Hansard, 2009-11-23

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 (2009/2010) To (2009/2010) Mr Chan Soo Sen 21 Oct 24 Oct 15 Nov 28 Nov Mr Zainudin Nordin 21 Oct 01 Nov 13 Nov 13 Nov 15 Nov 16 Nov 13 Dec 19 Dec Dr Lee Boon Yang 24 Oct 30 Oct 26 Nov 03 Dec Mr Goh Chok Tong 26 Oct 30 Oct 23 Nov 26 Nov Mr Inderjit Singh 27 Oct 28 Oct 17 Nov 22 Nov 09 Dec 23 Dec RAdm [NS] Lui Tuck Yew 27 Oct 31 Oct Mr S Iswaran 27 Oct 30 Oct 07 Dec 18 Dec Dr Teo Ho Pin 27 Oct 30 Oct 01 Nov 04 Nov 25 Nov 01 Dec 13 Dec 26 Dec Mr Charles Chong 28 Oct 31 Oct 08 Nov 11 Nov 26 Nov 28 Nov Assoc. Prof. Dr Yaacob Ibrahim 30 Oct 01 Nov 07 Nov 08 Nov 15 Nov 18 Nov 23 Nov 01 Dec Mr Masagos Zulkifli B M M 31 Oct 01 Nov 03 Nov 06 Nov 13 Nov 16 Nov 21 Dec 31 Dec Mr Matthias Yao Chih 31 Oct 31 Oct 02 Nov 06 Nov 19 Nov 22 Nov Ms Audrey Wong Wai Yen 01 Nov 13 Nov Mr Lee Yi Shyan 01 Nov 06 Nov 18 Nov 21 Nov 23 Nov 30 Nov Mr Zaqy Mohamad 01 Nov 06 Nov 10 Nov 10 Nov 23 Nov 26 Nov Ms Grace Fu Hai Yien 02 Nov 06 Nov 27 Nov 30 Nov Mdm Ho Geok Choo 02 Nov 05 Nov 22 Nov 26 Nov Mr Teo Chee Hean 02 Nov 04 Nov 05 Nov 07 Nov 16 Nov 22 Nov 30 Nov 01 Dec 09 Dec 13 Dec 15 Dec 18 Dec Mr Teo Ser Luck 02 Nov 05 Nov 15 Nov 17 Nov 23 Nov 23 Nov Mdm Cynthia Phua 04 Nov 08 Nov 13 Nov 17 Nov 21 Nov 23 Nov Mr Hawazi Daipi 04 Nov 19 Nov 06 Dec 13 Dec Mr Wee Siew Kim 04 Nov 04 Nov 11 Nov 12 Nov 16 Nov 17 Nov 23 Nov 23 Nov 07 Dec 10 Dec Mr Tharman Shanmugaratnam 05 Nov 08 Nov Mr Lim Swee Say 07 Nov 07 Nov 07 Dec 17 Dec Mr Yeo Guat Kwang 08 Nov 18 Nov Mr Liang Eng Hwa 09 Nov 12 Nov Dr Mohamad Maliki Bin Osman 09 Nov 12 Nov Mdm Halimah Yacob 10 Nov 20 Nov Assoc. Prof. Koo Tsai Kee 13 Nov 15 Nov Mr Lim Biow Chuan 14 Nov 16 Nov 26 Nov 30 Nov 13 Dec 15 Dec Mr Seah Kian Peng 14 Nov 21 Nov 28 Nov 29 Nov 01 Dec 13 Dec Dr Ong Seh Hong 15 Nov 18 Nov Ms Indranee Rajah 16 Nov 22 Nov Mr K Shanmugam 16 Nov 19 Nov Er Lee Bee Wah 16 Nov 22 Nov 05 Dec 16 Dec Mr Zainul Abidin Rasheed 17 Nov 19 Nov 21 Nov 22 Nov Dr Ahmad Mohd Magad 19 Nov 21 Nov Mr George Yong-Boon Yeo 19 Nov 22 Nov 24 Nov 03 Dec 09 Dec 11 Dec 16 Dec 31 Dec Prof. S Jayakumar 20 Nov 22 Nov Mr Laurence Wee Yoke Thong 22 Nov 29 Nov Dr Ng Eng Hen 22 Nov 25 Nov Mr Khaw Boon Wan 23 Nov 28 Nov 19 Dec 28 Dec Mr Lee Kuan Yew 23 Nov 23 Nov Mr Michael Palmer 23 Nov 11 Dec Mr Seng Han Thong 23 Nov 23 Nov Mr Heng Chee How 24 Nov 29 Nov 29 Dec 31 Dec Mr Lee Hsien Loong 24 Nov 03 Dec Dr Amy Khor Lean Suan 25 Nov 27 Nov 29 Nov 06 Dec 11 Dec 19 Dec Mr Cedric Foo Chee Keng 25 Nov 28 Nov Mr Wong Kan Seng 25 Nov 29 Nov 19 Dec 26 Dec Dr Fatimah Lateef 28 Nov 01 Dec 07 Dec 10 Dec 11 Dec 14 Dec 07 Jan 18 Jan Ms Irene Ng Phek Hoong 28 Nov 01 Dec Mr Lim Hng Kiang 29 Nov 08 Dec Mrs Lim Hwee Hua 30 Nov 01 Dec 24 Dec 31 Dec Mr Gan Kim Yong 05 Dec 07 Dec 10 Dec 18 Dec Dr Vivian Balakrishnan 05 Dec 09 Dec Mr Lim Boon Heng 06 Dec 08 Dec Mr Raymond Lim Siang Keat 13 Dec 27 Dec Mr Mah Bow Tan 18 Dec 20 Dec Mr Abdullah Tarmugi 04 Jan 07 Jan

ABDULLAH TARMUGI Speaker Parliament of Singapore

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

30th October,2009 (1) Income Tax (Amendment) (Exchange of Information) Bill (2) International Arbitration (Amendment) Bill (3) Quorums of Statutory Boards (Miscellaneous Amendments) Bill ABDULLAH TARMUGI Speaker Parliament of Singapore

[Mr Speaker in the Chair]

1. Ms Irene Ng Phek Hoong asked the Minister for Foreign Affairs if he can give his assessment on the outcome of the APEC meeting in Singapore when the meeting concludes.

2. Mr Teo Siong Seng asked the Minister for Foreign Affairs what is his observation and assessment on the important outcome of the 17th APEC Economic Leaders Meeting and in what ways Singapore and the business community can benefit from this mega event.

Mr Speaker, Sir, may I have your permission to take the first two questions together, please?

Yes, please.

The 17th APEC Economic Leaders' Meeting (AELM) was the culmination of our 2009 APEC Chairmanship, during which we also celebrated the 20th anniversary of the formation of APEC. When it was born in 1989, trade barriers were high. Political and ideological barriers were even higher. Besides the economic integration of the region, we wanted to make sure that no line was drawn down the middle of the Asia Pacific. At that time, trans-Pacific trade was already growing at a faster pace than trans-Atlantic trade. Now, more so than ever, trans-Pacific trade looks set to grow even more, with some likening the Asia Pacific region to the Mediterranean.

The APEC Leaders' Week culminated with the two-day Leaders' Retreat, chaired by Prime Minister Lee Hsien Loong, centred around the theme of "Sustaining Growth, Connecting the Region". The series of APEC meetings took place at a critical juncture for the global economy and the region. Accelerated by the economic crisis, the global landscape is changing. With the rise of Asia, in particular China and India, the world has become multi-polar but the US will remain the dominant pole for a long time to come. Against this backdrop, APEC Leaders were united in their support of actions to promote global economic recovery, and create conditions for strong, stable and sustainable growth.

The overall mood was positive and upbeat, with broad agreement on the fundamentals. There was a full turnout of APEC Leaders, which underscored the importance that they placed on APEC. The involvement of the business community is an integral part of the Leaders’ Meeting. Activities involving the business community have grown through the Annual CEO Summit which provides an occasion for Leaders to interact with business leaders. We received good feedback on the CEO Summit which was one of the largest, if not the largest, ever. Fourteen APEC Leaders participated in the CEO Summit.

At the various meetings, there was a general hopefulness about the future of the region, many believing that this will be an Asia Pacific century. As the premier regional organisation representing more than half global GDP, APEC is well-placed to articulate the region’s perspective on global economic issues. There was agreement that APEC should work with the G-20 and that the APEC and G-20 agendas should be aligned, so that they can be mutually supportive for the good of the region and the world.

APEC has become a platform for Leaders, Ministers and officials to meet regularly and develop personal ties. In addition to the formal APEC meetings, many bilateral meetings were held at the sidelines. When problems arise, the institutional and interpersonal networks are already in place to help address them. A former European Commissioner remarked to me that APEC meetings had a different quality from many others he attended. Unlike European meetings which were legalistic, APEC meetings were more exhortative. The non-binding nature of APEC decisions creates different conference dynamics.

At the end of the day, APEC's relevance depends on its ability to deliver tangible outcomes. Because of the non-binding nature of APEC decisions, Leaders and Ministers can afford to be more candid and more open to new ideas. Decisions nevertheless carry force because of peer pressure. A recent study by an independent research team on the much-debated question "Does APEC really make a difference to trade?" concluded that the impact of APEC membership on trade is comparable to that of a free trade agreement, even without a binding agreement.

The Ministerial and Leaders’ meetings covered a lot of ground. We reviewed the global economic situation, launched new initiatives that will help businesses and discussed growth strategies to promote durable recovery. In particular, there was broad agreement on re-orientating our growth strategies to address the challenges of climate change, globalisation and macroeconomic imbalances. There was also a clear stance rejecting all forms of protectionism and we reaffirmed our commitment to conclude the Doha Development Agenda in 2010. We continue to hold high the Bogor Goals of free trade and investment in the region.

One common target agreed on is to make it 25% cheaper, faster and easier, on average, to do business in the region by 2015 in five priority areas. This means time and cost savings in areas like starting a business and the processing of trade documents. We also started an initiative among seven economies allowing traders to self-certify a product’s origin in order to claim preferential tariffs made available by Free Trade Agreements (FTAs). They are Australia, Canada, Japan, Korea, New Zealand, Singapore and the United States. This initiative will help companies more fully realise the benefits of FTAs by reducing the cost of complying with multiple Rules of Origin.

There was consensus among the Leaders that APEC economies should step up their efforts to realise the vision of a Free Trade Area of the Asia Pacific (FTAAP). An important development was US President Barack Obama’s announcement that the US will engage in the Trans-Pacific Partnership (TPP) and work towards a broad-based and high-quality agreement. There are plans to extend the TTP to an eight-member grouping with Australia, Peru, US and Vietnam joining the original four members which are Brunei, Chile, New Zealand and Singapore. The TPP will set off positive competitive dynamics which can help us achieve the ultimate objective of an FTAAP.

To answer the second part of Mr Teo Siong Seng’s question, with more than 7,000 foreign delegates in town, the APEC meetings were also a good opportunity to showcase Singapore on the global stage and enhance our attractiveness as a leading global city. Although there were minor problems, the meetings and collateral events were generally well run. The feedback that we have received is mostly positive. As a result of APEC, I can say that Singapore’s reputation as an efficient place to hold conferences and do business has been enhanced. This is valuable.

Singapore is proud to have been the host APEC economy in APEC’s 20th year. It has been a long journey, involving not just Government officials but many Singaporeans who played their part to make the event a success. Our goal was not only to deliver a good meeting and be efficient and effective but also to be good hosts, showing the warm and friendly side of Singapore. It was more than a cast of thousands. All Singaporeans participated directly or indirectly, including many who were overseas who cheered us on.

Mr Speaker, Sir, I thank the Minister for his reply. If I may say so, I think the army of volunteers and all the staff involved in organising APEC, including the security agencies, deserve special commendation for hosting such a good meeting in Singapore and showcasing Singapore's ability to host such a major global conference. As the Minister noted one of the spin-offs of APEC is the meetings that took place on the sidelines. One of them was the historic meeting between US President Barack Obama and the Leaders from the ASEAN countries, including Myanmar. Can I ask the Minister, first, for his views on the significance of the renewed US policy of engagement in this region, in particular towards Myanmar? The Minister also mentioned that it is getting to be a multi-polar world with the rise of China and India but with the US as a dominant pole, so can I ask the Minister for his sense of the shifting strategic landscape given that China has overtaken the US in becoming Southeast Asia's third biggest trading partner, after Japan and the EU?

Thank you to the Member for her remarks about all those who have contributed to the success of the recent APEC meeting. Prime Minister Lee will be hosting a reception to thank all those who participated directly or indirectly. As for the Member's question about the US engagement of the region, for the first time, we have had a summit between the US President and all 10 Leaders of ASEAN. And for the first time, the US did not make Myanmar an issue in the way, which it was in the past. There were proposals to host such summits before but they always stumbled over this issue of Myanmar. There are things happening now, not all of which are in the public domain. After Senator Webb's visit to Myanmar some months ago, there is now direct contact between the two governments – the US and Myanmar. When Assistant Secretary Kurt Campbell was there recently, he met Daw Aung San Suu Kyi. She, in turn, has asked to meet Senior General Than Shwe, so things are happening. In the meantime, the US and Europe keep sanctions on as a way to pressure the government and I think they are only prepared to relax sanctions if Daw Aung San Suu Kyi were to ask them to. So in this way, their strategy is to strengthen her and not to weaken her.

But the government, on its own, has undertaken to hold free and fair elections next year. Well, we hope they will be free and fair, and we hope there will be national reconciliation involving not just NLD (National League for Democracy) but also the various ethnic groups, many of which are still armed, and that the country can then move smoothly into a constitutional framework and make progress after that. In a sense, we in ASEAN feel justified that all these years we have advised the Americans and the Europeans to continue engaging Myanmar even though they may be unhappy about its policies, which is indeed our position as well. Members of Parliament, like Mr Charles Chong, have always taken a very principled stand on some of the things that some of us find objectionable. But what is happening with respect to Myanmar has to be seen against the larger backdrop of the US engagement of Asia as a whole. The key is really US-China relations, which have become very multi-faceted, a very big account which was put on a stable footing by former President Bush, and which President Obama is determined to maintain and keep steady. As part of it, the US has to strengthen relations with other countries in Asia, including countries in ASEAN.

Thank you, Minister for the very comprehensive assessment. No doubt the APEC meeting was a good success. In fact when I was in Manila last week to attend the World Chinese Entrepreneurs Congress, I was congratulated by many of my counterparts for the good success. Still, I cannot help but raise the issue of how the man-in-the-street felt. The week before the APEC meeting, I was in a taxi and I was asking the taxi driver how APEC was affecting him. He said it was terrible because of the road blocks and he said "how can I compete with 350 BMWs?" While we know that $100 million was spent to make the APEC a great success and to show that we can really host such a big event to bring world Leaders together, the man-in-the-street feels that Singapore is famous enough already. Do we have to make ourselves more famous?

Mr Speaker, I have also personally received a few of those complaints, including an email from a businessman in Suntec City who said business was down during the week that the APEC meeting was on. But at the same time, we have learnt from the experience of the World Bank/IMF experience and even though keeping security in place was critical, we have been able to do so, by minimising the inconveniences to Singaporeans. To be a conference city, there are bound to be such inconveniences from time to time, affecting taxi drivers, shops and Singaporeans who live in the city area. But I believe, on the whole, there is general recognition that all this global limelight on us redounds to a much larger, greater advantage, and that in the end it means more people coming here, more people respecting our ability to organise and do things in an efficient, simple, practical way. It will, in the end, lead to more investments and jobs. I think, on the whole, the positive feedback drowns out the few negative comments that we have received.

Last question, Mdm Halimah.

Sir, one of the strategic objectives of APEC is to develop a balanced sustainable and inclusive growth. This is an important objective, considering that the impact of globalisation, widening income gaps and the perception that there is unbalanced distribution of wealth in the region. I would like to ask the Minister what are the specific measures that APEC has agreed upon in order to achieve this vision of balanced, sustainable and inclusive growth. My second question to the Minister is to ask Minister whether he agrees that, while non-binding decisions create a more open environment for discussion, at the same time, when it comes to results in terms of follow-up, there will be problems. So, how do you balance these?

The problem of balanced development will become more challenging in the coming years because of globalisation. It is natural that with competition, some groups will do better than other groups, some countries will do better than other countries. The solution is not to prevent those who can move faster from moving faster. The solution must be to help those who have difficulty catching up, to catch up more quickly. For this reason, one of the critical pillars of APEC is helping countries which are further behind with capacity building. And we do this in many ways, through conferences, through courses, through peer assessments. In fact, what we call ECOTECH – Economic and Technical Cooperation – dominates the practical agenda of APEC. In other words, we are not tying ourselves to specific measures to help one another, but we are making use of peer pressure and competition to encourage everybody to move along and together. And it has worked quite well so far. In Europe, every meeting they vote to take decisions. Because of that, officials enter meetings in a very tense way with negotiating positions all ready for fights and long meetings. In APEC, because the targets are often soft, people are prepared to discuss things more freely. This was pointed out to me not just by the European Commissioner I mentioned earlier, but by others as well. There are pros and cons. It means that if countries do not measure up to what they said they will do, there is nothing we can hold against them as these decisions are non-binding. So what has happened within APEC is within that collegial framework, there are specific agreements which are binding being carried out.

So APEC provides, as it were, general goal-setting for the entire region. Although it is invovles only 21 economies, it accounts for more than half the worlds' economy and it is almost half of global trade. And it is by far the faster growing half of the world, one which is full of hope, full of optimism about the future, eager to learn from one another, keep the lines of communication and trade open, and then within this framework, if there are specific agreements that we can enter in a binding way, we will do so because they are mutually beneficial. So we talk about how to actualise the Bogor goals, work towards a Free Trade Area of the Asia Pacific, which is binding, even though the Bogor goals themselves are not. The Trans-Pacific Partnership which if it comes about, with eight members, will be binding and serve as a building block towards a future FTAAP. So I think we have somehow in the Pacific, without quite planning for it to be so, achieved a good balance between binding agreements and non-binding efforts to keep everybody moving and encouraged in the same direction.

3. Mr Chiam See Tong asked the Minister for Foreign Affairs in view of Indonesia's willingness to lease one of its islands to a private Australian company for use as a tourist resort, whether the Singapore Government will approach Indonesia to enquire if it will be willing to lease one of its 17,000 vacant islands to Singapore to develop it for mutual benefit.

We are not in a position to comment on Indonesia's willingness to lease their islands to private companies. The Singapore Government has no plans to lease any islands from Indonesia.

What are the stumbling blocks which the Minister can foresee in leasing a vacant island from Indonesia?

By leasing, I believe Mr Chiam is referring to the leasing of sovereignty, not just the leasing of land use –

I think sovereignty is out of the question. I was asking about a purely commercial transaction.

In that case, it is not a problem because there are commercial agreements between the Indonesian government or provinces with Singapore legal entities and that is fine. But the Singapore Government is not involved in that.

4. Mr Christopher de Souza asked the Minister for National Development if he will provide an update on the impact and effectiveness of the measures to cool the property market, in particular (i) the effect of the abolition of Interest-Only Loans (IOL) and Interest Absorption Scheme (IAS); and (ii) the re-introduction of the Confirmed List of land sales for the first half of 2010.

Mr Speaker Sir, on 14th September 2009, I announced in this House a package of property market measures to temper the exuberance in the market and pre-empt a property bubble from forming. One of the measures was the removal of the Interest Absorption Scheme (IAS) and the Interest-Only Loans (IOL), which was effective immediately. Another was the resumption of land sales on the Confirmed List for the first half of 2010.

URA recently released details of the first half 2010 GLS programme, there will be eight sites, which can yield about 2,900 private residential units for sale on the Confirmed List, another 18 sites on the Reserve List. Overall, the sites in the Confirmed and Reserve Lists can generate about 10,600 units, which is the highest from any half-yearly GLS Programme since the Reserve List system started in 2001.

All the sites in the first half 2010 GLS Programme are located in the Outside Central Region (OCR) or areas in the Rest of Central Region (RCR) where more affordable private housing can be built. These include five Executive Condominium (EC) sites.

These measures appear to have had some effect in tempering the exuberance in the private housing market. URA's monthly data shows that sales of private residential properties by developers fell month-on-month by 37% in September 2009, and by a further 29% in October 2009.

The Government will continue to monitor the property market closely and assess the market's response to the measures introduced before deciding whether further measures are necessary to promote a stable and sustainable property market.

Our key interest is to ensure that property prices and rentals remain competitive and move in line with economic fundamentals. We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation. But we must let market forces determine prices, based on genuine demand from home-buyers and investors.

The Government will continue to adopt a calibrated approach to promote a stable and sustainable property market, in the interest of all Singaporeans.

Thank you, Minister, for the confirmation that the measures have tempered exuberance. Given that they have, is the abolition of the Interest-Only Loan and Interest Absorption Scheme, going to be a temporary measure and will there be a lifting of the abolition in future or do you see this as a more permanent feature?

Sir, I think at this point in time, there are several uncertainties in the market. First of all, of course, the uncertainty in the economic recovery. Secondly, there is also uncertainty about what is the longer term impact of the measures that we have introduced. We have only removed these two schemes, the IAS and the Interest-Only Loans recently in September, so, it will take some time for us to really gauge the response and the impact of these schemes. If I look back on a historical basis, we actually have had occasions where we have introduced measures to curb excessive speculation and then subsequently over time when the market has stabilised, or when the market was weakening, allowed some of these schemes to be restored. So I would not say that we will never restore these schemes but I think it is a little bit too early to make a call on that.

Thank you, Sir. A follow-up question, Minister. These schemes that you have in place, they tend to be very blunt and they affect everybody with the same kind of measures. Does your Ministry have plans to roll out schemes that are differential so that there will be more help given to the low income first-time buyers, for example?

I would not agree that the schemes that we have implemented are blunt, in fact I would suggest that they are more targeted. We actually have many other weapons in our arsenal that are actually more blunt but I think the two schemes that we have removed or disallowed are actually rather targeted and they are mainly targeted at the speculators, who would make use of these schemes in order to flip or to turnover properties quite rapidly. So we have, as I have said, taken a calibrated approach to the property market. The idea is to cool the market, not to crash it. And this is the reason why we have been very careful in our approaches. As for first-time buyers in the market, if you are referring to the private property market, we do not distinguish between first-time buyers and second-time buyers. However, as the Member knows, the bulk of first-time buyers are able to buy HDB property. So, in fact, the HDB market is completely available to them and this is where we do make this distinction between first- and second-time buyers and we do have a lot of assistance measures, whether it is in the form of an upfront grant or in the form of concessionary interest loan to help Singaporeans to own their own homes.

Mdm Phua, last question.

Thank you, Sir. Can Minister let us know whether in the historical records, how many of these sales are sub-sales, that means speculators buying them? My reason is to re-emphasize that withdrawing these finance schemes really affect genuine buyers.

Well, we do monitor the number of sub-sales. If somebody buys a property and then sells it before the property is completed, say, within the first six months, we would loosely define them as sub-sales and, generally speaking, regard them as speculative activity. The records that we have so far indicate that the number of such sub-sales are not as high as they were in the heydays, at the height of the property speculation when the market was getting out of control and a bubble was forming. Currently, there is no such evidence. I mean there are sub-sales but the number of sub-sales are not as high as they were before. So I would say that the schemes that we have introduced have helped to dampen some speculative demand. But I think the thrust of the Member's question is whether these schemes also affect genuine buyers. I think if you are a genuine buyer, if you are buying for owner occupation, my advice has always been, "buy within your means" and if you do your calculations, do your sums, you will find that there are homes available, even in the private property market that are within the range of these buyer.

But, ultimately, it comes back to the point that I have made to the Member, Assoc. Prof. Paulin Straughan, just now. For first-time buyers in Singapore, we do have a very generous housing scheme, which is the HDB Public Housing Market. There, it is very clear that first-time buyers are well able to afford a very good home in Singapore. If they want to take part in the private property market, there are other schemes available, of course, not Government schemes but private schemes, which allow them to do so and the interest rates are currently low. There are also properties available in various parts of Singapore, not just in the central area. The latest number shows that there are about 60,000 units available, either already sold but not yet developed or built, or about to be sold. And about 35,000 of them are not yet sold. The message must be that there is a lot of supply out there, at different prices and different locations. I would urge Singaporeans to do their sums but also to look around and not to be rushed into buying something.

5. Er Lee Bee Wah asked the Minister for National Development (a) how many new Build-To-Order flats are presently available for selection; and (b) how do the supply and demand factors influence the cost of these flats.

6. Mdm Cynthia Phua asked the Minister for National Development (a) what is the projected supply and demand of HDB flats in the next five years; (b) what are the parameters that are taken into account in the projection of the supply and demand of flats; (c) whether the Ministry has considered an annual buffer number of ready flats and, if so, what is the number and the parameters in arriving at that number; and (d) what measures will the Ministry consider in ensuring that first-timers get a new HDB flat within three years.

7. Dr Muhammad Faishal Ibrahim asked the Minister for National Development what is the current waiting time and the number/percentage of couples applying for new HDB flats under the Fiance/Fiancee Scheme

8. Mr Chiam See Tong asked the Minister for National Development (a) what it costs the Government to build a 3-room, 4-room and 5-room HDB flat; (b) what is the profit margin which HDB adds to the cost for each of these categories of flats when it sells them to the public; and (c) whether HDB bases the selling price of flats on the prevailing market price of these flats.

Mr Speaker, Sir, may I have your permission to take Question Nos. 5, 6, 7 and 8 together as they are related?

Yes.

Members have raised concerns in these four questions about the pricing and the supply of public housing. These are valid concerns, so I thank Members for giving me yet another opportunity to address them.

Mdm Cynthia Phua and Er Lee Bee Wah asked about demand and supply of flats. Let me right at the outset repeat or re-assure Members of this House that there are sufficient flats available for first-time buyers in Singapore. The Government has been and will remain committed to this.

Er Lee Bee Wah asked how many Build-to-Order (BTO) flats are available presently. HDB has increased the BTO supply to 5,000 units in the last quarter of this year. If we include the recent sale of balance flats that was announced in October, HDB will offer over 7,000 flats in three months, and a total of 13,500 flats in 2009. Now, just to put this number into perspective – what this means is, half the number of flats in Bukit Panjang or Pasir Ris town. At this rate, HDB would be offering enough flats to build another Bukit Panjang or another Pasir Ris in just two years.

HDB is able to quickly increase supply when demand is strong. We started the year with a planned flat supply of 6,000, and that was when we were in the midst of a severe recession. The unexpected turnaround in second half of the year caused a strong rebound in demand. HDB was able to swiftly respond with a 50% increase in flat supply. If take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year, at least one every month if necessary.

In response to Mdm Cynthia Phua's question about projecting HDB flat demand, HDB projects a supply of new flats based on various demand factors, in particular, new households formed from marriages and immigration. HDB also takes into account resale flat transactions as they form part of the total housing supply to meet demand. In the next five years, HDB estimates that it would need to offer between 10,000 to 12,000 new flats per year to meet demand. But bear in mind that this is only a projection. What actually happens a few years down the road is not known. Demand is also not constant, it varies from year to year depending on economic and other factors. This medium-term projection serves as a guide for our BTO system, which is flexible, transparent and responsive to actual demand.

Under the BTO system, HDB will start a project immediately when a significant number of applicants confirm that they will buy the flats. It does not build ahead of demand and run the risk of ending up with the large stock of unsold flats which is exactly what happened when the Asian Financial Crisis hit in 1997. The queue was 150,000 and this dissipated overnight, and HDB ended up with 31,000 unsold flats. As a result, there was a lot of concern in this House about the huge number of unsold flats, waste of taxpayers money, flat prices being depressed, and so on. I had to repeatedly assure Members that HDB was taking urgent steps to clear the unsold stock.

Today, the stock of unsold flats is largely being sold. Nevertheless, there is no lack of supply for first-time flat buyers. As I said earlier, HDB has ramped up supply, ramped up the number of BTO projects sharply. For BTO projects, first time buyers get double the chances in the ballot, they get two tickets, compared to second timers. And four tickets, four chances, if they live near their parents or with their parents. I have asked HDB to do even more to help first-time buyers. With effect from the BTO launches in November 2009, HDB has increased the proportion of new flats set aside for first-timers, from 90% to 95%.

Even before this change, first-timers applying for BTO flats in non-mature estates, already had a very good chance of selecting a flat within two tries. In BTO exercises in 2007 to this year, 96% of first-timer applicants were given a chance to choose a flat within two tries. You have to be unlucky not to be successful after three or four tries in the BTO exercise. And if Members have any such applicants among your residents, I am prepared to look into their case and see how HDB can help.

Dr Muhammad Faishal asked about waiting time in the Fiance/Fiancee Scheme. HDB takes about three years to build its flats, no different from any other flat, including private flats. Flat buyers should not expect to walk into HDB and buy a ready-to-move-in flat as soon they get married. However, with some careful planning, they can shorten the waiting time. They can book a new flat ahead of their marriage, under the Fiance/Fiancee Scheme, once they get engaged and move in once they get married. Forty percent of first-time flat buyers make use of this scheme today. For those who do not and want the flat straightaway upon marriage, they can buy a resale with generous Government CPF Housing Grants, but they will be subject to market forces, such as the COV.

Mr Chiam asked about the cost of building HDB flats. The total cost varies depending on when we build, where we build and what we build. It includes the cost of land as well as the cost of construction of the flats and ancillary services. It varies from $230,000 for a 3-room flat in Punggol today, to $530,000 for a 5-room flat in Tiong Bahru. He also asked the profit margin HDB adds on. Let me explain that HDB does not price its flats based on cost plus profit, but on market price less a generous discount. Together with the additional Housing Grant, which various from $5,000 to $40,000, depending on household income, on average, the subsidies amount to about 20% of the market price for a 4-room flat. It will be even more for smaller flats. This is a subsidy given to all first-time buyers to keep HDB flats affordable. Sometimes, HDB's selling price is more than the total development cost to build the flats. Other times, it is less than the cost, especially when construction costs are high, as in the last few years. Overall, HDB incurs a large deficit in building and selling flats every year, and this is reflected in its audited annual accounts. In its latest audited accounts, FY 2008/09, HDB incurred a deficit of $1.5 billion for the home ownership programme alone. What is important to note that we heavily subsidise the home ownership programme, to ensure HDB flats remain within reach of Singaporeans. Eighty percent of new flat buyers today service their mortgage loans entirely with their CPF contributions, without any cash outlay. The proportion of family income used to pay the mortgage is a comfortable 21%, on average, for BTO flats in non-mature estates.

In conclusion, I could like to reiterate the Government's commitment to ensuring sufficient supply of affordable flats. We will help young couples to buy their first flat but they must do their part. They have to be prepared to live in the new estates and plan in advance if they want a new flat faster. After flat buyers join the rank of flat owners, they will enjoy the benefits of owning an asset which is not only a roof over their heads but also a place they call home and a store of value that will grow over time as Singapore grows.

Thank you, Minister. I have seen young couples – first-time flat purchasers – and they told me that they are not successful after two tries. I would like to ask Minister, can we assure them that the third time should be 100% successful.

The next question is that for those who need a temporary flat while waiting for the BTO flats, do we have sufficient temporary flats for them?

Well, if 96% of them are given a chance to select the flat after two tries, I think after three tries, it will be pretty close to 100%. If there is anybody who has not been successful after three tries, to be given a chance to select a flat – note that it is a chance to select a flat, not a chance to get a flat of choice, because I have seen many cases of people who have been given chances to select flats, but who reject those chances for whatever reason. So if you are given a chance to select a flat, please think carefully and choose to select that flat. If you have not been given a chance after three or four tries, let me know.

As to whether there are enough interim flats available, the answer is yes. We have an interim rental housing scheme, where if you have already selected the flat and the flat is not built yet, and you are prepared to come in for interim rental, I think we can consider that. But there are also other flats that are available. For example, we have certain SERS blocks which have not yet been redeveloped, that are being made available through a managing agent. These flats have reasonable rentals and they are also available for such couples.

Thank you, Sir. I have three supplementary questions. In the planning perimeters that Minister has mentioned, he has not included the new residents coming into Singapore to buy flats. We know that they are buying resale flats, as a result, the demand for resale flats is high. Most of the people who want to buy a HDB flat will have to buy from HDB, as a result, there will be a further demand for the HDB flats. Will Minister consider the new residents' demand on the resale market?

Second question – can Minister consider setting up a special committee, to work with real estate developers to sharpen your figures in terms of demand and supply. In the 1997 financial crisis, you have a sharp oversupply. Now there is a lot of demand on the ground. Maybe a special committee, with the rest of the Ministries will be able to sharpen your numbers.

Third question – on the buffer of flats. I know Minister's policy is not to have ready flats. Can Minister consider having a 10% out of your projected 10,000 to 12,000 flats per year, built as ready flats? A lot of families are in urgent need of a home over their heads such as pregnancy before marriage.

Although I said that we do not plan for a buffer, in actual fact, there is a buffer of flats over and above the BTO, which is available, and has shorter waiting times.

These are the surplus flats from the other programmes, eg, some flats from SERS and buy-back flats scheme. So, for this year, we have had a surplus of about 2,000 flats which we have sold recently under the sale of balance flats programme. There will be always be surplus flats available. Under the BTO, for example, we will build when the take-up rate is about 70%. So, there will be another 30% of flats in surplus and not taken up. Once the project is ready and launched, we will put this 30% onto the market for sale. The policy is not to deliberately have a buffer but in the scheme of things, we will generally have a small buffer. In fact, it is about the 10% that the Member mentioned.

On the planning parameters for new residents, in fact, we do cater for family formation due to new residents coming in. However, not all the new residents actually buy resale flats. The Member knows, of course, that PRs are not eligible to buy new flats. They can only buy in the resale market. Even in the resale market, not all of them actually buy the flats. Quite a lot of them rent. We do have figures on the purchase of resale flats by PRs and they are under-represented as far as purchases are concerned. The answer to the Member's question is, yes, we are aware of the fact that new immigrants (the PRs) do constitute an additional demand, and we have taken that into account in all our projections.

This brings me to the second part of the Member's question, which is whether we could have a special committee to try to project more accurately. I think a projection is as accurate as what we know today. If you ask me to project what happens five years from now, I can only go by what is known today – projected economic demand, projected immigration numbers, and so on. But these things, as Members are well aware, will change over time. And the changes can be quite dramatic. If you look at the change – from September last year to September this year – in the property market, stock market, and people's sentiments, I do not think any committee made up of anybody in Government or the academia could have predicted that change. So, what do we do? I think we can make a projection based on best estimates and then we must have a system that is responsive when conditions change. And this is what we have done under the BTO system. We must also have a system that does not encourage unnecessary demand. Unfortunately, when we had a system where people were queueing up and we built according to that queue, the cost of joining in the queue was virtually nil. Anybody could have joined the queue. We allowed both first-timers and second-timers to join the queue. That is the reason why we had 150,000 people in the queue. Because if you can buy a HDB flat even though you are a second-timer or third-timer, why not?

We have taken steps over the years to try to weed out what is genuine demand from frivolous demand. We have also taken steps to institute a system that is more response to genuine demand. I think, today, we have a more stable system which can be more responsive to demand. But I am open to any idea or suggestion from anybody about how we can more accurately predict demand five years down the road, and I will be happy to take a look at those things.

The Minister has highlighted some very useful examples of how we are responding to the demand on the ground. What I am puzzled by is, despite all these measures, why does the Minister think that there appears to be a groundswell of discontent and feeling that first-time buyers are not able to buy the flats. There seems to be something that is out of sync. Is it because the schemes are too complex for people on the ground to understand and, therefore, take advantage of? Is it because the communication of these schemes is not clear enough? Or is it because the people on the ground have unrealistic expectations?

I am not able to ascertain from the Member's question where he gets the idea that there is a groundswell of discontent. But I do have feedback from REACH and Members of Parliament that there are some people who would like HDB to provide ready-made flats in good locations faster, better and at cheaper prices. Yes, definitely, there is that sense. And this is the reason why I think we have to better communicate our policies. We also have to make sure that our policies are less complicated. But I dare say that there is also a mismatch of expectations – an element of unrealistic expectations.

Let me illustrate this point. At one point in time, there was a spate of emails and reports in the media about young couples not being able to get HDB flats after repeated ballots. In fact, some of them said that they balloted 18 times; some 12 or 15 times and they never had a chance to get a flat. They never were called to select a flat as the queue numbers were high. And they asked how they were going to get married and raise a family. So, we dutifully checked each and every one of them, and we found to our surprise that all those emails, complaints and letters to the media were not entirely accurate. Some of them were offered chances once or twice; some as many as seven times – seven chances for them to select a flat – and they did not select a flat. So we went back to them and asked: "Hey, you said you balloted 18 times and you did not get a chance, but my record shows that you had three or four chances. What happened?" And they said, "Oh! I was only given a flat on the second floor. How do you expect me to live in it?" And we went back to them and said, "Oh, yes, but there were some third-floor flats as well." And they said, "Oh, yes, second floor and third floor, what is the difference?" So, is it unrealistic expectations? I think there are grounds to believe that there is.

I recently had a conversation with Mr Dhanabalan over dinner and we both talked about our time in Kim Keat Avenue. I was living in a 3-room flat in Kim Keat Avenue – eight of us – with three bedrooms, sharing one toilet and bathroom. It was basic but it was like a palace to us because I just came from a 1-room flat with 10 people in Chinatown. So I think that reflects our expectations at that time and how things were changed. But I do not expect that people want to live in this kind of conditions today. Our standards have gone up. Today, our 3-room flats have got one attached bathroom and an additional bathroom – two bathrooms for even a basic 3-room flat. So our standards have moved. And it is going to move even further. Our new flats are going to be even nicer. We will move over time but we cannot meet certain expectations. I cannot build flats only in the mature estates or city area. I cannot build flats that are only on high floors. I need to have flats on the second floor and third floor as well. And who is going to live on these floors? Our commitment is that we will build and make available flats to young couples at affordable prices in well situated new towns, good transport facilities and good amenities. These flats will increase in value over time. The non-mature estates today will become the mature estates of tomorrow. This is a commitment that we have made and we will continue to make. I urge young Singaporeans to be realistic in their expectations. If they do so, I think they will find that over time, these flats – even those flats on the second floor – will grow in value.

Dr Lam, last question.

I have a supplementary question for the Minister. I have a resident who tried to make good use of the Fiance/Fiancee Scheme but, unfortunately, his marriage plans were three times unlucky. As a result, he suffered significant loss in the deposits. I believe there must be many such cases encountered by HDB. Will the Ministry actively consider refunding the deposits to such cases, at least for those who are assessed to be genuine?

How would the Member define "genuine"? But, seriously, we will look into it, as we have always done.

9. Dr Lam Pin Min asked the Minister for Transport (a) what are the reasons for the decrease in utilisation of public transport by Singaporeans in 2008; and (b) what measures or new initiatives will the LTA implement to encourage Singaporeans to switch to public transportation.

Mr Speaker, Sir, I believe that Dr Lam Pin Min is referring to the reduction in the public transport mode share indicated by the Household Interview Travel Survey 2008. Between 2004 and 2008, the number of public transport journeys made each day increased by 16%. However, the number of car journeys made each day increased by 31%. Hence, the public transport mode share, which measures the proportion of journeys made on public transport during the morning peak hours, fell from 63% in 2004 to 59% in 2008.

This decrease can be attributed to the lack of major infrastructural improvements to the public transport system between 2004 and 2008, while our population and the number of vehicles continued to grow.

We had commissioned this survey in 2008 to help us to properly establish the baseline for the Land Transport Masterplan (LTMP), and give us a more accurate assessment of the magnitude of the land transport challenges we face going forward. The timing of the survey is such that its results ought not to be interpreted as feedback on whether the plans and initiatives announced in the LTMP are effective as the survey was conducted before any of the major LTMP measures started to kick in. Instead, the survey results re-affirm the key challenge that the LTMP has identified – that of reversing the decline in public transport mode share and the importance of achieving the 70% public transport mode share target by 2020. In other words, increase the public transport mode share from six to seven trips out of every 10 trips.

The survey findings also re-affirm that we need to continue to complement improvements in our public transport system with measures to moderate car usage. We have reduced the vehicle population growth rate, from 3% to 1.5% a year, and will assess this again in 2012, to see if a further reduction is necessary. We have also made it easier for drivers who choose to give up their cars to encash their COE and PARF rebates, and will be making improvements to the Off-Peak Car scheme and Park and Ride scheme.

While we have already made some immediate improvements to our public transport system, many of the more significant programmes will take time to implement. We are working to double our rail network. New lines and extensions to existing lines will be opened progressively when they are ready. The Circle Line started operations in May this year, and will be completed by 2011. We can look forward to the Downtown Line after that. LTA is taking over the central bus network planning, and we are completing the implementation of through-fares. These are just some of the measures we are taking to improve our public transport system. As the rollout takes place, we will continue to see what else we can do. If we stay the course, we should be able to make progress in reversing the trend and achieve our target of 70% public transport mode share by 2020.

I would like to thank the Minister for her comprehensive reply. I have two supplementary questions for the Minister. Residents in new and developing estates often complain about inadequacy of public transport, especially bus services. When requests for more services were raised to the public transport operators, the answers that came back often blamed the lack of critical demand and the cost-effectiveness of adding more services. I see it as a chicken-and-egg phenomenon.

With the lack of a good public transport network in new estates, residents are forced to turn to private vehicles. How will LTA taking over the central planning of bus routes be able to resolve this conundrum? Or is the poor utilisation rate a manifestation of the general public's dissatisfaction with our public transport system?

Sir, for new estates, typically the public transport operators will be given preliminary information ahead of the actual operation of the estates. They will be given information by the HDB on how the estate would be laid out, the profile of the blocks and the density of the estate, including key installations like schools. They would also be given information by the LTA on the road layout as well as the location of major infrastructure like the rail lines and where the stations would be. This would enable the public transport operators to assess the density and to plan for basic services to serve the new estates, based on some assumptions. As the families start to move in, the public transport operators will continue to do more ground surveys to verify some of the assumptions as well as to track the patterns of moving in. In other words, the public transport services will necessarily have to evolve along the way, based on a lot of the feedback from the constituents as well as the public transport operators' own assessment. LTA's role as a central bus planner will be crucial in that LTA will seek to optimise the infrastructure that is already planned in the estate, for example, the rail line and the stations, all with the intention of optimising these by linking bus services to the hub itself. What LTA will do, which has already begun, is to consult the advisors as well as the grassroots leaders and the public at large to check what the travel patterns might be and whether there is a critical mass. And the public transport operators will actually provide the services ahead of the established demand. But this would largely be an evolution for the first few years.

There is another second part of my question which is about the general perception that maybe Singaporeans are just generally unsatisfied with the public transport system or the services that they provide to the public.

Sir, if this is asked in relation to the survey findings, let me reiterate the fact that the drop in the public transport mode share is largely attributed to the combination of a lack of major infrastructural work between 2004 and 2008 against the increase in vehicle population. It is not so much the drop in satisfaction levels. In fact, if I may inform the House that the annual public transport satisfaction surveys conducted over the past few years have actually shown an increase in satisfaction. According to the survey conducted in October last year, which is the survey 2008, 89.5% of respondents, or about nine in 10, were satisfied with the overall public transport services in Singapore. This is three percentage points higher than the 86.5% in 2007, which is itself higher than the 84% rate achieved in 2006.

Mr Viswa Sadasivan, last question.

Could I have the Minister's assessment as to what could be the single most important factor that is impeding the migration of private transport usage to public transport usage?

I would like to urge the Member to read the entire Report on the Land Transport Masterplan (LTMP) because the main thrust is that we need to do a whole suite of things, ie, providing the public transport infrastructure, improving the services as well as moderating car usage. So we need a whole combination of measures and not just one single measure that will achieve that shift.

10. Mr Christopher de Souza asked the Minister for Community Development, Youth and Sports (a) if he will provide an update on the types of community-based initiatives which have provided platforms for Singaporeans and new immigrants to integrate and gain understanding of one another; and (b) what are the examples of such current initiatives.

11. Mr Teo Siong Seng asked the Minister for Community Development, Youth and Sports (a) what measures and programmes are put into place to help new immigrants integrate into Singapore society; and (b) what special incentives are being extended to encourage the ethnic Chambers of Commerce and Industry and other trade associations to play a proactive role in helping the new immigrants and foreign workers to adapt and work in harmony alongside our Singapore workers.

Mr Speaker, may I have your permission to take Question Nos. 10 and 11 together?

Yes.

Mr Christopher de Souza and Mr Teo Siong Seng have both asked about programmes that we have to help integrate new immigrants. Let me start by saying that this is a long-term, multi-faceted and complex challenge that all stakeholders in our society, and not just the Government, will have to take up. First, Singaporeans have to understand the need for immigrants and be comfortable with the social adjustments that are needed in order to maintain an open and welcoming society. We do so with our own enlightened self interests in mind. Second, the new immigrants must subscribe to our core values of multi-racialism and meritocracy in a fair and just society. Third, we need to build more social bridges to connect these new Singaporeans to the already existing much larger pool of Singaporeans in order to build a larger united and cohesive community. The children of new immigrants must grow up and be indistinguishable from the children of local Singaporeans. That is the way we build a long-term united society.

We are looking at the existing community bonding initiatives, and all these encourage broad-based participation by both locals and newcomers. Let me give Members an example. The Tampines East grassroots organisation organised an International Water Festival in April this year – this was an occasion to celebrate the New Years of both our Indian as well as our Indo-Chinese communities in Singapore. We encourage locals and newcomers alike to participate in these community activities and to use them as an opportunity to expand their social circles.

The National Integration Council (NIC) was set up in April this year. It does its work through four working groups which aim to promote integration in, first, the community, second, in schools, third, in the workplaces and, fourth, in the media. The NIC will consolidate the existing orientation programmes for new citizens, for instance, we are reviewing the National Education Experience Programme (NEEP) and we are also looking at introducing a more former Naturalisation and Integration (N&I) Journey. The Naturalisation and Integration Journey will leverage on interactive online components as well as meaningful site visits so that our new citizens can get a better idea about our history, our social norms and our core values. They will also be introduced to our grassroots communities and be encouraged to take part in their activities.

The NIC is also reviewing the citizenship ceremonies, which are, in a sense, the culmination of a newcomer's Naturalisation and Integration Journey. We have to make these ceremonies more significant and more meaningful for both the newcomers and equally important the family members of newcomers as well as the larger community that will eventually envelope and surround these newcomers.

Another key ongoing initiative is the People's Association's Integration and Naturalisation Champions (INC) programme. These are active grassroots leaders. The first batch of them was appointed in 2007. The Integration and Naturalisation Champions play a crucial role in seeking out and welcoming newcomers into the neighbourhood and encouraging them to join and participate in community activities. We now have about 640 of these Integration and Naturalisation Champions. And I must say that even amongst these leaders are some new immigrants who themselves are now volunteering their time and energy to help other newcomers settle into the local neighbourhood.

Volunteering is a good way for newcomers to be plugged into the wider community and it is an excellent way to get to know their neighbours and also to demonstrate their commitment at the local neighbourhood level. We now have newcomers who have volunteered in various grassroots, community and professional committees. In fact, currently, we have about 4,500 new immigrants who are serving as grassroots leaders. In addition, the Working Group for Schools is exploring ways for students from both our national as well as our Foreign System Schools to participate in joint community involvement projects.

We will also be working on increasing awareness among new immigrants of the opportunities to volunteer in areas which they are interested in. For instance, Singapore Cares will set up a volunteer matching platform which will provide a team-based volunteer-led programme which will allow people to provide their efforts in voluntary work on a part-time basis, on a flexible basis, in areas which they truly are interested in. We will provide a Kindness Exchange which is an online "meeting place" that will match professional services and the needs of voluntary welfare organisations with the available pool of volunteers and we hope that new Singaporeans will also take advantage of this exchange.

We recently launched the Community Integration Fund (CIF). This is a $10-million fund which will provide co-funding of up to 80% for social integration projects over the next three years. This will help promote programmes that will bring newcomers and locals closer together. These programmes can be put together by a wide variety of organisations, be it community organisation, grassroots organisation, educational organisation, industry association or the Chambers of Commerce. For example, the Singapore Indian Development Association (SINDA) formed an Indian Integration Committee, and this Committee has hosted various dialogues, and I think some Members of this House have also participated in these dialogue sessions. The Singapore Federation of Chinese Clan Associations (SFCCA) has also reached out to Chinese newcomers, in a sense continuing their traditional role of helping newcomers sink roots into the local community and to be plugged in while still engaging and preserving their ethnic heritage.

Mr Teo asked about special incentives being extended to encourage ethnic Chambers of Commerce and Industry. Currently, there is already some work in progress. I am sure the Member is aware that the Singapore Chinese Chamber of Commerce and Industry (SCCCI) has formed a new Immigration Liaison Unit which helps newcomers to integrate within our society and, I suppose, more specifically within the business community. This is a laudable project and one which we would be most happy to support. The National Trades Union Congress and the Singapore National Employers Federation have also jointly set up the Migrant Workers Centre, which aims to facilitate a harmonious co-existence between both local and foreign workers. We also have professional bodies like the Institute of Engineers which is looking to attract new immigrant professionals into their fold so that these members can benefit from the networks and their mutual exchange of both knowledge and contacts that these institutes provide.

All these initiatives form a good start, and I would like to encourage all the Chambers of Commerce, the industry organisations, the unions and the professional bodies to do their part to integrate newcomers into the larger Singaporean pool. As we embark on this, let us also remember that we must do so in a way which is natural, in a way which celebrates both the contributions and the cultures of both newcomers as well as local Singaporeans. And the CIF funds will be made available for all these efforts.

Both locals and newcomers must realise that integration is a two-way process and it does not come about by accident. Much effort and commitment will be required from all of us in order to make integration work, and I encourage newcomers to be proactive in learning about Singapore, widening their social circles, participating and contributing to the larger Singapore family.

Thank you, Minister, for your informative reply. Moving from the base plate of policies that he has explained to us, could we move further to ensure that further policies are in place to prevent enclaves from happening? I think integration is one thing but we need to have our new immigrants, our fellow Singaporeans and our new Singaporeans live alongside us. Hence, is there anything that we can do to ensure that we remain geographically multi-racial?

I think the Member has touched on an important point. Actually, it is a long-standing policy of this Government to ensure that there are no ethnic ghettos in Singapore. This is a point which we will study carefully and I will recognise that in a similar sense, we do not want to promote the formation of newcomer ghettos in Singapore. And this is something which we will certainly discuss in greater detail with the Ministry of National Development.

Thank you, Minister, I have a supplementary question. Given that male immigrants have not done and do not have to do National Service, how do we assure Singapore citizens who have this vital contribution is recognised, so that there is less resentment on the ground?

This is another sensitive point which I think most of us can identify with, since all of us have to serve National Service. For a variety of reasons, we currently exempt first generation permanent residents and those who become citizens in the later years. I do not want to get into the technical, operational and security reasons as to why we do not currently enlist them for National Service, but the point is that their children will do National Service. And their children should be indistinguishable from our children in their accents, hopes, aspirations, obligations and their duties to our nation.

Mdm Halimah, last question.

What the Minister said is that new immigrants must also subscribe to our core values. But would the Minister consider it desirable or possible to also request that new immigrants or those who apply to be citizens to sit for a test? This is to ascertain whether they really know about our core values and how our society functions, which is something that is already commonplace in many countries.

Mr Speaker, I thank the Member for that interesting and, I think, quite sensible suggestion which we will study.

12. Mr Chiam See Tong asked the Deputy Prime Minister and Minister for Home Affairs for the nine-year period since 2000 (a) how many foreigners were successful in their application for permanent residency (PR); (b) how many of these permanent residents have given up their PR status; and (c) how many new PR applications have been received.

Mr Speaker, from 2000 to 2008, an average of about 74,500 foreigners submitted applications for Permanent Residence each year. For the same period, an average of 46,300 applicants were successful in their PR applications each year. An average of 2,200 PRs renounced their PR status over the same period. Sir, the number of persons applying for PR and the numbers of persons granted PR have been increasing steadily in recent years. This was due to two factors: the strong economy and the need to augment our population. A booming economy with economic growth of 6% to 8% between 2004 and 2007 meant also that we needed to take in more foreigners to work here. Most of these foreigners are transient, here to work and not to stay long term. But a good many who are well-qualified with university degrees or diploma qualifications, or skilled personnel and professionals, decided to stay longer and applied for PR. The other reason was to augment our population. As Members are aware, we have a low fertility rate of 1.

28. If we close our doors to immigrants, our population will age rapidly and start to decline by 2020. This will affect us adversely. We will lose our economic dynamism and competitiveness as a city state. The burden on Singaporeans will increase. The Government recognises that some Singaporeans feel anxious about the large inflow of foreigners in recent years. We should not think that all foreigners here are PRs. In fact, a very large proportion of these foreigners are non-residents such as foreign workers and foreign students who are here on short-term passes. In other words, they are here on a transient basis and will leave Singapore one day when their services are no longer needed by their employers or when they have finished their studies. There are some who are on long-term visit passes and they are sponsored by Singaporeans. To put this in perspective, as of June 2009, there were about 1.253 million non-residents in Singapore as compared to 533,000 PRs. Singapore needs to bring in a continuing inflow of immigrants to augment our population and enhance our economic competitiveness. However, the Government is mindful of the concerns of Singaporeans. We will manage the inflow of immigrants taking into consideration how quickly our society can absorb and integrate these new immigrants without diluting our national identity or weakening our social cohesion. Such a sustained and calibrated inflow of immigrants will ensure that Singaporeans benefit from immigration in the long term.

Mr Chiam, any supplementary questions?

How serious is the problem generally perceived by workers that foreigners are taking jobs from Singaporeans?

I think this perception is not correct. We need foreign workers to come here to do the jobs that our industries and economy need. Without them, many of our companies which are here today probably will be relocated elsewhere.

13. Ms Sylvia Lim asked the Deputy Prime Minister and Minister for Home Affairs (a) how many Home Team officers, and from which law enforcement agencies, were taken out of their ordinary duties in their respective units and deployed for the APEC meeting in November 2009; (b) other than the Home Team, which other state agencies supplied manpower to cater for security arrangements during the meeting; and (c) to what extent (in percentage terms or numbers) were the respective units functioning below ordinary staffing levels during this period.

Mr Speaker, Sir, the successful organisation of APEC Singapore 2009 reflected the collective effort of various Government agencies and stakeholders. And we are proud to have delivered a positive and memorable "Singapore Experience" for 15,000 delegates and visitors. As host for a major international event such as APEC, it is our duty to ensure the safety and security of delegates and Singaporeans. To do anything less would be irresponsible. To this end, various security measures were implemented at the meeting venues. On average, each day, during the APEC Leaders’ Week, we had about 1,300 Police officers deployed on the ground to perform security duties. This comprised about 950 regular Police officers and about 300 Police NSFs. Apart from the Police, some SAF officers were also deployed at the peak of the event to assist.

During the APEC Leaders’ Week, operational units in the Home Team were able to continue to function at close to their ordinary staffing levels. The performance of key functions was not compromised. Key frontline units continued to have the necessary manpower and resources to carry out their operations effectively. This was achieved through careful forward planning. First, we minimised the number of officers who had to be re-deployed away from key frontline operational units like the Neighbourhood Police Centres. We also regulated leave and activated off-duty personnel, and temporarily put on hold some of the functions such as training. Second, we augmented our numbers by recalling NSmen as well as contracting Auxiliary Police Officers and unarmed Security Officers to help manage security operations. In addition, many voluntary Special Constabulary Officers also stepped forward to help out the Home Team. With these arrangements, we were able to reduce the staffing requirements for APEC to a manageable level. This I understand is a relatively lean number compared to the number of officers deployed at previous APEC meetings in other countries.

We also know that an event like APEC would put a lot of pressure on our officers to do a good job to ensure that our visitors and Singaporeans are not too greatly inconvenienced. Our officers were also expected to deal with the security threats or other law and order issues. Hence, we put in place several measures to monitor the morale of our Home Team Officers throughout the APEC preparations, before and during the APEC Leaders’ Week. The reports from our psychologists who conducted these morale-sensing measures found that Home Team Officers’ morale was consistently high. Prior to the Leaders’ Week, our psychologists conducted Focus Group sessions with Home Team officers. Feedback collected was immediately raised to management so that any issues or concerns could be resolved before operations commenced. During the APEC Leaders’ Week, dedicated teams of psychologists and welfare officers continually monitored morale on the ground. Issues raised by officers were surfaced daily to senior commanders so that they could be quickly addressed. Sir, the APEC gave Home Team officers the opportunity to contribute to a milestone event of national and international significance. Home Team officers were proud to be part of this effort. The officers understood the importance of their roles in the challenge of keeping the delegates and Singapore safe and secure. I highly commend all our officers for sacrificing their time to undertake such an important duty successfully. We have many reasons to be proud of the successful hosting of APEC. Unlike some previous APEC meetings in other countries, Singapore’s APEC meetings went on peacefully without security problems, mass protests or law and order problems. And this was achieved without having to shut down the city centre and declare a public holiday like in some countries. The delegates and many visiting business leaders thanked Singapore for handling the arrangements, including the security arrangements, effectively and efficiently. This would not have been possible without the collective efforts of all stakeholders and a cooperative public, who, like the Home Team, recognised the importance of keeping the Singapore flag flying high. Our officers know that their extra efforts were for an important cause and also know that Singaporeans and the Government are grateful to them for the part they played in maintaining security throughout the APEC meetings.

14. Dr Lim Wee Kiak asked the Minister for National Development (a) what is the total number of permanent residents (PRs) who own HDB flats and the distribution pattern of PRs in the various public housing estates; (b) whether his Ministry will ensure that there is a good mix of PRs in the various housing estates to encourage better integration with Singaporeans; and (c) whether his Ministry will consider expanding the current policy on racial mix for HDB flats to include PRs.

You have three minutes, Mr Mah.

Sir, our public housing policies are designed for the benefit of Singaporeans. We have reserved new HDB flats for Singaporean households. Only Singaporean households are eligible to buy new HDB flats and receive our generous housing subsidies. Permanent Resident (PR) families are not eligible for housing subsidies that Singaporeans enjoy. They are not allowed to buy a new flat from HDB or enjoy any housing grant. However, PRs need a home in Singapore. Therefore, they are allowed to buy properties from the open market, including HDB resale flats.

PRs are subjected to all the same HDB rules as Singaporeans, including the Ethnic Integration Policy (EIP). The EIP was introduced to achieve a healthy racial mix in HDB estates and prevent the formation of ethnic enclaves, regradless of whether they are citizens or PRs. By providing HDB residents of different races with more opportunities to interact as neighbours, the EIP fosters inter-racial understanding and strengthens social cohesion in Singapore.

As at 30th June 2009, there were 533,000 PRs in Singapore, making up 14.3% of Singapore's total resident population. PR households own a total of 42,800 HDB flats as at 30th June 2009. This constitutes slightly under 5%, or 4.9% to be exact, of all HDB households. PR households are found in all HDB towns and estates.

Sir, assimilation of PRs is an important national objective. As the Member suggest, a good mix of PRs in HDB estates is important. My Ministry will keep a close watch on the distribution of PRs living in HDB estates. Where necessary, we will consider measures to prevent the congregation of PRs and foreigners.

3.00 pm

Order. End of Question time.

[Pursuant to Standing Order No. 22(3), Written Answers to Question Nos. 16-20, 23, 25-30, 32-33, 36-37, 39, 41-42, 44, 46-51 on the Order Paper are reproduced in the Appendix*. Question Nos. 15, 21-22, 24, 31, 34-35, 38, 40, 43, 45, 52 have been postponed to the next available sitting of Parliament.]

*Cols. 1759-1802.

"to amend the Moneylenders Act 2008 (Act 31 of 2008) and to make related amendments to the Banking Act (Chapter 19 of the 2008 Revised Edition), the Immigration Act (Chapter 133 of the 2008 Revised Edition) and the National Registration Act (Chapter 201 of the 1992 Revised Edition)",

presented by the Senior Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"to amend the Statistics Act (Chapter 317, 1999 Revised Edition)",

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

"to amend the Government Securities Act (Chapter 121A of the 2002 Revised Edition)",

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

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

presented by the Senior Minister of State for Law (Assoc. Prof. Ho Peng Kee); 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.

3.03 pm

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

The Income Tax (Amendment) Bill 2009 comprises two categories of legislative changes. The first category puts into legal effect the income tax changes announced in the 2009 Budget Statement. The second category covers other amendments to the Income Tax Act arising from regular reviews to improve our income tax system.

The Income Tax (Amendment) Bill was released for public consultation from 22nd June to 14th July this year. The Ministry has revised the Bill to incorporate the public feedback received.

Sir, the key tax changes have already been debated upon in this House following the announcement in the 2009 Budget Statement. Let me summarise some of these key changes which are covered by this Bill. I shall begin with the permanent changes:

Firstly, the reduction of the corporate income tax rate from 18% to 17%, with effect from the Year of Assessment 2010, to enhance Singapore’s attractiveness as a business hub and to spur entrepreneurial activity. This change and its consequential amendments are covered by clauses 33(b), (h) and 36 of the Bill;

Secondly, the introduction of a new corporate amalgamation framework to ensure that most of the tax consequences of a continuing business will apply to the amalgamated company, thus making it easier for companies to restructure and rationalise, as effected through clause 23; and

Thirdly, an enhancement of the incentives for promoting fund management to further strengthen Singapore as a hub for fund management. These changes are covered by clauses 8, 9(f), 13(a) and 14. Sir, let me now cover the key one-off or temporary measures which were part of the Resilience Package announced during Budget 2009.

Firstly, the enhancement of the existing capital allowances regime and loss carry-back relief scheme to ease business cashflow, and the liberalisation of foreign-sourced income exemption to help businesses meet their financing needs in Singapore. Clauses 7(c), 18, 19, 21, 26, 27, 28(b), 29 and 30 of the Bill provide for these changes; and

Finally, the granting of a one-off 20% personal income tax rebate, capped at $2,000 for YA2009, to reduce the tax payable by individuals. This is aimed at providing immediate cashflow relief to taxpayers. Clause 41 of the Bill provides for this change.

Sir, I shall now deal with the other tax changes which require amendments to the Act arising from our ongoing regular review. Let me highlight three of these changes.

Firstly, the removal of the Commonwealth Tax Relief. Currently, we grant the Commonwealth Tax Relief (CTR) to our tax residents for income derived from and taxed in Commonwealth countries which do not have an Avoidance of Double Taxation Agreement (DTA) with Singapore. This relief will be removed with effect from Year of Assessment 2010 to rationalise the various tax reliefs for alleviating double taxation for our tax residents. This removal of the now obsolete relief takes into account enhancements to the tax regime over the years, namely the introduction of foreign-sourced income exemption for income remitted on or after 1st June 2003 and the extension of Unilateral Tax Credit (UTC) for all foreign-sourced income from non-DTA countries from YA2009. Clauses 37 and 40 effect this removal of the Commonwealth Tax Relief.

Secondly, we will exclude from withholding tax, management fees paid to related persons outside Singapore for services performed outside Singapore. This is in line with the policy intent not to deem the income from certain services performed outside Singapore, to be derived from Singapore. Clause 6 effects this change.

Thirdly, we will provide for the avoidance of doubt that the arm’s length principle, an internationally accepted standard, is to be adopted for all related party transactions. This amendment provides explicitly that the Comptroller of Income Tax may make adjustments to the profits of a taxpayer in a related party transaction if that transaction is not carried out on an arm’s length basis. Clause 24 effects this change.

Sir, as for the remaining 11 legislative changes arising from our periodic review, they are either technical in nature or relate to improvements in tax administration.

With the above changes, the Income Tax Act will be enhanced and updated to better achieve our economic and social objectives.

Sir, I beg to move.

Question proposed.

Mr Speaker, Sir, thank you for allowing me to speak on the proposed Income Tax (Amendment) Bill, specifically on clause 33, Amendment of Section 43(b). This allows the reduction of the corporate tax from 18% to 17%.

Post crisis, this amendment seem in line with tax movement in the world as well as in Asia. There have been many media reports on world economies slashing their tax rates to retain and attract investments. One such report was carried in the Straits Times in October this year. It is therefore timely that we also review our tax rates and its effectiveness.

Currently, we rank third in the region for our low tax rates after Macau at 12% and Hong Kong at 16.5%. Unlike the West, the Asia-Pacific region still holds an average tax rate that is relatively in line with its previous year – falling from around 28.4% to 27.5% – an approximate of 0.9% drop. Therefore, our reduction of 1% is relative to the average tax reduction in the region.

Nevertheless, we are still considered by many as a tax haven and this posed certain challenges with the crackdown by OECD on tax havens sometime back. But I am heartened to read that we are progressing well in graduating into OECD white list. This boost confidence between cross-border tax transparencies and investment will certainly help Singapore.

As an advocator for workers, especially in these challenging times, I believe that these changes will improve our competitive edge and help retain as well as attract jobs for Singaporeans. Only when the economy thrives and people have jobs can we progress as an inclusive and competitive society. Besides low taxes, we also have a single tier tax rates and moreover, we do not tax on capital gains. These advantages, offered in an environment on par with developed economies put Singapore in a better position to attract and retain investments but that is not all.

Over the years, we have painstakingly forged a strong tripartite relationship that enhances our competitiveness by ensuring stability in the way we resolve conflicts. This is our foundation for success and we must zealously continue to guard it.

Other strategic advantages we offer businesses are our locality, our operational efficiency, a harmonious living environment among the many religions and races. Our high standard of living is certainly an advantage but it also comes with a cost and many workers are concerned that this cost will further rise while their income diminishes. This is especially worrisome for the low wage, casual workers and the middle income sandwich class. Definitely this has an impact on our social, economic wellbeing.

Sir, as we read further, on this global trend in tax slashing across the world, the study also states that indirect taxes will likely increase to fund government budgets. Indirect taxes can hit companies as well as individuals. Therefore, I feel it is important that this amendment be sustainable and that the common man on the street must understand the long term effect of our decision.

Having said so, I would like to ask the Minister: what the impact on Government tax revenues does this reduction have? How will the Government make up for the loss in tax revenues or are there alternative measures in coping with this fall in revenue?

Mr Speaker, Sir, though I rise to support this amendment, and also feel it is timely, I am concerned about how these changes can affect the common man on the street in the longer run.

Sir, first allow me to thank Mr Terry Lee for his support of the Bill. I agree with the Member's observation that many countries now compete on the basis of attractive tax rates, especially post crisis, but allow me to share with Mr Lee and Members of the House some of the guiding principles on how we set our tax rates.

Firstly, our tax rates must indeed be competitive, relative to the alternatives that investors have. However, I would like to reiterate that Singapore is not a tax haven. We are a real economy with substantive businesses.

Secondly, taxes are but one component of what it takes to be a conducive business environment and Mr Lee has rightly pointed out that there are other equally important attributes such as a quality workforce, a strong tripartite relationship, political stability, rule of law and so on. So we need to preserve, if not enhance, these attributes as well.

Thirdly, our headline tax adjustments are designed for the long haul. This is in recognition of the long-term perspective that serious investors take. Hence we consider very carefully to see if our fiscal position can allow these adjustments before making them.

Sir, our overall fiscal strategy is one of spending prudently and living within our means. Mr Lee has expressed concern about how much the tax foregone would be and how the Government would make up for this loss.

The estimated tax foregone would be about $400 million to $500 million per year in the steady state. The reduction in the corporate tax rate is really an important part of our overall strategy to restructure revenue sources. If I may just recap for the House, steps were taken earlier on to raise revenues from other sources. In 2007, we increased the GST rate from 5% to 7% and in 2008, we revised the framework for spending investment returns from reserves to one based on the long-term expected returns which will enable us to tap on more of these returns. I would like to assure Mr Lee that the increases in revenue from these two sources would be more than sufficient to offset the reduction in revenues from the corporate tax reduction.

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. – [Mrs Lim Hwee Hua].

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

Order for Second Reading read.

3.17 pm

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

Sir, before I commence my speech on the Bill, I would like to express my deepest condolences to the family of the late Lieutenant Chee Zhi Hao and the family of the late Lance Corporal Mar Teng Fong, two servicemen who are being laid to rest this week.

Sir, the Bill before this House seeks to amend the Singapore Armed Forces Act to effect key enhancements to the military schemes of service for the Singapore Armed Forces (SAF). These enhancements will ensure that the SAF can continue to offer an attractive career proposition to bring in and retain capable, committed and competent people for the defence of Singapore.

Strategic imperatives

The last major review of the SAF career schemes was conducted over a decade ago. The manpower landscape and the needs of the SAF have shifted significantly since then, in particular, we face two strategic human resource (HR) challenges.

First, the demographic and educational profile of our population is changing. The number of Singaporeans aged 17 to 25 entering the workforce each year will start to decline from the year 2015 onwards. Also, young Singaporeans entering the workforce today are better educated and aspire for more challenging and responsible jobs commensurate with their qualifications. Today, 25% of each cohort graduate with degrees while 42% graduate with diplomas. In addition, 50% of diploma holders expect to subsequently go on to obtain degrees. This provides the imperative as well as the opportunity for the SAF to restructure its careers for good diploma level entrants to provide them with better opportunities for self-development, job growth and advancement. This will also allow the SAF to make full use of the potential of these servicemen.

Second, the SAF is transforming into a leaner and more potent Third Generation SAF that leverages on advanced technology and sophisticated systems. We still need people with leadership ability, dynamism and high levels of physical and mental energy. But, in addition, we need people with deeper specialisation, broader knowledge and more experience to fully exploit these advanced technologies, and to operate our more complex military systems. Our HR policies and schemes of service must therefore evolve to address these strategic challenges.

Strategic response by MINDEF

Over the last two years, MINDEF and the SAF conducted a fundamental review of our military schemes of service in order to better match the aspirations of our people and potential recruits with the evolving HR needs of the Third Generation SAF. We will be making significant changes in three key areas.

New military domain experts scheme

First, we will introduce a new military uniformed scheme of service in the SAF called the Military Domain Experts Scheme. This new scheme will complement the existing Officer and Warrant Officer schemes. The Military Domain Experts Scheme will allow us to build and retain deep professional expertise and experience in critical military domain areas such as technical, engineering and intelligence. It will also allow us to fully develop our current servicemen who are in these lines of work. It will also attract the more technologically savvy polytechnic and degree graduates who want to work with cutting-edge systems and advanced technologies but are not so inclined to join the traditional Officer or Warrant Officer schemes. It will also facilitate mid-career professionals with the relevant expertise to join the SAF.

Personnel who join the new scheme will be known as Military Experts. Military Experts will enjoy a longer career with the SAF on full CPF up to the age of 60. The longer career will allow them to develop specialisation and deep expertise as well as the necessary experience on the job required for key military domain areas. They will advance along an eight-rank structure – Military Expert 1 to Military Expert 8, with the pinnacle rank being Military Expert 8 (ME8). ME8 will be equivalent to a Brigadier General in terms of job size. The entry rank for degree holders is ME4. Servicemen who hold the rank of ME4 or above will be known as Senior Military Experts.

Military Experts will be given opportunities to upgrade themselves academically and professionally. They will be offered attractive market-based remuneration. Progression will be based on the individual's level of professional expertise and the ability to take on higher professional responsibilities in their expertise domains. On the other hand, in the Officer and Warrant Officer Corps, progression depends significantly on command ability.

Our servicemen who are currently in vocations under the military domain areas identified for the Military Domain Experts Scheme will be given the option to convert to the new scheme of service. They will be offered a fair package to transit to the new scheme of service.

Enhanced Warrant Officer scheme

Second, we will enhance the Warrant Officer scheme of service. Our Warrant Officers form the backbone of the SAF. They set high standards in tactical war-fighting and training, and are the repositories of the values and knowledge in the SAF.

With the creation of the Military Domain Experts Scheme, the Warrant Officer Corps will be leaner and more focused. Their jobs will be redesigned and restructured to focus on combat leadership roles, and to anchor the key SAF competencies in leadership, tactical war-fighting expertise and training supervision. They will continue to work in support of and in partnership with the Officers.

We will introduce a new Third Warrant Officer rank. This will allow those with the potential to reach the Warrant Officer rank to be promoted to a Warrant Officer rank earlier. Under the enhanced scheme, the best can become a Warrant Officer as early as the end of their sixth year in service compared to 12 years under the current scheme. This new Third Warrant Officer rank will be an important milestone to signal to a serviceman that he has the potential to rise up through the Warrant Officer ranks and hold greater responsibilities. Those who do not attain the Third Warrant Officer (3WO) rank can continue in their jobs until their retirement age, at age 50, so long as they are able to contribute. The retirement age for the Warrant Officers will remain unchanged at age 55.

To meet the aspirations of our servicemen to upgrade themselves academically early in their career, we will offer early degree sponsorships to promising servicemen with the potential to become Warrant Officers. Currently, they may be sponsored for degree studies only from their sixth year of service. Under the enhanced scheme, we will provide opportunities for them to embark on their studies as early as the end of their second or third year of service.

We target diploma holders with strong leadership qualities to serve as Warrant Officers of the Third Generation SAF. These changes will enhance the career proposition and make it more attractive to join the Warrant Officer Corps.

Enhanced Officers' career scheme

Third, are the changes being made to the Military Officers' scheme. The current Officer career which is compact, fast-paced and challenging, with the retirement age in the mid-40s, has enabled the SAF to retain a dynamic and forward-looking Officer Corps. Officers receive a lump sum payment at the end of their career with the SAF. They then transit to a second career in another path of public service or the private sector.

The Third Generation SAF will continue to require dynamic and vigorous leadership. We will thus keep the Officer's career compact, fast-paced and challenging. At the same time, however, Officers in the Third Generation SAF need more time serving ground tours and would also need time for more in-depth professional development in military leadership and advanced operational and technological capabilities.

Hence, instead of retiring in their mid-40s, SAF Officers will have their career extended till age 50. This extension is provided for all existing Officers, but they have the choice of retiring at the current retirement age with their current retirement benefits. In other words, the option to stay on till age 50 is with the Officers, so long as they continue to perform their duties diligently and well.

In addition, the SAF will introduce a new Senior Lieutenant-Colonel rank next year. This new rank will recognise the larger responsibilities and supervisory roles of certain Lieutenant-Colonel appointments in the SAF, for example, the Brigade 2IC appointment.

In summary, we will have three military schemes that have distinct roles and functions. The Officer Corps will continue to provide the senior military leadership; the Warrant Officer Corps will provide leadership to the rank and file and take on greater responsibilities in tactical training; the Military Experts will anchor deep professional expertise for key military domain areas for the SAF. Each of these three schemes of service will offer opportunities for personal and professional development, job growth and advancement, so that our servicemen can fulfil their aspirations and the SAF can benefit fully from their potential. The changes to the SAF's military schemes of service will be implemented on 1st April 2010.

Key provisions of the Bill

Mr Speaker, Sir, the SAF (Amendment) Bill will provide the proper legal framework to effect the key changes to the military schemes of service for the SAF. Please allow me to highlight some aspects of this Bill.

For the new Military Expert, Third Warrant Officer and Senior Lieutenant-Colonel ranks, the Bill proposes to amend the various provisions within the SAF Act to fit these new ranks into the current military law and discipline structures, and accord them the relevant disciplinary powers. A new section 10C has been introduced to provide for the appointment and cancellation of appointment of Senior Military Experts by the President or the proper authority. Amendments are also made to section 118 to reflect the appropriate scale of punishment that such personnel can be awarded by the sentence of a subordinate military court.

A new section 205D has been proposed to allow for the change of ranks when servicemen are transferred from the Military Domain Experts Scheme to the Officer or Warrant Officer schemes. This is intended to cater to two situations.

First, a Senior Military Expert might resign or be released from regular service before he completes the prescribed minimum term of service. This minimum term of service is a period of regular service needed before he is deemed to have fulfilled his full-time National Service liability. He might then have to be transferred to the Warrant Officer scheme with an appropriate rank to serve out his remaining term of fulltime National Service.

Second, a Military Expert, who has served the minimum term of service and who resigns or is released from the SAF, may have to be assigned to a suitable post to serve his operationally-ready National Service. The amendments in section 205(d) provide for the transfer of these operationally-ready National Servicemen to the Warrant Officer Corps at the appropriate rank to serve their operationally-ready National Service if there are no suitable MDES appointments. Those who have been commissioned as officers will return to the Officer Corps in their operationally-ready National Service. This will be done taking into account their background and experience.

In view of the changes made to the SAF Act, there will also be a consequential amendment to the Enlistment Act which is required to subject Senior Military Experts to the statutory age of 50 for operationally-ready National Service. The statutory age is the same as that stipulated for officers in operationally-ready National Service under the same Act.

Sir, the SAF is the guarantor of our national security and peace. The SAF has developed into a strong, credible and highly capable Armed Forces today because of the quality, character and professionalism of its people. We need to continue to attract able and committed people to the Third Generation SAF. The enhancements to the SAF's military schemes of service enable us to continue to do so.

Sir, I beg to move.

Question proposed.

Mr Speaker, Sir, thank you for giving me this opportunity to speak on the Bill.

In May this year, MINDEF announced the introduction of the new Military Domain Expert Scheme (MDES), which is scheduled to take effect from 1st April next year.

To facilitate the implementation of the MDES, this Bill has been introduced to make the necessary amendments to the SAF Act. The MDES introduces a rank structure for Military Expert that is parallel to the existing Officer and Warrant Officer rank structure. The primary effect of the amendments proposed by the Bill is to bring the Military Experts appointed under MDES within the purview of the Act. The Military Expert will be entitled to exercise the same powers and will be subject to the same punishments for offences as his Officer or Warrant Officer counterparts. Indeed, the introduction of the MDES is a positive step towards refining the organisational structure of the SAF. From inception, the SAF has been made up of a myriad of professionals with a wide range of expertise.

Being a small island country, the SAF recognises that technology is crucial for overcoming the limitations posed by Singapore's small population. Technology is without a doubt an important element in the SAF's transformation into a Third Generation fighting force. Research and experimentation to develop a technological age began as early as in the 70s. Today, MINDEF is one of the largest employers of engineers and scientists in Singapore. However, the existing scheme for Officers and Warrant Officers is tailored mainly for combat-trained soldiers and servicemen. While over the years, engineers and specialists in military intelligence have been accommodated within this rank structure, it may not have been an accurate reflection of their expertise and job scope. The MDES will, in my view, serve to give due credit and recognition to this important group of professionally trained SAF regulars and clearly demarcate their roles within the SAF. I do however have a concern with the MDES parallel rank structure. Would the parallel rank structure result in the creation of a second class officer, a Warrant Officer within the service? While the amendments to the SAF Act expressly provide that the Military Expert of a certain rank is entitled to exercise the same powers as the Officer or Warrant Officer of the equivalent rank, the question is whether this is sufficient.

Frontline combat-trained professionals or personnel are often perceived as being superior in some ways, more important to their counterparts who are support personnel and who may not be at the frontline of battle. MINDEF and the Armed Forces have worked hard to dispel this fallacy. By implementing the MDES rank regime, will MINDEF be creating the perception that MDES officers are somehow less important than their counterparts? If so, this may defeat the purpose of the MDES as an incentivised scheme for the Military Experts. Perhaps the Minister can share how MINDEF can avoid this perception, arising from inception, and how it intends to deal with it if it arises in the future.

The other concern I have is with regard to retirement age. Under the MDES, Military Experts are able to stay in service until 60 years of age. Prior to the changes to the Officer's Scheme, Officers were expected to serve until the age of 45. When these officers retire at the age of 45, they are already at a borderline age where it may be a challenge for them to secure employment in the competitive private sector, given their advanced age and lack of relevant experience. Very often, even if they are able to find employment, they may have to accept a substantial pay cut. Will this situation be aggravated for MDES personnel who retire at the age of 60? They would have to compete harder with workers who already have experience and a track record in the private sector.

What opportunities will be open for MDES personnel when they retire at age 60? How will the re-employment legislation and the guidelines on re-employment of older workers affect this group of servicemen? While it is a good thing that those under MDES are able to remain in service for a longer time, the flipside of the coin is that when they do retire at age 60, many would still be bearing the financial burden of putting their children through tertiary education and maybe even still paying off their mortgage and other loans. Is age 60 too late in the day for a second career?

On a related issue, Sir, the original intention of the Savers and Premium Schemes for Officers and Warrant Officers respectively was to keep the SAF young and vibrant. MINDEF launched the Savers Scheme for the SAF regular officers more than a decade ago. It promised the SAF regulars a sum for their retirement upon completion of 23 years of active service with the SAF. During the introduction of this scheme, it was clearly stated that the objective was to keep the SAF young. Since the retirement age for the regulars has now been extended, can the Minister clarify if the Savers and Premium Schemes should continue to extend beyond the maturity and throughout this extended period?

Moving forward, I think that it would be good if MDES could be extended to other professionals such as the Medical Officers in the SAF Medical Services as well, beyond the engineers and specialists in the Military Intelligence domain who are currently envisaged to come under this scheme. The job scope of the military doctors and the specialisation that is required of them is more akin to the Military Expert than the combat-trained officer. Does MINDEF have any plans to bring the medical officers under the MDES and why have they not been included from the outset? The objective and focus of the MDES on encouraging development of their specialisation will benefit the individual. I believe that the SAF will also stand to benefit from the better expertise that their doctors are able to provide.

Mr Speaker, with that, I support the Bill.

Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 4.00 pm.

Sitting accordingly suspended

at 3.40 pm until 4.00 pm.

Sitting resumed at 4.00 pm

Debate resumed.

The Singapore Armed Forces is one of the largest public institutions, which started from scratch and developed into the state-of-the-art military we have today. Over the years it has evolved to adapt to changing needs, times and capabilities, expanding its roles to include civil military co-operation, humanitarian assistance as well as collaboration to support social operations. The changing global face of threats and terrorist activities, in a completely new security environment, calls for further strategic developments and enhancements. All these are in alignment with the introduction of the Military Domain Experts Scheme. With the transformation to the Third Generation (3G) SAF, there comes a greater need for professionalism and for professionals to possess deeper expertise in key areas or professional domains, as we call them. These Military Experts will be uniformed personnel trained in specialised areas such as engineering, nursing, technical military operations and even intelligence. I feel this is in alignment with the increasing expectations of our younger generation, who crave for more, who often ask, "What's in it for me?", who are considering to make the armed forces their preferred career choice. It is about developing excellence through professionalisation with the increasing level of education and qualifications we are seeing in our young of today.

The proposed changes to the terminology to be used (eg, Senior Military Experts), falls in place nicely as they certainly do give a more professional ring to the positions and the posts in alignment with the greater depths that will come with the revision and also enhancement in job descriptions.

With greater definition and delineation of posts and professionalisation, would come a need for greater training budget, remuneration and promotion packages, attachments, overseas postings and the like. There will be changes in job descriptions and responsibilities as well. Can the Minister please update us how on target we are with this and in implementing all the suggested changes? Also, one of the concerns I have is that, with the increasing of the retirement age of SAF personnel, once they exit from the Military, will they have an exit plan management for them? Perhaps, we can consider some collaboration or partnership with relevant companies to help these people in starting up their second career because as we know, with increasing age, certainly there will be challenges in looking for second jobs.

Finally, I support this Amendment Bill, in line with our practice of retaining talented, good and committed people, who are the only resource for our little red dot. The Military Domain Experts Scheme is a step in the right direction to nurture our men and women into military leaders: leaders with character, presence and intellectual capacity.

(In Malay): [For vernacular speech, please refer to Appendix A *.] The Singapore Armed Forces (SAF) serves Singapore, protects our national interests and carries the responsibility of defending Singapore. The introduction of the Military Domain Experts Scheme will help the SAF to continue working hard to pursue excellence, build its capacity and increase its professionalism. With the available choices provided, our young people will be given the opportunity to gain higher and deeper knowledge, in addition to enhancing their skills. I hope that the programme will also include features like core leadership competencies and life-long learning.

This scheme will also bring about a positive effect to the public in terms of their perception towards our military men and women, as they enhance their own confidence and resilience. They will become men and women who are able to think of solutions with proper judgment, by inculcating innovation, interpersonal tact and knowledge of their domain. This domain expertise encompasses tactical and technical skills as well as cultural and geo-political awareness.

With this, the SAF will become a strong institution that we can be proud of. But let us ponder for a moment. We did not achieve all these by chance. It was achieved through visionary strategic planning and a political will to build a military that is integrated, relevant and can adapt itself to any situation or challenges. Mr Speaker, I support this SAF (Amendment) Bill.

*Cols. 1821-1822.

Mr Speaker, Sir, thank you for allowing me to join in this debate. I speak in support of the Bill as the new class of specialist servicemen from the Military Domain Experts Scheme (MDES) will enable the SAF to defend Singapore even more effectively against the evolving threats among others, of terrorism and piracy. Today, counter-terrorism and counter-piracy measures take on even greater importance and urgency and require deeper involvement of the SAF. In addition to hardware (ie, fighting with rifles and machines) we need to keep pace, as a 3G SAF, with the rapid advances in technology involving sophisticated computerised machinery. Where the defence of our country is concerned, man and machine must work closely together to provide a more effective SAF.

Therefore, it is timely that our specialist soldiers be given more time and niche training to specialise in fields such as maintenance, air force engineering, naval warfare, air operations and systems and military intelligence. Such deep specialisation will enable them to study and train adequately to master the knowledge and skills necessary for them to be members of a high-tech 3G defence force.

The scheme also promotes nursing, which displays SAF's resolve to continue to provide responsive medical care to our soldiers. When I perform my reservist In-Camp Training, I continue to be impressed by how the SAF continues to use advances in computers and technology to make it an even more proficient force. The Scheme will help cement this force-wide practice.

The Scheme will also secure Singapore as one of the few Armed Forces in the world to have such a specialised corp. I believe that such innovation and resolve will assist in maintaining the high standards the SAF expects of itself. I share SAF's confidence that this forward-thinking strategy will offer even greater protection for Singaporeans and our country.

I support the Bill.

Mr Speaker, Sir, thank you for this opportunity to share my thoughts on this important Bill. The Bill addresses the development of a new SAF uniformed track, the Military Domain Experts Scheme, which will be implemented in the first quarter of 2010. This scheme is part of the Ministry of Defence's plan to build a strong and dynamic Third Generation Army. I appreciate the argument that a separate track for key military domains will allow the SAF to recruit, groom and retain talents for deep specialisation in engineering, intelligence, nursing, among other areas.

As a specialist track, the MDES has four distinctive noteworthy features which sets it apart from the existing arms of the SAF: a later retirement age (at 60 years), a remuneration scheme which comprises a variable component that is pegged to similar jobs in civilian industries, opportunities for professional and academic development and progression and a separate rank structure – which this Bill addresses in detail.

May I first comment on the implications of a separate specialist track on the SAF. I have a limited knowledge of the military so I humbly request that the Minister excuse me if I do not reflect all the facts in my discourse. Notions of social cohesion and esprit de corps are critical attributes of any military force. Effective combat performance is very much determined by the extent of group solidarity, both horizontal as well as vertical cohesion. An effective military must have soldiers who, in addition to having strong affiliation to his own primary group, they must also see and identify with the larger military organisation. If I may quote from Fredrick Manning's work on morale cohesion in military psychiatry, I quote, "High levels of esprit mean that the soldiers' loyalties go beyond their primary face-to-face peers and immediate leaders. This is an important step if morale is to be maintained in combat, for hard fighting will result in losses, no matter how good the unit is." In other words, for an Armed Forces to be effective, each and every soldier must identify with a singular, unified military.

On this point of promoting solidarity within the SAF, I would like to raise two questions. First, can the Minister comment on how a separate track, specialised corps, may affect social cohesion in the SAF. I am particularly concerned with the differential terms of employment for the MDES and how SAF personnel in the existing arms may view the extended tenure, professional development opportunities and, in particular, varied remuneration terms of colleagues in the MDES. Second, in order to learn from best practices elsewhere, can the Minister share with us other military forces which currently have similar structures, and how these have worked?

The SAF (Amendment) Bill tabled today addresses extensively the new rank structure in the MDES, and how this new rank structure will be integrated with the existing rank structure for the Army, Navy and Air Force. With your permission, Sir, I would like to focus on the possible implications of this new rank structure on the SAF. From my limited understanding of military forces globally, the Singapore Armed Forces is one of the few military forces which has a unified rank structure, with identical rank names and insignia for Officer, Warrant Officers, Specialists, and enlisted men throughout the Army, Navy, and Air Force. This varies from how the military is organised in the United States or the United Kingdom (which uses the NATO rank code). I see this unified rank structure as a strength, a structural characteristic that contributes to the esprit de corps in our SAF. With the development of the MDES, a new rank structure will also be created. This will further set the MDES apart from the Army, Navy, and the Air Force.

Sir, I have two questions relating to the new rank structure for the MDES. First, I would like to ask the Minister to share with us the rationale for a new rank structure for this new arm of the army. Why is a new rank structure needed for the MDES? What is the intent of having a separate and distinct rank structure for SAF personnel on this specialist track?

My second question is on the perceived impact of this new rank structure for the MDES staff on social solidarity in the SAF. A SAF personnel on the MDES will have to work side-by-side with uniformed colleagues in the Army, Navy, and Air Force. Will the different rank of an MDES soldier affect how he is received by the rest of the team?

While I appreciate the benefits of having a specialised military expert scheme that will serve to attract talent as well as grow deep specialisation and expertise that is essential for a Third Generation Military Force, we must also be mindful that the introduction of the MDES, with its differential terms of engagement and rank structure, will not cause segregation and result in a "separate but equal" organisational structure in the SAF.

These comments aside, I stand in support of the Bill.

4.15 pm

Mr Speaker, Sir, I would like to thank Dr Lam Pin Min, Dr Fatimah Lateef, Mr Christopher de Souza and Assoc. Prof. Paulin Tay Straughan who have spoken in support of this Bill. I would like to thank them for that and for their concern and support for our men in uniform, serving in MINDEF.

Let me try and address the questions that they have raised. Dr Lam Pin Min and Assoc. Prof. Paulin Tay Straughan asked if a parallel Military Domain Experts Scheme (MDES) would impact teamwork and social cohesion in the SAF and whether our military experts would be accorded the same military status and professional respect and be accepted as part of the team by their colleagues. We have already different vocations, based on different qualifications, training regimes, pay scales, and schemes of service in the SAF. These three schemes of service and what now, in particular the MDES do for us, is give us a wider scope to bring in and develop different types of people with different abilities, qualifications and aptitudes, and to meet their aspirations better as well as the needs of the Third Generation SAF better. If we were to try and fit everybody into the same mould – same progression rates, same types of training and pace, and same retirement ages – then, we would be sub-optimising our people. These new schemes of service allow us to achieve an optimal balance between the need for dynamism and the demand for deeper knowledge and expertise in certain fields. With these enhancements, the three schemes are complementary. We have the Officers, Warrant Officers and Military Experts, who will provide the SAF with the range of people that we need – leadership, and personnel and expertise to operate as an effective and credible fighting force.

I should stress that the MDES people will be in uniform and serve together with the Officers, Warrant Officers onboard ships, in airbases and in the field as well. Military Experts will be accorded – in status, in regimentation – practices similar to their Officer and Warrant Officer counterparts. And as military personnel, their status and salutation will be commensurate with their rank and appointment. It is important to recognise that Military Experts wearing the new and distinctive ranks are uniformed professionals who will be serving the same mission, sharing the same mission and value system as the other uniformed personnel in the SAF. Those in position of responsibility will be expected to manifest leadership and care for their people. And for those with deep expertise in their respective domains, whether they are soldiers, sailors or airmen, must continue to demonstrate strong commitment to the defence of our nation along with applying their professional expertise. And in any particular unit, the command structure of the unit will be determined by who holds those appointments. So if you are the Commanding Officer, or if you are in-charge of a particular section or division, then you hold the responsibility and have the powers that come with that appointment. This is provided for in the amendments that we are making to the SAF Act. So the command structure, the cohesion of the unit, the clear lines will still remain.

While there may be different schemes of service, Officers and Warrant Officers and Military Experts therefore operate still as members of a cohesive unit with a common mission. They work in partnership and leverage on our collective strengths to achieve the desired mission outcomes together.

Assoc. Prof. Straughan asked if other armed forces have a similar domain experts structure and she was also concerned about how the different remuneration, employment package and retirement age would be viewed by our Officers and Warrant Officers. Like us, other armed forces do have different vocations and schemes of service. We try and learn from other armed forces how they deal with similar situations, missions and structures. However, the SAF has reached the level of maturity where we cannot always find ready-made solutions elsewhere, and we must develop innovative solutions on our own to face our unique circumstances and be ready for the future. We do not know of a similar scheme in any other armed forces. But we do know that they do face the same problems, and they are not able to resolve them, many of them, with the same structure that they have. So many of them are looking at what we are doing, with considerable interest. So we design these three schemes, including the MDES, based on an analysis of what our HR environment is going to be. We consulted closely with the people who are in-service. We also asked the people who are going to join us, what their aspirations are; and we have designed it to try and meet those aspirations, and at the same time, meet the needs of the Third Generation SAF as best as we can.

Today, the retirement ages of Officers and Warrant Officers are already different. The remuneration package is also structured differently for Officers and Warrant Officers. Therefore, different retirement ages and remuneration packages for our military personnel are not new and already exist. The Military Domain Expert Scheme will likewise need to be different, because it targets a different group of servicemen with different career aspirations and capabilities, and who can serve the SAF in a different way. So we will recognise the Military Experts for their fields of specialisation, skills and expertise, and we will ensure that their remuneration is market competitive, as we will ensure market competitive and fair remuneration for the other schemes of service as well.

Dr Lam highlighted the job scope of our doctors in the SAF, and that this is more aligned to the Military Domain Experts Scheme due to their specialised nature. This was one particular vocation that we studied carefully and we consulted with people in our medical corps. We have come to the conclusion that the needs of the SAF and the aspirations of those who wish to join the SAF as regular medical officers, are best met through the Officers' scheme. Our medical officers form the leadership core of our military medical community and this requires them to go out to the field to be dynamic and vigorous, lead medical contingents overseas and innovate and come up with new ideas for operational medical support. But there are a number of niche medical specialties, in which the SAF would like to develop deep expertise in. These include medical psychiatry, ophthalmology and sports medicine. Selected medical officers who wish to and have the deep professional expertise, experience and seniority in these fields, may be appointed as Military Experts, sort of like doyens under the Military Domain Experts Scheme, who provide that kind of deep expertise needed in the medical corps in those specific areas. But after careful analysis, we find that the field leadership of the medical corps needs to be closer to that of the military officers in the SAF.

Dr Fatimah Lateef expressed her hope that lifelong learning and core leadership competency will be inculcated in our Military Experts and Dr Lam Pin Min asked if the retirement age of 60 will pose a career transition issue. Well, we will continue to encourage continuous learning and lifelong education, and this is in fact one of the key features that we are strengthening in all three schemes. We are encouraging Warrant Officers who can, who have the background and qualifications and pre-requisites, to go to university and to prepare themselves. The officers will have schemes with universities in Singapore for them to go on and take their degrees (if they do not have them already), and to go on to do their Masters degree, and prepare themselves to be able to serve the SAF better and subsequently when they do leave the service. We would provide ample opportunities to groom and train our Military Experts as well as our Officers and Warrant Officers, to grow as individuals and to grow in their ability to serve in the SAF.

For the MDES, they will deepen their expertise, and develop their full potential to better contribute to the SAF in their domain areas. When our military experts leave the SAF at age 60, they would have had a fulfilling, rewarding and full career. But should they desire to continue working after their career with the SAF, they would also have acquired relevant qualifications and considerable experience to allow them to transit to a related professional field quite confidently.

Dr Lam Pin Min also asked about the Saver and Premium schemes, whether with the extension of service particularly for the officers, whether this will continue beyond the original retirement age. We are not changing the length of service for Warrant Officers. In fact, there is no change in the Premium scheme for Warrant Officers. Warrant Officers retire at age 55, and it will remain so. We have extended the retirement age of the officers to age 50, to allow for more time for professional training and grounding without losing the dynamism which is critical to the SAF. But the Saver scheme will not continue beyond the original Saver end date, which is typically in the early to mid-40s. Officers can choose not to extend their service to age 50, in which case, they can leave at the original retirement age and take along with them all that they could have from the retirement account, as is currently the case. For those who choose to have their careers extended, there will be no further contribution to the retirement account beyond their original retirement age. But instead, they will be given service bonuses for their extended service till their new retirement age of 50. In this way, our officers would be fairly compensated for the lengthened service that they have, while at the same time, they will not receive double windfall or have further retirement benefits being paid to their saver account, plus longer service, plus bonuses and so on. We will keep the two separate. This also gives them the flexibility of leaving at an earlier age if they want to, to pursue a second career.

Dr Fatimah Lateef asked for an update on the implementation of the new and enhanced schemes. The enhancements to the Officers and Warrant Officers scheme and new Military Domain Experts Scheme will be implemented on the 1st April 2010, as I indicated earlier. The Commanders in the SAF have conducted extensive dialogues and communication sessions with our servicemen to explain enhancements and address their concerns on the changes. These have been going on for the past year or so, and in fact before the schemes were developed and the changes to the various schemes were made. There was comprehensive consultation with our servicemen. The things that were announced did not come as a surprise to them. Servicemen, whose jobs are transferred to the new MDES scheme, are given the choice to opt for the new scheme or to remain in their current scheme. This exercise is currently ongoing and has been well-received by the vast majority of servicemen. More than 90% of them have indicated that they would accept such an option when they are so offered. Of course, some servicemen who are close to their original retirement ages and have already made alternative career plans, have understandably not seen much benefit or much point in transferring to a new scheme when they are just about to retire and leave the service. Some proportion of them have decided that that is what they want to do. I think that is fair enough. Once again, Sir, I would like to thank Members for their support and their care and concern for our soldiers.

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 Teo Chee Hean].

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

Mr Speaker, Sir, I beg to move,

That this Parliament, in accordance with Article 144(1)(a) of the Constitution of the Republic of Singapore and section 11(1) of the Government Securities Act (Chapter 121A of the 2002 Revised Edition), resolves that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore under that Act, a further sum not exceeding Seventy Thousand Million Singapore Dollars (S$70,000,000,000), thereby in total a sum not exceeding Three Hundred and Twenty Thousand Million Singapore Dollars (S$320,000,000,000).

Sir, on 21st September 2004, Parliament resolved that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore an outstanding sum not exceeding Two Hundred and Fifty Thousand Million Singapore Dollars (S$ 250,000,000,000).

As at 31st October 2009, there are about Two Hundred and Thirty Five Thousand Million Singapore Dollars (S$ 234,700,000,000) worth of securities outstanding. The outstanding securities are estimated to reach about Three Hundred and Twenty Thousand Million Singapore Dollars (S$ 320,000,000,000) within the next five years. This is due to the expected increase in CPF Board members’ balances as a result of policy changes, such as CPF LIFE and the increase in Minimum Sum, to build up members’ retirement savings, as well as higher CPF interest payments and the corresponding interest compounding effect. Three quarters of the outstanding Government securities are expected to be used to absorb these higher members’ balances.

The remainder would be for the Monetary Authority of Singapore to grow the issuance of Singapore Government Securities so as to continue to enhance the efficiency and liquidity of Singapore’s debt capital markets.

I propose, therefore, that the ceiling for borrowing by Government securities of Two Hundred and Fifty Thousand Million Singapore Dollars (S$250,000,000,000) be raised by another Seventy Thousand Million Singapore Dollars (S$70,000,000,000) to a total of Three Hundred and Twenty Thousand Million Singapore Dollars (S$320,000,000,000). As before, this ceiling will apply to the outstanding amount of Government securities.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Parliament, in accordance with Article 144(1)(a) of the Constitution of the Republic of Singapore and section 11(1) of the Government Securities Act (Chapter 121A of the 2002 Revised Edition), resolves that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore under that Act, a further sum not exceeding Seventy Thousand Million Singapore Dollars (S$70,000,000,000), thereby in total a sum not exceeding Three Hundred and Twenty Thousand Million Singapore Dollars (S$320,000,000,000).

Resolved,

"That Parliament do now adjourn to a date to be fixed." – [Mr Mah Bow Tan].

Adjourned accordingly at Twenty-five Minutes 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 Trade and Industry (a) what is his Ministry's response to the recent findings of falling customer satisfaction levels in the retail and food and beverage sectors; and (b) whether there are measures put in place to ensure that our tourism industry delivers the best customer service and maintains its competitiveness in the region.

In today’s competitive environment, it is important for businesses to understand the link between service excellence and customer satisfaction. Recognising the importance of this, STB, WDA and SPRING have developed the Customer Satisfaction Index of Singapore (CSISG) together with SMU, as to help businesses better understand their customers.

According to the CSISG framework, firms should pay attention to factors such as the changing expectations of customers, product quality, service delivery and pricing, as these are all important factors that influence overall customer satisfaction. Based on this methodology, it is possible that while our firms improve on service delivery level, customer satisfaction may still drop because of changes in the other factors.

Findings from the most recent CSISG survey released in October showed that despite improvements in service delivery and product quality levels, customer satisfaction levels in the surveyed sectors had fallen by a margin of up to 2.3 points in 2009 compared with 2008. This is a timely reminder for companies to pay more attention to the spectrum of factors that govern customer satisfaction, and our agencies will be sharing the CSISG survey findings with companies to help them understand the issues that drive customer satisfaction and possible measures to address the gaps.

I wish to assure the House that the Government takes the issue of improving customer satisfaction seriously. We recognise its importance in maintaining Singapore’s competitiveness in the region, particularly in our tourism sectors, and we have taken active steps to support businesses in their drive towards customer satisfaction and service excellence.

Members will recall that we launched the "Go the Extra Mile for Service" (GEMS) movement in 2005, to encourage all Singaporeans to play their part and take the initiative to improve service levels, to work towards achieving an excellent service culture in Singapore. We recently launched Phase 2 of the GEMS national movement. Called "GEMS Up", Phase 2 aims to take customer satisfaction and service excellence in Singapore to the next level over the next three years.

There are three areas worth noting in Singapore’s national pursuit of customer satisfaction and service excellence.

First, we will promote the importance of good service and recognise good service providers as role models. STB launched the Singapore Service Star accreditation scheme in 2008 and, more recently, the Singapore Experience Awards to recognise the efforts of individuals and organisations that have contributed to making Singapore a distinctive and compelling experience to visitors.

Second, we will develop and upgrade the service capabilities and skills in key service sectors. For instance, the Customer-Centric Initiative (CCI) launched in 2005, has assisted about 214 companies (representing 6,200 establishments and 172,000 workers) in their service excellence journeys through co-funding service improvement projects. SPRING is also developing a customer service toolkit to help companies develop new service systems and revamp their current processes.

Third, we will continue to invest in human capital development across all levels. WDA will expand the Workforce Skills Qualifications (WSQ) programmes, develop more managerial level training programmes and introduce seminars and forums on service effectiveness management for business leaders.

Customers also play an important part in our overall pursuit of service excellence. A culture of service excellence requires active feedback and timely recognition. GEMS Up will encourage customers to play their part by showing their appreciation of service providers who have delivered good service.

Collectively, with Government in partnership with the businesses and customers, our tourism industry will made a concerted drive towards increased customer satisfaction.

asked the Minister for Trade and Industry (a) what are the schemes, financial assistance and incentives available for local SMEs and which agencies are involved or responsible for these schemes; (b) how many trade offices does Singapore have overseas and how have they performed vis-à-vis assistance rendered to SMEs seeking business opportunities in the countries concerned; and (c) what kinds of help and support are provided for SMEs in the human resource and training industry and for them to venture overseas.

SPRING Singapore is the agency in charge of SME and Enterprise development. It works together with IE Singapore to promote the growth of Singapore-based SMEs overseas. There are a host of assistance schemes to address the needs of SMEs from access to financing, to developing capabilities, and facilitating ventures overseas. Local enterprises can find detailed information on the assistance schemes on the EnterpriseOne website. Let me highlight just a few examples of the SME assistance schemes that are available.

For SMEs that have difficulty obtaining loans from the commercial market, the Government works with the banks to provide working capital and secured loans through the Bridging Loan Programme (BLP) and the Local Enterprise Financing Scheme (LEFS). There is also the Micro Loan Programme, which provides working capital for micro-enterprises.

SPRING and IE Singapore also run a comprehensive suite of capability programmes to help SMEs build up key competencies for long-term growth. For example, the Customer Centric Initiative (CCI) and Business Leaders Initiative support individual companies in developing and upgrading capabilities in service excellence and business management respectively. SPRING also works with industry associations, through the Local Enterprise and Association Development (LEAD) Programme, to improve industry-wide SME capabilities, such as technology and infrastructure improvements.

The Government also supports companies venturing overseas through schemes such as the Loan Insurance Scheme (LIS) and Export Coverage Scheme (ECS) which provide secured loans for trade financing and insurance against buyer defaults, respectively. SMEs can also apply for loans under the Internationalisation Financing Scheme (IFS) to fund overseas projects.

IE Singapore’s International Partners Programme also helps companies form consortiums to complement each other’s product offerings and achieve economies of scale. Assistance is also given to industry associations through LEAD to augment the ability of SMEs to venture overseas.

IE Singapore also assists individual SMEs in their internationalisation plans through its network of offices in 37 cities (1) across 21 countries. IE Singapore organises frequent industry and market-specific awareness seminars, fairs and missions to help SME identify opportunities for exports, overseas investments and joint ventures.

On the whole, our assistance to SMEs has had a significant impact. To date this year, nearly $6.7 billion (2) of Government-backed loans, including those for internationalisation were extended to over 12,000 local enterprises, of which over 90% were SMEs. In addition, SPRING supported about 3,800 SMEs with $100 million worth of grants while IE Singapore supported about 2,000 SMEs with $27.3 million of capability and market access grants.

To help SMEs grow, compete and expand overseas, the Government will continue to tailor its suite of assistance schemes to meet the needs of our SMEs.

Southeast Asia: Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur. China: Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Hong Kong, Qingdao, Shanghai, Xi’an. Asia Pacific: Taipei, Seoul, Sydney, Tokyo. Middle East: Abu Dhabi, Doha, Dubai, Jeddah, Riyadh. India: Chennai, Mumbai, New Delhi. Americas: Los Angeles, Mexico City, Miami, New York, Panama, Santiago, Sao Paulo. Europe: Frankfurt, London, Moscow, Stockholm.

$5.4 billion for SPRING’s loan schemes and $1.29 billion for IE’s loan schemes

asked the Minister for Transport in view of the traffic jams caused by Shell's fuel promotion on 24th October 2009 (a) what was the impact of the jams on the smooth flow of the public transport system; (b) how will the jams affect the Public Transport Council's assessment of the performance of the public transport system; and (c) who will bear the cost of penalties if they are imposed by the Public Transport Council.

asked the Minister for Transport in view of the fuel promotions by Shell on 9th August 2009 and 24th October 2009 which caused traffic congestion (a) whether there are any studies done on the impact of such promotional events on traffic flow; (b) whether the Ministry was consulted before the launch of the promotional event on 24th October 2009; and (c) whether the previous impact assessment was taken into consideration.

asked the Minister for Transport (a) whether measures were in place to ensure smooth traffic flows during the fuel promotion run by a major petrol retailing chain on 24th October 2009; (b) whether there were any contingency plans in place to avert the traffic jams that occurred at various parts of the island besides the deployment of auxiliary police officers; and (c) whether the Ministry considered the danger posed to bus commuters when bus lanes were taken up by cars queueing to get into the petrol stations.

Shell held their fuel promotion on Saturday 24th October over eight hours, from 10am to 6pm. Such commercial promotion events on private premises do not need specific approvals from the Government. However, Shell informed both the Police and LTA of its intention to hold this particular promotion beforehand. The Police and LTA advised Shell to put in place measures to manage the anticipated traffic congestion, such as engaging Auxiliary Police Officers to control traffic. Shell was to ensure that the vehicle queue is kept within one lane and not obstruct accesses to buildings and commuter facilities, which includes bus stops. Several stations where the queues would pose serious safety risks were excluded from the promotion. Shell took in these requests, and also increased the number of pump attendants and cashiers to speed up the service on the day of the promotion.

However, the promotion proved to be more popular than Shell had anticipated. The LTA and Police observed and received reports of varying degrees of congestion on the roads leading into Shell stations. While most of these roads generally remained passable for traffic, there were a number of instances where the traffic congestion was not acceptable. LTA took steps to manage the congestion by adjusting traffic light timings and informing motorists of the congested roads through electronic message signs and radio broadcast announcements. LTA also instructed Shell to deploy additional resources to manage the traffic condition on the ground, while the Traffic Police instructed Shell to end the promotion early at one of the stations. This unfortunate incident has heightened the awareness of commercial entities on the need to be more socially responsible when planning their commercial events in future. Better planning of events, as well as the provision of more resources for crowd and traffic control can be expected of organisers of future promotional events. The LTA and Police will also work with the organisers of such events to see how best we can minimise a recurrence of such traffic incidents.

Dr Lim Wee Kiak asked how would the Public Transport Council (PTC) assess the bus services that were affected by the promotion. The PTC is mindful that there will be circumstances beyond the operators’ control, such as traffic congestion due to road accidents or major events, that will affect their performance. In its assessment, the PTC will carefully consider the reasons why the bus operator was unable to comply with the Quality of Service standards set before deciding on the need to impose a penalty. I am sure that the PTC will be fair to the bus operators.

asked the Minister for Education if he will provide an update on the Singapore Institute of Applied Technology, in particular (i) the types and nature of partnership arrangements with foreign universities; (ii) the manner in which polytechnics are involved in programme delivery; and (iii) how a quality education environment will be provided for the students.

The Ministry of Education announced in May 2009 that the Singapore Institute of Applied Technology would be set up to provide an improved upgrading pathway for deserving polytechnic graduates to obtain industry-relevant degrees. The Singapore Institute of Technology (SIT), as it will now be known, will provide approximately 2,000 full-time university places each year at the steady state, and will contribute towards the target university cohort participation rate of 30% by 2015.

As negotiations are ongoing, further information with regard to details requested by the MP can only be available when the tie-ups with foreign Universities have been finalised. SIT is currently in advanced stages of discussions with several reputable overseas universities from the US, UK, Australia and Europe. In general, foreign partners will commit to deliver programmes in Singapore that will lead to the award of their University degrees. Some disciplines have been identified that build on our polytechnics’ strengths in Science and Technology, as well as support high-growth industries. These are in areas of Applied Sciences and Engineering, Digital Media, Health Sciences and Hospitality. The entire suite of course provisions for degrees in various disciplines will require time to be rolled out and will be spaced out till 2015. This is because each programme by foreign partners would need to be assessed by SIT to ensure that a rigorous and relevant curriculum has been developed by the overseas university and who will also send some of their faculty to Singapore to conduct these programmes.

The degree programmes will be conducted within the premises of the five polytechnics, so that they can leverage on the polytechnics’ infrastructure where there are synergies, for example, for engineering laboratories. Nonetheless, each polytechnic will provide a dedicated space where SIT teaching and activities will take place. The polytechnics will also work closely with the overseas university partner to adapt the degree curriculum to ride on the strengths of the polytechnics’ own diplomas. Finally, SIT in conjunction with the polytechnics will also provide faculty expertise to conduct some of the courses.

Given the calibre of our polytechnic graduates and SIT’s high standards in assessing its foreign partners, these degree programs will provide a high-quality tertiary education for our students.

asked the Minister for the Environment and Water Resources whether his Ministry will consider prohibiting all works on construction and building sites near hospitals and residential areas on Sundays and public holidays.

Under the National Environment Agency (NEA) Regulations, maximum allowable noise limits for construction sites are prescribed for different time periods of the day and for different types of premises affected by the construction noise. For example, the allowable noise level is stricter for construction sites near to schools and hospitals.

My Ministry and NEA regularly review the regime for the control of construction noise. In October 2007, NEA tightened the allowable noise limits on Sundays and public holidays for construction sites near to residential premises, and increased the maximum fine for construction noise violations from $20,000 to $40,000.

Singapore is a highly urbanised and compact city with vibrant economic activities, and noise nuisances cannot be eradicated completely. Nonetheless, we recognise that construction noise remains a concern for many residents. In 2008, NEA received about 14,200 (3) complaints on construction noise, up from about 9,200 in 2007. From January to October this year, NEA received over 10,400 complaints on construction noise.

We are therefore currently reviewing the effectiveness and adequacy of the current regulatory regime for construction noise. In doing so, we will take into account feedback from the public as well as the views of relevant Government agencies and industry stakeholders. We expect to complete the review early next year and will provide an update on any new measures to be introduced thereafter.

The exact number of complaints received by NEA was 14,184 in 2008 and 9,228 in 2007 and 10,467 from January-October 2009.

asked the Minister for Community Development, Youth and Sports (a) whether it is viable in Singapore to encourage microcredit schemes similar to those started by the Grameen Bank in Bangladesh to help alleviate the widening income gap and reduce the need for social support; and (b) whether Singapore’s highly regulated environment in terms of licensing requirements poses a barrier to simple start-ups which are the intended result of these microcredit schemes.

Studies have shown that microcredit schemes have proven more successful in developing countries where job opportunities are scarce, financing options for small businesses are limited, and start-up costs of business are relatively low.

In Singapore, there are existing mechanisms to help small start-up businesses. Individuals who wish to set up micro-businesses can access small loan financing facilities. These include Thrift and Loan societies, credit cooperatives, commercial banks like POSB’s Loan Assist programme as well as SPRING Singapore’s Micro Loan Programme. With the 2008 amendments to the Moneylenders Act, licensed moneylenders can continue to provide up to $3,000 in unsecured loans where the interest rate is capped appropriately. This gives added protection to borrowers with small or no income.

Starting a small business is but one avenue for lower income individuals to be self-reliant. For the majority, it is more viable for them to seek employment and earn a stable income. For this reason, the Community Development Councils and employment agencies have put in resources to help lower income Singaporeans with employment assistance and re-training. Those receiving social assistance on the Work Support programme are expected to demonstrate efforts towards seeking employment. We also promote social enterprises as sustainable avenues to provide employment and training opportunities to the needy and disadvantaged.

Mdm Ho had also asked if Singapore’s highly regulated environment in terms of licensing requirements pose a barrier to simple start-ups. Towards this end, a number of initiatives are in place to make it easy to do business in Singapore.

The Online Business Licensing Service integrates 71 licences from 19 agencies into a single platform. Businesses now only need to make a single application for multiple licences and pay a consolidated fee.

There have also been initiatives targeted specifically at Singaporeans who hope to start micro-businesses. For example, the Home Office Scheme initiated in 2003 allows residents of HDB flats and private residential homes to set up offices at home as long as they do not compromise the residential ambience and amenities of the housing estates. As at end October 2009, there were more than 18,000 active HDB Home Office users operating various trading and service-based businesses from home. Under HDB’s Home Based Small Scale Business Scheme, HDB lessees can carry out small business activities like making paper bags, sewing, baking cakes, etc, at home as long as they do not cause inconvenience or pose a nuisance to neighbours. This allows home owners to partake in informal businesses at home to supplement their household income.

In addition, the National Environment Agency re-introduced in 2000 the Street Hawking Licence Scheme. The scheme allows itinerant street vendors to operate in Town Council estates and parks, and sell items such as ice cream, other less perishable food items, newspapers and costume jewellery. Since August 2004, the NEA has awarded 257 licences.

The Government constantly explores ways to reduce the regulatory burden on businesses. We regularly review licensing requirements to ensure they remain relevant, and would remove licences that cease to fulfil a purpose. The Pro-Enterprise Panel chaired by the Head of Civil Service, seeks suggestions from the public on how Government rules and regulations can be improved for businesses, and acts on these suggestions. So far, the Panel has received about 1,800 suggestions, and has accepted and implemented over half, or close to 1,000 of these. If Members of this House or the public have further suggestions, I am sure the Panel would be pleased to consider them.

asked the Acting Minister for Information, Communications and the Arts (a) whether the Ministry is studying the impact of the recession on the arts sector as a whole including the impact on independent arts companies and commercially-organised events; (b) how the Ministry plans to encourage more philanthropic giving and sponsorship of the arts; and (c) whether the proposed online donation portal for the arts duplicates the current online donation portal set up by NCSS, and if there are plans to co-ordinate the two portals.

I would like to thank Ms Audrey Wong for her interest in the sustainability and growth of the arts sector.

MICA had expected the recession to adversely impact the arts industry and was committed to sustaining the arts during this difficult period by increasing our level of funding support. New initiatives were launched in 2008 and 2009 to support the arts industry under the ambit of the Renaissance City Plan III. The National Arts Council (NAC) launched the International Arts Residency programme, the Arts Creation Fund to seed new works and the Arts For All programme to engage the community through the arts and culture. However, MICA recognises that the growth of the arts and cultural sector is a shared responsibility between the Government, private and people sectors. I will elaborate on this later in response to your other questions.

While no study was specifically commissioned to look into the impact of the recession on the arts industry, NAC's annual collection of statistics allowed us to draw some broad conclusions about the arts industry. On the whole, our local arts scene has not been significantly impacted by the recession, as growth – although small in some areas – was seen in overall ticketed attendances, ticketed performances, visual arts activities and arts-related companies and societies. However, there was a decline in total ticket sales value recorded by SISTIC and Gatecrash as arts companies adjust ticket pricing downwards.

The main findings reported in the 2008 Cultural Statistics Round-up are that:

• Visual arts activity was unexpectedly buoyant. There were more than 900 exhibitions in 2008, which was a significant 14% year-on-year increase. (4)

• The number of registered arts-related companies and societies rose 16% from 794 in 2007 to 922 in 2008. (5)

• Ticketed attendance had a positive, albeit marginal growth rate of 3%, compared to 9% per annum from 2003 – 2008. (6)

• The growth rate in ticketed performances was 1% in 2008, though slower compared to the average annual growth rate between 2003 and 2008 of 7%.

• Total performances declined by 8% in 2008 from its peak in 2007 (7) as commercial organisations, eg, shopping centres and impresarios, significantly reduced their non-ticketed performances.

With regard to the question on philanthropic giving and sponsorship, this is an area which MICA is taking a more comprehensive approach to build greater community ownership for the arts. While there are already some incentives in place, such as the double tax deduction scheme, we will continue to identify new schemes and opportunities to make it easier for people to come forward to contribute.

The newly established Arts and Culture Development Office (ACDO) in MICA will strategise, coordinate and facilitate the building of greater public, private and people partnerships to broaden and deepen the support base for arts and culture. In the longer term, the office will also provide an advisory role to arts and culture organisations on building up their capabilities in fund-raising and alliance building.

The ACDO will launch a Cultural Philanthropy portal. It is being designed to complement the donation portal set up by the National Council of Social Services and will be linked to it. There is a huge untapped potential in individual donation to the arts and culture sector (8). This dedicated portal will make it easier for the public to lend support to arts and culture through donations, big and small. Beyond facilitating donations, the portal will also be a platform for more Singaporeans to volunteer their time, skills and resources in a broad range of arts and cultural programmes.

Cultural philanthropy is an important component of enabling an engaged and gracious community. Over time, we hope that our efforts, such as the donation and volunteer management portal, will lead to building a stronger spirit of giving amongst Singaporeans, more private individuals and organisations engaging with arts and culture, and recognising the value that it brings to the community.

In general, the visual arts scene enjoyed robust growth over the last three years, with the number of exhibitions rising by an average of 18% every year.

Over two earlier periods, 1997-1999 and 2000-2002, the number of arts societies and companies generally hovered at the 400 and 500 mark respectively.

Despite the growth in ticketed attendance, the number of tickets for performing arts events sold by SISTIC and Gatecrash fell by 13% from 2007. With average ticket prices also dropping from S$62 to S$56, total ticket sale value recorded by SISTIC and Gatecrash decreased by 22% from S$48m in 2007 to S$38m in 2008.

Nevertheless, the total number of performances in 2008 (6,864) was still higher than the number in 2006 (6,556), 2005 (6,410) and 2004 (5,105).

The current giving to arts and culture come largely from corporations and grant makers. Only 5% come from individuals. This is in stark contrast to the national figures for all sectors which show that 46 % of the $958 million donations in 2008 came from individual giving.

asked the Acting Minister for Information, Communications and the Arts (a) how many Malay and Indian arts and cultural shows have been carried out in Singapore for the last one year; and (b) what will be done to promote more of our Malay and Indian cultural shows.

I would like to thank Dr Ong Seh Hong for his interest in Malay and Indian performing arts and culture.

In 2008, there were approximately 650 ticketed and non-ticketed Malay and Indian arts and cultural shows staged in Singapore, or nearly two shows per day. These shows included dance, theatre, classical music performances and cultural concerts.

Traditional art-forms underpin Singapore’s rich cultural diversity and our national identity. We will continue to develop and promote traditional arts through financial assistance, capability development and showcasing opportunities.

A new Traditional Arts Fund provides $2.5 million in funding support from 2008 to 2012 for ethnic arts groups. In addition, ethnic arts groups receive financial assistance through grants administered by the National Arts Council (NAC). In 2008, nearly $1 million was devoted to supporting Malay and Indian performing arts events and training activities. This comprised more than $560,000 from grants and the Traditional Arts Fund, and more than $400,000 in arts housing subsidies.

The National Heritage Board also provides funding and administrative expertise to support the Sun Yat Sen Nanyang Memorial Hall at Balestier, Malay Heritage Centre at Kampung Glam and a planned Indian Heritage Centre at Little India, all of which serve as focal points for arts and culture events for the respective communities.

A pool of well-trained arts practitioners will contribute towards the growth and sustainability of traditional arts. Therefore, we invest in capability development by developing programmes to upgrade the skills and knowledge of our local practitioners, working with partners such as the People’s Association. In 2008, NAC co-organised eight professional training programmes attended by a total of 457 established and emerging talent.

Finally, we provide our arts groups with opportunities to be showcased. NAC’s Arts for All Community Programme facilitates collaborations between grassroots organisations and established traditional performing arts groups on performances. The annual HeritageFest organised by NHB incorporates dedicated segments by ethnic arts groups, whilst the Esplanade organises ethnic arts festivals. Pesta Raya – Malay Festival of Arts – and Kalaa Utsavam – Indian Festival of Arts, featured more than 140 local and international acts in 2008. There are also opportunities for arts groups to be showcased overseas. In August, traditional Malay groups Sriwani and Sri Mahligai represented Singapore at the 11th Asia Arts Festival in China.

I would like to encourage Dr Ong and my Parliamentary colleagues to lend their support to the many platforms that showcase traditional arts performances and talents.

asked the Minister for Health if he will provide an update on the Ministry’s plans to increase the number of hospice beds and healthcare specialists who provide palliative care and whether these plans are on track.

Currently, there are four inpatient hospices, with a total of 127 beds. Their average bed occupancy rate is about 70%. As we promote palliative care, increased awareness and an ageing population should lead to an increase in demand for palliative care. We are gearing up for this development.

First, we are expanding capacity. Several hospice providers intend to increase their bed capacity and we are working with them. As a short term target, our plan is to increase the current capacity by about 70 beds. We are also working with home hospice providers to expand this sector so that more patients can receive palliative care at home.

Second, we are recruiting and training more palliative specialists. Currently, we have 17 palliative medicine physicians, with a good pipeline of trainees. By 2012, the pool should grow to 25. We are also exposing more doctors to palliative care and palliative care is now part of the training curriculum for all family physicians. As a result, there is a growing interest among doctors, especially family physicians, to take up palliative training as a subspecialty.

Thirdly, we are also expanding the pool of nurses trained in palliative care. Currently, we have 141 nurses trained in palliative care. We are sending more nurses on courses on palliative care through our Health Manpower Development Programme. In addition, we have started an Advanced Diploma in Nursing (Palliative Care) programme in Nanyang Polytechnic. From next year, we should see about 20 nurses graduate annually from the programme. Meanwhile, many institutions are providing shorter courses to equip our nurses with the basic skills of palliative management.

asked the Minister for Community Development, Youth and Sports (a) in each of the last three years, what is the amount that the Government spent year on sporting activities for the disabled and how does this compare with other countries; and (b) whether more can be done for the disabled who are non-athletes to help them lead a sporting and active life, as much as their disability will allow.

The Singapore Sports Council (SSC) provides funding to the Singapore Disability Sports Council (SDSC) to conduct a variety of sporting activities for different disability groups. The level of funding has increased over the past three years from about S$1.25 million in FY 2007, S$1.34 million in FY 2008 to S$1.47 million in FY 2009. The funding supports national competitions such as the National Disability League and Learn To Play programmes covering a variety of disability sports, to encourage persons with disabilities to take up sports for recreation. This does not include other indirect support by SSC, such as facilities rental and provision of Sports Medicine and Sports Science services for disabled athletes.

Our National Sports Associations also run programmes for the disabled. For example, the Equestrian Federation of Singapore co-ordinates overseas competitions and provide training support for disabled athletes. The Singapore Swimming Association and Singapore Sailing Federation lend their support in terms of planning, coaching and other technical expertise to SDSC’s programmes. This is in line with our philosophy of having inclusive programmes, and consequently more sporting options for the disabled. This also means we do not have sufficiently segregated data to make meaningful comparisons with other countries. We will be looking at ways in which a better comparison of data can be made in this aspect.

The Government also works in partnership with the private and people sector to help the wider disabled community to lead a sporting and active lifestyle. The Enabling Masterplan 2007 – 2011 provides for persons with disabilities to have access to sports for recreation, rehabilitation and competition. Since the inception of the Masterplan, we have seen the school and social service sector implementing measures to cater to the sporting needs of the disabled. For example, most of the 20 Special Education (SPED) schools managed by MOE have included physical education as part of their curriculum for recreation, rehabilitation and competition. Across the social service sector, disability voluntary welfare organizations (VWOs) also promote sporting and various physical activities for persons with disabilities.

asked the Minister for National Development (a) how many HDB tenants have been evicted from HDB rental flats for the past 12 months due to illegal subletting or inability to pay rental; and (b) what are HDB's plans to provide alternative housing for such evicted tenants if they are unable to find alternative accommodation.

asked the Minister for National Development whether his Ministry will review the household income ceiling for rental flats to take into account inflation and the increased cost of living, before pegging rental rates at 30% or 50% of the market rate.

In the past 12 months, HDB has terminated the tenancies of 185 tenants who illegally sublet their rental flat. They were living elsewhere and had sublet their rental flats illegally. They have abused Government subsidy and deprived the truly needy of a rental flat. We need to send a clear signal that such behaviour is not acceptable. Rental flats are already heavily subsidised. There is no need to revise the rent structure as the rates are low and are affordable to even the very low income. Households with less than $800 in monthly income pay only $30 per month for a 1-room flat. Those earning between $800 and $1,500 per month pay 30% of market rate. Their rents have been frozen at $110 per month for a 1-room flat since 2005. This is a very significant subsidy. Some of those caught for illegal subletting rented out their 1-room flat for as high as $1,000 per month.

For rental households in severe financial difficulty, HDB will extend more help, as appropriate. For example, an instalment plan can be worked out to help those in rental arrears. For those earning more than $800 per month but are in hardship due to large family size or medical bills, HDB will not impose the higher-tier rents on them. HDB will also refer needy cases to Community Development Councils (CDCs) or Family Service Centres for help. For example, CDCs offer Public Assistance to severe hardship cases that need long term assistance. Public Assistance covers basic living expenses such as rent.

asked the Minister for Transport what is the reason for EZ-Link to impose charges for GIRO top up of EZ-Link cards despite the Government's push for a cashless society.

A cashless society is not a costless one. While the Government can help to facilitate the transition to a cashless society, the decision to waive or charge a fee for cashless alternatives is a commercial one best left to individual commercial operators such as credit cards companies, or in this case, the CEPAS card issuers to determine. As CEPAS allows multiple card issuers to enter the market, they will have to decide how best to balance between the competitiveness of their value proposition to their customers and their own commercial viability. In the case of EZ-Link, they have made the business decision that for the automatic GIRO top-up facility which they offer as a value-added service, a charge would be levied to cover the operating costs.

Nonetheless, for commuters who do not wish to pay for the charges, the Public Transport Council (PTC) has ensured that "free" top-up channels will continue to be available within the transit environment.

asked the Minister for Manpower given that foreign professionals in the creative and entertainment industries who want to work in Singapore on a freelance or short-term basis are only subject to the Immigration and Checkpoints Authority’s approval for short-term Social Visit Passes, whether the Ministry has any plans to issue short-term work passes, to be assessed on work-related criteria, to these professionals in line with other jurisdictions such as Hong Kong and Japan.

A Social Visit Pass does not entitle the holder to work in Singapore. Foreigners who wish to work in Singapore regardless of duration and whether they have a formal relationship with a local employer or not are required to obtain a work pass from MOM.

There is, however, a provision that allows for foreigners carrying out very specific short-term work assignments in Singapore to be exempted from the formal work pass regime. Under the Employment of Foreign Manpower (Work Pass Exemptions) Notification 2008, foreigners intending to carry out work in certain creative and entertainment industries need only file a one-page e-notification to MOM. To facilitate these workers to work in Singapore on a short term basis, MOM does not issue a formal work pass to them but allows them to perform the activities during the duration of their Social Visit Pass, subject a maximum of 60 days. Beyond the 60 days, these foreigners would need to apply for a formal work pass. Alternatively, these foreigners may apply for a work pass straight at the onset. Work passes will be granted on the merit of each application. Applications for the various work passes can be done online on MOM website.

The list of exempted work activities is limited to eight areas: including performing as an actor, singer, dancer or musician at a public area or activities relating to any location filming or fashion show involving actor, model or director.

Outside this exempt list, foreigners who intend to work here are still required to obtain a work pass from MOM.

MOM currently has no plan to revise the list.

asked the Acting Minister for Information, Communications and the Arts (a) whether his Ministry has statistics on the current number of freelance workers in the arts and creative sectors; (b) whether his Ministry has conducted studies on the contributions of freelancers in these sectors as well as their working conditions, such as average pay and CPF contributions, and if they have been affected by the economic downturn; and (c) if his Ministry has any plans to look into these freelance workers’ needs, given that the arts and creative sectors are set to grow in the future.

I thank the Nominated Member for her interest in the situation and needs of freelancers in the arts and creative sectors.

We have seen the nature of work evolve in recent times. One of the major changes we have witnessed is the increasing prevalence of freelancing. (9) This trend is especially clear in industries like arts, design and media, where work and employment tend to be more project-based. Indeed, international studies have shown that freelancers play a significant role in these sectors across the world. (10)

This trend holds true in Singapore as well. A MICA-commissioned study on freelancers across the arts, media, design and software and IT services sectors in Singapore was completed by NUS in 2007. While the dynamic nature of freelance work complicates the process of estimation, the study found that freelancers could constitute up to one-third of the workforce in the creative industries. (11)

The study also shed some light on the working conditions of freelancers. Among other things, it found that freelancers tend to be versatile and work in more than one sector (12), and depend heavily on personal contacts and networks to secure clients. (13) Freelancers also face a large extent of variability in obtaining work and income. For example, a significant portion of freelancers (31.5%) reported that there is no typical year in terms of income. Similarly, a sizeable portion (41.1%) indicated that they face a variable number of clients each year.

While this study was conducted before the onset of the economic downturn, anecdotal evidence has led MICA to believe that its findings are just as relevant today. The study noted that the main difficulties faced by freelancers were related to remuneration and information gaps. (14) These issues continue to be pertinent and pressing, even as we emerge from the trough of the economic crisis.

MICA has taken these findings seriously, and put in place plans to help freelancers. We have worked with the private sector to develop a Creative Industries Freelancer Network (CIFN). The CIFN aims to address some of the concerns of freelancers, by providing avenues for them to acquire more information, contacts and capabilities. It will provide a contact database and services such as training courses and networking opportunities with potential employers. The CIFN portal is currently in development, and will be tested and rolled out to the public in phases from January 2010.

Freelancers are also able to tap on a range of capability development and assistance schemes offered by MICA agencies. These include the Media Development Authority’s (MDA) Media Training and Attachment (META) programme, the DesignSingapore Council’s (DSG) Capability Development Programme, and the National Arts Council’s (NAC) Arts Creation Fund and International Artist Residency Programme. MICA will continue to explore ways to supplement these programmes, as part of our constant drive to develop the creative industries.

Freelancers are defined as including: a. those who are in full-time employment but who take on ad hoc projects that are not a part of their duties of full-time employment; b. those who are "full-time freelancers"; and c. those who have sole proprietorships and take on individual projects independently.

A 2002 survey shows that 28% of New York’s creative industries workforce was self-employed (Centre for Urban Future, 2005:6). In 2004, London’s equivalent figure was 20%, while the overall for UK was about 30% (London’s Creative Sector Update Report, 2004:20). A 2001 report of the European Commission indicated that, for the EU-15, there were 1.3 freelancers for every regular employee in the TIMES sector (telecommunication, internet, multimedia, e-commerce, software and security).

Based on surveyed establishments’ declaration of the number of full-time employees and freelancers employed, the total number of freelancers as a proportion of CI manpower is estimated to be 33%. This translates to about 29,000 freelancers in CI. However, these figures are high estimates as individual freelancers could have been counted multiple times.

75.1% of freelancers surveyed reported freelancing in more than one sector.

87.5% of freelancers surveyed indicated that clients were secured largely through personal contacts, and 84.1% indicated referrals.

The top five difficulties encountered by freelancers surveyed were: not being paid in a timely way (68.2%); not being paid adequately (62.3%); lack of benefits (59.8%); insufficient jobs/insecure income (58.3%), and unclear industry price benchmarks (54.5%).

asked the Minister for Community Development, Youth and Sports (a) if he will give an update on the proposal to set aside $16 million to improve the 36 Family Service Centres; (b) how far has the work progressed; and (c) whether this will include increasing the number of social workers and putting in place a proper system for training and improving their salaries and benefits.

MCYS has set aside $16 million this year to provide more support to the Family Service Centres (FSCs). This is 23% more than the amount spent in FY 2008. The additional funding, made available to the 36 FSCs from April this year, was a result of a review of FSCs completed earlier this year. The review aims to ensure that FSCs remain relevant to society’s needs and are adequately resourced to carry out their work well.

At maximum capacity, each FSC can now hire up to three more social workers and two social work associates, bringing the total staff establishment to 17 per FSC. This allows the social workers to have a more manageable caseload. In turn they are better able to provide more holistic and intensive social work intervention to families with complex or multiple problems.

Besides the FSCs’ own staff recruitment, we have successfully placed 21 social workers in 12 FSCs through the Social Work Training Scholarship (SWTS), Professional Conversion Programme (PCP), VWOs-Charities Capability Fund (VCF) and the Lien Foundation Scholarship for Social Service Leaders since April 2009.

We are also building more FSCs in areas with high and sustained demand. MCYS and the National Council of Social Service (NCSS) have studied the needs and profiles of residents, for the siting of the new FSCs. The development work for the first new FSC is estimated to start in January 2010 after consultations with Mayors and Grassroots Advisers and the appointment of the service provider.

Resources have also been provided to enhance the competencies and capabilities of FSC staff. The training modules have been enhanced to take into consideration emerging needs such as understanding families from different ethnic groups, help for dysfunctional families, closer linkage and collaboration with government agencies. There will be avenues to promote professional learning among FSC staff and better supervision of junior social workers by senior staff.

Since April 2009, the Social Work Accreditation Board has started receiving applications for social workers and social service practitioners to be accredited. This will help professionalise the social service sector. To date, there have been close to 419 applications for accreditation as social workers and social service practitioners. As at 11th November 2009, 336 professionals have been accredited by the Social Work Accreditation Board.

MCYS is also looking into making the remuneration of social workers and related professionals more competitive. We will make adjustments to their pay packages if necessary.

asked the Minister for Transport with the rise in motorised bicycles of not more than 200 watts (a) how many riders of these motorised bicycles were involved in traffic accidents over the past 12 months; and (b) whether these motorised bicycles are required to be covered by third party insurance.

For motorised bicycles to be exempted from registration and, hence, third party insurance requirements, LTA requires them to 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 covered by third party insurance.

According to the Police, there were no fatal or injury accidents involving motorised bicycles between June 2008 and June 2009.

asked the Minister for Manpower (a) whether he has received feedback from employers, especially SMEs, on how they have managed to provide for the 16-week maternity benefits; (b) what proportion of employers engage temporary staff to augment staff strength when employees are on maternity leave; (c) where no temporary staff are engaged, how do employers distribute the workflow and compensate staff who have to cover for colleagues on maternity leave; and (d) what concerns have been raised by employers or employees about the extended maternity benefits.

My Ministry does not have specific data on the proportion of employers who engage temporary staff to cover employees on maternity leave. Nevertheless, we have received feedback from employers and from the Singapore National Employers' Federation (SNEF) on the challenges faced by companies in managing the 16-week maternity leave and how they manage such challenges.

Employers are mainly concerned about the operational disruptions arising from the absence of the employees who are on maternity leave. They are also concerned about the increase to business costs as a result of the enhanced maternity leave.

While some companies, particularly the smaller ones, have difficulty in distributing the work to co-workers and may need to hire temporary staff, the majority have been able to manage the absence through distributing the work to co-workers. For example, a small accounting firm with 20 employees shared with us that it had two employees who went on maternity leave during the past year. To minimise work disruptions, the company practised "job rotation" before the employees went on maternity leave so that their colleagues were able to familiarise themselves with the portfolio well enough to take over the role of the employees when they go on leave. This arrangement also helped to ensure continuity in the services provided to their clients.

Companies also implement flexible work arrangements, such as flexibility in the consumption of maternity leave, which appears to be the most prevalent practice by companies according to a survey conducted by SNEF. For example, employees may consume up to eight weeks of their maternity leave flexibly by working fewer number of days per week, so that they could return to work earlier and at the same time enjoy their maternity leave. An IT outsourcing and manpower placement company, Xcellink Pte Ltd, which has some 300-400 employees, shared with us that such flexible consumption of maternity leave enables their employees to adjust back to work gradually and at the same time cope better with family responsibilities. Flexible work arrangements have allowed employers and employees to meet their mutual needs, especially among SMEs.

asked the Minister for Community Development, Youth and Sports (a) what are the objectives for building *scape; (b) with a building cost of $40 million, what will be the ongoing investment in the facilities and youth programmes; (c) whether *scape is for the inaugural Youth Olympic Games; (d) who is going to market *scape for international events and how; (e) whether the new media production and editing suites are a private initiative or have Government agencies been invited to explore synergies in this area for youths; (f) whether his Ministry is working with MICA to set up a new media library and develop cyberwellness programme with MOE at *scape.

In 2004, my Ministry conducted a nationwide youth consultation exercise called "Youth – Creating our Future". Through this exercise, many young Singaporeans called for more spaces for their social, recreational, sporting and community activities. *scape was built in response to these calls. *scape will be a platform for our youth to express themselves, and to pursue various interests and projects that contribute to society.

My Ministry has set up *SCAPE Company Limited to manage this youth community space. We have invited young entrepreneurs and youth leaders to serve as directors of the company. My Ministry adopts an arms-length relationship with the company, and the company’s management and its Board have the autonomy to decide on their business and marketing strategies.

To support the company in its mission to deliver quality youth programmes, the Government will provide transitional funding of about $10 million in the first six years. This will enable *SCAPE Company Limited to build up its capability and revenue stream. The plan is for the company to become financially independent eventually.

*SCAPE Company Limited is constantly on the lookout for good ideas on programmes that would appeal to our youth. They will also look beyond our shores and market *scape for international events. The company has formed partnerships with agencies from not just the public sector, but also those from the private and people sectors.

On the new media space, the company’s intention is to develop part of *scape into a technology-centric area to promote youth initiatives and creative talents. I understand that the company is currently studying a proposal, so I would not be able elaborate on this further.

I would like to thank Madam Cynthia Phua for the suggestions on having a new media library and a cyberwellness programme at *scape. I would pass the suggestions on to *SCAPE Company Limited for them to look into.

*scape will be the venue for the 3-on-3 basketball competition for the Singapore 2010 Youth Olympic Games. We expect to welcome hundreds of athletes, coaches and guests at *scape. This will be a good opportunity for Singapore to showcase *scape to the international community. I am optimistic that all those present will enjoy the competition at this unique venue.

asked the Minister for Community Development, Youth and Sports whether the Government should be involved in the disciplinary process when match rigging of an international sporting event takes place in Singapore.

The rules of competition are set by the international sports federation that convenes the sporting event. All athletes and officials are expected to scrupulously comply with all the rules in order to ensure a fair competition. These values, attitude and behaviour lie at the heart of sportsmanship.

The international sports federations also establish the relevant processes for investigation of complaints, dispute resolution and disciplinary action, if warranted, against offenders. It is not appropriate for governments to be involved in these internal disciplinary processes.

Nonetheless, if a specific complaint is lodged, the relevant enforcement agencies will investigate whether a criminal offence has been disclosed. The Attorney-General’s Chambers will then assess whether there is a case for prosecution in our courts.

asked the Minister for Community Development, Youth and Sports whether the decision by some of the American athletes not to compete in the Singapore 2010 Youth Olympic Games has been communicated to the Singapore organisers and, if so, what is the impact of this on the event.

The Singapore 2010 Youth Olympic Games (S2010 YOG) in August 2010 will bring together the best young athletes from around the world. These athletes will qualify on merit, based on their performance in qualifying events designated by the International Federations (IFs) of the respective sports. Being a youth games, the YOG will also have an culture and education programme, but on the sporting field, the best youth athletes from around the world will be competing at the highest level in their age group.

To ensure universality and to keep the YOG to a manageable size, the International Olympic Committee (IOC) has imposed a minimum of four athletes and a maximum of 70 athletes for individual sports per National Olympic Committee (NOC). This maximum cap will affect a small number of the larger NOCs such as the United States, the United Kingdom and Germany, etc. It is up to these larger NOCs to select which sports to enter for the Games. Individual athletes would still need to meet the qualification standards set by the IFs. For the four team sports – football, handball, hockey and volleyball – representation is at the continental NOC level. Within each continent, teams can be from a specific NOC or consist of mixed teams from the NOCs.

The United States Olympic Committee (USOC), which sent about 600 participants for the Beijing 2008 Olympic Games, has confirmed that it will not be participating in three out of the 26 sports. These three are namely swimming, cycling and shooting. This is unlikely to have a major impact on YOG. For example, some 400 swimmers are still expected to compete at the Games. Nonetheless, the Singapore Youth Olympic Games Organising Committee (SYOGOC) and the Singapore Sports Council (SSC) are currently assisting in talks with the USOC to encourage its participation in all sports.

SYOGOC is working with the IOC as well as the stakeholders of the Olympic family, including the NOCs and the IFs, to ensure that the inaugural YOG would be an event of the highest international sporting standards. All parties are committed to a successful YOG in 2010.

asked the Minister for National Development (a) whether there are plans to locate HDB studio apartments for the elderly in mature estates where there are significant proportions of elderly households so as to minimise geographical displacement of these residents; (b) what types of amenities will be incorporated to make these communities elder-friendly; and (c) whether these studio apartments for the elderly will be integrated with various apartment types so that there will be no spatial segregation of the elderly from the rest of the community.

HDB’s Studio Apartments (SAs) are custom-built for elderly living. SAs come with elder-friendly features such as support hand-bars, non-slip tiles, lever taps and an alert alarm system. The blocks are barrier-free, and located near neighbourhood centres for easy access to shops, eating places and public transportation nodes.

To date, HDB has launched 17 SA developments in both mature and non-mature estates. All have been very well-received, with close to 100% take-up of units. Going forward, HDB will build more SAs to meet the demand. To ensure good geographical spread, they will be built in different estates including mature estates if land is available.

Since 2003, HDB has been mixing SAs and other flat types within the same block to promote social interaction across the ages. At the same time, we are mindful that concentration of SA units in one block help service providers like VWOs to better serve the elderly residents by having just one activity centre.

HDB will continue to build both mixed blocks and pure SA blocks to provide choice. In both cases, the SA blocks will be built as an integral part of a larger neighbourhood of different flat types. We will work closely with our partner agencies to ensure that both the hardware and software are in place to support healthy, active ageing.

asked the Minister for National Development in view of HDB void decks being commonly used by residents for leisurely activities (a) what action will the Ministry take to ensure that cyclists do not pose a danger to these residents; (b) what can be done to deter cyclists from parking their bicycles in ways that are hazardous and a hindrance to the residents or cause damage to public property; and (c) whether the Ministry will consider imposing a ban on cycling at all HDB void decks.

Void decks form part of the common property managed and maintained by Town Councils (TCs). In managing the use of the void decks, TCs need to ensure that the safety of residents is not compromised.

Currently, the respective TCs have their own by-laws to manage and control the use of common property in their Towns. Such by-laws normally include provisions against the unlawful parking of vehicles, including the parking and riding of bicycles at their void decks. Any person who commits a breach of the by-law is liable of a maximum fine of $5,000. Hence, depending on the situation and needs of the residents, TCs have the recourse to take enforcement action against errant bicycle owners and riders, if necessary.

At the same time, TCs should also educate residents on the proper use of HDB void decks so that they do not pose a danger or inconvenience to other residents. They can work with grassroots leaders to raise awareness of the dangers of indiscriminate cycling at the void deck. In addition, TCs can put up signages at void decks to deter unlawful parking and riding of bicycles.

asked the Minister for National Development (a) what were the issues discussed at the Fifth Meeting of the Joint Ministerial Committee for Iskandar Malaysia on 4th November 2009; (b) what is the latest update on Singapore’s investment in this project; and (c) what is the breakdown of industries and businesses from Singapore operating there or committed to operating there.

The Joint Ministerial Committee (JMC) for Iskandar Malaysia (IM) was set up in 2007 to promote bilateral cooperation on the IM.

Since 2007, Work Groups were formed under the JMC to promote bilateral co-operation in four areas, namely enhancing transportation connectivity, facilitating immigration clearance, promoting joint tourism development and promoting environmental co-operation.

At its fifth meeting held on 4th November 2009 in Singapore, the JMC agreed to double the number of cross-border bus services by January 2010 as a means of enhancing transport connectivity. The meeting also noted that the Malaysian Automated Clearance System (MACS) that provided frequent travellers to IM access to "fast track" lanes was extended to all frequent travellers to Malaysia in September this year. A joint study has also been commissioned to assess the feasibility of twinning Sungei Buloh Wetland Reserve with nature sites in IM as a joint tourism product. In addition, environmental agencies on both sides have continued to exchange expertise in areas such as river cleaning.

As a follow-up to the discussion between the two Prime Ministers in Singapore in May this year, both sides also agreed at the fifth JMC meeting to form a new Work Group to study the joint development of an iconic economic project in IM. The JMC will meet again in the first half of 2010 to review the progress of the Work Groups.

In the meantime, the private sector has actively seized the economic opportunities that IM presents. According to data from Malaysia, Singapore is among the top three investors in IM. Most of Singapore’s investments in IM are in manufacturing, particularly by the small and medium enterprises. Between 2006 and May 2009, Malaysia approved 178 manufacturing projects with Singapore participation in IM. The total approved investment was 2.64 billion ringgit or around 1.1 billion Singapore dollars. The majority of these manufacturing projects were in the plastics, electronics and electrical, and fabricated metal products industries. Based on industry feedback, Singapore companies have also been actively exploring investment opportunities in IM outside of the manufacturing sector. These include companies from the healthcare services and real estate sectors, amongst others.

We will continue to collaborate with Malaysia under the JMC framework to forge a productive partnership. By working together on various proposals in IM, we seek to achieve a win-win outcome that would benefit both Singapore and Malaysia.

asked the Minister for National Development (a) whether he will list the precincts of HDB flats which have undergone the Interim Upgrading Programme; and (b) for each precinct (i) where are they located; (ii) which Town Council's management do they fall under; and (iii) what is the amount of funding given.

asked the Minister for National Development (a) whether he will list the precincts of HDB flats which have undergone or are undergoing the Interim Upgrading Plus Lift Upgrading Programme (IUP Plus); and (b) for each precinct (i) where are these precincts located; (ii) which Town Council's management do they fall under; and (iii) what is the amount of funding given.

HDB introduced the Interim Upgrading Programme (IUP) in 1993 to complement the Main Upgrading Programme (MUP) and bring the benefits of upgrading to more estates. While the MUP is targeted at older flats which were built before 1980, the IUP was rolled out for flats that were built between 1981 and 1986.

One hundred and ninety IUP precincts were announced from 1993 to 2001. The budget for the IUP was $4,000 per flat.

The distribution of the IUP precincts by Town Councils is:

Aljunied

Ang Mo Kio – Yio Chu Kang

Bishan-Toa Payoh

East Coast

Hong Kah

Jalan Besar

Jurong

Marine Parade

Pasir Ris – Punggol

Sembawang

Tampines

Tanjong Pagar

West Coast

The IUP Plus was introduced in 2002 to replace the IUP. It is a combination of two programmes: Interim Upgrading Programme (IUP) and Lift Upgrading Programme (LUP). It is also targeted at blocks built between 1981 and 1986.

The budget for the IUP component of the IUP Plus is $2,400 per flat. The budget for the LUP component is the same as standalone LUP projects. It varies depending on the block configuration and is subject to the $30,000 per Benefitting Unit cost cap. Eighty-four precincts were selected for IUP Plus from 2002 to 2006. The distribution of IUP Plus precincts by Town Councils is:

Aljunied

Ang Mo Kio – Yio Chu Kang

Bishan-Toa Payoh

East Coast

Holland-Bukit Panjang

Hong Kah

Jalan Besar

Jurong

Marine Parade

Sembawang

Tampines

West Coast

From 2007, the IUP scope of works is subsumed under the new Neighbourhood Renewal Programme (NRP). The NRP is targeted at blocks built in 1989 or before. It is implemented on a 'neighbourhood' basis, ie, to two or more contiguous precincts. It allows improvements to be done more comprehensively to the neighbourhood with better coordination and integration and ensures that improvements across neighbouring precincts complement each other.

asked the Minister for National Development (a) in 2008, how many women had applied for rental flats after their divorces; (b) how many were allocated the rental flats; and (c) whether HDB can be more flexible in the allocation of rental flats to divorced women with children who lose their homes after their divorces.

HDB rental flats are heavily subsidised and are meant for those with no alternative housing options. There are eligibility criteria to ensure that only the truly needy are allocated public rental flats.

However, we recognise that there are households who are not eligible for a rental flat, but are unable to afford accommodation on their own. At the same time, their immediate family members are unable to help them. In such situations, HDB will exercise flexibility, taking into account the circumstances of the case.

In 2008, 649 divorced women with children had registered for rental flats. These include 28 for whom HDB waived the usual eligibility criteria. About 200 have already been allocated rental flats. However, owing to the limited number of rental flats, not all of them are due for allocation yet.

HDB will ensure that these households have accommodation while waiting for allocation. It will be good if they can stay with their families temporarily. For those who are unable to, HDB will refer them to its managing agent for interim rental housing (IRH). In situations where the family is in exceptional financial hardship and cannot afford IRH, HDB will exercise flexibility and consider granting them priority allocation of a rental flat.

Besides working with the family on a suitable housing solution, HDB will also refer them to the Family Service Centres for help, if necessary. This ensures that the family’s needs beyond housing are taken care of, especially for the children.

asked the Minister for National Development (a) what are the potential health hazards posed by the proximity of petrol/gas stations to residential areas; and (b) whether there is a minimum safety distance for the siting of these stations to inhabited areas.

URA plans the location of petrol stations in consultation with the relevant technical agencies such as SCDF, NEA and LTA.

NEA imposes requirements to ensure that petrol stations do not cause pollution or nuisance to the surrounding residential premises. For instance, the stations are required to install vapour recovery systems to minimise smell nuisance from fumes.

Another key potential safety issue posed by petrol stations is fire. While SCDF has guidelines for petrol stations to be sited at a minimum distance of 50 m and 90 m from residences and places of public assembly respectively in the Fire Code, these distance guidelines cannot be strictly met in all instances given the challenges posed by our urban density and site constraints. However, the SCDF also imposes other safety requirements as part of the planning process. For instance, the SCDF requires all petrol stations to apply for a licence to store or keep petroleum. SCDF requires that all petroleum tanks be installed underground in well-protected enclosed concrete or brick chambers. Access to the tanks is also required to be secured and monitored closely. Co-location of petrol stations together with other commercial or residential buildings is also strictly prohibited. These fire safety requirements help to prevent fire hazards to nearby residences.

As part of the planning process before a petrol station site is approved, the relevant agencies will carry out the necessary technical assessment to ensure that all health and safety requirements are complied with. Operating petrol stations are also subject to annual inspections by these agencies to ensure continued compliance.

asked the Minister for Health (a) what have the Health Promotion Board and Health Sciences Authority done in the past three years in combating the top five causes of deaths in Singapore; and (b) besides traditional public education on the food pyramid and cutting down on unhealthy foods, what has his Ministry done in terms of research and development to keep pace with new discoveries and studies and to educate the populace contemporaneously on the effects of certain foods such as artificial sweeteners, trans fats, chlorinated water, artificial colouring/flavouring and food additives.

In Singapore, the top five causes of deaths, in descending order of significance, are (a) cancer, (b) ischaemic heart disease, (c) pneumonia, (d) cerebrovascular diseases including stroke and (e) accidents, poisoning and violence.

To combat these major killers, our focus is on prevention, early detection and chronic disease management. The risk factors are well-established: smoking, physical inactivity, unhealthy diet, obesity, and chronic conditions such as diabetes and hypertension.

To help bring about behavioural change, we have a range of health promotion strategies, including public education, capacity building, and partnering with stakeholders in the school, community, workplace and healthcare settings, to create a supportive environment.

For instance, this year’s National Healthy Lifestyle Campaign focuses on obesity and its prevention. A national weight-loss challenge "Lose to Win" was well supported by both employers and employees at the workplace. HPB also works closely with the food industry to offer a wider range of healthier food for consumers.

Over the past three years, we have rolled out an Integrated Screening programme and launched a "Screening on Wheels" workplace programme to encourage early detection of chronic diseases and selected cancers through regular evidence-based screening. There are ongoing national screening programmes for breast and cervical cancers and a national colorectal cancer screening programme is being piloted.

For those with a chronic condition such as diabetes, HPB has launched the Nurse Educator Programme to educate and motivate them to better manage their condition. This requires support by the primary healthcare providers and the patients’ families. Compliance to proper disease management programme is key to avoiding future complications, like heart attack, stroke or organ failure.

To ensure that Singaporeans have access to safe and healthy food, my Ministry works closely with other agencies such as the Agri-Food and Veterinary Authority of Singapore (AVA) and the Public Utilities Board (PUB) to keep abreast of new developments and to educate the public regarding food and water safety.

The AVA takes the lead on food safety. It educates food traders and members of the public on the safety of food additives through seminars, workshops and dialogue sessions on a regular basis. All food additives permitted in Singapore have to pass international food safety standards. In addition, the AVA further regulates the maximum level of use of food additives by taking reference from levels permitted in other developed countries, while the HPB regularly monitors the dietary intake pattern in our local population. HSA’s Food Safety Laboratory also constantly evaluates innovative new testing methodologies for food additives, food packaging contaminants etc.

As for trans fat, HPB has conducted local studies which show that three in 10 adults, particularly those aged 18 to 39, have exceeded the World Health Organisation (WHO) recommended daily limit. We will step up public education on the harms of excessive consumption of trans fat, and work in close partnership with AVA to review the trans fat levels in the food supply.

Finally, the WHO supports the use of chlorine for disinfection of drinking water. This is safe when applied below specified levels, effective against waterborne pathogens and is beneficial to public health. PUB drinking water is treated to a quality well within "WHO guidelines for Drinking Water Quality" and is safe for life-long consumption. The WHO Guideline Value for chlorine is 5 mg/litre while the residual chlorine in PUB’s water supply is typically less than 2 mg/litre.

asked the Minister for Community Development, Youth and Sports (a) what is the present ratio of local national athletes to athletes brought in through the Foreign Sports Talent (FST) scheme in each of the core sports; and (b) whether his Ministry sees a need to set a minimum ratio to ensure that local athletes are given an opportunity to develop and represent Singapore before the spot is taken by an athlete who comes through the FST scheme.

Foreign Sports Talents (FSTs) currently constitute approximately 4.6% of the total number of athletes in the Youth, Development and National squads of the seven key sports: Athletics, Badminton, Bowling, Football, Swimming/Waterpolo, Table Tennis and Sailing. The detailed break-down for each of the sports is presented in the following table:

Athletics

0.5

Badminton

19.6

Bowling

Football

Table Tennis

12.9

Swimming

0.9

Waterpolo

Sailing

Total

4.6

The FST policy is guided by three principles; (i) openness to global talent; (ii) fairness in treatment of FSTs and local-born athletes; and (iii) ensuring the integration of FSTs into Singapore society. My Ministry does not see the need to set a ratio on the number of FSTs in each sport. Each FST application is processed individually by my Ministry and the Singapore Sports Council (SSC), and MHA’s final approval is required for athletes to gain Permanent Residency and subsequent Singapore citizenship. We would only recommend an FST for approval if our assessment is that the FST will help raise the overall standard of play in Singapore, thus benefiting the entire sports ecosystem. We also ensure that the respective National Sports Associations formulate a systematic programme to enhance opportunities for local born athletes to fulfil their potential. The elevation of standards and availability of sparring partners will certainly benefit our local-born athletes who are groomed for international competition at the highest levels.

To give greater focus to the development of local youth athletes, the Singapore Youth Sports Development Committee jointly set up by MCYS and MOE in September 2008 is currently working on broadening the participation base of local youth athletes, identifying and nurturing talent at an early stage, and greater exposure to competition.

asked the Minister for Community Development, Youth and Sports (a) over the last five years, what percentage of those enlisting for National Service are national athletes; and (b) whether his Ministry will consider requesting deferments for those who are carded as A1 athletes or are under the Project 0812 or Special Assistance Scheme.

Over the last five years, the percentage of national athletes, who are National Service (NS) enlistees, range from 0.27% to 0.48%. The breakdown of the figures is tabulated below:

No. of national athletes

No. of NS enlistees

20,000

20,000

20,000

20,000

20,000

Percentage (%)

0.33

0.47

0.48

0.27

0.32

My Ministry and the Ministry of Defence (MINDEF) recognise that NS enlistment can affect our sportsmen’s performance. Efforts have been made to minimise the impact of NS on the sports training schedules of our top athletes.

Under the Singapore Sports Council (SSC) Sports Excellence Talented Elite Athletes Management (spexTEAM) carding system, NS athletes who are graded B2 and above and have strong medal potential, may be placed under the SAF Sportsmen Scheme (SSS). Athletes under the SSS are eligible for time off and Full-Pay Unrecorded Leave (FPUL) during their full-time NS. This arrangement allows our top NS athletes to train and participate in major competitions, such as the South East Asian (SEA) Games, Commonwealth Games, Asian Games and the Olympic Games, without having to defer from their NS obligations. MINDEF also considers NS deferment requests on a case-by-case basis, where athletes may delay their enlistment to prepare and compete in major competitions.

asked the Minister for Community Development, Youth and Sports (a) how many women were given custody of their children in divorce proceedings in 2008; (b) what was the average number of children that each had custody of; and (c) what was the average age of the children.

Last year, 57% (or 3,627 out of 6,328) civil divorce writs filed involved children below the age of 21. Detailed statistics on the age of the children and which parent had custody of them is currently unavailable.

With regard to Muslim divorces last year, 66% (or 1132 out of 1696) divorces involved children below the age of 21. Of these Muslim divorce cases, 62% (or 703) were cases where the woman was awarded custody of the children. The remaining 38% were cases where custody was either awarded to the father or to both parents under joint custody. On average, each woman or man had custody of approximately two children and the average age of each child was 11 years old.

asked the Minister for Manpower (a) over the last two and a half years, how many foreign workers have been exploited by unscrupulous agents who promised them jobs which did not materialise and how much debt such workers have incurred in order to work in Singapore; (b) what measures does the Ministry have in place to curb such incidences; and (c) if the Ministry will consider (i) facilitating direct job applications by foreign workers; and (ii) making it compulsory for the employer to settle his worker’s debt to his agent in the event of a termination.

MOM does not have statistics on the number of foreign workers that have been misled by employment agencies with false promises of jobs in Singapore, as these promises are made in the source countries and are therefore difficult to verify. Based on anecdotal evidence, foreign workers typically incur about S$2,000 to $10,000 in debt to work in Singapore, depending on their source country and the number of intermediaries involved in the recruitment process.

In the current economic climate, some companies will not be in the position to guarantee jobs for all their workers, local or foreign. Some may be forced to terminate contracts prematurely. The Employment Act requires employers to provide sufficient notice to their workers prior to premature termination of their employment contracts.

However it would be onerous to force employers to settle his worker’s debt to his agent in the event of a termination. Anecdotal evidence suggests that the bulk of the fees paid by the foreign workers are often paid to fellow countrymen in their own countries. Employers typically do not have influence over the quantum of the overseas debt incurred by the workers and have no way of verifying the purported debt quantum.

Debts paid overseas are also beyond Singapore’s legal jurisdiction. It is the responsibility of the foreign governments to enforce their laws and take action against the errant employment agencies in their own countries. To facilitate the investigations of foreign governments, MOM works closely with the foreign embassies and share relevant information obtained during the course of our investigations. MOM also permits employers to recruit workers directly without going through an employment agency, thereby potentially reducing the debt quantum.

MOM has put in place a number of measures to curb incidences of local employment agencies misleading foreign workers with false promises. (a) First, MOM has tightened the Work Pass approval process to require construction and marine companies to show documentary proof that they have ongoing projects before work passes are issued.

Second, MOM introduced new Work Permit and S Pass conditions in 2008 to make it an offence for employers to accept or ask for kickbacks (1). (c) Third, MOM also reviewed employment agents’ licensing conditions to prohibit local agencies from being party to kickbacks (2).

MOM actively investigates and takes action against errant Singapore employment agencies and employers who flout our laws and regulations. Earlier this year, the SME Group of 14 companies was discovered to be involved in employing phantom workers and owed salaries to about 570 PRC workers. Three of the directors were charged in Court for employing phantom workers between February and March.

By the same token, MOM also holds foreign workers to account if they have made false accusations or statements against their employer or agency. In September 2008, 29 Bangladeshi workers from San's Marine Engineering Service, Han's Marine and K7 Engineering, approached MOM to complain against their employers for deploying them to other areas of work but were later found to be providing false information (3) and sentenced to two weeks’ imprisonment in April this year.

In instances where employers have absconded or are unable to pay salary arrears, MOM arranges for settlement packages with company representatives and facilitates their repatriation. MOM also works closely with the Migrant Workers Centre (MWC) to reach out to the foreign workers to provide humanitarian assistance such as food and lodging to those who require it.

Employers who breach these conditions will be fined up to $5,000 and/or imprisoned for up to six months under the Employment of Foreign Manpower Act. They will also be barred from employing foreign workers in future.

Employment agencies which breach the licensing regulations are liable to have their licenses revoked and their security deposits of $20,000 forfeited.