/akn/sg/hansard/2015-03-10

Hansard, Tuesday, 10 March 2015

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Type
HANSARD
Status
In force
Enacted
2015

Quick answer

About this hansard

Hansard, Tuesday, 10 March 2015 is Singapore HANSARD, cited as HANSARD 13 2015, currently marked in force and first recorded in 2015.

(1)

Estimates of Expenditure for the Financial Year 1 April 2015 to 31 March 2016 - Committee of Supply – Paper Cmd 1 of 2015

[(proc text) Order read for consideration in Committee of Supply [4th Allotted Day]. (proc text)]

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(2)

Estimates of Expenditure for the Financial Year 1 April 2015 to 31 March 2016 - Committee of Supply – Paper Cmd 1 of 2015

[Mdm Speaker in the Chair]

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(3)

Estimates of Expenditure for the Financial Year 1 April 2015 to 31 March 2016 - Committee of Supply – Paper Cmd 1 of 2015

Page: 9

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(4)

Clarification by Senior Parliamentary Secretary to the Minister for Manpower

Mr Hawazi Daipi, I understand you have a clarification to make.

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(5)

Clarification by Senior Parliamentary Secretary to the Minister for Manpower

Thank you, Madam, for giving me the opportunity to make a clarification to Mr Gerald Giam's statement on household income. Yesterday, Mr Giam stated in his speech that almost 85,000 resident households are earning a monthly income of less than $1,000. [Please refer to "Sectoral Minimum Wages", Official Report, 9 March 2015, Vol 93, Issue No 12.]

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(6)

Clarification by Senior Parliamentary Secretary to the Minister for Manpower

These figures come from the Household Expenditure Survey published by the Department of Statistics. What Mr Giam did not mention is that 57% of these 85,000 households are not working. There are many of these retiree households. This information can be found in the same table that Mr Giam had used.

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(7)

Clarification by Senior Parliamentary Secretary to the Minister for Manpower

Page: 10

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(8)

1.00 pm

[(proc text) Resumption of Debate on Question [9 March 2015] (proc text)]

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(9)

1.00 pm

[(proc text) "That the total sum to be allocated for Head Q of the Estimates be reduced by $100." – [Mr Zaqy Mohamad]. (proc text)]

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(10)

1.00 pm

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

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(11)

1.00 pm

Mdm Chair, the Personal Data Protection Act was passed in 2012 and the Do Not Call (DNC) Registry which was set up under the Personal Data Protection Commission is entering its second year of operation.

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(12)

1.00 pm

The DNC Registry works by generally prohibiting calls, SMS and faxes to all individuals whose numbers are listed in the directory. The exceptions to this include where an organisation has an existing relationship with the customer, or where the customer has given his express consent in writing to be contacted.

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(13)

1.00 pm

The idea of the DNC Registry was to prevent customers from getting nuisance calls from sellers. Having personally signed up with the Registry, I can confirm that the number of unsolicited calls I get has dropped significantly. I still get the odd calls here and there and when I tell them I am on the DNC Registry and they should not call, most of the callers apologised and hung up.

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(14)

1.00 pm

However, at the time it was implemented, businesses were concerned that it would affect them seriously. First, for those that required cold calls to be made for sales purposes, this might cut off their livelihood. Second, even for those that were calling existing customers, they would need to incur costs in checking with the DNC Registry and, after checking, check if the customer in question had given them express consent to be called or if he can be called as one with whom they already have an existing relationship.

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(15)

1.00 pm

I noted the creative methods some companies have used to get around this. One mall operator organised a generous lucky draw, but participation required participants to sign a written consent to being contacted for marketing or promotional purposes. If such practices become widespread, this may defeat the purpose of the DNC Registry.

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(17)

1.00 pm

In this context, can the Ministry provide an update on the implementation of the Do-Not-Call rules and Personal Data Protection Act and assess whether it has succeeded in meeting its objectives? Are there complaints from individuals that they are still receiving unsolicited marketing messages?

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(18)

1.00 pm

Also, how have businesses been able to cope with cost of implementation of measures to comply with the DNC requirements? Is there any help from the Government to help businesses mitigate the cost of complying with the DNC requirements?

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(19)

1.00 pm

Mdm Chair, the Personal Data Protection Act has enhanced the privacy of individual identity and data privacy. However, in the course of my work advising unions and industrial relations work, we have encountered a major impediment. This arises in a situation when there is an impending retrenchment exercise to be carried out. The company will consult, inform and negotiate with the union usually a month prior to the date of retrenchment. The affected workers are always never notified and early notice to union is for negotiation and for the union to obtain the list of employees affected and their personal data so that the union can verify if there is any discrimination, disguised retrenchment or even victimisation.

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(20)

1.00 pm

More importantly, unions also obtain their personal data and profile to prepare the job search and look for possible job matches for them. The same goes when unions are verifying negotiated bonus settlements or wage increases and when handling workplace grievances and personal data is involved.

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(21)

1.00 pm

Not every employer is forthcoming and many fear the reprisal from PDPC and, therefore, have used the PDPA as an excuse to not release data to the unions. I urge MCI to consider granting an exemption from the PDPA for such industrial relations issues/cases as it concerns the livelihood, welfare and interests of workers in Singapore.

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(22)

1.00 pm

Madam, we all know what trolls are. Recently, I learned a new term, "broll". It is a meaningful project by a group of NTU students to promote greater civility online. Based on its website, a "broll" is "the bro (brother) who always has your back online. He likes frequently, shares great deals and always comments sensibly" – basically, the opposite of a troll.

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(26)

1.00 pm

Pledge ourselves to be responsible netizens,

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(27)

1.00 pm

Regardless of channel, platform or medium,

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(29)

1.00 pm

Minimise hate-mongering and share meaningful content,

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(30)

1.00 pm

So as to achieve brollgress for our future."

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(31)

1.00 pm

Such ground-up initiatives are great. I believe that the Government can also take the lead in terms of promoting and facilitating a harmonious cyber community based on mutual respect, as well as any new measures to counteract increasing polarisation of views.

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(32)

1.00 pm

Public discourse is an integral part of democracy. Increasingly, people are engaging online and, the anonymity, while enabling greater freedom of expression and disclosure, has also promoted uncivil behaviour, ranging from rude remarks to vicious, cyberbullying and attacks, sometimes with fatal results.

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(33)

1.00 pm

Has the Ministry had the opportunity to study measures and policies in other countries to tackle this problem and, if so, what are the best practices we can adopt for our cyber communities?

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(34)

1.00 pm

The younger generation is engaging online not only through their computers but also all kinds of mobile devices and are, thus, particularly vulnerable. I would also like to know more about recent measures to promote cyber wellness among our young and students.

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(36)

1.00 pm

Thank you, Mdm Chair. I thank Members for their comments and suggestions. The ICT revolution continues to unfold with new services and products that have transformed our lives.

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(37)

1.00 pm

Today, we can read the news while travelling, watch our favourite shows on the go, video chat with our overseas friends, buy things online and even arrange our vacations without going through travel agents. The way we live, work and play is being transformed as

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(39)

1.00 pm

we speak. The end goal must be to bring about a substantial change to the quality of our lives.

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(40)

1.00 pm

Here in Singapore, the Government has made great strides in shaping the infocomm and media or ICM sectors, to take advantage of opportunities from the advancement of technology. Our efforts have been recognised. Singapore tops the latest Digital Evolution Index developed by The Fletcher School at Tufts University in the US. They have assessed that we are most ready to meet the challenges and opportunities of the digital future, by having infrastructure and policies spurring greater innovations. Our earlier Intelligent Nation 2015 plan has contributed to this achievement.

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(41)

1.00 pm

We have also actively supported enterprise development in the ICM sectors under the Singapore Media Fusion Plan. For example, we provide physical spaces for our start-ups to build and nurture their ideas with mentors and potential investors.

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(42)

1.00 pm

With your permission, Madam, may I display some slides on the LED screens?

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(43)

1.00 pm

Yes, please. [Some slides were shown to hon Members.]

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(44)

1.00 pm

Madam, Block 71 is one of Singapore's successful incubation stories. Home to around 250 startups and 1,000 talents, it has become a fertile environment for developing our startups.

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(45)

1.00 pm

An important part of the Block 71 ecosystem is the Games Solution Centre. Since 2011, it has nurtured several local games companies that have made a name for themselves internationally. One example is Springloaded. It developed the game "Tiny Dice Dungeon", which won the "Best-free-to-play" indie game at the Casual Connect Asia game convention last year.

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(46)

1.00 pm

These past achievements motivate us to do better. Looking ahead, how we choose to use technology will be even more critical in making us a more competitive economy, an inclusive society and a Smart Nation. Pervasive connectivity and technology can allow us to further develop capabilities and deliver more personalised services to citizens.

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(47)

1.00 pm

Mr Zaqy Mohamed asked how the Infocomm Media Masterplan complements the Smart Nation vision. The Masterplan plays an integral role in developing the ICT eco-system, such as infrastructure, enterprises and manpower, to complement the rollout of the Smart Nation initiatives. In doing so, we will develop a strong and vibrant ICT ecosystem that provides opportunities for everyone.

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(49)

1.00 pm

The Committee members involved in the Masterplan have contributed tremendously and will be completing their efforts when the report is released later this year. I thank them for their contributions and will give a brief update on some earlier ideas and share a selection of the newer ones.

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(50)

1.00 pm

One of the key enablers to achieve our Smart Nation vision is a robust and pervasive infrastructure known as the Smart Nation Platform or SNP. This platform will bring together a sensor network, better wireless coverage and data analytics abilities to provide better situational awareness for the delivery of public services.

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(51)

1.00 pm

The Aggregation Gateway Box (AG Box) and Heterogenous Network (HetNet) form the backbone of this platform. These two ideas were released as part of the Infocomm Media Masterplan consultation document last year. Mr Zaqy Mohamed and Mr Gerald Giam asked for more details on IDA's infrastructure plans.

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(52)

1.00 pm

IDA and the technology community will develop the HetNet further through the HetNet Lab that will be launched later this year. Solutions from this collaboration will be showcased at the Lab, hosted at the JTC Launchpad @ One-North. As part of the trials for SNP, IDA plans to deploy about 100 AG Boxes to meet agencies' immediate needs in areas, such as Orchard Road and Geylang. IDA has called tenders for this deployment and is expected to announce the results by the middle of this year. It is, therefore, inappropriate to provide any cost estimate at this stage.

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(53)

1.00 pm

The SNP is not a public telecommunications network like the mobile cellular networks of Singtel, Starhub or M1. It is the core for the backhaul and analytic capability that will support the roll out of the Smart Nation applications. Like all Government ICT systems, there will be components that the Government will own and there will be components that the private sector will provide, such as the main fibre transmission network. I am sure that Members will agree that they will prefer the data in the Smart Nation Platform to be stored in servers owned by the Government, rather than stored in private company servers.

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(54)

1.00 pm

In addition, as Smart Nation data will be essential to execute a whole host of public functions from public security to healthcare, it is important, especially in a crisis, that the bandwidth to support such data transfers is resilient. These factors mean that it is not prudent for the underlying infrastructure to be completely outsourced.

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(55)

1.00 pm

Madam, Mr Gerald Giam was also concerned the Government might eventually sell the Smart Nation Platform to a private player – and I quote – "like what happened to OpenNet, which was sold to a Singtel-owned company in October 2014".

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(57)

1.00 pm

I find his position on the issue strange. He first asked why there is a need for the Government to build its own SNP. But he later expresses the concern that the SNP may later be sold to a private party. As I have explained, the SNP will have components that are owned by the Government and other components that are provided by private companies.

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(58)

1.00 pm

In any case, the example he gave, that the Government sold OpenNet to private companies, is wrong. OpenNet was not owned by the Government, but by a consortium of private companies. The sale of OpenNet to NetLink Trust was, therefore, a sale between private entities. IDA's involvement was to evaluate and approve the sale from a regulatory perspective. As part of the approval, IDA imposed certain safeguards to mitigate potential competition concerns and ensure the independence and neutrality of the post-consolidation entity.

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(59)

1.00 pm

Beyond infrastructure, I agree with Mr Zaqy and Ms Jessica Tan that we will need the right talent base. Our CODE@SG movement for the young aims to promote better use and appreciation of ICT in an increasingly digitised world. It will also introduce them to an interesting and fulfilling career choice.

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(60)

1.00 pm

One initiative is the "Code for Fun" Enrichment Programme, in which students get to learn coding and computational thinking in a fun and engaging manner. They create animations and games using robotic kits and, Scratch, a visual programming language.

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(61)

1.00 pm

Madam, we have received positive responses on the programme in some of the 22 schools that IDA reached out to last year. I visited Wellington Primary School last month and was impressed by the passion and innovations of these students. They have not only shown great flair for coding and computational thinking, but also enjoyed themselves in these programmes.

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(62)

1.00 pm

A game they created, Harvest City, won the overall championship award, best game award and most popular game award in last year's National Primary Games Creation Competition.

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(63)

1.00 pm

Madam, with your permission, I would like to show a video taken in some of these schools.

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(64)

1.00 pm

Yes, please. [A video was shown to hon Members.]

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(66)

1.00 pm

Thank you, Madam. Madam, we are also committed to helping our ICT professionals up-skill and to developing future ICT leaders. First, by providing opportunities for them to be involved in major exciting projects, such as helping us to build our Smart Nation. Second, by enhancing the existing competency framework and a suite of training programmes and incentives.

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(67)

1.00 pm

For example, IDA is working on an Open Online Learning programme and attachment programme that will help ICT professionals gain recognition via certifications and new skills through hands-on projects. IDA will collaborate closely with industry associations and WDA to make the best use of SkillsFuture for the ICT sector.

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(68)

1.00 pm

I will next touch on some of the media ideas that are being explored under the Infocomm Media Masterplan.

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(69)

1.00 pm

Mdm Chair, media consumption patterns have changed significantly over the years. Today, instead of enjoying TV shows in front of television sets, many people prefer watching them on the Internet using a handheld device. Several companies have recognised this and seized the opportunities to innovate and gain fans. One example is Viddsee, a two-year-old online video platform that enables filmmakers from Singapore and Asia to share their stories with a large Internet audience. In two years, Viddsee has grown into a team of seven and gained a sizeable following with millions of audiences across Asia and America.

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(70)

1.00 pm

Mr David Ong, Mr Baey Yam Keng and Miss Penny Low asked about our plans to strengthen our media industry's capabilities, given these changing consumption trends. Madam, MDA is exploring several ideas under the Infocomm Media Masterplan to nurture homegrown talents and spur the development and distribution of innovative made-in-Singapore content.

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(71)

1.00 pm

Ms Kuik Shiao-Yin suggested a physical space for media start-ups. MDA is looking at developing a Creators' Space in Singapore. This idea is about nurturing digital film and video sectors holistically by increasing collaborations within the community. MDA will work with industry partners to organise master-classes and workshops to hone creators' skills to produce content and better engage audiences on digital platforms.

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(72)

1.00 pm

I am pleased to share that Disney's Maker Studios will be our first partner under this initiative. Maker Studios is one of the largest international multi-channel networks for digital video content. More details on this partnership will be released later.

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(73)

1.00 pm

Ms Kuik Shiao-Yin also spoke about plans to promote local films and music. When assessing film applications, MDA does consider accolades received at recognised film

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(75)

1.00 pm

festivals, besides commercial success. Furthermore, the New Talent Feature Grant under The Singapore Film Commission (SFC) focuses on talent development and not commercial viability. Through this grant, we have seen emerging filmmakers, such as M Raihan Halim. His film "Banting" was the first feature-length Malay film to be made in Singapore since the 1990s.

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(76)

1.00 pm

The SFC also widens exposure of local films on digital platforms through the "Watch Local" initiative and works with TV broadcasters to air home-grown films. On the music front, the National Arts Council, under MCCY, is working with radio stations, such as MediaCorp Radio and SAFRA, to provide local music with adequate exposure. Lush99.5 has also actively promoted local musicians performing at "live" platforms, such as the Made In Singapore Showcase at Music Matters LIVE.

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(77)

1.00 pm

MDA is considering expanding SFC's initiative to further develop and promote local films. Firstly, this involves introducing a Film Lab, an annual mentorship programme where expert practitioners and veterans from the region are invited to coach our film talents.

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(78)

1.00 pm

Secondly, to create more opportunities for talents to receive mentorships and gain access to international markets, SFC would cultivate a network of film industry veterans who can play an active role in nurturing them.

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(79)

1.00 pm

Finally, expanding on the "Watch Local" initiative, MDA would work with agencies to screen local films at more venues, including schools, community clubs and international festivals.

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(80)

1.00 pm

MDA is not just focusing its efforts in the film and video sectors. As demand for Asian content grows, we see more local television production companies partnering international broadcasters, such as HBO Asia, in content production. One example is Grace, which premiered last year.

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(81)

1.00 pm

Henceforth, MDA aims to make more media companies the Partner-Of-Choice for international companies. This includes securing more partnerships with international broadcasters to co-produce television content ranging from dramas to animations.

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(82)

1.00 pm

On the infocomm front, I share similar views with Mr Zaqy Mohamad and Miss Penny Low on the the increasing vibrancy in our local start-up community. To further this momentum, IDA has developed a conducive environment for young start-ups by offering more collaborative spaces and mentorships with industry.

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(84)

1.00 pm

Recently, I launched a new facility called "BASH", which is short for Build Amazing Start-ups Here, at the JTC LaunchPad@ one-north. An initiative by the Infocomm Investments Pte Ltd under IDA, this facility provides start-ups a one-stop space for them to network and receive guidance from investors, as they build business traction and market access.

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(85)

1.00 pm

One local start-up that I interacted with during the launch is eVida. Their product, eBOS, is the first bed occupancy sensor that prevents falls and bedsores in the ward environment. eBOS was trialled in several public hospitals and private nursing homes and is developing its product further at IDA Labs.

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(86)

1.00 pm

Miss Penny Low asked about ICT assistance for social enterprises. IDA provides assistance schemes, such as Enhanced iSPRINT, which are open to social enterprises if the ICT project they embarked on has productivity merits. These projects include shared ICT platforms that facilitate the use of common business tools. IDA is open to collaborate with our community partners to explore ICT platforms to facilitate corporate social responsibility.

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(87)

1.00 pm

Madam, IDA will also continue to help our seniors, low-income households and people with disabilities to use infocomm in their daily activities through its digital inclusion efforts. One recipient who has benefited from these efforts is Mohd Sayfullah, a 12-year-old boy with cerebral palsy. He has minimally intelligible speech, posing difficulties for others to understand him. This picture shows him using a TouchchatHD application on a tablet. With the training he received at the Infocomm Accessibility Centre, a joint initiative by IDA and SPD, he is able to communicate independently and effectively. This has enabled Sayfullah to be more involved in school and the community.

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(88)

1.00 pm

Beyond these inclusion efforts, we want to improve our public services for citizens. Miss Penny Low asked if there are new areas that design can play a role in. Madam, the Design for Public Service Transformation programme by DesignSingapore Council, or Dsg, aims to help public service innovation, starting with the healthcare sector. Dsg and MOH will look into designing services and experiences for the elderly within the community and hospitals. Dsg is also working on a programme to assist companies in other sectors to innovate and transform using design. For example, Dsg and IDA Labs are collaborating to sharpen the competitive edge of our infocomm companies. These companies will work with our designers to develop user-centric products for our elderly.

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(89)

1.00 pm

Madam, I have explained how design can open up new value propositions for our companies and services. Design will continue to be an important driver of success in the dynamic global market and we will need to strengthen capabilities in the design sector on an even larger scale.

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(91)

1.00 pm

I am pleased to announce that a Design Masterplan Steering Committee (SC) will be formed to spearhead the development of the next Design Masterplan. This Committee, involving members of the public and private sectors, will be reviewing several areas. These include the role of design as an enabler for productivity and ways for design to be a higher value-added profession.

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(92)

1.00 pm

Mdm Chair, earlier, I spoke about the possibilities that our Smart Nation journey will create. To realise these opportunities, we must ensure our infrastructure is resilient and secure, protect personal data and information and create a safe and conducive environment online. The Government, however, cannot do this alone. Therefore, we have partnered the private and people sectors to achieve these collectively desirable outcomes.

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(93)

1.00 pm

Everyone, Madam, has a part to play. But underpinning all of this is the communications infrastructure that is at the core of our knowledge economy and society. I would like to assure the House that my Ministry takes the provision of resilient and quality mobile services seriously. In fact, Singapore continues to be one of the few countries to impose mandatory Quality of Service (QoS) standards. Since 2014, operators have generally complied with the 3G QoS requirements.

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(94)

1.00 pm

Mr Vikram Nair asked about in-building service coverage. IDA tests the indoor coverage of a sample of buildings each month and had, in April 2013, significantly enhanced the in-building standard. To date, all three mobile operators have met the in-building standard in the 3G QoS framework. We will continue to review this framework.

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(95)

1.00 pm

Madam, in addition to the 3G QoS framework, IDA has begun monitoring and publishing 4G service coverage to promote greater consumer awareness. In the first set of quarterly results released last month, all three mobile operators attained more than 98.9% outdoor coverage. IDA will use the results of its ongoing surveys to determine the appropriate QoS standards.

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(96)

1.00 pm

Since October 2014, IDA has also crowd-sourced measurements of consumers' Quality of Experience (QoE), through the pilot MyConnection SG application. This application collects data on subscribers' experience, including latency and network coverage. We are among the first few countries to do this. I would like to thank those who have participated in this pilot.

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(97)

1.00 pm

In the area of resilience, IDA has put in place several regulatory frameworks. The Telecom Service Resiliency Code is one such example. In addition, IDA implemented a Mobile Audit Framework last December, which requires operators to address identified weaknesses in their networks. IDA is looking at implementing a similar framework for fixed telecom networks in the second half of this year and will continue to work with our operators to boost

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(99)

1.00 pm

resilience. I hope this addresses the query by Mr Vikram.

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(100)

1.00 pm

Mr Png Eng Huat raised the issue of Premium Rate Services (PRS), citing a resident's experience. According to the PRS Code, providers must take steps to authenticate the user and ensure that explicit purchase confirmation is received prior to service activation. The resident's experience seems to be at odds with what would be expected for a PRS. Nevertheless, if Mr Png wishes to furnish more information to us, IDA will be able to look into the matter in greater detail.

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(101)

1.00 pm

More generally, Madam, the number of PRS cases has fallen significantly over the last few years. This could be due to increased awareness and use of PRS barring. I wish to clarify that, in addition to PRS providers, the PRS Code also applies to mobile service operators, acting as billing operators. In fact, I understand that PRS providers and mobile operators do investigate complaints and may offer goodwill waivers to the end-users – especially vulnerable users – on a case-by-case basis. In the event that there is unsolicited charging, IDA expects them to refund the consumer and may take the providers to task under the PRS Code.

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(102)

1.00 pm

Madam, my Ministry takes consumer protection seriously. We will continue to monitor end-users' feedback and industry developments to ensure that the PRS regulations remain relevant.

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(103)

1.00 pm

I am glad to report that our regulatory efforts in this area are top-ranked, globally. The World Economic Forum's Global IT Report has ranked Singapore first in the world for its Political and Regulatory Environment for the past five years. We are committed to reviewing and updating our regulatory frameworks to stay abreast of industry and consumer developments.

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(104)

1.00 pm

Besides improving our telecom services, we need to step up efforts to safeguard our cyberspace. As Mr Zaqy Mohamad and Mr Low Thia Khiang have noted, large-scale cybersecurity breaches continue to make headlines around the world. Such attacks are expected to become more frequent and sophisticated. This is why we will establish the Cyber Security Agency of Singapore (CSA) on 1 April 2015 to take a holistic approach in navigating an increasingly fraught cyber landscape. Its roles will include developing a national cyber-security strategy, engaging the private sector to promote cyber security by design, boosting manpower and industry development, building local and global partnerships, monitoring national and sectoral cybersecurity readiness and threat detection. CSA will also work closely with agencies, including the National Security Coordination Secretariat (NSCS) and critical sectors, such as energy, transport and water, to mitigate growing cyber threats.

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(106)

1.00 pm

As part of efforts to develop a vibrant ecosystem, cybersecurity research will be an important component of CSA's work, together with the National Research Foundation (NRF) under PMO. Seven research projects totalling $42 million have been awarded so far from NRF's $130 million grant for national cyber-security R&D programmes.

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(107)

1.00 pm

I would like to emphasise that tackling cyber threats is a shared responsibility. No sector, agency or organisation can do it alone. The Government, ICT industry, organisations – even individual users – must work together. A key focus for CSA is increasing our levels of outreach and engagement with the private sector, industry partners and our people.

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(108)

1.00 pm

Madam, as aspects of our lives, identities and personae become deeply intertwined with the technology that pervades our lives, protecting our personal data becomes ever more critical.

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(109)

1.00 pm

Our Government has taken the first step, with the introduction of the Personal Data Protection Act (PDPA) in 2012. Through consultations with the public, private and people sectors, we formulated a framework of regulations and guidelines that balances the interests of consumers and businesses.

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(110)

1.00 pm

Today, the Personal Data Protection Commission (PDPC) continues to work closely with stakeholders through public consultations. It has continually sought industry's input for Advisory Guidelines that establish sectoral norms on personal data protection and for specific areas of interest. PDPC will continue to develop additional guidelines with public feedback.

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(111)

1.00 pm

Mr Patrick Tay's query on the difficulty that unions face in obtaining personal data of employees affected by retrenchment exercises, or in their labour negotiations, is timely.

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(112)

1.00 pm

Madam, I would like to clarify that the PDPA already provides exceptions for such purposes. For example, in the case of retrenchment, organisations can disclose personal data of affected employees to unions, to allow the latter to carry out their duties in representing the employees. Such personal data would be collected from the employees for the purpose of managing or terminating their employment relationships.

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(113)

1.00 pm

Consent to disclose such information to help unions – and, ultimately, the employees – is not required under the PDPA. However, employees must be informed that their personal data may be collected, used and disclosed for such purposes. And this notification can be done as part of the organisation's general HR policy or inserted in the employment terms.

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(115)

1.00 pm

Where unions face difficulties in such cases, PDPC will be able to provide the necessary advice.

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(116)

1.00 pm

At the same time, Madam, PDPC has embarked on numerous outreach programmes, including briefings, workshops and seminars. It has reached out to over 18,000 participants since 2012. And in particular, PDPC is focused on helping SMEs and has introduced subsidised training courses for their Data Protection Officers.

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(117)

1.00 pm

The Do Not Call (DNC) Registry under the PDPC is entering its second year of operation. Since 2 January 2014, more than 780,000 numbers have been registered with the DNC Registry and over 5,000 organisations have set up accounts with the Registry.

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(118)

1.00 pm

There may be organisations that have the impression that the cost of complying with the PDPA is onerous. As I have said during the debate on the PDPA, some cost is inevitable in complying with new requirements. But organisations need not put in place costly IT systems or hire external consultants to ensure compliance. There are self-help resources and checklists on PDPC's website which organisations can use to help them understand their obligations and the steps they need to take. So, I encourage our organisations to take advantage of these avenues of assistance.

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(119)

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Given how new personal data protection regulation is in Singapore, we continue to devote substantial resources to educate the public so that individuals are aware of the responsibilities organisations have to them. Where there are consumer complaints against organisations, PDPC will investigate and take appropriate action. We thank members of the public who have highlighted instances of organisations breaching either the DNC rules or the PDPA provisions. So, I hope this addresses some of the concerns raised by Mr Vikram Nair.

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Madam, in the media content space, our content regulatory framework is guided by three basic principles and it is important we reiterate this. First, we need to protect the young while providing more choices for adults. Second, we need to uphold community values and support racial and religious harmony. MDA alone does not determine what is acceptable to the community or aligned to societal norms. It actively consults the industry and the community to gain insight into our people's diverse views and sentiments. Finally, we need to safeguard our national and public interest.

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We will continue to review and update our legislation and regulatory frameworks to keep pace with changes in the media landscape, bearing in mind these three principles.

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But regulation alone is not enough. Our content regulatory framework must be complemented with effective public engagement and empowerment. Therefore, we work

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closely with the private and people sectors to develop public awareness and education programmes relating to media literacy, cyber wellness and information literacy.

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(125)

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In 2012, the Media Literacy Council (MLC) was set up to step up public education, which it is driving along three themes: Be Safe, Be Smart and Be Kind Online. MLC will also advise the Government on Internet trends and policy implications. This came against a backdrop of increasing digital participation and the consequent rise in issues, like cyberbullying, cyber vigilantism and uncivil online interactions.

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(126)

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Safer Internet Day (SID) was observed for the first time in Singapore in 2013, with MLC leveraging the international event to further increase public awareness and learning through a national campaign.

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(127)

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SID 2015 took place on 10 February. Building on the global theme of "Let's Create a Better Internet Together," MLC launched a public education campaign titled "Recognising the Good". This year's campaign aims to promote positive contributions to the Internet by acknowledging individuals who have displayed positive online behaviour and highlighting that we all have a role to play in making the Internet a better place.

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I am heartened to know that there are many groups of people coming together to use the Internet for social good. One example is The Hidden Good, an online movement started by Leon Heng and Rovik Jeremiah Robert. Instead of focusing on the negativity in the online space, the duo decided to create a platform to uncover and share the good in our society and inspire others do the same. So, the efforts of Singaporeans like The Hidden Good, multiplied by the power of the Internet, help to make Singapore a great place to live in, both online and offline.

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(129)

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Madam, at the same time, to promote information literacy, NLB has rolled out its S.U.R.E. Campaign from 2013 to raise public awareness of the need to learn to search and sift for facts and reliable information from today's plethora of sources spanning all forms of media. In a simple manner, S.U.R.E. – which stands for Source, Understand, Research and Evaluate – captures the essence of a critical life skill for the 21st century.

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In conjunction with SID, S.U.R.E. aims to promote a nation of discerning users who are skilled at both handling media messages and complex information needs meaningfully.

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So, I hope this addresses some of Mr Baey Yam Keng's concern on promoting a harmonious cyber community.

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Madam, let me just reiterate that the infocomm, media and design sectors are seeing exciting developments. Our Government is committed to working with the private and people sectors to improve the resilience of our infrastructure, enhance the security of our cyberspace, promote cyber wellness among our people and to seize the opportunities that infocomm, media and design present to build a better quality of life for all of us, as part of our journey towards a resilient, safe and secure Smart Nation.

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Mr Baey Yam Keng, you can take your two cuts together.

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(135)

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Madam, our National Archives has a rich repository of materials, including audio-visual and sound recordings, Government records, maps and building plans, photographs and posters. Presently, researchers can request to reproduce copies of records, subject to prior approval, I quote, "if this is required from transferring agencies and donors". This is according to the National Archives' website.

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I would like to ask under what conditions approval would be granted and whether the Government would consider making it easier and cheaper for users to use these materials in artistic endeavours and non-profit, non-commercial projects, especially when the project would help to raise awareness of Singapore's history and promote patriotism. Examples of projects could include short films, memes and use of icons to raise funds for charity.

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I would like to seek clarification regarding the use of such materials online. For example, when a certain image is uploaded onto a blog or website, would that be permitted? In addition, would the creation of images involving modifications to icons, such as Teamy the Productivity Bee or Singa the Lion, be allowed?

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Next, is there a time limit after which the copyright on any image or material will expire and be freely available to be used by the public? For example, if a photo had been donated to the Archives by Singapore Press Holdings, would that be free for reproduction after a certain number of years, making it more accessible for the public to make use of these materials?

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(139)

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Next cut, on translation. Madam, with increasing globalisation, demand for translation services has been growing steadily at 5% annually worldwide. The global market was valued at US$34.7 billion last year.

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According to research firm Common Sense Advisory, Singapore's language service providers (LSPs) earn most of their revenue from finance, insurance, wholesale and retail trade. Their main clients are multinational corporations and Government agencies.

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The clientele profile is not surprising as the standard of translation required for Government work and businesses is expected to be higher. Although there have been quite a number of glaring and humiliating mistranslations by some Government agencies in recent years which I had spoken about in this House, most of the translated materials are of an acceptable standard.

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(143)

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I am sure our various Government agencies would have learnt by now that translation is not a job for amateurs, foreign service providers or translation software. Besides terminology unique to each sector and industry, there are also regional differences, national, cultural and contextual nuances which must be taken into account in order to achieve accurate and appropriate translations.

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(144)

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While official figures are not available, the Business Times had estimated from local translation companies it researched that this sector has been growing at a high single-digit rate in recent years. The highest demand has been for simplified Chinese-English translations due to "Singapore's strong economic ties with China". We should ride this trend and nurture and upgrade our local translation expertise.

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I would like to ask the Ministry for an update on the plans to nurture future translators and professionalise the industry through measures, such as accreditation. I would also like to ask if the Ministry could share with this House data on the size and profile of our translation sector.

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Next, it is important that our Government supports translators who choose to join the Civil Service with attractive career paths and salaries. In addition, when procuring such services, where appropriate, there should be a good framework to demand, respect and pay for professional translation services. The Civil Service should take the lead in demonstrating our commitment to maintaining high standards in this field. So, I would like to ask the Ministry how it intends to do so.

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(147)

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Madam, our four national languages – English, Chinese, Malay and Tamil – are major languages in the world. We have close links to regional economic powerhouses which use these languages. Not only should we raise the level of our current expertise, we should also explore niche areas, such as Chinese-Malay translation services.

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While it is true that the majority of commercial clients may focus on the price and speed of translation services and treat it as a commodity, the bigger corporations will not take such a risk and would demand quality work. We should focus on this segment of the market and avoid competing with cheap translation services offshore.

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Mr Arthur Fong, take your two cuts together.

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Thank you, Madam. Madam, we are celebrating SG50 this year. Many events and activities will mark SG50. One such successful project, the Singapore Memory Project, is one where I believe that many young Singaporeans can begin their learning journey of Singapore's history. The last time I visited the website, 423,122 memories were added.

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The knowledge of the fight against what I call the 3Cs are remote to many younger Singaporeans. The periods of Colonialism, Communism, Communalism and, later, Separation, were turbulent times, just as there were many defining moments for Singapore.

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(153)

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Our libraries' archives have a wealth of collection of our national history, as well as different milestones of our nation building. Aside from these collections and archives, how else can we promote and communicate to our younger and future generations the history of Singapore?

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(154)

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Madam, my next cut. I declare my interest as a member of the Board at NLB. The libraries have seen an increase in visitors steadily for the past few years, in fact, no less than 25 million a year. I am aware that even tourists have made it a point to visit, as they have heard so many good things about our libraries.

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The libraries have made much effort to redesign library spaces and always exploring innovative and practical ways to increase the positive experiences of library-goers.

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(156)

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There are some popular libraries, especially the community libraries that have some issues of seating availability. Can the Ministry share some of the plans that are in store to tackle this and to improve the experience of library-goers?

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(158)

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Madam, as Singapore celebrates 50 years of Independence, there is renewed interest in our shared past as we look back on the difficult early years of our Singapore Story.

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(159)

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Naturally, we want Singaporeans to be able to understand our history and how it has shaped our current and future national identity. It is, therefore, important that both researchers and members of the public must be able to access easily material that relate to our past.

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(160)

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At the last Budget debate, I asked for declassification of Cabinet papers but was rejected by the Minister and he said that all Government records beyond a 25-year period are deemed as public archives.

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(161)

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However, one of the current problems researchers have raised is that the researcher still needs to get approval from the relevant Ministry or agency to access the document. I acknowledge that there are certain situations where the release of documents may be denied for particular purposes but the existing process is inefficient and it is also unclear what the reasons are for the decisions made.

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(162)

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One possibility to make the process more efficient would be to have a structured declassification system for materials. When documents are transferred to the National Archives after the 25-year period, can we have documents categorised as "Restricted" and "Confidential" to be automatically unclassified? At the same time, material marked as "Secret" will still be subject to requests and approval by the relevant Minister. Such secret material can also be subjected to extended closure.

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(163)

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Secret material that is subject to extended closure should still be governed by clear guidelines that state the reasons to be considered, together with the period of extended closure.

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(164)

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Mdm Chairman, as a boy, I frequented the Queenstown Community Library as it was a short walk from my home. It was the Republic's first full-time branch with basic and functional design. Our then Prime Minister, Mr Lee Kuan Yew, highlighted that the Queenstown Library not only provided access to books which few could afford but because it also served as a "sanctuary of peace and quiet where concentration is

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(167)

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Since then, our libraries have evolved. The boutique Library@Orchard, for example, has impressed many with its modern, chic and cosy spaces. It is built with the user in mind. The library has four clusters for Music, Dance, Theatre and Film. This supports creativity, learning and entertainment. The Library@Orchard also facilitates community spaces where Arts can be brought to the public, as well as a cavern for peace and sanctuary for the individual user.

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(168)

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I would like to ask the Ministry whether Singaporeans could look forward to more of such libraries being introduced to our heartlands. Apart from new libraries, will our older libraries in the heartlands be upgraded to incorporate such innovative designs and concepts?

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(169)

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Mdm Chair, Lau Pa Sat is only open on Saturday and, if you are a wandering spirit from Central Europe, you will need a visa to visit Singapore during the seventh lunar month. Confused? Well, so were many others when Lau Pa Sat was translated on our road signs in Tamil to" Lau Pa Saturday" or "sani" in Tamil and the Your Singapore tourism website translated the "Hungry Ghost Festival" to "Zhong Ya Li Gui Jie" which is "Hungarian Ghost Festival". These are just two of the examples of how important it is for translation standards to improve.

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(170)

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Therefore, I would like to ask the Ministry's update on the progress of the National Translation Committee in standardising official translations and raising translation standards.

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(171)

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Mdm Chairman, the National Translation Committee was set up about a year ago, announced in COS 2014, to enhance the Government's translation capabilities and produce quality translation in Government communication materials. This, in turn, will shape the standards of the vernacular languages used in the community not just by the general public, but also among our local school students.

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What are some of the Committee's plans to improve translation standards in Singapore which, inadvertently, will shape the proper use of Mother Tongue and vernacular languages in our community?

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(175)

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Madam, this year, we will celebrate our 50th year of Independence. I agree with Mr Arthur Fong that, beyond celebrations, it is a time to reflect on our history and for us to appreciate the journey of our nation and people. It is also important to continue to reach our young people and future generations. I will now share how both the National Library and the Archives can play a role in this.

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(176)

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Mr Baey Yam Keng asked if we can increase access to the rich content that resides in our libraries and archives. Our National Library and the National Archives play an important role in safekeeping records of Singapore history. The National Library is a premier resource centre on works about Singapore and the region. It has about one million books, manuscripts, newspaper issues, letters and so on, published in and about Singapore. Complementing the National Library, the National Archives safeguards Government records, including Government files, photos, plans and maps, speeches and oral history records that document our nation-building journey. So, together, the National Library and National Archives hold a collection of over five million items on the history of our nation.

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(177)

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In 2012, as part of the restructuring of MCI, NAS was transferred to the National Library Board (NLB). Since the transfer, NLB has accelerated digitalisation and access. Over 800,000 e-items have been published online in the last few years, including materials like maps, development plans, books and photos. Last year, the NLB also launched HistorySG, an online encyclopaedia of critical events for our students to learn more about our history. We have also made available online over 1,000 oral history interviews. People can now stream the recollections of different personalities, such as the likes of Ms Elizabeth Choy, Mr S Rajaratnam, Pak Zubir Said, Mr David Marshall, as long as they have a computer and Internet access.

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(178)

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To facilitate access to these rich materials, NLB launched OneSearch last year. It is a portal that allows users to search across library and archive databases with ease. Mr Baey asked if the use of archival materials can be made more affordable. Currently, NAS charges most materials at a rate that is less than 20% of commercial rates. NAS also heavily subsidises educational use and offers them free to partners, such as MOE and NHB, to promote Singapore's history. Reproductions or modifications of these materials would depend on the access conditions set by the donors or copyright owners. We understand there is interest in images that are owned by the Government or have expired copyrights and we are prepared to review and lower charges. As long as there are no copyright restrictions, it is acceptable for images to be posted online. Regarding modifications, I think we should be mindful to treat materials with respect, especially if they feature important national icons.

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(179)

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Mr Low Thia Kiang asked about making more non-sensitive documents available. The numerous treasures, such as maps, plans, publications, speeches and oral history recordings, have been made available to the public wherever possible. More television programmes,

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exhibitions and books have been produced using these resources. They have extensive reach. For instance, our archival materials were used for over 80 Public Service Broadcast programmes last year. Also, over 100 exhibitions used materials from the library and archives last year. This works out to say, two exhibitions a week and at least 120 books were published containing reproductions of content as well. So, I am sure we will see more heritage content this year as part of SG50 celebrations.

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Over and above these, NAS also receives requests to view specific old Government files. There were about 60 such requests last year and NAS has facilitated and released file records in most cases. So, the structured process that Mr Low mentioned in his speech is actually already in place. These requests are usually made by researchers for scholarly projects, such as in writing books. Some examples include Loh Kah Seng's book on the Bukit Ho Swee Fire and the biography of Tan Siak Kew, the late pioneer businessman who founded the then-Nanyang University.

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(183)

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Madam, besides the materials I shared about earlier, there are also many records that we hope to seek citizens' help to make available. Mr Fong is interested to know how to get young people interested in history; I think this could be something that they will enjoy.

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(184)

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The Straits Settlements Records consist of over a million handwritten pages. These documents date back to the 1800s and include letters written during Raffles' administration in Singapore. These letters shed light on the personal and political considerations surrounding the establishment of a British trading centre in Singapore in 1819. These records are just some of the amazing treasures not yet made available online. The key challenge is that they were written in elaborate cursive penmanship which is not machine-readable.

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(185)

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Besides the Straits Settlements Records, thousands of old photos have been donated or transferred to the Archives without descriptions or titles. With our physical landscape changing so quickly, we can certainly tap on the knowledge and wisdom of the public to do this quickly and effectively.

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(186)

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NAS will roll out a Citizens Archivist portal this weekend to involve the public to transcribe old records and to identify people, places and events in old images. While this is a first for Singapore, other institutions, such as the Australian National Archives and the Smithsonian Institution in the US, have embarked on similar endeavours with very positive results. We hope we can do the same to enrich the archival collections available to the public.

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(187)

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To further facilitate access to archival content, we will be improving our facilities for better physical access. The Memories at Old Ford Factory will undergo a major revamp. This beautiful art-deco building along Upper Bukit Timah Road was opened in 1941 by Ford Motor

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(189)

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Company of Malaya for motorcar assembly. It became famous for its significance during World War II. It was in the Boardroom of this factory that the British surrendered to the Japanese on 15 February 1942.

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(190)

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World War II was an extremely difficult period in history and we need young people and future generations to understand what we went through. The Old Ford Factory is now home to a World War II exhibition on life during the Japanese Occupation. We will be renovating this gallery. Stories of pre-war, wartime and post-war Singapore will unfold through different zones of the museum. More interactivity will be incorporated to help recall traumatic times. This gallery will open in 2017 when we commemorate the 75th anniversary of the fall of Singapore.

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(191)

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Madam, the National Archives (NAS) at Canning Rise will also be renovated starting this year. Here, NAS conducts important conservation and preservation work on old records. The Archives building also houses a public reading room for accessing records on site. We will be upgrading the conservation labs and reading room and we will open a public gallery. The inaugural exhibits at the gallery will showcase some constitutional documents of Singapore and this would help visitors better understand Singapore's journey into nationhood. Some examples include the envelope on which Mr Lee Kuan Yew and Tunku Abdul Rahman penned the terms of merger, as well as the proclamations of merger and Separation.

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(192)

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Mr Arthur Fong's comments remind me of the Singapore Memory Project. Some of you might recall that this was started some five years ago. In the Prime Minister's National Day Rally speech in 2011, he wanted the movement to inspire all Singaporeans to share their memories of Singapore. And our hope was that the wealth and diversity of personal and shared memories can connect us and bond us as a community.

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The project is helmed by NLB and the team has built extensive partnership with volunteers and interest groups and reached out to Singaporeans through schools, community events, libraries and even the private sector.

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(194)

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In 2014, NLB launched the irememberSG fund to encourage individuals and groups to come forward to create unique products like films, exhibitions and books about Singapore. An overwhelming number of applications were received and, finally, 74 projects were chosen. I am excited to see these projects come to fruition this year as part of our SG50 celebrations. Allow me to share some examples.

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(195)

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Nafisah Alias, Afiqah Mazlan and Geraldine Lee came together to set up a website featuring Malay pioneers of Early Singapore. Their one-stop portal, Warisan SG, will showcase unsung heroes and heroines of the Malay community who have made an impact

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(198)

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Another project called First Homes by Jean Loo and Yang Huiwen, is a digital art installation that will celebrate Singaporeans' memories of their first homes. One such home is Mui Hong's Kampong Buangkok home. Mui Hong is the Kampong landlady. She is in her 60s now, and enjoys gardening and harvesting fruits to share among neighbours. When asked what home meant to her, she mused that the Chinese character which is pronounced as "jia" (家) has a few strokes on top, sheltering more strokes below; just like how a home should be one that would allow many to live harmoniously with one another.

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Beyond individual projects, the greater achievement of the Singapore Memory Project is that it has started a national movement and inspired similar memory collection projects from other public agencies, community groups and private companies. Some schools have started their own memory projects. Community groups like the Boon Lay Youth Executive Committee, in collaboration with Jurong Junior College, started the Boon Lay Heritage Project.

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(200)

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Madam, as the memory project turns five years old, we welcome communities to come forward to take the reins. And, together with our National Library, bring us to the next phase of our social history, where communities will take ownership of the memories of the nation and help us to connect one another as one people.

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In closing, Madam, I would like to reiterate that the Government, community and citizens must work together to help enrich the treasure trove of heritage materials we have both in our Library and Archives. I hope that, together, we can make history more enriching and engaging as we turn 50 this year. Now, I invite my Minister of State, Ms Sim Ann, to continue with the speech.

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Madam, I will now address the cuts on libraries as well as translation.

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(203)

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Singaporeans value our libraries as important learning and social spaces. Last year, about 24 million visits were made to libraries and over 34 million loans were made.

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(204)

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Libraries are no longer just physical reading spaces with physical books. Significant investments have been made to develop digital infrastructure and increase National Library Board (NLB)'s acquisition of e-books by almost a million in the past few years. The NLB Mobile app launched last year brings customised library services to mobile-savvy borrowers

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and even allows people to loan out books with just their mobile phones.

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Besides online access, NLB has found that digital services can complement physical spaces. For example, digital storytelling stations have been incorporated in the children's sections and unconventional digital services, such as gaming stations, have been added in Serangoon, while video walls have been added in Orchard. These efforts to enhance library services have been well-received. NLB's annual customer satisfaction index has gone up every year since 2011 even amidst rising service expectations across different sectors.

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(208)

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Madam, with your permission, I would like to display a few slides to help Members visualise.

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(209)

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Yes, please. [Slides were shown to hon Members.]

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(210)

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In the last few years, our libraries have been experimenting with new ways of serving our society and one way is through themed collections. Mr David Ong shared his observations on the library@orchard. It is one of the themed libraries opened recently. Another themed library is the Lifelong Learning Library at the WDA campus in Paya Lebar.

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(211)

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As Mr Ong suggested, there are many opportunities for differentiation within libraries to serve diverse groups. The Early Literacy Library in Jurong Regional Library is one such example. It targets children aged six and below and provides resources to their parents and care-givers. In less than a year, almost 10,000 participants attended programmes supporting early literacy efforts. In view of the success, NLB opened a second Early Literacy Library in Sembawang Public Library in November last year.

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We are not stopping there. The NLB is prepared to re-imagine library spaces boldly and take us to places where few libraries have gone. This year, Singaporeans can look forward to a dedicated teen space in Pasir Ris library. Teens rank among the more frequent users at the Pasir Ris Public Library. Hence, NLB worked with the community to come up with a Teen Space as part of the revamp of the library. Overall, the library will adopt a "chillax lifestyle" theme. There will be a special space for teens to learn in creative ways and engage in indoor recreational activities.

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(213)

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Some libraries will feature integrated family and lifestyle spaces for the first time. We recognise that reading and learning can be part of many other activities. The new Tampines Regional Library, co-located in the upcoming Tampines Town Hub, will be integrated with a culinary studio. This would help combine learning through reading and practice of culinary art.

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(215)

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NLB will also be working with IDA to set up an IDA Lab in Jurong Regional Library. Slated to open later this year, the IDA Lab in Jurong will encourage users to create, invent, network and share skills and knowledge in a fun and well-equipped space. Users can tinker with gadgets using tools and equipment, such as 3D printers and micro-controllers, and innovation or technology talks would be organised for the general public, while hands-on workshops will cater to students and families.

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(216)

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Mr Arthur Fong observed that some libraries are heavily used. We agree. Many libraries are also due for refurbishment after being opened for a decade or more. Hence, I am pleased to share that the NLB is embarking on a masterplan that charts the expansion and development of the library network for the next decade.

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(217)

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Some libraries that are exceptionally popular will be expanded. This is necessary, as library visitors are expected to grow and more space is needed. There will also be new libraries to look forward to. The new Tampines Regional Library, Punggol Regional Library and Bedok Public Library are on the way. They will be opening in the next few years.

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(218)

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Some of the libraries located in malls will also be expanded. Pasir Ris and Bukit Panjang are two such libraries that will be expanded this year and next year. NLB is also looking for opportunities to expand and refurbish other libraries that are more heavily-used than others. Beyond expanding and refurbishing libraries, more can be done to bring libraries and their services closer to the community.

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(219)

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Last year, I mentioned the initiative of READ@Community for NLB to bring books and reading closer to home. I am pleased to know that there are community groups that have come forward to work with the NLB to set up library corners near their residents. Grassroots groups from communities, such as Changi-Simei, have approached the NLB to set up reading corners in their areas for people to browse, exchange and borrow books. I understand that volunteers will run the spaces and NLB will donate a sizeable collection of books.

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I will now address queries from Mr Baey Yam Keng, Mr Alex Yam and Dr Intan Azura Mokhtar, who have asked how the National Translation Committee or NTC plans to improve the Government's translation standards.

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The NTC was set up last March to improve the Government's translation capabilities. It comprises representatives from the public, private and people sectors. Their expertise and invaluable input over the past year have helped us in several areas and one of them is a Whole-of-Government Procurement Framework for Translation Services that will be rolled out next month.

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For Government agencies, this framework will provide a pool of selected translation vendors who can produce quality translations that convey messages clearly and effectively and at fair prices. This helps the agencies to identify vendors who know our local context and cultural nuances and simplifies the procurement process. It also enables our fellow Singaporeans, especially those who are more used to communicating in languages other than English, to better understand our policies.

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We agree with Mr Baey that we need to grow our pool of translation talent in the long term. Beginning this year, we will award up to three undergraduate scholarships per year to students with an aptitude for translation, under the Information Service Scholarships. We welcome applications from students about to enter universities, as well as mid-course undergraduates.

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Our in-service officers will, similarly, have more opportunities to further their studies and deepen their translation skills. By doing so, we hope to increase the pool of bilingual Information Officers and strengthen the Government's communication efforts in our official languages.

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Mr Alex Yam also asked about the standardisation of official translations in Singapore and I am pleased to inform him that we will build upon the existing glossary of Government terms hosted on the gov.sg website. The current glossary was uploaded in May last year and it will be "upsized" this year with a Translated Government Terms Portal. With about 5,000 terms and their translations in Chinese, Malay and Tamil, this repository will be 15 times the size of the current glossary. We hope it will help to standardise the translations of terms related to Government policies.

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While we work to raise Whole-of-Government translation standards, we hope our efforts will bring about improvements in standards for the translation sector as well. In response to Mr Baey's query on the size of our translation sector, figures from the Department of Statistics show that as of 2013, there are 119 companies with a total operating income of $31.4 million. We also appreciate Mr Baey's views on the direction that our translation industry should take. We will explore them together with the NTC, as we continue our efforts to improve translation standards.

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Madam, the NTC's initiatives will take time to bear fruit, but we hope that our efforts will improve Whole-of-Government translation standards. Similarly, libraries will be reinvented to provide conducive learning spaces for our people. I would like to thank all the groups and members of the public who have given valuable feedback in helping us to shape our initiatives in these two areas. Please allow me to say a few words now in Mandarin.

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(In Mandarin): [Please refer to Vernacular Speech.] The National Translation Committee has been established for a year. Since then, the committee members and members of the public who have a passion in translation have provided valuable feedback on raising the translation standard of Government agencies. First, in order to improve the current outsourcing situation, we will be launching a Procurement Framework. This framework will first assess the competency of the vendor to ensure that only qualified companies or translators are able to provide translation service to the Government. And Government officers will be able to outsource translation work to companies or translators who are familiar with Singapore and our use of the language.

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My friends from the education and media industry and myself were often frustrated with errors in translations. With this new framework, even though I cannot guarantee that there will be no more such errors, I believe the number will be greatly reduced. Besides, with the Government procuring quality translation at a reasonable price, it can ensure effective communication while being fair to professional translators. Besides Government agencies, there are other non-government organisations which engage translation services. I hope that, through our effort here, we would be able to encourage people to pay more attention to the quality of translation.

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In the long term, we should also develop and nurture more translation talents. As such, starting this year, we will issue three additional Communication Service Scholarships. We welcome university students who are interested in translation and Government communication to apply for this scholarship.

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At the same time, we are also providing more opportunities for our in-service officers and translators to upgrade and improve their translation skills, so as to enhance the Government's ability to communicate effectively in our vernacular languages. We will also be expanding our glossary in gov.sg website and present it in a new way. With this new Translated Government Terms Portal, we will expand the glossary list by 15 times.

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Madam, fellow Members, Singapore is a multiracial, multicultural and multilingual society. Therefore, translation has a very significant implication on our society. Good translation will not only promote switches between different languages with ease in the society, it also represents our respect to the culture. For the Government, it is also another important avenue for us to be able to convey our important messages effectively and in an endearing way.

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I would like to thank all the committee members and also all the advisors from the vernacular language groups for their support over the past one year. We will continue to

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Mr Zaqy Mohamad. You may take your two cuts together.

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(239)

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Madam, I am heartened that some of our free-to-air programming has continued to improve its outreach among Singaporeans, such as the Mandarin and Malay channels. It is commendable, given the many diverse options. There are many different programmes and movies that are now available on the Internet. There is no doubt that media consumption habits have changed with the increasing reach of the Internet that competes for our citizens' attention span. How have our various PSB channels performed over the past few years since the PSB panel review? What are the Government's plans to ensure that our PSB programmes continue to reach out to Singaporeans, especially among the young and IT-savvy? What are some of the successes of PSB where we have seen significant growth and support and what are the success factors? I understand that PSB programming may also expand beyond MediaCorp today. Can the Ministry update how the outreach would be expanded and whether the funding would benefit and grow more local content providers, as well as opportunities for media professionals and production houses?

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Madam, my next cut. The Government has invested in many policies that benefit a wide spectrum of our citizens. And this is something my constituents have pointed out to me, too. The Pioneer Generation Package (PGP) is one such example where we have seen communication developed from many platforms in various languages to find their way to the heartlands, as well as cyberspace. The Government has invested substantial resources in communicating the PGP. But besides that, there are also many other Government policies which may need a communication boost. How is MCI contributing to these efforts and what are some of these campaigns – recent and upcoming? Also, what does MCI view as its indicators of success? Does the Government set targets, in terms of outreach per initiative per policy? And how does it measure success? For example, how does the Government measure how citizens find the messaging useful or their buy-in for Government policies? I would like to ask MCI what are some of the challenges in getting information on the ground, despite "coffee shop talk" and "Internet buzz" that may run counter to the Government's intentions?

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Mdm Chair, the PGP was significant not just for the scope and scale of the policy and the underlying philosophy but also for the considerable effort put into communicating the changes and its implications to the beneficiaries involving multiple media, a range of messages and tools, the use of dialects, as

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well as face-to-face communication through the PG Ambassadors. This unprecedented effort is well appreciated by the seniors and their families.

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There are likely to be other policies and policy changes which are as complex or as important in the future and it would be important for these to be communicated in as optimal a way as possible. Are there learning points from the PGP communication efforts that the Government will take forward towards other important issues in the future?

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Mr David Ong, please take your two cuts together.

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Thank you, Madam. Mdm Chair, Public Service Broadcast (PSB) programmes serve national and social objectives. Yet, at the same time, PSB has to do well in terms of viewership and public satisfaction of its programmes in a very crowded and highly competitive media space.

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Media consumption, particularly amongst our young, is constantly changing and will continue to evolve rapidly with new media technology and the ease of Internet access to a host of programmes from all over the world across a wide variety of mobile platforms.

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Whilst the recent achievement of PSB is commendable with Singapore-made TV content winning international awards, such as the factual entertainment series, "Very's Chasing Happiness" and the "Great Elephant Gathering", how can the Ministry further support and collaborate with media companies locally and regionally to sustain and enhance a healthy, vibrant public service broadcasting sector?

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What are the Government's plans to ensure that PSB programmes continue to be of high quality, appealing and relevant for our population? What can the Ministry do to improve its publicity and outreach to Singaporeans, especially the young and IT-savvy?

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Madam, my second cut. The Government went on an overdrive in its public communication efforts to reach out and explain the benefits of the PGP to over 450,000 seniors, as well as their caregivers and families. I want to commend MCI's efforts in the way this Government initiative is explained and communicated. Its messaging is down-to-earth, yet fun and easy to understand. Multi-layers of communication platforms were used,

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including the engagement of a host of stakeholders on the ground, such as grassroots organisations, hospitals, clinics and the staging of PGP Carnivals at heartland malls.

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Apart from the PGP, there are other policies, such as CPF, MediShield Life, SkillsFuture, that will need a public communication boost. Some of these can be more complex and emotive. With the diverse target audience more exposed, educated and discerning, what capabilities will MCI be building so that it can continue to better explain the rationale behind policies and to gain the public's understanding and support for Government programmes?

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(In Tamil): [Please refer to Vernacular Speech.] Let me declare my interest as the Chairman of the Indian Programme Advisory Committee (IPAC). IPAC assesses and gives its advice on the content of the Indian programmes. IPAC is especially interested in PSB broadcasts.

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The PSB Contestable Fund scheme under MDA provides a vital support for the Indian programme producers. IPAC members appreciate the increase in innovative and creative content in Indian PSB programmes.

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I personally enjoy the sitcom "My Very Dear Kudumbam". The info-ed programme "Kannottam 360" discusses important issues affecting our people. The period drama, "Annamalai" portrays, rather captivatingly, the life of a pioneer generation. I believe there are similar commendable programmes in Chinese and Malay language broadcasts.

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I am interested to know what improvements have been made to the content of PSB programmes in vernacular languages. Have the opportunities for writers, directors, producers, actors and others who work on these programmes with the support of the PSB Contestable Fund improved?

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Finally, have these improvements in content been translated into higher viewership in the Chinese, Malay and Tamil programmes?

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Madam, there is a high quality to our free-to-air programmes. Conversations with residents have confirmed that as well. The socio-documentary programme "The Place We Live In" was a favourite with many of my residents, especially the

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older folks, who can identify with the many places of Singapore's past. It is no wonder that the programme won the Best Infotainment Award at the Asian Television Awards.

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Even the non-English speaking residents are happy across the different races. My Indian residents tell me that they are happy with many of the programmes on Vasantham and some cited "Kalaimaniga", the Doyen of Arts and, needless to say, tuning into Suria is a daily must-do for many Malay older residents.

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(264)

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We need to do more to resource and support free-to-air programmes. In our recent communications of the PG Package, the Mandarin and even dialect short clips have touched many successfully and it has communicated the PGP well. There is no doubt that the dialect programmes have been helpful in communicating to elderly Singaporeans. I am hopeful that the Government may allow more programmes. Can MCI consider this?

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Mdm Chair, I thank the Members for speaking in support of PSB programmes.

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Many of us remember the 1980s, when TV sets gained prominence in the living rooms of Singaporeans. Families would gather together to watch Channel 8 dramas and local sitcoms and these helped to build common memories and shared experiences.

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Today, the media environment is very different. Singaporeans can now access a mind-boggling array of programmes from every corner of the globe. We can access content through cable TV and mobile devices. International content, including the latest series from America, the most popular dramas from Korea, can be easily accessed through the simple click of a button. So, viewing habits have changed and fewer families now gather together at a fixed time to watch TV.

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(269)

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Madam, with your permission, I would like to show some slides on the screen.

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Yes, please. [Slides were shown to hon Members.]

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Madam, we see these changes in media consumption happening year by year. But over the decades, it really amounts to a dramatic change in viewing habits. The reach of free-to-air (FTA) TV has fallen sharply from 92% in 2005 to 60% last year. At the same time, the reach of the Internet has increased from 43% to 73%, surpassing the reach

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(274)

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These trends pose a challenge for our broadcasters who are finding it increasingly difficult to retain existing viewers while reaching out to new audiences, especially the younger generation. Yet, PSB remains important today. PSB programmes reflect and shape our culture and identity, as well as inform and connect our people. And there is added significance for PSB programmes in our context, given our diverse population and society. We must continue to foster a common identity and shared heritage while celebrating our multiracial and multicultural society.

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So, we need our own quality programmes that Singaporeans can relate to and be proud of. We need our own programmes that can hold us together as a community and form the basis for our shared experiences and memories. And to achieve this goal, we will do more to raise the quality of our own local productions and enhance the outreach of PSB.

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First, we will invest more in quality PSB programmes. Our current budget for local productions pales in comparison with international productions. For example, Korean dramas typically cost three times as much to produce, compared to local ones. American TV programmes can cost six times more. And the reason is simple: good, compelling programmes need heavy investments in writing, editing, casting, camerawork, as well as innovative concepts and treatments.

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Commercially, it is not possible for MediaCorp or any production house in Singapore to invest so heavily in producing local programmes simply because our TV market is much smaller, compared to other markets. In fact, it would be more cost-effective for MediaCorp to purchase and broadcast foreign programmes on free-to-air TV than to spend on local productions. So, a high quality PSB operation cannot be sustained solely on a commercial basis. We must continue to provide our broadcasters with PSB funding support if we want to see more compelling and engaging local programmes. The Government will invest about $250 million per year over the next five years on PSB programmes. This is a significant increase over the $195 million on PSB per year which we have invested over the past three years.

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And we are already starting to see the benefits of such higher production budgets. One significant improvement is the launch of the revamped Channel 5 from 1 January this year. With increased PSB funding support, MediaCorp will progressively improve the quality and quantity of local prime-time shows on Channel 5. One new programme which has been launched is the daily magazine show, "The 5 Show", which offers different perspectives on topical issues like health, education and transport, infusing them with entertainment and

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(281)

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Later this year, we will see the launch of a new long-running local drama series on Channel 5 as well. In addition, documentaries like "Days of Rage" have brought to life the struggles of our Pioneers during the tumultuous times in Singapore. Almost 1.5 million people in Singapore watched this series and the feedback has been very positive. It is a testament to how higher production budgets can lead to high-quality local programmes that can appeal to our viewers.

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Another quality documentary supported by PSB funding is "Wild City". It is a two-part documentary on wildlife in Singapore which will debut later in March on CNA. Again, this uses cutting-edge film-making technology to give viewers an eye-opening experience and a deeper appreciation for Singapore's natural heritage.

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The investments in PSB are not only benefiting English programmes. We are also increasing the quality of PSB programmes on vernacular channels which some Members had spoken about.

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On Channel 8, for example, we saw the broadcast of "The Journey: Tumultuous Times" last year. This is the second part of MediaCorp's blockbuster trilogy, which chronicled our history from the Japanese occupation to our pre-Independence years. The series drew a high viewership of close to 1.5 million viewers each week.

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Our investments in PSB have not only benefited MediaCorp, but it has also benefited the larger TV production industry because MediaCorp outsources about 40% of its PSB productions to independent production houses.

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With an increased production budget and greater contractual certainty, the production houses are able to put in place longer term plans to invest in and produce better quality programmes. One example is the Channel 8 drama "Three Wishes", which was produced by Wawa Pictures. It was the most-watched Channel 8 local production last year and it was so popular that there have been overwhelming calls for a sequel, which MediaCorp is considering. That is for the Chinese Channel 8.

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But the Malay and Tamil channels Suria and Vasantham are also doing well .Our Malay and Tamil production houses have also seen significant increases in their production rates, allowing them to create more engaging, well-researched and entertaining PSB programmes. For example, on Vasantham, the producer of the period drama "Annamalai" was able to raise production standards by investing in extra cast members, period sets and authentic location shoots. On Suria, the company, Papahan Films, produced the first-ever Malay sci-fi drama

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series, "Firasat", which made good use of special effects and included a transmedia component to engage its audience. Both series scored high viewership on their respective channels and, again, they illustrate what we can do with higher production budgets.

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In addition to outsourcing PSB programmes to independent production houses, we will also do more through the PSB Contestable Funds Scheme (PCFS). The PCFS will open up production opportunities to more media companies, including smaller production houses and freelancers. And the PCFS will also enable other broadcasters like StarHub to commission more local content. Last year, with support from the scheme, StarHub commissioned 150 hours of local PSB programmes for its E-City and SuperSports Arena channels.

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While TV remains important, we will also support the development of new media platforms for PSB programmes to reach out to a wider audience. MediaCorp has been developing Toggle as its flagship Internet service that brings entertainment, news and information to audiences across multiple platforms, including online and on tablets, smartphones and connected TVs. All local PSB programmes are available for free on Toggle; they can be watched on-demand, anytime, anywhere. The take-up rate for Toggle has been positive and, through PSB funding, we will support MediaCorp in enhancing its Toggle service.

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In addition, we will continue to work to explore opportunities to work with other new media companies like StarHub, which will be making PSB-funded content available through its TV Anywhere platform. Through these efforts, we will maximise the reach of PSB in the most cost-effective manner and create a broad broadcast ecosystem that promotes the creation of quality and compelling local content.

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The Government will continue to take a holistic approach, including supporting the development of media capabilities, in ensuring the quality, relevance and accessibility of PSB programmes to reach out to all Singaporeans.

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(294)

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Mr Arthur Fong asked if we can have more dialect programmes. The Government has limited the exposure of dialects on free-to-air (FTA) TV and radio, primarily to emphasise the importance of Mandarin and to maintain high standards of Mandarin. Nevertheless, to cater to elderly viewers and listeners, we have allowed a limited amount of dialect programmes, such as dialect operas on TV and daily dialect news bulletins on radio. More recently, we have also allowed the limited broadcast of the Pioneer Generation Package interstitials in dialect on TV, so that we can reach out to our Pioneers in languages that they are familiar with and this is the direction indeed we are taking to have more customer-centric, citizen-centric communications and we are ramping up our capabilities to do such effective

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(297)

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MCI has built a suite of capabilities in content production, marketing and publicity, translation as well as research. These central resources can also be tapped on by other Ministries.

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(298)

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In order to address Singaporeans' needs and concerns effectively, we first need to have a good sense of the ground. As Mr Zaqy Mohamad highlighted, noise and chatter can often get in the way of obtaining authentic ground feedback. This is especially so when the voices of louder minorities may drown out the silent majority.

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(299)

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Recognising these challenges, MCI is encouraging the Ministries to adopt data-driven communications, which means identifying the needs of the audience and understanding how best to reach out to them. By targeting and customising our messages to specific audiences, we can help Singaporeans better understand policies and how they may be affected or how they may benefit from these policies.

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(300)

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This has been our approach for the PGP. We have customised publicity materials produced in languages our pioneers are comfortable with, including dialects. Materials were conceptualised to resonate better with each language or ethnic group. We also used familiar faces and personalities to help convey information in ways that not only inform and educate, but also resonate and entertain.

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(301)

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Beyond mainstream channels, a wide range of platforms were used to reach out directly to Pioneers and their caregivers. We brought the PGP to bus stops, hawker centres, cinemas and even banks. We organised a series of roadshows in the heartlands. Our first four roadshows in Yishun, Boon Lay, Tampines and Ang Mo Kio were well-received. And for further reach, we will be holding four more roadshows in the coming months.

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(302)

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Not all the communication efforts that we do need to be done in-house. There are many external creative resources we can tap on to complement our own efforts. Through these collaborations, we can leverage on a greater range of creative talents to help explain complex policies to diverse audiences and that is what we have been doing as well. For example, to reach out to younger Singaporeans, we worked with Night Owl Cinematics, which is a popular YouTube content creator, to produce a series of Pioneer Generation videos aimed at the youths.

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(303)

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Madam, I am heartened that several Members, like Mr Zaqy Mohamad, Mr David Ong and Dr Janil Puthucheary, have commended our PGP communications efforts. We continuously evaluate the effectiveness of our publicity efforts through various research

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(305)

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studies and the indicators we look at include awareness levels and recalls. For example, according to a recent survey, nine in 10 Singaporeans said they were aware of the PGP and could name some of the benefits. Our videos also helped to raise general awareness, with eight in 10 respondents indicating that they have heard about the PGP through our videos on television. The videos on YouTube have also been very popular.

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(306)

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The process of communicating the PGP has given us new insights. We have learnt the importance of customising content to different audiences, especially in today's fragmented media landscape. We recognise that there is no one-size-fits-all approach and we have to continuously customise publicity materials to address the concerns of our diverse audiences.

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(307)

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Our efforts will not stop at the PGP. MCI plays a coordinating role for policies with significant public impact to ensure that these communications are integrated across issues and platforms. We are supporting MOH and MOM's communications efforts for MediShield Life and CPF. We are also working closely with the relevant agencies to find ways to communicate SkillsFuture. For example, we have collaborated with MediaCorp to produce materials for Polytechnic and ITE students. So, these are things we will continue to do to step up our efforts in public communications.

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(308)

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Mdm Chair, we recognise that public broadcast and Government communications must evolve to meet the changing environment and expectations. By investing in PSB, by building up our internal capabilities and tapping on external resources, we can ensure more appealing and engaging communications and reach out to Singaporeans in more effective ways.

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(309)

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Members have less than 10 minutes for clarifications. So, please keep your clarifications direct and very concise. Mr Low Thia Khiang.

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(310)

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Madam, would the Government consider a process of automatic declassification of documents categorised as "Restricted" and "Confidential" kept by the National Archives? What is the point of making these documents as public documents after 35 years, but, yet, you need approval to view these documents?

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(311)

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The Minister also said that these documents are used to produce publications and memory projects. Does he not agree that people would want to view the document first-hand, instead of reading it through abstracts from publications?

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(312)

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Madam, as I have mentioned in my reply, the public can come to the Archives and make a request for the materials that they would like to see. As the Member mentioned, after 25 years, they will become public archives and that is why

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(315)

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No archive in the world gives you free access to every material that they have, even if they are unclassified. After we have looked through the materials and if the materials are really non-sensitive, then we can release them. At the same time, every material that is being requested will have to be evaluated on a case-by-case basis because there are concerns – national security, national defence.

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(316)

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These concerns are not only shared by our Archives, but with the archives around the world, including in the US. Let us not pretend that when we have such an Act, everything can be released because there are concerns which every nation has to preserve, whether it relates to defence, security and even about diplomatic relations.

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(317)

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We have to preserve that. As we ensure that we can meet those requirements that I have mentioned, we will release the materials as much as possible, depending on the needs of the public. At the same time, where the materials are non-sensitive, we have released them online and made them available.

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(318)

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The materials that have been used by our broadcasters to produce PSB programmes, for example, the public can go to the Archives and make a request. We will make them available because, if they have been used for the broadcasts, they must be made available to the public because the materials are non-sensitive.

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(319)

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With the coming SEA Games, I just want to ask the Ministry how extensively will the free-to-air channels be deployed to bring the Games closer to the people.

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(320)

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Madam, I have said on behalf of MCI, but I said with an interest as the Minister-in-charge of Sports as well and I would like to assure the Member that the broadcast of the SEA Games would be very extensive.

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(321)

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Madam, the frequently-used translated Government terms are a good start and I applaud the proposed expansion. Are there plans to have a dedicated website for such translated terms, specifically for translated local terms in all the vernacular languages? Better still, if it comes with the search function so that it makes it easier for our students and the community to use.

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(322)

1.00 pm

Madam, the Translated Government Terms Portal also arose because of feedback from the media, members of the public, the community and industry practitioners. The intention is not to create a dictionary, but to ensure that the most frequently used terms, when we discuss Government policies, are presented together with their translations in our

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(324)

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Mother Tongue Languages. This will create more convenience. Our intention is to add a search function.

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(325)

1.00 pm

Madam, I have a question about cyber security. Many Singaporeans are today using technology pervasively, including businesses. But the awareness, in terms of cybersecurity knowledge and how to protect themselves, is not extensive. I was just wondering whether the new Cyber Security Agency will be providing educational awareness for Singaporeans and what are the plans.

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(326)

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There was another question I have raised about talent development, in terms of ICT talent in Singapore. I know we have got very good programmes in schools. But seniors really have challenges because it is a very fast-paced environment and very fast-paced industry. Are there plans to engage our seniors and see how they can keep relevant and continue in the sector?

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(327)

1.00 pm

To the first question, the answer is yes. That is part of the role of the CSA, to increase awareness, not only with the public but also with the industry players. It is important, as I had mentioned in my speech, that this is a responsibility that is carried by everyone in the community and, therefore, we have to make sure that everyone is upskilled as quickly as possible. At the same time, we recognise that, in certain sectors, they will have to work with their own sector champions to make sure that they can level up as quickly as possible.

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(328)

1.00 pm

On his second question about talent development, especially for seniors within the ICT sector who may feel that they are left out, there are programmes where we work together with WDA and where these professionals are able to get sponsorship if they want to. At the same time, with the SkillsFurture credit coming into place, I am sure that our ICT professionals can also tap on the SkillsFuture framework to ensure that they remain relevant. IDA is happy to explore this. Certainly, we want to keep our ICT talent fresh and relevant because, as he pointed out, the landscape is evolving very quickly.

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(329)

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Mr Zaqy Mohamad, do you wish to withdraw your amendment?

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(330)

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Madam, generally, I just want to thank Minister Yaacob, Minister Wong as well as Minister of State Sim Ann for giving us very good answers to the Budget and also the COS debate. We have covered topics ranging from cybersecurity to the Smart Nation Masterplan, our Public Service Broadcast, media and, of course, translation as well. It is certainly a broad range of topics.

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(332)

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I am happy that we are seeing the industry developing quite nicely. With the hard work of the Permanent Secretary, the Ministry and the staff of the various agencies as well, I am sure this would be a fruitful Budget and COS, with lots of projects to come. I also thank my fellow Members in the House for all their speeches and my fellow "brolls", as Mr Baey Yam Keng has mentioned earlier. I hope we will continue to support and "broll" together all the MCI policies and initiatives. Madam, I beg leave to withdraw my amendment.

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(333)

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

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(334)

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[(proc text) The sum of $911,002,200 for Head Q ordered to stand part of the Main Estimates. (proc text)]

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(335)

1.00 pm

[(proc text) The sum of $264,133,000 for Head Q ordered to stand part of the Development Estimates. (proc text)]

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(337)

1.15 pm

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

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(338)

1.15 pm

Mdm Chair, when a Member proposes that a Bill which will become law ought to be committed to a Select Committee of Parliament, it means that while the Member generally agrees with the objectives of the Bill, he or she is concerned about its implementation or its provisions.

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(339)

1.15 pm

The last time a Select Committee was formed in this House after the Second Reading of a Bill was in 2004 when the Building Maintenance and Management Bill came up for Second Reading. A variety of reasons were put forth by Members for the committal of the Bill. Some Members cited better representation of the interest of all stakeholders and to gain support for the Bill. Others highlighted the importance of the Bill by virtue of the number of people who would be affected by its enactment into law, hence, requiring further feedback. Another called for extensive consultations to ensure the relevance of the proposed law.

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(340)

1.15 pm

Mdm Chair, according to the Parliament website, I quote, "Select Committees are mostly set up to discuss the details of a Bill which affects the everyday life of the public."

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(341)

1.15 pm

Over the last year, the Workers' Party and the SDP and Mrs Lina Chiam, proposed two Bills, in particular, for committal to a Select Committee. In both these cases, the Government rejected the calls, as a consultation process through the Government feedback channel or REACH was deemed to have been sufficient.

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(342)

1.15 pm

Mdm Chair, I would like to request that the Government consider committing more Bills to Select Committees in future. Participation in such Select Committees is envisaged to take up more of a Member of Parliament's time and rightfully so. While I accept citizens have an opportunity to engage issues through the Government feedback channel and this should continue to be encouraged, this should not mean that Parliament's role in scrutinising Bills through a Select Committee is minified or rendered unnecessary.

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(343)

1.15 pm

In fact, in today's day and age, Select Committees can add much-needed civility to the public discourse through the active engagement of issues, as Select Committees are empowered to call for witnesses and for documents and records. They present a good opportunity for the Government to deepen discussions and generate greater public support for laws.

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(345)

1.15 pm

I hope the Government can look into this matter from a fresh perspective, in light of the changing contours of Singapore's society, where more engagement is sought on issues affecting the public.

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(346)

1.15 pm

Mdm Chair, the Government welcomes calls from Members of Parliament to increase engagement and, in the Member's words, to deepen or increase the engagement when it comes to legislation in this House.

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(347)

1.15 pm

Indeed, that is what we have been doing over the last few years. Government agencies routinely conduct public consultation exercises with the public to facilitate and incorporate inputs from members of the public and relevant stakeholders before new legislation is introduced into this House. This process includes close engagement with Members of Parliament in this House through the Government Parliamentary Committees who provide valuable suggestions to improve proposed legislation. The extent of consultation varies depending on the issues involved. There are many Bills that are introduced in the House. Let me give some examples of Bills in recent times that have undergone extensive public consultation: the Human Organ Transplant (Amendment) Bill in 2009, Personal Data Protection Bill in 2012, Transboundary Haze Pollution Bill, Remote Gambling Bill and Public Entertainments and Meetings (Amendment) Bill in 2014 and, most recently, the Liquor Control (Supply and Consumption) Bill and Industrial Relations (Amendment) Bill in 2015.

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(348)

1.15 pm

After the legislation is introduced, Members of Parliament further scrutinise and deliberate on the Bills during the Second and Third Readings in this House. Parliament also resolves itself into a Committee to discuss the Bill.

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(349)

1.15 pm

Members will remember that in November last year, Nominated Member of Parliament Ms Chia Yong Yong proposed an amendment to clause 3 of the Pioneer Generation Fund Bill. She wanted to ensure that no means-testing would be applied. Since it was never the intention to apply means testing to the PG package, MOF accepted her proposal and will introduce an amendment to the Bill at an opportune time to provide this certainty. Apart from the Government Parliamentary Committees, this is another positive example of how Members of Parliament in this House have contributed to improve legislation.

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(350)

1.15 pm

As Mr Pritam Singh had said, there have also been some occasions when the Government judged it necessary and beneficial to propose to this House to refer specific Bills to a Select Committee of Members of Parliament instead of the Committee of the Whole Parliament after the Second Reading. He has mentioned some, but let me give the list of Bills

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(353)

1.15 pm

The Bills which this House had referred to a Select Committee include the Parliamentary Elections (Amendment) Bill in 1988, the Maintenance of Religious Harmony Bill and the Administration of Muslim Law (Amendment) Bill in 1990 and 1999 respectively, the Women's Charter (Amendment) Bill, the Maintenance of Parents Bill and the Advance Medical Directive Bill in 1995 and 1996, and the Companies (Amendment) Bill, Goods and Services Tax Bill and the Bankruptcy Bill in 1993 and 1995.

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(354)

1.15 pm

The reasons vary, depending again on the issues involved. Not quite as Mr Singh had put it, whether it is to increase support or look at the implementation or provisions.

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(355)

1.15 pm

The reasons for Bills to be committed to a Select Committee are when the Government judges that a Select Committee will allow a smaller group comprising Members of the House to further examine the details of implementation for complex issues, or seek views from experts and other focus groups on matters related to the Bill.

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(356)

1.15 pm

On the whole, these public consultation exercises, Second and Third Readings in this House and Select Committee for some Bills have allowed the Government to obtain views from members of the public and Members in this Parliament and pass legislation in a timely and responsive manner to meet the needs of our society.

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(357)

1.15 pm

Mr Pritam Singh, do you wish to withdraw your amendment?

Suggest a correction

(358)

1.15 pm

Mdm Chair, according to the revenue and expenditure estimates for FY2015/2016 on page 41, one of the desired outcomes under this Head is public awareness of the roles and functions of Parliament. I thank the Leader of the House for his reply. And I hope the Government can consider how this outcome can be furthered in future either through topical Select Committees, ad hoc Select Committees and so forth, covering even subject areas of interest. With that, Madam, I beg leave to withdraw my amendment.

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(359)

1.15 pm

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

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(360)

1.15 pm

[(proc text) The sum of $2,508,900 for Head F ordered to stand part of the Development Estimates. (proc text)]

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(362)

3.30 pm

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

Suggest a correction

(363)

3.30 pm

Trust in Government remains high at 70%, according to The Edelman Barometer of Trust survey. However, it shows a drop of 6% over the last three years. Singaporeans want a good government which is not only effective and efficient but, even more importantly, corruption-free. In short, while Singaporeans may complain bitterly about inefficient service, they have absolutely zero tolerance for any act of corruption.

Suggest a correction

(364)

3.30 pm

The Pioneer Generation of Singapore has built up a culture among Singaporeans who place a high expectation on the competency and moral standards of Government officials; it includes both elected officials and civil servants.

Suggest a correction

(365)

3.30 pm

Singaporeans view the setting up of the Municipal Services Office (MSO) to improve the Government's overall coordination and delivery of municipal services as a response to their expectation of an efficient government.

Suggest a correction

(366)

3.30 pm

Singaporeans also see the Prime Minister's announcement that the Government was reviewing the laws on corrupt practices as part of the overall effort to keep corrupt practices at bay as a move to win the trust of the people.

Suggest a correction

(367)

3.30 pm

Though the increase in corruption cases contributes to less trust, that is not the fundamental issue. The fundamental issue is that people, especially the young, now expect to be consulted on all issues, big and small, before the Government makes any decision. Thus, consultation and communication have become the third contributing factor to the trust level. We have just heard Minister Lawrence Wong on consultation and communication and the Government's strategy to reach out to all Singaporeans on major issues. May I also ask the Deputy Prime Minister the following two issues?

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(368)

3.30 pm

One is on the effectiveness and efficiency of the Government and Government agencies. What are the areas that PSD will focus on in this new media age?

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(369)

3.30 pm

Two is on anti-corruption. As it has become a basic value in governance, eradicating corruption will not improve trust in government. However, it will affect the trust level if there are more and more malpractices among civil servants.

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(371)

3.30 pm

In this aspect, the set-up of a One-Stop Corruption Reporting Centre is a good move. What are its operating concept and implementation timeframe? Why is there a need to increase CPIB manpower by 20%? In Mandarin, please, Madam.

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(372)

3.30 pm

(In Mandarin): [Please refer to Vernacular Speech.] The logo of the Corrupt Practices Investigation Bureau (CPIB) in its early days was a lotus, which symbolises "a flower that grows from the mud but remains untainted". At the heart of the lotus flower is a sharp sword that cuts through it. The sword symbolises dignity and justice.

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(373)

3.30 pm

This is precisely what people expect of a good government. A good government must not only be highly efficient in administration, it must also possess strong political will and be fearless in eradicating corruption.

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(374)

3.30 pm

CPIB subsequently changed its logo. The new logo is a rectangle that symbolises openness and fairness, framed by the CPIB mission statement "Swift and Sure". Furthermore, the "I" in CPIB has its dot emerging from the frame. From top down, the dot looks like a reflective mirror, as well as an aerial surveillance device. The message conveyed is that the CPIB will be highly efficient in investigating all corruption cases, in order to safeguard Singapore's clean image.

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(375)

3.30 pm

Unfortunately, in recent years, our public service, private corporations and organisations have been embroiled in corruption cases and even CPIB officers have been implicated. This has caused public trust in the Singapore Government to fall by six percentage points in the past three years. It now stands at 70%. Compared with public trust in most governments elsewhere, we are still way ahead. However, it is important to note that if public trust in the Government does not improve, it will be further eroded.

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(376)

3.30 pm

Singapore's anti-corruption experience is often quoted by the foreign media and experts. They say that Singapore's system meant that people dare not, cannot and would not want to be involved in corruption.

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(377)

3.30 pm

We dare not be corrupt because chances of being caught are very high. We cannot be corrupt because the system is rigorous and there are relatively few loopholes in our financial system. We do not want to be corrupt because the salaries of civil servants are on par with market rates, so there is no need to resort to corruption.

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(378)

3.30 pm

However, in recent years, why is it that "dare not be corrupt" has become "dare to corrupt", "cannot be corrupt" has become "can be corrupt", "do not want to be corrupt" has become "desire to be corrupt"?

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(380)

3.30 pm

Two months ago, Prime Minister Lee announced that the Government will be reviewing the Anti-Corruption Act. This is timely, as there is a need to strengthen our anti-corruption regime. More importantly, as Prime Minister Lee said, leaders must continue to set an example in order to safeguard the values of honesty and integrity.

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(381)

3.30 pm

CPIB will also increase its staff strength by 20% and set up a one-stop corruption reporting centre to strengthen its anti-corruption efforts. I believe that this reporting centre will have a deterrent effect, such that those who are tempted by corruption will think twice. As for the review of the Anti-Corruption Act, I hope it will ensure that ikan bilis cannot be involved in corruption even on a small scale. Likewise, the "big fish" cannot do so with impunity. In China, the anti-corruption movement aims to "swipe all houseflies and take on the tigers alike", while our aim is to "net all big fish and ikan bilis" to ensure no one gets away.

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(382)

3.30 pm

I hope that with greater anti-corruption efforts and enhanced communication with the masses, public trust in our Government will reverse its slide and improve.

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(383)

3.30 pm

This is the Year of the Goat. Let me quote an idiom, "It is not too late to mend the fold even after the sheep is lost", to commend the Government's effort in tackling corruption, to ensure that our reputation of being clean and corruption-free continues for the next 50 years.

Suggest a correction

(384)

3.30 pm

Madam, as Deputy Prime Minister Tharman made clear in his Budget speech, this Budget is clearly focused on building Singapore's future. It is a bold, forward-looking, forward-thinking Budget, designed to help Singaporeans not only now but, particularly in the long term, to succeed.

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(385)

3.30 pm

That ethos is best encapsulated in Deputy Prime Minister Tharman's closing remarks in his Budget speech. When making mention of Joseph Schooling's first swimming coach, he said that the spirit of Singapore lies in being good at something, taking pride in it and then passing on the passion to the next generation, so that we, Singapore and Singaporeans, can keep moving up.

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(386)

3.30 pm

In the same way, we have to ensure that the people who lead our country, who sit on the front bench of this House and whose policies shape the lives of many future generations of Singaporeans to come, will, indeed, keep Singapore moving up. It was against this backdrop that back in January 2012, this House debated the White Paper on Salaries for a Capable and Committed Government. It was a robust and vigorous debate. I think it was so because all of us in this House appreciated just how important it is for Singapore that we set the framework for political salaries at the right level. It is important because we have to ensure that the best, the most capable, the brightest talents are brought into public service.

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(388)

3.30 pm

I do not think anyone can seriously disagree with that.

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(389)

3.30 pm

The principles enunciated in the White Paper were designed precisely with these objectives in mind. Let me just quickly recap the three core principles which underscored the Committee's recommendations. First, salaries must be competitive so that people of the right calibre are not deterred from stepping forward to lead the country; second, the ethos of political service entails that there be financial sacrifices and, hence, there should be a discount in the pay formula; and third, we should continue to adopt a clean wage system with no hidden perks.

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(390)

3.30 pm

Based on these principles, the salary benchmark of a Member of Parliament-grade Minister is set at the median salary of the top 1,000 earners for Singapore citizens with a 40% discount to reflect the ethos of political service and no other payment.

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(391)

3.30 pm

We agreed on a new framework on the principles for Ministerial salaries and the application of a new benchmark. These principles were wholly accepted by this House, including by the Workers' Party. This is significant because we now can and, indeed, should, put aside any further political rhetoric on what the appropriate principles or benchmark should be and move on from here.

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(392)

3.30 pm

In fact, the recommendations by the Committee itself, which the Government has accepted, provide for a self-reviewing feature at the five-year mark for the new salary framework to be reviewed. This will be a useful exercise after having the experience of using and evaluating the practical application of the new framework. Even though we are now only about three years into the current framework or just slightly past the midway point of the five-year review period, may I ask the Deputy Prime Minister if it would be an opportune time now to take stock of how the new framework has been applied in practice and where the benchmark has moved over the years since implementation in 2012?

Suggest a correction

(393)

3.30 pm

Mdm Chair, last year, the Prime Minister in his National Day Rally speech said that the Public Service can and will do more to support the aspirations of non-graduates. Currently, most non-graduates and graduates join the Civil Service under the Management Support Scheme (MSS) and Management Executive Scheme (MXS) respectively. Management Support Officers (MSOs) can already progress to take on similar jobs as those of graduates and be paid comparable

Suggest a correction

(396)

3.30 pm

Following the Prime Minister's National Day Rally speech, the Public Service Division (PSD) announced that there would be faster career progression for MSOs from October 2014 and that more graduate and non-graduate schemes would be merged.

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(397)

3.30 pm

I understand that the PSD has since carried out a review of the MSS and MXS schemes of service with this in mind. I would like to ask for an update on the outcome of this review and how it can position the Civil Service as an early adopter and good exemplar of the recommendations of the ASPIRE Committee in recognising, developing, tapping and rewarding the talent and performance of both graduates and non-graduates within the Public Service.

Suggest a correction

(398)

3.30 pm

Madam, it is encouraging that the Government is willing to expand the old model of using academic excellence as hiring benchmarks in the Civil Service and adopt unique and non-academic skills as well.

Suggest a correction

(399)

3.30 pm

I would like to share the stories of two young men who have faced many challenges because of the previous policies of over-emphasising on academic qualifications.

Suggest a correction

(400)

3.30 pm

Earlier this year, a young Singaporean, with an ITE higher Nitec, contacted me. He served his National Service with great dignity and honour, performed very well and grew to love the uniformed services and aspired to build a career in it. After completing his National Service at great expense to his family, he went for further studies in Australia to obtain a degree. Upon his return, he applied to serve as a regular officer, first in the SAF, and, when he was not successful, as part of the Home Team. His applications were rejected by MINDEF and MHA, citing his unrecognised academic qualifications.

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(401)

3.30 pm

He became disillusioned with the system. He was enthusiastic about the National Day Rally speech that the Prime Minister gave, outlining his vision of better recognising and rewarding those who have pursued a non-traditional education route. He hoped that it would be an opportunity for him to finally realise his dream of being a regular officer in the uniformed services. You can imagine his disappointment after the multiple rejections.

Suggest a correction

(402)

3.30 pm

Mr Calvin Soh rose to be the Vice Chairman and Regional Chief Creative Officer of Publicis Asia, a top advertising and public relations company, and was the first Singaporean creative director of a top advertising firm in New York, with only four "O" level results.

Suggest a correction

(404)

3.30 pm

Since returning to Singapore, Calvin has been actively involved in building a creative culture among our youth and worked on various projects, including Time Traveller, an app that allows users to share their stories about various landmarks and places in Singapore.

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(405)

3.30 pm

Recently, he was invited by a local University to speak to students. He was then asked to submit his CV. Upon realising that his highest qualification was an "O" level certificate, the invitation was rescinded. Calvin also shared with me that there are many Singaporean creative directors across Asia, particularly in China, because of the over emphasis on academic qualifications, their collective knowledge and talent are not readily recognised yet in Singapore.

Suggest a correction

(406)

3.30 pm

I hope that with the changes brought about by the creation of ASPIRE, the stories I shared will not be repeated.

Suggest a correction

(407)

3.30 pm

As we encourage companies to employ and reward those with specific skills, the state is the largest employer, through the Civil Service and uniformed services, I hope that the Government will lead the way. As the Deputy Prime Minister mentioned during his Budget speech, we must endeavour to make Singapore a meritocracy of skills and not a hierarchy of grades earned at a young age. The Civil Service can certainly do more to promote the employment and career progression of non-graduates. Look at UniSIM graduates. I hear that not many of them get employed by the Civil Service, which means that its qualifications are not much recognised in the Civil Service. Perhaps, the Government could elaborate on how many UniSIM graduates it hires, to show us that they are, indeed, recognised.

Suggest a correction

(408)

3.30 pm

Thank you, Mdm Chair. During last year's Committee of Supply, I asked PMO to share the Civil Service's efforts in helping low-wage workers in the Civil Service to earn higher income and improve their employability.

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(409)

3.30 pm

Deputy Prime Minister Teo shared that PSD will be conducting a pilot study into the future work of the lower-wage officers, as well as the skills and training needed for them to take on these new roles.

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(410)

3.30 pm

Would the Ministry or the Division be able to share an update on the status of this pilot study? What will the scope of their new roles be like? What lessons did we learn from the pilot study and what training will be needed to help our low-wage workers move up their career ladders and earn higher wages? Will there be available details to share on the salary adjustments, if any, and is this pilot ready to be extended to the rest of the workers in the

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(414)

3.30 pm

Mdm Chairperson, first, let me thank Members for their interest in, and support for, the Public Service.

Suggest a correction

(415)

3.30 pm

Let me first address Mr Edwin Tong's question on salaries for political office holders. In May 2011, Prime Minister Lee had appointed an independent Committee to review the basis and level of salaries for the President, Prime Minister, political appointment holders and Members of Parliament to help ensure honest and competent Government. The Committee's report was thoroughly debated in this House over three days in January 2012 and endorsed by this House.

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(416)

3.30 pm

In determining Ministerial salaries, the Committee was guided by three key principles: first, salaries must be competitive so that people of the right calibre are not deterred from stepping forward to lead the country; second, the ethos of political service entails making sacrifices and, hence, there should be a discount in the pay formula; and third, there should be a clean wage with no hidden perks.

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(417)

3.30 pm

Madam, there was consensus in this House, among all parties, on these three key principles. In particular, the Workers' Party stated that it agreed with the three principles and accepted benchmarking salaries competitively. This was a fundamental change from their past proposals. This significant change helped the debate to arrive at areas of convergence.

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(418)

3.30 pm

Based on these key principles, the House agreed to the Committee's recommendations to establish a new framework for Ministerial salaries. Let me briefly recap these recommendations.

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(419)

3.30 pm

One, a new benchmark, which is based on the median income of the top 1,000 earners who are Singapore citizens, with a 40% discount to reflect the ethos of political service; two, a new salary framework and National Bonus linked to the socio-economic progress of average and lower income Singaporeans and not just GDP growth alone; and three, removal of the pension scheme for politicians.

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(420)

3.30 pm

Based on this formula, the 2011 MR4 benchmark for Ministers was $1.1 million. We set the norm annual salary of an MR4 Minister at this level of $1.1 million. This is the norm total annual remuneration which includes all salary components – basic salary, 13th month, AVC

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(422)

3.30 pm

and all individual performance and national bonuses. This meant an annual salary cut of 37% for an MR4 Minister. An entry-level Minister's total annual salary would start below that, at $935,000 in a year in total. The Prime Minister's total annual salary was reduced by 36%; and the President's total annual salary by 51%. With these changes, the President's annual salary is now 70% that of the Prime Minister's.

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(423)

3.30 pm

While accepting the three key principles, including competitive salaries and benchmarks, Opposition Members had suggested alternative formulas. The Workers' Party proposed to make Ministers' salaries a multiple of Members of Parliament's (MPs') allowances, to be benchmarked to the starting salary of the MX 9 (Superscale) grade in the Civil Service. In actual fact, the MX 9 (Superscale) pool is part of a select group of senior civil servants in senior leadership positions. They made up just 1.2% of our 76,000 civil servants then.

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(424)

3.30 pm

Importantly, the overall salaries derived by the Workers' Party proposal were at the same general levels as the Committee's recommended salary level. The Singapore People's Party also proposed salaries that were around the same level. In fact, the Singapore People's Party proposed a monthly salary that was 10% higher than what the Committee had recommended. In short, the proposals by the Workers' Party and the Singapore People's Party yielded salary levels that were not significantly different, either in principle or in quantum, from those proposed by the Committee and which Parliament endorsed.

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(425)

3.30 pm

The Committee also assessed that the current level of the MP monthly allowance was roughly correct and recommended maintaining the allowances of MPs, NCMPs and NMPs at about the same level as their monthly allowances then. Neither the Workers' Party nor the Singapore People's Party proposed cutting MPs' allowances, together with Ministerial salary cuts. The Government concurred with the feeling in the House and left MPs' allowances alone.

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(426)

3.30 pm

Madam, since 2011, the year-on-year benchmark movement has been moderate, moving up in two of the three years and down slightly in one year, giving an overall change of around 3% upward annually over the three years that the formula has been in operation. Because the changes in the benchmark have been moderate, we have not adjusted political salaries in these past three years. The 2014 MR4 benchmark should be $1.2 million, but we have kept the MR4 norm annual salary unchanged at $1.1 million.

Suggest a correction

(427)

3.30 pm

Let me summarise the position, Mdm Chairperson.

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(429)

3.30 pm

One, in January 2012, all parties in this House agreed to the key principles for setting political salaries as set out in the Committee's report.

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(430)

3.30 pm

Two, during the debate, Opposition parties in the House proposed salaries that were at the same general levels as recommended by the Committee.

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(431)

3.30 pm

Three, Parliament endorsed the current salary framework which meant an annual salary cut of 37% for an MR4 Minister.

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(432)

3.30 pm

Since then, the formula has remained stable and has worked well. The Committee recommended that the salary framework be reviewed every five years. Given that things have been stable, we believe the framework remains valid and we can continue to adjust salaries within this framework, should there be a change in overall salary levels in the coming years.

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(433)

3.30 pm

As Members have agreed, we must continue to keep wages in the Public Service realistic and strike the right balance between recognising the ethos of political service and providing a fair salary, to ensure a flow of able and committed leaders into Government to serve Singapore and Singaporeans well into the future.

Suggest a correction

(434)

3.30 pm

Mdm Chairperson, I will now address Members' questions concerning hiring and promotion in the Public Service and what we are doing to improve the career prospects of all officers, in particular, non-graduates, as well as to support lower-wage officers.

Suggest a correction

(435)

3.30 pm

I agree with Mr Inderjit Singh that we need to look at other factors and not just prior academic performance in hiring and promotion.

Suggest a correction

(436)

3.30 pm

The Civil Service offers a diverse range of jobs. When recruiting officers, the Service considers several important aspects, beyond academic qualifications, such as character and motivation, commitment to public service, initiative and interpersonal skills, to assess suitability for a particular job.

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(437)

3.30 pm

Academic or professional qualifications are necessary for certain jobs, for example, in medicine, engineering, law or accountancy. For a candidate with no prior working experience, academic qualification can be one useful proxy to assess ability and suitability. But for a mid-career candidate, relevant work experience would be a better proxy. A candidate who is

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(439)

3.30 pm

suitable will be offered a position commensurate with assessed abilities and experience.

Suggest a correction

(440)

3.30 pm

After joining the Civil Service, an officer is assessed based on job performance and is developed and promoted based on performance and readiness to take on larger responsibilities. Officers will have training opportunities to acquire the necessary skills, competencies and knowledge, including academic or professional qualifications. For example, the People's Association partnered UniSIM to develop a Master of Community Leadership and Social Development to deepen their officers' expertise in community work.

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(441)

3.30 pm

In Statutory Boards, such as the People's Association and the Inland Revenue Authority of Singapore (IRAS), graduate and non-graduate officers are already appointed to the same scheme of service. Officers then progress along the same scheme according to their demonstrated performance and ability to take on larger responsibilities.

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(442)

3.30 pm

Mr Heng Chee How asked for an update on PSD's study announced last August, for a single career scheme for Management Executive Officers (MXO) and Management Support Officers (MSO). The study has been completed and I am happy to announce that we will extend the existing Management Executive Scheme to have a single scheme, with effect from August 2015.

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(443)

3.30 pm

Both degree holders and non-degree holders will be recruited on, and progress along, the extended Management Executive Scheme. All officers in the same grade will be assessed for performance and potential in the same way. Officers assessed to have the same performance and potential will have the same opportunities for advancement and career development, whether they are degree holders or not.

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(444)

3.30 pm

The extension of the scheme will be accompanied by a redesign of jobs and responsibilities so that the Civil Service can make full use of the abilities and potential of our officers. The Civil Service is aligned with SkillsFuture and we are committed to supporting our officers to acquire deeper skills relevant to their jobs.

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(445)

3.30 pm

Mr Ang Hin Kee asked for an update on upgrading our lower-wage officers. Madam, we remain committed to improving the jobs and skills of our lower wage civil servants, most of whom are Operations Support Officers in our schools. Last year, PSD partnered the Amalgamated Union of Public Employees and MOE to do a study on the work challenges of these officers.

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(446)

3.30 pm

We will provide our lower wage officers with more training opportunities. For example, Operations Support Officers can learn skills that are not just useful in their current job, but can also be applied in other jobs. The Civil Service has a Training Incentive Scheme to

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(448)

3.30 pm

encourage and reward officers who upgrade themselves.

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(449)

3.30 pm

In support of the National Wages Council's recommendations, we had in the past three years given built-in wage increases of $60 to $70 per year to our Division IV officers. Taken together with our regular salary adjustments, our lower wage officers have received total salary adjustments of about $300 to $330 from 2012 to 2014. This amounts to about a 25% increase in the officers' monthly salaries and is over and above their annual increments.

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(450)

3.30 pm

Next month, approximately 2,200 lower wage civil servants will receive a salary increase of $60 to $80, to keep salaries market-competitive, as part of our regular review of salaries. From next month, their salary scales will also be lengthened so that officers who have reached the previous maximum of their scales can receive further increments as they uplift their skills.

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(451)

3.30 pm

The Public Service will continue to work closely with the unions and make salary adjustments where necessary, while providing our lower wage officers with relevant opportunities to upgrade their skills.

Suggest a correction

(452)

3.30 pm

Mdm Chairperson, Mr Seng Han Thong called for a more effective delivery of public services and asked about engagement and maintaining integrity. Mdm Chairperson, the Public Service continues to review areas where we can serve Singaporeans more effectively. Where necessary, we will change the way we work to better meet the needs of Singaporeans. This includes agencies working in a more integrated way. I will cite three multi-agency initiatives. For single-agency initiatives, many of them have been covered by my colleagues under their respective Heads in the COS debate.

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(453)

3.30 pm

MSF's Social Service Offices bring help closer to our residents by working with VWOs and community partners to provide more coordinated social services. The new Municipal Services Office (MSO) ensures that municipal services are well coordinated across different agencies and delivered promptly and effectively. The Smart Nation Programme Office will partner various agencies to drive our whole-of-Government smart city applications for citizens.

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(454)

3.30 pm

I would like to thank Mr Seng for commending our officers for carrying out consultation, in particular, our officers involved in the Pioneer Generation Package. As mentioned by MOF during its Committee of Supply debate, our Pioneer Generation Ambassadors will continue their outreach programme and also reach out to Pioneers who need more specific help through house visits or engagements in smaller group settings.

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(456)

3.30 pm

To support good quality policy development and effective implementation, we have been broadening our public engagement efforts, including through REACH's new citizen-centric platforms. Last year, REACH deployed 23 roving open-concept booths or "Listening Points" where Singaporeans can obtain information and provide feedback and suggestions on national policies and issues.

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(457)

3.30 pm

In addition, REACH uses the Internet and social media to reach out to Singaporeans. REACH received some 32,000 pieces of feedback through its various online channels in 2014. The eCitizen Ideas! crowdsourcing portal which was launched in April 2014 has received over 400 ideas in response to challenge statements posed by agencies. For example, some of the ideas to sustain Pulau Ubin's rustic charm are already being implemented.

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(458)

3.30 pm

My colleagues have also communicated more information on public engagement during the Committee of Supply debate on MCI which has just concluded.

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(459)

3.30 pm

Mr Seng also asked about anti-corruption measures. Our zero-tolerance approach against corruption is well-known and demonstrated through firm action. The number of corruption cases has remained at a stable and low level.

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(460)

3.30 pm

We have taken further steps to combat corruption in both the private and public sectors. In January this year, Prime Minister Lee announced that CPIB will increase its manpower by 20%. This is to better deal with an operating environment where corruption offences become more complex and trans-national. CPIB is also stepping up public education and outreach efforts.

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(461)

3.30 pm

A One-Stop Corruption Reporting Centre will be set up in the city centre for members of the public to make reports about corruption and learn more about the challenging journey of Singapore's fight against corruption, including CPIB's work. The Centre will be ready in about a year's time.

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(462)

3.30 pm

Although Singapore remains one of the most corruption-free countries, the fight against corruption goes on.

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(463)

3.30 pm

Mdm Chairperson, our Public Service is internationally recognised for its excellence, effectiveness and efficiency, with zero-tolerance for corruption and wrongdoing. I am confident that our public officers will continue to do their best and, in doing so, maintain public trust and confidence in the Public Service. I encourage our public officers and members of the public to continue to work together, with mutual respect and trust, to make Singapore a better home for all of us. And I thank Members for their support for our public

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(466)

3.30 pm

Mdm Chair, catering to Singaporean voters overseas and ensuring that they can cast their vote as easily as possible is important for their democratic participation. It is also, after all, a civic duty that is mandatory in Singapore.

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(467)

3.30 pm

Many Singaporeans are deprived of the chance to cast their vote at general elections or by-elections, because travelling to overseas polling stations could be very much a hassle that is impractical.

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(468)

3.30 pm

I would like to ask what percentage of all eligible Singaporean voters do overseas voters make up and how many percent of eligible overseas voters actually cast their votes in the last general election and the subsequent two by-elections.

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(469)

3.30 pm

I would like to propose for the Elections Department to come up with reasonable means for one to cast one's vote privately, without having to travel long distances or to forfeit one's right to vote. Would the Elections Department consider introducing postal ballot?

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(470)

3.30 pm

As it stands, there are only 10 designated overseas polling stations for Singaporean voters – in New York, Washington DC, San Francisco, London, Shanghai, Beijing, Hong Kong, Tokyo, Canberra and Dubai. The overseas polling stations tend to be at our embassies or consulates in these cities. We certainly have many more embassies and consulates around the world than these 10.

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(471)

3.30 pm

There should be ballot boxes in every representative state of a large country, such as Australia, where there tend to be many Singaporeans. There is a sizeable population of Singaporeans living in Perth, Sydney and Melbourne, yet there are no polling stations there. Voters from Perth would have to travel over 3,000 kilometres to Canberra just to cast their votes. This is a feedback from some of the Singaporeans living there.

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(472)

3.30 pm

Separately, there is a need to have transparency in transporting the sealed boxes of uncounted votes back to Singapore by MFA officials. There should also be a need to have a third neutral person to accompany the sealed voting boxes back to Singapore. I would like to make a proposal to the Government to educate Singaporeans on the process involved when overseas votes are brought back to Singapore for counting and tallying during a General Election.

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(474)

3.30 pm

Mdm Chair, the issue of improving access to overseas voting has been raised before at previous parliamentary sessions.

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(475)

3.30 pm

The selection of overseas polling stations takes into account several factors. First, there should be a significant number of Singaporeans living in that city and country. Second, the city must have Singapore Government managed facilities which enable the officials to exercise control to ensure that the voting process is carried out in a proper and orderly manner and the integrity of the process is safeguarded. Third, in order to ensure that we are able to optimise our limited resources, the city or country should not be so nearby that Singaporeans can travel back to Singapore to vote on polling day with relative ease.

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(476)

3.30 pm

Based on these considerations, the cities where we can site overseas polling stations are those where we have consulates or missions with sufficient mission staff to manage the overseas polls. At the last General and Presidential Elections in 2011, we had nine overseas polling stations where overseas Singaporeans could vote.

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(477)

3.30 pm

The list of overseas polling stations is reviewed regularly and the Elections Department has recently announced a new overseas polling station in Dubai to serve overseas Singaporeans in the Middle East region. Eligible overseas Singaporeans can register as an overseas elector or change their assigned overseas polling station online via the Elections Department website with SingPass authentication.

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(478)

3.30 pm

We need a balance here. We extend overseas voting by this system to many Singaporeans who are overseas and who want to vote. We also need Singaporeans themselves to take a step forward to exercise their right to vote by coming to the polling stations either in Singapore if they are close by, or to the ones which are closest to them. We have made registration for them much easier already.

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(479)

3.30 pm

In light of the demographic challenges facing Singapore, the National Population and Talent Division in 2012, after a year-long engagement and public feedback, put forward the Population White Paper which outlined the key considerations and roadmap to building a sustainable population. The vision was to build a sustainable population where Singaporeans are at the core of our nation, where we have the opportunities to pursue our aspirations and where we have a Singapore that we are proud to call our home.

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(481)

3.30 pm

I would like to ask, how we are tracking towards building a sustainable population for Singapore. What progress has been made to achieve this vision?

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(482)

3.30 pm

The strategy to build a Singaporean Core is anchored on the family at the heart of that strategy and our society. The focus is to encourage marriage and parenthood, engage Overseas Singaporeans and to bring in suitable immigrants who can contribute to Singapore. Can Minister share on the progress of this strategy?

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(483)

3.30 pm

Are the measures to encourage and support Singaporeans to get married and to have children having impact? In 2014, we did see a 10% rise in marriages involving at least one citizen. According to the latest statistics, this is the highest number of marriages in a year since 1997. Another welcome news is that more couples are having babies, too. Citizen births increased from around 31,000 births in 2013 to about 33,000 last year in 2014. This pushes up the total fertility rate (TFR) from 1.19 in 2013 to 1.25 in 2014. What were the factors driving this increase?

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(484)

3.30 pm

With globalisation and the opportunities that it presents, there is an increasing number of Singaporeans living and working overseas. How are we engaging our Overseas Singaporeans? What has the impact of these connections been? There are more than 150,000 Singaporeans living abroad, and being able to draw on this pool will be important for Singapore.

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(485)

3.30 pm

At our current falling birth rates coupled with increasing life expectancies, we are an ageing population with a shrinking citizen population and workforce. At current birth rates and if we do not have immigration, our citizen population will shrink from 2025. What is our current trend on immigration and what is its impact on our population?

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(486)

3.30 pm

Madam, while the policies outlined provide the parameters for planning to support this vision, a sustainable population with a strong Singapore Core will depend on a collective effort and engagement of the Government, Singaporeans and the community that will determine our population and our Singapore Core.

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(487)

3.30 pm

Mdm Chair, the Population White Paper sets out a roadmap to steer Singapore away from the path to stagnation and decline, given our low birth rates and ageing population. It painted a vision of how our nation could continue to be a vibrant global city. I would like to ask how the Government is tracking towards its vision of a sustainable population with a strong Singaporean Core and its plans to strengthen our

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(489)

3.30 pm

national identity and social cohesion.

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(490)

3.30 pm

I was heartened to hear that Singapore's total fertility rate had improved to 1.25 in 2014 and that there were more marriages. I would like to ask the Minister whether the positive trend can be sustained and whether we can attribute it to any Government measures implemented. What can we learn from the Scandinavian countries and France on their reversal of declining birth rates through strong pro-family and work-life balance policies implemented by their governments?

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(491)

3.30 pm

Finally, even as we work very hard to build a strong Singaporean Core, we must accept that our children, the product of our excellent education and industry system, will be ever more internationally mobile. There are plenty of opportunities in the region and around the world for the considerable talents and strong brand that Singaporeans bring. I would like to ask the Minister, how can we ensure that Singaporeans feel deeply rooted here and will always consider Singapore their home, no matter where they go? How can we help Singaporeans returning from overseas assignments, assimilate painlessly into Singapore society, especially in the areas of housing and their education for their children?

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(492)

3.30 pm

Mdm Chairman, much had been discussed in this house about maintaining a "Singaporean Core", during the debates on the Population White Paper. One of the points, we were told, is that if the Total Fertility Rate does not improve, we have to look to receiving new immigrants and integrating them, to maintain this core.

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(493)

3.30 pm

Let us not forget our own Singaporeans who are residing overseas. Some of them may have, indeed, made a very conscious decision to remain and work overseas. Others want to return, but face difficulties and barriers in doing so.

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(494)

3.30 pm

We should review the strict criteria to lift up barriers to allow all Singaporeans that have been away for more than 30 years, including self-political exiles and their families, to return home despite their different ideological positions. Their feelings for Singapore are intense and heartfelt, albeit ambivalent even after being so long away.

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(495)

3.30 pm

A few years ago, the remains of lawyer Francis Khoo were returned to Singapore upon his request.

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(496)

3.30 pm

As Singapore celebrates its 50 years' golden jubilee and moves to a new era of being a first-world country, our mindset must change to allow not only the norm Singaporeans but controversial political exiles and their families to return to their homeland if they so wish.

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(498)

3.30 pm

This is also a way of bringing back talents to serve the country.

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(499)

3.30 pm

I must commend the Overseas Singaporeans Unit at the PMO for their excellent job in organising Singapore Day over the past few years, in New York, London, Shanghai and Melbourne. But we must go further, beyond just maintaining the connection Singaporeans have with their place of birth. We must proactively ensure that the barriers which prevent Singaporeans from re-settling back here must go.

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(500)

3.30 pm

I would like to ask the Prime Minister, what is the number of Singaporeans who have come home to settle permanently since 2011, the progress it has made so far in encouraging Singaporeans to come back and how active has the Overseas Singaporeans unit been in keeping track of overseas Singaporeans.

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(501)

3.30 pm

If there is one thing I would like to suggest that might cause overseas Singaporeans to reconsider returning, it would be a welcoming environment.

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(502)

3.30 pm

Mrs Chiam, your time is up. Ms Lee Li Lian, you have two cuts, please take them together.

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(503)

3.30 pm

(Punggol East): Today, in Singapore, four in 10 marriages involving Singaporeans are between a Singaporean and a non-Singaporean. Yet, despite this increasing trend, many Singaporeans who tend to be lower income face a huge challenge getting their spouses the appropriate pass to stay in Singapore for long term and live as a stable family unit.

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(504)

3.30 pm

Today, we know that there are over 11,000 LTVP holders, including LTVP Plus holders. However, today, we are unable to track the number of spouses who only get short-term visit passes which require them to move in and out of the country and do not allow them to work in Singapore.

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(505)

3.30 pm

I would like to ask the Minister why it is that we are unable to track this number today and if there is a way to work towards being able to do so. Many of these foreign spouses on social visit passes tend to be female. If they have children, the children often have to shuttle in and out of Singapore along with their mothers. Extension of the social visit pass also takes time and there is no guarantee that the foreign spouse will be granted that extension. Such conditions create a lot of stress on a family who cannot plan a stable life together long term, given the constant disruption and unknown outcomes.

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(507)

3.30 pm

We know, today, with the cost of living, it is very hard for a family with children to manage on a single income. Many of these foreign spouses would like to work and help support their Singaporean spouse and family but they are not able to do so because they are on short-term visit passes.

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(508)

3.30 pm

In cases where the Singaporean spouse who is the sole breadwinner passes away or becomes critically ill, the foreign spouse has little ability to support the family without working or being able to stay here long term.

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(509)

3.30 pm

I understand the need for caution and that we do not want to encourage sham marriages in exchange for benefits. However, no Singaporean should be unduly penalised for his or her choice in a marriage partner based on social status or income level.

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(510)

3.30 pm

The current criteria for applications regardless of long- or short-term passes, PR or citizenship should be made more transparent. We should prioritise long-term stays for foreigners married to Singaporeans, especially when there are children involved. They are a group that is naturally integrated in the Singaporean Core and priority should be given to them when granting new citizenships.

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(511)

3.30 pm

Madam, we need to be able to distinguish foreigners who want to make a home here from those who want to use Singapore as a transit point. With that, I urge the Government to provide more information on this family unit and support their efforts to make Singapore a home.

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(512)

3.30 pm

My next cut. The Child Development Account is part of the Baby Bonus and is a savings account where parents' deposits are met dollar-for-dollar by the Government, up to a cap ranging from $6,000 to $18,000, depending on the birth order of the child. In 2013, parents were given 12 years to deposit up to the savings cap, when previously they only had six years.

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(513)

3.30 pm

Giving a longer time period to save up to the cap, while intended to be kind-hearted, still does not go to the heart of the problem – the lower-income households are very much less likely to have spare funds to deposit into their CDA. A child's education needs have to be managed from the very start to ensure that all children have the chance to access as many opportunities as possible, not just those from higher-income households.

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(514)

3.30 pm

The suggestion to remove the matching criteria was brought up twice in this House during COS since 2013. The reply then was that the objective of such schemes is to help parents defray some of the cost of raising a child while recognising that the primary

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(516)

3.30 pm

responsibility for the care and development of the child rests with the parents.

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(517)

3.30 pm

I acknowledge and agree that the care and development of the child is the responsibility of the parents. However, a Parliamentary Question reply on 7 July 2014 showed that only 48% of the total number of CDAs in the birth cohort of 2006 to 2013 saved to the maximum co-savings cap.

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(518)

3.30 pm

To account for the lower income households with less disposable income available to divert into savings, Madam, I would like to recommend a system of ratio of dollar-for-dollar matching from the Government starting from a base of a monthly household income of $2,000. Every dollar deposited would attract a $3 match from the Government. The ratio of dollar-for-dollar would decrease as the household income rises and, eventually, normalise at the current rate when it hits $6,000.

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(519)

3.30 pm

We can follow the household incomes as set out on the ECDA childcare subsidy. This would give even greater incentive to lower income households to save for their children's future, encourage co-responsibility, give more targeted assistance to those in need and ensure a levelling of opportunities available to children from lower income households.

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(521)

3.30 pm

(In Malay): [Please refer to Vernacular Speech.] In the Prime Minister's speech during the debate on the Population White Paper, he gave the assurance that the Government would try to ensure that the proportion of Malays in Singapore would continue to be stable.

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(522)

3.30 pm

The same assurance was also given by Minister Grace Fu during the COS debate in 2014, where she said that the Government is committed to maintain a stable ethnic make-up within the population of Singaporeans. In the same speech, she also gave the assurance that in 2030, the proportion of Malay Singaporeans will be the same as the current proportion.

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(523)

3.30 pm

Some measures taken by the Government to maintain this proportional balance includes bringing in Malay talents from Malaysia and Indonesia. The Prime Minister previously commented that the Government has been working hard and wants to do its best to attract Malay talents from the region.

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(524)

3.30 pm

Madam, the Malay community and I would like to ask whether the Government has created a roadmap or plan in its effort to attract these Malay talents. If so, it is important to have a plan in order to achieve a certain objective. Therefore, if the Government has such a

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(526)

3.30 pm

plan, I request that the Government share this plan. At the same time, I would like to ask the Government to share its progress in this effort. This sharing is necessary because it will enable the Malay community to better understand and appreciate the Government's efforts in this matter.

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(527)

3.30 pm

Secondly, this sharing will also create a space and encourage the Malay community to participate and contribute ideas, so that this effort to attract Malay talents can be strengthened. This is in line with what was said by the Deputy Prime Minister and Minister for Home Affairs Mr Teo Chee Hean in his speech during the COS debates in 2013, where he welcomed suggestions and ideas on how we can make Singapore a more attractive destination to Malay immigrants.

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(528)

3.30 pm

Mdm Chairman, as an open economy, social diversity will be a permanent feature here. An inclusive workforce with people from diverse cultural backgrounds and nationalities also enhance our competitiveness in the region. I believe that a majority, if not all Singaporeans and foreigners living in Singapore, appreciate the social harmony and diversity that Singapore has. Thus, together, we must guard against deliberate behaviour that may potentially disrupt the balance that we have painstakingly achieved, as well as in sensitive remarks in both the online and offline social space that may injure the feelings of the different communities residing in Singapore.

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(529)

3.30 pm

May I know what more does the Government intend to do to ensure Singapore's social cohesiveness is preserved with our increasing diversity? What more does the Government plan to do to build a resilient society that appreciates and embraces communal differences?

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(530)

3.30 pm

Madam, many foreigners here in Singapore might be living in a multi-religious and multicultural society for the first time in their life. Coming from a homogenous society that is culturally different from ours, these foreigners may not be fully aware of how their actions and speech may potentially unbalance the harmony that Singapore took so long to build. I would like to know whether the Government's outreach efforts that have been put in to promote integration are effective. Would the Government consider providing more support to strengthen our outreach by our grassroots organisations and NGOs, like the Migrant Workers' Centre?

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(531)

3.30 pm

Madam, Singapore was ranked first out of 50 major investment destinations in the latest Business Environment Risk Intelligence called the BERI report. From the viewpoint of business, Singapore's favourable operating conditions come

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(533)

3.30 pm

from her stable political and economic environment. Plainly put, our open economy has served us well but this does not go down well with many Singaporeans. Many are dismayed by the influx of foreigners lured by a thriving and very liveable environment because Singaporeans expected growth that would provide us with more spaciousness and comforting familiarity for us to grow old in. The Little India incident not too long ago caused quite a number of people to feel that our cherished social order is crumbling fast. It is important that the Government dispel the notion that more openness makes us vulnerable. In short, what more can we do to maintain a cohesive society as we continue to welcome those who can contribute to our continued prosperity?

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(534)

3.30 pm

Ms Kuik Shiao-Yin, you have two cuts. Take them together, please.

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(535)

3.30 pm

Madam, the commitment to equalisation of opportunities is one of the most powerful promises we ask our children to make every morning when they say the pledge. To build a city based on justice and equality, we have to be constantly vigilant in closing the gaps of inequality, rather than widening them by giving further advantage to those who already have more.

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(536)

3.30 pm

During Budget, I talked about how between what we say, what we do and what we reward will always speak the loudest to our audience. So, no matter how sincerely and how often the state says that all children are supported equally in Singapore, as long as there is such a high-profile difference between how we reward the single mother and the married mother for what is essentially the same act of childbearing, people will disbelieve.

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(537)

3.30 pm

The Baby Bonus and Child Development Account alone can represent up to $12,000 worth of benefits that could be spent on a child's welfare. That is not an insignificant or theoretical difference to any mother, let alone a single working mum raising a child of special needs. I see two possibilities that not only communicate more accurately our commitment to equalisation of opportunities but, apparently, more effective in bringing up the fertility rate anyway.

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(538)

3.30 pm

First, what if we focus more of our resources on making high quality childcare even more affordable and universal instead of doling out cash subsidies or tax rebates as rewards for births?

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(539)

3.30 pm

Currently, since childcare subsidies favoured dual-income families, many stay-at-home mums and single mums opt to care for their children themselves or outsource it to a grandparent. In fact, many working mums still opt for foreign domestic workers to take care of their kids as even subsidised professional infant care is beyond their budget. The quality

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(541)

3.30 pm

of the child's care then depends on how educated and conscientious the mother herself, grandparent or maid is and this current situation then creates inequalities from the onset because, really, it is mostly the children of higher income working couples who benefit most from early exposure to professional education at our best commercial childcare centres versus children who only experience babysitting of varying degrees of quality.

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(542)

3.30 pm

Second, what if we also focus our resources on incentivising fathers to be equally present for their children? Research shows that more involved fathers lead to more positive outcomes on children's well-being across all income classes.

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(543)

3.30 pm

The countries which successfully reversed their trend of falling fertility rate were also the ones that most aggressively used policy to encourage fathers and mothers to co-parent equally. To inspire such change, we cannot just offer a token one week of paternity leave. Many modern dads want to be involved. Let us incentivise more involved fathers by converting more of our maternity leave into shared parental leave that either parent can opt to take.

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(544)

3.30 pm

To equalise the early education of all our children, I hope we can consider plotting our way towards the Swedish strategy of increasing fertility by creating an excellent ecosystem of universal, affordable educational childcare. Most Swedish children go to a preschool of trained educators, even when there is a parent still at home because nurseries are seen as high-quality places to be. And since parental leave is so generous there, almost every child is simultaneously being cared for by both their mum and dad, at least until their first birthday as well. So, Swedish children get the best of both worlds.

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(545)

3.30 pm

The Swedish system even caters to a diversity of working arrangements, like overnight centres for children of single parents who have to do shift work. This empowers more parents to stay in paid employment. A 2011 OECD study discovered that countries like Sweden which invested in services, such as childcare, versus giving money away to families in subsidies were much more successful at reversing declining fertility rates. So, it looks worthwhile for us to follow suit.

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(546)

3.30 pm

My second cut is on reimagining integration programmes. Madam, everything is story and every one of us sitting here in Parliament and outside of it is a character. Every single moment, someone is reading and interpreting us and writing another story of their own and how fair and accurate that narrative may end up with completely depends on their skill of interpretation and this is why Singapore needs to bring back the study of literature again.

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(548)

3.30 pm

The skillsets that literature teaches may be exactly what we need to help young people deal with a growing climate of conflicting narratives that are sowing confusion, fear and division. I could have filed this cut under MOE but I filed it under PMO instead because I do think the declining literature rate does impact on our ability to integrate as a nation.

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(549)

3.30 pm

From 1992 to 2012, we saw a 80% to 90% drop in youth studying literature and the cost of our declining sophistication in language is invisible and it does look insignificant, but it is not. You see the cost play out every day in ugly Facebook status updates and all those xenophobic comments on The Real Singapore. This is what happens when people do not appreciate the creative and destructive power of words. People are reading, writing, interpreting, criticising every day and the problem is too many of them are doing it really badly.

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(550)

3.30 pm

Literature teaches us how to interpret subtexts through evidence, not just emotion. Literature teaches us the patience to read through thousands of words, a skill you need to process an entire white paper or a ministerial speech. Literature teaches us to spot those who used hyperbole to stir us to hate and empowers us to use words with sensitivity and nuance when we respond back on Facebook, trying to spread peace online. Literature helps us to negotiate different perspectives, empathise with different characters and form thoughts for opinions and where, in an increasingly partisan political environment, he who knows how to tell the best stories wields the greatest influence.

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(551)

3.30 pm

The impact of literary awareness cannot be underestimated. An unliterary society will be a politically and culturally immature one. Invest in the literary education of our young people and you invest in the possibility of more informed citizens and objective voters as well. So, we should rethink the role of literature and, for that matter, social studies in school. We need a radical linkway forward to understand a radical new kind of nation. Perhaps, literature, as a new sort of social studies, is one answer. We can study local narratives, fiction and non-fiction, understand character and conflict, identify biases, explore local themes and deconstruct local narratives.

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(552)

3.30 pm

Identity, like integration, is built through a sum of choices, the kind that you learn through an extended programme or a curriculum, not ones of experiences. If we want young people to learn how to build a common narrative and integrate with each other, it is not going to be just through piecemeal events like Racial Harmony Day. At 50 years old, we are still in the middle of writing our national story. So, let us help the next generation write a really great one together.

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(555)

3.30 pm

Mdm Chairperson, I would like to thank Members for their questions.

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(556)

3.30 pm

Ms Jessica Tan and Ms Foo Mee Har have asked about our progress towards a sustainable population for Singapore. We saw positive signs in 2014, with more couples marrying and having children. Citizen births have risen to around 33,000 births, up from about 31,000 births in 2013, and the TFR has increased to 1.25 from 1.19 the year before. There were about 24,000 marriages involving at least one citizen in 2014, the highest since 1997. We are heartened by these encouraging developments.

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(557)

3.30 pm

We have maintained our calibrated approach for immigration. Last year, 20,348 Singaporean Citizenships (SCs) and 29,854 new Permanent Residencies (PRs) were granted. The size of our Permanent Resident population has stabilised and, in fact, fallen slightly in the last two years. Overall, our immigrants help to prevent our citizen population from shrinking.

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(558)

3.30 pm

We remain on track for slower and more sustainable population growth. Our total population grew last year, but the overall growth rate of 1.3% was the slowest in the last decade, in line with what was proposed in the Population White Paper. This is due to concrete measures taken to moderate foreign workforce growth. As we restructure our economy, we expect the tight labour market to continue. We recognise that this is a challenging period and have, as announced in the Budget, increased the support for businesses by expanding the Special Employment Credit, deferring some of the levy increases for S Pass and Work Permits planned for this year and supporting innovation and internationalisation.

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(559)

3.30 pm

Within our citizen population, the median age increased to 40.4 years and the proportion of those aged 65 and above rose to 12.4%. More of our older Singaporeans are remaining active and meaningfully engaged. And many of the measures in the Budget, including CPF adjustments and the Silver Support Scheme, are intended to put our older Singaporeans in a position to be better prepared for the future and to ensure a high quality of life even as more Singaporeans age.

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(560)

3.30 pm

In all, we remain committed to our goal of a sustainable population, to ensure that Singapore remains a good home for Singaporeans of all ages to live, work and play.

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(561)

3.30 pm

We will continue to grow and strengthen the Singaporean Core in the workforce. We strive to provide the right programmes and resources, so that all Singaporeans have access to fulfilling career opportunities.

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(563)

3.30 pm

More Singaporeans, especially older workers and mothers, are re-joining and remaining in the workforce. The labour force participation rates for those aged 55 to 64 and for women have risen steadily over the past decade. Singaporeans and their employers can tap on schemes, such as WorkPro, to support back-to-work Singaporeans. In addition, childcare subsidies and leave schemes have helped working mothers to better achieve their family and career aspirations. Through SkillsFuture, we are enabling Singaporeans to develop to their full potential through lifelong learning and mastery of skills.

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(564)

3.30 pm

Overseas Singaporeans, too, are part of this vision for the Singaporean Core. And I thank Mrs Lina Chiam, Ms Jessica Tan and Ms Foo Mee Har for speaking so passionately about engaging Overseas Singaporeans.

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(565)

3.30 pm

Indeed, Singaporeans go abroad for various reasons, such as work and study. Through outreach efforts of the Overseas Singaporean Unit (OSU), we keep in touch with them, so that they maintain ties back home and remain committed to Singapore's shared future.

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(566)

3.30 pm

We coordinate efforts across Government agencies to facilitate those who wish to return. Contact Singapore facilitates career opportunities, while MOE helps with school admission and placement for children. The OSU runs programmes, such as Camp@Home for students who are back in Singapore for holidays, to familiarise them with life in Singapore, for a smoother re-integration when they return.

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(567)

3.30 pm

Employers are hiring returning Singaporeans because of their skillsets and global outlook. One example is Ms Rena Sim, an occupational therapy specialist who completed her degree in Australia last year. Despite having opportunities in Australia, Rena chose to return. She says, "My main takeaway from having lived abroad is to be appreciative of what Singapore has done for me and not forget my family who has been so supportive". Rena got in touch with Contact Singapore through career fairs and secured her current position as an Occupational Therapist with Thye Hua Kwan Therapy Services. Occupational therapy is growing in demand in Singapore and Rena looks forward to applying her expertise gained from her time in Australia to help fellow Singaporeans.

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(568)

3.30 pm

As for the individuals whom Mrs Lina Chiam referred to, these people have chosen to remain in self-imposed exile. Some of them are liable for outstanding offences which they are required to resolve with the authorities. They cannot be expected to be placed above the law. Others have outstanding security cases and would need to resolve their cases with our security agencies. For example, those who were involved or associated with the violent Communist Party of Malaya (CPM) would have to sever ties with the CPM, renounce violence

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(570)

3.30 pm

and be interviewed by the security agencies. These conditions are not new or unreasonably onerous. Many of their former CPM compatriots had accepted them and gone on to resettle in Singapore with their families.

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(571)

3.30 pm

Even as we build up the Singaporean Core in our workforce, it is important that Singapore remains open to foreigners. Foreigners help to plug gaps that cannot be filled by Singaporeans, provide expertise and ideas to kick-start new sectors and transfer skills that enrich our local workforce and businesses. For example, research and development in Singapore has benefited from the experience and expertise from around the world and has resulted in several breakthroughs, such as more effective treatment of tuberculosis and underwater robotics. The result is a more flexible and competitive workforce which is responsive to the shifting global business environment.

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(572)

3.30 pm

On the marriage and parenthood front, we hope that the increases in both marriages and births in 2014 will mark the start of a positive trend, with even more marriages and births in Singapore's 50th year of Independence.

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(573)

3.30 pm

Singaporeans have given us positive and enthusiastic feedback on the SG50 Baby Jubilee Gift initiative and we hope this warm reception will mean that we will give out many more Jubilee Gifts this year. On this note, we would like to remind everyone that there is still some time left, although not very much, and it is not too late to have a SG50 Baby!

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(574)

3.30 pm

Supporting Singaporeans in their marriage and parenthood aspirations remains a key priority in our population policies. Over the past few years, we have enhanced our Marriage and Parenthood Package, and invested significantly in support measures like enhanced housing options and more affordable quality childcare.

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(575)

3.30 pm

Ms Lee Li Lian and Ms Kuik Shiao-Yin have suggested improving the support given to parents. There are several initiatives in this Budget to support families and children through their developmental years, amounting to an estimated $470 million in 2015. For instance, there are measures targeted at lowering education costs, including enhanced financial assistance schemes for students, waiver of examination fees, and top-ups for the Child Development, Edusave and Post-Secondary Education Accounts. The Foreign Domestic Worker concessionary levy has also been halved.

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(576)

3.30 pm

Ms Kuik suggested improvements to the childcare sector to provide equal opportunities for all children. To help give every child a good start, the Early Childhood Development Agency, or ECDA, is increasing pre-school places, enhancing subsidies and strengthening the pipeline of quality manpower. ECDA will be introducing the Partner Operator Scheme, or POP, to complement the Anchor Operator Scheme, AOP. Childcare operators on the scheme

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(578)

3.30 pm

will have to commit to keeping fees affordable, developing their teachers and enhancing the quality of their centres. The Minister for Social and Family Development will provide more details in his speech.

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(579)

3.30 pm

Ms Kuik also suggested enhancing leave for fathers to encourage shared parental responsibility. We agree that fathers and mothers should play a more equal role in raising their children and have been strengthening support for fathers over the years through measures, such as paternity leave and shared parental leave, which we introduced in 2013. We will monitor if this should be enhanced and will continue to study ways to encourage fathers to play a more active role in child-raising and to strengthen work-life support for working parents, in partnership with employers. We are glad to see that more companies are putting in place flexible work arrangements. Progressive employers assess and value their employees based on the quality of their work, rather than "face-time". This benefits the employees and also gives companies a competitive advantage in talent retention and recruitment.

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(580)

3.30 pm

Singapore company, Home-Fix, is a good example. Home-Fix educates its middle management on making work-life initiatives more accessible to its employees. The company is reaping dividends, as employees who feel engaged and satisfied go the extra mile to provide excellent customer service. The company can also better retain and groom talent from within. Many companies in the retail sector expect their frontline staff to work six days a week and to avoid taking days off during peak business days – typically on weekends. Mr Alvin Tay, Branch-in-Charge at Home-Fix Marina Square, appreciates that his company has made the bold move to buck the industry norm. He has the option of a five-day work week, and two days off on weekends per month, which gives him more quality time with his wife and two-year-old son. Alvin has been with Home-Fix for 10 years. Other commendable examples include Citibank Singapore, IT and business technology firm Avanade Asia, and translation and copywriting firm Elite Translations Asia. These companies are from very different industries and vary in size. Yet, all of them exercise the same foresight in investing in programmes that take employees' work-life needs into account, to the mutual benefit of employees and the business.

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(581)

3.30 pm

We will continue to look at providing integrated support along the marriage and parenthood journey and encourage greater shared parental responsibility for both fathers and mothers to care for and bond with their children. These are key factors that have contributed to the higher TFR in the Nordic countries.

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(582)

3.30 pm

Ms Kuik suggested treating children equally, regardless of whether they are born to a single parent or a married couple. We understand that parenthood is a challenging journey and we have along the way buttressed the support for families. We value every Singaporean child and are committed to giving all Singaporean children a good start in life. Our M&P

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(584)

3.30 pm

Package and the related initiatives announced in the Budget, support different objectives and different phases of a couple's life: from marriage, getting a first flat, conceiving and delivering a child and raising a child – whether it is cost involved in education or healthcare – to supporting women to continue working. So, it is a whole package with a slew of announcements, but each meeting a different social objective, rather than a single initiative that meets all objectives. So, by having a slew of initiatives, we hope that we are able to fulfil different needs from different perspectives.

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(585)

3.30 pm

Single parents who are widowed or divorced would have received the same benefits as married parents. For those single parents who have not ever been married, while incentives to encourage marriage would not be available to them, they are able to tap on benefits, such as the Medisave grant and MediShield coverage for newborns, child care and infant care subsidies, and childcare leave for parents. The Government has, over time, enhanced the benefits that these single parents can tap on for their child.

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(586)

3.30 pm

Stay-at-home mothers can enjoy most of the measures under the Marriage and Parenthood Package. All parents, regardless of work status, are supported with some child and infant care subsidies. Working mothers receive more subsidies as they may need to send their children to full-day childcare programmes, whereas non-working mothers have the option of sending their children for half-day childcare or kindergartens, both of which would have cost less. And for stay-at-home mothers, the SkillsFuture will benefit them directly, having not been able to benefit from employer-sponsored training.

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(587)

3.30 pm

I am glad to hear that Ms Lee Li Lian supports the CDA scheme being a co-savings scheme with the Government supporting parents who wish to save for their children. Ms Lee suggested further support for lower-income families. There is currently support for low income families through several Government schemes, such as ComCare assistance schemes, additional infant care and childcare subsidies and subsidies under the Kindergarten Fee Assistance Scheme.

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(588)

3.30 pm

Also, in response to Ms Kuik's suggestion earlier on, we try as much as possible with schemes, such as the childcare subsidies or infant care subsidies, to address the needs of those who have lower income and are, therefore, in need of greater financial support. Low-income families, for example, pay as little as $3 per month for childcare and $1 per month for kindergarten. So, in terms of equalising support for the child, I think some of these schemes do go a long way to try as much as possible to make up for a different starting point. I just take, for example, the basic universal childcare subsidy which is $300 for all mums, but if you are a low-income family, you will get up to probably $400, $450 more a month. And if you analyse, let us say, for five years of the child's preschool education, that would more than make up for any difference in the Child Development Account or Baby Bonus.

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(590)

3.30 pm

And eligible first-timer lower-income couples who purchased BTO flats, for example, are subsidised heavily for housing. They may receive housing grants of up to $60,000. And those who purchase resale flats can receive housing grants of up to $80,000, comprising the CPF Housing Grant of up to $40,000 which is available to all first-timer applicants of resale flats, and the Additional CPF Housing Grant of up to $40,000 given to lower- and middle-income first-timers. So, there are schemes to address the financial needs of low-income couples.

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(591)

3.30 pm

The Baby Bonus Scheme is part of the overall Marriage and Parenthood Package to provide parents with broad-based support in their parenthood aspirations. It is designed to be in line with the principle that parents bear the primary responsibility for the care and development of their children, with support from the Government. So, we are in agreement with Ms Lee. With regard to Ms Lee's specific proposal about changing the ratio of support, that is a suggestion that we welcome and we will look carefully into the effectiveness of the scheme.

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(592)

3.30 pm

On foreign spouses, there are immigration facilities available to support the family and the foreign spouses to settle in and integrate. These include the Long-Term Visit Pass (LTVP) and Long-Term Visit Pass Plus (LTVP+) which enable the spouses to be employed and have access to some medical benefits and, over time, progress towards naturalisation as PRs and citizens.

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(593)

3.30 pm

As at end-December 2013, we have around 39,200 foreign spouses who had taken up PR and then citizenship under the Family Ties Scheme. This cumulative figure has since grown to about 78,900 by end-December 2014.

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(594)

3.30 pm

The Government recently introduced a series of measures to help Singaporean foreigner couples better plan for their future and to support such cross-cultural marriages. The Pre-Marriage LTVP Assessment (PMLA) introduced in January this year provides couples with greater clarity on their eligibility for LTVP before marriage. It is also now easier for foreign spouses who hold an LTVP or LTVP+ to seek employment. Prospective employers of foreign spouses with LTVP or LTVP+ only have to apply for a Letter of Consent (LOC). These foreign spouses will not be subjected to Work Permit restrictions and their employers are not required to pay the foreign workers' levy for them.

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(595)

3.30 pm

The Government also launched new marriage programmes to help Singaporean-foreigner couples better manage cross-cultural differences, equip the foreign spouse with basic conversational English and introduce the couples to useful community resources. Since

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(597)

3.30 pm

the measures were introduced in January 2015, ICA has received 726 applications for PMLA in the first month and 93 couples have attended MSF's Marriage Preparation Programme or Marriage Support Programme. As the measures were only introduced very recently, we will continue to monitor the effect closely.

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(598)

3.30 pm

Mr Yeo Guat Kwang, Ms Jessica Tan and Ms Ellen Lee have asked about maintaining our strong and cohesive society. As Singaporeans, we are proud of our multicultural heritage. We worked hard over the years to strengthen the cohesion of our multicultural society. And we will need to apply constant effort to maintain this as our population becomes more diverse.

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(599)

3.30 pm

Immigrants are attracted to Singapore for the opportunities and the way of life here. To address Mr Muhamad Faisal Manap's question, Malay migrants have similar considerations in deciding whether to come to Singapore. We will continue to welcome new immigrants of all ethnicities, including Malays, who are willing and able to integrate well, share our values and contribute to our society. I am glad to note that Mr Faisal Manap is supportive of immigration and is making a suggestion for a plan to attract Malay migrants.

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(600)

3.30 pm

New immigrants help to enrich our multicultural society and bring new perspectives, ideas and solutions. However, as newcomers take time to adapt, frictions may arise. It is understandable that Singaporeans are concerned with the impact of these changes to our identity as a people. It is important that newcomers adapt to and respect our way of life. Those who choose to settle down here for the long term must share our values and be committed to our common future. At the same time, let us remain confident of our ability to strengthen and enrich our Singaporean identity, as we reach out to friends, neighbours, co-workers and even family members who have come from beyond our shores.

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(601)

3.30 pm

There are signs that we are making progress. I am heartened to observe many instances where people, Singaporeans and newcomers alike, treat one another with respect and consideration. There are many stories of friendships between Singaporeans and newcomers. We are also seeing more balanced responses to reports of undesirable behaviours by individuals, which tend to gain traction quickly on social media. As and when tensions arise, everyone must make the effort to keep a cool head and work together to resolve them.

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(602)

3.30 pm

We will continue to strengthen integration efforts by leveraging natural touch points, such as in schools and workplaces, and through ground-up and community-based efforts. Mr Yeo Guat Kwang has suggested grasssroots organisations, NGOs and so on. We welcome the participation of all such groups.

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(604)

3.30 pm

We share Ms Kuik's passion about the use of Literature. The teaching of Literature and Social Studies are important in cultivating values, such as resilience and a commitment to social cohesion, as well as the skills in understanding and evaluating different perspectives. We agree with Ms Kuik's observation. Besides these subjects, there is also the Character and Citizenship Education (CCE) curriculum where, through Learning Journeys and Co-Curricular Activities, all students are taught to put the values into practice. We have encouraged our students to pursue learning in their interest areas. Minister Heng Swee Keat has emphasised in this House that learning should go beyond grades, to learning for mastery of skills as well as internalising important values. Our education system will continue to provide multiple pathways for students to pursue their interests and be all-rounded learners.

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(605)

3.30 pm

In the wider society, there is growing awareness of the importance of integration. We are encouraged by the enthusiasm of individuals, communities and organisations that want to play their part. We provide resources to support and synergise these efforts, including co-funding ground-up integration projects, through the Community Integration Fund. We look beyond one-off events. That is why in our selection of projects to co-fund, we pay more attention to those which encourage meaningful interactions and promote positive mindsets between Singaporeans and newcomers.

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(606)

3.30 pm

One example is the Breaking Boundaries @ SIM programme, in which Singaporean students lead newcomers on an experiential tour around Singapore. Along the way, they share about Singapore's social norms and local culture. Friendships begun this way are strengthened as the participants later go on to work together on other projects. Programmes, such as this, help participants to deepen and sustain their relationships with one another.

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(607)

3.30 pm

We are also always on the lookout for new and innovative approaches. Last year, we co-funded "Encounters 2014", a series of playback theatre performances involving Singaporeans, new immigrants and migrant workers. Audience members were invited to share their personal encounters, which the performers then enacted through improvisation. "Playing back" these stories help audiences to reflect on their own experiences and consider their own assumptions about people from different backgrounds. We are happy to work with the community to explore other fresh ideas that can bring more groups together.

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(608)

3.30 pm

The goal of our population policies is to build a better Singapore for our people. Singapore will be a good place to raise children, where we can enjoy quality family time and build strong families. Our society and economy will remain open, to provide ample opportunities for Singaporeans to fulfil their aspirations. In our cosmopolitan society, there will be harmonious relations between people of different backgrounds and we will build a cohesive nation united by shared values and goals.

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(610)

3.30 pm

I read with interest the recent articles by Mr Sourav Roy in The Straits Times where, on behalf of foreigners living here, he expressed deep gratitude for Singapore, and said, "We want to be a part of you, not for what we can take from you but for what we can share with you". First and foremost, he wanted to share his love and respect for our "wonderful country" and its "beautiful people". What was encouraging was that a foreigner had put into words all the good he sees in Singapore and Singaporeans and expressed his desire to start his family here and contribute to this place. It takes someone, sometimes with a different perspective, to help us see who we are. What was even more heartening was the response from Singaporeans, who welcomed him and invited him into their lives. This, to me, is quintessentially Singaporean – to be generous of heart and to be able to see the person behind the differences.

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(611)

3.30 pm

Even simple gestures – taking the time to say "hello" or sharing a meal together – can open the door to deeper interactions and understanding. Let us make it a point this year to greet, meet and eat together and be involved.

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(612)

3.30 pm

Singapore has achieved much. Through our collective efforts, we are confident that we will remain a cohesive society and we can realise Singapore's promise as a vibrant global city and an endearing home for all of us.

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(613)

3.30 pm

I would like to make two points on Singapore's monetary policy. Recently, the MAS made a surprise and unexpected move on 28 January, when it announced the easing of monetary policy by reducing the slope of its policy band in an unscheduled meeting. News reports last week have quoted economists as saying that they expect the MAS to further ease monetary policy in April.

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(614)

3.30 pm

While I understand that the easing was done to arrest a slowing economy and low inflation numbers, however, I am concerned by this approach, if the MAS is going to continue on a continued easing policy.

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(615)

3.30 pm

For one, the impact on Singaporeans and households could be strong. Even though we are far from inflation, but the prices of certain items that Singaporeans consume would increase in tandem with the easing because of higher import costs.

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(616)

3.30 pm

This is especially true for food prices because you can expect the cost of food, vegetables and meat to increase as they are all imported. Already, last week, I went to the hawker centre for lunch and the tea that I normally pay $1 for has now gone up to $1.10.

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(618)

3.30 pm

I think we can expect price increases across-the-board as import costs of raw materials will increase in tandem with a weaker Singapore dollar. I, therefore, worry that prices of other goods and services will now rise faster as we are impacted by more imported inflation.

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(619)

3.30 pm

At the end of the day, I am most worried about the lower-income households in such import-led price increases. Our local statistics have shown that price rises affect the bottom 20% of households more than any other income brackets, especially for items such as food and clothing. The Government already utilises precious resources to help Singaporeans in this group, as can be seen in this year's Budget as well. You do not want our monetary policy easing to offset some of these as it will result in an inefficient allocation of resources.

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(620)

3.30 pm

I think our SMEs will also be similarly affected by higher import costs. Although I agree that a portion of them may inadvertently benefit from a lower Singapore dollar, which may make their goods more competitive in the international markets and, thus, also boost our exports, this is not a given for all.

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(621)

3.30 pm

Not all our SMEs produce goods for export. There is a significant proportion that also produces for the domestic market and not to mention service businesses, which cater to local customers only. For such companies, they may not benefit from a lower Singapore dollar but, in fact, would suffer from higher cost of imports.

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(622)

3.30 pm

I would like to urge the Government to reconsider the easing of monetary policy as the main tool to boost growth and help spur the economy. Its trade-offs could be more than what we bargain for.

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(623)

3.30 pm

Mdm Chair, whilst the overall consumer credit situation in Singapore is in good shape, we should be concerned about the fate of one group of borrowers who are already heavily indebted.

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(624)

3.30 pm

By 1 June this year, MAS has announced the imposition of a borrowing limit of one year's income for every individual's aggregated credit card and unsecured debts across banks. I applaud this measure for ensuring fiscal prudence in a pre-emptive way. However, we must ensure that the heavily-indebted borrowers, those who already chalked up debts larger than their annual income, are able to unwind their positions in an orderly manner. This group of borrowers typically borrow from one lender to pay another, constantly revolving their loans in order to keep afloat.

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(626)

3.30 pm

In Minister Lawrence Wong's reply to me in Parliament last year, he estimated that this group comprised about 6,000 people, based on the data available to him at that time. However, from sources in the banking industry, I have heard of estimates of 50,000 or 60,000 or even higher. Furthermore, the level of indebtedness of many individuals extends well beyond the one-year income limit. Could the Minister please provide an update on the latest estimated numbers?

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(627)

3.30 pm

Madam, I have witnessed the heartbreaking consequences of credit failure and hardship suffered by individuals, families and society during the credit card crises in Hong Kong, Korea and Taiwan. The Government can play a big role to facilitate orderly deleveraging by both individuals and financial institutions. They can set rules for restructuring loans and ensure sufficient credit counselling capacity to help individuals work through their financial situation and find the path to recovery.

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(628)

3.30 pm

Given the potentially large population of borrowers that could be impacted, I would like to ask MAS how it will work with financial institutions to avoid a credit crisis and whether there is sufficient capacity in banks, as well as Credit Counselling Singapore, to deal with a potentially large volume of cases.

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(629)

3.30 pm

Would MAS consider a more gradual easing of legacy debt burdens by taking a phased approach, starting with those segments which are most severely indebted, for example, with debts greater than two years' income, before working through less indebted segments, over a more extended timeline? This will also allow the system to be fine-tuned along the way, as we learn lessons from implementation.

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(630)

3.30 pm

To help individuals unwind from their excessive debt burdens, I urge the Government to facilitate a debt restructuring programme on lower interest rates, compared, for example, to the 24% that borrowers typically pay on their credit card loans. With the lower interest rate, only then will individuals have a chance to systematically pay down their debts and banks recover their loans.

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(631)

3.30 pm

To prevent individuals from turning to moneylenders out of desperation, I would like to ask the Minister if regulations for the moneylending industry will be changed in tandem with implementation of the rule set by MAS, so as to ensure that the unsecured credit market functions in a coordinated way.

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(632)

3.30 pm

Madam, we must engineer a soft landing for the heavily-indebted borrowers. With the right level of support, resolve and determination, I am confident that many will be able to

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(635)

3.30 pm

Madam, financial services employed over 130,000 Singaporeans as at June 2013, contributing about 12% of GDP. We know that some 70% of employees in the overall financial services sector are Singaporeans. But there exists a perception that there are not enough Singaporeans in the leadership tiers of the financial services sector.

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(636)

3.30 pm

The Government has been cognisant of the need to groom a Singaporean Core in financial services. In 2012, Deputy Prime Minister and Minister for Finance Mr Tharman spoke about how MAS was creating programmes to groom Singaporean talent in the financial services sector. The Managing Director of MAS, in 2013, also spoke of what the MAS is doing to, in his words, "groom a first-rate Singaporean talent base, while continuing to secure highly-skilled global professionals."

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(637)

3.30 pm

Madam, I appreciate that foreigners with experience and expertise contribute to the development of our finance industry. We must remain open to talent and we must give companies some degree of latitude to run their businesses successfully. The price of failing to do so would be disinvestment and job destruction.

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(638)

3.30 pm

However, we should ensure there is a level playing field for Singaporeans. I have heard that many Singaporeans who work in financial services perceive that foreign financial services institutions tend to hire foreigners into senior level positions even when seemingly equally-qualified Singaporeans are available.

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(639)

3.30 pm

This unease perhaps is due to a lack of data on the results of the Government's programmes to encourage Singaporean leadership in the sector. As the programmes I mentioned have been around for a few years, I would like to ask if the results of these programmes have been positive. If not, there should be further discussion about the underlying root causes and on what more can be done.

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(640)

3.30 pm

Mdm Chair, financial literacy can be defined as a set of skills and knowledge that allows an individual to make informed and effective decisions in managing their finances.

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(641)

3.30 pm

In today's world of easy access to credit, it is easy for someone to fall into a debt trap, as described by hon Member Ms Foo Mee Har. The Government is fully aware of these

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(643)

3.30 pm

concerns and has launched MoneySENSE in 2003 with the objective of equipping all Singaporeans with the necessary capabilities to manage their finances.

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(644)

3.30 pm

It is encouraging to note that according to a 2005 survey by MoneySENSE, Singaporeans have a fairly healthy attitude towards basic money management, financial planning and investment matters and that the majority of Singaporeans do save, do monitor their spending and are, generally, responsible in the use of credit. Most Singaporeans also recognise the importance of financial planning and have done some basic level of financial planning.

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(645)

3.30 pm

Not so encouraging, however, from the same survey was that as much as half of the respondents indicated a lack of interest in financial education, with about a third of these citing that they did not view financial education as a priority.

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(646)

3.30 pm

The Malay/Muslim community has also recently done their own survey looking into debt issues within the community. Their findings bear some similarities in that, while the debt issue was not alarming, the group called Professionals, Managers, Executives and Technicians is found to be a risk group due to their access to credit. This is basically indicative of a group that is having a lower level of financial literacy.

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(647)

3.30 pm

I have, therefore, three questions for the Ministry.

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(648)

3.30 pm

Firstly, is there a more recent update on the state of financial literacy among Singaporeans?

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(649)

3.30 pm

Secondly, can the Ministry provide an update on their strategies to improve outreach to the segments that I have described that may be more at risk or has shown a lack of interest in financial literacy?

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(650)

3.30 pm

Thirdly, for non-profit organisations who are keen to contribute in the outreach efforts, are there any forms of assistance that are available for these organisations to tap into, and can the Ministry elaborate on what they are?

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(651)

3.30 pm

Mdm Chair, let me start by addressing Mr Inderjit Singh's questions about the Singapore dollar and the impact on inflation. I will start by giving the overall context of CPI inflation in Singapore. It has come down considerably in recent months, reflecting an easing of both external and domestic price pressures. The main driver has been the plunge in global oil price from an average of

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(653)

3.30 pm

US$93 last year to US$49 so far this year.

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(654)

3.30 pm

Inflation in the countries we import from has also been largely benign. Reflecting these external developments, overall import prices in Singapore fell by 8.7% year-on-year in the fourth quarter of 2014, which was the steepest decline since mid-2009.

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(655)

3.30 pm

On the domestic front, while there are cost pressures stemming from a tight labour market, the pass-through to consumer prices has been generally moderate. Enhanced medical subsidies, including those under the Pioneer Generation Package, have also led to a one-off reduction in the prices of healthcare services.

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(656)

3.30 pm

These developments are expected to continue to exert downward pressure on inflation in the months ahead, although some pick-up in price increases could be expected in the second half of the year as oil prices recover to some extent.

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(657)

3.30 pm

Overall, the MAS Core Inflation is projected to be 0.5% to 1.5% for the whole of 2015, lower than the 1.8% recorded last year. The CPI All-Items inflation is expected to average minus 0.5% to 0.5% in 2015, compared to 1.0% in 2014.

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(658)

3.30 pm

So, it was against this backdrop of a more benign inflation outlook for 2015 that MAS reduced the pace of appreciation of the Singapore dollar NEER policy band in January. I want to clarify and emphasise that the Singapore dollar NEER policy band is not on a path of depreciation. It remains on a modest and gradual appreciation path which, MAS has assessed, would secure the gains already made in bringing down inflation.

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(659)

3.30 pm

As MAS manages the Singapore dollar exchange rate against the basket of currencies within its policy band, the gradual appreciation stance does not preclude short-term market fluctuations, particularly movements in bilateral exchange rates of the Singapore dollar against other currencies.

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(660)

3.30 pm

It is important not to confuse market movements in the Singapore dollar against the US dollar, for example, as indicative of MAS' policy stance. Nor does the Singapore dollar-US dollar exchange rate, or any bilateral exchange rate for that matter, have a greater impact on inflation than the broader Singapore dollar NEER movement.

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(661)

3.30 pm

Indeed, there are important trade-offs from any change in policy settings, as Mr Inderjit Singh has highlighted. That is why MAS has repeatedly emphasised that an excessive weakening of the domestic currency will only lead to higher inflation. So, I would like to assure Members that MAS will stay vigilant and will continue to closely monitor the impact of external and domestic price developments across a range of consumer goods and services

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(664)

3.30 pm

Next, I turn to how we are developing Singapore as a key financial hub for the region and also creating opportunities for Singaporeans to have good and rewarding careers in financial services, a point which Ms Sylvia Lim made.

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(665)

3.30 pm

To achieve this, we must remain open to the best regional and global talent while, at the same time, do our utmost to build a strong Singaporean Core in the finance sector. So, it is about getting our balance right. I am very glad to hear just now Ms Lim herself saying that we must remain open to talent because, if we do not, there will be disinvestments and job destruction which will be detrimental to Singaporeans. How then can we go about strengthening the Singaporean Core and what have our efforts yielded?

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(666)

3.30 pm

Under the SkillsFuture initiative, MAS and the Institute of Banking and Finance (IBF) are working with the financial industry to chart the future skills needed and systematically equip our people with these skills.

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(667)

3.30 pm

First, we will provide learning pathways and training opportunities, so that Singaporean finance professionals at all levels can tap on the SkillsFuture measures to pursue mastery in their respective fields. We have already started this, as the hon Member highlighted, and, with SkillsFuture, this will give it further impetus, going forward.

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(668)

3.30 pm

Second, MAS has been engaging the top leadership of key financial institutions on the need to build a stronger Singaporean Core and to maintain robust HR practices that are merit-based and also to safeguard against discriminatory hiring. The response has been positive, with many proactively strengthening their Singaporean talent base and I will cite some examples.

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(669)

3.30 pm

DBS has launched four new programmes aimed at grooming Singaporean diploma and degree holders for careers in retail banking, SME banking and customer service. Barclays has introduced a new apprenticeship programme, where Polytechnic graduates are employed in entry level positions for business units, including operations, human resource and finance. Citibank and NUS recently collaborated to launch a Transaction Banking module in the Business School programme. So, these are just a few examples of things that have started.

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(670)

3.30 pm

Within MAS itself, we also have several initiatives to develop Singaporean finance professionals. For example, we provide subsidies to support professionals in acquiring deep expertise as well as to develop cross-functional capabilities. These are done through the Financial Training Scheme (FTS) and the IBF Standards Training Scheme (IBF-STS).

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(672)

3.30 pm

We provide scholarships to Singaporeans to develop in specialist tracks like quantitative finance, risk management and information technology in finance. These are offered under the Financial Scholarship Programme (FSP). So far to date, 170 FSP scholarships have been awarded.

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(673)

3.30 pm

MAS works with financial institutions to develop programmes that also develop professionals with more cross-functional exposure within their financial institutions as well as to create more overseas exposure for these individuals. These programmes are aimed at preparing Singaporean professionals for possible future leadership positions.

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(674)

3.30 pm

In particular, MAS has been working with academic institutes and industry to create a new Asian Financial Leaders Programme (AFLP). The AFLP aims to develop leadership capabilities geared towards operating and managing in Asian markets. Participants will have opportunities to engage regional policymakers, key corporate leaders and fellow financial sector peers. The AFLP will be launched in the second half of this year.

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(675)

3.30 pm

Madam, remaining open to the best global talent while building a strong Singapore Core of Singaporean professionals and leaders in finance is crucial in ensuring our continued success as a financial centre.

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(676)

3.30 pm

I would also add that while there is this perception about foreigners in our financial sector, let us not downplay the many Singaporean talents we have who have succeeded on their own steam and who are already taking up leadership positions in the financial sector.

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(677)

3.30 pm

If you look across many of the banks in Singapore, Citibank, JP Morgan, Deutsche, UBS, Julius Baer, Barclays, the country heads are Singaporeans and it is also very encouraging to note that Singaporeans are leading banks overseas as well. Standard Chartered Indonesia is led by a Singaporean; JP Morgan's trade finance securitisation department in London is headed by a Singaporean. So, we have talents in Singapore in the financial sector and they have succeeded, they are doing well, we engage with them very closely and they acknowledge that our measures are having an impact within the sector and, progressively, we are confident that we can build up a good pipeline of Singaporean talent in the financial sector.

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(678)

3.30 pm

MAS takes this work very seriously and we will work with the industry to invest in Singaporeans who are committed to a career in the financial sector.

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(680)

3.30 pm

Finally, Madam, let me touch on our household credit situation and the importance of financial planning. The overall debt situation in Singapore remains healthy. A vast majority of borrowers would not be affected by the aggregate cap on unsecured borrowing from banks that would come into effect in June 2015, as they had borrowed within prudent limits. However, an estimated 4% to 5% of borrowers may be above the 12-month borrowing limit.

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(681)

3.30 pm

MAS is getting from the Credit Bureau a full and more accurate estimate of the number of affected borrowers by the end of this month. I agree with Ms Foo that affected individuals will need help to adjust as well as more time. MAS has been working closely with key lending banks and Credit Counselling Singapore (CCS) to facilitate this transition. Let me outline some of the things that we are doing.

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(682)

3.30 pm

First, since last year, banks have been reaching out to borrowers who may be affected to update their income records so that they will not inadvertently lose access to credit as a result of outdated income information. I encourage borrowers to update their income records with their banks to avoid any disruption to their credit facilities.

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(683)

3.30 pm

Second, we do need realistic solutions for borrowers who have accumulated significant unsecured debts above their annual incomes, as suggested by Ms Foo. The Association of Banks in Singapore (ABS), the leading retail banks and CCS have, indeed, been working on a debt repayment solution for these borrowers. The ABS would be announcing the details of this scheme early next month.

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(684)

3.30 pm

Third, CCS has significantly ramped up resources to counsel and help indebted individuals who are affected by the new rule to manage their debt downwards in an orderly fashion. This requires some building up of capabilities and resources within Credit Counselling Singapore and they are doing so.

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(685)

3.30 pm

Fourth, MAS has granted banks the flexibility not to suspend credit for borrowers who already exceed the borrowing limit. These borrowers have up to June 2019 to make the transition. I should also clarify that the borrowing limit does not apply to loans for medical, education or business purposes.

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(686)

3.30 pm

Finally, MAS is, indeed, reviewing the implementation timeline for the borrowing limit on unsecured credit and it intends to make further adjustments once the full data on the number of affected borrowers is in. The details would be announced early next month.

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(687)

3.30 pm

Besides addressing the concerns of affected borrowers, we also have to do more work upstream, in terms of financial education and planning, which was something highlighted by

Suggest a correction

(690)

3.30 pm

Financial education is a multi-pronged effort involving the Government, the industry and the community. It takes many parties to get this right. Within the public sector, for example, the CPF Board has been educating the public on its schemes for retirement and healthcare planning. In schools, all lower Secondary school students now learn some basic modules of money management and budgeting. We also have consumers and investors associations, like the Consumers Association of Singapore, the Security Investors Association of Singapore as well as many non-profit organisations and self-help groups, like CDAC, MENDAKI and SINDA.

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(691)

3.30 pm

MAS will continue to work closely with these different partners to set up our efforts in financial education and we are happy to work with other non-profit organisations, as suggested by the Member. We also have the programme called, MoneySENSE, where we provide financial education through diverse channels, customised to the needs of different segments of society. For example, to reach out to Singaporeans in the heartlands, MoneySENSE has organised roadshows at public libraries and community clubs. The response to these roadshows has been positive. Besides face-to-face engagement, MoneySENSE also puts up content on social media. This includes guides to help consumers manage their money, plan ahead and learn more about financial products. There are also consumer alerts to warn the public about investment scams and the pitfalls of dealing with unregulated entities.

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(692)

3.30 pm

Going forward, the Member asked about what are our outreach plans. MAS is, indeed, working with various stakeholders to implement a more comprehensive financial education roadmap for the next few years. We will soon start a campaign to educate the public about upcoming changes to the life insurance landscape. These include the setting up of an online web aggregator where you can easily compare life insurance products online and the introduction of lower cost direct purchase insurance products which consumers can buy directly from the insurers.

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(693)

3.30 pm

Other themes that we have lined up for the campaign include educating the public about the pitfalls of over borrowing, encouraging consumers to save and invest wisely and warning consumers about the risk of investing in unregulated investment schemes.

Suggest a correction

(694)

3.30 pm

We will also work with partners to strengthen our outreach with specific segments, such as seniors and other vulnerable members of society. For the outreach with seniors and retirees, we think it is important so that their golden years can be spent without unnecessary financial stress. We will step up financial education programmes for social workers and counsellors. We think this is important, too, so that our social workers on the frontline, when they counsel and reach out to families in need, they themselves can be better equipped to

Suggest a correction

(696)

3.30 pm

support those who seek help. We will focus on our young, keeping in mind that these values of financial literacy are set early in life. MoneySENSE is in discussion with our partners to bring financial literacy talks to tertiary students as they prepare to start work.

Suggest a correction

(697)

3.30 pm

MoneySENSE will also reach out to Singaporeans at key life stages where they need to make major decisions. For example, we are going to engage young couples about to settle down and start their families so that they can properly plan their wedding expenses and purchase a flat that they can afford. We will equip young adults who are about to join the workforce so that, as they start their work, they would also have basic financial skills and knowledge. Our overall aim is to ensure that important financial tips are delivered to Singaporeans in a targeted, timely and helpful manner.

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(698)

3.30 pm

Madam, financial education is a continuous journey that requires sustained effort and with continued support and active participation of our partners. More importantly, financial education is not just about knowledge. It is really about encouraging the right values and beliefs and, working together with our partners, we believe we can achieve a more secure financial future for ourselves and our families.

Suggest a correction

(699)

3.30 pm

Mdm Chair, in November last year, the Prime Minister made a speech at the launch of the Smart Nation initiative, establishing the Smart Nation Programme Office (SNPO) under the auspices of the PMO. I would like to ask the Ministry what is the budget that has been allocated to this office. What are its terms of reference and how does it plan to shepherd Singapore to Smart Nation status in 10 years, which was the suggested timeline provided by the Prime Minister?

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(700)

3.30 pm

Secondly, I note the desire of SNPO is to develop a greater appreciation of technology, beginning in schools and through the education system, to teach coding and programming to students, for example. I would like to query whether these initiatives would be rolled out to all schools. I hope these initiatives would be inclusive in nature and involve students who are not technologically inclined as well, as unassociated passions and interests, such as calligraphy, as some Members of the House have alluded to previously from the Steve Jobs example, can go a long way to seed an initiative and to increase the prospect of greater breakthrough ideas.

Suggest a correction

(701)

3.30 pm

Separately, will SNPO also highlight and drive the number of skills upgrading opportunities by offering or promoting technology-related courses through SkillsFuture, which older Singaporeans may seek to attend?

Suggest a correction

(703)

3.30 pm

Thirdly, many of the initiatives that were raised by the Prime Minister in the drive to a Smart Nation have already been invented, for example, the driverless cars by Google and other companies. There is a possibility that in copying the example of other countries, SNPO will be imitating projects making Singapore a follower and less of a leader. Is SNPO envisioned to drive the development of fresh new initiatives and what are the immediate and medium-term targets that have been set up by SNPO?

Suggest a correction

(704)

3.30 pm

Finally, Mdm Chair, as much as technology is the centrepiece of SNPO, Singapore's small size also gives us a unique opportunity to address some of the shortcomings of technology, too.

Suggest a correction

(705)

3.30 pm

Parents of young children, for example, are becoming concerned with children becoming heavily addicted to handheld devices and technology, having short attention spans, in addition to having little interest in social relationships. Can I enquire if SNPO plans to address such issues, the responses to which are likely to be well-received by many other cities and countries facing the same problem?

Suggest a correction

(706)

3.30 pm

Mdm Chair, this is one of the few occasions I can agree substantially with Mr Pritam Singh. The advent of computers, the Internet, the World Wide Web, high resolution video, robotics, 3D printing, big data analytics and the Internet of Things have a profound implication on the way we live, work, play, study, communicate, socialise, even on politics.

Suggest a correction

(707)

3.30 pm

These are not just new tools. These are platform technologies. They will transform the basis on which we build our economies and our societies. Because Singapore is so small and so open, we have no choice but to be an open, dynamic, competitive and innovative society that embraces this revolution. We cannot be luddite, rejecting technological advances. We have to embrace it. We have to be at the forefront of this change. SkillsFuture is, therefore, an urgent and critical pillar for us to prepare our people for the digital future and to ensure that our skills remain relevant.

Suggest a correction

(708)

3.30 pm

Two hundred years ago, over 80% of the jobs in the United States were in the agriculture sector. Fast forward to today, it is less than 2%. It is not that the agricultural output has decreased. But technology transformed it. A lot more could be produced at a lower price for more people.

Suggest a correction

(709)

3.30 pm

A similar transformation, I fear, is going to occur for jobs which used to be white-collar middle-class jobs because routine work can be automated and you cannot compete successfully to be cheaper, better, faster than a robot or a computer doing routine tasks.

Suggest a correction

(711)

3.30 pm

Similarly, in schools, yes, we are going to teach in all schools access to coding and computational thinking. However, this is not just about geeks and technology. You are right – artistic ability, calligraphy, creativity, expression – all these are equally important skills for a digital future. Similarly, we are not going to leave old Singaporeans behind. We need to make sure they have access to all the new tools and technology, we have to educate them and SkillsFuture will also be relevant to them.

Suggest a correction

(712)

3.30 pm

Even this question of addiction – I see students in the galleries listening to our speeches – we do not want our students to be addicted to games. We want our students to create those games that other people become addicted to. That is where the value of creation is.

Suggest a correction

(713)

3.30 pm

Mdm Chair, even as we upgrade the "software" aspects of a Smart Nation Programme, Singapore also needs to ensure that we remain at the cutting edge of the digital infrastructure and that we roll out projects that benefit all citizens. Members have heard the programmes and announcements by Minister Yaacob and, indeed, by the Ministers of all the other different Ministries. Smart Nation is a standalone project. You will see Smart Nation being rolled out in the budgets, programmes and projects of all the different Ministries. SNPO is just a small unit in PMO. Our job is to ensure consistency, coherence in policies to ensure that there is no wasteful duplication, to maximise synergies and to make sure that we work on a whole-of-Government basis. So, it is about alignment. It is not about duplication.

Suggest a correction

(714)

3.30 pm

I would also emphasise the point that Mr Singh has said that many of the technologies have already been invented. We are not here merely to duplicate and replicate them. That is why we chose the concept of a Smart Nation, and not a Smart City. Yes, you can have a driverless car driving around in San Franciso. But we can be the first nation where because we are a single level of Government, because we can digitise literally every square metre of Singapore, because we can make every lamppost an active, smart, geo-tag pillar, we can do things on a scale and on a level which is not so easily duplicated elsewhere.

Suggest a correction

(715)

3.30 pm

We will not be Silicon Valley, but we will be the ideal test site, a prototype site, to test prototypes, proof of concept. It is like what we did with water. We did not invent reverse osmosis but we upscaled it, we nationalised it. And, today, a Singaporean water company has opportunities all over the world. That is why we have chosen the concept of a Smart Nation, not merely a Smart City.

Suggest a correction

(716)

3.30 pm

But at the end of the day, we want to create more opportunities for all Singaporeans, we need to prepare them for these gut-wrenching changes which are going to occur, not over 200 years, but within one lifetime; to prepare ourselves for multiple jobs requiring

Suggest a correction

(719)

3.30 pm

We want to make sure Government services remain responsive and accessible to all Singaporeans and we want to strengthen community bonds. This is also an opportunity for us to build trust, strengthen a collective sense of ownership and facilitate co-creation of the future by all Singaporeans.

Suggest a correction

(720)

3.30 pm

We have a little bit of time for clarification. Does anyone wish to make any clarification? Mrs Lina Chiam.

Suggest a correction

(721)

3.30 pm

I would like to direct this question to the Deputy Prime Minister. It is about overseas voting. It is about the transparency of transporting the ballot boxes back to Singapore. Currently, there are only two MFA officers accompanying the boxes back. Could I suggest that a third neutral person be involved in accompanying the ballot boxes back to Singapore?

Suggest a correction

(722)

3.30 pm

As far as I know, Madam, the MFA officers are neutral unless Mrs Chiam has some other person in mind.

Suggest a correction

(723)

3.30 pm

Thank you, Deputy Prime Minister. Yes, we will think about that. I will consider.

Suggest a correction

(724)

3.30 pm

Any other clarifications? If not, Mr Seng Han Thong, would you like to withdraw your amendment?

Suggest a correction

(725)

3.30 pm

Madam, on behalf of all the Members who filed the cuts, may I first thank Deputy Prime Minister Teo for his detailed and comprehensive answers, interrupted by his coughing. His answers are very reassuring, especially to the low-wage civil servants and all Singaporeans who want a good Government.

Suggest a correction

(726)

3.30 pm

My thanks also to Minister Grace Fu for telling us that, in fact, last year, we had more marriages and more babies and also many more new initiatives to come. To Minister Lawrence Wong, thanks for the sharing on the outreach programme for our Singaporeans. We know that, in fact, many Singaporeans are shining in the financial industry domestically and internationally. I know that I have to thank so many Ministers. And to Minister Vivian Balakrishnan, thanks for sharing with us the Smart Nation programme. This is the Year of the

Suggest a correction

(729)

3.30 pm

Is the Member withdrawing his amendment?

Suggest a correction

(730)

3.30 pm

Finally, may I beg leave to withdraw my amendment.

Suggest a correction

(731)

3.30 pm

That is the reason why I said you have to make your speeches very short. Sometimes, you may forget your own points.

Suggest a correction

(732)

3.30 pm

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

Suggest a correction

(733)

3.30 pm

[(proc text) The sum of $422,778,500 for Head U ordered to stand part of the Main Estimates. (proc text)]

Suggest a correction

(734)

3.30 pm

[(proc text) The sum of $57,854,400 for Head U ordered to stand part of the Development Estimates. (proc text)]

Suggest a correction

(735)

3.30 pm

Order, I propose to take the break now.

Suggest a correction

(736)

3.30 pm

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

Suggest a correction

(737)

3.30 pm

Order. I suspend the Sitting and will take the Chair again at 3.55 pm.

Suggest a correction

(742)

3.30 pm

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

Suggest a correction

(745)

4.30 pm

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

Suggest a correction

(746)

4.30 pm

Mdm Chair, may I take both cuts together?

Suggest a correction

(748)

4.30 pm

Thank you. There have been significant developments in Singapore's legal landscape in the last year, with more in the works. Most of these will be addressed in my other cut as well as those filed by Members.

Suggest a correction

(749)

4.30 pm

I would kick off by dealing with something which is fundamental to the rule of law and, that is, access to justice. We have a justice system we can be proud of. It is consistently ranked worldwide for its fairness, transparency, efficiency and the quality of its decisions. The Ministry, the Judiciary and their partners deserve praise for that.

Suggest a correction

(750)

4.30 pm

But the justice system can only function properly if people have access to resolve disputes and, just as important, to defend their rights. Every year, thousands of people go through our criminal and justice systems unrepresented. There are different reasons for this, but the main reason is costs. We are not the most expensive jurisdiction for legal services, but the cost of legal representation is not something most people are prepared for financially. So, many forgo representation.

Suggest a correction

(751)

4.30 pm

To mitigate this, for criminal matters, the Pro Bono Service Office (PBSO) runs the Criminal Legal Aid Scheme (CLAS). The Government's direct support of criminal legal aid, a relatively recent move, is one which represents a clear shift in philosophy. Funding for CLAS has been significantly stepped up to enable PBSO to help up to 6,000 accused persons each year. Funds will also go towards covering disbursements, so lawyers are not out of pocket, as well as to provide honorariums for volunteers. Some law firms have also been asked to second lawyers to the Law Society's Pro Bono Office or provide funding to hire full-time pro bono lawyers. From this year, it will be mandatory for lawyers to report pro bono hours.

Suggest a correction

(752)

4.30 pm

What is less clear to me is the outcome of these changes. While more people have received and are receiving pro bono services, are there many others who remain deprived because of lack of resources? Is it the case that the eligibility threshold for such services is so high that many do not qualify? In short, what is the gap between supply and reasonable

Suggest a correction

(754)

4.30 pm

demand and are our current measures sufficient to bridge that gap?

Suggest a correction

(755)

4.30 pm

Second, there may be people who are eligible and who would benefit from legal representation, but who are unaware that they can apply or who may be discouraged from doing so. A person who is charged with a crime and is unaware of his rights may be tempted or even feel compelled to plead guilty, without a proper assessment of his rights. What checks are there in the system to identify such persons or at least ensure that those intending to plead guilty at least understand their rights and the implications of their decision?

Suggest a correction

(756)

4.30 pm

Lastly, in seeking the right balance for our pro bono ecosystem, we should be mindful of the fact that the more people who benefit from pro bono services, the more we may be affecting the market for small law firms. How is the Minister proposing to maintain that balance as we continue to strengthen our pro bono efforts?

Suggest a correction

(757)

4.30 pm

Madam, I move on to my second cut and I declare my interest as a dispute resolution lawyer.

Suggest a correction

(758)

4.30 pm

It is an under-statement to say that our legal landscape has changed significantly in the past decade. Singapore has been quick to keep up with developments internationally and seize on new opportunities for growth. Amid predictions that the Asia Pacific legal market will soon become one of the most important legal markets in the world, the launch of the Singapore International Mediation Centre and the Singapore International Commercial Court are two examples of our efforts to stay ahead of the game and reinforce our brand as a regional, if not global, force in the legal and dispute resolution market.

Suggest a correction

(759)

4.30 pm

Yet, as the international legal landscape evolves, so must we. Abroad, numerous changes are afoot. The traditional law firm model is under pressure. In Australia, law firms are now allowed to list on the stock exchange. In the UK, legislation permits external investment into law firms and a range of alternative business structures. The traditional mode of service delivery is also breaking down. Internationally, there is a trend towards legal outsourcing and service disaggregation. Technology has also transformed the way law firms provide services, with paperless systems and online legal services becoming more common. So, the real question is: from a global perspective, what is next for Singapore's legal landscape? And what challenges lie on our horizons? I hope the Minister will share his insights with us.

Suggest a correction

(760)

4.30 pm

One of the challenges we face is dealing with the human resource element, in particular, to provide a platform to enable those wishing to practise law in Singapore to do so. It is clear that the study of law has become increasingly popular. It was a trend spotted decades ago,

Suggest a correction

(762)

4.30 pm

with the result that restrictions were placed on who could practise law, depending on the universities they graduated from and the class of degrees they obtained. Over time, these have been changed, relaxed or tightened, depending on the market.

Suggest a correction

(763)

4.30 pm

But it takes about five years to educate and train a lawyer and the market changes much faster than that. So, from a dearth of lawyers just a few years ago, we are now faced with law graduates not being able to secure training contracts. Last year, there were about 650 law graduates but only about 490 training contracts. Figures from the Ministry show that only about 70% of foreign-trained graduates managed to secure training contracts with firms here, compared with around 94% of local graduates. This has resulted in complaints about the Government relaxing the rules too much. Just recently, there were complaints about the Government tightening the rules too much when the Singapore Institute of Legal Education dropped eight UK universities from the list of approved law schools. All these developments have caused anxiety for students and their parents.

Suggest a correction

(764)

4.30 pm

Madam, I have long been against such rules and their constant changes. They mess with people's plans and they mess with their minds. Picking the right universities in the way we do, I think, is inflexible, subjective and can be arbitrary. I believe everyone who wants to practise law or any other discipline should be entitled to try, provided they meet the minimum standards to practise in Singapore and are prepared to compete in the market for work. That principle currently applies to any graduate in any trade or profession and law should not be any different. But since we appear to be keeping the current system, I think the Ministry can improve the situation in several ways.

Suggest a correction

(765)

4.30 pm

First, by regularly publishing information, such as the numbers seeking training contracts, the unemployment rates and the estimated number of graduates that are expected to enter the workforce every year. This will enable students to make informed decisions before and during their university.

Suggest a correction

(766)

4.30 pm

Second, by better matching demand with supply. I understand that the Law Society currently maintains a page of training contract listings. This is a good start, but I think it would be helpful if law firms could be asked to indicate the areas they are likely to expand or need more recruits in.

Suggest a correction

(767)

4.30 pm

Third, I hope, by not changing the admission rules so regularly. I understand the need to maintain quality, but universities should only be removed from the list if they clearly do not make the grade. We can maintain quality by setting an appropriate standard for the Part

Suggest a correction

(770)

4.30 pm

In the context of this changing landscape, we have a third school that is going to be set up soon. I would like to ask the Minister how UniSIM graduates from the third law school will strengthen our market for legal services and how their entry will affect the supply and quality of lawyers in Singapore.

Suggest a correction

(771)

4.30 pm

Mr Vikram Nair, please take your two cuts together.

Suggest a correction

(772)

4.30 pm

Mdm Chair, over the last few years, it has been reported that a record number of students are studying law overseas, particularly in the UK and Australia. I believe the trend might have started around 2011, when data on the top earners' niche professions was published and lawyers featured near the top. In subsequent years, the rising starting salaries of lawyers at top firms were also published, and I believe this might have sent a signal to prospective students that this might be a path to quick riches. But, of course, practising lawyers know better.

Suggest a correction

(773)

4.30 pm

This large supply came to a head last year when a number of students seeking training contracts soared and many did not get places. Of those who took up places, some did so knowing they would not be retained. I am sure many of those who did not get places will be seriously disappointed.

Suggest a correction

(774)

4.30 pm

One view is that there is no need to regulate the supply of lawyers and it may just be left to market forces so that, in the years of oversupply, not all would get jobs and salaries may drop, making the profession less attractive to future cohorts and this would naturally limit supply.

Suggest a correction

(775)

4.30 pm

Personally, I take a different view. I am in favour of more regulation. The process to qualify as a lawyer is relatively long, requiring study, practical training and, finally, traineeship. If a person starts embarking on this journey at the age of 18 to 21 in the expectation that they would one day become lawyers, they may feel they have wasted their time if, at the very end, they are unable to get training contracts and jobs. In this regard, I believe it might be kinder to restrict the numbers earlier so that prospective students do not unnecessarily embark on a journey they cannot complete. This is especially so if the families have incurred significant costs and debts to send their children abroad in the hope that they would be able to pay it back once qualified.

Suggest a correction

(777)

4.30 pm

In the past, restrictions had included having a shorter list of recognised universities and requiring higher grades from students to qualify as lawyers. This sent a signal that going abroad to study law did not ensure places to practise and that, in itself, limited numbers.

Suggest a correction

(778)

4.30 pm

SILE has recently announced restrictions on the list of universities that will be recognised. Are there any plans for further measures to restrict the supply of lawyers?

Suggest a correction

(779)

4.30 pm

My second cut. I declare my interest as a lawyer at Rajah & Tann and I practise dispute resolution. I find some of the developments to promote Singapore as a hub for international dispute resolution very exciting. The enabling legislation to set up the Singapore International Commercial Court (SICC) was passed last year. This creates another dispute resolution option for international transactions. So, for example, a European and an Asian party may enter into a joint venture agreement for a project in Africa and have disputes under that agreement governed by the SICC, picked by the laws of yet another country if they wished. This gives tremendous flexibility to parties in commercial transactions.

Suggest a correction

(780)

4.30 pm

Likewise, the Singapore International Mediation Centre was set up last year and this will complement the dispute resolution services that could come out from not only SICC, but the International Arbitration Centre. The Singapore International Mediation Institute was also set up to train potential mediators.

Suggest a correction

(781)

4.30 pm

While all these developments are very exciting, one concern is whether all these will actually create benefits for locally qualified lawyers or whether it will only give jobs to international lawyers. I personally believe that local lawyers can benefit if they work in international firms, but I would be interested to know if the Ministry itself has any view on this and how these developments would actually benefit both Singapore and local lawyers.

Suggest a correction

(782)

4.30 pm

Madam, I declare my interest as a family law practitioner. The launch of the Family Justice Courts was described by the Chief Justice as one of the most significant events in the legal calendar last year. To many family lawyers, the details that were subsequently unveiled represented a change of seismic proportion. Two diametrically opposed approaches need to be reconciled and one of which was what most have been used to – being adversarial on behalf of the clients.

Suggest a correction

(783)

4.30 pm

In the new legal ecosystem, family lawyers have to be conflict managers and problem solvers but it is not clear how quickly the transformation has to be made and if it would come at a cost in terms of fewer paying clients or considerably longer working hours because of

Suggest a correction

(785)

4.30 pm

the need to attend training courses to acquire new skills in counselling and mediation. Currently, lawyers are undergoing accreditation scheme assessment courses as well. Could the Minister explain the impact upon the legal profession as a whole?

Suggest a correction

(786)

4.30 pm

Madam, three years ago, at MinLaw's Committee of Supply, I highlighted the frustration of some of my residents who are undischarged bankrupts in dealing with the Insolvency and Public Trustee's Office. The experience had been that there were long delays and, when they tried to call the officers in charge, they could not even leave phone messages as the mailboxes were full.

Suggest a correction

(787)

4.30 pm

I thus read with interest The Straits Times' report of 7 July 2014 that MinLaw had, from 2013, outsourced some call answering services. The report stated that the Ministry had engaged People Advantage, a subsidiary of Certis Cisco Security, to help it to field public calls from Certis' call centre at Paya Lebar. Apparently, more than 50 outsourced persons answered the Ministry's calls. The Ministry's spokesman explained that the Ministry had wanted to improve the way it responded to public queries and to enable their officers to focus on case-specific issues.

Suggest a correction

(788)

4.30 pm

Could the Ministry clarify the following: one, what led to the decision to outsource call answering; two, has such outsourcing been done for all the Ministry's departments or only some; three, has there been any preliminary assessment of cost effectiveness; and, four, anecdotally, a resident who recently called it told me that while her call was answered promptly, she was not able to speak to the officer in charge but was told that the officer would call her back within two weeks. Has the Ministry assessed whether case response times have improved?

Suggest a correction

(789)

4.30 pm

Madam, about a year ago, a resident sought my assistance as he was being harassed by a licensed moneylender. His son had borrowed money from a licensed moneylender but failed to pay the loan on time. After his son ran away from home, my resident was left to face the wrath of the debt collector engaged by the licensed moneylender.

Suggest a correction

(790)

4.30 pm

I was surprised to hear about the tactics used by the debt collector. In my mind, there seems to be little difference between the debt collector engaged by a licensed moneylender and that of an illegal loan shark. Both debt collectors seem to be using harassing tactics to humiliate the resident into making payment or harassing them at odd hours in the middle of the night. There was also the reported case of a group of debt collectors who were at Funan

Suggest a correction

(792)

4.30 pm

Centre creating a nuisance when demanding repayment of a loan. Clearly, this is unacceptable.

Suggest a correction

(793)

4.30 pm

As there are more licensed moneylenders setting up business, especially in the HDB estates, I urge MinLaw to better regulate licensed moneylenders, including regulation of the tactics used by them or by their debt collector to chase for repayment of debt. There should also be better regulation as to the interest charged or admin or penalty fees that can be imposed by the licensed moneylenders.

Suggest a correction

(794)

4.30 pm

Can the Minister provide an update on the review of the moneylending regulatory regime? We can do more to protect our consumers from illegal harassing tactics of the debt collectors.

Suggest a correction

(795)

4.30 pm

Mr Arthur Fong. He is not here. Minister Shanmugam.

Suggest a correction

(796)

4.30 pm

Thank you, Mdm Chairman. We will continue to improve our justice system. We will try and ensure access to justice to as many people as possible, refine our justice system to help protect families and enable law firms to modernise and grow.

Suggest a correction

(797)

4.30 pm

I will cover three main areas in my speech. First, what we are doing to help litigants; second, how we are improving the Family Justice system; and, third, what we are doing to help Singapore law firms expand regionally. Senior Minister of State Indranee Rajah will cover the other areas.

Suggest a correction

(798)

4.30 pm

First, on helping litigants. Mr Hri Kumar requested an update on criminal legal aid. The Government will now play a bigger role in criminal legal aid. It will provide funding to CLAS administered by the Law Society. That is a significant shift in the Government's philosophy. The enhanced CLAS scheme will serve up to 6,000 accused persons per year. These are people who we assess are unable to afford their own lawyers. It should not affect the work of the small law firms. We will continue to monitor the figures and assess accordingly.

Suggest a correction

(799)

4.30 pm

The enhanced CLAS scheme will adopt a revised means test to allow more deserving persons to qualify for assistance. It will provide more services, apart from full representation, and people can receive basic legal advice or assistance in writing letters of representation or mitigation pleas.

Suggest a correction

(800)

4.30 pm

Increasing the awareness of CLAS is also important. The Law Society will produce a pamphlet of rights that will raise awareness of CLAS. It will be distributed to police centres,

Suggest a correction

(802)

4.30 pm

police posts and Community Clubs throughout Singapore.

Suggest a correction

(803)

4.30 pm

In addition, there are people without lawyers who are charged in Court. They can be referred to the Community Justice Centre at the State Courts. The Centre will provide basic legal advice and refer them to CLAS where appropriate.

Suggest a correction

(804)

4.30 pm

We have worked closely with the Courts, Law Society and the Criminal Bar to prepare for the launch of CLAS. The official launch will take place later this month on 23 March.

Suggest a correction

(805)

4.30 pm

The scheme's success would not be possible without the help of volunteer lawyers and law firms. There has been strong support shown for the scheme from the Bar. Thirteen law firms have pledged to take on CLAS cases on an annual basis. This is in addition – and I emphasise – an addition to the many lawyers who have already committed to doing CLAS work and who have been the backbone of CLAS. The big firms have also come forward. They have assigned lawyers to work for CLAS full-time or given time off to work for CLAS.

Suggest a correction

(806)

4.30 pm

There is strong participation from the legal profession and strong Government support. More accused persons without means will have access to justice and they will receive the help and the guidance and assurance they need as they face the criminal justice system.

Suggest a correction

(807)

4.30 pm

Let me now turn to the family justice system. Another major area of reform has been in the family justice field. Families should be saved as far as possible. But, often, the marriage has irretrievably broken down. The parties end up in the Court system and the Court process should not worsen the anguish for the family.

Suggest a correction

(808)

4.30 pm

For these reasons, the family justice system was revamped and the Family Justice Courts were set up. They will help families through this area of the law by providing: (a) simplified and streamlined processes and practices; (b) enhanced case management; and (c) the judge-led approach.

Suggest a correction

(809)

4.30 pm

The aim is to: (a) reduce costs; (b) simplify the process; (c) focus on the essentials; and (d) protect the children. The process should resolve the key issues, which are the division of assets and the custody and access to children. It should not reopen the wounds of the marriage and allow the Court process to become an arena for emotional conflict.

Suggest a correction

(810)

4.30 pm

Ms Ellen Lee asked about the impact of these reforms on the legal profession as a whole. Family lawyers will be an important link between their clients and the Court. The Family Justice Committee has an on-going dialogue with the Family Bar through the Law Society on

Suggest a correction

(813)

4.30 pm

Senior Minister of State Indranee Rajah has also disseminated newsletters to family lawyers, describing the reforms to all of them and how the family justice system has been revamped. We have also organised, either directly or with partners, numerous courses, talks and training sessions for family lawyers. These have touched on the new judge-led approach and case management, the appointment of Child Representatives and family mediation. In addition, a framework has been established to train and certify family lawyers as Family Mediators.

Suggest a correction

(814)

4.30 pm

Feedback from the Family Bar has been positive. The Family Justice Courts will explore additional training areas, as appropriate. Family lawyers are encouraged to attend these courses to equip them with the necessary skills to manage cases in the new family justice system.

Suggest a correction

(815)

4.30 pm

Looking forward, the Ministry will continue to review family law-related legislation with an impact on people and family life. These include the Guardianship of Infants Act, the Intestate Succession Act, the Inheritance (Family Provision) Act and the Legitimacy Act. We will also look into strengthening the enforcement of maintenance orders. This will help those who depend on maintenance payments to raise their children after their divorce. We aim to complete this work in 2016.

Suggest a correction

(816)

4.30 pm

Next, let me turn to the regionalisation of Singapore law practices. The Ministry is taking active steps to help Singapore law practices grow further. We want them to tap into regional opportunities. We are the leading dispute resolution hub in the region. There are three components in our strategy: (a) international arbitration; (b) international litigation; and (c) mediation.

Suggest a correction

(817)

4.30 pm

We have enjoyed success in the field of international arbitration. We are now Asia's leading arbitral centre and one of the world's leading arbitral centres. We aim to replicate that success for Court-based litigation and international mediation. We have, in that context, recently set up the Singapore International Commercial Court (SICC), the Singapore International Mediation Centre (SIMC) and the Singapore International Mediation Institute (SIMI).

Suggest a correction

(818)

4.30 pm

Mr Vikram Nair asked for updates on the SICC, SIMC and SIMI and how they will benefit local lawyers.

Suggest a correction

(819)

4.30 pm

The SICC offers foreign parties with access to a neutral court forum in the region. It will be an alternative to the usual customary fora. It introduces innovations designed to make it

Suggest a correction

(821)

4.30 pm

more attractive for international parties. For example, it has special procedures for efficient resolution of cases governed by foreign law and a distinguished and diverse panel of international judges who will work with our Singapore judges.

Suggest a correction

(822)

4.30 pm

Since the SICC was launched on 5 January this year, 11 eminent international jurists have been appointed as International Judges. The SICC will increase opportunities for our lawyers and local firms. Law firms will also benefit from the exposure to complex cross-border disputes and eminent international judges with vast experience.

Suggest a correction

(823)

4.30 pm

International mediation is another area that will provide opportunities for our lawyers. The SIMC offers world-class international commercial mediation services. It has a panel of over 65 world-class mediators from 14 jurisdictions. Since its launch last November, the SIMC has already received its first international mediation referral.

Suggest a correction

(824)

4.30 pm

The SIMC and SIAC have introduced an innovative Arb-Med-Arb Protocol. This will allow settlements reached at mediation to be recorded as consent awards that are internationally enforceable.

Suggest a correction

(825)

4.30 pm

The SIMI will also help make mediation a viable and attractive option to resolve disputes. It will set standards and provide greater understanding of mediation.

Suggest a correction

(826)

4.30 pm

With international commercial arbitration, litigation and mediation services now collectively in place, Singapore can offer the full suite of dispute resolution services to commercial users that are best suited to address their business needs. This will provide local lawyers and law firms with more work, as we have experienced for international arbitration.

Suggest a correction

(827)

4.30 pm

Senior Minister of State Indranee Rajah will describe some of the other schemes that are available for local lawyers and law firms. She will also take the remaining cuts.

Suggest a correction

(828)

4.30 pm

Mdm Chairman, this is an exciting time for the legal profession. Asia's economic growth will provide opportunities to Singapore lawyers and local law firms. I would encourage law practices to take advantage of regional opportunities, build capability, upgrade skills and leverage on technology. The Government will assist.

Suggest a correction

(829)

4.30 pm

There are various schemes offered by the economic agencies, including those announced recently. These include the Double Tax Deduction for Internationalisation (DTD) scheme, which has been enhanced to cover salaries for Singaporean personnel posted to new business entities. This will provide greater support to law firms venturing overseas, by co-sharing their risks and initial costs of expansion. This helps Singaporeans to gain

Suggest a correction

(831)

4.30 pm

international exposure, which is important for future leadership positions.

Suggest a correction

(832)

4.30 pm

Then, there is the Development and Expansion Incentive for International Legal Services scheme (DEI Legal), which has been extended until 31 March 2020. It provides a 10% concessionary tax rate on incremental income derived from the provision of international legal services for five years and is available to approved law practices incorporated as companies.

Suggest a correction

(833)

4.30 pm

I agree with Mr Hri Kumar that technology has transformed the way law firms provide services. Technology, properly harnessed, increases productivity and innovative delivery of legal services. We are partnering the Law Society to encourage adoption of technology where beneficial. We are also studying how technology will impact the delivery of legal services in the future.

Suggest a correction

(834)

4.30 pm

Mr Kumar commented on alternative business structures. The Legal Profession Act currently provides a calibrated approach by permitting Legal Disciplinary Practices, where non-lawyers can become partners, for example. Any further extensions will need to be carefully considered. Flexibility has to be weighed against professional and ethical challenges. We will continue to study these issues in consultation with the industry and stakeholders and move in tandem with market developments.

Suggest a correction

(835)

4.30 pm

Mr Kumar and Mr Vikram Nair commented on the supply of lawyers, UniSIM and the list of recognised Overseas Scheduled Universities.

Suggest a correction

(836)

4.30 pm

MinLaw's objective is to ensure a sufficient pipeline of quality legal talent to support Singapore's legal needs. We uphold high standards to maintain quality. We do not try to beat the market mechanism by controlling numbers, but have the responsibility to inform aspiring lawyers of the situation to enable them to make informed choices on whether, and where, to pursue a law degree. On our part, we have already made public the figures that are available. We thank Mr Kumar for his suggestion to make more information available on training contracts and will discuss this suggestion with the Law Society and the Singapore Institute of Legal Education (SILE).

Suggest a correction

(837)

4.30 pm

The number of local law graduates has remained fairly constant at less than 400 students per year over the past three years. The increase arises from the number of law students studying overseas. The number at UK universities has doubled over four years to hit around 1,140 students in 2013. The number at Australian universities has increased more than 25% to hit around 390 between 2011 and 2013. Taken together, the number of students from UK universities and Australian OSUs has increased by 47% over the past three years.

Suggest a correction

(839)

4.30 pm

There is a distinction between: (a) law graduates getting training contracts and being subsequently employed as practising lawyers; and (b) law graduates being able to find employment more generally.

Suggest a correction

(840)

4.30 pm

The number of available training contracts and retention of trainees are determined by the law firms, not the Government. It depends on their manpower needs which, in turn, are determined by market forces. The industry is generally able to take in local graduates. However, the increase in the number of students studying overseas has intensified the competition for training contracts.

Suggest a correction

(841)

4.30 pm

The SILE has put in place measures to facilitate more training contracts. Senior lawyers can now supervise up to four practice trainees, instead of two, at any time. The SILE has also set up a Working Party to review the practice training framework. However, it ultimately depends on the number of trainees that senior solicitors can effectively supervise and which the firms can eventually retain. So, aspiring entrants should consider their options carefully and be prepared to compete for training contracts if they wish to practise.

Suggest a correction

(842)

4.30 pm

However, general employment prospects for law graduates, on the other hand, are good. A law degree provides excellent training for numerous other areas of work besides practice and law graduates have many other employment options aside from practice.

Suggest a correction

(843)

4.30 pm

For overseas universities, we maintain a list of Overseas Scheduled Universities (OSUs). The Fourth Committee on the Supply of Lawyers had recommended that the list of OSUs be reviewed and updated every five years to better reflect current rankings of UK Law Schools, as a "qualitative sieve".

Suggest a correction

(844)

4.30 pm

The SILE's recommendations were arrived at after applying the methodology in the Fourth Committee's report and considering the universities' representations. The Ministry has accepted these recommendations, which will take effect from Academic Year 2016/2017, so those who have secured places to read law at the omitted OSUs before 1 October 2015 or for the Academic Year 2015/2016 intake will not be affected. They remain eligible for admission to the Singapore Bar if they satisfy the other general criteria for admission.

Suggest a correction

(845)

4.30 pm

Separately, there is a need to ensure that sufficient law students are interested in joining practice areas where there is an unfilled demand for lawyers. In this regard, while there is no overall shortage of lawyers, there is a shortage of lawyers entering and staying in criminal and family law practice. This shortage is unlikely to be addressed by the current supply of law graduates as many of them aspire to practise commercial and business law.

Suggest a correction

(847)

4.30 pm

Having sufficient family and criminal lawyers is important to the public. The Fourth Committee recommended establishing a third law school as a targeted measure to increase the number of family and criminal law practitioners. This will be the UniSIM Law School (ULS). Given its community-focused ethos, ULS aims to attract suitable mature students seeking a mid-career switch to law, who can handle the demands of family and criminal law practice. ULS will begin with a modest intake of about 50 to 75 students a year. The ULS Steering Committee is finalising its report. We will announce details once the Steering Committee has concluded its work.

Suggest a correction

(848)

4.30 pm

Mr Lim Biow Chuan spoke about the moneylending industry. Some borrowers have good reasons for wanting to borrow but lack access to other lending facilities. Licensed moneylending removes the need to borrow from loan sharks, but we also must regulate the industry strictly and carefully, to protect vulnerable borrowers.

Suggest a correction

(849)

4.30 pm

We share Members' concerns about the high interest rates and late charges imposed by some moneylenders today. We are considering imposing appropriate caps on interest rates, late fees and other charges. We, too, are concerned about borrowers who borrow beyond their means, often from multiple moneylenders. To address this, we are considering setting up a moneylenders' credit bureau to enable industry players to assess the aggregate risks of individual borrowers.

Suggest a correction

(850)

4.30 pm

Second, on debt collection practices. The actions taken by debt collectors in collecting debts cannot contravene the law. For example, the Penal Code makes it an offence if hurt or threatening behaviour is involved. In addition, there is redress under the Protection from Harassment Act (POHA). Since POHA came into force last November, at least four anti-harassment orders have been issued against debt collectors. Borrowers who encounter criminal behaviour from licensed moneylenders or their debt collectors should report the matter to the police or the Registry of Moneylenders.

Suggest a correction

(851)

4.30 pm

Mdm Chairman, I would just need two minutes to complete the rest of my speech, if I may.

Suggest a correction

(853)

4.30 pm

The Advisory Committee on Moneylending has examined these issues and will make its recommendations soon.

Suggest a correction

(855)

4.30 pm

Ms Sylvia Lim asked about the rationale and cost-effectiveness of outsourcing our call answering functions and its effect on service delivery.

Suggest a correction

(856)

4.30 pm

During the 2012 COS debate, Ms Lim raised the issue of delays and dropped calls when bankrupts tried to contact the Insolvency and Public Trustee's Office (IPTO). My Ministry replied that we were looking to improve the efficiency and responsiveness of our processes.

Suggest a correction

(857)

4.30 pm

In 2013, the Ministry contracted a professional service provider to operate a new Ministry-wide Integrated Public Engagement System (IPES). The IPES ensures that all phone calls are answered and emails are tracked for response times. IPES agents also serve walk-in members of the public who come to IPTO and the Legal Aid Bureau. They deal with general enquiries and simple cases. More complex matters are referred to our case officers and these necessarily require more time to respond to.

Suggest a correction

(858)

4.30 pm

Ms Lim mentioned the case of somebody who was told that he would receive a response in 14 days. The SOP is between three and 14 working days. So, some are responded to in three days and some in 14 days, depending on the case officers' workload.

Suggest a correction

(859)

4.30 pm

In 2014, on average each month, IPES dealt with over 7,000 phone calls, 2,000 walk-in customers and 11,000 emails for IPTO alone. Our response times have improved significantly.

Suggest a correction

(860)

4.30 pm

We will continue to refine the system to serve our customers better. Thus far, this approach has been an effective way of working within the prevailing manpower constraints. There are manpower challenges in many areas of the Civil Service and, given these constraints, outsourcing is no longer a matter of choice.

Suggest a correction

(861)

4.30 pm

Madam, in conclusion, MinLaw will continue to review our laws and policies to promote access to justice, strengthen the rule of law, help Singapore legal practices to become regional players and develop Singapore as a legal hub.

Suggest a correction

(862)

4.30 pm

We have a bit of time for clarification. Any clarifications, anyone? If there are no clarifications, Mr Hri Kumar, would you like to withdraw your amendment?

Suggest a correction

(863)

4.30 pm

Thank you, Mdm Chair. I thank the Minister and Senior Minister of State for their responses and I beg leave to withdraw my amendment.

Suggest a correction

(864)

4.30 pm

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

Suggest a correction

(866)

4.30 pm

[(proc text) The sum of $229,947,400 for Head R ordered to stand part of the Main Estimates. (proc text)]

Suggest a correction

(867)

4.30 pm

[(proc text) The sum of $327,810,000 for Head R ordered to stand part of the Development Estimates. (proc text)]

Suggest a correction

(869)

Affordable Rental and Basic Housing

Er Dr Lee Bee Wah. Not here. Assoc Prof Dr Muhammad Faishal Ibrahim, you have two cuts. Please take them together and please move the Motion.

Suggest a correction

(870)

Affordable Rental and Basic Housing

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

Suggest a correction

(871)

Affordable Rental and Basic Housing

Madam, the affordability of public housing has often been an issue which is close to the heart of many Singaporeans. In recent years, the Ministry has undertaken many policy initiatives, such as an increase in the supply of HDB flats, an increase in Government housing grants and the cooling measures to the property market. We have also witnessed a general decrease in the prices of HDB flats.

Suggest a correction

(872)

Affordable Rental and Basic Housing

During my interactions with the public, I observed two groups of Singaporeans with two distinct responses to the general decrease in property prices. One group is concerned about the continued decrease in the price or value of their HDB flats as they are worried about the value of their asset, which is their flat. Another group is happy with the decrease in the prices. In fact, they hope that it will decrease further, some by single-digit percentage points, while others do not mind a double-digit percentage point drop, so that it will become more affordable for their children and our future generation.

Suggest a correction

(873)

Affordable Rental and Basic Housing

As there have been a fair bit of movements and changes both from the policy and price fronts, I would like to ask the Minister how has the affordability of our public housing changed for the different groups of buyers and types of flats, namely, BTO and resale flats. What more will the Ministry do to ensure that public housing remains affordable for Singaporeans?

Suggest a correction

(874)

Affordable Rental and Basic Housing

Madam, my second cut. Many singles welcomed the news when the Ministry refined its policy to allow them to buy 2-room BTO flats. In a Parliament sitting recently, the Ministry informed the House that about 9,000 applicants who are single were able to select a flat. In the same sitting, we were informed that there were still about 9,300 applicants who did not have a chance to select a flat.

Suggest a correction

(875)

Affordable Rental and Basic Housing

I have met a few singles who have been unsuccessful in their applications. I believe they are among the 9,300 unsuccessful applicants. I would like to ask the Minister how long will

Suggest a correction

(877)

Affordable Rental and Basic Housing

the Ministry take to clear the 9,300 unsuccessful applicants. What is the Ministry doing to assist these applicants in getting their flats? Will the Ministry consider increasing the quota or chances for the singles?

Suggest a correction

(878)

Affordable Rental and Basic Housing

Thank you, Madam. HDB's priority should be to promote and enable home ownership. This is especially so for first-time home owners.

Suggest a correction

(879)

Affordable Rental and Basic Housing

But that principle has been somewhat diluted by the pre-occupation with asset enhancement. In the past, prices have increased substantially and rental returns for HDB flats have been among the highest in the market. That has affected behaviour and many have treated their HDB flats as an asset to invest in or speculate on or to sell to pay off debts.

Suggest a correction

(880)

Affordable Rental and Basic Housing

The problem is that, the rising prices have led to the enduring narrative that flats have become unaffordable and that young couples will be expected to spend a good part of their working lives paying for their homes. This has caused anxiety and unhappiness among young couples and their parents. Steps have been taken to reduce prices – including increasing subsidies. But the anxiety remains.

Suggest a correction

(881)

Affordable Rental and Basic Housing

I submit that it has become necessary for the HDB to make bolder moves to reinforce the principle of home ownership and affordability and I have several proposals for the Minister's consideration.

Suggest a correction

(882)

Affordable Rental and Basic Housing

First, peg the price of new flats to a multiple of the annual median incomes for first-timers. During Budget 2013, the Minister set a target for prices to be around four times the annual median income. While we have come closer to meeting this, we are still some way off. As of last year, 3-room flats cost 4.5 years of salary, while 4- and 5-room flats cost 5.26 times and 5.36 times respectively. If the ideal is four times annual income, then why not make that peg now? The prices of new flats are currently not that far off the peg to result in a market shock. More importantly, it establishes a steady state and gives assurance that prices will only move with incomes and no one would be priced out.

Suggest a correction

(883)

Affordable Rental and Basic Housing

Second, I renew the call I have made since 2010 to lift or remove the income ceiling. The income ceiling is too blunt a tool. It does not take into consideration the circumstances faced by each family, such as the number of dependants. Some may not want to take on large mortgages and cheaper homes would enable them to employ their capital to start a business or pursue other interests.

Suggest a correction

(885)

Affordable Rental and Basic Housing

Finally, consistent with the philosophy of home ownership, our rules should discourage short-term thinking. The Minimum Occupation Period should be lengthened. Singaporeans who pay considerably less for their flats should be expected to hold on to their flats longer. Those who are genuinely seeking a home should have no difficulties with this. The incentive to treat the flat as a financial investment will be reduced.

Suggest a correction

(886)

Affordable Rental and Basic Housing

I urge the Minister not to resort to minor tweaks, but to make bold moves to change the current narrative. Circumstances have changed and HDB needs to transform to meet the needs of a different generation with different challenges.

Suggest a correction

(887)

Affordable Rental and Basic Housing

Er Dr Lee, are you ready?

Suggest a correction

(888)

Affordable Rental and Basic Housing

Mdm Chairman, each year, the Budget introduces and enhances compassionate policies, a clear indication that the Government has its ears to the ground and doing their best to help those in need. I would like to begin by drawing attention to housing matters, a significant and contentious issue that remains close to the hearts of Singaporeans.

Suggest a correction

(889)

Affordable Rental and Basic Housing

I believe strongly in housing for everyone. Home ownership is the cornerstone of our public housing programme. The increase in construction of BTO flats, release of more land for housing development, the property cooling measures and a slew of other policies have helped to calm down prices. This has made home prices more attainable than they were a few years back. But there are some home buyers who still require further assistance.

Suggest a correction

(890)

Affordable Rental and Basic Housing

First, divorcees with children and widowed parents. I have spoken up for divorcees who have to care for their children in previous Budget debates and I will do so again.

Suggest a correction

(891)

Affordable Rental and Basic Housing

I would like to ask the Minister how many divorcees have been helped under the ASSIST Scheme. How many are still not successful in their applications for HDB flats? What is the longest waiting time? Can the Minister consider allocating a higher quota to this group of purchasers? Not just allow them to buy, but many of them also require HDB loans. Just last week, I saw one of my residents, Mdm Ong. She was asking for a third loan and she is a divorcee with three children aged 12, 15 and 16. She is working very hard, taking on two jobs, earning $3,400 a month and she would love to own a flat so that they have a house of their own. But my appeal to HDB has not been successful and I hope the Minister will look into this case.

Suggest a correction

(893)

Affordable Rental and Basic Housing

Second group – married couples who hit salary ceiling. I would like to propose that the cap for HDB flats be increased. More couples are marrying later in life and their combined salaries would exceed the cap, depriving them of the opportunity to own and live in an HDB flat. If they are thinking of having a child, their choice of housing would be perfectly understandable. It is more affordable to maintain a HDB flat than private housing. I am most sympathetic towards the plight of this sandwiched middle-income group.

Suggest a correction

(894)

Affordable Rental and Basic Housing

The Government has always encouraged women to stay in the workforce. They should not feel that they are being penalised for having a career or be subject to the dilemma of quitting their jobs just to qualify for an HDB flat, which some couples are doing.

Suggest a correction

(895)

Affordable Rental and Basic Housing

There have been various initiatives to encourage married couples to stay near their parents. It is a positive sign that the take-up rate is good as it shows that many children would still like to be in a position that makes it easier for them to care for and spend time with their parents.

Suggest a correction

(896)

Affordable Rental and Basic Housing

However, many senior citizens live in mature estates which are more expensive. I hope the Government will consider such cases and create more grants to help families who want to live close to each other.

Suggest a correction

(897)

Affordable Rental and Basic Housing

Next, it is those who have spare cash to invest. I understand that the Additional Buyer's Stamp Duty (ABSD) started out as a fairly effective initiative to discourage unnecessary ownership of multiple properties, especially in the case of HDB flat owners. But now the outcome is people are turning to investment opportunities in foreign properties abroad. More Singaporeans are looking beyond our shores – from Malaysia, Cambodia, to as far as the US and the UK – regardless of the risks. Some just buy off the beautiful plans.

Suggest a correction

(898)

Affordable Rental and Basic Housing

There are still many Singaporeans who have spare cash and do not know what to invest in. With the influence of their friends and fellow investors, coupled with the low initial down payments and fewer restrictions in foreign properties, Singaporeans are enticed to look abroad. This not only does little benefit to our economy, but we are putting our people at risk. I feel we should keep the Total Debt Servicing Ratio (TDSR) to encourage prudence in financial spending, but remove the Additional Buyer's Stamp Duty for Singaporeans, so that they can invest in properties in Singapore.

Suggest a correction

(899)

Affordable Rental and Basic Housing

Last but not least, retirees who want to monetise their flats. Very often, I have residents who tell me that their flats now are empty because their children have shifted out, have married and they have their own flats. They would like to right-size, buy a Studio Apartment. But many of them tell me that there are no Studio Apartments in Yishun for sale.

Suggest a correction

(901)

Affordable Rental and Basic Housing

Therefore, I would like to ask the Minister to build more Studio Apartments so that our residents can right-size. Normally, they would like to stay in the same estate. So, if they are Nee Soon South residents, they would like to stay put in Nee Soon South. I hope that our compassionate Minister – I know the Minister is very religious and very compassionate – will look into the above cases that I have mentioned.

Suggest a correction

(902)

Affordable Rental and Basic Housing

Madam, Budget 2015 includes key measures to improve retirement adequacy. The Lease Buyback Scheme (LBS) is one of the key means by which seniors can unlock the value inherent in their homes, particularly if they wish to age in place. However, take-up remains low in spite of recent enhancements. One of the barriers holding back seniors from taking up this Scheme is concern on their part that their children would not be able to inherit the flat from them and, hence, would not enjoy the financial benefit to help them cope with potentially higher property prices in the future.

Suggest a correction

(903)

Affordable Rental and Basic Housing

There are references in the academic literature to this bequest motive as being one reason for the low take-up of LBS. The Minister for National Development has also cited this as one reason why the take-up is low. Madam, we have all met seniors who have expressed such a concern.

Suggest a correction

(904)

Affordable Rental and Basic Housing

I would like to suggest a way in which LBS can be tweaked to reduce this impediment. My suggestion is that the LBS could be modified to give the children of the deceased the option to buy back the portion of the lease that has been sold to HDB, provided, of course, that they qualify to own an HDB flat. They could be allowed to buy these back at the price of the unit valued at the time the LBS was executed by their parents. This privilege could be extended only to children of the deceased. Its purpose would be to counter the fear of some seniors that property would be unaffordable for their children in the future and against which the extended HDB lease, not the shortened one, offers better protection. Allaying this fear may lead to greater take-up of the LBS by those who need it.

Suggest a correction

(905)

Affordable Rental and Basic Housing

Some may argue that this is conferring an unfair advantage on the children as they can acquire property at below market rates in the future. But this is really no different from parents passing on their property to children – an accepted principle. All that changes here is that those seniors who are in need now will get another option to monetise their flats while at the same time offering better protection to their children from future property price inflation – a concern which may now be holding them back.

Suggest a correction

(907)

Affordable Rental and Basic Housing

(In Mandarin): [Please refer to Vernacular Speech.] Madam, Budget 2015 includes key measures to improve retirement adequacy. The Lease Buy-Back Scheme (LBS) is one of the key means by which seniors can unlock the value inherent in their homes, particularly if they wish to age in place. However, take-up remains low, in spite of recent enhancements.

Suggest a correction

(908)

Affordable Rental and Basic Housing

One of the barriers holding back seniors from taking up this scheme is concern on their part that their children would not be able to inherit the flat from them and, hence, would not enjoy the financial benefit to help them cope with potentially higher property prices in the future.

Suggest a correction

(909)

Affordable Rental and Basic Housing

There are references in the academic literature to this bequest motive as being one reason for the low take-up of LBS. The Minister for National Development has also cited this as one reason why the take-up of LBS is low. Madam, we have all met seniors who have expressed such a concern.

Suggest a correction

(910)

Affordable Rental and Basic Housing

I would like to suggest a way in which LBS can be tweaked to reduce this impediment.

Suggest a correction

(911)

Affordable Rental and Basic Housing

My suggestion is that the LBS could be modified to give the children of the deceased the option to buy back the portion of the lease that has been sold to HDB, provided, of course, that they qualify to own an HDB flat. And they could be allowed to buy this back at the price of the unit valued at the time the LBS was executed by their parents.

Suggest a correction

(912)

Affordable Rental and Basic Housing

Parents will always worry for their children. Even when the latter have already grown up and have their own families, parents will still worry for them. Even if the children do not have the financial means to support their elderly parents, parents will still worry for them. Some seniors are afraid that property will be unaffordable to their children in future and against which the extended HDB lease, not the shortened one, offers better protection. Allaying this fear may lead to greater take-up of LBS by those who need it.

Suggest a correction

(913)

Affordable Rental and Basic Housing

Some may argue that this is conferring an unfair advantage on the children as they can acquire property at below-market rates in future. But this is no different from parents passing on their property to their children, an accepted principle. All that changes here is that those seniors who are in need will get another option to monetise their flats while at the same time offering better protection to their children from future property price inflation. It is totally understandable that parents have this concern for their children.

Suggest a correction

(914)

Affordable Rental and Basic Housing

Mdm Chair, late last year in Parliament, I had asked that the Ministry consider offering HDB flats not on the usual 99-year leases but on

Suggest a correction

(916)

Affordable Rental and Basic Housing

shorter leases, say, 70-year tenure. Minister Khaw Boon Wan had then responded that the demand for these flats would not be strong and that the price point advantage may not be so attractive.

Suggest a correction

(917)

Affordable Rental and Basic Housing

In China, the lease for residential property is 70 years. While Singapore is certainly not China, I believe that offering HDB flats on a shorter lease has its advantages for Singaporeans. For instance, shorter leases could be for smaller flats – the prices for such flats, while it may not be proportionately lower based on its shorter lease term, would, nonetheless, provide another much needed opportunity for Singaporeans, under different circumstances and stage of their life, to own their own flat at a much lower price point. For some Singaporeans, they might not need nor desire to own a property for as long as 99-years and they might not want to pass their flat to the next generation – they just need a more affordable flat and for a shorter lease period.

Suggest a correction

(918)

Affordable Rental and Basic Housing

Although this group of Singaporeans could possibly look to the resale market, the prices in the resale market are subject to greater fluctuations and are usually at a higher premium than if they were to buy from HDB. Also, these people might desire new flats, which the resale market would not be able to offer even though they might have shorter leases.

Suggest a correction

(919)

Affordable Rental and Basic Housing

As such, I hope Minister and the Ministry could consider – besides having HDB flats with 99-year leases – offering some HDB flats, especially smaller flats on shorter tenures, such as on 70-year leases.

Suggest a correction

(920)

Affordable Rental and Basic Housing

Mdm Chair, first-time HDB buyers enjoy substantial subsidies when they buy new flats. For those who wish to buy a resale flat, they can, of course, apply for housing grants to help them. However, I have encountered many cases whereby the maximum HDB loan some young couples can apply for, based on their current income, is insufficient. This is especially so for those with a larger proportion of the income based on commission, whether it be sales, individuals or airline stewardesses, stewards. A large proportion of their income is based on commission. Or there are those who are freelance and self-employed workers. For this group, they have no fixed CPF contributions, are unable to provide a regular exhibition of their income in order to compute their housing loan, unlike that of a salaried worker whose employer will provide that information quite readily.

Suggest a correction

(921)

Affordable Rental and Basic Housing

I also heard from them that HDB will typically assess their housing loan application based on their savings or whether they are financially able to commit to such a long-term loan amount. That is a very prudent approach but I do hope that the HDB can re-assess the way the housing loan amount is computed for this group – the freelance and self-employed

Suggest a correction

(923)

Affordable Rental and Basic Housing

workers, as well as those based on commission.

Suggest a correction

(924)

Affordable Rental and Basic Housing

One way to do so is to assess the loan requests based on the median income of the applicants' cohort – people of about the same age, same background – and use the median income to compute the housing loan amount that this group may be eligible for.

Suggest a correction

(925)

Affordable Rental and Basic Housing

Furthermore, the demographics of a workforce are changing and more are becoming self-employed and non-salaried workers. So, I hope that HDB can look into this option. Of course, there is some risk involved but let us find ways to establish how this group can access the appropriate amount of housing loan to buy their HDB flats.

Suggest a correction

(926)

Affordable Rental and Basic Housing

Madam, during the debate on the President's Address last year, I called for the Ministry to consider expanding the number of 3-room PPHS flats. I noted that the take-up rates of 4- and 5-room PPHS flats were much lower due to high rental costs.

Suggest a correction

(927)

Affordable Rental and Basic Housing

I acknowledge the Government's efforts since then to reduce rental costs by allowing for co-renting, and to increase the number of 3-room PPHS flats to be made available in the first and second quarters of 2015.

Suggest a correction

(928)

Affordable Rental and Basic Housing

Based on the HDB website, I note that more than 60% of the 3-room PPHS flats to be made available will come from only one location in Jurong West. While I understand the constraints of finding eligible vacated SERS flats for adoption into the PPHS, I hope that the Ministry can make more efforts to spread out the number of such flats throughout the island.

Suggest a correction

(929)

Affordable Rental and Basic Housing

Next, I would like to propose to the Government to study the feasibility of pegging rental charges to the median income of those applying for the same class of flats, rather than to the market rate. The recommended affordability rate is for a debt service ratio of 25%, which means if the median monthly income is $2,000, the mortgage payment or rent should be $500. This will lower the rental charges substantially and make PPHS more affordable, attractive and, thus, further improve the take-up rate.

Suggest a correction

(930)

Affordable Rental and Basic Housing

Mdm Chair, I am heartened to see that Singapore has done a commendable job in formulating policies that encourage home ownership amongst Singaporeans. Statistics for home ownership in Singapore are higher in comparison

Suggest a correction

(932)

Affordable Rental and Basic Housing

to several other developed countries and this is a good sign.

Suggest a correction

(933)

Affordable Rental and Basic Housing

However, I believe we can do more to help residents of rental flats to have home ownership. They could be in the current predicament due to divorce, massive debt or, simply, short-sightedness in managing their asset. Given their circumstances, many of these residents face difficulty in obtaining a house of their own under existing housing policies. Living in rental flats on a long-term basis can be detrimental to the overall well-being of the family, especially those with young children.

Suggest a correction

(934)

Affordable Rental and Basic Housing

I would like to urge the Government to consider providing a planned and structured approach in terms of helping these families towards home ownership. This may involve several agencies supporting one another to create a virtuous cycle for these families to manage their issues and move towards having their own home.

Suggest a correction

(935)

Affordable Rental and Basic Housing

If necessary, I would also like the Government to consider implementing a special housing policy to help these families. This policy should naturally come with stricter sale restriction and conditions, such as a shorter lease, to make the flat affordable for this group of people. Having a home of their own can be the tipping point for these families to get a new headstart in life and create for themselves a hope for a better future.

Suggest a correction

(936)

Affordable Rental and Basic Housing

Madam, the resale levy policy was revised in 2006 primarily to address the uncertainty for HDB upgraders created by the previous policy. The revised resale levy is a fixed amount based on the flat type, while the previous resale levy is a moving target based on a percentage of the resale price.

Suggest a correction

(937)

Affordable Rental and Basic Housing

Under the old policy, flat owners who sold their first HDB flat without paying the resale levy at the point of sale could end up with a huge compounded levy if they wish to buy another subsidised flat a few years down the road.

Suggest a correction

(938)

Affordable Rental and Basic Housing

Take Mr A, for example. He deferred his resale levy of about $80,000 when he sold his first flat in 1999. He said he will have to fork out more than $180,000 in cash for the compounded resale levy by the time his new BTO flat is completed in 2017.

Suggest a correction

(939)

Affordable Rental and Basic Housing

For all the policy intent, Mr A did not enjoy an actual subsidy of $180,000. There is also no opportunity cost to HDB as Mr A would have avoided paying the levy altogether by buying a resale flat instead. In short, HDB is prepared to write off the original resale levy if Mr A

Suggest a correction

(941)

Affordable Rental and Basic Housing

takes the resale option.

Suggest a correction

(942)

Affordable Rental and Basic Housing

I have no doubt that the resale levy is meant to reduce the subsidy enjoyed by second-timer flat owners and to ensure fair distribution of the limited subsidies. But I doubt the policy intent of the interest charged for the deferred resale levy. I hope HDB can take steps, just like in 2006, to bring some certainty to second-timers caught by the interest issue so that they can finally buy a flat from HDB.

Suggest a correction

(943)

Affordable Rental and Basic Housing

Mdm Chairman, there is a Chinese saying, "天有不测之风云, 人算不如天算" that essentially means, "Although chance favours the prepared, many things remain unpredictable". In spite of the cooling measures, property prices in Singapore had risen by more than 60% by 2013 from 2006. Back then, many were lamenting the fact that prices of many properties were costing more than a million dollars and prices of several HDB flats were approaching towards that also. Many were worried that their children may never be able to afford a property of their own.

Suggest a correction

(944)

Affordable Rental and Basic Housing

Many people may have forgotten that some 12 years ago, we were facing a chronic glut of about 12,000 units of unsold HDB homes! It was not until 2006 that people began buying these unsold flats despite accompanying rising prices. The onward march of demand and rising prices caused untold worries. In attempting to control the runaway property prices, a slew of cooling measures was introduced.

Suggest a correction

(945)

Affordable Rental and Basic Housing

I wish to bring to the Minister's attention that there are people who are much affected by these cooling measures and appeal to his compassion to extend a helping hand where possible.

Suggest a correction

(946)

Affordable Rental and Basic Housing

Our Government makes policies aimed at addressing problems that crop up every now and then. In the case of policies aimed at arresting possible runaway property prices as well as to ensure that Singaporeans do not over-stretch their finances, a slew of cooling measures had been introduced. Some people are lamenting that we should have started this earlier whilst many others are making a loud hue and cry that these cooling measures have already achieved their intended aims now that prices have come down somewhat. But there are many others who are caught out, wittingly or unwittingly, as a result of the Total Debt Servicing Ratio (TDSR).

Suggest a correction

(947)

Affordable Rental and Basic Housing

HDB ruling requires a buyer of another public or private property to sell off their HDB flat within six months. Given the "short-circuit effect" of the TDSR, the "knock-on effect" is that such buyers face difficulty in selling their HDB flat within the six-month grace period

Suggest a correction

(949)

Affordable Rental and Basic Housing

because the pool of buyers has dwindled.

Suggest a correction

(950)

Affordable Rental and Basic Housing

Another group of people caught out are new buyers of HDB flats who are truly unable to go through their purchases because of insufficient loans in view of the TDSR restricting them to lesser HDB Loan Eligibility (HLE) amounts. To go through with their purchases, they could either fork out the difference in cash or borrow the difference from banks.

Suggest a correction

(951)

Affordable Rental and Basic Housing

However, given their ineligibility to qualify for higher HLE, they are most unlikely to qualify for commercial borrowings or to have the extra cash. They are forced to forgo their purchases and, as a result, lose their deposits amounting to tens of thousands of dollars, which they can ill-afford, to HDB. Madam, I appeal for compassion to not confiscate their deposits when they are proven unable to go through with their purchases.

Suggest a correction

(952)

Affordable Rental and Basic Housing

When they get married, it is unusual for our young people to have contingency plans for if and when marriages fail. Divorce is the last thing on their minds. However, when a divorce happens, many people get hurt and more so the children who are innocent parties. Again, I appeal for compassion to help these victims of fractured relations when the division of matrimonial assets include the HDB flat.

Suggest a correction

(953)

Affordable Rental and Basic Housing

Many a time, in a divorce, the one with the custody of the children is caught out, at best, being unable to pay for the matrimonial home, but worse, being left with no roof over their head. Under existing rules, there is a restriction of three years before eligibility for a new application. I urge HDB to review this policy to help such a divorcee and the children.

Suggest a correction

(954)

Affordable Rental and Basic Housing

Mdm Chair, I congratulate the Minister for his tremendous efforts in the last four years in trying to re-balance the demand and supply of homes for Singaporeans. Prices are adjusting downwards whilst supply of properties favours buyers. The current number of homes stands at about 1.28 million – 960,000 HDB and 320,000 private. The projection for the year 2018 is 1.43 million. Given the reduction in foreign workers allowed in, the restrictions in policies for permanent residents and the additional stamp duties, I wonder if we have gone too far. I agree that it is a difficult balancing job and I wish the Minister well.

Suggest a correction

(955)

Affordable Rental and Basic Housing

However, I urge for caution and for sensitivity to murmurs and ramblings on the ground. Also, would it be feasible to de-link the rules for public from private sectors so that all Singaporeans can always afford a heavily-subsidised HDB home and not have to follow the trends in the private sector?

Suggest a correction

(957)

Affordable Rental and Basic Housing

Mdm Chair, home ownership is a key pillar to Singapore's social security. It is integral to retirement adequacy. In fact, we would all recall our Prime Minister explaining during the last National Day Rally how Singaporeans can monetise their HDB flats to enhance their retirement adequacy using various options like rental and right-sizing.

Suggest a correction

(958)

Affordable Rental and Basic Housing

Whilst I applaud the Government for imposing a series of cooling measures to rein in the escalating property prices, we must be careful that these well-intentioned corrections are not overdone. I have already met a number of retirees struggling to sell their flats to right-size to fund their retirement.

Suggest a correction

(959)

Affordable Rental and Basic Housing

As a large part of Singaporean household finances is tied to property, a loss in confidence in property could trigger a downward spiral in values with dire consequences for many families and their retirement plans. So far, the cooling measures have helped to ease private home prices by 4% and public home prices by 6%. We have seen price corrections over successive quarters. Given that the huge supply of new housing units has yet to hit the market and the impending rise of interest rates, we must be cautious that this downward price trend does not inadvertently get a momentum and reach an unintended pace.

Suggest a correction

(960)

Affordable Rental and Basic Housing

Many are relieved that the Minister intends for further price corrections to stay within the single digit and not double-digit range. However, some industry players have told me that this is easier said than done. Their concern is that once a downward momentum begins, the downward pressure on prices may not be so easy to control, as we have seen in previous property cycles.

Suggest a correction

(961)

Affordable Rental and Basic Housing

I would like to ask the Minister, at which point should cooling measures be eased in order to cushion any excessive price corrections. For example, with the TDSR framework in place, coupled with the tightening of loan-to-value ratios to encourage financial prudence, could we not consider waiving the ABSD for Singaporeans only at the appropriate time?

Suggest a correction

(962)

Affordable Rental and Basic Housing

Madam, property market cycles can never be completely flattened out and we can only hope to moderate the volatility. With this in mind, I would like to ask the Minister if the Government would consider using a long-term index to determine property prices in housing schemes targeted at seniors, such as the Lease Buyback Scheme, instead of using actual valuations at one point in time. Could the Minister consider using, say, average three years' price points so that retirees need not worry so much about timing the sale of their homes, something that many are ill-equipped to do?

Suggest a correction

(964)

Affordable Rental and Basic Housing

Mr Gan Thiam Poh, you have five cuts, please take them together.

Suggest a correction

(965)

Affordable Rental and Basic Housing

Thank you, Mdm Chair. In Mandarin, please.

Suggest a correction

(966)

Affordable Rental and Basic Housing

(In Mandarin): [Please refer to Vernacular Speech.] At the opening of the Twelfth Parliament, I suggested that the Government could consider providing cheaper HDB flats with a shorter lease than 99 years to needy Singaporeans.

Suggest a correction

(967)

Affordable Rental and Basic Housing

The Government is already providing Studio Apartments with a 30-year lease to the elderly. Can the Government consider supplying flats with leases of 60, 70 or even 45 years and sell them at a lower price to needy Singaporeans?

Suggest a correction

(968)

Affordable Rental and Basic Housing

For a start, the Government could consider 3-room or smaller HDB flats and sell them to people who have applied twice directly with HDB, enjoyed the grants twice but, for whatever reason, encountered financial difficulties and cannot afford to buy on the open market. At the same time, we can stipulate that people who have bought these cheaper flats can only sell them back to HDB to prevent them from profiteering.

Suggest a correction

(969)

Affordable Rental and Basic Housing

(In English): Mdm Chair, most couples today prefer to have their own flats before having children. And the wait of 2.5 years to four years to collect the key to a BTO flat may be somewhat too long, especially in view of the increasing ages of the brides and grooms, as people tend to get married later nowadays.

Suggest a correction

(970)

Affordable Rental and Basic Housing

Hence, I would like to ask if the Ministry would be prepared to build more flats for buffer stock going forward. This will result in a shorter waiting time for our newly-wed couples, encouraging them to get married early and have more children.

Suggest a correction

(971)

Affordable Rental and Basic Housing

Presently, a couple's average gross monthly income must not exceed $10,000 for them to be eligible for a new HDB flat. Some couples who marry late and thus are earning higher incomes or who want to be financially prudent have appealed to my parliamentary colleagues or me to ask the Ministry to waive the income ceiling for all first-time joint applicants. They feel that they should not be penalised for their circumstances.

Suggest a correction

(973)

Affordable Rental and Basic Housing

Would the Ministry consider providing all first-timer joint applicants an equal chance for the first bite of the cherry for BTO flats? I am sure that by doing so, it will lighten their financial load and aid in procreation.

Suggest a correction

(974)

Affordable Rental and Basic Housing

Presently, under the Parenthood Priority Scheme (PPS), 30% of the BTO flat supply and 50% of the Sale of Balance flat units are set aside for first-timer married couples with at least one child. For families with at least three children, they can take advantage of the third-child priority scheme under which up to 5% of the available flat supply is set aside for them. And if they are not successful under the TCP, they get to ballot again under the PPS. I would like to ask whether the Ministry would consider giving applicants and upgraders with at least two children even higher priority and an additional grant for each child in the family.

Suggest a correction

(975)

Affordable Rental and Basic Housing

At my Meet-the-People Sessions, I have always found it heartening to receive requests for help from young couples wanting to stay near their parents. This shows that our family ties are still strong. Unfortunately, there are many new families competing for such units in mature estates and the Government cannot always build more blocks of flats due to lack of space in these mature estates. On the other hand, parents may be reluctant to relocate and stay near their children in a new estate, even if the amenities or infrastructure are better in these new estates.

Suggest a correction

(976)

Affordable Rental and Basic Housing

Hence, will MND consider adding rooms to existing blocks if it is structurally possible? Just one or two more rooms may be all that is needed for three generations to stay together in their mature estate.

Suggest a correction

(977)

Affordable Rental and Basic Housing

Minister Khaw.

Suggest a correction

(978)

Affordable Rental and Basic Housing

Mdm Chair, recently, on 23 January, the UK newspaper The Independent had an article with this headline, "Londoners queue overnight in sub-zero temperatures to buy one-bedroom flat for £400,000". Four hundred thousand pounds is equivalent to about S$840,000. On the same day in Hong Kong, the South China Morning Post reported 130,000 applications for 2,160 subsidised flats in Hong Kong. The article's headline reads, "Only 1-in-60 chance to win in Hongkongers' rush for subsidised flats". The flats, which are roughly the size of our 2-room flats, are priced between HK$1.9 million and HK$3.3 million. This is more than four times our Build-to-Order (BTO) prices.

Suggest a correction

(980)

Affordable Rental and Basic Housing

These are sobering news about the acute housing situations in some cities. I think they put into better perspective our much more benign situation in Singapore. We did have a hot housing market in 2011, but it has cooled considerably since. After several years of increase, last year marked the first full year in which home prices fell. In 2014, the Resale Price Index for HDB flats fell by 6%, while the Property Price Index for private housing fell by 4%. All analysts expect the market to continue to fall this year.

Suggest a correction

(981)

Affordable Rental and Basic Housing

We want a soft landing for our housing market because a market crash benefits no one. Ms Foo Mee Har said that we should not go into overdrive and unwittingly undermine the retirement plan of our seniors who look to their housing assets for monetisation. I agree and that is why we have substantially reduced the supply of new flats.

Suggest a correction

(982)

Affordable Rental and Basic Housing

Ms Foo Mee Har and Er Dr Lee Bee Wah suggested that we adjust the Additional Buyer's Stamp Duty, especially for Singaporean buyers, when we are ready to unwind the cooling measures. I have also heard Dr Lily Neo's very thoughtful words of caution. Indeed, we should not overkill. The property market is in transition and it is a time that calls for vigilance and nimbleness. We will be careful. Let me share some data.

Suggest a correction

(983)

Affordable Rental and Basic Housing

The current property cycle picked up from its trough in 2009, which was six years ago. Between 2009 and 2014, HDB resale prices went up and reached the peak in 2013, but have since eased to 37% above the 2009 level. Over the same period, our median household income has caught up, rising by 38%; so, 38% versus 37%.

Suggest a correction

(984)

Affordable Rental and Basic Housing

If we look further back, the previous resale HDB market trough was in 2005, 10 years ago. This was two years after SARS. Comparing against this baseline, resale flat prices have gone up by 87% between 2005 and 2014. Over the same period, household income went up by 72%; so, 72% versus 87%. We are not yet at the 2005 affordability level; there is still a gap. Whether we use 2009 or 2005 as the base year, the situation today is very much better than in 2011. Our efforts in taming the housing market have seen results.

Suggest a correction

(985)

Affordable Rental and Basic Housing

BTO flat buyers who buy directly from HDB have benefited even more, as we subsidise new flats substantially. Between 2009 and 2014, BTO prices in non-mature estates grew by a smaller extent: 15% without grants, or a mere 6%, if you take into account the housing grants. Measured against the household income increase of 38% during that period, we can see that public housing affordability has substantially improved since 2011: 38% versus 6%.

Suggest a correction

(986)

Affordable Rental and Basic Housing

Unfortunately, not everyone knows how affordable our BTO flats are. Recently, we did a survey, in which we asked people, "How much do you think a four-room HDB BTO flat in a

Suggest a correction

(988)

Affordable Rental and Basic Housing

non-mature estate costs?" One third, a good 34%, admitted that they did not know. Five percent even said: more than half a million dollars!

Suggest a correction

(989)

Affordable Rental and Basic Housing

So, what is the correct answer? The average 4-room BTO price in non-mature estates last year was $295,000, and this was before housing grants. With housing grants, a young couple, earning $4,000 per month could get one for $260,000 on average, or about a quarter million dollars. The same survey also asked those intending to buy a flat, how much were they willing to pay. Their answers were: up to $300,000 for a 3-room flat; between $300,000 and $500,000 for a 4- or 5-room flat.

Suggest a correction

(990)

Affordable Rental and Basic Housing

And what is the actual situation? Last year, about 20,000 BTO flats were booked by Singaporeans. We sold 20,000 BTO flats. For 3-room flats, 90% – almost all – were sold below a quarter million dollars; 81% of 4-room flats were sold below $350,000, and 89% of 5-room flats were sold below $450,000. These are actual transactions. They paint a comforting picture of young Singaporeans being able to get their first BTO flat well within their expected budget. If we include housing grants, the picture looks even better. As far as housing is concerned, young Singaporeans are many times better off than their counterparts in London or Hong Kong. This is the reality.

Suggest a correction

(991)

Affordable Rental and Basic Housing

I would like BTO prices to be within four years of an applicant's annual salary. But this assumes that BTO applicants will be prudent in their choice of housing. An alternative to assess affordability is to see if a 25-year mortgage loan can be serviced mostly by monthly CPF contributions without much out-of-pocket cash payments. The Prime Minister in his 2013 National Day Rally speech used this approach and illustrated that families earning $1,000 were able to afford a 2-room flat; $2,000 for a 3-room flat and $4,000 for a 4-room flat. Of course, as income grows, then the income thresholds have to be adjusted accordingly.

Suggest a correction

(992)

Affordable Rental and Basic Housing

In Singapore, home ownership is not a privilege of the rich only. The benefits of our home ownership policy have reached all income groups, including the lower income group. In January, in reply to a question, I told this House that 744 families in the $1,000 to $1,200 income bracket had booked 2-room or larger BTO flats launched between March 2012 and July 2014. This is 744 families – not a small number.

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(993)

Affordable Rental and Basic Housing

The Member did not ask about those earning below $1,000 but let me provide the information. During the same period, another 1,491 families, almost 1,500 families with household incomes below $1,000 had also booked a flat – 2-room or larger. So, when we said that families with $1,000 household income could afford 2-room flats, we were not imagining things.

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(995)

Affordable Rental and Basic Housing

This happy state is the result of a conscious effort to help make Singaporeans home owners. We strongly believe that home-owning families provide the stability for our society and offer the best environment to bring up children. As Mencius put it: strong family values and relationships are foundations of a stable society. “天下之本在国 ,国之本在家”, that is, the foundation of the world is the nation, and the foundation of the nation is a strong family.

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(996)

Affordable Rental and Basic Housing

We set out as a national priority to give every Singaporean a home to start a family and a stake to prosper with the country's growth. Because of our Pioneers' foresight, we have achieved one of the highest home ownership rates in the world.

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(997)

Affordable Rental and Basic Housing

There was a recent survey of what matters to Singaporeans, and HDB was high up the chart. And this is rightly so. HDB has transformed our lives in many wonderful ways. We have come across many heart-warming stories. Let me share, through the lens of several families, what we have achieved over 50 years of home ownership and what more we can do for them. This is a tale of five families.

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(998)

Affordable Rental and Basic Housing

First, a home for life. HDB is both a home and an asset. But through Our Singapore Conversations (OSC), we found that many preferred "home first, then asset", because there are some things in life that money cannot buy.

Suggest a correction

(999)

Affordable Rental and Basic Housing

Mr and Mrs Sarmani's family epitomises this. They are my GRC colleague Senior Parliamentary Secretary Hawazi's residents. They bought their first 4-room flat in Marsiling directly from HDB in 1984 after they got married. They have stayed there ever since for the past 31 years. They are one of the half a million Singapore families who still live in their first HDB flat. They make up 60% of HDB households. Their first HDB flat is where they started their family, raised their children and built precious memories.

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(1000)

Affordable Rental and Basic Housing

When they moved out of their kampong into HDB flats, they thought they would lose the kampong spirit they used to enjoy. However, over the years, Mr and Mrs Sarmani have made many good friends in Marsiling. They know almost everybody. The old kampong spirit lives on and flourishes. Their daughters are planning to stay close and buy a flat nearby after marriage. Our Married Child Priority Scheme (MCPS) and the Higher-Tier CPF Housing Grant will help them do so.

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(1001)

Affordable Rental and Basic Housing

When Mr and Mrs Sarmani bought their flat in 1984, they paid $45,000. The flat has appreciated in value to more than $300,000 today. Some of their neighbours have moved out to realise the capital gains. However, for Mr and Mrs Sarmani, they are in no hurry to do so. They have chosen to stay put, because this is home and they have family and friends nearby. I visited them last week and we had a good chat. We are happy for Mr and Mrs

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(1002)

Affordable Rental and Basic Housing

Page: 130

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(1003)

Affordable Rental and Basic Housing

Sarmani and we will do more for Singaporeans like them.

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(1004)

Affordable Rental and Basic Housing

First, from next month, that is, 1 April 2015, the new Lease Buyback Scheme (LBS) will take effect. Four-room flat owners will now be able to participate in LBS, too. Ms Foo Mee Har suggested that we use a more long-term property index, such as the past three-year average value of the flat, to determine the property price for LBS. Such an approach will benefit flat owners if prices are declining, but not if prices are rising.

Suggest a correction

(1005)

Affordable Rental and Basic Housing

We are caught. How do you set a policy that benefits both sides? The only practical way is for HDB to adopt the current market value, as determined by professional valuers, to ensure that flat owners benefit at fair value based on prevailing market conditions.

Suggest a correction

(1006)

Affordable Rental and Basic Housing

I thank Mr Chen Show Mao for his suggestions on how we can further adjust LBS. He has raised it in this House previously and I thought I had answered him already.

Suggest a correction

(1007)

Affordable Rental and Basic Housing

Basically, if the children have plans to take over the property after their parents have passed on, then LBS is not the best option for the parents. What is the best option? Look after their parents when they are still alive. Then, there is no need for their parents to have to look to HDB for cash payments and then when they pass on, the flat is yours. But if you do not look after the parents, then you are forcing the parents to think of other monetisation options. Anyway, let us get the new LBS properly implemented first. We can make further adjustments in the light of experience.

Suggest a correction

(1008)

Affordable Rental and Basic Housing

Second, now that we have enhanced LBS, we will also review the Studio Apartment (SA) scheme. The SA scheme was introduced in 1998. At that time, HDB had stopped building small flats. The SA scheme, therefore, provided a smaller flat option for seniors who wanted to right-size. Today, we also offer new 2-room flats.

Suggest a correction

(1009)

Affordable Rental and Basic Housing

Mr Seah Kian Peng and Mr Gan Thiam Poh proposed that we introduce shorter lease tenures in some of our BTO projects. Mr Seah suggested this a few months ago and I have been mulling over this idea. We may be able to use this suggestion of shorter leases to rationalise the two schemes – the Studio Apartment and the 2-room flat schemes. For example, if we have a new 2-room flat scheme, offering varying lease tenures and lease terms, it may allow us to cater to different groups with varying needs and, in the process, unify both schemes. MND and HDB are working on this and we will also gather some inputs from the public.

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(1010)

Affordable Rental and Basic Housing

Page: 131

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(1011)

Affordable Rental and Basic Housing

Singapore's home ownership policy has benefited two whole generations of Singaporeans, like Mr and Mrs Sarmani and, soon, their children. Our commitment is to their grandchildren, too, so that they can, in due course, own their own homes and raise a family.

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(1012)

Affordable Rental and Basic Housing

In 2011, many Singaporeans were swayed by the social media commentaries and worried that the Singapore Dream would not be available to future generations. We have proved through action that the worry was unnecessary. After four years of hard work, we have cleared the backlog and placed our home ownership policy on even firmer foundation. Every generation will be able to afford their own HDB homes. This is our promise.

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(1013)

Affordable Rental and Basic Housing

Mr Gan Thiam Poh asked that we build ahead of demand in a significant way so that flats are available on demand. No developers adopt such a model because the holding cost of keeping a large number of flats empty will be prohibitive. By building ahead of order today, HDB is actually building ahead of demand, but in a more measured way.

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(1014)

Affordable Rental and Basic Housing

As not all BTO projects are fully booked at the time of initial launch, we have a natural inventory of unsold flats. We refer to them as balance flats and they come with a shorter delivery period. For example, currently, we have over 10,000 balance flats and they will come in handy for those with urgent housing needs. Every now and then, I receive appeals from Members because, for various reasons, some of their residents have desperate needs for a roof and they cannot wait for a BTO although they can ballot for a BTO. But they cannot wait. So, this buffer stock of surplus flats will come in handy. If Members come across genuine needy cases, do let me know so that I can show compassion.

Suggest a correction

(1015)

Affordable Rental and Basic Housing

Separately, we have introduced the Parenthood Provisional Housing Scheme (PPHS) for those who are willing to rent while waiting for their keys to their BTO flats. PPHS has been very well received. It has benefited close to 1,200 families and happily produced more than 120 "PPHS babies" because they need to have babies or be pregnant to qualify for this scheme.

Suggest a correction

(1016)

Affordable Rental and Basic Housing

To answer Ms Lee Li Lian's query, we are adding 800 more PPHS flats this year and we will spread them out – namely 3-room flats in various locations other than Jurong West, including Bukit Merah and Queenstown. The rentals will remain affordable because we impose a very substantial discount from the market rates.

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(1017)

Affordable Rental and Basic Housing

Mr Ang Hin Kee suggested that we help young couples with low or irregular income get a HDB loan by pegging their loan to their cohort's median income level. Dr Lily Neo asked HDB not to forfeit buyers' deposits when they are unable to get a sufficient loan to go through with their transaction.

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(1018)

Affordable Rental and Basic Housing

Page: 132

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(1019)

Affordable Rental and Basic Housing

We do exercise flexibility in credit assessment as well as appeals for refund of deposits as HDB looks into the specific circumstances of each case. We now have a new procedure requiring BTO flat buyers who intend to take an HDB housing loan to get an HDB Loan Eligibility (HLE) loan entitlement letter before booking to help them better plan their finances. HDB needs to ensure that the buyer is able to finance the home and keep it for the long term. It is not in the buyers' interest to overstretch, only to run into problems later.

Suggest a correction

(1020)

Affordable Rental and Basic Housing

Mr Gan Thiam Poh asked for higher priority or grants for couples with more children as a pro-family incentive. We do give priority for those with children or who are expecting a child, especially those with three or more children. Likewise, we have increased the Special CPF Housing Grant just recently to help couples buy their first home, but we have no plan to peg the housing grants to the number of children one has. I think it is better for the Government to support parenthood in other ways.

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(1021)

Affordable Rental and Basic Housing

Mr Hri Kumar felt that we should return to the basic aim of home ownership and de-emphasise the asset enhancement role of the HDB flat. Specifically, he asked that we further lengthen the minimum occupation period (MOP) for HDB flats. We have done some recalibration and it is a balance that we have to continue to strike. However, I would be against an "all home, no asset" approach. In other words, it should be just purely for home occupation and we should not allow this flat to have commercial value such that we forget about the asset enhancement role. If we do that, then home ownership would mutate into a permanent rental scheme. Many Singaporeans, including Mr and Mrs Sarmani, would not have had a nest egg had we chosen such an approach.

Suggest a correction

(1022)

Affordable Rental and Basic Housing

Er Dr Lee Bee Wah, Mr Hri Kumar and Mr Gan Thiam Poh asked if we could raise or even remove the HDB income ceiling. We increased it in 2011. I do not think we want to lift the ceiling completely because HDB flats are heavily subsidised and we should continue to target help at those who need help more. However, as the income level rises, we must be prepared to adjust the income ceiling. Anyway, I have noted the Members' call and I will mull over it.

Suggest a correction

(1023)

Affordable Rental and Basic Housing

Second, one family, two flats. While Mr and Mrs Sarmani were happy with their first flat, there are many others who took two steps, two prudent steps, as they pursued their housing dream – a smaller flat and then a bigger flat. When Mr and Mrs Lim Bok Eng started out, they bought a 3-room flat; they were young and did not need such a large flat. But when the first kid came along in 1996 and then the second kid two years later, their priorities changed. They needed more space and they bought a 4-room flat in Ang Mo Kio from HDB. Capital gains from the sale of their first flat partly paid for the second one. Today, the family of four live happily in their 4-room flat. Mr Lim's mother is also happy. She stays with another son, also in Ang Mo Kio. It is like having one big family spread over two flats, secured by strong family bonds. I agree totally with Er Dr Lee Bee Wah that we should help more families

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(1024)

Affordable Rental and Basic Housing

Page: 133

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(1025)

Affordable Rental and Basic Housing

like Mr and Mrs Lim live close together with their parents.

Suggest a correction

(1026)

Affordable Rental and Basic Housing

First, we have recently converted the Married Child Priority Scheme (MCPS) into a quota-based scheme to benefit even more families. This applied to the BTO projects launched last year in Tampines North and will also apply to Bidadari this year when we launch the first BTO project there. This will benefit families with children, who are looking for new flats, living in Toa Payoh and Potong Pasir. We are also building more 3Gen flats, including in mature estates, but I am not sure if it is feasible to add rooms to existing flats as suggested by Mr Gan Thiam Poh. We will need to add toilets, too, and that would be challenging, I think.

Suggest a correction

(1027)

Affordable Rental and Basic Housing

Second, we give the Higher-Tier CPF Housing Grant for first-timers who buy a resale flat near or with their married children or elderly parents. Nonetheless, there are couples who had earlier moved away from their parents, but would now like to move back closer after they had their kids or when their parents needed more care. While they can apply for a BTO flat, there are limited new flats that HDB can launch in the mature estates. In addition, they would also have to pay the resale levy.

Suggest a correction

(1028)

Affordable Rental and Basic Housing

Mr Png Eng Huat commented on the resale levy and mentioned his resident's case of having to fork out a resale levy computed at $180,000. We know the rationale for resale levy. The resale levy helps ensure a fairer distribution between first-timers who have never enjoyed a subsidy before and second-timers who have already enjoyed one. But on a needs basis, HDB has helped, for example, by including it as part of the flat price and allowing it to be paid via instalments. I am keen to help this particular case with the resale levy of something like $180,000. Please send the case to me and I will take a look.

Suggest a correction

(1029)

Affordable Rental and Basic Housing

Meanwhile, we will study whether we can further help those who wish to buy a resale flat near their parents. Like Er Dr Lee Bee Wah, I am keen to foster strong families and allow family members to live near one another.

Suggest a correction

(1030)

Affordable Rental and Basic Housing

Third, single and secure. While marriage and parenthood will remain at the core of our housing policy, I recognise that we are more diverse today as a society with many Singaporeans remaining single. Although most live comfortably with their extended families, many will desire the privacy and stability of homeownership. Many singles are proud owners of resale flats, some with the help of substantial housing grants.

Suggest a correction

(1031)

Affordable Rental and Basic Housing

Nevertheless, we recognise there is a limited supply of smaller flats in the resale market and not all can afford bigger resale flats. That is why in July 2013, we broke new ground when we allowed singles to buy 2-room BTO flats in the non-mature estates, if they have never bought subsidised HDB flats before. We also extended additional housing grants to support their flat purchase. And, of course, the response has been overwhelming; over 18,000 have

Suggest a correction

(1032)

Affordable Rental and Basic Housing

Page: 134

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(1033)

Affordable Rental and Basic Housing

applied and half have had the chance to book a flat.

Suggest a correction

(1034)

Affordable Rental and Basic Housing

Mr Lim Sio Poh is one such happy beneficiary. Like many others, he received the Additional CPF Housing Grant (AHG) and the enhanced Special CPF Housing Grant (SHG). Mr Lim has just collected his keys and is moving to his new home soon. However, with high pent-up demand, Assoc Prof Muhammad Faishal Ibrahim noted that the queue is several thousand applicants long. To address this, we ramped up the supply last year and, this year, we will launch another 4,000 2-room flats. We will also raise the 2-room BTO flat quota for singles to 50%, starting from the next BTO exercise, which is coming up in May. This will help to provide greater assurance to singles and will reduce the backlog.

Suggest a correction

(1035)

Affordable Rental and Basic Housing

Fourth, a new beginning. From time to time, we come across families who hit a rough patch, circumstances beyond their control. One example was Mdm Hui. After divorce, Mdm Hui had the daunting task of raising two school-going daughters, even as she tried to rebuild her life. Her very first task was to secure a safe home and a stable environment for her kids. She took advantage of the ASSIST scheme – a new scheme introduced a couple of years ago, it is a scheme for divorcees with young children – and she successfully booked a 3-room flat, not on the first attempt, but on her second BTO attempt.

Suggest a correction

(1036)

Affordable Rental and Basic Housing

Today, the courageous Mdm Hui is back on her feet as the breadwinner and as a mother and her kids are doing well in school. She will move into her new home in 2017, but most likely late next year. In reply to Er Dr Lee Bee Wah's query, about 400 flats were set aside under ASSIST last year. This was more than the number of applicants. So, we have enough ASSIST flats to assist.

Suggest a correction

(1037)

Affordable Rental and Basic Housing

HDB does not track the waiting time because that would depend on the individual projects and the applicants' preferences, but the important message is that, with determination, anyone can start afresh and we will help you. I have heard Er Dr Lee Bee Wah's appeal for her resident, Mdm Ong, and I will look out for her Meet-the-People Session (MPS) letter.

Suggest a correction

(1038)

Affordable Rental and Basic Housing

Finally, from tenant to owner. So far, these stories are about families who have achieved homeownership. For some Singaporeans living in rental flats, homeownership may seem like beyond their reach. But we are keen to see them become home owners, too. Mr and Mrs Hew Kim Mee are examples of rental tenants who made the successful transition.

Suggest a correction

(1039)

Affordable Rental and Basic Housing

In 1982, they were allocated a rental flat. They have a son who grew up in the rental flat. The younger Mr Hew recently wrote in to thank the Government for looking after his

Suggest a correction

(1040)

Affordable Rental and Basic Housing

Page: 135

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(1041)

Affordable Rental and Basic Housing

parents all this time. It was a very touching, moving email that he sent to me. He also shared the good news that his parents have just moved in to their brand new 2-room flat but, this time, a flat of their own. They are new residents in Mr Liang Eng Hwa's ward. I visited them last week and I am glad that they are doing well. Their son was there, the daughter-in-law was also there. In fact, they told me they are recent proud owners of an EC in Punggol. I encouraged them to shoot for a Jubilee baby. He said, "Already March, you know." And I said, "You can do it. There is still time." Mr and Mrs Hew are HDB first-timers and they could benefit from the significant housing grants to make the transition from rental to homeownership.

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(1042)

Affordable Rental and Basic Housing

However, there are other rental tenants who have exhausted their housing privileges and no longer qualify for grants. Many wish they can turn back the clock, undo some of their bad decisions and be able to provide a better home for their kids. Mr Zainal Sapari offered some suggestions. The question is how can we help such families without creating a moral hazard? Can we formulate a scheme which requires the family to make serious commitment towards their children, for example, and, in return, we provide a small flat with a shorter lease? Minister of State Dr Maliki has been hand-holding such families in his ward and has helped some graduate into homeowners. It requires intensive counselling and nudging. The test is how to ensure that they do not end up losing the third flat and returning to apply for another public rental flat again? This requires careful thinking through.

Suggest a correction

(1043)

Affordable Rental and Basic Housing

Mdm Chair, as we help Singaporeans move on to homeownership, let us remember the intrinsic value in life that comes with our home. We have formed our most cherished memories and our deepest bonds both within and beyond the walls of our HDB flats. Our HDB heartland defines the pulse of mainstream Singapore and reflects the shared daily life experiences of Singaporeans in all our diversity. We build flats, but it is never just about the hardware. It has always been about building the Singapore community, the larger Singapore family that the Prime Minister spoke about in his New Year Message. Let us rededicate ourselves to our values and social objectives, such as supporting family ties, building an inclusive community, fostering the "kampong spirit" and making Singapore home for all.

Suggest a correction

(1044)

Affordable Rental and Basic Housing

We have achieved a lot, but we must not take our current success for granted. The future may not be plain sailing because the demographic challenges confronting us are severe. Last month, on 21 February, the Wall Street Journal carried a troubling article – "The global flight from the family" – running away from family, global flight from the family. It observed the continuing decline in marriage and drop in birth rates, not only in the West, but also in the East. It is a global flight from the family.

Suggest a correction

(1045)

Affordable Rental and Basic Housing

The article warned of the dire consequences of this global trend. It named many countries where marriage is being postponed or, increasingly, forgone; where networks of extended kin are withering due to extreme sub-replacement fertility; and where

Suggest a correction

(1046)

Affordable Rental and Basic Housing

Page: 136

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(1047)

Affordable Rental and Basic Housing

childlessness is on the rise. Singapore is, unfortunately, not spared from the troubling list of countries listed by the author.

Suggest a correction

(1048)

Affordable Rental and Basic Housing

He noted that the global flight from family will have "unforgiving implications for the vulnerable old". It went on to note the irony and to say that just when more care and support for seniors will be required, "family structures and family members will be less capable, and perhaps also less willing, to provide that care and support than ever before". The author expected the people to look to their government to fill the gap, but he warned "as the past century of social policy has demonstrated, government is a highly imperfect substitute for family – and a very expensive one". Highly imperfect, highly expensive.

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(1049)

Affordable Rental and Basic Housing

While the message is solemn, we should not despair. Instead, we should resolve to re-dedicate ourselves to the basic values of family ties and community spirit. As we adapt our policies to the new challenges, Singaporeans can find security and comfort in the constancy of my Ministry's commitment to not only provide good homes, but to enable homeownership for our citizens. We will continue to work with all Singaporeans to build their dream homes for their families and to weave strongly-knitted communities in our neighbourhoods and towns.

Suggest a correction

(1050)

Affordable Rental and Basic Housing

Madam, the Prime Minister mentioned during the National Day Rally last year that a Municipal Services Office (MSO) will be set up to get different Government agencies to work even more closely together in the area of municipal service delivery. Could the Minister tell us what role does MSO intend to play and what does MSO hope to achieve?

Suggest a correction

(1051)

Affordable Rental and Basic Housing

Madam, in public areas in my constituency, when dried leaves from trees fall on the grass, it is the responsibility of NParks to remove the fallen leaves. However, if the wind blows the leaves onto the road, then the responsibility is transferred to LTA. If the LTA sweeper decides to sweep the leaves into the drain, the responsibility is transferred to PUB.

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(1052)

Affordable Rental and Basic Housing

Would MSO be able to co-ordinate between the different agencies and handle demarcation issues in order to improve productivity and efficiency? What are some of the improvements planned in other areas?

Suggest a correction

(1053)

Affordable Rental and Basic Housing

Madam, I understand that MSO will be working with several agencies. However, does it include agencies, such as URA, SLA and the Town Councils? URA is the agency that usually approves development plans. However, the consequences resulting from these developments eventually have to be addressed by other agencies. For example, LTA has to handle traffic congestion and parking problems and NEA has to address noise pollution

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(1054)

Affordable Rental and Basic Housing

Page: 137

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(1055)

Affordable Rental and Basic Housing

resulting from these developments. Town Councils also manage many municipal issues in the HDB estates and MSO may want to consider including Town Councils in its plans to improve overall municipal service delivery in Singapore.

Suggest a correction

(1056)

Affordable Rental and Basic Housing

Finally, members of the public who want to provide feedback on municipal issues may not be fully aware of which agency has jurisdiction over which issue. Could the Minister tell us how does MSO intend to manage feedback from the public on municipal issues?

Suggest a correction

(1057)

Affordable Rental and Basic Housing

The office for MSO can add even more value than its current role at both the national and local levels. I would like to ask what is the vision of the MSO in terms of its role, beyond the channelling of estate management feedback to the respective agencies and coordinating them where required?

Suggest a correction

(1058)

Affordable Rental and Basic Housing

[Deputy Speaker (Mr Charles Chong) in the Chair]

Suggest a correction

(1059)

Affordable Rental and Basic Housing

Two, how does the MSO measure and communicate its accountability to those who provide the feedback and the partnering agencies? Does the MSO have any service standards of its own, keep track of its partnering agencies receiving the channelled feedback; and does it monitor the satisfying closure of all feedback received?

Suggest a correction

(1060)

Affordable Rental and Basic Housing

Can the MSO go beyond being a receptacle for citizen feedback and proactively reach out to the ground, seek out the top touch-points of frustration and pain in each town and facilitate the resolution of common inter-agency ground pains? If yes, how does it intend to do so?

Suggest a correction

(1061)

Affordable Rental and Basic Housing

Sir, the MSO initiative was very well-received when it was announced by Prime Minister Lee at the National Day Rally, highlighting the underlying frustrations of many in dealing with problems that cut across very arbitrary administrative boundaries, as you pointed out, Sir, involving different agencies.

Suggest a correction

(1062)

Affordable Rental and Basic Housing

How effective has it been at its mission and intent to coordinate across these agencies? Are there further areas where cross-agency and cross-Town Council coordination would be beneficial both at the municipal and national level?

Suggest a correction

(1063)

Affordable Rental and Basic Housing

Mr Chairman, I would like to ask the Ministry about the progress of the MSO launched on 1 October last year. It has been tasked to coordinate the work of eight Government agencies. I would like to know how the MSO achieves this objective. How does

Suggest a correction

(1064)

Affordable Rental and Basic Housing

Page: 138

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(1065)

Affordable Rental and Basic Housing

it avoid duplicating the existing feedback mechanism or becoming a message forwarding box?

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(1066)

Affordable Rental and Basic Housing

These eight agencies are AVA, PUB, LTA, NEA, NParks, Singapore Police Force (SPF), People's Association (PA) and HDB.

Suggest a correction

(1067)

Affordable Rental and Basic Housing

I would like to ask why is MSO partnering these particular agencies and will MSO consider partnering other agencies as well? If so, what are these agencies and how will this effort benefit the residents?

Suggest a correction

(1068)

Affordable Rental and Basic Housing

Sir, MSO has recently launched a mobile app called OneService in January 2015 to make it easier and more convenient for residents to submit their feedback on municipal issues.

Suggest a correction

(1069)

Affordable Rental and Basic Housing

I have met a few people who have downloaded the app. Can the Minister share with the House what are the benefits of using this app? What does it mean to the public? How has the public response been so far? How does it help the MSO in delivering its services? How has service to the public improved? Will MSO be looking to further enhance the app to make it better and more useful for residents?

Suggest a correction

(1070)

Affordable Rental and Basic Housing

Sir, it is not uncommon in some public places to see the grass turfs from adjacent plots of land having different maintenance and grass-cutting schedules, resulting in non-uniformity and unsightly scenes of overgrown grass of different heights.

Suggest a correction

(1071)

Affordable Rental and Basic Housing

This was often because different plots of land are being owned by different Government agencies, such as SLA, PUB, HDB, LTA and NParks. The ownership of different land plots is transparent to the public. Instead, what the public sees is the unpleasant sight where grass turfs are properly trimmed and maintained on one plot but untidy and overgrown on the immediate next plot.

Suggest a correction

(1072)

Affordable Rental and Basic Housing

It is often difficult to ascertain who the land owner is and the public usually gets referred from one agency to another when they offer feedback. This is the case not only for grass cutting but also tree pruning as well.

Suggest a correction

(1073)

Affordable Rental and Basic Housing

Hence, I read with interest Minister Fu's recent Facebook post that the MSO will look into the option of centralising public greenery maintenance as the grass-cutting schedules

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(1074)

Affordable Rental and Basic Housing

Page: 139

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(1075)

Affordable Rental and Basic Housing

across different agencies may be different. I would like to know the progress of this development and how centralising public greenery will benefit residents at large.

Suggest a correction

(1076)

Affordable Rental and Basic Housing

Also, would this centralised greenery maintenance include areas currently managed by Town Councils? How about those land plots owned privately but immediately next to public land? Should there be some greenery maintenance coordination with the land owners?

Suggest a correction

(1077)

Affordable Rental and Basic Housing

Minister Grace Fu.

Suggest a correction

(1078)

Affordable Rental and Basic Housing

Mr Chairman, Minister Khaw told us a moving tale of five families to illustrate our Government's commitment to home ownership. Indeed, quoting a Chinese saying, “治国应以安民”: governing a nation is about housing its people. It is about providing a home, a place where you feel safe and where you belong. But there is a second part to the phrase and, that is,“得民作为根本”. It is not just about the hardware but it is also about winning the hearts of our people. The software in managing our living environment forms the basis of the Municipal Services Office (MSO).

Suggest a correction

(1079)

Affordable Rental and Basic Housing

Mr Seng Han Thong, Dr Lily Neo and Mr Baey Yam Keng, during the Budget debate, have called for better delivery of public services. We agree. Our people deserve more efficient, responsive and empathetic service.“以民为本” – putting people at the heart of our work, is what MSO aims to achieve.

Suggest a correction

(1080)

Affordable Rental and Basic Housing

We experience municipal issues daily. Take a typical day. You leave for work in the morning. It had rained earlier and water is overflowing from the drains onto the footpath. You notice that some drain gratings have been damaged, which required you to step over to avoid tripping and, while holding on to the railing, you found that it has loosened. You wonder, should I report these defects and, if so, who should I call?

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These are day-to-day issues that affect the quality of our living environment. And these are the municipal services that MSO is focusing on.

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Naturally, in a bureaucracy that is as extensive and complex as the Public Service today, responsibilities do overlap or reside with different agencies. As a result, members of the public may find themselves having to deal with multiple agencies over a single issue. It can be frustrating.

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Affordable Rental and Basic Housing

By working closely with our partner agencies, MSO aims to ensure that your municipal feedback is properly acted on. Our focus is to make systemic improvements, so that the

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Government, as a whole, can serve you better.

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MSO selected eight partner agencies as a start, but why these eight, asked Mr Gan Thiam Poh. Based on the public feedback received, we looked across the Government, analysed the nature of the issues and identified the eight agencies with the most public touch points, handling the more common municipal services. Collectively, they handle around 42,000 municipal cases every month, or more than 1,400 cases a day.

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(1087)

Affordable Rental and Basic Housing

It has been five months since MSO "opened shop". To address the questions raised by Mr Charles Chong, Dr Janil Puthucheary and Ms Denise Phua, our priority has been to improve customer service – to provide greater convenience, to improve response time and to offer better solutions to the public. Let me share these aspects with you in turn.

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Affordable Rental and Basic Housing

First, convenience for the customer. To make it easier for you to report the problem – and we do want you to report the problem because this is your neighbourhood – we launched a mobile app known as OneService earlier in January. Assoc Prof Muhammad Faishal Ibrahim had asked for an update. So far, more than 14,000 profiles have been registered and about 2,800 feedback submitted.

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Affordable Rental and Basic Housing

To be customer-centric, the app organises the categories by issues, such as trees and greenery, roads and footpaths. There is no need for you to know which agency is responsible for the problem. Say in the case of a flooded footpath, you need only to take a photo of the site, select the "roads and footpaths" category, and "submit". That is it.

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Affordable Rental and Basic Housing

Better still, you can use the geo-tagging function to let us know the exact location on a map. This way, agencies can attend to the issues quickly, which is an improvement over cases, say, received over the phone or email when imprecise information on location is sometimes conveyed.

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Using the OneService app, Mr George Lim submitted a feedback about a loosened railing near a bus stop at Hillview Avenue. Upon receiving the precise location, the system routed the case to LTA for follow-up. The railing was repaired in less than five working days. Mr Lim wrote back to thank us and I quote his comment, "The centralised office has made things easier and less stressful to know which department handles the matter".

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Affordable Rental and Basic Housing

His comment validated our shift from an agency-based approach to an issues-based one. It is not an easy move. It means breaking down silos amongst agencies, working closely with one another and arriving at a consensus on how to deal with feedback.

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Page: 141

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But the effort is worth it. We hope more customers will find the OneService app convenient. Many have given useful suggestions, such as introducing more categories. We will consider all suggestions seriously as we work towards making the app more relevant and customer-friendly. To address Ms Phua's query, the OneService mobile app is one of our pioneering efforts in proactively reaching out to the ground and is a "signature" initiative that uses technology to improve customer experience.

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Affordable Rental and Basic Housing

That said, even as we engage the mobile-savvy generation, we are mindful of customers who prefer other channels, more conventional channels of communication. The OneService app is meant to facilitate your interaction with us, but it does not mean we are replacing existing channels. Our agencies' emails and phone lines are still up and running, so you can contact the agencies that you are familiar with, if you so prefer.

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Affordable Rental and Basic Housing

Next, I will talk about delivering better response time and more holistic solutions. This is in relation to Ms Phua's query about MSO's service standards and our efforts in ensuring accountability, as well as Mr Charles Chong's query about MSO's role in resolving inter-agency issues.

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Affordable Rental and Basic Housing

MSO has introduced an integrated municipal feedback management system. This is a backend system that sits away from front-facing operations. So, it is not apparent to the public but this is a system that we have implemented that links across all partner agencies. A standard protocol was implemented to refer cases between agencies and in replying and closing cases. It allows us to track the timeliness of our responses, regardless of where the feedback was first received. Over 2,000 customer service officers across our partner agencies have been trained to use this system and operate the protocol since August last year.

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Affordable Rental and Basic Housing

Also built into the system is a protocol of case escalation. This allows MSO to act on complex cases that involve multiple decision-makers across different agencies, as well as difficult cases where responsibility may be ambiguous.

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(1099)

Affordable Rental and Basic Housing

To ensure accountability, we track such complex cases and actively facilitate their resolution. Take, for instance, a recent request from a resident to install lightings along a footpath at Toa Payoh Lorong 8. The resident was worried for pedestrians' safety when it gets dark.

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Affordable Rental and Basic Housing

This footpath runs along a canal and is a maintenance access used by PUB for drainage maintenance work. Although PUB did not build it for public use, it has agreed to support the installation of lightings in view of public safety. To implement the solution quicker, MSO got PUB to tag along NParks' lighting upgrading works at an adjacent park connector to install the required lightings so that they do not need to call a separate tender or get another

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Page: 142

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contractor. This is a good example of how MSO has played a facilitator role.

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Another example is the damaged drain gratings that I mentioned earlier. In this case, unfortunately, the resident who reported the incident did not specify the exact location of the gratings, except that they were "somewhere along Commonwealth Avenue West" and that can be quite a long stretch. He also did not leave behind his contact details and it was difficult to act on an imprecise report, as drain gratings could be maintained by LTA or PUB.

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Affordable Rental and Basic Housing

Nevertheless, to resolve this quickly, PUB and LTA jointly inspected the site to fix all damaged drain gratings. So, kudos to the agencies.

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Affordable Rental and Basic Housing

Recognising that such cases are not uncommon, MSO reviewed the work arrangements to see how best to resolve such feedback efficiently, going forward. PUB agreed that if it receives such cases, it would adopt a "just do first" approach to conduct site inspections. PUB will then proceed with the repair works, or notify the relevant agency to follow up if it does not fall under its purview.

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Both examples illustrate how MSO facilitated decision-making and process improvements among Government agencies.

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We believe that improving efficiency in the Public Service is beneficial to the public. We want to harness technology to enhance the relevance and effectiveness for service delivery. We have done this with the OneService mobile app.

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Another area for efficiency is the centralisation of public greenery maintenance. As Mr Charles Chong and Mr Liang Eng Hwa have both pointed out, greenery-related issues are currently managed by different agencies, depending on who owns the land. These could include NParks, HDB, PUB and SLA. Naturally, the different agencies end up engaging different contractors to maintain the greenery, sometimes in the same vicinity. This is not ideal and we can do better.

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Affordable Rental and Basic Housing

From June onwards, NParks will take over the role as the central agency for public greenery maintenance within Singapore, starting with grass-cutting works under SLA, PUB and HDB. This way, maintenance works can be made more efficient and maintenance protocols can be better aligned. So, next time, if you encounter issues of such nature, you need only to contact NParks and they will take care of the greenery matters for you.

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(1110)

Affordable Rental and Basic Housing

Mr Chairman, you brought up the issue about cleaning dried leaves, whether it falls into the drain or road or verge. You may like to know that the Department of Public Cleanliness (DPC) has been progressively taking over the public cleanliness function from all agencies, so

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Affordable Rental and Basic Housing

Page: 143

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NEA is the only agency that you need to call.

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Mr Liang also asked about coordinating with Town Councils and private land owners. Town Councils, which are autonomous bodies, and private developers or owners will remain responsible for the areas under their purview. NParks cannot be expected to maintain their greenery for them, which is what one resident requested NParks to do. In addition to asking NParks to trim the grass by hand so as not to damage his shrubs, he also demanded that NParks remove his tree in his own premises. It is unreasonable to expect NParks to accede to such requests and I hope members of the public will understand why the Government cannot be your personal gardener. NParks is, nevertheless, prepared to consider suggestions to improve coordination of services between public land and adjacent land owners.

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Affordable Rental and Basic Housing

So, what is next? Earlier, I mentioned the importance of having a strong network of agencies. This is also what Mr Charles Chong has enquired.

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Affordable Rental and Basic Housing

MSO will partner three more agencies on 1 April – BCA, SLA and URA. These agencies also handle municipal issues, as pointed out by Mr Chong, such as issues associated with construction activities and illegal parking. This addition will expand MSO's scope of work and will allow us to look for greater improvements.

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(1116)

Affordable Rental and Basic Housing

But not only Government agencies handle municipal services. Dr Janil Puthucheary, Mr Charles Chong and Dr Lily Neo raised an important point about coordinating with Town Councils, which manage the maintenance and cleanliness of HDB estates' common areas.

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Affordable Rental and Basic Housing

Indeed, a sizeable number of customers' feedback on municipal issues are referred between Government agencies and Town Councils.

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Affordable Rental and Basic Housing

Take, for instance, a recent feedback from a resident of Clementi West. He reported a car that could have been illegally modified and was generating excessive noise and he also mentioned that motorbikes were parking illegally in his neighbourhood. As vehicles were involved in both issues, one might think that the feedback could be easily settled by one entity, such as LTA. Unfortunately, this was not the case. The motorbikes were parked at void decks, which came under the purview of the Town Council. In the end, the Town Council agreed to take action to minimise illegal parking and LTA agreed to check on the said car.

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Affordable Rental and Basic Housing

From this example, we can see that there are merits in improving the working relationships with Town Councils to enhance overall municipal service delivery. MSO is thus working with Jurong and Holland-Bukit Panjang Town Councils on a pilot trial to fine-tune

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Page: 144

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feedback management protocols, with the view to extend the protocols to other Town Councils.

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Affordable Rental and Basic Housing

These include getting the agencies and Town Councils to: (a) acknowledge ownership of the cases referred to them; (b) provide progress update on cases; and, (c) follow the MSO guidelines in resolving cases that involve multiple entities. All of which will ensure a better handshake and proper follow-through of cases.

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Affordable Rental and Basic Housing

The trial started this month. If successful, we will invite all Town Councils to participate in the working arrangements with MSO without weakening Town Councils' autonomy and authority in service delivery and in setting their service standards.

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(1124)

Affordable Rental and Basic Housing

Improving customer service on municipal issues goes beyond apps, systems and processes. It is important for us to build "Heartware" in addition to the "Hardware" and "Software". This involves building relationships between agencies and people and amongst people, between neighbours. Building an engaged community is our ultimate aim, even as we seek improvements in customer service. We want the public to feel a sense of responsibility to their neighbours and to take an interest in their living environment.

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Affordable Rental and Basic Housing

Managing feedback and complaints is the first step in building "Heartware", but it is a vital building block and an important start to a relationship – a first of many experiences. It can be a personal and, at times, emotional experience to both parties – the party who gives the feedback and the party who receives it. That is why I am particularly thankful to the frontline and operations staff from all our partner agencies for their dedication and hard work. They have displayed great teamwork and service excellence in supporting our common goals.

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Affordable Rental and Basic Housing

MSO's raison d'detre is in improving delivery of public municipal services. We will not have major schemes, major grants nor major investments. Instead, we are committed to putting customers – members of the public, Singaporeans – at the heart of our work. Little by little, step by step, we aim to deliver better, customer-centric municipal services by making it more convenient for you to tell us what can be better, to respond to your feedback promptly and to implement more holistic solutions by working closely with you and the community. We have just taken the first step, Mr Chairman, and we would like you and the rest of Singapore to join us in our journey as we make Singapore an even more liveable and endearing home.

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Affordable Rental and Basic Housing

Sir, I declare my interest in Punggol New Town as the Member of Parliament there. Minister Khaw rightly remarked that HDB builds not just

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the hardware but it is really about building the pulse and heartbeat of Singapore and I agree with him.

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Design and process can make a difference in shaping town culture and how residents feel towards their home. Fourteen years ago, residents were unhappy with the lack of amenities in Punggol New Town, so we organised the Punggol New Town Development Taskforce to shape Punggol together. Today, Punggol has become the first eco-town in the tropics and it is now destined to become the largest satellite town in Singapore situated along the creative and innovation corridor. Residents are now proud owners of a home with unique town features and there is a high resident-engagement level through activities and events. So, I would like to take this opportunity to thank the agencies, residents and grassroots leaders for helping to steer the development of Punggol.

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Affordable Rental and Basic Housing

I would like to ask the Minister for an update on the state of development for Punggol and how we can also leverage on the eco-town concept to get people to go green. In particular, how much design thinking will be incorporated upstream to build social capital, civic consciousness and desirable social behaviour? What is the Ministry's plan to continually engage residents in the design and process of building homes?

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Affordable Rental and Basic Housing

In building up critical mass, how can MND also ensure that the laid-back charm of Punggol will not be compromised? I call for MND to decentralise town centres, make permanent concept parks and special features, especially along the Punggol Promenade and Sungei Serangoon, so people can enjoy the laid-back charm. These amenities will offer recreational choices and also prevent traffic congestion to the new town when it is built. Will MND look into these suggestions favourably and also work with MOT to prevent congestion?

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Affordable Rental and Basic Housing

Lastly, what would MND think are some factors that could have contributed to the success of Punggol New Town and what can we learn from it and replicate its success elsewhere?

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Affordable Rental and Basic Housing

Sir, over 80% of Singapore residents live in HDB housing. HDB is the landowner and landlord while Town Councils are mandated to manage and maintain the common property. Under the Memorandum of Lease signed by the HDB flat lessees, the lessee, too, has responsibilities, for example, to keep windows, doors and the interior of the flat in good and tenantable condition, not to obstruct the common areas and not to use his flat for illegal or immoral purposes, or in such manner as to cause nuisance, annoyance or disturbance to his neighbours.

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Page: 146

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There are often issues arising between flat lessees and HDB and Town Councils over who bears the responsibility of rectifying problems, for instance, if ceiling leakage is experienced within the flat. Is this due to fair wear and tear of materials within the flat, which would be the lessee's responsibility to rectify, or is the leakage experienced after certain upgrading works by HDB or is it due to wear and tear of common property? It could well be a combination of some or all of the above as well.

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Affordable Rental and Basic Housing

When problems are reported, HDB and Town Councils will put in effort to investigate and assist residents. However, residents may disagree with the stand taken by HDB or the Town Council that the problem is within the resident's own purview since, understandably, HDB and Town Councils are seen as interested parties who may otherwise have to do the work themselves.

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Affordable Rental and Basic Housing

Currently, there are no dedicated low-cost procedures for a neutral body to adjudicate such matters. To be fair to everyone, the Government could look into the setting up of a low-cost Housing Tribunal to adjudicate and also mediate in disputes between HDB, Town Councils and flat lessees. The Tribunal should have an informal procedure where the adjudicators are legally trained or are persons of technical expertise, depending on the nature of the dispute. Such a neutral Tribunal would help ensure that housing cases are resolved fairly and holistically.

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Affordable Rental and Basic Housing

Mr Chairman, many residents welcome the Home Improvement Programme (HIP) but there have been negative experiences from some. There are three that I would like to share.

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Affordable Rental and Basic Housing

Firstly, one common issue is the occurrence of ceiling leakages. Most often, it happens when the unit above has some waterproofing problems and it will be compulsory for the owner to do repair works if the tests for water leaks proved to be coming from his unit. But there have been instances whereby owners do not see the need to or do not want to spend the money to do this repair work. Such behaviour delays the repair unnecessarily and the residents staying below will suffer the inconvenience and having to deal with the leaking ceilings.

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(1141)

Affordable Rental and Basic Housing

In December last year, Minister Khaw shared in a blog post that cases of ceiling leakages in HDB flats can remain unresolved for months due to the uncooperative nature of some neighbours and that the Government is looking at amending laws to allow HDB officers to enter such flats to investigate and carry out repair works. Several of my residents also suffer a similar plight and I support this amendment. This particular amendment is more pertinent

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for those involved in the Home Improvement Programme (HIP).

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When a block of HDB flats has been identified for HIP, eligible households will be notified to do a polling to opt in or out for the upgrading works. Some flat owners may have rented out their flats and could be staying elsewhere or overseas. Such incidents delay the upgrading works or leave water leakage concerns unattended to and owners have, at times, proved hard to be located or were uncooperative.

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Affordable Rental and Basic Housing

Secondly, some residents also shared with me that there were times that they spent time waiting for the contractors to come to their house. They took time off from work to wait for the contractors to do the HIP works and realised that they only spent maybe an hour while they waited the whole day for them to come.

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Affordable Rental and Basic Housing

In this case, we hope HDB can look into more effective ways for these officers to do their work or the contractors to be more expeditious so that the entire process can be less time-consuming and less disruptive.

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Affordable Rental and Basic Housing

Finally, can HDB also look at expediting home improvement works for households with the elderly and those who are physically disabled.

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Affordable Rental and Basic Housing

Mr Ang, can you please wind up? Your time is up.

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Affordable Rental and Basic Housing

For them, mobility is an issue. I hope HDB can expedite the process for them.

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Affordable Rental and Basic Housing

HIP has evolved over the years and its scope of work has also been enhanced. It is certainly beneficial and economical for home owners to repair their ageing flats under HIP. As HIP is going to be ramped up, I urge the Ministry to look into two issues.

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Affordable Rental and Basic Housing

First, the scope of the repair work could be extended to cover some basic repairs to the internal walls inside the flats, especially the wall where the bin chute resides. It does not make sense for the HIP workers to do spalling concrete repairs to the ceiling of a flat and leave the same problem at the adjacent wall untouched. Alternatively, HDB could arrange for HIP contractors to offer such non-standard repair work at discounted prices for residents since the estate is undergoing HIP.

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(1152)

Affordable Rental and Basic Housing

Second, the replacement of the pipe sockets with an imposing and clunky rack for clothes-drying purpose needs a rethink. It is a sight to behold just looking at the new structure sticking out of each block of flats. The design of the new rack will render repainting works by gondolas difficult. It is also impossible for workers to do facade repairs standing in

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Affordable Rental and Basic Housing

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a gondola suspended more than two metres away from the wall. I am not even sure if one can deploy a gondola safely with the racks sticking so far out of the flat. I am of the opinion that HDB should relook the design of the racks before it further deploys them islandwide under HIP. Perhaps, HDB could engage our Institutes of Higher Learning to come up with an alternative design to address the concerns highlighted earlier.

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(1155)

Affordable Rental and Basic Housing

Mr Chairperson, in last year's COS debate, I raised the formation of an appeals forum under the CIPC framework where differences of opinion about an Opposition Town Council and the CCC's nomination for CIPC projects can be worked out. In the Aljunied-Hougang-Punggol East Town Council's case, correspondence with the CCC on CIPC funding started in May 2012, initiated by the Town Council.

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Affordable Rental and Basic Housing

A reply from the CCC came only six months later. After finally agreeing to meet the Town Council, the CCC invited the Town Council to submit its proposal in August 2013. The CCC replied two months later with a much shortened list of projects it supported. Some 16 months thereafter, there has been no substantive update from the CCC.

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Affordable Rental and Basic Housing

Contrast this with the $12 million of approved CIPC funding extended by MND to the previous Aljunied Town Council through the CCC in just 36 months, from FY 2009 to 2011, $4.1 million of which was withdrawn from the incoming Town Council after GE 2011.

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Affordable Rental and Basic Housing

I reiterate my call for the development of a platform under MND's auspices to address CIPC matters for the benefit of all residents in Opposition wards.

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Affordable Rental and Basic Housing

Mr Chairman, shops at neighbourhood centres provide much convenience to the residents and add vibrancy to the neighbourhood. However, many clusters of shops in HDB heartlands, especially in Jurong West, are ageing and need upgrading to bring more life to the neighbourhood. Fortunately, HDB provides co-funding for upgrading of common areas under the Revitalisation of Shops (ROS) scheme. In addition, many of the shop owners and shoppers have also benefited from the subsidies for the promotional events under the ROS.

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(1160)

Affordable Rental and Basic Housing

The upgrading programme under the ROS scheme, nonetheless, needs the consent of all the shop owners before they could take advantage of the subsidies. This is very difficult. Although some shop owners know the scheme is beneficial to them and the community, there are always some who do not cooperate. Thus, I understand that only a handful of the neighbourhood centres are able to take advantage of the upgrading scheme since its

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inception. In addition, the current level of $10,000 subsidy per shop is also losing its appeal given the inflation over the years, especially the escalation of construction costs. Hence, I have a couple of suggestions to tweak the ROS scheme to make it more attractive.

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Affordable Rental and Basic Housing

Firstly, MND could consider aligning ROS with the Neighbourhood Renewal Programme (NRP) to allow only Singaporean shop owners to vote. Similarly, it would also require to garner at least 75% of the votes to embark on the ROS. And the rest of the shop owners would then have to go along with the decision and pay the upgrading costs accordingly. I reckon that HDB might have to amend the appropriate law and regulations to facilitate such a change.

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Affordable Rental and Basic Housing

Secondly, I hope MND could consider increasing the subsidy per shop to, say, $20,000 for Singaporean shop owners and a lesser amount for others and to encourage better participation as well as keeping pace with the significant increase in construction cost since the commencement of the ROS scheme.

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Affordable Rental and Basic Housing

I hope that MND would agree that the two suggestions could possibly make the ROS scheme more attractive.

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Affordable Rental and Basic Housing

Chairman, rental is one of the biggest components of business costs. Many small businesses utilising HDB commercial properties are requesting that HDB review and reduce their rental rates. Any reduction or rebate would really help them to continue with their businesses.

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(1167)

Affordable Rental and Basic Housing

Perhaps, the Ministry can consider providing rebates to businesses which provide essential products and services to the community, such as grocery stores and food stalls in an estate with many senior citizens. These businesses may not be very profitable as volumes are small but the elderly will enjoy the convenience at their doorsteps. The savings will also be passed on to the consumers and keep their businesses viable and competitive.

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Affordable Rental and Basic Housing

Assoc Prof Dr Muhammad Faishal. Not present. Ms Lee Li Lian.

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(1169)

Affordable Rental and Basic Housing

Sir, parking has been a major headache for many drivers of heavy vehicles in Singapore. There is a total of 41,600 heavy vehicle parking lots, out of which

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Affordable Rental and Basic Housing

Page: 150

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10,400 public lots are operated by URA and HDB and 31,200 are private lots. While there are supposedly only 34,600 heavy vehicles on the register for all the lots, there is a long waiting list of 3,900 heavy vehicles for public lots as of August 2014.

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(1172)

Affordable Rental and Basic Housing

This is not too surprising since HDB charges $85 a month, URA charges $130 a month whereas the average monthly season fee for each private lot is $275 a month, more than double the fee for public lots. The monthly season fee for private lots is too expensive for most drivers of heavy vehicles who are mostly paid on a per-trip basis. The lack of monthly fixed salaries also leads to long and odd working hours for many drivers, who end up having to drive their heavy vehicles back to park near their homes.

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(1173)

Affordable Rental and Basic Housing

To earn more income, many drivers prefer to drive bigger vehicles but are unable to afford the parking charges for private lots and are stuck on the wait list for public lots. They often have to resort to parking at open air carparks or along the roadside at night. They know they may get a parking summons as a result. They have no choice but to take the risk. One such summons would cost the family approximately $100. I have residents in Punggol East who are at risk of getting summonses on a daily basis.

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(1174)

Affordable Rental and Basic Housing

One possible solution for this is for HDB and URA to take over private heavy vehicle parks and expand the number of public lots, especially those private heavy vehicle parks situated close to estates where the population has increased sharply in recent years – in the central, north and north-east regions. This will help residents who work in jobs requiring them to drive the heavy vehicles to be able to park their vehicles with peace of mind at the end of a long working day and return home quickly to enjoy time with their families. This will also reduce the number of heavy vehicles plying into residential areas, which is a potential danger to road users.

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(1175)

Affordable Rental and Basic Housing

For another group of vehicle owners, they face a different parking problem. Certain medium sized vehicles are too tall to enter the multi-storey carparks (MSCP) in our HDB estates, but there are no open-air carparks for such vehicles in many new HDB estates. In many instances, the residents feedback to me that they have no choice but to park along the side of a road. Would it be possible to look into more open-air carparks or to reserve a number of lots in open-air carparks for vehicles that are above the height limits for MSCP?

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Affordable Rental and Basic Housing

Dr Teo Ho Pin. Not present. Er Dr Lee Bee Wah.

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Affordable Rental and Basic Housing

Mr Chairman, when I entered the construction industry some 30 years ago, I was told that I had entered a sunset industry. But I was not convinced. Without construction, how can we have our world-class airport, busy seaport, comfortable

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infrastructures and our beautiful homes?

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However, for the last 30 years, I do not see much improvement in our construction industry. Perhaps, the contractors nowadays speak English instead of Hokkien. Everyone – from architect, engineers to contractors – is grumbling. Grumbling about demanding clients, low fees, too many foreign contractors and, lately, manpower issues or, rather, the lack of manpower. I was told that many contractors are going under soon. I think what needs to be done now is to seriously look at how to turn the industry around so that people are proud to be associated with this industry.

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(1181)

Affordable Rental and Basic Housing

If the Government can assure them the volume of work available, can promote "buy local products and services first", I am sure it will help to build their capability and, hence, productivity. They will be more willing to invest in advanced machineries and technologies, such as precast plants. These are huge investments. The common worry is the lack of sufficient projects to recover their investments.

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(1182)

Affordable Rental and Basic Housing

Compared to their foreign counterparts, they are clearly at the shorter end of the stick. Many foreign firms, when they tender for projects, they can bring in support and track record from their country of origin. Our guys may not be as impressive, but they deserve to be given the opportunity and not just be the sub-contractors of their foreign counterparts in our own country.

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(1183)

Affordable Rental and Basic Housing

Groom the more progressive contractors, engineers and architects; help them to build up their core capabilities and track record so that they can become as good as, if not better than, the foreign firms.

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(1184)

Affordable Rental and Basic Housing

The construction industry is an important sector in the development of Singapore. We are at a crucial stage of expansion – more houses, more hospitals, wider roads and more train tunnels. We should be looking to our local firms to create our milestones with us. This reliance on foreign firms is disconcerting when we have already come to the decision to reduce our dependency on the foreign workforce.

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(1185)

Affordable Rental and Basic Housing

Very importantly, many countries around the world are investing more heavily in infrastructure. Construction is an industry with plenty of potential overseas. If we can help our local architects, engineers and contractors to spread their wings, to have track records, the Singapore brand will soar with them.

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(1186)

Affordable Rental and Basic Housing

Mr Chairman, let me thank all the Members who have spoken.

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(1187)

Affordable Rental and Basic Housing

Page: 152

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(1188)

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In the past 50 years, HDB has implemented one of the most successful public housing programmes in the world, with over 90% proud owners of their own homes. But more than mere physical space, as Minister Khaw has reminded us, we have provided shelters for our young and old. We have helped newly-weds to form families. We have built 3Gen flats to allow for inter-generational care. In short, we have realised the goal of providing an endearing home to every family.

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(1189)

Affordable Rental and Basic Housing

As our population grows, we need to build new towns. As our demographic profile changes, we are sprucing up old towns to cater for new needs. Let me elaborate.

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(1190)

Affordable Rental and Basic Housing

Mr Chairman, MND has, in 2013, announced building three new housing areas in Tampines North, Bidadari and Punggol Northshore. May I seek your permission to display some slides on the screen?

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(1191)

Affordable Rental and Basic Housing

Yes. [Slides were shown to hon Members.]

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(1192)

Affordable Rental and Basic Housing

Giving due consideration to connectivity and eco-features, we have designed the three housing areas with distinctive community spaces and greenery, seamless pedestrian links and ample amenities.

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(1193)

Affordable Rental and Basic Housing

Tampines North, for instance, will enjoy a 7.5-hectare "Boulevard Park" as a "green shoot" that runs through the estate. It will have a 10-hectare "Quarry Park", providing green spaces and community facilities for residents. Precincts further away from the "green shoot" will enjoy their own dedicated local parks. We launched the first 1,500 units of BTO flats, Tampines GreenRidges, last year. We will launch another 1,200 units for sale this year.

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(1194)

Affordable Rental and Basic Housing

Bidadari residents will be able to enjoy its rolling landscape and rich heritage in the form of the new Alkaff Lake and Heritage Walk. Bidadari will also feature an integrated development at its centre, with a bus interchange, food centre and social communal facilities. We will launch the first 2,000 units of BTO flats in Bidadari later this year.

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(1195)

Affordable Rental and Basic Housing

Miss Penny Low will be pleased to note that the latest housing district in Punggol, Punggol Northshore, will house Punggol's first seafront public housing. It builds upon the plans for Punggol to be a smart and sustainable town, and features smart car park monitoring systems, smart lighting and a pneumatic waste conveyance system, amongst others. Flat buyers can look forward to 4,100 units to be launched this year.

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(1196)

Affordable Rental and Basic Housing

Punggol residents can also look forward to the completion of Waterway Point and Coney Island Park later this year. SAFRA Clubhouse will open next year. Coney Island Park, with its strong nature focus, will preserve the rustic charm of Punggol. Some of the planned

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(1197)

Affordable Rental and Basic Housing

Page: 153

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amenities are outside the town centre, and we will work closely with other agencies to ensure that the supporting infrastructure keeps pace.

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(1199)

Affordable Rental and Basic Housing

As Miss Low reminded this House, these new developments are opportunities not only for innovating infrastructural hardware, but also for developing better community software to build heart-ware. HDB welcomes the local community's suggestions. May I seek your permission to continue in Mandarin?

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(1200)

Affordable Rental and Basic Housing

(In Mandarin): [Please refer to Vernacular Speech.] Even as we build new towns, we have not forgotten older towns. Older towns remain very popular with existing and new residents because of their accessibility and mature amenities.

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(1201)

Affordable Rental and Basic Housing

We are rejuvenating the older towns systematically through the Remaking Our Heartland (ROH) programme. ROH is a significant, extensive, long-term programme. Since 2007, we committed to transform six estates in two batches: the first batch includes Dawson, Yishun and Punggol; and the second batch includes East Coast, Hougang and Jurong Lake.

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(1202)

Affordable Rental and Basic Housing

Projects in these six estates are at various stages of implementation. Let me share some examples.

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(1203)

Affordable Rental and Basic Housing

At Dawson, the first three of five blocks at SkyTerrace@Dawson have been completed. This new BTO development has enabled many young Singaporeans, after marriage, to buy a flat near their elderly parents in Queenstown. Better still, this is the first development that allows couples and their parents to buy a pair of flats under the Multi-Generation Living Scheme. Mr Chan Lup Hoe, for example, bought a 5-room flat, while his elderly parents bought a Studio Apartment in the same development. We are glad that SkyTerrace@Dawson will help foster closer families and stronger ties.

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(1204)

Affordable Rental and Basic Housing

Yishun has also undergone significant transformation over the past eight years. The rejuvenation of the town centre is still underway, but we have already seen many improvements. In 2008, the upgraded Northpoint Shopping Centre, with a new public library, was completed. In 2010, we opened Khoo Teck Puat Hospital. This is next to the rejuvenated Yishun Pond with a new three-storey lookout tower that we completed in 2011.

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(1205)

Affordable Rental and Basic Housing

Yishun residents are happy with the new amenities. This is Samuel Gift Stephen and his cousin, Lawrence Augustine. Samuel told us that the new Yishun Pond is much more beautiful and he was appreciative that HDB had consulted him and other residents before embarking on ROH and upgrading.

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(1206)

Affordable Rental and Basic Housing

Page: 154

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(1207)

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Indeed, the new amenities at Yishun offer something for every age group and bring fun to their lives. Amenities, such as the library, community club, Yishun Park, Northpoint Shopping Centre and the Family Bay, provide common spaces for interactions and community-building and we hope that Yishun residents will use these spaces to build strong relationships and a close-knit, kampung community.

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(1208)

Affordable Rental and Basic Housing

Today, I am happy to announce that we will transform another three towns under ROH.

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(1209)

Affordable Rental and Basic Housing

First, Toa Payoh. We plan to rejuvenate Toa Payoh Town Centre and improve the pedestrian mall and public spaces. We will redevelop the town park and improve pedestrian linkages to the Town Centre. Toa Payoh will also benefit from the new Caldecott MRT station along the new Thomson-East Coast Line and we have plans to develop more public housing and parks around Caldecott Station to provide more housing choices for those who wish to live in Toa Payoh.

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(1210)

Affordable Rental and Basic Housing

Second, Woodlands. We want to leverage the Woodlands' waterfront along the Straits to create more recreational spaces and allow the entire waterfront area to be opened for public enjoyment. We will also be developing attractive housing within Woodlands North that would be set amidst a lush green environment.

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(1211)

Affordable Rental and Basic Housing

Third, Pasir Ris. We want to transform the Town Centre into a vibrant hub by injecting new developments. We also plan to enhance various neighbourhood centres and parks and introduce more family-oriented recreational activities.

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(1212)

Affordable Rental and Basic Housing

These are preliminary plans, which we will refine and improve, with inputs from residents and local community stakeholders, in the coming months. I hope that residents of these estates will come forward to actively contribute ideas. Work with us and, together, we can build a better living environment.

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(1213)

Affordable Rental and Basic Housing

(In English): Mr Chairman, beyond the ROH programme, we are also investing in sustainable solutions for older towns. In 2012, HDB piloted the $23 million Greenprint programme in Yuhua. Under the programme, residents enjoy eco-solutions and community initiatives. Here are some Yuhua residents enjoying the community parklet, one of the Greenprint Initiatives. The pilot project is well-received. We will select and announce another precinct for HDB Greenprint to further test some of the initiatives in the coming months.

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(1214)

Affordable Rental and Basic Housing

Page: 155

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Mr Chairman, Members are well aware that HDB has carried out the $5 billion Lift Upgrading Programme (LUP) to benefit 500,000 households in the past 15 years. Last year, we further introduced the $94 million Selective Lift Replacement Programme (SLRP) to help Town Councils replace old lifts. The new lifts will be more energy-efficient, allow better wheelchair access and incorporate various safety and security features, such as vision panels and infra-red door safety sensors.

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(1216)

Affordable Rental and Basic Housing

For about 200 or so blocks that could not benefit from LUP because of technical constraints and prohibitively high cost, HDB is testing various lift solutions. Meanwhile, residents without lift access and who have medical needs can contact HDB for assistance.

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(1217)

Affordable Rental and Basic Housing

Next, let me talk about the Home Improvement Programme (HIP) which HDB introduced in 2007. This is a highly subsidised programme – the Government spends up to $25,600 per household, depending on the flat type and improvements selected. We have selected 140,000 households so far since its introduction in 2007 and it has proven so popular that we have increased the pace several times – to 28,000 households in 2012, to 35,000 households last year and to 50,000 households this year and the next.

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(1218)

Affordable Rental and Basic Housing

In 2012, we also introduced the Enhancement for Active Seniors (EASE) programme at a cost of $260 million, to support our ageing population. Over 46,000 households have opted for EASE so far.

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(1219)

Affordable Rental and Basic Housing

I thank Mr Ang Hin Kee and Mr Png Eng Huat for their feedback and we will work with our contractors to see how else we can improve the process for HIP. We are evolving the programme in response to elderly feedback, so that we can better serve their needs. Last year, just two years after introduction, we expanded EASE to offer slip-resistant treatment and grab bars for the second toilet. We also lowered the age criterion for seniors to apply for EASE.

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(1220)

Affordable Rental and Basic Housing

We have also enhanced the Neighbourhood Renewal Programme (NRP) last year. It will cover more blocks and provide additional works with an increased budget – we will now spend up to $4,700 per flat, up from the initial budget of $3,400 per flat. Another 45,000 households will benefit from NRP over these two years, bringing the total to 189,000 households by the end of 2016.

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(1221)

Affordable Rental and Basic Housing

Mr Chairman, let me now talk about HDB commercial shops. Since 2007, HDB has spent $8.4 million under the Revitalisation of Shops (ROS) programme to help participating shops spruce up their common areas, add new awnings and shop directories and organise promotional activities. One in two HDB shops islandwide has benefited so far.

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(1222)

Affordable Rental and Basic Housing

Page: 156

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(1223)

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To prepare for the next phase of ROS, I will set up a new committee to take in views and suggestions from merchant associations, retailers and grassroots organisations. I would be delighted if Mr Ang Wei Neng could also join me on the Committee.

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(1224)

Affordable Rental and Basic Housing

Mr Gan Thiam Poh asked if HDB can help these shops in other ways, such as reducing rentals or providing rebates. HDB has in place measures to stagger rental increases in a rising market. I should clarify that, currently, most shops rented directly from HDB are paying lower rentals compared to private commercial rates and we do not think that additional rebates are needed for now. HDB does not control the rental of shops that are freely transacted in the market.

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(1225)

Affordable Rental and Basic Housing

As we reflect on our housing achievements in the last five decades, in the midst of celebrating SG50, I think it is also important for us to think how we can better preserve the "kampung spirit" in our HDB neighbourhoods.

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(1226)

Affordable Rental and Basic Housing

This is why, besides building physical spaces, we always encourage community coming together to connect and discuss issues close to their hearts. HDB's Cool Ideas for Better HDB Living and the Community Improvement Projects Committee (CIPC) are two good examples. They allow residents to take initiatives and ownership of their environment.

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(1227)

Affordable Rental and Basic Housing

Mr Pritam Singh asked if a platform could be established for opposition Town Councils and CCCs to discuss CIPC matters. Well, on CIPC projects, the mechanism for coordination already exists. We have observed that, all along, CCCs and Town Councils have worked very well together. CCCs and Town Councils have come together to propose projects for the CIP Committee's approval. So, I encourage the AHPETC to work closely with the CCCs to effect more CIPC projects on the ground.

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(1228)

Affordable Rental and Basic Housing

On the suggestion by Ms Lim for a tribunal, I think the rule is very clear. Whatever is inside the HDB flat is the lessee's responsibility. Sometimes, there may be disputes. But after the HDB's explanation, HDB lessees usually understand their responsibilities in terms of maintaining the interior of their flats. In cases where there are financial difficulties, HDB has a goodwill repair programme for spalling concrete. That is where HDB can step in to get the affected units to repair the ceiling or the floors, as the case may be, for mutual good.

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(1229)

Affordable Rental and Basic Housing

Mr Chairman, let me turn to the subject of heavy vehicle parking. Members would know that by LTA regulation, all new heavy vehicle registrations are permitted only if the owners show proof of having valid heavy vehicle parking lots. So, that is a pre-condition. While there are more than sufficient heavy vehicle parking lots islandwide, the reality is that drivers of heavy vehicles would like to drive their trucks home and park close to their homes.

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(1230)

Affordable Rental and Basic Housing

Page: 157

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While we understand their preferences, we also need to consider the concerns of other residents who worry about heavy vehicular traffic and the resulting safety problems in residential areas. Besides, there are also practical difficulties of creating such spaces in highly built-up estates. But in certain areas near industry zones, where we can identify temporary vacant plots of land for interim use, we will consider working with the local community on the feasibility of building them up as short-term heavy vehicle parking.

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(1232)

Affordable Rental and Basic Housing

Members will be pleased to note that we are also exploring new ways to alleviate the high demand. For instance, URA and JTC have begun to require some industrial developments to provide integrated heavy vehicle parks. Finally, I must also emphasise that business owners themselves must find parking solutions for their commercial fleets and they have to make transport arrangements for the drivers between the designated parking lots and the drivers' homes. I hope this addresses Ms Lee Li Lian's concerns.

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(1233)

Affordable Rental and Basic Housing

Mr Chairman, let me continue on the subject of productivity for the construction industry. I thank Er Dr Lee Bee Wah for her passionate comments about improving the productivity for the industry.

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(1234)

Affordable Rental and Basic Housing

At $36 billion, the construction industry accounts for 5% of our GDP. It comprises about 12,500 firms and employs 320,000 workers. However, 5% of the large firms contribute half of the total Value-Add (VA) of the industry. The remaining are many small and medium firms. So, there is a great disparity in productivity between the large and small firms.

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(1235)

Affordable Rental and Basic Housing

The construction industry is characterised by the practice of "multi-layer sub-contracting". Externally, building contractors also have to interface with developers, prefabricators, architectural and engineering firms. The many interfaces often add to the complexity of project design and implementation. To raise the industry's productivity, we need to address these inefficiencies.

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(1236)

Affordable Rental and Basic Housing

We conceived the first Construction Productivity Roadmap in 2010. The roadmap adopts a "3M framework" – Manpower, Machines and Methods to raise productivity.

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(1237)

Affordable Rental and Basic Housing

The first "M" is on Manpower. Construction is a manpower-intensive industry but it need not remain so. International best practices elsewhere show that when workers are skilled or multi-skilled, construction projects typically require fewer workers and the resulting quality is also higher.

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(1238)

Affordable Rental and Basic Housing

To create a conducive environment for skill upgrading, MOM has progressively tightened MYE or man-year entitlement allocated to projects. MOM has also raised foreign worker levies. As a result, we see more firms willing to invest in technology and workforce

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(1239)

Affordable Rental and Basic Housing

Page: 158

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development.

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(1241)

Affordable Rental and Basic Housing

To enhance the skill levels of our workforce, BCA is helping to expand the industry's training capacity. Between 2010 and 2014, BCA has set aside funding to help the industry to upgrade more than 74,000 in-service personnel from 6,000 firms.

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(1242)

Affordable Rental and Basic Housing

The second "M" is about Machine or mechanisation. Between 2010 and 2014, about 880 firms received funding from the Mechanisation Credit scheme. The use of the right tools in mechanisation, automation and Information Technology has helped firms to raise workers' productivity. In addition, some 135 of these firms also received the Investment Allowance, a tax credit, for purchasing productive machineries.

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(1243)

Affordable Rental and Basic Housing

The third "M" is about Method of construction. In this area, we are helping the industry to acquire the latest knowhow for adoption in our own environment.

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(1244)

Affordable Rental and Basic Housing

As the public sector is a large procurer of construction services, it is well-positioned to encourage the industry to acquire new and advanced construction capabilities, by specifying productivity requirements in their tenders.

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(1245)

Affordable Rental and Basic Housing

Consider, for instance, MOH is piloting the use of Prefabricated, Prefinished Volumetric Construction (PPVC) for a nursing home in Woodlands Crescent; NTU is considering the use of Cross Laminated Timber (CLT) for its indoor sports hall; while MOE has specified the use of pre-fabricated modules and a Design-and-Build approach for industry to propose the most suitable technology for a small office block.

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(1246)

Affordable Rental and Basic Housing

Also consider, for example, the use of an innovative hybrid structural system to build Yishun Community Hospital. The use of steel structures and top-down construction method in this project has shortened the project duration by three months. The entire process is also cleaner and quieter.

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(1247)

Affordable Rental and Basic Housing

To support companies through their productivity journeys, we launched the $250 million Construction Productivity and Capability Fund (CPCF) in 2010. In 2014, we topped up the fund to $335 million to quicken the pace of restructuring.

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(1248)

Affordable Rental and Basic Housing

The industry's response has been positive. As at January 2015, almost 6,000 firms have tapped on the CPCF; 85% of the 6,000 are small and medium-size firms. In addition, more than 5,000 firms have tapped on the Productivity Innovation Credit (PIC) scheme. We are encouraged by the fact that smaller firms are taking steps to embrace technology and invest

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(1249)

Affordable Rental and Basic Housing

Page: 159

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in workforce upgrading.

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(1251)

Affordable Rental and Basic Housing

In the Committee of Supply debate, a number of Members have spoken of the need for industry-specific productivity indicators. Indeed, site productivity has been improving at 1.4% per annum since 2010. This is encouraging but we can certainly do more.

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(1252)

Affordable Rental and Basic Housing

In our second roadmap, beyond the 3M framework I spoke about earlier, we have added two important thrusts.

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(1253)

Affordable Rental and Basic Housing

The first thrust is the adoption of Design for Manufacturing and Assembly (DFMA). Simply put, DFMA requires the industry to manufacture as many building parts as possible in a factory. Prefabricated parts are then assembled on site. To embrace DFMA well, our firms need new capabilities in design, engineering and manufacturing.

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(1254)

Affordable Rental and Basic Housing

To reduce the inefficiency associated with multi-layer subcontracting, we will look for ways to integrate and improve communications amongst all parties in the value chain. BCA introduced Building Information Modelling (BIM) in 2012. Since then, more than 80% of the larger consultancy firms and 60% of the larger contractors have adopted BIM. The adoption of BIM has standardised the digital communications amongst all parties in the value chain. BCA will push BIM usage to all players ultimately.

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(1255)

Affordable Rental and Basic Housing

To encourage concurrent engineering, the public sector will push on with Early Contractor Involvement or ECI. This approach enables the project owner and his consultants and contractor to undertake the project as an integrated team, resolving many construction details at the early stage which can save months from the overall project schedule.

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(1256)

Affordable Rental and Basic Housing

The second thrust is to develop deep capabilities in the industry that Er Dr Lee Bee Wah talked about. It is important that our progressive firms benchmark themselves against the international best practices. We will find ways to help them move up the value chain by acquiring R&D, engineering and design capabilities.

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(1257)

Affordable Rental and Basic Housing

Our progressive firms must develop new expertise in in-house cross-functional teams comprising architects, engineers and project management professionals. They should have a larger proportion of skilled workers, professionals and a stable workforce.

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(1258)

Affordable Rental and Basic Housing

To support these initiatives that I have just mapped out, we will set aside another $450 million for the Construction Productivity and Capability Fund under the second roadmap for the next three years.

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(1259)

Affordable Rental and Basic Housing

Page: 160

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(1260)

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Sir, many open car parks have large trees scattered around the perimeter to provide shade. While some trees have a sizeable spread offering good shades, others produce sap and fruits that are not suitable for use in our car parks.

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(1261)

Affordable Rental and Basic Housing

In some car parks in Hougang, there are mature trees that produce small, round, hardy fruits which pose serious safety concerns for residents. Some days, such fruits can be scattered over a wide area on the steps and walkways leading to the car park. These fruits can cause tiny dents on parked vehicles as well as discomfort if they were to land on the people standing in the car park. More importantly, someone can slip on one of these hardy fruits and sustain serious injuries as a result. The real danger comes at night as the areas around such trees are dim due to the spread of the trees. Some small fruits can be hard to spot at night, especially for the elderly.

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(1262)

Affordable Rental and Basic Housing

In the design or upgrading of open car parks, I urge HDB to work closely with NParks to plant trees that do not pose such safety concerns for residents living in the area. Although regular maintenance can mitigate the safety concerns of such car parks, there is only so much a cleaner can do. As we are an ageing society, everything we design or implement must be elderly-friendly to begin with.

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(1263)

Affordable Rental and Basic Housing

Mr Muhamad Faisal Abdul Manap, you have two cuts, three and a half minutes.

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(1264)

Affordable Rental and Basic Housing

Sir, car park B45, the car park which serves both Block 537 and Block 539 and the neighbourhood centre at Block 538 Bedok North Street 3, is presently insufficient in meeting the traffic demands of the residents and patrons in the high-density location, especially during the peak hours in the mornings and the early afternoons.

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(1265)

Affordable Rental and Basic Housing

I have been receiving regular feedback from the residents, stall-holders at the nearby market and food centre and business owners on the traffic issues at the afore-mentioned location. The shortage of parking space has directly affected local businesses and many patrons to the neighbourhood centre have received fines for illegally parking their vehicles. I have been informed that this issue has been a long-standing one and was highlighted several times on different occasions to the previous Members of Parliament of the Kaki Bukit division. The problem continues to persist today with no improvement works in sight.

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(1266)

Affordable Rental and Basic Housing

Page: 161

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I have written to the HDB Bedok Branch office on three occasions – twice in the middle of 2013 and the third time towards the end of 2014 – suggesting the construction of a multi-storey car park to replace the existing heavy vehicle car park, car park B46. The multi-storey car park can come in the form of heavy vehicle parking facilities at the ground floor, and normal parking lots above the ground floor, akin to the multi-storey car park located at Block 848A, Yishun Street 81.

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(1268)

Affordable Rental and Basic Housing

This, I hope, would be a win-win situation for the HDB in the administration of the site as well as for the residents, stall-holders and patrons of the market and food centre. Additional car park lots will also alleviate the parking space issue of residents staying in Block 544 to 547 Bedok North Street 3 cluster.

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(1269)

Affordable Rental and Basic Housing

My second cut, Sir. In a response to my Parliamentary Question in January 2015, MND mentioned that a passenger van above 1,800 kg in unladen weight would not be allowed to park at the residential car park administered by HDB. The Minister also added that HDB exercises flexibility and has allowed some drivers to use the residential car park, if the said van above 1,800 kg in unladen weight can fit within a standard car lot and does not cause obstruction or endanger other users of the car park. In doing so, there may be a lack of consistency in administering season parking policies for passenger vans.

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(1270)

Affordable Rental and Basic Housing

I understand that there are other types of Class 3 vehicles, apart from passenger vans, that exceed the unladen weight of 1,800 kg but continue to utilise residential car parks without any form of restriction or prohibition. I am of the view that as long as the passenger van could fit within the standard car lot regardless of its unladen weight, it should be allowed to park at residential car parks. This is the first issue.

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(1271)

Affordable Rental and Basic Housing

The second related issue is this: passenger vans with unladen weight above 1,800 kg that have been granted permission to park at HDB residential car parks are required to pay a fee equivalent to that imposed on a vehicle parked at a heavy-vehicle car park. I would like to suggest that HDB work towards adopting standardised measures in dealing with the afore-mentioned issues.

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(1272)

Affordable Rental and Basic Housing

Firstly, to allow all Class 3 passenger vans to park at any HDB residential car park as long as it could fit within the standard car lot. Secondly, to apply the parking rates in accordance with the car park ascribed to the vehicle. These two changes, if made, will go a long way in streamlining administrative procedures and lightening the cost for self-employed Singaporeans with vans at their disposal for the purpose of their livelihood.

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(1273)

Affordable Rental and Basic Housing

Page: 162

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Affordable Rental and Basic Housing

Mr Pritam Singh, you have one-and-a-half minutes for your two cuts.

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(1275)

Affordable Rental and Basic Housing

Sir, the first cut is on carpark upgrading information. The basis of the cut is to request for greater synergy and co-planning with HDB about its plans to upgrade existing car parks under the Aljunied-Hougang-Punggol East Town Council. While I appreciate the assistance provided by HDB Branch staff and Town Council officers, more information can be shared to allow the Town Council to better plan the extent of repair works to better determine the timing of works and to coincide the works with other R&R works so as to minimise disruption to the residents.

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(1276)

Affordable Rental and Basic Housing

For example, in the reply to a query about the cyclical repair schedule for HDB car parks at Kaki Bukit, Eunos and Bedok Reservoir wards, HDB replied that most have been upgraded, with the remaining car parks scheduled to be upgraded progressively from 2017 to 2021. However, the Town Council would benefit from information, such as which car parks would be upgraded, rather than a blanket answer which does not assist the Town Council in its planning purposes and planning for future expenditure.

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(1277)

Affordable Rental and Basic Housing

Sir, in view of the previously announced plans to increase the stock of rental flats, I would like to ask the Ministry what has been the result of the ramping up of rental housing options. Has there been a reduction in waiting time? If not, what is the source of the bottleneck and does the Ministry intend to build more rental housing?

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(1278)

Affordable Rental and Basic Housing

Secondly, in order to encourage more rental tenants to move to purchase their own apartments, would the Ministry consider loosening restrictions of the Tenant Priority Scheme to make it easier for rental households to purchase their own flats, particularly by extending the scheme to second-timers and by increasing the quota allocation from 10% currently which is shared with other applicants who apply under the resettlement, relocation and the Selective En-bloc Redevelopment Scheme?

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(1279)

Affordable Rental and Basic Housing

Finally, would the Ministry consider allowing single mothers to apply for rental housing as a means of reducing their burden and difficulties, especially for single mothers with little or no family support?

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(1280)

Affordable Rental and Basic Housing

Sir, in October last year, MND announced that they would slow down the supply of BTO flats by 25% this year. I would like to appeal to MND to

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(1281)

Affordable Rental and Basic Housing

Page: 163

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(1282)

Affordable Rental and Basic Housing

consider diverting some of the resources to build more rental flats. I have received feedback that there are still many Singaporeans who cannot afford to buy a flat and, for some reason, are not eligible to rent a flat from HDB.

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(1283)

Affordable Rental and Basic Housing

Some of these Singaporeans would be elderly singles who, due to their age and behaviour, just cannot get along with another person in the same flat. Others would be Singaporeans who had married foreign spouses but cannot rent a flat due to the foreign nationality of their spouse. Then, there are also divorcees who have to sell the flat after the divorce and then cannot get a flat because they do not have custody of the children. In such cases, I urge HDB to allow singles to rent a flat by themselves on a case-by-case situation.

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(1284)

Affordable Rental and Basic Housing

HDB prides itself as an agency that provides Singaporeans with quality homes and living environments. I believe that we can show some compassion for these people and allow them the flexibility to rent a flat by themselves without having to share the flat with another person. This would be a sign of a caring and compassionate society.

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(1285)

Affordable Rental and Basic Housing

Chairman, home ownership has always been a goal that we hope to achieve for all Singaporeans. A home is an anchor point that encourages a sense of belonging and community involvement. It is an insurance policy and assurance in old age.

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(1286)

Affordable Rental and Basic Housing

As a Government that encourages homeownership, we cannot absolve ourselves of the responsibility of acceding to the deep desire among Singaporeans to own a property. In the current climate, the most common feedback is the high cost of public housing. Clearly, those who aspire to buy their flats, even new flats and after the subsidies that HDB offers, are concerned that they will be saddled with a large mortgage. A large chunk of their income would go towards paying for their flats and this is not an unreasonable concern.

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(1287)

Affordable Rental and Basic Housing

I would like to argue that the Government should continue to find ways to make HDB flats even more affordable. We must seriously consider pricing HDB flats differently and seek to make it transparent so that more and more Singaporeans would understand how these costs are derived.

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(1288)

Affordable Rental and Basic Housing

Another issue is, I would like to know whether there are still Singaporeans who are living in the interim housing schemes. If there are, I would encourage MND to quickly find homes for these Singaporeans.

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(1289)

Affordable Rental and Basic Housing

Page: 164

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(1290)

Affordable Rental and Basic Housing

And in conclusion, I would like to ask the Minister what are the further plans for us to assist low-income families to own affordable flats? Based on the feedback that I got at the Meet-the-People Sessions, I think we need to relook again at our rental flats policy to ensure that we continue to assist low-income families to have a roof over their heads.

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(1291)

Affordable Rental and Basic Housing

Page: 165

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(1292)

Committee of Supply Reporting Progress

Sir, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?

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(1293)

Committee of Supply Reporting Progress

I give my consent.

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(1294)

Committee of Supply Reporting Progress

[(proc text) Resolved, that progress be reported now and leave be asked to sit again tomorrow. – [Mr Khaw Boon Wan] (proc text)]

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(1295)

Committee of Supply Reporting Progress

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

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(1296)

Committee of Supply Reporting Progress

Mr Deputy Speaker, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2015/2016, and ask leave to sit again tomorrow.

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(1297)

Committee of Supply Reporting Progress

So be it.

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(1298)

Committee of Supply Reporting Progress

Page: 166

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(1299)

Adjournment

[(proc text) Resolved, "That Parliament do now adjourn." – [Mr Khaw Boon Wan]. (proc text)]

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(1300)

Adjournment

Adjourned accordingly at 7.15 pm.

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(1302)

Withdrawal of Incidence-occurrence Medical Indemnity Plans by UK-based Medical Protection Society

1 Mr Sitoh Yih Pin asked the Minister for Health in view of the withdrawal of incidence-occurrence medical indemnity plans by the UK-based Medical Protection Society (MPS) resulting in obstetricians and gynaecologists (OGs) being unable to secure adequate professional indemnity insurance, what are the measures that the Ministry is considering to address this situation of professional indemnity plans for OGs.

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(1303)

Withdrawal of Incidence-occurrence Medical Indemnity Plans by UK-based Medical Protection Society

The Medical Protection Society announced its intention to change the medical indemnity cover for obstetricians and gynaecologists from occurrence-based to claims-based cover. Occurrence-based cover would cover the practitioner for incidents that occurred during the period that they paid membership or premiums, regardless of when the claim for the incident is made. In claims-based cover, a practitioner is only covered for claims made during the period of cover paid for. Compared to occurrence-based cover, the membership fees for obstetricians are expected to be lower under claims-based coverage.

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(1304)

Withdrawal of Incidence-occurrence Medical Indemnity Plans by UK-based Medical Protection Society

A practitioner will need to purchase tail cover if he wishes to remain protected for any claims made after the period of cover has ended. MPS has indicated that tail cover (run-off cover), which is available in five-year blocks, enables it to price coverage more accurately.

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(1305)

Withdrawal of Incidence-occurrence Medical Indemnity Plans by UK-based Medical Protection Society

MOH is looking into this matter and is in discussion with the stakeholders representing the obstetricians and gynaecologists to address their concerns.

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(1306)

Withdrawal of Incidence-occurrence Medical Indemnity Plans by UK-based Medical Protection Society

Page: 168

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Common questions

What is Hansard, Tuesday, 10 March 2015?
Hansard, Tuesday, 10 March 2015 is Singapore HANSARD, cited as HANSARD 13 2015, currently marked in force and first recorded in 2015.
Is Hansard, Tuesday, 10 March 2015 still in force?
Yes — Hansard, Tuesday, 10 March 2015 is currently in force.
When did Hansard, Tuesday, 10 March 2015 take effect?
Hansard, Tuesday, 10 March 2015 was first recorded in 2015.
Where can I read the official version of Hansard, Tuesday, 10 March 2015?
The official text of Hansard, Tuesday, 10 March 2015 is published at sprs.parl.gov.sg.