Hansard, Monday, 14 April 2014

Mdm Speaker, may I seek your consent and the general assent of Members present to move that Question Time at this day's sitting be exempted from the provisions of Standing Order No 22 (1) so as to enable Questions for Oral Answer to be taken till 4.00 pm today?

I give my consent. Does the Minister have the general assent of hon Members present to so move?

[(proc text) Hon Members indicated assent. (proc text)]

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

[(proc text) Resolved, that notwithstanding Standing Order 22(1), Questions for Oral Answer set down on the Order Paper for today be taken till 4.00 pm at this day's sitting. (proc text)]

1 Mr Zaqy Mohamad asked the Deputy Prime Minister and Minister for Home Affairs with regard to the recent Woodlands Checkpoint breach on 8 March 2014 (a) what are the security measures that failed to prevent the breach; (b) why does it take the Police hours to track down the vehicle and driver following the breach; and (c) whether Immigration & Checkpoints Authority (ICA) or the Police have personnel or vehicles on standby to chase vehicles or persons who breach our immigration checkpoints.

2 Mr Hri Kumar Nair asked the Deputy Prime Minister and Minister for Home Affairs if he can provide an update on the review following the

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unauthorised entry by a Malaysian driver through the Woodlands Checkpoint on 8 March 2014 and what steps will be taken to prevent such incidents.

Mdm Speaker, may I have your permission to take Question Nos 1 and 2 together?

Yes, please.

On 8 March 2014, at about 4.00 pm, a Malaysian driver, after having cleared Singapore immigration, drove his Singapore-registered car to the secondary clearance area for security checks. When an Auxiliary Police Officer (APO) was inspecting the boot of the car, the driver suddenly got into the car and drove off. The APO immediately pressed the alarm, which triggered the activation of the security barrier. The car's progress was stopped by the barrier. Several officers at the scene responded to the alarm and an APO was injured in the process of stopping the car from leaving. However, the driver persisted in trying to drive across the security barrier. He managed to force his car over the security barrier and exit the checkpoint.

Police confirmed the identity of the driver within 15 minutes of the incident and activated an island-wide search for the driver and the vehicle. Taxi drivers were also asked to look out for the car. Meanwhile, Police continued to establish and follow leads to precisely locate the driver and the car. Police steadily closed the ring around the driver and subsequently arrested him five hours after the incident. His car was separately recovered at another location prior to his arrest. He has been charged in court for offences under the Penal Code and Vandalism Act. He is also being investigated for contraband goods smuggling and other offences under the Customs Act.

Our investigations revealed that the security barrier initially stopped the car, but failed to stop the car from leaving because hydraulic fluid leaked from one of the cylinder seals for raising and maintaining the position of the security barrier. The security barriers are checked and serviced every three months, and the last servicing was done on 18 February 2014. Following the incident, ICA is replacing the hydraulic components in all the security barriers and is also conducting daily checks to ensure that the security barriers function properly.

Mdm Speaker, this was the second incident in two months in which a car had successfully breached Woodlands Checkpoint. After the first incident on 17 January 2014, various immediate measures were implemented to strengthen

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the security at Woodlands Checkpoint, including tightening the coordination between ICA and Police, improving the response protocols and conducting drills and exercises to validate the response plans and enhancing the supervision of the APOs. Other measures, such as installation of additional CCTVs and enhanced security barriers, are being expedited.

ICA and Police will also be deploying mobile crash barriers and tracking vehicles as additional lines of defence to stop suspect vehicles from fleeing the checkpoint and apprehending all suspects.

The two breaches show the scale and complexity of the checkpoint operations. This requires a team of officers able to carry out robust and effective measures to prevent and deal with a wide range of threats, including attempts to get through the primary or subsequent layers of security at our checkpoints. At the same time, our land checkpoints have to facilitate the swift and secure clearance of people and goods. Finding the right balance is not easy.

A Ministry-level review committee, chaired by Senior Deputy Secretary Khoo Boon Hui and comprising senior representatives from ICA, Police, ISD and other Home Team agencies, has been formed to comprehensively review the security measures at our checkpoints and identify any systemic issues and rectify them. This Committee has updated me on the progress of the review, including enhanced security measures already undertaken – which I had listed earlier – and the need for interim arrangements while wider systems are further improved.

MHA views each and every single security breach seriously. If there are gaps and failings in our security regime, be they structural, systemic or individual, we must quickly and thoroughly address them. Commissioner ICA and the other relevant Home Team Department heads have given their full commitment to take concrete actions at all levels to quickly put right any weaknesses, and implement measures to ensure that our border security is tight and effective to keep out all threats. MHA HQ will give them our full support.

Mdm Speaker, I thank the Deputy Prime Minister for his reply. I understand this is a complex issue, and I also see that structural facilities are being enhanced to improve security. So, I just have two questions. Firstly, if a vehicle should breach the checkpoint, should there not be other standby vehicles to chase them down? The fact that Singapore is small, the five hours spent to find the vehicle is too long, especially if we have a potential terrorist threat, for example. Secondly, manpower is an issue today.

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Is it difficult to recruit Police Officers and has that contributed to some of these lapses?

Indeed, five hours is a long time. We have looked at the measures and we will be instituting additional measures to take care of this issue. Those who are travelling through the Causeway may see an additional line of barrier. The first objective is to try and prevent people from exiting the checkpoint and to contain cars and individuals within the checkpoint. We are also putting in vehicles which will be able to follow any suspect vehicles that leave the checkpoints. Those are being put in place.

In this particular case, Police was able to identify the subject within a very short time because he had cleared immigration. And so, we knew his identity, his address and various other things. They were actually tracking him quite closely after the breach. They localised him and then arrested him. Very early on, Police was able to come to an assessment that this case was not likely to be terrorist-linked.

Deputy Prime Minister, may I have the reply to the second question on manpower?

As I had mentioned in the Committee of Supply (COS) debate, manpower for the checkpoints and at ICA has increased quite substantially since we did a review in the mid to late 2000s. A substantial increase in manpower had been provided at that point in time. I would say that our major constraints today are infrastructural because the checkpoints themselves were built some time ago and it is a very tight space. They were built before September 2001. Many of the security measures that are being put in place had been added on to the existing infrastructure at the checkpoints. These measures have, therefore, resulted in some delays to the clearance of particularly vehicles through the checkpoints.

We have done a number of things to maintain security while increasing the capacity at the checkpoints. For example, since then, we have reopened the old Woodlands Checkpoint and put in new facilities there, including four additional counters for lorries and 20 additional counters for motorcycles in 2008 and 2009. We are putting in 30 additional car counters by 2016. Today, ICA is already opening up 20 of these car counters during peak periods, Sundays and public holidays. We try to maintain a balance between tight security as well as making sure that we clear cars as smoothly as possible through the checkpoints.

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Motorcycles contribute another very large volume of traffic at the checkpoints. There are more than 72,000 motorcycles passing through every day. Thirty percent of motorcycles today use the automated self-clearance system. They come up to the immigration counter and both the rider and the pillion clear through automatically. ICA will continue to channel more passengers and vehicles to use these self-clearance modes. We are now going to bring all Work Permit and S Pass holders to be automatically enrolled on ICA's Automatic Clearance System by the middle of this year. This will make 95% of all Malaysian motorcycle trips eligible for automatic clearance.

What this will do is it will help to speed up clearance of motorcycles, reduce the queues for motorcycles, and, therefore, free up some of the existing capacity for other vehicles. Again, this will help us strike a better balance between speedy clearance as well as tight security.

Mdm Speaker, one supplementary question for the Deputy Prime Minister. I understand the latest news is that there was another attempt yesterday of another driver from Malaysia attempting to make an illegal entry at Woodlands. Are there any indications, in the review and investigation, why there seems to be a heightened increase in frequency in recent months of these sorts of attempts? Is there any indication whether this is an upward trend that is likely to continue, or is it too early to say?

The Member asked if there was a case yesterday of a Malaysian who attempted to evade immigration checks. He was stopped according to the procedures and was arrested. Police will take the appropriate action against him. He came through, so far as we know, with no travel documents on him. We are investigating the matter. This incident shows that we do require tight checks on both sides of the border to make sure that there is some redundancy in our checks.

There will always be attempts by people to evade customs or immigration checks. This is not unique to Singapore. People will present false documents, they might sneak in and so on. Overall, I would say that our border security is very tight. Although we have detected instances of people either attempting to or inadvertently passing through immigration or customs without proper clearance, we have managed to contain most of them.

In the three cases that have evaded and exited the checkpoints, the persons were subsequently arrested and appropriate action was taken. I would say that

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the measures that have been taken at the checkpoints have been reasonably effective in deterring and containing entry into Singapore by persons or goods that are not allowed to.

3 Ms Mary Liew asked the Deputy Prime Minister and Minister for Home Affairs (a) what is the frequency of our usage of Interpol's database of Stolen and Lost Travel Documents (SLTDs); (b) whether ASEAN members use the SLTD database for their border checks; (c) whether ASEAN members do submit information on stolen and lost passports to INTERPOL's database; and (d) whether there are any regional security collaborations with ASEAN members to stem the trade of SLTDs in our region.

4 Mr David Ong asked the Deputy Prime Minister and Minister for Home Affairs (a) what is the number of passport infringements for both incoming and outgoing passengers at Changi Airport in the last three years; and (b) whether ICA has taken measures to prevent future possible lapses, in light of the MH370 incident.

5 Assoc Prof Tan Kheng Boon Eugene asked the Deputy Prime Minister and Minister for Home Affairs (a) how many Singapore passports are reported lost, missing or stolen each year for the last five years; (b) what is the average time lapse, at each stage, between the filing of the missing passport report, cancellation of the passport by ICA, and the reporting to Interpol of the missing passport for inclusion in its database; and (c) whether the ICA will step up public education efforts to encourage Singaporeans to better protect their passports and what they should do when their passports are lost or stolen.

6 Mr Zaqy Mohamad asked the Deputy Prime Minister and Minister for Home Affairs what precautions does ICA take at our checkpoints to ensure that there are strict procedures to prevent detection failure of fake passports.

7 Mr Gerald Giam Yean Song asked the Deputy Prime Minister and Minister for Home Affairs (a) whether ICA has been checking the passports of all outbound and inbound travellers at all ports of exit and entry against Interpol's Stolen and Lost Travel Documents (SLTD) database in the last three years; (b) how many travellers have been caught using lost or stolen passports which are not their own; and (c) what punishments have been meted out for the

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commission of such offences.

(for the Deputy Prime Minister and Minister for Home Affairs): Mdm Speaker, with your permission, I will take Question Nos 3 to 7 together.

Yes, please.

All persons entering or leaving Singapore are subject to stringent checks at the checkpoints, which include travel document examination and identity verification. There are several layers of checks to detect stolen or fraudulent passports.

ICA actively taps into its network of global partners to exchange information on lost and stolen travel documents to prevent undesirable persons from using such documents. Since 2008, ICA has been using the INTERPOL's database containing over 40 million travel documents reported lost or stolen by 167 countries, in the passport document examination process. Singapore is one of several INTERPOL member states that cross-check travellers' passports against this database, accessing it about 29 million times a year, to determine if a passport presented had been reported lost or stolen.

Over the past five years, about 7,000 Singapore passports are reported lost or stolen each year. Once a report is received, ICA will immediately cancel any reported lost or stolen passport, update its database and convey the relevant information to INTERPOL.

Over the past five years, across all our checkpoints, an average of about 350 travellers per year have been detected to be in possession of forged or tampered travel documents, or had presented a travel document that did not belong to him or her. Under section 47 of the Passports Act, anyone found guilty of offences relating to false foreign travel documents shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 10 years or to both.

To deter forgery or tampering with Singapore passports, Singapore is one of many countries which have issued new passports with stronger security and protection features, such as biometrics. These passports comply with the International Civil Aviation Organization's (ICAO) recommendations and requirements, including security standards to ensure the integrity of biometric

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passports.

It is an offence under the Passports Act not to report any loss of passport. A Singapore passport is an important document and highly valued by local and foreign criminals. During the passport application and collection process, and in public outreach and community engagement through talks and exhibitions, ICA constantly reminds Singaporeans of the importance of safe-keeping their passports and the need to report any loss of their passports immediately.

ICA maintains our security with tight controls at our borders over persons who present stolen or lost passports. At the same time, the security features of our Singapore biometric passport, and the education efforts and strict enforcement of laws regarding lost and stolen passports, help ensure that Singaporeans who travel, face fewer queries and delays due to inquiries regarding their passports.

8 Er Dr Lee Bee Wah asked the Minister for Communications and Information what more can be done to make popular sports programmes, such as the World Cup soccer matches, more accessible to Singaporeans.

9 Mr Baey Yam Keng asked the Minister for Communications and Information with regard to the broadcast of World Cup matches on TV (a) how does Singapore compare with other developed countries with similar-sized populations as well as countries in our region in terms of (i) free-to-air availability and (ii) pay-TV pricing; (b) whether it is beneficial for our sports culture to leave the pricing of the match viewings to market forces; and (c) whether MDA's cross-carriage measure has achieved its objective for consumers' interest.

10 Mr Zaqy Mohamad asked the Minister for Communications and Information (a) what are the factors behind the recent announcement by a telco to charge pay-TV viewers a significant increase in rates of $104 for the FIFA World Cup screenings in June 2014; (b) whether the continued signing of exclusive content for soccer events at high bidding prices renders the cross-carriage regime ineffective; and (c) whether the Ministry will consider reviewing its cross-carriage policy to mitigate high subscription prices of sports events

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and ensure that major sports are accessible to all, including low-income earners.

11 Mr Pritam Singh asked the Minister for Communications and Information with regard to the local pay-TV rates for the FIFA World Cup 2014, whether the Ministry will consider conducting a thorough review of the regulatory framework and policies that govern the broadcast of popular soccer and sporting events in Singapore so as to better protect the interests of the viewing public.

Mdm Speaker, with your permission, I would like to take Question Nos 8, 9, 10 and 11 together.

Yes, please.

Madam, on 12 March 2014, SingNet announced that it had acquired the exclusive broadcast rights to the FIFA World Cup 2014. SingNet announced that it would sell the World Cup 2014 content as a standalone channel, at $105. Since then, they have offered an Early Bird price of $88. This Early Bird price is the same price charged by the pay-TV operators for the 2010 World Cup. That is the regular 2010 price, so this year's Early Bird price is the same as the 2010 regular price. Furthermore, for those who commit to subscribe to the Barclays Premier League (BPL) content for two years till 2016, SingNet will provide the World Cup content at no extra charge. In other words, the average price paid per subscriber for World Cup 2014 will be significantly lower than $88, once we add the subscribers who will obtain it at no additional cost.

With cross-carriage, all SCV subscribers would be able to enjoy the World Cup package through their SCV set-top boxes at the same $88 Early Bird price offered by SingNet. And this is precisely the purpose of the cross-carriage measure – to widen the distribution of exclusive content across all qualified pay-TV retailers.

Indeed, cross-carriage has been successful in reducing content fragmentation in the Singapore pay-TV market. Back in 2010, there were only seven channels available on both pay-TV platforms. Consumers had to install multiple set-top boxes from different retailers to enjoy the content they wanted. Today, there are over 60 channels available on both SingNet's and SCV's platforms. These include entertainment and sports channels, such as Celestial

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Movies, National Geographic Channel, FOX Sports and STAR Sports. Pay-TV retailers have also shifted their strategy to compete for subscribers on value-added services, like mobile apps that allow subscribers to watch TV on the go.

From this perspective, the cross-carriage policy has achieved its objectives. The policy has just been introduced and we will want to continue to review and see how it can be further fine-tuned and improved. I would like to remind Members that the intent of cross-carriage is not to regulate content prices. So, we should not judge its effectiveness in terms of whether content prices have dropped.

In fact, the acquisition and provision of top-level sports content on TV is not just left to market forces alone. The Government is committed to ensure that key sporting events, particularly those of national significance, are available to all Singaporeans, and not just on pay-TV. This is why MDA supports MediaCorp's provision of sports programming featuring Team Singapore athletes, including the Summer Olympics, the Commonwealth Games, the SEA Games, all of which through Public Service Broadcasting (PSB) funding.

MDA also puts such events on the anti-siphoning list and this was updated only last year, following a public consultation. An event on the anti-siphoning list means it must be available for Free-to-Air TV broadcasters to acquire. And I should explain that placing an event on the anti-siphoning list does not mean that the programmes will be free. It simply means that pay-TV retailers cannot acquire the content on an exclusive basis, therefore, giving the Free-to-Air broadcaster an opportunity to acquire these rights.

For the World Cup, MDA included four key matches, which are the opening, the semi-finals and the finals in the anti-siphoning list. They also included matches featuring Team Singapore, but that is not relevant in our context, so, the four key matches are the opening, the semi-finals and the finals. For the upcoming World Cup, Singapore viewers will be able to watch these matches on MediaCorp. Besides the matches on the anti-siphoning list, I also understand that the People's Association (PA) is in talks with SingNet to screen the World Cup matches for free at several Community Centres across the island.

Some Members have asked for more regulation of subscription prices for sports content. But the key is that content owners like FIFA are not obligated to sell their content at a price they do not agree with. It is not something we welcome, but on this issue, we are unfortunately a price-taker, and not a price-setter. We cannot wish away the fact that the cost of premium sports content

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has been rising globally, not just in Singapore. Broadcasters around the world are paying anywhere from 20% to 40% more for the broadcast rights to the World Cup 2014 compared with the previous edition.

Comparisons of subscription prices across different jurisdiction are also inherently fraught, as the operating circumstances in each country are different. There are wide variations in terms of the size of the pay-TV market, as well as the potential advertising and sponsorship revenue available to broadcasters.

Some have asked why MDA did not put all World Cup games on the anti-siphoning list. I think the rationale is that if you have an overly long list of World Cup matches on the anti-siphoning list, that may lead to unintended consequences. In particular, pay-TV operators will then have little incentive to acquire the matches. Instead, the cost burden will then have to be borne largely by the Free-to-Air broadcaster. Doing so would then divert a significant portion of PSB monies which are used to support a diverse range of programming covering varied interests and genres, including support for minority channels, as well as programmes that promote Singapore's culture and heritage.

In conclusion, MDA has to achieve a delicate balance. It should not be hasty to adopt populist measures that ultimately backfire, leaving consumers even worse-off.

I would, however, like to assure Members that MDA will continue to review its policies, including cross-carriage, as I have mentioned earlier, and the anti-siphoning list. Cross-carriage will be reviewed as part of a larger review of the Media Market Conduct Code later this year. As for the anti-siphoning list, the public was last consulted on this in 2012, and will also be reviewed in due course and I would encourage Members to provide feedback during the review of these policies.

Thank you, Mdm Speaker. I would like to ask one supplementary question. I note the Senior Minister of State's reply that we are a price-taker, not a price-setter. However, football is very popular among Singaporeans and there are many countries which telecast World Cup free-of-charge, such as Japan, South Korea and even neighbouring countries like Thailand, Indonesia and Cambodia. Can the Ministry look into doing more for fellow Singaporeans who do not subscribe to those paid channels?

Madam, I understand where the Member is coming from in terms of the popularity of the sport and also the concerns about pricing.

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We have to understand, as I have mentioned earlier, that, inherently, this is an issue where the rights owner, the property owner, calls the shots. And they have been doing so across all jurisdictions because broadcast payment has gone up 20% to 40% around the world, not just in Singapore. Some countries are able to offset that in a more effective way because they have bigger markets, they can get more sponsorships and more advertising revenues. So, different countries find different ways to price the content to the consumers but, across the board, the acquisition cost has gone up. All the countries are paying more to FIFA and that is, I think, how the business has evolved over the recent years, in terms of premium sports content, in particular, football.

It is something we have to review. As I have said, we are going to review our anti-siphoning list. We are going to review our cross-carriage measures as well. I am not sure that these would inherently change the dynamics of the game because these are internal measures. In the end, however we adjust, somebody has to pay FIFA this amount of money. We have to look at it in two aspects: one, understand the realities of the football market today. This is what is happening. We are, unfortunately, a small market with a high interest in football. And we may not have enough of a subscription base or an advertising revenue base to offset the cost, unlike other countries. In such a dynamic, in such negotiations, ironically, the more desperate we are to acquire, the more the rights owner on the other side will feel that they have the ability and the leverage to charge us at a high price. So, we have to understand the broader dynamics that are happening in the negotiation as well.

I would like to ask the Senior Minister of State whether he is able to share or confirm that MediaCorp has to pay to broadcast the four matches under the anti-siphoning list and how their rates compare with what SingTel pays. In the scenario where we were to include all matches under the anti-siphoning list, what is the impact of this on the pricing that MediaCorp, as a Free-to-Air station, has to pay, versus a pay-TV operator?

Madam, I think these are relevant questions that people have been asking. It is true that MediaCorp has to pay SingNet to acquire the four matches and that is only simply because FIFA does not bundle and separate out its package: four to sell to MediaCorp; the rest, to sell to SingNet. FIFA does not do that. FIFA sells the entire package to one purchaser. That purchaser can be a pay-TV operator; it can be a Free-to-Air broadcaster. It does not matter. For them, they look at the market, the purchasing power of the market. They will sell to whoever bids for it as an entire package.

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How the person who bids for it then breaks it up into the different channels and the different events, that is not something that FIFA looks at because that depends on the domestic rules: what is in the anti-siphoning list and what are the cross-carriage measures.

In this case, MediaCorp will have some ability – it already has worked out an arrangement with SingNet – to acquire the matches that are on the anti-siphoning list – the opening, the semi-finals, the finals. I will imagine that there will be some cost apportionment between SingNet and MediaCorp, and they will work out the cost. And MediaCorp, through its sponsors, through its advertising revenues, would then be able to acquire these matches.

I cannot reveal the specifics of the pricing because these are commercially-sensitive figures. But that would have been worked out between SingNet and MediaCorp.

I would also say that SingNet, based on all the revenues that it is getting from the World Cup content, actually is not able to recover the costs of acquiring the content today. So, this is not a matter of SingNet profiting or getting a handsome dividend from acquiring this package. For all the revenues that SingNet is getting from the World Cup content, it probably will not be able to cover the costs.

The question the Member also asked was: what about having all the matches put on the anti-siphoning list, having a Free-to-Air broadcaster bid; or, for that matter, as some have suggested, why not make a joint bid? But, as I have said, this does not matter from the FIFA perspective. From a property owner perspective, they look at the market, meaning the entire country, and what the country can afford. And whether it is a joint bid, a Free-to-Air broadcaster bidding or a pay-TV operator bidding, those may have a little bit of an impact on the negotiation dynamics but it will not materially change the game, which is that they will look at the overall purchasing power of the market, that is what FIFA looks at. And as I have mentioned earlier, fundamentally, that price has been going up across the board, not just in Singapore.

Three supplementary questions for the Senior Minister of State. Firstly, in view of what he has said, will MDA mandate that all contracts signed between telcos and content providers for exclusive content be wrapped up 12 months prior to the staging of the event, like in many other countries which seal the arrangements early, so telcos can offer lower charges to the viewing public in view of the lead time available to source for

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more advertising revenue to subsidise the costs of content procurement?

The second question: has the Ministry considered whether Singapore Pools, the only legal lottery operator which benefits from World Cup punting, could contribute towards subsidising the Singapore viewing public in reasonable proportion to its soccer-related betting collections and payouts?

And, finally, would the Minister clarify if the Programme Advisory Committee for English programmes (PACE) made any specific recommendation or advised MDA on measures to reduce the costs of watching the World Cup to Singapore consumers in light of the escalating costs from the 2010 experience?

Madam, on the regulations or proposed regulations that the Member asked for, to require that negotiations or the contract be wrapped up 12 months earlier, is something that MDA can look at. I would say that MDA is not opposed to looking at any form of regulation but it will always apply a cost-benefit to these regulations, meaning to say, what is the benefit of making a regulatory move and weighing that against the costs, which may include inadvertent consequences to commercial operators, and the perceptions that it will create in our pay-TV market.

In this instance, I am not familiar with the details but I would imagine that one would ask the question: if MDA were to impose such a requirement, would it end up with a situation where the pay-TV operators, or whoever submits a bid, may actually end up paying a higher price inadvertently, because you are forcing them to negotiate and wrap up within a certain time limit. I am not sure, but it is something that MDA would have to answer or look at, weighing the benefits and the costs of the regulatory measure.

Singapore Pools does contribute. I do not have the details with me but they do contribute and they do provide support through a wide range of different schemes in the sense that it is not just for MediaCorp but also for the community centre viewing. They provide some support, as I understand, to various platforms to allow Singaporeans to view the World Cup. I do not have the details of how much they provide. That is something we can take separately, but they do provide support for the World Cup viewing.

PACE – I do not have details, too, but I would imagine that they would have given feedback if it was something that mattered to them in terms of consumer pricing and the concerns that occurred even before the EPL and the World Cup

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experience the last round.

But as I said earlier, fundamentally, the challenge is not something that you can overcome because the fundamental nature of this is that the rights owner, FIFA, has a monopoly over the rights. It is a content owner who has increased in popularity around the world and they are now having the ability to charge higher prices to all markets. And in a market like Singapore, which is small, which has high demand for football, they will look at that market and say, "Well, I think you have the purchasing power to pay a high price", and they will do so accordingly. They cannot do this indefinitely because, at some point in time, if we are prepared to say, "Look, we will walk away", then they will realise that the dynamics are changing. But until then, until such time that this happens, it is very hard to change the fundamental dynamics, which is, that they will look at us as a market that can afford this rate.

It is something that we have to bear in mind when we do our review, that this is the reality of the landscape. As we do our review for cross-carriage, anti-siphoning or any other regulatory suggestions and measures that Members may have, we will have to think through how best to structure this because, ultimately, then somebody has to pay. It may not be the consumers but it may be the taxpayers, but somebody will then have to pay FIFA for the rights until the dynamics fundamentally are altered.

Thank you, Madam. I gather from the Senior Minister of State's answer that there are two factors here affecting the pricing – one would be the purchasing power of the market, Singapore's market; and, secondly, a bidding war would lead to higher pricing. So, in theory, if MediaCorp were mandated to show all matches under the anti-siphoning list, there will be no interest for SingTel or StarHub to go into a bidding war, and only MediaCorp would have interest to purchase the rights. So, would that not be something within our control that can affect the negotiations and, hence, probably, a reduction in the price that MediaCorp has to pay to FIFA?

Madam, to a large extent, I think the unhealthy dynamics of competitive bidding, causing prices to go up, have been addressed through cross-carriage, in the sense that whatever the entity that bids for it recognises and knows that that product has to be cross-carried on other platforms at the same price. So, it does not matter whichever price you pay for and whichever operator gets the rights to broadcast, if he chooses to do so on an exclusive basis, under cross-carriage, that content has to be carried at the same price on other platforms. So, that, to some extent, would already have ameliorated some of these internal bidding dynamics that the Member talked

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about.

That is why I say, even if you have a joint bid or if you have MediaCorp coming to it, yes, I acknowledge it may have some impact, it may help to reduce marginally, but I do not think it will significantly move the needle. We know from the assessment of the pay-TV operators, who have been in this game and business, that there is basically a range where FIFA is looking at in order for us to secure these rights to broadcast the World Cup; that is where they are looking at. This is the range; it is a narrow range, but you need to pay that amount of money in order to get the rights.

12 Assoc Prof Fatimah Lateef asked the Deputy Prime Minister and Minister for Home Affairs if he will provide an update on the management and handling of the disamenities caused by the vice activities taking place between Geylang Lorong 24 and Geylang Lorong 42.

(for the Deputy Prime Minister and Minister for Home Affairs): Mdm Speaker, the Police are cognisant of the challenges in the Lorongs in Geylang and have been working closely with the local Members of Parliament, grassroots leaders and various Government agencies to tackle law and order concerns, as well as the disamenities in the area.

In particular, Police have deployed significant resources on the ground in Geylang. Geylang Neighbourhood Police Centre (NPC) has about 160 Police officers, and that is about 60% more than the manning levels in other NPCs. In the evenings, especially on Fridays and weekends, additional Police fast response cars are deployed to augment the regular fleet, for incident management and to enhance Police response in and around the Lorongs in Geylang. In addition, Special Operations Command (SOC) troopers are deployed in the area to project a strong Police presence on a regular basis. In 2013, SOC troopers were deployed in Geylang on 41 occasions and there were more than 1,000 anti-vice operations conducted in that area. CCTVs and street-lights were added to the back alleys and side lanes to deter streetwalking and other illegal activities.

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With a significant Police presence and through regular enforcement action, illegal activities have been contained, and the number of major offences in the Geylang Lorongs has fallen by 36% since 2008. Police also work closely with MOM, NEA, URA and Singapore Customs in their enforcement operations against illegal lodging houses, illegal hawking and other regulatory offences.

In addition, Police will augment the current 47 CCTV cameras in the area with 160 more CCTV cameras. Police are also working with LTA to further enhance the lighting conditions in the Geylang Lorongs. I want to assure the Member that MHA, Police and other Government agencies remain resolute in our commitment to maintain law and order in Geylang and we will take additional measures where necessary.

I thank the Minister for the response and also for mentioning some of the efforts I have spearheaded with my grassroots leaders in the last several years.

The second supplementary questions. With the present efforts mentioned, feedback of fear, concern and discomfort by residents in the area continues to persist and also escalate, especially recently, with the comment by the Commissioner of Police. What else and how else can the relevant authorities assist to mitigate these concerns?

Second supplementary question: crowding, congregation of people, open soliciting, noise pollution, littering, crime, moonlighting by foreign workers, gambling and a lot more, just to name a few, are actually all the activities that go on hour to hour, day to day, month in, month out, year in, year out. So, I would like to know how is MHA coordinating and working with relevant agencies in a more concerted and concrete way to contain, if not to eradicate, these activities.

Madam, I thank the Member for enumerating the concerns of her residents. And I also want to acknowledge the fact that, as I said in my earlier reply, Police have been working with and appreciate the cooperation from the Member as well as the grassroots leaders and other stakeholders in the area. The Member raised two points. Let me deal with them in turn.

The first is on the Commissioner of Police's comments, and I think she is referring to his comments in the context of the Committee of Inquiry on the Little India riot. I think we should be quite clear about the context of that comment because that would help to put things in perspective. Firstly, I think it

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was in the context of the Commissioner seeking to share with the members of the Committee Police's strategies and tactics in dealing with some of the challenges they face across Singapore and, in this instance, he was highlighting not just Little India but also Geylang as an example. In the context of Geylang, I thought there were three points that were important to note, and I think this would go some way in addressing the Member's questions and the concerns of her residents.

The first is that the situation in Geylang, with its complex social ecosystem, does pose specific policing challenges and that was the point that the Commissioner was making. Second, is that the Police recognise this challenge and that is why there have been these specific additional measures that have been dedicated to enforcement efforts in Geylang. I think that is borne out by the numbers, both in terms of the deployment of resources and the outcomes we have seen. The trend is downwards. Of course, more can be done and residents would certainly prefer more to be achieved.

And, thirdly, I think it is also about the Police having to continually evaluate different operational needs on the ground, from the policing perspective, and from the law and order perspective, in allocating resources. And that is also an important point to recognise – that this is the level of resource allocation dedicated to Geylang because there is an assessment of an operational need on the ground, and the Police will adapt and respond to situations as it evolves. I thought that it is important to clarify so that the Member is also able to reassure her residents on the context and the intent of the comments made by the Commissioner.

Secondly, with respect to what the Police are doing in terms of addressing the other disamenities and so on, in general – I think as the Member is aware, and to share with Members of the House – Police focus on law and order, crime issues and related matters. But, as part of an overall strategy in Geylang, Police also coordinate their activities with other agencies, as I elaborated, whether it is MOM, URA, NEA and so on. And I think the intent is to continue to work on this sort of joint efforts whilst the Police focus, in particular, also on crime and law and order concerns, and I would add that, apart from what I have already shared, the Police also have certain targeted efforts in, for example, other kinds of criminal activities which are not captured in the general enforcement statistics that I have shared with all of you today.

I have just one more supplementary question, Madam. The Minister mentioned about the allocation of manpower resources. Certainly, would it not be better if we can actually solve the root

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cause of the problem? Then, the manpower can certainly be diverted to other more important issues in Singapore, at the national level.

Madam, I am not sure what the Member means by "the root cause of the problem" and, indeed, whether it can be eradicated. But if she means by that, removing it from the Geylang area, whilst it may solve her problem, it would become somebody else's problem and, certainly, for the Police and for MHA, it will remain a pressing problem.

The following question stood in the name of Mr Alex Yam –

13 To ask the Minister for Education (a) what has been the student drop-out rate for primary, secondary and ITE levels over the last five years; (b) what are the main reasons for dropping out of school; (c) are these students tracked after they leave school; and (d) what programmes does the Ministry have in place to encourage potential drop-outs to stay in education.

Question No 13, Madam.

Madam, the overall proportion of each Primary 1 (P1) cohort that does not complete secondary education has fallen from 4% in 2000 to less than 1% in the last five years. The majority of the students who dropped out did so because of a complex interplay of several factors, including difficult personal and family circumstances and negative peer influence outside of school.

To engage students in their studies, our schools proactively build caring and supportive environments which motivate them to learn and grow. This includes providing good pastoral care, appropriate career guidance and various programmes that help students build self-esteem, take responsibility for their actions and develop a desire to lead a purposeful life.

Schools closely monitor students at risk of dropping out and engage and motivate them to stay in school. One intervention is the Time Out Programme where the students are taken out of their regular classes and instead provided with a customised programme that aims to rekindle their desire to learn, as well

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as help them develop ways to cope with and overcome any personal, family or social problems that they might be faced with, before they are re-introduced back into their regular classes.

As the reasons for dropping out are many and complex, MOE reaches out to these students by tapping on the expertise and networks of relevant agencies, such as the Central Youth Guidance Office, MSF, MHA, SPF, CNB, self-help groups, Family Service Centres (FSCs) and Voluntary Welfare Organisations (VWOs).

For example, students who drop out of school are referred to the Enhanced STEP-UP Programme set up by MSF. Under this programme, VWOs engage the out-of-school youth individually, as well as together with their family. Youths on this programme also participate in group activities to support them in returning to school or to be meaningfully engaged in society.

Parents are an essential partner in these efforts by our schools and VWOs. They help to effectively instil and reinforce the right values in our students, and provide support and encouragement to them. Schools will continue to engage and work with parents to support their child's needs.

The attrition rate at ITE has likewise declined over the last few years, due to extensive efforts undertaken by ITE. Around one-quarter of each P1 cohort progress to ITE, and more than four-fifths of them graduate with a full certificate. ITE students drop out for many reasons. Some students find it difficult to cope because of their weak academic foundation or difficult personal or family circumstances; while others lose interest in their studies because of a lack of positive peer and family influence, a lack of motivation and other available job opportunities elsewhere.

ITE has adopted a number of measures to address attrition. It has introduced a more flexible curriculum framework to prepare students for a cluster of related careers to keep students interested even if they are not able to enrol in their first choice course. ITE is also catering better to students with different needs, abilities and aspirations, and expanding student counselling and services to better support its students holistically. This year, ITE also introduced the Enhanced Nitec Foundation Programme (e-NFP) which includes an additional year to strengthen the foundation for the students so that they will successfully complete their Nitec courses. Team-building programmes to foster a greater sense of belonging and support among students have also been expanded. ITE also closely monitors and assists the weakest students by giving

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them additional remedial lessons and counselling. With time, many of these programmes and measures should ensure that more ITE students successfully complete their course of study.

I thank the Senior Parliamentary Secretary for the answer. It is heartening to hear that drop-out rates have decreased over the years. I have two supplementary questions. To what extent are parents engaged, especially for these at-risk students and for those whose parents are absent and not around, who would be the guardians, who would be taking care of them, that the school engages? The second question is: for primary and secondary schools, are there sufficient allied educators who may work closely with such at-risk students to ensure that their behaviour is monitored?

Madam, I thank the Member for the supplementary questions. ITE works closely with organisations that may be able to help students. The Enhanced STEP-UP Programme run by MSF, for example, works very closely with voluntary organisations, Family Service Centres and organisations that can help reach out to both the students as well as the parents, if necessary. So, it is working with organisations that have already the ability to reach out to parents that may prove useful. ITE is also working with voluntary organisations to run programmes that can help raise the motivation of the students who are in danger of dropping out. Based on the ITE reports, we are pleased to note that the programmes run by the two organisations are effective.

On allied educators, yes, almost all of our schools are supplied with allied educators for various reasons. Some are meant for classroom teaching and some allied educators are counsellors or helping the school with counselling work. We leave it to the school to decide on which type of allied educators they need and want to deploy.

I thank the Senior Parliamentary Secretary for the answer. Following up on Mr Alex Yam's question, I would like to ask: is there any engagement by the school or the Ministry to engage those who have left school – whether there is any visit to the house to meet up with the parents or the students themselves to encourage them to go back to school?

Yes, Madam, in my reply, I did say that schools and ITE work with organisations to encourage those who have left school to return. Some of them are given the early foundation – the additional year that ITE gives

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to the students who are academically weaker. It may be useful to help those who may be in danger of dropping out or those who may drop out later, to return with some foundation that may be useful for them to pursue the courses that they are sent to.

14 Mr Teo Siong Seng asked the Deputy Prime Minister and Minister for Finance whether the Government can include partnership with local companies as a condition in the tender specifications of key infrastructure projects so that these local companies can build up necessary expertise and track records to help them secure a foothold in overseas projects.

(for the Deputy Prime Minister and Minister for Finance): Mdm Speaker, Singapore is a signatory to the World Trade Organization (WTO) Agreement on Government Procurement and a number of Free Trade Agreements. For procurement covered by these agreements, signatories are not allowed to attach conditions requiring tenderers to partner local companies. This applies to Singapore as well.

To help Singapore companies take part in Government procurement, our focus has been and continues to be on strengthening their capabilities and competitiveness and improving their productivity. For example, to strengthen local capabilities in construction and help local firms build track record, the Building and Construction Authority (BCA) topped up the $250-million Construction Productivity and Capability Fund with another $30 million.

Where there are synergies in working together for overseas projects, Singapore companies can work as a group and leverage IE Singapore's Global Company Partnership framework that allows them to undertake projects jointly and to share costs. For example, companies can engage consultants to conduct feasibility studies or to prepare bids for an overseas project, with IE funding up to 50% of eligible costs.

In addition, the Government has also initiated the establishment of Clifford Capital, which provides financing support to Singapore-based companies

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participating in overseas infrastructure projects.

I thank the Senior Minister of State for the reply. The point is about us being a WTO member and having to comply with fair bidding. However, we also hear that construction companies are coming from developed countries; in fact, they are coming here to bid at very low prices, and yet it is very hard for our companies to bid for contracts in their countries. So, it seems that this WTO agreement is not presenting a fair, level playing field, especially for big construction companies from developed countries.

The other point is about bringing the smaller companies in. Is there any scheme for the Government-linked companies (GLCs) to work with smaller companies overseas and, together, they bid for contracts?

Mdm Speaker, I thank Mr Teo for his comments. On the point that he made about the foreign contractors coming to bid for jobs in Singapore and whether Singapore contractors equally can access jobs overseas, I take the point about participating as a member of WTO, indeed, is to enlarge the space that our companies are able to operate in and also to enlarge the market that they can take part in. If we were not members of this organisation, then the market size in Singapore is even smaller and it would be even harder for our companies to build up the capability and to spread their activities abroad.

So, I think there are two sides to the argument of being a member of WTO. On the one hand, you remain open, and it means that you have to allow foreign contractors to take part in Government procurement in Singapore but, at the same time, you enlarge the playing field that your own contractors can take part in.

There are many schemes that companies can avail themselves of. But I think the point that has also been considered is that operating out of Singapore is clearly very different from operating within Singapore. The rules are different; the partners are going to be very different; the way you organise your business is going to be very different, and where IE Singapore is concerned, my understanding is that they will extend all support and help wherever necessary, and if the trade associations and chambers have got suggestions on how else the Government can be of help, I think these will certainly be considered favourably. I would suggest that we engage in a conversation on more specific details of how the Government can be more supportive.

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15 Mr Gan Thiam Poh asked the Minister for National Development whether HDB can consider giving priority to families with children in applications for larger BTO flats such that a couple with two children gets an extra chance for a 4-room BTO flat application and a couple with three children gets an extra chance for a BTO flat of four rooms and above.

Madam, we do give priority to families with children in their flat applications through two schemes. First, under the Third Child Priority Scheme, HDB sets aside up to 5% of the flat supply for families with three or more children. Second, under the Parenthood Priority Scheme, HDB sets aside 30% and 50% of the public flat supply in Build-To-Order and Sale of Balance Flats exercises respectively for first-timer families with at least one young child, or who are expecting a child.

Under both schemes, a fixed quota of flats is set aside for these families. This ensures a better chance of success, as compared to giving them more ballot chances.

HDB also does not restrict the priority given to families with children to only 4-room or larger flats. This is to allow them to choose the flat type that best suits their budgets and needs.

I thank the Minister for his clarification. May I know how many applicants currently in the queue are non-first-timers? When will HDB be able to satisfy all of them?

Madam, I used to carry such figures at the top of my head, but now I am unable to recall them. We have largely cleared the queue for first-timers. But the objective to satisfy every second-timer's demand for a new flat is a commitment I cannot make. I have the responsibility to try to meet the demand from first-timers as much as we can.

However, for second-timers, they have options. They already have a flat and they have choices. They can take their time to buy another one, from resale or some other accommodations. As we clear the queue for first-timers, the opportunity to satisfy other applicants with other needs has enhanced.

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16 Mr Png Eng Huat asked the Minister for National Development in respect of the Parenthood Provisional Housing Scheme (a) what is the formula for pricing the rental rates for flats under this scheme; (b) what are the costs involved in providing these rental flats; (c) What has been the number of applications for 3-room flat types; and (d) Whether the rental rates can be lowered to encourage the take-up rate for the bigger flat types.

Madam, the Parenthood Provisional Housing Scheme (PPHS) provides an additional option for families to rent a flat from HDB while they wait for their new flat to be completed. In setting the rents, we consider various factors, such as the flat type and also the location. PPHS rents are 40% to 60% lower than market rents in the vicinity.

The cost of providing PPHS flats includes the cost of retrofitting the flats before they are let out, and also the cost of managing and maintaining the flats.

The number of applications per month peaked at 409 last September, but has since dropped to 81. More than 900 of the 1,150 PPHS flats have been taken up. There are some larger flats still available. We are considering allowing some couples to co-rent, in other words, to share, these larger flats.

17 Assoc Prof Fatimah Lateef asked the Minister for Health whether the use of Community Health Assist Scheme (CHAS) and its subsidies can be extended to cases where primary care doctors have to make house visits to manage elderly or sick patients.

Madam, today, home-bound patients with medical needs may be referred through the Agency for Integrated Care for a MOH-subvented home healthcare provider to deliver home medical service by a doctor. These patients can already receive means-tested subsidies of up to about $133 per visit. In 2013, more than 1,300 patients received home medical service under MOH-subvented home

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healthcare providers. The majority are patients with long-term care needs, but some are also home-bound patients with shorter-term needs, such as those recovering from complex wounds post-discharge.

For patients with ad hoc medical needs but who are not enrolled in home medical service, if they are on the Community Health Assist Scheme (CHAS), they can receive subsidies for house visits by CHAS GPs but at the same subsidy rates, which are up to $18.50 per visit for common illnesses and up to $120 per visit for chronic conditions.

18 Ms Tan Su Shan asked the Minister for Trade and Industry how can the Government encourage bigger businesses to give local smaller firms an equal chance to become a preferred provider that will provide these smaller players a useful head start to evolve into our next generation of global enterprises.

It has always been our objective to have the big companies work with the smaller ones in a partnership format or by forming a consortium to go overseas for projects, as well as to develop the smaller start-ups to increase their capabilities. We have developed several schemes and programmes for that purpose, one of which is the Partnerships for Capability Transformation (PACT) programme. It was introduced in 2010 with a budget of about $250 million under EDB to incentivise large companies to work with smaller companies to raise the capabilities of the smaller companies and enable them to become preferred providers or suppliers.

The PACT programme was further expanded last year. We have an additional $60 million over three years set aside for SPRING to engage these companies beyond manufacturing sectors. We enhanced it, broadened the sectors, so that more sectors would be able to use it. They support co-innovation projects between the large and smaller businesses.

PACT also helps smaller firms in three ways. First, PACT helps large firms to identify and partner local suppliers, local SMEs and helps these smaller suppliers learn best practices from the large companies. Second, PACT provides support for SMEs to upgrade their capabilities to meet global

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standards and become qualified suppliers of large companies. Third, PACT supports co-innovation projects, which I have mentioned, where large companies and SMEs work together to test-bed new types of technologies or innovation. This helps SMEs build up their portfolio and track record.

The take-up rate for PACT has been quite positive. Over the last year, 40 large organisations signed up for more than 50 projects, with another 70 projects in the pipeline. The on-going PACT projects are expected to benefit more than 300 smaller companies. Of course, we can do more. With 160,000 or 170,000 SMEs, we continue to encourage big companies to work with the smaller ones to tap on these schemes.

The Government also supports joint overseas ventures in order to develop global companies. IE's Global Company Partnership (GCP) grant supports companies working as a group to land overseas projects, allowing large companies to undertake internationalisation activities jointly with smaller companies, and they can share the costs. Support under the GCP includes prototyping and market testing for products, as well as overseas attachments to large companies to acquire new technologies and capabilities.

In addition to some of these overseas schemes, there are some of those programmes and schemes that can help smaller companies to market and promote their products overseas. We strongly encourage these companies to use them, as well as the programme where they can tap on the network of resources to find out more information about the overseas market. The Government helps to defray some of the costs incurred in finding out the information. We continue to encourage big and small companies to work together and also to tap on those schemes.

I thank the Minister of State for his reply. I just want to ask a couple of questions.

In terms of the PACT programme, when you look at innovation and co-development, do you also look at the payment terms? When it comes to big companies, they typically have economies of scale and they can demand longer payment term cycles. I have done SME dialogues where SMEs would complain that big companies expect longer payment terms and very harsh conditions of contract. This could be looked into. This is one aspect.

My second question is: in terms of putting all these companies together – it is related to the earlier question – how can we facilitate more to come together,

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especially when they have very varied interests in terms of objectives?

For co-innovation projects, usually there will be some costs upfront that would need to be paid. If let us say it is a cooperation between a large and a small company coming together to develop the project, we usually try to encourage them to tap on some of our research institutes or agencies like A*STAR and so on to help to facilitate the whole process so as to help not just the cash flow but, more importantly, the content of the innovation project. How we can help both sides.

SPRING, A*STAR and IE are agencies that are there to help facilitate the process, including resolving some of these issues. It is important for the SMEs, or even the large companies, to surface these issues so that they can work it out. We have done it before. We have overcome such challenges before to facilitate the process of bringing big and small companies together, especially going overseas.

These are companies with a very small market. The size of that company is only that big. If they individually go out there to bid for overseas projects, sometimes their probability of success is very low. We always encourage them to form consortiums, look at major projects, because at the government-to-government level, we have very good relations and the trade growth has increased in many ways, say, for example, in big markets like China. But the project in China is relatively large. We need these smaller companies to group together, look at the opportunities and go for them. And many other countries, for example, the Taiwanese, Japanese and Koreans, are doing the same.

In order to help facilitate that, we are now reviewing some of our programmes, schemes and policies to facilitate that process. At the same time, we are also trying to empower the associations that have been set up overseas, like SinCham, the different offices that are set up, empower them to be able to bring their companies that are overseas together. Essentially, it is both ways. Both here and there, we have to coordinate. SPRING and IE undertake such a role to facilitate this whole process. And we definitely want to beef up our resources to do that.

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19 Mr Teo Siong Seng asked the Minister for Transport whether the public transport operators intend to recruit bus drivers locally or from foreign sources for the 450 buses that will be added to the existing bus fleet under the Bus Service Enhancement Programme.

Mdm Speaker, as is the case for the initial 550 buses under the Bus Service Enhancement Programme (BSEP), the Public Transport Operators (PTOs) will hire both local and foreign drivers for the 450 buses under the expanded BSEP that Mr Teo has asked about. However, they prioritise the recruitment of local bus drivers, through a Place-and-Train programme and progressive wage structures, amongst other measures.

20 Mr Ang Wei Neng asked the Acting Minister for Manpower (a) in the past three years, what is the number of complaints filed by (i) local workers (ii) foreign domestic workers and (iii) other foreign workers from traditional and non-traditional sources; (b) how many of these complaints made by local and foreign workers are substantiated; and (c) whether there are instances where the Ministry took action against workers who make invalid complaints.

Mdm Speaker, in 2013, MOM assisted approximately 7,000 non-domestic work permit holders of all nationalities with difficulties. About half of these cases were employment-related, covering claims for salary or overtime payments. The remainder included well-being issues, such as employers failing to ensure that their workers had acceptable accommodation, as well as work injury compensation-related issues, such as non-payment of compensation. As of 2013, just to give us a sense of proportion, this essentially represented less than 1% of the total non-domestic work permit holder population.

This was a significant drop from 2011 and 2012, where we assisted approximately 14,000 cases each year. This was in spite of the increase in foreign worker population.

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With regard to foreign domestic workers, the number of workers assisted has also come down, from an average of about 700 workers per year in 2011 and 2012, to less than 500 workers last year, in spite of the increasing population. These cases tend to relate to salary disputes and illegal deployment. As of 2013, again to have a sense of proportion, this represented about 0.2% of the total foreign domestic worker population.

There has been a slight increase in the number of local workers who approached MOM to resolve issues related to employment and work injury compensation. In 2013, about 3,800 local workers lodged cases with MOM for such matters, compared with an average of 3,400 such cases annually in 2012 and 2011. Is there a particular reason for this increase? A lot of it has got to do with increased awareness. We have stepped up our efforts to make sure that our workers understand their rights considerably and this has been the impact of that.

While the overall situation is generally good – Members can see from the proportions that they do represent quite a small proportion of the overall foreign workforce – it is clearly not the perfect situation. There are egregious practices and there is, certainly, always room for improvement. My Ministry stands ready to assist any worker with a rightful claim, regardless of the nationality, but it is also important to emphasise that we also do not tolerate attempts to game or to take advantage of our system. People will be taken to task if they do so. Over the past three years, we have taken action against about 100 workers for making false declarations to our officers.

21 Ms Sylvia Lim asked the Minister for Health what efforts are ongoing to educate the public on the effects of the compulsory donation provisions of the Human Organ Transplant Act so as to minimise distress to family members of patients who meet the criteria for compulsory harvesting of organs.

Madam, the Human Organ Transplant Act (HOTA) facilitates Singapore Citizens and Permanent Residents (PRs) who reach 21 years of age, to donate their kidneys, livers, hearts and corneas in the event of death, for the purpose of transplantation to save lives. Every year, the National Organ Transplant Unit (NOTU), sends a HOTA notification letter to all citizens and PRs who are about to turn 21 years old. This

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letter clearly explains the requirements and implications of HOTA.

We also organise on-going public education programmes such as the "Live On" campaign which started in 2008 to raise public awareness and understanding about organ donation. Last year, SingHealth Transplant organised the "Thanks a Million!" project. Around one million paper roses were folded by over 18,000 school students and healthcare professionals from various institutions in Singapore to show appreciation to the gift of life made by organ donors.

This year, MOH has also planned a series of public education efforts including television commercials, newspaper advertisements, and roadshows to spread the message of organ donation and to encourage individuals to discuss their views and decisions on organ donation with family members and loved ones. Through this open sharing, we hope that the family members would then be more ready to honour the organ donation decisions of their loved ones when called upon to do so.

In addition to these public education efforts on the ground, our hospitals have teams comprising senior clinicians, medical social workers, nurses and transplant coordinators to engage family members of donors during the organ donation process. MOH also regularly conducts training programmes to equip these hospital staff with the skills to communicate sensitively with the family members of donors, explaining the organ donation process, hearing the family's concerns and clarifying any related issues that they may have.

We will continue to evolve our approach to engage Singaporeans about this important and emotive topic, so that the life-saving and life-changing benefits of organ transplantation can be better understood and embraced by family members and society at large.

Madam, I have two supplementary questions for the Minister. I note his comments about the Ministry's efforts in the past and pending this year to educate the general public on the implications of the law. I wanted to ask whether the Ministry also tracks the outcomes of the efforts so far. In other words, what is the general awareness level existing in the population right now. Despite all these efforts, is awareness high, low or what is it?

Secondly, I recently came across a case of a resident of mine who passed away and she qualified to be a cadaveric donor. The family narrated to me that

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they were very shocked about the implications of the organ donation law. I would like to ask the Minister whether such expressions of surprise or shock from families is commonplace in hospitals currently and is that how the Ministry is stepping up its efforts.

Madam, I thank the Member for the supplementary questions. We have been tracking the outcome of our public education programmes. We have done surveys from time to time to better understand the awareness of HOTA and what are the implications. I do not have the exact numbers with me but from our studies and our surveys, we find that the majority of Singaporeans know about HOTA. They may not know all the implications of HOTA but we do know that a significant proportion of Singaporeans do understand the implications of organ donation under HOTA, and the possibility of opting out.

To start with, we are sending letters to all Singaporeans and PRs reaching 21 years of age, to inform them of the option to opt out if they wish to. From time to time, when family members come into contact with the incident of a loved one passing away and they are confronted with the decision about organ donation, they may find it surprising and shocking at the point when they have just lost their loved ones. That is an encounter that we face from time to time at the hospital. When a person passes away, the family members are grieving. At the same time, the doctors and clinicians have to race against time to ensure the viability of the transplant. Therefore, they have to discuss with the family members on this issue that is sometimes very sensitive and very emotive. Therefore, we conduct training programmes for hospital staff so that they are better equipped in dealing with such issues to be able to understand the families' concerns and to manage the process in a more sensitive way.

I hope that by doing so, we would be able to improve the success of organ donation.

22 Dr Lim Wee Kiak asked the Minister for Defence what assistance has the Ministry provided to Malaysia during the incident involving Malaysian Airlines Flight MH370.

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23 Mr David Ong asked the Minister for Defence what is the extent of assistance rendered by Singapore to Malaysia in the search and rescue of Flight MH370.

Madam, if I may have your permission to take the next two questions together?

Yes, please.

First of all, let us extend our deepest sympathies to the families and loved ones of the passengers and crew of MH370. Our thoughts are with them during this difficult time.

On 8 March 2014, when news of the disappearance of flight MH370 first broke, MINDEF deployed our C-130 aircraft to assist in the Singapore Rescue Coordination Centre's search and locate efforts in the South China Sea. The C-130 aircraft arrived at the search area at about 2.00 pm that same day. Minister Ng Eng Hen also spoke with his counterpart, Malaysian Defence Minister Hishammuddin Hussein, to see what else we could do to help. We subsequently deployed a Victory-class Missile Corvette (RSS Vigour), a Formidable-class frigate (RSS Steadfast) with a Sikorsky S-70B naval helicopter embarked, as well as a submarine support and rescue vessel (MV Swift Rescue) with divers on board to assist the search efforts in the South China Sea. Our Chief of Defence Force and Service Chiefs have also been in close touch with their Malaysian counterparts.

When the search and locate efforts expanded to the Malacca Strait, we further deployed a Fokker-50 Maritime Patrol Aircraft to Butterworth Air Base, Malaysia, to assist in the search efforts in the Malacca Strait.

When the search efforts were shifted to the Indian Ocean, we activated our Navy's Information Fusion Centre to reach out to its network of navies and shipping companies to report on any sightings in the new search areas. Relevant information received was then conveyed to the search coordinators in Malaysia and Australia.

Mdm Speaker, a quick question for the Second Minister on whether there is an ASEAN response plan and what kind of collaboration among the defence forces of ASEAN nations can be deployed such as information-sharing, security alerts on flight routes, as well as crisis

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management, in light of this unfortunate event.

Mdm Speaker, I think this incident is rather unprecedented. Various members of the ASEAN community have tried their best to provide assistance that would be useful to the Malaysians and the other parties involved in the search. For the ASEAN community, we do share tracks especially in shipping. Our Information Fusion Centre at Changi provides information to the shipping community on all the available information for shipping. We also have foreign liaison officers working with us in the Changi Information Fusion Centre to share such information.

24 Mr Baey Yam Keng asked the Minister for Transport whether there are plans to build an integrated network for live updates of bus and MRT arrivals and/or breakdowns which can be accessed on multiple platforms including the Internet, TV, radio and digital signboards at bus stops, bus interchanges and MRT stations.

Mdm Speaker, the two Public Transport Operators (PTOs) provide "live" service information on their respective websites and smartphone apps like SBST IRIS and SMRT Connect.

In addition, LTA integrates service information from them and makes it available on various platforms for commuters' convenience. For example, it provides one-stop information access through the MyTransport.SG and PublicTransport@SG portals. This is augmented by dissemination through third party smartphone apps such as SG NextBus and SG Buses. LTA also broadcasts service delay information through its TrafficWatch radio announcements and Twitter.

Madam, I thank the Minister for the reply. Just one supplementary question. I was wondering what were the criteria for the setting up of digital signboards at bus stops. Many residents have asked for digital signboards to be put up at certain bus stops. I was wondering what the criteria for the selection of these bus stops are.

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The digital signboards are usually put up only at a major bus stop where there are many buses calling at it and it is heavily used by commuters.

Mdm Speaker, I refer the Minister to an earlier report at the end of last year about the digital panels not displaying MRT information but just bus services information. The answer was that the commuters enter the MRT stations and get the information there. I think that would not be very useful, because we are talking about an integrated public transport system. It would be useful for commuters at the bus stops to know what is happening at the MRT stations. If there is going to be a disruption, they can make plans on the spot rather than go into the MRT stations and find out then that their service is disrupted. I hope the Ministry can consider this.

Mdm Speaker, I thank the Member for the supplementary question. LTA is indeed currently studying ways to enhance the provision of real time public transport service information including through an integrated platform for both bus and train service updates. On service delays for trains, there is already a requirement under the Code of Practice that LTA has out up for the operators to make the information available to the public in a timely manner. Going forward, it is really looking at how we can integrate the provision of bus and train information.

25 Mr Gan Thiam Poh asked the Minister for Trade and Industry whether bilateral trade between Singapore and Russia will be affected by the annexation of Crimea by Russia and, if so, how much will the impact be.

Madam, in 2013, bilateral trade between Singapore and Russia accounted for 0.7% of Singapore's total trade with the world. It is still too early to tell if recent developments in the Crimean peninsula will affect trade between Russia and Singapore.

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26 Mr Yee Jenn Jong asked the Minister for Trade and Industry (a) what is the status of negotiations on the ASEAN Economic Community goal to free up the movement of professionals; and (b) what safeguards will be put in place to protect Singapore PMETs and to ensure national control over our immigration policies.

(for the Minister for Trade and Industry): Mdm Speaker, under the ASEAN Agreement on the Movement of Natural Persons, Singapore has committed to allow the entry of intra-corporate transferees at the level of managers, executives and specialists. This means that only such employees of firms that provide services within Singapore through a branch, subsidiary, or affiliate established in Singapore and who have worked in their firms outside Singapore for at least one year can qualify. Entry for these intra-corporate transferees is limited to a two-year period that may be extended for up to three additional years each time for a total term not exceeding eight years. These intra-corporate transferees will still be subject to Singapore's prevailing Employment Pass regime which requires applicants to earn at least $3,300 and possess acceptable qualifications such as good degrees, professional qualifications or specialist skills.

Singapore has low unemployment. Therefore, allowing selected skilled labour from ASEAN to work temporarily here enables us to fill our skill gaps without compromising the job opportunities of our PMEs. Measures are in place to foster a level playing field for PMEs in the workplace. For example, the Fair Consideration Framework (FCF) introduced by MOM will take effect in August 2014. This framework seeks to send a signal to employers on the importance of considering Singaporeans fairly for job opportunities.

At the same time, the ASEAN agreement also facilitates Singaporean PMEs to work in ASEAN countries and gain regional experience. This enables Singapore to tap the growing opportunities around us. Regional experience is also a critical factor for Singaporean PMEs who strive to advance within multi-national corporations.

The Government will continue to help all Singaporeans including PMEs be job ready through our education system, and Continuing Education and

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Training and employment facilitation programmes.

Thank you, Madam. I thank the Second Minister for the answer – one supplementary question. Last year, the Indian government officials have publicly stated that Singapore's curb on foreign manpower had possibly violated our bilateral CECA Trade Pact. I am concerned whether there will be any agreements in our current negotiations with ASEAN that will be too loosely worded that may lead to misunderstanding in future. So, I would like the Minister's assurance that all these will be factored in and that the definitions will be very clear.

Madam, I assure the Member that our officials are very careful in their wording of these agreements and we are quite clear what our obligations are.

27 Ms Tin Pei Ling asked the Minister for Education (a) how have the costs of talent, services and supplies for tertiary institutions increased over the past five years; (b) whether the rate of tuition fee increase is expected to remain over the next five years; (c) how will the fee hike defray the increase in costs and enhance our competitiveness; (d) what is the out-of-pocket expense and net cost for students once the fee hike and enhanced bursaries are factored in; and (e) how will students from the 25th, median, 75th and 90th percentile income households be affected.

Mdm Speaker, MOE seeks to keep tertiary education affordable and accessible to our students, by providing significant subsidies for all students and by providing a range of financial assistance. The Government provides substantial subsidies for tertiary education, at about 75% and 85% of the total education cost at the Universities and Polytechnics respectively.

Over the past five years, from 2009 to 2013, costs at the publicly-funded tertiary institutions have increased on average by about 4% per year. In contrast, fee adjustments for these institutions have been modest over the same period. Under the cohort-based fee system, undergraduates pay the same fees throughout the duration of the course. The average annual fee increases were lower, at 1% to 1.6% per year for each student cohort for the bulk of the courses.

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Polytechnic fees, which are lower, rose by $50 or about 2% on average over the past five years.

We review and adjust the tuition fees on an annual basis, taking into account the cost of delivering quality tertiary education, while mindful of the prevailing economic situation. Where economic conditions have been difficult, the tertiary institutions have deferred fee increases, such as in Academic Year (AY) 2009 due to the economic downturn. The fee increases help institutions to partially defray rising costs. The revised fees compare favourably with overseas tertiary institutions.

From AY2014, the Polytechnics will adopt the cohort-based fee system. This means that the student will pay the same fees for the entire duration of the course. This is a significant change, as the fee structure provides tertiary students with greater certainty regarding tuition fees and helps them to better plan the financing of their studies.

MOE periodically reviews the Government financial assistance schemes to ensure that these are adequate for Singaporean students in need. MOE is significantly enhancing the Government bursaries from AY2014 for students studying at tertiary institutions. With the enhancements, the household per capita income cut-off to qualify for the Government bursaries has been raised from $1,700 to $1,900 per month. This means that more students will qualify for the bursaries. The bursary quanta have also been increased by between $200 and $700. With these changes, undergraduates can receive up to $3,600 per annum and Polytechnic students can receive up to $2,000 per annum, depending on their household income.

Besides Government bursaries, there are also other financial assistance schemes offered by the tertiary institutions, foundations, private and professional organisations, community groups and self-help groups. Students can, therefore, tap on a range of financial assistance schemes.

With the Government subsidies and the range of financial assistance schemes, a Singaporean student from the bottom two-thirds of households by income, for instance, need not worry about direct cash outlay, as up to 100% of the tuition fees and a portion of living expenses can be covered through a combination of financial assistance and Government loans. Students from the 75th and 90th percentile can similarly tap on such loans to finance the bulk of their education cost, which are interest-free during the course of study.

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Thank you, Mdm Speaker. I would like to ask the Minister whether the Universities can do more to cap the cost increases in delivering quality tertiary education.

I would like to assure the Member that the Universities are mindful of keeping their operations efficient. And in fact, management of cost is always an important issue which the councils of the Universities have been looking at and will continue to do so.

28 Mr Lim Biow Chuan asked the Minister for Education with regard to the release of results of students who took problem-solving tests under the Programme for International Student Assessment (PISA) (a) whether the ranking of students will add stress on the students to maintain their performance in such tests; and (b) whether schools have been reminded on their role to educate the students and not to pursue good ranking in such international tests.

Mdm Speaker, the purpose of our participation in PISA is not to get a good global ranking. Our objective is to find out how well our students are being equipped with important life skills that are important for their future.

In the PISA study, a sample of 5,400 15-year-olds was randomly selected by OECD for the pen-and-paper tasks on reading, math and science. Half of these students then went on to do a combination of the computer-based math, reading or problem solving tasks. There was no preparation required of schools and students.

PISA scores are meant to be reported at the national aggregate level, and not at the individual student or school level. The sampling technique used by OECD is such that scores at the individual and school level are not statistically meaningful. The test scores of individual students are not disclosed to the participants or to schools. Students do not have to make additional preparations for these tests. So, our participation in this study is unlikely to create stress to students.

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We have also been working closely with schools, parents and the community to drive home the message that we should work together to bring out the best in every child. Among others, this means equipping them with the moral compass and the navigation skills to apply their knowledge and exercise their creativity in various contexts and situations – including those which are unfamiliar and complex. The various PISA scores give us an additional source of input and an international benchmark. The more detailed PISA findings in terms of the proportions of our students achieving at various proficiency levels also enable us to review the effectiveness of our teaching and learning strategies in levelling up the competencies of all students.

Our students' good performance attests to their deep conceptual understanding and good thinking skills honed through the rich learning experiences provided by our schools and teachers – both in the classroom and outside of the classroom, for instance, in activities such as co-curricular activities, learning journeys, and Values-in-Action projects of various forms. Teachers have also made learning relevant and engaging, and ensured that students learn to use their knowledge and skills in real-life situations. It also reflects the emphasis that our parents place on education.

We will continue to work in partnership with parents to equip our students for the future.

I thank the Minister for the answer. I just want to be sure that when the Minister said "randomly selected", it does not mean that the school nominates them? How are they actually selected when the Minister said "randomly selected"? Was it by computer?

I would like to assure Mr Lim Biow Chuan that MOE does not select the students. The student sample is selected by the OECD and the OECD has statistical agencies that advise them on how to ensure that the students they pick for the test are representative of the cohort of students in the entire school system. And it is just not in Singapore but all over the world. That is why the results are meaningful and comparable across different countries. I would like to assure Mr Lim that we have no hand in picking the students.

29 Assoc Prof Fatimah Lateef asked the Minister for National Development if the replacement of the older generation pipe-socket system for

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drying clothes with the new aluminium drying system in HDB flats can be added on to the list of improvements under the Enhancement for Active Seniors (EASE) scheme for seniors and elderly.

Madam, the Enhancement for Active Seniors (EASE) programme aims to improve the safety and comfort of seniors living in HDB flats. Currently, the EASE programme offers seniors three types of improvements to their flats, namely, grab bars, ramps and slip-resistant treatment of existing floor tiles of one bathroom/toilet. The installation work is relatively light and is typically completed within hours.

The replacement of clothes drying racks, on the other hand, requires elaborate engineering work and support structures, such as the use of gondolas, to carry out work on the external facade of the flat. The nature of the work renders it to be most safely carried out during large-scale upgrading programmes, such as the Home Improvement Programme (HIP) or the cyclical maintenance works.

We will therefore continue to offer the replacement of clothes drying racks under the HIP.

I thank the Senior Minister of State for the response. Can I just find out what other options can be offered to our seniors living in our high-rise buildings whilst they wait for the HIP to come their way? The second supplementary question is, can he also consider lowering the age threshold for the EASE programme knowing that our population is ageing rapidly and a lot more of our seniors are getting disabled at an earlier age?

I thank the Member for her suggestion. In the EASE programme, we are indeed reviewing the criteria for qualifying households. Lowering the age to benefit more seniors is definitely a possibility. On the replacement of the clothes drying rack, I think besides HIP, we can have a look at some of cyclical maintenance programmes that particular estate is carrying out. If the Member has special needs for her constituency, we welcome her suggestions and we can take these offline.

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30 Ms Faizah Jamal asked the Deputy Prime Minister and Minister for Finance (a) what measures are in place to strengthen and reinforce the commitment to the Public Sector Taking The Lead in Environmental Sustainability (PSTLES) initiative, in particular in educating Government officers involved in procurements; (b) what steps are in place to measure and record the commitment and observance by all Government agencies of the PSTLES initiative so far; and (c) whether the Ministry will consider implementing PSTLES through a more systematic and compulsory green procurement policy as a way of keeping to Singapore's commitment to sustainability and in dealing with climate change.

(for the Deputy Prime Minister and Minister for Finance): Mdm Speaker, in support of efforts to enhance environmental sustainability, the Public Sector has since 2006, put in place several environmental sustainability measures to promote recycling and efficient use of energy and water resources, including green procurement. When evaluating tenders, agencies consider factors like energy efficiency or other green measures and cost-effectiveness over the entire period of use. For instance, all new office information and communication technology equipment are required to meet the latest international standards, that is, the ENERGY STAR standards.

We are also taking steps to green our public sector buildings. New and existing large public sector buildings are required to achieve the Green Mark standards, which is the benchmark for environmentally sustainable buildings in Singapore. To date, 52 public sector buildings have received the Green Mark Platinum and GoldPLUS ratings, which are the highest ratings for green buildings in Singapore. For example, buildings, such as the National Library Building, Environment Building and Health Promotion Board Building, have all achieved Green Mark Platinum status.

To strengthen public sector's commitment to sustainability, we regularly review our standards. For example, now chiller plants in buildings have to achieve a higher energy efficiency level than previously and this has translated to roughly 15% reduction in the building's energy consumption.

MEWR, NEA and the Building and Construction Authority (BCA) track Government agencies' progress under the PSTLES initiative and also provide the necessary assistance to help agencies achieve the environmental

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sustainability standards.

We will continue to refine our PSTLES framework to ensure that the public sector upholds our strong commitment to environmental sustainability.

Mdm Speaker, one supplementary question, please. Beyond green buildings and the points that have been mentioned, I would like to ask one question. There have been reports that paper that is commonly used in offices for photocopying and so on sometimes comes or is procured from or manufactured by companies that do not practise sustainable oil palm production. And in view of the fact that we are very concerned about transboundary haze, pollution and things like that, can there be at least greater vigilance and commitment towards this particular area of green procurement?

Thank you, Mdm Speaker. If the source of this supply could be made known to us, I think we could take a closer look at it.

31 Mr Gerald Giam Yean Song asked the Deputy Prime Minister and Minister for Finance (a) on average, what percentage of GST paid by the lowest 20% of households (by income) is offset by all forms of GST Vouchers last year; and (b) whether the Government will consider fully offsetting the GST paid by all households in the lowest quintile even in years when there are no one-off Special Payments made.

Mdm Speaker, in 2013, for the lowest 20% of households by income, on average, about half of their GST paid would have been offset by the regular GST Voucher. If we include the one-off GST Voucher Special Payment announced in Budget 2013, the benefits from the GST Voucher would have covered over 90% of their GST paid.

However, the GST Voucher scheme is not the only offset for the GST paid by lower-income households. The GST Voucher is part of a progressive system of taxes and benefits, that ensures that lower-income households get back far more benefits than the taxes they pay, including GST. These include childcare

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subsidies and financial assistance from school to tertiary education, Workfare, special and additional housing grants and healthcare subsidies. The GST that they pay is hence far more than offset by the benefits they receive.

Madam, I thank the Senior Minister of State for the reply. I would like to clarify: what is the Government's philosophy behind the GST Voucher Scheme? Is it meant to offset the taxes that are paid by the lower income through GST? Or is it meant to just partially offset it?

I understand the Senior Minister of State's point that there are other vouchers and other subsidy schemes that would help to offset the cost of living, but specifically for the GST, does the Government see it necessary to fully offset the GST paid by the lower income, in recognition of the fact that it is a regressive tax? Because that was the understanding and the impression that I had when the GST Voucher Scheme was launched.

Mdm Speaker, I thank the Member for his question. The GST Voucher Scheme is a permanent scheme. When the scheme was introduced, the idea was to ensure that even for lower-income households where they paid GST, there would be some form of permanent support for these households. But it does exist as part of a broader set of benefits that are provided to different households. And it is within this context that the GST Voucher Scheme is designed. So, we look at the benefits that are provided to households holistically and provide the support where it is most meaningful to them.

If I could also share and remind Members of the House, in every Budget, the support measures that are provided to lower-income households have been strengthened in many different regards. It could be in education; it could be in childcare; it could be in healthcare; it could also be in housing. So, we have to look at all of these in totality.

The following question stood in the name of Ms Mary Liew –

32 To ask the Acting Minister for Manpower since the introduction of the compulsory weekly rest day for foreign domestic workers (FDWs) (a) how many FDWs have chosen to take the weekly rest day; (b) how many have chosen to

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forgo their rest day in lieu of additional payment; and (c) how many complaints has the Ministry received about employers not granting rest days.

Question No 32, Madam.

Madam, MOM has been monitoring the implementation of the weekly rest day requirement since it took effect for foreign domestic workers (FDWs) with Work Permits issued or renewed on or after 1 January 2013.

Specifically, MOM interviewed more than 2,000 FDWs who arrived to work in Singapore for the first time in 2013. It is encouraging to see that 37% of the FDWs interviewed received a weekly rest day. In comparison, a 2010 survey of more than 900 foreign domestic workers showed that only 13% of FDWs received a weekly rest day. We also found that about 61% of those interviewed received at least a monthly rest day, compared to 53% in the 2010 survey. FDWs who forgo their weekly rest days have to be compensated with additional payment, as required under the law.

In the lead up to implementation on 1 January 2013, MOM carried out extensive public education campaigns for existing employers and FDWs and employment agencies. This included an information kit and rest day implementation guide, mailed to all FDW employer households. Employment agencies were briefed and given a recommended template for facilitating the written rest day agreement between FDWs and employers before commencement of employment, to allow expectations to be clearly communicated upfront. All first-time employers and FDWs were informed of the weekly rest day provision through the mandatory Employer Orientation Programme and the FDW Settling-In Programme.

We understand that FDWs and employers usually attempt to resolve any disputes and secure mutual agreement on the rest day arrangement between themselves, or through their employment agencies. Parties should openly discuss their concerns. Nonetheless, FDWs who do not receive rest days in accordance with the written agreement with their employers, or compensation in-lieu for working on a rest day, can seek assistance from MOM.

By 1 January 2015, the rest day requirement would have been in place for two years. This means that all FDWs will be on new employment contracts that

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will have to abide by the requirement. MOM hopes to see the rest day arrangement work well for employers, their families and the FDWs. A rest day provides FDWs a reprieve from their duties, much like how all of us Singaporeans need a break from our work. Ultimately, this will contribute to more well-adjusted FDWs who can better perform their jobs, benefiting our Singaporean families.

The Ministry will continue our efforts to educate and help stakeholders manage the rest day requirement, as well as work with partners to provide avenues for FDWs to spend their rest days productively.

I thank the Senior Parliamentary Secretary for the answer. In relation to the replacement contracts, the start-up kit and the settling-in programme, does MOM understand that in some situations, the maids are in unequal bargaining positions and whether these programmes and start-up kits or literature create a buffer needed to put the maids perhaps on a more equal footing in terms of rest days? But I am certainly encouraged by the statistics shared in terms of percentages.

I would say that there are two buffers. One is the employment agency. The employment agency would be actively involved in the agreement between the two parties, the employer as well as the FDW, on which day the FDW will get the weekly rest. If there is a dispute, the employer and/or the FDW can seek assistance from the employment agency that had overseen the written agreement between the two parties. If there is still a dispute, either party or both can seek assistance from MOM.

If there is a change in the agreement on the weekly rest day, the employer as well as the domestic worker are advised to write it down. So, I would say there are two buffers for both employers as well as the domestic workers, the employment agency can help them, and, finally, of course, the MOM.

Mdm Speaker, I would like to ask the Senior Parliamentary Secretary whether an employment agency can be a neutral party, given the fact that the FDW's employer is probably a client of the employment agency. In this regard, I would like to ask the Senior Parliamentary Secretary whether it is possible for the Ministry to be the so-called adjudicator. I agree with Mr de Souza that between the FDWs and their employers, there is an unequal, asymmetric power relationship there.

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While I am encouraged by the improvement in the figures, would the Senior Parliamentary Secretary agree that at 37% for what is supposed to be a mandatory rest day, that the figure is actually quite low? Are there plans to make the compulsory rest day to be truly a compulsory rest day?

Madam, let me take the second question first – whether MOM can make the compulsory rest day truly compulsory. It is actually compulsory. Employers are supposed to provide one rest day a week to their domestic worker, if the Work Permit was issued on or after the 1 January 2013. Those who were under the old agreement can continue with whatever arrangement they had agreed to before but come 1 January 2015, all maids will come under the new agreement that will require employers to provide one day off a week. So, it is compulsory.

If for some reason, the employer needs the maid to work on her rest day, or the maid says that she wants to work on her rest day, they will have to come to an agreement on how that will work out.

So, is there truly an imbalanced relationship between the two? Maybe. But then, there are avenues for them to resolve their differences. The employment agency, because they are a party or the facilitator to the mutual agreement, can continue to be the facilitator. MOM cannot be there all the time in every household we have about 210,000 maids. We would have to work with the agencies to facilitate whatever differences that may happen or may arise between the two parties, but we will still be there if the maid comes to MOM for assistance.

I would like to assure the Member that a compulsory rest day is truly compulsory. If for some reason the employer needs the maid to work on the agreed rest day, then they must work out an agreement and the maid must receive either compensation payment or an alternative rest day.

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33 Mr Png Eng Huat asked the Minister for National Development what is the roadmap to bring the Lift Upgrading Programme (LUP) to the 200 blocks of HDB flats that are currently without full lift access now that the main LUP is coming to an end in December.

Mdm Speaker, the Lift Upgrading Programme (LUP) is a $5 billion programme to equip HDB blocks without direct lift access with lift access on every floor. Within this budget, the implementation of LUP has to be subject to reasonable cost caps.

LUP has over time covered 98% of flats in blocks built without direct lift access in Singapore, benefiting some 500,000 households from 5,000 blocks. The remaining 2%, however, are difficult for LUP because of the block configuration and other technical constraints, resulting in very high costs per unit. Nevertheless, HDB tried its best and found some solutions for these flats. It successfully reduced the initial 1,000 such blocks to about 200 blocks through the adoption of new technologies and innovative solutions.

HDB will continue to look for new technology solutions to overcome the current technical and cost constraints. We are piloting some possible solutions that look promising. However, we require some time to assess their suitability and user response. Meanwhile, residents who require direct lift access because of their medical conditions can approach HDB for special assistance.

I just want to ask whether the Ministry will consider engaging those blocks by providing the cost, such as the cost of original LUP, to that block and let the residents decide. If it is marginally more, the residents may be able to want to vote on it and be willing to pay.

The second question is, under the original LUP, there is economy of scale. Going back to only these 200 blocks, if you were to implement just for these 200 blocks, would it not be more expensive than if the implementation for these 200 blocks not be put under the original LUP programme?

Well, Madam, 200 blocks still is a sizeable number as far as realising the economies of scale is concerned. But I think the issue is not really economies of scale. The issue is out of this very difficult configuration and sometimes the benefiting units are in between units that have lift access,

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how do you demolish existing balconies and punch through lift access shafts and so on? So, these are the kinds of challenges.

The cost is not just marginal. Some of the costs are as good as building new flats itself. It is a very difficult cost-benefit situation. Based on some of the solutions that we are experimenting with, such as what we call the pneumatic vacuum elevator and the vertical platform lifts, some of these are being tried out. They still have not been installed but we will install them. Some of these really require user feedback to see how robust they are in serving traffic when it is installed in HDB flats rather than in special venues.

The overall approach we take is one that, within our means, we will adopt innovative solutions that can mitigate or help solve some of these problems. In fact, some of them will not turn out very ideal because the blocks per se, if you build certain lift shafts, it becomes very convenient for residents at large but it may affect certain units facing the lift shafts in particular. So, there is no perfect solution. But the short answer is we will continue to try.

Thank you, Madam. I thank the Senior Minister of State. I would like to ask if the Senior Minister of State would consider several measures. One, to consider increasing the cost cap for the LUP programme. In view of the fact that many of the designs were designs of old which were not really the fault of the residents, not their doing. If we could increase the cost cap, then we could avoid the situation where we ask the elderly or the more disabled to leave or to move away.

The next thing that I would like to ask the Ministry to consider is before the final solution is implemented and developed, could there be some temporary measures to help some of the elderly residents to, for example, move from floor to floor, or to the floor where the lifts are available? I have seen in some homes wheelchairs that can slide down the railings. I wonder if the Ministry or HDB could consider some of these measures.

And knowing this is not an easy problem to resolve, I wonder if there could be a programme by which we could engage a bigger group of Singaporeans to propose certain solutions, either through the tertiary organisations or the general public, whether temporary or permanent, to help resolve this, to me, a very important issue.

Madam, I thank the Member Denise Phua for her very good suggestions. I can understand the needs out there. In short, yes, we

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welcome these suggestions. We have a particular exercise running for two years now called "Cool Ideas for Better HDB Living". We have asked HDB residents and some of the University and Polytechnic students to come forward with ideas that can help improve HDB living. And in this particular case, certainly we can look into asking them for ideas that can help immobile or physically challenged residents without lift access to see how they can access the lifts better.

On the cost cap, I think we should also realise that it is not just adjusting the cost caps incrementally. Some of these costs are two to three times the cost caps. So, it is a huge cost. It is not something that within reason we can easily say, "Let's do it".

Also, it is not so much design. We cannot blame it totally on design. I remember distinctly when I was growing up and living in HDB flats for 20 years, there was a period of time people generally disliked choosing units next to the lifts because they value privacy more than anything else so they would choose units that were further away. So, the needs and lifestyles have changed. We have come to such a point that lift access becomes of great importance and becomes appreciated. We have to continue to adjust and see how our flat configurations can suit the new needs. In this case, it is retrofitting. I am sure our new flat design has all taken into consideration accessibility and universal design to aid mobility. So, in short, yes, we will consider all these suggestions.

Mdm Speaker, I would like to ask the Senior Minister of State for the remaining 200 units, for those who really need the lift, the Ministry is willing to help them to relocate, am I right? Okay. Currently, the cap, the construction cost is $30,000. Will the Ministry consider giving them the $30,000 for them to relocate?

Well, we look at every case on a case-by-case basis. Sometimes, it is not the financials that they need. Sometimes, it is really the other form of assistance, maybe HDB loan and so on. Let us look at the specific case and see who else requires such assistance. Like the Member Ms Denise Phua said earlier, some people prefer to stay in the same place rather than moving away. There is a trade-off between going to a new place with lift access and staying at the same old place.

As I see it, there are two limiting factors. The first is the deadline for the LUP project, a nationwide LUP project. The second is the cost cap. My question is, after the deadline,

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should there be advancements in engineering, advancements in the manner in which we can install lifts, thereby reducing the amount payable per unit to something in the region of the cost cap or, perhaps even below that, would the Government be still willing to consider putting lifts in? And I use as an example, Sunset Way, where it was previously above the cost cap and then we looked at it and we looked at it again. And then a solution was found. So, would there be open-mindedness on the Ministry's part for that?

Yes, Mdm Speaker, we are open to look at solutions beyond this timeline. This timeline is to end this year but if we continue to find solutions that make sense we will definitely consider them.

Madam, just one quick question for the Senior Minister of State. The new technology that the Senior Minister of State mentioned earlier, does it cater to low-rise or just high-rise flats? Because I know that certain technology can only cater for low-rise flats.

Mdm Speaker, the Member is correct. In our non-eligible units, there are some that are high-rise but many of them are low-rise. Low-rise flats are usually fourth floor so there are very few benefiting units and some of them are segmented. We will find solutions that will suit low-rise and high-rise flats. We will continue to look for solutions, whether it is from the professional circle or from residents themselves.

34 Er Dr Lee Bee Wah asked the Minister for Trade and Industry (a) whether the Ministry is able to take steps to moderate rentals for SMEs to help them cope with rising operating costs; (b) whether the Ministry can work with REITs entities to help SMEs manage rent in the long run; and (c) whether tax rebates can be granted to SMEs to help them cope with rising rental costs.

(for the Minister for Trade and Industry): The Government's objective has always been to maintain a stable and sustainable property market where rentals remain competitive and affordable for businesses. We do so by ensuring that there is an adequate supply of space for long-term needs.

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Industrial rentals have been relatively stagnant from 2000 to 2006. Rentals saw an uptick in 2007, but declined during the Financial Crisis. In the second half of 2009, rentals started rising from a low base as our economy recovered. Rentals have since stabilised from last year. In general, rentals constitute between 3% and 7% of business costs for SMEs in the manufacturing sector but, of course, it depends on the different industry, different sectors where rental can be of a larger component. Over the next three years, an average of 500,000 sqm of multiple-user factory space will come on-stream annually. This is double the average annual space demand for such space in the last three years and is also expected to moderate industrial rentals further.

For retail space, URA's shop rental index rose by 2.9% and 2.6% in 2010 and 2011 respectively, before declining by 0.3% and 0.9% in 2012 and 2013. As retail leases are generally renewed every two or three years, tenants may experience increases at the point of lease renewal. Based on data from January 2012 to May 2013, the median increase in rentals upon renewal was in line with inflation. About one in 10 tenants experienced cumulative increases in rental of more than 50%, and these tended to be tenants renewing their leases after more than four years, or who had units in more attractive locations. Also, for about one quarter of tenants, rentals either remained unchanged or actually declined.

We expect retail rentals to moderate further. Over the next three years, about 145,000 sqm of new shop space will be completed each year. This is more than double the average annual demand for such space in the last three years.

The Government has, in the past, provided also tax rebates to help reduce business costs during severe economic downturns. Such rebates were provided from July 2001 to December 2002, and more recently, in 2009. In view of the current economic conditions which are relatively sound and rentals are also expected to moderate, such rebates and subsidies may not be necessary at the moment. I will continue to monitor the situation and determine if there is a need in future.

REITs are not leading players in the rental space market, as they currently own about 13% and 16% of retail and industrial rental spaces respectively. REITs typically select properties in locations that are more attractive, and invest in asset enhancement as well as undertake marketing efforts to increase foot traffic. These factors help explain why REITs are able to charge higher rentals. So, like any other landlords, they have to compete in the rental market to attract tenants.

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As rentals are driven by demand as well as supply, SMEs which operate in locations that are becoming more attractive will experience higher rentals. The Government is looking into publishing more comprehensive rental data for retail and industrial space to make the information more transparent so there is a sense of comparison and so as to provide the information on the overall rental market and also help businesses make some informed decisions and to make sure there is a fair practice so that they can consider their different options.

Mdm Speaker, I would like to ask the Minister of State: for the 5,000 sqm that come into the market annually, is this space developed by private developers or by Government agencies? I just had my dialogue session with SME owners who are my residents two days ago. Many expressed their concerns on rising rentals. I would like to ask the Minister of State if it would be possible to bring back the previous JTC kind of factories that were leased directly to the SMEs. The other thing is, will HDB be building more shops and more office space to lease directly to the SMEs?

Madam, it is not 5,000 sqm. It is 500,000 sqm – that is double the annual demand. That is both JTC development as well as private development, which means that it would be through the Government Land Sale (GLS) Programme. What JTC is trying to do now is to play a more developmental role which is really to help SMEs and start-ups. Recently, we launched a larger area for new businesses and start-ups. We are also clustering spaces by industry, for example, goods manufacturing. Industries that seem to lag behind in the productivity movement, we help them to intensify space usage, or we can call it land intensification. We will cluster and build purpose-built factories for these companies to use and keep a balance. The supply of space will increase tremendously. That should moderate the general industrial space demand.

For HDB, I guess I have to leave it to MND to answer that question. Through the SME Workgroup, we have MND and HDB representatives in there. We are all coordinating to make sure that we are monitoring all rentals throughout the different space, to make sure our SMEs do not face tremendous increases in terms of rentals. For reasons of making sure that there is fair practice and also making sure that the inflationary measures that may impact the rental cost, are reduced.

We are looking at all these different measures to see what we can do. Within this year, we will come up with more transparent data and more information in terms of a rental index to make sure that both tenants and landlords have a sense of where their rates are and how they can have a sense

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of comparison to make sure that rentals are fair throughout the location.

May I ask what proportion will be by land sales and what proportion will be developed by JTC directly?

I do not have the information at the moment. We will now have to plan to see how much out of the 500,000 sqm is for GLS and how much for development by JTC. I do not have that information; I could provide that later.

I would just like to ask the Minister of State what is the source of his information that the rental rate increases are generally aligned with the inflation rate? There seems to be some perception issues that are on the ground. I think it is quite important to address that. No matter what the Government says, that perception seems to be persisting. There are quite a number of data points that suggest that when retailers negotiate for a tenancy that is about to expire, they tend to get demands for increases as high as 100%. That kind of information goes around in the market. If that is the perception, I think that perception has to be addressed.

My second question would be when this data would be published. Do we have to wait until everything is available? If not, can it be done as soon as possible so that, again, that perception is addressed?

The data and the information that I have got is an aggregate, which means it is averaged out. There are different experiences and practices between landlord and tenants because of the contractual arrangements. At different locations, they will experience different commercial practices. The landlord may have a different mix of shops and tenants that they want, and so there are different types of contractual arrangements. That determines some of the rates that may apply to the tenants.

We are unable to go into such specific breakdowns such as by buildings. But on the whole, the intent is that as far as we can, we are looking for the sources that make sense. Perhaps by geographical points, within an area, and we can say how high or how low the rental index is in that area by comparison. We are still determining the sources and we are collecting the data and information with the help of associations and Government agencies. It is not just data from the Government agencies, but also from associations, practitioners and stakeholders of the market. We intend to do this and complete

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it within this year. We hope to do it as soon as possible, but we have to make sure that the data is accurate, comprehensive and complete.

35 Mr Ang Wei Neng asked the Minister for Communications and Information as of 31 March 2014 (a) what is the number of residents who have registered with the Do Not Call Registry; and (b) what is number of complaints received pertaining to offences related to the Do Not Call Registry.

(for the Minister for Communications and Information): Mdm Speaker, by the end of March 2014, about 595,000 Singapore telephone numbers have been registered with the Do Not Call Registry. Over 3,200 organisations have also set up accounts with the Registry, with more than 113 million telephone numbers submitted for checking.

Since the Do Not Call rules came into effect on 2 January this year, the Personal Data Protection Commission has received some 3,000 valid complaints. The Commission has been following up on these and enforcement action continues to be taken, with over 200 written notices issued by the Commission to warn organisations of non-compliance. For more serious breaches, offers of composition have been made and accepted by two organisations. The Commission also continues to investigate one organisation with the most serious breaches, with a view to prosecution. Further details of the case will be provided by the Commission once investigations are complete. For complaints relating to illegal activities such as unlicensed money lending matters, the Commission has referred these cases to the Police for their attention.

We would like to thank members of the public who have come forward to provide information on organisations that may not be complying with the Do Not Call rules. It is hoped that the public can continue to assist the Commission in its investigations and respond positively if approached.

Madam, I thank the Senior Minister of State for his reply. I note that more than 590,000 people have registered with the DNC registry. Is this number within the expectation of the Ministry?

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The second question is, I understand from the Senior Minister of State's reply that the Personal Data Protection Commission refers the moneylending SMSes to the Police instead of investigating them under the Data Protection Act. Does the PDPC follow up with Police on the number of such complaints and how they are being followed up by the Police?

The third supplementary question is, the Minister of State has said that for one case, MCI may bring the case for prosecution in the Courts. For the other cases, will they be brought to the Courts or will they mostly be settled with a compound fine?

Madam, on the first question on registration, whether they are up to expectations, I would say that we have had a good response so far. It is difficult to say what the expectations were from the outset, but generally, we have had good response and feedback from the implementation. We will continue to publicise the scheme to make sure that there is widespread awareness from the public.

On the second point on unlicensed moneylending cases, unlicensed moneylending is a serious criminal offence. And so, the PDPC would want to work with the Police or to refer these cases to the Police to follow up on. We will continue to track them but we do want to make sure that the cases are dealt with in a serious fashion because of the gravity of these offences. The PDPC does not take unilateral action but they will work with the Police to make sure that there is follow-up on these cases.

On the third point about composite fines, and the fact that there was only one case with a view to prosecution and what would be the follow-up for the other cases, this will again depend on the seriousness of the offence. As I had mentioned, offers of composition had been made for two so far. And quite a number may also end up in this category. The very serious cases, the PDPC will certainly continue with prosecution. I am unable to give a breakdown today because investigations are still on-going for many of the cases.

The following question stood in the name of Mr Alex Yam Ziming –

36 To ask the Minister for Education (a) what is the total number of students on financial assistance in 2013; (b) whether the numbers have seen an increase over the last five years taking into consideration the changes to the qualifying

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family income ceiling; and (c) apart from financial assistance, what other assistance does the Ministry provide to such students.

Question No 36, Madam.

Mdm Speaker, MOE is committed to providing quality and affordable education to all Singaporeans regardless of their financial circumstances. Our education is highly subsidised at all levels and the Government provides a range of financial assistance schemes to assist those who may be in need.

The MOE Financial Assistance Scheme (FAS) for Singaporeans in primary and secondary schools and JCs/Centralised Institutes has been enhanced over the years. In 2013, around 65,000 Singaporean students were on financial assistance in our schools. This was about 1.5 times the number of beneficiaries five years before, largely owing to changes to the criteria which enabled more students to be eligible. Students on financial assistance do not pay school and standard miscellaneous fees. They also benefit from free textbooks and uniforms. Students in primary schools who qualify for financial assistance are also provided with free breakfast.

In addition, MOE provides every school with additional resources for school leaders to provide assistance to deserving students who may not meet the qualifying criteria.

Singaporean students enrolled in subsidised programmes in our post-secondary educational institutions, namely our publicly-funded universities, polytechnics, Arts Institutions and ITE, benefit from the CDC-CCC bursaries or the MOE bursaries. In Academic Year (AY) 2013, around 47,000 Singaporean students in these post-secondary institutions received the CDC-CCC bursaries and MOE bursaries. This was about 2.5 times the number of beneficiaries five years before, largely due to the changes in criteria in AY2011 that enable more students to qualify. From AY2014, these bursaries have been enhanced to significantly increase the bursary quanta and raise the income eligibility threshold to benefit more students. In addition, students in our publicly-funded polytechnics and universities can also take up the Tuition Fee Loan and Study Loan to cover their tuition fees and supplement their living expenses.

Beyond direct financial assistance to the students, MOE also provides the Opportunity Fund which our schools, ITE and polytechnics can use for the provision of enrichment activities and other co-curricular development

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opportunities for Singaporean students from less advantaged backgrounds. The Fund can also be used to subsidise the purchase of computers for needy students in our schools under the IDA's NEU PC Plus Programme. Under this programme, the students can own a new computer at an affordable price.

MOE also partners with the Self-Help Groups in reaching out to these families or students who need additional assistance beyond MOE. Our Self-Help Groups have in place student assistance and support schemes to help needy students. We are also heartened to know that external organisations and individuals have also been keen to provide additional support to needy students. The School Pocket Money Fund is an example where corporations and individuals have donated generously to complement the assistance provided by MOE.

Beyond financial assistance, schools run programmes to support students to learn better in school. These include the Learning Support Programmes to help them level up academically. After-school care is another important area of learning support. Schools will proactively identify students from low-income families who would benefit from such arrangement and encourage them to enrol in the school-based student care centres. To ensure affordability for students who are enrolled in student care centres and require financial assistance, they can apply for the ComCare Student Care Fee Assistance – a scheme administered by MSF.

I would like to take this opportunity to assure the House that an education in our schools and post-secondary institutions will remain accessible to all Singaporeans. No Singaporean student will be left behind as a result of his or her family's financial circumstances.

Order. End of Question Time. I propose to take the break now. I suspend the Sitting and will take the Chair at 4.20 pm.

[Pursuant to Standing Order No 22(3), Written Answers to Question Nos 37, 39-42, 44-46, 48-51 and 54-59 on the Order Paper are reproduced in the Appendix. Question Nos 38, 43, 47 and 52-53 have been postponed to the next available sitting of Parliament.]

Sitting accordingly suspended

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at 4.00 pm until 4.20 pm.

Sitting resumed at 4.20 pm

[Mdm Speaker in the Chair]

[(proc text) Order for Second Reading read. (proc text)]

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

Singapore has garnered a strong reputation as a trusted international financial and business centre with a robust regulatory framework against money laundering and terrorist financing. Since 1992, Singapore has been a member of the Financial Action Task Force (FATF), the global standard setter for anti-money laundering and counter terrorism financing. As a responsible member of FATF, Singapore ensures that the framework applied here is constantly updated and aligned with established international standards.

With money laundering and terrorist financing activities becoming increasingly sophisticated, regulatory authorities and enforcement agencies need better tools to effectively address emerging risks. Although there are existing controls for sectors, such as banks and casinos, one area where they need to be strengthened is for corporate service providers, which are individuals or businesses that provide services, such as corporate advisory, office hosting, companies' set-up, corporate secretarial services and statutory filing of documents with the Accounting and Corporate Regulatory Authority (ACRA).

Corporate service providers do not typically handle services that involve large amounts of cash. However, there is a risk that the companies they help to incorporate may be abused by criminals to set up complex or unusual business structures to conceal beneficial ownership, and reduce the transparency of transactions.

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Hence, there is a need to enhance the regulatory framework for corporate service providers. Besides mitigating the risks of money laundering and terrorism financing, regulatory enhancement will also raise the professional standing of corporate service providers.

This Bill and the new supporting subsidiary legislation will put into law the obligations of the Singapore Government as a member of FATF.

I will now elaborate on the key amendments in the Bill.

First, corporate service providers who perform statutory filings for their customers using ACRA's electronic filing system known as Bizfile will need to be registered as filing agents. The professionals whom the filing agents employ or appoint will need to be registered as qualified individuals. Both filing agents and qualified individuals must be fit and proper persons and satisfy competency and experience requirements.

Second, the amendments will impose new requirements on registered filing agents, through the subsidiary legislation. These requirements will be consistent with the relevant FATF recommendations, including the obligations to perform customer due diligence and transaction monitoring on customers, and to consider whether it is necessary to file suspicious transaction reports. For example, as part of customer due diligence, registered filing agents will be required to obtain beneficial ownership information of their customers. The availability of beneficial ownership information increases the transparency of transactions and makes it more difficult for money laundering and terrorism financing activities to be carried out.

Third, the amendments introduce enforcement powers for ACRA to sanction registered filing agents and registered qualified individuals who breach their legal obligations. These sanctions include issuance of a censure, suspension or cancellation of registration, or financial penalties. ACRA will take a calibrated approach in imposing sanctions, taking into account the seriousness and/or frequency of the breach.

As of March 2014, there are approximately 3,000 businesses and 3,600 individuals registered with ACRA as corporate service providers. These registered persons include advocates and solicitors, public accountants, members of the Institute of Singapore Chartered Accountants, the Association of International Accountants (Singapore Branch), the Institute of Company Accountants, Singapore, and the Singapore Association of the Institute of

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Chartered Secretaries and Administrators, as well as corporate secretarial agents.

ACRA intends to manage the transition carefully. Outreach programmes will be conducted and corporate service providers are encouraged to attend these programmes to familiarise themselves with the stricter regime. Thereafter, there would be a window period for the corporate service providers to decide if they wish to continue performing their business activities under the enhanced regulatory framework.

Existing providers who opt in during this window period will be transitioned to the new regime as registered filing agents and qualified individuals until end 2015, regardless of whether they meet the competency and experience requirements. ACRA will also waive the registration fee for them. After the transition period, they are required to renew their registration annually and meet these new requirements.

ACRA has also formed a working group, comprising professional bodies whose members are corporate service providers, to draft practical guidelines and templates to enable them to comply with their new legal obligations. This includes what corporate service providers should do when performing customer due diligence and what they should consider when setting up internal policies, procedures and controls.

Overall, the legislative amendments will raise the professional standards of corporate service providers in Singapore, and significantly reduce risks of money laundering and terrorism financing.

Madam, this Bill also proposes amendments to the ACRA Act to clarify and enhance ACRA's powers in several areas.

First, for better protection of ACRA's name and acronym against infringement, the amendments will make it an offence for anyone making unauthorised use of ACRA's name and acronym.

Second, the amendments will give additional powers to ACRA officers to facilitate enforcement, consistent with the Acts of newly set up regulatory authorities in Singapore. These include the powers to examine a person orally and to reduce such statements into writing, to enter premises for the purpose of investigating an offence, and to take photographs or video recordings.

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Third, the amendments will raise the maximum composition fine that ACRA may impose from $1,000 currently to half of the maximum fine or $5,000, whichever is lower. This will align the ACRA Act with other ACRA-administered legislation.

Finally, this Bill stipulates that monies which are collected by ACRA are to be paid into the Government Consolidated Fund. This change is to keep ACRA's funding separate from the monies it collects from penalties and composition sums. Mdm Speaker, I beg to move.

[(proc text) Question proposed. (proc text)]

Mdm Speaker, thank you for allowing me to speak on this topic that is pertinent to the accountancy profession as well as to corporate governance in Singapore.

It is also a Bill that I take great interest in professionally. As Members of the House may know, I am a member of the accountancy profession in Singapore and I also wish to declare my interest as Vice-President of the Institute of Singapore Chartered Accountants (ISCA), one of the bodies that have played an important role in the formulation of this Bill.

As the national accountancy body, ISCA has studied the Accounting and Corporate Regulatory Authority (ACRA) (Amendment) Bill and is supportive of ACRA's decision on the new regulation governing Company Service Providers, or CSPs in short.

Professionalism of Industry. We believe that the revised licensing and supervisory regime will help ensure all CSPs are regulated according to the same standards, thereby raising the professionalism of CSPs and the quality of services provided in the industry. Similarly, this will raise the standard and image of ISCA members who are service providers in this field.

The revised regime will also assist in addressing the anti-money laundering and anti-terrorist financing matters. This is vital in helping to maintain Singapore's reputation as an international financial centre.

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Whilst we are supportive of the revised regime, we have some feedback on the Bill and key policies, including those received from our members.

Qualified Individuals (QI) Applications. Firstly, point 2 (a) of the Key Policies in the ACRA (Service Providers) Regulations proposes the categories of people who may apply to be "Qualified Individuals" (QI). Whilst it is good to name the institutions to be included in the categories of the people who may apply to be the QI, we recommend that the background of these institutions be evaluated from time to time to ensure that only institutions which are recognised internationally be included.

Madam, sections 28F and 28G call for the introduction of the fit and proper consideration for applications to be filing agents and QI. This is to ascertain if the applicant's previous conduct in either of these two roles had been satisfactory and, in the case of applications for filing agent, an additional assessment of whether the conduct of their directors or management members was satisfactory.

While it is agreed that fit and proper consideration is appropriate, such consideration could be judgemental from both the business and regulatory points of view. Instead, we suggest that the following factors be taken into consideration: the competency of the applicant; the relevant and number of years of experience the applicant possesses; and appropriateness of experience and type of exposure the applicant has. In addition, specific requirements for each of these factors should also be set out in the regulations. This will allow for more objective and relevant assessment of the applicant.

ACRA has responded that the fit and proper requirements are that the applicant must not have been convicted of an offence involving fraud or dishonesty punishable with the imprisonment of three months or more and must not be an undischarged bankrupt. The competency and experience of an applicant will also be considered as the Regulations state that only advocates and solicitors, public accountants registered under the Accountants Act, members of the various professional bodies and those with relevant experience as corporate secretarial agents are eligible to register as qualified individuals.

Due diligence. Section 28F (9)(a) states that every registered filing agent should perform such customer due diligence measures to detect and prevent money laundering and financing of terrorism.

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This calls for the requirement to apply customer due diligence matters when establishing business relationships with the customer, when there is a suspicion of money laundering or terrorism financing or when the identification or documentation involved appears dubious.

Although registered filing agents already conduct due diligence procedures of their own with respect to clients, these may vary. So, it is important to provide specific guidance to registered filing agents to help them determine the extent of the customer due diligence to perform for different categories of customers, including foreign entities.

Due diligence procedures need to be enhanced when dealing with politically exposed persons. Besides providing specific guidance on this, we further suggest that assistance be extended to smaller firms, that is, who may not have sufficient resources to maintain or subscribe to a list of politically exposed persons on the identification of politically exposed person when dealing with foreign customers. It is also important that a central database be maintained which lists all foreign countries that have deficient anti-money laundering or anti-financing of terrorism measures, and any changes to this list be communicated to all registered filing agents.

The registered filing agents also need to establish and maintain appropriate internal policies, procedures and controls. We propose that examples of appropriate policies and procedures or templates be provided to help registered filing agents to implement.

We have submitted our feedback and comments to ACRA during the public consultation exercise in November 2013 and ACRA has responded to the feedback. Some of the comments raised by ISCA which were accepted by ACRA include the following:

We suggested that guidelines be issued to help the Corporate Service Providers implement and determine the extent of work, namely, the qualifying criteria and customer due diligence measures; and

We proposed that a list of foreign countries that have deficient anti-money laundering or anti-financing of terrorism measures be maintained centrally and any new addition or removal of the list be communicated to Corporate Service Providers.

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ACRA's response to these recommendations was that it will issue a set of guidelines to assist registered filing agents in their compliance with the terms and conditions on anti-money laundering and counter-terrorism financing measures. Where possible, links to the public lists of terrorists, politically exposed persons, or countries with deficient anti-money laundering or counter-terrorism financing measures will be published online so that registered filing agents may refer to them when doing their necessary due diligence.

We wish to commend ACRA for its time and efforts in obtaining comments from the public, as well as holding dialogue sessions with professional bodies, including the Singapore Association of the Institute of Chartered Secretaries & Administrators (SAICSA), the Institute of Singapore Chartered Accountants (ISCA) and the Law Society of Singapore.

As one of the representatives in the ACRA's Corporate Service Provider Working Group, ISCA will continue to provide feedback on the guidelines to be issued by ACRA for Corporate Service Providers in future. But we also hope that our other proposals will be taken into account as it will help strengthen the regulations and the industry, to the betterment of Singapore. Mdm Speaker, on the whole, I support the Bill.

Mdm Speaker, I thank Mr Dhinakaran for his support of the Accounting and Corporate Regulatory Authority (Amendment) Bill. I would also like to take this opportunity to thank all respondents to the public consultation exercise which was held last year including ISCA. As Mr Dhinakaran has pointed out, MOF and ACRA have incorporated a number of ISCA's comments. Let me now address Mr Dhinakaran's specific comments today.

Mr Dhinakaran had raised suggestions that are related to the key policies of the ACRA Service Provider Regulations. This document only outlines the broad policies, whereas the details will only be formulated as a set of regulations after the Bill is passed. ACRA will take on board ISCA's suggestions when drafting the regulations. However, for the benefit of other Members, I will broadly address some of Mr Dhinakaran's points.

First, Mr Dhinakaran suggested that ACRA also consider factors, such as the competency and experience of the applicant, when qualifying applicants for registration as filing agents and qualifying individuals. In fact, these factors are

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already part of today's regime and will be retained. The amendments we are proposing aim to enhance the current regime through setting higher eligibility criteria. This includes requiring an applicant to be a fit and proper person, not to have been convicted of any offence involving fraud or dishonesty with imprisonment for three months or more, and not to be an undischarged bankrupt. So, the current amendments build on existing requirements, which already incorporate Mr Dhinakaran's suggestion.

Second, Mr Dhinakaran also suggested where corporate secretarial agents are concerned, that only those with at least three years' experience as a company secretary and who have been in the business of providing corporate secretarial services be eligible for registration. In fact, this is already in the existing requirements and will be retained.

Third, Mr Dhinakaran suggested that only members of professional bodies which are internationally recognised should be eligible for registration. I should explain that the enhanced regime does not enlarge the categories of persons that are allowed to register. Members of the old professional bodies that we currently allow have carried out their duties satisfactorily thus far, and there are no strong reasons to exclude any one of these professional bodies. Under the enhanced regulatory framework, members of these bodies however, who do not meet the requirements will no longer be registered. So, this will help to ensure that the quality of services provided by our Corporate Service Providers is not compromised.

Madam, let me now turn to the more technical but, at the same time, very important aspects of the Bill raised by Mr Dhinakaran and they have to do with the filing agents' obligations for customer due diligence.

We agree with Mr Dhinakaran that it is necessary to provide clarity and specific guidance to Corporate Service Providers on the new obligations under the revised framework. The working group that ACRA has set up and of which ISCA is a part, is mindful of this need. As one of the members of the working group, ISCA has also been actively providing useful feedback to ACRA.

Thus far, the working group has completed a draft, which is a set of practical guidelines based on international and local precedents for Corporate Service Providers, focusing on the extent of customer due diligence requirements. Now, depending on the assessed risks of each applicant, different levels of customer due diligence, either enhanced, normal or simplified will have to be performed. In other words, there is already a broad

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tiering of the extent of due diligence that will be required, depending on the assessed risks of different types of customers.

The guidelines will provide examples of risk factors and suspicious behaviour that filing agents will have to consider during the risk assessment. In addition, the guidelines will also include links to FATF's list of countries that have anti-money laundering or counter financing of terrorism that are considered high risk or deficient in terms of their controls, or enforcement. The FATF's list will likely be the most current one that anyone should refer to if they are in need of checking up on or for an assessment of the adequacy of controls and enforcements in any particular regime.

The guidelines will also provide examples of appropriate internal policies, procedures and controls that filing agents should maintain within their own organisations. In situations where a filing agent is unable to apply proper customer due diligence measures, a suspicious transaction report should be made to the Commercial Affairs Department (CAD).

Often, this is a judgement call whether to file a report or not. The Working Group has, therefore, specifically consulted CAD on the factors that ought to trigger the filing of a suspicious transaction report. A list of these factors will similarly be provided in the guidelines, together with a template containing the type of information required to be provided.

Finally, when deciding on the frequency of audit checks, ACRA intends to adopt a risk-based approach and consider factors, such as size and type of filing agents. ACRA will be formulating its audit policies and will share them with the industry in due course.

In conclusion, Madam, I would like to assure Members of the House that ACRA will do its best to provide corporate service providers with clear guidelines accompanied by the conduct of adequate and appropriate training.

Once again, I thank Mr Dhinakaran for his thoughtful comments and support for the Bill.

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

[(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)]

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[(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo]. (proc text)]

[(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]

[(proc text) Order for Second Reading read. (proc text)]

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

Madam, the Geographical Indications Bill proposes to strengthen protection for businesses and consumers by enhancing the regime dealing with representation of geographical origins of goods, where such origins are indicative of quality.

Before going into the provisions of the Bill, it may be useful for me to explain what we mean by "Geographical Indications" or "GIs" in the context of the Bill.

Geographical Indications or "GIs" are terms which we use to inform consumers that a product comes from a particular place. Such goods would often fall under the category of food and drink.

I thought, Mdm Speaker, that it might be useful to illustrate this. And with your permission, may I ask the Clerks to distribute an Annexure to the Members?

Yes, please. [A handout was distributed to hon Members.]

Mdm Speaker, this annexure is to enable the Members to appreciate the full flavour of what we mean. MinLaw exercised some creative licence to come up with a menu to illustrate what it would look like if you had food and beverage with geographical indications. So, you would have, as starters, Melon wrapped with Prosciutto di Parma, followed by Belon Oysters and Baked Camembert Cheese from Normandy. For the mains, you

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have Chicken from Bresse braised in Red Wine from Burgundy, and followed by a Roast Kobe Beef Rib Seasoned with Sarawak Pepper. For dessert, Fresh Strawberries Drizzled with Balsamic Vinegar from Modena, a Provencal Olive Oil-Lemon Cake and a Champagne Granita. And, of course, not forgetting the wines. We have Chablis; Mosel for the White, a Bourdeaux and Brunello de Montalcino for the red with Digestifs of Grappa and Port.

Madam, the names of many of these products refer to a town, region or country, as can be seen from the menu. If Members wish to avail themselves of the menu and try it out, I can assure them that MinLaw will not be exercising its copyright in respect of the menu and they are free to do so.

We call these terms "GIs" when they signal to consumers that a product has special qualities or enjoys a certain reputation or other characteristic due to its geographical origin. Indeed, some of the terms in the menu are recognised as GIs in other countries.

Take "Bordeaux", for example. "Bordeaux" is a wine originating from the Bordeaux region in France. It is said to have a special flavour and characteristic because of its geographical origin. If "Bordeaux" is protected as a GI in Singapore, this means that only wines produced in the Bordeaux region can be labelled and marketed as "Bordeaux" wines in Singapore. Wines produced outside of Bordeaux that are labelled or marketed as "Bordeaux" wines would infringe the "Bordeaux" GI. The traders and producers of GI products, or their relevant associations, may then pursue civil action to stop the infringement or seek damages.

Why protect GIs? As indicated earlier, many GIs revolve around food and drink. Singaporeans increasingly consume and enjoy food products from all over the world, including various agricultural and dairy products, wines and spirits.

GI protection safeguards the interests of our consumers. It provides greater assurance that the products bought by our consumers truly carry the characteristics that they are known for, and which are attributable to their geographical origin.

Currently, GIs are already protected in Singapore under the Geographical Indications Act, in accordance with the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) standards.

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TRIPS provides a two-tiered scheme of protection:

First, all GI products enjoy a basic level of protection, where GI labels cannot be used on products which do not come from the place indicated by the GI, if this misleads the public as to the true geographical origin of those products.

For wines and spirits, there is an enhanced level of protection where GI labels cannot be used even if consumers are not misled as to the true geographical origin of the goods in question. One example of this is the use of the term "Bordeaux-like". This may not mislead consumers, but is nevertheless not allowed.

The present Act does not require GIs to be registered before they enjoy the relevant type of protection under TRIPS. However, in practice, the absence of a registration system means that a term can only be conclusively determined that it is a GI through a Court ruling in a civil suit. There have not been any such disputes before our Courts. Thus far, there have not been any such disputes before our courts.

I move on to the objectives of the Bill. Under the recently concluded FTA negotiations with the EU (the European Union (EU)-Singapore Free Trade Agreement or EUSFTA), we have agreed to take steps to bring the agreement into force by strengthening our GI regime.

The Bill proposes to: first, establish a Registry of Geographical Indications or "GI Registry"; second, enhance the protection of GIs in Singapore; and third, provide improved border enforcement measures for GIs.

I will now take the House through the main features of the Bill.

Part IV of the Bill establishes a system of registration for GIs. The aim of having a system of registration is to improve the certainty of protection given to GIs. Registration will give the holder certainty that a term is recognised as a GI and is, therefore, entitled to all the protections enjoyed by a GI, without needing to confirm this before the Courts. This will facilitate the enforcement of these rights.

The proposed GI Registry will reside within the Intellectual Property Office of Singapore (IPOS). When established, the Registry will examine applications for GI registration in respect of: (a) wines and spirits; and (b) selected categories

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of agricultural products and foodstuffs, such as cheese, meat and seafood.

Registration will be a three-stage process that seeks to be transparent and fair. The process is similar to the trade mark registration system in Singapore and comprises the following:

First, application. Among other things, applicants will be required to specify the quality, reputation or characteristics of the good in question and how that is attributable to the geographical origin.

Second, there will be examination. There will be a detailed examination of each application to ascertain that they fulfil certain fundamental requirements. These are largely similar to what is mandated under the present Act and TRIPS.

Third, publication and opposition. Thereafter, the application will be made public for a period of time. This is to allow third parties an opportunity to object to the registration, for example, on grounds of "generic-ness", meaning that the GI has become a common name for describing that product in Singapore. In this respect, GI terms which are proven to have become common household names in Singapore may not be registered.

Registration of a GI will last for 10 years initially. Like the trade mark registration system, this can be renewed for further periods of 10 years. To protect existing rights, GI registration will also follow the "first in time, first in right" principle. This means that a new application for GI registration may not invalidate a prior conflicting GI or trade mark which already exists.

Trade mark owners today using terms similar to GIs being registered will thus not be inconvenienced. However, the GI can still be registered if consent is obtained from the owner of the prior conflicting trade mark. Consequential amendments to the Trade Marks Act will be made to align the current Trade Marks regime with this position.

There will also be exceptions for existing users of GIs so that their business operations will not be disrupted. For instance, if a person has continuously used a GI term in Singapore for a sufficiently long period of time, or has previously used the term in good faith, he or she may continue to use the term, even if the GI is subsequently registered.

We do not foresee a significant impact on consumer choice, as the majority of products labelled with GIs in the local market are already of the correct

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geographical origin. Moreover, for many products, there is substantial intra-GI competition. For example, there are many producers of "Bordeaux" wines, competing with one another in different segments of the market.

Businesses that import foodstuffs, wines and spirits may have to adjust their operations to comply with the new requirements. For example, they may have to work with producers to re-label such products for sale in our local market. That said, through our public and industry consults, we have already alerted our local businesses, and they have already started planning for the new GI regime. That is the first main change.

The second relates to the enhanced protection for registered GIs. Under the TRIPS two-tier system of protection, wines and spirits enjoy an enhanced level of protection. This enhanced level of protection means that protection is conferred even if consumers are not misled as to the products' true geographical origin. Clause 4 of the Bill will extend this enhanced level of protection beyond wines and spirits to all successfully registered GIs, including agricultural products and foodstuff.

The third change relates to border enforcement measures. Under Part VI of the Bill, owners of all registered GIs will have access to improved border enforcement measures. For instance, they will be able to request that our Customs authorities detain suspected infringing goods which are to be imported into or exported from Singapore. These measures are generally based on those in the Trade Marks Act, with modifications to suit the situations involving GIs.

I move on now to implementation. The changes under the Bill will be implemented in stages to correspond with the EUSFTA's ratification timeline.

The GI Registry will be established only if the EU Parliament ratifies the EUSFTA. The enhanced protection for all categories of registered GIs will only kick in when the benefits of the EUSFTA is provisionally applied both ways. Improved border enforcement measures will only be effected within three years after the EUSFTA enters into force. This will give Customs time to build up capabilities to undertake enforcement action.

The staged implementation ensures that any potential disruptions to local businesses dealing with or using GI products do not kick in before the benefits of the EUSFTA start to accrue.

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It will also give businesses time to make the necessary changes to adjust to the new GI regime, including, for example, the re-labelling of products for sale in the local market, which is what some local businesses are already in the process of doing.

When the new GI protection regime comes into force, it will not over-ride or undermine any rights which GI holders already have under the existing regime. These rights will co-exist with those under the new regime.

However, those who wish to benefit from increased certainty of recognition, enhanced level of protection and improved border enforcement measures can opt for registration.

Mdm Speaker, in conclusion, the EUSFTA, when it comes into force, could bring about the following benefits: (a) tariff concessions on our exports; and (b) greater EU market access for Singaporean companies.

The proposed changes in our GI regime will put us in a position to meet our obligations under the EUSFTA, should the conditions for implementation arise. It will also then benefit our consumers.

At the same time, we have structured the implementation in phases to minimise disruption to businesses and ensure that the benefits of EUSFTA accrue in a fair manner to both parties. Madam, I beg to move.

[(proc text) Question proposed. (proc text)]

Mdm Speaker, a geographical indication, or GI for short, is a legal term that refers to a sign or indication that identifies a good as originating from a particular location. These GI products are typically characterised by a special quality, reputation or unique characteristic. Well-known examples of GIs include Darjeeling tea, Champagne and Parma ham.

It is essential that we respect the geographical origins of these products as they represent a guarantee as to the quality of the products that are being purchased. Beyond that, these GIs may also promise a specific taste, aroma, appearance or characteristic which consumers are willing to pay for. Equally,

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should there be goods produced in Singapore, their Singapore-linked GI should be respected. What I am about to do to your menu is, well, tongue-in-cheek! For example, if under the starters we had Ghim Moh chwee kway, or under the mains we had Katong laksa, or under the desserts we had Geylang ondeh ondeh, or under the beverages we had wines. The broader point I am making here is we, too, should not only have to protect GIs of other countries but, should the time come, reciprocity should be accorded to our country, Singapore, by countries in terms of relevant goods produced here or eventually produced here.

As such, it is essential that we honour the GIs of goods and products that are being sold on our shores or that are being exported or imported through our ports.

Under existing laws, GIs are automatically protected under the existing Geographical Indications Act (GI Act), as there is no requirement for parties to file an application to protect a GI. This protection applies to GIs of any country that is a member of the WTO, a party to the Paris Convention for the Protection of Intellectual Property, or a country designated by the Minister as a "qualifying country".

Further, interested parties are able to bring civil claims to obtain a court injunction to stop third parties from using their GIs, or obtain compensatory damages or the account of profits from the infringing third party. Beyond the GI Act, interested parties may also be able to obtain protection for a GI as a certification or collective mark under our Trade Marks Act.

Mdm Speaker, I support this Bill as the re-enactment of the Geographical Indications Bill enhances and augments the existing legal regime for the protection of GIs under our domestic laws, and provides for clearer rules relating to the protection of goods and products with registered GIs.

The impetus for the repeal and re-enactment of this Bill is to ensure that Singapore continues to meet its obligations under the WTO's 1994 Agreement on Trade-Related Aspects of Intellectual Property (TRIPS), as well as our forthcoming commitments should the EU Parliament ratify under the European Union-Singapore Free Trade Agreement (EUSFTA), which I had the privilege of accompanying the Prime Minister to France and Poland last year to push for.

In the lead-up to this re-enactment, MinLaw, MTI and the Intellectual Property Office of Singapore (IPOS) had launched public consultations to garner feedback and views from the public regarding the proposed re-enactment and

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relevant changes to related legislation.

Could the Ministry highlight some of the key feedback that was garnered from the Public Consultations that were conducted and whether any feedback received from those consultations were incorporated into the Bill that is being debated today?

Mdm Speaker, one key component of the proposed Bill is the establishment of the Registry of Geographical Indications (GI Registry) under IPOS. This newly created GI Registry will be responsible for the registration of GIs for wines and spirits, and selected categories of agricultural products and foodstuffs. The proposed GI Registry will adopt a three-stage process for the registration of GIs, similar to that used for trade mark applications.

Agricultural products and foodstuffs that are registered with the GI Registry will be accorded enhanced protections beyond the existing regime, beyond the level accorded under Article 22 of TRIPS, while registered GIs for wines and spirits will be afforded the same level of protection that it currently possesses.

Further, the point that I want to stress is that the advantage of registration is that owners of registered GIs will have access to augmented border enforcement measures. These improved border enforcement measures will empower customs authorities to carry out active enforcement of the IP protection of GIs, rather than reactionary or passive enforcement.

Under the proposed Bill, owners of registered GIs will be able to request the Singapore customs authorities to restrict the import of infringing goods, or to seize and detain suspected infringing goods which are expected to be exported or imported into Singapore. Customs authorities will also be vested with the authority to search, examine and inspect vehicles and the baggage and belongings of persons entering into Singapore by land, sea or air.

Mdm Speaker, this pre-emptive approach to the protection of intellectual property rights is preferable as it ensures that infringing products are kept out of the market early, rather than relying on after-the-fact enforcement by the authorities.