the vulnerable and frail elderly in the community.

Let me take the Member's second question first. The Government recognises that addressing ageing issues requires a Whole-of-Government approach. As the Member says, some issues cut across several Ministries. Two years ago, the Ministerial Committee on Ageing, which I chair, was established to facilitate inter-agency coordination and collaboration on ageing issues. The committee is pursuing the four strategic thrusts of enhancing employability and financial security, enabling ageing-in-place, providing holistic and affordable healthcare and eldercare, and promoting active ageing. This arrangement has served us well so far. So there are no plans for a separate apex body.

Let me now address the Member's other question. We have started work to prepare for an ageing population. Our aim is to enable our elderly to remain active, independent, financially secured and productively engaged with the wider community. In doing so, we ensure that Singapore remains a vibrant and dynamic society, and a good home for our young and old.

We are building on the work accomplished in recent years. The Council for Third Age was set up two years ago to champion active ageing. With the support of MCYS, it has re-branded the annual Senior Citizens' Week to the Active Ageing Festival. The Council also administers the Ministry's Golden Opportunities (GO!) Fund, which has seed-funded over 40 community projects with an outreach of 50,000 seniors. It has worked with tripartite partners to identify model employers of older workers. In the coming months, the Council will be focusing on inter-generational bonds in the family, community and the workplace.

Employment, financial security and ageing-in-place are essential to active ageing. We are promoting re-employment and expanding our continuous education and training framework for seniors. We are also enhancing financial security through CPF LIFE, the 3Ms framework and studying how to help citizens finance their long-term care needs. Members would be aware of ongoing efforts to make our housing estates, public transport and living environment barrier-free.

The Government will expand efforts to promote active ageing. One specific initiative is the Wellness Programme, which has been piloted in 12 constituencies and has benefited more than 8,000 seniors through health screenings and other activities. The People's Association will implement the Wellness Programme in partnership with grassroots leaders and leveraging on existing facilities such as our community clubs and RC centres. Those health-screened and found to be at-risk would be asked to follow up with their family doctors. Those who are sedentary will be invited to join physical activities such as brisk-walking and taichi. Those who are not in social groups will be encouraged to join one. We plan to implement the programme in another 24 constituencies next year.

Active ageing is ultimately a matter of personal responsibility. As friends, peers, family members and leaders in our community, we all need to support active ageing as a ground-up movement. The Wellness Programme is a platform, but it needs the commitment of advisors, grassroots leaders and community partners to reach out to more residents and to achieve our desired results.

As our population ages, more elderly Singaporeans will need care in the coming years. The Centre for Enabled Living has been set up to strengthen community care and to better

Our aim is to minimise the number of elderly who become vulnerable and needy. Thus we help people to acquire skills to stay employed for as long as they can and save for their retirement years. We help them to maintain good physical, mental and social wellbeing. And we help them to save for their healthcare and for their long-term care, if needed. The principle is self-reliance.

However, there will be some elderly who become vulnerable and needy. ComCare provides the social safety net under our "Many Helping Hands" approach. The Government will reinforce the principle of family as the first line of care and support for our elderly. We will help families to fulfil this responsibility through our various policies.

All these efforts will require investment from Government, and we are committed to doing so. Most of our elderly can and should be active, independent and socially engaged. Those who need care and their caregivers will be provided appropriate, accessible and affordable services. Those who are needy and vulnerable will be provided adequate assistance and help. With the support of all Members of the House, we are optimistic that this vision can be achieved.

support our caregivers. The Centre will provide appropriate advice and referral that fit the needs of the care recipient and their family. It will expand training for caregivers and foreign domestic workers and promote schemes to help offset the cost of care. The Centre will also work closely with other agencies so that care is better coordinated across different services. At the policy level, MOH, MCYS, MND and other relevant agencies meet regularly to study the care and housing needs of an ageing population and to develop the network of community-based services.

asked the Minister for Transport why the Preferential Additional Registration Fee and Certificate of Entitlement rebates are not granted to owners of vehicles that are reported lost in situations of a criminal breach of trust.

To be eligible for Preferential Additional Registration Fee (PARF) and Certificate of Entitlement (COE) rebates, the owner of a vehicle has to de-register his or her vehicle and dispose of it through scrap or permanent export. LTA will grant the PARF and COE rebates to the owner upon submission of satisfactory disposal documents for the vehicle, to ensure that the vehicle is permanently taken off Singapore roads.

LTA will similarly grant the PARF and COE rebates to the owner of vehicles lost through a criminal breach of trust (CBT). The law was changed to allow this in 2004 and, hence, only applies to vehicles that have been lost on or after 1 January 2005, and reported to the Police. To claim for the PARF and COE rebates of such vehicles, owners have to wait for three years from the date when the loss was first reported to the Police. This is to prevent abuse or fraudulent requests.

asked the Minister for Transport (a) if he will provide an update on the Park and Ride Scheme; and (b) what are the Ministry's plans, if any, to improve the Scheme to attract more motorists.

The use of the Park and Ride Scheme is something that we encourage for drivers to make use of public transport in their daily commute.

The scheme is currently administered by TransitLink. LTA has worked with TransitLink to review the scheme and has taken note of the suggestions that have been put forth on how the scheme can be improved.

There are at present 36 Park and Ride car parks across the island. The take-up rate at each of these car parks is not the same. Some are more popular with motorists and are fully utilised, while others are less than half-filled.

First, for the popular Park and Ride car parks, LTA is working with HDB to try to increase the number of Park and Ride lots, or in some cases, identify new Park and Ride car parks in the vicinity. However, we will have to be mindful of the car parking needs of residents and visitors as well, and balance their interests against the needs of Park and Ride users.

Second, LTA will step up the publicity for the less popular Park and Ride car parks. We have found that some under-utilised car parks are quite close to MRT stations. LTA will step up the publicity for these car parks, to encourage more motorists to consider the Park and Ride Scheme at these locations.

Third, LTA will work with TransitLink to make it more convenient for Park and Ride users to obtain their monthly Park and Ride sets. Today, users can purchase their Park and Ride sets at any TransitLink ticket office. However, queues do form outside some of the more popular ones, such as those at Ang Mo Kio, Raffles Place, Clementi, Tampines MRT stations and Boon Lay Bus Interchange. While TransitLink already sets up an additional counter at these locations when the sets go on sale, LTA will work with TransitLink to explore ways, such as through electronic on-line channels, to make it more convenient for users to obtain their Park and Ride sets. LTA will also look at giving regular users greater priority to buy Park and Ride sets.

Mr Speaker Sir, these measures will help to make the Park and Ride Scheme more convenient for motorists. LTA is still working on the details of these proposals and will announce them in early 2010.

asked the Minister for the Environment and Water Resources (a) whether the Government has set aside sufficient industrial zones specifically for the recycling industry to support our sustainable development initiatives; and (b) whether his Ministry will provide affordable land and other incentives to encourage local enterprises to upgrade their capability and play a greater role in these industrial zones.

The Government set aside land specifically for the recycling industry since 1995 when the Sarimbun Recycling Park (SRP) was set up in the closed Lim Chu Kang Dumping Ground. The SRP is now fully leased out to 13 companies recycling waste items such as wood waste, horticultural waste, construction waste, demolition waste and used tyres. SRP land were initially allocated to recycling companies at rental rate determined by the Chief Valuer. Since November 2008, the land allocation procedure for SRP was changed to a tender system and the rental rate is determined via open market tender. In addition to SRP, companies can apply to JTC for industrial land to set up recycling facilities. Currently, recycling companies are located in various industrial estates such as Tuas, Jurong and Kranji.

Apart from land, NEA also provides funding to incentivise and develop the waste management and recycling industry in Singapore. NEA has set up various funding schemes to support the development of innovative and cost-effective waste management and recycling technologies as well as facilitate the deployment of pilot projects. These schemes include the Environment Technology Research Programme, the Innovation for Environment Sustainability Fund and the 3R Fund.

asked the Minister for Trade and Industry for major international competitions like the Miss World beauty pageant where contestants represent their respective countries, whether greater supervision and regulation of the local organisers responsible for selecting the winner-representative for Singapore is necessary in order to protect the brand name of our country.

Beauty pageants are run as businesses. The Miss Singapore World pageant for example, is a franchise of the Miss World Limited. Such events are essentially funded by sponsorships. An event that is badly run or whose prestige is affected will have difficulties securing sponsorship.

One example is the 2008 Miss Singapore Universe. It received many brickbats for the Merlion-inspired dress. The negative feedback resulted in a number of sponsors withdrawing from the pageant. ERM World Marketing, the organiser for this year’s Miss

The Government, of course, cares about Singapore's branding. And events where there is international exposure can add or subtract from this branding. But how the world perceives us is not determined by a beauty contest representative. Instead international opinion is shaped over time, as a result of events of significance, by what we do as a country.

Singapore World pageant, has reportedly faced similar negative reactions from its sponsors following a string of incidents related to its initial pageant winner. With the market discipline imposed by sponsors, there is no need for the Government to regulate such pageant.

asked the Minister for Community Development, Youth and Sports (a) whether his Ministry plays a part in governing the hiring process of foreign coaches at the national sporting level; (b) if so, what processes are in place to safeguard such coaches from being dismissed by national sports associations shortly after arrival and athletes from being affected by their new coach's dismissal; and (c) if not, what are the considerations for not stepping in to govern this process.

The National Sports Associations (NSAs) are independent people sector organisations. They are governed by their respective constitutions and managed by properly constituted management committees. The selection and hiring of coaches for national athletes are the responsibility of NSAs, based on their human resource policy and the internal processes. Therefore, my Ministry is not involved in the selection and hiring of coaches by NSAs, irrespective of their nationality.

However, the Singapore Sports Council provides NSAs with two Best Practice Guides – the NSA Human Resource guidelines and the Coaching Programmes Handbook, to facilitate the recruitment process. In instances where NSAs request for advice, SSC will provide the necessary guidance throughout the hiring process. In addition, for key NSA staff positions that are directly funded by SSC, such as technical directors and head coaches, a SSC management staff member will sit on the evaluation panel to assist the NSAs.

The relationship between NSAs and their coaches is no different from any other employer / employee relationship. The specific terms of employment and dismissal are laid out in the employment contracts, which need to comply with general employment laws in Singapore. A coach who feels he or she has been unfairly treated can seek clarification from the respective management of the NSAs or turn to external mechanisms including the Alternative Dispute Resolution for Sports for mediation and arbitration.

In the event that a coach is dismissed before his or her contract has expired, it is the responsibility of the NSA to ensure that the athletes' training does not get disrupted. SSC will work with the NSA to hire a new coach, or find a part-time replacement coach in the interim, to ensure the continuity of the athletes' training and competition schedule.

asked the Minister for Transport (a) what action has been taken against cyclists who pose a danger to pedestrians; (b) what are the penalties imposed on these cyclists; and (c) whether his Ministry will consider licensing all motorised bicycles with motors below 200 watts.

The Traffic Police has been taking enforcement action against cyclists who pose a danger to pedestrians. Summonses have been issued to those who commit offences under the Road Traffic Act, or breach any rule under the Road Traffic (Bicycles) Rules. Action has been taken against errant cyclists violating cycling rules, most of whom were taken to task for failing to ride in an orderly manner, and riding on the footways of roads.

The penalties imposed depend on the circumstances of each case. For instance, under Section 279 of the Penal Code, a cyclist who rides in a rash or negligent manner that could cause hurt to, or endanger the life of, any other person, may be imprisoned for up to one year, fined up to $5,000, or both. However, these situations are rare. In circumstances where cycling rules are breached, a composition fine of $20 would be meted out against the errant cyclist.

Currently, LTA exempts low-powered models of motorised bicycles from registration as they have similar construction and performance characteristics as conventional pedal bicycles. They are restricted to 200 watts or less, are powered by an electric source, and their electric motor must cut off when the bicycle reaches a speed of 25km/h or when the rider stops pedalling. This is comparable to the average speed of a moderately fit adult pedalling a conventional bicycle on level ground. Hence, like conventional bicycles, there is no need for them to be registered for use on public roads.

asked the Minister for National Development if he will clarify the reason why HDB allows the sale of recess area and common corridor space to some flat owners and not to others living in the same block of flats but who applied to purchase the areas later.

Under the Sale of Recess Area Scheme, flat owners can buy the space fronting their flat, provided certain conditions are met. HDB reviews these conditions regularly to ensure that other residents are not affected or inconvenienced by such sale.

In August 1995, the sale of recess area to flats next to corner units was ceased to minimise potential disputes between next-door neighbours. In September 1997, HDB discontinued the sale of recess area for certain point blocks, as there was feedback that other residents were being inconvenienced by the reduced corridor space. The last review was in April 2001, when the technical criteria were tightened to take into account the requirements of the Fire Safety Code.

HDB will continue to review the conditions for sale of recess area on a regular basis. This is to protect the wider interests of residents while giving some flat owners the option of purchasing the recess area where feasible.

asked the Minister for Community Development, Youth and Sports (a) what recent studies have been done on the day-to-day living conditions of the aged, especially those in destitute; (b) what are some of the difficulties they face daily and whether the Public Assistance Scheme addresses the majority of it; (c) what other plans are there besides encouraging procreation or increasing the labour force to prevent the decline of the old-age support ratio; and (d) what other financial assistance programmes are there to help such elderly destitute families.

The needs of our elderly poor are multi-faceted and broadly fall into one or more of the three categories – financial means; affordable and accessible health and long-term care; and opportunities to be active and socially engaged. MCYS is committed to ensuring that the elderly poor are supported in all these areas, along the principles of self-responsibility, family as first line of care and support, and a Many Helping Hands Approach. I will elaborate on each of these areas.

First, there are various ComCare schemes to help needy elderly financially. For example, the Public Assistance (PA) scheme provides an allowance for their basic living needs. PA recipients also receive free medical care, and are eligible for highly subsidised rental flats. Elderly who do not qualify for Public Assistance may receive support from the other ComCare schemes, such as the ComCare Transitions schemes. In addition, the Community Development Councils, voluntary welfare organisations and charities can provide further assistance customised to the specific needs of the individual. For those who are not able to cope in the community even with financial assistance, they can be admitted to the destitute homes. We are also reviewing the Maintenance for Parents Act, to reinforce the importance of filial piety in our society. The Commissioner for the Maintenance of Parents will be more active in assisting the elderly poor to resolve maintenance and other relevant issues in a holistic way.

Second, the Government is committed to developing a healthcare system which is relevant to our ageing demography. This includes developing more step-down care services, including community hospitals, nursing homes and day care centres. In September 2009, the Centre for Enabled Living was launched to help the elderly and their caregivers obtain relevant information and services, such as home-based care. Elderly poor will be assisted in paying for healthcare costs through a means-test subsidy framework and Medifund.

Third, we will provide more opportunities for active ageing. The elderly poor are at higher risk of social isolation, especially if they are living alone, divorced or widowed, or in poor health. We estimate that around 30,000 elderly are at risk of social isolation. Befriending and counselling services are available to outreach to the socially isolated. The Government has also outlined plans for a Wellness Programme to be rolled out over the next few years, to promote better health, physical activity and socialisation among older residents.

To improve the living conditions of the elderly living in rental flats, HDB has upgraded the one-room rental blocks with high number of elderly households under Project LIFE(1). For example, these flats are fitted with elderly-friendly fittings and an alert alarm system. There are currently 19 Seniors Activity Centres at the void decks of the rental blocks. These are run by our Voluntary Welfare Organisations. MCYS will be building 23 more Seniors Activity Centres for elderly residents living at HDB rental flats over the next five years. The Seniors Activity Centres provide support, information and referrals and social activities to help our seniors age-in-place.

Officers at our Community Development Councils are also well placed to help elderly poor with assistance in all these three areas. They take a holistic approach in delivering assistance, and will look beyond the immediate problem to understand the underlying issues. They will also link up the elderly with other agencies where necessary for assistance. For example, apart from assisting PA recipients with a monthly cash allowance, the CDCs could refer them to organisations like the Lions Befrienders for befriending services. For those who have difficulties preparing their own meals, the CDCs would link them up to organizations such as TOUCH Community Services and Thye Hua Kwan Moral Society for free meals or food rations.

It will be difficult for Singapore to reverse the trend of a declining old-age dependency ratio. We would have successfully prepared for population ageing if Singaporeans are financially self-sufficient, independent and have a strong network of family and social support. Recent measures to enhance the financial security of the old include measures to help people work longer, the HDB Lease Buyback Scheme and CPF LIFE. The Ministerial Committee on Ageing will continue to monitor and introduce measures as needed so that our elderly can age in dignity and with grace.

Project LIFE – Life Improvement and Facilities Enhancement for the elderly

asked the Minister for Community Development, Youth and Sports (a) in the last five years, what is the number of locally registered marriages between Singaporean grooms and foreign brides as a result of matchmaking services; (b) what is the incidence of divorce for these marriages; and (c) what is the resilience of such marriages given that there is often a cultural and language barrier involved in such marital unions.

Last year, there were 24,596 marriages of which a third (8,136) were between Singapore citizens (SC) and non-citizens in 2008. Of these, 6,360 marriages in 2008 were between Singaporean grooms and non-citizen brides. This was an increase from 5,414 in 2004. We are however unable to ascertain how many of such marriages were match-made.

In 2008, there were 746 Singaporean men who divorced their foreign spouses. Divorces between SC grooms and non-SC brides represented 11% of all divorces (2). The divorce rate of transnational marriages involving citizen grooms and non-citizen brides is not significantly different from other marriages. Looking at cohort data, 4% of marriages

We recognise that cultural differences and linguistic barriers are a challenge in any marriage. My Ministry has worked with partners, including the Marriage Central, to provide marriage preparation and enrichment programmes to all couples. We are also looking into formulating programmes tailored for Singaporean-Foreigner marriages. Marriage counsellors and educators conducting such programmes could be equipped with the skills to address cross-cultural issues.

Computed by Department of Statistics, 2009.

contracted in 2004 between a SC groom and a non-SC bride ended five years later, compared to 6% of all marriages contracted in 2004. For the 1994 marriage cohort, 3% for marriages between a SC groom and a non-SC bride ended in divorce after five years, while the figure for all marriages contracted in 1994 was 4%.

asked the Minister for Community Development, Youth and Sports whether his Ministry has plans to actively pursue sponsors from the private sector for the sporting fraternity and why such sponsors have not been actively pursued in the past.

My Ministry and the Singapore Sports Council (SSC) support efforts to engage the private sector as sponsors for sporting initiatives. SSC has put in place platforms such as the annual CEO Networking Session to actively promote the opportunities presented by sports to the private sector. I have attended these sessions and have seen for myself a growing interest and readiness from the private sector to invest in sports. This is evident from the corporate sponsorships garnered for sports events such as the Standard Chartered Singapore Marathon, OCBC Cycle Singapore and next year's Youth Olympic Games (YOG). Also, the number of blue-chip sponsors for SSC-funded events increased from 26 in financial year 2006 to 53 in financial year 2008.

Both SSC and the Singapore Youth Olympic Games Organising Committee will continue to engage the private sector to explore partnership opportunities. I am pleased to note that local companies such as DBS, Deloitte Singapore, Changi Exhibition Centre, Fairmont Singapore and Crocodile International have come onboard as sponsors for YOG. I hope many others will follow suit. I would also urge the National Sports Associations (NSAs) and the sporting fraternity to actively present your value proposition and interest the private sector to support your cause.

asked the Deputy Prime Minister and Minister for Home Affairs (a) how many cyclists have been booked for traffic offences over the past 12 months; (b) what are the common offences; and (c) what is the rule for vehicular traffic when cyclists ride their bicycles across pedestrian crossings.

One thousand, three hundread and twelve summonses were issued to errant cyclists for cycling offences between July 2008 and June 2009. Of these, the largest number of 615 summonses were issued to cyclists for cycling on the footways of roads. Other common infringements include failing to ride in an orderly manner such as not keeping a proper lookout and not giving way to traffic with the right of way, riding on expressways and riding against the flow of traffic.

Cyclists are not prohibited from riding across pedestrian crossings but must do so in a safe and orderly manner. Those who do not and cause danger to others commit an offence under Rule 10 of the Road Traffic (Bicycles) Rules and are liable to pay a composition fine. If they ride in a rash or negligent manner that endangers life, or in a manner that is likely to cause hurt or injury to others, they can be prosecuted under Section 279 of the Penal Code. If convicted, they can be fined up to $5,000 or imprisoned up to one year, or both.

When approaching pedestrian crossings, a driver is required to keep a proper lookout for other road users, slow down and proceed at such a speed which will enable him to stop his vehicle before reaching the crossing. Failure to do so may result in the driver being liable for a fine of up to $1,000, or imprisonment for a term of up to three months under Section 131 of the Road Traffic Act.

asked the Minister for the Environment and Water Resources (a) what is the number and amount of ex-gratia payments made to the first-generation stallholders who have been affected by the Hawker Centres Upgrading Programme since its inception; (b) what is the rationale for not according the next-of-kin who took over the stall after July 1992 the same treatment as first-generation stallholders; (c) whether his Ministry and NEA have been flexible in handling cases where the stallholders are the elderly spouse of the deceased first-generation stallholders; and (d) what is the number of disputes since the programme was introduced.

In 1989, the Government decided to offer ex-gratia cash grants to stallholders located in centres affected by HDB's redevelopment programme as a gesture of goodwill. Apart from the first-generation stallholders who were resettled from the streets, the cash grant was also extended to family members who took over the stall tenancy from these stallholders.

In July 1992, the Government decided to limit the ex-gratia cash grant to only first-generation stallholders. This was to ensure that those who take over the stall tenancies from the first-generation stallholders are genuinely interested in carrying on with the business and not seeking to benefit from the cash grant eventually. These stallholders continue to enjoy subsidised rent.

This policy has been applied consistently to all cases, regardless of the age of the stallholders involved so as to be fair to all stallholders. Those taking over stalls from first-generation stallholders are also informed of this policy before they take over.

When the Hawker Centres Upgrading Programme (HUP) was introduced in 2001, the Government decided to offer first-generation stallholders, who prefer to exit the trade rather than continue at a stall in an alternative centre, the ex-gratia cash grant, even though HUP does not involve the clearance of stallholders. To date, some 2,000 eligible stallholders were paid a total of $40 million in ex-gratia cash grant.

asked the Minister for Health given the recent move to increase subsidies and allow Medisave to be used for palliative care (a) how much money does the Ministry foresee being used for this in the future and how does Singapore compare with the rest of the world in our use of palliative care; and (b) what is the increase in health care spending as a percentage of GDP that the Ministry foresees as population ages.

The recent announcement pertains to the use of Medisave for home palliative care from next year. Medisave can already be used for inpatient hospice care.

Last year, about 5,100 patients received hospice and palliative care services, of which about 4,000 were cared for at home. The services are funded largely through Government subsidy and Medisave withdrawals. For the low income patients, my Ministry subsidises up to 75% of the cost.

Last year, Government subsidy exceeded $5 million while Medisave withdrawals were about $1.5 million. With greater awareness of palliative care and its promotion by my Ministry, we can expect these figures to rise in tandem with the rise in demand as the population ages further.

More than 90% of our current palliative care patients are cancer patients. Among the cancer patients, about 70% receive palliative care. This utilisation rate is comparable to that in the UK and Australia. However, our utilisation of palliative care among the patients with non-cancer terminal illnesses, such as end-stage organ failure, remains low. There is scope to develop this sector further.

Currently, health spending amounted to about 4% of our GDP. All over the world, health spending has been growing faster than GDP. Singapore is no exception. One contributing factor is the ageing of the population. There are various projections on the

future rate of growth, based on different assumptions. However, simply putting in more money will not solve the healthcare challenges. More money does not automatically translate into a better health outcome. While we will continue to invest in healthcare and spend more than now, we must also press on with efficiency and productivity drive on the supply side, and on the demand side, to get Singaporeans to embrace a healthy lifestyle from young.

asked the Minister for Education (a) what is the percentage and number of permanent residents who gained entry at each phase of the Primary One Registration Exercise in the last three years; and (b) whether there is a need to revise the criteria so that Singapore citizens will be given higher priority at each registration phase for the schools of choice.

Permanent Residents (PRs) comprised about 13% of the children admitted during the 2009 Primary One (P1) Registration Exercise. This is similar to the proportion of PRs in Singapore’s resident population. The majority of PRs were registered at or after Phase 2C, which is for children with no existing ties to the school.

MOE regularly reviews the P1 Registration Exercise framework to ensure that all Singaporean children continue to have access to a primary school near their home. The enrolment of PRs adds diversity to our schools and there is educational value for Singaporean children to be exposed to children from different cultures from a young age. Singapore citizens enjoy privileges within the education system that PRs and international students do not. For instance, only Singapore citizens are eligible for Edusave Accounts, Edusave scholarships and awards, Post Secondary Education Accounts, Government top-ups, and other forms of Government financial assistance such as the MOE Financial Assistance Scheme, the Independent School Bursary and Short-term Study Assistance Scheme. PRs currently pay 20% more in school fees than Singapore citizens. MOE revises school fees for PRs and international students from time to time, to reflect larger subsidies for SCs.

asked the Minister for Community Development, Youth and Sports if he can give an update on the public-private-partnership model upon which the Sports Hub is based and what is the state of progress and timeline for the completion of the Sports Hub.

The Sports Hub Public-Private Partnership arrangement is one where the preferred bidder, Singapore Sports Hub Consortium (SSHC), will design, build and operate the entire

The Government remains committed to the project. Our discussions with SSHC are ongoing and progressing well. With the stabilisation of construction prices and the gradual improvement in credit availability, we expect the project to get back on track in the coming months. The Consortium will be launching a financing competition to raise bank financing for the project in early November and is targeting to get the contract signed or what is known in the industry as financial close, by the first half of 2010. The Consortium can then start construction thereafter. On this schedule, the project construction completion date is estimated as end 2013 or early 2014.

project over a period of 25 years. The Consortium puts in equity and would tap on bank debt financing to build the facilities. After the facilities have been built, the Government would pay the Consortium a certain sum every year for delivering and operating the facilities. These payments would enable the Consortium to re-pay the debt they have taken. The Consortium will hand the entire facilities back to Government at the end of the 25 year contract period. External events in the past two years, such as the steep rise in building materials and construction costs, and the global financial crisis, have delayed the conclusion of our contract negotiation with SSHC. With the financial crisis, SSHC had difficulties raising the required debt from the market. It would not have been prudent for the Government to proceed to finalise the terms of the project while construction costs or interest rates were very high. We would have ended up paying a lot more than necessary for the project.

asked the Minister for Community Development, Youth and Sports (a) how does the Ministry assess if a parent or guardian is unable or unfit to exercise supervision over a child so as to warrant the Ministry applying for a child protection order under the Children and Young Persons Act; and (b) whether and how the Ministry will alter its practices in handling such cases to ensure due process and fairness.

The Children and Young Persons Act (CYPA) provides the legal framework for the protection of a child or young person up to the age of 16 years. An application can be made to the Juvenile Court for a Care and Protection Order when there are serious concerns over the safety and welfare of the child and the family is unable to safeguard the child's interest.

When a case of alleged child abuse or neglect is reported, the Child Protection Service (CPS) will conduct an enquiry into the allegations of abuse and ascertain if the child is in imminent danger. Information on the risk factors impacting the child, the child's developmental needs and the parents' ability to meet the child's needs will be obtained.

Child abuse is a complex phenomenon and includes physical abuse, psychological abuse, sexual abuse and neglect. The risk of harm to the child is evident if parents have inflicted serious injuries on the child, sexually abused the child or physically and psychologically neglected the child. The risk of harm to the child is assessed to be high if despite intervention, parents continue to have unrealistic expectations, lack insight into the

A multi-disciplinary approach is taken in assessing and making decisions on child abuse cases. The findings of each case are deliberated by the Child Abuse Protection Team which comprises senior child protection officers, social workers, police officers, pediatricians, school counsellors, psychologists and other professionals with knowledge of the case. The findings and recommendations of the team will be presented to the Juvenile Court. The Court will make the final decision and judgment on the case.

The CPS adopts a partnership approach in working with parents to protect the child’s safety and well-being. Before applying for a Child and Protection Order, CPS will discuss and work with parents to address the concerns and provide them the necessary support and assistance. The involvement of parents is critical as they are the main care provider for the child. However, in situations where parents are unwilling to discuss the concerns and persistently deny the risk of harm to the child, CPS will then proceed to apply for a Care and Protection Order and seek the Court's direction on the case plan.

In making an application for a Care and Protection Order, CPS will prepare a case summary to the Court which includes information on the background of the case, an assessment of the risks to the child and recommendations on appropriate care arrangements. The Court will inform the parents of the concerns raised in the case summary. The parents (and any relevant parties) will then have an opportunity to respond to the specific issues raised.

MCYS takes child abuse very seriously and every effort would be made to involve parents in making decisions on the children's care. However, the best interest of the child is still paramount in MCYS' work in child protection. There will be occasions where a child may request not to share certain information with their parents.

In the light of the recommendation by Justice V K Rajah, CPS will henceforth provide the case summary to the parents prior to the hearing unless the child specifically request not to share certain information with their parents, in which case we will let the Court decide what information is to be shared with the parents.

child's needs and are not willing to take steps to enhance the child's well-being. In some situations, parents could be suffering from psychopathological problems that render them unable to fulfil their parental roles. In such cases, immediate action will be taken to protect the child's safety.

asked the Minister for Transport (a) if he will give a progress update on the Circle Line and when each stage of the Line will be completed; (b) when will the Ministry announce the date when each stage will complete above-ground works such that the road traffic in affected areas will return to normalcy; and (c) when will the Farrer and Buona Vista stations be operational and the above-ground works for these stations be completed.

Circle Line Stages 1 and 2, from Dhoby Ghaut to Bartley stations, will commence operations in the first half of 2010. The remaining section of the Circle Line, Stages 4 and 5 from Marymount to Harbourfront stations, will open in 2011. This section includes the

The above-ground works for Circle Line Stages 1 and 2 will be completed by end-2009. This means that all entrances will be completed and the roads re-aligned and restored back to their original state. I know that motorists and other members of the local community have patiently endured the road diversions and inconvenience created by the construction works, especially around the Paya Lebar area. They will not have to wait much longer.

For Circle Line Stages 4 and 5, Marymount to Harbourfront stations, their above-ground works will be completed by end-2010. Again, I understand that the construction has caused some inconvenience, particularly along Farrer Road. Let me assure the Member that LTA will re-align and restore Farrer Road to how it was, by the end of next year. In the meantime, we appreciate the support and understanding of all the affected parties. When the full Circle Line is completed, the public will enjoy the benefits of the added convenience and connectivity of the new MRT line.

Farrer and Buona Vista stations. The Circle Line Extension, which comprises Bayfront and Marina Bay stations, will be opened in 2012.

asked the Minister for Transport (a) how many incidents were there of passengers falling onto MRT tracks, whether accidentally or intentionally, in the past 12 months; and (b) whether his Ministry will require the MRT operators to deploy more officers at open platform MRT stations to guide commuters and ensure their safety during peak operating hours.

Between 1st October 2008 and 30th September 2009, there were 25 track intrusions by passengers on our MRT system. Of these, 15 cases involved passengers retrieving dropped items, or taking shortcuts across the middle track at interchange stations. The remaining 10 cases involved passengers accidentally falling onto the tracks.

SMRT already has put in place a comprehensive set of measures to ensure passenger safety. Recorded voice messages are broadcast regularly at station platforms reminding passengers not to stand beyond the yellow line or rush to catch a departing train. During peak hours, SMRT officers are deployed to patrol the station platforms and to advise passengers to stand behind the yellow line while waiting for their trains to arrive. The number of officers deployed for such patrols depends on station patronage, with more deployed at the busier stations. Moreover, train drivers are trained to keep a lookout for dangerous situations when their trains enter the station and will sound the horn or apply the emergency brakes whenever necessary.

To further enhance commuter safety, the Land Transport Authority will be completing the installation of half height platform screen doors at all the 36 elevated MRT stations along the North-South and East-West Lines by 2012. Work on the three pilot stations, namely Pasir Ris, Yishun and Jurong East MRT stations, are scheduled for completion by the end of this year.

Safety is a shared responsibility, and passengers are urged to take care of their personal safety by observing safety instructions, standing behind the yellow line, and seeking assistance from the MRT station officers if they feel unwell or if they need to retrieve any item that has fallen onto the tracks.

asked the Minister for Manpower what is the Ministry's policy on job advertisements which expressly indicate a preference for foreigners to fill posts.

Employers should select candidates based on merit and not on extraneous factors, such as age, race, gender, nationality, religion, or marital status.

By and large, this has been the case, although from time to time, cases of discriminatory job advertisements have cropped up. To raise awareness and promote fair employment practices, the tripartite partners set up the Tripartite Alliance for Fair Employment Practices (TAFEP).

The tripartite partners have also formulated Guidelines on Fair Employment Practices. For job advertisements, the Guidelines specify that only job-relevant requirements should be included. If specific attributes are necessary, the reasons should be explained.

MOM and TAFEP monitor job advertisements, and where inappropriate advertisements are spotted, appropriate action is taken. In most cases, the employers concerned acknowledge the error and rectify the problem. TAFEP also takes the opportunity to strengthen employers' awareness of fair employment issues. For example, a Singapore-based electronics company recently posted an advertisement on an Internet job board on 19th September 2009, indicating a preference for foreign nationals. This is not in line with the Tripartite Guidelines on Fair Employment Practices. The online site, upon detecting the advertisement, removed it promptly. MOM issued the company a warning on 5th October 2009. TAFEP has also contacted the company after the incident and advised them to adopt the Tripartite Guidelines. The company has apologised online over the incident and clarified that they had no intention of discriminating against hiring Singaporeans. In fact, the company disclosed that more than 80% of its employees were Singaporeans.

Companies should adopt fair employment practices including non-discriminatory job advertisements. Members of the public can bring to MOM's and TAFEP's attention of any discriminatory job advertisement so that they could be addressed.