Hansard, Monday, 8 May 2023

Order. I have to inform hon Members that the Address of Thanks agreed to by resolution of this Parliament on 21 April 2023 has been communicated to the President by Mr Speaker on 24 April 2023. Order. Questions for Oral Answer.

1 Ms Mariam Jaafar asked the Minister for Transport for the 457 Category D temporary motorcycle Certificates of Entitlement (COEs) which had expired between January and March 2023 (a) whether these COEs are concentrated among a few dealers and, if so, who are the top dealers; and (b) whether the Government will consider even more stringent action on motorcycle dealers who may be engaging in speculative bidding, beyond increasing the bid deposit and reducing the validity period of the temporary COEs to include barring such dealers from participating in the bidding.

2 Ms Mariam Jaafar asked the Minister for Transport in light of the record high COE prices (a) whether the Government has a view on the optimal number of private hire cars on the roads; and (b) whether the Government will consider more decisive measures to prevent private hire companies from dominating and driving up COE prices.

3 Dr Lim Wee Kiak asked the Minister for Transport (a) what other steps are being considered to moderate COE prices; (b) whether the trend of rising COE prices is triggered by extraneous factors, such as influx of foreign residents into Singapore; and (c) how many cars are there in the bonded warehouse waiting to be put onto the market since January this year.

4 Mr Melvin Yong Yik Chye asked the Minister for Transport (a) what are the key factors driving the recent surge in COE prices; and (b) whether there are plans to help those who rely on driving for their livelihoods but have been priced out due to the record high COE prices.

5 Mr Dennis Tan Lip Fong asked the Minister for Transport for each month in the past 12 months, what is the total number of new cars which have been registered by (i) ride hailing or private hire companies and (ii) car leasing companies, as a percentage of the total number of new cars registered.

6 Mr Yip Hon Weng asked the Minister for Transport (a) whether the Ministry has done any analysis of its data to ascertain the key causes for the recent spike in COE prices; (b) whether the Government plans to impose a cap on the number of Private Hire Vehicles (PHVs) that a PHV operator can own in their fleet, similar to the cap imposed on taxi companies, to reduce COE prices; and (c) what additional measures is the Government considering to rein in the costs of COEs.

7 Mr Liang Eng Hwa asked the Minister for Transport (a) whether the high COE prices will further fuel costs increases within the economy; and (b) whether there are plans to review the system to better allocate COEs.

Deputy Speaker, Sir, may I have your permission for the Minister for Transport to take Question Nos 1 to 7 in the Ministerial Statement later in the Sitting?

Yes, I give my consent.

The following question stood in the name of Mr Vikram Nair –

8 To ask the Minister for Law whether he can elaborate on the concept of “indivisible security” as referenced in his speech entitled “The Russia-Ukraine War and Southeast Asia One Year On: Implications and Outlook” that was delivered on 8 March 2023 at the ISEAS-Yusof Ishak Institute workshop.

Question No 8.

Thank you, Mr Deputy Speaker. I will first start with the point of sovereignty. Self-determination, sovereignty and territorial integrity as well as the non-recourse to the use of force are fundamental principles of international law. These principles are enshrined in the UN Charter, and 193 states are party to the Charter, including Singapore.

Article 1(2) of the UN Charter states that one of the UN’s purposes is “[t]o develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace”.

Article 2(1) provides that the UN is “based on the principle of the sovereign equality of all its Members”.

Article 2(4) provides that all Members “shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state …”.

Article 2(7) provides that “[n]othing contained in the present Charter shall authorize the [UN] to intervene in matters which are essentially within the domestic jurisdiction of any state …”.

Russia’s invasion of Ukraine violates these basic principles of international law, including self-determination, sovereignty, territorial integrity and the non-recourse to use of force. In my speech that Mr Vikram Nair refers to, I think I said four times that the Russian invasion cannot be justified.

Russia has invoked Indivisible Security as among the reasons for the invasion of Ukraine. And as I have said, Indivisible Security cannot give grounds for the Russian invasion. Indivisible Security is not of the same status as self-determination, sovereignty, or territorial integrity and the non-recourse to use of force.

Indivisible Security is, I think, best characterised as a concept that is invoked in international relations. And I pointed out that the concept of Indivisible Security, in some form, has been invoked by both Russia and the United States. But that does not make it a principle of international law. And it is not set out in the UN Charter.

In addition, in my speech, I shared diverse views on how the situation in Ukraine unfolded and the roles of the West, NATO and the Russian Federation. The result is that Ukraine is the unfortunate victim and its people are paying a terrible price.

No supplementary questions.

9 Ms Sylvia Lim asked the Minister for Foreign Affairs (a) whether remarks on the Russia-Ukraine war by the Minister for Home Affairs at a workshop on 8 March 2023 held at the ISEAS-Yusof Ishak Institute represent the views of the Government; and (b) whether there has been any revision to Singapore's position on the Russian invasion of Ukraine.

Mr Deputy Speaker, Singapore’s position on Russia’s invasion of Ukraine remains unchanged. We have taken – and we must continue to take – a clear stand that is consistent with our principles and our national interests. In the Ministerial Statement of 28 February 2022 on the "Situation in Ukraine and Its Implications", Singapore strongly condemned Russia’s attack on Ukraine. The invasion of a sovereign country is a gross violation of the principles of the UN Charter and of international law.

The sovereignty, political independence and territorial integrity of all countries, big and small, must be respected.

Ms Sylvia Lim.

Thank you, Mr Deputy Speaker. I have three supplementary questions for the Foreign Minister. The first is to ask whether the Foreign Ministry was aware beforehand that the speech on 8 March was going to be delivered by the Minister for Home Affairs. So, the first question is whether the Ministry of Foreign Affairs (MFA) knew beforehand that the speech was being given and did MFA know the contents of the speech.

The second question is, earlier, Minister Shanmugam mentioned that Indivisible Security is perhaps a concept in International Relations. So, I would like to ask the Foreign Minister what is the Government's view of such a principle of Indivisible Security.

And last of all, does the Foreign Minister agree that accepting a principle of Indivisible Security is very risky for small countries like Singapore?

Ms Lim, I am not sure whether you are levelling all your supplementary questions to the Minister for Foreign Affairs or the Minister for Law? Because I think your supplementaries actually cover some of what Minister Shanmugam earlier said. So, can I just be clear as to whom you are asking these questions?

Deputy Speaker, I am asking them to the Foreign Ministry because I would like to know the Government's view on this and the speech that was given covered foreign affairs. So, I believe that the views of MFA are very important.

Mr Deputy Speaker, let me state categorically – the statements of the Minister for Law reflect the views of the Government of Singapore. We know generally when each Minister is going to speak, we are aware of that. I must tell you we do not personally check every single line and sentence in our speeches and the speeches can evolve according to the circumstances of the event.

Needless to say, under the principle of collective responsibility, you can take it that, as long as we are in charge, the statements of each Minister reflect the views of the Government.

Mr Deputy Speaker, on Indivisible Security, the Minister for Law has already explained it and I do not think I have got anything further to add.

Ms Sylvia Lim.

Thank you, Sir. One supplementary question.

Would the Foreign Minister agree that, actually, the Government's statements on Russia's invasion on Ukraine have been consistent all this while and there has never been this attempt to say that the US or NATO has been somewhat contributory to the current state of affairs, which was something that the Minister for Law did say? So, I would like him to confirm that up to now, the Government has not taken this position and this is actually something new in the public domain.

Mr Deputy Speaker, there is nothing new. Our position has been and will continue to be clear and consistent. I have said that on numerous occasions, not just in this House. Various Ministers have also said this, in various fora outside this House.

I must add that foreign policy is something which we all have to take responsibility for, including the Opposition. I am very glad that in fact, the Opposition, of all parties, has ensured that politics stops at the border. I think I can quite safely say that, on behalf of every single Member in this House, our position remains that it was wrong of Russia, it was a breach of international law and of the principles of the UN Charter for them to launch the invasion of Ukraine.

Having said that, I think we must also be very clear in our minds that there are a diversity of views. And when we are explaining these matters to the general public and to our population, or indeed, even in this House, it is not unreasonable to reflect the diversity of views. But reflecting the diversity of views does not alter our national position, based on a defence of our national interests and the principles which a small, tiny city-state like us must subscribe to.

So, Mr Deputy Speaker, I detect, actually, unanimity in this House, across the partisan divide and I think we should maintain that discipline, that cohesion and that unity.

Ms Sylvia Lim.

Thank you, Sir. Perhaps one final clarification. Earlier, the Minister said that there is collective responsibility in the Cabinet and that the Law Minister's views reflect the views of the Government. In his speech, he actually said specifically that, in his view, the West and NATO were not uninvolved bystanders who had no role to play in the current situation. So, do I take it that that is the Government's view as well?

Mr Deputy Speaker, let me again step back and take a strategic look at this. Why have we taken such a categorical stand? We have taken it because of the vulnerabilities of Singapore as a tiny city-state. And history is replete with tragedy and misfortune falling on small countries. As the Minister for Law just explained – both in his speech and reiterated in this House – ultimately, the victim is the smaller country. Ukraine and Ukrainians are paying the ultimate price.

So, our position is clear: that it is wrong, a breach of international law, a flagrant violation of the principles of the UN Charter, the primary victim is the smaller country and it is people who are paying the ultimate price.

If you want to get into a larger debate on foreign policy, then, I would draw your attention to the fact that we are not in Europe. We are in Southeast Asia. As we collectively craft a foreign policy that is both consistent and protects our national interests, I would say that, on a larger strategic stage, we must always be aware.

In fact, if you do not mind, let me recite what I said a year ago: "The events in Ukraine go to the heart of the fundamental norms of international law and the UN Charter that prohibit the use of force and acts of aggression against another sovereign state. Russia's invasion of Ukraine is a clear and gross violation of the international norms, a completely unacceptable precedent. This is an existential issue for us. Ukraine is much smaller than Russia, but it is much bigger than Singapore. A world order based on might is right or where the strong do what they can and the weak suffer what they must, such a world order is profoundly inimicable to the security and survival of small states. And so, we cannot accept one country attacking another without justification, arguing that its independence was a result of historical errors or crazy decisions. Such a rationale would go against internationally recognised legitimacy and the territorial integrity of many countries, including Singapore."

So, I think these are matters on which we are all agreed. You can get into the historical details of how a situation unfolded. Our objective in Southeast Asia is not to let a repeat of the European tragedy occur here, in this part of the world. In trying to avoid a parallel of that situation here, I think it is entirely legitimate for us to consider all views, diverse views, opposing views even, on how the situation in Europe came about.

I would urge the Member to understand what is at state, understand why we have taken a stand, understand why that stand has to be maintained, upheld and, I hope, shared across the House by all the parties represented here; and also agree that we must not let a repeat of Europe – a continent which unfortunately has been a source of two world wars in the last century – we do not want a repeat of that here.

And finally, remember that a small nation is always vulnerable. And again, to repeat something I have said multiple times here, never let ourselves be a vassal state, a stalking horse, a cat's paw for any other power. Understand that when we get entangled in such matters, the ultimate loser is always the smaller state. I thank the Member for her interest and I am grateful for her support, and I mean that in all sincerity.

Ms Lim, you have asked four or five supplementary questions. I invite you to ask your final one.

Based on the Minister's last answer, he did not say whether the Government agreed with the Law Minister's view that the West and NATO were not uninvolved bystanders who had no role to play in the current situation. So, do I take it from him that he would rather not go into such historical matters?

For the Member's understanding, I cleared the speech with the highest levels of the Cabinet.

Dr Vivian Balakrishnan.

There are things that we discuss. There are things that we – when we are having a forum in Parliament and with the general public, when there is a need to reflect the diversity of views. And I think it was entirely legitimate for the Minister for Law to do so.

Having said that, as the Minister for Foreign Affairs, my first job is to protect the sovereignty, the independence and the territorial integrity of Singapore. And therefore, there may be times when what I say publicly is entirely aimed at achieving that.

I do not wish to have words put into my mouth, or to make public pronouncements beyond what I have already said, to say that beware that small countries do not get caught up in the manoeuvres, the to-ing and fro-ing, and the dangerous, sometimes escalatory, rhetoric or action the superpowers engage in.

And I say it my way, but I believe that my statements are entirely consistent with the rest of my Cabinet colleagues, and we stand and we take collective responsibility for that. I think I have said enough, Mr Deputy Speaker, and I am still absolutely certain that there is unanimity in this House on this matter of the Russian invasion of Ukraine. And I thank the Member for her support. Can I assume I have her support?

Yes, Sir, we have no reason to disagree with the Government's consistent stand from February last year to now.

And I am very grateful for that.

10 Mr Yip Hon Weng asked the Minister for Social and Family Development arising from the realignment of roles and salaries in the social service sector (a) which specific job role and scope have seen a reduction in their recommended pay; (b) whether staff in these roles will experience a pay cut and, if so, how many are estimated to be affected; (c) whether agencies will consider grandfathering current employees facing a reduced salary; and (d) whether the reduction in salary will make it more challenging to find local workers to fill these positions.

11 Dr Tan Wu Meng asked the Minister for Social and Family Development with regard to the outcome of the 2023 review of job roles and salary guidelines in the social service sector (a) whether any senior care staff have been pegged to a lower job worth as a result of the realignment process; (b) whether potential implications for support care staff in the healthcare sector have been considered in the review; (c) whether a tripartite approach has been considered in the review and, if so, to what extent; and (d) if not, why not.

Mr Deputy Speaker, may I take Question Nos 10 and 11 together, please?

Please proceed.

Sector salaries are reviewed regularly to ensure that salaries in Social Service Agencies (SSAs) remain competitive against comparable roles in competing markets. The recent review took into consideration the economic outlook, wage growth in the general market, including healthcare and public service, the contributions of social service professionals, funding sustainability of SSAs and alignment with the Skills Frameworks for Social Service and Healthcare. In particular, the Skills Maps, which outline the range and levels of skills and competencies required for each job role, were developed and validated with representatives from the sector, academia and the Government.

Arising from the review, some job roles were merged or right-sized. These include: one, adjusting the organisation budget ranges for Head of Agency roles; two, merging Executive, Programme Coordinator, Programme Executive and Volunteer Executive into a single Executive role; three, merging Social Worker (Entry) and Social Worker into a single Social Worker role; four, merging Therapist (Degree) and Therapist (Diploma) into a single Therapist role; and five, mapping the Senior Care Staff role to Social Service Assistant job grades, while reclassifying social work associates more appropriately to the Social Work Associate and Senior Social Work Associate roles.

The revised salary ranges for merged job roles provide greater flexibility for SSAs to hire employees at various competency levels and to plan for their progression according to experience and performance. For merged job roles, the starting salary guidelines took reference from the blend of the merged grades and are higher than the starting salaries of the lower merged roles before the review.

As explained in an earlier reply provided by Minister Masagos to a Parliamentary Question (PQ) on 21 April this year, the salaries for the right-sized Senior Care Staff role represent an increase in salaries, once those with competencies and performance at the job level of Social Work Associate are reclassified into the correct job role.

The National Council of Social Service (NCSS) has been supporting SSAs to implement the guidelines and to ensure that employees continue to be remunerated commensurately. Current staff should not have their salaries reduced as a result of the changes to the job roles. SSAs should continue to pay staff competitively, including paying above the guidelines if they are able to do so, in order to attract and retain quality manpower.

Mr Yip Hon Weng.

Thank you, Mr Deputy Speaker. The work in the social service sector is challenging and oftentimes can be emotionally and mentally draining. How often does the Ministry of Social and Family Development (MSF) intend to review the salary adjustments to make the pay more competitive and to attract people to join the sector?

Besides salary adjustments, what else is MSF doing to improve their attractiveness of the sector and is MSF working with the Ministry of Education (MOE) to attract more students into the sector through more industry-relevant course curriculum in tertiary institutions, like the Institute of Technical Education (ITE), polytechnics and our universities?

I thank the Member for his supplementary questions. The short and quick answer to his questions is yes. We do work with MOE to go upstream to green-harvest and we do review our salary guidelines annually. I thank the Member for his suggestions.

Dr Tan Wu Meng

Mr Deputy Speaker, I thank the Senior Parliamentary Secretary for his reply. May I draw the Senior Parliamentary Secretary's attention to a Facebook post by the Healthcare Services Employees' Union (HSEU) on 15 April 2023?

The President of HSEU stated in this post, and I quote, "More broadly the review potentially impacts support care staff in the healthcare sector as there is much overlapping similarities in job functions and skillsets...".

May I also draw the Senior Parliamentary Secretary's attention to the following paragraph in HSEU's Facebook post, "HSEU was not consulted for this wage review. HSEU reiterates that any review of sectoral wages and remunerations should adopt a tripartite approach."

Given this, may I ask the Senior Parliamentary Secretary if he can help address the second and third parts of my PQ? Firstly, whether potential implications for support care staff in the healthcare sector have been considered in the review. Furthermore, whether a tripartite approach was considered in the review; if so, to what extent and, if not, why not?

Mr Deputy Speaker, I thank the Member for his additional supplementary questions. Yes, just to reiterate what I mentioned in my speech, we have consulted the sector, academia and the Government, not the unions this time round. We do note his suggestion that we can possibly involve the unions in future salary reviews.

Ms Denise Phua.

I thank the Senior Parliamentary Secretary for his response. I wanted to clarify MSF's role in facilitating the support of additional wages in the Social Service Agencies, particularly for those which are providing essential services, many of whose salaries for the Chief Executive, Finance and even for IT positions are not supported by MSF or NCSS.

I want to ask if MSF would consider facilitating help agencies, such as NCSS, SG Enable and so forth, to support and fund these positions because these are important and integrative roles. To bring especially multi-million-dollar agencies together, we do need these positions. For funders to support only those services of so-called direct staff will not actually be realistic without these integrative roles.

I thank the Member Ms Denise Phua for her supplementary question. I think she would also understand that in the social sector, the approach has always been one of many helping hands, where the Government, the corporate sector and the community partners, including Social Service Agencies, all come together to bring something to the table to make sure that, in terms of various aspects of running the social sector – funding, expertise, resources – everyone brings something.

The Government cannot possibly fund all the programmes that are running on the ground and, yes – Sir, I seek your patience in letting me finish my reply – and so, it is in that spirit that we take an approach where many stakeholders come together to bring something to solve the many social problems that we face today.

Mr Louis Ng.

Thank you, Sir. Could I just ask whether MSF follows up with the SSAs on whether they are able to meet these new salary guidelines and, if so, what percentage of SSAs are able to meet these guidelines?

Mr Deputy Speaker, I thank Mr Louis Ng for his supplementary question. I do not have the numbers right now. If he likes, he may wish to file an additional PQ and we can attend to that. But we do work with NCSS as well as the relevant SSAs if there are cases where, in particular, the actual salaries on the ground do not quite match up to what has been stated in the guidelines.

Mr Don Wee, last supplementary question, please. Do you have a supplementary question?

No. Question No 12, please.

12 Mr Don Wee asked the Prime Minister (a) with the maximum coverage of up to S$75,000 per depositor per bank under the Deposit Insurance Scheme, what is the current percentage of non-bank depositors covered by the scheme; and (b) whether the Ministry will consider a review of the coverage cap.

13 Mr Saktiandi Supaat asked the Prime Minister (a) what are the lessons from the closure of several US banks due to uninsured depositor runs; (b) whether the Monetary Authority of Singapore (MAS) will consider raising the $75,000 per depositor per bank coverage limit insured by the Singapore Deposit Insurance Corporation; and (c) whether MAS will consider additional bank regulation on top of existing capital adequacy and leverage ratio requirements, such as the reporting of mark-to-market asset losses.

Mr Deputy Speaker, can I have your permission to take Question Nos 12 and 13 together, please?

Yes, please proceed.

Mr Don Wee and Mr Saktiandi Supaat had asked if the Monetary Authority of Singapore (MAS) will consider reviewing the deposit insurance (DI) coverage limit. Assoc Prof Jamus Lim also raised a related question for the next Sitting. Mr Supaat also asked about lessons from the closure of several US banks due to uninsured depositor runs and whether MAS will consider additional bank regulation on top of existing requirements. My response will cover the questions from all three Members for today's Sitting and the next and, if adequately addressed, Assoc Prof Jamus Lim may wish to withdraw his question.

Let me first make a basic point. DI is not the primary way in which we safeguard the interests of depositors, be they small or large. The recent stresses involving banks abroad remind us that a safe and resilient banking system is underpinned most fundamentally by a combination of pre-emptive safeguards. These include sound regulation, rigorous supervision, proactive cross-border cooperation and effective governance and risk management by the banks themselves.

So, we put a lot of store by these pre-emptive safeguards here in Singapore. They have contributed to MAS' financial sector oversight being assessed to be "amongst the best globally" by the International Monetary Fund (IMF) after the most recent Financial Sector Assessment Programme in 2019. DI complements these pre-emptive or ex-ante safeguards by providing a safety net for small depositors if banks were to fail.

International regulatory standard setting bodies, like the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS), will be carefully assessing the regulatory and supervisory implications arising from the recent banking stresses. MAS will be working with other regulators in these reviews in developing any needed regulatory responses to enhance the resilience of our banking system.

Our DI scheme aims to protect small depositors. Its adequacy as a safety net can be assessed by looking at the proportion of depositors who are fully insured – in other words, the depositors whose aggregated eligible deposits at a bank are within the DI coverage limit. The DI coverage limit in Singapore was last raised in 2019 from $50,000 to $75,000 per depositor per participating financial institution. At $75,000, it fully insured 91% of depositors covered under the DI Scheme at the time. With deposit growth since then, the percentage of fully insured depositors has fallen slightly to 89%.

Prior to the recent events, MAS had just concluded its latest, but regular review of the DI scheme, including both the DI coverage limit and also ways to ensure the operational efficacy of the DI scheme. MAS aims to present these proposals for public consultation by the end of June.

It is worth noting that we are not doing so in response to the recent stresses among some banks abroad and we should avoid overreacting to these events. Our principal objective should be to ensure that the pre-emptive safeguards, which I described earlier, are in good shape. We will also have to adjust the nominal coverage limit for DI from time to time. However, raising the proportion of deposits that are fully insured or, in other words, to cover larger depositors, is not without costs to banks, which will often ultimately mean costs borne by bank customers themselves. Each adjustment to the DI scheme, hence, has to be carefully considered.

Mr Don Wee.

I thank the Minister of State for his answer. Considering the recent bank failures overseas, what has been the impact on the insurance premiums which members of the Singapore Deposit Insurance Corporation (SDIC) will have to pay?

My second supplementary question is: should Singaporeans be concerned with the recent global failures of some of these banks overseas?

I thank the Member for his supplementary questions. With regard to the impact on premiums, there is no direct impact because the annual DI premiums are computed based on the amount of insured deposits held by banks and, for foreign bank branches, that asset-maintenance ratio, which varies with the amount of eligible assets and eligible pledged assets which they hold in Singapore.

With regard to the Member's second supplementary question, I would like to re-emphasise that the recent events, the bank stresses overseas, have highlighted the need for robust stress testing by banks as well as rigorous supervision by regulators.

Robust stress testing would, of course, help us to highlight any areas of vulnerability of individual banks by incorporating assumptions that are more reflective of a bank's risks. So, that is one. The second is that supervisors also need to assess the rigour as well as the competitiveness of banks' stress testing practices and then, after doing so, take the appropriate actions.

The banks also have to play their part. It is important for them to have robust and comprehensive contingency funding plans to handle liquidity problems as well as a good communication strategy, because these things matter when there are stresses on banks, particularly in times of stress.

So, it is essential that our banks regularly review their operational readiness to tap on available Central Bank liquidity facilities.

Mr Saktiandi Supaat.

Thank you, Mr Deputy Speaker. First of all, I would like to declare that I work in a financial institution, in a bank. I have two supplementary questions, Mr Deputy Speaker.

First is in relation to the Minister of State's answer just now. I have a concern with regard to the Minister of State's view and risk assessment in terms of digital bank runs in the future. I think things have evolved significantly since the last FSAP, as the Minister of State mentioned, in 2019. Things have changed in the financial sector and things have evolved in terms of digitalisation in the banking sector. So, what is the Minister of State's view and risk assessment of digital banking runs or, as some people call it, "bank rush", in Singapore and in the region?

The second supplementary question, Mr Deputy Speaker, is in regard to raising the DI limit. I am actually mindful of considering the DI limits because it could have cost implications, as the Minister of State mentioned, for the banking sector as well as Singaporeans. If so, what is the cost of this increased DI coverage limit? Is the DI fund adequately sized in terms of the pre-funding? Also, can the Minister of State highlight – typically, in other countries, for example, the UK, it takes seven days for a depositor of a bank to get his or her money cash back. For Singapore, how many days would it take for a depositor to get his money if a bank goes bankrupt?

Thank you, Mr Deputy Speaker. Let me go through the different questions one by one.

With regard to the Member's question on digital banks, digital full banks are DI members of SDIC. In the initial restricted phase, they are limited to no more than $75,000 deposit per individual depositor. So, at that level, it will mean that all of the individual's deposits with a digital full bank would be fully covered. Digital wholesale banks are not subject to this cap but they cannot take retail deposits.

On the other question with regard to how fast can you make payments – SDIC's target is to make payments to insured depositors within seven days after the payout is triggered.

On the final question on the increase of the DI coverage limit, the DI scheme members pay regular premiums quite similar to what I explained earlier, to cover these deposits; and a higher coverage limit, of course, will require higher premiums. This adds naturally to the bank's overall costs, which they will have to manage themselves, and then, sometimes also pass on these costs to customers, given that they are commercial enterprises. They might do it through, perhaps, lower deposit rates, higher lending rates or other fees.

But I wanted to go into the final question, which is important, about the size of the DI fund. I would like to assure the Member and Members of this House that the DI fund is adequately sized. It is designed to meet a solvency standard of over 99.9%. What that means is that at this target fund size, the DI fund is able to make DI payments without losses at a confidence interval of 99.9%.

The target fund size is currently calibrated at $690 million and the DI fund has approximately $570 million in total assets and continues to be built up as scheduled, through annual premiums collected by member financial institutions.

The DI fund may also borrow from MAS for payments to insured depositors. But I wanted to quickly come back again to the principle of this: that in a safe, resilient banking system, it is underpinned by a combination of pre-emptive safeguards. I mentioned sound regulation, rigorous supervision, proactive cross-border collaboration, effective governance and the responsibilities of banks themselves.

DI complements these pre-emptive and ex-ante safeguards, by providing a safety net for small depositors, if banks were to fail. So, we will continue to conduct regular reviews. I said that we recently conducted the review prior to the events that happened to look at the DI coverage limits as well as the operational efficacy of the scheme and we will release the proposals to the public for public consultation by the end of June.

14 Mr Leong Mun Wai asked the Minister for Home Affairs for each year since 2000 (a) what is the number of ultra-high net worth individuals and their families, with a net worth of at least US$50 million, who have been granted Singapore Citizenship; (b) of which, how many of them obtained Singapore Citizenship after having set up a family office in Singapore; and (c) how many obtained Singapore Citizenship through other avenues.

Sir, the Immigration and Checkpoints Authority (ICA) does not collect information on the wealth or net worth of Singapore Citizenship applicants. That is not a primary criterion for assessment for Singapore Citizenship.

There were recent media reports that said that a researcher based in South Africa had estimated that 3,500 high-net-worth individuals were due to get Singapore Citizenship in 2023. The Ministry of Home Affairs (MHA) issued a statement on 25 April 2023 stating that the reports were highly misleading and had no credible basis. We do not know how the researcher had arrived at these figures and the grant of Singapore Citizenship for the rest of 2023 has not been decided yet.

After our statement was issued, the researcher wrote to MHA to say that he had been misquoted by the media. He said, and I quote, "This was simply untrue and not at all what was said in the interview." He said he had "never said anything about citizenship". He said that he did not track citizenship in his research and that his projection referred to high-net-worth individuals moving to Singapore in general, and most of them may be expatriates and work transfers, that is, not necessarily persons who applied for and became citizens.

As mentioned in MHA's statement on 25 April 2023, having high net worth does not guarantee Singapore Citizenship. Each Singapore Citizenship application is assessed on a broad range of factors, which include the ability to contribute to Singapore, the number of jobs that the applicant or his business may be able to create in Singapore, the special skillset and/or education that the applicant may possess, the applicant's family ties to Singaporeans, the ability to integrate and the commitment to sink roots in Singapore. Different criteria may apply to different applicants, depending on their background and circumstances. For example, an applicant applying as a spouse of a Singapore Citizen will be considered differently from someone applying on the basis of having stayed in Singapore for a period of time and contributed to employment creation in Singapore.

Mr Leong, is there any supplementary question from you? No. Leader of the Opposition.

Thank you, Mr Deputy Speaker. Just a follow-up to the Minister's reply with regard to the researcher who said, as I understood Minister's reply, that it was a media publication that actually misquoted him and it sounds like a very serious case of being misquoted. Can I confirm whether MHA then reached out to the publication to enquire why the piece was eventually published as it was, in view of the sensitivity of this subject?

Sir, I do not keep track of whether my Ministry reaches out to media to find out. What we do know and what is factual, is that we issued a statement categorically rebutting the report, and the person who was supposedly quoted has written to us to say all these things.

15 Ms He Ting Ru asked the Minister for Sustainability and the Environment in light of the introduction of the plastic bag levy, whether the Ministry will consider working with HDB on a public awareness campaign reminding residents of the need to bag rubbish for disposal in rubbish chutes.

Sustainability and the Environment): The disposable carrier bag charge at supermarkets is intended to be a behavioural nudge to encourage the use of reusables over disposables. The charge will not remove the public's access to disposable bags. Residents should continue the responsible practice of bagging waste before disposal. We have and will continue to offer suggestions on alternatives to disposable carrier bags from supermarkets for bagging waste.

No supplementary questions? Ms Joan Pereira.

The following question stood in the name of Ms Joan Pereira –

16 To ask the Minister for Health whether polyclinics can scale up their capacity to accommodate more walk-in patients with urgent medical conditions, such as those experiencing acute or severe pain, and to avoid turning away senior citizens.

Question No 16.

Sir, our polyclinics take in all patients with appointments. As for walk-in patients without appointments, those requiring urgent medical attention will be attended to, those not requiring urgent medical attention may be asked to book an appointment or seek treatment at a nearby general practitioner (GP) clinic.

We are continuing to expand our network of polyclinics. We opened Bukit Panjang, Eunos and Kallang Polyclinics in end 2021 and another two polyclinics in Sembawang and Tampines North are slated to open later this year. Khatib Polyclinic will open in 2024 and Serangoon and Tengah Polyclinics in 2025. At the same time, we will work with GP clinics, which play an important role in treating acute diseases at the primary care level, too.

Mr Liang Eng Hwa.

Mr Liang Eng Hwa (Bukit Panjang): Sir, I share the concern expressed by Member Joan Pereira on the polyclinics and the Senior Minister of State mentioned about Bukit Panjang Polyclinic. We do have situations where residents have not only not been served as a walk-in – they could not get a place for walk-in – but even for online booking, where the night before they could not get a slot. I just want to ask the Senior Minister of State whether the Ministry of Health (MOH) is looking at improving this situation.

Secondly, there is also Community Health Assist Scheme (CHAS) GP Clinic scheme, which is meant to take some load off the polyclinics. But it seems that is not helping much. May I ask the Senior Minister of State is the Ministry looking at what are the impediments do that? Why is it so? Is there a need to change the scheme or the policy so that it becomes attractive for patients to use the GP clinics as well, and not all going to the polyclinics?

Sir, I thank the Member for his questions. On both his questions, he has highlighted the direction in which we are moving, which is for the polyclinics to work in partnership with the GP clinics and family practitioners in the area that they serve. We do want our residents to understand that these are part of a continuum of primary care services.

For the polyclinics, if the patient turns up without an appointment, wants to walk in and if they have an urgent need, they will be attended to. There will be triage, they will be assessed and, if there is an urgent need, they will be attended to. If it is something elective and there are no appointment slots left, the recommendation will be that they seek care electively in a planned way, make an appointment with the GP within the vicinity.

I am not sure whether there are specific details about how the Member feels the CHAS scheme is not helping much. Perhaps if there are specific cases, we could look into that and see how we can assist. In general, we are trying to find ways to help the GPs, the family physicians, as a community, upskill and deliver these types of cares in partnership with the polyclinic teams as well. In general, the GPs and the family physicians are more than willing and able to do so.

Mr Ang Wei Neng.

Thank you, Deputy Speaker. I would like to ask a supplementary question of the Senior Minister of State. For the residents in the west, especially in the Nanyang ward, they go to Pioneer Polyclinic. They really have difficulties getting appointments online and, even so, when the residents go to the polyclinic early in the morning to queue for the appointment, they cannot get an appointment.

So, my supplementary question is, one: when they queue, if they cannot get an appointment, can they get the next day's appointment? Two, we also understand that most of the polyclinics and the MOH building are in other parts of Singapore, in the north-west part or the western part, and not in the Jurong area. So, how are we going to alleviate the situation at Pioneer Polyclinic?

Sir, I thank the Member for his questions. We will look at his suggestion in terms of the queuing system and the appointment booking process. We are trying very hard to improve the service provision for primary care by both expanding our network of polyclinics, as well as leveraging on the experience and capability of the GP clinics and family physicians that are in the community and that can serve this resident population very well.

Mr Saktiandi Supaat.

Thank you, Mr Deputy Speaker. I am asking this supplementary question on behalf of Ms Joan Pereira who is on medical leave. She has a very strong conviction about asking this supplementary question, so I am conveying this question to the Senior Minister of State.

Can the Senior Minister of State consider asking polyclinics to consider prioritising walk-in patients who are seniors? Because Ms Joan Pereira is very particularly interested in making sure our seniors walking in, as well as those with mobility issues, are attended to, given that they may find it challenging to go to the GPs. I think the Senior Minister of State has highlighted it somewhere at the beginning, but I think it is very, very focused on seniors – whether there could be prioritising for them, especially those who are very aged and have mobility issues.

Sir, I thank Ms Joan Pereira and Mr Saktiandi Supaat for asking that question. As I mentioned in my original answer, the walk-in residents, the walk-in patients are triaged and assessed, and part of that assessment will, indeed, be their state of frailty, and their age and their mobility are considered as part of that assessment.

I think the right thing to do is to allow the professional judgement of the clinical team at the site to make the assessment as to the urgency of their needs, rather than set a very arbitrary cut-off in terms of an age, for example, or other factors where actually the key thing is to assess the needs of that patient at that time. And that is, indeed, what the clinical services will do. I thank the Members for their question.

The final supplementary question. Dr Tan Wu Meng.

I thank the Senior Minister of State for his answers. A number of my Clementi residents are quite concerned about the implications of the online booking process for polyclinic appointments. Some may be quite elderly, less able to go online, less able to quickly click to secure the appointment when the bookings open. I have residents who tell me that, for some polyclinics, the online slots are used up within half an hour of the online booking starting on some days.

Can I ask the Senior Minister of State whether MOH is looking at the take-up of these online bookings, whether there is a trend towards fewer seniors being able to get these online bookings and whether the seniors are as able to attend the polyclinics as before?

Secondly, can I also ask the Senior Minister of State in the event there are CHAS GP clinics interested in participating in an online booking portal, whether there could be a future pilot project to integrate these GPs into the online booking process as well, if there is interest?

I thank the Member for his questions. For his first supplementary question, I do not have the data with me about the proportions of seniors that are attending now as compared to historical data. I would be happy to provide it if he would like to file a separate Parliamentary Question. But, in general, as I engage with the polyclinic staff and the clinicians who provide these services, it is quite clear that a very high proportion of their workload is, indeed, the seniors. And so, the senior residents within the geographical area are, indeed, attending, are able to access the services and receive the care from the polyclinic care teams. But as I said, I would be happy to look at the data, specifically, if he would like to file a related question.

On his suggestion about integration of the CHAS GP clinics into an online booking system, it is a suggestion worth studying and we will, indeed, look to see how we can improve access to primary care services for residents.

17 Mr Desmond Choo asked the Minister for Manpower (a) what are the key considerations and matrices used to decide on the Complementarity Assessment Framework (COMPASS) Shortage Occupation List; and (b) how does the Ministry balance between economic needs and ensuring these jobs are available for prospective new entrants, especially those who are still in school.

18 Mr Liang Eng Hwa asked the Minister for Manpower with regard to the Complementarity Assessment Framework (COMPASS) Shortage Occupation List (a) how does the Ministry determine if there is a shortage in any particular occupation; (b) whether the Ministry has the expertise to evaluate if there is a shortfall in a specialised skillset and it is unavailable in the local workforce; and (c) how does the Ministry track whether a company has fulfilled its commitment to develop local talents as part of the conditions under the framework.

Mr Deputy Speaker, Sir, may I have your permission to address Question Nos 17 and 18 together?

Yes, please proceed.

Thank you. The Ministry of Manpower (MOM) and Ministry of Trade and Industry (MTI) evaluate occupations for the Complementarity Assessment Framework or COMPASS' Shortage Occupation List (SOL) based on three criteria: the first criterion being the strategic importance of the occupation to Singapore’s economic priorities; second, the degree and nature of labour shortage; and third, the sector’s commitment to developing the local pipeline to address these shortages.

Labour shortages are assessed based on a set of quantitative indicators. We derive this data from MOM's Job Vacancy Survey, as well as data from the MyCareersFuture job portal on job applications and vacancies. We also supplement this with qualitative assessments from the relevant sector agencies, alongside feedback and ground sensing from industry and tripartite partners. Together, this provides a good degree of triangulation. It provides MOM and MTI with a fuller understanding of labour market shortage conditions in the respective industries.

The SOL does not stand alone as a strategy to meet industry demand for skilled professionals. While the SOL helps companies access foreign professionals to plug immediate skills gaps and seize economic opportunities, it must also be complemented by robust efforts by industry to train up and place locals into these well-paying jobs. Hence, there must be clear plans, clear commitments by industry to develop the local pipeline, or else the occupation will not be included in the SOL.

To Mr Liang Eng Hwa’s question on tracking of commitments to develop the local pipeline, MOM and MTI work closely with sector agencies to set commitments around local training as well as employment at the aggregate occupation level. Rather than mandating fixed commitments for each firm, sector agencies have the flexibility to work closely with the firms, industry partners and education and training providers on plans to train and employ more locals with these skills in shortage. We will review that these commitments are met, as a key condition for renewing an occupation on the SOL.

To Mr Desmond Choo’s question on ensuring jobs are available for prospective new entrants, we regularly review the SOL to ensure it remains responsive to changes in the labour market, including taking into account our local graduate pipelines.

MOM and MTI will closely monitor indicators of shortage for each occupation and we will also track local graduate outcomes for the SOL occupations. The SOL will be reset every three years and we intend to adjust it annually to add or remove occupations if there are significant changes in industry demand or supply of skilled workers. This will help us to avoid entrenching dependencies on Employment Pass holders in any occupation.

Mr Desmond Choo.

Thank you, Mr Deputy Speaker, Sir. I have two supplementary questions for the Minister. I thank him for the reassurance that it is a robust system to make sure that locals are not disadvantaged.

The first question is, what is the nexus or how closely does MOM work with the Ministry of Education (MOE) to ensure that the students who are going to the subjects, who are training for the occupations in need, adequately know that there is a strong demand and they will not be dissuaded because more foreigners are coming into those occupations?

The second question is: for the Shortage Occupation List (SOL), will MOM also monitor how the wages change over time and, indeed, if the wages are affected, meaning that they are not growing at the rate compared to other occupations, will MOM then similarly slow down or remove such an occupation from the list?

Mr Deputy Speaker, I thank the Member for his two supplementary questions.

In terms of working with MOE, this will be one of the key impetus in terms of how we draft each one of the lists. The SOL, as I have shared earlier on, will be reviewed regularly to reflect current industry needs and shortages; and of course, in addition to earlier on, the adjustments annually. This will start on a fresh slate every three years so that we do not entrench any particular dependencies in any occupation.

So, we work with MOE in terms of the growth of our local pipeline, including that of university and polytechnic graduates, because the pipeline of these graduate should help us over time to ease the shortages over the medium to long term.

This is also further complemented and supplemented by other mid-career efforts, for instance, like the Career Conversion Programmes that we roll out through WSG and through the NTUC, the company training committees.

We expect that, with time, some of these occupations that are currently on the SOL will be removed, hopefully in the not-too-distant future.

On top of that, we also work with our other sector agencies, such as EDB, because they provide regular industry feedback to the Institutions of Higher Learning (IHLs) about the skills that are in demand, including those needed for occupations on the SOL, so that the IHLs can continue to update their course offerings accordingly.

We are in this state where change is accelerating and there are also significant disruptions to the job landscape. So, we also encourage all of our graduating students to continue to learn new skills upon graduation and to pursue opportunities in growth sectors.

We have also announced earlier on in our Committee of Supply (COS) debates this year about career health, about the add-ons in terms of the career finders to help our workers to continue to seek adjacencies in their upskilling, so that they can get better jobs, better paying jobs.

To the Member's second supplementary question about whether we monitor wage changes over time, indeed, we do, and that is why we have also been calibrating upwards our qualifying salary with regard to the Employment Pass as well as our S Pass minimum qualifying salaries. And that follows a graduated skill depending on the age of the foreign work pass holder. I hope that addresses the Member's concerns.

Mr Gerald Giam.

Thank you, Mr Deputy Speaker. I have two supplementary questions for the Minister. Is the SOL proactively shared with schools and tertiary institutions so that they can provide career guidance to their students and encourage them to consider these jobs so that they can fill the shortage when they eventually graduate? Or would the Minister say that the SOL should not be used as a basis for career guidance for younger students, including those in secondary school?

I thank Mr Giam for his supplementary questions. As I have shared earlier on, we live in a world where change is accelerating and the pace of disruption is also accelerating. So, on a broad directional guidance to schools, for instance, about our aspirational move into the greening of our economy, into sustainability, into the pivots and the transition into carbon credits, carbon trading and so on, the broad guidance we can continue to share with the schools. As I have said earlier on, we work with the sector agencies to continue to provide insights and inputs to our IHLs so that they can prepare our pipeline of graduates.

I think to the extent of getting to the granularity, our continued encouragement, our continued exhortation to all of our students, regardless of whether they graduate from the ITEs, the polytechnics or the IHLs, would be that they must continue to embrace this constant learning, constant upgrading and constant upskilling because the world we live in today has and will continue to be in this state of constant change. I hope that addresses the Member's question.

19 Mr Gerald Giam Yean Song asked the Minister for Transport (a) whether bus shelter address plates can display the bus stop code, instead of the LTA alpha-numeric code, to assist bus passengers in identifying bus stops in advance of arriving at a particular bus stop; and (b) what measures has LTA taken to make navigation easier for bus passengers, including people with disabilities and the less technology-savvy.

Sir, the bus stop name, alphanumeric code and five-digit code are displayed at the bus stops.

Since 2018, the Land Transport Authority (LTA) has fitted all new public buses with the Passenger Information Display System (PIDS), which displays and announces the name of the upcoming bus stop, including references to nearby landmarks or the road.

Other measures to make navigation easier include the installation of tactile ground surface indicators, Braille signages for the visually impaired and murals to assist commuters with dementia. New bus interchanges also have enhanced signages with bigger fonts and brighter lighting for improved readability and better wayfinding.

Besides infrastructure enhancements, the Caring SG Commuters Committee has been promoting a more inclusive and caring commuting culture, to encourage commuters to assist fellow passengers who may require help with navigation.

Mr Gerald Giam.

Thank you, Mr Deputy Speaker. And I thank the Senior Minister of State for the answer. I understand that the bus stop codes and names are displayed at the bus stop pole and the bus stop information board. However, the font that is used is relatively small and it is not easily visible to passengers as they are approaching the bus stop. So, it would not give them enough time to be able to press the button to indicate to the bus captain to stop the bus. In fact, the most prominent signage at the bus stop is actually the bus shelter address plate, which is on the top of the bus shelter because the font can be seen from quite a distance away, about 40 metres away at least, in my estimation. So, this will give the commuters a bit more time to prepare to stop, to press the bell to stop the bus.

So, my question to the Senior Minister of State is: can the bus stop name and code be placed on the bus stop bus shelter address plates, instead of what is right now on the bus shelter address plates which is actually not very meaningful to the commuters themselves?

Mr Deputy Speaker, I thank Mr Giam for his suggestion. Certainly, I think we will look at different ways to improve the visibility and how the information is being displayed. I just want to clarify that, today, as he acknowledged, the information – the name, the alphanumeric code and the five-digit code – they are all displayed at the bus stops.

And depending on, from your perspective as a commuter, different people would require the information in different ways and use it differently to help with their navigation. One analogy that I could give is this: it is a little bit like our postal code. If we refer to a particular block, let us say in my area Block 130A Lorong 1 Toa Payoh. It is part of Toa Payoh Crest but it also has a six-digit postal code which is 311130. So, I think both sets of information are useful and they are used for different purposes.

20 Dr Tan Wu Meng asked the Minister for National Development (a) since 2021, how many reports have been received of electronic waste in (i) Clementi Forest and (ii) similar green spaces respectively; (b) what is the approach to addressing such electronic waste which may contaminate green environments or harm passers-by; and (c) what is the timeline and potential learning points regarding the removal of the abandoned refrigerator cited in OneService App in 2022 and removed in April 2023.

Sir, the illegal dumping of electronic and other waste in a public place is an offence under the Environmental Public Health Act (EPHA). Two instances of feedback on improper disposal of bulky electronic waste in forested areas were received and acted upon by agencies from January 2021 to March 2023. Members of the public should properly dispose of any refuse, including large household items, to minimise harm to the environment.

The OneService App, owned by the Municipal Service Office (MSO), is a platform on which Government agencies receive and respond to public feedback. Some cases require multiple agencies to work together. Lapses in communication and coordination between agencies sometimes occur, as in the case of the refrigerator found on state land in Clementi Forest. The National Parks Board (NParks) was first alerted to the incident in March 2022 through the OneService App and sought to arrange for its removal. Unfortunately, due to a miscommunication between agencies, the removal was not done and the case was closed prematurely. There was also no follow-through to check that the refrigerator had, indeed, been cleared. Upon being notified a second time, in 2023, NParks worked with the National Environment Agency (NEA) to clear the refrigerator on 21 April 2023.

MSO has been working with stakeholder agencies to strengthen interagency coordination and this includes NParks and NEA. We do so through staff training to ensure feedback involving multiple agencies is referred correctly, through the interagency feedback management system. Agencies are also requested to close straightforward cases only when works are completed on the ground. MSO will continue to help our partner agencies in attaining a high level of responsiveness to public feedback.

Clementi Forest is not intended for public recreational use at this point in time. Members of the public are encouraged to visit our many public parks and nature parks, and to keep to the designated trails within these areas for their own safety and to minimise impact to the environment.

There being no supplementaries, Mr Louis Chua.

21 Mr Chua Kheng Wee Louis asked the Minister for Education (a) to what extent do primary schools at the annual Primary 1 registration ensure the racial make-up of their students is reflective of Singapore's society; and (b) what measures do schools take to ensure that their students may effectively learn through peer interactions about the lived experiences of different racial and religious groups.

Mr Deputy Speaker, the Primary 1 (P1) Registration Framework balances a number of factors, including the convenience of having the younger sibling attend the same school as the older sibling, proximity to home or ties that the parents have with the school. Within this framework, parental choice during the P1 Registration Exercise impacts the social profile of students in our primary schools.

In primary schools, students learn about living in a multicultural society through a range of subjects. In Character and Citizenship Education, students learn about the major cultures in Singapore, as well as ways to relate to people of different races and religions. In Social Studies, students explore the contributions of different racial communities in the past and how Singapore’s past shaped the racial and religious diversity today. Students also learn the importance of respecting and appreciating the different cultures. Schools also celebrate different cultural festivals and organise learning journeys to museums, cultural and heritage sites to develop a better understanding of peers from different races and religions in Singapore.

The Ministry of Education (MOE) also provides opportunities for students to interact with peers from different backgrounds within and across schools, such as through our Co-Curricular Activities.

No supplementaries. Mr Gan Thiam Poh.

22 Mr Gan Thiam Poh asked the Minister for Social and Family Development to date, how many families have benefited from the Home Ownership Plus Education scheme.

Mr Deputy Speaker, as of 31 December 2022, around 3,400 families have benefited from the Home Ownership Plus Education (HOPE) scheme.

Mr Gan.

I thank the Minister of State for the reply. I just want to understand this programme. So far, what are the things that the families have benefited so far among all these applicants that —

I think Mr Gan is asking what the families have benefited so far from these programmes. Have I heard you correctly, Mr Gan?

Yes, correct. Thank you.

I thank the Member for his supplementary question. It goes beyond his original question, but I would just like to share, with this opportunity, that the benefits include training incentives, employment incentives, conditional housing grant, utilities grant, education bursaries, mentoring and family support as well as family planning incentives.

Mr Gan.

Thank you. I have a further question. Are there people who actually withdraw from this scheme halfway?

Minister of State, did you hear that? You did, okay. I was wondering if you are finding it a bit difficult to hear.

I thank the Member for his supplementary question. Again, it goes beyond the Member's original question but I would like to share that, indeed, there are beneficiaries who have exited the scheme.

23 Mr Liang Eng Hwa asked the Minister for Trade and Industry (a) whether the recent rise in rental prices of commercial properties have affected Singapore’s competitiveness and attractiveness as a business destination of choice; and (b) whether more can be done to moderate further rental increases.

Mr Deputy Speaker, globally, inflation has stayed elevated and the cost of doing business, which includes rental prices, has also increased. The rental index of office spaces in Singapore has increased by an average of about 1.35% per annum in the last three years. While rental for office spaces is higher than the pre-pandemic level, it remains below historical peaks in 2008 and 2015. In the same period, the vacancy rate for office spaces has remained stable at around 11% to 13%.

Between 2023 and 2025, more than 530,000 square metres of office space is expected to be completed. This is about 40% higher, compared to the past three years combined, and can help to cater to the demand and moderate rent increases over time. Rental continues to comprise a modest proportion of overall business costs for most sectors in Singapore. The Government will continue to monitor the market. We are committed to ensuring Singapore’s competitiveness and attractiveness as a business destination.

Mr Liang Eng Hwa.