(In English ):  Sir, as a matter of fact, single-parent families are not specifically targeted by social assistance policies in Singapore. Even during the best of times, single parents face many difficulties – financially, socially and emotionally.  So in the face of the global financial turmoil, the issues they faced would be much tougher and more complex.

    When faced with financial challenges, these families have to compete with other vulnerable groups for means-tested social assistance. Even then, many assistance programmes have eligibility conditions that disqualify such families. In many aspects of public and discourse, single-parent families are viewed as undesirable alternative household  entities to be frowned upon and thus excluded from some social services that are available to "normal" two-parent families.  For example, public housing applicants in Singapore must be a proper "family nucleus", comprised of a married couple, in order to be eligible for a Government-subsidised apartment. This excludes unmarried single-parent families by default and has significantly disadvantaged such families in their attempts to apply for affordable subsidised public housing. Another example is the pro-natal Baby Bonus, a Government cash grant for newborns of married couples, for subsequent use towards childcare purposes.  Disadvantages are also found in tax policies. For instance, tax relief granted to married parents to employ domestic maids is unavailable to single-parent households.  Thus, instead of being helped, single-parent families are often discriminated or disadvantaged by our pro-family policies.

    Indeed, hardship cases involving single-parent families are not uncommon during our MPS.  Many MPs would have seen such cases in their constituencies and can offer no long-term solution to their problems.  If the Government fails to assist single parents, there would be potentially dire social consequences that would affect the opportunities for their children.  In order to help, or rather, not make life more difficult for this vulnerable group, social assistance programmes should be non-discriminatory to benefit both single-parent and two-parent families in Singapore.

    Mr Speaker, Singapore is going through very challenging times ahead.  The elderly, physically handicapped and the single-parent families have not been spared from the pains of the current economic crisis. As companies scale down on their hiring plans, disabled and elderly workers often find themselves on the losing end.  The Government has and will always look after its citizens in good times and in bad.  However, more could be done to alleviate the hardships faced by the vulnerable groups in the society.

    Let me end by quoting Hubert H Humphrey, ex-US President:

    "The moral test of government is how it treats

     - those who are in the dawn of life, the children;

     - those who are in the twilight of life, the aged; and

     - those in the shadows of life, the sick, the needy and the handicapped."

    And also allow me to add on to this evocative quote.  Not forgetting:

     - those in the abyss of life, the mentally ill; and

     - those in the mirage of life, the single-parents.

    On that note, I support the Budget.

by drawing on past reserves in this fashion now, and whether there are clear criteria as to when Government should be allowed to draw on the past reserves.  Mr Low Thia Khiang and Mdm Halimah Yacob asked why we had sought the President's agreement to use the past reserves now, rather than exhaust our savings accumulated in the current term.  Several Members – Mr Heng Chee How, Mr Low Thia Khiang and Mr Lim Biow Chuan – also asked for clarifications on the process by which the President's approval was sought to draw on past reserves, and the reasons why the President, in consultation with the CPA, agreed to the Government's proposal.  Let me address each of these questions.

Tapping on our strategic asset

     Many MPs appreciated that the current global crisis and its impact on Singapore is precisely the type of situation that our past reserves had been accumulated for.  This is the sort of thing that we have anticipated many years ago.  As then-Finance Minister Dr Richard Hu explained in Parliament in September 2001, "the reserves would be available for use if there should be a major economic dislocation in the world affecting us.  The size of that is not something we can predetermine but it is a bulwark  which we can fall back on.  I can assure the Member that it is not the intention to lock up our reserves permanently but it should be used with discretion and care". 

     The Prime Minister also addressed this possibility in 2006 in the Debate on the President's Address, saying: "The reserves are something which we have built up for a rainy day because we are highly dependent on imports.  We have no natural resources.  That is all we have and we have to husband them carefully and use them only when we really need to".  So this is our philosophy on reserves – accumulate in good times, manage and safeguard them well, for use only in extraordinary circumstances.

     A key question is why the Government sought the President's agreement to use the past reserves now, rather than wait till we have exhausted the savings that we have accumulated in the current term.  As I stated in the Budget Speech, the Government does have sufficient accumulated savings within the current term to fund the FY2008 and FY2009 deficits without drawing on past reserves.  But there are two reasons why we are doing so now.

     First, signalling our intention to draw on past reserves reinforces confidence in Singapore's ability to deal with this crisis resolutely.  Investors and citizens alike will know that we will use all resources at our disposal to weather this crisis, and emerge stronger.  Markets too, including the currency markets, would know that unlike other countries, Singapore will do what it takes to address the crisis without borrowing. 

     Second, doing so now frees us to make a bold and forceful response to the crisis now, commensurate with the magnitude of the crisis.  We can only implement these bold and forceful measures if we know we have the full resources available now for a decisive response – not just for this Budget, but to carry and sustain our fight beyond this Budget and this year if the crisis deepens and persists.  Without the confidence of adequate resources, we would have had to reconsider our schemes, in particular, the Jobs Credit and the Special Risk-Sharing Initiative (SRI).  It would have meant curtailing the scope and scale of our initiatives, and undermining their effectiveness.  So without the confidence of adequate resources, we would have had to rethink the scope and scale of the measures we are putting in place in our Resilience Package.  It would in fact be unwise for the Government to undertake the bold measures that we have set out in this Budget if we did not know we had the certainty of tapping on past reserves.  Moving on a Big Bang measure now and leaving nothing to use subsequently, would be irresponsible.  This is why it is the right move for the Government to tap on past reserves now, rather than use up all available savings first. 

     This does not mean that the Government intends to exhaust its current savings.  We will still proceed prudently and only spend what the situation justifies.  If we are lucky and the situation improves, we will naturally save our resources for another rainy day.  But if things get worse, the Government now has at our disposal the resources to tackle the problems with all the vigour that is necessary.

     As Prof. Koo Tsai Kee, Mr Arthur Fong, Dr Loo Choon Yong and Dr Fatimah Lateef have said, this crisis also shows why we were right in building up our reserves carefully, not tapping into it as many have urged in past years, and not run deficits in good years when we could afford it.  Our reserves now will allow us to deal with this unquestionably severe crisis from a position of strength. 

     This draw on past reserves does set a precedent.  It is therefore important that we are clear about the basis for the draw, which inevitably sets a benchmark for the principles that should apply in future. 

     The current circumstances and the measures for which we are drawing on past reserves are setting a high threshold for any future situation where such a draw is contemplated.  It minimises the opportunity for future governments to call for unjustified use of the past reserves. 

     What should be the considerations for a draw on past reserves?  Senior Minister Goh, speaking last Sunday, said he was in favour of putting up three "No" signs for drawing on past reserves.  To summarise: first, no draw to support social assistance programmes.  Second, no draw to fund permanent programmes, no matter how meritorious.  Third, no draw except under dire circumstances that require one-off extraordinary measures to ward off catastrophe or prevent irreparable damage to the economy.

     Senior Minister's three "Nos" have been implicit in the Government's thinking on how we should conscribe the use of past reserves.  When we sought the President's in-principle approval for the draw on past reserves for the current purposes, we set out similar considerations. 

     First, a government should only draw on past reserves in very exceptional situations, for example, when external events or crises pose a threat to Singapore's economy or society.  The current severe global economic crisis is a clear example of this. 

     Second, the measures to be funded out of past reserves should be of a temporary nature and not built into continuing government programmes.  The Jobs Credit and the Special Risk-Sharing Initiative for bank lending are distinguished from regular budgetary interventions during a typical downturn, such as tax rebates or increased social spending. 

     So those were the two considerations that we set out when we sought the President's in-principle approval for the draw on past reserves.  We should not, however, prescribe strict quantitative rules or specific indicators of distress on when a draw on past reserves can be justified.  It is not possible to define quantitative rules that meet all circumstances.  For example, should the criteria be that the Government is incurring a deficit of at least 6% of GDP?  That criterion can be met because a Government is profligate and can overspend to achieve the criteria.  Similarly, there may be situations where a dire circumstance requires a targeted and justifiable intervention of a magnitude not as large as 6%.  It is also not possible to anticipate the nature of the crisis that can hit us in the future, whether due to natural disaster, a health pandemic, major security threats or war.  So we should avoid trying to define very specific quantitative rules or very specific indicators of distress to justify a future draw on past reserves. 

     NTU Prof. Tan Khee Giap advocated the same view in the Straits Times on 3rd February.  As he put it, "... specifying particular indicators of economic distress before the reserves can be tapped ... would put the Elected President on auto-pilot".  He went on to say, "As future exceptional events are highly unpredictable, we must instead rely on citizens to vote in responsible governments to exercise sound judgement on how best to accumulate, manage and deploy our hard-earned reserves".  That is indeed the basis of our two-key system.  Its strength rests on the credibility of the Government and of the Elected President and his advisers on the Council of Presidential Advisers (CPA).  The most effective safeguard for our reserves is in a system of robust checks and balances, by having the right people in charge, and the President exercising independent judgement on the Government's proposals with the advice of the CPA.

Not depleting our past reserves

     I have set out the reasons for drawing on past reserves, and why it is better to do so now, rather than to wait until we exhaust current savings.  I have also set out the threshold and conditions that should be set for any future draw on past reserves, and to ensure that it is not detrimental to the long-term objective of preserving and enhancing the real value of our reserves. 

     Ms Irene Ng and Dr Ong Seh Hong asked how long it would take for us to restore the $4.9 billion in our past reserves.  Dr Lim Wee Kiak was also concerned about whether we had ample reserves left.  Let me put the $4.9 billion in perspective.  For FY2008, the year that is ending soon, the Net Investment Income Contribution to the Budget is estimated to be $3.7 billion.  This is based on the actual interest and dividends that were earned on our investments.  This $3.7 billion was no more than 50% of the total investment income for FY2008.

     The $4.9 billion that we are drawing from past reserves is a significant sum, but it will not be large compared to the amount of annual investment income that we can earn.  It is also smaller than the total return, including capital gains/losses, that we can expect to make each year on average over the long term.  As Members know, the Net Investment Returns Contribution for FY2009, based on long term, expected total returns, is $7.7 billion.

     We are not killing the goose that lays the golden eggs.  Our reserves are substantial, with assets far in excess of our liabilities.  The reserves are well-diversified.  The Government is confident that the prudent management of our reserves – with investments aimed at the long term – will continue to grow our reserves and yield us a steady stream of Net Investment Returns Contribution over time.  We will continue to exercise fiscal prudence and accumulate our reserves in good times.

Robust process for obtaining President's approval

     Let me now come to the issues of process which Dr Amy Khor, Mr Lim Biow Chuan, Mr Low Thia Khiang and others had asked – the process by which we obtained the President’s approval for the draw on past reserves.  Did the President have the full opportunity to properly evaluate the proposal, or was it a fait accompli?  We are glad that Mr Low Thia Khiang is concerned about the two-key system working well in protecting our reserves.  I presume this means that he now accepts the need for the Elected President as the second key.

     The Government followed full due process in obtaining the agreement of the President and the CPA on its proposal.  The Government finalised the shape of its Budget, in particular, the proposed Jobs Credit and Special Risk-Sharing Initiative (SRI), within the two weeks before Budget Day.  Members would have to recognise that this year's Budget was brought forward by a month, resulting in a significantly compressed timeline for working out our measures.

     The fact that the economic environment was also shifting in the weeks before the Budget meant that we had to refine the shape and size of our key proposals up until those final two weeks.  The proposal to draw on past reserves to fund the Jobs Credit Scheme and the Special Risk-Sharing Initiative (SRI) had first to be agreed by the Cabinet, before it could be formally put to the President.  The Cabinet did so the week before the Budget.  But before the Cabinet decided, the Prime Minister met the President informally to share with him the Government's thinking, to sound him out and to give him more time to think over the matter.  After the Cabinet's decision, in the week before the Budget, MTI and MOF followed up with briefings to the President and the CPA.

     First, MTI and MAS briefed them in detail on the global economic and financial situation, and the implications for Singapore.  MOF then briefed the President and CPA comprehensively on the two proposed measures the Government intended to undertake as part of its response to the crisis and the reasons for the proposed draw to fund them.  We addressed the President and CPA's questions and clarifications on all relevant matters.  We also briefed the President and the CPA on the possible scenarios that might require our accumulated savings or past reserves in the next few years, and the contingency measures that might be necessary.  One of the issues addressed was the justification for drawing on past reserves now, before exhausting the savings of the present government.

     Following the briefings, once we had finalised the costs for the two schemes, once we had finalised the numbers, we sent a formal request to the President.  The President and the CPA were able to form their views in advance of this final submission because they had been thoroughly briefed.  The President, in consultation with the CPA, accepted the Government's explanation that the crisis we are facing is of an exceptional nature, and the measures, being extraordinary and temporary in nature, can be justifiably funded from past reserves, and the President gave his in-principle approval to the Government's proposal.

     Once Parliament approves the Supply Bill, we will seek the President's formal approval for the draw.  Upon the President's approval for the draw, his decision will be gazetted, as required under the Constitution.  I can assure Members that the President and the CPA were given full information to enable them to deliberate and make a decision, and in good time given the exigencies of the situation at hand.

     We cannot rule out the possibility of another exceptional situation in our lifetimes that might require the Government of the day to draw on reserves to preserve Singapore's interests. In that scenario, the onus will once again be on the Government to justify its case to the President and the CPA, to seek Parliament's approval of the Supply Bill that contains the measures it is undertaking, and to explain to the public its reasons for doing so.

     The draw on past reserves today sets an important benchmark.  The crisis we face today is extraordinary, and the decisive but temporary measures we are undertaking in the Budget should rightly be funded out of past reserves.  By doing this now, we are instilling confidence in Singapore's ability to see through the crisis and emerge stronger.

     Let me now address three other important issues which have come up in the debate; first, getting credit to flow to businesses; second, schemes to help the unemployed; and, third, whether we should have cut the GST.

Getting credit to flow

     First, on credit.  Several Members – Dr Loo Choon Yong, Mr Seah Kian Peng, Mr Teo Ser Luck and Mdm Cynthia Phua – asked whether the Special Risk-Sharing Initiative (SRI) would succeed in getting banks to start lending.  Others such as Mr Inderjit Singh, Mr Sin Boon Ann, Mr Ang Mong Seng and Mr Edwin Khew suggested that Government do more to spur bank lending to our companies or implement alternative strategies such as setting up a new lending institution.

     First, I have to emphasise that there is no strategy that is going to prevent a decline in the overall volume of credit in the course of the recession.  The de-leveraging that is taking place in the major economies is severe and likely to continue for some time despite the efforts of their governments.  This will affect the credit markets globally and have continuing impact on banking systems in every country.  Companies themselves are, in many cases, trying to control or reduce their debts in the recession. Overall, the demand for credit goes down in every recession.

     However, our situation is much less dire in Singapore than in the major economies.  The structural reasons why banks are unable to lend in other countries do not apply in Singapore.  Our banks have strong balance sheets that have not been weakened by bad assets, and are well-capitalised.  Their credit ratings are high.

Risk-sharing approach is likely to work

     There is therefore every reason to expect that the Government's initiatives to take over a substantial proportion of the risk of bank lending will help sustain the flow of credit to our companies.  It will not reverse the overall trend of a decline in credit, but it can make a real difference for a significant group of companies.

     The SRI as well as the other schemes being implemented by the Government to help companies to obtain credit were, in fact, formulated in close consultation with the banks.  The move to raise the Government's share of risk from 50% to 80% through the SRI was what the banks felt would allow them to keep lending.

     The banks felt the SRI will be especially important for the significant group of companies that are essentially viable and have business models that can allow them to succeed in the years to come but who face great uncertainty in their short-term revenues.  A very significant group of companies, so-called grey area, mid-sized companies, some larger ones, some SMEs, who are good companies, viable companies for the long term, but who face short-term financial problems or uncertainty in their short-term financials.

     The SRI will help because Government is going to take the bulk of the risk.  Because Government is taking 80% of the risk, the interest rate margins that banks will earn under the scheme will, in most cases, fully compensate for the risks faced by the banks themselves.

    The top market players who account for more than 60% of the market have provided positive feedback on the scheme structure.  Banks are already responding positively to the enhancements which were made last November, and we expect this to continue to pick up.  The amount of loans that have been approved under all the financing schemes administered by SPRING went up significantly in January – more than 50% higher than the average of the previous two months.  With the SRI, there is a good chance that this lending will be sustained, including to the mid-sized segment of the market.  But this does not mean that we will leave the banks and customers entirely on their own to work things out.

     The Government is engaged with both the banks and businesses.  SPRING is closely monitoring the flow of loan applications, and is active in referring businesses to the Participating Financial Institutions.  The Singapore Business Federation (SBF) and the five Enterprise Development Centres run by our other business groupings are also closely engaged with companies to help them with their loan applications. They have hired experienced ex-bankers to help out on this.

     We can study alternative approaches for the future, including some of those suggested by Members.  But let us focus on getting the SRI, which is just being introduced, to work. It is the fastest way in which we can get things moving on the ground, and has a good chance of succeeding despite the difficult climate.  The Government and the Enterprise Development Centres (EDCs) are beefing up their resources and will work closely with the companies.  The Government will continue to have regular exchanges with the banks and monitor the progress of their lending under the schemes.

Schemes to help the unemployed

     Let me turn now to unemployment benefits.  Some Members have suggested putting in place a new system of unemployment benefits.  Mr Sin Boon Ann and Mr Siew Kum Hong proposed a permanent system of unemployment insurance.  Ms Sylvia Lim proposed a temporary "Job Seeker Allowance".  The scheme would be means-tested and provide benefits equal to half the last drawn salary, subject to a cap of $500.  The substance of the benefits that Ms Sylvia Lim has in mind in her scheme are, in fact, already being provided for Singaporeans who lose their jobs.  In fact, they often obtain far more assistance than what she proposes.  However, there is a fundamental difference between her proposal and what the Government is doing, which I will explain later.  So the substance of the benefits that she wants to give the unemployed worker is already been given to them, sometimes far more. But there is a fundamental difference in approach.  As Minister Lim Swee Say would probably put it, it is same-same but different.

     What is the Government's approach to helping the unemployed?  Our basic approach has four limbs.

     First, we spare no effort to match you with available jobs.  Second, if you need new skills, we will help you get it.  We will heavily subsidise the cost of your training, and you can also get a training allowance under SPUR.  Third, we provide you with short-term means-tested assistance through the Work Support Scheme, administered by the CDCs.  Fourth, if you face difficulties meeting your HDB payments, HDB will help you restructure your loan, or to downgrade to a smaller flat.

     This four-pronged approach is over and on top of the significant assistance that we are providing to all families this year, and especially to the lower and middle income.  These are the things that the Government would do to help you directly.  But it is not just the Government that has a role to play, as several MPs have pointed out.  The family, community groups and VWOs (Voluntary Welfare Organisations) all play key roles as part of the larger network of support for those in need.  This is why the Government has topped up its grants for the community to help it to do so.

Matching people to jobs

     Let me go through each of the four-prongs of the Government's approach.  First, matching people to jobs.  Minister Lim Swee Say, Mdm Halimah Yacob and others have highlighted the fact that many jobs are still available in the economy, including new jobs that are being created. There will be at least 45,000 new jobs available over the next two years.  This is only counting the new jobs that we already know of.

     Minister Lim Swee Say has explained the efforts that are being taken to help match every individual to the jobs that are available, and to put each individual through the training he or she needs, everything from preparing you for an interview to helping you onto the retraining courses to pick up new skills.  e2i is doing this.  So are the CDCs, as Mayor Zainudin Nordin spoke about yesterday, and the career centres run by the self-help groups.

     Second prong – Support for Training.  This is a key component of our approach to helping the unemployed.  I would not go through the details of SPUR again, but just to highlight:  Apart from the heavy subsidies for the training courses, low-skilled unemployed workers can also get a training allowance to support their skills training.  For longer programmes such as the PCP (Professionals Conversion Programme) which helps retrenched PMETs, the allowance can go up to $1,000 a month. 

     Third prong – Work Support Scheme.  The Work Support Scheme provides assistance to job-seekers on a means-tested basis.  There are already 2,400 people today on Work Support administered by the CDCs.  They will receive a comprehensive range of assistance, from cash grants to medical, educational and household assistance such as the utilities bills.  We are, in fact, enhancing the Work Support Scheme in Budget 2009.  Minister Vivian Balakrishnan will elaborate on this during MCYS' COS debate.

     Fourth prong – HDB Loan Restructuring.  Mr Hri Kumar, Ms Eunice Olsen, Mdm Ho Geok Choo and Mr Yeo Guat Kwang have asked for the Government to provide help to those who need help on their HDB loans.  HDB will address the problems faced by the unemployed on their housing loans.  Where there is a genuine need, HDB will temporarily reduce or defer monthly payments for up to six months.  But it is important that we help households move to a sustainable solution.  Some may be able to sublet a room.  For those who are unemployed for a longer period, many will need to downgrade to a smaller, more affordable flat.  HDB will help by providing an additional loan to facilitate their downgrading.  Mr Mah Bow Tan and MND will be providing more details on the assistance measures during its COS.

     When you add up the assistance we are providing through these various prongs – the four prongs – it is significant.  But the approach is to provide assistance on a discretionary basis.  At each step, an assessment has to be made as to whether every effort is being put in by the unemployed person to get a job and attend training where needed. 

     This is the fundamental difference between what the Government is already doing, and what Ms Sylvia Lim has proposed – which will provide automatically $500 of assistance to anyone who say he is looking for a job.  As Senior Parliamentary Secretary Mr Hawazi Daipi just mentioned this afternoon, automatic financial assistance in this form will be unwise.  Our discretionary approach of helping the unemployed is the best way of ensuring that those who are unfortunate to lose their jobs do not stay out of a job for long.  As Mr Zainudin Nordin, speaking as Mayor, said yesterday, "It's about having the right attitude and having the skills that employers want."  As he pointed out, unfortunately, every CDC gets a large number of unemployed people who want financial assistance but reject perfectly good job offers.

     So, for any individual who is willing to adapt, be flexible, and do what it takes to get a new job, we will help him.  As Ms Irene Ng said, if you need help, you will get it.  We will provide you with financial assistance and we will help you get new skills so that you can get a job.

     I want to give two examples to illustrate the benefits.  First example is Ms Winnie Gong, a PMET, a professional, in fact a senior professional, who lost her job in January this year.  She was working in the semi-conductor industry for the last 16 years, went up to the position of Senior Engineer.  She lives with her elderly mother and her younger brother in a 5-room flat – upper middle-income family.  She recently decided to take up a PCP programme to make a career shift to the pharmaceutical industry.  Under SPUR, Ms Winnie Gong pays $600 out of the $6,000 course fees, which means the Government subsidises the balance of $5,400. For her course, she receives $2,000 in training allowance.  That is cash.  This is on top of the household benefits of $2,600 that she and her family – this is a family of three – will receive as part of the Resilience Package this year.  The total benefits therefore amount to $4,600 in direct benefits (including the training allowance), and another $5,400 in course fee subsidy from the Government.  So that is the first example of a professional who is using the opportunity we are providing to retrain and make a move in her career.  It is a very significant amount of assistance. 

     A second example is Mr Tay, a rank-and-file worker.  He was the sole breadwinner in a family of five until he lost his job last year.  He sought help from the CDC, and was assisted under the Work Support Scheme.  From September to November last year, he received under the Work Support Scheme $510 a month in cash and utilities vouchers for three months, making a total of $1,530.  After three months of assistance, he found work again as a cleaner.  And in his new job as a cleaner, he is entitled to a Workfare Income Supplement (WIS) payout of $2,200 for the year.  He is a person with a strong will and attitude, he wanted to find a new job. But if he had not found the job, he would have received assistance for training, to ensure that he did find a job.  I have therefore not included training allowances in this example.  His youngest child is now being given childcare subsidies of $200 a month under the CFAC scheme which comes up to $2,400 a year.  This year, his family will also receive household benefits, including our GST Credits, worth $2,100.  So the total benefits from the Government amount to $8,230.  A case of someone who went to the CDC and is put on the Work Support Scheme, received assistance, found a new job, therefore did not require a training allowance – $8,230.

     Our approach of discretionary assistance is working.  It is better than the alternative proposed by Mr Siew Kum Hong and Mr Sin Boon Ann of a system of unemployment insurance.  We must be careful not to move towards a system of automatic broad-based unemployment benefits.  The weight of evidence clearly shows that such schemes ultimately lead to a rise in the number of unemployed and also to the unemployed staying out of a job for longer.  That is the weight of evidence from a whole range of countries.  The reason why this is the case is that an automatic system of unemployment benefits, which is an entitlement, reduces the incentive to find a job.  An OECD study in fact found that a 10% increase in unemployment benefits leads to a 7% reduction in the number of unemployed persons who return to work. 

     We should therefore continue with our approach, and keep on improving it.  We provide real support where it is needed, help individuals and families to get back on their feet, and help us stay as a society with self-reliance at its core.

GST cut: Not a solution

     Let me move on now to the issue of GST and why a cut in the GST is not a solution for us in this crisis.  Mr Inderjit Singh, Ms Eunice Olsen, Mr Michael Palmer and Ms Sylvia Lim proposed that we cut the GST temporarily to 5%.  Mr Inderjit Singh saw this mainly as a way to reduce costs for businesses, but also as a way to boost consumer demand.  The other three Members also wanted the cut in GST to stimulate demand. 

     The Government considered a GST cut amongst all the options that we were looking at to address this crisis.  We decided against it, not as a matter of philosophy, but because it would not have had the desired impact on demand and the economy; and also because the GST cut would have left the lower and middle-income groups worse off compared to the alternative strategies that we are taking in this Budget.  It would not have had the impact on demand that is hoped for and it would have left the lower and middle-income groups worse off compared to the alternative strategies we have taken in this Budget. 

     There are three reasons for this:  First, a GST cut from 7% to 5% will not help business costs to any significant degree.  While the GST cut will mean that businesses pay less GST on their inputs, it will not in fact change their margins:  The GST that businesses pay on their inputs is claimed back from the Government.  At the end of the day, the impact of the GST has always been an impact that is faced by the consumer.  It is finally prices that adjust.  But business margins are unchanged.  However, what businesses would face is the cost of changing the systems for a new GST rate on all their goods and services now, and again when the GST cut is restored.  This is why in the UK, which is an example which Mr Inderjit Singh and Ms Eunice Olsen cited, many businesses have been concerned about the 2.5% cut in VAT that the government has introduced till the end of this year.  Retailers have estimated that they will have to spend £300 million to cover the expenses involved in making the price changes.  So that is the first reason.  It will not help business costs to any significant degree.

     Secondly, the GST cut will not lead to any significant increase in spending.  In the UK, the hoped-for impact on consumer spending arising from the VAT cut during the Christmas and New Year period did not materialise.  In fact, they timed it in advance of Christmas and New Year, made a big announcement in the hope that it will spur consumer spending.  It did not happen.  All the major retailers have commented that it did not make and will not make a difference to their sales.  An IMF study also commented, looking at the UK example, that it was "questionable whether decreases in the VAT of a few percentage points are salient enough to lead consumers to shift the timing of their purchases".

     Our own experience in Singapore when we raised the GST is similar.  There was no reduction in consumption when we increased the GST from 5% to 7% in 2007 and accompanied it with a package of offsets for all households, with more for those in the lower and middle-income groups.  Consumption grew by 5% in 2007, no different from the growth in employment income.  Both Mr Inderjit Singh and Ms Sylvia Lim also made reference to Dr Basant Kapur's argument in the Straits Times.  His main argument was that by reducing prices by 2%, the real value of people's bank balances or any nominal wealth accounts such as bank balances, would increase because prices have come down by 2%.  The real value of the bank balances goes up by 2%.  So people feel wealthier and they would want to spend more.  It is what the economic theorists call a real balance effect.

There is, unfortunately, little evidence of this effect having been observed internationally.  It has not happened in the UK and Singapore, as I have just explained.  It also did not happen during another major recent episode which is Japan's period of deflation in the 1990s.  Japan faced declining prices.  So, in theory, people must have felt that the real value of their bank balances and of all nominal balances would have gone up, but they did not spend more.  Many economists question whether consumers would at all be concerned about the real value of their bank balances at a time of recession, when their real concerns are over the possibility of losing their jobs or earning lower incomes.

     The third reason why we did not pursue the strategy is that the 7% GST is a valuable source of revenue that allows us to fund additional social supports in this crisis.  Today, we already use the revenues from GST to help pay for programmes for the lower income groups, especially the Workfare Income Supplement Scheme.  What we are doing instead in the crisis, is to give additional GST Credits to everyone, which they get immediately.  Lower and middle income households receive more in GST Credits than what they would have saved from a 2% GST cut.  Our approach, therefore, provides money quickly in the hands of households and gives more to those who need it the most. 

     Overall, households will get back much more in all the benefits we are giving this year than what they would have saved if we were to cut GST by 2%.  The chart shows this.  It is arranged by percentiles of incomes – the highest income groups are on the right hand side of the chart and the lowest income groups are on the left. 

     If Members look especially at the lower income group, the chart shows how much benefits they get, compared to what they would have obtained in savings if we had cut the GST by 2%.  So if we look at the chart, households in the second decile, from the 11th to the 20th percentile, will receive total benefits amounting to 18% of household income this year.  If we were to cut GST by 2%, these households would save about 2% of household income.  That is the difference. 

     This approach in distributing the GST credits is also more likely to lead to increased spending because more GST credits are given to the lower and middle income groups, who have a higher propensity to consume.  The 2% of GST contributes $1.8 billion to our revenues.  We are putting it back into the system, and back to where it will help most. 

     The Business Times on 2nd February quoted Mr Terry Connor.  He is the CEO of Courts and President of the British Chamber of Commerce, and Courts, as Members know, is a major retailer.  They quoted him on the Government's approach of keeping the GST at 7% and instead providing GST Credits and other benefits to households.  I quote him, "This is a well thought-out response to the call to lower GST as it has the same or greater impact, while keeping on track the longer term goal of competitive corporate and personal taxation and re-distribution to the most needy."

Resilience Package provides a significant boost to demand

    Some Members were concerned about whether enough is being done in this Budget for the demand side of the economy.  This is a Budget with a basic deficit amounting to 6% of GDP.  It provides a significant boost to all segments of the economy.  Our main approach has been to help the economy through the supply side – by helping businesses so that they can help preserve jobs.  What this does is to support both business demand – the demand that businesses create from each other, one supplier to another – as well as to support consumer confidence, which is the confidence that workers get because their jobs and incomes are more secured.  So that is our main approach. 

     Secondly, as Ms Indranee Rajah has pointed out, our Government spending programmes and the  additional investments that we are making in the range of sectors, especially on infrastructure, also add to demand.  Together, these approaches, helping the businesses and Government spending, will get the most bang-for-the-buck for the money we are spending.  In other words, the injection of Government money this way will have a larger multiplier for the economy, compared to direct efforts to boost consumer spending.  It is the best way to sustain confidence in a crisis, amongst both businesses and consumers. 

Budget Book estimates for political appointments 

     Before I conclude, let me quickly clarify the issue, which Mr Low Thia Khiang had raised, on the difference between the salary adjustments for political appointees, as announced by Minister Teo Chee Hean and the Budget Book estimates for FY 2009.  Let me assure Members that the payouts for salaries of political appointees would be determined by the Government policy as announced by Minister Teo.  The estimates in the Budget Book for expenditures on political appointments within each Ministry were, unfortunately, not updated in time.  The actual expenditures will, of course, be reflected in revised budgetary estimates in the course of the year.

Resilience: Our collective approach

    Mr Speaker, Sir, the Resilience Package is not just about $20.5 billion.  It is not just about fiscal firepower, as Dr Amy Khor puts it.  It is not just about the fact that we are running a highly expansionary Budget this year.  This Package, and whether it succeeds, is ultimately about how we respond collectively to this crisis as Singaporeans.  Many MPs have made this point during the debate – Mdm Ho Geok Choo, Mr Ong Ah Heng, Ms Ellen Lee, Mr Wee Siew Kim and others.  We cannot change the global circumstances that we are faced with.  But as several MPs pointed out – Mr Heng Chee How, Dr Lily Neo, Mr Matthias Yao, Mr Arthur Fong and others – we must rely on our character, fortitude and perseverance that we have as a nation to get us through this crisis.  We cannot change global circumstances but we do have real assets, in our character, our fortitude and our will to survive and to bounce back up, that will take us through this crisis. 

     As Mr Sam Tan said yesterday, the Resilience Package is about everyone closing ranks and working together.  Everyone has a part to play.  The Government has provided substantial support to help businesses and households, and stands ready to do whatever it takes to overcome this crisis.  Businesses must play their role: 

     (i) retain jobs wherever possible, and create new ones;
    

     (ii) maximise use of SPUR and other training initiatives;
    

     (iii) banks should continue lending to all viable companies to help them see through this storm; and
    

     (iv) landlords should pass down property tax rebates, and do more where possible;

     For the community sector – our VWOs, community leaders, good-hearted volunteers from all walks of

life, and our philanthropists – the crisis is a time to do more for those in need.  The crisis will also be a test of our adaptability as individuals.  All over the world, people are going to have to make adjustments to cope with this crisis – people of all ranks.  We can do this better in Singapore by being willing to work in different jobs and learn new skills, either with the same employer or in order to secure a new job, and by being prepared to help our family members, and the poor and vulnerable in our community. 

     This collective approach, with everyone – Government, businesses, the community sector and every individual – pulling together and playing our roles, is what the Resilience Package is really about.  It is what will help Team Singapore, as Mr Seng Han Thong urged, press on against the tides in the year of the Ox.  It is what will get us out of this crisis a more resilient society and a stronger country.

     Mr Low Thia Khiang (Hougang): Sir, I want to clarify that my concern over the way the Government uses the past reserves is not an indication that I am now supporting the Elected President system.  On the contrary, the concern arises because of the way the so-called two-key system operates.  It seems that the two-key system operates simultaneously at the same time.  When the Government's key says "unlock", the other key unlocks automatically.  It seems to be like that.  I wonder whether the second key has always been there on the safe.

     Sir, the fact that the Minister for Finance has to explain in detail in this House on how the reserves are being used shows that whether there is an Elected President or not, the Government still needs to publicly justify the use of the past reserves.  I would also like to know how does the President forms his independent opinion on the justification on how the past reserves should be used,  when in fact the justification and the presentation of the facts to the President were all done by the Government and the civil servants from the Ministries.

     Sir, my next clarification is this.  The Minister for Finance has explained the rationale for using past reserves for the two initiatives of Jobs Credit and Special Risk-Sharing Initiative (SRI).  Can I take it that as long as the programmes continue, even into the next financial year, if there is a need, the Government will continue to draw on past reserves for these two initiatives?

     Sir, the Minister for Finance also quoted the Courts CEO for his support on the GST Credit, instead of reducing GST by 2%.  Is he aware that the same CEO has also been quoted as saying that the Jobs Credit Scheme is not of much use in saving jobs?  The Minister also, in his reply, said that the political appointment estimates in the Budget have not been updated.  Besides these items which have not been updated, I wonder whether all the other estimates in the Budget have been updated.

     Mr Tharman Shanmugaratnam: Sir, I thank Mr Low Thia Khiang for his questions.  His questions on the reserves are, I think, perfunctory.  They do not actually take into account what I have just presented to the House, which has explained quite systematically the process by which we obtained the President's approval for this draw on reserves.  I would, nevertheless, go through each of his questions.

     First, was this somehow a simultaneous turning of the keys – when the first key turns, the second key automatically turns.  He used the term "automatic".  No, it is not.  I have explained in detail.  I have even explained the chronology of how we went about it, but the chronology is not of the essence.  The point is that the President, advised by the CPA, makes an independent and careful judgment on the Government's case.  It is independent.  At the end of the day, our system has to rely on trust in the individuals who are appointed to their positions – the individual members of the CPA, the Chairman, Mr J Y Pillay and all the other members –  Mr Yong Pung How, Mr Lim Chee Onn – , the President and the people in Government themselves.  This is not a wayang.  This is about a Government that, in the exigencies of the circumstances, had to craft, within a short period of time, major measures that were in Singapore's interest.  We had to then approach the President and the CPA, provide full information and arguments for why we felt that it was necessary to do this now, what the alternatives were, and what could be the consequences of not acting as boldly and decisively in this crisis.  And the CPA had to make their evaluation.

     How does the President come to agree with the Government?  It is not a matter of agreeing because it is the Government's case.  It is a matter of agreeing because the President and the CPA had assessed the arguments – are they the right arguments, are they based on facts, are they based on what is in the interest of Singapore – and they come to their decision.  That is all there is to it.

     The rationale for drawing on reserves for Jobs Credit and the SRI have been set out.  I think Mr Low Thia Khiang has asked a very good question – what if we have to continue the same measures next year?  We do not yet know if we have to continue the same measures next year, and if we do, whether it will be on the same scale or be of the same scope.  If we do have to do so, I would envisage that we will have to go back to the President to make a case for a further draw.  It is too early to commit to this now, and certainly too early to say whether the President and the CPA will agree.  But this is what we envisage at present, and indeed in our briefing to the President and the CPA, we had highlighted this possibility.  This is a crisis that may be long drawn out.  We are making these moves now and we may have to make more moves in future.  The President and the CPA understood and appreciated that.  They are not approving a future draw at this point, but they understood that in approving the draw now, there was also a possibility that the Government may have to go back to the President and the CPA in a year's time to seek a further draw.  I am raising this not because we know we are going to do it or because we are committed to doing it, but this is realistically what the assessment is, and the President and the CPA understood that. 

     I have not studied everything that Mr Terry Connor has said.  It is a matter of record as to what he  actually said of the Jobs Credit.  But regardless of what he said on the Jobs Credit, it does not change his position on the GST cut and the merits of the Government's approach to the GST.  Neither does it change the fact that the vast majority of businesses, as we have heard in this House related especially by the labour MPs and unionists, feel that the Jobs Credit is going to make a difference to the pace and scale of retrenchment in what is going to be a very difficult year.  I am sure we will find individual businesses who have a different opinion, but the weight of opinion in the last two weeks has been very encouraging.  This is a scheme that will make a difference.

     The difference in cost arising from this mis-estimate of budget for political appointees is not very large.  But I would say that all the estimates in our Budget Book are exactly what they are – they are all estimates.  We got stamp duties completely wrong two years ago because no one expected the property and the stock markets to boom the way they did so suddenly.  And that was an error which was repeated by one or two MPs in this debate.  That was a large error, but there are lots of smaller errors we make each year because it is not possible to forecast precisely in advance how each item of revenues would turn out, which depends on what is happening in the economy, what is happening in the markets.  It depends on lots of factors.  So the Budget Book is our best estimates for the year in advance.  In this particular instance, it was a case of not having updated the relevant estimates in each of the Ministry's budgets, as distinct from coming out with a wrong forecast.  But there are other instances, I am sure, where we will get it wrong.  So the Supply Bill contains our best estimates for the year.  From time to time, we will be wrong on specific items, and hence the Supplementary Supply Bill.

     Ms Sylvia Lim (Non-Constituency Member): Mr Speaker, Sir, I wish to seek a clarification from the Finance Minister.  In his round-up speech, the Finance Minister has still not given the House any idea of roughly how much we still have in our current reserves that justifies the Government to ask the President for a drawdown on the past reserves.  In particular, I am wondering if he could clarify, for example, some of the major items of receipts, such as land sales revenue.  In the last two years, I think, collectively, it was about $18 billion.  And for next year, it is anticipated to be another $8 billion.  How is this not factored in?  How does this affect the calculation?

     Secondly, Sir, I would like to clarify the Finance Minister's comments on my proposal to assist the unemployed.  First of all, the proposal which I made is targeted at the unemployed person himself and it is not meant to replace schemes that would assist the family as a whole.  So it is targeted at the unemployed person who has lost his income.  Second, admittedly, my concern was more about the lower-income wage earners rather than the PMET group as such.

     My next clarification is that even though the Minister went into some detail on how the CDCs and the other agencies are helping with job placement, training, etc, does the Minister agree that in the next six months, the job situation would be quite different from what we have been experiencing previously, and the job search would presumably take much longer, and the anxieties placed on the unemployed person would correspondingly lengthen?  In that sense, our experience with the CDCs so far is that in terms of cash assistance and other help, it is actually quite small in terms of the cash amount.  And the other assistance which the Minister referred to requires appeal to multiple sources of help.  So because of these extraordinary circumstances, what I am asking for is that for the six-month period, which is supposed to be a very bleak period, could the Ministry consider giving some assurance to the unemployed person so that he can maintain his own subsistence, and also assist him in the job search, because many of them may not be able to afford to spend their time in training and not look for jobs.

     Mr Tharman Shanmugaratnam: On Ms Sylvia Lim's first question about how much accumulated savings we have, as I mentioned in the Budget, we have enough accumulated savings to meet the deficits we are incurring, which are the FY2008 and FY2009 deficits.  If we add those two together, it comes to a total deficit of $10.8 billion.  So that was the size of the bill – $10.8 billion deficit.  And I have stated that we have adequate accumulated savings to meet that $10.8 billion deficit.

     Why is this the case?  In FY2007, we made a surplus, as Members know, and the revised estimate was $7.7 billion.  In addition to that, over the last three years, FY2006-2008, we have obtained capital receipts of $3.7 billion from our statutory boards.  These are the accumulated savings of our statutory boards.  If we add $7.7 billion plus $3.7 billion, the total is $11.4 billion, enough to meet the $10.7 billion combined deficit of FY2008 and FY2009. 

     The estimates which Ms Sylvia Lim mentioned for land receipts puzzled me.  I think she might have looked at some private sector reports.  And there were some figures which I saw in one of the newspapers recently which were really quite puzzling.  We certainly do not have $18 billion of land sales receipts in current reserves.  The only thing that the Government takes into revenues for its current term are land sales less than ten years, which is a very small amount.  The bulk of our land revenues goes to past reserves, as we had, in fact, explained in the House last year.  So those numbers are not accurate.  They are not in the current reserves. 

     On the Member's second set of questions on unemployment benefits, she was concerned about what the individual himself gets under the scheme, leaving aside what the family gets.  I would say, frankly, that we take the perspective of the family as a whole.  When an unemployed person goes to the CDC to get benefits, they look at all his problems.  That is why in the case of Mr Tay that I highlighted, the youngest child was placed on CFAC – $200 a month.  He got utility vouchers as well, things for the family.  If a person goes for training, we provide him support.  It is not just for his own daily meals and so on, we also help to support the family.  So what we provide the individual takes into consideration the needs of the family, and that is a very important part of discretionary assistance.  Because if the family is able to support the unemployed family member, then their needs are less and our whole emphasis on relying on the family, including the extended family, to support each other would be undermined if we provide automatic support to an individual in that circumstance.  So there is a difference.  It is providing the same or more benefits compared to the proposal that the Nominated Member had envisaged – $500 a month.  We are providing effectively the same or more benefits but on a discretionary basis, so that we do not undermine the fundamentals of our system of providing assistance, and we do not decalcify as a society.

     Mr Speaker: Any more clarifications?  Yes, Ms Ng, last one.

     Ms Irene Ng Phek Hoong (Tampines): Sir, I appreciate that, because of the compression of time, there may be a rush in seeking in-principle approval from the President of a drawdown of the reserves.  Can I ask the Minister whether the process can be refined and improved further, so that, in future, we can make sure that the process is more transparent and the public knows that the institution of the President is one that is strong and he can exercise an independent turn of the key.  In any request for a drawdown of the reserves, we can expect it to be an emergency.  Therefore, before we ask for an in-principle approval, it must be clear what is the sum that we ask the President to approve.  Because in this case, I understand that no finalised figure was given until after the fact when the in-principle approval was given.

     Mr Tharman Shanmugaratnam: Sir, that is not the case.  In fact, quite frankly, the Prime Minister met the President informally, before Cabinet had decided, to give him a sense of the Government's thinking and the measures that we were going to take.  Even then, there was a fairly clear sense of the scale of the measures.

     When we briefed the President in detail on the measures and what the total budget would look like and, in particular, what these two measures would comprise, it came with figures.  We wanted to scrub it in detail before we submitted our final proposal.  If we are talking about whether it was $4.8 or $5.1 billion, it was $4.9 billion.  But these are things that we go through very carefully, and the final formal submission to the President came after detailed checking of each of the schemes and each of the details. And they are still estimates.  It may be more or less than $4.9 billion, but that is our best estimate.  So, to clarify, specifically, we did provide the President and the CPA with estimated costs of the two initiatives – the Jobs Credit Scheme and the Special Risk-Sharing Initiative – and put it in the context of the total package that the Government was going to have to implement to help Singapore through the crisis.

     Mr Inderjit Singh (Ang Mo Kio): Sir, what is missing is the process that the President took after he received the briefing from the Government.  If we could get a sense of what they discussed and what process they went through to decide, then that may clear many of these questions.

     Mr Tharman Shanmugaratnam: I am not sure why it is relevant.  At the end of the day, as I have emphasised, and indeed as we debated at some length in October when we passed the Constitutional amendments, this is a system that is different from Norway and Australia, where as much detail as possible is provided, including details of asset allocation decisions, and it has to be approved by Parliament.  This is not the nature of our system.  Our system relies on trust in the individuals who are in charge, including those appointed to the CPA and the Elected President.  Do we trust them?  Have they made decisions wisely?  Has the Government been acting responsibly?  That is ultimately what has been and will be the strength of our system.  And in the countries that have gone instead for systems based on transparency of figures and procedures, as distinct from trust in the individuals at hand, we have seen what has happened – a shift towards wanting to spend more reserves for less and less meritorious purposes over time.  The Prime Minister had quoted a few cases in the debate in October.  I had mentioned some others.  It is almost in the natural workings of society that this happens.  This is what we want to resist.  We have put in place a system of Constitutional checks and balances and a system where the right people, hopefully, will continue to be in place, so that the reserves are safeguarded and protected.

     Question put, and agreed to.

     Resolved,

     That Parliament approves the financial policy of the Government for the financial year 1st April, 2009 to 31st March, 2010.

     Mr Speaker: Order.  I propose to take the break now.  I suspend the Sitting and will take the Chair again at 3.30 pm.

Sitting accordingly suspended

at 3.02 pm until 3.30 pm

[Mr Speaker in the Chair]

3.45 pm

     Dr Teo Ho Pin asked for an update on the number of new citizens and permanent residents, our efforts to integrate new residents and the effectiveness of our population measures.  Mr Ang Mong Seng asked if we should be using the term "new citizens".

     In 2008, we welcomed 20,513 new Singapore citizens and 79,167 new PRs, up from 17,334 new citizens and 63,627 new PRs in 2007.  This could be due to the good economy and the broadening of the eligibility criteria in 2004.  I would like to assure Dr Teo that there has been no change in these criteria since then.  Unlike Mr Ang, I think it is all right to use the term "new citizens" for a while.  There is no specific significance to the term.  It is simply a descriptor of foreigners who have decided to make Singapore their home.  Over time, this distinction will be blurred as their children grow up and become like our children.  The important issue is not whether they are new citizens or old citizens, but whether they can successfully integrate into our society.  When they do, they become one of us.

     There will be cultural differences between native and new citizens.  Integration is a two-way process. Singaporeans need to understand and accept immigrants, while the immigrants need to make the effort to become a part of the Singapore community.

     As Dr Teo pointed out, the People's Association has more than 700 Integration and Naturalisation Champions (INCs) who reach out to new immigrants in our communities through regular house visits, and encourage them to take part in grassroots activities and community work.  I understand that the People's Association provides adequate funding support for the INCs.  Grassroots organisations can also do their part.

     Many new Singaporeans are also doing their part to integrate into Singapore.  Some take part in activities and share their integration experiences with other new Singaporeans in immigrant associations such as 天府会 (Tianfu Club), 厦门公会 (Amoy Association) and 晋江会馆 (Chin Kang Huay Kuan). Some new citizens also do their part for the local community too.  For example, Ms Umayal Lakshmanan, who came to Singapore in 1999 from India and became a new citizen in April last year, reads to children at the Hong Kah North Community Club.

     Efforts on integration initiated by community organisations are encouraging.  But there is scope for the public sector, the private sector and the people sector to work more closely together in a systematic and coordinated way.  To this end, a National Integration Council (NIC) will be set up.  The NIC will comprise key representatives from the public, private and people sectors to drive the integration agenda forward through a concerted effort.  Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports will chair the NIC and he will say more about this during his Ministry's Committee of Supply.

      The Government will continue to encourage and support Singaporeans to have more babies.  We will monitor the trends and assess the effectiveness of the enhanced marriage and parenthood package announced last August.  It is therefore too soon to review the programme, as Dr Teo suggested.  Although the current economic crisis may cause some to think carefully about having children, I hope they do not put off their decision until the good times return.  Our total fertility rate in 2008 is still low, at 1.29, unchanged from that in 2007.

     Even as we make Singapore a better place for families and help immigrants integrate into our society, we should not forget the more than 150,000 Singaporeans who are now overseas.  In this economic climate, overseas Singaporeans are anxious about how Singapore is coping and even worried about their own job security.  We will continue to engage them and keep them informed of what is happening back home through platforms such as the Singapore Day.  Our next Singapore Day will be held in London on 25th April this year.

     Mr Chairman, Sir, Singapore is facing tough times now.  But the problem will blow over one day. Our society is stable and we have the resources to help Singaporeans overcome this crisis.  I have no doubt that Singaporeans have the grit and determination to ride this out.  The key to our success is our people – a people made up of Singaporeans who are citizens by birth or by choice, of Singaporeans living here and overseas, and of Singaporeans from this generation and the future generations.  It is during challenging times that Singapore needs to continue to have a sustainable, cohesive and integrated population.  I am confident that we will be able to overcome our current problems and emerge stronger after this economic storm, especially when we face the challenges together as one united people.

Caring for the Elderly

     Mr Sin Boon Ann (Tampines): Sir, many visitors remarked that in a modern metropolis like Singapore, they often come across the rather unusual, if not disturbing, sight of old ladies and sometimes men, bent double pushing trolleys piled high with cardboard boxes.  If they are not collecting cardboard boxes, they can be found at petrol stations pumping petrol or working as cleaners in office premises or condominiums.  They are doing this to earn a relatively meagre allowance to see to their daily needs.  By most accounts and from talking to them, they are not rich, retired Singaporeans.  On the contrary, these are elderly folks probably in their 70s or 80s often living alone and having to provide for themselves. It is indeed sad to see our fellow Singaporeans in advanced age having to lead such hard lives to eke out a living.  This has prompted many of my overseas friends to ask whether we have any welfare support for senior citizens. 

     Such comments and queries often lead us to wonder whether we can do better to look after our senior citizens.  How we take care of our senior citizens is a reflection of who we are as a people and what we stand for.  The question is really whether we can do better as a country to provide for the elderly.

     The fact remains that the Government is indeed thinking long term in providing for a society that is rapidly ageing.  The formation of the Inter-Ministerial Committee on Ageing is one example of the priorities that we as a country are facing on the problem.  Until we have effectively put in place a robust comprehensive framework for taking care of the elderly in our society, we will continue to be confronted with questions of how we should manage their long-term needs.

     To be sure, many elderly want to continue working to stay active.  The question really is whether we can find jobs that are less physically demanding and perhaps meaningful for them to work in.  I would, therefore, like to ask the Prime Minister for an update on the work of the Committee in dealing with the problems of ageing in our society.

Caregivers

     Mr Chiam See Tong (Potong Pasir): Sir, I would like to put up a case for financial assistance for unpaid caregivers.  Providing care for persons with disability (PWD) has become a way of life for many Singaporeans.  With a fast ageing population and longer average lifespan, there will be an increase in Singaporeans trying to balance working and caregiving responsibilities.  The need to care may be related to either event such as a stroke or a gradual process such as the onset of dementia.  In either event, you may not be sure where to begin.

     Currently, many of the caregivers are employed full-time.  I believe some are also employed part-time. Employed caregivers struggle to balance their time and energy between work and caregiving.  Caregivers are often exhausted, burdened and stressed.  Employed caregivers find it necessary to turn down training opportunities or promotions.  They may take retirement or simply quit their jobs altogether providing care for their loved ones.  Lost work opportunities take a financial and emotional toll.  Caregivers not only lose current income and benefits, they also face reduced retirement income because of zero CPF contributions.  Caregivers who enjoy their job, are friends with their co-workers may also become depressed and lonely after quitting. With zero income, an extra responsibility of being a family caregiver for a PWD is added to an already costly equation.  Many people are feeling the financial burden on top of emotional and physical burdens that come with the situation at home.  Currently, there is a foreign domestic worker levy concession available to families with children aged 12 years and below and elderly aged 65 and above.  Families of PWD who need help in caregiving.  Is the Government helping to reduce the cost of living in caregiving and assist caregivers in caregiving chores?  It is not enough if you are basically giving a discount to a levy in which Government has implemented in the very first place, provided the family has means to employ a foreign domestic worker which costs about $300, $400 for a reasonably experienced FDW.  This does not –

          The Chairman:  Mr Chiam, your time is up.

     Mr Chiam See Tong: Thank you. 

A Caring and Active Community

     Ms Ellen Lee (Sembawang): Sir, can I take both cuts together?

          The Chairman:  Yes, please.

     Ms Ellen Lee: Sir, as Singaporeans live longer, many are also reportedly suffering from illnesses and undergoing treatments.

    Whilst many can take care of themselves by going for regular follow-up checks and treatments, there is still a significant group who rely on caregivers who are inevitably the unmarried children or siblings. As a result, these caregivers cannot be gainfully employed as their caregiving role is often a full-time, unpaid task. This task can last the lifetime of the person who needs care and in the process the caregiver would have also advanced in years besides having been made poorer without any savings or support for himself or herself.

     Whilst it is only right that the responsibility of caring for a family member, either a parent or sibling should be borne and shared equally amongst all the other children or siblings, this is often not the case. There is never any equality of burden when it comes to caring for an infirm relative or parent, unless there is a prospect of an inheritance. While some cases can seek relief from the Maintenance of Parents Tribunal through using the parents as the person needing maintenance, there is no equivalent of such a tribunal for siblings.

     Should we allow this group of home caregivers to fall through the cracks especially when they had performed their obligations so unselfishly? Can they not be certified as qualified caregivers and be offered some schemes that allow them to be given priority when applying for jobs in community hospitals, nursing homes or homes for the elderly sick in priority to other foreign nationals, so that their experience and skills that they had picked up looking after their own relatives could be turned into an employable skill?  These caregivers may not qualify for or participate in SPUR for various reasons.  As locals, most of them would know how to speak dialects, Tamil or Malay and would obviously be an asset over the foreign nationals as employers need not provide accommodation, pay foreign workers' levy or security bonds for them. They are also likely to be loyal employees as their lifelong dedication looking after their loved ones have shown.

Socially Responsible Individuals

     Next, on socially responsible individuals.  According to statistics, about 14% of senior citizens are aged 50 to 59 now.  This particular group possesses core values which are very different from the generations after them.  The majority are educated in Chinese Language schools with strong emphasis on moral and character development, reflecting the political and economic situation then.  They had a very colourful and stormy life history, a fate tied up with governments that were colonial, then self-governing,

then a part of the Federation of Malaysia before going alone to become independent.  It is often lamented that our current generation lack many of the innate values which this group possesses as they have greater capacity, certain desirable traits, values and mindset that could perhaps help us to reduce some of the disturbing trends or values that confront us today.  I, therefore, ask what and how our Government can engage this group of senior citizens meaningfully, so as to tap or draw on their expertise and experience in and area of our economy, community and societal use.

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     (In Mandarin): On 1st January, there was an article in Lianhe Zaobao by Mr Wu Wei Cai.  He said that senior citizens who are above 50 should take part in social work, so that they can make use of their rich experience and impart them to our younger generation. 

     (In English):  In TODAY newspaper's VOICES column yesterday, ie, on 4th February 2009, Dr Peter Yan recounted his experience and lamented that, "There's an increasing lack of respect from stressed-out, pampered youths." He said he has "a head full of grey hair", so I guess he must be a senior citizen.  I quote him, "While we need skills to excel in life as well, it is important to take notice of the seniors who have made the world what it is today.  In 2040, 60% of our population will be senior citizens.  Life has became impersonal – on seeing a neighbour, you get just a nod, at most.  Youngsters are blaming the 'elderly experienced' for allowing the economic woes to evolve and not learning from history. It is easy to point fingers.  But, rather than to shift blame, will the youth be open to intellectual discourse on issues?  Can they discuss this, while keeping in mind that a failing economy is no reason not to maintain their respect for the elderly?

     I would add to that by saying that being elderly or frail is not a reason to be discriminated by the young and able-bodied.  Singapore is what it is today because our elderly have shared the vision of our Government and worked to make Singapore survive.  Their respect is already earned and we should not be any least respectful.  Nevertheless, I wish to know if the Prime Minister's Office has any concrete plans to address these issues.

Concessions for the Elderly

     Mr Baey Yam Keng (Tanjong Pagar): Sir, a newborn baby is wrinkled, hairless, toothless and looks quite like an old man.  There are actually many similarities between a growing baby and an ageing person, except that the changes and developments go in opposite directions. 

     I am glad now that my four-year-old daughter does not need to wear diapers to bed anymore.  However, now, my 90-year-old grandmother is bedridden and wears diapers.  I just bought knee guards for my eldest daughter who has been selected to train for her school volleyball team.  On the other hand, my mother has a knee problem and is thankful for the Lift Upgrading Project.  There are childcare centres and daycare centres for the elderly.  In Singapore, many domestic helpers are engaged to look after babies and the elderly.

     It is always a joy to watch a baby learning to walk and to talk, becoming more and more independent.  However, it is a different matter seeing a person decline into old age, losing motor skills and becoming weaker.  It can be particularly heart-wrenching if the person is our parent, someone who used to care for us, who used to be the stronger one, and able to provide all answers to our questions and our needs.  It is a reversal of roles and not everyone takes to it easily.  "The Curious Case of Benjamin Button" only happens in the movies.  Society and the business world seem to favour the youth over the aged. It is always sexier to have the young as your target customers because your business can grow with them, whereas the old cannot bring your business beyond this life.

     I was pleasantly surprised to chance upon a Japanese sushi restaurant recently, which offers discounted buffet prices for both children and senior citizens.  Most restaurants only offer discounts for children.  Come to think of it, it does not make sense as old people do not eat a lot.  That is why the elderly do not like to go to buffets as they do not think it is value-for-money.  For air tickets, a child between two and 11 years old enjoy a special price.  I assume it is because they do not earn an income, but neither do the elderly who are mostly retirees.  The child takes up the same one seat as an elderly person and is served the same food.  In fact, it is cheaper to fly an elderly passenger as he does not need to be given toys and a funpack!

     Let me now move to an issue that was discussed many times in this House – concessions for public transport.  Why is the child ez-link card, which is applicable for all pre-schoolers above 0.9 metre in height and below seven years old, valid throughout the whole day but the senior citizen ez-link card is not valid before 9.00 am on weekdays?

     I believe the explanation given was so that this does not add to the already heavy passenger load during the morning rush hour.  But if you think about it, no senior citizen would want to squeeze with the working crowd to get onto the trains and buses, if they have a choice.  For those who need to do that regularly, they are likely to be still working.  Are we not asking people to continue working past retirement age, be re-employed, but be prepared to take a lower salary?  Would this concession not help to ease expenses and encourage working among the aged?

     In Mexico, all residents above 60 years old can apply for a free discount card.  They enjoy 50% off on bus travel, free or reduced admission to museums, savings on water bills, 15% off at many stores all over Mexico, a 5% to 10% discount on pharmaceuticals, 25% to 50% discount off tickets to arts festivals, and many others.  In the Philippines, the Expanded Senior Citizens Act of 2003 grants senior citizens 20% discount from all private establishments.  In turn, the discounts may be claimed by these establishments through tax deductions based on the net cost of the goods sold or services rendered to the senior citizens.  In Hong Kong, the ferry service between Hong Kong Island and Kowloon is free for senior citizens. 

     It is commendable that a number of private businesses in Singapore are already providing such concessions for senior citizens, without Government intervention.  But I would like the Prime Minister to consider legislating or encouraging concessions for senior citizens perhaps through tax benefits to the private enterprises.  The concessions should be given with no restrictions on valid hours, as this creates bipolar ends of the consumer market.  Our elderly should be encouraged to go to restaurants and cinemas with their children, grandchildren and young people, and spend time together. 

     I am happy to learn that the Singapore Sports Council gives senior citizens and their family members a group concession when using sports facilities together, but then it is only during off-peak hours.  Some may argue that such practices should be left to the businesses, as they will do it if it makes commercial sense.  However, should care and respect for the elderly be dependent on commercial sense or should it be a value of the society?  Doubling the length of maternity leave does not make commercial sense, but the Government feels that having kids is an important national issue, therefore, now we have four months of maternity leave and the Government pays for two months of it.  So where do we stand on the value of the society to care for and respect the aged?  In fact, the market share of the elderly consumers will be an expanding one, but let us not wait for commercial sense to happen.

     Just as we provide care for our children, we have to care for our elderly.  Caring for elderly parents is a child's obligation.  Caring for the elderly population is a community's obligation.

     The Minister, Prime Minister's Office (Mr Lim Boon Heng): Mr Chairman, Sir, I thank the Members for their strong support of the elderly.  And the voices that have been put forward, on behalf of the seniors, are commendable and I hope that the whole generation of younger Singaporeans will listen to them. 

     We know we are all growing old and Singapore is ageing fast.  Although, during this time, there is a tendency to put this aside because of other pressing issues, I think we should still take the opportunity to prepare ourselves for the much larger number of seniors that we are going to have.  Mr Sin Boon Ann requested for an update on the efforts that we have to prepare for ageing.  I will first cover financial security.

     In recent years, the Government has focused on helping Singaporeans to work longer and save more.  This is necessary because we are living longer.  CPF LIFE will be implemented from 2013.  The Workfare Income Supplement (WIS) scheme has also been refined to better support older lower-income workers, and for WIS, seniors get more.  Retraining and upskilling opportunities have been expanded.  Our tripartite partners have also been actively promoting re-employment, before it is legislated in 2012.  As Ms Cham said yesterday, 706 unionised companies have committed to re-employment, with about 5,400 workers above 62 years old already being re-employed in October 2008.  Some have not had their contracts renewed, so the number fell to 4,650 in December.  But, our employment rate for workers aged 55-64 years is 57% today, and we will still work towards the target of 65% by 2012.
 
     Ultimately, we should build a culture where seniors are engaged in purposeful and fulfilling work, for as long as they are able.  More Singaporeans are sharing this view.  According to a global survey by insurer, Aviva, six in 10 Singaporeans would like to work beyond the retirement age.  This is the second highest rate in the world after Hong Kong.  We must, however, accept that working longer does not equate to working in the same job, in the same organisation, at the same pay.  The seniority-based wage system, which has been with us for decades, is a barrier against continued employment.  Under this system, it might cost employers less to recruit and train a fresh employee, than to retain an older worker.  Ultimately, pay has to be based on the value of the work produced.  Thus, the terms of re-employment have to be negotiated and unions and employers are doing so.  And WIS, as I said, favours senior workers and should be taken into account.

     I agree with Mr Sin that we should help the elderly find jobs that are less physically demanding and more meaningful.  But there are practicalities and, sometimes, it is unfortunate that the only type of work that an elderly person can do is the type that he described.  Nevertheless, we should try to find meaningful work for seniors.  In the US, the concept of an "encore career" has been embraced by baby boomers there.  These new careers in the second half of life are usually in the social arena, and provide meaning, self-fulfillment and also income.  This is an area where Ms Ellen Lee has been speaking up for, on behalf of seniors, and, I think, an area where our seniors can be gainfully engaged. 

     Today's economic environment also allows for experimentation with flexible work arrangements that meet the aspirations of our seniors.  However, we should not deny seniors of work which may be more physically demanding.  If seniors want to and are able to work in these jobs, we should encourage them to.  It keeps them active and self-reliant.  I have often been cheered by the impeccable service provided by older staff at fast food counters.  Let me turn next to the community.

     Hardware-wise, we have made good progress in building an age-friendly community.  We are on track for all HDB precincts to be barrier-free by 2011, and for lifts to be at every floor by 2014.  Within five years, community clubs and RC centres will have basic barrier-free features.  To expand the range of housing options for seniors, HDB is building more studio apartments, two-room and three-room flats.  Seniors wanting to encash their housing assets have more options.  For seniors living in smaller flats, we are implementing the lease buyback scheme this year. 

     Hardware must be backed up by software, so that our community is not just a pretty, but empty shell.  Far too often, we read about seniors and their families struggling to cope with mental illnesses.  Last month, Mdm Voon, who has mild dementia and depression, went missing in Genting.  We are happy for the family that she was found in Singapore a week later.  But there have been other cases where seniors with mental illnesses die alone and unnoticed, abandoned by their families and shunned by their neighbours.

     As a society, we need to be more aware of mental illnesses among the elderly.  At times, the stigma and misperceptions are worse than the illness itself.  We must address this early, if we are to manage them well in an ageing population.  The incidence of dementia, one form of mental illness, is expected to rise sharply.

Within a decade, 45,000 seniors are projected to have dementia, double the number today.  They will make up 8% of the elderly population.

4.15 pm

     Resources have been allocated to improve public education, prevention, detection and early treatment of mental illnesses.  Late last year, the Community Psycho-Geriatric Programme commenced training of grassroots volunteers in early detection and follow-up of suspected cases.  More than 400 grassroots leaders and frontline staff from CPF Board and Town Councils will be trained this year.

     We should not just rely on grassroots leaders and community touch points.  At the end of the day, families, friends and neighbours are best placed to care and support our seniors.

     In line with this, the People's Association has made "neighbourliness" a central theme in its workplan.  It has launched a "Neighbours Connect" programme to build social networks within each RC.  We target for at least 200 RCs to implement the programme over the next five years.

     Small acts of kindness go a long way.  About two years ago, one of my former colleagues, Ms Debbie Ng, was discharged from hospital after a knee operation.  As her daughter had to work in the day, Debbie had considered admitting herself to a community hospital for rehabilitation.  But when a neighbour heard of her situation, she immediately offered to help Debbie in the day by cooking some simple meals.  There is nothing better than being able to recuperate in the comfort of your own home.   And there are no hospital bills to pay!

     Neighbourliness is another reason why we are piloting the Wellness Programme in 12 constituencies. The programme helps residents aged above 50 to better manage their health and to be engaged with others through social interest groups.  Residents, assessed through health screenings to be at-risk, will be referred for follow-ups.  Through the pilot phase, we will develop a model which we hope to introduce to other constituencies next year.

     So while the focus is on the seniors themselves, we are also hoping that this programme will promote inter-generational bonding.  In the pilot programme, there are examples of  younger people from the schools working with seniors.  So, therefore, the respect that we want the younger generation to have of seniors can be transmitted through such joint activities.  Sixty-year-old Mr Ho Toon Fang has benefited from joining "Wellness@Punggol South" last year.  Mr Ho used to stay at home and barely exercised.  Today, he is a regular user of the gymnasium at the Wellness centre, and has found friends with common interests.  Last December, he was part of a group that called themselves "OCBC - Old Can Be Contributing".  This group of seniors collected newspapers together with students to raise money for needy residents.  I hope that more such stories of healthier and active seniors will arise through the "Wellness Programme" and as this example shows, young students are involved and so those values which the older generation holds on to will be transmitted through these activities.

     Neighbourliness is also key to healthy lifestyles.  Last year, I announced that Mr Heng Chee How will study ways to promote physical activity among older Singaporeans.  It is well known that regular physical activity is essential to our health and well-being.  It even reduces the risk of mental illnesses and some types of cancer.  The problem is that not enough people do it.

     One lesson that Mr Heng and his team have learnt is that physical activity is best promoted and sustained through social groups.  Finland has only five million people.  But it has 9,000 sports clubs, run mostly by volunteers!  Can we do the same at our grassroots, among neighbours?  We are now working out how brisk walking and taichi, already popular activities in the community, can be better promoted.  I know that Dr Teo Ho Pin will like more money to be provided for brisk walking but I put it to him that it is an activity which should come from the ground and we should not need to spend so much money to motivate people to do this activity.

     Even with all our efforts to promote healthy lives, some of us will fall sick, become frail and require care.  We project that the number of seniors needing help with activities of daily living will double to 65,000 over the next decade.  For these seniors, most of them will look to the family.  Mr Chiam See Tong and Ms Ellen Lee both spoke on the need to provide greater support for caregivers.

     Caregiving is an important and, at times, stressful task.  As family size becomes smaller, the burden on caregivers will also rise.  The Government will look to ensure that caregivers are given the support they need to carry out their responsibilities.

     Caregivers should be given better information and guidance on care options.  For seniors discharged from hospitals, the Agency for Integrated Care helps families to coordinate the appropriate services required to support the senior within the home and the community.  We have to be more senior-centric and provide services across the medical and social care continuum in an integrated fashion.

     We will also look at expanding caregiver training and support programmes.  Today, families can tap on subsidies under the Caregiver Training Grant to attend caregiver training courses.  We will raise awareness and availability of these courses.  Some of these courses can be accredited to the Workforce Skills Qualifications framework, so that these caregivers can also find employment in the eldercare sector, something that Ms Ellen Lee hopes to see.

     More services will also be introduced to provide more options for caregivers.  I am pleased to announce that MCYS will fund the building of six new day care centres for seniors over the next five years.  Day care centres provide care and keep frail seniors socially engaged.  They also provide respite for family caregivers.  We are improving maintenance exercise programmes at these centres, so as to keep our seniors physically and mentally active.

     Going forward, the Ministry of Health will enhance the provision of services in the Intermediate and Long-Term Care sector, which it will elaborate on later.  Even for those without family caregivers, seniors should be supported to live as long as possible in their own homes.

     Among the more vulnerable seniors are those living in HDB rental flats.  Today, there are 19 Seniors Activity Centres serving seniors in one-room rental flats. Operated mainly by Voluntary Welfare Organisations, they provide basic information and referral, organise social activities and engage homebound seniors.  Over the next five years, MCYS will also fund the set up of about 22 Seniors Activity Centres (SACs) and expand some of the existing SACs.  Working hand in hand with the local grassroots, the SACs are part of the social safety net for vulnerable seniors.

     Overall, MCYS will spend an additional $18 million on these day care and Seniors Activity Centres.

     Mr Chiam and Ms Ellen Lee also mentioned financial assistance for caregivers.  I am mindful that other members of this House have previously called for an allowance for family caregivers.  I have said that we should not inadvertently monetise family care and responsibility.  Nonetheless, we will take a look at this issue in the context of financing long-term care.

     All around the world, countries are grappling with how to finance long-term care.  One issue is to manage the rising demand for long-term care services.  Another is that long-term care services tend to be more fragmented than medical care, and therefore not as cost effective or as "person-centric".  Long-term care is also expensive, requiring us to examine who pays for the care.  There is growing consensus that national policies should not prescribe the form of care, but should allow personal choice.  Last month, there were visitors from overseas who shared their experiences and said the greatest mistake that the United States made was to build so many nursing homes that became the automatic option of choice, which is very costly and something which they now find difficult to unwind.  They suggested to us that we have the opportunity to keep people at home because of the nature of our housing and we have the Public Housing Programme that no other country has, which provide us with the elements to build support services for the elderly around that framework and we will study accordingly.

     In most OECD countries, total long-term care expenditure average 1%, but can be as high as 3% of GDP.  Welfare states, in particular, find that they have to ration services to contain public expenditure.  The UK is now considering a mandatory private insurance scheme for long-term care, a radical departure from its state-funded health service.  We have to understand these models better as the devil is in the details.

     We are not starting from scratch.  Eldershield provides a good basis from which to refine our long-term care financing mechanisms.  Eldershield was reformed in 2007 to provide higher payouts of $400 per month for up to 6 years.  Supplements are also available to provide higher payouts or longer periods of payout, or both.

     In the same way as how our 3Ms, "Medisave, Medishield and Medifund", cover medical care, we will need to look at whether to set up a parallel of having 3Es to cover long-term care expenses.  The 3Es being Eldersave, Eldershield and Elderfund or maybe it is possible to enhance the 3Ms.  Together with means-tested Government subsidies, which are available for most care services today, we want care in old age to be affordable for all Singaporeans.  The Government will study how such a financing framework can be more holistic and robust.

     While we set about to deal with the challenges arising from an ageing population, we must not forget that the extra years we have is also a blessing.  How can we help seniors add life to years?

     We want to enable older Singaporeans to lead happy, healthy and active lives.  Our efforts on employment, financial security, ageing-in-place, health and long-term care will go a long way to achieve this vision.  Changing our attitudes about ageing is also important.

     An international survey conducted by AXA tells us that retirees in Singapore tend to think 70 is old.  On the other hand, retirees in the US associate being old with the age of 78.  The irony is that the US life expectancy is lower than Singapore's!  The boxer Muhammad Ali probably exemplifies this optimistic American spirit.  He once said, "Age is whatever you think it is. You are as old as you think you are".

     Efforts to promote positive mindsets about ageing have intensified over the last two years.  In 2007, the Council for Third Age (C3A) was set up by MCYS to champion active ageing.  Last year, the CDCs partnered with the Council to hold active ageing carnivals all over Singapore, greatly enhancing outreach efforts.  As more seniors become active agers, we will certainly see them come out to contribute their time and expertise, at work and in the community.

    Mr Baey

Yam Keng asked if the Government should do more to encourage concessions and discounts for seniors.  Certainly I encourage commercial companies to do so.  But I think ultimately this must still be based on commercial considerations.  Otherwise, the costs of concessions would fall back on the rest of society, and everybody else has to pay more.  What we can do, however, is to encourage companies to see that being pro-seniors is also pro-business.

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     Let me offer an example.  It is well-known that NTUC Fairprice offers senior citizens a 2% discount on Tuesdays.  It does this not just because of Corporate Social Responsibility, but also to attract customers, since Tuesdays tend to be the slowest day of the week.  Tuesdays are now one of the busiest days, alleviating the heavy weekend traffic at the supermarkets, and raising the yield per square metre of floor space used.

     Part of the mission of the Council for Third Age is also to build a vibrant market for seniors in Singapore.  Last month, it organised a 50 Plus Singapore Expo, which received an enthusiastic response from about 70,000 seniors.  Special deals for seniors were on offer from the 150 participating companies, ranging from health screening to customised travel packages and I believe concessions or special offers were provided to these seniors.  Over time, I am confident that more companies will want to reach out to our increasingly affluent seniors.  I think Mr Baey's point is that we should also encourage family packages so that the seniors can enjoy certain activities together with their grandchildren.  Today, if you go to a cinema there are concessions on weekdays, Mondays to Fridays, before 5 pm but for seniors.  So his point is that we should encourage the cinema operators to give concessions so that they can go together with their grandchildren.  We should certainly encourage them to do so. 

     Ageing is a sunrise industry not just in Singapore, but all around the world.  Our Asian hinterland dominates population ageing; the number of people aged 60 and above will quadruple to 1.2 billion by 2050.

     For this reason, we want to develop Singapore as a knowledge and business hub for ageing.  Let me give you some examples:  EDB is leading efforts to develop the health and wellness industry in an ageing population.  In January, two conferences, "Reinventing Retirement Asia, and Asia Forum on Ageing", were held in Singapore, involving many international experts and partners.  The Silver Community Test-Bed Programme under MCYS is into its second call for proposals to test-bed age-friendly products in HDB homes.  Last year, Singapore Management University, with the support of the MAS, has set up a Centre for Silver Security to conduct research on retirement security in ageing populations.  As we can see, Singapore is becoming a vibrant place for research and business on ageing.

     Let me conclude by saying that the work of the Ministerial Committee on Ageing builds on previous efforts to prepare our population for ageing since the 1980s.  There are still some major items on the agenda, such as long-term care financing and developing more care and community services for an ageing population.  At the end of the day, however, each individual is responsible for preparing and living out one's golden years, with the family playing an important supporting role. 

     Within the next two months, MCYS will be releasing a public report to update on what the Government has done to prepare for an ageing population.  It will contain useful information and practical advice on how Singaporeans can prepare well, and how we can work, live and play in our later years.  As we add years to our life, we should also add life to our years.  I hope that the report, titled "Adding Life to Years" would inspire all Singaporeans to be happy, healthy and active today and in the future. 

[Mr Deputy Speaker (Mr Matthias Yao Chih) in the Chair]

4.34 pm

Developing Singapore as a Pre-eminent Financial Centre

     Mr Arthur Fong (West Coast): Mr Chairman, the negative effects of the global financial crisis are still unfolding, making victims of more traditional financial giants after Lehman Brothers.  Singapore is now ranked third behind New York and London as a financial centre in a survey commissioned by the City of London.  The crisis is not only forcing financial giants to their knees, it has also resulted in a heavy retrenchment of staff in the industry.  How does the retrenchment of banking staff on whom we have spent much public and private resources to develop, affect our status as a pre-eminent centre?

     We have been promoting the wealth management and fund management as specific sectors with strong growth potential.  How does the MAS consider this growth sector going forward?  Will our ambitions be thwarted, or have we already, in the last five years, developed the natural advantage in this area?

     Finally, Sir, I call on the Government to take stock of the progress thus far and re-assess the immediate and longer-term directions to develop further Singapore as an international financial centre.

Developing Financial Literacy

     Miss Penny Low: Sir, what are the root causes that led to the recent structured products fiasco?  It is greed and lack of financial literacy.  Many people lost their nest egg.  In 2008, the total debts to individuals in Singapore stand at $112 billion, 10% more than 2007.  Credit card debt alone stands at $3.3 billion and worldwide, credit card debt has been growing fast and even threatens to be the next sub-prime.  Sir, since my first speech in Parliament, I have made repeated calls for national financial literacy programmes.  I am happy with the MoneySense programme but judging from the recent financial fiascos, the MoneySense programme is not sufficient.  Hence, I am making urgent calls for two additional suggestions.

     One, perhaps we can equip every household with a basic financial literacy handbook – much like the case of an emergency handbook; and life skills that can help them do basic financial planning whether in good or bad times.

    Two, I propose setting up a high-level National Financial Literacy Advisory Council, perhaps under the PMO, to co-ordinate efforts to work with the public, private and people sector to accelerate financial education efforts for youths in school, adults in the workplace, homebuyers and retirees in the CPF queues, homemakers and self-employed who are found everywhere.  In addition, the council can help improve understanding of financial services, create national financial literacy barometer, conduct research and strengthen financial education programmes.

     Sir, let me reiterate that financial literacy can help to smoothen consumption, provide for better education and health needs, save individuals from their financial headaches and family heartaches and also provide capital for entrepreneurship.  Most of all, it would also help to lighten the Government's load on the financial security that needs to be set aside for an ageing population.

MAS - Guidelines for Fair Dealing

     Mr Low Thia Khiang: Sir, in February 2008, MAS released a consultation paper on proposed Guidelines for Fair Dealing.  The proposed Guidelines focused on the role of board and senior management of financial institutions (FIs) in leading their companies to deliver fair dealing outcomes to retail consumers.  The proposed Guidelines, amongst others, seek to build consumer confidence that the FIs will put their interests first in the conduct of their business and to offer product and services suitable for the targeted consumer segment as well as handle consumers' complaints promptly and in a consistent manner.  As these proposed Guidelines are in line with one of the supervisory objectives of the MAS, I would like to ask the Minister four questions.

     One, we all know that the board and senior management of FIs will always put the interests of their company first.  They have a duty to ensure that their company is well managed and profitable.  Thus in any dispute with consumers, no FI will readily admit to any wrongdoing.  The collapse of Lehman Brothers in  September 2008 and the resulting meltdown of the financial markets have made investors of structured products even more sceptical of FIs on the issue of fair dealing.  In a press release on 2nd October 2008, MAS stated that it understood the anxiety of many investors and identified three well respected independent persons (IPs) to oversee the complaints handling and resolution process of FIs for the failed structured product linked to Lehman Brothers.  IPs are also tasked to determine whether these internal processes of FIs are independent, fair and transparent.  My question is, does the Minister still believe that the proposed Guidelines for Fair Dealing can be effectively administered by the board and senior management of FIs given that MAS has embraced the importance of IPs to assure consumers that they will be given a fair hearing by FIs on the issue of mis-selling.

     Second question, Sir, would the Guidelines for Fair Dealing for FIs be considered complete without the input of consumers?  Would MAS consider releasing the consultation paper by groups like CASE or the Security Investors Association of Singapore for consumers to feedback on their experience with FIs over the issue of fair dealing since we have about 10,000 affected investors of failed structured products to-date?

     Third Question, when does MAS intend to implement the Guidelines for Fair Dealing for FIs?

     The last question is, how is MAS going to monitor the compliance of the Guidelines for Fair Dealing by financial institutions or is MAS going to consider its job done once the Guideline is accepted for implementation by the FIs?

     The Minister for Trade and Industry (Mr Lim Hng Kiang): Mr Chairman, Mr Arthur Fong asked about the impact of the financial crisis on the development of Singapore as a financial centre.

     Financial services is a key sector in our economy, contributing about 12% of our GDP and employing 8% of our workforce.  We think it is very important for us to continue to grow Singapore as a financial centre.  This crisis would test us to the fullest.  Arising from the crisis are also opportunities for us to develop Singapore as a financial centre.  Our immediate objective really is to make sure our financial institutions here remain sound and prudently managed.  We need to ensure that our financial markets operate smoothly, credit flows to corporate sectors continued and there is sufficient liquidity in the banking system.  How we deal with the crisis will add to our reputation as a financial centre.  Over the longer term, once the global economy recovers, we expect financial services to continue to grow significantly.  Why?

     First, because of our competitiveness as an international financial centre which rests on our key attributes, including the rule of law, trust, reliability and our strong governance, our high standards of prudential regulation and supervision and our high quality skilled workforce.  These are critical enablers for Singapore to emerge stronger from this crisis and remain competitive.

     Second, while we expect the global financial industry to undergo important changes during this crisis, we expect the growth prospects and the economic competitiveness in Asia to remain strong and financial services to remain a key pillar in supporting this growth.  To make sure we can come out of this crisis stronger than before, we will continue to invest in capabilities development, particularly in sectors that Singapore is competitive in, which Mr Arthur Fong has identified, for example, in the wealth management and in the fund management sector.

     MAS announced last November that training incentives under the financial sector development fund would be enhanced in order to encourage financial institutions to continue to invest in financial training and talent development.  MAS will also be working with other international regulators to shape the new regulatory environment.  So if we respond to this financial crisis capably, then I am confident that Singapore will continue to grow as a financial services centre.

     Miss Penny Low asked about what we can do to enhance the financial education of Singaporeans.  We agree that financial education is very important and as Miss Penny Low pointed out, we have a programme called MoneySense that has been in place since October 2003 and we have set up a Financial Education Steering Committee (FESC) to drive this effort.  This Steering Committee comprises CPF Board, the Ministry of Education, MAS, the Ministry of Manpower, MCYS, the People's Association and the National Library Board.  The Committee has been fairly effective, setting strategic directions to financial education initiatives and coordinating the efforts of the various agencies.  For example, the different agencies will spearhead specific programmes to target

different groups under their purview.  For instance, the Ministry of Education promotes initiatives for the students, CPF Board for the pre-retirees, PA for community groups and low-income families, MAS for working adults, MCYS for senior citizens and the National Library Board for the general public.

4.45 pm

     The Steering Committee also works closely with the financial industry associations, partners such as the Security Investors Association Singapore (SIAS), Council for the Third Age, NTUC, Singapore Exchange and CASE to develop, implement and fund the various programmes, and the programmes cover a wide range which include seminars, games, publications of guides as well as national financial literacy surveys.  So we have the structure in place and we will continue to evaluate this and see whether there is a need for setting up a high-level council as Miss Penny Low suggested to drive this and to give it a higher impetus.  Not all solutions need to be solved by kicking it up.  So, we will evaluate the effectiveness of this Steering Committee before we embark on this suggestion of a national council.

     Mr Low Thia Khiang asked about the guidelines on fair dealing.  The MAS put up the guidelines for fair dealing for public consultation and the consultation closed in mid-May 2008.  The four specific questions which Mr Low asked, whether we can expect the board and the senior management to change the culture of the financial institutions to one that hoist in fair dealing.  What we want to try to do in setting up these guidelines is to inculcate this corporate culture of fair dealing in our financial institutions.  For this corporate culture to come about, it needs the support and the driving force of the top management, the board and the senior management.  And we believe that this culture is in fact in line with the commercial objectives of the financial institutions.  The two are not at odds.  So even in the resolution of the recent structured products issue, and the appointment of independent persons, we believe the fair dealing guidelines set out the five fair dealing outcomes that we want to bring about, and these five fair dealing outcomes are still germane and relevant.

     If I may just take a bit of time of the House, essentially, these five outcomes are one, that the consumers have confidence that we deal with financial institutions where fair dealing is central to their corporate culture.  So this is something that we want to bring about and to make it part and parcel of the financial institution's corporate culture. Second, that financial institutions offer products and services that are suitable for the consumer segments they target.  So, again, it must be appropriate products.  They must evaluate the needs of the customer and make sure there is a proper matching of needs and products.  Third, that financial institutions appoint competent representatives who provide consumers with advice that meet their financial objectives and suit their personal circumstances.  This is very important.  We have just recently amended the Financial Advisers Act (FAA) and key changes in the amendments go toward raising the overall standards of financial advisers.  This is part and parcel of this whole change that we are bringing about in the financial institutions.  The fourth outcome that we want to achieve is that consumers receive clear, relevant and timely information to make informed financial decisions.  Again, this is something that we want the financial institutions to bring about.  And, finally, that the financial institutions handle consumer complaints promptly and in a consistent manner.  I would think that in this recent saga that we had on the structured products, the financial institutions, with the help of the independent persons, have discharged their responsibilities well and have shown that they take the consumer complaints promptly, seriously and they have dealt with it in the best way possible.  So I believe that the fair dealing outcomes that we want to promote is in keeping with our philosophy, and the way we have resolved the structured products issue brought about by Lehman Brothers' collapse, shows that this can be done.

     Mr Low asked whether the input of consumers, such as CASE and SIAS, were incorporated in the guidelines.  Indeed, they have been.  This document was put up for public consultation which involved industry and all these people.  His third question is, when MAS intend to implement this?  MAS intends to issue these guidelines towards end-March 2009.  And how MAS will monitor compliance?  Even though these are guidelines, MAS as the supervisory authority would monitor how the FIs go about discharging the spirit of these guidelines.  In some of these outcomes, there are also tangible deliverables say, for example, the third guideline of competent representatives.  There are clear standards of what the representatives' qualifications, track records and their competencies require.  Also, the fifth outcome of dealing with consumer complaints – there will be proper processes.  So MAS would be in a fairly good position to be able to monitor the compliance of the financial institutions even though these are just guidelines.

Public Sector Jobs

     The Senior Parliamentary Secretary to the Minister for Community Development, Youth and Sports and Minister for Transport (Mr Teo Ser Luck): Sir, I was at the NTU Career Fair yesterday.  More than 107 employers participated in the fair.  But the number of private sector companies has reduced and the public agencies have increased by two-fold –  28% for public sector agencies, 72% for private sector companies.  The undergraduates heard that there were 18,000 jobs available from the public sector, they were keenly interested.  I perceive that there was a sense that all the jobs were available only for graduates.  I believe that there should also be positions available for non-graduates and even older workers.  So, could the Prime Minister's Office share what jobs are available from the public sector for graduates and non-graduates, "O" levels, "A" levels and above "A" levels?

Older Workers in the Government Service

     Mr Wee Siew Kim (Ang Mo Kio): Sir, fortunately, even in the depth of a recession, we have the resources to provide additional employment with positions in Government agencies.  Over 18,000 jobs needed to be filled.  I hope that these opportunities will be well shared with two categories of job seekers, namely, the mid-career workers and the older workers.

     Certainly, for the new entrants to the workforce, armed with their newly-minted certificates, and a zest for life, the Government service would be a good place to start their new job search.  They will be a breath of fresh air.  I am sure a good percentage of the 18,000 jobs will go to this new group.

     However, with job losses mounting across a broad spectrum of industries, many workers of varied ages and experiences would become available as well.  I believe there are opportunities for Government agencies to inject new old, and not so old blood at every level.  Mid-career workers with private sector work experience could provide the agencies with new perspectives.  They can bring their private sector experience to bear in Government agencies, providing input to enhance policies and/or processes and even public perception and needs.  Another breath of fresh air.

     However, for mid-career workers to be welcomed and for them to survive, thrive and contribute, the workplace needs to have an organisation culture that welcomes feedback and is relentless in raising performance by adapting and innovating.  Stones need to be allowed to be turned over and over again. This will require the support and endorsement of the most senior leaders in the agencies.  

     The next group is the older workers.  Just as the Government encourages commercial businesses to employ older workers who do not wish to retire, it should also provide opportunities for its older workers to continue working as long as they can, wish and are able to contribute.  The public often judges Government agencies for the service they receive and many a time, this is a function of their interaction with Government officers.  While excellent customer service comes from the right service attitude, it is also a function of experience.  In this area, older workers can be a big plus.

Re-employment of Older Workers

     Mdm Halimah Yacob (Jurong): Sir, at last year's Budget debate, the Minister assured this House that although the re-employment legislation would be enforced only in 2012, the public service will do better and will be ready by 2010.  Although we are now in the midst of a severe recession, nonetheless, we must not lose sight of this important long-term policy and we know that the actions of the public service is watched closely by the private sector.  I would like to ask the Minister to give an update on the measures adopted by the public service to re-employ older workers.  How many older workers have been re-employed in the civil service as well as the statutory boards?  What is the period of re-employment and on what terms?  Could the Minister also clarify what are the jobs that have been identified for the employment of older workers and how has the public service redesigned jobs in order to make them more suitable for older workers?  Could the Minister also give an update on the three pilot agencies – the Ministry of Education, the Singapore Police Force and the Ministry of Manpower – that have agreed to establish the processes needed to ensure a smooth implementation of the civil service re-employment policy by 2010?

Internal Feedback

     Mr Baey Yam Keng: Sir, the Advisory Council on the Impact of New Media on Society has recommended that the Government Instruction Manual be amended to allow civil servants to voice their personal opinions on Government policy.  However, the Government has decided that it will not do so.

    Whether it is on new media or other channels, it is important for any employer to actively engage and solicit feedback from employees internally.  Not only is it useful to hear from people who know the systems and have ideas to improve it, it is also a powerful tool to build a sense of belonging.

     The civil service is the largest employer with many Ministries and departments performing various public roles.  It also has many talented and motivated people who are dedicated to serve in the interest of the nation.

     During my 10 years in the public service, I have the fortune of working under good leaders who promoted an open culture for staff to speak their minds.  However, being such a big organisation, there must be systems in place which are not dependent on the big boss to provide the environment.  Many people are aware of the Staff Suggestion Scheme which encourages and even incentivises civil servants to give suggestions.  However, the ideas tend to focus on matters pertaining to the respective organisation.  I also have the experience of the leaders treating that system as a numbers game. 

     Of course, nowadays everyone is just an email away, theoretically.  A civil servant can always email to Head, Civil Service or even the Prime Minister directly.   However, I do not think many people would want to do that.

     In the corporate sector, there is the whistle-blowing mechanism where staff can direct any feedback to an independent body which will investigate and maintain the informant's anonymity.  While the intent of whistle-blowing is more about ensuring corporate governance, an adaptation of that could be considered for the civil service's internal feedback system.

   I would like the Prime Minister's Office to look into ways to enhance the internal feedback system and harness the wisdom of civil servants.

Caring Government Agencies

     Mr Wee Siew Kim: Sir, in the Budget debate, I had spoken on the need to administer with a heart.  The question is perhaps how can the Government show that it cares?  The tone is already strongly set as relief packages and budget provisions kick in so quickly to help businesses and individuals cope with the recession.  In my mind, the Government cares.

    However, how the Government, through its agencies, interact and help people day to day will be just as important in showing that the Government cares.  This is the "software" that will colour the people's perception of the Government – whether it really cares for the people or not.

     So let me reiterate my call – please go about your work with a human touch and a big heart.  Hence, my earlier comments on older workers being mentors to younger frontline officers in interactions with the public.  Please empathise with people who seek assistance and be more sympathetic to those who find themselves in difficult situations.  For example, an unfortunate accident involving a motorcyclist and his pillion-riding wife was brought to my attention.  The car in front of them braked suddenly.  The motorcyclist swerved his bike and fell.  The car sped off and the motorcyclist and his wife were too hurt to take the registration number down.  Not only were both husband and wife hurt and off work, he received a fine and demerit points too.  Is this fair or is it just the unthinking application of a rule that if you are hurt in an accident, you are penalised first?  Would this resident see this as justice?  Are the officers so busy and stretched that everything is an automated response? 

     I had appealed in the Budget debate that many agencies can take a leaf from how ComCare support is delivered.  If a judgment call needs to be made, why not be generous in compassion or set up a system where people closer to the situation can be relied upon for an additional point of view or judgment? 

Just like the roles the grassroots leaders play in the delivery of ComCare support.  In these difficult economic times, we can, perhaps, be more forgiving and try to go out of our way to be more understanding and sympathetic.

5.00 pm

     I have also mentioned earlier, the issues faced by SILRA Home.  If the officers and the volunteers are aligned in their goals to provide the best value to the Home's residents, I am sure they would have been able to come to some general consensus in terms of the operating budget.  They need not feel that they are on opposing sides, with one playing the domineering role of a custodian and a steward.  But do not get me wrong.  There are agencies that go out of their way to understand the ground, in order for them to perform their roles better.  These agencies send representatives to community meetings, which are always invariably in the evenings.  They take feedback seriously and they follow up.  They communicate.  If only this is common across the family of Government agencies.  If we all go about our work and responsibilities in partnership, much more can be accomplished.  Many helping hands make the load lighter.  Many more hands would emerge, not for handouts but to hand-hold.  The human touch can lift many out of depression.

     The Minister for Defence (Mr Teo Chee Hean): Mr Chairman, I would like to thank the Members for their interests in issues related to the public service. 

     Mr Teo Ser Luck has asked for the breakdown by educational qualifications of the 18,000 jobs that the public service said will be made available in the next two years.  About 30% of the jobs will be for those with 'A' Levels and below.  The rest will require at least a diploma qualification.  The jobs requiring degree qualifications are in more specialised professions, such as teachers, doctors, pharmacists and engineers.  Those requiring diploma qualifications include positions, such as nurses and technical officers.  The Singapore Armed Forces and the Home Team agencies have a range of jobs for applicants with qualifications ranging from 'A' Levels or below to diploma and degree holders.  There are also jobs available for those with 'A' Levels or below, such as environmental health officer positions and healthcare related positions, such as assistant nurses.

     Mr Chairman, when the economy is doing well and jobs are plentiful, the public service, like the private sector, often faces challenges recruiting sufficient staff and retaining them.  However, when jobs are not so plentiful, job seekers are more prepared to consider the merits of jobs that are available, including those in the civil service.  The public service will, therefore, make use of this opportunity to recruit suitable applicants, many of whom are needed to fill our existing vacancies in education, healthcare, and other essential services.  Some of these jobs will meet new demands, eg, to improve teaching in our schools and healthcare delivery.  However, I should add that, notwithstanding our intention to hire more people, the public sector currently employs 110,000 people who constitutes just about 4% of the total labour force.  Hence, the public sector cannot be the solution to all those who are looking for a job.  While we expand recruitment, I would also like to stress that the public service will maintain its standards in terms of hiring people with the right skills and more importantly, the right values and attitudes for public service. 

     I will now turn to the issue on the employment and re-employment of older workers, which Mr Wee Siew Kim and Mdm Halimah have raised.  Mr Wee Siew Kim suggested that in filling the 18,000 jobs, we consider mid-career recruits and re-employ some of the older workers in the Government.  Our recruitment policy in the public service is based on merit.  We look for candidates who have the relevant skills, competency and traits that best fit the requirements of the jobs regardless of age.  We believe this approach will better meet the needs of the public service. 

     For the civil service, the number of officers who are recruited at age 40 years and above has increased from 13% of annual recruitment or 728 officers in 2007 to 16% of annual recruitment or 1,000 officers in 2008.  Mdm Halimah has asked for an update on the efforts to re-employ older workers in the public service.  The percentage of civil servants who were re-employed at the age 62 years has been steadily increasing.  In 2006, the number of officers who were re-employed at age 62 years was 96 or about 53% of the number of officers who retired at age 52.  This rose to 57% or 103 officers in 2007, and 64% or 189 officers in 2008.  For the statutory boards, 65% or 234 officers who retired at age 62 years were re-employed in the same year in 2008. 

     The public sector will continue to press on in with its efforts in the re-employment of our older workers.  In January this year, the public service division issued an advisory to public sector agencies on the best practices for re-employing retiring officers.  For example, public agencies are encouraged to offer re-employment contract of at least one year, where possible.  Re-employment job arrangements may also include part-time or short-term project work.  In terms of wages and benefits, agencies may consider appropriate adjustments to wages, but will offer re-employed officers the same leave and medical benefits as a fresh recruit. 

     The three agencies, which are piloting the implementation of the re-employment policy, the Ministry of Education, the Singapore Police Force, and the Ministry of Manpower have started operationalising the best practices in the advisory.  As pilot agencies, they will help us finetune the practices.  I am also pleased to note that several public sector agencies have shown their commitment to the re-employment efforts by signing a memorandum of understanding with the respective Unions, and these include the AVA, BCA, DSTA, EMA, HPB, HSA, IDA, IPOS, MPA, LTA, NLB, SLA and HDB.  (ie, Agri-Food & Veterinary Authority of Singapore, Building and Construction Authority, Defence Science & Technology Agency, Energy Market Authority, Health Promotion Board, Health Sciences Authority, Infocomm Development Authority of Singapore, Intellectual Property Office of Singapore, Maritime and Port Authority of Singapore, Land Transport Authority, National Library Board, Singapore Land Authority, and Housing and Development Board).  I can provide what all these agencies are, if you want to know. 

     I would like to assure Mdm Halimah that the public sector takes a long-term view and remains committed to the employment of its older officers, taking guidance from the tripartite committee on the employment of older workers.  Mdm Halimah has also requested for an update on our efforts to redesign jobs for officers in the corporate support and operation support services.  The civil service has been working on this in close partnership with the Unions for the past year.  For a start, jobs have been redesigned for some 500 officers in three Ministries – the Ministry of Manpower, the Ministry of Education and the Ministry of Home Affairs.  The redesigned jobs have given officers the opportunity to take on more meaningful and challenging work, and the response from the officers have been positive.  I met some of them myself, personally.

     Other Ministries are now starting on the same journey.  In total, the job redesign effort will involved some 4,000 corporate support officers and 2,000 operations support officers across all our Ministries.  The civil service will also design training courses and programmes that will prepare our officers for their redesigned jobs.  In addition, we will also continue training officers to improve their literacy, numeracy, IT and service skills.  Some of our Ministries have also taken the lead in sponsoring officers for higher level qualifications, such as polytechnic diplomas.  We will be encouraging other Ministries to do the same. 

     Let me now move on to the point raised by Mr Baey on feedback channels.  Civil servants have various internal channels to make their views known, whether it is through their own agency's staff channels or to service-wide platforms, like Staff Suggestion Scheme.  In fact, with the availability of email, as Mr Baey has pointed out, civil servants are able to share their suggestions and views with several parties within the civil service, almost instantaneously.  To further enhance existing feedback channels, we are also looking at new communications channels, such as new media platforms in the Government intranet.  We will take into account the suggestions raised by Mr Baey.  Apart from proving the channels for feedback, the civil service encourages supervisors to be receptive and opened to new ideas and staff suggestions, so that staff will not be deterred from giving their honest opinions.  I am also aware that it is quite common these days for the senior management in agencies, including CEOs and Permanent Secretaries to have regular small group sessions with their staff.  Depending on the openness of both the management as well as of the staff themselves, views on various issues can be raised at such sessions.  The experience has been mixed.  Some management teams are more open than others.  Likewise, some officers are more prepared to speak their minds than others, but we will continue to encourage more open exchanges.

     I will now address the issue by Mr Wee Siew Kim.  I agree with Mr Wee that public officers need to show understanding, empathy and sensitivity, especially towards Singaporeans who are going through a challenging period.  All quality service managers throughout the public service have been briefed to pay attention to these aspects of service delivery.  Small efforts can make a big difference.  Sometimes, by explaining schemes and initiatives more clearly, more patiently and by offering alternatives, we can help people better understand the situation and determine the best course of action.  While we strive to deliver public services with sensitivity and compassion, Members of the public must also appreciate that we will not be able to accede to every appeal, but rest assured that our public officers will be fair and objective and will do their best to understand and to work alongside Singaporeans through this difficult period.

     I would like to offer a broader perspective of what public service is.  Public servants serve the public in two respects: they serve individual members of the public and we must always remember that; but they also service the public as a whole, and hence there is the wider public interest as well.  So policies and laws are there because they serve this wider public interest too.  Traffic rules are there because they make the roads safer for all members of the public.  They may be inconvenient for certain individuals, but they are there to make lives safer and more convenient for all.  Hence, while flexibility can and should be exercised in considering the request of individual members of the public, the interest of the wider public must also be taken into account.  We will not, for example, want our roads less safe, or neighbourhoods to become more tarnished by litter, just because of the downturn.  That would just add to the doom and gloom.  In fact, if our city remains safe and clean and secure, that will help to lift the spirits of our people.

     Sir, the economic downturn presents challenging and uncertain times ahead for us.  However, while the downturn may pose challenges, it will also provide opportunities.  During this period, the public service will make use of the opportunity to recruit suitable staff that it needs to build up and strengthen capacity and capabilities in the public sector.  We will continue to improve the quality of our public services in order to better serve our customers and citizens.  Thank you for your indulgence, Sir.

          The Chairman:  We have some time for clarification.

     Mdm Halimah Yacob: Two clarifications to ask the Minister.  First, I would like to ask the Minister if, with the announcement that the Government is now going to create 18,000 new jobs, it means that the earlier policy that exists before the recession on a freeze in hiring no longer applies?

     Second question I would like to ask the Minister is whether, considering that there are now many concerns expressed, our civil servants are in touch with the ground.  Whether there are any programmes in the civil service and public service to acclimatise and get our public service to understand ground feelings and issues, particularly members of our administration service?

     Mr Teo Chee Hean: Mr Chairman, in fact, in a number of the agencies, the recruitment is beyond the numbers that they currently have.  For example, in the Ministry of Education, a lot of the new recruitment is for allied educators and what we might otherwise call teacher aides to improve the teacher-student ratios in our schools and to improve teaching.  In healthcare services, for example, these will be new positions to improve healthcare delivery.  So, indeed, some of these numbers will be beyond our current establishments and beyond what the Ministry of Finance have previously allowed.

     Sir, on encouraging our civil servants to be more sensitive to the ground, we have a number of programmes already in place to encourage more senior civil servants to go to the ground to understand what is happening.  I have had, even in my own MPS, senior civil servants and members of the administrative service, who have come for an attachment to understand what it is that takes place on the ground.  And this takes place at the various milestone courses, as well, that the senior civil servants, administrative service officers and even the younger ones attend.  There are some agencies which, I think, have made tremendous strides in being in touch with the ground.  LTA, for example, has put officers to work closely with the constituencies and a number of places, and this has worked very well and has quite transformed the grassroots leaders' and the ground's image on what the LTA is and what the LTA can do.

5.15 pm

     Mr Low Thia Khiang: Thank you, Sir, I have two clarifications.  I would like to know how

MAS monitors the outcome of the guidelines on the financial institutions offering products and services suitable for the targeted consumer segments.

     The second clarification is on the structured products resolution which the Minister mentioned in his reply.  There was feedback that FIDReC compensation, which was capped at $100,000, is unfair for those who have invested more than $100,000 because they were deprived of a cheaper way of resolution on the issue of mis-selling and compensation; so whether the Minister will consider increasing the scope of FIDReC.

     Mr Lim Hng Kiang: Mr Chairman, as I mentioned just now, the MAS will issue the guidelines in end March.  And as part of its supervisory role, MAS will evaluate the FIs' compliance with these guidelines.  Some of these guidelines are in hard form, eg, the qualifications of the representatives, so we can make a very objective and quantitative evaluation.  Some are softer, trying to build a culture, so we or MAS will have to make the assessment on a broader basis.  And MAS uses several mechanisms, eg, the so-called mystery shopper mechanism whereby members of the public, or MAS officers, will pose as clients and customers, and test the systems of the FIs.  So there are several mechanisms to do so.

     The second question on FIDReC, the limit is actually $50,000.  This limit is set, so that cases that go to FIDReC are cases where the claims are smaller.  Because if it is a big claim, these ought to go through the court processes.  But where both sides agree to raise the limits, FIDReC is more than happy to hear the cases.  So if the FI agrees to let FIDReC hear a case beyond $50,000 or if the consumer is prepared to limit the claim only up to $50,000, even though his case may be $100,000 or $150,000, FIDReC will be happy to hear the case.

          The Chairman:  Dr Teo, are you withdrawing the amendment?

     Dr Teo Ho Pin: Sir, I would like to thank Deputy Prime Minister Wong and our Ministers for their comprehensive replies although I still hope that PMO can champion and support ground initiatives to promote brisk-walking.

     Sir, I beg leave to withdraw my amendment.

     Amendment, by leave, withdrawn.

     The sum of $242,821,800 for Head U ordered to stand part of the Main Estimates.

     The sum of $38,437,400 for Head U ordered to stand part of the Development Estimates.

     Head P – Ministry of Home Affairs

          The Chairman:  Head P - Ministry of Home Affairs.  Dr Teo.

Terrorism

     Dr Teo Ho Pin: Sir, I beg to move,

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

    Sir, 27th February 2009 marks the first anniversary of the escape of Mas Selamat from our Whitley Road Detention Centre.  Despite a nationwide manhunt and the offer of a $1 million reward, we still do not know where is Mas Selamat.  The recent terrorist attack at Mumbai clearly shows that terrorism is still a serious threat to Singapore and Singaporeans both locally and overseas.  Sir, I noticed that many Singaporeans have simply forgotten about Mas Selamat, and our community engagement programme of the public with regard to terrorism seems to have slackened.

     For instance, many posters of Mas Selamat were taken down from notice boards and public places.  No one seems to be paying attention to the search for Mas Selamat.  It is indeed a worrying sign as we may be facing an increased terrorism threat after his escape.  May I ask the Minister for Home Affairs to update the house on efforts to arrest Mas Selamat?  Sir, in view of the fact that the new Obama administration is looking into closing down the detainee facility at Guantanamo Bay, are there mechanisms through which the Government would be kept informed of the status and movement of any Southeast Asian detainees who may pose security threats to our country?

     Although the Home Team has implemented many measures to harden potential terrorist targets, there is much work to be done to intensify our search efforts for Mas Selamat, strengthen our home team, and enhance the emergency preparedness of Singaporeans.

     Sir, I understand from the reply to my Parliamentary written question that the Ministry has fully implemented the recommendations of the Committee of Inquiry with regard to the security protocols and features of Whitley Road Detention Centre (WRDC).  May I ask the Minister, how many detainees are presently housed at the WRDC, and when will the new detention centre be built in Changi Prison?

     Sir, one of the key reasons cited by the Ministry for the series of security lapses last year was organisational fatigue among officers of the Home Team.  Can the Minister update the House on measures undertaken to address the fatigue problems of the Home Team, and what mechanisms are in place to constantly monitor the fatigue of the Home Team in view of the fast changing security landscape?

     Sir, may I also ask the Minister what is the level of emergency preparedness among Singaporeans?

     Mr Hri Kumar Nair (Bishan-Toa Payoh): Sir, the terrorism attacks in Mumbai were a grim reminder of the terrorist threat, and, more importantly, that terrorists will continue to attempt new audacious ways to destroy, strike fear and advance the agenda.  The terrorists came from the sea and were able to infiltrate largely unmolested.

     We are as vulnerable as Mumbai, if not, more so.  By the time a fast boat enters our territorial waters, it will take just minutes to reach our shores, and we have people living and working almost at the waters' edge.  There will be little time to react.  There are also parts of our coastline which are not developed where terrorists can slip in undetected and cause mischief further in land.  I, therefore, ask the Minister what will be done to protect our coastlines from such possible infiltrations.

     Second, I would like to ask whether we can use technology to assist in our security efforts.  Aircraft have transponders and are required to submit flight plans in advance.  This gives us fair warning when an unauthorised aircraft approaches us.  Cannot something similar be posted for ships?  There will, no doubt, be a cost but is our safety not worth paying for?

     Thirdly, if terrorists do strike, do we have a proper disaster or rescue plan?  The recent incident involving the Singapore Flyer was more than just an embarrassment.  It shows that there are no adequate rescue plans for private buildings or installations, or at least no proper coordination of such plans between public services and building owners.  If we have difficulties rescuing those trapped in the Flyer, does it mean that we will have similar difficulties for those in the many buildings in the Central Business District or other strategic areas?

     Finally, we have, thankfully, not experienced any major incidents for many years but this raises the concern that Singaporeans may not know how to react or what to do in the event an attack happens.

     Sir, we have often seen images of American kids ducking under their desks during air raid drills in the 1960s, during the Cold War era.  That may be a bit extreme for us but such exercises do increase a sense of awareness of the problem.  Should there not be more public education to impart some basic protection of survival tips to Singaporeans, so that they will know how to react or what to do in the event such a disaster happens?

Terrorist Attacks and Responsible Media Reporting

     Ms Indranee Rajah (Tanjong Pagar): Mr Chairman, I would like to raise the issue of responsible media reporting in the event of a terrorist attack.  My concern is prompted by what happened in India during the terrorist attacks on the two hotels in Mumbai.  As this Parliament will recall, the terrorists took over two hotels.  Whilst some people were taken hostage, there were others who were in hiding, awaiting the opportunity to escape.  Those in hiding presumably managed to get word out that they were safe.  And during the attacks, there was extensive media coverage of what was happening.  The Indian media apparently managed to obtain information of the fact that some people were in hiding and of their whereabouts and published this as part of the news.  This obviously endangered those people and alerted the terrorists to the fact that there were other potential hostages to be taken.  There was also extensive media coverage when the security forces and commandos began the counter-attack and rescue operations.  This gave the public a blow-by-blow account of the operations while the operations were ongoing.  But, unfortunately, since terrorists and their handlers also watched TV and read the newspapers, it meant that they got the same information too, which endangered the lives, not only of the hostages but of the security personnel as well.  Therefore, I would like to ask the Minister for Home Affairs what measures MHA is taking to ensure responsible media reporting in the event of a terrorist attack in Singapore, because whilst the media has the responsibility to inform the public of what is happening, this has to be balanced against putting innocent lives at risk.

Emergency Preparedness

     Ms Ellen Lee: To counter terrorists threats, SARS and the flu pandemic, much work have been done to prepare Singaporeans for the outbreak of these eventualities in the past eight years or so.  Yet, how prepared are Singaporeans today?  The efforts seem largely confined to major inter-agency exercises, simulations and drills conducted by the Home Team and some grassroots organisations, and the distribution of handbooks to households.  Do Singaporeans truly know how to respond to such emergencies if they happen?  How long must MHA persevere in its efforts to make Singaporeans realise that they must take ownership and play a critical role in their own safety and not rely totally on the Government?  I will use six examples to illustrate.

     (1) Fire drills in commercial buildings – office workers often do not take these seriously and take the exercises like “going through the motion”.  The participation rate is often not very high.

     (2) MRT train disruptions or accidents along expressways or in the tunnels – how do commuters and motorists respond before the authorities arrive at the scenes?  Is the Traffic Police making it mandatory for head-lights to be turned on and for drivers to tune in to the local radios for the whole duration of the tunnel ride in the CTE or the KPE?

     (3) The tremors felt by earthquakes in Sumatra or Indonesia – most people did not even realise why they experienced sudden dizziness.  For people who did evacuate, instead of running away to open spaces as soon as they hit the ground, they stood at the ground floor of the same building, expecting to see something happening.

     (4) A Singaporean killed in the Mumbai terrorist attack – how many people would use this incident to remind ourselves to check on travel advisories issued by the MFA before traveling?

     (5) The recurring Bangkok political crisis – why are Singaporeans undeterred or not worried for their safety and still going to Bangkok?

     (6) All iconic structures, such as the Singapore Flyer and some skyscrapers are easy terrorist targets – are internationally-accepted disaster rescue or contingency plans made mandatory and reviewed periodically?

Dual Citizenship

     Dr Lam Pin Min: Mr Chairman, dual citizenship is becoming more common in our increasingly interconnected globalised world.  Many countries such as India, the Philippines and Mexico are now seeing the advantages of dual citizenship and are liberalising their citizenship laws.  In fact, there are currently about 90 countries that officially permit or accept dual or multiple citizenship.  Why would a person need or want to be a citizen of more than one country?  In some cases, it may be simply a matter of cultural attachment.  Some individuals who live in one country but were raised in another, may see dual citizenship as a way of connecting with their heritage.  For others, dual citizenship may be a matter of convenience, making travel easier when the country places restrictions on visitors from certain countries.  Dual citizenship also has advantages of broadening the country's economic base by promoting trade and investment between the dual citizen's two respective countries.  There is no doubt that Singapore has benefited from its rich migrant society in terms of boosting its talent pool as well as contributing to the vibrant economy.  Ironically, our strict non-dual citizenship policy is putting many foreigners in a conundrum as many enjoy working and staying in Singapore but cannot bear to abandon the land of their birth for sentimental reasons.  The current policy risks losing these people whom the Government has tried so hard to retain,

the very people with rich transnational experience and perspective.

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     In a similar situation, more and more Singaporeans, especially those working abroad, have grown to enjoy staying in a foreign country where they are working.  They have to reluctantly renounce their Singapore citizenship.  It is perhaps time for the Ministry to revisit the issue of dual citizenship.  We should retain citizens by giving them compelling reasons to stay and not keep them by using artificial means.

Offence of Nuisance and Proposed "Move On" Powers

     Mr Siew Kum Hong (Nominated Member): Sir, the Miscellaneous Offences (Public Order and Nuisance) Act provides for certain offences under the umbrella of  so-called “public nuisances”.  I  will share my experience on how the police enforces this law.

     Last October, when speaking in this House on a Member's motion on by-elections, I referred to a survey of Jurong GRC residents conducted by The Online Citizen website on 23rd October 2008, which I helped to conduct. 

     For the survey, I was paired with another volunteer, and we were in Jurong asking passers-by whether they thought that there should be a by-election. We were pretty much in the same spot from around 3.00 pm onwards.  While surveying passers-by, I  noticed two uniformed police officers patrolling the area.  They stood some distance away observing us. They did nothing to stop us. I assumed that all was fine.

     But after about two hours or so, at about 5.00 pm, these same two officers went up to my fellow volunteer and started questioning him, asking for his name and what we were doing.  All this while, they had been observing us from time to time, and had allowed us to continue doing the survey for two hours or more without question or interruption.  All this while, we were not noisy and we were respectful and polite to all persons approached, whether or not they were willing to take part in the survey.   All this while, nobody complained to us about what we were doing, and nobody took offence or asked us to stop, although a grassroots leader did engage my fellow volunteer in discussion for about 15 minutes or so.

     I saw the officers speaking to my fellow volunteer, but we continued taking survey responses.  After a while, I went to them. The officers said that they had received a complaint of two persons causing a public nuisance in that area by taking a survey.  We answered their questions, and showed them our survey questions at their request.  They told us to stop doing the survey, while they checked with their superiors for further instructions. We complied, and waited for a decision to come through.

     Eventually, just before 6.00 pm, one of the officers came up to us and said that we could continue with the survey if we wanted. By then, both of us were tired from the waiting and the tension. We called it a day, and left the area.

     Sir, that was one of the more stressful days in my life to date.  It is no joke to have the police come up to you, tell you that they have received a complaint that you are breaking the law while declining to disclose any details on this complaint, and then keep you waiting for nearly an hour without any update or information on what was going on.

     Having been on the receiving end, I believe that the existing system lacks transparency and accountability, and is open to abuse.  To this day, I feel aggrieved when I think of that day. Where is the transparency and accountability in the process?  If we were indeed being a nuisance, or if there was a legitimate concern about us being public nuisances, then why had not the police officers acted earlier, when they first saw us?  Why act almost two hours after they first observed us?  We were doing the exact same thing, and the only difference was that someone had called in to complain.  The police would have seen with their own eyes whether or not we were causing a public nuisance.  So why ask us to stop?  Why did the police not tell us why they stopped us, why they had not stopped us earlier, and why they decided that nothing was wrong?  And why take 45 minutes to decide, when they had already been watching us for hours and knew exactly what was going on?

     I could not and still cannot shake off the belief that the entire incident was related to the fact that the survey questions relating to whether a by-election should have been called in Jurong GRC could be seen as being politically sensitive.  But that should be irrelevant to the police.  The only relevant consideration should be whether we were in fact causing a public nuisance, and that is self evident.  We were clearly not causing a public nuisance.  The police officers knew that were not causing a nuisance.  So, why stop us?  Why put citizens, engaging in the legitimate exercise of their constitutional right to move freely throughout Singapore, through such an ordeal?

     To my mind, there are legitimate questions about the possibility of abuse in the police’s purported exercise of their powers in connection with the Miscellaneous Offences Act.  By "abuse", I mean the use of official powers to disrupt lawful activities by citizens, especially activities with political overtones, without legitimate reason. The lack of transparency, clarity and accountability in how we were treated concerns me.

    In the light of my experience with the Miscellaneous Offences Act, I was naturally concerned when the Deputy Prime Minister disclosed that the Government was considering the introduction of “move on” powers in a recent press interview.  I do understand that this is still in the works, and that the legislation will be introduced later this year.  Nevertheless, I will take this opportunity to speak a little on this.

     This plan seems to have been inspired by the Australian example.  Many states in Australia have given their police such powers.  But these powers are problematic, both in terms of the legislative framework and in terms of their actual exercise.

     In terms of the legislation, the “move on” powers need to be framed narrowly, given the fact that these powers create the potential for a deep encroachment into Singaporeans’ fundamental liberties.  So, for instance, the situations in which the powers may be exercised must be clearly and narrowly defined.  Overly-broad situations could represent an unjustifiable curtailment of Singaporeans’ civil liberties.

     Indeed, the Australian experience is instructive here.  In a case last year involving “move on” powers for the New South Wales police, the Federal Court of Australia found that the regulations in question were unconstitutional for having overly curtailed Australians’  freedom of speech.

     Similarly, the legislation that we introduce should be clear that it targets the conduct in question, and not so much the fact that a person is in a certain spot.  Accordingly, if a citizen engages in a certain offensive conduct in a certain location, he is asked to “move on” and he ceases the offensive conduct, then the “move on” order should cease to have effect.

     As for the exercise of these powers, they will invariably be highly discretionary.  The Australian experience has been that the powers can be and frequently are exercised in a capricious, arbitrary and unaccountable manner.

     I have a couple of quick suggestions to address these shortcomings.  Firstly, there should be clear and transparent checks-and-balances.  For instance, the police should be required to record all “move on” orders issued in a register, to issue warnings to cease the offensive conduct before actually issuing a “move on” order, and to issue “move on” orders in writing, where practicable, perhaps on a simple pre-printed form with tick boxes.

     Secondly, there should also be an appeal mechanism, for instance, to an independent panel or an ombudsman, who should be required to publish all findings subject to confidentiality requirements.  Where the panel or ombudsman finds that the order was not properly issued, the police should be required to issue a formal public apology, so as to give the person proper redress.

Home Team Resources

     Mr Lim Biow Chuan (Marine Parade): Sir, during my block visits in my constituency, I hear many complaints about the many vice activities along Geylang Road.  These vice activities are carried out just opposite the HDB blocks in my constituency.  Many of my residents, especially females, have complained that they feel insecure whenever they use the bus stops along Guillemard Road or when they return home later in the evening.

     I have also received many complaints from residents about strangers loitering around the HDB staircases in the middle of the night.  The presence of these strangers has caused distress to the residents as they are not sure whether these strangers are involved in drugs or maybe petty thieves waiting to break into the flats or may even be armed robbers.  There are also complaints about loanshark harassment, theft of bicycles and vandalism of motor vehicles in the multi-storey carparks.

     I have personally spoken to the residents who have been harassed by loansharks.  They have expressed great disappointment, and they have been threatened repeatedly with legal action.  It is easy to classify the harassment from illegal money lenders as a mere incident or a crime statistic.  But the fact is that for each case that is reported, it causes great distress to the family involved.  They live in constant fear of whether their lives or their young children would be endangered.  And for some of those who were threatened, they are not even the borrowers.  They are mere innocent owners of a flat who are being harassed because of the illegal activity of the former resident of the flat who had borrowed money from a loanshark. 

     Whilst I acknowledge that the crime rate in Singapore is low and that the police is doing all that they can to tackle the crime situation in Singapore, I feel that we can do more.  One possible solution is to have greater police presence in the estate to deter would-be criminals.  I do not expect the police to be everywhere, but certainly the fact that there is increased police presence would add to the comfort of residents.

     Sir, I have asked the police for a greater number of patrols in the area, but I understand that they have their limitation in terms of manpower.  I am glad to know that MHA is looking to employ more Home Team officers, and I would urge MHA to consider deploying more police officers on the ground to ensure that there is sufficient sense of security for the residents of Singapore.

     Next, I would also like to ask for more traffic police presence on the roads.  At the last parliamentary session, there were concerns raised about speeding heavy vehicles.  I have also personally witnessed more and more vehicle drivers who do not bother to obey traffic rules.  For example, I am sure that many of us have seen heavy vehicles or buses travelling at high speeds along the right lanes of expressways, and I have also seen heavy vehicle drivers refusing to queue along the lane and then cutting into other driver's lane dangerously at the last moment.  The fact is that if there is little enforcement of traffic rules, then Singapore drivers will obey the rule of the jungle and drive dangerously to prevent other drivers from cutting into their lanes.  In my view, this kind of inconsiderate driving is a result of inadequate traffic police presence, and is unhealthy for Singapore.

Home Team Response to Calls from the Public

     Ms Ellen Lee: Sir, the Home Team has performed admirably.  And since Singapore became an international convention venue, it has expanded its duties to protect all convention participants as well, over and above utilising private security forces.  This is no easy task, especially when much co-ordination is needed with the foreign dignitaries’ security agencies to ensure that they work seamlessly and efficiently.  The recent recruitment of a few hundred more people to join the Singapore Police Force speaks volumes of how much manpower is required.  The Second Minister for Home Affairs has said that our police officers indeed work much longer hours.  Singaporeans should salute the existing team for their efforts have led to the overall crime rate in 2008 dipping below that of 2007.

     The overall efficiency and effectiveness of the SPF have led to many more people calling 999 as a reflex action to the following:

     (a) Quarrels between family members or with neighbours;

     (b) Chatter from the void decks and motor bike speeding in the dead of the night;

     (c) Noise from religious celebrations due to auctions, wayangs or lion dance performances, etc; and

     (d) Harassments from loansharks.

     Callers expect the police to arrive at the scene at least within 30 minutes of their calls.  Many residents are angry that the police did not give priority to their calls for help.

     When these few hundred vacancies are filled, people would naturally expect the Singapore Police Force to have an even higher level of quality service, since more police officers are now available to respond even more quickly to their calls.  Does the Ministry of Home Affairs intend to create a different telephone number for the public to call, such as the 1777 for ambulance for non-urgent cases, in the situations that I just mentioned above, instead of 999, so that trained police manpower could be freed up for more urgent life and death matters?  This could mean outsourcing this non-urgent aspect of the work to the auxiliary police, as in the case of the traffic police.

     It could also mean that in family quarrels, for instance, dedicated social workers or trained community mediators could be dispatched to provide dispute resolution services, rather than to fulfill the expectation of certain family members to have the police make an arrest on the spot.

Training of Home Team

     Dr Fatimah Lateef (Marine Parade): Sir, members of the Home Team are often front-line officers who come in contact with the public very frequently.  This may be face to face, in written communications and also telephone conversations, as such etiquette and expression in communications play a very crucial role when engaging the public.  Are there programmes for these officers to go to, so as to improve their communications and their interaction with the public?  Will there be plans to enhance the quality, quantity as well as the level of training?  We have had our fair share of negative communications and interaction.  As they are also very public in their jobs and are fast often seen at the front line, does the Ministry also agree that they should all have some form of first responder's training, which includes CPR, first aid and perhaps also automated external defibrillator training?  In this way, they can also help to improve the Singapore's out-of-hospital cardiac arrest survival rate.

Private Security Industry

     Ms Sylvia Lim: Sir, in the last three years, much effort has been made by the Government to uplift standards in the private security industry.  Training and licensing requirements under national frameworks are in place since 2005,

which has given the public some assurance of baseline skills and knowledge in every security officer.  At the agency level, the Police regulators have been working with security service providers and conducting audits to check service and operational standards.  These audit results are published to motivate agencies to strive for higher standards.

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     Sir, these moves have not been universally popular.  They have resulted in some service providers recouping and even dropping out of the industry.  However, they are moves in the right direction.  As more reliance has been placed on private security to complement our law enforcement officers at major and public events, security officers must be able to handle members of the public, exercise judgment and understand their duties and liabilities.  To attract responsible and committed people to the industry, security businesses must be well-run with good management practices and fair employee benefits.

     From my dealings with security service providers, many lament that there is still a serious manpower shortage.  Although the number of licensed guards has increased significantly, they note that retention in industry is a big challenge.  Their experience is that the attrition rate in the first few months is high because entry is fairly easy but the job hours are long and considered unglamorous and the pay is low.  The manpower shortage has resulted in security agencies having difficulty carrying out security jobs which they have secured.  At the lower end of the market where margins are low, this has facilitated some dubious practices, such as the same guard working consecutive 12-hour shift.  There is anecdotal information of some Malaysians who are doing this and living out of suitcases.  How serious is the shortage and what can be done to increase recruitment and retention?  After all, this is one industry which will still survive in the downturn.

     Next, although the price of security services has generally gone up, how far has security officers' salaries gone up?  What can be done to encourage employers to get a fairer deal to their employees?

     Last, Sir, the annual audit of agencies done by Police regulators has been kept optional so far.  When the audit first commenced, only one-third of the agencies opted out.  But, last year, 50% opted out.  Such non-participation undermines efforts to upgrade standards and leaves guards exposed to bad management.  What is the Government's hesitation to make the audit compulsory?

Crime Prevention

     Dr Teo Ho Pin: Sir, "Low crime does not mean no crime".  This is a crime prevention message by the Police to the general public.  Despite years of public education on crime prevention, we still have 30,000 cases of crimes per year.  Although the crime rate per 100,000 population is low, we must not be complacent.  The Home Team, its community partners and the general public must continue its close cooperation and good work to further reduce incidents of crime, especially against the elderly and children.

     With a fast ageing population and severe recession, there is a high possibility that crime rates will rise. In the past, cheating and theft cases increased significantly when times are bad.  In 2007, there were 4,084 cases of crimes against persons and 19,522 cheating and related crimes.  Sir, many elderly in the heartlands are alone during the morning and afternoon when their children are at school or at work.  As such, they become vulnerable to cheats who prey on these elderly by posing as sales agent or use scare tactics to con the elderly of money.  Thus, I wish to ask the Minister whether additional measures are taken to protect the elderly from crime during this recession.  Are the present crime prevention efforts effective in reducing crime against the elderly?

     Sir, the use of Internet has increased the vulnerability of children to cyber crimes. Cheating and sex-related crimes as a result of Internet usage are commonly reported.  As children spend more hours surfing the Internet, they are exposed to high risks of cyber crime.  May I ask the Minister as to what measures are taken by the Home Team to safeguard the safety of children on the Internet and how effective are the cyber crime prevention efforts for children?

Public Safety and Foreign Workers

     Mr Arthur Fong: As the economic downturn marches on, we can expect more workers to lose their jobs and this is despite our Government's efforts to stem the tide of retrenchments with the Jobs Credit.  Although the construction industry is performing better at this time than the manufacturing or service industry, it is also affected by the downturn.  At last count, we have close to 800,000 foreign workers in Singapore although not all from the construction industry.  These foreign workers face several challenges in addition to not being able to find any work here; some do face the problem of errant employers who have not paid them their salaries.

     Underneath the surface of industrial relations here, I feel that much exploitation of foreign workers goes on unreported.  I am glad that our Manpower Ministry is taking up the cudgels on behalf of these exploited foreign workers.  Sadly, we still see more of these disgruntled foreign workers gathering outside the Ministry awaiting justice.  The numbers of these gatherings have been large at times to air their grievances and some of them have been settled satisfactorily.  As our construction industry continues to face the prospect of less jobs becoming available and worsening cashflow problems, there is no guarantee that these gatherings of workers or in anywhere else, for that matter, will continue to be orderly.  There were also reports of workers gathering in large numbers elsewhere in Singapore or even near our heartlands. 

     How is the Home Team coping and policing such groups to the possibilities of coordinated protests by such groups existing at different localities?  Our Home Team needs to be wary of such a possibility.  I therefore ask the Minister if we are prepared and what are the processes and measures in place and, more importantly, how to restore order in the event of a foreign worker gathering turning violent.  Finally, how can the Home Team carry out all these without affecting Singapore's image as one of bullying our guest workers?

Prison Violence and Inmate Safety

     Ms Sylvia Lim: Sir, it was reported in November that a male prisoner who was sharing a cell with three others was seriously and sexually assaulted by his cell mates sometime between April and May.  He was apparently punched and kicked until he suffered severe fractures and internal injuries, including the ribs, liver and breastbone.  The victim was allegedly sodomised and forced to have oral sex.  The injuries were apparently so serious that he had to be warded in the hospital for two months.  The three suspects are now facing criminal charges in the courts.

     Sir, all Prisons face inmate management issues.  But this incident is straight out of Prison's movies such as the "Shawshank Redemption".  Sir, I note that the KPIs under the Ministry show that the incidents of assault cases in Prisons appear to be increasing somewhat over the last three years from 15 to 22, and now 26 cases per 10,000 inmates.  What precautions are taken in deciding cell sharing arrangements?  How was it that the incident continued undetected and what measures are in place to detect and pre-empt serious incidents of this nature? 

Vice Trade and Sex Shops

     Mr Christopher de Souza (Holland-Bukit Timah): The number of foreign prostitutes arrested in 2006 was 4,310.  This was a 34% increase over 2005.  In 2007, Police arrested some 5,400 female foreigners for vice-related activities. That is an average of about 100 vice-related arrests per week.  Four thousand and nine hundred or 91% of these were in Singapore on Social Visit Passes.

     The numbers are cause for grave concern.  Another source of concern is that prostitution has worked itself into our heartlands.  In January 2009, just last month, it was reported in the press, and I quote:

     "A bar owner illegally hired a Philippine national on a social visit pass to work at a Duxton Road pub.  However, the 23-year-old woman not only drank and chatted with male customers, she also exposed her breasts and touched their private parts."

     The Police, during a spot check, also found that the woman's details were not recorded in the staff record book, as required under the Public Entertainments and Meetings Act.  The bar owner was fined $12,000 in court for amongst others allowing her to work illegally as a hostess and allowing her to carry out immoral activities at the venue.

     I urge Parliament and MHA to act on what the prosecution had stated in its legal submission to Court in this recent case and I quote the prosecution's submission:  "The immoral actions of the hostess was part of a 'disturbing trend' and that if left unquelled, it will have far reaching social implications, resulting in the proliferation of social ills," including but not limited to the "spread of sexually transmitted diseases."

    Sir, the numbers speak for themselves.  The case speaks for itself.  The prosecution's submission speaks for itself. What concrete steps will MHA take to curb this "disturbing trend"?  In particular, how will MHA ensure the Anti-Vice Branch is fully equipped with additional manpower, intelligence officers and resources to (a) identify new locations where sex-syndicates operate; (b) eradicate such operations; and (c) curtail the spread of sex-syndicate operations into our heartlands?

     Given the figures show that relying on police enforcement to curb vice numbers has serious limitations, would MHA consider enacting legislation to deter the vice numbers from increasing further?  In the United Kingdom, Home Secretary Jacqui Smith has announced that England and Wales are recently considering criminalising paying for sex with someone who is "controlled for another person’s gain".  The law will cover activity controlled by a pimp.  This will be a "strict liability" offence, and ignorance of the circumstances will be no defence in court.  The UK legislation envisions that men paying for sex could be fined £1,000 if they bought it from a woman who was not a free agent, ie, under the control of a pimp or traffickers.  The aim of the law is the protection of women – that women should not be traded or used as a commodity.  I fully support this aim and believe that we should take concrete steps to achieve it.  By enacting such a law on our shore, ie, by addressing the "demand" side of prostitution – I am convinced the vice numbers will go down.  Do we not owe it to women to ensure that they are not traded or used as commodities?

     Before we become pragmatic about prostitution, pre-empting possible arguments against what I am suggesting, with arguments like "it’s always existed, always will exist" – why not pose a  few questions to ourselves.  First, would we want someone we love to become a prostitute?  Second, would any prostitute really say that she would like her daughter to end up as she did?  Therefore, the real question we have to ask, and MHA should be asking themselves, is whether this is a trade we want to see contract, or flourish. I personally want to see it contract.

     Many Singaporeans I have spoken to want to see it diminish. We owe it to the women – the mothers and daughters – living in our society to protect them from being traded and used as commodities. Being pimped is to be traded and used as a commodity.  No argument can rebut that.  Therefore, in addition to increasing the Police anti-vice enforcement to curb the supply dimension of vice, would MHA consider a policy shift to prosecute men who pay to have sex with women who are not free agents?  This would be a much needed "panacea" for what the AG's Chambers itself describes as a "disturbing trend".

     I move on to sex shops.  I am also concerned about the location and proliferation of sex shops in Singapore.  The majority of these shops are currently located in retail areas, such as Orchard Road or Chinatown.  However, what will MHA do to prevent these shops from setting up in inappropriate areas, for example, next to schools – secondary schools, junior colleges – or in the heartland neighbourhoods?  Will MHA introduce zoning restrictions on these shops?  Will  MHA set up a licensing authority to regulate these shops?  One aspect that could be regulated is the location of the shops.  Such "zoning" regulation will allow MHA to keep a check on how many of such shops exist and the location of shops.  A good example of a legislative framework to regulate sex shops through zoning (for example, for our purposes, not near schools) is found in Part III of the Civic Government (Scotland) Act 1982, read with Schedule 2 of the Act.  I ask and urge MHA to study the framework contained therein.  Of course, MHA should make a policy decision as to whether it wants to allow such shops in Singapore, in the first place.  But if it does, the least it could do is to regulate their location.  If we have licences for bars, it seems illogical that we do not require licences for sex shops.  Therefore, would MHA consider putting in place a regulatory framework to ensure that the shops do not proliferate into inappropriate areas, such as near our schools?

Vice Activities

     Dr Fatimah Lateef: The presence of street prostitution comes with various social disamenities in the Geylang Area, for example. These include overcrowding and noise pollution to residents because it is also a residential area, traffic congestion and increased illegal parking as well as various minor offences.

     At Geylang Serai, I have led a multi-disciplinary community and agency task force and our efforts include the following: brightening dark areas and lorongs; trimming of trees for enhanced visibility; residents dialogue, feedback, cooperation and patrol, including organisation of activities in the parks and lorongs; dialogues with pub owners and management;

working with LTA and URA on various issues including the coffeeshop issues; and the Police and anti-vice.

     Of course, a whole list of things have been done but due to overwhelming pedestrian traffic, an increased amount of litter is generated and public health concerns, such as dengue fever, is also a very real issue.  Can the Ministry provide some more sustainable supervision and enforcement efforts, as well as greater presence in the area?  This will certainly help the residents there.

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Harassment by Loansharks

     Dr Lam Pin Min: Mr Chairman, there were a total of 4,755 loanshark harassment cases reported in 2007, down from the peak of 5,240 in 2006.  This decline has been attributed to tougher measures undertaken by the authority to crack down on these unlicensed moneylending activities. 

     Currently, the penalty is meted out to people involved in harassment activities related to illegal moneylending.  It carries caning as well as a jail term.  Yet, in spite of these seemingly tougher measures, public harassment by loansharks and their runners continue unabated.  It is not uncommon within our constituency to witness explicit works of art, using red paint by runners or loansharks in their attempt to force debtors to pay up.  Sometimes, harassment work carried out affects innocent victims who had just moved into the flat, which once belonged to a borrower.  Affected residents often feel frustrated that nothing can be done soon enough to help resolve the harassment and embarrassment caused. 

     In addition, many feel threatened and fear for the safety of their families.  Very often, handphone contact numbers of loansharks are scribbled on the walls, and many of my affected residents actually did call up the numbers to explain the mistaken identities, but to no avail. Surely, the Police force will be able to work with the telco to track down the identities of moneylenders and to bring them to justice.  The Police should also step up patrol in affected units, lay ambush or even set up CCTV outside corridors of involved households to deter such regular harassments.

     Unlicensed moneylending seems to be a lucrative business, in spite of the tough penalties imposed.  Harassment by loansharks, therefore, is expected to increase in view of the credit crunch.  And, paradoxically, against our backdrop of an efficient and draconian law enforcement environment, illegal moneylending seems to be flourishing.  I urge the Ministry to step up enforcement actions or even impose harsher punishments in order to curb and, hopefully, eradicate illegal moneylending activities in Singapore.

Public – Private Cooperation in Criminal Investigations

     Mr Arthur Fong: Sir, in last year's COS, I applauded our Home Team's efforts towards extending the network of public security cameras.  That was doubled from what it was previously and installed in more areas across Singapore.  With the security environment that proves to be a challenge even in the best of economic times, I urge MHA to continue its efforts towards using CCTVs to assist in crime prevention, deterrence and investigation.

     As the Police has confirmed that there had been a marked drop in crimes in areas where the CCTVs have been installed, I suggest we can perhaps move to another level.  I urge the Police to consider encouraging private and business owners, in a coordinated fashion, to align their resources – in this case, security cameras that are already installed at or near their premises to those of the Police.  This can enlarge the coverage footprint, fill in the gaps in reducing costs for the Home Team associated with installing cameras in areas that are covered by businesses. 

     Let me cite Taiwan as an example.  It is common to watch on television news, coverage of a crime where footages from CCTV cameras, belonging to businesses around the scene of a crime, were used to piece together evidence that helped the Police better identify the suspect, the mode of transport and if the perpetrators had any accomplices.  The authorities there urged shop owners to consult with the local authorities how best to locate the CCTVs for mutual benefit.  When a series of shop owners or banks combined this coverage with that of the Police, the CCTV footage can serve to play a big part in the initial investigation or management of a crime.

     I propose that, perhaps, a unit within the Home Team be tasked to do this and develop within this unit, specialist skills, procedures, technology adaptation and development.  This will augment specialist teams in the Home Team and, perhaps, even be a resource to be deployed to audit certain security functions for large-scale events.

Drink Driving

     Dr Teo Ho Pin: Sir, in 2008, 22 persons died and 213 were injured as a result of drink driving accidents.  Despite the Police campaign to fight drink driving, 3,586 motorists were arrested for drink driving.  This clearly reflects the irresponsible attitude of motorists in maintaining road safety in Singapore.  Sir, every drink driving related death is one too many.  We must continue to send a strong and stern message to motorists to keep our roads safe.

     I commend the Traffic Police for launching several Anti-Drink Drive initiatives, including ringfencing enforcement strategy at entertainment outlets.  These efforts have, indeed, reduced the number of drink driving incidents. But there are many other motorists who drink alcohol at private parties and premises and, thus, may escape the ringfencing enforcement and road blocks.  We need to step up our enforcement and public education efforts on drink driving.

     Sir, while I do not condone drink driving, I do feel that our penalty regime for drink driving is too stringent and inflexible.  Drivers caught with drink driving, exceeding the prescribed alcohol level, will be charged in courts and face suspension of driving licence.  For many of these offenders, the loss of licence means a loss of employment, which causes severe hardship to their family members.  Some of the offenders may be non-English speaking and have low educational level.  Therefore, they are unable to pass the new driving licence theory and practical tests.  As a result, many have lost substantial income to support their families.

     Sir, I wish to propose to the Ministry to consider a Work Drivers' Licence Scheme, as practised in Queensland, Australia.  The scheme allows the courts to grant a work licence, called restricted licence, which allows the offender to drive for the purposes of employment only.  The courts will impose limits upon the granting of a work licence such as:

     (i) times when the vehicles may be driven;

     (ii) purpose for which a vehicle may be driven;

     (iii) class of vehicle which may be driven;

     (iv) whether other persons may be in the vehicle; and

     (v) the need to keep a log-book of all trips undertaken.

     The holders of work licences are prohibited from having any alcohol in their system while driving, ie, a 0% blood alcohol limit applies.  Sir, this system will provide some flexibility in reforming drink driving offenders.

Road Safety

     Mr Arthur Fong: Mr Chairman, most drivers of heavy vehicles, such as lorry prime mover and cement mixer, are paid on a per trip basis.  They work long hours to maximise the time on the road to as many times as possible on the trips.  Hence, it is understandable that, although they have a speed limit of not more than 60 km per hour, it is common to see them violating the speed limit on the road.  These vehicles are installed with speed limiters, as required by law.  Speed limiters prevent vehicles from travelling beyond their speed limits.  They are required by law, for buses with a maximum laden weight of more than 10 tonnes, and more than 12 tonnes for other vehicles. 

     Some continue to drive, even though their speed limiters are not working, until the law catches up with them or until they kill someone on the road, as it happened on 3rd January 2009 on the PIE.  Last year, 178 drivers of heavy vehicles were caught speeding, up from 164 in 2006.  The number of summonses climbed from 1,109 to 1,160,  After more public complaints, our Traffic Police mounted operations to curb heavy vehicle speeding.  Notwithstanding this, heavy vehicles continue speeding on the roads, violating their speed limits.  Sometimes, I wonder, Mr Chairman, if the speed limiters are efficient, as I suspect most heavy vehicle drivers ignore the speed alert.

     In the first half of the year, about 1,400 summonses were issued to drivers of heavy vehicles for violation, such as speeding and tempering with their speed limiters and road hogging.  We only need to witness the number of heavy vehicles on the TPE or Tampines Avenue 10, in the direction of the TPE.  It is common to see heavy vehicles, such as lorries and cement mixers, hogging the overtaking lane on the extreme right lane.  It is also common to see them driving at speeds over 80 km per hour.  If I may quote the President of the National Safety Council of Singapore: "Compared to an ordinary car, it's harder for a heavy vehicle to brake, as there will be greater momentum pushing forward."  At that speed and with the load that they are carrying, when confronted with an emergency, they cannot brake in time.  When involved in any accident, the outcome can only be fatal. 

     So I urge the Home Team to increase enforcement to ensure and enhance the road safety of heavy vehicles for all our road users.

          The Chairman:  Order.  The Deputy Leader of the House wishes to move a motion.

     Thereon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House.

has been conducted only since 2006, it would be premature to rush in and impose compulsory audit immediately.  There are no current plans to make the audit compulsory but we may consider doing so in the future.  We believe time has to be given for the industry to adapt to the changing situation and the audit requirements.

6.30 pm

     Dr Teo Ho Pin and Mr Lim Biow Chuan have asked about Home Team resources. We are reviewing how we can increase the number of officers on the ground to alleviate some of the stress faced.  Police will increase recruitment this year by a further 250 officers, bringing the total number of vacancies to be filled to 700. Most of these officers will be deployed at Neighbourhood Police Centres (NPCs). 

    The Home Team has embarked on a publicity and outreach campaign. The Ministry of Home Affairs (MHA) will also be introducing a Home Team Merit Award (HOME Award (Polytechnic), targeted at new and existing polytechnic students. Under this award, successful applicants, who signed up with the Home Team, will have their full tuition fees paid for and receive a monthly allowance of $1,000.

    We will also enhance our resource management. We are piloting a series of courses to sensitise officers and supervisors to fatigue and how to manage its consequences. This will, however, be a long-term effort. We are also working with MOF and external experts to determine the optimal level of resources for sustainable management of increasing security demands. But, at the end of the day, expectations have to be set right. Our Police Force is lean when compared with other agencies and we have to bear that in mind.

     Ms Ellen Lee spoke about non-urgent "999" calls. "999" calls are grouped into urgent calls and non-urgent calls. Urgent calls include cases where a crime is in progress, or where someone is in danger. Non-urgent calls include situations where there are no imminent threats to life or property such as noise-related nuisances and sightings of stray animals. Many "999" calls do not require a Police response as they are not even Police matters in the first place. Reports of illegal parking at HDB carparks and noise pollution caused by renovation in HDB flats and shops, for example, are handled by the Housing Development Board (HDB).

     Police has in place a set of service standards for response times to "999" calls. Urgent incidents should be attended to within 15 minutes of the call for 87% of the cases; non-urgent incidents within 30 minutes for 90% of the cases.  Police has been able to meet these service targets to-date. In 2008, Police received 1.5 million "999" calls and responded to over 320,000 incidents. Close to 60% of the calls to Police are nuisance calls and 57% of incidents responded to are non-urgent incidents.

     So whenever we debate in this House, we only look at the Police's response. People seem to forget that the public also have a responsibility to use this resource responsibly.  And in terms of 60% of 1.5 million calls being nuisance calls targeted at the Police, I think it should bring home to the Members of this House the kind of constraints the Police work under. Therefore, the public has a part to play in this. Public resources should be used responsibly.  The Police should not be treated as a free resource which can deal with any complaint just because it is convenient to call them at any time round the clock. People who call the Police when their neighbour's karaoke singing is too loud, or if they spot a snake, are potentially taking the officer away from a real emergency which may result in injury or loss of life. In many jurisdictions such as New Zealand and London, the Police do not despatch immediate resources for non-urgent calls. Ms Ellen Lee suggested having a separate telephone number for the public to call in certain non-urgent cases. There are, in fact, existing hotlines for the public to call in relation to noise and other issues but not all are manned round-the-clock. Our experience has been that, nevertheless, callers to the Police typically tend to consider all their problems as urgent. But we will not rule out Ms Lee's idea.

      Now, let me deal with the points Mr Siew made on the need to reform the offence of nuisance, and his personal experience. But let us look at it fairly. There was a complaint which had been made which had to be investigated.  Police went down and they observed what was happening.  Based on his own account, they did not intervene. Finally, they asked his colleague some questions. After checking with their superiors and within about an hour, Mr Siew and his partner were told they could proceed with what they were doing. There was no further action and the complaint was obviously treated as non-meritorious. So what do we take away from this?  First of all, Mr Siew will accept that complaints when made to the Police, have to be investigated even if it involves someone as important as Mr Siew.  It would be difficult for us to tell the Police that whenever Mr Siew is involved, there should be no investigation.  Nevertheless, it was dealt with openly and transparently. They went down, they looked at the incident, they spoke and they went away.

    Mr Siew talks about transparency.  What about identifying the complainants? Sir, 40% of the crimes in Singapore are solved with the assistance of the public by the Police. We treat the public as our partners in this. That is why Singapore is one of the safest cities in the world. Do you want to make all complaints public? What impact do you think that will have on civic-minded citizens who want to file a complaint?  Many people will start saying, "Why would I want to file my complaint when my name is going to be published?"  If the case goes to Court, the complainant may well become public. 

    On Mr Siew's suggestion that the Police's action to investigate on receipt of the complaint was politically motivated, I regret that that suggestion was made. It should not have been made. I am not sure of the precise circumstances because Mr Siew has not told us about this before.  But as I have said, if a complaint is received, then the Police have to look into the complaint. Let me assure Mr Siew that when complainants call up the Police, the way they will describe the event and what is happening will be more graphic and will make it sound more serious than may actually have been the case from Mr Siew's perspective. In fact, as I have said earlier, the problem that the Police is facing is that they receive up to 60% nuisance calls, and 57% of the incidents they respond to are, in fact, not urgent. And, often, the Police should never have been involved, but the Police have no choice.

     Let me make this point. I earlier spoke about the public partnership with the Police. There is a very high degree of trust in the Police in Singapore. Singaporeans have that. That is a very valuable asset. Members of the House, citizens of Singapore should not fritter away that asset lightly.  My Ministry and the Police are not intending to let that asset be debased by allowing the Police to become a tool for dirty politics. The integrity and impartiality of the Police Force should be beyond reproach. And that has been, and will be, our policy.

     Mr Siew also spoke on the proposed "move-on" powers. We have been reviewing our framework for managing public order so as to be more accommodative of cause-related and political activities. This is always an exercise of judgement, balancing different imperatives. The result has been a gradual shift in the policies relating to such activities.  For instance, there is no longer any need for permit application for indoor political events. As for outdoor political activities, the Speakers' Corner was established to provide an outdoor venue to address this. Recently, besides public speaking, protest and demonstration activities were also accommodated, and conditions for its use were further liberalised. The review of our public order laws is part of this on-going process to evolve and change in tandem with societal change. The scope and operation of such powers will certainly be debated in Parliament when the Bill is presented.  It is somewhat premature to deal with them at this stage on a Bill which is not even present before the House.

     Let me now end off by addressing one further issue - cyber crime, which Dr Teo Ho Pin has spoken about. The Internet is today an integral part of most people's lives. In 2007, about 74% of Singapore households had Internet access. An estimated 58.6% of the local population are Internet users.

     The greatest challenge in dealing with cyber-criminals is the borderless and anonymous nature of the Internet.  Organised crime syndicates have realised that this allows them to operate from anywhere without exposing their true identities. They have thus adapted their modus operandi. One trend we have noticed is that of drug traffickers befriending women through social networking sites and then using them as drug couriers.  Such groups enlist the help of women through false identities and empty promises, preying on their good nature and exploiting their vulnerabilities. Children, too, may become victims of cyber crime.  Senior Parliamentary Secretary Masagos Zulkifli will share more about specific efforts on that front.  

     To tackle cyber crime, Police has forged close alliances with law enforcement agencies. In the ASEAN region, SPF is known for its cyber crime capabilities and regularly organises highly regarded and well-attended cyber crime investigation courses. Police also works with various partners in pushing out cyber-wellness programmes to the community.

    MHA will continue to be abreast of trends in cyberspace which have law and order implications. We have not as yet created any specific offences to deal with cyber-bullying and other such acts, preferring instead to work within our current legal framework. This approach is currently adequate, but we will watch developments in countries which have moved ahead and adopt their best practices where appropriate.

      We will continue to maintain a lean and effective Home Team, constantly refining our mission and methods, and optimising our resources in every possible way. With support from the public and our partners, I am confident that we will be able to maintain the safe and secure environment we enjoy today.

     The Senior Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee): Sir, let me now address issues relating to foreign workers, treatment of prisoners, vice and loan sharking.

    Sir, Mr Arthur Fong is concerned that foreign workers congregating in large numbers in various parts of Singapore may turn disorderly and cause law and order problems.  On the whole, foreign workers living here are law-abiding.  While such gatherings may cause some social disamenity, they generally do not disturb the peace or involve unlawful activities.

     Recent groups of foreign workers gathering at MOM – I think Mr Fong alluded to them – were there primarily to seek assistance to resolve outstanding disputes with their employers, not to cause trouble.  Indeed, MOM officers helped them with their claims.

    Sir, the vast majority of foreign workers respect our laws.  They know that the authorities here are impartial and professional and will look into their grievances.  They are aware that if they breach our laws by staging demonstrations or protests, whether at MOM or elsewhere, Police will have to enforce the law and prosecute or repatriate them.

    I assure Mr Fong that MOM and the Police have been working closely together to enhance the operating protocols for handling such incidents.  However, the key is to address this issue upstream.  Hence, in January this year, in this House, the Acting Minister for Manpower shared that his Ministry has introduced early intervention measures to detect non-payment of salaries and stepped up mediation efforts to ensure that employers honour their obligations to their workers.

     Interaction between the Police and foreign workers is ongoing.  That is another approach.  Police visits foreign worker dormitories regularly and collaborates with dormitory operators and their security agencies to ensure that the workers maintain good behaviour.  Leveraging on CSSP initiatives, foreign workers are apprised of law and order issues and familiarised with our social norms.  Some foreign workers are involved as crime prevention ambassadors themselves.  Such ongoing interaction is useful because it allows Police to effectively detect and deter potential law and order problems before they escalate.  In any event, should any public order incidents occur, Police will deal with them swiftly and firmly.

6.45 pm

     Let me now turn to the issue of assaults in our prisons, raised by Ms Sylvia Lim.  As the incident Ms Lim mentioned is currently before the Courts, I am sure she will understand that I cannot go into the details of the case.  But let me address her queries generally.

     Sir, I will assure Ms Lim and the House that Prisons has well-established security procedures and measures in place for the secure and safe custody of inmates under its charge, and these include regular patrols, muster checks, and interviews by Prison officers who act as personal supervisors. Inmates who feel threatened or are assaulted have every opportunity to share this with his personal supervisor or other prison officers.  That is the environment that we are operating under.

     Let me assure Ms Lim that our prisons are among the safest in the world.  Over the last three years, the number of major assaults on Prison staff and inmates, per 10,000 inmates, was 16 in FY 2005; it went down to 15 in FY 2006 and went up slightly to 22 in FY 2007. This is low by international norms.  There are actually a lot of figures that compare us very well with other countries.  Let me cite an example of New Zealand, which is 46 assaults per 10,000 inmates.

     Ms Lim then asked, why do these incidents happen at all?   Prison authorities will not tolerate any form of assault by inmates and indeed will spare no effort to ensure that those guilty are brought to task immediately. Whilst Prisons has in place effective security procedures and safeguards, it is unrealistic to expect Prison authorities to guard against every conceivable eventuality especially in the context of how the inmates interact with each other in the prison setting.  From time to time, assaults amongst inmates do occur.  Inmates are therefore in a sense responsible also for their own safety.  They should cooperate with Prison authorities by complying with the rules and regulations and not engage in risky behaviour themselves, for example, bullying other people, that may lead to their own harm.  As I have said, the key point really is that inmates who are threatened or in danger have ample channels to expeditiously seek assistance immediately, for example, cells have distress alarms or intercoms.

      Mr Chairman, issues which the Home Team deals with are complex.  Solutions are often alloyed as there is no answer which pleases everyone.  People may agree about law and order but they are not always agreed on how it should be maintained. To what extent should our measures go?

      Several Members have raised issues relating to vice and loansharking.  These two issues illustrate how we need to strike a balance between competing considerations.  As we do so, we steer by certain fundamental principles, always bearing in mind that our approach must be calibrated, and our solutions pragmatic and workable on the ground.  

      Mr de Souza and Dr Lateef raised concerns about the vice situation.  As Members are aware, prostitution is not an offence in Singapore.  We recognise that it is not possible to eradicate it and forcing it underground will lead to the greater likelihood of involvement by triads and organised crime, the trafficking of women and public health risks.

     Dr Lateef said that more should be done about the vice situation in Geylang. Substantial Police resources are indeed dedicated to enforcement efforts against prostitutes who solicit in public and pimps who force women into prostitution.  As we know, Geylang is a key focal area.  That is why Police has installed CCTV cameras in Geylang.  While CCTVs aid in general crime prevention, they also have the salutary effect of deterring prostitutes from soliciting.

     Like I have said, Police has intensified enforcement - they conducted some 1,450 operations last year and arrested some 5,000 foreigners.  This compares with 950 operations and the arrest of 5,400 foreigners the year before.  Such offenders are repatriated from Singapore and banned from re-entering. As for those who force women, local or foreign, into prostitution, we take tough action under our laws against them.

      Mr de Souza translates the number of vice-related arrests to about 100 a week. Sir, I suggest we put this figure in context, which is about 190,000 tourists entering Singapore weekly.  It is possible to tighten up further on checks and screening on female tourists but this will cause delays and inconvenience and hamper our efforts to promote tourism.

     Mr de Souza is concerned that vice is spilling into the heartlands.  Let me assure him that only 1.35% of the total arrests for vice-related activities were made in our HDB heartlands last year.  The Duxton area actually has very few residential units nearby.  It comprises primarily entertainment outlets, and is visited mainly by those who patronise these outlets.

     I assure Mr de Souza that CID is geared up to counter what he calls a "disturbing trend". CID was reorganised last year into three Specialised Crime Investigation Branches, supported by a Specialised Crime Expert Branch. With this, CID now has a larger pool of trained officers to deploy for anti-vice operations.  This is of course an assurance to Dr Lateef too.  Also, in November last year, powers under the Women's Charter were extended to selected Police officers in all Land Divisions, enabling more officers to take on enforcement responsibilities.  This is something that I had talked about before.  It has happened, so CID is indeed geared up for this fight.

      Another component would be the grassroots, and I think Dr Lateef takes a very active role in this.  Grassroots are also engaged through CSSP initiatives that complement Police's efforts.  So, in Geylang, grassroots leaders and residents – and I am sure Dr Lateef knows that – have initiated monthly patrols at the upper lorongs to monitor the situation and provide feedback to the Police. This is very valuable.  Regular dialogues involving Geylang business owners, residents and the Police have also been constructive and yielded positive results.

     In all these, I take this opportunity to commend Dr Lateef for taking the lead and walking the ground with her grassroots leaders.  I want to assure her that MHA will continue to work with her to keep the situation in Geylang under control.

      Is there more that we can do beyond enforcement?  Mr de Souza speaks about plans in the UK to criminalise the act of paying for sexual services with women who have been trafficked into the UK or who are working for a pimp.

     Sir, let me say that different countries take different approaches in accordance with their social conditions and political situations in tackling vice.  None of these approaches has emerged as the best solution.  The UK law actually has not yet come into force.  It is difficult to gauge if it will be effective and, indeed, a serious concern is whether it will drive the problem deeper underground instead of mitigating it.  Moreover, unlike the UK, the trafficking of women into Singapore for vice is not a problem. But nevertheless, let me just let Mr de Souza know that we are watching and considering developments overseas, particularly when there is a significant harm to be prevented. We will monitor how this UK law works out.

      Mr de Souza's next point is about shops selling novelty sex toys.  Such shops do not require a Police licence to operate.  However, Police advises these shops to display their wares discreetly.  Articles which may offend or embarrass others should not be in plain view of the public.  Objects which promote offences such as bestiality and necrophilia are not permitted.  In addition, such shops should not admit persons below the age of 21.

      Mr de Souza raised the example of how Scotland licenses sex shops.  Should we similarly restrict where these shops can operate?  Our current approach is that premises designated for commercial use may be used for any legitimate business purpose.  Singapore is a compact city state where most commercial areas will have residences nearby.   Moreover, with the Internet and other modern technologies, restricting where these retail outlets can operate will not necessarily insulate our children from such influences. 

      The key, really, is for parents, teachers and caregivers to provide appropriate sex education to their children and youths.  Having said this, I thank him for raising this issue, and I assure Mr de Souza that MHA will monitor the situation.  And we will also study how the Scottish legislation works.

       Dr Lam Pin Min and Mr Lim Biow Chuan voiced concerns on harassment by loansharks.  Last October, I reported in this House a drop of about 9.2% in loansharking and related harassment cases - from 5,240 in the first half of 2007 to 4,759 cases in the same period last year.

       Unfortunately, there was a surge in the number of harassment cases reported in the last quarter of last year, which bumped the total number of cases last year up to 11,400, compared to 9,366 cases a year before. This sharp rise occurred in tandem with the deteriorating economic situation.

       But let me assure Members that we are not letting up in our fight against loansharks.  Each harassment report is taken seriously.  Statements are recorded from witnesses and all credible leads are pursued.  This includes numbers splashed on the walls – I think that is the point that Dr Lam also mentioned – based upon which Police works with other agencies like IDA and the telcos to try to identify the loansharks, persons who assist them, and their runners.  Police has intensified enforcement efforts, including enhancing patrols at loanshark-prone areas. But let me share that Police's efforts are focused more and essentially on tackling syndicates because when you bring down a syndicate, you will stop quite a number of harassment cases from perpetuating.  More arrests have been made and more syndicates crippled last year compared to the year before: 505 arrests compared to 390; nine syndicates crippled compared to six. This is good news and indeed the Police will continue to press on.

      As Dr Lam urges, we have also toughened our laws.  The Moneylenders Act was recently amended so that loansharks themselves will be liable to caning if their runners harass and cause damage or injury on their directions.  The aim is to make loansharks equally liable for instigating such acts.  To achieve greater effect from tracing telephone numbers, subscribers of telecommunication services used in loansharking will be presumed to have assisted in the business of an unlicensed moneylender, unless proven otherwise.  That is also something that we had introduced last year in the Moneylenders Act.  And also the  amendments eased access to legal loans, paving the way for borrowers in genuine need of cash to borrow more easily from licensed moneylenders.

     We have galvanised the community in our efforts.  A good example is the PROWL project.  Under this initiative, Police NSmen living within the jurisdiction of the Ang Mo Kio Police Division maintain a look-out for loanshark runners.  But I would say that the community can do more.

     As HDB flat owners are particularly vulnerable to intimidation by loansharks, the community can also harden their neighbourhoods against harassment.  One way is by installing more CCTVs.  In this regard, Police and Town Councils co-fund the installation of mobile CCTV systems to address local safety and security concerns, including harassment by loansharks.

      Dismantling loansharking syndicates is not easy because loansharking is a form of organised crime – persistent and insidious in nature.  We must take a hard look and be prepared to take resolute action to address the heart of the problem if it persists.

      On the demand side, so long as there are people who borrow from loansharks, the problem of loansharking will persist.  But studies show that many borrowers are excessive gamblers, not borrowers in need of urgent cash for genuine purposes.

      I had mentioned in this House that we were considering making borrowing from loansharks an offence.  We are still studying the pros and cons of doing this.  This will hold accountable persons who endanger the safety and security of the community through their reckless borrowing and gambling habits. Moreover, from the arrests made, we know that many borrowers eventually become part of the loanshark organisation, acting as runners to carry out harassment and vandalism.

7.00 pm

       Nevertheless, we have not rushed into criminalising borrowing.  We recognise that there are borrowers in genuine financial need 

who turn to loansharks because they have no collateral to pledge for their loans.  In this regard, I hope that by modernising the moneylending regime, we will dampen the demand for loans from loansharks and we can focus our efforts on dealing with these reckless borrowers.  In the meantime, we will press on with existing measures and enforcement efforts.

     Sir, let me conclude.  The issues of loansharking, vice and the public sense of safety are matters which concern the community.  We will continue to seek views from a wide spectrum of stakeholders and adopt pragmatic solutions that balance the competing considerations.

     The Senior Parliamentary Secretary to the Minister for Home Affairs (Mr Masagos Zulkifli B M M): Mr Deputy Speaker, I will speak on our efforts to prevent crime, including helping the vulnerable and partnering with private establishments.  I will also touch on drink driving and road safety involving heavy vehicles.

     Dr Teo asked about measures to prevent crime during the economic downturn.  Let me first say that the 2008 crime picture was positive compared to 2007.  However, with the economic contraction forecasted for 2009, Police is anticipating an increase in crimes such as theft, cheating, vice and loanshark activities as historically there is a correlation between crime and economic conditions.  The economic difficulties in other countries may also encourage illegal immigration.

     Police will continue to pursue swift and tough enforcement against criminals.  Senior Minister of State Ho has already spoken about Police’s enhanced enforcement in response to vice and loansharking.  Let me touch on the other areas raised by Members.  Theft-related crimes traditionally make up a large proportion of crimes committed, and are likely to increase in an economic downturn.  Yet these crimes are often the most preventable.  The key to reducing such crimes lies in public awareness and vigilance.

     Phone scams and other cheating offences are also likely to increase.  Scammers prey on our concern over loved ones.  The Police will continue to raise awareness of common modus operandi through the media, including SMS advisories and the Internet.  The community can play a part by making sure that their family members and friends stay vigilant against such frauds.

     Mr Arthur Fong has suggested encouraging private establishments to equip their stores with closed-circuit televisions (CCTVs).  This is indeed a good suggestion.  Frontline patrol officers already encourage storekeepers and commercial building management to install CCTVs where appropriate.   MHA has developed and published technical guidelines and best practices on video standards called the "Guidelines for Enhancing Building Security". However, we are mindful that CCTVs incur costs; business owners must weigh the benefits against the risks and potential losses they face.

     I would also like to thank Dr Teo for highlighting that the elderly and children require our special attention, whatever the economic situation.  Police recognises the vulnerability of the elderly and has stepped up its efforts to protect them from cheating-related offences and violent offences like snatch theft and robbery.  In 2008 alone, Police arrested seven serial robbers and snatch thieves who were responsible for a total of 35 cases against elderly victims.  Of the seven arrests, I am glad to note that three were made with the assistance of the community.

     The Police also partners the community on special crime prevention awareness initiatives that focus on senior citizens.  The "Elderly Crime Prevention Ambassador Scheme" launched in 2002 in collaboration with the National Crime Prevention Council, is still going strong. The number of crime prevention ambassadors has continued to grow, reaching 150.  In 2008, they conducted 138 Senior Citizens’ chit-chat sessions, reaching more than 79,700 senior citizens.  Another example is the "Eldercare" CSSP (Community Safety and Security Programme) project launched in Marine Parade in 2007. The aim of the project was to prevent crimes against the elderly through education and installation of alarms in their homes to protect them and their homes. Since the launch of this project, there has been no reports of crime in those homes.

     On crimes against children, the number of children abuse victims who suffered serious hurt or ill-treatment has actually decreased from 2007 to 2008.  However, we are worried about the increase in the number of children who were sexually exploited and are monitoring this closely.  Dr Teo has rightly mentioned the high risk of cyber-crime faced by children as they use the Internet.

     We have strengthened our legal framework to protect children from such crimes. The Children and Young Persons Act makes it an offence to commit obscene or indecent acts with any person below 16 years of age.  We also recently introduced the Penal Code offence of  "sexual grooming" which criminalises the acts of sexual predators who prey on children including those who groom children over the Internet.

     Police has built up capabilities to fight cyber-crime.  For example, the Criminal Investigation Department (CID) has a Technology Crime Division specialised in investigating crimes related to computer misuse.  Police also partners the National Crime Prevention Council (NCPC) to disseminate crime prevention messages related to cyberwellness to frequent computer users.  In February 2008, Police and NCPC supported the Cyberwellness SUMM.IT which targeted students, IT experts and teachers, and covered topics such as online safety and security.  NCPC also collaborates with MOE on cyberwellness programmes for schools.  But the role of parents, as the immediate family member, remains most crucial. They should supervise and inoculate their children from as young as possible from visiting objectionable websites. Putting computers in full view of all family members will definitely help.

     Let me now turn to traffic-related matters.  Dr Teo has asked about enforcement and public education efforts on drink driving.  The Traffic Police enhanced its enforcement strategies in 2008, including the ringfencing of particular areas.  The initial results are encouraging.  With the increased enforcement, the number of persons arrested for drink driving in 2008 fell to 3,586 from 4,010 in 2007, or by about 11%.  However, we cannot afford to be complacent.  Over the past 10 years, the number of persons arrested for drink driving has more than doubled from 1,513 in 1999.  Police must continue with its tough enforcement efforts in 2009.

     In December 2008, Traffic Police launched its annual anti-drink driving campaign with the key message, "If you drink, don't drive."  To expand its reach and engage young drinkers, Traffic Police has also produced an Internet game highlighting the effects of alcohol on driving, as well as the severe penalties for drink driving.

     Dr Teo has asked the Ministry to consider a "Work Drivers Licence Scheme" to allow drink-driving offenders restricted driving expressly for employment, to lessen their financial hardship.  While I understand Dr Teo's concerns, such a scheme would lower our enforcement standards, and is incongruent with the strong stance against drink driving, which Dr Teo has also supported.  Even Tasmania, which has the same scheme, does not award this for people who have been convicted of drink driving.  Drink driving is therefore for us, a very serious offence and we take a zero-tolerance approach.  Our stand has not changed in this economic downturn.  In addition, professional drivers, especially those transporting passengers, have an added responsibility for the safety of others.  Drivers who have consumed alcohol are needlessly and recklessly putting lives at risk.  I urge all members of our community to support Police’s effort by ensuring that your loved ones do not drink and drive.

     Mr Fong has raised the issue of traffic violations committed by heavy vehicles.  Accidents involving heavy vehicles are likely to cause extensive damage and more serious injuries.  Fatal accidents involving heavy vehicles increased from 12 cases in 2007 to 18 cases in 2008.  In view of this, Traffic Police stepped up its enforcement efforts against traffic violations by heavy vehicles in 2008.  Summonses issued to heavy vehicles for various moving offences almost tripled from 1,160 in 2007 to 3,030 in 2008.  Traffic Police has also actively engaged the heavy-vehicle industry through Road Safety outreach and education programmes, and will be sending letters to all Class 4 and 5 drivers, to remind them about the importance of abiding by the traffic rules and giving way to other road users.

     Traffic Police has also considered the use of digital tachographs, which Assoc. Prof. Kalyani Mehta suggested in Parliament on 22nd January this year.  Digital tachographs record but do not limit a vehicle's speed.  Currently, we have a speed limiter regime for heavy vehicles but we recognise that the technology is somewhat dated.  Traffic Police is exploring a new solution to limit the speed of heavy vehicles, based on Global Positioning System technology.  We will release more information when we have completed the study.

     Most accidents involving heavy vehicles are however not speed-related but rather the result of poor driving, for example, failing to give way or to keep a proper lookout. There has been no fatal accident involving a heavy vehicle due to speeding in the past three years.  It is important therefore that vehicle owners ensure that their drivers are properly trained and have adequate rest.  Comprehensive safety checks should also be put in place, including systems which monitor and audit driver behaviour.

     Mr Lim Biow Chuan has shared his concern on the issue of more motorcycle fatalities in 2008. Increasing the number of officers on the ground, as Second Minister Shanmugam has mentioned, may help. But just as building a safety mindset is key to reducing accidents caused by drivers of heavy vehicles, it is as much for motorcycle riders. Traffic Police has already announced last week that they will be incorporating more safety education into the curriculum for learner motorcycle riders.

     Sir, let me conclude by thanking the Members who have spoken.  The year ahead will certainly bring many new challenges. But I am confident that, together with all our Home Team partners, we will overcome them, as we have done before.

          The Chairman:   Any clarification?  Mr de Souza.

     Mr Christopher de Souza:    With respect, I do not understand two points in reply to the questions.  I do not see the logic in them.  It seems that the Ministry of Home Affairs is using the 190,000 tourists per week to justify the 100 vice arrests per week.  I am sure MHA will not just use the 190,000 tourists per week to justify 100 drug traffickers per week.

     Second, on the ease of access to the Internet and purchase of items on the Internet - how can that be used to justify a lack of enforcement or regulation against the sex shops sprouting up next to schools?  I am in favour of pragmatism being married with principle, but I must say that I am not in favour of weak practical arguments.  And I display this with two points and two questions.

     First, on principle: do we want to see the prostitution numbers reduced?  And second: if we, on principle, do not agree that a woman should be pimped or trafficked, then ought not we to look at the UK suggestions very seriously?  On principle, do we want to see sex shops sprouting next to schools?  I am sure the answers to these questions are all obvious.  So I ask that practicality and pragmatism be put in their place and principle override them.

     Assoc. Prof. Ho Peng Kee: Sir, we cited the figures so as to put things in context because Mr de Souza cited 100 arrests per week.  The majority of these people who are arrested are foreigners who come to Singapore on social visit passes.  90% of them, in fact, come on social visit passes.  So I cited the figures to show the ease with which people can come into Singapore.  This is part of our effort to promote tourism in Singapore.  So when you let in 190,000 tourists into Singapore every week, you will get some who will come for these illegitimate purposes.  And that is the context to the figures.

     The second point is about sex shops, and about trying to shield young people from knowledge about these toys or sex apparatus.  What we are saying is that young people nowadays, in fact, are very knowledgeable.  I am sure Mr de Souza, if he has children, will know that.  So if you go into the Internet, you will see all kinds of things proliferating there.  Will young people go into these sex shops to buy?  I do not think so, and indeed like I have said, the shop operaters know that those under 21 are not supposed to go into these sex shops.  And that is the context in which this debate takes place.

7.15 pm

     Mr Siew Kum Hong:    Mr Chairman, I have a few clarifications for the Second Minister.  My first fact clarification, Sir, is to highlight that no where in my speech did I ask for the complainant to be identified and I did not refer to that as a flaw in the process.

I had initially considered making that point but I was undecided, and I decided otherwise after a conversation with the Second Minister himself yesterday where he convinced me of the merits of not asking for that.  So I think the Second Minister is mistaken when he noted that I asked for that.

     Sir, my second clarification for the Second Minister is that he suggested that I somehow feel important and deserving of special treatment.  I assure the Second Minister that I am far from an important person anyway.  I certainly did not feel special.  And I think nowhere in my speech did I ask for or suggest that I expected any form of special treatment.  Nobody is above the law and I certainly did not in my speech suggest that anyone, least of myself, should be.  So I think the Second Minister was again mistaken there.

     Sir, I am getting to my question here.  My concern was not that I did not get special treatment.  My concern was over how the Police had handled this case.  When the Second Minister simplified the matter, and I think he over-simplified it, there was no explanation as to why the Police had taken about two hours from the first time they saw us to actually approaching us and asking us to stop.  So if indeed we had been a public nuisance, I think that the Police allowed us to continue being nuisances for two hours.

     So, in that regard, Sir, I would like to ask the Second Minister to confirm whether the Police is empowered to make decisions on whether to investigate or to interfere based on what is clearly evident and not whether a complaint was made, which I think is a little mechanistic.

     Sir, my final point for the Second Minister.  The Second Minister makes a very good point about trust between the Police and the community.  I certainly have no argument with that, I agree.  And I thank the Second Minister for clarifying that the Police will not be used for petty politics and that the incident was not politically motivated.  And that is precisely my point, Sir.  Greater clarity, greater transparency on the spot in explaining to me and my fellow volunteer what had happened, why they had taken action, and why they were letting us go and asking us to continue, that would have taken care of this entire matter.  I will not have had to make this issue in Parliament today.  So I think that is my point - there was no transparency in the way in which the Police had exercised their powers in this instance.  This is why I felt aggrieved.  So I would like to ask the Second Minister whether he agrees that the Police also has a role to play in maintaining this trust between the Police and the community by being transparent and clear in how they exercise their powers.

     Mr Shanmugam: Sir, on the first point on the identity of the complainant, I accept that Mr Siew did not specifically mention it.  But since he made the point about transparency, I was trying to work it out and I assume that he was referring to the identity of the complainant, but I am happy that that point is resolved.  As for feelings of "self importance", I do not think we want to blow this out of proportion.  It was a light-hearted way of my making the point that if the Police receives a complaint, then they have to investigate, whether it is Mr Siew Kum Hong's or someone else's.  And I will ask Mr Siew to take my comments in context.  It was not intended to suggest that he was in any way feeling self important.  But the fact is a complaint was received, they have to investigate without knowing that it was Mr Siew, probably, I assume.

     The third point about waiting for two hours.  Again, Sir, it is not as if I have the records here - I do not know what exactly happened - the fact that this complaint came about and the police officers went down to investigate is shown by the fact that when he raises this, I can only surmise as to what must have happened.  Depending on the nature of the complaint, the Police might well have felt that they would have needed to observe what was going on for a couple of hours.  And having observed and come to the conclusion probably that Mr Siew was not making a nuisance of himself nor was his companion, they probably asked some questions and then checked with their superiors and went off – open, transparent, clear – and Mr Siew knows exactly what was going on, and he was told he could carry on.  So, that is the point on the ground, the way it happened.

     Finally, as for greater clarity and greater transparency, one of the aspects of this debate is we probably seem to be coming to some common ground.  He accepts the explanations I have given and I thank him for that.  As to whether the police officers should have explained it on the ground, I have said this in answer to Dr Lateef's question.  The police are trained to deal with the people they interact with.  But, bear in mind, they also cannot reveal the nature of the complaint or the identity of the complainant.  So they work within some fairly close parameters.  But Mr Siew would have gathered from their questions and subsequent actions that a complaint has been made and they felt satisfied that the complaint was unmeritorious, and there was nothing more that needed to be proceeded with.  And that is really where the matter ends and he could easily have sought explanation from us much earlier, and this explanation would have been given if we could have known the facts a little bit better.  But, on the ground, today, we have a great asset, which is that there is a substantial bond of trust between our police officers and the people.  And I think we should do everything we can to maintain and strengthen that trust.

     Dr Lam Pin Min: Mr Chairman, I would like to raise a point of clarification for the Senior Minister of State with regard to loansharking.  It is heartening to know that MHA is sparing no effort in tackling the problem of loansharking.  But the surge in the number of cases over the past few months is definitely not very assuring to the public.  And I have come across more cases in my MPS about residents complaining about harassment by loansharks to the extent that some can even tell me that loansharks come at certain time and certain days.  And whenever the residents report that to the Police at the police post, the answer they get is, "There is really nothing much we can do.  This is under the jurisdiction of the CID".  I think this is not very reassuring to the public.  Whilst it is important to target the main syndicates, I think it is also important to nab the runners, so that they do not continue harassing the residents.

     Assoc. Prof. Ho Peng Kee: I agree with Dr Lam that that is not the line that the police officer in the station should give.  A report has been made, I think the answer should be "Yes, we will look into it.  We will work with the other police forces which, in this case, is CID".  And they do it at different ends.  CID tackles the syndicates but, on the ground, I think working with the residents and whatever leads that are available, the Police will also try to apprehend the runners.  So, for example, I have mentioned the placement of CCTVs, because the Police cannot be on the ground all the time.  So the judicious use of CCTVs, I think, can help in this process.  The assurance I give, nevertheless, is that whatever leads that the Police has, it will pursue.  And I hope that with the concerted effort by everybody, including the various measures that have been implemented, the numbers will be arrested.

     Ms Sylvia Lim: Sir, I have some clarifications, firstly, regarding the private security industry and, secondly, regarding the prisoner incident that I raised earlier.

     First of all, for the Second Minister, regarding the private security industry.  I would like to know whether the Ministry tracks the dropout rate of security officers who have been trained, licensed, and then fall out of the industry after three months.  Because, from my feedback, this is one of the challenges that the security providers face.

     Secondly, in relation to the prison incident, I heard the Senior Minister of State explain the various precautions taken to ensure that prisoners have recourse to protect themselves and to complain.  But from the report of the recent incident, it seems that the incidents occurred over a period of about nine days, and the injuries to the victim were rather serious.  And I am just wondering whether after that incident, there was any review taken by the prison authorities as to whether the existing channels of reporting are actually adequate and whether there has been any enhancement to that.  Earlier, the Senior Minister of State mentioned that there are panic buttons in the cells.  I am just wondering whether there are also other things, eg, closed-circuit TV.  Are there guards just stationed outside the cells, if so, why did anybody not hear anything?  Has there been any strengthening of the safety measures after that incident?

     Mr Shanmugam: Sir, I am not aware that the Ministry keeps track of officers who have specifically given up their licences, though, of course, at any given point in time, we have the total number of officers who have been given the licence.  But if I am wrong in any way, we will get back to Ms Lim.

     Assoc. Prof. Ho Peng Kee: Sir, I have said just now the case is before the courts, so I do not think it is in order for us to say anything which is related in any way with the case.  But as I have said just now, generally, the position in Prisons is that safeguards are in place, and these safeguards have worked to keep our Prisons one of the safest in the world.

     Mr Yeo Guat Kwang (Aljunied): Sir, can I seek clarifications from the Senior Minister of State, Assoc. Prof. Ho?  Before we amend the law to classify borrowing from loanshark as a criminal act, should we not consider a more severe penalty for those who purposely do not change the address in their ICs and go and borrow from the loansharks?  And would MHA work more closely with, say, HDB to ensure that all the residents in HDB, upon completion of the sale of the HDB flat, to change the address on their ICs?

     Assoc. Prof. Ho Peng Kee: Sir, in fact the penalty for not changing the IC under the National Registration Act is already quite severe.  If I am not wrong, it is either up to one or two years' imprisonment.  But it is a question of the courts meting out a punishment that fits the offence.  And in this case, certainly, if the person has not changed his IC to avoid loansharks coming after him, and knowing in the process that the innocent buyer will be afflicted, the prosecution will press for a deterrent sentence.

     On the other point, I agree that there should be closer collaboration between, say, the Police and HDB, to ascertain and see whether those who sell the HDB flats can be tracked to the next address.

     Dr Teo Ho Pin: Sir, I wish to thank the Deputy Prime Minister and his team for their comprehensive replies.  I also would like to commend the good work done by the Home Team.

     Sir, I beg leave to withdraw my amendment.

     Amendment, by leave, withdrawn.

     The sum of $2,682,538,100 for Head P ordered to stand part of the Main Estimates.

     The sum of $350,246,900 for Head P ordered to stand part of the Development Estimates.