Hansard, Friday, 8 March 2013

1 Mr Yee Jenn Jong asked the Acting Minister for Social and Family Development what is the number of childcare centres that had changed operator over the past three years and whether the Ministry tracks the reasons for the transfer of operators for the centres.

Each year, the number of centres that has a change in owner or ownership structure has remained fairly constant at about 4% to 5% of the total number of centres. About one-third are for administrative reasons, such as the inclusion of new persons as business partners or a change in ownership structure, for example, from sole proprietorship to partnership or private limited. The other two-thirds are due to sales to another owner for business reasons.

To ensure that standards of care and development are met, all childcare centres are licensed by MSF. Where there is a transfer of ownership, the new owner is required to apply for a new childcare licence. The owner and the centre concerned must meet the regulatory requirements before the licence is issued.

I thank the Acting Minister for the answer. I just want a quick check as to whether MSF also monitors if there are any changes to the fees after the change of ownership in the immediate few months, and whether there is any trend in that respect.

Mdm Speaker, I thank Mr Yee for the supplementary question. No, we do not have the data at this point in time, but we do monitor any change in the fees made by the operators. We ask them to give adequate notice to the parents before any fee increase is made. Usually, for those who take the Government subsidies, we also scrutinise their cost structure to make sure that the fees are justified.

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2 Mr Yee Jenn Jong asked the Minister for Education with regard to the Programme for Rebuilding and Improving Existing Schools (PRIME) (a) how many schools have yet to commence on PRIME; and (b) when will Junior Colleges be scheduled for PRIME.

Mdm Speaker, most schools that need to be upgraded under PRIME have been completed or are in progress of upgrading. Only 19 schools have yet to undergo PRIME. They will be phased based on the availability of suitable holding sites.

Junior Colleges (JCs) were upgraded under a separate JC upgrading programme from 1998 to 2005. Their infrastructural requirements are reviewed regularly by MOE.

Mdm Speaker, just two supplementary questions. First, I need to declare that I am on the Advisory Board of a Junior College, although that PQ is not specific to any school in particular. The first question is that PRIME is into its 14th year. What are MOE's plans for the schools that are in the first phase of PRIME, which means that they are about 14 years old now? Are there any plans for the next cycle of PRIME, that is, PRIME 2, after all schools have finished and when? The next supplementary is: some of the older JCs have taken on the Integrated Programme but they have not gone for any upgrading. Is there any impact on the facilities or the lack of these on the operations of the schools?

Madam, as I have said in my reply, we always review the infrastructural needs of schools regularly. So, the needs of the schools and JCs will be taken into consideration. The programmes that JCs and schools organise are also taken into consideration in our planning for enhanced facilities.

3 Mr Yee Jenn Jong asked the Prime Minister with regard to PSC undergraduate scholarship holders over the past five years (a) how many graduated with (i) First Class Honours; (ii) Second Class Honours (Upper

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Division); (iii) Second Class Honours (Lower Division); and (iv) Third Class Honours and below, from local universities; and (b) how many graduated with (i) First Class Honours (ii) Second Class Honours (Upper Division) (iii) Second Class Honours (Lower Division) and (iv) Third Class Honours and below, from foreign universities.

Mdm Speaker, over the past five years, more than 97% of PSC scholarship holders graduated from local and overseas universities with good Honours, that is, a Second Upper and above or equivalent. There is no exact equivalent. We are not able to provide all the details requested by Mr Yee, as PSC scholarship holders pursue their studies in a variety of countries and institutions, some of which do not follow the Commonwealth "Honours" classification system.

We would like to stress that PSC scholarship applicants are not assessed based just on academic results, but on whole-person qualities to determine their suitability for the Public Service. Beyond academics, PSC scholarship holders are also encouraged to seek out diverse experiences by participating in internships, community initiatives and other programmes. This seeks to broaden their perspectives so that they can contribute better as public officers.

I thank the Deputy Prime Minister for the answers. I am glad to know that 97% of the PSC scholars graduate with good Honours, which I take it to be Second Upper and above. I just want to know whether the PSC and MOE look at the comparison between the standards expected of PSC scholars and foreign scholars that are given scholarships. I understand from previous answers that the rate of international scholars who get good Honours is 65%, which is very low, compared to 97% for PSC scholars.

Mdm Speaker, the basis for awarding these scholarships is quite different. There is a variety of scholarships to our Universities which are awarded by the Universities, MOE and a range of bursaries and so forth. Scholarships awarded by the PSC are of very high standards. The expectations are that they do perform to very high standards. If the Member has a question on the performance of other scholarship holders in general, he may want to direct that to the Ministry of Education.

Order. End of Question Time.

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[(proc text) Order read for consideration in Committee of Supply [Allotted Day]. (proc text)]

[Mdm Speaker in the Chair]

Supplementary Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads C, G, O, P, R, S and X of the Supplementary Main Estimates.

[(proc text) Question, "That the sums stated for the Heads of Expenditure as shown on page 6 of Paper Cmd 4 of 2013 stand part of the Supplementary Main Estimates," put and agreed to. (proc text)]

[(proc text) Question, "That the sum of $831,326,100 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013 contained in Paper Cmd 4 of 2013," put and agreed to. (proc text)]

[(proc text) Resolution to be reported. (proc text)]

[(proc text) Question, "That the sums stated for Heads W and X as shown on page 8 of Paper Cmd 4 of 2013 stand part of the Supplementary Development Estimates," put and agreed to. (proc text)]

[(proc text) Question, "That the sum of $833,819,800 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013," put and agreed to. (proc text)]

[(proc text) Resolution to be reported. (proc text)]

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[(proc text) Thereupon, Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]

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

[(proc text) First Resolution reported – (proc text)]

[(proc text) "That the sum of $831,326,100 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013." (proc text)]

[(proc text) Second Resolution reported – (proc text)]

[(proc text) "The second resolution of the Committee of Supply is that the sum of $833,819,800 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2012 to 31 March 2013, contained in Paper Cmd 4 of 2013." (proc text)]

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

[(proc text) Question put, and agreed to. (proc text)]

[(proc text) Resolutions accordingly agreed to. (proc text)]

[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]

[Mdm Speaker in the Chair]

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Mdm Chairperson, I beg to move, "That the total sum to be allocated for Head N of the Estimates be reduced by $100".

The external geopolitical situation is getting more challenging and unpredictable. What started out as the Arab Spring has become a long-drawn and bitter winter, leaving millions of people in these countries divided and economies in a shamble. There are multiple flash points in the Middle East and Central and Northeast Asia that may threaten peace any time. North Korea has just warned that any joint military exercise by South Korean and the US allies in her vicinity is tantamount to a declaration of war.

Although the US remains the leading superpower in the world after the end of the Cold War, the rise of other large nations, including China, Russia and India, will affect the current equilibrium and bring about a New World Order. How do all these changes affect our foreign policies? Can MFA provide an update on the major developments in our external geopolitical environment and an assessment of how these will affect our foreign policy considerations, if any? How has MFA positioned itself to deal with the challenges in the new external geopolitical environment to help Singapore stay relevant and competitive? Is the MFA adequately staffed to deal with these changes? How many Foreign Service Officers do we have in the MFA currently? Has the number increased over the years? Does the MFA have the necessary resources to deal with the new challenges?

Madam, the changing strategic environment creates new challenges as well as opportunities for Singapore's foreign policy. While Singapore is a small state, its record has shown that, with visionary thinking, skilful diplomacy and courage, it can have significant influence on regional and global affairs, through cooperation with other countries or groupings, such as ASEAN.

The relationship between the US and China will decisively shape the 21st century world. A major concern is how the US-China rivalry will change regional dynamics and whether ASEAN will be united and retain a central role in the regional security architecture.

In the past, ASEAN members might have had their differences and disagreements with each other, but they maintained solidarity and consensus

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on key issues, building up its international credibility over the years. However, this reputation was damaged last year when it failed to agree on a joint communique at its ministerial meeting. The after-effects are still being felt.

On the face of it, it reflects the inability of the Cambodian Chair and some ASEAN members to settle differences over the mention of the South China Sea dispute. But there are deeper forces at work.

There is little doubt that Cambodia was under pressure from China to toe its line.

ASEAN solidarity has been breached with China leveraging on its economic and strategic clout – it is Cambodia's largest investor and a generous aid donor. If such pressure continues to be exerted and spreads to other ASEAN countries also beholden to China's largesse, there is a danger that ASEAN may not hold.

Madam, a key goal of Singapore's foreign policy is to build a strong, cohesive and autonomous ASEAN. Singapore should play a more pro-active role in influencing the course of regional affairs, especially in helping to get ASEAN back on track. Allowing events to take their own unguided course would mean running major risks.

One of our top priorities should be to explore how Singapore, together with other like-minded countries, can play a positive role in bringing together the US and China to focus on areas of common interest, and that will contribute towards a more stable strategic relationship.

Such collaborative engagement would contribute to the peace and security of this region, not least by avoiding dangerous military competition and confrontation between these two powers in the years ahead.

With the changing US-China dynamics, it is imperative for Singapore to deepen its relations with the US and China at the various levels, and over a much broader base. To the greatest extent possible, Singapore's relationship with these two powers needs to be insulated from the ups and downs of the US-China relationship.

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At the same time, we should strengthen our bilateral relations with ASEAN countries, and invest in win-win projects that cement our relationship. In this regard, I welcome the Iskandar project with Malaysia.

We need to also step up our assistance to developing countries and extend our soft power. An important platform is the Singapore Cooperation Programme (SCP). Can the Minister give an update of bilateral relations with ASEAN countries and an assessment of the SCP?

Given the uncertainties ahead, we should diversify our economic and security interests. Singapore has been at the forefront of moves to encourage greater economic integration in Asia and Australasia, and to promote global free trade. Can the Minister update us of these efforts and how we are expanding to emerging markets, such as the Middle East and Latin America?

Singapore is a small country, but we can punch above our weight in the international field with pragmatic diplomacy and delicate skill.

Madam, the South China Sea issue has been through rounds of discussions, with various parties stating their views on the matter. Cambodia, ASEAN's Chair, has earlier announced the consensus will not be internationalised on this maritime dispute. However, with the latest move by the Philippines to take China to international arbitration, are there any new developments or updates from the ASEAN front? What happened to an earlier suggestion to discuss the issue at the ASEAN-China framework? Do we still think that we will have the intended outcome with a Code of Conduct arrived at?

Dr Lim Wee Kiak, you have two cuts. You can take them together.

Mdm Chairperson, ASEAN was formed on 8 August 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand, and, later, the membership expanded to include Brunei, Myanmar, Cambodia, Laos and Vietnam.

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ASEAN covers a land area of 4.46 million sq km, which is about 3% of the total land area on earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. Together, ASEAN has a combined nominal GDP growth of about US$1.8 trillion. If ASEAN were a single entity, it would rank the 10th largest economy in the world.

How has ASEAN performed so far as a geopolitical grouping? In July 2012, for the first time in its history, the ASEAN Ministerial Meeting failed to issue a communique. If ASEAN solidarity cannot be assured, will ASEAN be able to maintain its position at the hub of ASEAN-centric regional institutions that shape the regional order in the Asia Pacific? If such a situation persists, what are the implications for Singapore? With no Ministerial Statement in the July ASEAN Ministerial Meeting, which some see as a sign of disunity, what impact might this have on ASEAN's plans towards establishing a community by 2015, and ASEAN's credibility?

Considering that freedom of navigation in the sea lanes of communication in the South China Sea is vital for Singapore's economic security, can the Minister highlight whether we can expect any progress on the Code of Conduct for the South China Sea? Can MFA explain what the implications on ASEAN are with regard to the recent Philippine move to bring China to arbitration in the South China dispute? Can MFA give an update on ASEAN Community 2015?

With only two years remaining, can we achieve the goals and the target set to be an ASEAN Community by 2015? What are MFA's assessment and expectations of the Brunei ASEAN Chairmanship and what about the bilateral relationships between Singapore and Brunei? What is MFA doing about our bilateral relations between Singapore and the key ASEAN member states, such as Indonesia, Malaysia, Vietnam and Thailand? Can MFA briefly update us on the developments in Myanmar and whether Singapore has a role to play in its reform processes?

Mdm Chairperson, the Sino-American relationship has been described by top leaders and academics as the world's most important bilateral relationship of the 21st century. Most analysts characterise the present Sino-American relationship as being complex and multi-faceted. The United States and the People's Republic of China are neither allies nor enemies. The US government and her military establishment do not regard the Chinese as an adversary but

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as a competitor in some areas and a partner in some.

How is the evolving US-China relationship, in which there is growing competition and tension between the two, affecting Singapore and ASEAN? What role does Singapore have to play? Singapore has enjoyed strong and good relations with both countries. How will their tension and competition affect this relationship?

Does MFA expect any changes in the US' engagement of Asia in light of the appointment of the new US Secretary of State, Mr John Kerry? Similarly, does MFA expect any further changes in China's engagement of ASEAN and Singapore, in light of the new leadership change recently?

It is, indeed, important for the US and China to continue on a cordial as well as competitive relationship. It is also important for a strong US military presence in the South China Sea to help to maintain a balance. Singapore's sentiments and logistical support for the US forces are obvious. With a new leadership in China, President Xi may likely adopt a "hard ball" approach, especially in respect of the Senkaku or Diaoyu Islands dispute. The US is obliged to lean towards Japan in the event of hostility. China is also involved in territorial disputes with other ASEAN countries, too. US involvement may be unavoidable in the case of the Philippines as well. How will this impact our relationship with China?

Mdm Speaker, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] As the annual plenary session of the National People's Congress and Political Consultative Conference is currently on-going in China, there will be more leadership renewal and transition in the next two weeks, with the rise of more young leaders taking on more important roles and responsibilities.

At the highest level of the Chinese Communist Party, there are seven Central Politburo members, and Singapore leaders have close ties with most of these Central Politburo members.

Our political leaders have always maintained close ties with the leaders of China, dating back to the bilateral meeting between former Prime Minister Lee

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Kuan Yew and former Chinese leader Deng Xiao Ping, which paved the way for several bilateral collaborations, deepened ties between Singapore and China, and led to the establishment of the Suzhou Industrial Park and, more recently, the Tianjin Eco-city and Guangzhou Knowledge Hub. These projects not only promoted closer trade ties between the two countries, but also created job opportunities for both the peoples of China and Singapore. Singapore and China also established seven bilateral trade councils.

Currently, China is undergoing political leadership renewal at all levels, including provincial and municipal levels. Has MFA considered how our long- and short-term diplomatic ties with China will change, in terms of planning and the way ties are maintained?

Mdm Chair, China is important to us and we watch developments in China with a keen eye. It is undergoing a once-in-a-decade change in leadership. The new generation of leaders are ushered in at China's 18th Communist Party Congress in November last year.

China is growing in economic and political importance. It is developing rapidly and will have increasing influence, not only on the region, but also in global affairs. It is already the world's second largest economy, and many of its companies have become major international players. As it becomes even stronger, China's leaders will certainly become more confident. The way in which they manage China's relations with the rest of the world will naturally evolve. With this change, does MFA expect any change in relations with China?

I share the concern of Mr Teo that there are also cascading changes in leadership at the provisional level, and we have several collaborations with provinces as well. For example, in Tianjin, there is the on-going Eco-city project. With the leadership change, will it affect the progress of our engagement with the individual provinces and cities in China?

Mdm Chair, relations between Singapore and the European Union reached a milestone in December 2012 when the EU-Singapore Free Trade Agreement was successfully concluded. This important FTA will pave the way for greater market access and increase trading links to each other's markets. It will also see the removal of a number of tariff and non-tariff measures.

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For Singapore, the 27 member states of the EU and the Union itself represent important political, economic, social and cultural influences. For the EU, Singapore is an important hub and gateway to Asia.

It is thus mutually beneficial for Singapore and the EU to maintain good relations and find more common areas for cooperation. I would like to ask the Ministry how Singapore is managing other bilateral relationships with major economies, such as the EU, and how do we build more common ground with these entities for our mutual benefit.

Mdm Chair, through suspending sanctions on Myanmar, acceding to ASEAN's Treaty of Amity and Cooperation, and completing a successful ministerial meeting in April 2012, the EU has shown strong interest in upgrading its relationship with ASEAN. It is widely felt that the EU could do more in economic relations and cultural exchanges. Can the Minister please explain why Singapore seems to have taken a longer time to conclude its FTA negotiations with the EU and how it was clinched? What plans does MFA have to actively encourage people-to-people exchanges or promote cultural ties between the EU and Singaporeans?

Next, recently, the media reported that Temasek Holdings paid 1 billion euros for shares in Repsol, Spain's biggest oil company. Repsol sold shares to protect its credit rating and, for Singapore, this purchase represents her biggest investment in Spain. How will this purchase benefit Singapore or improve our bilateral relations?

The late President Hugo Chavez of Venezuela, Latin America's symbol of socialism, died on 5 March 2013, after being in office for 14 years. Media reported that the controversial, anti-America leader was much loved by poor Venezuelans for his populist policies funded by the country's vast oil reserves. It is not clear if his appointed successor, Vice President Nicolas Maduro, will win the coming elections and carry on with his populist policies. In what way will Singapore's relations with Venezuela be affected by the political upheaval?

Besides Venezuela, what is the extent of Singapore's engagement of emerging markets in Latin America? How does MFA assess the progress, and what more will MFA be doing?

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Mdm Chair, Latin America is most famous for its footballing prowess. Brazil, Argentina and Uruguay have won the World Cup nine times amongst them. Pele, Maradona and Messi are familiar names to many people.

What is less often mentioned about Latin America is its increasing prominence and influence as a political and economic bloc. As a continent, it possesses enormous natural reserves which give it broad sway in its international trade relations.

Chile, as a country, produces 30% of the world's copper, an important raw material especially to China. Venezuela is an important producer of oil. Brazil is regarded as one of the new engines of growth for the world, not to mention Argentina and Mexico who have dynamic and young economies and are growing very rapidly.

Latin America holds many opportunities for Singapore as a trade partner as well as in other areas of international cooperation, such as in security and representations on international forums. What is MFA's assessment of emerging markets in Latin America, and Singapore's engagement of countries in this region?

Given the uncertainties in the Middle East, with civil war in Syria, political instability in Libya, conflicts between Israel and Palestine, Iran's nuclear ambition and so on, countries in the region would be focusing more on dealing with challenges at home.

In this context, is there still an interest from countries in the Middle East to engage with Singapore? The Middle East region covers a wide area. Is there a particular area or are there any particular countries in the Middle East region which MFA is focusing on? We have already established a diplomatic presence in a few countries in the Middle East. Are there plans to expand Singapore's diplomatic presence in the region?

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I believe that Middle East diplomacy for us cannot be a one-size-fits-all approach. It is complex, much of it due to the history, geography, domestic factors, regional alliances, Western influence and conflict. What is Singapore's engagement, diplomatic strategy and approach for the Middle East?

Mdm Chair, as a small country, Singapore needs to be friendly to all. We stepped up our engagement with the Middle East since 2004. This has benefited us in enlarging both our political and economic space. However, since the Arab Spring in 2011, the geopolitical situation in the region has changed and, in some cases, the security situation has deteriorated.

How have these changes affected our perspective towards the Middle East? Despite the sweeping changes that have taken place in some countries, has MFA found new areas of cooperation to expand our engagement?

Secondly, we need as many friends on the international stage as possible. Many Singaporeans are travelling to Turkey and other countries rich in history and culture situated at the crossroads of Asia and Europe. It has been growing in stature and importance. Its leaders have expressed interest in engaging Southeast Asia.

I know that Minister Shanmugam had travelled to Turkey earlier this year. Given Turkey's international stature and regional influence and its interest in Southeast Asia, how do we plan to increase our engagement of Turkey, and having established an embassy in Ankara, do we plan to establish other embassies in other parts of the Middle East?

Over the years when Singapore was a developing country, we had been helped by many developed nations, and now that Singapore is a developed country, we are beginning to look at developing countries that have been left behind and provide any assistance that is possible.

I have been to Myanmar and seen many of our private sector companies going there to provide educational services, infrastructure development and healthcare services. Could MFA provide an update on Singapore's recent assistance to those of the other developing countries?

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Mdm Chair, when I was studying international relations in University, we referred to consular services as the "Cinderella services of diplomacy". Just like Cinderella – much abused, much neglected and underpaid.

With increasing numbers of Singaporeans living, travelling, working or studying overseas, and with the wide range of consular services now available across an increased number of countries and regions, I would like to ask the Ministry if there has been an increase in the number of requests for consular support, and what have been some of the challenges faced.

In addition, would MFA, like in some foreign ministries in other countries, consider charging a call-out fee for out-of-ordinary requests or negligent claims?

With consular staff increasingly being called to help an irresponsible minority whose problems may have been easily avoided through better planning or sensible behaviour when overseass, I further suggest that the Ministry increase its publicity to influence behaviour of those travelling, and also to publicise more case studies regularly to demonstrate the consequences of irresponsible behaviours overseas.

Consular staff are often mistakenly perceived within the diplomatic services of having a lower status than other Foreign Service Officers. It is often shunned elsewhere as a career route. I would like to ask if the Ministry is currently understaffed in terms of consular services and perhaps, our consular and Foreign Service Officers should have their salary scales reviewed to keep in line with existing Administrative Service pay scales.

Lastly, on the subject of Honorary Consuls and locally-engaged staff in other countries, does the Ministry have an assessment of the roles played so far by these Honorary Consuls, and whether there is a case for more professional officers or to continue with the robust system of Honorary Consuls?

All of this is especially so, with the domestic reputation of the Ministry dependent to a degree on the perceived success in meeting our citizens' expectations overseas. I urge, therefore, for a greater priority on consular services so that there is no longer just Cinderella, but that they enjoy a happy ever after!

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Mdm Chairperson, MFA performs the pivotal task of protecting Singapore's national interests through foreign and diplomatic relations. It also performs another extremely important task "behind the scenes" – consular services. Consular services do not often get much limelight. A lot of the work goes on behind the scenes. Yet, this is a very important function.

In a globally connected world, Singaporeans enjoy the benefits of easily available and accessible travel. Yet, whilst travel and living abroad have become easier, the problems that Singaporeans face overseas may have not. Whether these are problems that are endemic to the country that they live in or travel to, or personal problems that they face, consular services often have to "come to the rescue".

Yet, it is not often easy to provide these services. How do we decide what are requests that can be attended to, as opposed to requests that have to be turned down for a variety of reasons?

For example, we do not have an established presence in all countries. It is, therefore, often difficult to provide immediate assistance to Singaporeans who may be in a part of the world where our modest arms do not reach. Even so, when our consular services respond, the assistance may be delayed for a number of logistical reasons.

Similarly, to each his or her own problem is of utmost importance and almost always requires immediate attention. In such a situation, our consular officers try their very best to deal with the problem. However, some problems do not fall within the purview of consular services. Similarly, some personal problems cannot be dealt with by the State. Sometimes, there is only so much that can be done and nothing more. Some have to be turned away. Others have to be told that this is the end of the road. This may not go down well and it may leave a bitter taste.

Madam, consular assistance is provided under some very difficult circumstances. Physical constraints are one thing. Often, the difficulty is in turning away fellow Singaporeans when there is little that can be done.

On 10 December 2011, the BBC (UK) published an online article entitled, "Foreign Office reveals some weird requests to consulates". Here are some of the examples that were cited: one, a man called the consulate in Sydney asking what clothes he should pack for his holiday; two, the caller to the Foreign Office

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staff in Spain wanted Prince Charles' shoe size, so he could send him shoes as a present; and, finally, a man asked consular staff in Dubai to meet his dog on arrival at customs and help it through the customs process.

Madam, I thank Members for questions on Singapore's foreign relations. My fellow officeholders and I will answer the questions.

Let me start with an overview. The external environment for 2013 will continue to be challenging because the fragile international economic and financial situation will continue.

There is a deficit in global leadership. The United States is still the only truly global power. Its leadership role is indispensable for the foreseeable future but it is preoccupied domestically. It needs to overcome its domestic political gridlock to jumpstart the economy. China is reluctant to assume greater responsibilities of global leadership, preoccupied with maintaining domestic stability and sustaining economic growth. If you look at other major countries globally and in the region, the European Union, Japan, Republic of Korea, India, as well as multi-national institutions, they are not yet ready for truly global leadership.

We are living through a period of transition and adjustment as relative power balances are adjusted. So, the geopolitical environment will continue to be volatile and, in our own region, that is reflected in enhanced tensions – such as the maritime claims, for example, the China-Japan, South China Sea issues.

Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Assoc Prof Fatimah Lateef asked about the recent developments in the region, including the South China Sea dispute and its implications on Singapore and ASEAN.

Strengthening regional relationships is the key to protecting our interests in this unpredictable environment. ASEAN reflects as well as mitigates diversities inherent in the region. It is strategically vital to Singapore as a buffer as well as an influence multiplier.

Twenty twelve was not a year that ASEAN could be particularly proud of. Its unity and credibility were painfully tested by the South China Sea issue during Cambodia's chairmanship. On-going developments in South China Sea

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will continue to present challenges.

The initiation of arbitration proceedings by the Philippines against China was a national decision of the Philippines. ASEAN was not consulted. China has decided not to participate in the Tribunal hearings. But that is not the end of the story. The Tribunal may proceed even without China's participation. We can only hope that all parties will remain calm.

ASEAN's and Singapore's positions remain unchanged on these issues. ASEAN's six-point principle issued on 20 July 2012 called for formal negotiations on a Code of Conduct (COC). Singapore's position is as stated in our Press Release of 23 January 2013.

ASEAN and China held several rounds of informal consultations on the Declaration on the Conduct of Parties (DOC) in the South China Sea and COC at officials' level over the past year. Senior officials from ASEAN and China will meet next month in Beijing.

ASEAN is united in the view that formal discussions between all 10 ASEAN members and China on the COC should begin as soon as possible. It is important for ASEAN to regain unity and credibility by realising community-building targets by 31 December 2015.

ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP) present opportunities for Singapore. We will remain relevant and effective, and taking positions on key issues affecting our region, including the South China Sea. It is also important for ASEAN to retain its central role in the regional architecture, particularly in the East Asia Summit.

This depends on our community-building efforts, particularly the economic pillar, which must continue beyond 2015.

Brunei's Chairmanship this year will be crucial. Brunei is an experienced and committed member of ASEAN. We are confident that it will promote consensus through consultations with all ASEAN members and Dialogue Partners. Singapore strongly supports Brunei. We will work closely together with the others to ensure that its Chairmanship is a success.

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Dr Lim Wee Kiak asked about Singapore's bilateral relations with our neighbouring countries. We have built a firm foundation of strong bilateral relationships in the region. We have good relations with all ASEAN members, in particular, strong ties with Malaysia and Indonesia, which are strong, broad-based and steady bilateral cooperation. All sides recognise the benefits of working together. The Leaders' Retreat with Malaysia in February took place successfully, and there will be one with Indonesia in April.

Elections are expected to take place in Malaysia soon and, in Indonesia, of course, by mid-2014. We will work with both countries and their leaderships, and we will continue to strengthen many existing institutional links.

With Vietnam, we have many high level exchanges. Bilateral relations continue to strengthen. The 40th anniversary celebration is later this year and we are working towards a strategic partnership.

With Thailand, we have strong long-standing ties, underscored by strong institutional linkages. The Thailand-Singapore Civil Service Exchange Programme, which I officiated with the Thai Foreign Minister in January, is one example and brings our civil services closer together.

With Myanmar, the story is positive and encouraging with an upward trajectory in developments. We will keep up our commitment to help Myanmar in capacity building.

With Brunei, the special relations are based on close personal ties, common strategic outlook and interests. Long-standing cooperative arrangements include the Currency Interchangeability Agreement and, of course, SAF training facilities.

Minister of State Teo Ser Luck, Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Ms Irene Ng asked about the United States engagement with Asia in the light of the appointment of a new Secretary of State and the growing US-China competition in this region, and how it might affect Singapore's bilateral relations with the United States and China. The US-China relationship is a defining relationship for the region and the world. The United States has strong historical presence in the region since the end of World War II. That has brought a long period of peace, prosperity and stability for the region and it is a foundation for growth.

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It is an important trade and investment partner for Singapore and the region. It is our single largest foreign direct investor and the fifth largest trading partner, at about US$200 billion of bilateral trade with ASEAN and the fourth largest foreign direct investor in ASEAN. It is a vital source of technology and management expertise. The United States' engagement of our region has to be based on US' interests and not personalities. That has been a basic continuum for more than 30 years, although the tempo of engagement has stepped up of late. This is welcomed and it is significant that President Obama attended the ASEAN-US Leaders' meeting every year. We hope that the new Secretary of State, John Kerry, will continue the US' active engagement of the region and will make an early visit to Southeast Asia.

China, geographically, is obviously an intrinsic part of the region with strong historical links, as well as growing economic ties with all ASEAN members states. China's growth is fundamental for Singapore's own success and for the region's success. It has provided strong support for ASEAN Connectivity, for example, the US$10 billion ASEAN-China Investment Cooperation Fund and US$15 billion credit support scheme.

It is in our region's interest to keep both the United States and China engaged in our region in a collaborative manner, accommodating each other's and the region's interests to enhance peace and stability in the region.

The US and China are deeply interdependent across a broad spectrum of areas. Neither can prosper without the other, and both know that. Many bilateral platforms of engagement between the two exist as well as engagement within the regional architecture, for example, the East Asia Summit and the ASEAN Regional Forum (ARF), but we must recognise that competition is an intrinsic part of any great power relationship – interdependence co-exists with strategic wariness. If tensions rise within them, that will unsettle the region, and the domestic politics in both countries is an unknown x-factor.

Singapore's consistent position is to maintain strong links with both – close cooperation and common interests across a range of issues, and good personal relationships between our leaders and theirs, sustained through leadership changes in both countries. And there are good institutional links, for example, the Joint Council for Bilateral Cooperation with China and the US-Singapore Strategic Partnership Dialogue. These relationships are maintained by frequent high level exchanges. I will be visiting the United States shortly, in fact, next week, where I will meet Secretary Kerry. If schedules allow, I also plan to visit

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China later in the year.

Second Minister Grace Fu, Senior Minister Masagos Zulkifli and Senior Parliamentary Secretary Sam Tan will respond to the remaining questions. But let me emphasise some key points.

The uncertain geopolitical situation and global economic uncertainties continue. We have worked hard to ensure that we are well positioned to meet those challenges. We have worked to strengthen ASEAN, built up bilateral accounts with our regional neighbours as well as major powers, but we cannot be complacent. We will continue to stay alert and nimble, and to respond to challenges and opportunities.

People are the key to diplomacy – there is no substitute for people – and MFA is fortunate to have quality staff. The Foreign Service must remain competitive, both with other services in the public sector and in the private sector. And that is necessary for maintaining the high standards in safeguarding and advancing Singapore's interests.

Madam, Mr Ong Teng Koon and Ms Ellen Lee asked about our relations with the EU and other major economies, including the Latin American countries. Ms Ellen Lee also asked about the time taken to conclude our FTA negotiations with the EU.

Negotiations on the US-Singapore Free Trade Agreement started in March 2010. It was substantively concluded on 16 December 2012. This is about the same time as we have taken to negotiate our FTAs with the US, China and India. Both the EU and Singapore wanted the FTA to be comprehensive and ambitious. It covers not just conventional trade issues, such as tariffs and custom procedures, but also newer issues, such as renewable energy generation and sustainable development. MFA and MTI had to negotiate these issues carefully, consulting multiple stakeholders, including our local agencies and business associations and the 27 EU member states and understanding the present and future realities and needs of both parties. Our general approach towards all negotiations is that it is more important to do it right than to do it fast. We are confident that we have secured a comprehensive and high quality agreement that will benefit both businesses and consumers of both regions.

We are also negotiating the EU-Singapore Partnership and Cooperation Agreement (ESPCA), which is a broad framework agreement for deeper

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economic, political and cultural cooperation between Singapore and the EU. Approval of the EU FTA and ESPCA by the EU Council and ratification by the European Parliament and national Parliaments of 27 EU member states is a complex process and will take time.

Ms Ellen Lee also asked about people-to-people exchanges with the EU. In fact, we agree with Ms Lee that we need to promote broad-based exchanges between Singapore and the EU and, in fact, we have been doing so. On the education front, the Universities have already started many exchange programmes and also, on the cultural front, we have many offerings from European countries and performance groups in the area of film festivals, performances, exhibitions of paintings and art work. There are extensive exchanges across a broad range of areas, from political, economic to people to people.

EU countries are important sources of investments in Singapore. Similarly, investments from Singapore into EU countries have been gaining strength. It stands at $47 billion as at 2011. Repsol is the latest. It is a commercial decision by our business. For increasing our presence in EU and in Singapore, it is important to have deep economic relations. We will continue to be supportive to our businesses in expanding the economic opportunities overseas.

We have maintained good relations with other key partners of strategic importance to us. The EU-Singapore FTA joins a network of FTAs that Singapore has with the world's major economies – ASEAN, US, China, Japan, the Republic of Korea, India and Australia. We are also negotiating the Transpacific Partnership Agreement which started with Brunei, Chile and New Zealand, and now includes the US, Australia, Peru, Vietnam, Malaysia and, more recently, Mexico and Canada. We hope Japan will join soon. Japan is a strategically important country that should not be excluded.

These FTA networks are not just important economically but also strategically. They provide strong institutional links to key global and regional powers. Members will know how vital international trade is to Singapore. As our FTAs are all WTO-plus – in other words, they have better terms than WTO commitments – collectively, they help to provide an added impetus to global trade liberalisation talks.

We would like to thank Mr Ong Teng Koon for highlighting the potential of Latin America as well as giving us an education on football. It is important that we continue to engage emerging markets in Latin America. We fully recognise

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that it is increasing in economic and political influence. Trade with the region has more than doubled since 2005 to reach US$30 billion in 2011. Countries like Brazil and Mexico are playing important roles in international bodies, such as the UN, G20 and WTO. This is why we opened our first Embassy in Latin America in Brazilia in September 2012. Minister Shanmugam will be visiting Brazil in early April.

It is also interesting to note that the Latin American countries are expressing greater interest in Asia, in ASEAN and in Singapore. We have stepped up political engagement in the past few years, both at the leaders' and at the official levels, through institutionalised bilateral political consultations. In the past three years alone, we have concluded five air services agreements with Brazil, Ecuador, Paraguay, Colombia and Uruguay. We have signed a DTA with Panama and are in negotiations with Ecuador, Peru and Uruguay. We have also signed a partial Visa Abolition Agreement with Brazil, and both Uruguay and Mexico have unilaterally waived visa requirements. These agreements, including work on investment guarantee agreements, will make it easier for our companies to do business in Latin America.

Ms Ellen Lee asked about the passing of Venezuelan President Mr Hugo Chavez. First of all, let me express my condolences to the people of Venezuela on the passing of President Hugo Chavez who will be sadly missed by his people.

Singapore enjoys good economic ties with Venezuela. We understand that presidential elections will be held in 30 days and Vice-President Nicholas Maduro will assume the presidency in the interim.

We will continue to work closely with President Chavez's successor in strengthening our bilateral relations. Senior Minister of State Mr Masagos Zulkifli, will now speak about our engagement of major markets in the Middle East.

Mdm Chairman, Minister of State Teo Ser Luck and Senior Parliamentary Secretary Hawazi Daipi asked about developments in the Middle East and Singapore's efforts to tap on the emerging markets in the Middle East and Turkey.

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Singapore is actively expanding our reach to emerging markets in the Middle East. We are monitoring the fluid geopolitical situation in the region closely where the uncertainties are mainly in Levant and the Maghreb. Our focus in the region remains on the Gulf countries which are stable, perhaps except for Yemen. Last year, our trade with Middle East countries reached S$75.9 billion. We will establish a Consulate-General in Muscat, Oman, later this year. With this, we now have a diplomatic presence on the ground in Egypt, Saudi Arabia, Abu Dhabi, Dubai, Qatar and Oman.

Our engagement is not only economic. There remains keen interest to learn from Singapore's developmental experience. For instance, the Crown Prince of Abu Dhabi, Sheikh Mohamad bin Zayed Al Nahyan, instructed officials to visit Singapore just a few months ago to understand our water management strategies – a strategic issue for the UAE.

We also received study visits by the Egyptian Muslim Brotherhood to learn from our developmental experience in areas, such as economic planning, developing SMEs, public administration and port management. I called on President Mohamed Morsi when I visited Cairo last November, and he expressed admiration for Singapore's achievements. As Egypt undergoes a challenging political transition, Singapore is happy to share our experiences where relevant.

The Palestinians have also expressed interest in learning from Singapore. Last month, I attended the Conference on Cooperation among East Asian Countries for the Palestinian Development in Tokyo where we pledged Singapore's assistance towards the Palestinian National Authority's capacity-building efforts – an enhanced technical assistance package worth S$5 million over five years. I also met Prime Minister Salam Fayyad, who highlighted education as one area they are keen to learn from Singapore's experience.

Singapore has been expanding relations with Turkey too, which has a growing importance both in the Middle East and Asia. We opened an Embassy in Ankara in July 2012 and there has been increased bilateral engagement. Minister Shanmugam visited Turkey in January 2013 and he had a good discussion with Turkish leaders on how to enhance economic, transport and cultural relations.

Another emerging market that we have been watching is Africa, where recent developments and economic performance have opened up possible

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opportunities for Singapore companies.

Let me now hand over to Senior Parliamentary Secretary Sam Tan who will respond to the rest of the questions on Singapore's technical assistance to other countries and MFA's consular assistance to Singaporeans.

Mdm Chairperson, Mr Teo Ser Luck and Ms Irene Ng asked about the rationale behind Singapore's assistance to other countries and how this has benefited Singapore.

Mdm Chair, Singapore extends technical assistance to other countries, mainly through the Singapore Cooperation Programme (SCP). This is the right thing to do because we want to give back something to the international community for the assistance that we had received in the early days of our independence. However, we do not extend financial aid or fund infrastructure projects as we find that giving technical assistance is actually the most effective and the prudent way for us to help others.

Through the SCP, we train officials from many other countries in areas where Singapore is strong, such as public administration, economic development, port management, civil aviation and water management, and the list goes on. Helping our neighbours and friends through the SCP can, in return, benefit Singapore, too. A good part of the SCP is aimed at strengthening ASEAN. It is in our interest that our region is well governed and attractive to international investment. So, Singapore also benefits when other countries are well equipped to deal with transnational challenges, such as financial crises, terrorism and pandemics.

The SCP also helps Singapore build friendships. The SCP is very well received and well regarded by our friends and partners and, since the establishment of the SCP in 1992, we have trained more than 80,000 officials from over 170 countries. So, for a small country like Singapore, it is important to have this international network of friends who help us defend our interests at the United Nations and also other international organisations.

Mdm Chairperson, Mr Sitoh Yih Pin and Mr Alex Yam asked about what MFA deems as reasonable or unreasonable requests by Singaporeans for consular assistance. I would like to take this opportunity to assure Mr Alex Yam that our consular officers have long passed through the stage of "Cinderalla", although they may not have been transformed into princesses. Nonetheless,

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they live quite happily ever after, so long as they do not receive too many of those weird or unreasonable consular requests.

Madam, there is an increasing challenge of meeting the rising demands for prompt and effective consular services. From 2001 to 2012, overseas travel by Singaporeans increased by 67% from 3.8 million to 6.4 million annually. In 2012 alone, MFA handled almost 4,000 cases of consular requests for assistance. MFA treats all the requests for consular assistance seriously and we will continue to do all we can to assist Singaporeans in distress. But there are also clear limits to which and to what we can do. We need to act in accordance with international conventions, for example, the Vienna Convention on Consular Relations. We also need to respect local laws and the judicial processes in other countries.

Mdm Chairperson, most of the consular requests are reasonable and have been rendered the necessary and appropriate assistance. But like what was mentioned by Mr Sitoh Yih Pin just now, he quoted the BBC's report on weird consular requests and I would also want to report to this House that, in Singapore, we, too, face a fair share of such unreasonable and weird requests. Just let me cite a few examples. We had a request for assistance from a Singaporean to seek a refund after he had procured illegal sexual services. Another case involved a Singaporean living in Indonesia and he requested MFA to ship to him a desktop computer that he had ordered online from the US. Another Singaporean had also sought MFA's assistance to persuade his foreign girlfriend to expedite her divorce proceedings with her husband so that he could marry her.

Such requests divert our limited resources from handling cases of Singaporeans in genuine distress. We are continuing to train and professionalise our Consular Officers at headquarters and at our Overseas Missions. We are also constantly reviewing our work processes to better meet the public needs for effective consular services.

Our 47 Overseas Missions are supported by another 29 Honorary Consuls-General offices which provide consular coverage in countries where Singapore does not have resident missions. Where we do not have representation, there is also an agreement among ASEAN countries to help each other's nationals when there is an emergency. We can also request assistance from friendly countries like the UK, Australia and New Zealand to render consular services to Singaporeans in places where we do not have a presence while these countries

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have a presence.

Finally, we are also leveraging on new technology to improve the quality of our consular services. We launched a mobile application called MFA@SG in August 2012 to allow the public to eRegister and access useful consular information on their smartphones. So, I would like to take this opportunity to encourage Singaporeans to eRegister with MFA when they travel overseas. This will allow MFA to provide timely information to them should there be emergencies in the countries that they travel to.

In conclusion, Mdm Chairperson, as Minister Shanmugam mentioned, MFA will face increasing demands and challenges, not only because of external uncertainties, but also from rising expectations of Singaporeans. We will continue to work hard to tackle these challenges so as to uphold Singapore's and MFA's credibility and good standing, both in the international arena and also amongst Singaporeans.

We have a bit of time for clarifications. Do any Members wish to seek clarifications?

Mdm Chairperson, I would like to thank the Senior Minister of State for talking about the launch of the electronic service. That was one of my suggestions last year. I would like to ask the Minister regarding visa-free travel. I understand that the Singapore passport can actually be used to travel to 164 countries visa-free. Within ASEAN itself, the only country that we cannot travel to visa-free is Myanmar. I am not sure whether MFA is working on this, and when will Singaporeans be able to travel visa-free to Myanmar. That is one question.

The other question is on ASEAN Community 2015. What is the Minister's assessment on ASEAN Community 2015, and whether we will be able to achieve the target? Last of all is that when the KL-Singapore high-speed rail is achieved, will there be a possibility there will be a passport-free travel between Singapore and Malaysia?

Let me take those three questions in sequence. For visa-free travel to Myanmar, it depends on the Myanmar authorities. Each country decides the framework for immigration, and the current approach of the Myanmarese government is that they require visas. Sometimes, these issues depend on reciprocity as well. In general, and I am not just talking about Myanmar, if reciprocity is required, then from our end, we will also have to

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consider and assess the security situation which depends on Home Affairs and its agencies. That really answers the third question as well in terms of Malaysia and Singapore.

As regards ASEAN 2015, it is a goal, a vision, something that we want to achieve. It is in our interests as well as the interest of all the ASEAN countries to achieve it. And we have a two-speed process for that because different countries are at different levels of development. We have made considerable progress in terms of removing tariff barriers, in terms of people-to-people connections and political and strategic issues. What I can say to Members is that we will continue to work very hard to try and achieve it. It does not just depend on us; it depends on other countries, their internal processes and political processes. So, we will have to see.

Thank you, Madam. In my speech I spoke about the challenges facing ASEAN and urged Singapore to play a more proactive role in getting ASEAN back on track. Can I ask the Minister, how he sees Singapore's role in improving relations in ASEAN and guiding ASEAN through this turbulent and uncertain time, even if it is leading from behind? Does MFA have any specific ideas on how we can drive ASEAN in the right direction towards a more cohesive and strong and autonomous ASEAN?

I think the question raises two aspects. It is not just about relationships within ASEAN that may have an impact on ASEAN unity. It is also about relationships between specific ASEAN countries and external powers, which could have an impact on ASEAN unity. ASEAN, as an organisation, moves on the basis of consensus. The inherent logic of ASEAN acting together is obviously there, but at the same time, each country looks at its own interests while looking at it within the framework of ASEAN unity. And on specific issues, any country may well decide its interests do not coincide with that of the other countries. In such situations, it is not often easy to convince any particular country that, for the sake of ASEAN unity, they should take a particular position. Every country understandably will put its own interests, front and centre.

What are we doing about it? We work closely with many other countries to try and move ASEAN further, for example, towards the vision of ASEAN 2015. If you take the South China Sea dispute, the Foreign Ministers' meeting last year in Phnom Penh did not end in a glorious success. There was no joint

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communique. But soon thereafter, we had the Six-Point principles issued at the initiative of Indonesia. We were very supportive of Indonesia's initiative. Likewise, we, in our own way, have talked to all the different ASEAN countries to see how we can come together and move together. We have played a significant role in the ASEAN 2015 vision, both on the trade and industry side, as well as on the MFA side. We work very closely with our partners in ASEAN. But there is a limit to what we can do in the context of an ASEAN where each member has its own interests and where many, many countries are interested in ASEAN, because it is a region which is dynamic and growing.

Mdm Chair, I am happy to hear that Cinderella now lives a somewhat happier-ever-after life. But this brings me to a question that I raised earlier that has not been covered as yet. I understand that our Foreign Service Officers are paid in a separate pay scale as compared to the rest of the Administrative Service, as such, I would like to know whether or not our officers are adequately compensated for what is definitely challenging work that they are doing.

Mdm Chair, I thank the Member for the clarifications. The Foreign Service Officers are paid within the overall framework of the civil service, so although their pay scale may be slightly different, but it is still within the framework. From the number of the turnover that we have seen in the Ministry, it suggests that the morale is still high, people are still fairly happy and, therefore, we are quite happy to see the situation. However, as the civil service has done, we will also be periodically reviewing all the terms and conditions to make sure that the Foreign Service Officers will remain a happy lot.

Madam, listening to Senior Parliamentary Secretary Sam Tan talking about the unreasonable requests of some Singaporeans, such as the illegal sexual services procured and asking MFA to intercede on behalf of his foreign girlfriend, reminds me of the saying that the twist to the words "Foreign Affairs" may be taken too seriously by some Singaporeans.

MFA has done a great job of providing our Singaporeans with consular services. But can I ask the Senior Parliamentary Secretary given the increasing demands, whether there is sufficient funding to our Missions and also to improve its programmes. As the Minister has mentioned, diplomacy involves human contact and personal relations and engagement on the ground. Do we invest enough in programmes for our Missions to carry out, to build relations

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and to build goodwill, and at the same time to project a softer face of Singapore to the world, especially through cultural programming?

Madam, as regards Ms Irene Ng's point, we will certainly try and do that – or to continue, within our limited resources. But we will certainly try and continue. If I may also deal with the point about remuneration of Foreign Service Officers. We try and keep morale up; we try and reward them appropriately. But, of course, there is always a difference in perception, within the service, as to whether the remuneration is adequate. It is a continuing conversation that we will have to have in the Foreign Service with the Public Service Division.

Dr Lim Wee Kiak, do you wish to withdraw your amendment?

Mdm Chairperson, let me thank the Minister, the Second Minister, as well as the Senior Minister of State and Senior Parliamentary Secretary for their comprehensive answers to all our cuts. I would also like to thank the men and women of the Foreign Service for keeping our Singapore flag flying high overseas. Madam, I beg leave to withdraw my amendment.

[(proc text) Amendment, by leave, withdrawn. (proc text)]

[(proc text) The sum of $389,459,800 for Head N ordered to stand part of the Main Estimates. (proc text)]

[(proc text) The sum of $60,000,000 for Head N ordered to stand part of the Development Estimates. (proc text)]

Madam, I beg to move, "That the total sum to be allocated for Head R of the Estimates be reduced by $100".

I first declare my interest as a practising lawyer. I would like to begin by commending the Ministry for the many legislative and policy changes implemented in the past year. One key move was in respect of the mandatory

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death penalty. On the whole, the move to give our courts wider discretion in sentencing has been applauded. Likewise, the changes in respect of legal aid, to refine the means test to allow legal aid for proceedings before the Commissioner for Labour, this allows more Singaporeans to receive legal aid and, therefore, legal representation.

Madam, these changes signify a shift in putting more heart in our laws and policies. Consistent with this approach, I would like to highlight several areas for consideration. First, I believe more can be done to expand the pool of resources available for legal aid. There are untapped legal resources we should explore. These include retired lawyers, in-house counsel and academics. One problem would be that these individuals would have to apply and pay for practising certificates, which is sometimes inconvenient. Will the Ministry allow a limited practising certificate which can be issued without payment or other usual formalities solely for the purposes of appearing in legal aid or probono cases?

Further, I am troubled by the high number of accused who appear at their first criminal mention unrepresented. I mentioned the figure at 47% at the debate on the Legal Aid Amendment Bill. Will the Ministry consider enacting a scheme where accused with legal representation can obtain simple advice and guidance in respect of the charges against them and their options, at least before their first mention? This will reduce the fear and anxiety many of them faced when they appear before the court, and allow them to make more informed decisions about how they respond to the charges. We could involve law students or those doing their Practice Law Course to assist in this. It will provide them valuable hands-on training and may even encourage more of them to practise criminal law when they qualify.

Related to this is an issue I raised in 2010 and that is the recording of statements of accused or witnesses in criminal proceedings. Recently, there has been a number of high profile cases where the time of the court has been taken up to determine whether statements of the accused and witnesses were properly recorded or accurately represent their evidence. I had raised in 2010 the possibility of having a more independent check on this process and that would include having the statements recorded by video – by having a video recording of the statement-taking process – or at least having an independent third party, like a Commissioner for Oath, sign off on the statement before they are made final. These would cut down the costs of trial – of court time – to determine the integrity and accuracy of the statements and will give more confidence in the reliability of these statements when they are used in court.

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My next point relates to the need for laws against hate speech and greater privacy laws in Singapore. The advent of the Internet and social media has improved access of information and allow the ordinary citizen to air his opinions online. This is a good thing. However, the anonymity that the Internet affords has also led to a deterioration of social mores and etiquette on online platforms. While rude expressions per se should not be restricted simply because they are unpleasant, we should be concerned when hate speech and hateful ideas are spread online by vilifying, disparaging, ridiculing or inciting violence against particular groups of people; hate speech threatens social cohesion and stability. Some countries have enacted legislation prohibiting and criminalising hate speech, and even speech online.

We have the Sedition Act but that may be too blunt a tool to use in some situations. A more focused legislation against hate speech or inappropriate conduct online may be timely for it to give more responsive and effective remedies.

Related to this is a need for stronger privacy laws. In January this year, following the horrific accident in Tampines that claimed the lives of two young brothers, photographs showing the mangled state of their bodies were circulated rapidly on the Internet. The photographs made a spectacle out of a tragedy and robbed the family of their privacy and dignity that they deserved. This is only one incident. The recent sex corruption cases have seen photographs of innocent women circulated on the Internet, speculating whether they were the parties involved. There are many instances online where people snap photographs of others in public spaces for the purpose of subjecting them to online ridicule and scorn.

The question is whether we as a society find this acceptable and, if not, whether the Government should step in to do something about it. At the very least, we should allow persons who are aggrieved the facility to bring an effective response themselves. Most people will not have the ability or resources to discover the persons behind inappropriate posts online. Our judicial system is difficult for ordinary folk to navigate without incurring significant costs to obtain discovery and, subsequently, redress. There should be a facility to enable discovery of the identities of persons who put up inappropriate posts and for effective remedies for these posts to be taken down swiftly. I ask the Ministry to consider setting up a bureau or agency to offer such services to the public.

Finally, may I ask the Minister for an update on the Qualifying Foreign Law Practice (QFLP) scheme? How many more licences does the Ministry intend to

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issue? And what gaps in our legal services does it hope to bridge in the next round of licences?

Madam, I would like to raise two areas for review concerning the investigation and pre-trial stages of criminal cases. First, I would like to revisit the suggestion to video record the statements given by accused persons in custody, which Mr Hri Kumar just touched on.

This practice of video recording is in place in various jurisdictions, including Australia, the United Kingdom, South Korea and Taiwan. Its purpose is as a safeguard, to ensure that the person in custody gave his statement voluntarily and that the words in the statement fell from the accused's own lips and were not force-fed.

I first raised this issue during MinLaw's COS five years ago in 2008. At that time, the Government's response was that video recording does not ensure that statements are voluntarily given. In 2011, MinLaw made a similar response after the Ismil Kadar case.

While I agree that video recording is not a fool-proof guarantee against impropriety or allegations of such, the benefits of doing so are undeniable and accrue to both the state and the defence. For the state, it offers significant protection to our law enforcement officers against groundless allegations that they threatened the accused or subjected the accused to duress. Footage of the statement recording will show the demeanour of the accused and the recording officer, to enable the court to come to certain conclusions about whether the accused's will was sapped through sleep deprivation or he was not in a proper frame of mind during the recording. Furthermore, statements are often challenged by the defence on the ground that the words in the statement were put in by the recording officer and did not come from the accused. A video recording will settle that question decisively.

In other countries, video recording has been found to save Police and Court time, as both sides may decide not to pursue certain matters after viewing the recording. At the same time, it is a safeguard to maintaining high standards of law enforcement. We in Singapore may need this safeguard even more, since an arrested person's right to see counsel under arrest is so limited. Would the

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Government at least re-think its position on this issue or at least for capital cases?

Secondly, the Criminal Procedure Code 2010 introduced a new pre-trial case disclosure regime where both prosecution and defence are required to disclose evidence relevant to the case well ahead of the trial. Since its implementation, I have assisted as defence counsel in a few court cases under the framework, and I can see its value and contributions towards a fair trial. Currently, only District Court cases under the Penal Code and selected statutes come under the disclosure regime. Other cases, for example, those charged under the Prevention of Corruption Act (PCA) have not been brought under the framework yet. As the framework has proven useful and successful, when will its scope be expanded to cover other laws like the PCA?

Madam, the fourth Presidential Election in August 2011 was the first contested election for the presidency since 1993.

Candidates presented competing, and often conflicting, visions of the Elected Presidency. In some respects, the conflicting visions were encouraged by the electorate which had high expectations, and saw the President as a political player to function as a check on the Government.

This is notwithstanding that Singapore's Head of State is not vested with the same powers as the executive Presidents of the United States, France and many Latin American countries.

There was the palpable expectation that the presidency should be a watchdog that can both bark and bite. The sense was that the current reactive powers of the Elected President results in a watchdog that could only bark, and even then only in limited circumstances.

However, put simply, the Elected President is not designed as a countervailing source of political power in our system of Government.

The silver lining is that Singaporeans saw the first presidential contest in 18 years as an opportunity to demonstrate their aspiration for a more robust political system and to entrench good governance.

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Would the Government consider using the next couple of years before the next presidential election to create better awareness and understanding of the constitutional limits of the Presidency? I note the Minister's own efforts in trying to clarify the role and function of the Elected President but I felt that it did not make much headway in the lead up to the hustings, particularly as it came on the back of the bruising 2011 General Election.

Madam, candidates must run for the office that exists, not one that they wish to have. The Elected President is a little understood and a much misunderstood institution in our system of constitutional government.

More importantly, the electorate must be discerning to know which candidate is over-promising on the Elected President's constitutional powers and mandate. I make this call to Singaporeans to better understand our system of Government.

At the same time, I call on the Government to let the Elected Presidency to evolve in tandem with Singaporeans' reasonable expectations of the roles and functions of the office, all in the name of entrenching good governance.

Madam, the Small Claims Tribunal (SCT) has been kept busy and efficiently handled numerous small claims for a whole range of claims. My residents, as well as some of the freelance professionals whom I have come into contact with, have shared with me the limitations of the Small Claims route. The issue is not with the process and getting the order but the costs of litigation if one seeks to enforce the small claims judgement. For example, if the amount of judgement claims is $1,000 or even $5,000, the cost to enforce, if the losing party refuses to pay, may render it not worthwhile to take further civil action. Can MinLaw help plug this lacuna and provide some recourse for the claimants who have judgement in hand?

In line with my earlier point on enforcement of small claims is the incidence of small companies which are liable to pay under a small claims judgement and end up winding up the company and setting up shop under another company and a new name. The claimant is often left in the lurch. Can MinLaw do something to help such claimants?

And, finally, with an increase in our population and the rising number of household units and the close proximity of neighbours, the frequency of

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disputes between neighbours is likely to increase. It can be noise, smoke, dripping water, excessive items along corridors, to invasion of space. Besides community mediation, a Magistrate's Complaint, and show cause action by the Police, can we not set up a tribunal for neighbourly disputes which should incorporate compulsory mediation, penalty provisions and establishing community norms?

Madam, I would like to follow on from the suggestions by my colleague, Mr Patrick Tay, about the discussion for developing a Community Mediation Framework. In particular, whether it is possible if the first round of mediation does not resolve in an amicable situation, then an appointed body or group issues a notice to the party or parties involved requiring them to comply with an appropriate or described set of behaviours.

And where the offence then is a failure to comply with the notice, rather than letting cases drag on until one party reports the matter to an authority, the other party gets fined and the relationship becomes more strained and very adversarial, I am not suggesting that we could use this opportunity to develop a framework to draw up a list of offences – which may be a difficult list to agree upon. It is the process which is prescribed and the failure to engage with the process that is the offence.

For long-drawn disputes where either party refuses to attend mediation, could the act of refusal to attend mediation be considered as an offence and give the process of mediation more bite and enhance its effectiveness?

Mdm Chair, our bankruptcy laws currently try to strike a balance between allowing debtors to maintain a modest lifestyle, while providing creditors with the opportunity to recover some of the debts owed to them in an equitable manner. In many countries, bankrupts might lose their houses and life savings when bankruptcy occurs. In Singapore, the fact that HDB flats and CPF monies are protected from creditors in the event of bankruptcy provides significant protection for debtors.

There are two specific aspects of our bankruptcy regime where I think we could be even more liberal to debtors. The first is in cases where the bankruptcy is the result of business failure. Now, this is quite a common cause of

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bankruptcy for small business operators who trade in their own name or for those who might provide guarantees for companies when securing loans. In relation to many of these businessmen, once the business fails, and they become bankrupt, that probably means that they will not be able to continue running the business and they may have to find a very different means of earning a living. If they do not have proper educational qualifications, this may mean a substantial drop in income. And this puts them in a bind because it means that their income would be reduced, which makes it more difficult for them to get out of bankruptcy. But if they do not get out of bankruptcy, they will not be able to go back to doing business. It also means that many of these operators do not get a second chance to get back into business even though they might have learned from the first failure and might be able to do better the second time.

A slightly different approach towards bankruptcy is the approach taken by Hong Kong where bankrupts are generally given discharge after four years if they conduct themselves well while they are bankrupt. Creditors may object to the automatic discharge but only on very limited grounds, namely, if the bankrupt did not comply with the conditions of the bankruptcy. This is obviously a much more liberal regime than Singapore. But I think it is probably a direction that we could move in if we want to encourage entrepreneurship and risk-taking. Hong Kong is well-known for entrepreneurship. And I also think the risk of credit freezing up is not that big an issue because businesses remain vibrant to Hong Kong. This might be one approach to allow those who fail in business to pick themselves up again.

The second area where I think our bankruptcy regime can be a little more liberal is those who become bankrupt as a result of unsecured personal credit. These are typically people who incur a large amount of consumer debt. This can come in the form of credit card debt, generous consumer lendings, such as those offered by some electrical and furniture shops, as well as unsecured personal loans from banks and authorised moneylenders. Unauthorised moneylenders are also a problem, but they generally would not be creditors in bankruptcy.

The main mischief here is I sometimes get very concerned when I see how easily consumer credit is extended. I see low-income families buying very large television sets, for example, because low monthly instalments are a great attraction. But when they default, the furniture or the electronic goods they buy get seized and they may be made bankrupt if the debt is sufficiently large.

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Credit cards continue to be marketed quite aggressively, giving people additional spending power. But if people cannot pay these debts, then the interest rates are usually quite substantial and, again, they might end up in a vicious credit spiral. If people were to become bankrupt as a result of unsecured personal credit, we could probably be more liberal than letting them being discharged as well.

I understand the main risk in having a more liberal bankruptcy regime is that we may create moral hazard where people may borrow excessively and borrow more than is prudent. But I also think that this risk is something that can be managed because what it means is that lenders will also become more prudent in how they lend. If they know that there is a chance that people may be discharged from bankruptcy more easily, they will be more careful in extending consumer credit and this, I think, is a good thing.

Madam, the law protects HDB flats and the proceeds of sale of such flats from being used as a security or collateral for any debt. The exception is for housing loans.

When a person becomes bankrupt, his flat is also protected from other creditors as the HDB flat does not vest in the official assignee. This protection is consistent with the HDB flat's status as public housing. When an owner of an HDB flat falls into mortgage arrears, the HDB will help him to restructure his payments and explore ways to help him. But if that does not work out, he would be encouraged to right size by moving to a smaller and more affordable unit.

In a very worst case scenario, if substantial arrears accumulate and nothing is done, HDB may compulsorily acquire the flat and compensate him. This puts certain households who owe substantial debts in a quandary. If they sit tight, their shelter is assured and their flat is protected from creditors. However, this is not financially prudent. Housing arrears build up and there is that worry about compulsory acquisition at the end of the day.

On the other hand, if they proactively try to downgrade to a more affordable unit, the full amount of cash proceeds from sale of their flat becomes fair game for creditors such as moneylenders, credit card companies and banks. The cash proceeds will also vest in the official assignee on bankruptcy. I believe this will be case even if the owners attempt to use HDB's enhanced contra facility. This is problematic because debtors often need to use a portion of cash to buy a

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smaller home and, if the proceeds are seized by creditors, they will lose their roof. This is not ideal.

Some residents I have met are caught in this bind. I would like to propose that MinLaw enhance protection of public housing for Singaporeans and plug this gap by putting cash proceeds from the sale of flats beyond the reach of creditors, whether in bankruptcy or otherwise, to the extent that such portion of cash proceeds is needed to be used for the payment of another flat.

Mr Edwin Tong is not in the House. Mr Arthur Fong.

Madam, Singapore has earned a reputation internationally as the country that can get things done, with good infrastructure, capable IT support and personnel and a knowledge-based economy. These are the basic, necessary and vital ingredients to achieve our ambition to be an Intellectual Property hub. If I may add one other critical ingredient necessary to be an Intellectual Property hub is our impartial and efficient legal system.

Madam, the areas of IP patents, royalties and licensing are important ones and set to grow. The World Bank listed royalties and licensing to be worth about US$200 billion.

The number of patents is growing at a furious pace of 45% annually.

We should have a slice of that pie. But we must work at removing some impediments to growing the IP industry. Perhaps, even consider a review of section 34 which could blind-side an IP newbie, mostly inexperienced start-up individuals, registering their product overseas first and not being aware of the requirement under this section and would be fined.

More communication and education are needed to counter potential "leakage" of IP filings going elsewhere. Could the Ministry study if this section could be removed or reviewed altogether or have more publicity or comprehensive communication plans such that the public is aware of this? Secondly, would MinLaw also consider setting up a Do-it-Yourself registration, a DIY facility, especially for small companies, many of which are start-ups, who

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may find it costly to register through the services of a lawyer?

I look forward to the Minister for Law updating the House on the plans to further develop Singapore into an IP hub. How else can we help our local businesses to commercialise and exploit the IP that they own?

Minister Shanmugam.

Mdm Chairperson, I thank all who spoke.

Mr Hri Kumar asked for an update on the impact of significant legislative changes in the past year. MinLaw administers over 80 Acts, which is about 20% of the Statute Book, which we review and seek to reform from time to time. A number of reforms were made in the last financial year.

Looking at criminal justice, the Evidence Act was amended to expand the court's discretion to admit hearsay and opinion evidence. As regards sexual assault victims, we made it clear that cross-examination on sexual history can only be done when directly relevant.

Together with MHA and AGC, we worked on and brought before this House, reforms to the mandatory death penalty in relation to drug trafficking and murder, as well as the procedure for the Court of Appeal to review death sentences. The transitional cases are now being dealt with. We will monitor the impact on our crime rates as a result of these changes.

Separately, a law reform committee led by the Senior Minister of State for Law will be looking at rationalising the Penal Code offences relating to homicide and hurt where death is caused; and whether and to what extent mentally disabled offenders should be punished differently across the whole spectrum of criminal law.

Mr Kumar also asked about hate speech in the context of the Internet. I think that Members would know that yesterday, Deputy Prime Minister Teo made some comments about reviewing this area. We will update the House when that review is completed.

To boost the legal services sector, we amended the Legal Profession Act, the International Arbitration Act, and the Foreign Limitation Periods Act. If you

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look at the Legal Profession Act, we widened ad hoc admissions for Queen's Counsel. More flexibility was also given for Singapore firms to collaborate with foreign firms.

Under the International Arbitration Act, we updated the definition of arbitration agreements, recognised emergency arbitrators, clarified the tribunal's power to award interest and allowed judicial review of negative jurisdictional rulings.

As regards the Foreign Limitation Periods Act, it was made clear that, where a case is governed by foreign law, the issue of limitation will be governed by foreign law. This has made Singapore a more neutral forum.

The amendments were made as part of an overall effort to develop our arbitration sector. It is difficult to pinpoint the effect of each change on the legal sector, but you can see, in broad terms, the overall effect on our legal sector. In 2012 – the nominal value-add from legal services was estimated at around $1.85 billion. In 2008 – it was $1.48 billion. That is a 25% increase. And if we have a vibrant legal services sector, that will in turn support the banking sector, the finance sector, corporate headquarters in Singapore and areas which require sophisticated legal support.

Other changes we made include the Legal Aid and Advice Act, where we updated the means test to keep pace with the cost of living, and try and protect vulnerable persons in family disputes. With the amendments, an additional 300,000 citizens and PRs can meet the income test. That is about 25% of Singapore residents, up from the current 17%. The Civil Law Act was expanded to give greater discretion to distribute property of deceased persons with no heirs. For example, unclaimed CPF monies are now covered. That Act came into effect on 15 February 2013 and I have tasked the Public Trustee to take charge of its administration.

For the Moneylenders Act and Rules, we enhanced the enforcement powers of the Registry of Moneylenders, extended interest rate caps, prohibited up-front fees which increased borrowing costs, and removed exceptions to caps on unsecured lending. This and earlier measures reduced the volume of moneylending, and the number of moneylenders fell from 249 in 2011 to 209 in 2012. The value of the loans fell from $480 million to about $260 million over the same period [Please refer to Official Report of 7 July 2014].

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Moving forward, we will continue to reform the law across the different areas of legislation that MinLaw covers.

One of the major areas that will be covered this year is our bankruptcy and insolvency regime. Mr Vikram Nair asked if we can consider an easier regime to discharge certain types of bankrupts: bankruptcies due to business failure and bankruptcies due to unsecured consumer credit. I think there is merit in differentiating between the different types of bankrupts. We have started a review of our discharge policies, but I ask that Members bear in mind that we have to balance between the creditors' interests and discharging bankrupts where it is just to do so, without creating a moral hazard. We will certainly consider the Member's views in the review.

We will also consider the Member's views in the context of the Insolvency Law Reform Committee. That Committee will be finalising its report on the Omnibus Insolvency Bill which will improve and streamline personal bankruptcy and corporate insolvency regimes. We will also consult the public after reviewing the Committee's report and our discharge policies.

In this context, Mr Desmond Lee asked whether our laws would allow a HDB flat owner who is in financial distress but not yet a bankrupt to downgrade to a small flat without having the proceeds of the sale taken by creditors. Under the Housing and Development Act, HDB flats in general cannot be used as security. In bankruptcy, the HDB flat owned by at least one citizen will not vest in the Official Assignee; that is to say that it is not available to the creditors. The High Court has also ruled that that protection also applies to proceeds from the sale of the HDB flat. Those in financial distress should be aware of these bankruptcy protections. We will also ask MND and HDB to see if there is a gap in this area.

Next, if I can move to resolving community disputes. Mr Patrick Tay and Dr Janil Puthucheary spoke on this. We note their concerns and suggestions. Community disputes, as Members recognise, fall into many categories, ranging from noise disturbances to unpleasant smells. Some are bona fide and some may suggest extreme sensitivity. It is inherently difficult to resolve these disputes because emotions tend to run high and views on what is acceptable behaviour are very subjective.

The existing framework of criminal and civil laws, I think, may need to be relooked at. My Ministry is working with MND, MHA and MCCY to see if we can develop a framework that can apply to this set of issues. This was broadly

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referred to yesterday by the Second Minister for Home Affairs in the context of what should be the norms of acceptable conduct between neighbours, enhanced mediation processes and calibrated sanctions to enhance compliance.

This is a work in progress and we welcome suggestions, but bear in mind that legislation cannot solve all issues.

Finally, on Asst Prof Tan's suggestions on improving Singaporeans' understanding of our system of Government, especially the role of the Elected President. Since 1988, when the idea of the Elected President was first mooted, the Government has explained the role of the Elected President several times. In 1999, then-Prime Minister Goh made a statement in this House. In 2011, statements clarifying the role of the Elected Presidency were issued.

The role of the President, as stated in the Constitution, is not very difficult to understand. Article 21 states clearly that the President acts on Cabinet's advice, except in certain specified areas: the use of past reserves; appointments to key public offices; ISA detentions; CPIB investigations; and restraining orders relating to the maintenance of religious harmony.

I think it is very clear. If I may refer to Asst Prof Tan's own article which was published on 31 May 2011 in the media, and I quote, "Singapore's Head of State is not vested with the same powers as the Executive President of the United States, France and many Latin America countries. Despite our President being elected, our system of Government remains a parliamentary one, in which policy making and law making are the prerogatives of the Cabinet and Parliament. Put simply, the Elected President is not designed as a countervailing source of political power in our system. The Elected President has two key custodial functions: That of protecting Singapore's financial assets and safeguarding the integrity of Singapore's public service… In layman's term, the President holds the ‘second key'. But the President cannot initiate a drawdown of the reserves or make key appointments, laws or policies; his powers are inherently reactionary. In most other areas, the President has limited discretionary power, mostly acting on the advice of the Cabinet, or being constitutionally required to consult with the Council of Presidential Advisers."

So, it is very clear. Asst Prof Tan has set it out, I have set it out, and others have set it out.

I would suggest that in the specific context that Asst Prof Tan mentioned, of candidates – or some of the candidates at least – saying what they thought

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the powers were – that it is not a problem of public misunderstanding. It is perhaps a misperception of what candidates may have considered to be the powers of the Elected President.

I agree with Asst Prof Tan that public education is important and the Government will continue to clarify these areas. Students are educated on Singapore's system of government, including the President, and on their responsibilities as citizens. These include their responsibilities as voters in presidential and parliamentary elections. They are taught at a level commensurate with their maturity through compulsory subjects, including Social Studies, and Citizenship and Character Education.

The Senior Minister of State for Law will take the remaining cuts.

Mdm Chairperson, Mr Hri Kumar asked about the QFLPs. From 2008 to 2011, the value of legal services exported from Singapore increased by 51.8% from $363 million in 2008 to $551 million in 2011. This growth has been catalysed by our calibrated liberalisation of the legal services sector, mainly through the QFLP Scheme.

In 2008, the first six QFLP licences were handed out. The six firms have done well. Eighty percent of their gross revenue comes from offshore work, work that would otherwise have been done overseas. Last month, we awarded a second round of QFLP licences to four top international firms. We will continue to monitor the QFLP scheme to ensure that it continues to contribute to the strength and diversity of our legal sector.

Mr Fong had asked about making Singapore an Intellectual Property hub. Mdm Chairperson, today, the development and exploitation of intellectual property have become a key driver of economic growth globally. The importance of intellectual property (IP) will continue to increase. Transactions in IP will become a business in itself and Singapore must ride this wave. A vibrant IP marketplace in Singapore will support high-value jobs and business opportunities for Singaporeans. It will also enable Singapore businesses and innovators to commercialise and exploit their IP. We, therefore, set up the IP Hub Steering Committee last year to formulate a Master Plan to guide Singapore's development in this area.

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The Committee has submitted its findings and recommendations to the Government. It identified three strategic outcomes that we should work towards. The first is that Singapore should aim to be an international hub for IP transactions and management, so that companies will use Singapore as a base for regional and international IP transactions, and manage their IP portfolios from Singapore.

Two, Singapore should aim to be a hub for quality IP filings for companies all over the world. These companies can tap on our IP service providers and infrastructure and use Singapore as the gateway to secure IP protection in key markets all over the world. Singapore should become a choice venue for IP dispute resolution by leveraging on our efficient, cost-effective and high quality judicial system, and alternative dispute resolution methods, such as arbitration.

To reach these strategic outcomes, the Committee has recommended that Singapore develop skilled IP professionals, networked to the region and beyond, to effectively serve the international needs of companies. Also, we should build a conducive and progressive environment to encourage IP players worldwide to bring their IP activities to Singapore, and thus create a thriving IP eco-system in Singapore, entrench our status as an IP hub, and position us to assert thought leadership in the field.

We are in general agreement with the recommendations of the Committee, and we intend to aggressively develop Singapore into a regional and international IP hub. Detailed announcements will be made over the next few months on this front.

Mr Fong also asked about the review of section 34 of the Patents Act, currently referred to as the National Security Clearance (NSC) provision, which is meant to safeguard the disclosure of information prejudicial to national defence interests and public safety. Patents agent professionals are aware of the requirements and the clearance process at IPOS is simple and quick. Information about NSC is available at the IPOS website, but IPOS will study how to further raise awareness of the provision among companies.

On Mr Fong's suggestion to set up a DIY facility, it is already possible today for companies to file IP, such as patents and trademarks, on their own, but most still seek IP service providers for professional assistance. Companies can enjoy a 400% tax deduction or 60% cash payout on IP registration under the Productivity and Innovation Credit (PIC) scheme. This can include the

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associated fees paid to professional service providers.

On the Small Claims Tribunal – an issue raised by Mr Patrick Tay – legal costs for proceedings are minimised as the process is simple and parties appear in person. Money orders are enforced through the Magistrates Court through the Writ of Seizure and Sale (WSS), and the filing fee for the writ of execution to enforce the Tribunal's order is $105, which is 30% lower than the fee for a case not under the Tribunal. Incidental costs of enforcement, such as bailiff and auctioneer fees, may bring the total cost of the enforcement to about $400 to $600. However, the Court will generally order the losing party to bear all enforcement costs, so that the successful claimant may not need to pay.

We are conscious of the cost factor in our on-going review of the Small Claims Tribunal Act together with the Subordinate Courts. We will ensure that the Small Claims Tribunal stays true to its purpose of providing effective and swift redress for small claims.

Mr Patrick Tay had asked about consumers' recourse against errant companies who fold up and set up as new companies. A person who uses the corporate form for fraud can be made personally liable for the debts of the company. He may also be guilty of a criminal offence. If a person is a director, he could also be disqualified from holding directorships. In terms of public education, ACRA has collaborated with CASE to develop a guide for consumers dealing with business entities. That guide shows consumers how to use ACRA's information services, to conduct background checks on business entities before deciding whether they should deal with them.

On criminal procedure, Ms Sylvia Lim had raised a question on the disclosure regime under the CPC. In launching the disclosure regime, we determined a body of predicate offences to be included. The Prevention of Corruption Act is not included in this list. CPIB investigations under the PCA, therefore, are excluded from the disclosure regime. However, CPIB investigations of predicate offences included in the regime will observe the same disclosure requirements.

The Police has introduced measures over the years to improve the quality of their investigation processes. These practices are shared among the Government investigation community, which includes the CPIB. MinLaw will convey the Member's comments to the CPIB and this will continue to be reviewed. In the meantime, for cases not covered under the statutory regime, the common law will still apply, as the Court of Appeal made clear in Kadar's

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case.

Both Ms Lim and Mr Hri Kumar raised the issue of video recording. The issue of video recording is an operational matter relating to police investigations and it comes more directly under the purview of MHA. However, MinLaw understands from MHA that there are currently no plans to introduce video recording for the taking of statements. MHA's position is that the issue of video recording as well as other operational issues should be looked at in the following manner: there should be a fair system which seeks to ensure that crimes are solved, and the system should also seek to ensure that the rights of the accused are protected. If an accused wishes to challenge the statement given by him, there are clear avenues available today.

On the question of whether this regime can be re-thought, over the years, MHA has introduced a number of changes, and it is MHA's intention to continue to look at the processes. I think the Government recognises the rationale behind the suggestions made by Mr Hri Kumar and Ms Lim. That rationale, together with other considerations, will be considered in the light of evolving circumstances when MHA further reviews its processes.

Mr Hri Kumar also raised the issue of legal aid, and made three points for consideration: whether we could have ad hoc practising certificates for retired practitioners or people who can come in to help with legal aid; using law students for pro bono work; and what can be done for accused persons who are unrepresented. As I had mentioned previously, I am currently chairing a committee on the promotion of pro bono work. We will take these suggestions to the committee and consider them and see what can be done.

On a slightly broader note, because Mr Kumar also mentioned what MinLaw has done over the past year, if I may just say a few words on the legal sector in general. The legal sector has grown, as mentioned by the Minister. If I may just add that the arbitration sector, in particular, has also seen stellar growth.

Singapore is now recognised as the leading international arbitration hub in Asia. A 2010 White & Case International Arbitration Survey found that we are clearly the most popular Asian seat. Worldwide, we are the third most preferred seat by companies, together with Paris and Tokyo, and after London and Geneva.

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The growing caseload of the Singapore International Arbitration Centre (SIAC) reflects our rising stature in international arbitration. The number of new cases handled by SIAC rose from 99 in 2008 to 235 in 2012. The total value of disputes reached a record high of S$3.61 billion in 2012, well in excess of the total for 2010 and 2011 put together.

This growth is the result of the aggressive and holistic approach we have taken to develop the arbitration sector over the years. We have a completely open regime for international commercial arbitration. Parties engaging in arbitration in Singapore have the freedom to engage lawyers of any nationality and to use any governing law. We have also introduced tax incentives for arbitrators and arbitration work. And we have established Maxwell Chambers, which offers world-class arbitration facilities. The Global Arbitration Review called Maxwell Chambers' opening one of the "Best Developments" in the arbitration industry. Our Courts, too, have been strongly supportive and pro-arbitration. Finally, we have a supportive legislative framework in the form of the International Arbitration Act, which we continually update in consultation with academics and practitioners.

Our coming of age was evident when the International Council for Commercial Arbitration held its Congress here. The Congress was attended by the who's who of the international arbitration community, and had the largest participation rate in its history, of more than 1,000 attendees.

Concurrently, we have seen the growth of arbitration expertise in the local Bar, at all levels. This will enable Singapore to continue to be the arbitration centre of choice for the region as well as internationally. I would encourage younger Singaporean lawyers to deepen and extend their arbitration skills and knowledge to take advantage of this growth area so that, in the years to come, we will continue to have a strong pipeline of Singapore lawyers who will be able to serve the local, regional and international markets for arbitration.

We also hope to see the continued growth of strong Singapore law practices and hope that they will take advantage of some of the available incentives, such as the Development and Expansion Incentive for International Legal Services, a concessionary tax rate for firms which do international work from Singapore; and a tax incentive for international arbitration work done substantially or culminating in hearings in Singapore. In addition, agencies, such as EDB, SPRING Singapore and International Enterprise Singapore, provide a variety of general incentives for capability building that the Singapore

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law practices can tap on.

For dispute resolution, as the Chief Justice announced at the Opening of the Legal Year, Justice V K Rajah and I will lead a committee to study the proposal for creating a Singapore International Commercial Court, and this will further expand our dispute resolution offerings.

Mediation is also a priority. In the coming year, we will build on earlier efforts by the Singapore Mediation Centre to strengthen our services for international commercial mediation.

Mdm Chairperson, the development of the legal services will be a source of growth in itself, and more importantly, a vibrant legal services sector supports growth in other sectors of the economy which require sophisticated legal support.

Ms Sylvia Lim.

Thank you, Madam. Two clarifications for the Senior Minister of State on her response to my cuts. The first is regarding the disclosure regime and whether other statutes, for example, the PCA, would be brought under it. The Senior Minister of State seemed to suggest that it is something discretionary and may or may not happen. But my question is: should we not proceed on the basis of whether there is any good reason why it should not be brought under that regime? After all, is it not desired to have uniformity in these pre-trial disclosures, especially for cases heard by the District Court?

The second clarification is concerning the issue of video recording. The Senior Minister of State appeared, in the gist of her remarks, to say that this issue is actually an MHA issue. Perhaps, she would like to clarify because, historically, MinLaw has taken ownership of this issue of video recording, both in the CPC review in 2010 as well as certain statements made to the media about this issue.

I would like to ask: does MinLaw not have an interest in the standards of evidence brought before the Court and how Court time is used? In fact, Mr Kumar also alluded to the fact that much Court time is being used now to refute such allegations which I think video recording could somewhat mitigate. In other countries, it has been shown that prosecutors are pushing for this because they have found the value in video recording in the handling of trials. I would

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like to ask the Senior Minister of State what is actually MinLaw's ownership of this issue or whether it is just something which they think MHA should take the lead on from now on?

Madam, I will answer the question. The Government takes ownership of this issue. Obviously, the Member is entitled to ask the Government and someone has to answer. The gist of the response on video-recording is that, in the past when MinLaw took up the issue, it is often that the office-holders were double-hatting, or because of the specific context of the legislation before the House.

Now, today's question is operational in nature: video-recording has to be done by the police if it is instituted, and the Member knows that.

Therefore, given the operational nature of the issue, given the fact that MHA agencies have to deal with it, they will have to assess whether it is feasible, whether they have the necessary resources, and what implications it has on their investigative procedures. On these operational issues, we defer to them. We are happy to relay the answer on their stance, but we also think that it would be more productive, in the specific context in which this question is raised, that it be put directly to MHA, perhaps in the form of a parliamentary question. But we are happy to respond, and we have responded today. We also recognise the rationale for the Member's point, as well as Mr Kumar's point, and we would put it across for MHA's consideration. So, if the Member wishes to continue to raise the issue with MinLaw, we will be happy to answer; we are just making the additional point that the Member could consider specifically raising it with MHA.

In response to the Member's point as to whether or not MinLaw is interested in making sure that standards of evidence in court are up to scratch – I would reply, yes, absolutely. We want to make sure of that, and as everyone can see from the moves that we have made in the last few years, and as the Member will recognise, standards have been refined considerably. I think the Member will welcome the changes, for example, to the disclosure regime. Last year, when we had a meeting with the members of the criminal bar, several stood up and welcomed the changes. One of them, a leading member, said, "This is the best time to practise at the defence bar." But that does not mean that the current position is crystallised. We have to continuously evolve, look at

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the best practices, and we welcome suggestions by Members and others.

Secondly, as far as criminal case disclosure is concerned, again, we put it in because we believe that it is the right thing to do, and it has been put in place for many pieces of legislation. But let us see how it works before we expand it to other agencies, other pieces of legislation.

So, that rationale has already been explained. The speed with which the regime can be expanded depends also on the ability to make sure that the agencies can comply with the processes, and whether they believe it is workable in their particular context. That is the case in the specific context of CPIB and PCA. That is also the case for other agencies and other pieces of legislation, and we will continue to have conversations with CPIB and other agencies on this.

Madam, I would like to raise a question with the Minister for Law. I appreciate his assessment that some of the presidential candidates, perhaps, misperceived the office of the Elected President. But certainly, I would take the view that some of the candidates probably found it politically expedient to present what they would do if they were elected. I think that certainly got a segment of the electorate rather excited. In any case, I take the position that, in the end, it is still important for the electorate to be informed so that people do not get too politically entrepreneurial.

Asst Prof Tan, we on this side of the House know all about political entrepreneurship. We have seen it. I do not, of course, want to specifically comment on what the candidates' motivations may have been. All I can say is that, when candidates go out and say they are going to do this and that, they should know whether or not it is legally possible, given their qualifications, and given the clear explanations as to what the President's powers and functions are. They would know the answer, if they apply their minds to it. And yet they make these statements. People have to draw their own conclusions as to why the candidates do it. When appeals to emotion are made and played up, it is not often easy to counter them with logic and reason but we will continue to try.

Mr Hri Kumar, do you wish to withdraw your amendment?

Mdm Chair, I would like to thank the Minister and the Senior Minister of State for their responses. I think that MinLaw had a full plate

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last year, and I think they have a larger plate but no less fuller this year. Plato said, "Good people do not need laws to tell them to act responsibly but bad people will find a way to get round those laws anyway." So, on behalf of my Members and other Members of this House, I would like to record my appreciation for the officers of the Ministry for the hard work and the diligence and passion with which they performed them. With that, may I have leave to withdraw my amendment?

[(proc text) Amendment, by leave, withdrawn. (proc text)]

[(proc text) The sum of $242,042,400 for Head R ordered to stand part of the Main Estimates. (proc text)]

[(proc text) The sum of $565,072,000 for Head R ordered to stand part of the Development Estimates. (proc text)]

Order. I propose to take the break now.

[(proc text) Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]

Order. I suspend the Sitting and will take the Chair again at 2.45 pm.

Sitting accordingly suspended

at 2.24 pm until 2.45 pm.

Sitting resumed at 2.45 pm

[Mdm Speaker in the Chair]

[(proc text) Debate in Committee of Supply resumed. (proc text)]

[Mdm Speaker in the Chair]

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Mr Zaqy Mohamad, you may want to take your two cuts together.

Madam, I beg to move, "That the total sum to be allocated for Head Q of the Estimates be reduced by $100".

First, I would like to take the opportunity to congratulate the Minister and staff of MCI for its first official Budget session. On behalf of my parliamentary colleagues and the GPC, we look forward to a meaningful and enlightening session today.

Madam, let me begin with some entertainment. I do not mean singing or dancing, but I will start with digital TV. Digital TV entertainment for Singapore comes at a time of media convergence where viewers have access to various technologies and platforms on the Internet. We have evolved from the times of communal TV at the CCs in the past, and today, we watch the TV in the comfort of our living rooms, on our computers and tablets and sometimes even our smart phones.

Recent news of Singapore embracing digital TV is certainly exciting as this will change our perception and use of the TV. Digital TV will bring better quality images to our TV screens and I hope that MDA will play a proactive role to maximise the potential of this platform by increasing the range of content it can deliver, and more online services that can benefit and improve the productivity of citizens.

I hope that MDA will further develop the industry as well, to enable more businesses to take advantage of this evolution.

Ultimately, I hope that the MDA will foster a broadcast market that is more diverse and able to carry a wider variety of channels and programmes. I would like to hear more from the Ministry what benefits can Singaporeans expect of digital TV, when can they expect to start enjoying the benefits and how will this transition take place.

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From an industry standpoint, I hope there is also a concerted plan to take our media production and broadcast industry to a new level of play. It would be great if the Ministry uses this opportunity to further develop and bring fresh opportunities for our local talents, writers and production houses.

But as we embark on this initiative, we must bridge the digital divide as 40% of Singaporeans today are not on pay TV, which is today's main digital platform. We must ensure that the transition leaves no one behind, especially low-income families. We must also ensure that every household will have the necessary infrastructure provided to ease the transition – whether it be a new antenna, receivers or other connectivity requirements.

This brings me to my second cut – media convergence. Today, even before we embark on digital TV, the ways that people consume media has changed dramatically.

In 2012, the Media Convergence Review Panel outlined its recommendations in a 64-page report to the Government. The recommendations aim at taking Singapore's media and broadcast regulation into this converged media landscape.

Clearly, in this converged landscape, new commercial platforms, such as iTunes, have given us food for thought on how content regulation and licensing should differ online compared to those sold in our stores and those through pay TV. At the same time, whether there should be a difference in how we regulate or classify content that is user-generated, such as those on YouTube and Facebook.

Thus, consumers and industry players are looking to the Government for its position, following the Panel's recommendation on which recommendations it will accept and how it will impact Singapore.

With the convergence of traditional and new media, many industry watchers are also looking to the Government on where the policy shift will take us. Will the Government deregulate and shift regulations and licensing policies towards greater openness and embrace the openness of the Internet players? Or will the Government try to fit the workings of the internet media and platforms into our traditional methods of regulating and licensing print media

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and broadcasters?

From a policy perspective, some would say this is an opportunity for our media and broadcast policies to move into the Internet era. But at the same time, many Singaporeans are also cautious whether Singapore will take a liberal position with such regulations, especially with regard to content classification or censorship. So I agree that we need some sort of standardisation in how we manage content across different platforms. But we also need to keep pace with societal norms and acceptance – but this is a delicate balance, given the diverse views, perceptions and beliefs between the different segments of our population.

Thus, I would like to hear from the Ministry on its position and which recommendation it plans to adopt from the Media Convergence Review.

Madam, the way that people consume media has changed dramatically. Hence, the Government has tasked the Media Convergence Review Panel to look at how our media policy and licensing framework can remain relevant and adequate. Like Mr Zaqy, I would like the Minister to share the recommendations that the Government is looking to accept and the potential impact on our consumers. In particular, I am interested in the measures to build social cohesion and reduce polarisation.

Consumers increasingly gravitate towards content which are in line with their own outlook and perspectives. What is our strategy to build national identity and community cohesion across both new and traditional media platforms? We also have to produce strong and identifiable local content which Singaporeans can relate to and be proud of. In view of how easily Singaporeans can access global content, we must develop our own content which is attractive and sustainable and which can contribute to inspire and spur further contributions and future developments.

Madam, I would like to suggest that we provide free online access to more local news articles and commentaries, particularly for The Straits Times and Lianhe Zaobao. These are typically well-researched and thoughtful analyses by the journalists and contributors. However, as more readers access online news and some, especially the young, even obtain information online exclusively, they are not readily exposed to views expressed in these newspapers. Now that both papers' online versions are available only via subscriptions, most turn to free sites like ChannelNewsAsia.com and TODAY online. In cyberspace, it is not so much the ease of accessing information but the power of social media

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through the sharing of articles via links.

When an article goes viral, it is quite possible for its reach to grow exponentially, reaching hundreds of thousands quickly through links. However, if a Straits Times or Zaobao subscriber would like to share an article, he would not be able to do so unless his friends are also subscribers. Our newspapers play an important role in shaping our national discourse and our sense of identity and provide platforms for us to voice our collective aspiration and concerns.

I understand that it may not make commercial sense to expect people to pay for physical newspapers when the online version is totally free. However, TODAY newspaper has and is doing well even when both its physical and online versions are free of charge. I am sure a commercial mind can work out a viable business model because it is imperative that such content, especially of local interests, be made as accessible as possible to as many Singaporeans as possible.

Lastly, we need to advocate responsible behaviour online and I would like the Minister to share his plans to raise awareness of right online behaviour and increase media literacy among the people.

Like the Agriculture and Industrial Revolution that changed society, the advent of ICT can change lives.

Amidst the hustle bustle, have we ever paused to ask ourselves what do ICT tools do to us, what do we use it for and how can we use it to pursue meaningful ends? Some technologies simply keep us busy. Others make a difference between life and death, but may not be the most profitable.

Many social entrepreneurs (SEs) work in this space, where social dividends matter as much as financial profits. But many are high touch and low tech, with productivity lags. The use of ICT could boost data transparency, knowledge sharing, mutual trust, productivity and collaborative innovation.

For example, SEs like RSVP, Silver Spring and grassroots networks, are working to help keep seniors active. Could big data be used to create apps where information-on-demand can be accessed to provide or take courses, job match and disburse specific medical advice? What about wireless sensor

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networks that could help elderly find their way to bus stops or homes, or allow the deaf to communicate more effectively, or even connect networks of caregivers directly to experts and beneficiaries? These are technologies that matter.

What about living in a community where ICT enable peer-to-peer sharing of tools and handyman, nanny, doctors and experts are available at the click of an app? The community feels secure, bonded and happy.

What about using ICT to connect rural producers to real-time market so there is fair price? Connecting remote villages to teledoctors to save lives? Or using mobile phones to send remittances and crowd fund social ideas? These are technologies that matter.

The IDA ICT Roadmap identified nine tech themes to enhance the competitiveness of key economic sectors in Singapore and to build a well-connected society. It should go further. It should invest in ICT that shapes society, ICT that matters. Given the many socio-economic challenges and shortage in social services like childcare, eldercare, disabled care, flexi-work arrangements, transport issues and so on and so forth, I would like to ask MCI:

Is there a road map on how the current investments in ICT can help Singapore resolve pressing social concerns?

What are the specific measures to use ICT to forward social good? and

What is the update on infocomm plans for the social sector which was announced in Budget 2012?

In essence, technology can create wonders for us and spur new frontiers for a brave new world. Letting it happen by default or based on what is hot alone will be erroneous. Instead, we should ask what shapes the world we want and invest into the technology that matters.

Madam, in September 2012, M1, SingTel and StarHub did not comply with Quality of Service (QoS) standards for 3G mobile telephone services. Under the QoS standards, at least 99% service coverage must be provided. As such, IDA fined these three operators $10,000 each for not meeting the QoS standards, under which, at least 99% service

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coverage must be provided.

As an industry regulator, the purpose of IDA is to provide greater incentives for telecommunication services and infocomm to grow and help Singapore become a dynamic and vibrant global Infocomm hub to enhance Singapore's economic and social development.

I would like to ask MCI to elaborate on how IDA determines the sum of $10,000 as penalty for operators not meeting IDA's QoS standards.

How much capital expenditure and operational expenditure does the Ministry expect the operators will require in order to achieve QoS Standards?

As commercial entities, the three operators will understandably seek to provide the greatest shareholder returns and profit margins. In order to improve their coverage and service quality, they will have to invest in additional hardware and related services which will lead to an increase in capital expenditure and operational expenditure. From the perspective of a commercial entity, the $10,000 fine may be a more cost effective alternative, than investing in the improvement of their network infrastructure for the benefit of Singapore's economic and social development.

I would like to ask the Minister if $10,000 is a sufficient penalty to push operators to improve their network services.

Madam, information and communications technology are playing an ever-larger role in Singapore. It is now deeply integrated into the workings and infrastructure of our society. As we celebrate progress in our high computer and smartphone penetration rates, we must remember that groups in our society who fall behind in the adoption of infocomm will be increasingly disadvantaged.

For senior citizens, ICT can play a major role in helping them stay socially connected and engaged. Simple things like browsing the Internet, accessing e-Government services, or even connecting to friends via Facebook can meaningfully affect their lives. Many senior citizens feel helpless when thrown into an unfamiliar ICT world. We should step up our outreach efforts to provide them with the skills to navigate infocomm technologies so that they can stay

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vibrant, active and social individuals.

As Infocomm is becoming increasingly important for e-learning and education, students and children from low-income families should not be denied basic access to computers and Internet.

For the disabled, can the Ministry look at how to better equip them with ICT skills and improving accessibility to disabled-friendly ICT technologies, assistive devices, such as alternative keyboards, low-vision and blindness aids, mounting systems and writing tools?

We cannot forget that Singapore is a fast ageing population. And as droves of seniors leave the workforce, there may be fewer and fewer avenues for them to stay connected.

What will MCI do to make sure that elderly and financially-challenged students and children, and also other groups like the disabled, are not left behind in the midst of this relentless pace of change in the ICT landscape? Mdm Chair, I look to the Minister for updates.

Mdm Chairwoman, I think we all agree that we live in a digital age where infocomm technology or ICT has become an essential and inescapable part of our lives.

I remember when the Intelligent Nation 2015 master plan was unveiled in 2005 and I was dazzled by the vision of how Singapore will transform into a smart nation and a smart city. I was thinking that 2015 is quite a long time away, but being 2013 as it is now, it is only two years in the future. So, I would like to request that MCI provide us with an update on the progress that we are making towards achieving the goals of this iN2015 master plan, and particularly, with relation to a few vulnerable groups – seniors, the disabled and the needy.

Now, our seniors would mostly have lived their lives in a bricks-and-mortar world, they would have been familiar with things like bookshops, CD shops and going to the bank. But as we spend more and more of our lives in the online world, whether it is learning, working, shopping or banking, how do we make sure that our seniors can make sense of this brave new world and so remain active and engaged in our community? I mean the same question also applies to the disabled. So, what measures are being taken to ensure that they remain

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a part of our intelligent nation and smart city vision?

Finally, one stated goal of the iN2015 master plan was that there should be 100% computer ownership or access in families with school-going children. I note that as of 2011, only 86% and 85% of households respectively had access to a computer and the Internet. So, I would like to request an update on the programmes that are in place to ensure that lower income families, particularly those with children, gain regular access to computers or smart devices, since I fully believe that equal access to ICT technology is critical for inclusive growth and social mobility.

Madam, ICT as an enabler. The Budget gave a clear direction of how the Government is expecting companies to restructure quickly. In this restructuring exercise, the vulnerable groups are going to be the SMEs and Singaporeans who may not have the right skill-set to adapt to the type of economy and jobs that they are expecting to see in the new future.

With the crunch in manpower availability, companies need to rely on technology, especially ICT, to do things more productivity and to remain relevant in the expected future economic environment. Because of foreign manpower cuts, companies will also have to rely on more Singaporeans to pick up the new type of jobs that will be created as a result.

I see three groups of Singaporeans who will need help to improve their ICT skills, namely the elderly, the needy and also the disabled. Can the Minister share with the House the Ministry's plans on enabling companies and the groups of people that I have mentioned earlier on their ICT skills? Also, how can the Ministry help children from needy families be better equipped with ICT skills so that they do not get left behind, so that we can level the playing field for everyone?

Madam, MOM announced at last year's Budget Committee of Supply that the Tripartite Committee on Work-life Strategy have formed a workgroup on homeshoring. The workgroup comprises representatives from MOM, IDA, NTUC and SNEF.

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The workgroup would identify jobs that leverage on Singapore's increased infocomm technology capacity and recommend measures to encourage companies to "homeshore" these jobs. IDA is to drive the initiative under the Next Generation Services Innovation Programme (NGSIP), which was developed in consultation with the partners.

In April 2012, IDA launched a Call-for-Collaboration (CFC) to conduct pilots with industry partners in home-based work and the setting up of Smart Work Centres, to encourage employers to adopt flexible working arrangements through the use of infocomm technology. The key to the initiative is for Next Gen Nationwide Broadband Network to connect 95% of Singapore by mid-2012 to further support and encourage home-based work initiatives.

I would like to ask the Minister what milestone has been achieved and what progress has been made since?

Apart from connecting homes to Next Gen broadband network, other factors, such as Internet speed, are also critical to support home-based work initiatives. Is there a reason why speed is not included as one of the compliance KPI for IDA's quality standard? Although IDA stated that it is monitoring the issue of speed, could IDA provide its own data on multiple and single TCP speed, instead of relying on information providing by third party such as Ookla and Akamai.

I would also like to know if there is a roadmap on the initiative, given that MOM had published "An Employer's Guide in Implementing ICT-Enabled Home-Based Work"?

Madam, an integral part of evolving Singapore's identity must include encouraging the creation and promotion of local music. Original music tells the world about local rhythms and sounds. When words are put to music, the lyrics paint a picture about Singapore, Singaporeans, our relationships and our way of life. These are powerful anchors for Singaporeans as well, unifying us in ways which words alone cannot. Local songs are part of our unique legacy.

Local songwriters, however, cannot live on love and fresh air. The viability of their careers hinges on how much they can earn from their work, and how

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wide a reach they have.

I believe that for those who create original work, especially songs, the Government could take a simple measure to boost the sustainability of their careers. This move will ensure that local music is played constantly and consistently, which will provide sustenance for the song creators to take their careers further, even internationally.

Currently, songwriters receive royalties when their songs are played in public, whether the songs are played in CD form or are played live. All organisations playing music or songs in public as part of their business or ambience must pay the song-music owners through COMPASS or the Composers and Authors Society of Singapore. When foreign works are played, the royalty money flows out of Singapore. To channel more royalties to flow to Singaporeans, the Government can take the lead to encourage consistent and significant playing of local music.

Currently, the Government plays music in its building lobbies, phone systems, and at events and occasions. At all these occasions, the Government can direct its organisations to routinely include local works as often as possible. This will not increase costs for the Government, as it would have had to pay royalties for music played anyway. However, this move will ensure that our local songs or music account for a good share of the royalties paid. This will also increase their public following, with more members of the public recognising and appreciating local songs.

I believe such a simple move can be documented easily to ensure that our local songwriters get the royalty payments due to them. I urge the Government to consider this suggestion to give our local creative musicians a leg up.

Mdm Chairperson, the Budget has made it clear in no uncertain terms that the days of importing large numbers of foreign labour are over. SMEs will be the ones facing the brunt of this economic restructuring. There is no easy way out even as the Budget contains numerous measures that companies can take advantage of to ease the pain.

Central to the theme of this year's Budget is raising productivity. There are many Government schemes that encourage SMEs to do so. Just to name a few: Productivity and Innovation Credit Scheme; Technology Adoption Scheme;

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Lifelong Learning Endowment; SME Talent Programme.

These schemes either aim to improve the quality of manpower or the use of technology. However, I believe that awareness is low. I would like to see a confluence of manpower and technology schemes to raise productivity. These can include a one-stop training centre to equip SME staff with the skills to use information, communication and technology (ICT) as well getting SME owners to adopt ICT in their businesses in a holistic and comprehensive way so as to overcome the current and near-future manpower crunch.

Mr Arthur Fong, you may want to take the two cuts together.

Thank you, Madam. Singapore's low unemployment rate is an envy of many other countries. Yet, it is a source of tension for many of our business enterprises. The situation is not better with the tightening of foreign manpower, the lowering of dependency ratios and the hiking of foreign labour levies.

Concomitantly, the Government has been calling on companies to look at ways and means to improve businesses' productivity as well as the productivity of its labour.

The info-communications technology industry is a major player to boost productivity. A survey by the Economic Intelligence Unit revealed that the United States relied heavily on and successfully boosted its productivity using information communications technology. Sadly, the same report stated the same reliance on ICT was not material in recent times.

In a Business Times article of 13 November last year, it mentions that the labour productivity of companies that are labour intensive is about US$37,000, whilst those that relied on ICT is almost 15 times more at US$545,000. The advantage of using ICT to boost productivity is obvious.

We have invested heavily in this sector. It is timely for us to reap dividend in our attempt to boost our productivity all around, not just labour. For instance, IDA has provided our business industries a lot of schemes and grants to boost productivity. We have also launched a $46 million road map over five years to further develop the ICT industry. We are second behind Sweden in innovation and currently Asia's first.

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All these accolades are useful only if they have practical use to boost not only our productivity but also solve current problems, such as the manpower crunch. What is MCI doing to help companies tackle productivity and manpower problems with the use of ICT?

Next cut, in the realm of good food, a critical part of things Singapore, 色，香，味 is all important. Literally, it means appearance, smell and taste. They are factors that help one to decide a dish is delicious or not.

Thus, good design would help shape the appearance of a product. This is all important as products manufactured by our local SMEs will potentially venture and compete for market share abroad. An active design industry here would help successful local businesses like Mr Bean, for example, to venture abroad. Many would know the little "kink" at the back of a BMW that is called the Hofmeister kink. And, perhaps, our own business, in time, would have a brand like this going forward.

Our Government announced that it would set up a National Design Centre (NDC) to achieve growth and transformation of the design cluster and to develop design as a vibrant integrated and competitive sector. When is the NDC expected to open? What can the design industry look forward to?

Mdm Chairperson, there are three different issues I wish to discuss in this cut but all of which relate to different assistance that might be provided to SMEs and young workers in Singapore.

Now, the first – I was quite intrigued to read about a programme titled "The Infocomm at SME", which I understand aims to accelerate the adoption of infocomm technology by SMEs to help them improve productivity and competitiveness. SMEs are one of the groups that might be hardest hit by the current restructuring as they face a manpower crunch from the tightening of foreign labour and the prospect of rising labour costs as wages of Singaporeans rise. It will be important for SMEs to reduce their dependence on labour.

Traditionally, the adoption of technology has been an important aspect of moving from a low-wage, labour-intensive business to a higher wage, less labour-intensive structure. This is your textbook illustration of a productivity

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increase as well. I am, therefore, interested to know how a programme such as this would enable SMEs to adopt to ICT in order to cope during this difficult time. It would be especially useful to know if this would also help SMEs that are not traditionally associated with infocomm, such as those in retail and construction, as these would be some of the industries facing the greatest difficulties. So, I hope the MCI would be able to elaborate on what are the systems it can provide to assist SMEs to deal with the current challenges they face using ICT technology.

The second point I wish to discuss is with the National Design Centre. Like my Parliamentary colleague earlier, Mr Fong, I am also interested to know when this design centre would open. In particular, I think, that this could potentially offer lots of interesting opportunities for young Singaporeans and a good variety of jobs. I mean, the Secondary schools in my area, for example, produce very good design and technology students and I wonder if a centre like this would provide more opportunities for them.

There are some specific questions I have in relation to this centre. The first is when will the centre open? The second is what is the aim of this centre and what types of programmes would it offer? The third, what types of opportunities will it offer to individuals and SMEs interested in this field? And, finally, will this centre have tie-ups with students in local schools interested in design and technology?

The third aspect I wish to discuss is whether there are any plans the Ministry has to help firms use design as a competitive advantage. Now, many global businesses rely on design to provide them with a competitive advantage. This is especially important in the consumer goods industries, and companies, such as Apple, sometimes create entirely new markets through a combination of good technology and innovative design.

I am interested to know how Singapore companies fare in using design as a competitive advantage.

I understand that the Design Singapore Council, working with IE Singapore and SPRING Singapore, has established a Design for Enterprises programme to help businesses adopt design for competitive advantage to the marketplace. I am interested to know what this programme allows, and whether there is any early success story to share. And does MCI have any plans to strengthen design

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adoption in local companies?

Madam, I would like to thank hon Members for their valuable comments and suggestions. Madam, the infocomm, media and design sectors continue to show great promise in their right as well as their potential to transform society and their economy. Innovation has come about through successive waves of convergence.

The first wave of convergence brought together the IT and telecommunication industry to give us the infocomm sector. This wave is almost complete. Later this year, new homes to be built will no longer need to be fitted with telephone ports, since the data port can serve both voice and data needs.

The second wave of convergence is unifying data. This wave is allowing for the emergence of massive data sets from which businesses and Government can get deep insights to help improve services. This is why we see data analytics as a promising growth area for the infocomm sector.

The third wave of convergence is bringing together the infocomm and media industries. It is presently disrupting traditional business models for content creation, but there is no doubt that it will eventually lead to new and more robust business models. We must ensure that our regulatory frameworks are able to keep pace, and Singapore is among several countries at the forefront of studying its impact.

Around the corner, we see possibilities for infocomm flowing into autonomous machines. This will be especially relevant as the Singapore economy shifts gear in view of slowing workforce growth.

Madam, we estimate that the infocomm, media and design sectors grew by 6.5% in 2012. Singapore has also been consistently ranked among the top two countries in the World Economic Forum's Global Information Technology Report since 2009.

Our plans for the infocomm, media and design sectors are four-fold. Firstly, we want to improve our infocomm and media infrastructure. Secondly, we want to ensure the sectors deliver enhanced quality of life for our people. Thirdly, we want the sectors to contribute to business competitiveness and a more productive economy. Finally, we want Singapore to to be in a good position to

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seize future growth opportunities in infocomm, media and design.

Mr Zaqy Mohamad and Miss Penny Low have highlighted the importance of investing in infrastructure and technology that can improve Singaporeans' daily lives. Ms Lee Li Lian also touched on the Quality-of-Service (QoS) standards for our mobile services infrastructure.

We will be improving our wireless infrastructure. The free Wireless@SG network is popular with Singaporeans. More businesses have subscribed to Wireless@SG for their own operations, such as cashless payments and facility surveillance. But the system is now over six years old.

IDA will, therefore, enhance our national wireless infrastructure by expanding the capacity and speed of Wireless@SG. We will also simplify the login process. Instead of having to repeatedly enter one's login information, the improved Wireless@SG will be able to recognise registered users through the SIM cards in their mobile devices. This will complement our mobile networks and allow subscribers to more seamlessly shift from 3G/4G networks to Wireless@SG.

We recognise that mobile services have become increasingly integral to consumers and businesses. In fact, Singapore is one of the few countries globally to impose quality of service (QoS) standards for compliance. Over the past two years, IDA has enhanced the standards required of 3G mobile service operators. Mobile operators also face higher financial penalties for non-compliance. The standard for outdoor service coverage was raised to above 99% in April 2012.

The recent $10,000 financial penalty that IDA imposed on each mobile operator was for failing to comply with this enhanced standard. I understand that IDA had taken into consideration that it was the first time the operators failed to meet the new requirements, and by a relatively small margin. Therefore, the penalties levied were appropriate – not the maximum under the current standard, but still much higher than allowed for under the old standard.

IDA will be holding a 4G spectrum auction in mid-2013. This will give our mobile operators greater certainty over their spectrum holdings, and allow them to expand their 4G offerings. We will encourage further deployment and adoption of new mobile capabilities that will bring more benefits to consumers – greater coverage and bandwidth. IDA will also soon revise the Code of Practice for Info-communication Facilities in Buildings (COPIF) to ensure that building

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facilities have adequate space set aside to support the quicker deployment of mobile services.

Our mobile payments system will see improvements. Since August 2012, consumers have been able to make contactless payments with their Near-Field Communications (NFC)-enabled phones at over 30,000 acceptance points. These include convenience stores and most taxis. At least seven additional NFC mobile payment and value-added services will be launched by 2014. IDA will be working with the public transport industry to assess the feasibility of adopting NFC payment, and the public can look forward to field trials and pilots later this year. All these initiatives spell more convenience and options for consumers.

It has been 50 years since Mr S Rajaratnam went on air to launch our television service. It was a momentous occasion for our people. We have seen much progress over these five decades, including going colour and adding more Free-to-Air channels. And it is fitting that this 50th year will herald another milestone in our broadcasting history – we are going digital. We are upgrading our broadcasting infrastructure and will begin our transition to digital TV by year-end. Digital TV will enhance our viewing experience. At the same time, going digital will also free up the spectrum that can be reallocated for better and faster wireless services for our public and businesses.

Come December, MediaCorp's seven Free-to-Air channels will be broadcast in digital format and move to High-Definition in two phases. Channels 5, 8, Suria, and Vasantham will move first to High-Definition. Channel U, Okto and Channel NewsAsia will be broadcast in Standard-Definition first, and then High-Definition in 2016. Viewers will be able to enjoy the higher quality images and surround sound from digital TV through existing pay-TV set-top boxes or a separate receiver.

We will ensure sufficient time for households to make the digital transition. MediaCorp will continue to broadcast analogue signals for Free-to-Air channels for at least two years from the digital switch-on in end-2013. MDA will also introduce consumer labels for dealers to affix to compatible digital receivers. This will allow consumers to easily identify the equipment suitable for their needs. From April 2013, consumers will be able to buy TVs with compatible integrated digital receivers that are affixed with MDA's consumer labels. Consumers can also choose to buy set-top boxes affixed with these labels to connect to their existing TVs as the boxes gradually become available.

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We will not forget the needy households who may need assistance with the switchover. MDA is looking at ways to assist them. We expect to finalise and ready these plans by 2014. We recognise the important role that TV broadcast plays and I would like to assure the House that MDA is working to ensure that all Singaporeans can benefit from our Free-to-Air digital programming.

Through infocomm, media and design, we are improving Singaporeans' quality of life. Miss Penny Low, Mr David Ong, Dr Chia Shi-Lu, Mr Inderjit Singh, Mr Low Thia Khiang and other Members have shared their views about the important role that infocomm plays in this. The Next Generation Nationwide Broadband Network is already allowing IDA and industry partners to explore projects, such as home-based work. This can help Singaporeans better balance their work-life commitments and minimise travel during peak hours. Our economy will also benefit from the increased level of labour force participation. Businesses may also derive long-term cost savings in office space rental.

Rasa Sayang Healthcare is a home-grown SME that will be launching a home-based work pilot project soon. The company provides home nursing services. Currently, their nurses pick up their scheduled jobs from the office before travelling to the patients' homes to do their work. They subsequently return to the office to file their patient reports. With this pilot, Rasa Sayang's nurses will be equipped with computing devices and broadband connectivity to allow them to receive their schedules at home. They will be able to start work from home, and return home to file their reports. The reduced travelling and time saved will allow nurses to spend more time with patients and improve productivity. In addition, Rasa Sayang's customer service staff will be equipped with proprietary customer management and call routing solutions. This allows their staff to work from home and continue serving their customers in a timely manner.

IDA will also call for proposals to establish Smart Work Centres. Smart Work Centres are conducive alternative working spaces. They will be equipped with professional facilities and shared by employees of different companies. Employers looking to offer flexible work arrangements can arrange for their employees to work at a Smart Work Centre nearer home. IDA is also currently working with NLB to pilot Smart Work Centres at selected libraries. At the same time, the Public Service will be piloting a similar concept at the Treasury building and the new MND and MOM buildings for use by public officers from participating public agencies.

We will continue to commit resources to ensure that ICT benefits all and fosters a cohesive and inclusive society. Over the past three years, IDA's People

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Sector programme has reached out to over 460,000 people. IDA has also equipped more than 100 people sector organisations with infocomm capabilities and to increase ICT literacy and competency of their clients.

For example, the Singapore Association for the Deaf has partnered with the People Sector Infocomm Resource Centre, and are developing a Singapore Sign Language mobile app to meet the needs of our hearing-impaired and promote our Singapore Sign Language. [A video was shown to hon Members.] The video on the screen shows some of the signs that one can learn from the prototype app, such as "Durian" and "Kallang".

IDA will also continue to actively engage and promote ICT programmes and initiatives among the elderly, low-income households with school-going children, and people with disabilities. To date, the Digital Inclusion Programme has assisted more than 14,600 low-income households with PCs and broadband service. It has trained more than 76,000 senior citizens and people with disabilities to use infocomm for digital lifestyle activities and work support.

Volunteers play a key role in this effort as well. They are young at heart and sharp in the mind – just like Mdm Irene Lim. Sixty-one year old Irene retired seven years ago and has been pursuing her interest in photography and in computers. She attended courses on Social Networking and Digital Photo Management, which were offered under the Silver Infocomm Curriculum. In her words, "being able to catch up with the latest technology trends, I feel young and active again". She puts to good use her IT skills in enhancing photographs and producing video collages of her travels. She is also an active Facebook user, blogger, and, as I said earlier, a volunteer IT tutor.

Beyond improving work-life balance and social inclusion, we also recognise that the media industry can uplift, inspire and entertain Singaporeans. Last year was a very good year for film, but I want to specially recognise the contributions of the TV sector. For example, local production company "Very!" won two Gold Medals at the prestigious New York Festivals for their work on the Channel NewsAsia documentary "The End/Beginning" in 2012. Last year's Asian TV Awards also saw local company Scrawl Studios win the Best 2D Animated Programme with "Guess How Much I Love You", while another local production, "The Moving Visuals", picked up an award for their work on The Biography Channel's social awareness programme "Junkie Monastery".

Ms Sylvia Lim spoke about the local music scene. We are committed to growing our music industry and creating opportunities for our music talents.

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MDA has various schemes to support our local music professionals at varying stages of their careers. This includes the development of singles, production of albums and Extended Plays (EPs), marketing assistance, training, and upskilling. And her suggestion for us to consider using local content or local music in Government buildings will be considered seriously. Yet, at the same time, the preservation of local identity and national identity is the purview of MCCY. We will be in discussion with MCCY.

MDA has been working with local broadcasters and industry partners to increase their repertoire of local works for broadcast, and to provide greater exposure to our local musicians. Several radio stations, such as Class 95, Y.E.S. 93.3FM, Ria and Oli, have programmes to showcase local artistes and music. In September last year, MDA and MediaCorp put out a joint call-for-proposal seeking theme songs for MediaCorp's TV dramas. This provides nationwide exposure to our local musicians, and uncovers new talent. The winning compositions received airplay on our Free-to-Air TV channels and radio. We ensured that the intellectual property (IP) rights of these songs stayed with their creators, so that the composers could further benefit from it. MDA will launch another call-for-proposal for theme song production soon. Selected applicants will be provided with a Development Assistance grant of up to $8,000 each.

Madam, the Government also recognises the importance of royalty payment to sustain our music industry. An industry Code of Conduct was launched in June last year to improve the collection of royalty payments. This has taken us another step in the right direction as we work to ensure that royalty payments reach the rightful owners. We will continue to work with our broadcasters, MinLaw, industry associations and various stakeholders to support the growth of a vibrant eco-system for local music.

But we are happy to listen to suggestions from Ms Lim for this particular sector.

Miss Penny Low, Mr Inderjit Singh, Mr Sitoh Yih Pin, Mr Arthur Fong and Mr Vikram Nair have asked about how we can increase business productivity, and the measures we have taken to enhance our design sector. Allow me now to touch on these areas.

An increasing number of companies have used design to gain an advantage for business competitiveness and growth. The Design Singapore Council

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provides schemes to incentivise local businesses to invest in design for innovation and productivity gains. Over the past two years, over a hundred companies have been supported through assistance schemes, such as the Design for Business Innovation Grant (DBIG) and the Productivity and Innovation Credit (PIC), for investments in design.

Atmosphere Air-conditioning & Engineering Private Limited is a local SME that has benefited from DBIG and PIC. Faced with difficulties expanding their business due to manpower constraints and logistical challenges, Atmosphere partnered a design consultancy to transform the way their air-condition technicians go about their servicing jobs. Instead of a two-man service crew in vans, motorcycles outfitted with a specially designed storage box containing re-designed servicing tools were introduced. Only one technician is now needed for smaller jobs. Clients are now served faster, productivity has doubled, operational costs have come down and Atmosphere has eased its manpower constraints.

New high-growth ICT developments, such as data analytics, can also improve business competitiveness and create value across sectors. IDA is encouraging greater adoption of data analytics among businesses. It has been working with six early adopters to develop business analytics shared services for the retail and wholesale sector. Such analytics services will allow businesses, such as Best Denki Singapore, to derive useful information from their customers' data, to better understand customers' needs. The services will also help optimise inventory levels to meet forecasted demands. We expect the shared services to be rolled out progressively to early adopters starting middle of this year.

Raising productivity is key to greater competitiveness. IDA has supported the efforts of more than 5,000 SMEs to raise business productivity through ICT solutions. IDA works closely with sector champions and industry associations to facilitate the development of collaborative ideas and innovative ICT solutions that can benefit the wider industry. With economies of scale, such solutions are more cost effective to adopt than if developed separately by businesses on their own.

For example, to increase service staff productivity in the food and beverage industry, IDA supported mobile ordering systems for restaurants to automate key operational processes. Diners at Ocean Spoon Dining now submit in their orders via tablets and have their payment processed at their tables. Ms Jocelyn Chng is the Managing Director of JR Foodstuff Industries, which owns Ocean Spoon Dining. She shared that, "With e-Menu and payment at the table, other

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than being able to achieve faster table turn-around, we foresee that we would be able to expand our operations without the need to increase service staff at the same rate."

Furthermore, to help SMEs speed up their ICT adoption, IDA has also pre-qualified over 160 "ready-to-use" ICT packaged solutions under the iSPRINT scheme. SMEs can purchase and implement these solutions right away and, subsequently, claim from the iSPRINT grant.

We will also continue to support initiatives that raise labour productivity, to help our companies to be better equipped to face challenges that arise from the tightening of local manpower. IDA will review existing infocomm manpower initiatives to develop the necessary skill sets for local infocomm professionals in anticipation of changing job profiles and to attract greater talent into ICT.

For example, IDA has been working with the Singapore Workforce Development Agency (WDA) to organise Infocomm Productivity Masterclasses to help local ICT businesses reshape their business models and improve productivity. These Masterclasses target the top management executives and cover topics, such as product management, business strategy and user experience design. Over 100 infocomm professionals have benefited from this programme in the past nine months. We will continue to provide our local infocomm companies with more of such Masterclasses through our Infocomm Continuing Education and Training Centres.

Madam, this year, the Design Thinking & Innovation Academy (DTIA) will also partner with WDA to expand the availability of design thinking training. The DTIA has been helping both the private and public sectors to develop design-driven innovation capabilities and to adopt a user-centric approach in creating innovative products and services. Up to $2.5 million has been set aside over the next three years for design thinking training. This will allow DTIA participants to receive up to 70% WDA co-funding when they apply for relevant Workforce Skills Qualification courses.

We are also making it easier for our designers and other vital players in the design value chain to network, test and exchange ideas and co-create new products and services. The National Design Centre (NDC) will be opened later this year. Located at the former site of St Anthony's Convent, and now a designated conserved building, the NDC will serve as a key node in Singapore's design eco-system. It will house a prototyping laboratory for developing design concepts into prototypes, as well as design galleries to showcase design works.

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