Hansard, 2010-03-11

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) Mdm Halimah Yacob 15 Mar 20 Mar Dr Lee Boon Yang 15 Mar 21 Mar Mr Inderjit Singh 16 Mar 17 Mar

ABDULLAH TARMUGI Speaker Parliament of Singapore

"to amend the Constitution of the Republic of Singapore (1999 Reprint)",

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

"amend the Parliamentary Elections Act (Chapter 218 of the 2007 Revised Edition)",

presented by the Minister for Law (Mr K Shanmugam); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.

"amend the Presidential Elections Act (Chapter 240A of the 2007 Revised Edition)",

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

Order read for consideration in Committee of Supply [6th Alloted Day].

Head I – Ministry of Community Development, Youth and Sports (cont.)

Resumption of Debate on Question [10th March, 2010],

"That the total sum to be allocated for Head I of the Estimates be reduced by $100. – [Mr Seah Kian Peng].

Question again proposed.

Challenges for Malay/Muslim community

Mr Chairman, Sir, thank you for the opportunity to speak on the MCYS cut on challenges for the Malay/Muslim community.

Sir, the Koran said that "God will not change the people's faith if the people themselves do not want to change." If I may, I would also like to quote Michelangelo who once said, "The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it."

In Singapore, Sir, we aim high. At times, we start small, but even when we start small, we think big. We know there are already Singaporeans who lament why we should always aim too high and wanting to be number one in this and that and that it would stress our people. The danger is that if we were to start aiming low, then we will sooner than later get ourselves stressed for having to try to keep up with others and, worse, losing out in this highly competitive world. Well, Singapore has set our sights high and will continue to aspire to scaling greater heights all the time, as we can see from the Budget too.

What about the Malay/Muslim community? For a community that has been lagging in many areas, are the challenges the same? Are the aspirations in sync with national goals? I would like to ask the Minister how he sees the challenges facing the Malay/Muslim community, especially in the context of raising productivity and achieving inclusive growth for all Singaporeans. Are Singapore Malays well-equipped to benefit from the national programmes planned?

No doubt, there has been credible progress made, but does it commensurate with the efforts put in both at the national level and through self-help programmes? What are the measures used to measure this progress or lack of progress? Is the progress/achievement gap between the Malay community and the others, particularly the Chinese majority, widening? Are there fears among the community that they could be marginalised as the knowledge/technology/income gap widens?

Allow me to elaborate, Sir. Having worked with the community for the last 50 years – from the day I prepared free Unicef milk for my poor schoolmates in Primary 3 to serving Yayasan Rakyat (People's Foundation) in the late 1960s aimed at running a cooperative and to run pre-school education, serving on the Prophet Muhammad Scholarship Fund Board (LBKM), working for more than 20 years with Berita Harian, and later as CEO of MENDAKI and President of MUIS, and now as MP – I can dare say that the Malay community can be proud of their efforts at self-help and self-upliftment. I do not think there is any other Malay or Muslim community in the world that can match that.

In fact, I remember attending a rural development course in the Philippines, together with some MPA (communist sympathisers), you will never guess we went there to learn to grow mushrooms. At that time, Singapore was importing $3 million worth of mushrooms for tourists and we thought that the Malays should be taught that skill to be self-reliant. I also attended the conferences with Yasser Arafat, Nur Misuari of the Southern Phlippines fame. Freedom fighters they were, but I learn that, in fact, freedom fighting is different from managing and developing your own people.

Sir, back home, we know that the Malay community's efforts at self-help did not start with MENDAKI. Whether through Zainal Abidin Ahmad, or Pendita Zaaba, a well-respected reformer, or Munshi Abdullah, Sir Stamford Raffles' special assistant and scribe, or the Malay media and Malay NGOs then, reform for the Malay mind and calls for self upliftment had been there since mid last century. But it was through MENDAKI that both the Government, Malay MPs and non-Government Malay/Muslim organisations were able to work together on a scale never seen before for this worthy cause.

Progress, however, was slow at first. As more resources were put to bear, the community managed a steady but credible progress. The community started from a low base in education and economic terms. Education, rightfully, was and is still the focus. I would like to ask the Minister's assessment of the community's progress in education and whether the community is, in fact, facing a plateau when it came to performances in certain areas like passes in Mathematics, Science and English. Is the Minister happy with the progress made by the community in terms of the spread of areas of studies/disciplines in the polytechnics and universities? What about the level of skills and expertise acquired? Does the Malay community feel that they are given ample opportunities to benefit from the growing economy especially in the new fields of technology, creative works and the service industry? Are those looking for jobs still troubled by employers asking for knowledge of working Mandarin?

While thinking about this cut, I asked my Facebook friends what they thought were the challenges facing the community. I was happy to note that a few of them said that it boils down to the mindset of the people. One Ismail Sa'ad used religion to remind that "God will not change the fate of a community if that community does not want to change it". A Mohammad Roslan said that the community need to be instilled with a healthy outlook to life, especially a spirit for lifelong learning. A Mdm Zaiton calls on the leaders to lead more forcefully, recognising that leaders do play an important role, especially in hand-holding the lower-income group, while yet another Facebook friend, a Bob Ahmad, who is knowledgeable about the history of the rise and fall of Muslims in Spanish Andalusia and also a keen observer about current Malay issues, cautioned that it is about time that the community learns to uplift on its own efforts. A Yeti Aziz, interestingly spoke of her teacher's advice. She said "kalau hati suka, badan mau, pokok duri pun boleh panjat ", or when the heart is willing, body wants to, one can even climb a tree full of thorns. This is my favourite area where, in fact, the Malay teachers used to instil a lot of sense of responsibility and wanting to give back to the community.

Sir, one area that has been receiving much attention lately is the dysfunctional families. It is a complex issue for sure. Minister Yaacob was also reported by the media as being very concerned about them. The murder of two young innocent children from broken homes must have evoked strong emotions in the community and in Singapore, and many are asking as to what is really happening in that group of Malays. Some feel as though this group of Malays have formed a sub-culture quite different from the growing number of Malays who are becoming more self-motivated towards upliftment and progress. It is as if the former group has given up or even wanting to compete in society, let along progress. I think the top half of the society has internalised the need to progress and to work hard to pull up, but how can the rest move along? How can the rest of the community help the members of the dysfunctional families out of this sense of dejection? Are there programmes either at the national level or through the ring of the Community Leaders' Forum (CLF) activities which are targeted to help them back mainstream?

One more area which I think will be critical towards achieving inclusive growth and development of Singapore in the context of our multi-racial and multi-religious society is how the community see the role of Islam in their life. Islamphobia is still a problem in many parts of the world, but I am glad that it is not here. This is because the Malay/Muslim Singaporeans generally take a middle of the path route and have moderate views about living in a secular and multi-religious environment.

Sir, what does the Minister see as key challenges facing madrasah education, which will provide the basic education of our future religious teachers? What are some of the enrichment programmes which MUIS will conduct to help religious leaders play their role effectively?

Sir, allow me to speak in Malay now.

(In Malay): [For vernacular speech, please refer to Appendix A*. ]Sir, the Malay/Muslim community in Singapore can be proud of its achievements. However, as Singapore enters a more competitive stage, questions will emerge as to whether our Malay community will be able to compete as well.

Although there are achievements shown by individuals who are excellent in many areas and levels, there are now questions as to whether the achievements in school will reach a plateau. Are there signs that such an outcome is beginning to appear, and what can be done to overcome it?

In my opinion, the measures and programmes to achieve progress are quite visible and numerous. The Community Leaders’ Forum network continues to develop. What else should be given attention to, especially in relation to dysfunctional families and divorce cases?

Apart from programmes to improve the performance and progress of the Malay community, what other programmes will be implemented to help the Malay community understand the challenges that are faced by a society living in the context of a multi-religious country?

Finally, what is important is that the success of the Malay/Muslim community depends on its own mindset. The spirit of standing on one's own feet and an identity that emphasises responsibility, honesty, trustworthiness and cooperation must be given importance.

*Cols. 4161-4162.

Keeping cohesiveness in Malay community

Mr Chairman, the Malay/Muslim community has made much progress over the years and, to the community's credit, on their own merit and self-help spirit.

The social problems that we are tackling are complex and there is no overnight solution. Many in the community have shared their concerns about these social problems, including dysfunctional families. The Minister has spoken about the possibility of the growing Malay/Muslim middle-class that may, over time, become detached from the community and its problems. It would be a pity if this trend happens. All our successes in the past had been derived from "gotong royong" spirit. No matter how much funding and resources the Government is prepared to allocate, the support of everyone in the community is vital.

I would therefore ask the Minister what are the strategies to engage the very successful, middle-class Malay professionals to help in this drive.

(In Malay ): [For vernacular speech, please refer to Appendix A *.] The Malay/Muslim community has undeniably achieved much success that we should be proud of, and what is encouraging is that this achievement was attained based on merit and the spirit of self-reliance. Many Malay/Muslim organisations are working to solve our community's social issues, but the question is what is the level of their capability, and how can we strengthen that capability and coordinate the duties so that it will become a concerted effort?

I also feel that this effort do not just lie with the Malay bodies and leadership as well as the national infrastructure and resources. Each individual, especially those who are successful including the middle income, must also pitch in and continue our gotong-royong spirit. The question is: how? What is our strategy to make use of every resource within our community so that we can together bring forward the community.

*Cols. 4163-4164

Mr Chairman, Sir, I would like to thank all Members who spoke and made some relevant suggestions.

12.15 pm

Sir, like fellow Singaporeans, the Malay/Muslim community continues to grow in confidence and show greater resilience in the face of challenges from within and beyond our shores. We are witnessing an emerging middle class with a wider range of professionals – from traditional areas such as medicine and engineering to new ones such as multimedia and the life sciences. The community produces a good crop of top students who do their schools and nation proud as we see from the number of Anugerah Mendaki recipients which has grown from a handful to a few hundreds. These developments show that our community is responding and adapting well to improve our academic performance and upgrade continuously, thereby seizing the opportunities created by the growing economy.

And it is to the upward-bound middle class that we look towards to set the tone and marshal the responses of our community to face the challenges of globalisation as raised by Mr Zainul Abidin. The able and bright must step forward to help the community respond to challenges and to be intimately involved in the community's relentless desire to give the best in whatever that we do. With a strong Government looking ahead and setting the direction, and with community organisations working hand-in-hand with national agencies to reach out and ensure everyone is on board, we can move closer towards achieving our vision of a Community of Excellence.

Excellence, Sir, involves consistent effort. So we need to constantly improve our education, increase our knowledge and upgrade our skills. When more of our students increase their competency in subjects like English, Mathematics and Science, and when our workers constantly upgrade their know-how and skills, and when our professionals gear themselves up for an ever changing economic landscape, the community will be in a stronger position not just to face up to adversities but also to overcome them.

Self-help group MENDAKI and our many Malay/Muslim organisations including the Association of Muslim Professionals (AMP) have put in tremendous energy and resources towards ensuring the community's progress. This, Sir, is a long-haul effort for which there can be no let up. We must ensure that the good work of senior community leaders is continued so that the next generation can also stand tall with fellow Singaporeans and contribute significantly to Singapore's continued well-being and growth.

Like fellow communities in Singapore and in cities elsewhere, we will also feel the impact of the income divide. Mr Zaqy Mohamad has raised a similar concern of keeping the cohesiveness in our community, especially with respect to engaging the middle class and our professionals. The concern of whether an emerging middle class might disassociate itself over time from the larger base is a valid concern observed by minority communities elsewhere. We must avoid this trap. The rising middle class must draw upon our traditions of community cohesiveness and the spirit of unity and reach out to infuse a more progressive outlook in our community.

By all accounts, Sir, our able and bright have responded well to this call. Over the last few months after this subject was raised, several of my parliamentary colleagues and I received unsolicited responses from many professionals wanting to do something for our community. The strong feedback from the young and upwardly mobile in our community shows that our efforts to engage them are bearing fruit.

Sir, the Community Leaders' Forum (CLF) is currently engaging young professionals under a Consultative-Participatory Forward Planning Exercise to have them study the issues, learn from the experiences of older leaders, take ownership of the challenges and present their recommendations at CLF 2010. With this experience, continuous involvement and dedication, over time, our young will be ready to assume leadership positions. Ninety-three young Malay/Muslim professionals from diverse backgrounds are actively engaged in this exercise, including several members from various Malay/Muslim organisations (MMOs), such as 4PM and Young AMP.

Sir, while we are proud of our achievements, we remain keenly aware of the challenges facing our community. Indeed, the issue of low-income families trapped in multiple problems received a disproportionate amount of public airing late last year. However, Sir, this is not a new issue and we are certainly not wringing our hands in despair. Community leaders are aware of this, understand the complexities, and together we launched the Action Plan to Strengthen the Malay/Muslim Families in 2007. This plan is a comprehensive strategy that leverages on both national and community resources to help such families move towards normal functioning.

MENDAKI is implementing this plan together with several CLF partners. And let me assure Dr Ahmad Mohd Magad, Dr Mohamad Maliki, Assoc. Prof. Dr Mohammad Faishal and Dr Fatimah Lateef that our focus has not wavered from strengthening Malay/Muslim families, especially during the economic downturn.

The issues of such low-income families are complex and varied. This is why our key institutions in the community work closely with one another and collaborate with Government agencies as well as MMOs and VWOs as part of a whole-of-community approach. The CLF has been critical in mobilising this effort. Mendaki, as secretariat for CLF, provides strong foundation support for our CLF partners to serve the many needs of our families, enabling us to offer comprehensive and integrated programmes.

For example, the CLF formed a working committee comprising practitioners and experts from MMOs to develop a core parenting skills manual and to deliver a core parenting skills workshop. The CLF also launched the Strengthening Families Series (SFS) in November last year as part of the Core Parenting Skills Programme aimed at enhancing family resilience. These modules help families to strengthen communication and bond among members and help establish a sense of ambition and aspiration for the family.

In our efforts to assist such families, we also recognise the need to pay special attention to vulnerable groups like those who married as minors and also reconstituted families. Both Dr Fatimah Lateef and Assoc. Prof. Dr Mohammad Faishal had asked for an update and our efforts for these families.

Sir, on 17th November 2008, the House had passed the amendment to the Administration of Muslim Law Act (AMLA) to raise the legal age of marriage for Muslim couples from 16 to 18 years of age. From 1st March 2009, anyone who is below 18 and wants to get married is required to obtain a Special Marriage Licence (SML). Applicants are referred by the Registry of Muslim Marriages (ROMM) to our INSPIRASI hubs for premarital counselling and assessment of the couple's preparedness for marriage. Twenty-four out of 32 applications for these licenses were approved last year after review involving both the couple and their parents.

Run by PPIS-Jurong Family Service Centre and the Association of Muslim Professionals (AMP), the INSPIRASI hubs are dedicated to provide intensive support to marriages involving minor couples. In 2009, a total of 323 minor couples attended premarital counselling. And of these, 138 (43%) couples changed their minds about marrying. Even if they proceed with marriage, these couples will be supported in their first five years of married life under Club INSPIRASI, a structured programme for minor couples that provides mentoring support, development activities, and other skills that will help in a successful marriage.

Sir, Dr Ahmad Mohd Magad had asked about the Muslim Marriage Preparatory Course (MPC). This Course had undergone a major review and revamp in 2008. Now known as "Bersama Mu" or "With You", it places greater emphasis on topics such as couple communication and financial management. Feedback from couples, operators and the community has been positive. As an extension to "Bersama Mu", customised marriage enrichment programmes focusing on enhancing relationships within the family will be rolled out in the first quarter of 2010.

Sir, with these upstream efforts, we have made good progress. There has been a steady decline in the number of Muslim minor marriages. The number of solemnisations involving minors dropped by 18% from 360 in 2008 to 295 in 2009. This was a drop of 45% since 2005. Divorces involving persons who had been minors at the point of marriage have also fallen by 4% from 452 in 2008 to 433 in 2009. Minor divorces have fallen by 32% when compared to the highest record in 2003 when there were 633 minor divorces. Hence, Sir, at the macro level, the leading indicators of potential dysfunctionalities such as divorce rates and minor marriages are all coming down steadily. As a community we must be proud of this achievement.

Sir, the Syariah Court also goes beyond its role towards a holistic approach of strengthening families. The Marriage Counselling Programme provided by the Court has helped to prevent the breakup of an average 871 marriages per year, which is about 52% of total Syariah Court cases every year.

Children are most hurt when parents divorce. And taking note of this, the Syariah Court has partnered with As-Salaam Family Support Centre to implement a customised programme for children whose parents are undergoing divorce. The programme helps children manage their anxiety. And children who are in need of further intervention are referred to relevant agencies for further support.

In collaboration with the Family Development Network of the CLF and As-Salaam PPIS Family Support Centre, and with the strong support from MCYS, the interim centre of Vista Sakinah was set up last year to provide support to reconstituted families. The actual premises for the centre, targeted for completion in the third quarter of 2010, will offer counselling and family enrichment programmes and it aims to reach out to at least 450 step-families by end of 2011. We are focusing on step-families because our data shows that there is also problems within step-families. MCYS is also in the process of setting up a database as part of efforts to track data on reconstituted families on a longitudinal basis and this is expected to be completed by May 2010.

Sir, the community would be please to know that PPIS will be running a new Family Service Centre (FSC) in the Bedok-Chai Chee area to reach out and provide help to the families there. This new FSC is expected to commence operations in the second quarter of 2010 and is a welcome addition to our overall support system for our families. As noted by Minister Vivian Balakrishnan, a key initiative being piloted in FSCs is the Intensive Case Management framework which aims to provide a structured, intensive and family-centric approach to help dysfunctional families. These families will receive intensive casework support from dedicated social workers. PPIS-Jurong FSC is currently one of six FSCs involved in this pilot project. This Intensive Case Management framework will be evaluated after two years.

Sir, new voluntary groups have also emerged to assist the vulnerable in our community. A case in point is Casa Raudha Women's Home, a newly set up voluntary welfare organisation with plans to run a crisis shelter for women with young children. Dr Ahmad Mohd Magad would be pleased to know that MCYS, is assisting Casa Raudha to establish the shelter. A site in the western part of Singapore has been identified which will co-locate Casa Raudha with the Gift of Love Home. The shelter is expected to commence operations in December 2010.

Sir, the term "Casa Raudha" also reflects the deep desire to project what was once a period of harmonious co-existence between Christians, Jews and Muslims about 13 centuries ago at the Iberian Peninsula. "Casa" is a Spanish word for home and "Raudha" refers to the heavens in Arabic. This fusion, Sir, reflects a tradition within Islam of accommodating local cultures into its mores and norms. It is the same desire which the late Sheik Tantawi of Al-Azhar carried with him all his life. He was principled in Islam and a keen advocate of the dialogue between civilisations. He encouraged peaceful and vibrant co-existence of the various faith communities. At the time when religion is being distorted by some quarters to justify and fan violence, it is, to the spirit of the Prophet, the tradition of peaceful Spain and the actions of contemporary scholars such as Tantawi that Muslims continue to look to as our guide on the journey to peaceful co-existence.

Sir, Dr Ahmad Mohd Magad also raised the idea of a campaign to showcase positive profiles of families who were able to overcome their dysfunctional factors. This is, indeed, a good suggestion. In fact, various Ministries and Government agencies have also positively profiled people and families who have become self-reliant in their public messaging efforts. An example, of course, is the Yellow Ribbon Project by MHA.

Sir, the economic downturn last year tested the community's resilience and our ability to come together to help one another. Like the rest of Singapore society, the Malay/Muslim community has responded well to this crisis. However, Sir, some vulnerable families were adversely affected by the recession and they needed extra help.

Mdm Halimah Yacob asked about our efforts to help families affected by the economic downturn. Sir, I am glad to say that there was an increase of $1.3 million in the Zakat collection in 2009 to $21.3 million. Out of this, a total of $5.7 million went towards helping the poor and the needy. This is an increase of $1.1 million compared to 2008. This means, Sir, that the community has continued to give and help those in need even during difficult times. One hundred and seventy-two out of 210 families under MUIS' Zakat Empowerment Partnership Scheme (EPS) were empowered and no longer need assistance.

Sir, we have also helped our workers to become re-employed. MENDAKI's Job Ready and Job Steady programme reached out to many retrenched workers, including professionals, managers, executives and technicians (PMETs), to enhance their chances of securing employment or to remain employable. Over 10,000 workers received re-training and 5,000 workers were assisted in re-employment. A new centre was also set up by MENDAKI SENSE in Woodlands in July 2009 to provide training to those affected by retrenchment.

12.30 pm

Sir, the education of our children must remain our top priority. Therefore, we focused on providing continued education assistance. Over the past year, MENDAKI's Education Trust Fund (ETF) has disbursed $800,000 to 3,780 pre-school, primary and secondary students. This is an increase of $220,000 over the previous year. The disbursement of these funds is pegged to the families' attendance at Programme "Bijak Belanja", which empowers families to be more financially savvy.

MENDAKI has also provided fee waivers and tuition subsidies amounting to $380,000 to more than 2,000 students. Sir, we intend to continue to expand the scope of the ETF and our education programmes. This year, Sir, the ETF aims to assist at least 1,200 ITE students. In addition to financial aid, a pilot-run programme will identify 60 students to be provided with academic coaching and peer guidance under the "Academic and Lifeskills Coaching Programme". MENDAKI will also continue to expand the reach and scope of its educational programmes including the Tiga M programme and the "Success in PSLE Mathematics" workshop. Sir, let me now turn to our religious institutions – both our mosques and madrasahs. The challenge is for our religious education to remain up-to-date and relevant to the needs of the community within a changing global landscape. Both Mr Zainudin Nordin and Dr Ahmad Mohd Magad asked about our plans to further develop our Asatizah or our religious people and improve the Madrasah system. MUIS has invested $2.5 million over the last two years to provide fully-sponsored training for all Madrasah teachers and staff including those not in the Joint Madrasah System (JMS). As a result, 75% of 248 Madrasah teachers have obtained teaching qualifications through MUIS funding. Another group of 30 teachers is expected to begin their training this year. All Madrasah teachers are expected to obtain teaching qualifications by 2011.

While five out of the six full-time Madrasahs successfully met the PSLE Benchmark last year, there is potential for improvement. MUIS has already begun preparations for this year's PSLE. For example, Madrasah Irsyad has special programmes to identify and address the students' weak areas. These programmes include remedial and enrichment classes with a Teacher Mentor after school hours and, of course, during the school term break. Parents are also involved in target-setting sessions with their children at the beginning of the year and at the mid-year reviews. In addition to motivational workshops, all Primary 6 students also attend coaching sessions by undergraduate mentors. While MUIS is building capabilities of the Joint Madrasah System (JMS) that now includes Madrasah Irsyad, Madrasah Aljunied, and Madrasah Al-Arabiah, MUIS remains committed to developing and assisting all six full-time madrasahs. MUIS disbursed $500,000 to all madrasahs as part of a special grant to assist them in PSLE preparations. The three madrasahs which are not in JMS also received a total of $400,000 in the form of student capitation grants and $800,000 for teacher allowances from 2007 to 2009. So, Sir, MUIS will continue to give financial assistance and support for teacher development and enrichment programmes for our students to the three madrasahs and continue to welcome them to be a part of the JMS. Madrasahs in the JMS benefit from a consolidated and efficient management structure. Students in the JMS also benefit from a consolidated and streamlined curriculum that is able to offer multiple academic options – namely the religious (ukhrawi ), the hybrid and academic tracks. However, Sir, we should bear in mind that our madrasahs are private schools that the community funds to provide for religious scholars and teachers – a need which the secular state cannot fulfil. So, across our madrasahs, students who are heading towards specialised religious qualifications should be our primary focus, and they should receive a greater subsidy so as to better utilise the limited community funds. Dr Ahmad Mohd Magad asked how JMS madrasahs are planning to engage and serve our community. The priority for the JMS madrasahs is to focus on the education of their students. And some of these students will be future religious leaders who can contribute to our community. Nevertheless, as part of the JMS programme, our students will be encouraged to carry out community involvement, including taking part in charity projects and volunteering as facilitators at youth camps organised by Malay/Muslim organisations. Sir, we will similarly encourage the other non-JMS madrasahs to do likewise. Mr Zainuddin Nordin asked about our plans to develop our Asatizah and ensure our religious education programmes remain relevant to the community. Besides developing our madrasahs, MUIS has committed up to $400,000 towards the development and the training of our religious leaders. MUIS has established the Asatizah Executive Development Programme (AEDP) to help Asatizahs on the Asatizah Recognition Scheme (ARS) develop the skills to perform their roles effectively. Three hundred and thirty Asatizahs have completed the Executive Development programme. In addition, we are heartened by the Asatizahs that have shown continual efforts to upgrade themselves. Thirteen of them are currently pursuing their Master's degree and six of them are pursuing their PhD and Master's programmes. In 2010, MUIS will also launch the Asatizah Immersion Programme where young religious graduates and mosque religious officers will undergo a six-month attachment at MUIS to broaden their perspective and build up their competencies in research. This is important as our religious leaders should be exposed to multiple disciplines and perspectives. MUIS has adapted and introduced innovative religious education programmes to reach out to different segments of the community. For example, our part-time religious education programme has moved away from past didactic methods towards more contemporary methods of learning. Re-aligned as age-specific, learner-centered packages known as Kids aLIVE, Tweens aLIVE, Teens aLIVE and Youth aLIVE, the classes help students apply Islam to their daily lives, including coping with school life, relationship with siblings and parents and even boy-girl relationships. The aLIVE curriculum is also being reviewed to incorporate the best features of modern pedagogy. These changes help to ensure that our religious education programmes remain relevant and contextualised to our community. We want our programmes to be engaging, and to be the preferred source of information on Islam. A well-educated community grounded in our identity, traditions and aspirations as Singaporean Muslims will also help us remain resilient against external negative influences. Mr Hawazi Daipi requested an update on the Mosque Building and Mendaki Fund programme as well as the future of our mosque development. Indeed, the development and upgrading of our mosques is a key focus for the strengthening of our religious infrastructure. I am glad to report that the Al-Mawaddah mosque in Sengkang has been completed in the second quarter of 2009. We have also begun to incorporate environmentally-friendly, energy-conserving features in our mosques. But with the Al-Mawaddah mosque, we were able to attain the BCA's Greenmark Certification. And MUIS intends to improve on this record with future mosques. We amended the Administration of Muslim Law Act (AMLA) in 2008 to allow us to expand the use of funds under the Mosque Building and Mendaki Fund (MBMF) for madrasah education and mosque upgrading. The amount collected after the amendments took effect last year was $14.8 million. This was about $ 2 million higher than our projection. Sir, this speaks well of the spirit of sharing and giving in our community, even in the midst of an economic downturn. Our workers did not think twice about giving to MBMF. I thank them for their generosity and support of this key institution which is a source of pride for the Singapore Muslim Community. During the second reading of AMLA amendments in 2008, I informed the House that MUIS will work on a plan to upgrade older mosques. Mosques were selected for upgrading based on the urgency of repairs and the need for more prayer space. Given the limited funds available annually, MUIS has carefully prioritised the use of MBMF to co-fund five projects under the Mosque Upgrading Programme (MUP) over the five years. Following Muhajirin, the other mosques in the time frame are An-Nur, Al-Ansar, Hajjah Rahimahbi and Alkaff Upper Serangoon mosque. The selection was determined after a full building audit for all Phase 1 and 2 MBF mosques and non-MBF mosques that have not been upgraded since 1990.

Under the Mosque Upgrading Programme, selected projects may be granted funding of up to 80% of the costs of upgrading. MUIS will take into account the mosque's available funds, the ability of the mosque and the community to raise the balance of the costs and the scale of redevelopment works when deciding on the quantum of funding for these projects. Mr Hawazi Daipi and Dr Mohamad Maliki had also raised the issue of overcrowded mosques. As part of the continuing efforts to better manage the available mosque space, MUIS has clustered the 69 existing mosques into zonal clusters, and will be encouraging congregants of mosques that are more crowded to visit other mosques located nearby. Under the Mosque Upgrading Programme (MUP), MUIS has also identified both MBMF and non-MBMF mosques island-wide that will be progressively upgraded to increase capacity.

Sir, MCYS, together with MND, URA and MUIS, have studied this issue carefully. Based on our assessment, there is particularly high demand for prayer space in Jurong West and Woodlands because they are large towns with a significant Muslim population. In addition, the mosques in these areas also serve Muslim workers from the nearby industrial estates at Tuas and Woodlands as well as students from the nearby tertiary institutions such as Nanyang Technological University and Republic Polytechnic, during Friday prayers. Unfortunately, there are no other mosques nearby which are able to cope with the spill-over demand. Even after upgrading the existing mosques to increase capacity, there will be a shortage of space. Therefore, I am pleased to announce that the Government has decided to reserve land for MUIS to build two additional mosques in Woodlands and Jurong West. Sir, when the two new mosques are ready, residents in the two estates can expect greater synergy between the existing and new mosques as well as more integrated infrastructure and programmes. Sir, allow me now address the House in Malay. (In Malay): [For vernacular speech, please refer to Appendix A*.] Mr Chairman, last year, I touched on the various challenges faced by the Malay/Muslim community to navigate the economic downturn. I have emphasised the importance for our workers to work hard to gain new skills or qualifications, and ensure that our children continue schooling to gain knowledge even though their parents may face financial problems.

In short, the effort to upgrade skills, qualifications and educational levels is the only way to attain a higher level of achievement and, subsequently, to enjoy a better standard of living. We must continue improving ourselves, whether the economy is growing or in a downturn.

Recently, the Government announced some plans to sustain our country's competitiveness and spur the economy to a higher level. One of the strategies identified is the effort to improve workers’ productivity. Malay/Muslim workers, including professionals, cannot avoid taking part in this effort to ensure that their skills and qualifications stay relevant to the country's economic needs.

The major community institutions like the Islamic Religious Council of Singapore (MUIS), MENDAKI, Registry of Muslim Marriages (ROMM) and the Syariah Court will continue to implement many programmes to overcome the various challenges that we face, and to improve our achievement – especially in areas like education, social and economy. I am confident that through the cooperation of each member and leader of the Malay/Muslim community, our future generations can attain a higher level of achievement.

Mr Chairman, apart from achievements in areas like education, the Malay/Muslim community is also concerned about their spiritual or religious needs. MUIS, on its part, will continue to monitor the developments and needs of the local Muslim community and strive to ensure that all the needs of the Malay/Muslim community will be fulfilled as best as possible.

The mosque is one of the major institutions of the local Malay/Muslim community. The Mosque Building Programme that was implemented ensures that each housing estate has a mosque. The latest mosque built last year was the Al-Mawaddah Mosque in Sengkang. Another new mosque will also be built in Punggol by 2013.

Mr Chairman, MUIS will also implement a programme to repair and upgrade mosques that are getting dilapidated. This move is expected to meet the long-term needs for a place of worship on certain estates or areas. However, a study indicates that upgrading programmes solely are not sufficient to meet the needs for mosques in two housing estates – Woodlands and Jurong West.

Hence, two new mosques will be built in Woodlands and Jurong West to meet the needs of Muslim residents in both estates. MUIS will announce the details later. When ready, residents can expect integration and synergy from these two new mosques that are located in the same estate. I am confident that this plan will help reduce the congestion that is faced by mosques in Woodlands and Jurong West, especially on Fridays and public holidays.

Mr Chairman, the Malay/Muslim community can be proud of its progressive attitude. We often look for ways to improve our achievements and do not hesitate to manage any issues or challenges. This attitude has helped us to improve our educational standards and overcome the social issues that we faced. Our journey towards a vision of a Community of Excellence may still be far. However, we can be satisfied that we are on the right track or the right path. The Malay/Muslim community can continue its journey towards that vision with full confidence.

*Cols. 4165-4168

12.45 pm

Sir, in conclusion, I would like to thank the MPs for their questions and suggestions. The community continues to progress in many areas – be it in education, skills or the quality of life. We benefit from the Singapore system and complement it with community self-help. However, there are pressing issues that affect the poor and the needy in our community. These issues will require continued focus and it will take time to achieve results. At the same time, our professional class must also lead in preparing for an ever changing economic landscape. The Community Leaders' Forum has given shape and substance to our collective efforts to deal with our issues. And if we can keep our growing middle class engaged and willing to lead the rest, we are assured of a strong community, and the community will continue to rise towards our vision of a Community of Excellence.

We have about 15 minutes for interventions. Dr Maliki.

Sir, on behalf of my residents, I want to thank the Minister for the good news that the Government has decided to set aside land to build two new mosques, particularly one in Woodlands. We have been asking for a mosque for many years, and I am very glad that, finally, one will soon be built there. Thank you, Minister.

With regard to the issue of dysfunctional families, the Minister has given us an update on the work done. I think what we have done so far is that we are targeting at the dysfunctional families themselves, and working with divorced families and young couples. I also suggested in my earlier cut that we can move forward and look at other change agents. I think one change agent that we should look forward to work together is really the community, and setting the right frame of mind for them to be able to send the right message to these families and the extended networks. I wonder if the Minister can comment on how we can actually work with the media, for example, because the Malay community and the media are together. The Malay community listen to the media very closely, especially the radio and TV media. How can the media be further enhanced to play a greater role with the community, to encourage the community to play a catalytic role to change mindsets that we have been talking so much about?

Sir, I thank Dr Maliki for the question. I agree with him that, as a collective effort, we should try all possible avenues and all platforms to reach out to the community. He suggests that we work with the media and the community, a valid point and, in fact, is being done. As an example, Mendaki has just launched a programme. In Malay, it is called Mesra Matematiks or Mathematics Friendly. It is done through radio. It is done through the print media. And it is done in a very simple manner to relate to the Malay-Muslim community that Mathematics is everywhere in our life – when we go marketing, when we go and bargain for shoes or whatever the case may be. Therefore, it is something which we can instil in our young children not to be afraid of the subject.

Sir, I agree with the Member that we need to work a lot more with the media. At this point in time, both MUIS and Mendaki are engaging the media on various fronts. In terms of MUIS, for example, we regularly update the media on some of our programmes and how the media can help us to disseminate some of this information. It is being rolled out progressively. The impact will take some time, but I agree with him that the media, especially the radio, is very close to the Malay ground, especially the wives and the mothers who are at home in the afternoon and, therefore, it is an ideal platform for us to reach out to them.

Sir, like Dr Maliki, I also want to echo appreciation to the Minister for the announcement that a new mosque will be built in Jurong West. A lot of the residents in Jurong West have been asking for a mosque for many years.

On the issue of community self-help, I notice that if we look at the plans that the Ministry has laid out, it looks like the job scope of MENDAKI and the CLF has widened to employment, dysfunctional families and even trying to help in the traditional area of education. Is the Government relying too much on CLF and Mendaki, in the sense that I know the capacity at that level will be quite challenging, not just resources but in terms of social networks and the resources that we have – social workers and the like? I think that is also a challenging area. Does the Minister see a change in the role of the self-help groups moving forward? Secondly, are we over-relying too much on MENDAKI and CLF to transform and move the community forward?

Sir, I agree with Mr Zaqy that in terms of what MENDAKI was set up to do has expanded beyond its initial raison d'etre, which is education. I think this is inevitable because, as we begin to look at the issues of education, it is intertwined with social and other related issues. So we cannot help it that we have to go into this area. I would like to assure the Member and other Members in the House that even though we seem to be expanding, the key philosophy that we adopt in MENDAKI – and I am sure this is adopted by all the other self-help groups – is to tap on national resources first. Dr Vivian Balakrishnan has announced that the IMC is rolling out six more additional FSCs. The next FSC is actually run by a Malay-Muslim organisation, and this is a good sign that there are resources at the national level that we can tap, and we should tap them first before we tap community resources.

In all of the programmes that we do in MENDAKI, we assess what is available out there, either by NCSS or the various VWOs, before we tap on our own resources. I would like to assure the Member that we have the funds. I think what is lacking in the community – if I can be very candid – is actually expertise, and that is where we need to look beyond the community where we engage non-Muslim professors in the universities and even non-Muslim social workers to help us in some of these problems. I think we cannot be insular. I think we must be inclusive as much as possible, and our non-Malay friends are more than happy to assist us.

I have received a lot of emails when I talked about the middle class last year, not only from Malay-Muslim professionals but also from non-Malay-Muslim professionals who have voiced their concerns of wanting to help the community. I think it shows a very strong Singaporean spirit to see that if part of the Singaporean family is affected, we too have a responsibility to help them. So I would like to assure the Member that we keep an eye on our costs very closely. As Members know, MENDAKI is very trim and lean, and they are overworked, unfortunately. I cannot pay them as much as possible, but they are dedicated to the cause. But the most important thing is that, over the years, we have been able to build a network of volunteers, both Muslims and non-Muslims, who are helping us out. And that is something which we will continue to grow, while we continue to examine what are the available resources at the national level.

Dr Neo, make it brief, please.

Sir, the Finance Minister said in his Budget Statement that global competition will continue to threaten jobs and press down the wages of the lower-skilled workers in the coming years. Therefore, I am discouraged and concerned that MCYS has ignored my plea to give more assistance to the 20% of the bottom low-income families. May I ask Minister Vivian Balakrishnan whether it is correct to say that many low-income families tread very thinly between requiring better paying jobs and financial assistance due to their many social problems to get out of their misery? Therefore, should such families not be given stronger assistance, especially the children, to get them out of the poverty trap and to ensure that they do not get left further behind in our society?

Mr Chairman, I do not think there is time to give a comprehensive answer except to refer the Member to the entire second half of the speech delivered by the Minister for Finance where he outlined the entire Government's efforts to provide resources, training, opportunities and uplift for the lower income in Singapore.

For dysfunctional families and for children, we spent many hours yesterday explaining what we are doing and I do not think there is time for me to do that now. If the Member wants, she can submit a parliamentary question and we will tabulate everything again. But rest assured that, overall, this House and this Government is fully committed to making sure that every Singaporean will be able to cope, will be able to compete and will be able to stand on their own two feet. Whilst there is a lot more that we can do to make sure that our implementation of these plans and the way we utilise resources can be improved, let there be no doubt about our commitment to help.

Mdm Halimah, a brief clarification please as we only have a few minutes left.

Sir, I am deeply appreciative of that. I just want to say to the Minister for Muslim Affairs that this case-management approach is absolutely critical, because of the intractable problems that this small minority of families face. But I am just wondering whether one additional Malay FSC is sufficient. Second, we do not have enough Malay social workers to be able to take care of their needs. What plans does the Minister have in order to address these issues?

I also want to ask the Minister what can we do to raise the profile of the Malay women. I think there is a lot that the Malay women who are better educated can do to contribute to society. What are his views on that?

Sir, Mdm Halimah knows that I am pro-women. So I will be more than happy to work with her to promote all the successful Malay women that we have in Singapore. I agree with her that case management is important. First of all, we must bear in mind that the additional FSC that is coming on stream run by PPIS is a national FSC. It is not just meant for the Malay-Muslim community. But because it is operated by a Malay organisation, invariably, it will attract more Malay clients. So that is a wonderful relief for us. But funding by MCYS is basically towards national programmes. Notwithstanding that, the most important thing for our community is to work with the existing 36 FSCs out there run by various bodies - religious or otherwise – and we have been working closely with them. In fact, Dr Maliki and Assoc. Prof. Dr Faishal chair this committee where they have been reaching out to the 36 FSCs. And we ran programmes last year to educate the social workers about Malay culture and the Muslim religion, so that Malay clients feel comfortable approaching the FSC. In fact, the numbers have been increasing. The Malay clients have been to the centres run by Thye Hua Kwan Moral Society, the Trans Centre in Bedok. We must continue to make use of national resources.

The Member's point about social workers is a valid one. In fact, MUIS, together with MCYS, is looking into how we can help some of our Malay-Muslim professionals, be it Asatizahs or otherwise, who may want to convert to social work, we will assist them, because there are programmes available. But, ultimately, it is up to the individual whether he or she wants to be a social worker. As Dr Maliki can tell you, it is a difficult job, and I agree with the Member that we need more but, again, I cannot enforce this. We can guide, we can make it easily available. In fact, at one time, we even had scholarships in MENDAKI for social work but nobody took it up. So there have been efforts in the past. And I hope that with the Member's call and the call by other MPs, more will come forward to serve this cause.

Sir, on behalf of the GPC, I want to thank the two Ministers, Dr Vivian Balakrishnan and Assoc. Prof. Dr Yaacob Ibrahim, the Minister of State, Mrs Yu-Foo Yee Shoon and the Senior Parliamentary Secretary, Mr Teo Ser Luck for their comprehensive answers and clarifications to the cuts made by various Members. The Ministry under their care covers a very wide and diverse scope, and their work reflects the heart and soul of our society. I would also like to take this opportunity to acknowledge the good and hard work put in by all the staff in the Ministy and also those in the social sector. Finally, I know I speak for all in the House as we wish the Ministry every success in the hosting of the inaugural Youth Olympic Games this August.

On that note, I would like to seek permission to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $1,825,144,700 for Head I ordered to stand part of the Main Estimates.

The sum of $141,813,400 for Head I ordered to stand part of the Development Estimates.

Household Interview Travel Survey 2008 and Land Transport Masterplan

Sir, I beg to move,

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

Sir, I started taking public buses to school instead of a school bus in 1977 when I was in Primary 3. My primary school, Sembawang School, is non-existent now, and it was about three kilometres away from the Nee Soon village where I stayed. The SBS buses plying between Nee Soon village and my school were 160, 161 , 164, 167 and 169. There were also the more erratic but much cheaper private buses numbers 19 and 20. They were like our premium buses today but their fares were much cheaper, almost by half. SBS charged 25 cents and the private buses charged 10 cents for students. I used to wait up to one hour for the private buses to save money.

1.00 pm

I remember the buses were very crowded during the peak hours and, frequently, I had to perch precariously at the boarding stairway. There were no air-conditioned buses then.

However, I did not mind the heat. I actually enjoyed the breeze coming from the open windows. It was on rainy days in very crowded buses that I cannot stand the humidity as well as the very stale air. There were no MRT and LRT then.

Although the public transport those days was a far cry from today, they seemed to be able to cater to most of our transport needs and the majority did not own a car. One possible reason was that most of our activities were nearby and there was less need to commute far. Instead of going to the library to borrow books, the library van came to the Nee Soon community centre once a week. If a household interview travel survey were to be conducted then, I am sure the results would be very different from what we had in 2008. I can postulate that at least 80% travelled by public transport then and many may even cycled to work.

The recent Household Interview Travel Survey (HITS) done in 2008 really hit MOT very hard, in a sense that it raised many questions when the headlines of media reports read a further drop in the public transport mode share from 63% in 1997 to 58% in 2004 and 56% in 2008. It seems that MOT is losing in its quest to achieve the target of 70% public transport mode use. Many questioned the drop and few comprehended the figures. When I was invited to Blog TV a few months ago to discuss this issue, the title of the show was "Why Aren't You Going Public?" The host started the show by commenting that the public is abandoning public transport and more are turning to private transport. I asked the host if more people are abandoning public transport, why are there so many complaints about crowded buses and MRT?

The real issue is, there is a huge jump in travel demand by individuals and our public transport system seems to be limited in capacity during the peak hours. I am not sure. Probably, it is due to our huge increase in population recently. There is an overall 24% increase in both public and private transport trips. However, private transport trips went up more than public transport trips. The callers to the show cited crowded buses and erratic frequency as the main reasons for abandoning public transport. I wondered if MOT were to achieve the target of 70% public transport mode share in the next few years, can the current public transport system take the additional 16% increase to 70%? That is an absolute 30% increase from the 2008 figures. I cannot imagine what the 30% increase in ridership do to our already crowded buses and MRT today. I hope the Minister can enlighten the House on the results of HITS 2008 and explain how MOT is using the results to further improve our land transport mode, especially public transport. When will be the next HITS?

Singaporeans understand and agree with the recommendations outlined in the Land Transport Masterplan (LTMP) released in early 2008. We look forward to a public transport system that can cater to most of our needs. We also agree that the most efficient mode of transport will be MRT. It is the least pollutive as well as the most cost-effective. But our building speed is slow. We have to wait until 2020 before our rail networks double. Between now and 2020 is a decade. What can we do to alleviate the already congested roads and crowded public transport in the interim? Many who are frustrated with crowded buses and MRT turned to owning a car, only to be further frustrated by congested roads and higher ERP charges.

As the nation progresses, so do the aspirations of Singaporeans. Over the years, we have seen a rise in car ownership. It is not uncommon to see a family owning two or more cars. Drivers are complaining about the congested roads, although our traffic is still better than many of the major cities in the world. Many wondered what went wrong since we have two powerful levers to manipulate our vehicular traffic, ie, COE as well as ERP.

When the COE system was introduced, we rejoiced that vehicular growth will be capped and our roads will be free from congestions. But our joy was short-lived as we saw COE prices escalated to above $100,000. A Toyota Camry cost near to $200,000 and a Corolla cost $160,000 in 1996 when I first bought my first car. Cars became a symbol of the divide between the rich and the masses. Many complained that owning a car is beyond the reach of the middle and some upper middle-class families.

In response, the Government shifted the control from vehicular population to its usage. ERP was born. More cars were introduced then. However, ERP charges and gantries started to increase. We started a vicious cycle. Like many drivers on the road, I am wondering when will be the next round of ERP increases and when will a new gantry be erected near my house or my working place. The car population has increased from just over half a million in 1990 to the 900,000 in 2008. The jump has been particularly steep in the last five years.

There was a 6% growth per annum, if you compute correctly. Why was there a sudden surge in car population? Should the COE system not moderate the growth to only 3% as promised earlier on? I am glad MOT has earlier announced that the vehicular growth will be further reduced to 1.5% per annum. Is this reduction coming a bit too late in controlling the current congestion? What is the projected vehicular population in Singapore in the next 10 years? Can our already crowded roads take the additional vehicles even if it is only a 1.5% growth? Will the Government consider a zero growth strategy or even a negative growth to remove the additional cars from our roads?

I read many years ago in a newspaper report that managing traffic is very complex and many academics studied and revealed that traffic jams are very similar to water molecules in a liquid state turning to solid ice state. The road can only take a certain vehicular load and a small increase beyond that threshold resulted in a sudden freeze and, as a result, a jam would start. I concluded that a jam will only start with a small number of vehicular increase. Looking and confronting at the daily slow traffic and jams on our expressways now, have we exceeded that threshold? Is it not time to reduce the vehicles on the road as it can only get worse?

The increased car population has also resulted in other problems. Previously, it was unheard of for a new HDB estate to run out of carpark lots. Now, I hear some new estates, carpark lots are even full before all residents have collected their keys. More vehicles and slower traffic speed will also mean higher fuel wastage and more pollution to our environment. There are many compelling reasons why we must rein in the vehicular numbers but many will not give up their cars for the simple reason that our public transport lacks the capacity.

I would like to propose a review of a category of transport, what I call "Shared Transport". I know the Ministry has maintained its position that taxis is private transport and, hence, are treated as such. Taxis, although privately-owned by taxi companies and leased out to taxi-drivers, occupies a space similar to private cars and the carrying capacity is the same as a private car. They are, in fact, a form of shared transport that can bridge the current gap between public and private transport. Taxis on the run and fully utlilised will not need a parking space and is, in the long run, a more economical way for all families, rather than all families owning a private car. Our current taxi companies are taxi leasing companies. Their main activity is to lease out their taxis. They should do more to encourage and increase taxi ridership.

I was surprised that under the LTMP, there was no mention at all on taxis. I propose that MOT do a review on taxis and see how taxis can be more effectively used to bridge the gap. I would like to make a plea for taxi-drivers to the Government to consider reducing ERP charges payable by taxis and also consider some concession for taxis to use the dedicated bus lanes. I hope we can streamline or do away with our confusing taxi surcharges that, in my opinion, have resulted in much undesired effects such as the "no taxi syndrome" after 11.30 pm which is miraculously resolved at the stroke of 12 midnight.

Car-sharing schemes are also another form of shared transport that did not take off well but took off well overseas. As a concept, I think it is a good one. Perhaps MOT can study and review our car-sharing schemes.

Our buses and MRT now are much better compared to the buses which I took in 1978. Today, my children enjoy a higher standard of public transport compared to what I experienced 30 years ago. Sometimes, they prefer taking buses and MRT home rather than waiting for my car.

I know that many Singaporeans look forward to the vision that is spelled out in the LTMP. Although we have an excellent public transport system and infrastructure, our men and women in MOT as well as LTA never cease to look for more ways to enhance and to bring our public transport system to a higher level. To these men and women, we thank them for their endless and thankless task to keep the traffic flowing.

Land transport policy

Mr Chairman, there seem to be more and more vehicles on our roads nowadays, their large numbers leading to frustrating congestions and traffic jams, especially during the morning and evening peak hours.

Under the Land Transport Masterplan (LTMP) unveiled in 2008, the vehicle population growth rate is to be lowered to 1.5% with effect from Quota Year 2009, ie, May 2009. Statistics show that the total motor vehicle population in May 2009 was 907,566 and that in January 2010 was 929,277. A quick calculation shows that the increase over this period of nine months alone is already 2.4%. Can the Minister explain the figures and enlighten us on any steps that will be taken to contain the yearly growth rate at 1.5%?

While waiting for our vehicle population to stabilise, I believe more should be done to ease traffic flow. I recognise LTA's efforts in road widening. However, I feel sad that while we take up more land to add lanes, vehicles can still be seen parking or waiting at the side of the road. Just one car waiting at the side of the road will effectively take that lane out of operation. Worse still, vehicles trying to switch out of that lane cause vehicles in other lanes to slow down, resulting in congestion. Because of one inconsiderate driver, many others are inconvenienced, wasting a lot of time for everyone. So, I would like to ask what are the KPIs of the traffic wardens. I do not mean that they should have a quota or summonses issued but their performance should be based on how our roads are free of obstructing vehicles. I urge MOT to indicate very clearly the busy trunk roads where any obstruction to the flow of traffic would not be tolerated during peak hours, and this should be enforced vigorously. These drivers play a cat-and-mouse game with our traffic wardens. They expect the wardens to approach them and ask them to move off; some even try to bargain before driving away. Now with modern technology like digital cameras, I think the wardens should just take a snapshot of the parked vehicles as evidence. Eventually, the message should be very clear – for certain stretches of busy roads, do not even try waiting there during peak hours because the likelihood of being caught is almost certain and the traffic wardens will not give chance.

Sir, to help motorists avoid congested areas, LTA should push for more publicity on Google Maps covering Singapore. The Singapore version of Google Maps, which has key transit and traffic information, including "live" traffic feeds from LTA, was launched last November. I discovered the application on my iPhone by chance only recently and I have been happily showing how it works to many of my friends. None of them was aware of its existence. It is a boon to both motorists and commuters alike. On Google Maps, I can now check on road traffic congestion and find the most convenient route to reach my destination. It is what I have been wishing for and it is free. It is simple to use and read, with the map showing which road sections are green, indicating free flowing; yellow for heavy traffic; and red for traffic jams. I would especially encourage motorists to make full use of this facility. With traffic information from the LTA updated every few minutes, drivers are able to avoid congested roads and plan their driving routes accordingly. Now, my only complaint is: why was this not made known earlier to people like me?

Sir, how can we make public transport the choice mode of transport? It is true that public transport has some way to go. The Mandatory Give-Way to Buses scheme and full-day bus lanes have made for smoother and faster bus rides. However, many drivers still flout bus lane rules. Perhaps they do that because the likelihood of being caught is slim. Instead of deploying enforcement officers only now and then standing by the side of the road to catch them, is it not more productive and economical to install electronic cameras to monitor the bus lanes continuously? Then, would-be offenders will have no doubt whatsoever that they will be caught.

Sir, in spite of the measures mentioned, complaints of overcrowded buses and MRT trains during peak hours still abound. I would like to know what additional steps will be taken to reduce overcrowding as this is surely one major factor that pushes commuters towards the car.

Two measures to moderate car usage are the Off-Peak Car scheme and the Park and Ride Scheme. The newly revised Off-Peak Car scheme has met with tremendous success. Car owners are still awaiting good news on the Park and Ride Scheme. I would like to ask the Minister whether the Ministry will have any measures to promote the Park and Ride Scheme.

Long-term plans for road use

Mr Chairman, I would like to ask the Minister for his plans on two issues. First, on the long-term vehicle population growth and the other, which is less directly linked to road usage, long-term plans for overhead bridges.

We are different from other major cities in the world. They have large suburbs where most of their residents live. The residents own cars because these are necessary for travel around the city areas. And many switch to public transport to travel into the city.

In Singapore, that distinction between city and suburbs is more difficult to make. I appreciate the Government's efforts to meet the aspirations of Singaporeans to own cars. Singaporeans are willing to pay a lot for their cars and, once purchased, expect to be able to use them.

To accommodate greater numbers, we are building more roads both above ground and underground. We are widening expressways and creating more lanes. But eventually, we will run out of space and roads to build. In that event, what is the strategy to control car growth or usage in the future?

1.15 pm

Despite the ERP, the effect of the growth of car population is plain to see. There appears to be less predictability on our roads. Many people tell me that the time it takes for them to drive to work varies greatly everyday. The unpredictability makes it difficult to plan and undermines the efficiency we pride ourselves on. The situation may be manageable now but will deteriorate as car numbers grow. As a matter of logic, we cannot allow car growth to continue indefinitely. So, what is the long-term strategy, particularly when we run out of roads to build? Is it the Minister's intention to use Electronic Road Pricing as a primary tool to control car usage? Can we, therefore, expect to see much heavier ERP charges and more gantries in the future? Is the principle to enable as many people as possible to own a car a realistic one and will it raise unrealistic expectations?

The second aspect I would like to raise concerns overhead bridges. All around Singapore, there are many overhead bridges, particularly over busy roads. Bridges, as opposed to signalised or zebra crossings, allow for smoother traffic flow. However, I am receiving more feedback from elderly residents that it is getting harder for them to negotiate such bridges. It is a real problem climbing if your knees or legs are weak and we should recognise this. These calls for help will get louder and more frequent as the population ages. May I ask what is the Ministry's long-term plans for such bridges? Will the Ministry provide signalised crossings to help elderly residents even if there is a bridge available? If so, will there be a need for bridges as no one will likely use them? Or are there plans to upgrade bridges to incorporate lifts and escalators to help those who cannot climb them?

Park and Ride scheme

Sir, during lunch time yesterday, Minister Gan Kim Yong shared a joke with me. He told me that there were two men in Jakarta. One of them was walking, the other one was driving. The one who was driving offered to give the one that is walking a ride. And the one who was walking would say, "sorry, I am in a rush, I cannot take your car." I think that is the state of the current situation now whereby I find that MRTs are so much more efficient and so much more predictable compared to driving.

When I was working as a houseman in Tan Tock Seng Hospital in 1992, I used to take the MRT from Khatib MRT station to Novena MRT station, it is a very nice 20-minute ride. I remember that I had a senior also working in Tan Tock Seng Hospital and he used to tell me said that he would take much longer to reach the hospital and I remember that we would leave Yishun at the same time and I would be at the ward at about a cool 10 to 20 minutes before him, even though I needed to walk up the hill to Tan Tock Seng Hospital.

But I guess that is the reason why we are pushing for Park and Ride scheme. For someone who stays near or works near an MRT station, MRT is a natural choice for commuting. And for many who do not stay near the MRT station, Park and Ride scheme is a good option. It helps the driver to save on parking charges as well as CBD charges. It is a good scheme to be enhanced and promoted as since it will reduce the vehicles on the road and also encourage greater usage of our public transport. Most certainly there have been more calls for more Park and Ride schemes. I understand that Park and Ride schemes, some of them are very popular, some of them are less popular. I would like MOT to roll out more publicity to encourage more motorists to use the scheme. I understand that demand for the scheme varies according to locations. Which are the locations that demand actually exceeds the supply of carpark lots? The Minister said in 2009 in a reply to my parliamentary question that LTA will be reviewing the Park and Ride scheme. I hope the Minister can give us a good reply in this COS debate.

Alternative transport arrangements

Sir, nowadays trains and buses are getting more overcrowded during peak hours and roads are more congested as noted by the GPC Chair earlier.

In order to help ease some of the congestion, I feel there is scope for LTA to consider expanding several modes of alternative transportation. One is the Park and Ride scheme, which allows drivers to park their cars at designated parking lots and switch to public transportation conveniently. It also encourages people to use their cars less and, hence, become more environmentally friendly. I believe this scheme needs better publicity as its capacity is not maximised, especially at certain carparks. Could the Ministry look into why the take-up rates at these carparks are low and also urge TransitLink to explore more convenient carpark sites? Also, could the Ministry get TransitLink to provide a more convenient system for drivers to join the scheme on a sustained basis as opposed to the current one where ticket sets have to be bought every month on a first-come-first-serve basis. To further encourage the take up of this scheme, I would like to ask if the Ministry could incentivise public transport companies to extend subsidies to users of this scheme as users now have to pay full adult fare for their train or bus rides.

Sir, another alternative transport system is the car-sharing system currently provided by companies like Honda car-share or the NTUC Income car co-op. Has any study been done on the take-up rate or effectiveness of this car-sharing service in the CBD and housing estates?

Public transport and road capacity

Mr Chairman, I think we have heard from many Members about Singapore's growing population and the demands on the land transportation system.

With the high level of economic activity in Singapore, the land transportation system plays a crucial role in enabling people to get to places on time. Can the Minister provide an update on the progress of meeting the increasing capacity demands on our public transport system as well as the management of traffic on the roads.

As the Minister said in his speech last year, our public transport system will need to do more to put the commuter at the centre of the land transportation system and our land transport system must be planned and built for people and not vehicles. Can the Minister tell us what the progress of making public transport more seamless and is it meeting the capacity demands in quality of service? Are our trains and bus systems able to meet the increasing volume of passenger load and demands? What is the wait time for services? And are we seeing improvements in the service quality of our public transport?

An area that I would like the Ministry to also look into is safety at our MRT stations given the increasing passenger load and the use of the MRT. Is there a regular review of the safety considerations and emergency procedures with regard to evacuation of commuters in the event of an emergency given the high passenger load?

Road capacity and traffic management. Our roads are increasing challenged to meet the increasing demands of road usage and more cars on the road. With the COE and ERP system, how effective have they been in managing in easing congestion on the road and can the Minister provide an update of what impact it has had on traffic flow? What actions will the Ministry take to reduce vehicular congestion on the road? I do hope that it would not mean that there will be more gantries and higher charges on ERP.

Mr Seng Han Thong you have three cuts, take them together, please.

Public transport

During peak hours, public transport operators also report an increased in ridership, especially in the trains. One reason given for this overcrowdedness is the rapid growth of our population over the last few years from 4 million to 5 million.

Measures have started to kick in to make public transport more attractive like shorter bus headway times, more dedicated bus lanes and give-way-to-buses at designated bus stops. All these measures, plus the squeeze inside our public transport system would demonstrate that more are, in fact, taking public transport. Despite all these measures being implemented, the average daily commuters feel the crowdedness and squeeze, be it in buses or trains. May I ask the Minister if more measures and plans will be introduced to further enhance the Land Transport Masterplan, taking into account the growing population and the constraint of existing transport system before the new rail network is up and running? Sir, it was also reported in the HITS that public transport modular share has dropped from 63% to 59%. It does seem, contradictory, that the survey reflect a drop in transport share while the sentiments from the ground seems to reflect the opposite. Could the Minister clarify on this drop in transport modular share vis-a-vis the sentiment on the ground that public transport is, indeed, crowded.

Tendering of bus routes

A major review of the Land Transport Masterplan is to allow contestability in public transport system. Bus and train services could be tendered to competent operators to manage for a contracted period. We understand that the rationale behind this proposal, which is to ensure services standards and operation efficiency are kept up to the desired level. It is argued that with contestability in the bus routes, it may lead to more job opportunities and better but the reverse can also happen. A major issue in tendering of bus routes is the transfer of staff should there be a new winning bidder, and the key concern for the public transport workers is whether their current terms of employment can be preserved upon transfer. Can MOT give us the assurance that any tendering will not be based on price but will be a contest where we take into account various quality aspects?

Central planning of bus routes

One key feature of the Land Transport Masterplan is the integration and central planning of the bus routes between buses and trains so as to enhance the public transport system. LTA has engaged the grassroot organisations and its leaders, since last year, to collate their feedback and suggestions on the proposed central planning of bus routes. May I ask the Minister what are some of the key feedback received and whether these will have an impact on the bus and train services? What is the timeline that LTA will assume this central planning role from the two operators? How would the new bus and train routes be implemented once it is finalised? Will there be a big bang or will it be implemented in phases? Most importantly, what are the guiding principles in reaching the final decision of the service routes, knowing that there must many conflicting interests among the commuters?

Prof. Faishal you have two cuts, take them together, please.

Update on central bus network planning

Sir, I applaud LTA's approach in engaging the ground as part of its effort to implement the Central Bus Network Planning. In fact, LTA has met my grassroots leaders, residents and I at least three times to seek feedback and share their plans on the Central Bus Network Planning. I would like to ask the Minister on the nationwide progress of such a consultation process. What has been the feedback received on the proposed route changes?

Many residents who attended the Marine Parade GRC's Consultative Exercise found it to be very useful and engaging. While they attentively followed LTA's proposals with regard to the proposed route changes as well as the services in their respective Division, they also spoke passionately about the various aspects of Bus Network Planning in the areas they have an interest in. On the other hand, I am also very impressed with LTA's openness and sincerity in addressing the issues raised by the residents.

Sir, since its announcement, the Central Bus Network Planning has created an expectation among the residents for an improved bus network in the areas they live. This, coupled with the excellent consultative process taken by the LTA, raised the hopes of the residents. I see LTA's challenge as reconciling the needs together with expectations of the residents and the efficiency and practicality of bus network planning. I would like to know how the LTA intends to implement these changes, taking into account the varying interests of the stakeholders and the transport operators and what are its plans to sustain the engagement process in the spirit of a "people-centred transport system".

Land Transport Masterplan and elderly commuters

Sir, the Land Transport Masterplan attempts to make public transport a choice mode, a viable alternative to the car. In its attempt, I feel that the LTA should continue to enhance the travel via the public transport to make it more seamless for the commuters, paying close attention to meet the needs of Singaporeans.

We need to look at the details of the travel needs and options available to Singaporeans. It should also maximise their level of accessibility in travelling to activity nodes, especially those close to their neighbourhood. In addition, in view of the ageing population and also our move to encourage older Singaporeans to remain employed, the land transport system should meet the needs of our elderly. For example, studies have shown that elderly travellers place high importance on the travel factors in their choice of shopping areas and they tend to travel shorter distance for their shopping needs. Therefore, we need to enhance connectivity in intra- and inter-town travel so that our elderly are able to carry on with their daily life without much difficulty.

Like few other areas in Singapore, my Division has many elderly residents. Many live in 3-rooms flats and smaller and they usually take the public transport, particularly the bus for their travel needs. They are keenly awaiting for the improvements being set in the Land Transport Masterplan (LTMP) to ease their connectivity. I would like to ask the Minister, how have the initiatives of the Land Transport Masterplan so far, benefited our elderly commuters? What are the measures undertaken since the announcement of the Land Transport Masterplan to enhance their travel experience? With more elderly still remaining employed, how have packed buses and MRT during peak period affected their ease of travel on public transport? When will the full-scale improvements for the elderly, visioned in the LTMP, be realised? What plans are in place during this transition period before the full impact of the LTMP are in implemented?

Public transport concession for disabled

Sir, disabled persons face challenges fitting into society for work, recreation and social interaction. Travel is a necessary step towards integration to work, to socialise and to be consumers. There are currently no public transport concession for the disabled. The disabled here have low earning capacity, many do not work. Those who do, earn a few hundred dollars a month, spending up to a third on travel expenses.

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The Government has often said that we should build an inclusive society. It therefore should not take a backseat on this issue. Other governments are proactive. In the United Kingdom, for example, disabled persons qualify for a special rail card which entitles them to travel through the United Kingdom at one-third off from the normal fare. In addition, disabled persons in London can travel off-peak for free on buses, the Underground and trains.

The Government cannot wash its hands off the matter by saying that the public transport system is operated commercially and it is up to the public transport operators to decide. The disabled have no bargaining power against the big companies. For instance, the Land Transport Authority, as regulator, can make it a licensing condition that the public transport operators (PTOs) recognise disabled passengers for concession travel.

According to a 2001 MOH survey, less than 2% of Singaporean adults below 60 have some sort of disability. Is the number of disabled too much for the PTOs. The PTOs' operations are reaping profits of tens of millions of dollars annually, and this is part of their corporate social responsibility.

Er Lee Bee Wah, take all your three cuts together.

Bus concession

(In Mandarin ): [For vernacular speech, please refer to Appendix A * ] Mr Chairman, at the moment, the concessions for senior citizens starts from 9.00 am on weekdays, and on weekends and public holidays, they have concession for the whole day. But some senior citizens have to go to work before 9.00 am. Because of their age, they are not earning as much as before. And in order to be self-reliant and for survival, they have to continue working. I urge the Ministry of Transport to be more generous and more magnanimous to give the senior citizens more support. I think we should not have any restriction on the time for them to enjoy the concession as the public transport companies are earning so much money. We should be more gracious to them. We should help them.

Another group of students are the polytechnic students. Now, they have to pay $50 for their monthly ticket. And for the junior college students, they are paying $27.

50. It is a big difference. So for the monthly concession for polytechnic students, it is $45 and for the junior college students who are of the same age, they are paying only $25. There is a difference of 80%. But for the consolidated concession that can be used for buses and trains, it is from $97 and $57 – it is a big difference. I urge the Public Transport Council to review the tickets for the polytechnic students.

*Cols. 4169-4170.

Improve public transport

(In English): The Ministry of Transport is to bring about efficient and cost-effective transportation to enhance our economic competitiveness and quality of life. And its vision is to be a proactive and forward-looking organisation, anticipating and responding to the needs of their customers and changes in the environment both domestically and internationally.

Since LTA took over the planning of bus routes in September last year, can LTA please update us on what the improvements are?

For the residents who live in zone "B" of Nee Soon South, despite my feedback in last year's COS debate and subsequently to LTA, they still have to alight from bus 812 at the bus-stop before the bus turns into Yishun Avenue. They then cross the six lanes at Yishun Avenue and walk to the next bus-stop to take bus 811 to go to the community centre (CC). The total walking distance, I have measured, is 270 metres. You and I will have no problem in walking. But for the elderly and the pregnant women, to walk 270 metres to change buses is more like a mini-marathon.

I have faith in our Ministry's excellence and thus believe that this incident, which I have brought up, is an isolated occurrence. I therefore would like to implore the Ministry to examine the public transportation issue in zone "B" of Nee Soon South so as to bring greater quality of life to the residents by proactively anticipating the needs of Singaporeans.

Accessibility to MRT stations

We have a growing pool of seniors in our community. Mobility and access to facilities are key issues which have to be given priority. I acknowledge the far-sightedness of the Transport Ministry in ensuring that public transport remains highly accessible and user-friendly to the less mobile citizens through the incorporation of barrier-free accessibility (BFC).

I am heartened to note that lifts are gradually being installed in most MRT stations and at entrances to the stations where intensive stair-climbing is involved. Yet, considering how the Ministry appreciates the necessity of lifts in facilitating movement in and out of MRT stations, I cannot understand why the only means of accessing the overhead bridge entrances of some stations are only by staircase.

For the third consecutive Budget debate, I am appealing to the Minister to support the construction of lifts at all overhead bridges at MRT stations, not just at Khatib MRT, but throughout the whole of Singapore.

Stairs cause barriers to many groups of people – the handicapped, the elderly, pregnant women and children. In no way do they make the MRT station more accessible to these people. Furthermore, joint problems are common ailments of the elderly and using the stairs is like climbing over a five-foot wall. The 67 fleets of stairs at Khatib MRT's overhead bridge is a pain for many elderly residents in Yishun South and a common topic of complaint at my house visits.

Residents with mobility issues lament about the difficulties of using this staircase while their family members fret over their safety. I was told recently that there was an old man who fell at the staircase. Such is their trouble with the staircase that many of the elderly residents have even resorted to jaywalking.

As the Minister is undoubtedly aware, jaywalking is a main cause of death amongst elderly pedestrians whereby almost one in two pedestrians killed was above 60 years old last year. A lift at the overhead bridge is a means to enable them to move around safely and with ease. In line with the Government's appeal to the elderly and the handicapped to continue maintaining a healthy lifestyle and financial independence, I would like to urge the Minister to consider my request.

Cycling on road pavements

Mr Chairman, Sir, LTA may deny this, however, as a member of the public, not stating on pavements and at bus-stops that no cycling is allowed and with no enforcement action, you have implied agreement.

These places are crowded places and we have the very young and old using these facilities. Can we not have signs to forbid cyclists at these places that LTA enforce directly? The man in blue should be left to take care of drunkard drivers, loansharks, robberies and at our borders. If LTA cannot enforce this, then introduce the relevant Bills and Acts to ensure that LTA has a proper management of its own facilities.

On the issue of an accident between a cyclist and pedestrian, the onus should be on the cyclist at these places as they are not allowed. Once there is an accident reported, the cyclist should be taken to task by LTA – a fine regime – and not allow the Police to refer them to the Subordinate Courts.

Mr Chairman, Sir, I thank Members for their comments and many suggestions. I will address some of the key ones while Minister Lim Hwee Hua and Senior Parliamentary Secretary Teo Ser Luck will address some of the others.

In 2008, we launched the Land Transport Masterplan (LTMP), a document outlining our key land transport strategies for the next 10 to 15 years. Members have asked about our transport system capacity – Dr Lim Wee Kiak asked whether our public transport system can handle the increasing commuter load while Mr Hri Kumar commented that we would eventually run out of space to build roads. These were exactly the issues that we sought to address under the Masterplan.

Today, our transport system carries about 11 million journeys each day. By 2020, this will rise to 14.3 million. This means our transport system must carry 30% more and meet many different needs while ensuring our environment does not become dominated by congestion-filled roads. It was thus clear that we needed to make a decisive shift towards a higher public transport modal share, and reverse its downward trend in recent years, from 67% in 1997 to 63% in 2004.

As it turned out, in 2008, this had gone further down to 59% based on the latest Household Interview Travel Survey (HITS 2008) which came out in October last year. Some had erroneously concluded that despite the enormous effort put in over the past two years, the LTMP measures have failed to reverse the trend. This is not so. HITS was launched in the same year – 2008 – as the LTMP, to give us a proper baseline to measure the effectiveness of the LTMP initiatives going forward. If we had not done so, we may end up drawing wrong conclusions. A later survey may, for example, show the public transport modal share at say, 61% – which could be misread as a further two percentage-point drop from 2004, when it actually improved two percentage-points from 2008.

Indeed, HITS 2008 has affirmed that the LTMP is on the right course. To answer Mr Seng Han Thong, the reason why public transport modal share has gone down even though public transport ridership has gone up is because car usage grew much faster than public transport ridership between 2004 and 2008, 31% to 16%. We need to arrest this decline in public transport modal share if we are to have a sustainable land transport system and a liveable city. The LTMP sets out to do this by increasing the capacity and attractiveness of our public transport system and managing our road usage closely.

Several Members have pointed out that our trains and buses are getting crowded. I share this concern. It is one of our top priorities. Our high population growth in the last few years coupled with high fuel prices, have led to a significant growth in public transport ridership, in particular, the MRT system. If we are going to successfully transform our public transport system into a choice mode rather than one of last resort, we need to address aggressively not just this issue of crowdedness and comfort but also service quality issues as Ms Jessica Tan has brought up, such as waiting time, travel time and reliability.

Dr Lim Wee Kiak asked how are we going to bridge the capacity gap between now and 2020. Our strategy has never been to back-load all our measures to 2020. The LTMP contains short-term measures to deal with the current situation, as well as longer term plans to meet ridership growth over the next 10 to 15 years. This is why we will conduct the next HITS in four to five years' time to, assess the impact of the LTMP measures, and not wait till 2020. I have asked the Clerk to Parliament to circulate the summary of our progress to date.

We will improve our public transport system through a three-pronged strategy. First, improve our bus services. Second, increase our rail capacity. Third, ensure that the focus is on the commuter. In fact, this commuter-centricity informs all of our public transport policies. Only if we have a people-centred public transport system will we be able to make it a choice mode.

First, improve our bus services. To reduce crowding and waiting time, we have increased trunk and feeder bus frequencies. Today, at least eight in 10 basic bus services are required to come at 10 minutes interval during the peak periods instead of 15 minutes previously. SBST and SMRT have added 116 buses and more than 260 bus trips to 109 services during the morning and evening peak periods, shortening their headways by an average of 18% and increasing their capacity by 24%. To give commuters more choices, there are 75 premium bus services today, up from 42 in January 2008. To cut down travel time and improve reliability, we have given buses more priority on our roads – we have put in more bus lanes and impose mandatory right-of-way for buses exiting bus bays on some roads. The bus lanes have helped to increase bus speeds. On average, it is 7%, while the mandatory Give Way to Buses Scheme has reduced the time a bus takes to leave the bus bay by up to 73%.

As Mr Ong Kian Min has pointed out, we need the cooperation of all road users, to give way to buses and keep out of bus lanes, to raise the quality of bus services. In addition to public education efforts, LTA deploys traffic wardens and make use of cameras on the buses to enforce the rules. Moving forward, LTA will study the use of roadside enforcement cameras to augment the existing enforcement efforts.

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Beyond these, we will work with the operators to see what more can be done to further increase frequencies on heavily-used bus services during the rush hours. We hope to make an announcement in the next few months. We will extend the mandatory Give Way to Buses Scheme to another 158 bus bays this year from the current 44. LTA is currently looking at the possibility of giving buses signal priority at traffic junctions. SBST and SMRT collectively are bringing in 400 new buses this year.

Second, we will increase rail capacity. We have opened the Boon Lay Extension and Circle Line Stage 3. To deal with the increased loads on our trains, operators have added over 1,000 train trips per week for the existing rail lines since 2008. These represent a capacity increase of almost 14.8%, measured in train-km, in the last two years. Where possible, they will introduce more train trips this year. I am therefore pleased that SMRT has informed LTA that from 22nd March, it will add another 150 train trips during the week to help ease crowding and waiting times for rail commuters.

We are also addressing the infrastructural bottleneck in our existing North-South and East-West (NSEW) Lines by building an additional platform and track at Jurong East MRT station. We will complete this in 2011, and also take delivery of 22 additional trains to boost capacity by 15%. For commuters, this means less crowdedness and shorter headways during the peak hours. For instance, SMRT will be able to run trains at about 2.6 minutes between Bukit Batok and Jurong East, down from the current 3.2 minutes during the morning peak period. Other stretches of the NSEW Lines will also see higher capacities and shorter headways.

Further, we have decided to open our new rail lines in phases even though this is less cost effective than waiting for the whole line to be completed. We opened the Circle Line from Bartley to Marymount in May last year and will be opening the segment from Bartley to Dhoby Ghaut on 17th April this year. This will mean that half the Circle Line will be opened this year and LTA expects that this will directly benefit 200,000 commuters daily. The other half from Harbourfront to Marymount will be completed next year, while the Circle Line Extension to Marina Bay is targeted for completion in 2012. The Circle Line, when fully opened, will also help to relieve crowding levels on critical stretches of the existing MRT lines by 10% to 15%.

What this means is that when both the Circle Line and the extra capacity in the NSEW Lines come on-stream, the current crowding levels at the most crowded stations of about 4.5 passengers per square metre will improve to about four passengers per square metre. In the interim, where it is not possible to add on more train trips because of constraints in infrastructure and rolling stock, we will facilitate parallel bus services to provide an alternative. We have done so with service 128 serving the rail segment from Ang Mo Kio to Shenton Way. It has not been as successful as we had hoped as commuters found its travel time not sufficiently competitive with the MRT's. We are studying how best to further improve the attractiveness of such bus services as they will add needed capacity in these busy corridors.

As for the next major RTS Line, the Downtown Line (DTL), we can look forward to the opening of its first phase, from Bugis to Chinatown, in three years' time, 2013. These improvements would be more than sufficient to meet the current public transport demand and cater for growth over the next few years. Beyond that, the new lines to be rolled out – the rest of Downtown Line, Thomson Line, Eastern Region Line – would not only provide significant increase in our rail capacity to cope with long-term population growth but greatly increase the coverage and connectivity of our rail network. Third, we will also continue to work on improving the commuter experience. We will remove completely the transfer penalty that a commuter pays when he or she has to transfer from say bus to bus or bus to train. When we started out, commuters were given a transfer rebate of 25 cents, which only partially offsets the transfer penalty of about 60 cents. The Public Transport Council (PTC) has reduced this penalty in the last two years by increasing the transfer rebate to 50 cents. This year, the PTC will see how best to get rid of it altogether, in a manner that will benefit the majority of commuters. Come July, commuters travelling the same distance will then pay the same fare for the same type of service, regardless of whether they travel direct or make transfers.

This will be the most significant change ever made to the structure of our public transport fares. When the new fare structure is in place, we hope that commuters will look at the entire public transport network as an integrated whole, and take full advantage of the choices offered to get to their destinations. As we open more rail lines and extensions, more commuters will find that a combination of bus and train trips, strung together into a single journey will likely get them to their destinations more quickly.

The key thing is to ensure that our hub-and-spoke model works well, in a manner that benefits the commuter. With LTA now planning both bus and rail routes in an integrated manner, and with the new distance-based through fares, we can better achieve this outcome.

Commuters often comment that they are unsure when the bus will arrive. Ms Jessica Tan will be pleased to hear that we are working to improve transfers in several ways. We are trying to make public transport more seamless. First, as I mentioned earlier, more frequent buses help to reduce waiting times during transfers. Second, is to provide commuters with bus arrival information, so that they can make informed choices. SBST already has its IRIS Next bus system. LTA is developing a similar system which integrates the bus arrival information from both operators.

I thank Mr Ong Kian Min for helping to spread awareness of the Google Maps for Singapore. LTA and Google held an event at Dhoby Ghaut station in November last year to launch this service. It is a wonderful tool, if Members have not accessed it, they should really access it, then they can see how good it really is. For instance, if you feel after a long day sitting in this House, that you need both exercise and food, say, at Newton Circus, this Google Map will direct you to the nearest MRT station from Parliament which is City Hall. It will detail your walking route, from Parliament to the station, then tell you which MRT line to take, the train frequency and, when you reach Newton station, how to walk to Newton Circus – giving you for completeness, the estimated time you will take for each part of your public transport journey. One way to increase awareness of such tools is to link it to a single portal that people are familiar with. LTA will shortly be launching a new mobile channel called MyTransport.sg. It will be a one-stop platform, offering a suite of mobile services from transport-related portals, including LTA's ONE.MOTORING and PublicTransport@SG portals.

So where are we today? Are these LTMP measures having an impact in improving our public transport system? To get an accurate assessment of how we are faring, we need to go beyond anecdotal feedback to see whether these stories – often colourful, good and bad – represent the general state of affairs or otherwise. This is why LTA has commissioned a Public Transport Customer Satisfaction Survey annually since 2006. The latest survey, conducted by UNISIM in October last year, has been completed and the results are encouraging. Overall, more than nine in 10 commuters were satisfied with our public transport services. Compared to the 2008 survey, we saw an improvement of 4% points, from 89.5% to 93.8%.

The improvements have been across the board. Ms Jessica Tan who raised the issue of safety and security in our public transport system will be pleased to know that this was the highest rated attribute by commuters with 90.7% satisfied, up from 88.3%. This is a reflection of the importance we placed in ensuring that our public transport system is safe and secure with emphasis on regular reviews and testing. The system is designed to be able to cope safely with a higher load of passengers than what we see today. And to enhance the safety of commuters, we are progressively installing platform screen doors at all elevated MRT stations.

Even for those areas which have traditionally been rated lowest, such as waiting time and reliability for bus commuters, and comfort and waiting time for MRT users, we have seen improvements. But we will continue to work with SBST and SMRT to find ways to further improve customer satisfaction, especially in those areas which matter most to commuters – crowdedness and waiting time – where I believe there is still room for the operators to do better. And that is why we are re-doubling our efforts in those areas. When we launched the LTMP in 2008, we recognised that it is important to consult and engage the communities that we serve, and have thus assigned Community Partnership Managers to each constituency. This is a two-way process – there is a LTA "face" for the community to provide feedback and complaints; at the same time, LTA can better explain to residents the considerations and constraints involved. In the process, we are better able to meet the needs and demands of the commuting public, and build a transport system that everyone has a stake in.

The feedback from the Advisors has been very good, as Dr Muhammad Faishal has noted. Minister Lim Swee Say, Advisor to the Buona Vista Grassroots Organisation wrote to me, and I quote: "LTA used to be one of the agencies most complained about by grassroots leaders on the ground. But in the past one to two years, we have seen noticeable changes in its commitment to engage the ground. LTA attends our CCC meetings regularly, and takes feedback and suggestions constructively and responsively. Of course, not all suggestions can be implemented. But LTA would implement what is possible, and explain what is not possible. LTA representatives also work with our grassroots leaders to figure out practical solutions. Today, I no longer receive negative feedback from my grassroots leaders about LTA". We have taken a similar approach, to consult the communities as LTA develops the Bus Route Masterplan.

Mr Seng Han Thong and Assoc. Prof. Dr Muhammad Faishal have asked for an update on bus route planning. The key to this exercise is to provide a platform where the views of the community in all the GRCs and SMCs would be taken into account on a systematic basis. The measure of its success is thus not how many big changes are there, but rather how effective the consultations have been in taking into account the views of the communities affected. We should be mindful that every bus route change affects someone, so we should only proceed if it is for the better and has good support from the community. Minister Lim Hwee Hua oversees this initiative and will be giving an update later.

Once the review of the bus network is completed and implemented, we intend to gradually open up our basic bus service industry for more competition, by making the right to operate bus services contestable. Competition raises service standards, enhances efficiency and keeps costs competitive. Injecting greater contestability into our bus industry is a major change. It is critical to get the policies right. LTA is studying the issues very carefully. LTA has set up a joint workgroup with the National Transport Workers' Union and the bus operators to see how best to safeguard the welfare of bus drivers. But I think it is useful to put things in perspective. A public transport modal share of 70% by 2020, up from 59% today can only mean a lot more public transport ridership – that means more public transport workers, more bus captains and more station staff will be in demand. In fact, the operators are finding it a challenge to find enough workers and have been working with the Unions to get more Singaporeans to take up these jobs.

We intend to start competitive bus tendering gradually from the second half of 2011. We will start with, perhaps, one or two pilot packages and let these have some time to run before we make firm decisions on the rest of the network. And let me assure Mr Seng Han Thong that our intent is to evaluate the bids on factors other than price, such as quality attributes like headways, comfort and reliability.

Mr Chairman, Sir, let me now turn to the key issues raised on managing road usage. Several Members like Dr Lim Wee Kiak, Mr Hri Kumar and Ms Jessica Tan have asked what is our long-term strategy in managing road usage? The key tenet of our strategy is to recognise that there is no single solution to this problem. We often hear people say that congestion will be solved if we had a better public transport system or more roads. Unfortunately, experience has proven otherwise. Tokyo and Seoul have first-class public transport systems but are still plagued by horrific morning peak-hour traffic jams. This is because any success in achieving higher speeds on the roads through the pulling power of a better public transport system will encourage other commuters to drive and replace those who have switched.

Similarly, it is not possible to build ourselves out of congestion. Widening roads to deal with congestion is like dealing with obesity by loosening the belt. The increased capacity leads to increased traffic, so the problem just recurs but on a bigger scale. Other cities such as London, Stockholm and Amsterdam have come to the same conclusion – both pull measures, such as a high-quality public transport system, so people have an attractive alternative to the car; and push measures, such as congestion charging to curb excessive use of cars, are needed.

2.00 pm

Since releasing the LTMP, we have enhanced the efficacy of the Electronic Road Pricing (ERP) system. To answer Ms Jessica Tan, these ERP changes have been effective with significant improvements in traffic conditions within the city and on the expressways. As a result, not all the new gantries announced were needed and some rates were reduced. In fact, looking back further, it is significant that we have been able to keep at least 95% of our road network congestion-free during the morning peak hour since we started tracking this indicator six years ago. This is despite having a 30% increase in vehicle population while road space only grew 7%.

Since 25th January, we have also revised the Off-Peak Car (OPC) scheme. More than 660 new cars have since registered as OPCs and some 500 normal car owners have converted to the scheme. These rates are well in excess of the 570 and 20 per month respectively before the revision. While it is still early days, these initial results are encouraging.

Members such as Dr Lim Wee Kiak and Mr Ong Kian Min have pointed out that the vehicle population has grown faster than the allowable growth rate in the last few years. The reason for this is that a large part of the total supply of Certificates of Entitlement (COEs) for any given year depends on LTA’s estimate of the number of vehicles that would be de-registered in that year. If, as in recent years, it over-estimates, then the growth in vehicle population will exceed the allowable growth rate. LTA corrects for such over-projections in subsequent quota periods. Thus, the average growth rate from 1990 to 2008 was 2.8%, close to the 3% target.

However, the problem with this approach is that even though it achieves the 3% target in the long run, the short-term fluctuations in the growth rate are not desirable. It may have given the impression that a 3% growth rate was tolerable in the early 2000s as our roads did not seem to be congested when part of the reason was because the vehicle population growth then was actually about 1%, whereas in the late 2000s, our roads felt more congested as actual growth rate was more than 5%.

Hence, I informed this House last year that we are looking at a better way to determine the replacement COEs each year. LTA has since completed its review. From April 2010, after this quota year ends, rather than releasing replacement COEs based on the projected de-registrations in the coming year, we will base it on actual de-registrations that have already taken place and recycle it back into the system.

In its review, LTA had sought the views of the various motor trading associations. They are generally supportive of the proposal. They felt that the recycling method has the advantage of being more transparent as they can estimate the COE quotas by monitoring the de-registration rates.

Some may recall that this is similar to the pre-1999 methodology. The key difference is that the quota then was calculated on a yearly basis. This meant that there was always a one-year lag which was not sufficiently responsive and so we adopted a forward-looking projection approach instead. The difference now is that we will recycle every six months, in order to be more responsive to changes in de-registration patterns.

We do not rule out shortening the recycling period further to make the system even more responsive. As with all changes, we will allow the industry time to adjust first. LTA will be providing the details of the new quotas shortly.

Since 2009, we have reduced the annual vehicle population growth rate by half, from 3% to 1.5% for three years. We will review it then to see whether further reductions in the growth rate is necessary as some Members have suggested.

Before leaving this issue, let me also clarify the misconception that the vehicle population growth rate reduction from 3% to 1.5% was the main reason for the sharp 30% drop in the COE supply last year. This is not true. The bulk of each year’s COE supply is from the replacement COEs, not the new COEs from the allowable growth rate. It is the recent trend of lower de-registration rates that is largely responsible for the falling COE supply. To some extent, this is self-compensating because lower de-registrations also mean that there will be fewer car owners bidding for COEs to replace their cars. We will also look at other ways to encourage drivers to switch to public transport for their daily commute. One such scheme which some Members have given their strong support for is the Park and Ride scheme. Dr Lim Wee Kiak and Dr Ahmad Magad will be pleased that LTA will step up their publicity of the scheme. Today, of the 37 sites, there are 15 within 400 metres of an MRT station or bus interchange that are less than half-full. LTA will use the PublicTransport@SG portal to provide additional information on the Park and Ride scheme, such as the walking path from Park and Ride sites to the nearest transport node and possible cost savings from using Park and Ride. It will also tap on the road tax renewal process to send Park and Ride leaflets to motorists and put big foot markers at the less popular Park and Ride sites to direct users to the nearest transport node. Dr Ahmad Magad has suggested making it more convenient for drivers to join in on a sustained basis, such as a GIRO-linked season parking scheme. We have considered this, but decided to keep the validity of the Park and Ride sets to one month as LTA felt that it is more equitable to give all interested buyers a more frequent chance to buy them on a first-come-first-served basis, rather than have a part of the supply locked out for three months or more, particularly for the popular sites. But I will ask LTA to re-look at Dr Ahmad Magad's suggestion after LTA has had a chance to review the response to its latest initiatives.

LTA and TransitLink are also working together to make it more convenient for Park and Ride users to obtain their monthly Park and Ride sets through a new online system. Those who purchase their sets online will not need to queue at the ticket counters when sales open. They can pick up the sets from any TransitLink ticket counter at their convenience. LTA will provide more details of the online system closer to when it will be ready in the second quarter of 2010.

LTA has also been working with HDB to increase the number of Park and Ride carparks, especially at popular locations. Starting 1st May, we will have three more Park and Ride sites with 90 lots. These three sites are located near Queenstown, Yio Chu Kang and Buona Vista MRT stations.

Dr Ahmad Magad has asked whether Park and Ride users could be given Public Transport fare subsidies. This is already the case today – not in the form of a subsidy for the fares but a discount for the parking. The $30 that goes towards the parking is a significant discount from the $65 or $90 a month, a Season Parking Ticket for a HDB car park will cost.

Dr Lim Wee Kiak and Dr Ahmad Magad have also suggested promoting car sharing schemes or car rental for those who only need to use the car for a short period. From an overall transport perspective, more people sharing a car in effect increases the use of that car. But we recognise that there is a niche market for such services and we will leave it to private enterprises – some of which Dr Ahmad Magad has named, to meet such demand.

Mr Ong Kian Min has pointed out that illegal parking obstructs the flow of traffic and causes congestion. Currently, the Police and their Traffic Wardens enforce against illegal parking on public roads, focusing their efforts on hotspots, such as those mentioned by Mr Ong. Last year alone, there were about 250,000 summonses issued against motorists who stop or park illegally. This works out to more than 20,000 summonses per month. However, the enforcement officers cannot be present everywhere, especially during peak hours. LTA will continue to work closely with Traffic Police to see how better to address this. Dr Lim Wee Kiak has asked about the role of taxis and how taxi services can be improved. Taxis bridge the gap between cars and mass public transport like buses or trains as they provide commuters with a personalised door-to-door service. Therefore, it is important that commuters can get taxis where and when they need them. Market forces are best able to determine the size of the taxi fleet and the fares so that the supply of taxis can meet the different needs of commuters.

LTA's key focus is to ensure service standards are upheld and, where appropriate, enhanced. LTA also works closely with the taxi companies and Taxi Operators' Associations (TOA) to facilitate the workings of the industry. For instance, LTA has set up a common taxi call booking number, making it easier for commuters to call for a cab. It has also set up temporary taxi stands during major events such as the F1 to cater for increased taxi demand.

Mr Chairman, Sir, the Land Transport Master Plan (LTMP) sets out a comprehensive plan to meet a stretched target of 70% public transport mode share by 2020. Some of them, such as a more extensive rail network are welcomed, but others, such as a more effective ERP system, less so. We have made progress with measures that can be implemented quickly, but some others are more complex and will take time to see through. There is no silver bullet to solving our land transport challenges. We will need to stay the course if we are to build a land transport system that can meet the needs of an inclusive, liveable and vibrant global city.

Mr Chairman, Sir, Mr Seng Han Thong and Assoc. Prof. Muhammad Faishal have asked about the progress of the move to have LTA take over the role of bus planning from the operators and the outcome of its public consultation with the community. LTA, in its new role as central bus planner, has developed a draft Bus Route Master Plan for consultation purposes. This master plan maps out the detailed bus routes, service specifications and infrastructure facilities for our bus network over the next three to five years. LTA is guided by three key principles when planning bus routes. First, to improve journey quality. This includes greater transfer convenience, better service reliability and, where possible, shorter journey times.

Second, to have better integration between bus and rail, with buses feeding the MRT network directly and quickly for a more effective hub-and-spoke model.

The last, but no less important, is to maintain the overall financial viability of our bus system. Instilling financial discipline is essential if we want a sustainable and affordable public transport system. LTA has been working with a consultant to review the bus network. The consultant’s assessment is that the current bus network, which has evolved over the years, is already comprehensive. Undertaking a substantial overhaul of the system would cause major disruptions to commuters’ daily routines. This was consistent with the conclusions of the public consultations. LTA paid special attention to modifying and improving the existing bus network so as to plug any gaps in connectivity.

LTA has been meeting communities across the island to discuss its proposals. Let me now share some of the challenges which will require fairly substantial changes to the bus routes. For instance, one common feedback was that services covering long distances were unreliable. This is not surprising, since by the time the bus reaches the end of the service, all the traffic-related delays along the way would have been accumulated. Minister Raymond Lim has just spoken about how we are increasing bus frequencies and implementing bus priority measures to address this. Another solution would be to split long bus routes into two shorter complementary routes. But the trade-off would be that for the minority of commuters who use it for longer inter-town travel, they would now have to make a transfer. LTA has to study and obtain feedback carefully on where the route should be split so as to minimise the impact to commuters.

Most other route changes would only require fine-tuning. However, there are also instances where an amendment is meritorious but may not be desirable to the commuters. Take for example, service 315 which serves my constituency in Serangoon. The service currently cuts through Serangoon Gardens, en route to the Serangoon MRT station, which makes the journey longer. LTA’s proposal was to "straighten" service 315 by bypassing Serangoon Gardens. However, doing so means Serangoon North residents would have to forego a direct service to Serangoon Gardens, where the market and food centres are located. After weighing the trade-offs involved, the community felt that it was better to keep to the status quo.

One common suggestion is that LTA should consider adding new bus services to plug gaps instead of amending existing ones, so that such trade-offs could be avoided. While it may seem a convenient option, this too has a trade-off. New bus services require investments in additional buses and drivers. Unless there is sufficient demand to support these new bus services, it would only drag down the overall financial health of the operators. Besides, more congestion would be generated. Commuters may not feel it immediately but, over time, this would eventually lead to higher fares or poorer services.

2.15 pm

Thus far, LTA has met just over half of the 14 GRCs and nine SMCs. These are extensive consultations with both advisers and their grassroots leaders and have been a very useful two-way exchange between LTA planners and the community. While the LTA planners have gained valuable feedback on their proposals, the grassroots leaders have also gained a better understanding and appreciation of the trade-offs involved. Some residents were able to come up with alternative suggestions. An understanding of the considerations makes for better suggestions. I think many Members will be able to identify with Assoc. Prof. Dr Faishal's observation that his residents who attended the session found it useful. LTA targets to complete all consultations in a few months' time. Once LTA has completed these consultations, it will carefully evaluate and reconcile the different inputs. Some of our bus routes span the island and serve several constituencies. So the different GRCs may have different views. For example, when LTA suggested splitting Service 63 to make it more reliable, the grassroots leaders in Tanjong Pagar GRC supported the move. But when LTA consulted Marine Parade GRC, the grassroots leaders there preferred to keep the service as it is. So LTA will have to assess the proposal's benefit to commuters overall. After the proposals are finalised, LTA will have to seek the views of the bus operators and close the loop with the communities again before eventually seeking the PTC's approval for the changes to be implemented. The process of reviewing bus routes will continue on a regular basis as travel needs change. But there is no need to wait till the next cycle. To answer Assoc. Prof. Dr Faishal, LTA currently has many channels of communications, and each CCC has a Community Partnership Manager attached whom grassroots leaders can forward feedback and make suggestions to. The changes to the bus routes will be phased in progressively, starting from the end of this year. This is to give commuters time to adjust, as well as operators time to make changes to their operations. The first few changes to be made will include proposals to improve connectivity to MRT stations and local amenities. LTA will provide details of these service changes in due course. At this point, I would like to say a big thank you to all the advisers, grassroots leaders and residents who have given of their time and contributed to the process.

Mr Chairman, Sir, like Assoc. Prof. Dr Muhammad Faishal, Member Lee Bee Wah, Member Hri Kumar, we are all concerned about the elderly. I have an elderly at home. I do not have a lot of time to ferry my mum around, so several times and on several trips, she has to take public transport. As the elderly age, they become a little more immobile and need a lot of help. We recognise that Singapore is changing, the demographics is changing and our population is ageing. So, our transportation system will have to adapt to the changing society. We have a series of measures and we are taking one step at a time as the situation evolves. We aim to have all public buses wheelchair-accessible by 2020. At present, 30% of our public buses are wheelchair-accessible buses (WABs), but this will steadily increase as the bus fleet is renewed. With more WABs, the focus increasingly would be on getting more of such services to roll out, beyond the current 51 services. To facilitate this, LTA has been getting the bus-stops ready, with works already complete for about 3,800, or 84% of all bus-stops. All our MRT stations are already barrier-free. By 2011, 70% of our MRT stations will have at least two barrier-free routes. This will benefit the elderly and the less mobile as they do not have to make long detours to get to the station. We are also making all our pedestrian walkways barrier-free – all of it, and this will be completed by the end of this year. Our bus captains, service leaders and station staff also recognise that the elderly and the less mobile sometimes need a bit more help, and they have to go the extra mile for them. There are training sessions for all these service providers. One commuter, Ms Eng Li Hwa, wrote to the Straits Times last November, commending the bus captain of Service 132 for helping an old man with a walking stick alight from the front door of his bus. Other commuters too can help to make the journey easier for elderly commuters. For that, we need the community's help. We have reserved seats on all our trains and buses for the less mobile. Last year, the Public Transport Council also engaged the help of Phua Chu Kang – if you caught the advertisements, to encourage commuters to give up their seats to those who need them more. We hope the message has been sent across and all commuters would give a thought to those who need them more. Sir, we recognise that it is sometimes hard for the elderly and the less mobile to reach transport nodes. I know that Er Lee Bee Wah has brought it up three times. We would like to assure Er Lee Bee Wah and Mr Hri Kumar that LTA is presently working hard to study the feasibility of retrofitting overhead bridges in the immediate vicinity of MRT stations with lifts. LTA is carrying out exploratory works to determine whether it is technically feasible to do so. They are also looking at how the operations and maintenance of the lifts can be carried out. This is not a small exercise; it is actually a significant undertaking, so there is a need to study not just the technical feasibility but also the cost considerations, and to weigh this against other alternatives before a decision can be made. So time is needed. Hopefully, the Members can give LTA some time to do this entire exercise. Another alternative suggested by Mr Hri Kumar is the signalised crossings. I am also glad to say that where possible, we want to provide signalised crossings at the road level, which is where the elderly and the less mobile would prefer or need most. And for this I will encourage Members to engage our Community Partnership Managers more because some of these are localised issues and it is important to share that input so that they can assess the situation at the local level and see where it is most needed. However, at roads with heavy traffic flow, it would be more feasible to rely on overhead bridges instead. As Members are aware, LTA is also building more covered walkways, and also providing covers for most of our pedestrian overhead bridges, linking them to the nearest transport node with covered linkways where possible. Assoc. Prof. Dr Faishal and Er Lee Bee Wah have raised concerns over bus connectivity for the elderly. LTA will assess each request carefully, and where there are opportunities to redeploy resources to meet these needs, we will do so. But not every need can be met, like not every measure can be implemented successfully. We will continue to engage the community to help us to gauge the right balance between the competing needs and requirements so that we can help those in need. On Er Lee Bee Wah's request to reduce the walking distance for transfer between different bus stops, LTA will be working out a proposal that can help address the concerns raised – this is a local issue – and will consult her and her constituents when ready. Ms Sylvia Lim and Er Lee have also asked for fare concessions to be extended to the disabled and polytechnic students, and more concessions for senior citizens. I understand the difficulties of the disabled. I understand that the request by the polytechnic students has been recurring. Mr Chairman, Sir, public transport concessions are determined and granted by the public transport operators. The costs of such concessions are cross-subsidised by other full-fare paying commuters. The operators will have to take this into account when considering any changes to the concessionary schemes. Nevertheless, we strongly encourage the operators to consider these requests. And they have in the past responded to such requests, by extending senior citizens concessionary hours to all hours except before 9.00 am on weekdays. So if you have any requests, do put it up to the operators. I believe that through engaging them, they can better understand your needs and maybe a resolution can be reached. As to whether the Government should intervene to provide concessionary travel, I think it is better to focus on providing targeted help or assistance to those who really need it. As you know, we do have initiatives that help the underprivileged or poor. An example is Workfare, which helps to supplement the income of low-wage workers, including the elderly. There are also others under MCYS like the ComCare Fund. These programmes will help the needy Singaporeans cope with the costs of living, including their transport needs. As you know, we do disburse transport vouchers as well. Let me now turn to cycling. Mdm Cynthia Phua has suggested that signs can be put up to remind riders not to ride on pavements where it is not allowed. Yes, we will consider putting up those signs, especially where cyclists riding on pavements when they are not allowed to is prevalent. I would urge all advisers to engage your Community Partnership Managers to identify some of these locations so that we can assess the situation and know where to put up those signs. Public education and enforcement on the proper use of the footpaths have to go together with the infrastructure. As you know, Tampines is the first cycling town in Singapore to have enacted by-laws to empower the Town Council to enforce the rules. They do that together with public education, where cycling clinics are conducted to complement enforcement. However, what LTA, together with the community stakeholders, will do is also to make sure that the infrastructure is comprehensive and complete by providing dedicated cycling tracks within our HDB estates so that cyclists can have their own space to cycle. We are trying to do this over the next few years, starting with towns which are more ready to facilitate cycling. Starting with Tampines, there are four other towns that will come on-board. Such cycling infrastructure will help, but it has to be complemented, as I mentioned earlier, with public education and enforcement. Tampines is the first town to start, and the other cycling towns are adopting different measures, I think it is important to let them evolve, and see how these different measures work out. We will monitor the situation before we implement other aspects, including enforcement. The current position is that the enforcement of the ban on cycling on footpath is under the Police. I ask for the Members' understanding. Let us monitor how the situation goes in Tampines and subsequently with the other towns, before we decide or determine whether a change is needed. Mr Chairman, Sir, at the end of the day, we really live in a very compact city state and, of course, society is changing, the demographics is changing. We need everyone to play a part and everyone to exercise due care, show a little consideration for the people around them. It would ensure that this city would become a more liveable place and a place that we can all call home.

Mr Charles Chong – two cuts, take them one after another.

Singapore air hub

Sir, 2009 witnessed the largest post-war decline in the aviation industry in history, both in passenger and cargo movements. Could the Minister tell us how the recession has affected growth of the air hub in Singapore, in terms of passengers, cargo and flights handled? What measures are being taken to enhance the hub status and the competitiveness of Changi Airport amidst the emergence of other airports with similar ambitions within the region and beyond? Could the Minister also tell us how liberalisation of our air services agreements with other countries, some of whom still do not provide us with equal reciprocal rights, have benefited our air hub and also air travellers?

Aviation development fund

Sir, on the Aviation Development Fund (ADF), the Minister announced the formation of a $100 million ADF in January 2010. Could the Minister provide more details on the objectives of the Fund and what projects would qualify for funding? Could the Minister also elaborate how CAA intends to disburse these funds and how companies, especially the SMEs, would benefit from such funding? The Minister also said that the $100 million will be disbursed over five years. Would more funds be committed should the ADF be depleted before the five-year period ends?

2.30 pm

Liberalisation of air services

Sir, Singapore has signed numerous Air Services Agreements in its quest to push for Open Skies Policy in the aviation sector. Over the years, the level of air services liberalisation has increased opening up more opportunities in the aviation industry. I would like to ask the Minister on the current status of liberalisation of air services. How has the liberalisation of air services benefited Singaporeans and Singapore companies, in particular, how has the the liberalisation of air services between Singapore and Malaysia benefited Singaporeans and our air hub? Are there tangible examples of how such liberalisation has benefited our air hub? Finally, what are the future plans in the liberalisation of air services in ASEAN and the region? Are there any plans to capitalise on the rise of Asia in the coming decade?

Mr Charles Chong, you have two cuts.

Budget Terminal

Sir, data on passenger movement growth from 2008 to 2009 indicate that passengers carried by full-service carriers at Changi Airport fell by approximately 9%, from 33.1 million in 2008 to 30.1 million in 2009. However, the growth of passengers transported by budget carriers during the same period rose by almost 54%, from 4.6 million in 2008 to 7.1 million in 2009. By all accounts, we can expect that this growth will continue at least in the foreseeable future. In the light of these figures, could the Minister tell us if CAA intends to expand the Budget Terminal or upgrade its facilities to accommodate growth in this new trend in air travel? Would the terminal also be made handicap-friendly where the elderly and wheelchair-bound passengers are able board aircraft without having to hire special lifting equipment to raise them into the aircraft and having to pay lifting charges that could amount to three times the airfares? Have the facilities of the Budget Terminal also been able to meet the requirements of budget carriers? And if so, would the Minister be able to shed some light on why some low-cost carriers still prefer to use Terminal 1 rather than the Budget Terminal despite the higher associated costs? Would CAAS be able to address these issues and make the Budget Terminal more attractive to budget carriers and, as a result, make air travel even more affordable?

Changi Airport

Sir, corporatisation of Changi Airport and the restructuring of CAA were completed on 1st July 2009. One of the objectives was to achieve a clear separation between the role of the airport operator and the airport regulator. Could the Minister provide an update of this restructuring? Have the Government's objectives been met and what have corporatisation and restructuring achieved? Could the Minister also provide details of the revenue yield and the cap determination exercise that was conducted in August and September of last year?

Maritime transportation

Sir, 2009 also saw quite a significant shrinkage in maritime activities in Singapore. With the economy on the mend, could the Minister provide an update of MOT's efforts to prepare and capitalise on the economic upturn and enhance Singapore's position as a global maritime hub? What measures are being taken to ensure that we do not lose our competitive edge in the maritime industry?

I am also concerned about the increase in costs that companies in the maritime industry may incur due to the upcoming hikes in the Foreign Worker Levy. How does the Ministry intend to encourage companies to innovate and increase their productivity rates in the maritime sector so that they can benefit from the new productivity and innovation credit and thereby offset their labour cost increases?

Sir, I thank Mr Charles Chong and Assoc. Prof. Dr Muhammad Faishal, who asked about the state of the Changi air hub and the benefits of our air liberalisation policies. The international aviation industry was badly affected by the economic downturn last year, but Changi fared better than we anticipated, helped by a strong recovery towards the end of 2009. Changi handled 37.2 million passengers in 2009, a marginal 1.3% decline from 2008. The December 2009 figures were especially encouraging – passenger traffic grew 9.7% year-on-year, recording the highest passenger volume ever of 3.83 million. The strong momentum continued into January this year, with Changi achieving a 10.1% growth year-on-year. In terms of aircraft movements, Changi actually experienced a growth of 3.6% in 2009 over 2008.

Air cargo handling, however, continued to encounter challenging conditions. Air freight volume through Changi slipped 12% to 1.63 million tons for 2009. Nevertheless, there are reasons for optimism as volumes recovered and grew 15.7% in December last year year-on-year.

Our Open Skies policy remains the mainstay of our air hub strategy. The benefits of liberalisation can be seen in the opening up of sectors between Singapore and key Malaysian cities. Despite the downturn, overall Singapore-Malaysia traffic grew a spectacular 41% in 2009 as a result of bilateral liberalisation of traffic rights. After declining for almost a decade, traffic on the Singapore-Kuala Lumpur (KL) sector itself rebounded to a 34% growth in 2009 from 2008. The Singapore-Kuching and Singapore-Kota Kinabalu sectors also experienced phenomenal growth, doubling in 2009.

Sir, liberalisation has brought tremendous benefits to the travelling public in terms of competitive ticket pricings and wider travel choices. For example, ticket prices on the Singapore-KL sector have fallen sharply, from as high as $400 before liberalisation to as low as $50 presently. Besides, travellers can now choose from an array of airlines, including Jetstar Asia, Tiger Airways, AirAsia and Firefly.

Apart from bilateral air services negotiations, we have also been actively pursuing liberalisation at the multilateral level. Within the region, two Multilateral Agreements (MA) liberalising freighter and passenger air services among ASEAN member states have recently come into force. A third MA, which will expand on the earlier arrangement to fully liberalise passenger air services within ASEAN, is expected to be signed this year. For the first time, ASEAN is also in negotiations with a dialogue partner, China, to establish a liberal air services regime.

Next, on the Budget Terminal and the low-cost carriers (LCCs) growth. Mr Charles Chong asked about the plans for the Budget Terminal (BT) in relation to the boom in low-cost carriers activity. In 2004, LCCs accounted for just under 2% of Changi's passenger traffic. Last year, LCCs carried some 23% or almost a quarter. We must continue to tap this exponential growth by ensuring that Changi Airport remains attractive to LCCs. The Budget Terminal was recently expanded to accommodate seven million passengers, up from 2.7 million per annum previously.

While we prefer to see more LCCs at the Budget Terminal, there are other factors to consider. First, some LCCs may prefer operating at the main terminals for connectivity reasons. Second, Changi Airport Group (CAG), as the operator, has to balance capacity and utilisation at the main airport terminals vis-a-vis the Budget Terminal. CAG has to work closely with the LCCs on the best arrangement for the airlines, and ensure adequate and appropriate infrastructure to meet the LCCs' needs.

Sir, all airport terminals today are handicap-friendly, and wheelchair services are available for needy persons. To support the no-frills business model of LCCs, the Budget Terminal was designed without aerobridges. Nonetheless, wheelchair-related lifting services are available at a commercial rate. Let me address Mr Charles Chong's query on the Aviation Development Fund (ADF). The ADF will comprise various incentive programmes to support initiatives to raise productivity, promote innovation and ultimately enhance the competitiveness of our aviation industry. CAAS will launch the Aviation Partnership Programme and the Aviation Innovation Programme in April 2010.

The Aviation Partnership Programme will support industry-level initiatives, encouraging the adoption of best practices or new industry standards or processes. An example could be the promotion of paperless freight documentation in the air cargo and logistics industry, which will result in cost and transport time savings.

The Aviation Innovation Programme, in turn, will support company-specific projects. This programme will support the development of new capabilities and growth of niches of excellence, eg, new business concepts and R&D projects to develop new products or processes.

I understand there has been much interest expressed by the SMEs in these programmes. SMEs with less resources to implement new initiatives and launch developmental work will find these programmes especially relevant as they can potentially enjoy up to 70% of funding for approved projects. CAAS will provide more information on these programmes shortly.

A budget of $100 million will be set aside for the ADF over the next five years and should the programmes be over-subscribed, we will certainly consider committing more funds for the ADF.

Sir, let me now move on to the restructured CAAS and corporatised Changi Airport Group (CAG). Last July, CAAS was restructured into a new CAAS to focus on regulatory and strategic functions; and the CAG to operate Changi Airport. Let me update the House on the progress of the exercise.

We have achieved a clear separation between the roles of the regulator and the operator – commercial functions and operations of Changi Airport are now carried out by CAG, while CAAS focuses on regulating aviation matters, providing air navigation services, and advancing Singapore's strategic interests in the international aviation arena.

Since corporatisation, both entities have been performing their respective roles well. CAG recently introduced a package of targeted, performance-based incentives called the Changi Airport Growth Initiative (CAGi) for its airlines and other airport partners for 2010. The programme represents a shift from past across-the-board relief measures, to more customised incentives designed to promote passenger and cargo traffic volumes at Changi. This is an early sign of the kind of new air hub innovative efforts we hope to see in the corporatised entity.

In August and September 2009, CAAS and CAG conducted the first exercise to determine the revenue yield cap (RYC) on aeronautical charges for the first regulatory period. The RYC is the maximum that CAG is allowed to collect from various aeronautical revenue streams per passenger per year. And these revenues, together with the partial subsidy from its non-aeronautical profits, will allow CAG to cover its aeronautical costs, including the cost of capital.

User consultation is a key part of this process as CAG is required to formally consult all designated airport users. And the RYC is set at a level that balances the incentive for CAG to innovate with the need to keep Changi Airport's charges competitive. And the exercise has enabled the two entities to better familiarise themselves with their new roles. While developments have generally progressed according to plan, the framework is, nonetheless, still new. We will, therefore, require time for all stakeholders in the system to become familiar with it and to test it out in practice.

Sir, in conclusion, 2009 has been challenging for the aviation industry. And while we start 2010 on a cautiously optimistic note, we are confident that our aviation industry is well-prepared not just for the recovery but also for the long haul.

Let me now move on to Dr Ahmad Magad's cut on the maritime sector. He asked what the Government is doing to position the maritime sector for the upturn and how we intend to encourage the industry to innovate and increase its productivity.

Sir, 2009 was indeed a tough year with our port recording a steep 13% drop in containers handled. Nonetheless, we maintained our global leadership in bunkering, vessel tonnage and overall container flows. The maritime industry remains a key pillar of our economy, contributing some 7% to GDP and employing more than 100,000 people in over 5,000 companies.

We are optimistic of 2010. Cargo volumes have picked up and freight rates have regained some ground. However, it is still too early to tell if the recovery is sustainable and the excess supply of vessels continues to be a structural problem for the industry. However, the Government will do whatever it can to keep business costs competitive, and we will extend the port dues concessions announced last year for another six months and take stock of the situation at the end of September.

To prepare for the upturn, we will continue to invest in port infrastructure for future growth. We are also pressing ahead with the expansion of the Pasir Panjang Terminals, and our port's size and overall connectivity will provide an enduring competitive advantage for our economy.

We are also enhancing our incentive schemes to help grow the services. Our programmes have attracted some 120 international shipping groups with business spending of S$2.8 billion annually; and six ship financing companies managing some S$3.5 billion worth of assets.

2.45 pm

The Minister for Finance has announced incentives during the Budget Statement for the shipbrokers as well as the Forward Freight Agreement traders. The MPA will release details shortly.

As for the hike in foreign worker levy, the impact on the marine sector is unlikely to be large. Nonetheless, the companies can still tap into several schemes administered by the MPA to encourage investments in process improvements and human capital and this will complement the Productivity and Innovation Credit scheme that Dr Magad referred to which was announced during the Budget as well. Nonetheless, we have the Maritime Cluster Fund, which is still available for companies to build manpower capabilities as well as the Maritime Innovation and Technology Fund, for MPA to work with industry partners to grow our maritime R&D capabilites.

MPA will harness technology as well to enhance customer service and the efficiency of our port services. One example is BunkerNet which enables the bunker industry to enhance their delivery and back-end processes through the strategic use of Information Technology.

Sir, I have a few clarifications. Number one is the COE system. I asked why there was a huge spike and Minister said because of over-projection. But if there is an over-projection, should that not be corrected at the end of the year, which means one year there will be a lot, the other year will be fewer. Why is there an accumulation over the last four to five years resulting in a sudden 30% jump?

Second clarification: moderating road usage. Apart from ERPs, I hope that the Ministry can consider more creative ways to upgrade road productivity. For example, currently, when I drive my daughter to Bukit Timah on Mondays, the traffic is good; but on Tuesdays to Fridays traffic is terrible in the morning. The reason is because Nanyang Girls, on Monday mornings, delay their class by one hour. I am not sure whether LTA can work with the surrounding institutions in tight situations and see how they can moderate their timing. It could save us a lot of time and that will up productivity for everyone.

Another clarification is public transport for the elderly as well as for the disabled. Could MOT seriously consider building this into your contract when you start to tender for the network system?

Last of all: taxis. I would like ask whether taxis are considered public or private transport? Or is MOT prepared to have a new category called shared-transport? Because there will be fundamental differences in philosophy and planning in policy.

Dr Lim's first question was how is it that we persistently had the over-projection. He thinks it should have washed this out in the following year. The reason is that we persistently over-projected every year. We spread it out over a certain period of time to correct it. But if we over-projected last year, and if for the current year it is over-projected again, we would add to the problem. We have done this for 10 years and it is exremely difficult to project. We have to forecast the economy, to project what is the demand going ahead. The economy is an important factor.

It is really not easy and, I guess, if the LTA chaps could have done that, they would not be in LTA. They will be "shorting" the market or "buying it long". The fluctuation creates a certain amount of policy noise. As I mentioned in my speech, in early 2000s, it looked as though 3% was okay, when that was because we were actually growing at 1%. And then in the late 2000s, we asked why is it all of a sudden so congested? We were making up for the earlier under-projections so the congestion starts to go up, and since we over-projected at the same time, we raised that spike. That is the reason it does not wash out because we continually made the same over-projection error.

On working with the institutions like Nanyang Girls, it is a good suggestion. We will have to work with the Ministry of Education, and employers, if we want to stagger the time. This requires a whole-of-Government effort.

The question on whether we should stipulate elderly concessions into bus tendering – as I have mentioned, we are not just looking at price, but we are looking at certain qualitative elements. It is a decision which the public transport operators would have to make if they want to put that as part of their bid. If you are saying that we should specify, I would be slow in doing that because as Mr Teo Ser Luck mentioned just now, to do this, you are really asking for cross-subsidies from full-fare paying passengers. We need to balance this and we have left it to the operators to do so. I think the critical issue is we do we provide help, for those in need, whether they are elderly, polytechnic students or disabled. And the answer is "Yes", except that we provide it in a different way. Some would say why do you not subsidise the specific expenditure? Then we do not have to stop at transport – what about electricity, utilities? We have said that is an inefficient way and it is far better for us to help the needy families with financial assistance, like the Workfare Income Supplement, and leave it to the needy families to decide how best to use the financial assistance, rather than to subsidise specific items that we think we should help them with.

The other question is taxis – where do I see taxis? As I have mentioned, taxis are really personalised door-to-door chauffeur services, closer to the high-end of private transport.

Thank you, Mr Chairman. I have three clarifications. It has been two years since Tampines became a cycling town. Now the whole of Singapore has become a cycling nation. The basic infrastructure cannot ensure that the pavements can accommodate two users, there is no education, no enforcement. The rest of the estates are facing increasing pressure by our residents on the safety of pedestrians. I would like to ask the Senior Parliamentary Secretary, how long does it take to undertake the study? We need enforcement for the rest of the estates.

Second clarification: in Lorong Ah Soo, I have about 100 blocks along the Lorong Ah Soo stretch. Presently, Lorong Ah Soo estate is only served by trunk services. The bus arrivals are bunched together and very infrequent, and the buses are always crowded. I am just asking for a simple feeder service to go to either Serangoon central or bus interchanges or the Hougang bus interchange. Can the Ministry look into it?

Thirdly, in the private estates, there are many condominiums being built up because the intensified land use of the private estate lands. I understand that for small condominium developments, there is no need for a traffic-impact study. But if the estate's road is very narrow and if there are many condominiums being built up, the private estate roads are heavily used as well. So I would like Minister to comment on that.

I will comment on the cycling query. I can appreciate that issue because my own constituency is not a cycling town where we implement dedicated tracks. I do see the number of cyclists increasing, some riding on pavements and, many a time, I wanted to stop them. At this point in time, the enforcement rests with the Police. What we can do now is to focus on education. We have started cycling clinics. They have started in Tampines, I think three sessions have been conducted. We are trying to roll them out in other towns as well. I have asked the LTA officers, the Community Partnership Managers, where there is a need and where the advisors request for it, these clinics can be conducted. The sessions are conducted by the Safe Cycling Taskforce and they work together with Singapore Sports Council on the literature – how you behave, how you can ride safely and what safety measures to observe and how they can co-exist with the pedestrians and cars. If there is request for such a course from any of the Members, do let us know. Let us focus on education first. We can also step up the enforcement and we will work with the Police on that. We will also look at the other towns where there are more and more cyclists to see whether we want to designate those as cycling towns.

The Member asked about feeder services in Lorong Ah Soo. I am not familiar with the details. The LTA will look into this. The other question is more about policy with condominiums coming up, surely we should look at what is the impact on traffic in that particular area. I think that is a legitimate point. If the LTA is not doing it now, I think this is something that they will look into.

Thank you, Sir. Four clarifications for my cut on concessions for the disabled for public transport. First clarification is that Minister did touch on the fact there are some vouchers available for the needy but I wonder if the Government is aware that in developed countries, the disabled are a distinct category recognised in its own right for concessionary travel, similar to the elderly. We have a system now for some concessions for the elderly, what about the disabled? Should that not also be recognised in view of the structural difficulties that they face because of their status?

My second point: the Senior Parliamentary Secretary earlier mentioned that the Government would encourage the PTOs to provide concessions but it will be left more or less to them. Would it be reasonable then to assume that the commercialisation of public transport really has actually taken away the layer of protection for the vulnerable group? Are we expecting these vulnerable groups to canvas their plight vis-a-vis these big commercial operators? Third point is, can the Government not assist the PTOs by, giving data or supporting a feasibility study as to how much this would really cause the PTOs if they were to provide concessions for the disabled. I think the number is small for they may not travel all that regularly except for those who work. So can the Government not assist in that area?

Lastly, I believe that the disabled group has been canvassing for this for quite sometime, maybe more than 10 years on this issue and there has not been any progress. It was reported in the press that in May last year, SBS was looking into this. I wonder if the Government can update us as to whether there is any outcome?

I note the studies and the situation overseas and how they treat the disabled as well as the elderly. We will take them into consideration as we do our planning going forward. At this time, the position that we have taken is that we will let the public transport operators decide. I do understand how the other countries are doing it and we will take note and review them.

As for the canvassing by the disabled group, I would say that they can make their request. If LTA has the data and the statistics, we could provide those to help these groups compile a study, and submit the study to the public transport operators for them to consider. I do not think that has been done before but we can always look at the current situation as well as the past year and see if any changes have taken place, including whether there had been an increase in the number of disabled commuters or the elderly, for them to propose it again to the public transport operators. I think this is as much as we can help with – to provide some of the information for them to compile the study.

As for the outcome, if the Member could help to repeat the question again –

Sir, it was reported in the papers in May last year that SBS was exploring the possibility of providing concessionary travel for the disabled passengers, first on buses. That was in May, so I wonder whether the Government is aware of any outcome or progress on this?

I have actually addressed it earlier. We take the position that the public transport operators will have to decide on that.

3.00 pm

But like I said, we strongly urge the public transport operators to consider those who are in need, and whether they could cross-subsidise some of these groups. Nevertheless, like the Minister has mentioned, we target those that are in need. We issue targeted help through vouchers, ComCare funds and other assistance schemes. That is the position we take today.

Ms Lim, any more clarifications? I can take one last clarification. Er Lee Bee Wah.

I would like to direct this to the Senior Parliamentary Secretary, Mr Teo Ser Luck. He mentioned that he needed some time to study the feasibility of providing lifts at overhead bridges at the MRT stations. How long would be required? On the concessionary bus fares: actually I am very disappointed with the response. It seems that we adopt a very hands-off approach, ie, leave it totally to the bus operators. I would like to urge the Ministry to put into the tender, at least as an optional item, the price at which they would give concessions to the senior citizens and to see how much would it cost us. So far, we talked about cost subsidy, but how much is it, we do not know.

I will address the question on how long the lifts would take. I will leave my Minister to talk about the tender.

We intend to complete the study by April. Once the study is done, we will look at the other issues. As I have mentioned before, there is the issue of costs, maintenance and replacements. All these need time to sort out. But the study itself will be completed in April.

The Member is saying why not we put the concessions into the tender. As I said, if we do a bus tender and we do it on a qualitative basis, we will allow them to do it on their own accord. They can say that this is the concession policy that they would put forward. But as I said, I will be very slow in stipulating to them how best to run the concession policy. As I mentioned just now, the critical question is do we help polytechnic students from low-income needy families? The answer is yes. As a Government, we help. So I am not quite sure where the disappointment is. The Government actually helps quite a fair bit.

On Ms Sylvia Lim's point about other countries subsidising the concession for the elderly or disabled. They have a model completely different from ours. Their model is basically a state-run system. If you look at all the European public transport operators, they are running a deficit of about 40%-60% in a year. This 40%-60% does not mean it is free. Where does the 40%-60% come from? It is through the taxpayers. We have decided that our model is to have commercially-driven entities, but with the Public Transport Council regulating them to ensure that fares remain affordable and service standards are not compromised. This model has worked well for us.

Sir, the journey to a world-class transport system, be it air, land or sea, is one that has no finishing line. We have come a long way since 1977 when I took a first public bus. The challenges that MOT face are multi-dimensional, from solving the problems of Nee Soon Zone "B" residents changing buses, all the way to escalators for overhead bridges as well as signal light crossings and the overall picture of whether our roads are too congested. I certainly thank the men and women in MOT for working very hard to ensure that we have a good system. Let me just take this opportunity, on behalf of my GPC as well as the House, to thank both Ministers Lim as well as Senior Parliamentary Secretary Teo for your answers. Certainly, we look forward to a more seamless flow of traffic –

Dr Lim, I am waiting for your withdrawal. We do not have time, you know. [Laughter.]

Lastly, to quote the Minister "that public transport should be a choice mode and it should not be the last choice for commuters".

With that, Sir, I seek your permission to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $467,333,600 for Head W ordered to stand part of the Main Estimates.

The sum of $5,167,811,600 for Head W ordered to stand part of the Development Estimates.

Order. I propose we take a 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 at 3.30 pm.

Sitting accordingly suspended

at 3.06 pm until 3.30 pm.

Sitting resumed at 3.30 pm

Debate in Committee of Supply resumed.

Head R – Ministry of Law

Opening up of legal sector

Sir, I beg to move,

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

It has been about two years since the Government sweeping measures to liberalise the legal sector. A measure that attracted the most headlines was to allow foreign law firms to apply for Qualifying Foreign Law Practice (QFLP) licence which would allow them to practise Singapore law in corporate and financial transactions. The key reason for this was to support the growth of Singapore as a financial centre and by staunching a brain drain of our local legal talent through creating opportunities for them to gain international exposure in corporate law without having to leave our shores.

I should declare my interest as a member of the Committee chaired by Justice V K Rajah which made those recommendations, which were subsequently accepted by the Government. So I do support this liberalisation. But the question arises: have these measures borne fruit thus far and what lies ahead?

I would like to ask the Minister, since the QFLP licences were awarded at the end of the 2008, whether this move has led to positive benefits for the financial sector. I appreciate that it may be difficult to come up with quantitative data, especially for 2009, which was a recession year. But have we at least obtained feedback from banks and corporates that this has led to greater breadth and depth of legal services available here, or that the one-stop shop concept of an international firm, which can also cover Singapore law issues, has materialised and delivered better service to its end-users?

Again, in terms of keeping our local legal talent, in particular those more interested in corporate law rather than litigation, have we witnessed more Singapore lawyers coming back to practise in international firms based here, or seen few of our lawyers leaving Singapore to pursue legal careers elsewhere? I think it is essential for us to track this as the liberalisation measures were debated long and hard and essentially adopted for the greater good of the country. If the hoped-for returns are not forthcoming, we need to ask if some modification or tweaking of the scheme is in order to try and meet the objectives behind it.

At the same time, I do hope that our own Singapore law firms are not overlooked. This is because we need our own strong local institutions who are steeped in our national culture and values, those who will not close their offices here when times are hard or when they are directed to by head offices thousands of miles away. This is much the same thinking that the Government had in liberalising the banking sector when it is stated that it hoped that Singapore would have two strong local banks which would stick by Singapore through thick and thin. The fact that we have three such banks now is a bonus.

At this juncture, I should further state my interest as a partner in a Singapore law firm as indeed are several other Members of this House. The concern here is that the top talent in corporate law and the cutting edge corporate transactions, for example, the large M&A deals, the major financings, the high profile projects, would gravitate to the international firms which can now practise Singapore law in those areas. What the Singapore law firms would be left doing would be mainly litigation and property conveyancing. An analogy may be drawn with Hong Kong where the perception is that corporate work is dominated by the international firms.

As the domestic market is being evaded by the international players, the local firms must spread their wings overseas. But penetrating an overseas market is not easy at the best of times and usually takes years. The international law firms have the size and financial resources to make those investments, the local firms less so. So how can the playing field be levelled up? For a start, it would be good if our leading local corporates, including Temasek-linked companies, could give Singapore law firms an opportunity to pitch for their work, both here and overseas. I do not mean to call for some kind of ruling or edict that the project must be awarded to a Singapore law firm at all costs. The award of any work must be decided on merit but the opportunity to bid for and be considered for the assignment would sharpen the competitive instincts of our local law firms. It would be further encouragement for our local firms if our own corporate clients did not discriminate against them when it comes to legal fees as anecdotal evidence suggests that they bargain less, and less hard, with foreign law firms.

I would also propose that the Ministry look into further financial incentives for local firms to market their services and open offices abroad. This is really the only way to develop an overseas market. But Singapore law firms are often deterred by the substantial costs. Allowing double deductions or extra allowances for such expenditure to open overseas offices would, in my view, encourage more firms to take the plunge. This is more effective than a concessionary tax rate on profits from overseas offices because, to be frank, most overseas offices result in losses for the first few years.

And if all else fails, perhaps the Government should re-look at the question of whether to permit local firms to merge, in the full sense of the word, with foreign firms. Ironically, this will better preserve their local identity as the local office in Singapore may have 50 or 100 or more lawyers who would form part of the merged firm, as opposed to an international law firm merely cherry-picking those two or three lawyers they need to complement their staff here. Nor should these permitted mergers be limited to United States or United Kingdom firms as the dawn of the Pacific Century may mean that the merger with a Chinese or an Indian firm is the way to go. I do hope the Minister would consider all suggestions in our drive to make Singapore the preamble legal centre in Asia if not beyond.

International arbitration

On the Singapore International Arbitration Hub, the recent opening of Maxwell Chambers, a dedicated centre for hosting arbitration hearings and the inaugural Singapore International Arbitration Forum at which our Minister gave the keynote address, marked a milestone in our development as a centre for international arbitration.

From the days long-gone by when many lawyers were unfamiliar with even the concept of arbitration, through the times when our Courts were perceived to be anti-arbitration, Singapore is considered by many to be rivalling Hong Kong as a venue for arbitrating Asian disputes. Indeed, some observers think we have overtaken them.

The benefits of these are obvious. Quite apart from the direct economic returns from companies briefing our lawyers for arbitration and overseas visitors staying at our hotels and patronising our shops and restaurants, it cements Singapore's position as a centre for legal excellence and where the rule of law applies. This has an intangible effect but no less real on the internationally-held view that Singapore is a good place to do business.

What else can we do to spur the growth of Singapore as an arbitration centre? The refurbishment of the building which is now called Maxwell Chambers as a venue for hearings has drawn rave reviews from users. We clearly have the hardware in place but we still need to look after the software.

Arbitrations fall into two main categories – those administered by an institution such as the International Chamber of Commerce for our own Singapore International Arbitration Centre and those who are not administered which are termed "ad hoc" arbitrations. Parties and ad hoc arbitrations are free to set their own rules and procedures for those proceedings. But the Government still needs to make sure that the legislative framework properly supports these arbitrations. That means they need to monitor developments in the arbitration space and be ready to make changes as they did following the court's positions in cases such as the John Holland, Jeffrey Tang and Dermajaya Properties cases.

As for institutional arbitrations, there is less we can do to change the rules and policies of international organisations like the ICC. But we can and do need to keep our SIAC Rules in tune with the needs of the international community. These include dealing with current thorny issues like joinder of non-parties, consolidation of proceedings and electronic document production.

One other aspect to be looked into are arbitrators' fees. This is important in winning over parties and international arbitrators towards using the SIAC. There have been concerns raised about the SIAC's scale of fees and its ad-valorem basis and whether it provides sufficient flexibility for arbitrators who have different billing practices.

The internalisation of the SIAC's Board by appointing leading foreign lawyers was the right move to take the SIAC through the next phase of its development. The review of its rules, which I understand is being currently undertaken by the Board, is the next important step to keep the SIAC relevant and flexible enough to gain a greater market share of international disputes.

The promotion of Singapore as a neutral and arbitration-friendly regime is another vital initiative to persuade foreign partners to select Singapore as the venue for their arbitrations. Just last month, there was an SIAC conference held in Mumbai, and which our Minister spoke, which serves to spread the word of the virtues of basing your arbitrations in Singapore and the depth of expertise available here. We need more such conferences and seminars, not just in Mumbai but in Delhi, Beijing, Shanghai, Dubai and Hanoi, to name but a few. So the Minister for Law will be kept busy in his travels. In this way, we can position Singapore as the venue of choice in Asia for arbitral disputes.

Our Singapore law firms are also emerging as players in the international arbitration arena, not just for arbitration held in Singapore but those outside as well. To encourage them to grow their practices, this year's Budget extends a concessionary tax rate on incremental profits for such activities. However, my concern is that this measure does not go far enough. To grant this concession only on incremental profits requires law firms to go through the classification of fees derived from qualifying and non-qualifying activities over the last few years which is not straightforward. Further, it penalises law firms that had already invested in these practices and started to derive substantial revenues from them even before this year's Budget. One can give any number of rationalisations for this limited concession but my point is that it is simply not attractive enough. It would drive more firms to devote their energies towards developing an international arbitration practice if all profits from such activities qualify for the concessionary tax rate. But in order to ensure that the concession met its objective, it could come with a sunset clause, say, five years, whereupon it could be reviewed to see if it should be extended, discontinued or modified.

Mr Chairman, the Government has made the right moves to develop Singapore as an arbitration hub and the process is there for all to see. We need to keep on being proactive and making adjustments to stay ahead of the competition and enhance the attractions for foreign parties to have their international disputes resolved here.

International arbitration hub

To develop Singapore into an international arbitration hub, the Government has put in place a slew of measures and projects. These include developing a strong arbitration capability and establishing the Maxwell Chambers, a world-class integrated dispute resolution complex. But in order to make Singapore truly an anchor for international arbitration, we will need to convince commercial entities to build into their contractual and commercial ageements dispute resolution clauses which state that Singapore should be the seat for arbitration and Singapore law the choice of law. How would the Government partner the private sector to help achieve this?

3.45 pm

Compensation for land acquisition

Sir, the compulsory acquisition of land has always been a delicate issue and is increasingly sold nowadays in the context of a rapid growth and changes in land use. Our Government is under pressure to deliver public services in the face of an already high and growing demand for land with just 710 square kilometres to apportion among competing land users and a population of five million to house. Planners and developers in Singapore are constantly challenged to introduce measures to optimise land use for Singapore's physical and infrastructural development. Under certain circumstances, the public interest will demand that privately held land be surrendered for the greater good of the community. This process of compulsory acquisition by the State is premised on demonstrating full transparency on the need for acquisition and the payment of a fair price to the appropriate owner.

Over the years, Land Acquisition Act has been amended to fulfil this premise. Despite all of this, there are still real challenges faced when it comes to convincing landowners of the land acquisition. The common hurdles are usually in the area of the land to be acquired, the compensation allowed for the land and upon apportionment of the compensation among the interested parties. Not surprisingly, the main contention is always the value of the acquired property.

Sir, to facilitate the development and project implementation by the various Government agencies, can the Ministry of Law update on the policy and the assessment of the need to support Ministries and Government agencies to acquire land for State development? Furthermore, how do we ensure that acquisition of land and premises are done in a fair, equitable manner and reflecting market value without delaying the total acquisition and transaction? Has the philosophy of land acquisition evolved over time? We need to ensure that the rules are in place to provide reasonable constraints on the power of the Government to compulsorily acquire land. This will in turn strengthen the confidence of the people in the justice system, empower people to protect their land rights and increase the possession of tenure security.

Criminal procedure code

Mr Chairman, Sir, the Penal Code was recently overhauled. The overhaul was timely and reactive to the changing nature of how crime and criminal activity are conducted. However, to augment these substantive changes, what is also needed is modern criminal procedure. Hence, an amended Criminal Procedure Code (CPC) should serve to enhance the good work that was done in the overhaul of the Penal Code. I would like to ask the Minister for an update on the amendments to the CPC.

Community sentencing options

Sir, with the 2009 amendment of the Criminal Procedure Code, the courts have greater flexibility in using community sentencing options for minor offences. This is indeed a positive direction in making Singapore a more forgiving and compassionate society.

Sir, among the community sentencing options available include the community service order, conditional discharge, day reporting order, mandatory treatment order and short detention order. All these options imply that our resources traditionally associated with incarceration can be saved.

There is pressure for more resources in the community to support the rehabilitation and treatment needs of the offenders. For example, are there enough helping professionals in the community to handle the mandatory treatment order cases? Counsellors and social workers in the community are already so stretched handling a myriad of cases. Is the social service infrastructure ready for such orders both in terms of professional capability and resource availability?

The outcome indicators of these community sentencing options must be a sense of remorse and more pro-social behaviour of the ex-offenders. Who monitors the process and outcomes of these sentencing options? How does the Ministry of Law plan to evaluate the effectiveness of these options?

Pro Bono spirit amongst lawyers

(In Mandarin): [For vernacular speech, please refer to Appendix A* ] As Singapore develops into a legal service hub, we should not forget the lower-income group who cannot afford the legal expenses. They should have access to legal services, too, if they need them. They may need legal advice on disputes with family members, neighbours or over business matters.

Mediation at the Community Mediation Clinics (CMCs) has helped solve many social problems associated with legal disputes. CMC's work is very commendable. What else can we do to help the lower-income people facing legal problems? I am pleased to note that residents now can seek legal help from Legal Aid Bureau and Community Legal Clinics at North West and South East CDC. According to my knowledge, many of these people also face a host of complex personal and family problems. After addressing their legal needs, we should go the extra mile to help them solve other issues so they can move on with their lives.

It is heartening to see lawyers volunteer their time and expertise to help the community. This should be encouraged. The pro bono service will help strengthen our social fabric and create a better society. I wish to ask:

Does the Ministry have any plans to encourage pro bono service from lawyers? It is said "Yangtze’s waves keep pushing forward", how will the Ministry ensure we have a continuous supply of pro bono lawyers?

How do we help the pro bono lawyers who are busy professionals to use their time more efficiently and provide better services?

How do we help the residents who do not know about the availability of such legal volunteer services? We should increase the publicity of such services by putting up notices at CCs, offices of unions, NGOs and grassroots organisations. This can help people who need the service to gain access.

*Cols. 4171-4172.

Pawnbroking industry

Sir, the pawnbroking industry started in 1875 mainly in the small businesses sectors giving out loans to walk-in pawners who presented valuables as collaterals.

Currently, there is an estimated 150 such businesses here. During periods of economic crisis and downturn as well as festive periods, there is often increased activity in this area. Recently, there have been several pawnbroking chain outlets set up nationwide. How are the licences for these outlets granted compared to the conventional pawnbroking shops we have? In line with the recent Bill passed on the regulation of moneylending industry, will the Ministry be considering some form of regulation in the pawnbroking industry, with a certain degree of flexibility, of course? Should we review and relook at the Registry of Pawnbrokers and their workings and guidelines?

Sir, I thank the Members who have spoken. I will respond to Members' comments on the legal services sector and on international arbitration.

Mr Alvin Yeo asked about the effects of our liberalisation measures on the growth of our financial services sector and the impact on local law firms. As I have told the House, in December 2008, we awarded six QFLP (Qualifying Foreign Law Practice) Licences and augmented the Joint Law Venture (JLV) Scheme. The legal services industry has since grown. In 2008, the sector grew by 4.2%, while in 2009, the expansion was 4.3%. Considering that the economy as a whole grew only 1.4% in 2008 and actually receded by 2% in 2009, the legal services sector outperformed the rest of the economy. With these new opportunities now available, our talent pool has been augmented. The total number of lawyers in Singapore has increased by some 450 between 2007 and 2009. That is about an 8% growth. Some Members may question whether that is a good thing. But, anyway, 2009, 233 students took Path A, compared to the usual 80 or 90 for DipSing previously. Almost three-quarters of them were Singaporeans, and included last year's top law student from Oxford, as well as New York and English law-qualified lawyers working in international law firms. The six QFLPs commenced operations from the middle of last year. As a whole, they have expanded their offices here and employed 18% more lawyers from a year ago. Some have also started new practice areas, such as arbitration. A new JLV has been formed between a Beijing-based Chinese firm (Dacheng), the largest firm in Asia, and a local law firm (Central Chambers). The total number of foreign law firms has also increased. Between 2007 and 2009, the number of foreign law firms grew by about 26% each year. We now have some 100 foreign law firms registered in Singapore. There has also been renewed interest in Singapore as a legal services hub for the region. Several foreign law firms, with a number ranked in the global top 50 in terms of gross revenue, have also established offices in Singapore. In time to come, together with the recovery of the financial services sector, the provision of cutting-edge legal services by law firms should help serve the financial services sector better. Mr Yeo has raised some specific concerns about liberalisation. His primary point was that Singapore law firms (SLFs) face stiff competition because work may move to the foreign law firms as the market gets "invaded" by them. As Mr Yeo acknowledged, he was a member of the Committee that came out with a clear recommendation to open up the market. At that time, I was a member of the profession, but not a member of the Committee. We know that the points made today by Mr Yeo were all made then, and the Committee must have carefully considered them. In a sense, there is a little reversal of roles here. I am responding on policies recommended by Mr Yeo's Committee to Mr Yeo who is now asking the questions which I assume were considered by the Committee. [Laughter ]

In answer, I think it is relevant to quote paragraph 7.28 of the Report. I quote, "One major concern for opening up the Singapore legal market by allowing foreign lawyers and FLFs to practise Singapore law is the potential economic impact on SLFs and the legal market here. These include: (i) the supposed adverse impact on small practices which have a focused domestic practice akin to "general practitioners" in the medical industry; (ii) increased competition from FLFs in high-end transactional work; (iii) continued upward pressure on salaries; and (iv) the impact on court proceedings." These concerns were considered and given little weight in the report. The report concluded that the potential benefits well outweighed the concerns. The central point I make is this: The issue now is not whether the opening up may affect some law firms. It conceivably may. The issue is whether it is beneficial first, for Singapore and, second, the legal profession as a whole. The answer on both counts is yes. Time does not permit me to elaborate – I have given elsewhere the reasons for saying that. Mr Yeo also asks if TLCs (Temasek-linked companies) and leading corporates can give work to Singapore law firms. The response of the private sector is likely to be that they will give work based on merit and value, as Mr Yeo acknowledges. It is going to be tough competition. Mr Yeo also spoke of the difficulties Singapore firms face in going overseas. The Committee at paragraph 7.38 came to the view that liberalising will help Singapore firms export their services and regionalise. At paragraph 7.51, the Committee stated: – "While the concerns of large SLFs – those that are likely to face direct competition from FLFs practising Singapore law – are legitimate, the Committee believes that they will benefit over time from the enhanced competition, be incentivised to regionalise, and also benefit from increased demand in Singapore legal services." The point, Sir, is that for lawyers as a whole, the options are much greater. But it will require that Singapore law firms, in particular the larger Singapore law firms, to prepare themselves for very intense competition, but that must benefit the market as a whole. The Committee certainly did not think that Singapore firms would be left only with litigation and conveyancing, which is one of Mr Yeo's concerns; and Mr Yeo and others in the Committee know that the examples of Hong Kong and Bangkok were specifically discussed. As to whether there should be reconsideration of aspects of the opening up, I think it is too soon to consider substantive changes to the policy,

which has only been implemented last year, or even to take a view as to whether the hope-for returns have or have not materialised. I will now move to arbitration.

4.00 pm Mr Alvin Yeo also asked about the growth of Singapore as a hub for international arbitration. Mr Christopher De Souza asked how the Government will promote Singapore as a seat for arbitration and Singapore law as the choice of law in arbitration clauses. We are beginning to see clear results from measures taken. Singapore has further anchored its position as the arbitration hub for the region, and I use that phrase advisedly. Over the decade, the Singapore International Arbitration Centre (SIAC) has grown from strength to strength. Just comparing 2008 to 2009, in 2008, SIAC handled 100 cases, and in 2009, it handled 160 cases – an impressive 60% jump. More than 70% (or 114 out of 160) of its cases were international, rather than domestic, cases. This is both a reflection of SIAC's growing international standing and Singapore's appeal as a venue for international arbitration. These figures relate purely to arbitration cases and do not include cases involving domain name disputes and mediations. It also does not include cases where only SIAC's facilities were used for dispute resolution. So the increase in caseload is a reality, not a padded statistic as is sometimes the case with some other places. SIAC has now positioned itself as a top international arbitral institution of choice. Last year, we saw the appointment of a blue-ribboned board comprising nine international leading arbitrators and arbitration counsels. These appointments bring a new depth of international expertise to SIAC and further boost its reputation as a premier international institution. I am told that the new Board is also updating the SIAC Rules. A draft will go out into consultation next week, and the target date for publication of the Rules is June. Mr Yeo mentioned the SIAC conference in Mumbai. I understand from SIAC that many more such conferences are planned. As an aside to Mr Yeo's comments, I am certainly not promising to go to each of those conferences. In 2012, the SIAC will host in Singapore one of the most prestigious international arbitration conferences in the world – the International Council for Commercial Arbitration. A 2008 report by the ICC International Court of Arbitration ranked Singapore the top city in Asia for ICC arbitrations and one of the five most popular venues alongside Paris, London, Geneva and Zurich. To complete the "arbitration ecosystem", the Government established Maxwell Chambers, a dedicated state-of-the-art physical arbitration facility. Last July, Maxwell Chambers started operations. By the time it was officially opened in January this year, it had already hosted more than 60 hearings. More than half of Maxwell Chambers' hearings involved foreign parties and are truly international arbitration cases. Our efforts have planted Singapore firmly on the world map for international arbitration. The Australians are looking to set up an international arbitration centre in Sydney, much like Maxwell Chambers. The Vice-President of an Australian arbitral institution has been quoted in an international journal as saying that, "with Maxwell Chambers and the promotion by its government, Singapore will always be the premiere choice because it is a hub between the East and the West." To further consolidate our position as a regional legal services hub and international arbitration centre, the Government has announced a new tax incentive which will confer a 10% concessionary tax rate for five years on incremental income derived from international legal services that are GST zero-rated. Generally, this will include all legal services connected to land and goods outside Singapore, and intangible legal services provided to overseas clients. Mr Yeo has suggested that the tax incentive for arbitration be applied to all profits instead of only to incremental profits. This may not specifically encourage law firms to undertake more arbitration work. It will mean that law firms can continue to do the same amount of work and still enjoy the tax incentive, which runs counter to the objective of the tax incentive to encourage more arbitration activities, and it will lead to erosion of the tax base. Hence, only the incremental profits will enjoy the tax incentive. Mr Yeo also suggested giving double tax deductions for the expenses of overseas branches of law firms. There are schemes already in place. IE Singapore, for example, administers a Double Tax Deduction for Marketing Development Scheme. We are happy to look at how we can support the internationalisation effort of the local law firms together with the relevant agencies and law firms which are interested. Although Singapore's domestic market is small, with the growth of Asia, there is great potential to tap regional opportunities that can be tapped from Singapore. The new tax incentive will push law practices in Singapore to handle more such work. This will further strengthen Singapore's role as a Global-Asian hub and a nexus for high value-added activities. Mr de Souza asked about promoting Singapore law as the law of choice. There is growing support for the use of Singapore law. In 2008, we amended the Legal Profession Act to also allow foreign law practices to participate in Singapore law work through Singapore qualified lawyers wherever arbitration is contemplated. This may also encourage them to use Singapore law as the governing law for arbitration. We have also given parties to an arbitration the flexibility to use any law and employ any arbitrator or arbitration counsel for hearings in Singapore. Our main objective is to position Singapore as an international arbitration centre. In many cross-border transactions, English or New York law may be used for a variety of commercial reasons. The market will decide these matters, but we want to anchor the arbitration in Singapore as far as possible. Next, I will respond to Mr Zainudin Nordin, who asked for an update on the Government's land acquisition policy and whether the philosophy towards acquisition has evolved over time. The Government acquires land for various public purposes, such as for the building of schools, hospitals, MRT, public housing and industrial parks. This has allowed us to build up our infrastructure rapidly and develop Singapore to what it is today. The Economic Strategies Committee has highlighted that as Singapore grows, there will be a greater demand on our land resources. We will have to intensify the current land use to make better use of our limited land-stock. We foresee that the power to acquire will continue to be necessary for Singapore's growth and development. We are, however, extremely mindful of the impact of any compulsory acquisition on property owners. Wherever possible, the developing agencies will try to minimise the disturbance to existing developments. They will do this through the use of planning and design methodology as well as innovative construction technology. However, in a densely built-up environment like Singapore, it is not possible to completely avoid affecting existing developments. Where acquisition cannot be avoided, each proposal for acquisition is carefully considered and undergoes a stringent evaluation process by the relevant Government agencies. Every Government agency that initiates an acquisition must provide full justification. They have to ensure that approval has been obtained for the intended use of the acquired land. They have to demonstrate that the proposed acquisition is unavoidable and the amount of land to be taken is at the minimum. For major acquisitions, they have to present their proposals to a Ministerial Committee comprising the Ministers for Law, National Development and the Minister-in-charge of the Government agency that has initiated the acquisition, eg, the Minister for Transport if the acquisition relates to MRT or a major expressway development. Finally, every proposal for land acquisition must be submitted to Cabinet for approval. Mr Nordin suggested that projects had been delayed in the past due to land acquisition issues relating to land area compensation and apportionment of compensation. It is not clear which specific project Mr Nordin is referring to. That should usually not happen. The usual practice is that agencies would have sufficient lead time to plan for a major infrastructure project, and would have factored into the planning process the time needed to sought out issues like land area to be acquired. Issues like compensation are provided for under the Land Acquisition Act, and the basis for compensation is clearly set out. If owners disagree with the compensation, they can take it up with the Land Acquisition Appeals Board, and this is done after the acquisition. So there should be no question of any project being held up because of acquisition issues. In 2007, we amended the Land Acquisition Act to provide for compensation based on the prevailing market value, for acquired properties. Affected owners will be paid fair compensations. Sir, Prof. Ho will respond to the other questions.

Sir, I will now deal with the four "Cs" – though they are not cash, credit card, car and condominium, but CMC, CLC, CPC and CBS, all of which I have been overseeing, although for the CPC only during the initial period, and I will end with a "P", not "pau", but pawnbroking. Sir, as society develops, we should guard against becoming overly-litigious. MinLaw therefore actively promotes community mediation as a means of settling relational disputes. We have set up three Community Mediation Centres (CMCs) across Singapore, supported by a panel of 139 trained committed volunteer mediators which, last year, conducted about 750 mediations, achieving a settlement rate of over 70%. Sir, the CMCs will work closely with key agencies, like the CDCs, Town Councils, Police, HDB branch offices and grassroots organisations, to get them to channel cases early to the CMC. We are also amending the Criminal Procedure Code (CPC) to strengthen the referral process and encourage the use of mediation to resolve community and social disputes. Sir, as mediation is a useful life-skill, MinLaw runs an extensive outreach that has introduced mediation concepts to 80,000 primary and secondary students and equipped them with conflict resolution skills. We recently also started a "Mediator Aide" programme to expose university and polytechnic students to CMC's work. These two programmes have long-term benefits. Sir, notwithstanding alternative means of settling disputes, some will still end up in court. We should therefore ensure that lower-income Singaporeans have access to affordable legal advice and services, if needed. This is where volunteer lawyers can make a difference. To the credit of the Bar, the rate of volunteerism amongst lawyers has grown. I hope the work of these volunteer lawyers will receive good publicity. On our part, we will do more to reach out to residents on the ground, a point that Mr Ong has raised. Last year, more than 400 lawyers from 33 law firms volunteered at the Community Legal Clinics, a joint initiative of the Law Society, MinLaw, Singapore Academy of Law (SAL) and the North West and South East CDCs. The Legal Aid Bureau (LAB) has about 200 active volunteer lawyers and, last year, they were assigned more than 1,800 cases, about a third of the Bureau's caseload. Many lawyers also volunteer under schemes like Project Law Help, which provides free commercial advice to non-profit organisations and help out in pro bono initiatives at the Supreme Court and Subordinate Courts. Sir, MinLaw will continue to collaborate with the Law Society's Pro Bono Services Office to strengthen our lawyers' spirit of volunteerism, especially in the younger ones – a point that Mr Ong also makes – by creating opportunities for them to work on actual cases. LAB is working with NUS to set up an elective Clinical Legal Education programme, where third and fourth-year law students will be trained to assist clinical professors in legal aid cases – I think primarily family law type cases. LAB is also participating in an SAL programme involving junior college students aspiring to study law. In addition, LAB and the Pro Bono Services Office are working with NUS and SMU to foster student interest in pro bono legal work. So with successive batches of graduating students, we will lay strong foundations to foster volunteerism in lawyers. Now, as some lawyers, wishing to volunteer, may not know how to do so, the Pro Bono Services Office recently published a "Guide to Legal Pro Bono Opportunities" on its website. Lawyers can now choose something in line with their interests and available time. To better understand volunteers' motivation, the Pro Bono Services Office will survey practising lawyers to gather data on their involvement in pro bono work. LAB has also gathered data from a survey of its assigned solicitors. The input collected from these surveys will be used to tailor messages and programmes to tap the volunteers' passion more effectively. As support from employers is a key factor, the Pro Bono Services Office is raising awareness amongst law firms of the value of fostering a pro bono -centred Corporate Social Responsibility culture, through seminars and articles in the Singapore Law Gazette. Volunteer lawyers enable our law firms to connect better with Singaporeans on the ground, giving them a human face. Sir, some firms have responded positively; eg, their senior lawyers hold round-table discussions with the younger ones on pro bono matters, guiding them on how best to dispense legal advice. I hope more firms and lawyers will take on pro bono work. Let us move on to Mr de Souza who asked when the CPC would be amended, basically seeking for an update. After the public consultation on the draft Bill closed in February last year, MinLaw organised a series of intensive Working Group meetings with representatives from relevant Government agencies, the Law Society, the Association of Criminal Lawyers, NUS, SMU as well as a number of senior lawyers in practice. These useful sessions enabled the Working Group to study feedback received and discuss the feasibility of proposals mooted. As a result, I believe that the Bill is now a better one.

Meanwhile, the Inter-Ministry Committee on Community-Based Sentences (CBSes), which I chair, has been coordinating amongst the relevant Ministries on how best to implement the new CBSes, which should assure Dr Maliki that we have been looking at how to implement them effectively.

4.15 pm

The review of the CPC is now complete. MinLaw will introduce the Bill in Parliament in the second quarter of this year and, at that time, we can have a full debate. Sir, on Community-Based Sentences (CBSes), which will be introduced under the CPC, will give the courts greater flexibility to mete out appropriate sentences to punish, deter and rehabilitate offenders of less serious offences. I think Dr Maliki has listed these. The new ones are the Mandatory Treatment Order (MTO), the Day Reporting Order (DRO) and the Short Detention Order (SDO), whilst we are enhancing the Community Service Order (CSO) and the Community Works Orders (COMWO). Dr Maliki is correct that resources have to be geared up. We are mindful of that. Nevertheless, we do not start from scratch as the concept of the CBS is not new. Therefore, we already have a platform to build on. So the new enhanced sentencing options, meaningful though they are, are part of a continuous fine-tuning of our penal system. I think Members will know of existing community-based rehabilitative and sentencing options which have been well-received by Singaporeans, such as the residential and half-way house schemes for drug addicts and the home detention scheme that has been introduced and enhanced. And, of course, the long-standing probation scheme, first for juveniles, and then extended also to adults. So we will build on these experiences and expertise. Another point is that these sentences target low-risk offenders whom the Courts assess to be able to serve their punishment in the community under proper supervision. Hence, I do not expect community resources to be unduly strained. Indeed, this enhancing of CBSes is a good opportunity for more volunteers and community groups to chip in. Some have done so; I hope more will do so. In fact, this COS response gives me the opportunity to get more volunteers to come onboard, whether it is pro bono work, whether it is helping young lawyers, whether it is helping out with CBSes. On MTOs which IMH will spearhead, there is currently already a channel for professionals to help offenders with psychiatric disorders. In the year 2007, the Community Court formed a Resource Panel comprising volunteer agencies to help derive viable solutions and aftercare plans for offenders. In this way, therapeutic, psychiatric, and rehabilitation assistance has been provided to more than one third of the cases dealt with by the Community Court that year, which included offenders with psychiatric disorders. Sir, on implementation and review, lead agencies have been appointed to implement the CBSes. MHA will implement the Day Reporting Order and the Short Detention Order; MCYS, the Community Service Order; and MOH, the Mandatory Treatment Order. Now, I can slow down, because I am okay for time. These lead agencies will monitor and evaluate the effectiveness of these CBSes under their purview. The Inter-Ministry Committee, which I have been chairing, will retain oversight and will review our overall CBS framework holistically at an appropriate time; so there will be still continual monitoring. It is work in progress. Sir, finally, let me assure Dr Fatimah Lateef that we take a balanced approach to regulating pawnbrokers. To protect the interests of the public, we apply stringent criteria to all applicants for a pawnbroking licence and require high standards from all registered pawnbrokers, regardless of whether they run a single or a chain of pawnshops, a point that Dr Lateef makes. At the same time, as pawnshops are commercial entities, we give them sufficient flexibility, a point Dr Lateef makes, to determine how they can attract customers and stay viable. Some pawnshops are run in the "traditional" way, as family-run businesses, to serve a niche neighbourhood market where customers prefer a more personal service. Some have introduced service innovations to better serve their customers. And yet others are larger pawnshops that have introduced new marketing programmes to attract new customers. We encourage healthy competition amongst pawnshops as it helps to improve customer service and give customers the best terms in pawn transactions. And, indeed, actually having more access to pawnshops is also one strategy in combating unlawful moneylending. Sir, just like what we did for the Moneylenders Act, we are reviewing the Pawnbrokers Act to strengthen its provisions, to ensure that it remains relevant and that it meets the requirements of the evolving business environment.

Mr Yeo, we have time for a clarification.

Two clarifications, Mr Chairman. I certainly was not seeking to reopen the debate on liberalisation. That debate has been done and, as I mentioned, I was on the side that was for it. My request of the Minister is for, if you like, an update on the progress we have made thus far: specifically, have we gotten feedback from the banks and financial institutions which are key players in the financial sector which we are trying to support? It is an enhancement of the level of service.

My second request for clarification relates to my call for leading local corporates to sort of allow Singapore firms a chance to pitch for their work – not to force them to use us, but to give us a chance to compete, and this becomes more relevant as Singapore companies venture overseas. Because if we cannot persuade Singapore companies to at least allow them a chance to tender for the work, it becomes even more difficult to persuade non-Singaporean companies. And this is not unknown. US and Japanese companies, just to name two, often bring their lawyers with them. And perhaps I could invite the Minister to comment on that.

Sir, I thank Mr Yeo for the two clarifications. On his first point as to whether there is specific feedback from financial institutions and others on the liberalisation and the new entrants, it is early days. Most of them started their practices only in the middle of last year. And as Mr Yeo and Members know, last year was probably not a banner year for financial institutions. But having said that, the feedback from the general industry has been positive. It has been positive amongst young lawyers, for obvious reasons, which Mr Yeo appreciates. I am sure his firm, like many other firms, are under pressure because young lawyers are being poached by the international law firms with remunerations which are somewhat higher. The feedback from clients and financial institutions has also been generally positive. So I think if we were to take a snapshot at this point in time and ask, has it worked out in the way that we envisaged? I think the answer must be, it certainly looks like getting there, though it is early days. And I would suspend judgment on this for some time, because when we implement a policy like this, which by its very nature has a very long-term perspective, we need to take our time to assess it.

As to the second point about encouraging our Government-linked companies (GLCs), Temasek-linked companies (TLCs), and so on, to use Singapore law firms, I think we have many CEOs and senior people within this Chamber itself – we know how the market works. It is not even specifically law firms. They look for specifically the kind of lawyer who can assist them in the specific matter. It is not much that the Government can do to even suggest to the corporates and private institutions that they should allow everyone to tender. But I think it is in the interest of the corporates, the GLCs, TLCs and others – the very nature of the process, it makes sense for them to open the process up, as much as possible, to all who can add value and then choose the best.

Mr Chairman, I would like to thank the Minister and the Senior Minister of State for their clear, concise, yet comprehensive – only three "Cs" – replies and, to that end, Mr Chairman, may I seek leave to withdraw the amendment?

Amendment, by leave, withdrawn.

The sum of $164,172,000 for Head R ordered to stand part of the Main Estimates.

The sum of $154,602,000 for Head R ordered to stand part of the Development Estimates.

Head S – Ministry of Manpower

Raising productivity

Sir, I beg to move,

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

Sir, last year, when the recession hit Singapore, tripartite partners worked tirelessly together to help companies cut costs and save jobs. Tripartism is our unique advantage and has helped us to quickly overcome the crisis even as other countries are still mired in deep conflicts over labour issues. Our excellent tripartite efforts are recognised even by the International Labour Organisation (ILO). Recently, a senior ILO official who visited Singapore described our relationship as the Rolls-Royce of tripartism, which the ILO has been sharing and intends to share further with other countries.

We must never take our tripartism for granted. We must ensure that every generation of leaders on the side of the Government, unions and employers understand this unique tripartite advantage that we have and continue to nurture and develop it. Indeed, tripartism has helped us overcome many past crises and ensured a smooth transition of our economy from a labour intensive to a skills intensive one, and now to an innovation and productivity driven one.

Sir, productivity is not a welcome word among overseas unions because of fear of job losses, pay cuts and overloading of workers. But, in Singapore, we have been pushing it for decades smoothly because of the greater trust and confidence among us and because productivity growth has benefited both companies and workers. Sir, Deputy Prime Minister Teo has explained about the role of the new National Productivity and Continuing Education and Training (CET) Council and how it intends to drive efforts to push productivity. I am greatly excited over the plan to build a first-class CET system. I would like to ask the Minister what are his plans to build such a system, what policy structures and mindset changes will be put in place, what are the measurables and deliverables, what are the timeframes for progress can we expect to see.

In developing the CET system, we must put a greater focus on our low-wage and older workers. Structural unemployment is not a thing of the past. It is still very much alive as we have a few hundred thousand workers with little education. I urge the Minister to look into schemes that will make it easier for low-wage workers to upgrade their skills to earn better wages as they continue to face many barriers in training. What plan does the Ministry of Manpower (MOM) have to improve their literacy skills, help them cope with the potential loss of income while attending training and persuade employers to take responsibility for the training of the low-wage workers?

But job training alone is not sufficient. We also need stronger efforts to push for job redesign, job recreation or upgrading jobs so that workers can add greater value and earn higher incomes which is even more critical now and should be the key focus of the CET. At the same time, I urge MOM to encourage workers to take greater ownership over their own training. The Workfare Training Support (WTS) scheme is a good move but making it dependent on companies sending their low-wage workers for training is too restrictive, especially for our contract workers who work for very short periods. I would like to seek a clarification from the Minister whether the WTS can be paid directly to workers so that their training is truly portable and worker-centric.

A superior CET system also requires first-class training institute with high calibre trainers that can provide quality training. Our training quality varies considerably depending on the institution. There are also many small players in the training field who do not have the means to upgrade themselves and this affect their quality. We should also partner world-class global training institutes so that we can shorten our learning curve and benefit from their experience. I would like to hear from the Minister on his plans to upgrade the industry to support a first-class CET system.

Madam, to succeed in our efforts, we must have people at all levels with the knowledge, skills and capabilities to drive innovation and productivity. Managers have to take the leadership and empower and motivate workers to give of their best. As I had mentioned during the Budget debate, incompetent managers who use unethical or intimidating tactics to raise productivity will do more harm than good. I would like to ask the Minister what plans are there under the CET system to train our workers, supervisors and managers on productivity.

Madam, higher productivity is not an end in itself but merely a means towards a better life. It is therefore important that we keep faith with workers so that they can see the link between their efforts to push productivity and wage growth. If this linkage is not evident, workers will see it as benefiting only companies and have little incentive to support it. I urge the Ministry to promote implementation of gain sharing schemes among our companies. Such schemes should be transparent, have clear objectives, agreed KPIs and

provide how the profits or savings will be distributed. It could also form part of the annual NWC guidelines.

4.30 pm

Our efforts on productivity can be derailed if we do not address the foreign workers challenge which goes beyond the levy. MOM has done a good job in taking enforcement against errant employers but I urge the Ministry to do more. Despite the increase in the levy, companies can still employ foreign workers cheaply by paying them lower salaries or making them work very long hours or during their rest days or public holidays without paying overtime. So even with the higher levy, it is cheaper for them to employ foreign workers. We need stronger enforcement of our labour laws to prevent exploitation and abuse of foreign workers by unscrupulous employers. We also need more stringent laws against errant employment agencies who continue to bring in foreign workers on false promises of jobs that do not exist or use phantom workers to benefit from a higher dependency ceiling. Such employment agencies give the industry a bad name and create a poor image for Singapore.

Are there any plans to tighten the laws on employment agencies so that we can have a more progressive and responsible industry with high standards? Are there also plans for stronger enforcement action against errant employers?

In my view, with our strong tripartism and very active labour market policies, we should have no problems in ratifying International Labour Conventions 144 on Tripartite Consultation and 122 on Employment Policies. I would like to seek the Minister's response on this.

In conclusion, Madam, I look forward to the establishment of our CET system. I feel that this is the most meaningful and tangible way of improving the lives of our workers in a sustainable manner so that they can continue to build up their skills, hold better jobs and enjoy higher wages.

Tripartism

Madam, we have weathered many crises: in 1985 – recession; 1997 – Asian financial crisis; 2001 – dot.com bust; 9/11 – terrorist attack; 2003 – SARS outbreak, and to the current global economic downturn. In all these crises, tripartism has played an important role in tackling the critical issues which affect our economy. This unique brand of tripartism also ensures our social and economic progress. It is also through this tripartite platform that the labour movement airs our workers' concern and work together with the Government and management to raise the effective retirement age and ensure more older workers are re-employed, among others.

All these years, the tripartite partners have also taken the initiative to launch job recreation skills training and upgrading, and promotion of fair employment practices. In this aspect, may I ask the Minister what are the measures to strengthen and institutionalise this strong tripartite cooperation?

Skills Programme for Upgrading and Resilience (SPUR) Plus

Many small and medium enterprises (SMEs) in the manufacturing industries face challenges in sending their workers for training and skills upgrading. Apart from cost issues, employers face time and resource constraints and find it difficult to send workers for training during the day as there is a constant need for them to utilise their manpower resources.

For the employees, many face challenges in attending training programmes after a long day at work. To help overcome this hurdle, could the Government facilitate this by considering the provision of mobile training centres that can be stationed close to flatted factories. This would encourage more employers in this sector to send their workers for training and skills upgrading. Their workers can walk a short distance from the flatted factories to the mobile training centre instead of having to travel long distances after work, as flatted factories can sometimes be situated in less accessible parts of the country.

In addition, having these mobile training centres close to their workplace would help workers save on transportation cost.

Mr Heng Chee How, you may take both cuts together.

SPUR and productivity improvement

Madam, the Skills Programme for Upgrading and Resilience (SPUR) was introduced at the onset of the global recession. It started on 1st December 2008. And this programme has helped many companies and workers upgrade their skills and capabilities while tiding through the recession. We know the reality and the value of this programme from the union movement – it made a lot of real difference on the ground for the companies and sectors that were badly hit.

Now, as the Singapore economy emerges from the recession into a period of recovery and as the labour market tightens following the absorption of excess capacity, I have two questions to put to the Ministry of Manpower (MOM). First, would the SPUR programme be continued beyond its two-year announced lifespan that ends in November this year? If it is to be extended, how can it then be repositioned as a booster for the productivity drive?

In my view, it is very important that we do so and send the right signals clearly to companies and workers. Whether we are speaking of innovation or of enhancing the skills of workers so that they are able to work more productively with better technology in upgraded jobs, we cannot escape the fact that continued training and development would be a pre-requisite for sustained improvement and success. We must reassure companies and workers that the Government's commitment to the strongest possible support for training and development of workers will not weaken in the recovery nor will it just be about building better physical infrastructure. The continuation of the SPUR programme, or whatever name the successor programme might be called, will be a strong and specific manifestation of that commitment.

Secondly, with the economic recovery, we have read media reports that participation under SPUR has declined, as companies and workers price working, fulfilling orders or working and earning overtime above going for training. We should take this seriously. The supply of training, whether building more schools and providing the courses, supply does not equal the demand for training. And if companies and workers' appetite for training is weakened or distracted in the recovery, then capability building will be hampered and the pace of productivity improvement will be impeded.

I therefore ask MOM whether and how will the terms of SPUR be enhanced so that companies and workers would continue to be attracted to training even in non-recessionary times.

Productivity consultants

Madam, with the drive towards sustained higher productivity, many more companies are expected to get help with their productivity plans because not all companies will have the internal know-how of doing so. Will this lead to a shortage of consultants who are capable of providing such services?

It is important that there be a sufficient pool of such expertise so that the pace of productivity initiatives will not be constrained by such a bottleneck. It is also important to have an adequate pool of such expertise so that the resources poured into such initiatives will yield real results and not be wasted through sheer busyness or misguided through a flurry of rank-seeking activities on the part of unqualified entities and persons offering so-called "consultancy".

These consultants would also need to keep current with advancing knowledge and best practices internationally. What plans are there to ensure that such a bottleneck would not form to the detriment of productivity improvement efforts? What steps will be taken that such capabilities continually sustain and nurture so that the endless journey of productivity enhancement will not lose steam due to jadedness or a disconnection from international knowledge, ideas and best practices?

Productivity

Madam, levies on foreign workers will be increased quite significantly over the next few years in order to encourage productivity growth. Much scope for productivity improvements is envisaged in the construction industry where productivity levels are low.

I recall, as a member of the previous National Productivity Council from 1988 to 1993 and the National Productivity Board from 1990 to 1996, the many higher level deliberations and campaigns that were conducted to improve productivity, including that of the construction industry. What was then known as the Construction Industry Development Board, it set up a taskforce which issued a report in 1992, specifically considering how Singapore's construction productivity could be raised. Even at that time, there was a conscious effort to reduce our dependency on foreign workers by raising productivity. In 1999, another high level committee launched Construction 21, with more recommendations to raise productivity in the construction industry. However, productivity in that industry continued to decline between 2% and 4% from 1995 to 1999. Even after implementation of Construction 21, productivity growth averaged a meagre 0.7%.

Despite whatever productivity improvements or job redesign we are able to achieve, I think that there will always be a need for workers to carry out jobs that Singaporeans find less attractive. Even if we use the most innovative methods and work more productively every year, there may never be enough Singaporeans to replace the thousands of foreign workers who currently accomplish tasks that Singaporeans seem to avoid.

Under such a situation, raising foreign worker levies across the board and consequently driving up labour cost in the hope that the market will then react by raising productivity may not have the desired outcomes. We had, in the past, tried to drive productivity growth and attract high value-added industries by raising the cost of labour through significant National Wages Council (NWC) wage increase recommendations year after year. However, it did not achieve the desired results, and instead it led to many businesses becoming less competitive and contributed to the 1985/1986 recession.

We should learn from our past experiences in order to avoid repeating past mistakes. Could the Minister tell us what measures his Ministry would be taking that would be very much different from our previous efforts to tackle the old problem of raising productivity? What measures will be taken to change the mindset of Singaporeans towards jobs that are currently considered less attractive, such as those in construction, ship repairing and cleansing industries?

Continuing Education and Training (CET) system

Madam, when we launched our 10-year Continuing Education and Training (CET) Masterplan in 2008, we sent a clear signal that the training of adult workers is one of Singapore Government's top priorities. The aim is to upskill the Singapore workforce for future landscape and sharpen their competitive advantage.

The education and the CET system form a life-long learning programme to help workers add value to every Singaporean's career, develop their niche areas, capitalise on new growth opportunities and remain relevant. CET is accessible and affordable across the workforce demographics. And more recently, it was announced that the Government would invest in developing two new CET campuses, and also grow the training capacity to meet the future needs.

As we enter 2010, can the Minister update the progress of our CET system? As our economy restructures and moves towards more knowledge-based activities, it is evident that the less educated and less skilled workers are finding it increasingly difficult to find new jobs. Despite the Government's intervention, Singapore's structured unemployment problem seems to have not abated.

As the economy recovers from recession, this leads to my next question on the effectiveness and the responsiveness of the CET in tackling the job skills mismatch and the structured unemployment issues. We have made changes in the retraining programme to get workers into new growth sectors, such as the Integrated Resorts, hospitality and healthcare. What are the acceptance and recognition levels from the industry of the Workforce Skills Qualification (WSQ) and the Employability Skills System (ESS) certification? Are our own Government, Ministries and agencies employing workers based on skills? Can MOM share its strategy to enhance the image of skills-based profession and the large potential of career progression for skills-based professionals?

Contract and part-time workers

Madam, as at June 2009, there were 87,400 resident employees on short-term contracts of less than three months and 156,200 residents on part-time employment. About half of these employees are in the older age group and a majority of them have lower educational qualification with a gross monthly income of below $1,000.

I am of the view that the number under this category of employees would increase over time, because companies want flexible manpower and being able to respond faster to changing demand and cost variation as business environment changes. Secondly, as our society matures with an increased number of ageing employees, more people may prefer such mode of employment as seniors may not want to work full time.

Contract and part-time workers may not necessarily be low wage and low productivity. Some studies have shown that part-time workers can be as productive as full-time workers and companies employing part-timers do not necessary suffer low productivity. I understand that in Netherlands, a relatively large share of the workforce works part time, achieves high labour productivity. Hence, I believe that there is much room for improvement in productivity and income of our contract and part-time workers.

Madam, given the current educational profile of the employees in this group, a targeted approach is needed to improve the productivity and income. The ESC proposes to introduce a broad-based incentive scheme to encourage employers to send their workers for training and develop structured programmes to train and place low-wage workers in better jobs. I would like to know what are the detailed mechanisms and new initiatives to work in line with ESC's recommendations and to raise the productivity of this group of workers.

Next, with the likely trend of short-term contract and part-time workers to increase in the future, I would like to know whether the Ministry of Manpower (MOM) will develop a strategy to include such employees in the productivity upgrading process.

4.45 pm

CET innovation

Mdm Susila is a 48-year old widow living in Toa Payoh, she has three school-going children, her husband died two years ago after a bout of illness. Her HDB flat is gone and she now rents a room from a landlord. She earns $800 to $900 per month working in two jobs. One of her sons has behavioural problems and requires counselling. She is barely making ends meet and, frankly speaking, her home situation is quite difficult. So, for low-wage workers like Mdm Susila, CET is an alien concept – it is too big a word – and training to upgrade her skills to improve her job potential is really very far from her mind.

Madam, I would like to raise the concern that traditional methods of delivering our continuing education and training may not work for all low-wage workers and their SME employers. I think that, perhaps, the Ministry of Manpower should consider besides the tax incentives that we have put in place, whether through the Workforce Development Agency (WDA) we should seriously consider expanding some of the new methods of training delivery that have already been pioneered and piloted. Examples include the on-site bite-sized training concepts and also we could introduce ideas like using mobile buses at housing estates and industrial estates to make it easier for these workers to access to training. The other idea I suggest is that MOM consider that we might have to use vernacular languages to outreach and expand the course offerings so that they, perhaps, could be available in mother tongues too. And we may need to find ways to fund these kinds of programmes more generously. In some of the cases, I think even community support networks might need to be put in place.

Dr Ahmad Magad.

I am not speaking, Madam.

CET qualifications

Madam, as someone who has been deeply involved in adult training for more than a decade, I strongly support providing more upgrading pathways for our adults who may not have had the luxury of a full-time education when they were younger.

Deputy Prime Minister Teo Chee Hean announced last week that the Government would look into providing stronger linkages and clarity between our academic and skills qualifications. This was to provide upward mobility for workers and give employers greater clarity on how different qualifications relate to one another. It was also announced that the Government would be studying models from other countries. I would like to seek the following clarifications: First, has the Government identified any countries to be studied so far? For instance, is the Government considering a comprehensive system like the Australian qualification framework to link school-based vocational and higher educational qualifications? Second, regarding the new National Producitivity and CE Council, it was announced that it will comprise private sector businesses, unionists, and Ministers and Ministers of State. Since the Council would also be overseeing the development of the new CE system, should there not be representation also from the educational institutions? And, finally, is there an approximate timeline for the Government to roll out the new CET system?

Productivity, innovation and CET

Madam, I wish to put on record the good work of the Manpower Minister in chairing the Inter-Ministry Committee on the concerns in residential areas with a high density of foreign workers. The Committee's collaboration with grassroots leaders in deploying uniformed patrols, for instance, has received very good feedback from the ground.

There are three areas that I seek to draw the Ministry of Manpower's attention to. One is the plea in my Budget speech for Government's leniency in foreign workers levy and staff ratio at VWO-operated nursing homes and centres for the disabled adults. Two, in the area of CEO engagement and role in the overall drive for productivity and innovation in our country. Madam, in recent surveys by the Boston Consulting Group, two-thirds of the top executives surveyed identified innovation as a top strategic goal. When asked, however, why there is a lack of sustained innovation, the two top reasons quoted were (1) lack of time; and (2) lack of management commitment.

Madam, as early as 20 years ago, gurus like Jim Clemmer have long advocated that staff training is only one of the strategies leading to good culture, service excellence cultures, for instance. In culture changing, Clemmer called for the "Firing of 12 Cylinders" where CEOs and senior managers must take planned efforts in other critical interventions like signaling commitment, listening to internal/external customers, job restructuring/redesigning, setting up systems, reward and recognition, standards and measures. In short, more than worker education and training. Madam, I urge the Minister to develop specific Learning Roadmaps for the CEOs and their senior managers which appear to be missing in current WDA and e2i efforts. Knowing their learning profiles may be different, I ask the Ministry to conduct a rigorous Learning Needs Analysis for this group and to put up online learning resources on Productivity and Innovation that would enable them to learn anywhere, anytime; in their homes, at the workplace or the airports. Ted.com and www.earthacademics.com are good online learning resources for senior management that can serve as reference. We can blend these with face-to-face networking and sharing forums and this blended approach can be looked into.

Thirdly, Madam, I wish to take the ESC's goal for Inclusive Growth seriously and seek MOM's active role to support a specific category of vulnerable workers in Singapore. My volunteers and I recently conducted a study of the employment of special-needs staff by Kentucky Fried Chicken (KFC) which has been exemplary in this space. What amazed us was that whilst KFC received a lot of media attention over the years and piece-meal help for the hiring of deaf, physically disabled, visually impaired, intellectually disabled staff; there is little national effort to drill down to the structure, the systems, the processes and the training programmes. In short, what really works beneath the iceberg. If these systems and processes could be codified, customised and communicated; they can be scaled operationally across disability groups and benefit the entire disabled and, perhaps, even relevant able-bodied workers in Singapore.

Madam, it is not sufficient to keep quoting the mini successes here and there, of compassionate disabled-friendly companies like KFC, Starbucks, Holiday Inn, BizLink and Mr Bean. I ask the Minister to facilitate the setting up of a formal Continual Education and Training Unit for the Disabled that leverage on the excellent work of the current e2i and the upcoming major CET Centres. This vulnerable workforce needs lifelong learning like every other typical worker and PMET in Singapore. Manpower Minister Gan Kim Yong has left a legacy in the education of special needs students when he was in MOE. The same children he has helped educate are now growing up or grown up. Do not let them become one of the dismal statistics of people adults with disability stay at home.

Let us do the right thing and make a difference to this vulnerable workforce who, like you and I, are sons and daughters of Singapore, not step-children of Singapore.

Loans for continuing education

Madam, the Government has frequently hightlighted the importance of continuing education for all Singaporeans to upgrade their skills and increase their productivity and employability. It also provides financial assistance to needy Singapore citizens until junior college or centralise institute level. This is commendable. However, in this day and age, more and more employers demand education levels beyond junior college. Technical qualifications are also critical.

Currently, the Government provides some relief by allowing Singaporeans to use their CPF savings from the Ordinary Account to pay for their children or their own tuition fees. However, only full-time subsidised course at approved educational institutions are included under this scheme. For example, institutions like the BCA conduct many useful, practical courses. However, those who are not employed or are self-employed may not obtain a subsidy or have a sponsor for their course fees. This is particularly so if they wished to switch industries and pick up new skills. If they do not have the means to pay course fees, they must turn to commercial banks, but it is not easy to secure study loans from commercial banks. There are strict eligibility requirements, it only applies to certain designated partner institutions, there are minimum income requirements and some applicants must even furnish guarantors. Furthermore, repayment terms of commercial banks are not rather friendly. In some cases, payment kicks in after draw down, interest rates are high and the repayment period is strict.

Could the Minister look into the possibility of establishing a Government-run student loan programme to help Singaporeans of all ages improve themselves, whether by way of a post-graduate degree or technical diploma? This would be in line with the Government's vision of a learning nation, a social environment that promotes lifelong learning in our people. The downsides are limited, frivolous cases can easily be detected and rejected, and most recipients are likely to pay back their loans. The upsides, however, are unlimited, a better educated and trained Singaporean will be an asset to his employer and the country and will return the investment many times over.

The institution of such a facility will also be a clear message to all Singaporeans of the Government's commitment to lifelong learning and that it is determined to help Singaporeans achieve the highest potential.

Talent hub and career destination

Madam, as Singapore continues to drive quality and productivity to support growth, how will Singapore continue to ensure that we remain a choice talent hub and career destination to retain local talent and attract quality foreign talent?

Increasingly, Singapore competes with many other global cities and economies for talent. Can the Minister share on how Singapore will build up our talent base and, more importantly, retain talent? This will apply to both local and foreign talent. How will Singapore differentiate herself as a talent hub and, hence, be an attractive career destination for top local and foreign talent?

The Economic Strategies Committee's Sub-committee on making Singapore a leading global city has proposed three strategies and recommendations on how to achieve this vision. One, establishing Singapore as Asia's most liveable city, developing Singapore into a new Asia's hub for innovation and creative enterprise and making Singapore the best home for talent. These recommendations will require huge efforts and investments. How does the Minister see Singapore moving forward with these strategies to achieve the impact and the vision that has been set up? Can the Minister share on how he sees Singapore as creating a conducive and stimulating environment to attract talent, enabling them to pursue their interests and ambitions? How will Singapore build the clusters and the eco-systems that will be necessary to attract talent and, more importantly, to retain top talent?

Work Permit quota

(In Mandarin ): [For vernacular speech, please refer to Appendix A *] This year, the Budget's emphasis is on training workers and improving their skills and productivity. The Ministry of Manpower will gradually raise the foreign worker levy and reduce our dependency on foreigners.

I have a few suggestions. The demand for foreign workers differs from sector to sector. For instance, the construction, maritime and heavy industries have been having difficulties in recruiting Singaporeans and most of their workers, up to 95% , are foreign workers. If we reduce the foreign workers by a large quantum in a very short time, there will be a significant adverse impact on these industries. Hence, the Ministry of Manpower should continue to allow them to employ enough foreign workers to contribute to our economic development.

As for industries whereby Singaporeans can undertake foreigners' work, we can reduce the dependency ratio and reserve the jobs for Singaporeans. When implementing the quota policy on foreign workers, we must make sure that we take into consideration the needs of the various sectors and formulate the right policies. We encourage the employers to also train their foreign workers to improve their productivity, but employers worry that the foreign workers are not able to remain in Singapore after their training. We do not want to become a worker training centre for other countries. Hence, I suggest that, for two-year work permit holders, we extend the work permit validity to four years after they have completed their training so that they can apply what they have learned to their work and the training investment made by the Government and the companies would get a better return.

*Cols. 4173-4174.

Manpower shortage and foreign workers

(In Mandarin ):[For vernacular speech, please refer to Appendix A*.] Madam, fellow Members of Parliament, a very good afternoon to everyone. Today, I would like to raise two suggestions concerning manpower shortage and foreign workers. First, we ought to acknowledge the contribution of foreign workers. Second, we hope that the current proportion of foreign workers in the workforce will remain unchanged.

In the past half year or so, members of the public and press forums have been rather unfair to the foreign workers. In the call to raise productivity, foreign workers have either intentionally or unintentionally been regarded as being an unwelcome group and not worthy of being respected. They have left their respective countries of origin, and left behind their families to work in Singapore. It is not difficult to imagine what hardship they must have encountered. Although they are foreign workers, they have rendered valuable contributions to Singapore. Their presence fills a much-needed gap as they have taken up jobs shunned by local workers.

Singapore's birth rate is very low. Unless we can add to the population by having more babies, the manpower shortage will only become more and more severe. According to a survey by the Singapore Chinese Chamber of Commerce and Industry (SCCI), 64% of employers have declared that the key reason of employing foreign workers is that locals are unwilling to take up backbreaking jobs.

Take the renovation industry, for example. Not only do raw materials and debris need to be moved manually , but maintaining a clean environment also needs manual labour. Without foreign workers, the skilled workers would have to do this type of work themselves. This would increase costs, and be very unproductive. The renovation contractor has to consider using technology to resolve this manpower problem. Besides purchasing and installing automation equipment, he also needs to consider the design of the HDB corridors, lifts and car parks. This is not something they could resolve on their own.

Singapore is working hard at creating a leading global city, but if we tighten the foreign workforce, this will have a great impact on industries such as construction and renovation. This would also affect the lifestyle of tens of thousands of Singapore households. In Parliament last week, I was very happy to hear Member Ong Ah Heng speaking up for the foreign workers and employers, stating the plight of the employers. The tripartite mutual understanding and cooperation is Singapore's strength. I hope that the new National Productivity and Continuing Education Council will engage unions and business leaders who understand the grassroots problems and practical situations to work out workable solutions.

Employers are concerned that if the number of low-wage foreign workers is reduced, they would still be unable to recruit local workers for the same work, even if the wages are increased. By then, there would be no one to do the work, productivity would not be increased. We can imagine the consequences.

In the past few years, there has been a rapid growth in the number of foreign workers, and they already constitute one-third of the Singapore workforce. The Government is gradually increasing the foreign worker levy, curbing the growth of foreign workers. We can understand and support this move. However, I also hope that the Government can maintain the current proportion of foreign workers.

Currently, employers are very worried that with the tightening of the manpower policy, companies will encounter difficulties in recruiting foreign workers. If the foreign workers leave, employers fear that their foreign worker quota would also be revoked; they might also face difficulties in extending the work permits of existing workers. I would suggest that the Government allow companies, big or small, to renew or extend the work permits. Employers should be allowed to apply for new workers when the incumbent leave, as long as the quota is maintained.

As for the skilled foreign workers, especially those who have worked in Singapore for a number of years and have become familiar with the Singapore lifestyle and environment, and have performed well, we should encourage them through different incentives or measures to become permanent residents or citizens. This could help us to increase the number of skilled local workers and avoid losing this pool of skilled workers.

We would also like to learn from the experiences of other regions. In May this year, the SCCCI will be organising a business mission to Taiwan to study their SMEs, and their experience in increasing productivity. Thereafter, the Chamber will be organising more of such missions to other countries, to help our members identify new ways of raising productivity. I would like to thank the Government agencies, especially IE Singapore and SPRING Singapore, for supporting such activities.

For a country to grow, we need all kinds of talent. The growth of any enterprise needs to have management, local workers and foreign workers working all together. I am in the shipping line, and fully understand that sailing on the high seas requires the cooperation of not only the captain and the first mate, but also all sailors, working as a team. Only then can this huge vessel of Singapore sail bravely ahead!

*Cols. 4175-4178.

5.00 pm

Foreign workers

(In Mandarin): [For vernacular speech, please refer to Appendix A*.] Madam, I agree with the Ministry of Manpower's measures to increase foreign worker levy and to help raise companies productivity by employing less foreign workers. However, I would like to raise a matter of great concern to us. The Minister of Finance has cited an example of a local company during his Budget speech to demonstrate how this company, which employs 10 locals, can be affected by the levy increase. According to my own calculations, if the company employs the same people who are all skilled workers, it will end up paying 10% more in terms of levies from 1st July 2010. By the end of 2010, when it comes to the final round of tax adjustment, the company's tax will be increased by 33% or about $10,000 a year. I think to this company this is definitely not a small amount.

Many companies provide basic services to Singaporeans, particularly the HDB dwellers, including running coffeeshops, cleaning foodcourts, ferrying workers and students to work or to school and cleaning the estates. Many such companies have difficulty attracting Singaporeans who are reluctant to do such a job even if the companies are willing to for as much as $1,000 a month. I worry that these companies will have no choice but to pass the increased levy cost to consumers who use these basic services. So who are the end-users? That is our middle- and lower-income Singaporeans. The purpose of increasing the levy is not to increase Singaporeans' living expenses, especially the low-wage Singaporeans. We want to reduce dependency on the foreign workers but we are adding the burden to our low-income Singaporeans.

I would like to ask the Minister if MOM could adopt a flexible system which could mitigate the companies' rising levy cost so as to prevent them from passing the cost on to the consumers.

I am not saying this out of the blue. In my constituency, there are coffeshops which are charging different prices for the coffee, some are selling 80 cents, some selling 85 cents and they say that the cost of sugar has gone up, but some retain the original price of 70 cents. So, now with this increase of foreign worker levy, I think they will pass the cost to the consumers.

*Cols. 4179-4180.

Foreign worker policy

Madam, each time I say something about foreign workers, I seem to get myself into trouble. In August last year, I called on Government to put productivity first and review the foreign worker policy, the news report earned me sharp responses from two Ministers.

Last week, I again spoke on foreign workers. This time is to reject MP Low Thia Khiang's proposal to scrap the foreign worker levy. The newspaper reports said he called me a "pretentious fox riding on the tiger's might". But never mind, something good came out of both episodes. Government has eventually decided to focus on productivity and adjust the foreign worker policy. And on reading reports of MP Low's remarks, many people came forward to express their support for which I am grateful. Sir, I hope I am three times lucky, that something good will come of this cut.

Madam, the foreign worker policy is not just a matter of adjusting levies. To successfully transit to a productivity-driven economy, it is equally important that the productivity levels of our foreign workers are improved as they comprise one-third of our workforce.

One issue that, I think, needs to be seriously looked into is how we define "skills". Just last week, a union leader asked me at a dialogue, "are we so sure that our foreign workers are skilled? We do not mind if they are really skilled workers because it would add value, but some of them are really not that skilled even if they are given the skills levy."

Another person, a veteran of the training industry, told me over dinner that, in fact, there are testers who find ways to be creative and to enable the foreign workers to pass the tests to certify them as "skilled". And my own experience does not give me confidence. Several months ago, in the middle of the night, my domestic helper came running into my room shouting, "M'am, M'am, come! My room is raining!"

So I thought to myself, "What is she talking about?" It was pouring cats and dogs outside but how can it rain indoors? So, I ran to her room and true enough, water was dripping from the false ceiling, creating puddles on the floor! As it happened, the foreign worker employed by the contractor of my neighbour, who had been rebuilding his house and had been called in the day before, because water patches had started to form in the false ceiling. But instead of patching up the cracks with cement or plaster, the poor chap had apparently used masking tape! I really did not know whether to laugh or cry, but although it might have been a funny incident for me, but at the workplace where safety and health are really very important, it might not be so funny.

Sir, I hope that MOM could seriously address the issue of "skills", how to define them for each sector and how to test for these skills at the point of entry. Also, I think we need to put in effort to ensure that there is really no cheating during these tests. Perhaps, MOM would also want to consider how they can reduce the churn of foreign workers, because churn contributes to reduced productivity.

Quality of foreign workers

Madam, while we manage the dependency on foreign talent, can the Minister share on the policy changes and programmes that will be in place to ensure quality of our foreign workforce? I believe that the Minister will agree that raising the levy does not necessarily lead to the hiring of quality workforce or talent. Will there be new criteria applied to the different roles and industries on the quality of foreign talent to be hired? Will there be minimum qualifications required for the hiring of foreign talent in the various industries or sectors? With the increase in levy, can the Minister share on how we will optimise the alignment of the workforce to labour demand?

There has been much discussion on the need to raise the productivity of the construction industry. This is not new. Since 1999, with C21 blueprint and the measures taken by MOM and BCA in 2003 to 2005, there have been attempts to address the high reliance of foreign labour, low productivity of the sector as well as to upgrade the industry with policies affecting qualification requirements, dependency ratios and changes to the work permit allocation system. Can the Minister help clarify how he sees the increase in levy this time impacting the construction industry to address the issues more effectively?

In our various dialogues with businesses, the Government Parliamentary Committee (GPC) has received feedback from businesses on the concerns that their business will be impacted by the increase in levy. Their concern is that even with innovation and better work processes, there will be jobs that will continue to face difficulty in attracting Singaporeans to take on these jobs. Construction jobs, jobs in the service and hospitality industry, caregiving and step-down health jobs that require shift work and are physically strenuous are jobs that Singaporeans shun. Coupled with the fact that we have an ageing population, this will imply that there will have to be a continued need to hire foreigners to do these jobs or face the problem of not having sufficient capacity. This will, hence, eventually translate to higher business costs for them without necessarily achieving higher quality or reducing the dependency of foreign labour. In some instances, businesses believe that hiring foreign talent can also help meet critical employment needs, enhance the skills of the workforce and enable companies to compete globally.

Foreign manpower management

Madam, we all agree that foreign manpower is and has been an essential part of Singapore's economic success. However, moving forward, we need to ensure that not only the mix is right but the employers are being fair in the hiring. Since we are looking at improving productivity, we need to improve the efficiency of the workforce, including the foreign workers, and ensure that the right skill sets are in place to meet the requirements of each job.

The proposed levy adjustment is timely. However, as we can see the response from the employers, I would like to urge MOM to ensure that all our employers will take concrete action to increase the productivity of the foreign workers to offset the additional costs instead of thinking of passing the costs to the consumers.

I hope MOM would consider using the additional levy collection to set up Skill Development Fund (SDF) scheme to support employers' training initiatives and efforts to drive productivity for their foreign workers, just like the existing SDF scheme that we have for local workforce.

It is also important that all foreign workers recruited to work here have the job and language competencies. For a foreign worker who is to be a co-worker with a Singaporean, preferably they should have and had to go through the same skill certification or assessment. I would request MOM to consider coming up with a system of checks or regulations to ensure transparency in the area of fair recruitment and employment practices. Perhaps this can be done using Workforce Skills Qualification (WSQ) as a standard of skill assessment for all.

Language skills are also perceived to be lacking among some foreign workers, particularly in the food and beverage service sector. If having basic language competency to communicate clearly with customers is compulsory for local staff, why not for those from overseas?

In the same vein, for the protection of the workers here, I think we should do it for both local and foreign workers. There have been instances of foreign workers having to make salary claims against errant employers. There should be a review of the process with which workers make a claim so that unethical employers do not get away with their misdeeds or to drag out the procedure and the proceedings to the detriment of the workers.

In addition, I would also like to ask and request MOM to consider including "one rest day per week" into the list of Work Permit Conditions under the Foreign Manpower Employment Act.

Next, we need to also review the Employment Agency Act to better protect the interests of both employers and employees who engage the service of the employment agencies. For example, the placement fee cap in the Employment Agency Act for employers and employees is not relevant in today's context. It is also unclear what type of administrative costs and the transfer fee is used to cover. Both placement and transfer fees should be made more transparent. We should include a clause in the Act that requires the employment agencies (EAs) to have a written contract with both the workers and employers respectively, specifying the total agency fees payable and the scope of service that they are providing.

5.15 pm

More flexible use of foreign manpower

Madam, in the hotel industry foreign workers are not allowed to be cross-deployed to different jobs even within the same hotel unlike their local counterparts.

In the construction industry, I am told that construction workers are allowed to work at the work sites but are not allowed to help maintain the construction equipment that they use if the maintenance of that equipment is not done at the work site itself.

I can understand that such strict rules pertaining to where and what jobs foreign workers are allowed to be deployed to, are there to safeguard the safety and fair treatment of the foreign workers. We also do not want a situation where employers abuse the foreign workers by indiscriminately using them for all kinds of jobs without due regard for their proper and decent treatment, including rest and safety.

On the other hand, given the need to optimise the use of all segments of the workforce in our drive toward higher productivity and greater competitiveness, this relative lack of flexibility in deployment of foreign workers reduces productivity and actually tends to increase the demand for foreign workers at the margin. I do not think that it is always an "either/or" situation.

I believe that it is possible to look more closely at the rules and see how best to increase the productivity also from the foreign segment of the workforce. This will help create new capacity for the company to undertake more or new business without resorting to increasing foreign headcount immediately.

I suggest that MOM consider allowing hotels to cross-deploy foreign manpower within defined job groups within the same hotel, subject to necessary safeguards. This will ensure that such foreign manpower does not become freely mobile between companies while increasing the flexibility and productivity of their utilisation within the hotel or the company. And if that can be done, then the same concept can be explored in other parts of the economy. It will help us keep to the current ratio of one foreigner to two locals for as long as possible.

Madam, allow me to first give an overview of the state of the labour market. 2009 was a challenging year. It began with a sharp contraction in the global economy. Many countries suffered unprecedented job losses. The International Labour Organization (ILO) estimates that over 20 million jobs have been lost since the onset of the economic crisis.

In Singapore, we were affected by the global downturn as well. Thirteen thousand eight hundred jobs were lost in the first two quarters of 2009 and unemployment rate reached 3.4% in September 2009, the highest in five years. Nevertheless, our labour market stayed resilient despite falling external demand and uncertainties in the economic outlook. During the 1997/1998 Asian financial crisis, we lost 42,100 jobs. During the 2001 economic downturn, we lost 79,500 jobs following the dot-com bust and September 11. In 2009 however, a total of 38,800 jobs were created for the whole year due to the recovery of the labour market in the second half, which had more than offset the job losses in the first half. For the first time, Singapore experienced employment growth amidst an economic recession.

For the whole of 2009, there were 22,700 redundancies, significantly lower than previous peaks in 1998 and 2001. The overall unemployment rate eased to 2.1% in December last year, lower than that in many countries. In the US, eg, unemployment rate was 10% in December last year. In the EU, unemployment rate likewise rose to nearly 10% by the end of 2009.

The job market for Singaporeans also remained resilient in 2009:

Local employment rose by 43,000 compared to a net loss of 4,200 in foreign employment.

The quality of jobs held by locals continued to improve. The percentage of locals holding Professional, Managerial, Executive and Technician (PMET) jobs increased from 51% to 52% over the past year.

Wages have remained stable despite the economic downturn. The median monthly income among full-timers rose slightly by 0.5% from $2,590 in June 2008 to $2,600 in June 2009.

While the overall employment rate of the resident population aged 25 to 64 declined from the peak of 77% in 2008 to 75.8% in 2009 due to the economic slowdown, I am encouraged that the employment rate of older residents remained at the record high of 57.2%.

The better-than-expected performance of our labour market can be attributed to the coordinated efforts by our tripartite partners to save jobs, complemented by key initiatives such as the Jobs Credit scheme and Skills Programme for Upgrading and Resilience (SPUR). Since the inception of SPUR in November 2008, 204,000 workers have completed or are undergoing SPUR training at the moment.

We also beefed up our career centres in response to the recession. The career centres at the Community Development Councils (CDCs) and National Trade Union Congress' (NTUC) Employment and Employability Institute (e2i) placed about 47,600 unemployed into jobs from December 2008 to January this year.

Mr Heng Chee How has asked what will happen after SPUR ends in November 2010. My Ministry is reviewing this and will announce the details in due course. But I can assure the House that training will remain affordable. We will retain those programmes that are still relevant beyond the recession, such as programmes that address critical skills needs.