Hansard, 2010-03-05

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 (2010) To (2010) Mr Lee Kuan Yew 05 Mar 05 Mar Mr Lim Boon Heng 13 Mar 15 Mar Mdm Cynthia Phua 27 Mar 30 Mar

ABDULLAH TARMUGI Speaker Parliament of Singapore

Resolved,

That, notwithstanding the Standing Orders, the First Supplementary Estimates of Expenditure for FY2009/2010 (Paper Cmd. 2 of 2010) and the Expenditure Estimates for FY2010/2011 (Paper Cmd. 1 of 2010) be taken today. – [Mr Mah Bow Tan].

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

First Supplementary Estimates of Expenditure for the financial year 1st April 2009 to 31st March 2010, contained in Paper Cmd. 2 of 2010.

As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads Q, T and Z of the First Supplementary Main Estimates.

Question, "That the sums stated for the Heads of Expenditure as shown on page 3 of Paper Cmd. 2 of 2010 stand part of the First Supplementary Main Estimates", put and agreed to.

Question, "That the sum of $717,933,300 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the First Supplementary Main Estimates of Expenditure for the financial 1st April 2009 to 31st March 2010, contained in Paper Cmd. 2 of 2010", put and agreed to.

Resolution to be reported.

Question, "That the sums stated for the Heads of Expenditure as shown on page 6 of Paper Cmd. 2 of 2010 stand part of the First Supplementary Development Estimates", put and agreed to.

Question, "That the sum of $1,741,368,800 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the First Supplementary Development Estimates of

Resolution to be reported.

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

Expenditure for the financial year 1st April 2009 to 31st March 2010", put and agreed to.

Mr Speaker, Sir, I beg to report that the Committee of Supply has come to certain resolutions.

First Resolution reported –

"That the sum of $717,933,300 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the First Supplementary Main Estimates of Expenditure for the financial year 1st April 2009 to 31st March 2010, contained in Paper Cmd. 2 of 2010."

Second Resolution reported –

"That the sum of $1,741,368,800 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the First Supplementary Development Estimates of Expenditure for the financial year 1st April 2009 to 31st March 2010, contained in Paper Cmd. 2 of 2010."

Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions."

Question put, and agreed to.

Resolutions accordingly agreed to.

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

Column: 3051 [Mr Speaker in the Chair]

Head P – Ministry of Home Affairs (cont.)

Resumption of Debate on Question [4th March 2010],

"That the total sum to be allotted for Head P of the Estimates be reduced by $100." – [Alvin Yeo].

Question again proposed.

Community Engagement Programme (CEP) to Focus More on Youth and PRs

Mr Chairman, Sir, my sincere apologies for not being present for my cut yesterday and my appreciation to Deputy Prime Minister Wong and the Chair for allowing me this opportunity to speak today.

Let me first declare my pecuniary interest as I have been engaged by the Government to design and conduct Community Engagement Programme (CEP) workshops. But it is precisely because of this experience that I feel I have gained some insights to recommend what might be useful next steps for this increasingly important programme.

In the last few years, the CEP Directorate in MHA has directly, or through other agencies, engaged hundreds of community and grassroots leaders including CCC and IRCC leaders. Similar workshops were conducted for all Cluster Superintendants, school principals and key HODs. Apart from gaining specific skills in accurately sensing anomalies and dealing with them, feedback from participants indicated that what they benefited most was the opportunity to share openly about issues that are generally considered highly sensitive, even taboo. The feeling was that hearing the viewpoints of the trainer and other participants in a "safe" and closed-door

What was instructive was that some participants shared their surprise and sense of awakening that in spite of having been born and bred in multi-racial Singapore, there were many aspects that they were not aware of or inadvertently had been deaf to.

This got me thinking: if those who have lived here all their lives are struggling to understand the nuances of multi-culturalism, imagine the challenges faced by our new immigrants! Likewise, if these community and school leaders who are in their late 30s and 40s, on average, not sufficiently clued-in on the deeper aspects of key historical events such as the 1964 racial riots, how can we expect youths to understand this? The truth is, if we do not have a deep enough understanding of racial and religious issues as well as other social fault lines, true community engagement would be impossible.

The most effective way to engage youth and new immigrants is by reaching out to leaders in these two groups: (i) Youth Leaders – we need to start with leaders within the school system, which could include student leaders at secondary, JC, ITE, Polytechnic and University levels. We should also work with organisations such as People's Association (PA) and other prominent non-Government groups to identify youths who hold leadership positions outside the MOE catchment. (ii) New immigrants – this is likely to be a more amorphous and diverse group. I envisage the leaders of this constituency would be identified in collaboration with PA, National Integration Council (NIC) and religious groups.

To conclude, the pace at which we are seeing new immigrants and the increased exposure, especially for our

>setting, heightened their awareness and sensitivity. This is, in turn, helped to build and deepen trust, which is critical for community engagement and harmony.youths through the Internet, make it even more challenging for us to build a collective consciousness, sensibility and reflex as a society.

I thank the Members who have spoken on the MHA issues and for giving me and my colleagues the opportunity to address them.

Sir, the threat of terrorism remains real in our region, and so it remains real for Singapore too. We are an open society and we cannot insulate ourselves from the situation in our region or other parts of the world. Mr Alvin Yeo is right to point out that the threat of terrorism remains. This is notwithstanding the slew of arrests by regional authorities which Mr Christopher de Souza has noted. Indeed, despite such successes, the terrorist threat, which Mr de Souza and Mr Hri Kumar talked about, remains significant.

Firstly, this is because the appeal of extremist and terrorist ideology is still very much alive. While the majority of people reject it, terrorism remains, and it needs only a handful as its vanguard. Therefore, so long as radicalisation and self-radicalisation of individuals continue to occur, terror groups remain capable of recouping their losses with new recruits. In Indonesia, for example, the death of Noordin Top has not discouraged those he had recruited from continuing with their terrorist acts. More recently, the arrest in Malaysia of 10 terror suspects, which included individuals from Yemen, Nigeria, Jordon and Syria, are a reminder of our vulnerability to terrorist threats coming from beyond the region.

Secondly, terrorist trade-craft and methods are evolving even as security systems improve. Whether it is liquid bomb or binary bomb created to defeat

Mr Christopher de Souza asked about the steps to make Singapore and Southeast Asia safer. The most critical factor in enhancing the security of the region and, therefore, Singapore is strong intelligence and operational cooperation between our security and intelligence agencies and their regional and international counterparts. Intelligence shared between the countries has helped in the prevention of attacks and in the arrests of terrorists. We have also deployed Police liaison officers in Jakarta and Manila to facilitate cooperation and timely intelligence exchanges with these two countries.

Sir, border security is another key line of defence. Mr Hri Kumar asked whether the security measures at our checkpoints are at pace with new terrorist threats and methods. We have established a range of physical security measures at all our checkpoints and regularly review these measures. For instance, checks at our airports were immediately stepped up after the foiled Christmas Day attack on Northwest Airlines Flight 253 in Detroit. But being an island, our borders are porous. Those determined to sneak into or out of Singapore may sometimes succeed.

Our border security is about more than just our checkpoints. Maritime security, therefore, is something we must continue to pay attention to. Given the current security climate, we cannot assume that an intrusion is criminal and is not terrorist related. The Mumbai incident which saw the terrorists covertly entering the city by

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The Police Coast Guard (PCG) works very closely with the Republic of Singapore Navy (RSN) to have an integrated picture of the maritime domain. The PCG has also started to renew its fleet to enhance its detection and interception capabilities. In recent months, the PCG has achieved several successes against smuggling syndicates. This underscores its ability to prevent intrusion through our coastline.

We will not tolerate any sea-borne threat to our domestic security. If an intruding vessel refuses to stop despite repeated instructions to do so, the PCG will shoot at the engine of non-compliant vessels to stop them at sea. Such disabling fire will be employed only when absolutely necessary, and the Police's response will be proportional to the threat posed.

detection technologies or explosives in shoes or underwear, we continue to see the creative determination of terrorists to circumvent security defences. The intent of terror groups to stage violent attacks has not diminished, even if the opportunities to do so, especially for mega attacks, are fewer than before because of a general hardening of potential targets by the authorities.the sea tells us clearly that such an assumption could make us dangerously blinkered.

Safeguards are in place to ensure that the responsible use of force is being complied with. The PCG officers have undergone intensive proficiency training and will appraise the ground conditions carefully before employing disabling fire. Disabling fire will not be employed if there are any reasonable risks to innocent vessels or persons.

Sir, we are constantly seeking out new technologies to strengthen our borders security. At our Tuas Checkpoint, for instance, we have developed a facility for our frontline officers to test and detect suspicious chemical, biological, radiological or explosive substances.

Ultimately, however, our most important asset in security is still our people. Public vigilance is key to deterring terror cells from taking root in our community, a concern raised by Mr de Souza. Singaporeans need to play their

In line with this approach, we have piloted over the last year an initiative called Threat-Oriented Passenger Screening Integrated System (TOPSIS). This initiative involves the Home Team working in an integrated manner with frontline officers and the stakeholder entities at each of these checkpoints to better identify and respond to suspicious individuals. For instance, the non-security communities such as the airport check-in counter staff are trained to assist security agencies to identify suspicious passengers.

Such an approach is not new. We have always emphasised how important it is to mobilise our public to be vigilant and prepared. Hence, we have always sought to work closely with our public and private sector partners. Whether it is for high profile events like the coming Singapore Youth Olympic Games, or protecting critical infrastructure or private developments such as the IRs, the best way to balance security with other important considerations is to factor in security considerations from the outset in the planning for these events and developments.

This was indeed the approach that we took with the IR which Mr Arthur Fong asked about. The Home Team engaged the IRs from the design stage to ensure

Ensuring public vigilance and crisis preparedness of the community - a matter raised by Mr de Souza and Mr Arthur Fong – is a continuing effort of the Home Team. As Mr de Souza also mentioned, complacency of Singaporeans is always a concern. The more we are free from a terrorist incident or even a natural disaster, the more people are inclined to take security for granted. Be that as it may, we must persist with efforts to enhance crisis awareness and contingency preparedness at all levels. I would urge Singaporeans not to be complacent and to take their security and safety for granted. They must do their part.

Last July, we conducted Exercise Northstar VII. This involved Government agencies, the private sector and the community. In August last year, we launched a workshop series on crisis management. The first workshop was customised for senior security executives in the hotel industry. We will be conducting further workshops later this year to reach out to other corporate sector partners.

At the level of the general public, we have been developing the Community Engagement Programme (CEP). Now in its fourth year, the CEP has reached more groups than ever. The constituencies' CEP-Ready certification programme, for instance, has seen the development of baseline crisis response capabilities in almost every constituency.

Mr de Souza asked how we can stop terrorist ideology from infecting our

In this regard, I commend the efforts of our various local Muslim groups and scholars and the Religious Rehabilitation Group. Understanding the vulnerability of the young and that their medium of choice is often the Internet, many of these Islamic scholars are working through their websites and blogs to counter the toxic influence of extremist ideology propagated through the Internet.

I assure Members that we will do everything reasonable and practicable to prevent a terrorist incident and to mitigate its consequences, especially on our communal harmony and social cohesion, if it occurs. It is important therefore that Singaporeans play their part and continue to strive to be vigilant and prepared, and to nurture the bonds of trust within our community.

Ultimately, however, Sir, we need to be always realistic and balanced when we deal with security. On the one hand, we should not be in denial. The threat is real and we are not immune from it. On the other hand, we must recognise that no security system can be completely foolproof. Risk-based judgments and trade-offs must be made at all times. Life must go on despite the continuing threat of terrorism.

part by being our eyes and ears on the ground and reporting any suspicious happenings that they see. Indeed, individuals in any potentially targeted domain have local knowledge and instincts which are useful to tap on and are of a security value. If they can be trained and sensitised to look out for potential security risks, they will expand the community of security vigilance in our domain. By involving the community, we are also educating and preparing Singaporeans against a terrorist attack, which Mr Hri Kumar has correctly pointed out is key.that the safety and security requirements are addressed. We have also enhanced our response capacity for the IRs – for instance, the Marina Bay Neighbourhood Police Centre is already operational and the Fire Station will be operational next year. community. Here, we have very good work being done in the countering of extremist and terrorist ideology. The persisting threat of self-radicalisation makes these efforts even more critical today.

Sir, I will deal with the questions raised on Home Team resources, law and order at the Integrated Resorts (IRs), race classification, maintaining religious harmony and irresponsible Internet behaviour.

I agree with Mr Alvin Yeo's speech that we cannot neglect Homeland

Moving forward, we are looking to increase ICA manpower at the checkpoints and staffing a new cruise terminal. For SCDF, we will have a new fire station for Tuas View and a new Fire Post at Sentosa. More manpower will also be allocated for frontline policing and key operational roles like investigation and intelligence.

There is a limit to how much additional resources can be pumped in to the Home Team. However, there are pressures, like an expanding population, as pointed out by Mr de Souza, an increase in mega events and a more complex security environment. Thus, as I had shared in last year's COS debate, it is important for us to deal with these constraints in a holistic manner.

First, there must be force multipliers, like technology, to maximise the utility of limited resources. Second, we should partner the private sector to augment the security force and also free up Home Team officers to perform more critical functions. Third, we need to forge deep and meaningful collaborations with community partners.

The long-term solution cannot be to continue growing the size of the Home Team indefinitely. Instead, our resources must be allocated to areas that best optimise their training capabilities. And this must be to combat crime and not to do pest control like catching snakes.

On the IRs, Mr de Souza, Mr Arthur Fong, Mr Ang Mong Seng and Dr Ong Seh

We have been focusing on the different potential threats faced and beyond issues relating to regulating the casinos. Being iconic, the IRs are potential targets for terrorists. We are also mindful, given the experience of other jurisdictions, that the casinos may attract criminal elements including organised crime, vice, moneylaundering and loansharking. We have from the outset built capabilities to deal with multi-faceted threats.

The Casino Regulatory Authority (CRA) was set up in April 2008. The Casino Crime Investigation Branch (CCIB) was set up to deal specifically with casino-related crime. The new Marina Bay NPC and Bukit Merah West NPC will oversee general law and order at the Marina Bay Sands and Resorts World Sentosa (RWS) respectively.

With regard to vice activities which Mr de Souza asked about, the Police has increased the number of officers available to deal with vice. Police Land Division officers have been vested with the same powers as those from CID to curb vice-related activities.

Since the casinos started operations, the law and order situation has generally remained under control. It is early days yet but we will monitor the situation closely.

As for the issue of problem gambling, that is under MCYS' purview.

I will now turn to Ms Irene Ng's question which can be broken down into two distinct points. One, that there should be a new category of 'Singaporean' in the 'race' field of the NRIC. And two, we should ensure a level playing field for all citizens regardless of race, language or religion.

The example of France and many other countries tells us that. Indeed, in the Singapore context, there is much to be said for openly accepting our ethnic differences and celebrating our ethnic and cultural diversity. That diversity can be melted into great strength if properly handled – witness our ability to span across Asia and take part in the rise of China, India and parts of Southeast Asia.

However, we must not lose sight of one basic fundamental ideal which really underlines Ms Ng's point. While we acknowledge our different ethnicities and cultures, underlying this is the ideal that they are all Singaporeans first and foremost – this has to be the foundation for our society. We will support each other and fight for each other. The Singaporean national identity has to be nurtured and strengthened into a powerful unifying force. The Singaporean identity has to be made stronger than the individual ethnic identities. But that ideal is not going to be achieved by us ignoring our ethnic diversity, nor would our ethnic diversity go away because we do not reflect it in our NRICs. Even in countries with highly egalitarian ideas, with far longer history than ours, race still continues to be a central tenet and fact of

Let me deal with Ms Ng's second point on ensuring a level playing field for all citizens regardless of race, language or religion. I agree entirely. I said earlier that, as a society, we can in fact be stronger if we celebrate our diversity and draw strength from that diversity. It will however not be possible to draw such strength if any ethnic group is discriminated against.

Our pledge sets out what our ideals are. As a Government and as a society, we have striven to achieve those ideals. Nevertheless, in a society like ours, from time to time, there will be perceptions of discrimination as well as actual cases where discrimination occurs. That happens in every multi-ethnic society. And discrimination on some differential basis occurs in every society. That is the reality of social organisation. The key is that our Government and public institutions, as a matter of public policy, do not tolerate such discrimination. We do our best to ensure a level playing field based on meritocracy. By and large, we have been successful, though in issues like this, it is always work in progress. We have a society whose fundamental tenet is meritocracy and all ethnic groups have made substantial progress. We have a good foundation for our society to move further forward to achieve the vision in our pledge.

security. Mr Yeo observed little or no manpower increases in the Home Team this coming year. That comment has to be seen in context. In 2009-2010, the Home Team saw significant increases to establishment for Police (1,315 or 11%), ICA (1,275 or 33%), CNB (64 or 10%) and SCDF (205 or 10%). Hong were concerned about issues relating to vice, loansharking and other social menaces. I will now respond to each of her points. First, the idea that there should be a new category of 'Singaporean', for those who prefer to state that, rather than ethnic identity. An idea like this has to be realistic, acceptable to the majority, and capable of being implemented effectively. The reality is that ours is a multi-ethnic society. Our people are heirs with several cultures which have long, proud and rich traditions, stretched over thousands of years. Ethnicity and culture identity, and identification along those lines, are not going to disappear by doing away with it in our NRIC or providing an option for people to avoid stating their ethnicity.society. It does not go away easily, even over hundreds of years. Thus, it is best to be pragmatic and realistic while not losing sight of achievable ideals. While race does not always equate to culture, it most often does. Policy has to be based on the norm rather than the exception.

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Despite this, we occasionally face incidents of conflict and tension, as pointed out by Dr Ong. Ethnic and religious diversity pose some challenges to social order as different groups pursue their interests, sometime over enthusiastically and passionately. Our approach towards resolving such disagreements is that they should be mediated or resolved on the ground through common sense and moral suasion using the collective efforts of the community, grassroots and religious leaders. However, there may be times when such efforts are not enough. In such instances, the authorities will step in to deal with the problem, and I do not think that anyone doubts the will and resolve of the Government to deal with these issues effectively and quickly. Dr Ong suggested sending out a stronger and clearer signal for every breach. Ideally, such action by the authorities should be few and far between. The long-term solution to religious disputes must reside in mutual understanding and trust among the different groups and their leaders. Dr Ong's suggestion that religious clerics undergo a course on religious harmony is really a matter for MCYS to consider.

I will end by addressing the issue raised by Dr Maliki about irresponsible Internet behaviour. The Government has generally taken a light touch approach on regulating the Internet. However, we do take a serious view of those who take advantage of the anonymity offered by the Internet to do harm to others or to the community. We will not hesitate to take action in such cases. Should the

Let me now move on to religious harmony. Dr Ong Seh Hong spoke about the need for religious tolerance and harmony. Singapore's peaceful communal relations are the result of the careful management of relations between the various racial and religious groups by the Government and the commitment of our people to the ideals and value of communal harmony. At the core is the policy that the Government of Singapore is secular and that the secular law is supreme. This ensures that all races and religions are given equal protection under the law. Government go further and criminalise more irresponsible Internet behaviour? In France, it is an offence for anyone to broadcast images of certain classes of violent crimes, including severe beatings or rape. While Singapore does not have such a law, we will monitor developments and review our practices and laws where necessary. Ultimately, the Internet cannot be a place where the law is suspended. There has to be accountability for actions on the Internet as well as in the physical world.

Mr Chairman, I will address issues on loansharking, drug abuse and the law and order situation in Singapore.

On loansharking, Mr de Souza and Mr Ang Mong Seng asked if the new measures introduced recently have deterred loansharks. When I moved the amendments to the Moneylenders Act in January, I said that we should not view the enhanced measures as a silver bullet or a panacea. While the strong endorsement in this House signalled clearly our collective resolve to tackle this scourge, much more work remained to be done by all stakeholders. Since the passage of the Bill, which came into force on 11th February, I am gratified that more hands have come on deck to deal with this scourge. The fact that MPs have raised this topic at this COS is a warning to all loansharks and their runners that our sights are set on them.

Sir, on enforcement, Police has pressed on with its ground efforts. Arrest figures remain high, 958 arrests last year, a 90% increase compared to the year before. Arrests reached a high of 132 in January this year compared to a monthly arrest rate of 80 last year. That shows that Police is pressing on the ground too. This is achieved through ground operations to disrupt the runners as well

On prosecution, three persons have been charged for loansharking activities committed after the amended Moneylenders Act came into effect. If convicted, they will be subject to enhanced penalties and we will publicise these cases as a warning to others. On preventive education, the National Council on Problem Gambling has intensified its outreach to warn against over-extending oneself in gambling. Mr Ang asked if loanshark syndicates have acquired smaller operations to increase their strength. I think he was citing an article in the Chinese press on what is allegedly happening in Malaysia. Sir, Police has not observed such a trend and would be happy to receive any information on it. Even if it happens, Police is able to counter it. On whether CCTVs can be installed at households harassed by loansharks, Sir, we are already doing so. Police procured more CCTV systems this year and are working with households to install them, especially innocent households which have been harassed many times.

As for his other suggestion, the Court now already has the powers to order a convicted loanshark to compensate the victim for damage done to the unit. However, as we all know in this House, a more practical approach is the current one where the Town Council expeditiously rectifies the damage, so that the impact is minimised. That is a key point. As rampant harassment affects not just the harassed households', but the neighbourhoods' sense of well being as well, it is quite in order to tap Town Councils' funds for this purpose. After all it can be

Mr Arthur Fong, Mr Christopher de Souza and Dr Ong Seh Hong are concerned that the casinos will attract more loansharking activities. The recent amendments arm us with more powers to cripple the loansharks and impose tougher penalties on the perpetrators. Measures to ensure that licensed moneylenders do not venture into loansharking activities have been enhanced. In addition, under the Casino Control Act, a casino operator must take all appropriate steps to ensure that unlicensed moneylending or related activities are not conducted by his employees, patrons or any other persons inside the casino. Exclusion orders will prohibit those with serious criminal backgrounds, including loansharks, from entering the casinos. Hence, let me assure them and Mr Ang that Police is ready to meet this challenge.

Sir, in summary, tackling the loanshark scourge is really work in progress. The Ministry of Home Affairs will closely monitor the impact of the enhanced measures. And as I have said, if necessary, we will adopt additional measures to tighten the noose around the loansharks. Meanwhile, let us all work together to combat this scourge.

Sir, I now turn to drug and inhalant abuse. The context is how our drug and inhalant abuse situation has evolved over the past decade. The start point should be the year 2000, that is, pre-Subutex days, not 2005, which is the height of the Subutex phenomenon. I assure Mr Alvin Yeo and Ms Sylvia Lim that the drug abuse situation is well under control. In the year 2000, we arrested 3,157 drug abusers. Arrest figures dropped to a low of 793 abusers in 2005, but picked up thereafter, reaching 1,883 abusers last year which is

as intelligence-led ones targeting syndicates. The number of harassment cases, after spiking from around 11,400 in 2008 to 17,883 last year, has shown signs of stabilising. So, in response to Mr de Souza, there are encouraging signs.your neighbour's unit being harassed today, it can be your own unit harassed tomorrow. So, it is a collective effort. a 2% decrease from the 1,925 abusers arrested in 2008. Members of this House will recall that there was a distortion in the drug situation between the years 2002 and 2006, caused by the availability of Subutex as a legal prescription drug for the treatment of opiate dependence. Many who used Subutex indiscriminately during that period were heroin abusers who had switched to Subutex as a legal alternative. Our classifying Subutex as a controlled drug in August 2006 resulted in an upswing in the number of drug abusers arrested, from the artificial low of 793 in 2005 to 2,211 in 2007. This is because CNB aggressively conducted enforcement action to arrest Subutex abusers, as well as Subutex users who had reverted to heroin arising from the tight supply of Subutex in the illicit drug market. So, indeed, there was displacement. But the point to note is that the total number of opioid abusers, ie, heroin and Subutex abusers taken together, has been decreasing since 2007. Sir, heroin has remained the most popular drug of abuse over the decade. However, proportionately, its abusers amongst all drug abusers actually decreased from over 90% in the early 1990s to 81% in the year 2000 to 57% last year. With 1,080 abusers arrested last year, the situation in fact is much improved compared to the 2,557 abusers arrested, pre-Subutex phenomenon, in the year 2000. So, notwithstanding the Subutex phenomenon, the situation has improved over the years. Now on the socio-economic profile of heroin abusers, 90% arrested in 2009 had Secondary qualifications or below. About four in 10 (43%) were employed at the point of arrest – the majority being cleaners, labourers or holding related lower-income jobs. Eighty percent of them had criminal antecedents. Sir, on the high percentage of repeat abusers, we will continue to galvanise the community, addicts’ families and employers to tackle this challenge. In fact, the numbers have decreased because of the improved relapse rate, down to 14% from 37% in the year 2000. Last year, 17% of arrestees had previously been on Long Term Imprisonment, or LT. Whilst rehabilitative opportunities are available to addicts willing to change, the fact is that there will always be a group of hardcore abusers who persist in their addiction. So, a key focus is to prevent people from getting on to the slippery slope in the first place. And to the credit of all of Home Team agencies which are engaged in preventive education, including NCADA, the number of new abusers arrested remains low, at 553 last year, or 29% of all abusers arrested. Sir, on inhalant abuse, in 2000, we arrested 133 inhalant abusers, a far cry from the peak of 1,112 inhalant abusers arrested in 1987. The inhalant abuse problem had steadily improved after the Intoxicating Substances Act was implemented in 1987. However, the number of inhalant abusers arrested increased between 2005 and 2007, peaking at 644 in the year 2007. CNB then acted decisively by stepping up preventive education and enforcement. As an average of seven out of 10 inhalant abusers arrested each year were youths, of whom about 50% were students, CNB worked with MOE and MCYS to resolutely tackle the problem. Sir, as with other youth problems, it is correct to address parents as they can play a role, both in prevention and detection of aberrant behaviour in their children. These efforts arrested the spike in numbers and stabilised the situation. So last year, 600 inhalant abusers were arrested, down from the peak of 644 in the year 2007. Sir, as to whether the Malay community is disproportionately represented compared to the other racial groups, in the year 2000, Malays formed half of all drug abusers and 26% of inhalant abusers. Last year, Malays formed less than half, at 44% for drug abuse and 37% for inhalant abuse. Now even though they are over-represented in these statistics, what is encouraging is that the number of Malay drug abusers arrested dropped from 1,575 in the year 2000 to 832 last year. In fact, this 47% decrease over the decade is the largest registered across all racial groups. The number of Malay inhalant abusers arrested has also declined by 14% from its peak of 258 in the year 2007 to 222 last year. Sir, Mr Yeo is concerned that the integrated resorts and bustling nightlife in Singapore could result in more abuse of psychotropic drugs. To prevent the drug culture from taking root, CNB conducts regular raids at nightspots. The National Council Against Drug Abuse (NCADA) also actively engages entertainment outlets to play their part in keeping their premises drug-free in their annual Clubs Against Drugs campaign. Overall, the psychotropic drug situation is under control.

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A key challenge is to keep illicit drugs out of Singapore. This is because of the ready supply of drugs in the region and the proximity of methamphetamine production activities near our borders. But CNB will remain vigilant, aiming to disrupt or cripple drug trafficking syndicates and their runners who target our local market. As a society, we cannot go soft on drug abuse. I am confident that our long-term drug and inhalant abuse situation will remain under control, even though there could be fluctuations in abuse rates, if we all keep our resolve to keeping Singapore drug-free. I say this because just like crime rates, drug abuse rates cannot keep on declining all the time. There may be some fluctuations. But over the long term, I think we are on the right track.

Sir, on our crime situation –a point Mr Christopher de Souza makes – let me assure him that the general law and order situation is good. Indeed, Singapore has one of the lowest crime rates in the world. I assure him that the increase in number of foreigners in Singapore has not led to a rise in crimes. On the contrary, with strong enforcement by the Police, tapping technology and with proper training for its officers, and working with a vigilant public, the overall crime reported in Singapore has actually declined over the past five years. Overall, crime decreased from 37,093 cases in 2005 to 32,968 cases last year, despite our population is increasing. On a per 100,000 population basis, the overall crime rate fell from 870 in 2005 to 661 in 2009, a reduction of 24%. Indeed, the crime rate last year was the lowest in the past seven years. Sir, on criminal records, Dr Maliki is correct that a key part of our crime reduction strategy is to help ex-offenders who genuinely want to change and gain a fresh start in life after they have paid their debt to society. In October 2005, we implemented a second chance policy. Someone who has committed minor offences will have his criminal record marked as "spent" after a period of time, so that he can reply "no" when asked if he has a criminal record, even though the fact that he has been convicted remains. This is not the same as "expunging" the record, which is also what Dr Maliki talked about, which goes further to obliterate even the fact of the conviction, an approach we did not adopt. Sir, to strike a balance between the interests of ex-offenders, employers and society at large, only records of less serious crimes where the offender receives a light punishment qualify to be rendered spent. This is why, to maintain this balance, for sensitive vocations like security officers and airport employees, applicants are screened for past criminal records. But let me assure Dr Maliki that even for security officers, Police takes a calibrated approach, taking into account the nature of the offence and how long ago it was committed. So in line with the Yellow Ribbon movement, we have in fact allowed ex-offenders to work in the security industry. Since 2005, more than 142,000 persons' criminal records have been rendered spent. As to how many of these persons have subsequently re-offended, based on Police records on reoffending in Singapore, the re-offending rate is less than 2%. Sir, Dr Maliki asks if there is any intention to expand the "spent" regime. As it has been five years since its implementation, just like the Home Detention scheme which we expanded after operating it for several years, the Ministry of Home Affairs will monitor the scheme to see if there is a need to widen the criteria. Sir, let me conclude on these cuts. The issues of loansharking, drug abuse, and crime are matters which concern all Singaporeans. The Home Team will press on resolutely to tackle these problems, explore new and pragmatic measures and approaches to sharpen its arsenal. Ultimately, however, what the Home Team can achieve depends not only on the professionalism and dedication of its officers but on the support they enjoy from a public who shares their commitment to keep Singapore safe and secure.

Sir, I will now touch on recidivism, road safety and safe cycling and the Community Engagement Programme.

Singapore Corporation of Rehabilitative Enterprises (SCORE) and community partners. Within the institutions, Prisons has a classification framework which assesses offenders' risk of re-offending and rehabilitation needs. Specialised Treatment Programmes also address specific risk factors such as substance abuse, criminal thinking and sexual offending behaviour. In parallel, SCORE has various activities to enhance inmates' employability. This, as Dr Maliki has

emphasised, is an important protective factor for ex-offenders. SCORE conducts training in workplace literacy and numeracy skills and offers certified courses in retail, electronics and IT skills. Potential employers are also invited into Prisons to help offenders secure jobs even before their release. In 2009, SCORE offered employment assistance to a total of 1,344 inmates and ex-offenders. Of this number, employment was secured for almost 85%. If an ex-offender is sincere and does not have unrealistic expectations, SCORE will be able to find him a job. It may not be the

integrate into the community after their release. Prisons partnered with the Singapore After-care Association (SACA) and the Singapore Anti-Narcotics Association (SANA) in 2001 to provide offenders with aftercare assistance to adjust to life outside prison. In order for re-integration to succeed, the community must be willing to support and accept ex-offenders who want to change for the better. The Yellow Ribbon Project, which started in 2004, has achieved progress on this front. Many volunteers have since stepped forward to help by providing religious counselling for inmates, assisting their families and employing ex-offenders. What more can be done. It took us almost a decade to build up our structured rehabilitation and reintegration regime, and to achieve our low recidivism rates, we have to garner the support of dedicated volunteers and partners. We note Mr Alvin Yeo's concern on the rising trend of recidivism, and will continue to monitor this and endeavour to keep it down. However it is not realistic to expect our recidivism rates to continue to fall indefinitely and there will be fluctuations from time to time. Notwithstanding the relatively low recividism rate, we continue to explore how our programmes can be improved and whether they can be refined to better reach specific target groups such as youths. Likewise, while the recidivism rate for Malay and Indian offenders has

educational efforts in 2010. We will continue to work with the Ministry of Transport and the Land Transport Authority to raise safety awareness through public education programmes, and create a safer environment for cyclists by providing adequate infrastructure and facilities. Let me touch on Mr Viswa's speech and cut on Community Engagement Programme (CEP). Mr Viswa suggested that the CEP engage youth leaders, both within the school system and outside, as well as PRs and new citizens. These are indeed important constituencies that we have reached out to under the CEP. We have adopted a multi-pronged youth engagement approach to engage not just youth leaders but youths in different sectors. Within the school system, we work with the Ministry of Education to engage principals and teachers in workshops where they are equipped with CEP-related skills such as

Before this, we have been building awareness of CEP through talks and interactive projects at youth camps. The recent SG United Jamboree held in January 2010 provided students with an opportunity to interact with peers of other races and increase their understanding of terrorism, emergency preparedness and safety and security issues. Most of the helpers and participants in the Jamboree had also previously participated in Home Team-related camps which included a CEP dimension. Another approach is to tap on existing youth-based structures and their activities. For example, students from the National Civil Defence Cadet Corps (NCDCC) are engaged through the CEP Badge, which they can earn by performing CEP-related activities. We have also started working with partners such as the National Youth Achievement Award (NYAA) Gold Award Holders' Alumni to organise a NYAA-SG United Forum in June this year.

Dr Maliki asked about the recidivism rate in Singapore, defined as the percentage of local inmates who are imprisoned again for a new offence within two years of their release. Singapore's recidivism rate has declined over the years from about 44.4% for the cohort released in 1998 to an all time low of about 23.7% for the cohort released in 2004. Although the recidivism rate has since increased slightly to about 26.5% for the cohort released in 2007, this is still low by international standards. The general decline in recidivism over the last decade is the result of concerted efforts by Prisons, thebest paying job but it will be a fair wage based on his skills and competencies. More importantly, he will have a stable income until a better job offer comes along. The final and arguably most critical part of the equation is ensuring that offenders can successfully re-decreased over the years, it is still higher than the general recidivism rate. This is something we have recently been studying together with various relevant agencies. Now on cycling, Mr Michael Palmer asked about educating cyclists on cycling regulations and safe cycling behaviour. The Traffic Police (TP) has already been doing this through road safety talks and exhibitions in schools, workplaces and neighbourhoods. The talks cover a pre-riding checklist, safe cycling tips and case studies of accidents involving cyclists. Through these platforms, cyclists are reminded about safe cycling behaviour as well as the need to abide by all road traffic rules, including the Road Traffic (Bicycles) Rules. These rules include hand signals showing the intention to stop, riding close to the left hand edge of the road, riding in an orderly manner, and carrying a lamp with white light at the front of the bicycle during hours of darkness. Mr Palmer asked why cyclists are not required by law to wear helmets. The practice of mandating the use of bicycle helmets varies from country to country. The experience of other countries has been that education and community-based programmes, as opposed to legislation, have been more effective in promoting the use of helmets. TP will continue to work with organisations such as the Singapore Amateur Cycling Association and the Safe Cycling Task Force, to promote the wearing of protective cycling gear. TP will monitor the situation and assess if there is a need to mandate the use of helmets in future. In addition to public education efforts, TP also takes enforcement action against errant cyclists who flout the rules by cycling on footways of roads. In 2009, more than 600 summonses were issued to such cyclists compared to 115 issued in 2008. The current penalties are usually a composition fine of $20. We are reviewing whether to increase the composition amount for greater deterrence. In addition, most Town Councils have by-laws prohibiting cycling on HDB common property such as pavements, and open spaces such as void decks. Action can be taken against cyclists who disregard these laws. In 2009, there were 583 accidents involving cyclists resulting in fatalities or injuries compared to 604 for 2008. This is a decrease of 21 cases, or 3.5%. The number of fatalities involving cyclists who died in accidents also went down by 22.7% from 22 to 17. Notwithstanding this modest improvement, cyclists have been identified as a key target group in TP'smediation, which may come in useful in a school environment.

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The more mature or student leader groups are engaged through discussions at workshops or forums via the SG United Journey for Student Leaders (Tertiary) programme. The inaugural session for this was held recently with student leaders from NUS religious groups and clubs.

SCDF has also piloted a Civil Defence Lionhearters Club in Singapore Polytechnic where students are trained in basic emergency preparedness skills, exposed to the CEP concept and given the chance to do humantarian relief work overseas. We will continue to engage with future sessions on mediation and understudying ethnicity.

Mr Viswa Sadasivan mentioned that we should extend the CEP to reach out to

PRs and new citizens. The CEP right now does not specifically target this group or cater to them but rather looks at the community in Singapore as a whole. Nonetheless, we will explore ways on how to develop this further with the National Integration Council under MCYS.

We still have time left for clarifications. Yes, Ms Ng.

Sir, I would like to thank the Minister for his reply.

I just want to clarify that I did not call for the abolishment of race as a category in the identity card and I did not call for anybody to ignore that we are ethnically diverse. In fact, I am all for celebrating our cultural diversity and maintaining that. What I was referring to in my speech was the trend of mixed marriages and the expectation that with more Singaporeans inter-marrying, there will be a situation where they will be forced to choose a dominant race for their child which is artificial. Let us say, if you are a quarter Chinese, quarter Malay, quarter Indian, quarter Eurasian, you are forced to choose one as a dominant race. After a certain point, and that can be multiplied over the generations, it becomes entirely artificial.

So I am asking the Minister to open his mind to just consider the possibility that there might be, may be not many, a few Singaporeans who are stuck, and they might want to choose another category for their own race which may not be the dominant ones – a new category called "Singaporean". This is not as far-fetched as it sounds. For instance, the Babas and Peranakans, originally from China, settled in the Straits for a long time. But they imbibed the Malay culture, there were inter-marriages, they assimilated into the western culture, spoke English, formed their own culture and,

Sir, I just raising the idea and, of course, I did not expect the Minister to agree today. But I just wanted to raise the idea that there is a possibility that there are some people who want to opt for the category of "Singaporean". We should not deprive them of this option if that is what they should wish for.

The other point I was making is that we should, as far as policy is concerned, try to emphasise a national consciousness rather than a racial consciousness in terms of our approach to solving national problems. Again, this is not a call to ignore the influence of culture on behaviour or to ignore the strength of the influence of culture on performance. Rather, it is a call for a national approach so that we solve problems based on individual's situation, or maybe even class – because it is a whole class of people who are poor, under-performing, suffering from low esteem – and based on those traits not the colour of the skin or what you see in their identity cards.

I take courage that although it seems unrealistic to the Minister –

today, it is a very distinct racial group from the Chinese. Similary, the Eurasians. And if you look at other national groups, for instance, the Filipinos, they are also of a mixed tribe. But when we look at them in the identity card, we call them Filipinos.

Ms Ng, could you make your question brief?

Sir, one last point. I take courage that, at least, I am not entirely alone because the founding leader, Mr Rajaratnam, also espoused this very strongly. I am not here to hold a brief but it is something I hold strongly as well.

Could I remind Members that clarifications are what they are, and not to make speeches that you cannot make during your cuts. This will

allow us to take as many clarifications as possible. Mr Shanmugam.

Sir, I thank Ms Ng for her clarifications. I think we are ad idem if she says that she is not calling for abolishment of the "race" category. Her point on mixed marriages, I accept it, but it is too soon to say that it is creating a new racial category and, therefore, people will want to call themselves "Singaporean" under the rubric of race. It seems to be a leap which is at present not justified by the fact. But if it develops along those lines, some future government, I am sure, will consider that.

As to her point that we should emphasise national consciousness, I agree entirely with her. In fact, that was the thrust of my speech. We have to emphasise the Singaporean identity. That is the ideal. This is a society built on those ideals. As for problem-solving, as for dealing with, say, a class of poor, we solved it and tackled those problems in a number of ways. From the governmental perspective, we treat them as people who need help and we give a variety of assistance which is completely blind to race, religion or language. It is need-based.

However, at the same time, we are practical enough to realise that voluntary help often comes, for example, if you look at the self-help groups, which are based along ethnic lines. Some people disagree with them, but they have a tremendous success. And that is the reality. People come out and volunteer more often. There are others whom they are helping with whom they can identify and race is a fairly strong identification factor. But if you look at the ethnic groups, they do have a substantial percentage of volunteers who are not of the same ethnic group. For example, SINDA has about 10%-11% who are non-Indians. And that is a trend that we want encourage. But at the same time, we must be practical

enough to realise that you can bring in people if you can give them a sense of identity. So it is a multi-pronged approach. But I think underlying it, the Government and Ms Ng are ad idem.

Sir, I have two clarifications for the Senior Minister of State regarding drug abuse. The first is: in his response earlier, he mentioned that of the heroine abuses arrested, about 17% were previously released from long-term imprisonment. I wonder whether he can also tell us if we use those offenders who had been released from long-term imprisonment (LT) as a denominator. How many of those who had been released from long-term imprisonment actually have gone back to drugs? Does he have that data for us, ie, the percentage re-offending after coming out of LT?

A second clarification is regarding the socio-economic profile of the heroine arrests: he mentioned that four in 10 were employed, meaning that six in 10 were unemployed. He also mentioned that 80% had criminal antecedents. I would like to ask him whether this actually indicates a real problem with re-integrating people who have previously been involved in crime or drugs back into society. Where is the source of that problem lies? Is it to do with the offender's physical condition, perhaps? Is it to do with employers or a lack of skills? Is the Ministry satisfied with this situation or is it the aim of the Ministry to try to improve the socio-economic re-integration of people involved in crime and drugs?

Sir, I take the second point first. I think the point is taken in terms of the socio-economic profile of those who take heroine that many are unemployed. Even those who are employed, they are on low-paying jobs. And some, in fact, do not have family support. These are people who are

Even in terms of the messaging, I think Ms Lim will know that over the years, the messages sent to prevent people from taking drugs or prevent people who have gotten onto the drug slope to get out are very direct. This is also because some leeway is given to the National Council Against Drug Abuse to produce messages that have impact, not overly sophisticated which will hit even people with low education background and who may not as sophisticated. Let me assure Ms Lim on this point that we do take into account the target group when we devise programmes.

The other point Ms Lim talked about is repeat abusers. Yes, this is something that we are grappling with. I have mentioned that, perhaps, because arising from our very successful preventive drug education programme, the percentage of new abusers is very low. I think this is quite right because it is a slippery slope and once you get on to the slope, it is not easy to get off. Some succeed but others may not. And we know that heroine, from research, is a very addictive drug. So this is one area which the Ministry has been working on together with all the other agencies. That is also why after the Committee came up with its report about 15 years ago, that was in 1994 or 1995, shortly after that, we implemented the LT

As I have said in my speech, about 13% of those who were arrested last year had been through LT1. In terms of the numbers for last year, the total arrested was 1,883 and those who went onto LT2, because they had been through LT1, was 315 (17%).

hard-pressed. Perhaps that is the reason why some of them take drugs. In devising programmes for these people, yes, the target group and how the programmes can relate to them, that is taken into account. For example, community groups out there are roped in, because community groups, like Mr Shanmugam has said, understand the ground situation better. For example, for the Malay drug addicts, both MENDAKI and AMP and even groups like 4PM, Ain Society, and working with halfway houses like Pertapis and Jamiyah – all these are roped in.scheme. The LT scheme not only is a deterrent for those who have gone in from re-offending, it is also a scheme where those who have been taking drugs and who possibly may influence others to take drugs, they are taken out of the system for a few years. In that sense, they will not contaminate the ground. So, first timer sent to DRC; second timer sent to DRC and then we have got LT1 where you are in for three-and-a-half years after remission and after that, LT2. This is a system that we have employed.

Yes, Ms Ng. I give you 30 seconds for your clarification.

May I ask the Minister on terrorism? Our Singapore Navy is now on alert because of intelligence that there is a terrorist group planning attacks on our oil tankers in Malacca Straits. Can I ask the Minister for an update on the situation, whether there has been any suspicious activity in the area and whether he knows which terrorist group is planning the attacks?

Sir, we received intelligence from our liaison partners about a possible plot to go and attack vessels coming through Singapore waters and through the Straits of Malacca. As a result, the various security agencies have been working very closely with one another, including the RSN and also our foreign liaison partners. We have also worked very closely with the shipping community. And as you would have noted, the Singapore Shipping Association has put up an alert to all their members. Basically, all alert levels have been raised, not just for ships plying at sea but also for

the security measures we have undertaken in Singapore.

Sir, one more clarification for the Senior Minister of State. I hope I did not hear what he already answered. He mentioned that there were 315 offenders who are now serving LT2. How does that relate to the number of the people who have been released from LT1? How many have been released from LT1?

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Sir, the figures were computed last year. Out of the total number of 1,883 arrested last year, 315 or 17% went into LT2. For you to go into LT2, you must have been out from LT1. This is the number of people last year who had been to LT1 and who were then re-arrested and then went to LT2.

Sir, I do not mean to belabour the point. But I am just trying to get a sense of how many people had served LT and have not relapsed so far? Would the Minister of State be able to shed light on that?

Sir, for LT, it is 16.9% or about 17%. That gives a sense of the relapse rate. I do not have the ballpark figures but I can give her the relapse rate, which is not bad. Of course, we are monitoring the figure. Like I have said, the numbers can go up but this is something that we have to work on to get repeat abusers off this slope.

Sir, may I just add to what my colleague, Prof. Ho, has said? I want to thank Ms Sylvia Lim for being so concerned and interested about the drug abuse problem and also about those who continue to commit drug offences, even though they have been given many opportunities. I think the point here for all drug addicts to note is that they will be

For those who cannot kick off the drug habit, the best place for them to be really, is in the prison. Because, if they continue to take drugs, they must find a way to satisfy that addiction. And what will they do? Many of them will commit crimes. And as the data have shown, three-quarters of them have got a criminal record.

For those who want to change – the issue is really up to them – we will do everything possible, including working with community organisations, working with their families and helping them get a job. But if they do not want to change, there is really nothing much we can do; and they will continue to go to prison. I think that sets the context in which we look at the drug problem.

If you look at the drug situation way back in the 1990s and compare it with what it is today, it was a vastly different picture at that time. And I think Members would know that by just looking at the trend, we have more or less dealt with the heroin problem compared to the serious heroin problem that we had in the 1990s. In those days, heroin addiction was almost 95% of the drug addicts arrested. Today, is is about 40-odd per cent. Is this 40% low enough? Well, we have to look

given a second chance. In fact, they will be given even a third chance. For a person who has taken the drugs under the scheduled list and they are arrested, they will go to the drug rehabilitation centre. When they leave, and if they are arrested again, they will go again to the drug rehabilitation centre. But we find that just by bringing them through the revolving door and keep sending them back to the drug rehabilitation centre, it does not work. More than 10 years ago, we decided that for those who are given two chances, by the third strike, they will be considered "out". They will have to go to prison. That is why we have structured the LT1 and LT2 programmes for them.at the number of people who were arrested for drug addiction, and the number has gone down drastically. Despite all the efforts that we have, including the intelligence, surveillance, arrests, etc, there will still be people who want to take drugs, and they have to watch out that they do not get caught. If they do, they will have to pay a price.

Any more clarifications? If there are none, I would like to call upon Mr Alvin Yeo to see whether he wants to withdraw the cut. Yes, Mr de Souza?

Sir, I am begging to have the amendment withdrawn. Before doing so, I would like to thank the Deputy Prime Minister, Mr Shanmugam, Prof. Ho Peng Kee and Senior Parliamentary Secretary Masagos Zulkifli for the robust response to several important issues that have been raised by Members in this House, including –

Mr de Souza, I have to interrupt. Are you withdrawing the amendment?

Yes.

You are not allowed to. Mr Alvin Yeo must withdraw, since the amendment stands in his name. Otherwise I have to put it to a vote.

Very well, Sir.

Since Mr Alvin Yeo is not here, I have to put the amendment to a vote.

Question on the amendment put, and negatived.

The sum of $2,824,132,000 for Head P ordered to stand part of the Main Estimates.

The sum of $350,882,800 for Head P ordered to stand part of the Development Estimates.

Head J – Ministry of Defence

Regional security environment

Sir, I beg to move,

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

A lot has changed over the last year. During our last Committee of Supply debate, we were discussing the severe economic crisis that had hit the world and the measures that we were intending to implement to see us through. We were not sure how long the crisis was going to last, whether it was going to be a U-shaped or a V-shaped recovery, or some even said a W-shaped recovery.

From the security perspective, the Minister for Defence informed this House last year that there were three implications of the crisis that MINDEF was concerned with. These were, firstly, the accelerated geopolitical shifts; secondly, the social stresses which arise during a recession that may lead to increased instability; and, lastly, the threat of terrorism that overlays the first two concerns.

At this year's Committee of Supply debate, the situation is quite different. Yes, the threat of terrorism remains, but the economic climate throughout the world is very different. Countries are starting to recover. Certainly, in Asia, there is a sense of optimism. We have also seen a distinct shift in the countries that are leading the recovery. Economic power is no longer solely within the domain of the West. The US and Europe acknowledged that Asia, in particular,

China appears to be playing a greater role in terms of the regional security environment. In Tuesday's edition of the Straits Times, I read an article entitled "China should aim to be World No. 1". It was a report about a book entitled, The China Dream, which was written by one of the People's Liberation Army's senior officers. The book contains a call for China to abandon its modesty about its global goals and sprint to become World No. 1. What struck me about this book was not the bold words used but the fact that it was a declaration that China had in fact goals to be World No. 1. This was followed by yesterday's announcement of a reduction in the increase of its defence budget from the usual double digit increase to a 7.5% increase from last year. But this is an increase to a budget that is in excess of $100 billion.

I also found it interesting it that in the recent disaster relief efforts in Haiti, the news reported that the Chinese humanitarian relief was deployed long before the US humanitarian efforts and, in fact, was already hard at work while Washington was still offering to send relief. India has, on the other hand, remained rather quiet while South Korea has been preoccupied with its neighbours to the north.

We got another wake up call to the threat of terrorism just yesterday when our own Navy together with those of Malaysia and Indonesia announced that they would be stepping up patrols in the Straits of Malacca after receiving warnings of possible terror threats against oil tankers plying the Straits. In light of this, may I ask the Minister the following questions:

What is MINDEF's assessment of the regional security environment? Has this

In the recent arms sales issue between the US and Taiwan, China strenuously opposed the US' arms sale to Taiwan. Is this a sign that China is likely to play a more dominant role in the region? Interestingly, China's Parliamentary spokesman said at the unveiling of the defence budget that this was like when two brothers are embracing, someone gives one of them a dagger, what is the motive in that?

What will MINDEF's position be vis-a-vis the US and China as regional security powers? Does MINDEF see India or South Korea playing a part in the regional security environment and, if so, what role would that be?

Lastly, does MINDEF see any other countries in the region playing a larger role in the security environment in the region?

countries like China, India, South Korea and even ASEAN as a region, will play a pivotal role in the recovery process.assessment changed now that the worst of the economic crisis is behind us? Will the change in the balance of economic power, given Asia's rising economic power, affect the regional security environment? Specifically, how does MINDEF see China's role as a regional security power in general and, specifically, vis-a-vis the US? Will China be expected to take and will it take a larger role in the regional security envionment?

Sir, in recent years, the profile of security environment within the region has changed in a fairly significant manner. This is particularly so since the September 11 attacks in the United States. The radicalisation of certain segments of the Muslim faith coupled with the separatist movements within the region have made Southeast Asia a hot bed for terrorism. From the Philippines to Indonesia and Southern Thailand, security forces have been placed on high alert against possible terrorist bombings or insurgent attacks.

Quite apart from these security threats, our region has also been affected

I would therefore like to ask the Minister to give this House, firstly, an update of his assessment of the security environment in the region; secondly, the state of the security architecture in the region and its effectiveness; and, finally, Singapore's present and future contribution to the challenge.

by piracy, particularly along the Malacca Straits. While I agree that the action taken by the littoral states have helped to reduce the incidence of piracy in recent years, it nonetheless is still a threat to shipping in the region if we are not careful. Against the broad canvas of security situation that the region is faced with, there is a constant need for ASEAN states to work and cooperate closely to deal with these threats, to an extent that there should be an over-arching framework within which robust, efficient, effective cooperation is managed, whether in the form of information sharing or support in the deployment of security forces.

Mr Chairman, Mr Michael Palmer had remarked that much had changed since the last COS but one thing has not changed, which is that the world and, in particular, this region has not become any less dangerous. Like Mr Palmer, I noted with some concern the Navy advisory to be on the alert for possible maritime terrorist attacks. And what we have in this region is Singapore, a small dot in the middle of it, surrounded by other states where they are affected by their own geopolitical developments. We note, for example, that Thailand's relationship with Cambodia is the subject matter of some concern. And then we have India and China on the rise. We have Korea, we have Japan and, of course, our Southeast Asian neighbours.

Singapore, by itself, is, of course, too small to influence the region. But

Singapore working within the framework of a regional security environment would be able to work in cooperation with other countries to affect or influence in some way the regional security environment. Sir, I would like to ask the Minister what is MINDEF's role and contribution in the regional security architecture, and what progress has been made in evolving the regional security architecture.

Regional security and challenges

Sir, the security of Singapore is dependent upon our relations with other countries, the strength of our defence forces and also the political stability of our region. The recent nuclear and missile tests in North Korea, continuing terrorist attacks and growing political tensions in our neighbouring countries have posed new challenges to our regional security.

With regard to nuclear weapons threats, Singapore is the first to sign the Proliferation Security Initiative (PSI) which aims to halt the trafficking and spread of nuclear weapons. But there is still much to be done to seek the co-operation of other countries to prevent the spread of weapons of mass destruction. Regional security forums, such as ASEAN Regional Forum (ARF), the Six-party talks, and the Annual Shangri-La dialogues have also provided useful platforms for countries to stay engaged to further enhance security. Despite that, the security architecture in our region remains challenging as many of these forums have been criticised to be mere talk shop forums.

Sir, as a concerned member of security risks, Singapore has undertaken a number of initiatives to engage the global community. We have been actively engaging many countries in both diplomatic relations, and defence co-operation. We have also signed defence co-operation agreements with Australia,

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Sir, I am glad that MINDEF has set up a Special Operations Taskforce to harness the capabilities of our elite soldiers to respond more effectively to various security threats especially terrorist attacks.

New Zealand, India, China and Vietnam. Such arrangements provide many opportunities for our defence forces to interact and strengthen our relations with countries in the region thus enhancing security. I wish to ask the Minister what more can Singapore do to further enhance our security.

The Mumbai terrorist attack has provided useful lessons that it is essential to integrate our land, sea, and air security forces to better counter terrorism.

Sir, I understand that security will always be work-in-progress and the security landscape is changing so rapidly. Thus, I wish to seek the following clarifications from the Minister. First, can the Ministry provide an update on the regional security and challenges facing Singapore? Second, what roles do Singapore play in ensuring peace and stability in the region in spite of the strategic competition among major powers? And three, what are our defence capabilities in terms of protecting the air, land and sea security in Singapore?

Bilateral defence relationships

Sir, in the course of being a member of the GPC for Defence, I have had the opportunity to visit some of our exercises overseas. And one of the things that struck me is that our relationship with Armed Forces from other countries at the both country level as well Armed Forces level, is very much like relationships between individuals where there is interaction and co-operation; you have strong, good personal ties. And that seems to be the case as well with the

Armed Forces since they have been working together. I had the opportunity to visit the Mountain Home Airforce Space where we have our F15 squadron and the commander of the base had nothing but praise for the Singaporeans who were working there. It dawned on me that really, in the context of defence relationships, our bilateral relationships are extremely important because they build up a strong foundation with which we can work with other Armed Forces and that enables us, on a global basis, to carry out the defence responsibilities in a much better way. So, I would like to ask the Minister what is the status of our bilateral defence relationships, particularly with the major powers, such as the US and China as well as within the region with our neighbours.

Security threats to Singapore

Sir, Singapore was pleased and was able to breath a sigh of relieve last year when Malaysians finally caught Mas Selamat Kastari, a known terrorist on-the-run. Singaporeans may be happy with the latest development but we know that the capture of Mas Selamat would not put to rest the ever-present threat to security that Singapore is faced with. Indeed Singapore is known to be a prized and high-profile target not just for terrorists from the region, but I believe, Sir, also terrorists from outside it as well. It is often said that the odds are not with us. We have to get it right all the time whereas the terrorist has to get it right only once. Indeed, our assessment of the security threat has led us to deploy forces as far away as the Middle East. We know that Members of the Jemaah Islamiah (JI), a known terrorist group, received training in Afghanistan. I believe that ensuring the peace and stability of Iraq and Afghanistan will help to remove these places from the list of places that potential terrorists such as JI can turn to for help. So far, our contribution has been confined to building and medical

The presence of these armed men patrolling the corridors of our airport, for instance, and our vital installations gives the strong assurance to others, how seriously Singapore takes the security challenge. Personally, I am satisfied that SAF is up to the mark in dealing with this threat and for which I am sure Singaporeans are most grateful. Nonetheless, we know that security threats are still out here and exist. I would be grateful if Minister can give this House an assessment on the current situation of the threat to our security and if possible to share with this House what are other possible measures the Government is taking to deal with these threats.

assistance. The contribution may be small in comparison to others, it is nonetheless significant for a small country like Singapore. On the homefront, I am grateful to note that the SAF has also stepped up its efforts to protect our vital installations and they were quick to respond to the new intelligence that our vital shipping interests are now under threat of attack, as we have heard and found out in today's papers.

Humanitarian and peacekeeping missions

Mr Chairmain, Sir, Singapore's involvement in international humanitarian and peace-keeping missions has increased over the years. Since the 1980s, the SAF had participated in many humanitarian and United Nation's peace-keeping missions. These include places like Aceh and central Java, Taiwan, East Timor, Iraq and Afghanistan, just to name a few. Whilst I understand the need for Singapore to play its part as a global citizen, such missions are not without risk to the lives of our servicemen. I would, therefore, like to ask the Minister the following questions:

What is the rationale for Singapore's involvement in missions situated far way such as in the Middle East and beyond;

Are our servicemen adequately trained and equipped to operate in these hostile conditions;

Are risk analysis performed before a decision is made to proceed with a particular mission;

and lastly, will Singapore ever take part in peace enforcement missions in the future?

Fight against terrorism

Sir, numerous terrorist incidents have happenned in Asia and in our neighbouring countries. Most importantly, the breadth and tactics deployed by these terrorist elements have increased in complexity and impact. Singapore is a small city-state surrounded by water and terror threats against our country can come in any form. Our security forces have initiated numerous exercises to handle terrorist incidents in Singapore since September 11. The ISD arrests and detentions including the escape of Mas Selamat still remain fresh in our minds. These remind us of our vulnerabilities and the daunting challenges facing us as a nation. In view of the spate of terrorist incidents in our region and globally, what preventive measures are we taking at all levels of the Government and what new capabilities is our Government plan to further augment or enhance to combat against terrorism?

Terrorism

Mr Chairman, Sir, we have managed our guard against terrorism rather well so far. We have had two major international events, the International Monetary Fund meeting and the APEC meeting, where we hosted many of the world's top leaders without any glitches. More importantly, we have hosted these distinguished guests without

Sir, the threat from terrorism is much like the threat from a computer virus. It is everywhere and not visible. But unlike the computer virus, terrorism strikes with more overwhelming effects and is often extremely damaging. It is not just the damage to computers, it is the loss of lives and limbs, the destruction of properties and possessions as well as the destabilisation of social and economic environment. We need, therefore, to be constantly vigilant against the threat from terrorism. Sir, may I ask what is MINDEF doing to keep Singapore secure against terrorism?

The Mumbai bombing, where a young and promising Singaporean lost her life, is about the closest we have come to feeling the effects of terrorism. Whilst that was regrettable and highly unnecessary, we really could not do much about something happening so far from home. It would be very different if that were to happen here. That is why, we need to be vigilant; we need to be proactive and we need to be constantly on our guard.

To be vigilant and proactive is not just the work of our intelligence agencies. Has the SAF been proactive in working with other Singapore agencies to defend against terror threats? Although our defence forces play an equally vital role in the fight against terrorism, each and every of us also see it as our duty and responsibility to contribute to the cause. How is MINDEF ensuring that all citizens are integrated into efforts to defend against terrorism?

them having to worry about security and threats to their lives. Indeed, our security-related agencies deserve high commendations for accomplishing this. And, this year, we will be hosting another major event involving the many young future leaders of the world. Many would become leaders of the sporting world while others would go on to be leaders in other fields, possibly in the political arena.

Restructuring of SAF and contributions to homeland security

Mr Chairman, Sir, the security environment today is a very complex one and the SAF has to make and maintain the capability, not only of conventional warfare but at the same time, to deal with unconventional threats. Terrorism remains a clear and present danger and in fact, terrorists are resourceful and creative and think of new ways in which to spread terror. For example, 9-11, was an attack by air, the Bali bombings were on land, the Mumbai attacks were by sea. The methods in which they were carried out and the resources that they used were different. The SAF has to deal with such unpredictable attacks and at the same time, needs to be quick, nimble and effective on all fronts. This has to apply not just to operational things on the ground but to intelligence gathering, operational capability; and that capability has to be executed not just in the jungle but also in the urban environment. I would like to ask the Minister, in the phase of these challenges, how was the SAF restructuring itself to meet the complex security challenges of today and how it is contributing to homeland security?

Integration of SAF personnel

Sir, the SAF continues to evolve itself, adapting to the latest in technology and also intelligence. All these are in line with moving into the 3rd Generation SAF. The minds of criminals too continue to be more complex with all the web of intricacies such as those seen in the movies. With more and more recent incidents related to safety and security and terrorism such as the escape of Mas Selamat, and of course, airport and border security, what steps are being executed to ensure SAF personnel are well

integrated to work and co-ordinate with our other forces and groups from the Home Team? This is in particular regards to homeland security.

3rd Generation SAF

Mr Chairman, Sir, the SAF embarked on its transformation to a 3rd Generation SAF in 2004. The aim was to become a leaner and more potent fighting force that will use technology as leverage to deal with threats. As part of this transformation, the SAF invested in a range of hardware; the RSS Archer submarines, the G550 AEW aircraft, leapa rd tanks, formidable class stealth frigates, F15, SG fighters, to name a few.

In our 3G SAF, the power of this technology lies not only in the fact that we have it, it lies in the network capabilities of these machines thereby giving the force most speed, precision and mobility. To this end, they was a concerted effort to network and connect each different component part so as to enable all parts to work as a whole. But the cornerstone of the success in this transformation process and of the success of the 3G SAF as a potent fighting force must the quality of its people. I believe that the SAF must prepare its people with the appropriate mental attitude and skill-sets needed to ensure that the platforms and systems available are used with the maximum of efficiency and effectiveness. They need to be multi-skilled, flexible and be able to adapt to a wide range of constantly changing demands on the ground. The people that make up our SAF must have a "never say die" spirit. In fact, I would not be wrong to say that the men and women of our SAF must not think themselves excluded from our drive to achieve higher levels of productivity.

They must re-skill, up-skill and multi-skill so that they can work cheaper, better

Could the Minister provide an update on the SAF's operational readiness? Has the transformation process to a 3G SAF affected the SAF's operational readiness? In terms of its manpower, with our policy of integrating and nationalising more foreigners, the SAF would have seen a growing number of permanent residents serving National Service. May I ask the Minister if the SAF is facing any difficulties with the integration of these permanent residents who are doing their National Service? Does this affect the SAF as a cohesive fighting force and may I reiterate the hon. Member, Mr Seah Kian Peng's suggestion about introducing a short period of National Service for our male new citizens. Finally, I know that the SAF trains in many parts of the world. The defence cooperation agreement with Indonesia remains on hold. Has the SAF considered training in Timor-Leste?

and faster; but also safer and smarter. The change to a 3G SAF is to be commended. I have seen it working first hand in my many visits to SAF units in overseas exercises such as Exercise "Wallaby" and Exercise "Black in Warrior". It will ensure that our SAF remains a force to be reckoned with and I have every confidence in the men and women of our SAF. In light of the fact that it has been some six years since the SAF embarked from this transformation to a 3G SAF, may I ask the Minister to provide an update on our transformation? Does the Minister envisage when the transformation will be completed or is it an on-going process or if aspects of the transformation remain to be completed, do we envisage a 4th Generation SAF?

Mr Chairman, the transformation in SAF into its 3rd Generation SAF vision has been ongoing. We have seen the acquisition of the new state of the art equipment to increase our defence capabilities in all the three services. I would like to ask the Minister

to provide the House with an

Sir, with the rapid rate of the technological developments, how is MINDEF certain that the lifespan of the 3G equipment that have procured its worth the investments put in? Sir, as this year's Budget focuses on the key word "productivity", I would like to ask the Minister for his assessment on the impact of the 3G transformation on SAF personnels' level of productivity, particularly amongst our operation-ready national servicemen. How are these servicemen coping with the transformation as many would probably be more familiar with the older equipment used when they were doing their full-time national service.

update of the SAF transformation, how much of the transformation has been completed and how much more we have to go? What is the impact of this transformation on the resources in the Ministry, both in monetary and human resource terms.

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Mr Chairman, may I have your permission to take the two cuts together?

Yes.

Defence spending

Mr Chairman, Sir, the Chinese have an ancient saying, "(In Mandarin ) 养兵千日, 用在一朝 (Yang bing qian ri, yong zai yi zhao)".

In essence, it means that the maintenance of a military force, although costly and tedious, is vital to the survival of a nation, as we may one day need it to fend off our enemies.

Singapore is fortunate to have enjoyed peace and harmony for the past four decades. In addition to training for conventional warfare, our SAF has also taken other roles such as battling

However, on a backdrop of a global economic crisis that has affected many countries worldwide, including Singapore and our regional neighbours, I would like to ask the Minister the following:

Has MINDEF's policy on defence spending changed following this economic crisis;

What is MINDEF's defence capability and built-up strategy over the mid- and long- term, taking into consideration the geo-political climate and development in the region?

Defence research and development

The technological advancement in warfare and weaponry is vital in gaining a superior edge over one's potential adversary. This is also in line with Sun Tzu's military strategy of overcoming the enemy with as little resources as possible.

Being a small country, it is imperative that our armed forces be strong enough to act as deterrent to any potential enemy. However, technological advancement and military superiority can only be achieved with prudent investment in research and development. The transformation to a 3G SAF fighting force involves hardware, software and liveware improvements.

I would like to ask the Minister:

How much is MINDEF investing in defence research and development to enhance the capabilities of our 3G SAF;

What areas is MINDEF focusing on;

How have these investment paid off, and

What are the tangible benefits to the SAF servicemen on the ground?

terrorism, low-intensity conflict, peacekeeping and humanitarian and disaster relief missions. Of course, the SAF is also instrumental in organising the many wonderful National Day parades we have enjoyed for so many years.

Basic military training

Sir, the SAF recently announced a series of changes to its Basic Military Training (BMT) Programme. These changes centre around introducing periods and types of training for recruits, who fall in different physical employment status (PES). For PES A and B recruits, they will continue to undergo the nine-week BMT. Those PES A and B recruits who are not up to the mark in terms of their physical fitness will have to undergo an eight-week physical training phase (PTP), in addition to the nine-week BMT. Other key changes include a 19-week BMT for PES B recruits, or four-week BMT for PES E recruits, a nine-week BMT for PES C recruits, and nine-week BMT for PES B2 recruits. May I ask the Minister to please explain the rationale for these changes, what is the broader training philosophy behind BMT, and are these changes part of that philosophy? I believe that the PES A and B recruits who have scored a silver or above their national physical fitness awards (NAPFA) test are exempted from the eight-week PTP. What percentage of enlistees in each intake actually qualify for this exemption? I also understand that statistics show that the students from the polytechnics have the lowest number qualifying for the eight-week exemption from the PTP. What is MINDEF doing to increase these numbers and to increase the state of physical readiness for BMT in general, amongst all students?

Sir, SAF recently announced a series of changes to the BMT and one of these being the change for the recruits for training will become prolong, from 15 weeks to 19 weeks. It is estimated that about 10% of the recruits will fall into this category. Also, the other

group that will be affected will be those with medical conditions which is estimated to be about 6%. For the latter group, the training will now be increased to nine weeks. We all know that it is being said that BMT makes men out of boys. Can the Minister please elaborate on the rationale for these new changes and how they tie in with the broader philosophy of training for our men, so that parents can understand them better?

Individual physical proficiency test (IPPT)

Sir, the Individual Physical Proficiency Test (IPPT) used by the SAF to assess the physical fitness of our soldiers has been around since the mid 1970s. Over the years, new methods and equipment for fitness training as well as a better understanding of exercise physiology have evolved. Although it has been useful over the past two to three decades, I believe it is due for a review to examine its relevance to our 3G SAF servicemen.

I would like to ask the Minister:

What are the objectives of the various exercise stations in IPPT and how effective and relevant are they in measuring the overall fitness of our servicemen; and

With the 3G SAF, what physical attributes in servicemen are deemed important and how can these attributes be assessed appropriately?

Operationally ready National Service liability and tertiary education

Mr Chairman, with Singapore's diverse education landscape and choice for tertiary and degree education, more students are studying full-time in institutions like SIM, uniSIM, MDIS, Kaplan, PSB Academy, LaSalle, SOTA and

many other private institutions. For these students who have Operationally Ready National Service (ORNS) liability, to be called up for In-Camp Training (ICT) during the regular school term would imply that these students will have to be away from their studies for two to three weeks of ICT. This does have an impact on their course of study during the period that they are away. I have seen several cases during my Meet-the-People Sessions when they come to request for my assistance to appeal after the initial requests for deferment are not successful. And in a couple of these cases, the students are quite anxious, as they were in preparation for examinations. As I understand currently, students in the three mainstream universities – NUS, NTU and SMU – are not called up during school term for ORNS liability. In line with the spirit of the Budget 2010, which calls for a culture of learning, innovation, increase productivity and inclusive growth for Singapore, can MINDEF review the relevance of the current deferrment policy of ICT for ORNS liability for full-time tertiary students during their school term? While we need to ensure that operational readiness of the SAF is not adversely affected and this will require more coordination and planning with the institutions, I do hope that MINDEF will give this consideration, examining how this can be done to align to the greater choices of university and tertiary education that are available for our students in Singapore.

Full-time National Servicemen enlistment and NS call-up policies

Recognising the impact of National Service, MINDEF has been fine-tuning the policies and practices governing enlistment and NS call-ups to cater as much as possible to the diverse interests of those affected.

In this regard, I have two specific suggestions. First, enlistment for full-time National Servicemen. I would suggest that

Second, call-ups for NSmen. There are instances where NSmen are called up for in-camp training twice in a calendar year, which can be very disruptive for the NSmen and their employers. This happens because MINDEF works on a fiscal year basis which means that if you are called up in January and then again after March – it registers as two separate years. But

I would like to end by acknowledging that it is not easy to cater to the interests of such a large and diverse group. But when we see a policy or practice inadvertently affecting a significant number of enlistees which could erode commitment, we need to go the extra mile. The system should send a strong signal to those who evade, and an equally strong signal to those who step forward to serve.

MINDEF gives greater thought to how we can make it less inconvenient and stressful for those residing abroad. Firstly, we should be pleased that they are committed enough to do National Service. It is important that this goodwill and appreciation is conveyed during the various interactions which start when the enlistee turns 17. This is also the time when the enlistee and his parents are pre-occupied with university admission – which can be stressful as most overseas universities may not be sympathetic to National Service commitment and the need to defer studies for two years. The enlistment paperwork can be quite intense, often requiring them to make trips to Singapore, which can be costly. Finally, exactly when he is enlisted is a matter of significance. Typically, the university term overseas starts in September. If the enlistee is assigned to an intake after September, say, in February, he would miss the university enrolment date two years down the line. This means he loses an additional year, on top of the two-year National Service. Besides, some universities may not keep the vacancy for an additional year. Yes, we need to treat all enlistees fairly. But the opportunity cost for overseas enlistees, I believe, is higher. Would MINDEF consider giving greater assurance to affected enlistees that they can defer a few months before so that they would not have to miss university enrolment? This would provide much needed comfort and peace of mind – resulting in the enlistee doing National Service in a positive frame of mind.for the NSman and his employer, work commitments and leave are based on the calendar year. This anomaly needs to be rationalised as they can erode goodwill and commitment in good NSmen and employers.

Mr Chiam is not around. Ms Ellen Lee, you have two consecutive cuts together.

Sir, can I take two cuts together?

Yes, please.

RECORD V recommendation

Sir, the RECORD V's recommendations were first announced at a press conference on 27th August 2009. The recommendations aim to address the rising aspirations of National Servicemen and better reflect their greater responsibilities and leadership roles. They also aim to help NSmen remain connected to their workplace, encourage fitness amongst NSmen and recognise contributions from NSmen's families. Sir, I request the Minister for Defence to provide this House with an update on the implementation of the entire slew of RECORD V's recommendations and the response or feedback from NSmen on the recommendations both from SAF and non-SAF NSmen.

Total defence

Sir, we just commemorated the 26th year of Total Defence on 15th February 2010, the day Singapore fell to the Japanese in 1942. It is good to remind ourselves why we commemorate it annually.

All Singaporeans have a responsibility to defend Singapore. The threats we face today are manifold and multi-dimensional, ranging from terrorism, racial and religious tensions and conflicts, pandemics, global economic crisis and economic disruptions, natural disasters, energy, water and food scarcity, piracy, illegal migration to cyber crimes, amongst others.

With the geo-political and global operating landscape and threats (both military and non-military) constantly changing, defending our nation has gone beyond the traditional use of force and rules of engagement.

The challenges are further exacerbated by our highly interconnected and globalised world. Today, what begins as a problem in another country far away can have severe ramifications on us, our economy and our social fabric.

I wish to ask the Minister whether our concept and strategy of Total Defence have changed and how do we re-invent ourselves to better prepare as a country and as Singaporeans towards "Total Defence". What programmes and initiatives will be rolled out to further reach out and entrench the message of "Total Defence"?

Youth and total defence

Sir, the first and second generations of Singaporeans had experienced war and social unrests. Many appreciate the peace and harmony we enjoy in today's politically stable environment. Unfortunately, many youths

Sir, the concept of Total Defence is that all Singaporeans should play a role in defending Singapore. There are five key pillars in Total Defence namely: Military defence, Civil defence, Economic defence, Social defence and Psychological defence. We need a framework to measure our achievements in Total Defence. How do we measure the Total Defence operational readiness of our people?

Sir, another challenge in Total Defence is the inculcation of values among our youths to take the defence of our country seriously. I know that MINDEF has various programmes such as N.E.mation, I will contest and Edugame to engage the youths in Total Defence. I am not sure if these initiatives have strengthened the fighting and defence spirit among our youths.

Sir, playing computer games and participating in competitions may not make our youths more loyal and committed to defending Singapore in times of actual crisis. We need to better structure our Total Defence efforts to ensure that our youths develop the dare and guts to defend our country.

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

What is the strategy in ensuring that all Singaporeans especially the young are committed to the Total Defence of Singapore;

With increasing mobility of Singaporeans, what mechanisms are in place to recall Singaporeans to defend our country in times of need?

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have not seen political instability and bloodshed, and thus cannot understand their roles in defending Singapore. Although National Service has been introduced for more than 30 years, many young Singaporeans may not know how to take defence very seriously. Sir, this is indeed a very worrying trend and calls for more engagement of the youths to increase the operational readiness of Singapore in Total Defence. (b) Can MINDEF provide an update of efforts in engaging youths in Total Defence both in the virtual and real world? How does MINDEF measure the commitment of youths in Total Defence;

Commitment to defence

Sir, I would like to ask the Minister what steps MINDEF is taking to ensure that Singaporeans remain committed to defence and what more can be done to engage Singaporeans at a personal level. We have the concept of Total Defence but I can tell you that, to the average Singaporean, Total Defence means leaving it totally to the SAF. Many people are still not familiar with the concept that it is each and every person's responsibility to participate in our country's defence. This year, Chinese New Year was on 15th February, and the alarm was sounded. Someone asked me why the alarm was being sounded, was it to celebrate the first day of Chinese New Year? I explained that it was not. It was because 15th February was the day that we fell to the Japanese. So, MINDEF might be actually better off trying to link it with Valentine's Day, which is 14th February, and tell everybody that after love comes war. The importance of messaging is quite important and, if it is not done properly, it can be a problem. Recently, I was interviewed for PIONEER, which is the NSmen's magazine, and there was a picture of me there sitting on top of a tank. Lawyers are a conservative lot. One of my fellow directors heard about this and came to see me to demand why I had

appeared in a men's magazine in a tank top. [Laughter.] If the message does not go across clearly, then, you know, the intended objective may not be achieved. So, I would ask MINDEF to get out the concept of Total Defence in a clear and precise way to Singaporeans.

Engaging youths in defence

Mr Chairman, Singapore has experienced relative peace, largely due to the effectiveness of our security forces, both in the home and the defence team. We can never take this peace for granted and assume that it is the role of the security agencies alone. Singaporeans, particularly the young, must understand that everyone has a role to play in ensuring Singapore's defence and security. The youths of our future and their attitudes will shape their actions and have serious implications on the future of Singapore. Today, I think, the issues of defence will only appear on the radar screen of our youths when boys near the age of NS enlistment. Even then, I guess the discussion will revolve around how to cope with the physical demands of basic military training. Sir, there is more that MINDEF can do to engage youths to take a greater stake in our country's defence. Our youths are exposed and interact with many youths from other countries, either through exchange programmes or simply through interaction with foreign students studying here. This year, we will play host to the inaugural Youth Olympics. We should engage our youths to ensure that they do not take our defence and security for granted and, perhaps, provide a better perspective on Singapore's world view as

they interact with their foreign counterparts. Can the Minister provide an update on MINDEF's programme in engaging young Singaporeans constructively in defence and security issues, and what more can be done to increase the level of interest amongst young Singaporeans on the role they can play in our defence?

Mr Chairman, Sir, I would like to thank the hon. Members for their comments and questions, and also for their continued commitment to Singapore's defence and security. Sir, Mr Michael Palmer, Dr Teo Ho Pin and Mr Sin Boon Ann asked for our assessment of the regional security environment. The strategic realignments that began before the economic crisis have continued apace. Asian economies have weathered the crisis relatively well, especially so for India and China. While the US will continue to be pre-eminent over the next few decades, in economic, military and technological terms, the balance of global economic weight has shifted eastwards. The strategic weight of Asian powers, particularly China and India, will grow. These two countries will become more confident and will want to play a greater role in global and regional affairs. As their economic ties with our region strengthen, they would also have a greater stake in regional peace and stability. Indeed, both these countries are actively engaging countries in the Asia-Pacific, both bilaterally and multilaterally. These are positive developments. Within our region, countries such as Vietnam, along with Indonesia, will play a larger role in the years to come as they continue with their restructuring and modernisation. In the coming decades, therefore, the Asia-Pacific will inevitably become the

By endangering the freedom of navigation and the safety of international shipping, threats to maritime security such as piracy and maritime terrorism can impact the global economy and international security. As a maritime nation, such threats are of utmost concern to Singapore. Many Members have read in the newspapers today that our Navy had received information on possible terror threats against vessels in the Malacca Strait. The Navy has stepped up the frequency of patrols in our waters. Commercial ships are also encouraged to take proactive security measures in the meantime. The relevant Singapore agencies have also been working closely with our regional partners to address this potential risk. The Maritime Security Task Force has also been coordinating a whole-of-Government response with the relevant Singapore agencies, such as the Police Coast Guard and Maritime and Port Authority, to step up measures to address this potential threat. As this issue illustrates, threats to maritime security continue to be real and immediate. Countering this threat requires a coordinated effort – by governments acting alone and also in cooperation with one another. In our immediate region, Singapore, Malaysia, Indonesia and Thailand have been conducting coordinated patrols to enhance the security of the Malacca Strait.

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strategic area of focus for the major powers. South-east Asia, with its strategic sea-lanes, resources and markets, sits at the centre of the region and is the arena where their interests intersect. The key question, of course, is how the US-China relationship will develop in the coming years. While there have been strains in the US-China relationship in recent weeks, both countries clearly see it in their interest to have stable and cooperative relations in the long term. In the joint statement released during President Obama's visit to China last November, both sides recognised they have, I quote, "an increasingly broad base of cooperation and share increasingly important common responsibilities". On our part, we do hope that the US and China will maintain a positive and cooperative relationship as this is critical to maintaining regional stability, which provides the foundation for economic development and prosperity. Dr Teo Ho Pin asked about our response to the increased strategic competition amongst the major powers. An open regional security architecture plays an important role in sustaining long-term regional peace and stability by encouraging countries to engage constructively. As new patterns of strategic relations are formed, the regional security architecture must continue to develop apace. This will facilitate the peaceful rise of emerging powers, promote responsible norms of international behaviour and manage potential flashpoints. Ms Indranee Rajah and Mr Sin Boon Ann asked about MINDEF's role in strengthening the regional security architecture. Sir, in the past year, the ASEAN Defence Ministers' Meeting (ADMM) is one area where ASEAN countries have focused our efforts. The ADMM has moved in the direction of practical cooperation. For instance, we reached agreement on cooperation in humanitarian assistance and disaster relief, an important non-traditional security issue. The ADMM has also made significant headway in evolving the ADMM-Plus, which facilitates ASEAN's defence engagement with our partners in the larger Asia-Pacific region at the ministerial level. Vietnam, which is the chair of ASEAN in 2010, will take the ADMM-Plus process forward later this year. The Shangri-La Dialogue (SLD) that is held in Singapore annually, and attended by 27 countries in 2009, has also grown from strength to strength. The ninth SLD will be held in June this year. The SLD remains the only defence forum in Asia that brings together Ministers, senior officials, industry leaders and academics for a frank exchange of views on defence and security issues, which will help to create mutual understanding and shared norms. Sir, our multilateral engagements are supported by an extensive web of bilateral defence relations, which Ms Indranee Rajah asked about. Our defence ties with Malaysia and Indonesia are important and longstanding. The SAF and Malaysian Armed Forces engage in regular interactions, including bilateral exercises, high-level visits and professional exchanges. Both armed forces also collaborate closely in the Malacca Strait Patrols and the Five Power Defence Arrangements. At Malaysia's invitation, two F-16 fighters and two Apache helicopters from the RSAF participated in the flying display at the Langkawi International Maritime and Aerospace exhibition last year. Senior Malaysian defence officials also attended the Singapore Airshow this year. When Defence Minister Zahid Hamidi and I met on the sidelines of the Singapore Airshow, we both agreed to expand our bilateral defence exchanges and interactions. As an example, I met General Rodzali, the RMAF Chief who is here on a visit this morning. He and our Chief of Air Force are discussing initiatives to increase exchanges and interactions between our two air forces. All these interactions have further enhanced our friendly bilateral defence ties with Malaysia. There are regular and wide-ranging interactions between the SAF and the Indonesian National Defence Forces. These include longstanding exercises between our two armies, air forces and navies, as well as bilateral meetings, the cross-attendance of courses and other professional exchanges. The two armed forces also cooperate closely in maritime patrols and maritime information sharing. As this House is aware, after the South Sumatra earthquake last September, the SAF sent medical and engineering teams to assist in the relief efforts. We are also working with the Indonesian defence establishment to explore opportunities to expand cooperation for mutual benefit. With Brunei and Thailand, and increasingly with Vietnam, we also enjoy especially close defence relations. Besides our neighbours, we have similarly built up our defence ties with key players in the Asia-Pacific. The US remains one of our strongest and closest defence partners. We continue to welcome a strong US presence in our region, which provides an important stabilising influence. US forces visit Changi Naval Base and Paya Lebar Air Base regularly, and we conduct high-end professional exercises with them. Since the conclusion of the Strategic Framework Agreement in 2005, professional exchanges between the US and Singapore armed forces have expanded. Last year, we inaugurated Peace Carvin V, our F-15SG detachment in Mountain Home, Idaho. The detachment joins our existing F-16, Chinook and Apache training detachments in the US. Our naval helicopters are currently undergoing integration training in San Diego together with one of our frigates. One indication of the many exchanges we have is this morning, again, I received a call from the Commander of the US Pacific fleet who is here on a visit. We have also strengthened our defence relationship with China, holding the first bilateral training exercise between Singapore and China last June. This was a joint training exercise focused on the conduct of security operations for major events, in which the Chinese forces have a lot of experience in after the Beijing Olympics. The training exercise provided a platform for developing mutual understanding between both armed forces. With India, our relations continue to develop very productively with all the three Services conducting exercises together with their counterparts in India. Singapore has also deepened our defence relations with other key regional partners. We signed bilateral defence cooperation agreements with Japan, the Republic of Korea, New Zealand and Vietnam last year. These agreements reflect the commitment of the parties to further cooperate in bilateral areas of mutual interest. With Australia, we renewed the Shoalwater Bay Training Area Memorandum of Agreement, which allows the SAF to train at Shoalwater Bay for another 10 years. Sir, Singapore is very grateful to our friends for their support for the SAF's overseas training, an issue which Mr Michael Palmer asked about. Today, the SAF trains in about a dozen countries around the world, which has enabled us to overcome our land and airspace constraints and to address the SAF's training needs. Dr Teo Ho Pin and Mr Sin Boon Ann asked about the security challenges confronting us. Indeed these challenges are varied, complex and fluid. Allow me to elaborate on two challenges – maritime security and terrorism. In addition to such operational arrangements, it is important to improve information sharing for the early detection of maritime threats and to coordinate responses.

To this end, Singapore has established an Information Fusion Centre

Beyond our region, piracy in the Gulf of Aden, which is a key shipping lane, remains an international concern. While the SAF’s focus continues to be the security of the Straits of Malacca and Singapore, we are also playing our part in the Gulf of Aden. This is because we recognise that it is not possible for any one country to protect its own shipping in all the world’s key sea lanes. All countries therefore have to depend on cooperative efforts to secure the sea lanes for everyone’s use. From April to July last year, we deployed a Task Group comprising a Landing Ship Tank and two Super Puma helicopters to contribute to the counter-piracy efforts. The Task Group worked within the framework of the multinational Combined Task Force 151 (CTF 151) to enhance the security of ships transiting through the Gulf of Aden.

We remain committed to these counter-piracy efforts. As I speak, a senior Singaporean naval officer – supported by an SAF command team – is in command of CTF 151. We had accepted the invitation by the Combined Maritime Forces HQ to assume command of CTF 151 for a period of three months, from mid-January to mid-April this year. This invitation illustrates the high regard in which other armed forces hold the SAF. As a signal of our continued commitment to this international effort, Singapore has decided to deploy a second Task Group comprising a Landing Ship Tank with two Super Pumas from June to October this

Sir, another key security challenge confronting us is terrorism, something which Ms Ellen Lee and Dr Lily Neo raised. Mr Sin and Dr Lam also asked about our deployments for international security operations.

Terrorism remains a persistent threat to all nations, and cannot be resolved by just any one nation acting on its own. Afghanistan remains a key arena for the international effort against terrorism. In December last year, the US announced the new Afghan strategy, ordering the deployment of 30,000 more US troops to Afghanistan. We support the US’ continued commitment in Afghanistan. This will help stabilise the country and prevent extremists from again using Afghanistan to export terrorism to rest of the world, including our own region, with direct implications for our security. We are committed to contributing, within our means and in a useful way, to the multinational efforts in Afghanistan.

We currently have a Weapon Locating Radar detachment and a medical team deployed in Oruzgan province. In April this year, following the completion of our medical team's deployment, we will deploy a surgical team to Oruzgan for the first time. I had the opportunity to visit our soldiers in Afghanistan last November and saw first-hand the contributions of our personnel. The feedback I received from the International Security Assistance Force (ISAF) commanders showed that our deployments are making a valued contribution towards the stabilisation and reconstruction efforts. We also continue to deploy construction engineering teams in Bamiyan province. We have also informed our coalition partners that we are prepared to deploy a KC-135 aerial

Here at home, the SAF continues to work closely with the homefront agencies to defend against increasingly sophisticated terror threats against Singapore. I will elaborate further when I speak about how the SAF is restructuring to meet more complex security challenges.

Sir, every international deployment that the SAF undertakes is carefully considered. Such deployments do involve risks to our servicemen, which can be significant. However, where there is real and important work to be done, there will be attendant risks. Therefore, we must make sure that our servicemen are well equipped and trained, and receive additional training specific to their mission and area of operation.

Sir, even as we contribute to international and regional security, the primary mission of the SAF remains to deter any threats, and to defend Singapore. I reported to this House in March 2004 that the SAF had embarked on a transformation journey to ensure that it meets current and future operational requirements.

Mr Michael Palmer, Dr Maliki, Dr Teo and Dr Lam Pin Min asked about the SAF's transformation and build-up plans. The key building blocks of the 3rd Generation SAF are now in place. While there is still work to be done, we now have a firm foundation for the continued development of the 3rd Generation SAF.

Three building blocks form the foundation of the 3rd Generation SAF. First, acquiring new equipment and building new units to transform the SAF into an advanced, networked force. Second, re-organising the SAF into new operational command structures to deal with an expanded spectrum of operations, at home and overseas. And, third, developing our people through new and

Sir, let me elaborate on the transformation of the SAF into an advanced, networked force. The most visible part of this transformation is the progressive introduction of newer and more capable systems into the SAF which I think some Members are familiar with. Less visible but just as important is the integration of land, maritime and air forces into a network-centric force that can seamlessly tap on each Service's capabilities.

Let me elaborate. The Navy's new frigates are able to dominate a larger sea area, a much larger sea area, than the 1970s-era missile gunboats which they replaced. They have Sikorsky S-70B naval helicopters, which further adds to the frigates' ability to undertake anti-surface and anti-submarine warfare missions at longer ranges. Each frigate's sophisticated command, control and communications suite thus allows it to network with a wide variety of SAF assets, including air-borne sensors and land-based sensors. This increases force-level awareness and mission effectiveness.

The Army's Terrex combat vehicles which are now coming into service are also equipped with a Battlefield Management System. This allows each vehicle to network with other parts of the SAF, and bring to bear firepower from land and air platforms, such as our new High-Mobility Artillery Rocket System and Apache helicopters. The Air Force’s new Gulfstream Airborne Early Warning aircraft, with its extended detection range, allows the SAF to detect and track aerial targets at greater distances. This provides the whole SAF with more response times to deal with aerial threats

In November last year, I visited Exercise Forging Sabre in the United States, one of a series of exercises to validate the SAF's integrated strike capabilities. Networked command centres relayed real-time information from "sensors", such as our Commando forces and Unmanned Aerial Vehicles, to "shooters" such as F-16 fighter aircraft, Apache helicopters and our artillery rocket systems. The result is an enhanced ability to rapidly bring to bear precision firepower from various SAF strike platforms in an integrated way upon targets in the battlefield.

Let me now talk about the second building block of the 3rd Generation SAF, to address Mr Palmer's question about operational readiness and also Ms Rajah and Dr Fatimah Lateef's question about restructuring to meet the complex security challenges

Sir, the increasingly complex security environment has imposed heavier operational demands on the SAF. Besides its primary role of safeguarding Singapore against conventional threats, the SAF is also contributing to international security operations, humanitarian and disaster relief missions and providing support for homeland security operations.

Last year, I updated this House that the SAF was restructuring to better respond to current and future security challenges. These organisational changes have since been implemented and have made the SAF more flexible and responsive. This is the second building block of the 3rd Generation SAF. Let me give Members one example.

The SAF's High-Readiness Core comprises units on a heightened readiness posture. They are fully manned and equipped to meet operational contingencies, that may occur with little or no

The Island Defence Task Force carries out peacetime security operations such as the protection of key installations – Jurong Island, Changi Airport. As I mentioned earlier, the Maritime Security Task Force works to protect Singapore against maritime threats, and the Special Operations Task Force provides the SAF with an expanded capacity to carry out counter-terrorism and other contingency operations. Where operationally relevant, the Task Forces also work closely with Homefront and other Government agencies like the Maritime and Port Authority and Singapore Customs to keep Singapore safe. These organisational changes have given us a strengthened capability to respond to more sophisticated security threats to Singapore.

Sir, the third building block of the 3rd Generation SAF is developing our people. We recognise that our people are the key resource that will enable us to realise our transformation efforts. This means we have to attract and retain the best people, which Dr Maliki Osman asked about.

It is with this in mind that the SAF conducted a fundamental review of the SAF career schemes to better match the increasingly complex demands of the 3rd Generation SAF with the needs and aspirations of our servicemen. The SAF’s new career schemes will allow the SAF to attract, retain and groom people with the right values, motivation and abilities to deal with current and future security challenges. Dr Ng will elaborate on these initiatives when he speaks.

The Government's policy on defence spending and the defence budget remains the same. The SAF will continue to build its capability in a systematic, prudent and disciplined fashion – selectively adding important new capabilities, through the most cost-effective solutions; extending the lifespan of our current equipment by maintaining them well and upgrading where possible; and investing in networks and technologies to serve as force multipliers.

Dr Lam asked about defence R&D. We invest about 4% of our defence budget on R&D. This is a necessary and important investment as the technologies we need may not be available on the open market or those which are available may not fulfil our requirements. We have reaped healthy returns from this investment.

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Our R&D efforts have led to the successful indigenous development of advanced systems such as the Pegasus Lightweight Howitzer, the Bronco All-Terrain Tracked Carrier and the command and control systems of our frigates. These have received widespread publicity and attracted the notice of professionals, both locally and internationally over the last year.

at the Changi Command and Control Centre. The IFC has been purpose-built as a maritime security hub to collate and analyse information shared among an international network of partners, to facilitate timely and effective responses to maritime threats. Thus far, six countries, including countries as far away as France, have stationed liaison officers at the IFC. We expect more countries to do so in the coming months.year, as well as a Maritime Patrol Aircraft from December 2010 to February 2011. refuelling tanker and an Unmanned Aerial Vehicle Task Group to Afghanistan. enhanced career schemes as well as revising training and curriculum, so that we have capable and committed people to meet the requirements of the 3rd Generation SAF.and enhances the robustness of our networked air defence system.warning. These units are structured into integrated Task Forces, that can draw from forces from all three Services. This reflects the cross-service and inter-agency approach we are taking to address the cross-domain nature of today's security challenges.Dr Maliki Osman and Dr Lam Pin Min asked about defence spending. Building effective defence capabilities takes many years. The transformation of the SAF has been possible, because of our steady and prudent long-term approach to defence spending over the years.

Our R&D efforts in the airborne area have also paid off. The Defence Science Organisation (DSO) started R&D into Unmanned Aerial Vehicles about a decade ago. It worked towards developing a man-portable mini tactical UAV called the Skyblade whose primary mission is to support Army battalion operations. These

Development of such mini-UAVs was technically very challenging as all the sub-systems had to be small and light-weight, yet robust and reliable. DSO engineers had to work on a design, within a very tight budget, that would include optical devices with sufficient resolution, pointing accuracy and stabilisation so that it can deliver clear video imagery. A miniaturised communications data-link had to be incorporated to transmit the video back in real time to the users. The mini-UAV also needed a good engine and a high-capacity battery pack for meaningful mission time and range, and a non-trivial problem, it had to be robust enough to survive repeated take-offs and landings in the field in very rough conditions.

After extensive trials and evolution, the design was refined and transferred to ST Engineering to produce the Skyblade III. ST Engineering then developed the production model successfully, and these UAVs are now being fielded in the Army. Following this success, R&D on UAVs is continuing with the development of a 60 kg class of tactical UAV called Skyblade IV, for use at the brigade level. Research is also ongoing with industry partners to develop unmanned underwater vehicles for underwater surveillance and mine counter-measures, and we are also looking at ground robots. These programmes illustrate the pay-offs from the investments into DSO's R&D capabilities which are a key part of the SAF's 3rd Generation transformation.

Sir, the ability to defend Singapore forms the basis of our existence as an independent nation. It is for this reason that we have invested steadily in defence, and are continuing to build a 3rd Generation SAF capable of safeguarding

UAVs provide the battalion with real-time video images of its area of operations, including those areas on the "other side of the hill", which you cannot see by direct observation. our sovereignty and vital interests for many years to come. The effectiveness of the SAF depends ultimately on our men and women, both in-service personnel and National Servicemen. At the same time, our defence also rests on the resolve and determination of all Singaporeans to defend what is ours and our support for the men and women in uniform. Dr Ng will now elaborate on our human resource, National Service, and training initiatives to bring out the best in our people. Prof. Koo will later elaborate on our wider public engagement initiatives to enhance Singaporeans' commitment to defence.

Mr Chairman, before I address Members' specific comments, I echo Deputy Prime Minister Teo's appreciation to Members of this House for their continuing support for our defence efforts.

Sir, Dr Maliki Osman and Mr Michael Palmer asked for an update on the SAF's 3G transformation, in particular its impact on human resource, their deployment and their productivity. And indeed as they have projected, our changes and our additions of platforms and the different ways we do things have had an impact. We require each SAF serviceman to take on added responsibilities and acquire new skill sets to respond adequately to a wider spectrum of threats. Deputy Prime Minister Teo said that we have undergone a fundamental review of our human resource constructs to meet these challenges. And Members will remember that during the debate on the SAF (Amendment) Bill in November last year, Deputy Prime Minister Teo explained the rationale behind the new Military Domain Experts Scheme (MDES), the Enhanced Warrant Officers Scheme and the Enhanced Officers Scheme. Let me provide an update to Parliament, but first, let me say that the response in general has been positive.

The Enhanced Warrant Officers Scheme and the Enhanced Officers Scheme have also been well-received. SAF Warrant Officers and Specialists (WOSpecs) have welcomed the expanded roles and responsibilities, as well as the opportunities for professional development under the Scheme. Let me give one example – Staff Sergeant Warner Poh is an Army Specialist, who says that the new 3rd Warrant Officer rank "signifies the Army's trust in the abilities of WOSpecs to take up heavier job responsibilities earlier in [their] careers." SAF Officers have also welcomed the Enhanced Officers Scheme. In particular, the option of a longer career in the SAF allows them to further deepen their expertise as leaders and commanders.

Sir, the SAF has started new programmes which provide opportunities for our servicemen to take the initiative to upgrade, so that they can better meet the complex demands of the 3rd Generation SAF while fulfilling their personal aspirations. A year ago in this House, I spoke about the new partnerships that the SAF has formed with local universities to support our Continuing Education

Warrant Officers and Specialists alike have also shown a keen interest in continual learning and skills upgrading. Dr Maliki and Mr Michael Palmer asked about these aspects. Since the SAF's tie-up with UniSIM last February, the enrolment of Warrant Officers and Specialists in UniSIM degree programmes has increased by almost 30%. At a Continuing Education Awards Ceremony in January, we awarded sponsorships for degrees, diplomas and certificate level studies at various local institutions to 152 Warrant Officers and Specialists.

Let me just give Members one example, how this is affecting people on the ground. 2WO Vijaikumar – he works in the Air Force as a Warrant Officer – I presented an award to him at that ceremony. In fact, this is his second Continuing Education Award, this time in the pursuit of a full-time degree course. His first was in 2005 where he had an award to pursue a diploma in Mechanical Engineering at Ngee Ann Polytechnic. This was an oldish guy, he went to the Polytechnic – I met him after the ceremony – and he did very well. He graduated with a 4.0 GPA, which means a perfect score, earning him a place on the Dean's List. Last year, Vijaikumar did the SAF proud again when he became the first overseas candidate to top the US Non-Commissioned Officers course in Hawaii.

Sir, Mr Michael Palmer and Dr Fatimah Lateef asked about the broader training philosophy behind Basic Military Training

As Members have pointed out, both Mr Palmer and Dr Fatimah, the majority of our recruits are graded with a Physical Employment Status (PES) of A or B. There is no change to their nine-week BMT course. There was an extension to the Physical Training Phase (PTP) from four weeks to eight weeks which I had announced in this House last year. And the aim is a simple one – to improve the fitness of our PTP recruits so that they can reach a level comparable to their direct-BMT peers at the point of entry because we found that four weeks were insufficient. Even after four weeks, there were some still lagging behind those who have gone direct, so we added another four weeks. And this has been implemented since December 2009.

Another change is the recently announced new 19-week BMT for obese recruits. The rationale is the same. Studies of previous cohorts have shown that they needed this extra time. This gives extra time for our obese recruits to improve their fitness levels and achieve better weight loss. Other refinements are the programmes for PES E and PES C recruits which are now four and nine weeks respectively. These will provide the necessary training to prepare them for

Basically and overall, these refinements ensure that our recruits are committed, confident and ready to take on the next stage of their NS after they pass out of BMT. I should add that the overall duration of the full-time NS remains unchanged at two years.

Let me now move on to the topic of physical fitness among NS-liable students. This was a point raised by Mr Michael Palmer. MINDEF works closely with our junior colleges, polytechnics and the Institute of Technical Education (ITEs) and they want to encourage their students to achieve a high standard of physical fitness. He asked what percent of PES A and B enlistees achieved a Gold or Silver in the National Physical Fitness Award. 50% do. Such enlistees qualify for a two-month reduction from the NS duration of two years. MINDEF will continue to work with the schools to further improve the physical standards of our pre-enlistees.

Dr Lam Pin Min asked whether the Individual Physical Proficiency Test (IPPT) continues to remain relevant. It has been around for a long time and many of us remember it. The key attributes they test for are muscular strength and endurance of the upper and lower body, co-ordination, speed, agility and cardiovascular fitness. Despite modern technology, is it still relevant? We think so – it is as good a test as any. But there was a more important part which I thought he and Mr Palmer raised. It was whether in this process of the 3G transformation – indeed as they rightly pointed out, where we leverage on technology – what is the requirement? And I would say that it in no way reduces the physical fitness attributes required of our soldiers. We talked about Afghanistan, very rugged terrain. I have not been there, Deputy Prime Minister Teo went there. It is renowned for the ruggedness of the terrain. Conditions of terrain, and the

Mr Chairman, Ms Jessica Tan and Mr Viswa Sadasivan asked about MINDEF's policies on NS enlistment and deferment. There are clear, fundamental principles upon which these policies are based. First, NS must be for meeting a critical national need, and that critical need is our national security and our survival. We have specifically narrowed the scope because we know that it imposes considerable costs both to the individual and to the nation And we acknowledge that. As Ms Jessica Tan and Mr Viswa Sadasivan have pointed out, some people will have to defer educational pursuits, work or even reduced their income. So that critical need for national security and our survival is the only basis upon which we will impose NS.

From time to time, there have been calls to extend NS beyond this remit, to fulfil laudable social objectives. And I am referring to Mr Palmer's and Mr Seah Kian Peng's suggestion that NS should be for new citizens, those beyond the NS call-up age, so that they can better fulfil their role as responsible citizens.

The take-up rate of the current personnel eligible for conversion to MDES was high at 95%. One of our in-service personnel who will be converting to MDES is Lieutenant-Colonel Goh Nai Chuan, a branch head in the Navy. He said, "The MDES Scheme means that I can develop greater in-depth knowledge in my field of professional interest – logistics and supply systems – impart my experience and knowledge to the younger generation, and serve the SAF better." The initial response from the public to recruitment is also encouraging with entry-level recruitment at the Military Expert1 (ME1) level increasing by 10% in the period April to December 2009, compared to recruitment in the same period in 2008.programmes. Under these partnerships, relevant modules within SAF courses – some Members are familiar with the Command and Staff Course, for example – can be accredited and counted towards degrees awarded by NTU or UniSIM. I am pleased to report that to date, about 60% of last year's Command and Staff Course graduates have applied for this programme.

(BMT). I know many of us have gone through the BMT but let me just reiterate that is a critical part of our military training system. It engages recruits at the physical, intellectual and emotional levels. It prepares them physically for the next phase of their NS. It equips them with the professional knowledge to move on to more advanced military and vocational training. Just as important, it helps prepare them emotionally, for their overall well-being, to give them a sense of purpose and a positive identification with what NS stands for. These objectives continue to underpin our approach to BMT, even as we refine certain programmes. deployment in Combat Service Support vocations after BMT. tempo of operations will continue to demand a high fitness state for our soldiers in the execution of their combat tasks.

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I am not in any doubt that this is a laudable social goal, but it is an inadequate reason for us to impose NS to beyond that remit of critical national security and survival. Even though these social goals are laudable, they do not meet the critical need to impose National Service.

However, other agencies do have existing programmes to integrate new citizens to help them better understand the importance of national defence. For

The second fundamental principle of our NS is universality. All young Singaporean males who are fit to serve are conscripted. And this is easy to understand. If we have a system in which some are conscripted but others are not, there will be strong feelings of unfairness, which will undermine the commitment of our National Servicemen. This is a true test, not just maintaining their goodwill, but not undermining the commitment, because you have not been universal or fair. And the third fundamental principle of our NS is equity. That means that our NS policies are applied equitably to everyone regardless of background or status.

These three principles apply to the enlistment. They apply to every National Servicemen, including those who have returned from overseas. And they are subject to the same enlistment policies as their peers who are living or studying in Singapore.

Let me explain the context of our enlistment procedures. It is based on a number of factors, such as the individual's medical fitness, the type of training he will undertake in BMT, and our training and operational requirements. And Members are right, we do enlist a large number. And it is not possible for enlistees to be assigned their preferred enlistment date, regardless of whether they are studying in Singapore or overseas. All pre-enlistees have to wait for their turn for enlistment which takes place every quarter, and the wait-time will vary, depending on the intake they are scheduled for.

Ms Jessica Tan and Mr Viswa Sadasivan also asked if MINDEF can be

NSmen from the same unit are called back for ICT at the same time. And the reason is simple, this is to enable them to train as a cohesive unit so that the unit can remain operationally ready. And that is the key priority. Nevertheless, MINDEF will help our NSmen balance their work and academic commitments with their NS obligations, where it is possible to do so. For NSmen studying in NUS, NTU and SMU, we schedule their ICT call-ups during their academic vacation period. This is possible because a sizeable pool of our NSmen who are pursuing full-time studies are in these universities, and they share a common vacation period. For NSmen pursuing full-time studies in private educational institutions, their requests for deferment from their ICT have to be considered on a case-by-case basis.

NSmen are given at least three to six months' advance notice of their NS call-ups. And I think this should be enough time for them to inform their employers, to work with them to adjust and re-prioritise their work schedules. Each NSman has a role to play and the unit is affected if he is deferred from his In-Camp Training. There is a need to strike a balance between the inconvenience caused to the NSman, the company as well as the impact on the unit if the NSman is granted deferment.

Having said that, we recognise that there are some circumstances where we have exercised flexibility in the granting of deferment for NSmen. For example, there may be situations where an NSman finds it difficult to adjust his work commitments because a few of his colleagues who could cover his duties are also being called up. In such circumstances, the commander on the ground, who is often

In terms of full-time National Servicemen and enlistment, our prevailing principle that underscores these principles of equality and fairness ensures that if you are enlisted and when you finally do go to university, you do not go to university later than your peers within the same cohort.

instance, the People's Association organises visits for new citizens to the Army Museum. And MINDEF also organises visits for new citizens to the Basic Military Training Centre in Pulau Tekong.flexible in granting NSmen deferments from their In-Camp Training (ICT), to minimise disruption to their work and studies. an NSman himself, is in the best position to make the judgment, because it is the commander who is held accountable for the readiness of his unit.

Mr Chairman, Ms Ellen Lee asked for an update on the implementation of the recommendations of RECORD V. The Government had accepted all the 18 recommendations and I am pleased to inform this House that we have already implemented about half of the recommendations.

The recommendations to increase the rank and combat allowances of our NSmen were implemented since October last year. From 1st April this year, Sir, the rank allowance increments for NSmen will be implemented. NSmen will also get their increments earlier, after one work year instead of attending 40 days of NS In-Camp Training. In addition, key command appointment holders will receive the new Command add-on allowance. This will better recognise the heavy responsibilities of our NS commanders.

Sir, another recommendation was to help NSmen balance their military training and work demands during In-Camp Training. To facilitate this, we are enhancing the business centres in the three largest training institutes where NSmen have their In-Camp Trainings. These are the Infanty Training Institutions at Jurong Camp II, Armour Training Institute at Jekung Camp and Army and Logistics Training Institute in Kranji Camp.

SAFRA has also begun work with the Town Councils to incorporate IPPT in community training facilities into the fitness corners in the Town Council neighbourhoods. This will be an added convenience for our NSmen to train for their IPPT. The first IPPT training facility in Hillock Park at Bukit Purmei estate is already ready for use, and another nine facilities in areas such as Bishan-Toa Payoh, West Coast, Tampines, Yishun and Tanjong Pagar will be ready over the next few months. I am heartened by the warm responses from the various Town Councils and NSmen for this project. CPL (NS) Poh Yong Cheng, an NSman whom I spoke to two days ago at the launch of the first IPPT training facility at Bukit Purmei, told me that the facility has made it easier for him to train for his annual IPPT. This is because the facility brings together all the five IPPT stations, and is also very near his home. I encourage Members of this House to speak with your constituents and explore setting up more of such facilities in your town. SAFRA is waiting to hear from you.

The remaining RECORD V's recommendations, such as the introduction of Family Recognition Vouchers for NSmen and ORD mementos for NSFs, will be implemented in the next financial year. Members of this House would have received a copy of PIONEER magazine, in which you will be able to find a progress report on the implementation of the RECORD V's recommendations.

Sir, I am pleased to note that the message of Total Defence is being spread by Singaporeans from all walks of life, young and old. Instead of it being a top-down message from the Government, and certainly not just from SAF, but from all the Government agencies, it is now "viral", with Total Defence messages created and spread by the people from all walks of life. The Total Defence campaigns in 2009 and 2010 merely provided the platforms – ie, traditional and new media – especially new media these days, for Singaporeans to express themselves. Building on the "What Will You Defend?" campaign last year, the "I Will" campaign this year will ask Singaporeans to make a pledge to act on what is important to him/her, and to all of us. Singaporeans have responded enthusiastically. A total of about 27,000 pledges, mostly from schools and the grassroots, were made through various channels like the "I Will" website, pledge cards and roadshows. More, of course

Sir, we have also been engaging young people. Young people are very important, through projects such as N.E.mation (National Education animation) – Dr Teo mentioned that. It is an annual animation competition that allows them to express in their own ways what Total Defence means to them. In this year’s competition, the top 10 finalist teams were able to rally support for their clips through the use of Facebook. The teams posted behind-the-scenes photos and videos to show the progress being made in the production of their clips. As a result, the clips this year garnered some 57,000 votes from the public, almost double the number in the first competition. Many of the clips were of the highest quality. Two clips worthy of mention, first clip "Just Because" from CHIJ St. Joseph’s Convent and second clip, "Nation Moulders" from Jurong Junior College – won the Phoenix Award, for "Most Outstanding Film for a Product or Cause by a Student", in 2007 and 2008 respectively. The Phoenix Award is an annual competition in Asia that recognise creativity and professional skills in the production of commercial films, video and digital images. These Total Defence efforts represent part of an overall layered approach to engage youths. We first start in schools with National Education, and when they are in junior colleges, polytechnics and ITEs, all male and female students will visit SAF camps to have a first-hand experience of what the SAF and NS is all about. During their full-time NS stint, besides being trained to become fighting

Ms Indranee Rajah and Dr Maliki Osman asked how we can ensure that Singaporeans, especially the young, remain committed to defence, and how we are enhancing Singaporeans’, and particularly young Singaporeans’, appreciation of the role played by the SAF in safeguarding Singapore.

MINDEF will continue to use creative means to engage Singaporeans and enhance their personal commitment to defence. Events like the annual Total Defence campaign that I just touched on and the National Day Parade are just some examples of how we have sought to engage Singaporeans on a personal level. Many Members would remember the 8.22 pm pledge moment at last year’s NDP, that means 8pm 22 minutes, which sought to bring our entire nation together to re-affirm our commitment to Singapore by saying the pledge together.

To better foster commitment to defence among Singaporeans and let them have a better sense of what is going on in the SAF, we ought to reach out to the public, particularly our young people, through the use of new media. A good example is our cyberpioneer TV channel on YouTube. There, viewers can learn more about the SAF by watching short video clips on life in the SAF. We started the channel in December 2008, and today we have about 140 video clips garnering a total of almost 420,000 views.

Last August, MINDEF also gave our PIONEER magazine a makeover so that its content would appeal to a wider audience,

Sir, we have been fortunate that there is strong public commitment to defence and to National Service. However, we should not take this for granted. MINDEF will continue to engage all Singaporeans to strengthen their commitment to the defence of Singapore.

NSmen can bring in their laptops and PDAs to use them at these business centres after training hours. These business centres will be equipped with Wireless Internet Access to enable our NSmen to connect to their workplaces. We have received very positive feedback from our NSmen regarding this initiative and they are looking forward to the implementation next month. Sir, on Total Defence. Ms Ellen Lee asked if our approach to Total Defence has changed and how the Total Defence message can be further entrenched. This is also related to Dr Lily Neo’s question on integrating all citizens into our efforts to defend Singapore against terrorism. I would also like to thank Dr Teo Ho Pin for asking how we are engaging Singaporeans, in particular our youths, in Total Defence. Sir, today, Total Defence has become even more relevant, it is part of our life. Total Defence provides us with a whole-of-nation framework for overcoming potential threats and challenges, whether they are terrorism, pandemic outbreaks or economic downturns. It is wrong to say that Total Defence is a responsibility of the SAF, it is the responsibility of all agencies and everybody in Singapore. It is critical that all Singaporeans understand that everyone has a role to play in defending Singapore and in building a strong nation that is vigilant, prepared and resilient.will be explored. More can be expected. The website remains open, and more roadshows will be held at the various constituencies over the year. This gives us the confidence that our young men and women understand the importance of Total Defence and will play their part when we are faced with any crisis or challenges.soldiers, the males are given further insights into the defence of the country. And after their ORD, we continue to engage our NSmen during their annual In-Camp Training. Surveys in recent years have consistently shown that more than 90% of our people would defend Singapore should it come under threat.thereby spreading the message of Total Defence. PIONEER now not only has a new and more vibrant layout, but also helps the families of our NSFs and NSmen appreciate the importance of what they are doing. We received a letter from Ms Jennifer Chow, a girlfriend of an NSF, who wrote, “I am very happy with the new PIONEER because it presents a variety of information from military to lifestyle.” Perhaps from that magazine, Ms Indranee's colleague picked up the news about her, sitting on a tank, with a tank top or without a tank top. [Laughter.] She said, "I introduced it to my female colleagues". Similarly, Ms Stephanie Ang, a mother, wrote, “Now with the revamp of the PIONEER magazine, I can entertain myself and still be well informed of the SAF. I also have a better time communicating with my son about his army life.”

3.00 pm

Any clarifications? Mr Viswa Sadasivan.

I would like to thank the Second Minister for responding to my cut. Does that mean that a full-time National Service enlistee, if he is enrolled for full-time National Service in February and his course starts in September, that he might be considered for deferment when he finishes the two-year term so that he will not miss his place? I would like to seek clarification on this matter.

Also, the Second Minister did not respond to my second suggestion of

whether the SAF will consider rationalising in instances where Operationally-Ready Servicemen are called up for In-Camp Training twice in the same calendar year because of the technicality of it falling into two financial years.

Sir, in respond to the first question, I took some pains to explain MINDEF's approach. And, obviously, we recognise that with so many people who are enlisted and called up, it is difficult to address specific wants and concerns. Basically, we apply whether it is for enlistment or call up for ICT, three principles of universality for a critical need and for equity. In terms of that particular example, I ended my reply by saying that we want to ensure, in terms of equity, that no enlistee will enter a university later than his peers, in general. That will be the principle in which we apply. Because there are different starting terms, depending whether you are in the southern hemisphere in Australia, and with private institutions, really you could start anytime. So whatever your starting month, it is subsumed under this principle that we try to ensure that wherever the majority of the cohort enters university for that year, that those who are subsequently enlisted later will enter the university the same year as their cohort.

For the second point about the two call-ups within the same year because of the financial year, we will take that into account, look into that and respond to Mr Viswa when ready.

Any more clarifications? Mr Sadasivan.

I thank the Minister for his detailed elaboration of the 3rd Generation Force transformation efforts by the SAF – it is entirely impressive. My concern is this. As we transform and build up our capabilities, especially with higher profile inter

nationally and in the region, and being involved in multilateral and bilateral exercises as well as being a lot more involved in humanitarian operations overseas, even though our objective for building up capabilities is as a deterrent, I am just wondering whether this has caused any anxiety or discomfort amongst our neighbours. And if so, how have we handled that?

Sir, our defence policy is based on diplomacy and deterrence. That means in diplomacy, we make friends with everybody who wish to be friends with us and we build sincere relationships, strong relationships and personal relationships even with defence establishments all around the region. In this way, we hope that we create greater understanding of what we do for defence, and also create greater understanding on our part on what they do for defence, so that we can avoid any mistakes or misunderstandings which may give rise to friction or conflict.

From time to time, there may be people who do not understand what other countries are doing in defence. That is not unusual, but I believe that by constant and frequent engagement with other countries in the region, we will be able promote greater understanding of what we all do and how we can combine our efforts in defence together to create peace and stability in the region.

Any more questions? If none, Mr Palmer, would you consider withdrawing your amendment?

Sir, before I withdraw my amendment, may I thank the Minister, Second Minister and Minister of State for their very insightful, informative and complete replies. On behalf of the GPC, we would like to register our support for the men and women of the SAF, the regulars, the NS full-time and the reserves. On behalf of

Amendment, by leave, withdrawn.

The sum of $11,015,000,000 for Head J ordered to stand part of the Main Estimates.

The sum of $440,000,000 for Head J ordered to stand part of the Development Estimates.

my hon. colleague, Ms Rajah, I would like to assure the Minister of State that she was on top of matters and the tank did not stand a chance. I am also grateful for the Second Minister for his elevation to the status as doctor but I hear that other doctors in the House might have something to say about that. Indeed, one of my colleagues has already informed me of his objections. With that, Mr Chairman, may I seek your leave to withdraw my amendment.

Order. I propose to take the break now.

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

Order. I suspend the Sitting and will take the Chair again at 3.30 pm.

Sitting accordingly suspended

at 3.08 pm until 3.30 pm

Sitting resumed at 3.30 pm

Debate in Committee of Supply resumed.

Head N – Ministry of Foreign Affairs

APEC

Sir, I beg to move,

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

Sir, last year, Singapore was privileged to chair APEC. And in its 20th year, we hosted various milestone events. These included the APEC Ministerial Meeting, the APEC Finance Ministers' Meeting, the APEC CEO Summit and the APEC Economic Leaders' Meeting. Singapore was showcased to the world and thousands of Singaporeans played their part proudly, hosting delegations from APEC member countries.

The theme for these meetings was sustaining growth, connecting the region. I recall hosting a table at the dinner on the final evening of the Economic Leaders' Meeting. The delegates at the table were from various member countries. I recall – some were from Mexico, Hong Kong and the United Kingdom. They sang praises of Singapore. Not only were they impressed with the organisation and hospitality that we extended, they felt that much headway had been made during the meetings. We are proud of this and deservedly so.

May I therefore ask what the Minister sees as having been achieved for APEC and Singapore during the 2009 APEC Leaders' Forum held in Singapore. What are the deliverables, going forward? The Chairmanship of APEC has been handed over to Japan. Does the Minister envisage that Japan would take APEC in a different direction or would Japan build upon work has already been achieved?

There have also been several suggestions made by the leaders of various countries in relation to the formation of different regional clusters. These include the following:

An Asia-Pacific Community – suggested by Australia;

An East Asia Community – suggested by Japan; and

A trilateral summit between China, Japan and South Korea.

What is Singapore's position in respect of these suggestions? Will we be supporting any one of them? What is the philosophy that we adopt in terms of the regional architecture?

ASEAN

Sir, we know that the economic integration among the ASEAN member states is essential for the group to realise its full potential in economic growth. Its combined market of 550 million people creating a single economic entity can benefit the region in no small way.

However, the ASEAN countries have seen a fall in Foreign Direct Investment (FDI) in recent years, except for Vietnam and Singapore, due to the loss of their traditional sources of FDI to China and India; not a surprising situation, in view of the fact that China is a market of 1.3 billion and India is a market of one billion people.

Beyond economic sphere, it is already a struggle to ensure that ASEAN's voice is heard. May I ask the Minister on his assessment on the integration of ASEAN presently? In going forward, what momentum Singapore and the other ASEAN countries should adopt to have that extra impetus?

Under Singapore's chairmanship in 2007, one of the key deliverables was for a Charter that will make ASEAN a more effective, modern and rules-based organisation. Could the Minister elaborate on the lastest development in this area?

May I also ask the Minister whether MFA collaborates closely with MTI to have an add-value enhancement especially on economic benefits to us with foreign

countries, and whether together they could minimise duplication of efforts in order to maximise our resources.

Mr Chairman, the APEC Summit last year provided excellent international recognition for Singapore and the ASEAN countries. However, the events unfolding around ASEAN in the last year or so have raised doubts internationally about the role of ASEAN as an effective grouping.

Internal political problems plagued several of its members and, in some cases, even halted meetings of its leaders as in the case of what happened in Thailand last year, when the ASEAN Leaders' Summit was halted due to the volatile political and subsequent security situation there. Myanmar is challenged with its handling of Opposition leader Aung San Suu Kyi. Indonesia, despite a successful Presidential election, is faced with challenges to key political figures. Malaysia is faced with inter-racial issues and Philippines continues to struggle with threats of rebel groups in some parts of their country. Bilateral conflicts between ASEAN countries also put ASEAN in unfavourable light as in the case of the dispute between Cambodia and Thailand.

Sir, with all these happenings in each and between ASEAN countries, what is the Minister's assessment of the international perception of ASEAN? Is ASEAN seen as a weak grouping of countries? And if so, what is the impact of this on ASEAN's role as a grouping in the region and beyond?

Some have commented that the weakening of ASEAN has led to countries like China dealing with individual ASEAN countries separately instead of as a block. Will India follow suit in balancing the power of influence and presence in the region? What is the overall implication of such a scenario on the future of ASEAN?

Is ASEAN risking losing its relevance as a block in the region to be reckoned with?

Relations with Southeast Asian countries

Sir, I would like to cover three countries in Southeast Asia which have been in the news recently. These are Malaysia, Indonesia and Myanmar.

Malaysia – on 3rd April 2009, Datuk Sri Mohd Najib was sworn in as Malaysia's sixth Prime Minister. This was following UMNO's worst defeat in the general elections since its formation. After taking over, Prime Minister Najib announced his One Malaysia plan. The plan was centred around eight values which were meant to unite the people under the One Malaysia banner. This was a direct reaction to the poor showing in the general election which had been, in part, caused by the discontent in UMNO along racial lines. Unfortunately, One Malaysia does not seem to have had the intended effect. The torching of churches and suraus has ensued and the Anwar's trial has not helped to unite the country. In light of this, may I ask the Minister what is the status of Singapore's relationship with Malaysia and how he sees Singapore's relationship with Malaysia developing, given the very fluid and seemingly uncertain political climate in Malaysia.

Indonesia – the situation was almost the reverse for President Bambang Yudhoyono. At the last Indonesian general election, he took office for a second term with a strong majority. Unfortunately, that situation has unravelled. His approval ratings are down and he is under intense political pressure over the Bank Century bailout. In last Thursday's Straits Times, it was reported that President Yudhoyono had accepted responsibility for the decisions made in respect of the bailout, even though he said that he was not directly involved. That does not seem to

On the international front, President Yudhoyono has been playing up Indonesia's role in international affairs. May I ask what is the status of Singapore's relationship with Indonesia and how does the Minister see Singapore's relationship with Indonesia developing? How does the Minister see Indonesia's role in the region developing?

Myanmar – I had the privilege of travelling to Myanmar last year when Daw Aung San Suu Kyi was in the midst of her trial. I witnessed the country under serious international pressure. Since then, things have evolved and in the international community, the United States, in particular, has taken a softer, more open and engaging approach to Myanmar. May I ask what is the status of Singapore's relations with Myanmar? Does Singapore envisage that the elections will be open and fair? Has the new approach adopted by the United States in respect of Myanmar led to better engagement between Myanmar and the West? What about Aung San Suu Kyi? Will she be released in time for the elections? What steps has Singapore taken to press for her release?

have stemmed the tide of politicians calling for their prosecution.

Ms Rajah, you have two consecutive cuts. Take them together, please.

Bilateral relations with US

Sir, I would like to ask the Foreign Minister about our bilateral relationship with the United States. It has been over a year since President Obama took office. The US economy is still not quite out of the doldrums although things are looking a little bit better now than they were previously. We have close political and

economic ties with the United States. The question is: have there been any significant changes in our relationship under the Obama Administration. We have about a year now to assess where the relationship is going and how it is developing. There is a new Ambassador who has been appointed to Singapore. How does the Foreign Minister see this relationship developing? I would also like to ask the Foreign Minister for his views on our economic and trade ties with the United States post the 2008 financial crisis.

Relations with China, India and Japan

I would also like to ask the Foreign Minister about our relationship with China, India and Japan. China and India are, of course, the rising countries in Asia. They have huge populations which are able to manufacture and produce goods much more cheaply than other countries in the region. Singapore's policy has been to engage with them rather than to try and compete on a cost level. We have tried to make ourselves useful both to these two large behemoths in the region. What I would like to ask the Minister is for his views on our political relationship with the Chinese and Indian governments and also whether he sees us deepening and strengthening our trade ties and how he sees the relationship with these two countries with whom we share a great culture and ethnic affinity developing.

Also with respect to Japan which is another strong power in Asia, what opportunities does he see for us to deepen and strengthen our ties with Japan?

Relations with China and Japan

Mr Chairman, China and Japan are key strategic partners in ensuring economic and political security in the region. China's growing influence, both economically and militarily, has also

Singapore enjoys good relations with China and is one of the few countries whose citizens enjoy visa-free access to China. China had also announced last year that a pair of endangered giant pandas will be delivered to Singapore as a sign of Singapore-Sino relations reaching a "new high".

Similarly, Singapore and Japan also enjoy warm and cordial relations since 1966. There is also continuous exchange of visits at the highest levels. However, the elections last year ended 50 years of rule by the Liberal Democratic Party (LDP), with the Democratic Party of Japan (DPJ) led by Japanese Prime Minister Yukio Hatoyama, taking over as Japan's new government.

I would like to ask the Minister for an update on the bilateral relations with both China and Japan, especially with the new DPJ government in Japan. How will the proposal of an East Asian community by the new Japanese Premier affect the Singapore-Japan relations and the centrality of ASEAN in the region?

raised some eyebrows amongst some major powers.

Japan-Singapore relations

I may now be reported to the Medical Council.

Sir, last year, the Prime Minister opened the Japan Creative Centre jointly with Prime Minister Yukio Hatoyama, the first of its kind in Singapore and possibly the region. The Creative Centre is meant to promote Japan's soft power and its design technology. The opening of the Japan Creative Centre signifies yet another milestone in the warm ties that Singapore enjoys with Japan.

Indeed, over the years, there has been an increasing convergence of interests between the two countries, particularly in the area of bilateral trade of which both

In view of the common interest that Singapore shares with Japan, I would like to ask the Minister whether there are other areas that the Government is looking at that we can work more closely with our Japanese counterparts in jointly promoting our mutual interests. For example, one possibility is the promotion of joint investments overseas that would leverage on the best that the two countries can offer.

are top investors in each other's country and also in foreign affairs. Like Japan, Singapore aims towards leveraging of high technology to sustain its growth and to us here in Singapore, Japan has always been the model of hard work, discipline and attention to details. There is much that Singapore can learn from Japan. One area I can think of is promotion of Green and Clean energy of which the Japanese have had a headstart over us.

Singapore-Middle East trade and relations

Sir, the Middle East represents a non-traditional area for Singaporeans to set up companies and have business collaborations. This has, however, been on the rise, especially in the last several years. Of late, there have also been more high profile visits by our leaders and business sector representatives to the Middle East and we, too, have hosted many of them coming here. How big is the Middle East as our trading partner and what are the future directions and targets for Singapore-Middle East cooperation? Are we planning any further FTAs with them? Also, taking into account the region's unique cultural and religious sensitivities, how well are our businessmen and companies prepared for this venture?

3.45 pm

United Nations

Sir, Singapore's two-year stint at the United Nations Security

Now that Singapore's membership at the Security Council is completed, I would like to ask the Minister for an update on its longer term plans and priorities at the United Nations and, in particular, whether Singapore intends to step up its efforts to play the role of a peace-maker in conflict areas as some of the other countries have done.

Council marked a high point in our more than three decades of involvement in both regional and global organisations.

G20 and Singapore's role

Mr Chairman, the Group of 20 has replaced the Group of 7 as the key driver of cooperation on international economic matters. Singapore is not a member of the G20. At the same time, Singapore is an active member of the 3G, the Global Governance Group, an informal coalition of small and medium UN member states which aims to channel views into the G20 process. I would like to ask the Minister how effective the 3G has been. Is there a growing risk that non-G20 members, even those in the 3G will be marginalised? What steps can Singapore take and what role can we play through and beyond the 3G to secure our interest in international agreements?

Singapore is an important financial hub and ranks among the top 10 nations in the world, in terms of our foreign reserves. Does the Minister foresee Singapore becoming a permanent member of the G20 on that basis?

Singapore in G20

Mr Chairman, the G20 was established in 1999 as a response to the financial crisis then. The grouping brings together both advance and emerging economies to discuss measures to promote financial stability

and of course sustainable economic growth. Following the last crisis from which we are just emerging, G20 has been striving to strengthen international cooperation and assisting in implementing sound expansionary macro-economic policies. The networking, goodwill, camaraderie and thought sharing is certainly a benefit with such groupings. How has Singapore benefited from G20 and will there be any future developments? Are there plans to implement any changes to the way the group works and implement guidelines that assist nations following the latest global financial crisis which we just experienced?

Sir, I thank the Members of Parliament (MPs) who asked questions about Singapore's foreign policy.

Mr Michael Palmer asked about the future of APEC after Singapore's chairmanship last year and how APEC fits into the regional architecture. The APEC Economic Leaders' Meeting (AELM) in Singapore last November was successfully held, produced good results and on the whole enhanced Singapore's international reputation significantly. There was a strong spirit of cooperation which we hope will also suffuse the coming meetings, first, in Yokohama, then in Honolulu, then Vladivostok. And we are working with the incoming Chairs in particular Japan and the US in ensuring that what we have done in Singapore will be followed through into the next two venues.

As APEC accounts for roughly half of global trade and production, it is the most important regional organisation in the Asia-Pacific. Promoting greater regional economic integration and fighting trade protectionism are the major challenges in our common effort to achieve the Bogor Goals of a region of free and open trade and investment by 2010 for developed

An important initiative which can help get us there is the Trans Pacific Partnership (TPP), which was given a strong push forward during the Singapore Meeting. Before US President Obama arrived in Singapore, he affirmed his Administration's support for this initiative. By drawing the US, Singapore, Brunei, Australia, New Zealand, Chile, Peru and possibly Vietnam as well into one large regional free trade area, the TPP will generate positive momentum in APEC towards the achievement of the Bogor Goals, as well as towards a possible Free Trade Area of the Asia-Pacific. Although negotiations for the TPP will not be easy, Singapore will work hard along with other countries to move the process along. APEC leadership will also be crucial as part of the global concerted effort in addressing the challenges of climate change, globalisation and macro-economic imbalances.

During the Singapore Meeting, international financial reform was a major item on the agenda. As 10 of the 21 APEC Economic Leaders had attended the G20 Meeting in Pittsburgh two months before, the discussions on financial reform flowed naturally into the Singapore Meeting.

Mrs Josephine Teo and Dr Fatimah Lateef asked about the importance of the G20 to us and of our participation in it. Singapore has a strong interest in good global governance, not least because we are a major international financial centre. We see the G20 as an important agent of positive change. For this reason, both in ASEAN and in APEC, we support strongly the G20 process and contribute in whatever way we can. Finance Minister Tharman participated in some of the meetings, and we hope to be able to continue participating in future meetings

Mr Sin Boon Ann asked about Singapore's goals in the UN. What we do to help the G20 is an illustration of the general approach we take in the UN to improve global governance. A world governed by rules of civilised conduct, where might does not equal right, is crucial for our well-being. This was the position we took when we were in the Security Council in 2001-2002. Happily, many countries in the UN share our worldview. While maintaining good links to the major powers, we have been very active in building coalitions among smaller countries so that our interests are also protected. Over the years, we have promoted an informal Forum of Small States (FOSS), consisting of countries with populations of less than 10 million people. These countries make up half the membership of the UN. By sharing information, exchanging views and occasionally acting together, FOSS has become a significant grouping. Every year at the General Assembly, I host a makan kecil for members of FOSS. And when we meet each other, we say, half in jest, that "The FOSS is with you".

Despite severe challenges last year during the Thai Chairmanship, ASEAN has not only held together, it continued to make progress, although not as much as we would have hoped for. The Charter is being implemented; the ASEAN Intergovernmental Commission on Human Rights has been established; a Committee of Permanent Representatives now meets regularly at the ASEAN Secretariat in Jakarta and 33 countries have accredited ambassadors to ASEAN; a currency swap arrangement called the Chiang Mai Initiative Multi-lateralisation was signed with China, Japan and Korea; FTAs were concluded with Australia and New Zealand, India and Korea; the first Summit Meeting between ASEAN Leaders and the US President was held in Singapore last November; ASEAN and Gulf Cooperation Council (GCC) Foreign Ministers met for the first time in Bahrain; we embarked on a major project to draw up a masterplan for connectivity along all dimensions, within ASEAN, and between ASEAN and the wider region; and a comprehensive FTA with China came into force at the beginning of this year, by far the biggest market in the world encompassing a combined population of almost two billion people.

Relative peace in the region and the enlargement of our economic space have made possible Singapore's continuing economic development. For this reason, a strong ASEAN is at the heart of our foreign policy and our economic policy, and both MFA and MTI work very closely together to ensure that our objectives are met and our interests safeguarded. Singapore and a number of other ASEAN countries would like to see the ASEAN

The major powers are all friendly to ASEAN and want to see us do well because our unity and development are in their interest. All of them see ASEAN playing a central role in the evolution of the regional architecture. At the G20 Summits in London and Pittsburgh last year, the ASEAN Chair was invited because of the importance given to ASEAN as a regional grouping. This recognition of ASEAN's role is in fact a triumph of our diplomacy but it also puts on us a heavy responsibility to pull our weight and respond in a timely way to new challenges and I think it also puts a particular responsibility on us to resolve our bilateral problems in a peaceful manner.

Mr Palmer and Dr Lam asked specifically about ASEAN's response to Japanese Prime Minister Yukio Hatoyama's proposal for an East Asia community and Australian Prime Minister Kevin Rudd's proposal for an Asia-Pacific community, both with small "c"s. At our recent retreat in Da Nang, ASEAN Foreign Ministers affirmed the centrality of ASEAN. To the extent that new proposals strengthen, not weaken, ASEAN and our position in the regional architecture, we are prepared to consider them with a positive spirit but our strong preference is to be in the driver's seat, not because we think we are the best driver, but because we are the driver acceptable to all the passengers. And we are working with Vietnam and we strongly support Vietnam as the present ASEAN Chair as we now strive to do all the things necessary to establish a full-fledged ASEAN Community by 2015.

Mr Palmer asked about the status of our bilateral relations with Malaysia and

Under Prime Minister Najib, our relations with Malaysia are very good and their domestic challenges do not really affect this bilateral relationship. In May this year, Prime Minister Lee and Prime Minister Najib will be having a retreat to discuss how we can strengthen bilateral cooperation.

I have been in discussion with Foreign Minister Anifah on the implementation of the Points of Agreement on Keretapi Tanah Melayu Berhad (KTMB) land and I am hopeful of a win-win outcome which will open up new areas of cooperation between the two sides. In particular, through the Joint Ministerial Committee, both sides have been discussing further cooperation in Iskandar Malaysia, including Singapore's investment in an iconic project and the possibility of linking the two urban rails together.

Support of the Johor ground is a necessary pre-condition. When Minister Mentor Lee Kuan Yew visited Johor Baru to pay his final respects to the late Sultan of Johor, the new Sultan, Sultan Ibrahim, expressed clearly his wish for stronger relations between Johor and Singapore. Our new consulate in Johor Baru is already busy with work.

On Indonesia, the re-election of President Susilo Bambang Yudhoyono last year was good for bilateral relations. Prime Minister attended his inauguration in October and President Yudhoyono made a bilateral visit to Singapore the following month. Earlier in the year, I signed an agreement to de-limit the maritime boundary in the Western part of the Singapore Strait with Foreign Minister Hassan. Later this year, Prime Minister and President Yudhoyono will hold a retreat to review our bilateral relations and explore new areas of cooperation. As to whether the present challenges in Jakarta,

4.00 pm

This will be a critical year for Myanmar.

economies and 2020 for all the economies.at the highest level possible. As a global financial centre, we believe we have a useful contribution to make. At the UN, we have helped form a group of countries called the 3G countries which means Global Governance Group, a name coined by the Liechtenstein Foreign Minister which we contracted to "3G" so that it does not sound too grandiloquent. We participate in this 3G process in order to help the G20 assume greater legitimacy in the global community of nations. It is to improve the G20's interaction with the general membership in the UN, which in turn would build wider support for G20 actions. It is important that the decisions of the G20 take into account the interest of other countries and are supported by them. The G20 process should strengthen the UN and other international organisations, not weaken them.Mr Michael Palmer asked how ASEAN is shaping the larger regional architecture. Dr Lily Neo and Dr Mohamad Maliki are concerned about ASEAN's effectiveness and its usefulness to Singapore.Flag flying side by side with national flags at the overseas missions of all ASEAN countries in the world. And I hope we can do that by the time we establish an ASEAN Community in 2015.Indonesia, and about the situation in Myanmar.particularly on Bank Century, will affect our bilateral relations with Indonesia, I do not think so. But these challenges reflect a post-Soeharto, much more fragmented power structure in Indonesia which is a new reality we have to accept and work with. It means not only dealing with Ministers and leaders in Jakarta, but also with different branches of government, and with local governments at the provincial level, and at the level of the kabupaten.

At long last, elections will be held under a new Constitution that guarantees a continuing strong role for the military in Myanmar politics. The present Government promises that the elections will be "free and fair". Critical to its legitimacy will be the spirit of national reconciliation among the many ethnic groups in the country and the participation of the National League of Democracy and other opposition parties. We know there are ongoing discussions between Daw Aung San Suu Kyi and the generals, and hope that both sides will show flexibility and compromise. Singapore supports the ASEAN position calling for the release of Daw Aung San Suu Kyi and her participation in the coming elections.

If there is no reconciliation and the elections outcome is not seen as legitimate, especially by Myanmar's neighbours, then ASEAN will have a problem. At the ASEAN Foreign Ministers' retreat in Da Nang, we expressed our concerns and our hopes in no uncertain terms to the Myanmar Foreign Minister.

Bilaterally, our relations with Myanmar are good. Myanmar Prime Minister Thein Sein made his introductory visit to Singapore in March last year and Senior Minister Goh Chok Tong visited Myanmar in June 2009 at the invitation of Prime

Ms Indranee Rajah, Dr Lam Pin Min and Mr Sin Boon Ann asked about relations with the US, China, India and Japan. Our links with the Obama Administration are very good. Our relations with the US have remained stable, positive and warm. There continues to be high-level exchanges between both sides. The slowdown in the US economy has not affected Singapore-US economic ties in a significant way. The strong economic relationship is underpinned by the Singapore-US Free Trade Agreement (FTA) which came into force in the year 2004. Although two-way trade fell from S$86 billion in 2008 to S$67 billion last year, the decline is consistent with the overall decline in global trade. The US remained our third largest trading partner in 2009, after Malaysia and China, and both Singapore and the US are also significant investors in each other's countries.

President Obama, together with several members of his Cabinet, visited Singapore for the APEC Leaders' Meeting in November last year. At the invitation of President Obama, the Prime Minister will be visiting the US in April to attend the Nuclear Security Summit.

Despite many preoccupations, the US has made efforts to re-engage ASEAN. President Obama's attendance at the first US-ASEAN Summit despite his concerns about Myanmar, and Secretary of State Hillary Clinton's regular attendance at ASEAN meetings have sent a strong signal which is appreciated throughout the

All of us in ASEAN know that we need a strong long-term US presence in the region for our continuing peace and development.

Our bilateral relations with China are excellent, underscored by strong economic ties, regular exchange of visits by leaders on both sides and a high level of people-to-people exchanges. President Hu Jintao's first State Visit to Singapore last November has raised our bilateral relationship to a new level. Four MOUs were signed during the visit which included the establishment of a China Cultural Centre in Singapore and the loan of a pair of giant pandas. We also celebrated the 15th Anniversary of the Suzhou Industrial Park last May.

Over the years, we have steadily broadened and deepened our relations with China through various bilateral mechanisms like the Singapore-China Joint Council for Bilateral Cooperation. Last year, we announced a three-way collaboration involving the new Singapore University of Technology and Design, the Massachusetts Institute of Technology and Zhejiang University. We launched the China-Singapore Forum on Leadership Selection and Development, which is a new platform enabling political leaders and senior officials from both sides to exchange experiences and ideas on leadership development. We also established the Singapore-Guangdong Collaboration Council (SGCC) which will open new opportunities for our companies in the Pearl River Delta – one of the fastest growing regions in China.

This year marks the 20th Anniversary of the establishment of diplomatic relations with China and it is a significant

Our bilateral relations with India are also excellent and multifaceted. All the major pillars of our bilateral relations – political, economic, defence and regional cooperation – have grown stronger. Institutional linkages have been established across several sectors at various levels and each side has become a significant investor in the other. Although bilateral trade declined with the global economic downturn last year, this is temporary. Defence and security exchanges have continued apace. In terms of people-to-people relations, tourist figures both ways remain healthy, and there have been frequent exchanges among scholars. Just yesterday, I was talking to Mr Iswaran about the new Integrated Resorts (IR) and how it will greatly increase the number of Indian tourists coming to Singapore. They are now talking about perhaps even two million tourists from India every year. We are now working on new areas of cooperation in education, culture and urban management.

The new DPJ Government has broken a long period of LDP rule, a point made by Dr Lam Pin Min, the full implications of which are still not clear. Regardless, we expect Singapore-Japan relations to remain strong as we share many common strategic interests. Bilateral relations have also broadened in recent years to include cooperation in various non-traditional areas such as defence, anti-piracy and export control. In fact, there is such an ease in relations that when Ministers and officials meet, we can discuss new areas

Dr Fatimah Lateef asked for an update of our Middle Eastern account. On the whole, it is growing nicely. In fact, from not very much six years ago, we now manage a sizeable portfolio, all the way from the Maghreb to Iran.

Non-oil domestic exports in the Middle East have doubled from about S$2 billion in 2003 to S$4 billion last year. Our direct investment in the Gulf countries has quadrupled from S$213 million in 2003 to S$850 million in 2008. Our companies have secured S$25.5 billion worth of projects in the Middle Eastern region in total. New projects in the Gulf include Sembcorp's S$1.5 billion project to build an integrated water and power plant in Salalah in Oman. And beyond the GCC, we have also made good progress in Libya where we secured projects worth some S$4.3 billion in the past two years.

FDI from the GCC has also increased significantly, totalling S$2.3 billion last year. We hope to attract much more. The GCC has become a major economic

President Nathan made state visits to Qatar, Oman and the United Arab Emirates in March last year. Senior Minister Goh visited Oman and Bahrain this year, and is planning more visits to the region later this year. We also received a state visit of the Amir of Qatar in May last year, and a visit by the Crown Prince of Abu Dhabi in August. Right now, at the Asian Civilisations Museum, we have a beautiful collection of Mughal jewellery from the Kuwaiti palace, and even as we speak right now, there is an Omani dhow, sailing across the Arabian Sea to Cochin–the Jewel of Muscat, a generous gift from the Sultan of Oman, which is sailing with the monsoon to Singapore, retracing an ancient voyage which took place over a thousand years ago. People-to-people exchanges have also increased. In particular, inbound tourism from Saudi Arabia has increased by 7% from 2008 to 2009, and has quadrupled since 2002.

In this new age of globalisation, space is opening up all around us. Although there are many challenges in the international and regional environment, we can find in them new ways to make a living. This is the new context in which

Minister Thein Sein, and in Nay Pyi Taw, he also met Senior General Than Shwe. Singapore continues to do our part in helping Myanmar build up its capacity. We have provided technical assistance through the Singapore Cooperation Programme (SCP) and under the Initiative for ASEAN Integration.region. Later this month, President Obama will be making an official visit to Indonesia, where he spent a part of his childhood, and will have the opportunity to use his Bahasa. milestone in our bilateral relationship. Both sides are jointly planning a series of commemorative activities to mark the occasion, and we look forward to the ground-breaking for the China Cultural Centre in Singapore. Singapore is also participating in the Shanghai World Expo. The Singapore Pavilion will showcase our "urban harmony"; an area where we have shared our experience with China over the years.of cooperation. Last year, President Nathan made a State Visit following the successful visit of Emperor Akihito and Empress Michiko to Singapore in 2006. The Prime Minister also made a working visit to Japan last October. And the Prime Minister was one of the first foreign leaders to meet with the new Japanese Prime Minister. The Prime Minister's visit also set the stage for future cooperation in areas like green technology and ensuring a global free trade system through the APEC agenda. In addition, during Prime Minister Hatoyama's visit to Singapore last November to attend the APEC meeting, the Japan Creative Centre was launched by the Prime Minister and Prime Minister Hatoyama. And we hope that through this Centre, we can help Japan increase its soft power in the region. These visits and initiatives symbolise the close relationship between our two countries.partner of Singapore and we hope, eventually, with ASEAN as a whole. Last year, the GCC countries were collectively Singapore's nineth largest trading partner comprising 5% of Singapore's total trade. Underpinning our engagement of the GCC are various economic agreements, including the GCC-Singapore Free-Trade Agreement, various investment guarantee agreements and various double taxation agreements, or should I say, avoidance of double taxation agreements, and a number of bilateral platforms with Qatar, Oman, Abu Dhabi and Kuwait. And in May this year, Singapore will host the second ASEAN-GCC Foreign Ministers Meeting.we seek to restructure the Singapore economy. We need sensitive antennas to detect new trends and comprehensive responses to threats and opportunities. The mission of the Foreign Ministry is to expand the external political and economic space for Singapore's continuing development.

Any clarifications? Mr Yeo, you can carry on if you want to, as we still have time.

I am done, Mr Chairman.

Technically, you are done but you can carry on.

Unless there are questions raised by Members which I have not adequately answered.

We still have a lot of time. Any clarifications or questions? Yes, Mr Palmer,do you want to withdraw your amendment?

Mr Chairman, Sir, it was obviously an astute, clear and concise answer which requires no further clarifications. I would like to thank the Minister and his team for delivering on a subject which is not easy to get across to the people not in the know.

On behalf of the GPC, to the Minister –

You can go ahead and make your speech if you want to.

I thought I had a bit of time. On behalf of the GPC, to the Minister and his team, we say may the "FOSS" be with you. And, Mr Chairman, Sir, I am heartened to note that we have settled Mr Sin Boon Ann's status given Mr Sin's gravitas and abilities on and off the green to assume that he is a doctor would certainly not be a sin.

Amendment, by leave, withdrawn.

With that, Mr Chairman, may I seek your leave to withdraw my amendment?

The sum of $392,296,000 for Head N ordered to stand part of the Main Estimates.

The sum of $44,750,000 for Head N ordered to stand part of Development Estimates.

Head T – Ministry of National Development

4.15 pm

Affordability of HDB flats

Sir, I beg to move,

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

Sir, my first cut is on the "Affordability of HDB flats." This issue is of great public interest. We must discuss it, we must debate it. But at the same time, we need also to put the issue in its right perspective.

Before I begin, let us revisit the history of the Housing Development Board (HDB). HDB was set up 50 years ago, back in 1960, during a period when Singapore faced a housing crisis. At that time, many Singaporeans were living in slums. Only 9% of Singaporeans lived in flats. Since then, the HDB has constructed and made available some 880,000 homes to Singaporeans. This was no happenstance. It was the result of a bold vision, meticulous planning and swift execution.

Our achievements in public housing can be attributed to the strong Government support and financial commitment. HDB has subsidised, financed and housed an entire nation. In the last 10 years, from financial year 1999 to 2008 alone, HDB

When compared to public projects, say in Bronx, Manhattan or Hackney in East London or Mong Kok in Hong Kong, our public housing estates are envied by many. And it is not just about flats. It is our ability to provide every migrant family then, who had arrived here from many shores, a stake in the country – a reason for them to sink their roots here and call Singapore home. That is why while they were taken as scapegoats, we must continue to enable our new migrants, PRs, citizens, to own homes even if they had caused prices to creep up.

My plea to the critics of MND and HDB is a simple one. Let us see it in the right perspective. Put it in context and do not politicise the issues.

The mission of the HDB is to provide affordable housing, but I believe that allowing HDB flat prices also to appreciate gradually over time, must also be one of its objectives and desired outcomes. In fact, what sets public housing in Singapore apart from public housing in the rest of the world is the "wealth creation effect" of HDB housing over the years.

Consider the converse – a crash in HDB prices, that will be a disaster! If we over-correct the current situation of a creeping up of prices and over-built right now, we run this risk of creating an even bigger problem. This is exactly what is happening in the US sub-prime market which has sparked off a world recession. So, broadly speaking, a gradually appreciating HDB flat is a good thing and we really do not want "falling prices".

I would like to ask the Minister about the past trend of new flat sale prices. Over the last 10 years, for each class of new HDB flats, are they sold at prices that have grown faster than the median household income? How has this debt service ratio changed over the last 10 years? How does it compare with DSRs in other developed cities? This will give us a sense of whether or not HDB flats continue to be affordable by Singaporeans.

More importantly, will the Minister assure prospective first-time buyers that new HDB flats that are coming on-stream will be priced at a level that will be within their reach and if need be, a higher subsidy (compared to resale market prices) will be provided so that the DSR will remain largely the same as in recent years?

There is another concern for buyers of new HDB flats; that, the time taken to obtain one is about three years. This is

Some people consider the inability to afford the cash downpayments or cash-over valuations as an "affordability issue". I see this more of a financing issue and this leads me to my next cut.

Financing of HDB flats

Sir, MND and MAS have reduced the Loan to Value (LTV) from 90% to 80% recently for all buyers – private properties as well as bank loans. I would like MND to consider allowing newly married couples under the age of say 32 years old, who are buying their first owner-occupied homes, to be able to obtain a higher LTV, of say, 90%-95% if they pass credit evaluation test. This is a group of buyers who has a genuine need for a first home and they are clearly not

ran a total home ownership deficit of $7.3 billion. That means the sales revenue where it collects from selling the flats, fall short of its cost for land and construction by $7.3 billion in the last 10 years. HDB also carries a housing loan of $47 billion as of the end of last financial year and these are the amount that were used to finance HDB flat owners.To achieve this objective though, we must do a better job at forecasting demand so as to match the supply accordingly. After all, prices are determined through supply and demand interactions. I recognise that this is not easy. For example, some of the factors contributing to the recent spike in resale HDB flats. Prices are high liquidity in the marketplace, very low interest rates and the lack of attractive alternative investments. These factors are very difficult to forecast, even sentiments. However, other factors like the number of couples getting married each year, number of new citizens and PRs expected and number of upgraders to bigger units etc. These could have been forecasted with reasonable confidence. If we do this well, we can avoid HDB flat price volatility and therefore maintain a reasonable Debt Service Ratio (DSR) so that first-timers can continue to afford HDB flats.considered too long. Could, for example, the Minister consider that the BTO threshold be lowered to, say, 40%-50% instead of 70% before construction can begin? Also, could the construction time be shortened by way of piling in advance of need or pre-fab fabrication construction methods that are faster, more productive in order to bring new flats to the market more speedily? I think this would allay a concern of many. In order to reduce the supply lead time, another method which may be worth considering by the Ministry, is to construct a "base load" of units under Build-to-Sell (BTS) scheme rather than Build-to-Order, in other words, you build ahead of demand, but only a base load. This base load could be determined, for example, by looking at past demand and drawing a line where it is a "safe level" of supply across the property cycle that will be met with demand without inundating the market. If you do that, this will become a ready stock for prospective HDB buyers. Then, the BTO scheme which is really constructing to demand, can then be layered-on to meet fluctuations of demand at each stage of the property cycle. I would like the Minister to consider whether this is viable.speculators. Also, because they have many years of working career ahead of them, they could repay these loans better than older couples and their DSR will decline over time as most would enjoy some degree of salary increases. The other issue is COVs, this is the other "bugbear" which has been bothering many prospective buyers. In a rising property market, valuations of properties lag behind the prevailing prices, which is climbing day by day. If valuations were conducted "real-time", that can be done. Then they should reflect that prevailing transacted prices and logically there should not be a Cash-Over-Valuation. The reason that Cash-Over-Valuation has happened was because of the lack of the timing of valuation versus the market place happenings.

You are running out of time, Mr Foo.

So, I would like to know if HDB can improve the "price recovery mechanism" by disclosing transaction of past HDB resale flats prices more regularly. I understand HDB does so quarterly today.

Finally, I would like to make a plea for second concessionary loans for downgraders. This has been something that this House has discussed many times but have yet to be successful.

Demand and supply of affordable HDB flats

Mr Chairman, Sir, supply and demand of affordable flats – these three words are critical words that I have chosen carefully and I will bring up my concerns that have made many MPs very frustrated at the MPS. Affordability is define by the dictionary as, "one is able to pay". However MND defined affordability as the amount of loan instalment for the flat as

However, Minister assumes income is static over the loan period of 20 to 30 years. For young couples, one can expect the CPF income to increase. But for an upgrader, who is middle aged, one would expect the income to come down. Many would struggle to pay the loans when they are over 50 or 60 years, when health and income decline. Cash-over-valuation is part of the affordability ratio, but this is not taken into account. The other concern of affordability is location pricing. Here, HDB has priced its flats according to location. However, we are talking about public housing, basic housing for the people. We know some of these flats at convenient locations, where parents stay are not affordable at all. HDB should also review its floor pricing. Many young couples complained that these are their first flats they are buying and they want to select the best flat. Floor pricing should deviate enough to attract young people to buy, instead of penalising these young people for not selecting these flats.

For supply of flats, HDB is only supplying flats in the future, using the BTO system. Flats are only available in three to four years, and not presently. That is clearly future supply and not current supply. Although in 1997, HDB has 31,000 excess flats. Now in 2010, there is zero or no ready flats available, except resale flats. HDB is really going to extreme measures for the supply of ready flats. I am pleading to HDB once again to build some ready flats for market demand. There are many buyers for ready flats in a year – those who want to get married and cannot wait for three to four years, those families that break up, growing families

not exceeding the 30% of the household income of a family. The Minister replied to a PQ in January 2010, using an example of a family with income of $4,000, and the family can easily afford to buy a flat costing $333,000 – using his 30% definition of affordability.may need to shift due to the need for bigger space and to be closer to schools, aged parents, need extra bed space due to medical reasons. Even the Minister stressed the fiance and fiancee scheme. To get to know the other party, it takes at least three years, before you can say, "hey, we can consider getting together". The couple then applies for BTO, and wait another four years. It takes a total of eight years.

I would like to appeal to Mdm Phua to finish your speech. [Laughter ]

Thank you. Please consider having ready flats.

Supply and affordability of HDB flats

Sir, although the Minister for National Development has said several times that HDB flats are affordable, the statistics from HDB are not comforting and this is cause for concern.

Latest Public Housing Data from the HDB shows that the HDB Resale Price Index rose by 8.2% for 2009. And the median Cash-Over-Valuation (COV) is $24,000 for the fourth quarter of 2009. For flats in the more mature estates, the COV is much higher.

Not everyone who wishes to buy a HDB flat is in a position to wait approximately three years for BTO flat. In today's fast-paced environment in Singapore, citizens want to have choices and also speed. Many residents have expressed that they need a completed flat because they are ready to start a family, or that they want to have the personal space to build their relationship with their spouse. Not everyone has the luxury where they can stay with their parents

Even for BTO flats, unless you are a first-time buyer entitled to the CPF Housing grant, these new flats are not that affordable. Hence, people like divorcees, who have sold off their matrimonial flat would struggle with the purchase price for a BTO flat. Likewise, for citizens who have lost their jobs and needed to downgrade. After selling off their first HDB flat and paying off their mortgage loan and other debts, they too may have difficulties paying for a three- or four-room BTO flat.

Sir, may I ask the Minister what else can HDB do to manage the rising prices of HDB flats and to keep such flats affordable?

For a start, may I suggest that HDB goes back to its objective which is to provide basic housing for the citizens of Singapore. May I ask the HDB to consider concentrating on building smaller flats like three- or four-room flats to cater to the group of lower-income citizens who simply need a basic home to live in. Provide a larger amount of housing subsidy to this group of citizens buying a smaller flat. If there is a need to build larger flats like five-room flats, HDB should consider increasing the minimum occupation period for these larger flats, from five years to maybe six or seven years. Buyers of such larger flats should buy them for their own long-term occupation. Price these new larger flats at a lower price because of the longer minimum occupation period. The reality is that the property market uses the selling price of new HDB flats as a base to set their prices.

whilst waiting for BTO flat because their parents' flat may simply be too small.

4.30 pm

Next, Sir, may I ask the HDB not to allow flats bought in the open market to be sold unless the flat owner has occupied the flat for a minimum of two

Finally, leave the construction of Design & Build flats like City View in Boon Keng or flats in prime locations like Pinnacle@Duxton to private developers. The private developers can then cater to the aspirations of the "better off" group of Singapore citizens who can afford the luxury of buying such flats in prime locations.

and a half or even three years. Revoke the policy which allows HDB flats to be sold within one year simply because they do not have any HDB loan for the flat or that they have not taken any housing grant from the Government. This is to deter speculation in HDB flats by the richer citizens.

Mr Chiam See Tong. We are on MND now. It is your turn to speak.

Sir, I would like to speak on my cut on Defence.

No. You cannot speak on Defence, Mr Chiam. We are under the National Development Head now and your name appears here. I am sorry. You cannot speak on Defence. Unless you speak on National Development, I would not allow you to speak.

Sir, I am not speaking.

Sir, I will be taking two cuts so will it be three minutes?

You only have one cut. Unless it is consecutive, you cannot take two cuts together.

My first cut is three minutes.

Mr Chairman, Sir, the HDB will build 12,000 new flats under the BTO

The Minister said the BTO programme will be intensified as per demand. Will the supply be able to meet the demand, given that Singapore's population is expected to increase by another one million to six million in another 10 years? Will the Minister be able to give us the total number of registered applicants, seeking to purchase flats from the HDB? The Minister has said the BTO system is the best way to address Singapore's housing needs. But in the face of pent-up demand for HDB flats on the ground, is it possible to re-implement the Build-to-Sell system? If there is no full U-turn, as indicated by Minister in his response to my Parliamentary Question in February, can there be a half U-turn? Will HDB immediately consider reducing the three-year waiting time under BTO to achieve better productivity for all, including young couples eagerly waiting to start a family?

Sir, the basic principle of affordable housing does not extend to fulfilling the aspirations of young families but the fact of the matter is that HDB can ill afford to ignore managing the growing expectations and aspirations of younger Singaporeans. This group will grow to form a significant cohort of HDB dwellers in land scarce Singapore. Granted housing options are limited in mature estates with all their basic amenities, we should continue building more affordable Dawsons, Pinnacle or Sri Geylangs in pockets of land in mature estates. There is quite a bit of land available in a mature estate like Boon Lay. HDB could consider building

Sir, high Cash-Over-Valuation (COV) is a dampener for many going the resale market route. The average COV in the first quarter of 2009 was $4,000. But in the fourth quarter 2009, it was $24,000, six times more than first quarter 2009. The COV is a cash hurdle for many young couples who are only eligible for 80% loan of the selling price. How does Minister intend to resolve the COV issue?

Sir, although PRs constitute a mere 5% of households, the fact of the matter is that this percentage can have a significant impact on the limited supply in the HDB resale market. Should HDB consider extending the debarment period for resale of flats by PR dwellers, so as to minimise speculative tendencies by PR HDB owners?

Sir, many private owners are buying resale flats. We cannot deny them their fundamental right to be a HDB flat owner. But there should be proper checks to ensure that they buy flats to stay and not to rent out so as not to deprive those who genuinely need to buy a resale HDB flat, in view of the limited supply.

programme this year. Most of these flats are going to be in non-mature estates and will be many times over-subscribed but about half will be withdrawn. Why is this so? How could HDB further tighten the huge drop-out rate? How long does it take for HDB to sell off all the remaining flats not taken up by the original applicants under the BTO programme? Are they to be sold at a higher price or lower than the original price? more Boon Lay Meadows. But please keep the prices within the reach of ordinary Singaporeans.

Your time is up, Mdm Ho.

Mr Chairman, Sir, the woes of families who are caught in financial quagmires due to housing issues has been widely publicised and discussed. While the HDB has helped home owners facing large arrears, such assistance often comes a little too late as these families have already landed in financial troubles. Some of these families face huge arrears because they bought flats that were beyond their means or experienced a

I would like to ask if HDB could consider implementing further measures to ensure that home owners taking bank loans are not given offers that are beyond their means. Also, what measures are in place to assist families who have sold their flats and are unable to buy another flat? How can HDB further inculcate financial prudence in home buyers and sellers?

change in their circumstances that led to their inability to manage their loans. Then, there are those who sold off their flats in order to settle some debts and end up not being able to afford buying another flat, renting from the market or are unable to make any alternative housing arrangements. For buyers taking up HDB concessionary loans, they have to obtain a Housing Loan Eligibility (HLE) to ensure that they can afford the flat they are buying. Buyers taking up bank loans are given a letter of offer by the banks.

(In Mandarin ):[For vernacular speech, please refer to Appendix A*] Currently, HDB allows buyers who did not take loans from HDB to sell their flats on the open market within a year of purchase, without any conditions. This might have provided opportunities for people who want to make a quick profit. This may have also contributed to the fast rising housing prices.