Budget 2019: Building A Strong, United Singapore

February 19, 2019, 7:48 am

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Singapore Budget 2019

$6.1 billion for Merdeka Generation package includes Medisave top-ups, higher CHAS subsidies

$1.1 billion Bicentennial Bonus for Singaporeans, including GST Voucher cash payouts, 50% income tax rebate up to $200

$5.1 billion to fund measures such as ElderFund and CareShield Life subsidies; CHAS subsidies to be extended

Child entering Primary 1 in 2018 to receive over $130,000 in education subsidies by end of secondary school

$4.6 billion over three years to help firms and workers build capabilities to stay relevant

Higher payouts under Workfare, more support for older workers

Lower foreign worker quota in services sector; continued support for unemployed PMETs

Tax system to be made more progressive and resilient

Smaller duty-free alcohol allowance and GST relief for overseas shopping from 19 February 2019

Excise duty on diesel fuel increased from S$0.10 to S$0.20 per litre from 18 February 2019

30 per cent of total spending set aside for defence, security and diplomacy efforts

$6.1 billion Merdeka Generation Package unveiled
By Royston Sim, Deputy News Editor, Politics, The Straits Times, 19 Feb 2019

Finance Minister Heng Swee Keat yesterday delivered a generous but targeted Budget aimed at helping Singaporeans with healthcare costs and other expenses, and giving businesses and workers support to thrive in a changing global environment.

He unveiled a $6.1 billion fund that will subsidise healthcare for Singaporeans born in the 1950s, with extra subsidies for outpatient care and MediShield Life premiums, as well as Medisave top-ups for five years.

Called the Merdeka Generation Package, this will benefit nearly 500,000 Singaporeans in all, and is the second initiative of its kind after the $8 billion Pioneer Generation Package announced in 2014.

With Singapore commemorating its bicentenary this year, Mr Heng announced two initiatives to mark what he called a key turning point in Singapore's development - a $200 million community fund to match charity donations, and a $1.1 billion Bicentennial Bonus.

This special bonus includes GST vouchers of up to $300 in cash that will benefit 1.4 million Singaporeans, and a personal income tax rebate of 50 per cent, capped at $200.

These measures are part of Singapore's efforts to forge a caring and inclusive society, said Mr Heng, who presented his first Budget since being named as the designated successor to Prime Minister Lee Hsien Loong late last year.

Noting that support for globalisation was on the wane worldwide, Mr Heng also flagged longer-term domestic challenges such as ageing, social mobility, economic transformation and climate change.

Singapore should build on its strengths, he said, pointing to the country's multicultural society and openness to diversity.

Mr Heng also devoted part of his two-hour speech to the importance of keeping Singapore safe and secure. "We cannot take our peace, prosperity and stability for granted," he said.

That is why the Government will continue to invest a significant share of its resources - about 30 per cent of total expenditure this year - to support defence, security and diplomacy efforts, he added.

"This spending is significant, but indispensable," he said, adding that even more would be spent if needed to safeguard Singapore.

Turning to the economy, Mr Heng said efforts to transform it are bearing fruit, with economic growth of 3.2 per cent last year.

All 23 Industry Transformation Maps, which cover about 80 per cent of the economy, have been launched, he said, noting that productivity has grown by 3.6 per cent a year for the past three years.

But with global growth expected to moderate this year in an increasingly uncertain climate, he outlined measures to help companies and workers build deep capabilities so that they can stay relevant amid a wave of disruption.

The Government will spend $4.6 billion on this front over the next three years - $3.6 billion to help workers and $1 billion to strengthen companies.

Among the initiatives are a $100 million fund to help small and medium-sized firms (SMEs) scale up, as well as more aid for them to go digital, and new programmes to help workers pick up skills in areas like prefabrication.

But Mr Heng also flagged uneven productivity growth across sectors, with the service sector seeing a 3 per cent growth in S Pass and work permit holders per year, or 34,000 in the last three years.

Calling this trend unsustainable, he said: "Our workforce growth is tapering, and if we do not use this narrow window to double down on restructuring, our companies will find it even harder in the future."

To that end, foreign worker quotas for the service sector will be tightened in two phases from next year, especially for S Pass holders.

Mr Heng also outlined several targeted steps to help Singaporeans who are less well off.

The monthly income ceiling for the Workfare Income Supplement will be raised from $2,000 to $2,300 by next January. The maximum payout each year will also be increased by up to $400.

These improvements will cost an additional $206 million a year, and benefit nearly 440,000 Singaporeans in total, said Mr Heng.

With healthcare needs growing, he said a scheme that subsidises primary care and basic dental care for lower-to middle-income families will be improved and extended to cover all Singaporeans for chronic conditions.

A $5.1 billion fund has also been set up to fund long-term care support measures such as ElderFund and CareShield Life subsidies.

Despite these spending initiatives, Mr Heng also stressed the need to maintain fiscal discipline.

Recurrent revenues must meet recurrent spending in areas such as healthcare and defence, he said.

"Many countries have taken the easier route by funding these recurrent expenditures through borrowing. We must not do this, as such borrowing shifts the burden of paying for today's needs onto future generations. That is not the Singapore way," he said.

The tax system must hence be continually reviewed, he said, announcing that returning travellers will have a smaller allowance on tax-exempt overseas shopping and duty-free alcohol.

Overall, the Budget remains expansionary, with ministries expected to spend $80.3 billion - 1.6 per cent higher than the year before. An overall deficit of $3.5 billion is projected, which Mr Heng said will be funded by previous surpluses.

Singapore Business Federation chairman Teo Siong Seng said the Budget is a "well-balanced and progressive" one that encourages companies to continue to transform and prepare for the future.

Parliament will sit from next Tuesday to March 8, and MPs will debate the Budget as well as spending plans of the various ministries.

Bicentennial Budget for...
The Straits Times, 19 Feb 2019

"There were episodes in the centuries of Singapore's history where our island's fortunes waned due to external forces. These are sobering reminders that we have to constantly build up our security and resilience, and plan long term.

Singapore's success has roots in our port, which thrives on openness and connectivity. These traits have been forged into our identity as a people... We turn our size and strategic location into an advantage...

Like Sang Kancil, the small but quick-witted mousedeer, we can make our way in the world."

FINANCE MINISTER HENG SWEE KEAT

LOWER-WAGE, OLDER WORKERS

At the heart of Singapore's economic transformation are workers, said Finance Minister Heng Swee Keat. "Our ultimate goal is to enable our people to continue to have good jobs and opportunities, and to be at their best."

A range of support measures have been rolled out in previous years to help workers reach their fullest potential, he noted.

Yesterday, he announced that lower-wage workers will get higher payouts under the Workfare Income Supplement (WIS) next year.

Aimed at helping them supplement their income and Central Provident Fund savings, the enhanced WIS will see their maximum annual payouts increase by up to $400. This will take effect from January next year.

The qualifying income cap for the programme will also be raised from the current $2,000 to $2,300 a month. Older workers will continue to get higher payouts than younger workers.

The higher WIS payouts will cost an additional $206 million a year, bringing the total cost of the programme to $1 billion a year. Almost 440,000 Singaporeans stand to benefit from this.

Meanwhile, the Special Employment Credit (SEC) and Additional SEC schemes, which incentivise and encourage employers to hire senior workers, will both be extended for another year, until Dec 31, 2020. The SEC scheme subsidises the wages of Singaporean workers aged 55 and above who earn up to $4,000 a month, while the Additional SEC scheme encourages companies to hire workers who are above the re-employment age of 67.

To support the extensions, the SEC fund will be topped up by $366 million.

Other worker initiatives include an additional WIS payment of at least $100 for lower-income workers as part of the Bicentennial Bonus.

To help mid-career workers take up jobs in new growth areas, more Professional Conversion Programmes will be launched in blockchain, embedded software and prefabrication.

The Career Support Programme, which provides wage support for companies that hire mature and retrenched Singaporeans or those in long-term unemployment, will also be extended by two years.

SME BUSINESSES

Small and medium-sized enterprises (SMEs) got quite a lot of attention at yesterday's Budget, with the Finance Minister talking about supporting start-ups, enabling firms to scale up and how Singapore must adopt an "enterprise-centric" approach.

Chief among the initiatives announced was a Scale-up SG programme which trade promotion agency Enterprise Singapore (ESG) will launch together with the private and public sectors. This will help high-growth local firms identify how they can innovate, grow and venture overseas. ESG will also run a two-year pilot to help firms get advice on innovation opportunities and ways to commercialise technology from experts known as "Innovation Agents".

To give more funding to SMEs, an additional $100 million will be set aside for a new SME Co-Investment Fund III.

The eight financing programmes offered by ESG will also be streamlined into a single Enterprise Financing Scheme to be launched in October. This covers trade, working capital, fixed assets, venture debt, mergers and acquisitions and project financing.

The Government will also expand the SMEs Go Digital programme to cover a larger number and a wider range of cost-effective, pre-approved digital solutions. This programme aims to help SMEs adopt digital technologies.

Three sectors - accountancy, sea transport and construction - will also get their own industry digital plans, with more sectors to be added later.

But it was not all good news for small and medium-sized enterprises. In the service sector, the Government will be tightening the Dependency Ratio Ceiling, or the proportion of foreign workers a firm can employ.

This will go from 40 per cent to 38 per cent on Jan 1 next year, and to 35 per cent on Jan 1, 2021.

For the subset of S Pass workers - mid-skilled foreigners earning at least $2,300 a month - the quota will be cut from 15 per cent to 13 per cent on Jan 1 next year, and to 10 per cent on Jan 1, 2021.

LARGE FIRMS

Large companies will get more help to tap emerging opportunities as Singapore positions itself as a "Global-Asia node of technology, innovation and enterprise", said Finance Minister Heng Swee Keat.

Singapore should be "Asia 101" for global multinational companies looking to expand into Asia, he said.

At the same time, Singapore can be "Global 101" for regional companies ready to go international.

To draw greater value from trade networks, the Government will streamline and digitise trade processes further to raise efficiency. In this way, companies can get easier access to overseas markets and make better use of free trade agreements.

To encourage firms to embark on large-scale automation projects and raise productivity, the Automation Support Package will be extended for another two years, up to March 31, 2021.

There will also be an Investment Allowance of 100 per cent on the amount of approved capital expenditure, net of grants. The approved capital expenditure is capped at $10 million per project.

Just like for smaller businesses, larger companies will have to brace themselves for the tightening of the Dependency Ratio Ceiling (DRC) in the service sector. DRC is the proportion of foreign workers a firm can employ, from 40 per cent to 38 per cent on Jan 1 next year, and to 35 per cent on Jan 1, 2021.

For the subset of S Pass workers, the quota will be cut from 15 per cent to 13 per cent on Jan 1 next year, and to 10 per cent on Jan 1, 2021.

FAMILIES WITH YOUNG CHILDREN

Parents with school-going children will benefit from the Bicentennial Bonus, with additional support for their children's education.

There will be a one-off $150 top-up to the Edusave accounts of primary and secondary school students aged seven to 16.

This is in addition to the annual Edusave contributions they already get from the Government, which this year will be $230 for primary school pupils and $290 for secondary students.

Students aged between 17 and 20 will get a one-off top-up to their Post-Secondary Education Accounts of either $250 or $500, depending on the value of their home.

The top-ups are expected to be made by mid-2019 and will benefit about 570,000 students. They are estimated to cost the Government $140 million.

Finance Minister Heng Swee Keat also pointed out that the Government has been spending more on early education and care. It spent about $1 billion in the pre-school sector last year, more than 21/2 times the $360 million in 2012.

This support continues as a child grows, with the Government subsidising over 90 per cent of a child's education. "This means that a child entering primary school in 2019 will receive over $130,000 in education subsidies by the time he or she completes secondary education," he said.

Children from lower-income homes get even more support through various schemes.

OLDER SINGAPOREANS

The much-awaited goodies for theMerdeka Generation - Singaporeans born from 1950 to 1959 - were announced yesterday, and those in their 60s will have something to smile about

They get five key items:

• A $100 top-up to PAssion Silver cards, which can be used for healthy lifestyle activities like sports

• A yearly Medisave top-up of $200 till 2023

• Additional subsidies for outpatient care for life

• Additional MediShield Life premium subsidies for life

• An additional participation incentive of $1,500 for those who join CareShield Life.

To qualify, they must have become a citizen by 1996.

Those who were born before 1950 and missed out on the Pioneer Generation Package, but who became citizens by 1996, will also be eligible.

In addition, as part of the $1.1 billion Bicentennial Bonus, Singaporeans aged 50 to 64 years old this year will get a CPF top-up of up to $1,000, if they have less than $60,000 of retirement savings in their CPF accounts.

And older workers who are on the Workfare Income Supplement scheme will get higher increases in annual payouts from January next year. Those aged 60 and older will be able to get up to $4,000 a year in payouts.

LOW-INCOME HOUSEHOLDS

Lower-income Singaporeans continue to feature prominently in this year's Budget, with measures to commemorate the bicentennial geared largely to this group.

A $200 million Bicentennial Community Fund will be set up to encourage Singaporeans to give back to those in need. The fund will provide dollar-to-dollar matching for donations garnered by Institutions of a Public Character (IPCs) this year. The amounts matched will be capped so that more IPCs can benefit from the fund.

A Bicentennial Bonus was announced, featuring a special Bicentennial Bonus GST Voucher and Workfare Bicentennial Bonus to help the lower-income with daily expenses.

The Bicentennial Bonus GST Voucher will see those with assessable income of up to $28,000 and who are aged 21 and above get $300 if the annual value of their home is up to $13,000, and $150 if it is more than $13,000 and up to $21,000. This will benefit about 1.4 million Singaporeans.

Those who qualify for the Workfare Bicentennial Bonus will get a bonus of 10 per cent of the total annual Workfare Income Supplement payout for 2018.

Those with low CPF balances will also benefit from a top-up of up to $1,000, depending on their age and balance, to help build up their retirement savings. This will cost about $230 million and benefit about 300,000 citizens - the majority of them female.

Households with school going children will get more support from recently enhanced financial schemes, including the Uplift scholarship for independent schools, which will help cover out-of-pocket expenses.

And families in need of help with transport expenses will continue to be able to tap public transport vouchers, with a top-up to the Public Transport Fund.

TRAVELLERS

Bad news for travellers. Starting today, those returning from abroad will have a smaller allowance on tax-exempt overseas shopping.

Those who spend fewer than 48 hours outside Singapore will now avoid paying the 7 per cent goods and services tax (GST) only if the total value of items bought abroad is $100 or less, down from $150.

The threshold has also been lowered from $600 to $500 for travellers who spend 48 hours or more outside the country.

Meanwhile, the alcohol duty-free allowance for those who spend two days or more overseas will be reduced from 3 litres to 2 litres, starting on April 1.

The moves, which come amid rising international travel, are aimed at keeping Singapore's tax system resilient and contributing to recurrent spending needs.

SOMETHING FOR EVERYONE

All taxpayers will get a personal income tax rebate of 50 per cent, capped at $200 per taxpayer, as part of the Bicentennial Bonus.

Singaporeans who are aged 50 and above in 2019, and who do not receive the Merdeka or Pioneer Generation packages, will also get a Medisave top-up of $100 a year, for the next five years, to help meet future healthcare expenses.

All Housing Board households will also receive rebates to offset between 11/2 and 3 1/2 months of service and conservancy charges, provided they do not have a member owning a private property.

Working mothers who engage the help of their parents, grandparents, or parents-or grandparents-in-law to look after their young children may also claim grandparent caregiver relief if their child is handicapped and unmarried, regardless of age. Currently, the child has to be 12 or below to claim such relief.

BUDGET 2019: Honouring the Merdeka Generation

Medisave top-up, CHAS subsidies for Merdeka Generation
Most of $6.1 billion set aside for package to ease healthcare costs of nearly 500,000 Singaporeans
By Linette Lai, Political Correspondent, The Straits Times, 19 Feb 2019

And to support this group's active lifestyles, the Government will give them a one-off $100 top-up to their PAssion Silver cards. This money can be used to pay for public transport, entry to public swimming pools and activities at community clubs, among other things.

Mr Heng estimated that the package will cost more than $8 billion, in current dollars, over the Merdeka Generation beneficiaries' lifetimes.

The $6.1 billion set aside during this year's Budget will, with interest accumulated over time, cover the package's full projected costs, he said.

The oldest people in the Merdeka Generation are now 69 years old, and they will be able to enjoy the benefits of the package for many years, Mr Heng said.

He added that the finance and health ministries took this into account when sizing the budget for these benefits.

"This is a significant commitment by the Government," Mr Heng said. "It is important that the Government of the day continues to monitor the patterns and cost of healthcare utilisation, and life expectancy over the next 30 years or more, so that the Government is able to meet this commitment."

The Merdeka Generation Package comes five years after $8 billion was set aside during Budget 2014 for the Pioneer Generation Package.

For those in the Merdeka Generation, Chas subsidies for common ailments, chronic conditions and dental procedures will be higher than what lower-income blue Chas card holders get.

They will be able to get these subsidies regardless of income, even if they do not have a Chas card today.

They will also receive an extra 5 per cent off their annual MediShield Life premiums, which will go up to 10 per cent after they turn 75.

And the new $1,500 bonus for joining CareShield Life means that they will get a total of $4,000 if they sign up for the insurance scheme, since the Health Ministry had previously announced a similar $2,500 sign-up bonus for people born before 1960.

Mr Heng said this money will cover a "significant proportion" of their premiums, adding that he hopes this will encourage more people to join the scheme.

Those who missed out on the Merdeka Generation and Pioneer Generation packages will also get extra help, he said.

Singaporeans aged 50 years and above this year, and who are not eligible for either package, will get an extra Medisave top-up of $100 a year for the next five years.

Those who were born in the 1950s and who obtained citizenship by 1996 will be eligible for the Merdeka Generation Package.

Those born in 1949 and earlier will also get the package if they missed out on the Pioneer Generation Package, as long as they obtained citizenship by 1996.

People who are eligible will be notified by April and start getting their Merdeka Generation cards from June. More details will be shared during the debate on the Health Ministry's spending plans.

Merdeka package more generous than expected
By Salma Khalik, Senior Health Correspondent, The Straits Times, 19 Feb 2019

The Merdeka Generation (MG) Package for Singaporeans born in the 1950s has turned out to be more generous than anticipated.

All seniors from this generation will get a $100 top-up to their PAssion Silver cards as well as an additional $1,500 if they opt in to CareShield Life when it is open to them from 2021.

Prime Minister Lee Hsien Loong had said that the MG Package would be less generous than the Pioneer Generation (PG) Package.

This is only fair as the PG was around in the early days of nationhood and would have lower savings than the younger MG, and, hence, requires more help.

The MG is getting somewhat similar benefits but at a lower rate. The MG card provides subsidies at Community Health Assist Scheme (Chas) clinics that sit somewhere between what the PG gets and what a blue Chas card gives.

The MG gets an additional 25 per cent off medicine and services at public clinics.

The MG will also get top-ups of $200 a year in the Medisave accounts, but only for five years. This is fair as the MG will live longer and hence collect benefits for many more years than the PG.

Those in the MG will also get 5 per cent to 10 per cent subsidies for their MediShield Life premiums. Again, much lower than that for the PG, but those in the MG would have more in their Medisave to pay for this. All in the MG will get these benefits, with those who get means-tested help continuing to receive it.

What they will not be getting, though, is the $100 a month for life should they become disabled.

That is because those in the MG, unlike those in the PG, were young enough to join ElderShield when it was launched. Instead, they are being offered an additional $1,500 to encourage them to switch from ElderShield to CareShield Life.

This came as a very pleasant surprise as those in the MG already get the "participation" bonus of $2,500 announced earlier.

Now those who join CareShield Life, which pays $600 a month for life should they become disabled, will get a total of $4,000 off the premiums they will have to pay over a 10-year period.

Being part of the MG, this could tilt the scales in deciding whether I opt in for CareShield Life.

BUDGET 2019: Fostering a stronger society

$1.1 billion Bicentennial Bonus, with focus on helping lower-income
$200 million Bicentennial Community Fund will also be set up to spur Singaporeans to give back
By Rahimah Rashith, The Straits Times, 19 Feb 2019

To commemorate the bicentennial year, a $1.1 billion Bicentennial Bonus will be shared with Singaporeans, Finance Minister Heng Swee Keat said yesterday.

The bonus is part of two initiatives that will be launched to commemorate the year, with the other being a Bicentennial Community Fund.

As part of the Bicentennial Bonus, 1.4 million lower-income Singaporeans will receive up to $300 through a GST Voucher cash payout.

The bicentennial payment, which will be received at the end of the year, is meant to help them with their daily living expenses.

Lower-income workers who receive Workfare Income Supplement (WIS) payments will also get a Workfare Bicentennial Bonus.

They will receive an additional 10 per cent of their WIS payment for work done last year, with a minimum payment of $100, in cash.

A total of 407,000 low-wage workers received WIS payouts totalling $650 million in 2017.

For all tax resident individuals, personal income tax rebates of 50 per cent will also be granted.

The rebate will be capped at $200 per taxpayer and is estimated to cost about $280 million.

Parents with school-going children will also benefit from the bonus, with additional support for their children's education.

There will be a one-off $150 top-up to the Edusave accounts of Singaporean students aged seven to 16.

Singaporeans aged between 17 and 20 will receive $500 in their Post Secondary Education Accounts.

The education top-ups are expected to be made by the middle of this year and are estimated to cost $140 million. Altogether, 570,000 students are expected to benefit from the top-ups.

For those who are near retirement, additional Central Provident Fund (CPF) top-ups will be made available.

Singaporeans aged 50 to 64 this year and who have less than $60,000 of retirement savings in their CPF accounts will receive a top-up of up to $1,000. This will be credited into the Special Account for members aged 50 to 54, and the Retirement Account for members aged 55 to 64.

About 300,000 Singaporeans will benefit from the top-up. "The majority of these recipients will be women. Many of them left the workforce early and took up important roles as mothers, caregivers or housewives," said Mr Heng. "As a result, they had fewer years to build up their savings. This top-up is a way to recognise their contributions and to help them save more."

Besides the Bicentennial Bonus, a $200 million Bicentennial Community Fund will also be set up to encourage Singaporeans to give back. The fund will provide dollar-to-dollar matching for donations garnered by Institutions of a Public Character (IPCs) this year.

The amounts matched for each IPC will be capped to ensure that more IPCs can benefit from the fund. Donations made to IPCs qualify for a 250 per cent tax deduction.

Mr Heng said: "We hope to further encourage more Singaporeans, including younger Singaporeans, to embrace the spirit of giving back."

Ms Iris Lin, senior assistant director of Fei Yue Community Services, welcomed the initiatives. She said that the additional help for lower-income and older Singaporeans is a nice gesture.

"The amount, no matter how big or small, will go a long way to help the low-income. This is also a nice way to recognise the hard work that older Singaporeans have put in, including women who may have had to stop working because of care giving."

Additional $3.1 billion for long-term care; more to get CHAS subsidies
By Felicia Choo, The Straits Times, 19 Feb 2019

The Government will pump in an additional $3.1 billion for long-term care schemes and will enhance Community Health Assist Scheme (Chas) subsidies.

The additional funds for long-term care build on the $2 billion earmarked last year for premium subsidies and other forms of support for Singaporeans.

The $5.1 billion will go into a new Long-Term Care Support Fund that will fund subsidies for disability insurance CareShield Life and other long-term care support measures.

These include ElderFund, which will be launched next year to help severely disabled, lower-income Singaporeans who need additional financial support for long-term care and might not be able to join CareShield Life, or have low Medisave balances.

"As we age, the chances of having one form of disability or another rises significantly," Finance Minister Heng Swee Keat said yesterday.

The Ministry of Health (MOH) estimates that one in two healthy Singaporeans aged 65 could become severely disabled in their lifetime and may need long-term care, he said.

Mr Heng also shared more details on the extension of Chas, which was announced by Prime Minister Lee Hsien Loong at last year's National Day Rally.

The scheme will be extended to all Singaporeans who have chronic conditions, regardless of income.

Currently, Chas subsidises medical and dental care at general practitioners and dental clinics for lower-and middle-income Singaporeans, as well as those from the Pioneer Generation, or Singaporeans who were aged 16 and older in 1965.

In addition, those with the orange Chas card (people who have a household monthly income per person of between $1,101 and $1,800) who now get subsidies only for chronic conditions will also get subsidies for common illnesses like cough and cold. Subsidies for complex chronic conditions will also be increased.

These changes will see an expected increase in payouts for Chas subsidies to more than $200 million a year, said Mr Heng.

In 2017, the Government disbursed about $154 million in Chas subsidies to about 650,000 Singaporeans. The number of Chas card holders grew five times to about 1.3 million Singaporeans from 2012 to 2017. The amount spent on the scheme also grew more than 10 times over this period.

"Chas makes it possible for more Singaporeans to turn to GP clinics near their homes to manage their chronic conditions," said Mr Heng.

"But we must also put in the measures to ensure that Chas clinics are delivering good outcomes."

To do this, MOH will study how to help Chas clinics better track their patients' progress and outcomes, and review its clinical guidelines for care at Chas dental clinics.

Health Minister Gan Kim Yong will provide more details on these changes during the upcoming debate on his ministry's budget.

More being spent to give children a good start in life through education
By Amelia Teng, Education Correspondent, The Straits Times, 19 Feb 2019

A child entering primary school last year would have received more than $130,000 in education subsidies by the time he or she finishes secondary school.

Finance Minister Heng Swee Keat disclosed this in Parliament yesterday as he outlined initiatives to help Singaporeans access opportunities and fulfil their potential through education.

"The Government subsidises over 90 per cent of the total cost of educating our children," he said, adding that more help is given to lower-income families.

These efforts, he said, are part of the long-term plan to build a more caring and inclusive society by giving children a good start in life and providing Singaporeans access to opportunities throughout their lives, amid challenges such as maintaining social mobility.

He said the Government invests heavily to provide a "world-class education for young Singaporeans" to bring out the best in every child.

Noting that support for children in need is an area of deep concern for many Singaporeans, he said this starts with ensuring quality pre-schools remain accessible and affordable for all families.

"Pre-schools support parents in laying a strong foundation for children - by helping to develop children's cognitive, language, social and emotional skills," he said.

And the Government is spending more on early childhood education and care, he added.

It pumped in about $1 billion in the pre-school sector last year, more than 21/2 times of the $360 million it spent in 2012.

He said more has been done to support those from disadvantaged backgrounds by allowing more students to benefit from financial assistance, earlier intervention and new forms of help.

One such way, he said, is KidStart, a government scheme to help disadvantaged children through health, learning and developmental support. Since the pilot programme started in 2016, more than 900 families have been on it.

Last year, another initiative called Uplift, short for Uplifting Pupils in Life and Inspiring Families Taskforce, was set up to study issues that affect children from poorer homes and their families, said Mr Heng.

The Uplift scholarship, announced in December last year, will provide $800 per year for eligible lower-income students in independent schools to cover out-of-pocket expenses, he said.

"The task force is also looking at how to strengthen after-school care and support for disadvantaged students in school-based Student Care Centres," he said, adding that more details will be disclosed during the debate on the Education Ministry's spending plans.

To help parents with school-going children, Mr Heng also announced that Singaporean primary and secondary school students will receive a $150 top-up to their Edusave accounts this year.

This is on top of the annual Edusave contributions that the Government already provides - $230 for primary school pupils and $290 for secondary school students.

In addition, Singaporeans aged 17 to 20 will get up to $500 in their post-secondary education accounts, which they can use to pursue post-secondary courses in the universities and polytechnics, for instance.

"This will go towards helping parents to save for their children's tertiary education," said Mr Heng.

Increased support for lower-wage and senior workers
Higher Workfare payouts for the low income; subsidies for wages of seniors to be extended
By Adrian Lim, Political Correspondent, The Straits Times, 19 Feb 2019

Lower-wage workers will receive higher payouts under a government scheme to help them supplement their income and Central Provident Fund (CPF) savings.

The qualifying income cap for the Workfare Income Supplement (WIS) programme will also be raised from the current $2,000 to $2,300 per month, Finance Minister Heng Swee Keat announced yesterday.

With the enhanced WIS, to take effect from January next year, the maximum annual payouts will be increased by up to $400, and older workers will see higher increases in payouts. Those eligible for WIS receive payout amounts based on their age and income.

For example, 60-year-old workers earning $1,200 a month can currently receive $3,600 annually from WIS, but with the enhancement, this will be boosted to $4,000. They will continue to receive 40 per cent of WIS in cash and 60 per cent in their CPF.

WIS, which was introduced in 2007, is a key pillar of Singapore's social security system and supports workers whose earnings are in the bottom 20 per cent, as well as those slightly above.

Mr Heng said: "The scheme has raised their incomes, encouraged employment and helped them save more for retirement."

He said the enhanced WIS is expected to cost close to $1 billion a year, and will benefit almost 440,000 Singaporeans.

Meanwhile, to support older workers, the Special Employment Credit (SEC) and the Additional SEC scheme, which incentivise and encourage employers to hire senior workers, will both be extended for another year, until Dec 31 next year.

The SEC subsidises the wages of Singaporean workers aged 55 and above who earn up to $4,000 a month, while the Additional SEC encourages companies to hire workers who are above the re-employment age of 67.

To support the extensions, the SEC fund will be topped up by $366 million, Mr Heng noted.

He said a tripartite workgroup set up to study the concerns of older workers will present its recommendations later this year.

The workgroup is reviewing policies such as the retirement and re-employment age, and CPF contribution rates for older workers.

The Government will also review the relevance and structure of the SEC and Additional SEC, in tandem with recommendations from the tripartite workgroup.

"With a tighter labour market, and more Singaporeans choosing to work longer, more companies will be hiring older workers. The Government will study better forms of support to continue to help workers to remain productive, earn more and save more for retirement," he said.

Yesterday, Mr Heng also announced a $1.1 billion Bicentennial Bonus for Singaporeans. As part of it, lower-income Singaporeans will receive additional payments from the WIS at the end of this year, to help them with daily living expenses.

The Workfare Bicentennial Bonus will give these individuals an additional 10 per cent of their WIS payment for work done last year, with a minimum payment of $100. This will be given in cash.

Public Assistance recipients to get more each month
By Theresa Tan, Senior Social Affairs Correspondent, The Straits Times, 19 Feb 2019

Destitute Singaporeans who are on the ComCare Long-Term Assistance Scheme, also known as the Public Assistance scheme, can look forward to a higher monthly cash sum.

For instance, a two-person household will receive an extra $130 a month - from $870 to $1,000 a month.

The scheme provides a cash sum each month to destitute persons who cannot work permanently as a result of old age or illness, and have little or no family support.

In the Ministry of Social and Family Development's (MSF) last financial year ended March last year, there were 4,409 households on the scheme, with its recipients being mostly elderly singles who live alone.

The sums were last revised in 2016, when they went up from $450 to $500 a month for a single person and from $790 to $870 for a two-person household.

The MSF will provide more details during the debate on the ministry's budget next month.

Social workers interviewed welcomed the increase in sums to Public Assistance recipients.

Ms Joyz Tan, 37, senior social worker at Fei Yue Family Service Centre, said: "The increase in quantum helps to cushion the impact of inflation to some extent, such as higher food cost."

Besides the higher sums given out to Public Assistance scheme recipients, the Government will also increase the sums for those on the government pension scheme called Singapore Allowance, who draw pensions of less than $1,230 a month.

The Government will raise the allowance and the monthly pension ceiling by $20 each, to $320 and $1,250 a month, respectively. The move will benefit about 9,300 pensioners.

The Public Transport Fund will also be topped up by $10 million. Eligible lower-income families will get vouchers to defray their transport expenses.

Finance Minister Heng Swee Keat also urged Singaporeans to make a difference, under a national movement called SG Cares, to foster a more caring society.

The Government is promoting volunteerism among various groups, such as young people, seniors and among public officers.

For example, the Ministry of Culture, Community and Youth is working with Youth Corps Singapore to nurture youth community leaders in tertiary education institutes to rally their peers to be involved in the community.

It is also encouraging all public officers to volunteer under the Public Service Cares initiative, and over 85 per cent of public officers are making monthly donations.

Mr Heng cited independent content producer Rose Sivam, 54, who started an initiative to bring people from different backgrounds together, including the less fortunate.

She and her husband Chris Choo, 50, run a private dining initiative from their five-room HDB flat, and they want to extend these parties to those who cannot afford them or do not have a chance to attend private dining parties.

Guests to her "My Home, Your Home" initiative have included people with disabilities and dementia patients, who get a free meal and entertainment. Paying guests put in between $78 and $88 per head.

"Those who came all loved it," Dr Sivam said. "And the privileged also gained so much - like some did not know wheelchair users can hold full-time jobs or have never seen a visually handicapped person create calligraphy. Their misconceptions have been cleared."

Singapore Budget 2019: Something for everyone amid a challenging environment
Handouts aside, other measures also stand out for their foresight and compassion
By Li Xueying, Enterprise Editor, The Straits Times, 19 Feb 2019

Budget 2019 was not an easy one to deliver. Finance Minister Heng Swee Keat presented it in an environment that was not the most congenial to the Government.

First, it came in the wake of a series of incidents that has raised the political temperature - the HIV and SingHealth data breaches and the national service training deaths, to name a few. Just over the weekend, another lapse came to light: 7,700 people received the wrong amount of healthcare subsidies due to an IT glitch.

These erupted amid long-term challenges that are political hot potatoes - rising cost of living and stratifying social mobility among them.

At the same time, Budget 2019 was loaded with expectations, for Mr Heng in particular.

While this was his fourth Budget outing as Finance Minister, it was his first as the designated successor to Prime Minister Lee Hsien Loong.

His performance was assessed as coming from the man who will lead the nation in future, and parsed for clues for an inkling of his vision.

How then did the Finance Minister do?

There are the short-term handouts that will make most voters happy.

The centrepiece is the widely flagged $6.1 billion Merdeka Generation bonanza that half a million Singaporeans in their 60s will get. But there is something for almost everyone else: a $1.1 billion Bicentennial Bonus for mainly lower-income workers; a 50 per cent personal income tax rebate for middle-incomer earners; Edusave top-ups and more for students.

Taken together, these goodies help assuage worries about rising cost of living. "The Government keeps a close watch on the cost of living," Mr Heng made clear.

Handouts aside, there were other measures that stood out for their compassion and foresight.

Singapore's version of the minimum wage and the most critical safety net for low-income workers - the Workfare Income Supplement (WIS) - will be improved. The qualifying income cap will be raised from $2,000 to $2,300, and maximum annual payouts hiked by up to $400.

This is an important move. Incomes have been rising in tandem with inflation, and this change will ensure that the bottom 20 per cent will continue to be helped.

Also noteworthy was Mr Heng's frank assessment that Singapore is not doing as well as it should in increasing productivity on some fronts.

Thus, the quota for foreign workers in the service sector will be tightened. This will be painful for the 200,000 establishments in industries such as retail and business services and they are bound to belly-ache at it.

But the move sent a strong signal that the People's Action Party (PAP) Government has its eye firmly on the long term when it comes to policymaking.

In no uncertain terms, Mr Heng warned: "If we do not use this narrow window to double down on restructuring, our companies will find it even harder in the future."

Social mobility - a topic that the fourth-generation leadership has pledged to moved decisively on - however received surprisingly short shrift in this Budget. Mr Heng touched briefly on existing efforts such as more support for pre-schools and the KidStart scheme for disadvantaged kids. Hopefully, more will be announced during the ensuing debate on the Education Ministry's budget.

Those concerned about whether there is a truly level playing field for all Singaporeans, regardless of their family backgrounds, will hold him to his word. "We are improving the lives of our people, by enabling them to be the best that they can be," said Mr Heng, in a line worthy of a future National Day Rally.

So to what extent did Singapore's next prime minister inspire?

Never a flamboyant speaker, there were few flourishes in Mr Heng's speech. He made some gentle quips, such as when he highlighted a local product, a screen protector that allows long-sighted users to use digital devices without need for glasses.

"I am sure this House will support the enabling of us to see issues, far or near, with greater clarity," he said, to chuckles in the chamber.

He also used a favourite line - "low risk does not mean no risk" - in a nod to his stroke in 2015, when calling on Singaporeans to take care of their health.

Mr Heng did not address the latest lapses that have dominated news headlines and chatter on the ground, and which have raised questions about the competency of certain agencies.

But the Budget speech is not the platform to address such concerns, which no doubt will get an airing in Parliament on another occasion.

What did come through in Mr Heng's two-hour speech was his repeated call for Singaporeans to be united - whether in the face of external challenges such as with Malaysia, or in weaving a tightly knit social fabric at home.

That, in fact, was the title of his speech: Building A Strong, United Singapore.

This harks back to a belief that Mr Heng has consistently held and had raised when he first plunged into the political arena in 2011.

In an interview with The Straits Times then, he said: "I'm deeply convinced that we need to build a cohesive community, and we need to build trust - a deep level of trust between the Government and our people."

Singaporeans will be looking forward to hearing more on this from Mr Heng.

BUDGET 2019: Supporting our workers and firms

Service sector firms will have to lower foreign worker ratio
Proportion will be cut from 40% to 38% on Jan 1 next year, and to 35% on Jan 1, 2021
By Joanna Seow, Manpower Correspondent, The Straits Times, 19 Feb 2019

Companies will have to rely less on foreign workers and become more productive if the service sector is to remain competitive.

That has led to the Dependency Ratio Ceiling - the proportion of foreigners on work permits or S Passes a firm can employ - being cut from 40 per cent to 38 per cent on Jan 1 next year, and to 35 per cent on Jan 1, 2021.

The quota for S Pass workers - mid-skilled foreigners paid at least $2,300 a month - will drop from 15 per cent to 13 per cent on Jan 1 next year, and to 10 per cent on Jan 1, 2021.

The last quota reductions for the sector were in 2013.

Firms that already exceed the new levels will have to meet the quotas when applying for permit renewals.

Finance Minister Heng Swee Keat said the decision to reduce the quota was done "after much deliberation".

Although some companies - such as those in manufacturing - have done well to deploy staff efficiently, service segments such as retail and food and beverage remain very labour-intensive, he added.

Growth in the number of S Pass and work permit holders in services has been picking up pace. It rose by about 3 per cent a year, or 34,000 in the past three years.

Indeed, the increase in the number of S Pass holders in services last year was the highest in five years.

These trends may be unsustainable, noted Mr Heng. "We need to act decisively to manage the manpower growth in services, and encourage our companies to revamp work processes, redesign jobs and reskill our workers," he said.

"Our workforce growth is tapering, and if we do not use this narrow window to double down on restructuring, our companies will find it even harder in the future."

Mr Heng said a sustainable inflow of foreign workers is needed to complement local staff while Singaporean workers upgrade themselves and enterprises build deep capabilities.

Higher funding of up to 70 per cent under two grants will be extended to March 31, 2023, to help firms adjust to the changes.

These are the Enterprise Development Grant (EDG), which funds projects for firms to improve efficiency and internationalise, and the Productivity Solutions Grant (PSG), which subsidises the cost of off-the-shelf technology to help companies boost productivity.

The funding cap of 70 per cent had been due to drop to 50 per cent after March 31 next year for the EDG and for certain sectors under the PSG.

The Ministry of Manpower also provides some flexibility for companies to employ more foreign workers while they move to an operating model requiring fewer employees under the Lean Enterprise Development Scheme. There is also provision on a case-by-case basis if firms need to bring in foreign workers with specialised skills that are lacking among Singaporeans.

Meanwhile, there will be no changes to the foreign worker levy rates this year.

Manpower Minister Josephine Teo said in a Facebook post yesterday that if service industries remain very labour-intensive and see too much growth in foreign manpower, job quality may not improve significantly and workers will face poorer wage growth prospects.

But she noted that there is a global skills shortage in areas such as artificial intelligence and data science, and so Singapore must still welcome top professionals from overseas to complement local talent.

PwC Singapore tax leader Chris Woo and OCBC economist Selena Ling said the lower service-sector quota will probably force enterprises to turn more to technology. Mr Woo called it "necessary medicine" for the medium term.

Maybank Kim Eng senior economist Chua Hak Bin said the changes could lead to higher costs as firms may need to raise wages to attract locals in the tight labour market.

High-tech solutions are not always an immediate boost. Yee Cheong Yuen Noodle Restaurant director Veronica Koh said that as her customer base is older, they are not so keen to use the iPad ordering system she tried to implement. But she said that with the quota being tightened, she will have to keep trying. "We will probably look to automation and a range of government support to help us cope."

More help to boost skills and switch jobs
By Joanna Seow, Manpower Correspondent, The Straits Times, 19 Feb 2019

More help is coming to improve the skills of workers so that they can adapt in the competitive and technology-intensive environment.

The initiatives include new conversion programmes relating to fields such as blockchain and prefabrication to assist people who want to switch to jobs in growth areas.

Another step noted in the Budget is to extend the Career Support Programme that was to end next month by two years.

The scheme subsidises the wages when a Singaporean who is mature and retrenched or unemployed for the long term is hired for a professional, manager, executive or technician job.

"Our ultimate goal is to enable our people to continue to have good jobs and opportunities, and to be at their best," said Finance Minister Heng Swee Keat.

The Budget has set aside $3.6 billion over the next three years for the Ministry of Manpower and the Ministry of Education to help workers amid industry and technological disruptions.

About $1.1 billion was spent on career support initiatives, such as the Adapt and Grow programmes, and continuing education and training, in the 2017 financial year.

The push to help workers adapt and gain skills has borne fruit, with around 76,000 job seekers finding work through Adapt and Grow programmes between 2016 and last year.

More people are also going for training, with the participation rate growing from 35 per cent in 2015 to 48 per cent last year among Singaporeans and permanent residents in the labour force.

Workers, firms, unions and trade associations and chambers all need to play a part to continue this progress, said Mr Heng.

Two grants for businesses will include new components to ensure that staff benefit from transformation in their companies.

Firms that want to tap the Enterprise Development Grant to lift efficiency and internationalise will need to commit to positive outcomes for workers, such as wage rises, from April 1 next year.

The Productivity Solutions Grant will allow firms to apply for a subsidy of up to 70 per cent of out-of-pocket training expenses, capped at $10,000. They must submit a training plan for assessment.

Details on the grant changes will be given later.

$4.6 billion over three years to help workers and boost businesses
$3.6 billion will be used to assist workers during industrial disruptions; help for start-ups, SMEs
By Ng Jun Sen, Business Correspondent, The Straits Times, 19 Feb 2019

Around $4.6 billion will be invested to boost businesses and support Singaporean workers over the next three years.

Of this, $3.6 billion will be earmarked to assist workers during industrial disruptions, while $1 billion will enable firms to grow their deep enterprise capabilities.

"But let me emphasise that supporting companies and supporting workers are mutually reinforcing,"Finance Minister Heng Swee Keat said yesterday. "Stronger companies provide better jobs and pay for workers, and highly skilled workers make companies stronger."

Start-ups and small and medium-sized enterprises will also get help:

• A Scale-up SG programme by trade promotion agency Enterprise Singapore (ESG) that aims to help high-growth local firms innovate, grow and venture overseas.

• A two-year pilot where firms can get advice on innovation opportunities and ways to commercialise technology from "Innovation Agents" - industry veterans with expertise in technology and business.

• An additional $100 million for a new SME Co-Investment Fund III to help companies draw in "smart, patient capital that attracts investors with the expertise and the right time horizon". The fund is expected to bring in another $200 million for SMEs during fund-raising.

• An Enterprise Financing Scheme, to be launched in October, that will combine ESG's eight financing programmes covering trade, working capital, fixed assets, venture debt, mergers and acquisitions, and project financing.

• The Government will take on up to 70 per cent of the risk for bank loans, up from 50 per cent in most existing schemes, made by firms that have been incorporated for less than five years.

• The extension of the existing SME Working Capital Loan scheme until March 2021.

• Trade associations and chambers will develop five-year plans to map out how they can help their industries transform. The Government is also working with partners on the secure exchange of electronic trade documents to lift productivity.

Government assistance will also be available in a tiered manner to help firms build deep enterprise capabilities, said Mr Heng. Large firms will get customised support from the Economic Development Board, ESG and other agencies, while SMEs will be supported through "scalable solutions".

These measures come amid an expected moderation of global economic growth this year. Singapore's economy grew by 3.2 per cent in 2018 compared with 3.9 per cent in 2017. "Our efforts to transform our economy are bearing fruit," said Mr Heng, who cited the 23 Industry Transformation Roadmaps that were launched in the 2016 Budget. Productivity has grown by 3.6 per cent a year since 2016, up from 1.6 per cent a year recorded in the preceding three years, he noted.

Part of the productivity boosts arise from the Government's support of SMEs, many of which would otherwise be hard-pressed for resources to beat industrial disruption, said business owners.

"Young companies face a constant challenge of being resource-or capital-constrained, which potentially limits growth and the speed to scale," said e-commerce platform Shopmatic's CEO Anurag Avula, adding that the measures to support SMEs are "very encouraging".

Food manufacturer Golden Bridge had tapped the Lean Enterprise Development Scheme and partnered local institutes to help automate production and raise efficiency.

These have enabled it to be competitive against other manufacturers in Europe, where it is now seeking to expand, said operations director Ong Chew Yong.

While the manufacturing industry has performed strongly, Mr Heng said the construction and some service sectors continue to show weaker productivity growth.

"There is much more we can do, especially in sectors like domestic services. We must press on."

SMEs to get more help to adopt technology
By Irene Tham, Senior Tech Correspondent, The Straits Times, 19 Feb 2019

As new technologies disrupt their traditional business models, small and medium-sized enterprises (SMEs) will see an existing initiative expanded to help them transform digitally and to stay relevant in their business.

Specifically, SMEs can continue to look forward to having up to 70 per cent of the cost of more tools such as cyber security and artificial intelligence subsidised, Finance Minister Heng Swee Keat said yesterday.

Such help will come under the SMEs Go Digital programme, announced in 2017.

"We will expand the number and range of cost-effective, pre-approved digital solutions that will be supported under SMEs Go Digital to boost technology adoption among SMEs," he said.

So far, the scheme has helped some 4,000 out of 200,000 SMEs in Singapore in basic automation. The Infocomm Media Development Authority (IMDA) has budgeted some $80 million for potential beneficiaries over four years starting from April 2017.

IMDA will also roll out Industry Digital Plans (IDPs) for the accountancy, sea transport and construction sectors, where innovation has been lagging.

Specifically, these IDPs will contain a non-intimidating guide to help SMEs in identified sectors assess their digital readiness and explore opportunities to go digital.

Similar IDPs have already been launched for the logistics, retail and wholesale trade sectors.

SMEs Go Digital replaced a more basic seven-year-old iSprint initiative, which provided similar subsidies and basic technology advice benefiting some 8,000 SMEs.

Separately, IMDA will also jointly pilot a cross-border marketplace with the Monetary Authority of Singapore. To be powered by artificial intelligence, the marketplace aims to help SMEs find global buyers and suppliers.

Known as Business sans Borders, the initiative is at proof-of-concept stage and aims to enhance domestic and international trade opportunities for SMEs.

The Automation Support Package (ASP), announced in Budget 2016, will also be extended by another two years until March 2021.

Under the scheme, more than 300 SMEs have had better access to loans for qualifying projects, with the Government sharing risks with participating financial institutions and jointly providing up to 70 per cent of the cost of technology projects.

Mr Jonathan Ho, head of enterprise market in KPMG, said the moves will build more digital capabilities in companies. But SMEs also need help "to road-map their digital journey".

New centres of innovation for food and energy
Move to position Singapore as Global-Asia node of technology, innovation and enterprise
By Cheryl Teh, The Straits Times, 19 Feb 2019

A centre of innovation focusing on food resilience and another on industry-led innovation in the energy sector will be opened here as part of efforts to cement Singapore's position as the Global-Asia node of technology, innovation and enterprise, Finance Minister Heng Swee Keat said yesterday.

He added that the Government will also prepare and develop people here to take advantage of the opportunities.

The Centre of Innovation in Aquaculture at Temasek Polytechnic will bring together high-tech marine farms in Singapore to improve the country's food resilience.

The farms will be able to pool resources, share ideas and use the infrastructure as well as tap expertise provided by government agencies, institutes of higher learning, and public research institutes.

Separately, an energy centre at Nanyang Technological University will work with the Sustainable Energy Association of Singapore to drive industry-led innovation in the areas of energy efficiency, renewable energy and electric mobility.

Enterprise Singapore said the centre will enable firms to commercialise their cutting-edge innovations by providing the technical know-how to turn energy research into scalable, industry-applicable technology. The centre will also work as an incubator for energy sector start-ups, and link them with private sector-owned test beds to trial their projects.

Mr Heng said these two centres, along with other initiatives announced yesterday, will cement Singapore's position as "Asia 101" for global multinational companies looking to expand into Asia's growing markets, and as "Global 101" for Asian companies ready to go global.

To develop and prepare talent, he said current local and overseas internship programmes will be combined into a single Global Ready Talent Programme with more funding for students at institutes of higher learning who plan to intern with overseas-based Singapore firms.

The talent programme, which is not just for students, will also send Singaporeans with up to three years of working experience for postings in high-growth Singapore firms in markets such as South-east Asia, China and India.

Singapore will continue to build global partnerships so that local firms and people can forge new areas of collaboration with the international community, he added.

One of the initiatives involves organisers combining two events - the Singapore Week of Innovation and Technology (Switch) and the Singapore FinTech Festival - to draw more entrepreneurs, investors and innovators from around the world. This, he said, will increase partnership opportunities, and allow participants to collaborate in technological innovation in the fourth industrial revolution. The two events will be held in the same week in mid-November.

Mr Heng said the spirit of entrepreneurship is critical for all these endeavours to succeed, adding that it is important to have a vision of the future, and take practical steps to explore a range of possibilities and solve a myriad of problems.

HSBC Singapore chief executive Tony Cripps said the Budget further cements Singapore's Smart Nation ambitions, through its focus on driving better innovation collaboration with universities and the move to lift the skills of its domestic and international talent.

"Encouraging international expertise and also broad-based domestic upskilling programmes shows that the Government is taking a holistic approach to innovation," Mr Cripps added.

He said the continued investment in research and development, as well as the focus on the actual application of technologies already in play, means that the current and future state are being jointly considered. "Our international clients are telling us this is a prerequisite for further investment," he added.

Singapore Budget 2019: Expansionary Budget, but what about demographic challenge?
By Vikram Khanna, Associate Editor, The Straits Times, 19 Feb 2019

Budgets come in various forms. Some are "Big Bang", full of startling surprises, good and bad. Some are status-quoist, hardly distinguishable from what came in previous years. Others are cumulative, building on the past towards a long-term goal, taking many small steps forward and a few big ones.

Finance Minister Heng Swee Keat's latest Budget is in the latter category. In what is expected to be a year of slower economic growth, it is appropriately expansionary, with expenditure projected to rise to $80.3 billion, 1.6 per cent higher than in FY2018, which was also an expansionary Budget year.

Budget 2019 adds to past initiatives to build enterprise capabilities for small and medium-sized enterprises (SMEs) - a long-haul exercise. It sets aside $100 million for the SME co-investment fund, which will catalyse funding for SMEs and help them scale up and expand overseas. It will (from October) consolidate eight existing SME financing schemes into a single one, which will save companies the trouble of having to navigate a financial maze.

To nurture the enterprises of the future, it will expand support for SMEs less than five years old by taking 70 per cent of the risk for bank loans to these companies, compared with 50 per cent at present. It will also expand programmes to help SMEs go digital and automate.

While companies will welcome all of the above, many will be disappointed to learn that the quotas for foreign workers in the service sector will be tightened gradually over the next two years.

While the effects will be partly offset by transitional funding support for training and development, service-intensive industries such as retail, food and beverage, healthcare and IT could face rising costs over the medium term, and find it harder to expand.

GENEROUS SOCIAL POLICIES

Budget 2019 provides generously for social policies, in keeping with what Mr Heng describes as "our long-term plan to build a caring and inclusive society".

One significant initiative is to increase assistance under the Workfare Income Supplement (WIS) scheme, which provides cash payouts and Central Provident Fund top-ups to some 440,000 workers whose earnings are in the bottom 20 per cent. The qualifying income cap will be raised from $2,000 to $2,300 and the maximum payouts will be increased by up to $400, with older workers getting higher payouts.

Budget 2019 provides a raft of benefits for healthcare, including enhanced subsidies under the Community Health Assist Scheme, which enables lower and middle-income Singaporeans to access primary medical and dental care at clinics near their homes; and more financial support for long-term care.

But the highlight of Budget 2019 is the $6.1 billion for the Merdeka Generation Package, essentially a healthcare subsidy scheme for citizens born during the 1950s, and who obtained citizenship by 1996.

Mr Heng described this group as "an independent and resilient generation" who played a critical role in Singapore's development, was among the earliest batches to do national service, build the public services, modernise the economy and help forge a harmonious multicultural, multiracial society.

DESERVING BUT DIVERSE

These achievements deserve acknowledgement and gratitude. But, compared with the Pioneer Generation, the Merdeka Generation is better educated, enjoyed more of the best years of Singapore's economic growth as well as increases in asset values, earned more and saved more. So, it is fitting that it gets a less generous package of benefits than the Pioneer Generation received in Budget 2014.

The Merdeka Generation is also diverse, including business tycoons, well-heeled professionals, middle-class people, as well as blue-collar and low-income workers, some of whom have retired. So, to the question of whether all of them are equally deserving, at least in terms of need, the answer is "no".

Normally, when distributing benefits, the Government follows strict eligibility criteria based on need, as in, for example, the GST Voucher Scheme, the WIS or Silver Support Scheme, all of which are subject to rigorous means testing, and rightly so. But surprisingly, in the case of the Merdeka Generation Package, the benefits are to be distributed regardless of need, with the well-heeled getting the same as low-income retirees. Moreover, most of the benefits are not one-off, but for life.

While still rewarding all of the Merdeka Generation, the package could be made more progressive by giving bigger benefits to its lower and middle-income members than to those more affluent.

Health subsidies now cover just about all of Singapore's elder population. While this is a solid achievement that should do any government proud, it also entails the risk of overconsumption of healthcare services, signs of which are already evident. With subsidy bills likely to escalate over the coming years, it might in future be prudent to shift some of the burden to the private sector - for example, by giving incentives to companies to provide more generous health benefits to employees.

Another surprise in Budget 2019 is that while it astutely flags the key medium-term challenge of climate change, it contains no measures to address Singapore's demographic challenge, which is at least as urgent. At current birth rates, the citizen workforce is projected to start declining from next year.

In the absence of immigration, and barring a sudden increase in fertility rates (which seems improbable), Singapore would be at risk of moving into an era of chronically low economic growth - unless productivity keeps rising and remains high, which is also improbable.

Thus, while Budget 2019 does an admirable job of building enterprise capabilities and strengthening the pillars of Singapore's now-quite-impressive social security system, there remains much unfinished business to be addressed in future Budgets.

BUDGET 2019: Keeping Singapore safe and secure

30% of total expenditure set aside for defence, security, diplomacy
Spending is significant, but indispensable, and more will be invested if need arises: Heng
By Tan Tam Mei, The Straits Times, 19 Feb 2019

About 30 per cent of the Government's total expenditure this year is being set aside to support defence, security and diplomacy efforts - spending that is "significant, but indispensable", said Finance Minister Heng Swee Keat.

And the Government will invest more, if the need arises, to protect Singapore's sovereignty and Singaporeans' well-being, he said.

"Everyone has a role to play to keep Singapore safe and secure. Let us continue to stay united in defending our home and way of life," added Mr Heng.

About $22.7 billion - or 28.3 per cent of the $80.3 billion total budgeted expenditure - is set aside for the Defence, Home Affairs and Foreign Affairs ministries this year.

The lion's share is for defence expenditure, which is expected to increase by 4.8 per cent to $15.5 billion. Spending for the other two areas is expected to be steady at $6.7 billion and $500 million, respectively.

Last year, about $21.9 billion - about 27.8 per cent of the $79 billion revised total expenditure - was allocated to the three ministries.

There was a greater focus on security and external relations issues in this year's Budget than in previous years, with Mr Heng speaking on these at the start of his speech.

Noting that a safe and secure Singapore "gives us the confidence to chart an independent course", he said the Republic cannot take its peace, prosperity and stability for granted, as it remains vulnerable to regional and global fluctuations.

Also, Singapore cannot waver in its commitment to defence and security - with diplomacy and deterrence as twin pillars of its approach - against an increasingly uncertain geopolitical environment.

Even as Singapore builds good relations with other countries through the Ministry of Foreign Affairs, the Singapore Armed Forces (SAF) lends weight to diplomatic efforts and ensures that negotiations with Singapore are taken seriously, noted Mr Heng.

"Should diplomacy fail, we must stand ready to safeguard our interests and defend ourselves," said Mr Heng, adding that Home Team agencies and the Cyber Security Agency of Singapore also ensure a safe and secure environment for all.

The SAF remains a "bulwark" as security threats evolve and become more complex, said Mr Heng.

He also cited how the threat of terrorism remains high, with Singapore continuing to detect individuals here who have been radicalised as it sees a global rise in attacks by radicalised individuals and cells.

In addition, the threat of malicious cyber activities is also growing, and connectivity can be exploited to disrupt and divide society through cyber attacks and the spread of falsehoods, Mr Heng said.

"In particular, foreign actors will try to influence our domestic affairs and politics. This is not new, but new technologies have made it easier for others to mount attacks with greater ease and intensity, and with more sophisticated tactics."

To stay ahead of these threats, Mr Heng said, Singapore must continue to innovate and build new capacities to meet security needs.

In the same vein, the Ministry of Home Affairs (MHA) will set up the Home Team Science and Technology Agency by this year to develop capabilities and support the ministry's operational needs.

"These capabilities will strengthen the Home Team's ability to carry out its mission of safeguarding Singapore," said Mr Heng, adding that more details will be given by the Home Affairs Minister.

MHA will also help the private security industry to innovate and use technology to better partner the Home Team, he said.

But every Singaporean needs to play a part too in keeping Singapore safe and secure, through the Total Defence approach, said Mr Heng.

At the national level, Singapore plans for the long term and takes measures such as stockpiling critical supplies, diversifying sources of water and strengthening food security.

Mr Heng's emphasis comes as Singapore and Malaysia are discussing several bilateral issues, which include disputes over maritime borders, airspace management and water prices.

Last December, Malaysia also announced it was considering limiting or stopping egg exports, and restricting exports of certain types of seafood.

Mr Heng added that as a people, Singaporeans must have the "psychological and emotional resilience to face crises stoically". "As threats get more sophisticated, Singaporeans must stay vigilant and guard against non-conventional forces that threaten to divide us."

Touching on the importance of national service and its role in forging a deep understanding that each Singaporean has a duty to defend the nation, he urged families and employers to support national servicemen in every way possible.

Meanwhile, Mr Heng noted that a sixth pillar of digital defence was just incorporated into Singapore's Total Defence framework. "Like other pillars of Total Defence, digital defence involves everyone - individuals, community groups, businesses and the Government," he said.

S. Rajaratnam School of International Studies research fellow Graham Ong-Webb said the increased focus on defence and security issues, despite the proportion of spending staying roughly the same this year, could be aimed at sending a message to other countries.

"It shows that we mean what we say and are willing to put that into resourcing to bolster diplomatic, defence and security lines to ensure that Singapore is not compromised in any way," he added.

Investing more in infrastructure to protect against climate change
By Chang Ai-Lien, Science Editor, The Straits Times, 19 Feb 2019

The Government will be investing in infrastructure in a big way and developing long-term plans to protect the country against climate change, Finance Minister Heng Swee Keat said yesterday.

But individuals must also change their ways and work towards a more sustainable future.

"As a low-lying island nation, there is nowhere to hide when sea levels rise," he said. "To protect ourselves against climate change and rising sea levels, we will have to invest more. Together with existing infrastructure needs, our total bill for infrastructure will increase significantly," he said.

Mr Heng pointed out that it is very difficult to project spending needs so far ahead, although the different ministries have done some preliminary estimates.

"We will continue to do our best to look forward, develop fiscal plans well in advance, and put in place the right approach to finance such long-lived major infrastructure. Each generation should contribute its fair share," he added.

The Government's Climate Action Plan, launched in 2016, has seen low-lying roads near coastal areas raised. Changi Airport's Terminal 5 is also being built 5.5m above the mean sea level. And there are pilot projects involving dikes and new reclamation methods on Pulau Tekong to shed light on how to deal with rising sea levels.

Mr Heng said the carbon tax being applied to this year's emissions is an important signal to companies and households to adopt energy-efficient practices.

And the Zero Waste Masterplan, which will be launched in the second half of the year, will look at better management of food waste, e-waste and packaging waste, including plastics, among other issues.

However, individuals must also change their ways, he noted, by adopting the 3Rs: reducing consumption, reusing and recycling.

Building a more sustainable environment also creates opportunities. "Just as we closed the water loop, we can now turn our attention to closing the waste loop," Mr Heng said.

Start-ups are already tackling the challenge: Two companies, UglyGood and Tria, for instance, have been working on innovative ways to convert food-related waste into useful products, he said.

Praising the National Parks Board for its "excellent job" in greening the island, he said that the more than 40 per cent green cover here improves both the living environment and air quality.

"Our beautiful living environment can also be enhanced through the smart use of technology as part of our Smart Nation efforts," he added, giving as examples pneumatic waste collection, the use of district cooling in the Marina Bay area and environmentally friendly buildings. "Today, our shining Little Red Dot can hold its own on the global stage," he said.

But the work is not over: Singapore's development plans must be far-sighted and must include the country's need to be well connected within and with the world.

Within Singapore, there are now about 230km of MRT lines, a figure which will rise to about 360km in the 2030s. Airport and sea port capacities are also being enhanced. "This will strengthen our role as a key node within Asia and to the world."

Mr Heng said the long-term transformation of the city must start with Housing Board estates, where most people live.

"Many cities have large tracts that slip into disrepair over time - we must avoid that. We must strive to make every town in Singapore green and liveable by rejuvenating them systematically over time."

The nation's public housing policies have been uniquely successful because of long-term planning, he said.

"Today, we are not just building new flats. We are improving the quality of life for Singaporeans through the rejuvenation of our public housing estates."

Touching on the upcoming URA Master Plan 2019, he said it would guide the country's urban development over a 10-to 15-year timeframe, ensuring that the limited land could meet the needs of current and future generations.

Diesel duty doubled to 20 cents a litre
By Christopher Tan, Senior Transport Correspondent, The Straits Times, 19 Feb 2019

The excise duty on diesel will be raised from 10 cents to 20 cents a litre with immediate effect.

At the same time, the annual Special Tax for diesel-powered cars and taxis will be reduced further by $100 and $850, respectively, from Feb 18. They were reduced by the same quantums two years ago.

With the change, an owner of a Euro 5 1.6-litre diesel car who pays an annual Special Tax of $540 will now pay $440 a year. And a fleet owner of a diesel taxi who currently pays $4,250 a year will now pay $3,400.

However, these may not fully offset the excise duty at the pumps.

Announcing the move yesterday, Finance Minister Heng Swee Keat said: "Diesel exhaust is highly pollutive, and adversely affects our people's health and quality of life. Many cities in Europe have announced restrictions on diesel vehicle usage. We have also taken steps to discourage diesel consumption."

Owners of private diesel buses and goods vehicles will be granted new road tax rebates for a three-year period from Aug 1 this year to July 31, 2022.

A 100 per cent road tax rebate will be granted in the first year, followed by 75 per cent in the second year and 50 per cent in the third year.

The new road tax rebate of 100 per cent will apply for the period from Aug 1 this year to July 31, 2020.

Diesel school buses and eligible diesel private-hire or excursion buses that ferry schoolchildren will receive additional cash rebates for the same three-year period.

Over three years, Mr Heng said these buses will receive as much as $3,200 in cash rebates.

ComfortDelGro Corp, which has one of the largest diesel fleets here, said it will be passing on the entire savings resulting from the reduction in the annual Special Tax for diesel taxis to its drivers. The savings will help offset a foreseeable increase in running cost.

Taxi drivers and private-hire drivers who use diesel vehicles will incur around $1,000 more a year if their driving patterns do not change.

This is based on an average daily mileage of 300km and a fuel efficiency of 10km a litre.

A private bus operator will incur around $2,000 more per full-sized bus a year, based on an average mileage of 140km a day and a fuel efficiency of 2.5km a litre.

At 20 cents a litre, the duty on diesel is still less than half that for petrol.

BUDGET 2019: Drawing on past for the future

Reflecting on past to chart way forward
Lessons learnt from island's history will help Singaporeans forge better future together: Heng
By Melody Zaccheus, Heritage and Community Correspondent, The Straits Times, 19 Feb 2019

As Singapore marks its bicentennial year this year, Finance Minister Heng Swee Keat urged Singaporeans to reflect on the "twists and turns" in the island's history to chart a path forward for an even better future, and to respond to challenges with grit and determination.

He said the country is today facing four major shifts: The pivot in global economic weight towards Asia; rapid technological advancements; changing demographic patterns; and the decline in support for globalisation, with some countries questioning its value.

On the global stage, trade frictions between the United States and China have developed into a strategic competition of strength and of governance systems, and this has raised geopolitical uncertainty.

Closer to home, he noted that the 10 Asean economies collectively are projected to become the fourth largest in the world by 2030. However, bilateral issues have surfaced with Malaysia.

He said these need to be resolved based on mutual respect and common interests as well as international laws and norms. He added that Singaporeans must remain united.

On the domestic front, Mr Heng said longer-term challenges need to be addressed, including ageing, social mobility, inequality, economic transformation and climate change.

Mr Heng said the Budget's strategic plan centres on building a strong, united Singapore for the country to continue to progress. It will draw on the country's strengths and the Singaporean DNA - of openness, multiculturalism and self-determination - forged from its roots as an open port.

The Government also picked up on three lessons from the country's history. The first is that as long as the Republic stays relevant and useful, Singapore and Singaporeans will have a place in the world. The country, he said, must develop deep capabilities, stay open and connected, and draw ideas and talents from around the globe.

"Singaporean talents have been making their mark in various fields, and connecting with other highly skilled individuals from around the world will make our team even stronger," he added.

Mr Heng also noted that external events around Singapore will also shape and reshape lives here. "Our people have shown time and again that we can take the long view, adapt with the times and thrive," he said.

The third lesson learnt is that Singapore draws its strength from its diversity, "by focusing on what we have in common". He noted that while the country's forefathers clustered around ethnic and religious groups to support one another, this support today is regardless of race, language or religion.

He said that as a city-state, Singapore is nimbler and can adapt to changes faster. It can also take advantage of its strategic location and "serve as a neutral, trusted node in key spheres of global activity".

Mr Heng added: "We strive to be a place where people and ideas congregate, at the frontier of global developments. We want to be a Global-Asia node of technology, innovation and enterprise."

Mr Heng called on all Singaporeans to partner with the Government and support one another to succeed in this endeavour. "We are using our financial resources to help realise our strategies for a strong, united Singapore. But financial resources alone do not get us there," he said.

Changi's T5, Cross Island Line to be partly funded through borrowing
By Karamjit Kaur, Senior Aviation Correspondent, The Straits Times, 19 Feb 2019

The cost of huge infrastructure projects such as Changi East, which includes Terminal 5 (T5), and the Cross Island Line will be partly funded through borrowing, as will other infrastructure investments such as those to tackle climate change.

Finance Minister Heng Swee Keat noted: "For these large and lumpy expenditures where the benefits span many generations of Singaporeans, paying for them through some borrowing is fairer and more efficient."

But the Government will take a different approach to recurrent expenditures in areas like healthcare, pre-school education and security.

Here, spending will be funded by recurrent revenues such as the goods and services tax (GST).

Mr Heng noted that responsible and sustainable borrowing for large infrastructure investments helps instil financial discipline and distributes the share of funding more equitably across current and future generations.

The Government borrowed in the 1980s to build the first MRT lines. Statutory boards and government-owned companies have also financed many major infrastructure projects through borrowing.

Changi's T5 - being built as part of the Changi East development that includes other aviation-related facilities - is slated to open around 2030.

The first stretch of the Cross Island Line will be ready by 2029.

Changi Airport Group will operate T5 and take out loans to fund its share of the cost, Mr Heng said.

The Government, with the President's agreement, will provide a guarantee for the loans to lower financing costs, he added.

Passengers and airlines using Changi Airport have also been paying higher fees since last July to help fund the expansion plans, with the $34 fee to fly out of Changi raised by $13.30, and further hikes planned.

The Government is also studying the feasibility of using government debt as part of the financing mix for long-term infrastructure projects, Mr Heng said.

Singapore's ability to plan for the long term is its strategic advantage, but this can be realised only with a sound fiscal plan, he said, adding: "While our nation's needs are growing significantly, we must continue to take a disciplined and prudent approach."

He said recurrent social and security spending are "necessary expenditures - to take care of our elderly, give our children a good start in life, and keep Singapore safe and secure for our families".

Many countries fund these areas through borrowing, but such borrowing shifts the burden of paying for today's needs onto future generations. "That is not the Singapore way," he noted.

Mr Heng said a fairer and more robust approach is to meet recurrent spending with recurrent revenues, which is why Singapore must continually review its tax system to ensure its resilience.

The GST will be raised by two percentage points some time between 2021 and 2025. Mr Heng noted that when this happens, "we will ensure that our overall system of taxes and transfers remains fair and progressive".

The Government will continue to absorb GST on publicly subsidised education and healthcare, provide more help to lower-income households and the elderly, and cushion the impact of the increase for a period through an offset package that will benefit lower-and middle-income households more. Details will come later.

Mr Heng noted that Singapore's main indirect tax, the GST, is not high by international standards, even after it will be raised to 9 per cent. The Organisation for Economic Cooperation and Development average is 19 per cent.

Smaller tax-free shopping and alcohol allowances
By Tiffany Fumiko Tay, The Straits Times, 19 Feb 2019

Returning travellers have a smaller allowance on tax-exempt overseas shopping, under new rules that kicked in at midnight today.

Those who spend fewer than 48 hours outside Singapore will now avoid paying the 7 per cent goods and services tax (GST) only if the total value of items bought abroad is $100 or less, down from $150.

The threshold has also been lowered from $600 to $500 for travellers who spend 48 hours or more outside the country, Finance Minister Heng Swee Keat announced yesterday. The alcohol duty-free concession will also be reduced, from 3 litres to 2 litres, starting on April 1.

In a joint statement yesterday, the Inland Revenue Authority of Singapore and Singapore Customs said the revision of GST import relief limits is aimed at keeping Singapore's tax system resilient, amid rising international travel.

They also reminded travellers to declare their taxable goods upon arrival in Singapore, and advised them to keep their purchase receipts.

Advance declaration and payment of GST can also be made using the Customs@SG mobile app or Web portal, the statement said.

Failure to declare, or making an incorrect declaration, is an offence that carries a fine of up to $10,000 or the equivalent of the amount of tax payable - whichever is greater - as well as up to 12 months in prison.

Mr Adrian Ball, EY Asia-Pacific indirect tax leader, said the Budget "continues to look at GST as a key source of revenue for the Government, with a focus on tightening concessions". The smaller GST import relief and alcohol duty-free allowances were "unexpected", and it remains to be seen if more enforcement action will follow, he said.

Housewife Jessie Neo, 44, who shops in Johor Baru, said: "Usually, I spend less than $100 on groceries, but I have to be more careful now."

BUDGET 2019: Summing up the numbers

Overall Budget surplus of $2.1 billion for FY2018
Figure is $2.7 billion rise from earlier forecast; boost from HSR suspension, stamp duty collections
By Adrian Lim, Political Correspondent, The Straits Times, 19 Feb 2019

An overall Budget surplus of $2.1 billion is expected for the 2018 financial year, a $2.7 billion increase from the $0.6 billion deficit that was forecast a year ago.

The fiscal boost was due to the two-year suspension of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project and higher-than-expected stamp duty collections. A $2.1 billion surplus is equivalent to about 0.4 per cent of Singapore's gross domestic product.

It is much lower than the $10.86 billion achieved in FY2017. If the Government's top-ups to funds and the Net Investment Returns Contribution (NIRC) are excluded, a basic deficit of $7 billion is expected for 2018.

The 2018 Budget was expansionary, Finance Minister Heng Swee Keat said yesterday.

Revenue is expected to come in at $73.7 billion, a $1 billion increase over earlier budgeted estimates.

This is mainly due to higher collections from statutory boards' contributions, corporate income tax, stamp duties and other taxes, but the increase was partially offset by decreases in vehicle quota premiums, and Customs and excise fees.

Owing to lower-than-projected certificate of entitlement (COE) prices and higher disbursements of COE rebates, revenues from vehicle quota premiums are estimated to decrease by $2.3 billion to $3.3 billion - a 41.4 per cent fall.

Total expenditure for FY2018 ending March 31, 2019, is revised downwards by $1 billion to $79 billion.

This exceeds the actual expenditure the year before by $5.4 billion, owing to more being spent in defence, home affairs, transport plus trade and industry, among others.

While operating expenditure was revised upwards by $1 billion, development spending is expected to be lower - by $2 billion - against an earlier estimated sum.

The main reason is the HSR project suspension and rescheduling of works for some public housing projects. Partially offsetting it are the higher requirements for the Research, Innovation and Enterprise 2015 Plan, and the Economic Development Assistance Scheme.

The NIRC is projected to be $16.4 billion. The latest 2019 Budget remains expansionary, with the basic deficit forecast to reach $7.1 billion.

Ministries' total expenditures are projected to be $80.3 billion, 1.6 per cent up on 2018.

Higher spending in healthcare, defence, and the environment and water resources will be offset by lower transport expenditure, owing to factors including the HSR project suspension.

The Government is also setting aside funds to meet long-term needs, including $6.1 billion for the Merdeka Generation Package and $5.1 billion for long-term care support. On the whole, an overall deficit of $3.5 billion is projected for FY2019.

"We have sufficient fiscal surplus accumulated over this term of government to fund the overall deficit in 2019. There is no draw on past reserves," Mr Heng noted.

BUDGET 2019: Responding to the Budget

Budget gets thumbs-up from older folk and young people
Support for needy and Merdeka Generation, and plans to tackle climate change welcomed
By Rei Kurohi and Fabian Koh, The Straits Times, 19 Feb 2019

As part of the $1.1 billion Bicentennial Bonus announced by Finance Minister Heng Swee Keat yesterday, 1.4 million lower-income Singaporeans will receive up to $300 in GST Voucher cash payouts.

This is "very significant", said the National Council of Social Service president Anita Fam, who added that she was "heartened by the generosity" of the Budget.

Mr Heng also announced a $200 million Bicentennial Community Fund, which will match donations to Institutions of a Public Character (IPCs) dollar for dollar.

Ms Fam, a former lawyer, said she hopes this will spur Singaporeans to donate more.

"I am really hopeful that the dollar-for-dollar matching for donations to IPCs will incentivise giving, especially to social service agencies which are doing good but are finding resourcing a challenge."

In his speech, Mr Heng also outlined some of the benefits to those in the Merdeka Generation, including a one-off $100 top-up to their PAssion Silver cards and an annual $200 Medisave top-up until 2023.

Singaporeans born between Jan 1, 1950 and Dec 31, 1959 will also get additional subsidies for outpatient care and additional MediShield Life premium subsidies.

Retiree Karin Tan, who worked in sales in the industrial sector, is "very happy" with the package.

"I am currently already retired, and do not draw any income. This will help subsidise my medical costs," said Ms Tan, 64, who has high blood pressure and goes to the polyclinic every four months.

Mr Ameerali Abdeali, 68, head of a safety consultancy company, said that while the material benefits of the Merdeka Generation Package are attractive, it is the intangible aspect that is more important to him.

"I appreciate the recognition and validation that members of my generation are being given for our contributions to the country," he said.

Mr Ameerali, who has seven grand-nieces and grand-nephews, also praised the boosts that school-going children will receive.

There will be one-off top-ups of $150 for the Edusave accounts of Singaporean students aged seven to 16, and $500 for the Post Secondary Education accounts (PSEA) of students aged 17 to 20. The PSEA funds can be used to pay for fees in local polytechnics and universities, and also for skills-related upgrading courses.

Young people The Straits Times spoke to welcomed the announcement that the Government will invest in long-term plans to protect Singapore from the effects of global warming.

Mr Heng announced a carbon tax on this year's emissions and the Zero Waste Masterplan, to be launched in the second half of the year, which will focus on waste management and other issues.

But individuals must also change their way of life and adopt the 3Rs: reduce, reuse and recycle, he said.

Undergraduate Arjun Dhar agreed. "We are a city with the highest greenery density in the world, in which otters live in the middle of our central business district," said the 22-year-old, who is studying law.

"As we reflect on the Bicentennial, Singapore should also look to inculcate in all individuals a sense of care for the planet that nurtures us. This means replacing the idea that we are too small to make a difference with the idea that we each have a responsibility to try."

Miss Pamela Low, 24, a member of the Singapore Youth for Climate Action, said: "The Government eagerly investing in infrastructure to mitigate rising tides and sharing about it at the Budget shows the urgency of addressing the impact of climate change on the national agenda as it would become costlier in the future."

But she added that Singapore cannot simply rely on individuals to take voluntary actions, and that better policies are needed to help them understand the true costs of their actions on the environment.

Related
Singapore Budget 2019

Merdeka Generation Package

Budget 2019 - Overview of Tax Changes

↧

Merdeka Generation Package unveiled at Singapore Budget 2019

February 20, 2019, 7:50 am

≫ Next: Rare images of Singapore: French photographer Paul Piollet donates Singapore snapshots taken from the 1970s to 1990s

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Merdeka Generation Package: What you need to know

By Nicole Chang, Channel NewsAsia, 18 Feb 2019

Healthcare subsidies, money for healthy activities and public transport – these are some of the benefits eligible older Singaporeans can look forward to as part of the Merdeka Generation Package.

First announced during Prime Minister Lee Hsien Loong’s National Day Rally last year, the package is meant to express appreciation for the Merdeka Generation and help them with healthcare costs as well as to keep active and healthy.

Finance Minister Heng Swee Keat on Monday (Feb 18) shared more details about this in his Budget 2019 speech.

WHO’S ELIGIBLE?

The package will benefit close to 500,000 Singaporeans. These include:

- Those born in the 1950s

- Those born in 1949 or earlier but who missed out on the Pioneer Generation Package

All beneficiaries must have obtained their citizenship by 1996.

HOW MUCH WILL IT COST?

The package is estimated to cost more than S$8 billion – in current dollars - over recipients’ lifetimes. A total of S$6.1 billion will be set aside for a new Merdeka Generation Fund. With interest accumulated over time, this will cover the full projected costs of the package, said the Finance Minister in his speech.

WHEN WILL THIS BE ROLLED OUT?

All eligible seniors will be notified by April 2019, and will receive their Merdeka Generation cards from June this year. A more detailed timeline and further information will be provided at the Committee of Supply Budget debate.

Here’s what’s on offer:

1. S$100 TOP-UP TO PASSION SILVER CARDS

Seniors will get a one-time S$100 top-up to their PAssion Silver cards. This can be used to pay for activities and facilities at community clubs, entry to public swimming pools and public transport, among other things.

2. MEDISAVE TOP-UPS

Starting this year, Merdeka Generation seniors will get a MediSave top-up of S$200 every year for five years until 2023, to help them save more for healthcare needs.

3. ADDITIONAL OUTPATIENT CARE SUBSIDIES, FOR LIFE

Special Community Health Assist Scheme (CHAS) subsidies will be available for package recipients, geared towards common illnesses, chronic conditions and dental procedures. All Merdeka Generation seniors will receive these regardless of income, including those without a CHAS card at the moment.

They will also get an additional 25 per cent off subsidised bills at polyclinics and public specialist outpatient clinics.

4. ADDITIONAL MEDISHIELD LIFE PREMIUM SUBSIDIES

Also for life.

These subsidies will start from 5 per cent of MediShield Life premiums and increase to 10 per cent after seniors hit the age of 75.

This translates to a discount of between S$31.50 and S$918, depending on the premium amount.

5. ANOTHER “PARTICIPATION INCENTIVE” TO JOIN CARESHIELD LIFE

Seniors who join CareShield Life will get an extra S$1,500 (when the scheme becomes available for existing cohorts in 2021).

This is on top of a previously announced S$2,500 sum, meaning that all Merdeka Generation seniors who join the scheme will end up getting S$4,000 of participation incentives.

BUDGET 2019: Honouring the Merdeka Generation

Medisave top-up, CHAS subsidies for Merdeka Generation
Most of $6.1 billion set aside for package to ease healthcare costs of nearly 500,000 Singaporeans
By Linette Lai, Political Correspondent, The Straits Times, 19 Feb 2019

A total of $6.1 billion will be set aside for the Merdeka Generation Package, the bulk of which will go towards easing the burden of healthcare costs for nearly 500,000 Singaporeans.

Announcing details of the much-talked-about package yesterday, Finance Minister Heng Swee Keat called it a "gesture of our nation's gratitude" for those in that generation, who were born between Jan 1, 1950, and Dec 31, 1959.

"It will provide them better peace of mind over future healthcare costs, while helping them to stay active and healthy," he said.

Starting this year, those in the Merdeka Generation will receive a $200 Medisave top-up every year until 2023.

They will also get higher subsidies under the Community Health Assist Scheme (CHAS) and an extra 25 per cent discount on their bills at polyclinics and public specialist outpatient clinics.

On top of that, they will get either 5 per cent or 10 per cent off their MediShield Life premiums, as well as an extra "participation incentive" of $1,500 if they choose to join the national disability insurance scheme CareShield Life.

And to support this group's active lifestyles, the Government will give them a one-off $100 top-up to their PAssion Silver cards. This money can be used to pay for public transport, entry to public swimming pools and activities at community clubs, among other things.

Mr Heng estimated that the package will cost more than $8 billion, in current dollars, over the Merdeka Generation beneficiaries' lifetimes.

The $6.1 billion set aside during this year's Budget will, with interest accumulated over time, cover the package's full projected costs, he said.

The oldest people in the Merdeka Generation are now 69 years old, and they will be able to enjoy the benefits of the package for many years, Mr Heng said.

He added that the finance and health ministries took this into account when sizing the budget for these benefits.

"This is a significant commitment by the Government," Mr Heng said. "It is important that the Government of the day continues to monitor the patterns and cost of healthcare utilisation, and life expectancy over the next 30 years or more, so that the Government is able to meet this commitment."

The Merdeka Generation Package comes five years after $8 billion was set aside during Budget 2014 for the Pioneer Generation Package.

For those in the Merdeka Generation, Chas subsidies for common ailments, chronic conditions and dental procedures will be higher than what lower-income blue Chas card holders get.

They will be able to get these subsidies regardless of income, even if they do not have a Chas card today.

They will also receive an extra 5 per cent off their annual MediShield Life premiums, which will go up to 10 per cent after they turn 75.

And the new $1,500 bonus for joining CareShield Life means that they will get a total of $4,000 if they sign up for the insurance scheme, since the Health Ministry had previously announced a similar $2,500 sign-up bonus for people born before 1960.

Merdeka package more generous than expected
By Salma Khalik, Senior Health Correspondent, The Straits Times, 19 Feb 2019

The Merdeka Generation (MG) Package for Singaporeans born in the 1950s has turned out to be more generous than anticipated.

All seniors from this generation will get a $100 top-up to their PAssion Silver cards as well as an additional $1,500 if they opt in to CareShield Life when it is open to them from 2021.

Prime Minister Lee Hsien Loong had said that the MG Package would be less generous than the Pioneer Generation (PG) Package.

This is only fair as the PG was around in the early days of nationhood and would have lower savings than the younger MG, and, hence, requires more help.

The MG is getting somewhat similar benefits but at a lower rate. The MG card provides subsidies at Community Health Assist Scheme (Chas) clinics that sit somewhere between what the PG gets and what a blue Chas card gives.

The MG gets an additional 25 per cent off medicine and services at public clinics.

The MG will also get top-ups of $200 a year in the Medisave accounts, but only for five years. This is fair as the MG will live longer and hence collect benefits for many more years than the PG.

Those in the MG will also get 5 per cent to 10 per cent subsidies for their MediShield Life premiums. Again, much lower than that for the PG, but those in the MG would have more in their Medisave to pay for this. All in the MG will get these benefits, with those who get means-tested help continuing to receive it.

What they will not be getting, though, is the $100 a month for life should they become disabled.

That is because those in the MG, unlike those in the PG, were young enough to join ElderShield when it was launched. Instead, they are being offered an additional $1,500 to encourage them to switch from ElderShield to CareShield Life.

This came as a very pleasant surprise as those in the MG already get the "participation" bonus of $2,500 announced earlier.

Related
Singapore Budget 2019

Budget 2019: Building A Strong, United Singapore

Merdeka Generation Package to include those who missed out on Pioneer package, says Prime Minister Lee Hsien Loong

Merdeka Generation Package

↧

Rare images of Singapore: French photographer Paul Piollet donates Singapore snapshots taken from the 1970s to 1990s

February 25, 2019, 3:14 am

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≪ Previous: Merdeka Generation Package unveiled at Singapore Budget 2019

A gift to remember: Images of a bygone era
By Melody Zaccheus, Heritage and Community Correspondent, The Straits Times, 23 Feb 2019

Children lining a Chinese opera stage watching dramatic wayang performers; a woman selling dim sum from a roadside stall, boats ferrying charcoal and bakau wood used in construction.

These are just a few of the many images of Singapore in the 1970s to 1990s captured by French photography enthusiast Paul Piollet, 84, when he was based here and in Indonesia. Even after he retired in 1986, after a career in the oil industry, he returned to Singapore about twice a year to take snapshots of the island's street life.

Earlier this month, Mr Piollet, who now lives in Clermont-Ferrand, France, donated 441 colour slides to the National Heritage Board (NHB). He had previously donated a smaller number of images to the National Library and National Archives of Singapore.

Mr Piollet, who is in Singapore to donate the collection, said: "I didn't want these photos to be forgotten. The wisest thing to do is to leave them in the hands of Singaporeans than forgotten in a cupboard in France."

NHB's assistant chief executive of policy and community, Mr Alvin Tan, said Mr Piollet's snapshots of Singapore are quite rare.

He added: "This donation is important because it provides us with a visual record of Singapore during a period when photo-documentation was rare and few had the means to capture such scenes."

Mr Piollet, who would often walk the streets of Singapore and take photos on his Pentax camera, using Kodachrome 35mm film, said he was drawn by the island's tropical weather, its architecture, culture, music and scents.

"I very much enjoyed the culture and colour of old Singapore," he said.

During his free time, he would hop on buses and travel to the outskirts of the island, to areas such as Choa Chu Kang and Woodlands, which he described as Singapore's countryside. There, he would explore clusters of kampung and capture the area's activities.

His snapshots also document Bugis boats from the Riau settlements, old Chinese kampung temples, provision shops, children at play, as well as old trades including a shop in Victoria Street which made and sold wooden barrels, and another in Chinatown specialising in carvings of religious figurines.

NHB said it will be doing "forensics" on Mr Piollet's images to add descriptors on the content, location and year they were shot.

The board will then explore ways to make them accessible through an exhibition or publication.

It will also look into making the collection available online, said Mr Tan.

↧

Budget 2019 Foreign worker quota cuts: Will they finally nudge services?

February 25, 2019, 6:10 am

≫ Next: HDB 2-Room Flexi Flats: 9 in 10 older buyers choose shorter leases

≪ Previous: Rare images of Singapore: French photographer Paul Piollet donates Singapore snapshots taken from the 1970s to 1990s

Getting manpower-lean
Results from previous moves to reduce the sector's dependence on foreign manpower have been sluggish. Insight looks at what might be in store with the latest efforts
By Joanna Seow, Manpower Correspondent and Sue-Ann Tan, The Sunday Times, 24 Feb 2019

Six years since the foreign manpower tap was last tightened in the service sector, businesses are being told they need to do more.

While some have heeded the call to become more productive, others have lagged behind, leading Finance Minister Heng Swee Keat to say in his Budget speech that growth in the number of foreign service staff may be on an "unsustainable path".

"Our (local) workforce growth is tapering, and if we do not use this narrow window to double down on restructuring, our companies will find it even harder in the future," he said last Monday.

Thus the service sector Dependency Ratio Ceiling (DRC) - the proportion of foreigners on work permits or S Passes a firm can employ - is being cut from 40 per cent to 38 per cent and then 35 per cent over two years.

The sub-quota for S Pass workers - mid-skilled foreigners paid at least $2,300 a month - will also drop from 15 per cent to 13 per cent and then to 10 per cent.

What does this mean for companies? Now, if a firm needs 20 staff to operate, it can hire 12 locals and eight foreign workers.

Come Jan 1, 2021, if it needs 20 staff to operate, it will need to hire another local worker to replace one foreigner. Or if it manages to operate more efficiently, it can retain the 12 local staff and employ only six foreign workers.

What is holding the sector back?

Insight looks at the challenges businesses are facing and how the quota cuts are likely to play out.

WHERE THE WORKERS ARE

The service sector has been employing more and more workers over the years, even as manufacturing and construction cut back.

In particular, growth in the number of S Pass and work permit holders in services has been picking up pace. It rose by about 3 per cent a year, or 34,000, in the past three years, Mr Heng said.

A spokesman for the Ministry of Manpower (MOM) said the increase was broad-based across services, but the segments that will be hit hardest by the quota cuts will be accommodation, food services, real estate services, transportation and storage, and arts, entertainment and recreation.

Mr Heng also noted that the increase in the number of S Pass holders in services last year was the highest in five years.

These are workers who have at least a diploma or a degree qualification, and many work in frontline service jobs like customer service, food and beverage (F&B) management and nursing, recruiters tell Insight.

Others are hired to be information technology (IT) technicians and engineers and programmers, due to growing demand for IT services and the small local tech talent pool, said ManpowerGroup Singapore country manager Linda Teo.

Service staff on S Passes, said PeopleWorldwide Consulting managing director David Leong, are usually from China and the Philippines, and those in technical roles may come from India, Vietnam and Myanmar.

Some likely come from the Employment Pass (EP) segment after the minimum salary to qualify for the pass was raised in 2017 from $3,300 to $3,600.

Manpower Minister Josephine Teo said on Facebook after the Budget speech that if service industries remain very labour-intensive and see too much growth in foreign manpower, jobs may be stuck in the lower-value range and local workers will face poorer wage growth prospects.

Furthermore, firms need to be prepared as the supply of foreign manpower may be curtailed eventually as opportunities in labour-sending countries improve, she said separately in a radio interview.

SLOW PROGRESS

Efforts to lower the service sector's dependency on foreign manpower are not new - the quota was cut from 50 per cent to 45 per cent in 2012 and then to 40 per cent in 2013.

Levy rates - monthly fees paid by businesses to MOM for every foreign worker employed - were also raised over the years.

But the results have been sluggish, said ManpowerGroup's Ms Teo, adding: "This new reduction is sending service sector companies a stronger message on the urgency to transform."

The F&B and retail segments in particular have been unable to shake off their reliance on labour.

According to the Economic Survey of Singapore for last year, productivity in food services grew by 2.7 per cent while that in retail trade grew by just 1.1 per cent, well below the overall 3.7 per cent.

Why is it so difficult to change the situation in these two industries?

Employment lawyer Amarjit Kaur, a partner at Withers KhattarWong, said low barriers to entry and high rates of failure contribute to stunted productivity growth in the service sector, as small and medium-sized enterprises (SMEs) are often fighting for survival at a fundamental "cost of doing business" level.

"As such, innovation, digitalisation, and training of staff are viewed as frills that add to the operational costs for business," she said.

Nanyang Polytechnic's School of Business Management director Esther Ho said foreign workers typically cost less both in monetary terms like pay and bonuses, as well as in non-monetary terms like leave entitlement, medical benefits and maximum hours they are willing to work.

In F&B and retail, they usually are prepared to accept tougher conditions than locals would.

Also, it is harder to automate service processes that require high levels of human intervention, such as stocking shelves and preparing food, compared with a production line.

F&B companies often depend on personalised service and unique experiences to attract customers, so the take-up rate of technology adoption or standardisation to improve efficiency is slower, said assistant professor of finance Aurobindo Ghosh from the Lee Kong Chian School of Business at Singapore Management University.

Other service sector segments have performed better in terms of raising productivity - finance and insurance posted productivity gains of 4.2 per cent last year, while information and communications rose 2.8 per cent.

In the accommodation industry, which includes hotels, productivity grew by 6.3 per cent last year.

This could be partly because these outward-oriented segments are more focused on the external market which has a higher growth potential than the domestic market, said DBS economist Irvin Seah.

Meanwhile, Finance Minister Heng highlighted the manufacturing sector - also an outward-oriented sector - for having done well to deploy staff efficiently.

Productivity for the sector rose 9.8 per cent last year.

Compared with the service sector, the growth in foreign manpower in manufacturing was much slower. The number of S-Pass and work permit holders employed in manufacturing grew by 4,600 in the last three years, said the MOM spokesman.

Singapore Manufacturing Federation president Douglas Foo said companies have been adopting a wide range of automation and digital solutions. The most common are inventory management systems to keep track of stock, sales and deliveries, and production planning systems to optimise processes and equipment usage.

These are able to increase efficiency by more than 50 per cent and, in some cases, manufacturing costs have been reduced by 70 per cent, said Mr Foo, a Nominated MP.

With the news of the quota cuts, some observers expressed concern about the healthcare industry, which will need to grow to look after Singapore's ageing population.

Healthcare Services Employees' Union president K. Thanaletchimi said that on average, out of every 10 nurses in public healthcare institutions, three to four are foreign. In the intermediate and long-term care sector, about seven or eight in 10 of the workers providing nursing support are foreign.

NTUC Health chief executive Chan Su Yee said, on average, local care staff stay for just 1½ to 2½ years. To attract more workers, the social enterprise has redesigned jobs at its nursing homes and for its home care and senior daycare services to include part-time work arrangements and bite-sized roles.

A Ministry of Health (MOH) spokesman said that since 2012, over 70 public healthcare and community care organisations have benefited from projects to improve productivity, such as through assistive equipment and process redesign.

The MOM and MOH spokesmen said the quota changes will be phased in progressively, and the ministries "will continue to help healthcare providers ensure that day-to-day operations are not affected".

IMPACT OF THE CUTS

The latest round of cuts is less drastic than the previous changes announced in Budget 2012 and Budget 2013 and which took effect in July of those years.

This time, businesses have more time to adjust as the changes take effect in two tiers over the next two years.

There are also schemes in place to help them make the transition to a more manpower-lean operating model. These include the Lean Enterprise Development Scheme, which started in 2015 and provides some flexibility for companies to employ more foreign workers while they train locals to do more high-value jobs. And there are grants such as the Productivity Solutions Grant, which subsidises the cost of off-the-shelf technology to boost productivity. It is also being expanded to support out-of-pocket expenses for training.

A spokesman for the Ministry of Trade and Industry said that technology, where sensibly deployed, can complement the human touch in the service sector to reduce headcount and make existing jobs more attractive for locals.

Companies can tap government support to "decisively re-engineer their business processes for long-term growth", said the spokesman.

Still, economists say the tighter quotas are likely to push up costs as companies raise wages to attract Singaporean workers, which poses an inflation risk.

On the other hand, said UOB economist Barnabas Gan last week at The Straits Times-UOB Budget Roundtable, if firms decide to scale down operations in response to the labour shortage, that could mean potential headwinds to the growth of the service sector.

"That would affect growth in general, especially given that services make up about 70 per cent of GDP (gross domestic product)," he said.

However, Singapore Business Federation chief executive Ho Meng Kit, who was also on the panel at the roundtable, said that the bulk of service companies are not at the ceiling yet.

"We should not overplay the impact of this tightening, it impacts only those at the ceiling," he said.

Observers are undecided about whether the eventual quota of 35 per cent will be a tipping point that will push companies to adopt more efficient business models en masse.

Different service segments are likely to respond differently, depending on the nature of the work.

Ms Kaur added that the broad-brush measure will pose challenges to some segments which are heavily reliant on human capital and do not lend themselves easily to automation and digitalisation, such as childcare and eldercare services.

Ms Irene Boey, vice-president of strategies and development at the Association of Small and Medium Enterprises, said that it is important to look at the root cause of why SMEs in various segments are not restructuring as fast as others.

"Although we have advance notice... the deferment of lowering certain DRC in certain segments might be necessary," she said last week, during a panel discussion hosted by radio station MoneyFM.

Association of Chartered Certified Accountants' Singapore Network Panel chairman James Lee said during the MoneyFM event that some jobs where the human touch is needed can still be enhanced through technology .

For example, nurses may each need to look after more patients in the future, but they can be more efficient if, for example, their mobile devices can schedule tasks for them such as what time a patient should take medicine and what kind to take, he said.

ManpowerGroup's Ms Teo said the tighter quotas are also a good opportunity for companies to revamp their business strategy, and this push for change may lead to a more vibrant F&B and retail scene.

As they transform, said National Trades Union Congress assistant secretary-general Patrick Tay at the ST-UOB roundtable, firms should share the benefits with workers by providing better jobs and wages.

Ultimately, for the shift to a more manpower-lean service model to take off, businesses need to be able to cut manpower without fearing a loss in revenue if customers turn to competitors with more of a personal touch.

"If everybody is forced to do that because of the DRC coming down... companies will have to compete in what they can offer, rather than in gold-plated service which is not going to be efficient in the Singapore economy," said Singapore University of Social Sciences economist Walter Theseira, at the roundtable.

Consumers may need to pay more for service, or accept a different type of service - one in which they play a bigger role, such as with food orders placed through tablets instead of waiters.

However, at least robots and touch-screens can work round the clock, noted PeopleWorldwide's Mr Leong.

"The flavour of service will change. Nothing wrong, just that the taste will be different."

Foreign worker quota cuts: Uphill task for F&B and retail sectors
By Sue-Ann Tan, The Sunday Times, 24 Feb 2019

He may be the owner of his halal eatery, but such is the service sector manpower crunch that on weekends, Mr Feroz Mak has to roll up his sleeves and be cook and cleaner due to a lack of staff.

He has 19 staff including those who do cooking, cleaning, serving and food collection as well as research and development.

But with his eatery Mak's Place - The Hawkerant at Changi being open six days a week and during later hours - 4pm till 1am, this is not enough.

He says his foreign-to local-staff ratio is also at the maximum of the Dependency Ratio Ceiling (DRC) for the service sector. He has 13 local staff and six foreign workers. His situation is symptomatic of the problems that food and beverage companies and retailers will face when the DRC is lowered.

Those in the service industry tell The Sunday Times they will be hit hard with the new foreign worker quotas, in a sector that finds it hard to draw local workers. Mr Mak says: "We cannot afford to pay salaries comparable to those of fancy restaurants." Smaller businesses might have to downsize or close shop, he adds.

Ms Wahida Wahid, director of Hararu Izakaya, a halal charcoal-grill restaurant, says: "Local labour don't stay long in the F&B industry. Most prefer to work part-time until they find their dream 9-to-5 jobs instead of the long hours in this sector, despite benefits and overtime payout."

Jacob's Cafe director Lim Tow Soon says local workers would rather work in IT, finance or business management roles, and have the view that "the service line is taboo and undignified".

The president of the Restaurant Association of Singapore (RAS), Mr Vincent Tan, describes the latest DRC news as a "bitter pill to swallow", saying: "This industry is deemed not as sexy compared with other sectors. Many members have given feedback that the challenge in hiring locals is prevalent regardless of the higher salaries offered."

To cope, Mr Mak says his firm has tried to develop technology for its operations. However, it is costly and cannot completely replace the worker in a sector highly dependent on the human touch. He has tried to use a robotic chef programmed to do repetitive tasks in the kitchen. "But such research work is expensive and it cost around $300,000 over three years, without returning any significant revenue yet. It is a big risk for small companies. It is also a long process," he says.

RAS' Mr Tan says the organisation has been constantly encouraging members to increase productivity with digital solutions, but the process is an uphill climb. "Implementation is challenging to new entrepreneurs due to the capital outlay required and their challenge to be profitable and survive the initial years of operation. Also, there is always the dilemma of investing in technology versus maintaining adequate cash flow."

For retailers, the human touch remains the most important. Says Singapore Retailers Association president R. Dhinakaran: "To automate the retail shops totally or partially will not be able to provide the customer service standards expected by consumers."

Meanwhile, hawker stall You Tiao Man which sells dough fritters in Toa Payoh has found a solution by employing mature local workers. Director of the You Tiao Man business Audrey Chew says: "We adjusted our hiring policies to employ more local labour, particularly from the generation aged 55 years and above. They are resilient and gritty, possessing the patience and work ethic required to succeed in today's challenging F&B industry." She has three foreign staff and seven local employees - two of whom are part-timers.

S Pass holder prepared to put in extra effort
By Sue-Ann Tan, The Sunday Times, 24 Feb 2019

Forty-five-year-old Mr Zhu Shenggang hails from Shandong, a province in eastern China. But for the past 12 years, Singapore has been home for the S Pass holder, who is a head chef at a halal eatery serving Asian and Western cuisine.

An S Pass worker refers to a mid-skilled foreign employee who earns at least $2,300 a month.

Mr Feroz Mak, founder of the eatery, says he hires foreigners like Mr Zhu because the job hours and conditions make it hard to hire locals. The restaurant opens at 4pm and closes past midnight, including on weekends.

"This set of work hours is not one which Singaporeans like to be involved with," he says, adding that the salary is also not attractive to Singaporeans.

When Mr Zhu started work at Mak's Place - The Hawkerant in 2006, his salary was around $2,500, but is now around $3,600.

"It is high compared with what I would get back home," he says. "I do it so my children get a good education and a bright future."

Mr Zhu - who has picked up a local Mandarin accent - tells The Sunday Times: "I decided to come to Singapore to work because back then, my two children were both six years old and just about to enrol in school.

"I also heard many positive things about Singapore from friends who had started jobs here."

Mr Zhu had trained in Chinese culinary skills. However, he soon realised that the Singaporean's palate was different from what he was used to - in his province, it is "heavier", as he puts it.

With years of experience now under his belt, Mr Zhu helps to cook, maintain the restaurant and train junior chefs who come from countries including China, Malaysia and the Philippines. There are around six chefs in the kitchen he works in.

He works six days a week, from 3pm to about 1am, as the restaurant opens only for dinner.

One challenge of working here is that of missing a large part of his children's lives. They are now 20 years old and in university.

"I call them every day," he says. Mr Zhu returns to his family for about a month every year.

He adds that he is concerned he might have to return to China when his S Pass expires in a few years' time.

"I hope to keep working here because my children still need my money. I also have grown very attached to Mak's Place and Singapore, which has become a part of my life."

Using tech to resolve the manpower crunch
By Sue-Ann Tan, The Sunday Times, 24 Feb 2019

Staff at furniture retailer Scanteak used to spend around two hours a day planning delivery routes.

Not any more, thanks to the adoption of a delivery automation application that plans routes and tracks delivery jobs. Staff can now easily check on the status of deliveries.

This increases productivity and also frees staff up to do other jobs.

The delivery app is an example of how retailers can use technology, following the lowering of foreign worker quotas, to push the service sector to be less labour intensive.

The regional marketing director of Scanteak, Ms Jamie Lim, says: "The challenge is usually in managing change and convincing the team to adopt technology and try new ways of performing tasks."

She says companies also have to find technology that is suitable for their needs and at the right price.

Scanteak's app was developed by a vendor and cost around $20,000.

With such tools, the manpower crunch can be resolved.

About 36 to 38 per cent of the Scanteak workforce now is made up of foreign labour, such as workers from China and Malaysia. Ms Lim says: "This is definitely a reduction from before we used technology and had more manual job roles. Back then, we had to hire more foreign employees to fill those jobs."

By using technology, Ms Lim adds that she has been able to shift employees into new roles. Two employees who used to do data entry have moved to other departments.

A payroll app has also reduced time spent tracking leave and processing payroll by 20 to 30 per cent. The human resource administrator has been retrained for other roles.

However, Ms Lim says the challenges still abound for the retail sector. For one, locals do not want to work in laborious jobs. The firm is also still trying to find useful technology for certain job roles.

"We are still facing the uphill task of trying to automate more mundane duties, such as data entry and data processing, so we can scale back on the lower-value work and restructure some of the jobs to make it more higher-value, and thereby hoping we can engage more locals for the job."

She notes that other creative solutions such as working with interns, outsourcing jobs or re-scoping certain work processes for part-timers can help to resolve manpower issues.

"Government aid in exploring productivity measures via technology, process improvements and automation has also been helpful in finding new ways of overcoming this," she adds.

Related
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Budget 2019: Building A Strong, United Singapore

MOM announcements in 2019 Budget Statement

↧

HDB 2-Room Flexi Flats: 9 in 10 older buyers choose shorter leases

February 25, 2019, 8:07 am

≫ Next: Budget 2019 debate in Parliament

≪ Previous: Budget 2019 Foreign worker quota cuts: Will they finally nudge services?

91% of older buyers go for that, with 40-year lease the most popular
By Lester Wong, The Straits Times, 25 Feb 2019

About nine in 10 older buyers of HDB's two-room flexi flats have chosen shorter leases, an option that frees up more cash for them.

The lease lengths range from 15 to 45 years. Only those aged 55 and above qualify to take up this option.

Started in November 2015, the scheme offers new two-room flexi flats to families and singles. The default lease length is 99 years.

But the flats are more popular with older buyers. Of the 16,169 two-room flexi units booked to date, more than half of the buyers - 54 per cent - are aged 55 and above, said the Housing Board, giving an update last Friday. Of these, the vast majority - 91 per cent - went for the shorter leases. They can also opt for senior-friendly features like grab bars in the flats, which are typically 36 sq m or 45 sq m in size.

Among these buyers were a semi-retired couple who opted for a new two-room flat with a 45-year lease after learning of the scheme.

Mr Tan Hiok San, 68, and his wife, Madam Chen Yuxian, 58, downsized from their three-room flat in Chai Chee as it made more sense financially. They had initially wanted to buy a larger flat with a 99-year lease using money they got from selling their coffee shop business.

They paid $120,000 for their 45-year-lease two-room flat. A comparable flat with a 99-year lease costs around $230,000 to $250,000.

Their new flat is in the same neighbourhood, and they moved in last April after selling their resale corner flat for $370,000.

"We don't really have much use for a 99-year lease as we have no children to pass the flat on to. Moving to a smaller flat was not a problem for us and we are still in Chai Chee, which we are very familiar with," said Madam Chen.

Among the shorter lease periods, the 40-year one was the most popular with 2,545 buyers.

This was followed by the 35-year lease with 2,154 buyers and the 30-year lease with 1,344 buyers.

The HDB said 139 buyers opted for the shortest lease of 15 years.

Mr Tan said they would have preferred a 30-year lease, as flats with shorter leases cost less than those with longer leases. But that option was not open to them, as Madam Chen would need to be at least 65 to qualify. HDB requires two-room flexi leases to cover the applicants and their spouses up to the age of at least 95.

Mr Tan said their switch has prompted some old friends and former patrons to follow suit.

"They got a little envious of how comfortable we are and decided they would do the same as well," said Mr Tan, who works part-time at a cafe in Bedok Mall.

The HDB said more two-room flexi flats will be offered in Kallang/Whampoa, Tengah and Woodlands at the next Build-To-Order sales exercise in May.

It launched 937 such flats in Jurong West and Sengkang at the sales exercise earlier this month.

Related
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↧

Budget 2019 debate in Parliament

March 1, 2019, 7:45 am

≫ Next: Mahathir says Singapore's success due to Malaysia supplying it water

≪ Previous: HDB 2-Room Flexi Flats: 9 in 10 older buyers choose shorter leases

House passes Budget targeted at building strong, united Singapore
By Adrian Lim, Political Correspondent, The Straits Times, 1 Mar 2019

Parliament yesterday passed an $80 billion Budget that Finance Minister Heng Swee Keat said aims to help Singaporeans thrive and to build a strong, united Singapore.

In a 90-minute speech responding to concerns 55 MPs raised over three days, he outlined key principles underpinning the Government's spending and revenue plans.

While many MPs welcomed the $6.1 billion set aside for theMerdeka Generation Package to fund healthcare subsidies for those born in the 1950s, some called for more help for seniors and the less well-off. Others asked if the planned goods and services tax hike from 7 per cent to 9 per cent, to take effect some time between 2021 and 2025, could be deferred.

Mr Heng noted the Merdeka package is on top of existing schemes. This year alone, he said, the Health Ministry expects to spend $6.1 billion on patient subsidies under existing permanent schemes. And while the Government has yet to decide on the exact timing of the GST hike, it is necessary to support structural increases in healthcare spending, among others, he said.

Addressing calls for more help for the young, workers, the less well-off and seniors, and for a fairer tax system, he outlined three Budget principles he termed the "Singapore way": The Government puts people at the centre of its strategies; plans for the long term and adapts to changing needs; and works in partnership with people, firms and others.

Doing so has allowed Singapore to do more with less, he said. And the Government believes the best way to take care of Singaporeans is to empower them and build capacity. "There is always room to do even better", he said. "But overall, it is a good system, which gives Singaporeans a good foundation in life."

He also listed three goals on the fiscal front: Remain pro-growth, ensure the overall system of taxes and transfers is equitable and keep the tax burden on the middle-income low.

While all MPs backed the Budget, Workers' Party chief Pritam Singh (Aljunied GRC) rose to state for the record that his party's position on the planned GST increase, which it opposed last year, has not changed.

Budget 2019 debate, Day 3

Merdeka package tailor-made to better meet needs of seniors: Heng Swee Keat
A calibrated cohort-based approach is fair to different generations, he says, while noting the subsidies for all

By Seow Bei Yi, Business Correspondent, The Straits Times, 1 Mar 2019

The Merdeka Generation Package, like that for the Pioneer Generation, is custom-made to better meet the needs of Singaporeans in their silver years, said Finance Minister Heng Swee Keat.

And while younger cohorts will have needs, theirs are not of the same nature as those of these seniors, Mr Heng said in replying to MPs who spoke on Budget 2019.

"It is a plan that has been carefully studied over a significant period of time," he said of the Merdeka package, noting that not many countries have gone through similar rapid growth leading to relatively wide divergences between the older and younger generations.

"Building on our substantial base of permanent healthcare schemes, a calibrated cohort-based approach is fair to different generations."

The $6.1 billion set aside for the Merdeka Generation Package - for those born in the 1950s - was discussed by many of the 55 MPs who spoke this week, some of whom asked if there would be similar packages for future cohorts.

Some noted those born in the 1960s have been called the Majulah Generation. Others worried about the cost burden.

Mr Heng noted the Merdeka package was on top of existing schemes, and pointed out that the Ministry of Health expects to spend $6.1 billion this year alone - to subsidise patient bills through existing permanent schemes that all citizens enjoy. This does not include spending to enhance healthcare facilities, and to research more effective treatments.

He also noted that during Singapore's journey from Third World to First, the Merdeka Generation, and pioneers, did not benefit from the social safety nets in place today. They had fewer or no educational opportunities and earned less, and their Central Provident Fund contributions were very much lower.

"So, a cohort-based approach to support them in their silver years is appropriate," he said. Today, he noted, more than nine in 10 Singaporean youth go on to post-secondary education, compared with one in 10 among pioneers and fewer than two in 10 among the youngest in the Merdeka Generation.

Schemes over the years - Medisave, MediShield Life and CareShield Life - ensure that younger generations will be in a much better position to look after their healthcare needs when they retire, he added.

"Of course, some among us will still need more help. The Government will look at the needs of each group, and tailor our policies and programmes in the future," he said.

Many seniors he has met want to stay active, healthy and connected, he added, saying: "We look to you to redefine ageing and forge a new path on what it means to be the independence generation."

Mr Heng also reiterated that the Merdeka package is not linked to the election cycle or to the unexpected surpluses in this term of government.

Rather, a responsible and long-term approach to planning means younger Singaporeans need not fear they will end up bearing a disproportionate share of the cost.

"But if we lose this discipline and make rash promises, like universal healthcare benefits regardless of circumstances, I would worry for our future generations," he added.

Workers' Party chief Pritam Singh (Aljunied GRC) had on Tuesday said some see the Merdeka package as timed ahead of the election, drawing a rebuttal from Senior Minister of State Chee Hong Tat.

Yesterday, Mr Singh asked Mr Heng if it was possible to still consider moving away from cohort-based packages to something more permanent and universal.

In reply, Mr Heng reiterated that there are already many permanent subsidies in the healthcare system.

"The Merdeka Generation and Pioneer Generation packages build on top of what we already have," he said.

All have benefited from low rates of income tax: Heng Swee Keat
Budget 2019 is part of multi-year plan that continues to benefit middle-income
By Seow Bei Yi, Business Correspondent, The Straits Times, 1 Mar 2019

Middle-and upper-income families may feel that the personal income tax rebate of 50 per cent - capped at $200 - in this year's Budget is insignificant, but Finance Minister Heng Swee Keat urged them not to forget how they have benefited from the low rates of income tax overall.

Income tax is progressive, meaning those who earn a bigger income pay a higher rate, and the top rate is 22 per cent, allowing workers to keep a large part of what they earn. This, Mr Heng said yesterday, is among the key factors helping to keep expenses manageable.

In his round-up speech on the Budget debate, Mr Heng noted comments from some quarters that there did not seem to be anything for them in this year's Budget.

Citing the speech by Ms Cheryl Chan (Fengshan) the previous day, he reiterated that the Budget should not be seen as a "bag of benefits that serves some people in one year or the other".

Instead, it is a multi-year plan that tackles Singapore's priorities as systematically as possible, he said.

"Because we take a long-term approach, we cannot see each year's Budget in isolation. One Budget builds on the foundation of earlier Budgets," he said.

"Even if there is nothing new for you this year, you and your family have certainly benefited from every one of our Budgets," he added.

Young people, for example, have benefited from stronger support in education, public housing and parenthood over the years, on top of opportunities a vibrant economy brings. They get up to $80,000 in grants for new Build-To-Order flats, and $120,000 for resale flats, he said.

Parents can receive a maximum of between $18,000 and $32,000 as well in marriage and parenthood benefits for each eligible child, and get paid maternity and paternity leave, tax benefits as well as pre-school subsidies.

Middle-income families who may feel "sandwiched" in supporting both retiree parents and school-going children benefit from other schemes too, as well as "significant education subsidies". Without these subsidies, families would have to pay more than 60 times the current fees for their children in school.

Schemes such as the Pioneer Generation and Merdeka Generation packages help ease healthcare costs for parents of the "sandwich class" too, and many will get top-ups this year, like to their children's Edusave account.

He stressed that all will gain from a strong and united Singapore, and the bicentennial commemoration this year is an "opportune time" to reflect on how far the country has come.

The bicentennial is also a time to reflect on what being an independent, sovereign nation means, he added, and this includes doing one's best to build on what past generations have done.

Hefty subsidies in education to help all level up
By Adrian Lim, Political Correspondent, The Straits Times, 1 Mar 2019

On average, every child entering Primary 1 in 2018 would have received over $130,000 in education subsidies by the time he completes secondary school.

Those who go on to post-secondary education receive another $15,000 to $22,000 for every year they remain in school, Finance Minister Heng Swee Keat told the House yesterday, as he underlined how the Government invests heavily in ensuring high-quality education is affordable and available to all.

And there will be no let-up in efforts to do more for Singapore's young, he added.

"We have been investing more in pre-school - to make pre-school education better, more accessible, and affordable especially for the lower income. This will help our children build a solid foundation from an even younger age," Mr Heng said in his wrap-up of three days of debate on the Budget.

Helping Singaporeans from all walks of life by empowering them and building their capacity is one of the key principles of the Budget which the minister termed the "Singapore way". There are specific forms of help targeted to assist workers, the less well-off and seniors.

As for the young, education is kept affordable. Mr Heng said: "Parents pay $13 each month, per child, in primary school fees. This is possible due to the significant subsidies provided to every child."

A quality education is also provided for all, and not just for top achievers or those who are better-off, he added. Last year, the Government provided at least 60 per cent more in resources for primary school pupils with a weaker foundation in literacy and numeracy, through learning support programmes in schools.

To maximise students' pathways, there are specialised schools catering to the needs of Normal (Technical) students, or those with interests in science and technology, or the arts or sports, he added.

Mr Heng said he agreed with Nominated MP Lim Sun Sun, who spoke on Tuesday on the need to help students develop "cross-cultural, digital and ethical" competencies. Singapore's schools provide this holistic education by making available co-curricular activities and other programmes, all of which are heavily funded by the Education Ministry. There are also awards to recognise students who demonstrate excellence in areas beyond their academic performance.

As for learning about other cultures, the Global Ready Talent Programme, for example, helps students at institutes of higher learning to intern with Singapore firms overseas.

Singapore must explore what works, discard what doesn't: Heng Swee Keat
By Seow Bei Yi, Business Correspondent, The Straits Times, 1 Mar 2019

Singapore must consistently review its policies in line with new trends, feedback and evidence as it plans for the long term, Finance Minister Heng Swee Keat said.

"We plan for the long term because we plan for Singapore to be here in the long term," he said yesterday.

Ministries should have an entrepreneurial mindset as well, Mr Heng added, in rounding up three days of debate on the Budget. He stressed the need for the Government to be prepared to experiment and take calculated risks.

"We must be focused on exploring what works, discard what does not, and execute effectively, so as to achieve better outcomes for Singapore and Singaporeans."

Mr Heng added that an ability to draw from a broad slate of policies is critical in the light of a rapidly changing world.

Adaptations have already taken place in some areas, with the Business Grants Portal and Startup SG Network launched following feedback from smaller firms that it was hard to navigate government schemes and get help to transform businesses.

Some policies have seen changes as well, said Mr Heng, citing the introduction of CPF Life and the Lease Buyback Scheme to help citizens prepare for retirement as they live longer, and the expansion of Community Health Assist Scheme subsidies to give universal coverage for chronic illnesses.

On long-term planning, Mr Heng also said that leaders should not be deterred from making investments because of external risks and uncertainties. Rather, these can be impetus for "bold but deliberate planning".

He cited ageing and climate change as areas the nation is building up infrastructure for. "We do not shy away from making difficult decisions," he said. "That is why we have been pushing hard on economic restructuring, and have taken further steps this year to drive deeper restructuring."

The Republic is well placed to ride on global shifts and must push ahead to strengthen its position, he said.

"We will continue investing in research, innovation and enterprise development, and support our entrepreneurs and businesses to boldly venture into new markets," he said. "However, the window to achieve deeper economic restructuring, to help more of our firms capitalise on this opportunity, is narrow."

Singapore, he added, has to double down on improving productivity and innovation at the industry and firm level. This was why it made the hard move to cut the Dependency Ratio Ceiling level for the service sector. This refers to the maximum permitted ratio of foreign workers to the total workforce a company is allowed to hire.

Citing NTUC deputy secretary-general Heng Chee How's speech on Tuesday, the Finance Minister said: "Our resident labour force growth will continue to slow. If we do not move decisively on improving productivity and building up a skilled Singaporean core... firms will find it harder to adjust in the future."

Exact timing of GST increase to 9% yet to be decided, says Heng Swee Keat
Govt will monitor economic conditions carefully before deciding, says Heng
By Ng Jun Sen, Business Correspondent, The Straits Times, 1 Mar 2019

The Government has yet to decide on the exact timing of the planned goods and services tax (GST) hike by two percentage points to 9 per cent, and it will exercise care in doing so, Finance Minister Heng Swee Keat said yesterday.

"We will continue to monitor the prevailing economic conditions, spending trends and the buoyancy of our revenues carefully," he said in a speech rounding up debate on Budget 2019.

Addressing points raised by 55 MPs over three days, Mr Heng noted the reservations some had over the GST hike announced in last year's Budget that is slated to kick in between 2021 and 2025.

Ms Foo Mee Har (West Coast GRC) had urged the Government to delay the planned hike for as long as possible, suggesting that funds set aside in this term of government as well as the decision to use government debt to finance infrastructure could provide some leeway to postpone the increase.

But Mr Heng said the increase is necessary, and a decision that was not made lightly.

This year alone, he said, the Health Ministry is expected to spend $6.1 billion to subsidise patient bills through existing permanent schemes enjoyed by all Singaporeans. This excludes further spending to boost healthcare facilities and medical research.

"Such healthcare spending is of a completely different scale and nature from the cohort-based package set aside for the Merdeka Generation or the Pioneer Generation," he said.

"As our population ages, spending on permanent healthcare schemes and other parts of the healthcare system will continue to increase structurally. Funding this requires a structural increase in our operating revenues," he added.

A GST hike is therefore necessary to support this structural increase in healthcare spending, among other critical needs like pre-school education and security, the minister said.

Mr Heng also said the GST increase is similar to measures taken by other governments with ageing societies. "To address the growing fiscal burden... without further ballooning of public debt, there is a need for these governments to raise primary revenues," he added.

Mr Heng cited a recent Organisation for Economic Cooperation and Development (OECD) paper which highlighted that public health spending in the median OECD country is projected to increase by almost 5 percentage points of gross domestic product (GDP) between 2018 and 2060.

The median OECD government is also estimated to require additional revenues of 6.5 percentage points of GDP by 2060, said Mr Heng. "To put it in perspective, we expect to raise about 0.7 percentage point of GDP with the planned 2 percentage point GST increase," he added.

Workers' Party MP Low Thia Khiang (Aljunied GRC) sought clarification on how long this structural increase will last, saying that the biggest ageing demographic now is the Merdeka Generation, which will diminish in size over time.

Mr Heng replied that the Merdeka Generation will continue to stay active and live longer. Singapore has been studying the experience of others, and many variables go into the cost of long-term care and support.

Drawing laughter from the House, he said he has spent a lot of time with Health Minister Gan Kim Yong, and each time, Mr Gan comes up with a higher set of figures on healthcare costs. Mr Heng said: "So, if you ask me how long will this last, I will not want to mislead this House. We are continuing to study this very carefully. All I can say is that, it is going to last for quite a number of years."

There are many variables that are not certain, he said. "For instance, how will our lifespan change and what is the extent to which our seniors will continue to be healthy?"

"We are looking at all these long-term needs very carefully and we will share these when ready," he added.

Mr Heng noted there are many doctors in the House, but they will not be able to give a definitive answer, given this uncertainty.

Responding to Mr Liang Eng Hwa (Holland-Bukit Timah GRC) on the role of surpluses accumulated in this term of government, Mr Heng said the monies will be re-invested into the reserves. Half of the long-term returns can be spent in future Budgets under the Net Investment Returns framework.

These are part of the Government's obligation to prepare for uncertainties such as economic downturns, he said. Many commentators have in recent days said the cumulative surpluses since 2015 allow the Government to run deficits of up to an estimated $18.8 billion in the remaining term of government.

Mr Heng said: "We should not have the mentality of trying to spend everything that we have before the end of each term of government. As part of our approach, we continue to review our plans for the long term and will deploy financial resources where necessary."

WP chief Pritam Singh (Aljunied GRC) added that his party was against the GST hike. Last year, the WP said it supported the Budget, but voted against it because of the announcement on the GST. "This year, we support the Budget, but our position on the GST has not changed. And I just want to put that down for the record," he said.

Tiered GST less efficient and difficult to implement, says Heng Swee Keat
By Ng Jun Sen, Business Correspondent, The Straits Times, 1 Mar 2019

A tiered goods and services tax (GST) that imposes higher rates on luxury items than on daily necessities would be a less efficient way to help the lower income, compared with Singapore's current approach, Finance Minister Heng Swee Keat told Parliament yesterday.

Such a multi-rate tax would be difficult to implement, and the costs of enforcing such a tax regime would ultimately be passed on to consumers, he added, rejecting calls made by MPs in recent years and in this year's Budget debate to implement a tiered regime based on what poorer Singaporeans spend on.

Instead, the Government prefers a flat GST rate while providing structural offsets through GST vouchers, with more offsets going to help lower-income households and seniors. This is on top of other schemes and programmes to help those less well-off, he said.

Some MPs, such as Mr Saktiandi Supaat (Bishan-Toa Payoh GRC), felt the multi-rate GST could help make the tax system more progressive.

Fine-dining services, said Mr Saktiandi, could be given a 10 per cent GST, while necessities like rice could be taxed at a lower 3 per cent.

But Mr Heng, in his speech responding to 55 MPs over three days of debates, noted that it is difficult to define what qualifies as a necessity. "Take bread, for example. There are the white and wholemeal loaves that you can find at supermarkets, but there are also loaves sold at artisan bakeries. On top of that, there are so many other types of bread - floss buns, baguettes, kaya toast at your coffee shop.

"Where do we draw the line?"

Better-off households also tend to spend more in absolute terms and would therefore reap more benefits from reduced GST rates, he said. "The experience of many countries and relevant studies also show that a multi-rate GST system raises businesses' compliance and administrative costs significantly, which are then passed on to consumers."

Mr Yee Chia Hsing (Chua Chu Kang GRC), Ms Jessica Tan (East Coast GRC) and Mr Lim Biow Chuan (Mountbatten) had also asked for the criteria for these schemes to be reviewed in order to benefit poorer Singaporeans.

Mr Heng said the Government regularly reviews eligibility criteria to ensure intended groups benefit. "No criterion is perfect, but if we put all our different schemes together, we have a system that is progressive and, as Mr Yee said, fair."

Property tax better form of wealth tax for Singapore: Heng Swee Keat
By Ng Jun Sen, Business Correspondent, The Straits Times, 1 Mar 2019

Wealth taxes should ideally target fixed assets like property instead of levying inheritances or other holdings as most household wealth here is held in the form of property, said Finance Minister Heng Swee Keat.

Mr Heng, who was addressing calls from MPs for alternative taxes to levy on the well-off, told Parliament yesterday: "What works best depends on the country's overall tax system, and broader economic and social circumstances."

Ms Cheryl Chan (Fengshan) called for net-wealth taxes and taxes on inheritances in remarks made in Parliament on Wednesday, and asked if ultra-high-net-worth individuals were willing to share their wealth to uplift the vulnerable and less privileged.

Last year, several MPs had also argued for such levies to be imposed as an alternative to the planned goods and services tax hike.

Singapore taxes personal wealth mainly through three channels - property, personal income and consumption, with the top earners contributing more to the state's coffers.

Taxing the estates of local residents when they die stopped in 2008 as the wealthy tend to manage their financial assets on a global basis.

Mr Heng said that compared with other types of assets, property is fixed and less mobile: "Indeed, a large portion of Singapore household wealth is held in the form of housing assets."

The Government has been adjusting property taxes over the years to make them more progressive, he added. This has included levying stamp duties.

"Owner-occupied properties enjoy a concessionary property tax rate, with the rate being higher for higher-end homes," Mr Heng said. The rate is also higher for property not occupied by owners, such as those left vacant or which are rented out.

Singaporeans pay an additional 12 per cent for their second property and a further 15 per cent for third and subsequent properties, following changes to the additional buyer's stamp duty last year. Foreigners have to fork out an additional 20 per cent on all purchases.

Mr Heng also said a new tier for the buyer's stamp duty for property valued above a million dollars was imposed in last year's Budget.

Diesel tax hike to nudge users towards cleaner choices
By Adrian Lim, Political Correspondent, The Straits Times, 1 Mar 2019

While the recent diesel tax increase makes the environment cleaner, it may be at the expense of potentially higher business costs, Non-Constituency MP Dennis Tan said on Tuesday during the debate on the Budget statement.

Responding yesterday, Finance Minister Heng Swee Keat said the framing of the issue needs to go beyond that of a simple trade-off to a broader understanding of the longer-term approach Singapore is taking to address the increasingly urgent issue of vehicular emissions.

"Diesel exhaust contains substantial amounts of particulate matter and nitrogen oxides, which are associated with an increased risk of lung cancer and respiratory infection," Mr Heng said in his wrap-up speech on the Budget debate.

"The long-term impact of excessive diesel use on the health of our family and children is significant," he added.

Several MPs had earlier flagged the impact of the diesel tax hike on businesses and taxi drivers. The tax has been increased from 10 cents a litre to 20 cents, from Feb 18.

Mr Heng said it is necessary to use a price signal to nudge diesel users towards cleaner and more sustainable alternatives.

The diesel excise duty is only one part of a larger road map to discourage diesel consumption, he noted.

Other measures include the Early Turnover Scheme introduced in 2013. It helps owners of commercial goods vehicles to switch to cleaner and more fuel-efficient diesel models.

Last year, the Vehicular Emissions Scheme was also introduced.

Mr Gan Thiam Poh (Ang Mo Kio GRC) suggested exempting vehicles and machinery with no non-diesel alternatives from the tax hike, but Mr Heng said this works against what the Government is trying to do.

Mr Heng said the tax hike will help nudge businesses that are heavy diesel users towards greater efficiency - for example, by adopting consolidated logistics.

He noted that the Government has given an offset package to cushion the cost impact until 2022, adding that it recognises the impact of the new tax on cost for cabbies.

Reiterating what Senior Parliamentary Secretary for Transport Baey Yam Keng said a day earlier, Mr Heng told the House yesterday that taxi operators have pledged to pass on the entire savings, from an $850 reduction in annual special tax for taxis, to their drivers.

Reserves are a strategic defence to deter parties wishing to hurt Singapore, says Heng Swee Keat
They help Singapore to weather crises, give Govt confidence to plan for the long term
By Adrian Lim, Political Correspondent, The Straits Times, 1 Mar 2019

Singapore's reserves are a strategic asset, allowing the country to tide over a crisis without being reliant on others, Finance Minister Heng Swee Keat said yesterday.

They also serve as a "strategic defence, to deter parties who wish to undermine the interests of Singapore and Singaporeans", he added.

"Such moves go beyond currency speculation attacks to other types of threats," Mr Heng told Parliament in a speech rounding up debate on this year's Budget.

The minister said: "Our reserves, like our investments in defence and security, give us the confidence to plan long term, knowing that we will have the ability to take care of our people and defend our sovereignty."

He outlined the need to be disciplined in managing the reserves. Under the current Net Investment Returns (NIR) framework, the Government taps up to 50 per cent of the expected long-term real returns for spending and ploughs back at least 50 per cent to grow the pot and generate more returns.

This ensures that both current and future generations benefit from the reserves, Mr Heng said.

The NIR contribution is today the single largest contributor of revenues, larger than any category of taxes collected. "If we did not have the NIR framework, we would have had to double our personal income tax collection or our GST collection to raise the same amount of revenues," he added.

Addressing Workers' Party chief Pritam Singh (Aljunied GRC), who sought more data on the reserves so people can better understand Budget policy trade-offs, Mr Heng said Mr Singh is "misinformed".

Mr Heng explained that Singapore's reserves comprise assets invested by the Monetary Authority of Singapore (MAS), GIC and Temasek. The size of MAS' and Temasek's assets is public information, but the GIC portion is not disclosed. This is because doing so would reveal the complete picture of Singapore's financial reserves, Mr Heng said.

As of March 31 last year, the official foreign reserves managed by MAS stood at $377 billion and the size of Temasek's portfolio was $308 billion, according to the Finance Ministry's website.

While the size of the Government's funds managed by GIC is not published, it has been revealed that GIC "manages well over US$100 billion (S$135 billion)", the ministry noted.

Mr Heng said: "We should not underestimate the need for a rainy day fund. Singapore faces particular vulnerabilities, given our lack of natural resources. With an economy worth nearly $500 billion a year, we should set aside enough to protect it and our people's livelihoods and future."

Citing how the reserves played a key role in Singapore weathering the 2008 global financial crisis, he said: "Let us not squander this strategic advantage that we have."

Unexpected Budget surpluses due mostly to volatilities: Heng Swee Keat
By Adrian Lim, Political Correspondent, The Straits Times, 1 Mar 2019

The unexpected surpluses which the Government has accumulated in the past few years are due mostly to "volatilities and uncertainties in revenues and expenditures", Finance Minister Heng Swee Keat said yesterday.

They are not due to the introduction of Temasek into the Net Investment Returns Contribution (NIRC) framework, Mr Heng said in response to Workers' Party chief Pritam Singh (Aljunied GRC) suggesting earlier this was the case.

Mr Singh, in exploring ways to fund a permanent and universal senior citizen healthcare package on Tuesday, cited the addition of Temasek into the NIRC since 2016, saying this explained the "healthy accumulated surplus" accrued in the current term of government.

Mr Heng, in his wrap-up of the 2019 Budget debate, said this was not the case. Rather, it was the volatilities and uncertainties in revenues and expenditures that accounted for most of the surplus.

He pointed out that forecasting is an inherently difficult exercise, and some revenue items are volatile, especially those dependent on sentiment-driven markets such as stamp duty or vehicle quota premiums.

For instance, in the 2018 financial year ending March 31 this year, the Government had estimated stamp duty collections would be lower because of property market cooling measures. But the property market defied expectations, he added.

On the expenditure side, there can also be surprises, Mr Heng said, referring to the two-year suspension of the Kuala Lumpur-Singapore High-Speed Rail project.

These factors contributed to an overall Budget surplus of $2.1 billion projected for FY2018, a $2.7 billion increase from the $600 million deficit that was forecast a year ago.

Mr Heng said: "While the Government's approach is to look ahead, plan ahead and prepare for the unexpected, it seems that Mr Singh would prefer to look backwards to find unexpected revenue surprises and count on them to keep happening.

"I am afraid such an approach of hoping for the best is not how we secure Singapore's future."

Mr Heng said that while there is room for improvement, the accuracy of the Government's revenue and expenditure projections has been reasonable, and respectable by international standards.

Actual revenue and expenditure figures have generally been within plus or minus 4 per cent of original estimates, he noted.

He also replied to Mr Singh's question two days ago about how borrowing will impact revenues available for future recurrent spending.

Clarifying that it does not, Mr Heng said: "Borrowing does not create new revenues for recurrent spending. It merely converts a concentrated lump of spending in a few years into a smoother stream of loan repayment with interest. And we must have every intention to pay back what we borrow."

He added: "In fact, it is irresponsible for a government to borrow to spend on recurrent needs such as healthcare and security. Such borrowing shifts the burden of paying for today's needs onto future generations."

Why Singapore needs to build on its partnerships within and outside
Strong partnerships at home will allow Singapore to strengthen its ties abroad
By Seow Bei Yi, Business Correspondent, The Straits Times, 1 Mar 2019

Singapore has been strengthening its partnerships both regionally and globally, but the most foundational ones are within the country, said Finance Minister Heng Swee Keat.

"A strong and united Singapore assures our partners around the world that we can be taken at our word, and will not cycle back on our commitments due to domestic divisions," he said yesterday. "(It) also sends a clear signal of our will and resolve to defend our sovereignty and safeguard our vital interests."

Partnerships are a key principle of the Singapore way, Mr Heng said, noting it was a key element of recent Budgets and entails working with others internationally, in the business arena, and with the community.

Globally, Singapore has free trade agreements allowing businessmen access to other markets, defence agreements allowing militaries to build mutual understanding, and collaborations between officials and businesses that build goodwill.

He cited the Kendal Industrial Park in Indonesia, the Chongqing Connectivity Initiative in China, Iskandar Malaysia, and the new capital of Andhra Pradesh state in India.

Locally, Singapore needs to build on its partnerships between the Government, companies and unions, said Mr Heng, who highlighted the role of trade associations and chambers in helping companies as well.

Firms must build deeper capabilities with their workers, who benefit from better jobs and pay, he added.

In turn, a skilled and committed workforce gives firms a competitive edge and the Government will continue supporting them, such as with changes to the Enterprise Development Grant, giving eligible firms up to 70 per cent of government funding to transform themselves.

A strong tripartite partnership can also bring positive outcomes, such as in ST Engineering's aerospace sector, where a union-management training council has worked with the National Trades Union Congress to customise the SkillsFuture Digital Workplace course for workers, he said. Last year, more than 200 employees attended the course, which familiarises workers with digital technologies. Another 600 workers are expected to do so this year.

Mr Heng added that the authorities will continue to help, with steady investments in research and development, as well as by strengthening economic links to the region.

The Government will take an "enterprise-centric approach" tailored to firms' stages of growth, such as by having the Scale-up SG programme - introduced in Budget 2019 - for those ready to compete globally.

Other key partnerships include building a caring and inclusive society, as well as keeping Singapore safe and secure together, he added.

"We will find the best way forward together. But no one - not you, not me, not the Government - has all the answers," he said.

"There is always room for improvement," he added, noting the robust feedback from Mr Ang Wei Neng (Jurong GRC), who flagged on Wednesday businesses' difficulties with regulations and called for better feedback channels to the Government.

Mr Heng said: "Let us not just stop at making criticism, but reach out to one another, recognise that we may have different views, but we can work together and find that middle ground."

Budget 2019 debate: When spending needs to be sustainable, not rash
By Royston Sim, Deputy Political Editor, The Straits Times, 1 Mar 2019

When Finance Minister Heng Swee Keat announced plans last year to raise the goods and services tax (GST) some time between 2021 and 2025, he said it would help pay for increased spending in areas such as healthcare and security.

Fast forward a year, and concerns over whether increased expenditure can be funded in a sustainable manner - and the best ways to do so - continued to feature prominently during the course of the debate on the Budget statement which began on Tuesday.

Among the 55 MPs who spoke was Mr Gan Thiam Poh (Ang Mo Kio GRC), who suggested taxing the winning proceeds from gambling so that raising GST would be a "last resort". Similarly, Ms Foo Mee Har (West Coast GRC) urged the Government to postpone a GST hike for as long as possible, in the light of the estimated $15 billion surplus accumulated in its current term.

Mr Heng thus devoted more than a third of his 90-minute round-up speech yesterday to set out how Singapore intends to balance its Budget in the medium term, and made clear why the future GST increase is needed to support structural increases in spending in important areas like healthcare.

Such healthcare spending is of a "completely different scale and nature" from cohort-based packages such as that for those born in the 1950s, dubbed the"Merdeka Generation, he noted.

The Health Ministry, he pointed out, expects to spend $6.1 billion this year alone on subsidies for existing permanent schemes for all Singaporeans. The sum excludes spending to improve healthcare facilities and research on better treatment. And this base of permanent healthcare spending will continue to grow.

In comparison, the scale of spending for the Merdeka Generation Package is far less: The $6.1 billion set aside for the package is expected to cover the projected costs over the entire cohort's lifetime.

To reinforce his point about the need for additional revenue, he cited a recent Organisation for Economic Cooperation and Development (OECD) paper which highlighted that public health spending in the median OECD country is projected to increase by almost 5 percentage points of gross domestic product (GDP) between 2018 and 2060.

The median OECD government is also estimated to require additional revenues of 6.5 percentage points of GDP by 2060, said Mr Heng.

"To put it in perspective, we expect to raise about 0.7 percentage point of GDP with the planned 2 percentage point GST increase," he added.

But younger Singaporeans need not fear that they will end up with a disproportionate share of the cost, he said, so long as the Government continues to take a responsible and long-term approach to planning.

He also cautioned against making "rash promises, like universal healthcare benefits regardless of circumstances". It was a veiled reference to a call by Workers' Party chief Pritam Singh (Aljunied GRC) on Tuesday for a universal and permanent healthcare package for seniors aged 60 and above.

The minister had barely returned to his seat after concluding his speech when former WP chief Low Thia Khiang (Aljunied GRC) raised his hand for a clarification.

How long does the Government expect the increase in structural spending on healthcare to last and at what speed will it increase, he asked, adding that the Merdeka Generation - which he is a part of - is the biggest ageing generation.

Structural spending is going to last for quite a number of years, Mr Heng replied. He added that there were too many uncertain variables to provide a definitive answer - from the extent to which seniors will continue to be healthy, to how advances in medical treatments will affect costs.

He also warned that aside from a greying population, Singapore has to plan for ageing infrastructure - another area where the costs are set to rise.

Mr Singh again asked if the Government would consider moving away from cohort-based packages to a more permanent and universal package - to which Mr Heng said no.

The WP chief also stated for the record that his party supported the Budget, but that its position on the planned GST hike has not changed from last year. The WP, which opposes a GST hike, voted against the Budget statement last year after the Government called for a vote to be recorded in the House.

But with Mr Heng opting not to pick up on that point this year, the three-day debate, lasting about 14 hours, on the Budget statement ended without drama.

Earlier, Mr Heng highlighted partnerships and working together with various parties as one key principle of what he called the "Singapore Way".

This was also a theme Manpower Minister Josephine Teo used when she cited the influence that families, employers and the wider society have in shaping attitudes towards marriage and parenthood.

Speaking during the debate on the budget of the Prime Minister's Office, she revealed that the total fertility rate (TFR) for last year dipped to a new low of 1.14 - down from the previous low of 1.15 in 2010. But she expressed optimism that the TFR would rise when children of the "baby boomer" generation start having babies themselves.

She also announced that the National Population and Talent Division will consult the public in the coming months about their needs and concerns with regard to forming families, as well as how the Government and community can better support their aspirations.

Given how the low TFR is an existential issue for Singapore, one hopes concrete policies to arrest the slide will emerge from that process.

Budget 2019 debate, Day 2

Healthcare operations will not be hit by cut in foreign worker quotas, says Minister of State for Manpower Zaqy Mohamad
Healthcare providers to get manpower flexibility
By Ng Jun Sen, Business Correspondent, The Straits Times, 28 Feb 2019

The operations of essential services, like healthcare, will not be affected by cuts in the foreign worker quotas in the service sector, Minister of State for Manpower Zaqy Mohamad said in Parliament yesterday.

The Manpower and Health ministries will work together to ensure healthcare providers are given "manpower flexibilities" so that there is no disruption in their day-to-day operations, Mr Zaqy added, without elaborating.

The lower quota, which sets the proportion of foreigners on work permits or the S Pass that a company can employ, will take effect in 2020 and 2021.

But the move, announced last week during the unveiling of the 2019 Budget, has generated controversy, with at least two MPs questioning the decision yesterday.

Ms Joan Pereira (Tanjong Pagar GRC) said she felt uncertain about the cuts as they would impact the labour-intensive caregiving sector.

"These manpower reductions will have a major impact on our elderly - the very group of Pioneer Generation and the Merdeka Generation seniors whom we want to help age with dignity," said Ms Pereira, who called for a review of the foreign worker quota policy.

Ms Lee Bee Wah (Nee Soon GRC) suggested having the policy kick in for new workers only, and letting businesses retain existing foreign workers who would have gained experience and skills by working in their companies.

"They have invested a lot in training their current workers, and it would be a waste to send them back," said Ms Lee.

The previous day, Nominated MP Douglas Foo also urged the Government to be more flexible in implementing the cuts by taking into account the needs of individual businesses in the service industry, as the move will raise labour costs.

Mr Zaqy, responding to Mr Foo, said that depending on the companies' restructuring plans, the Government could calibrate the extent of transitional manpower support to help them cope with the changes.

"We will work closely with the industry, to support businesses in developing more efficient techniques and service models, so that they can grow and transform in a tight labour market," he added.

Since 2012, the Health Ministry has rolled out more than 250 productivity projects for about 70 public healthcare and community care organisations.

Mr Zaqy, explaining the rationale for the quota cuts, said the Government decided against raising worker levies, which would directly raise costs for companies sticking to their existing business models.

But a lower Dependency Ratio Ceiling would give companies a choice: To hire more Singaporeans or transform their business into a leaner organisation.

Whichever option they pick, there are various government schemes to support them, he said, adding that the outcome must be a win-win for workers and employers.

Mr Zaqy also acknowledged that access to foreigners is crucial for businesses to stay competitive, especially if these workers have experience in emerging growth areas or have skills that are in short supply in Singapore.

But he cautioned against becoming over-reliant on foreign manpower, which was the reason the Government had earlier adjusted the Employment Pass (EP) requirements and will continue to do so as Singaporean wages rise, he added.

In 2017, the EP qualifying monthly salary was raised from $3,300 to $3,600 to keep pace with local wages. The change led to a 3 per cent drop in the number of EP holders, with lower-quality professionals leaving Singapore.

Mr Zaqy stressed that job redesign was key in helping all industries - including the service sector - cope with manpower shortages, and uplifting the Singaporean workforce.

Noting that most locals are employed in the service sector, including food and retail, he said: "We should avoid reinforcing the view that these are jobs that only foreigners want to take up."

Sylvia Lim seeks better ways to measure underemployment
By Seow Bei Yi, Business Correspondent, The Straits Times, 28 Feb 2019

Official data indicates that the less educated in Singapore tend to be more prone to underemployment, a finding that led Workers' Party chairman Sylvia Lim to call on the Government to study the economic phenomenon more thoroughly, and monitor its effects on society.

Referring to Ministry of Manpower (MOM) figures, she noted that underemployment for university graduates is 2.3 per cent, which is lower than the overall rate of 3.3 per cent. But for those with just secondary education, it rises to nearly 4 per cent.

It grows further to 5 per cent for those without secondary education, she said in Parliament yesterday, the second day of the Budget debate.

"The rate was derived by a time-based definition of underemployment... persons working part-time and would like to work full-time," said Ms Lim (Aljunied GRC), referring to the underemployed group - people working below capacity.

"Even by MOM's measure, the 3.3 per cent translates into nearly 73,000 workers," she added. Ci-ting the breakdown for those of different education levels, she said: "This may suggest that there may be a class dimension... with the less educated more prone to underemployment."

She asked the Government to continue improving the way underemployment is measured and monitor its effects on different segments of society. She also noted that the underemployed face challenges, such as being underpaid, feeling insecure about their income and lacking finances for daily expenses.

Citing a 2017 study by the Ong Teng Cheong Labour Leadership Institute, she noted that it yielded an underemployment rate of 4.3 per cent, which is higher than MOM's 3.3 per cent as at June last year.

The institute's survey adopted a multi-factor definition of underemployment and looked at those with university degrees and higher qualifications earning below $2,000 a month in a full-time job.

This state of vulnerability requires monitoring amid growing upheavals from job disruption.

Noting efforts to respond to such job disruption, with initiatives like Professional Conversion Programmes that help workers move into new roles, Ms Lim said the message that workers need to adapt is clear. She added: "The question is how well such initiatives are serving to give economic security to workers."

For instance, of the more than 76,000 job seekers who found employment through the Adapt and Grow Initiative from 2016 to last year, it would be useful to know if those who switched industries had comparable remuneration or took pay cuts.

Ms Lim also called for more support for vulnerable workers, like those in the gig economy.

With some needing flexibility of time to attend to family issues, and others finding it hard to take time off work to attend to personal matters, she suggested that they be allowed instalment payments for composition fines - so their cases do not go to court when they have trouble making payments.

"The direction of the Government in economic transformation and workforce reskilling... is necessary," she said. But, she added: "The other pillar that is equally necessary is to have compensatory policies in the form of social safety nets, to cushion citizens who face disruption."

Yesterday, Ms Lee Bee Wah (Nee Soon GRC) also called for a re-look at policies surrounding another group of workers - seniors facing re-employment.

She cited feedback that some were "forced to leave their company upon reaching retirement age" despite still being productive.

In another case, a worker was told to take a 40 per cent pay cut on re-employment, on top of added responsibilities.

"He was referred to the Tripartite Guidelines on the Re-employment of Older Employees, which stated that wages can be adjusted to the mid-point of the salary range," she said.

"I understand that re-employment might not be at the same salary, but to suffer a 40 per cent pay cut for an additional job scope, that is too much."

Bicentennial CPF top-up a tribute to women, says Manpower Minister Josephine Teo
By Linette Lai, Political Correspondent, The Straits Times, 28 Feb 2019

The Bicentennial Bonus CPF top-up is a "tribute" to women who stayed home to care for their families while others went out to work, Manpower Minister Josephine Teo said yesterday.

"It recognises that they had fewer years to build up their retirement savings," she pointed out in a speech that honoured women who contributed to Singapore's development.

"We don't usually apply the gender lens when debating our Budget, but when we do, it is clear that every Budget benefits women in significant ways. And they all add up to a lot of support," she added.

Last week, Finance Minister Heng Swee Keat announced that Singaporeans aged 50 to 64 this year with less than $60,000 of retirement savings in their Central Provident Fund (CPF) accounts will receive a top-up of up to $1,000.

About 300,000 Singaporeans will gain from the top-up, six in 10 of whom are women in their 50s and 60s. Mrs Teo said the money will go some way in supporting these women in their old age.

"Even today, when women have more choices, many dedicate their lives to their families by staying home to personally take care of their needs," said Mrs Teo. "We don't say it often enough, but their sacrifices did not just make a difference to their families - they also made a difference to our nation-building."

Ms Rahayu Mahzam (Jurong GRC) and Ms Lee Bee Wah (Nee Soon GRC) also highlighted the contributions of women to Singapore.

Ms Rahayu said there are many women activists and volunteers who have "defied traditional expectations and made great strides to change society's pre-conceived notions and habits".

But she noted that there is still much to do in Singapore when it comes to issues such as closing the wage gap between men and women, or supporting women who return to the workforce after having children.

"While women here have access to education and jobs, and we have representation of women in many key positions in leadership, there is still much that we can do," said Ms Rahayu.

Ms Lee reiterated Mrs Teo's point on how the CPF top-ups will help this group achieve retirement adequacy, and urged families to top up their mothers' and wives' accounts.

"You will get a tax relief of up to $7,000 for doing this. But more importantly, it is to show her how much you appreciate her sacrifices," Ms Lee said.

Mrs Teo noted that many government schemes targeted at the elderly benefit women more since their life expectancies are longer.

These include the Pioneer Generation Package and the Silver Support Scheme for needy seniors. More than 65 per cent of those who receive Silver Support payouts are women, she said.

In her speech, Mrs Teo also held up women who contributed to Singapore throughout its long history.

They include Hajjah Fatimah, who arrived in Singapore in the 1800s and built houses and a mosque, as well as fungi expert Gloria Lim, who was the first woman to be appointed dean of the science faculty of the then University of Singapore, the predecessor of the National University of Singapore.

"Our women pioneers set solid foundations for the generations after them so that we can all advance and progress in society," she said.

Baey Yam Keng: Diesel tax hike for better living environment
Lower special tax for cabs, new rebate scheme for diesel buses among ways to cushion impact
By Adrian Lim, Political Correspondent, The Straits Times, 28 Feb 2019

While the tax hike on diesel has affected businesses and cabbies, the move will help discourage usage of the fuel and create a better and healthier living environment, said Senior Parliamentary Secretary for Transport Baey Yam Keng.

He noted that the land transport sector is the second-largest source of emissions in Singapore, and this has to be addressed as the land transport system expands.

To do so, the Government is also promoting commuting modes such as car-sharing, trains and personal mobility devices, managing vehicle growth and usage, and encouraging the adoption of cleaner and more carbon-efficient vehicles, he said.

MPs Lee Bee Wah (Nee Soon GRC) and Gan Thiam Poh (Ang Mo Kio GRC) yesterday raised concerns about the hike, as they called for more support to mitigate the impact on cabbies and businesses.

Finance Minister Heng Swee Keat had announced a doubling in excise duty on diesel fuel from 10 cents a litre to 20 cents last week. This took effect from Feb 18.

Yesterday, Ms Lee pointed out that no lead time or grace period was given, and many service providers which use diesel vehicles have lost money overnight. She called for ComfortDelGro, the largest taxi operator here, to at least absorb part of the diesel tax hike.

Meanwhile, Mr Gan said certain heavy machinery and special purpose vehicles have no diesel alternatives in the market, and appealed for firms and operators using them to be exempted from the hike.

In his speech, Mr Baey listed several ways in which the Government is helping to cushion the impact of the diesel tax increase.

The annual special tax for taxis has been reduced by $850, and Mr Baey said he was glad that all taxi operators have pledged to pass on the entire savings to cabbies in the form of rental reductions and, for some, Medisave top-ups.

ComfortDelGro cabbies driving a diesel taxi that is five years or older can get a $100 voucher if they convert to a hybrid taxi by the end of next month, he added, urging other taxi operators to offer similar incentives and more non-diesel options.

On concerns from parents about school bus fares, Mr Baey said the Government is helping operators through a new road tax rebate scheme for all diesel buses, for a three-year period from August.

All diesel school buses, diesel private-hire buses and excursion buses ferrying schoolchildren will also get an additional cash rebate for three years from August.

Mr Ang Hin Kee (Ang Mo Kio GRC) said after the sitting that he hoped more taxi firms would take up Mr Baey's call to support cabbies.

But the National Taxi Association's executive adviser added that rebates like the $100 voucher from ComfortDelGro offer only slight reprieve to taxi drivers, as the daily rental rate for a hybrid taxi is $120, compared with $100 for a diesel taxi.

"Taxi firms should look into lowering the rental rates. If not, cabbies may not switch to hybrid taxis, and instead clock longer hours and distances on their diesel cabs to cover the higher diesel rates.

"This runs contrary to the intention of the tax hike," Mr Ang said.

Planned GST hike not enough to meet future needs: Sitoh Yih Pin
By Ng Jun Sen, Business Correspondent, The Straits Times, 28 Feb 2019

The planned GST increase is but one measure to meet rising spending needs, and will not be able to meet them in full, Mr Sitoh Yih Pin (Potong Pasir) said yesterday.

The Goods and Services Tax, currently at 7 per cent, is estimated to bring in $11.69 billion in the coming financial year. The rise in the tax rate by 2 percentage points to 9 per cent, sometime between 2021 and 2025, is expected to bring in an estimated $3.3 billion more in revenue, at best, he said.

Mr Sitoh, an accountant, turned to numbers to make his case on the need for prudence. Spending on an ageing population and expanding and renewing infrastructure is rising, he said in the final speech on day two of the Budget debate.

The Health Ministry's expenditure rose three-fold in 10 years, from $3.8 billion in Financial Year 2009 to an estimated $11.7 billion for FY 2019, he noted. Overall Government spending has risen from $57 billion in FY 2009 to a projected $80.25 billion in FY 2019. This figure does not include special transfers like the Central Provident Fund and Medisave top-ups, GST vouchers and household rebates, amounting to $15.3 billion for FY 2019.

"The projected GST increase is therefore simply only one measure to mitigate the trend of rising expenditure, but clearly is unable to meet it in full," he said.

One way to meet these needs was through borrowing, as it had for the MRT lines in the 1980s, for long-term infrastructure projects like Changi Airport Terminal 5. "Singapore is in a better position now to dictate favourable borrowing terms than in the past as our Government's credit rating is now among the world's best," he said.

But although this strategy of government spending is fairer and more equitable, it is also not without risk, he said. "We have seen enough examples around the world, of countries mired in debt arising from careless borrowings and reckless funding of projects."

He also urged the Government to ensure oversight of major infrastructure projects funded by borrowings, such as by creating an independent panel or body.

Speaking earlier in the day, Mr Gan Thiam Poh (Ang Mo Kio GRC) suggested raising taxes on gambling activities, such as winnings, to support recurrent spending. "(This) could provide a sustainable and long-term revenue to support the rising Singaporeans' social expenditure needs, leaving a rise in GST as a last resort," he said.

Mr Sitoh also addressed calls for more Net Investment Returns (NIR), proceeds from investing Singapore's reserves, to be tapped. Under the current framework, half the expected long-term real returns from GIC, Monetary Authority of Singapore and Temasek can be spent, while the remaining half is re-invested into the reserves.

Mr Sitoh noted the NIR contributes about 20 per cent of the Budget, which without this, would be substantially in deficit every year.

"There are those who advocate for more returns to be used for the present, but I think the current arrangement is fair," said Mr Sitoh. "As they say in Hokkien, 'jit lang jit pua' - half for this generation and half saved for future generations."

Wealth, inheritance taxes could be avenue to level playing field, says MP Cheryl Chan
By Adrian Lim, Political Correspondent, The Straits Times, 28 Feb 2019

Consider wealth and inheritance taxes on ultra high net worth individuals as a possible source of revenue in future, MP Cheryl Chan (Fengshan) said yesterday.

These would be an additional source of funds to sustain the many social welfare programmes that may have "a long tail in the years ahead", and help the country maintain fiscal prudence, she said on the second day of debate on the Budget statement.

In a speech delving into inequality and ways to achieve a more equitable distribution of resources, Ms Chan said Singapore has done well, with a system built on meritocracy, a fair and progressive tax system, and a redistribution of wealth focusing on social outcomes.

But in the last 10 years, evidence shows the rise in wealth inequality has been greater than in income inequality, she noted. "Those with wealth are not only on a better footing to accumulate more, they have even better access to resources that help preserve their wealth."

To reduce the wealth inequality gap, Singapore has taxes on personal income, property and consumption, so the top earners and those with more assets contribute to the national coffers, she noted.

But while Singapore has a low personal income tax rate compared with other countries, it is impractical to consider further taxes on income, owing to the shrinking and ageing workforce.

"After all, the ability of an average income worker to build wealth is dependent on sheer labour. Also, the consumption tax in one way or other does impact the lower-income group to meet their basic living expenses," Ms Chan said.

She proposed looking into wealth and inheritance taxes for ultra high net worth individuals or the top 1 to 2 per cent of society.

"In the spirit of giving and sharing, will the ultra high net worth individuals be willing to share more of their wealth to uplift the vulnerable and less privileged communities?" Ms Chan asked rhetorically.

There have been similar calls for such a tax in other countries.

Ms Chan also called for a "decent living wage" for lower-income workers, especially those with young families, so they need not live hand to mouth. Central to the issue is how much consumers and employers are willing to pay to meet this living wage, she said.

"This comes back to the need for sharing. The top and middle tiers of the economy... have more opportunities and pathway to elevate. They can certainly do more for the lower-income group, starting with a willingness to pay more for their services," she added.

Ms Chan said talk about inequality in Singapore will be "chatter", unless people acknowledge that "we must all play a part and take actions in our daily lives to make Singapore an inclusive country".

"Without building our social capital now, defining the values and roles of this country with active civic participation, each Budget will only fall on the ears of citizens like a lecture in class and endless debate of whose rightful duty it is to care for the ageing population and the future generations."

Need to acknowledge both good and bad of colonial past: Yaacob Ibrahim
Look at 1819 as 'one milestone among many', acknowledge colonial history's dark side
By Linette Lai, Political Correspondent, The Straits Times, 28 Feb 2019

As Singapore commemorates its bicentennial and reflects on its history, the country must also accept that the colonial experience has had a different impact on its various communities, said former minister Yaacob Ibrahim in Parliament yesterday.

"We need to acknowledge that different communities have different historical experiences and memories," said Dr Yaacob (Jalan Besar GRC). "We need to recognise both the good and the bad."

Although 1819 marked a turning point in Singapore's history, it has also given rise to myths and misperceptions that damage communities here, he added.

One of these is the myth that Singapore was a fishing village "waiting to be discovered by enlightened British imperialists", rather than the vibrant economic hub that historical evidence suggests.

Another is the toxic myth of the lazy native, which has been studied and debunked but yet still lingers in the minds of some people, said Dr Yaacob, the former minister for communications and information as well as former minister-in-charge of Muslim affairs.

"When I was growing up in modern Singapore, my own teachers dismissed my community as being lazy and unable to study hard. This is the burden of history that my community carries. It is unjust and unfair," he added.

"If we are to commemorate the bicentennial, we must also recognise the less savoury aspects of it - practices and ideas designed to meet the needs and maximise the profits of the empire at the expense of the indigenous population."

Referring to Finance Minister Heng Swee Keat's Budget statement, which touched on building an inclusive society, Dr Yaacob said: "If we are to build an inclusive society... we need to ensure that inclusivity applies not just to how we view the here and now, but also how we view our history as a people."

Dr Yaacob said it is right to acknowledge every event for what it is worth, and that the colonialists' arrival changed the region forever. But overly-ascribing Singapore's present-day success to the arrival of the British ignores "larger forces" at work before they set foot on Singapore's shores, he said. Rather than focus on the past 200 years, Singapore should look at 1819 as "one milestone among many".

He urged Singaporeans in this bicentennial year to see how the country's history is intertwined with that of the region. "The diversity that we see in Singapore reflects the diversity of the region and beyond."

In doing so, more Singaporeans - especially the young - will understand how Singapore is a part of the larger region, and how its good location and the talents of its diverse peoples can create a peaceful hub for trade and commerce, he said.

Dr Yaacob suggested changes to school curriculum, including relooking at how history is taught to ensure students are well-versed in pre-colonial history and have a deeper understanding of the region. National education can be expanded for local students to understand the colonial experiences of other Asean countries, he added, noting: "Being part of this region, I strongly believe that we should have a good understanding and appreciation of the region's history."

Budget 2019 debate, Day 1

Merdeka package not timed for election: Chee Hong Tat
Such schemes cannot be rolled out at start of Govt's term as surpluses need to be earned
By Adrian Lim, Political Correspondent, The Straits Times, 27 Feb 2019

The Merdeka Generation Package (MGP) and its timing were a focus on day one of the Budget debate yesterday.

Senior Minister of State Chee Hong Tat rebutted Workers' Party chief Pritam Singh's remark that some see the $6.1 billion set aside for those born in the 1950s as being timed to coincide with the election.

Mr Chee said it was misleading to link the MGP - or the Pioneer Generation Package (PGP) unveiled in 2014 - to election cycles.

The reason, he said, was that such schemes cannot be rolled out at the start of the Government's five-year term as surpluses need to be earned, accumulated and put aside to fund healthcare and other benefits.

At the start of its term, the Government will not know how much surpluses it will accrue or how much it can set aside, he added.

This is also part of "what a responsible government needs to do to ensure that our policies and programmes are financially sustainable for the current and future generations", he said.

Some 500,000 Singaporeans will benefit from the Merdeka package, which includes subsidies for outpatient care, MediShield Life premiums and Medisave top-ups. Details of when these will be rolled out will be announced next week.

Earlier in the debate, Mr Singh (Aljunied GRC) said people on the ground feel that the package helps seniors with their medical bills.

"There are also quarters who conclude it is pungently timed with the election cycle, giving off the odour of an unfair advantage aimed at the electoral prospects of the PAP," he said. These words prompted Mr Chee to say pointedly: "I wonder why Workers' Party (WP) chose to use such an unpleasant description and to focus on politicising this tribute to our Merdeka Generation."

He added: "The opposition calls for the Government to give more, and yet, when the Government gives more to help Singaporeans, the WP criticises the move as an election tactic. We can't have it both ways, please make up your mind and decide where you stand."

The next general election must be held by April 2021, but many expect it to be called some time next year.

People's Action Party backbencher Murali Pillai (Bukit Batok) also took on Mr Singh's remarks about the package's timing.

Mr Murali said it is a "fortunate situation" that the Government is able to fund the package using the current reserves.

"Members sometimes forget that whatever we budget for in this House does not define what will happen for the financial year," he said, noting that market circumstances would dictate whether there are sufficient resources.

"To ascribe a political motive, to say that the MGP is timed for elections, really elevates the Government to a position of being a fortune teller."

Mr Singh and fellow WP members Faisal Manap (Aljunied GRC) and Non-Constituency MP Daniel Goh also called for the Government to move beyond one-off benefit schemes like the MGP, towards a universal and permanent healthcare package for Singaporeans from the age of 60.

In reply, Mr Chee said the MGP and PGP are on top of structural subsidies already provided for Singaporeans. Lower and middle-income citizens also get help with their MediShield Life premiums.

A total of 27 MPs spoke on a broad range of economic and social issues. Labour MPs, in particular, focused on how to improve the lives of Singaporean workers amid technological disruption.

MPs also raised concerns over cuts to the foreign worker quotas for companies in the service sector.

Mr Chee, speaking in his Trade and Industry portfolio, noted that the move would cause some pain, but said it was better to act now to secure jobs for citizens.

The debate resumes today, and Finance Minister Heng Swee Keat will respond to MPs' comments tomorrow.

WP chief Pritam Singh calls for universal senior citizen healthcare package
By Adrian Lim, Political Correspondent, The Straits Times, 27 Feb 2019

A permanent senior citizen healthcare package for all Singaporeans from age 60 has been proposed by Workers' Party (WP) chief Pritam Singh, who said it will "represent a critical symbol of integration" among the people.

This basic level of medical benefits will also ease citizens' out-of-pocket expenses for primary healthcare and help them cope with the cost of living, he said yesterday, the first day of debate in Parliament on the 2019 Budget statement that was unveiled last week.

Mr Singh (Aljunied GRC) said such a healthcare package will also help the Government address feedback from the ground that schemes, such as the Pioneer Generation Package and Merdeka Generation Package, are timed with the election cycle or are unfair because some are left out.

There is an "inherent inequity" in the Government's packages for the earlier generations as some senior citizens, by virtue of their year of birth, miss out on a few years of medical benefits because of the interval between the one-time packages, he added.

Mr Singh, one of four WP MPs who spoke yesterday, also suggested how the WP's proposed healthcare scheme can be funded from the annual Budget.

First, the introduction of Temasek Holdings into the Net Investment Returns Contribution (NIRC) framework since 2016 brings an additional $5 billion a year into the mix instantly and about $25 billion across a five-year term of government, he said.

Despite greater spending needs going forward, the roughly 35 per cent increase in the NIRC from 2016 "goes some way to explain the healthy accumulated surpluses accrued to this term of government from the opening of Parliament in 2016", he noted.

Second, he cited Finance Minister Heng Swee Keat's Budget statement that huge infrastructure projects will be partly funded through borrowing. Mr Singh asked whether this can free up revenue to fund recurrent spending.

"If it does, it would appear that funding such a universal and permanent healthcare initiative for our seniors cannot be dismissed as dishonest, unreasonable or imprudent," he said, citing adjectives that People's Action Party MPs had used in previous years when they shot down the WP's suggestions on public spending.

Last May, in the debate on the President's Address, the WP called for a relook of the 50 per cent cap on spending from the returns of the reserves. National Development Minister Lawrence Wong said it showed an "ill-disciplined, imprudent and unwise" mindset to relax the rules every time money was needed.

In last year's Budget debate, Mr Heng rapped the WP as "dishonest and irresponsible" for its stand on the proposed goods and services tax hike from 7 per cent to 9 per cent, expected to take effect some time from 2021 to 2025.

Mr Singh's call for the senior healthcare package was echoed by MP Faisal Manap (Aljunied GRC) and Non-Constituency MP Daniel Goh.

Responding to the proposal, Mr Chee Hong Tat, Senior Minister of State for Trade and Industry as well as Education, said there are quite a number of existing healthcare subsidies that are structural.

These include extra subsidies at polyclinics for seniors, and government subsidies and support to help low-and middle-income Singaporeans pay for MediShield Life premiums, he added.

"It is not quite accurate for Associate Professor Goh to describe it as, Singaporeans pay for each other, (and the) Government save money. Actually, the Government pays quite a bit of the premiums through premium subsidies and additional premium support. This is part of the sharing," Mr Chee said.

The same principle applies to the upcoming disability insurance scheme CareShield Life, he said, adding that the Community Health Assist Scheme will be expanded to benefit more Singaporeans.

In his speech, Mr Singh also urged the Government to be more open and transparent in sharing information, pointing to the freedom of information law elsewhere.

"Increasingly, as we move into the future, the Government will not have all the answers," he said.

Foreign worker quotas cut to protect Singaporeans' jobs, says Chee Hong Tat
It'll be painful for some firms but decision was made in bid to avoid sociopolitical problems, he says
By Ng Jun Sen, Business Correspondent, The Straits Times, 27 Feb 2019

Jobs for Singaporeans will be lost and sociopolitical problems could flare up if the country does not control the number of foreign workers, said Senior Minister of State for Trade and Industry Chee Hong Tat.

Mr Chee told Parliament yesterday that such problems have occurred in other countries, and this is why the Government reduced the foreign worker quotas for the service sector despite knowing there would be an impact on some companies.

His response came after several MPs questioned the decision to lower the Dependency Ratio Ceiling in 2020 and 2021 for the service industry.

MPs argued that the move would raise business and labour costs for the service sector.

Nominated MP Douglas Foo said the quota cuts are the main concern of the business sector, given its labour constraints.

"No matter how technology may alleviate operational demands, a lack of readily available human resource, which will invariably in turn drive up already increasing labour costs, will work in tandem to drive businesses out of Singapore or out of business altogether," he added.

Ms Denise Phua (Jalan Besar GRC) said the hospitality, food and beverage, arts, entertainment and other lifestyle sectors will likely be hit hardest.

She cited the predicament of Cube Boutique Hotel, whose owner Benedict Choa has adopted an innovative hotel model, automated its check-in system and worked with government agencies to transform some of its processes.

"Ben is all ready to employ any local staff willing to work, if he can only find them," she added.

How can the Government help such companies that are aligned with the national direction and yet still face manpower challenges, asked Ms Phua.

Mr Chee said at the end of yesterday's debate: "We knew it would be painful for the affected companies, and we agonised over this difficult decision during our many rounds of inter-ministry discussions."

Ultimately, the Government decided that it was better to make a move now to control the overall number of foreign workers before the problem got out of hand.

He said the Government was aware of labour constraints in the service sector and how some firms have begun investing in productivity improvements, working closely with government agencies and industry associations.

"The hard work is starting to bear fruit and we need to keep it up," added Mr Chee, noting how productivity has been rising steadily across sectors.

It rose 4.4 per cent for the accommodation segment in each year from 2013 to last year, 3.2 per cent for retail trade and 1.4 per cent for food services. Total manpower in the accommodation sector fell by 1 per cent in that period, while total room stock went up 4 per cent.

While technology cannot fully replace human roles, companies need to understand how it can improve products, reduce costs and raise the quality of services, said Mr Chee.

The Government will increase its support to help businesses transform, and has worked with industry associations for this purpose.

For example, the Productivity Solutions Grant will be enhanced to subsidise up to 70 per cent of out-of-pocket training expenses of eligible firms, up to $10,000.

They can also access up to 70 per cent of government funding for transformation projects through an extended Enterprise Development Grant.

The Ministry of Trade and Industry's Pro-Enterprise Panel has been working with industry associations and companies to review regulations and look for ways to reduce licensing costs, Mr Chee noted.

Change can be a daunting challenge for businesses, but there is support if firms are willing, he said, adding: "Government agencies and industry associations will walk this journey together with you.

"If you want to transform and you are willing to put in effort to do so, we will help you."

NTUC in industry project to nurture 'Worker 4.0'
It is partnering firms to set up committees to identify training and skills workers will need
By Seow Bei Yi, Business Correspondent, The Straits Times, 27 Feb 2019

The National Trades Union Congress (NTUC) has taken steps to set up "training committees" that identify the types of training and skills workers will need to keep up with the transformation of the industries they are in.

Its secretary-general Ng Chee Meng said NTUC has worked with about 10 companies in a pilot project to set up these committees, which comprise management staff and union leaders, to help nurture what he termed as "Worker 4.0".

"For Industry 4.0 to be actualised, we need our workers to transform in parallel with their companies and industries because there can be no Industry 4.0 without the worker," Mr Ng said yesterday, the first day of the debate on the Budget statement.

NTUC is working with companies in sectors ranging from port engineering to aviation, including SIA Engineering as well as in-flight catering service provider Sats.

Together with NTUC, companies are working out future versions or archetypes of their employees, and hence the skills gap and training required for their present workforce.

"Our intention is to help our workers visualise the potential of Industry 4.0 for their companies, and for... their careers," he added.

The partnerships cover about 64,000 workers and the plan is to expand the collaboration to all of NTUC's unionised companies.

He gave the example of PSA senior mechanical engineer Ng Hwee Sheng, who took on a larger role managing automated and intelligent systems at the port operator after completing a year-long systems engineering course at the Singapore Institute of Technology (SIT).

Mr Ng said that with examples of workers who have moved towards Worker 4.0, the hope is that more will do so and take personal responsibility in upgrading their skills.

He suggested that the training committees can chart skills and competency requirements, put in place training programmes such as PSA's one-year systems engineering course at SIT, and schedule worker training to minimise downtime on ongoing operations.

He also pledged that NTUC will do its best to support workers who feel displaced by rapid changes.

Mr Ng was among several MPs who gave suggestions and updates on how workers can be supported.

Senior Minister of State for Trade and Industry Koh Poh Koon, who is NTUC's deputy secretary-general, said firms need to have better training for older workers to improve their skills in using technology. He said NTUC will work with unions, industry partners, government agencies and institutes of higher learning to simplify the training space.

NTUC assistant secretary-general Patrick Tay (West Coast GRC) wants professionals, managers, executives and technicians (PMETs) who earn between $2,500 and $3,500 a month to also benefit from the Progressive Wage Model (PWM), which helps to raise wages by upgrading skills and improving productivity.

"It is timely to scale these efforts on a national level and extend the PWM to lower-wage PMETs to provide for their progression and upward labour mobility," he said.

Mr Melvin Yong (Tanjong Pagar GRC), who is also an NTUC assistant secretary-general, suggested ways to boost workplace safety and health, like compulsory yearly health check-ups for employees.

There could also be differentiated insurance premiums for companies, with those who face many claims for similar incidents paying higher premiums, he added.

Firms urged to improve plight of low-wage service workers
By Linette Lai, Political Correspondent, The Straits Times, 27 Feb 2019

Those who procure services can do more to improve the plight of low-wage workers, said labour MP Zainal Sapari yesterday.

These include focusing on quality rather than price as well as making sure contracts have fair clauses and no unreasonable liquidated damages, said Mr Zainal (Pasir Ris-Punggol GRC).

On top of that, the companies that procure such services should consider longer contract periods, which will give service providers an incentive to invest in technology.

When contracts are renewed, service buyers should also take into consideration that the incumbent workers are more experienced and familiar with the job requirements, and ensure they are not worse off.

"Adopting progressive procurement practices will achieve more favourable outcomes for all, including better welfare for our outsourced, low-wage workers," he added.

Mr Zainal said those who procure services have a "moral responsibility" to look after the welfare of such outsourced workers.

"This includes training - allowing service providers to send their workers for training without requesting headcount replacements - and workplace welfare."

He also called for building owners and those who procure such services to set aside dedicated rest areas for these workers, and urged government agencies to set the example.

Mr Zainal also stressed that service providers must not bid for contracts at the expense of workers' welfare.

"Service providers should not gamble on their workers' wages and welfare and hope that the contract they won through price undercutting will bring them profit."

Suggestions to raise, remove retirement age
Parliament: Many older workers not ready to retire, says unionist
By Linette Lai, Political Correspondent, The Straits Times, 27 Feb 2019

Veteran unionist Arasu Duraisamy has suggested raising both the retirement age and re-employment age to help older workers stay employed.

Speaking in Parliament yesterday, the Nominated MP said the retirement age could go up from 62 to 65, and the re-employment age from 67 to 70.

Mr Arasu, a member of the National Trades Union Congress (NTUC) central committee, said: "Many of the older workers have told us they are not ready to retire for good."

Some of them, he added, need to support their families, others hope to build up funds for healthcare or retirement, and many say they are still healthy, physically able and want to be gainfully employed.

Said Mr Arasu: "The extension of the retirement age and re-employment age provides certainty to workers who want to continue working, and allows a longer runway for employers to plan for training and upskilling, as well as adapt to digital transformation holistically."

Mr Arasu was one of three MPs who urged the Government to make changes to the age of retirement and re-employment to provide greater certainty for older workers.

He lauded recent measures to increase support for older workers, such as increased annual payouts from the Workfare Income Supplement scheme for those with low wages, and the topping up of the Special Employment Credit to coax employers to hire seniors.

But Mr Arasu added: "While these are helpful to older workers, the best support is ensuring they have a good job."

More than 20 firms, including Gardens by the Bay, have raised the retirement age to 65, and some firms have no contractual retirement age.

Mr Arasu said: "From time to time, the labour movement also receives appeals from workers seeking assistance to extend their re-employment contracts.

"I urge the civil service and other government-linked companies to quickly take the lead."

He also spoke about the importance of training workers and educating those in their 50s.

Mr Arasu said: "We need to change their mindset and help educate them that training and skills upgrading are necessary for them to remain relevant. In view of digital transformation and an ageing workforce, ensuring that both SMEs and their workers are pro-training is especially important."

Do away with retirement age, Workers' Party Daniel Goh urges
By Linette Lai, Political Correspondent, The Straits Times, 27 Feb 2019

Non-Constituency MP Daniel Goh wants the retirement age to be removed and the re-employment age to be raised to 70, to help workers age with dignity and independence.

Forcing them to retire prematurely is a waste of human capital, said Dr Goh, who also urged the Government to restore the Central Provident Fund (CPF) contributions of these workers.

"Our older workers should be respected for their experience gathered in a lifetime, and not forcibly retired when they still have so much to contribute in meaningful ways," he said in Parliament yesterday during the debate on the Budget statement.

Dr Goh, who is from the Workers' Party, was one of three MPs to call for changes to the retirement and re-employment ages.

The others were Workers' Party MP Faisal Manap (Aljunied GRC) and Nominated MP Arasu Duraisamy, who is a member of the National Trades Union Congress' central committee.

Dr Goh, however, also stressed that removing the retirement age does not mean getting Singaporeans to "work until they die".

"It is to reform the system so that Singaporeans do not have to worry about their finances and can retire in their 60s if they want to, but they can also continue to work if they want to," he said.

He said those who want to retire in their 60s should be empowered to do so, adding: "The ideal would be that from today, no Merdeka-Generation Singaporean would be compelled to retire or forced to work by necessity."

Dr Goh, speaking in support of his party's call for a permanent universal healthcare scheme for seniors, also urged the Government to allow partial CPF withdrawals if a person is so physically or mentally incapacitated that he cannot work for a significant period of time.

Other proposals he made involved changes to help Singaporeans age with independence.

These included allowing CPF payouts at the age of 60, increasing Medisave top-ups for older women to close the gender gap in CPF, and promoting the Lease Buyback Scheme among those in the Merdeka Generation, who were born in the 1950s.

Many women in the Merdeka Generation may have suffered the opportunity cost of giving up full-time work to care for others, he said.

Call to help caregivers return to work
Heng Chee How seeks more part-time, flexi-work options to tap latent manpower pool
By Linette Lai, Political Correspondent, The Straits Times, 27 Feb 2019

Labour MP Heng Chee How has called for greater efforts to tap Singapore's "latent working population" by matching people with caregiving responsibilities to part-time jobs.

He believes that getting caregivers to work will help solve the current "structural mismatch" between the demand and supply for manpower, indicating that a change is overdue in the labour market which "has long been based on the full-time staffing model".

Mr Heng, who is Senior Minister of State for Defence, is deputy secretary-general of the National Trades Union Congress.

He was the first of 10 labour MPs who spoke in Parliament yesterday, during the debate on this year's Budget statement.

In his speech, he pointed out that companies across many sectors have been "crying out for manpower to meet their needs".

Surveys have also shown that a significant proportion of women who quit their jobs to be caregivers would like to return to work if they can find part-time jobs that allow them to balance work and family, he added.

"This also means that if more companies have such options, many of those who had to quit to care for family would have been able to stay in work, earn and provide better for their immediate and longer-term needs," he said.

Mr Heng noted that there are only four sources any country can tap to get manpower.

The first is school-leavers entering the workforce, but these numbers "were set two decades ago".

Second, it can rely on industry transformation to improve productivity, so that the same number of people can create more economic value through their work.

The third is foreign manpower. But in Singapore's case, the size, mix and growth of this labour source have to be managed judiciously, said Mr Heng.

The fourth is making the best use of the working-age population, including those in the "latent pool".

Mr Heng added that Singapore's full-time mature worker employment rate is 67.1 per cent, which compares favourably with many of the developed nations in the Organisation for Economic Co-operation and Development.

But the equivalent rate for part-time workers here is only 8.3 per cent.

As a result, it ranks 10th on the list of full-time employment rate for mature workers, but only 23rd when it comes to the part-time rate.

"This tells us that most Singapore companies have not yet learnt how to ably utilise and integrate part-time and other flexible work options into their mainstream manpower model or are, perhaps, also unwilling to do so," Mr Heng said.

"This is despite years of promoting flexible work arrangements by the tripartite partners at national and company levels."

Calling for a thorough review of how such work arrangements can fit into mainstream staffing models, he said: "We have to investigate mindsets, close knowledge gaps and consider incentives to open the way and grow the capacity."

Related
Singapore Budget 2019 - Speech

Budget 2019 Debate Round-Up Speech

Merdeka Generation Package

Merdeka Generation Package unveiled at Singapore Budget 2019

Budget 2019 - Overview of Tax Changes

Singapore Budget 2019: CPF-related Highlights

MOM announcements in 2019 Budget Statement

Budget 2019 Foreign worker quota cuts: Will they finally nudge services?

↧

Mahathir says Singapore's success due to Malaysia supplying it water

March 2, 2019, 6:27 am

≫ Next: ColouriseSG: AI-powered tool instantly colours old Singapore photos

≪ Previous: Budget 2019 debate in Parliament

Malaysia's Prime Minister Mahathir Mohamad says Johor govt, people must speak up on the Singapore water agreement
He calls pact 'morally wrong', and says state and people should not wait for federal govt to renegotiate water price
The Straits Times, 1 Mar 2019

PUTRAJAYA • Malaysian Prime Minister Mahathir Mohamad yesterday urged the government and people of Johor to speak up against what he felt was a "morally wrong" water agreement with Singapore.

The "rich" country of Singapore has been benefiting from "poor" Malaysia on the water issue, he told the Johor government's retreat with the federal Cabinet in Putrajaya.

"Singapore rapidly developed because we have been supplying them with water, but I find the Johoreans rarely talk about it," Tun Dr Mahathir was quoted as saying by the Bernama news agency.

"They just wait for negotiations to be undertaken by the federal government as if the state government is unaffected... The state government must make their voices heard. The rich are depending on the poor? This is not only illogical but also morally wrong. We must put stress on this issue," he added.

He was quoted by the Malay Mail online news as saying: "Not just the federal government, not just our negotiators, but the people of Johor must also pressure, saying that Singapore is exploiting Johor's water."

He added, as quoted by the news site: "Singapore depends on Johor for electricity, water and all that. If we manage these well, we will get enough profit.

"However, now, since 1926, we sell water to Singapore at the price of three sen for 1,000 gallons - not litres, but gallons.

"This is the price of 1926, but even now, Singapore is still paying three sen for 1,000 gallons of raw water from Johor. We have to fight this, but it seems we are not that smart in defending or highlighting the mistreatment that is happening to us."

The water issue with Malaysia resurfaced in June last year, a month after the Pakatan Harapan government took office, when Dr Mahathir said the price of raw water sold to Singapore was "ridiculous" and that Malaysia would approach Singapore to renegotiate the terms of the agreement.

Under the 1962 Water Agreement between the two countries which expires in 2061, Singapore is entitled to draw up to 250 million gallons a day (mgd) of raw water from the Johor River at three sen per 1,000 gallons.

Johor is entitled to buy five mgd of treated water from Singapore at 50 sen per 1,000 gallons. Singapore has said this price is heavily subsidised and below the cost of treating the water.

Singapore's stance is that in 1987, Malaysia lost its right to review the price under the 1962 Water Agreement when it chose not to do so.

Speaking about the water issue and referring to Singapore, Dr Mahathir was quoted by the New Straits Times newspaper as saying: "How can such a rich nation with higher per capita income of US$18,000 (S$24,300), compared with us, with per capita income of US$10,000, pay such an unreasonable rate?"

Dr Mahathir claimed that Singapore is also making profits with the high pricing of its desalinated water, yet still pays Malaysia only three sen for the raw water, Malay Mail quoted him as saying.

The Prime Minister said Johor should play up its strategically located ports and lower costs to entice Singaporeans to invest and shop there.

Parliament: Mahathir's comments on water agreement a 'red herring', says Vivian Balakrishnan
By Adrian Lim, Political Correspondent, The Straits Times, 2 Mar 2019

Foreign Minister Vivian Balakrishnan has called Malaysian Prime Minister Mahathir Mohamad's pointed comments over the 1962 Water Agreement a "red herring".

Referring to Tun Dr Mahathir's remarks on Thursday urging Johor's government and people to protest against what he called a "morally wrong" pact, Dr Balakrishnan said the words used were "strong, emotive" and intended to rouse public opinion.

Dr Mahathir, in urging Johor to protest the agreement, had questioned how "a rich nation" could pay "such an unreasonable rate" for raw water sold by Malaysia.

Dr Balakrishnan told Parliament that Singapore's position on the water pact has been "clear and consistent". Neither Malaysia nor Singapore can unilaterally change the terms of the agreement between their countries.

He said Dr Mahathir himself had explained in 2002 that Malaysia chose not to review the price in 1987, when he was PM, because it benefited from the deal - under which Johor paid for treated water at a fraction of the treatment cost.

Dr Balakrishnan added: "I am supposed to be diplomatic. But I think members of this House also know that I call a spade a spade."

Johor plans to stop relying on Singapore for treated water: Menteri Besar Osman Sapian
Menteri Besar says state's plans to be self-sufficient cannot be divulged for now
The Straits Times, 2 Mar 2019

JOHOR BARU • The Johor state government plans to be self-sufficient in treated water instead of relying on Singapore, Johor Menteri Besar Osman Sapian said yesterday, according to Malaysian media.

"We have a plan to be self-sufficient but that is still in the planning stage and cannot be divulged at the moment," Datuk Osman said after attending a meeting with Prime Minister Mahathir Mohamad and Cabinet ministers in Putrajaya.

Mr Osman's comments came a day after Tun Dr Mahathir urged Johoreans to speak up on the "morally wrong" water deal between Malaysia and Singapore.

Under the 1962 Water Agreement, which expires in 2061, Singapore is entitled to draw up to 250 million gallons a day (mgd) of raw water from the Johor River at three sen per 1,000 gallons.

Johor is entitled to buy five mgd of treated water from Singapore at 50 sen per 1,000 gallons. Singapore has said this price is heavily subsidised and below the cost of treating the water. Singapore has, in practice, been supplying 16mgd of treated water at Johor's request.

But Dr Mahathir said during the two-day meeting with Johor officials that "rich" Singapore had been benefiting from "poor" Malaysia on the water issue.

"I don't hear Johoreans talking about this," Dr Mahathir said. "They don't feel pressured and they are waiting for the federal government's negotiations on the matter."

Singapore Foreign Minister Vivian Balakrishnan said yesterday the bilateral water agreement is not about who is richer or poorer, but about the fundamental principle of respecting the sanctity of agreements.

The words Dr Mahathir used were "strong, emotive words, no doubt, intended to rouse public opinion", said Dr Balakrishnan in Parliament.

Meanwhile, Mr Osman also said yesterday that the meeting had achieved its objective of increasing cooperation between the state and federal governments.

"Many ideas and views were presented during the sessions," he was quoted by The Star as saying.

Parliament: Malaysia-Singapore water pact is about respecting sanctity of agreements, says Vivian Balakrishnan
Singapore has so far spent more than $1 billion on water projects in Johor, says minister
By Adrian Lim, Political Correspondent, The Straits Times, 2 Mar 2019

Foreign Minister Vivian Balakrishnan yesterday described the latest comments by Malaysian Prime Minister Mahathir Mohamad on the water issue as a "red herring".

"The 1962 Water Agreement is not about who is richer or poorer. It is about the fundamental principle of respecting the sanctity of agreements," he told the House.

In calling for Johor to speak up against the 1962 Water Agreement, Tun Dr Mahathir had asked how Singapore, as "a rich nation", could pay "such an unreasonable rate" for raw water sold by Malaysia under the water pact, when Malaysia was a poorer country by gross domestic product per capita.

This was "morally wrong", Dr Mahathir had said at the Johor government's retreat with the federal Cabinet in Putrajaya two days ago.

The remarks prompted Mr Vikram Nair (Sembawang GRC) to raise the issue at the debate on the Foreign Affairs Ministry's budget.

Responding, Dr Balakrishnan said Dr Mahathir had used "strong, emotive words, no doubt intended to rouse public opinion".

In his rebuttal, he reiterated that the water pact was guaranteed by Singapore and Malaysia in the 1965 Separation Agreement.

Any breach of it would call into question the Separation Agreement, which is the basis for Singapore's existence as an independent sovereign state, he said.

"Therefore, Malaysia and Singapore must fully honour the terms of the 1962 Water Agreement, including the price of water that is stipulated in it. And our longstanding position has been that neither Malaysia nor Singapore can unilaterally change the terms of this agreement between our two countries," he added.

He stated again that Malaysia had lost its right to review the price of water. In fact, Malaysia has previously acknowledged that it chose not to seek a review in 1987 because it benefited from the pricing arrangement under it.

Dr Mahathir, who was Malaysia's prime minister from 1981 to 2003, explained in 2002 that his country did not ask for a review in 1987 as it knew that any revision would also affect the price of treated water sold by Singapore to Malaysia.

Today, Singapore continues to sell treated water to Malaysia in excess of its obligation of five million gallons a day (mgd) under the water agreement, at Malaysia's request.

Singapore has been selling 16mgd of treated water to Johor, Dr Balakrishnan added. It does so at a fraction of the cost of treating that water, he said. "In other words, for every gallon, we are subsidising.''

On top of this, PUB also receives additional requests to supply additional treated water to Johor from time to time. For example, between Jan 2 and 4 this year, Singapore supplied a further 6 mgd of treated water over and above the 16 mgd, when Johor needed more water because its water plants experienced disruption owing to pollution.

Dr Balakrishnan also highlighted how PUB and Johor signed an agreement in 1990 to build the Linggiu Dam, to increase the yield of the Johor River.

Johor owns the dam, but Singapore paid more than $300 million for its construction and operational costs, as well as compensation for the land used for the Linggiu Reservoir, among other things.

"If Malaysia had exercised the right to review the price of water in 1987, Singapore might well have made different investment decisions on developing the Johor River," he said.

He added that Singapore has so far spent more than $1 billion on water projects in Johor to help ensure not only PUB's waterworks but also that Johor's own waterworks can reliably draw water from the Johor River.

Dr Balakrishnan said that in periods of dry weather - which Johor is coincidentally experiencing now - Singapore continues to provide Johor with treated water at its request.

"We do so out of goodwill, without prejudice to our legal rights under the water agreement.''

He added: "We are permanent neighbours and we want to be good neighbours and we have never shied away from dealing with difficult bilateral issues."

This is why, he said, Prime Minister Lee Hsien Loong proposed to Dr Mahathir last November that their attorneys-general meet to better understand each other's positions on whether Malaysia still had the right to review the price of water under the current pact.

The attorneys-general met last December, he added. "Unfortunately, their discussions were overshadowed by the Johor Baru Port Limits and the Seletar Instrument Landing System procedures issues that we are now trying to resolve."

Still, they will continue their discussions in due time, he said.

Summing up, he said that after Separation in 1965, Singapore chose a "different and unique fundamental philosophy of governance" and had taken a different development path. "Singapore has no natural resources, we are even short of water, but Singaporeans have long internalised that no one owes us a living. We have provided a framework where all our citizens strive to do their best, and achieve our potential by dint of our efforts."

He said Singapore takes a zero tolerance policy towards corruption, and the Government plans and invests for the long term, as exemplified by the 2019 Budget.

"We honour and fulfil our international agreements and commitments. As a result of that, businesses have the confidence to invest and grow in Singapore and... we invest in infrastructure ahead of time."

Dr Balakrishnan said: "I will let members of the House and fellow Singaporeans decide for yourselves whether we have been 'fair' or, to quote Dr Mahathir, whether we have been 'morally wrong'.

"I think the answer is obvious."

Longstanding water agreement
The Straits Times, 2 Mar 2019

• Under the 1962 Water Agreement, Singapore can draw up to 250 million gallons a day (mgd) of raw water from Johor at three sen per 1,000 gallons.

• Singapore sells treated water to Johor at 50 sen per 1,000 gallons, a price that is a fraction of the true cost of treating the water.

• Johor is entitled to buy up to 5 mgd of treated water under the 1962 Water Agreement. Singapore has, in practice, been supplying 16mgd of treated water at Johor's request.

• The agreement provides for a price review after 25 years. Malaysia, however, did not exercise the right in 1987.

• Malaysian Prime Minister Mahathir Mohamad, during his earlier premiership from 1981 to 2003, explained in 2002 that Malaysia did not ask for the review as it knew that any revision would also affect the price of treated water sold by Singapore to Malaysia.

• In 1990, PUB and Johor signed an agreement to construct the Linggiu Dam to increase the yield of the Johor River.

• Johor owns the Linggiu Dam, but Singapore paid more than $300 million for construction, land and operational costs, among others.

• The terms of the 1962 Water Agreement were reaffirmed between the two countries in January last year, at the 8th Singapore-Malaysia Leaders' Retreat.

Parliament: Joint working group to submit proposals on maritime border dispute, says Vivian Balakrishnan
By Adrian Lim, Political Correspondent, The Straits Times, 2 Mar 2019

A joint working group looking into the maritime border dispute between Singapore and Malaysia will submit its recommendations to the foreign ministers of the two countries early this month.

In an update yesterday, Foreign Minister Vivian Balakrishnan said that officials have been meeting to discuss measures to de-escalate the situation on the ground, and are aware of the urgent need to prevent accidents and untoward incidents.

Last month, the Greek-registered bulk carrier Pireas collided with Malaysian government vessel Polaris, which was anchored illegally in Singapore's territorial waters.

Dr Balakrishnan told Parliament that while several issues with Malaysia have emerged in recent months, the Government is committed to resolving them in an "amicable and constructive manner, and in strict accordance with bilateral agreements and international law".

Besides the maritime dispute, the two countries are in disagreement over Singapore's introduction of new landing procedures for Seletar Airport and Malaysia's subsequent decision to declare a restricted zone over Pasir Gudang for the purpose of military activities.

Both countries have agreed to mutually suspend the measures until the end of this month.

Yesterday, Mr Vikram Nair (Sembawang GRC) and Dr Muhammad Faishal Ibrahim (Nee Soon GRC) asked for updates on the disputes, during the debate on the budget of the Ministry of Foreign Affairs.

On the landing procedures and airspace issues, Dr Balakrishnan said both sides' transport ministers and senior officials have been meeting to discuss the matters. "And again, we look forward to finding a solution that is mutually agreeable, and - fortunately or unfortunately - in my capacity as Acting Transport Minister, this is also my problem at this point in time," he added.

Dr Balakrishnan is standing in for Mr Khaw Boon Wan, who underwent minor surgery for a fractured left arm yesterday morning.

Senior Minister of State for Foreign Affairs Maliki Osman said in Malay: "As close neighbours, issues will naturally surface from time to time that we have to deal with.

"What is important is how we deal with them - discussing in good faith, complying with international law and honouring existing agreements."

He added: "Despite these current difficulties, Singapore still hopes to work with Malaysia for better relations, and for closer long-term cooperation that will benefit the citizens of both sides."

Parliament: Singapore will not allow any foreign government to assert authority in its waters, says Vivian Balakrishnan
By Rachel Au-Yong, Housing Correspondent, The Straits Times, 27 Feb 2019

Singapore "will not allow any foreign government to assert any authority in our waters", Foreign Minister Vivian Balakrishnan said in a strongly worded statement in Parliament yesterday.

"If there are any attempts to assert authority or take any unauthorised actions, our agencies, our vessels and our forces will take appropriate measures," he added.

He was replying to Nominated MP Walter Theseira, who asked about a collision earlier this month between Malaysian government vessel Polaris and Greek-registered bulk carrier Pireas in Singapore's territorial waters off Tuas.

Associate Professor Theseira also asked what measures can be taken to ensure that vessels, crew and passengers will not be subject to foreign authority while in Singapore territorial waters or for acts committed in Singapore territorial waters.

The collision on Feb 9 took place as the Pireas was on its way from Singapore to its next port of call, Tanjung Pelepas in Johor.

Dr Balakrishnan told the House that a Singapore Police Coast Guard vessel on site observed and recorded the collision. The Maritime and Port Authority of Singapore (MPA) was thus notified by the Maritime Security Task Force and the Pireas itself.

And the MPA, having determined the incident was not a "very serious maritime casualty" under the International Maritime Organisation's code on casualties, allowed the vessel to proceed to its next port of call.

The minister noted that Pireas was not detained by the Malaysian authorities in Singapore waters.

Malaysia, on Oct 25 last year, unilaterally gazetted altered port limits that went beyond its past claims and intruded into Singapore's territorial waters. Malaysian government vessels have also continued to intrude into those waters. Singapore has called on Malaysia to withdraw its ships and return to the status quo before Oct 25. It has also extended its port limits off Tuas to the full extent of its territorial waters, and both countries are in talks on the matter.

Prof Theseira also asked the minister what mariners should do if they were given instructions by Malaysian vessels in Singapore waters, and what Singapore forces would do if they were to observe such attempts to give instructions.

Dr Balakrishnan said the waters have been designated as Singapore's port limits, hence, all vessels passing through should take instructions from MPA. "Any foreign government vessels have no locus standi to be issuing any instructions."

Related
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Malaysia's Mahathir taunts Singapore over water, again, in June 2018

Mahathir says Singapore should pay at least 10 times more for Malaysian raw water in Associated Press interview on 13 August 2018

Singapore supplies additional treated water to Malaysia at Johor's request from 2 to 4 Jan 2019

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KL-Singapore High-Speed Rail postponed to May 2020; Malaysia to pay Singapore RM45 million for suspending project

Crooked bridge to Singapore may be revived; Malaysia does not need Singapore's consent to build crooked bridge, says Mahathir

Singapore and Malaysia dispute over airspace and territorial waters

Singapore-Malaysia maritime and airspace disputes: Officials of both countries to meet in the second week of January 2019

Singapore-Malaysia sea and air disputes: Foreign Minister Vivian Balakrishnan Ministerial Statement in Parliament on 14 January 2019

Singapore student takes on Mahathir at Oxford Union dialogue session on 18 Jan 2019

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ColouriseSG: AI-powered tool instantly colours old Singapore photos

March 3, 2019, 5:37 am

≫ Next: Streaming into Normal and Express in secondary schools to stop in 2024; to be replaced by full subject-based banding

≪ Previous: Mahathir says Singapore's success due to Malaysia supplying it water

Month-old free online software developed by GovTech team is a global hit, with 68,000 users
By Shabana Begum, The Straits Times, 2 Mar 2019

It all started when three specialists from national information technology agency GovTech wanted to bring history to life by adding splashes of colour to old Singapore photographs.

Throughout January, the men from GovTech's Data Science and Artificial Intelligence Division developed a deep learning model that colourises black-and-white photos.

Called Colourise.sg, the free online tool, which went live in the first week of last month, takes about 31/2 seconds to add colour to an uploaded photograph. But the trio who created the AI-powered tool for an internal company hackathon did not realise that Colourise.sg would gain international traction.

Just days after the tool was put up on the Internet, users from England to Argentina were raving about the tool's speed and colourising precision on Twitter.

"A Dutch user tweeted that he colourised the one photo he has of his mum when she was young," said Mr Tan Kai Wei, 26, one of Colourise.sg's creators.

"There were a few who didn't know what their late grandparents looked like in reality. This tool gave a possibility for them to find out."

Mr Preston Lim, 26, the software engineer behind Colourise.sg, said: "These anecdotal comments highlight how visceral and emotional colour is, and how much emotion colour can bring to people."

About 68,000 users globally have used the tool, with 270,000 colourised images generated.

Compared with existing colourisation tools, the month-old software is unique because it was intentionally trained to colour images specific to Singapore.

The deep learning model was fed with more than 500,000 colour photos from the 1980s onwards, from the National Archives of Singapore and the New York Public Library's Singapore collection. Eventually, the model could recognise Singapore-based objects and features to realistically shade a picture of a shophouse or a military procession.

"When we tested an old photo of a local schoolyard on a colourisation tool created in the United States, the colours were muted. On Colourise.sg, the tones were more vibrant. The US-based tool was unable to recognise the elements or features within this Singaporean scene," said Mr Lim.

The model performs well on portraits because its training set comprised historical photos dominated by people, said Colourise.sg co-creator Andrew Tan, 29, who worked on training the model.

The team is looking to provide the model as an open source to programmers who can run the tool, and they are hoping to collaborate with arts and heritage agencies to organise a colourisation photo exhibition.

The trio hope that Colourise.sg will spur younger people to take an interest in the country's history.

"The National Archives has a wealth of old photos and a lot of people don't know about it. We thought that by colouring some of these photos, we would generate interest in looking back at some key moments in history," said Mr Andrew Tan.

While looking through digitised black-and-white photos, the team also encountered pictures of places that do not exist any more, for example, Jiksha Station, from an image of a trishaw going by rows of shophouses.

On top of evoking nostalgia and sparking an interest in history, Colourise.sg can also act as a rough guide for digital colourists who may need help in choosing colours for certain objects.

Mr Ngoh Shian Bang, 24, a freelance photographer who has been dabbling in digital colourisation for a few months, said: "Colourise.sg would save us a lot of time and we can focus on refining the colours that aren't accurate in a photo. It is particularly helpful if we were working on a busy street photo or a landscape picture with many elements."

Mr Lim said the tool should not replace traditional colourists. "It's best if a person uses machine learning to speed up their time or make their life easier. I think that's what the goal of artificial intelligence should be."

Mr Tan Kai Wei agreed: "It should be complementary rather than a substitute for the real human experience."

↧

Streaming into Normal and Express in secondary schools to stop in 2024; to be replaced by full subject-based banding

March 6, 2019, 7:47 am

≫ Next: Free cervical cancer vaccine for Secondary 1 female students from April 2019

≪ Previous: ColouriseSG: AI-powered tool instantly colours old Singapore photos

Subject-Based Banding (SBB) to replace streaming in schools
Students can take up subjects at higher or lower levels, and graduate with common cert
By Sandra Davie, Senior Education Correspondent, The Straits Times, 6 Mar 2019

Forty years after streaming was introduced in secondary schools, the Ministry of Education has taken the momentous step to do away with the Normal (Technical), Normal (Academic) and Express streams.

In their place will be full subject-based banding, in which students take subjects, at a higher or lower level, based on their strengths.

The ministry will start full subject-based banding in about 25 schools next year, and apply it to all secondary schools by 2024.

All Secondary 1 students in the 2024 batch will take subjects at three levels - G1, G2 or G3, with G standing for "General". G1 will roughly correspond to today's N(T) standard, G2 to N(A) standard and G3 to Express standard.

Through their time in school, and as they further develop their strengths and interests, they will be able to take a combination of subjects across different bands.

When they reach Sec 4 in 2027, the students will take a common examination and graduate with a common secondary school certificate which will be co-branded by Singapore and Cambridge.

Education Minister Ong Ye Kung said: "With full subject-based banding implemented, form classes reorganised across the board and a combined secondary education certificate, we would have effectively merged Express, N(A) and N(T) streams into a single course. The Express, N(A) and N(T) streams, and their labels, will therefore be phased out.

"So, from three education streams, we will now have 'one secondary education, many subject bands'. We will no longer have fishes swimming down three separate streams, but one broad river, with each fish negotiating its own journey."

With students taking up subjects of varying combinations, the ministry hopes schools will group students in different ways and not just academic abilities. This will bring more social mixing and encourage students to help one another.

Explaining why the ministry was doing away with the Normal-Express divide, Mr Ong said that streaming was introduced 40 years ago during an "efficiency-driven phase" to cut down on student dropout rates.

Attrition rates have come down from about a third of every cohort in the 1970s to less than 1 per cent now. At the same time, the ministry recognises that there are downsides to streaming, said Mr Ong.

"Entering a stream that is considered 'lower' can carry a certain stigma that becomes fulfilling or self-limiting. Students can develop a mindset where they tell themselves, 'I am only a Normal stream student, so this is as good as I can be'," he said, pointing out how, over the years, several MPs have brought up these pernicious effects of streaming.

This point was also highlighted by Prime Minister Lee Hsien Loong in a Facebook post yesterday, when he said that streaming has some drawbacks: "It lacks flexibility, and students in the slower streams may become demotivated. Banding overcomes these difficulties, while enabling each student to learn at the pace which suits their aptitude and level, depending on the subject."

Mr Ong said that while there are some students who are very strong in every academic subject, most have uneven strengths, and even specific weaknesses. "It is just the way humans are. The challenge of our education system is to cater to that."

But the move to do away with streams is not the culling of a sacred cow, but rather an incremental move, he added.

Over the years, subject-based banding was gradually extended, and Normal stream students who took higher-level subjects have performed comparably to their Express counterparts.

Mr Ong said the ministry has been grappling with this trade-off - between customisation and stigmatisation - adding that changes should be thought through in education.

He said: "We should never stay frozen for a long period, only to make sudden big changes years later. So, any change analogous to the slaughtering of any animal is most likely a bad idea."

He ended his speech by saying that in making this change, the ministry was guided by the belief "that no child's fate is fixed, and in an environment that encourages growth and development, and promotes holistic education, they will fulfil their potential to be sons and daughters of Singapore whom we are proud of".

Streaming into Normal and Express in secondary schools to stop in 2024: 8 things to know
The Straits Times, 5 Mar 2019

The Ministry of Education (MOE) will do away with the Normal (Technical), Normal (Academic) and Express streams in secondary schools by 2024.

Instead, there will be full subject-based banding, in which students will take up subjects at higher or lower levels, based on their strengths.

The ministry will start full subject-based banding in about 25 schools next year and progressively apply it to all secondary schools, Education Minister Ong Ye Kung said in Parliament on Tuesday (March 5) during the debate on the ministry's budget.

Here is what you need to know:

1. WILL SCHOOLS CONTINUE TO ORGANISE STUDENTS INTO FORM CLASSES BASED ON ACADEMIC BANDS?

With full subject-based banding, students will take each subject at a level suited to their ability. The ministry said it expects to see more students taking combinations of subjects at different levels, unlike today where most students take subjects at the level of their "stream". This gives schools a chance to reconstitute their form classes in different ways.

Doing so will allow students of different backgrounds to grow and learn together, form deeper friendships and work well together. The pilot schools will be trying out new ways of organising students in both form and subject classes. Best practices can be adopted by more schools later on.

2. IF MY CHILD IS DOING WELL ACADEMICALLY, WILL HE OR SHE BE DISADVANTAGED NOW THAT THE FORM CLASS HAS STUDENTS OF DIFFERENT ABILITIES?

Students doing well academically will not be disadvantaged, said MOE.

For each subject, students will be taught in subject classes based on their ability levels. Students in the same subject class are already assessed to be able to study that subject at the same level, whether G1, G2 or G3 - so there will not be a major gap in learning abilities.

Within the same class, teachers will also further differentiate their teaching to meet the needs of the class, which is no different from today. Each student will still be challenged to learn based on his or her individual pace.

3. HOW WILL THE SECONDARY SCHOOL POSTING SYSTEM CHANGE?

Mr Ong said MOE has decided that it is better not to disrupt the current posting system. This means that secondary schools should continue to admit students across three PSLE scoring bands, even though the streams have been merged.

"PSLE still serves as a useful initial gauge of the subject bands that each student is most suited for at the beginning of Sec 1. So students admitted in the first PSLE scoring band will initially take mostly G1 subjects, those in the second PSLE scoring band will take mostly G2 subjects, and those in the third take mostly G3 subjects. Admitting students across three PSLE score bands will allow schools to offer subjects of all bands," said Mr Ong.

Once they enter secondary school, the students can discover and further develop their strengths and interests, and full subject-based banding will allow them to take a combination of subjects across different bands.

There is also an important social consideration, he explained.

"Admitting students from different PSLE scoring bands into the same secondary school will ensure that our students get to make friends from diverse backgrounds. Indeed, one of the key objectives of education is forging a cohesive society."

4. IF STUDENTS CAN CUSTOMISE THEIR EDUCATION UNDER FULL SUBJECT-BASED BANDING, WHY DO WE STILL NEED TO POST STUDENTS INTO SECONDARY SCHOOLS ACROSS THREE SCORING BANDS, WHICH SEEMS SIMILAR TO STREAMING?

The transition from Primary 6 to Sec 1 is significant for all students. Thus, it is important to ensure that students learn successfully by taking subjects suited to their learning pace and needs, said MOE.

Students' PSLE scores still serve as a useful gauge of the pace of learning that students are most suited for at the beginning of Sec 1. But this is just at the point of admission to Sec 1 to match the suite of subjects to the students' ability then.

Beyond Sec 1, with full subject-based banding, students will be able to take more subjects at a different or more demanding level, depending on how well they do for those subjects. It will also give students more opportunities to interact and forge friendships with peers from different backgrounds.

5. WILL THERE STILL BE SEC 5?

By 2024, all students enrolling into Sec 1 will go through a four-year curriculum for all subject bands.

"At the end of Sec 4, in 2027, these students will attain the common certificate with various subject permutations - six G3 subjects and one G2 subject, or five G3 and two G2, or two G3, three G2 and one G1, and so on," said Mr Ong.

"This will require us to undertake a review of our post-secondary posting system, so that students taking a combination of G1, G2 and G3 subjects can be fairly considered for ITE, polytechnics and JCs. Our review will recognise students' particular strengths that make them suitable for specific post-secondary courses."

As 2024 is a few years away, Mr Ong said the ministry will use this time to undertake this review.

MOE will also explore other alternatives to a fifth year in secondary schools, which may be like the Polytechnic Foundation Programme that helps students who have completed their secondary school education enter polytechnics or JCs.

6. ARE TEACHERS ABLE TO MANAGE THE TEACHING LOAD AND GIVE EVERY STUDENT THE ATTENTION HE OR SHE NEEDS?

While the introduction of subject-based banding has led to a slight increase in the overall teaching load, schools have successfully piloted new measures to implement the banding system in a way that is both effective and sustainable.

For example, schools may band classes for timetabling together, so that subject-based banding students can join subject classes at the more demanding level.

Schools also leverage the Student Learning Space to provide bridging support to subject-based banding students. This ensures teachers do not work significantly longer hours and can perform at their best.

Still, teachers may have to use different teaching styles to engage the students from different scoring bands. Teachers are trained to handle diversity within their classes and to bring out the best in every child.

MOE will continue to support teachers by providing them with resources and additional professional development to help them manage the wider range of students with full subject-based banding.

7. HOW WILL ADMISSION TO POST-SECONDARY EDUCATION INSTITUTIONS CHANGE UNDER FULL SUBJECT-BASED BANDING?

Admission to these institutions already recognises the efforts of students who take out-of-stream subjects.

MOE will conduct a longer-term study on how admission to these institutions should be adjusted to complement the roll-out of full subject-based banding, to achieve the best educational outcomes for students. Refinements to the admission criteria for JCs, polytechnics and the ITE will be announced separately later.

8. WHAT WILL HAPPEN TO SPECIALISED SCHOOLS LIKE SPECTRA AND CREST?

Spectra and Crest currently take in only N(T) students.

Schools with specialised programmes, such as NUS High School, the School of Science and Technology, and Integrated Programme schools, take in only Express students.

Will MOE mandate that they take in students across three PSLE bands? Mr Ong said there is value in having certain schools with specialised programmes.

"Every education system in the world will have schools that cater specifically to different segments of learners, such as those with high academic ability, strengths in specific areas, or who prefer a more technical education," he said.

But he admitted that the downside is the lack of mixing in these more specialised schools.

He said they must make a special effort to recruit students from all backgrounds, including through Direct School Admissions.

"They will have to ensure that students participate actively in inter-school mixing opportunities, such as combined schools CCAs, Outward Bound School camps, and Values-in-Action projects. I can see many of the principals from the specialised schools working very hard to do better in this aspect."

At the same time, there is also scope for these specialised schools to offer more subject options. Spectra and Crest, he said, should offer more N(A) compared to today, and could possibly also offer a few Express-level subjects.

"Similarly, in time, it will also make sense for the schools that take in only Express students to offer some subjects at the N(A) or N(T) level," said Mr Ong. "After all, customisation of education, and catering more flexibly to the varied interests and abilities of students, will benefit them."

MOE FY2019 Committee of Supply Debate

Parliament: Streaming helped reduce school dropout rates, says Ong Ye Kung
Social stratification would have been worse without it, but the system also had downsides
By Amelia Teng, Education Correspondent, The Straits Times, 6 Mar 2019

There have been concerns about the Normal stream and its negative side effects, but without streaming, social stratification would have worsened, Education Minister Ong Ye Kung said yesterday.

In the early years of Singapore's independence in the 1970s, a third of every cohort dropped out of school. Today, the figure is less than 1 per cent. "So, I urge members not to casually juxtapose social stratification with streaming. Without reducing attrition through streaming, social stratification would have been far worse," said Mr Ong.

The Normal (Technical) stream, which was introduced in 1994, contributed significantly to this outcome, he said, adding: "Till today, we are still benefiting from the legacy of the 'efficiency-driven' education system."

Streaming was introduced from the 1980s to arrest the high school attrition rate, he said. "We were concerned about the huge number of dropouts who could not read or write at the end of primary school. We had to move away from a one-size-fits-all education system because if students could not catch up with their lessons, and did not understand what was taught, they would lose interest and drop out."

There are many pupils who in fact prefer a stream which allows them to study at a more comfortable pace, and they gain confidence from being a "bigger fish in a smaller pond", he added.

Still, there are downsides to streaming, said Mr Ong, including stigmatisation, and over the years there have been significant changes to the streaming system, such as how streaming was phased out in primary schools by 2008, and the introduction of subject-based banding since the mid-2000s.

"We are now ready to take a further, major move," said Mr Ong. This includes the roll-out of full subject-based banding starting next year, and then the end of streaming in 2024, when Secondary 1 students will take a combination of subjects at different levels - G1, G2 and G3.

Saying he was confident that the new system will benefit many students, he drew from his own childhood experience growing up in a Chinese-speaking family and struggling with his English throughout school.

He said that in hindsight, he could have been helped by the Learning Support Programme which is now available to primary school children who are lagging. And in secondary school, he would have been better off taking up English at a lower level to build his language skills at a slower pace.

He told Parliament that he entered Primary 1 without being able to speak or read much English. It was only in Primary 3 that he figured out phonics and started reading by himself.

"My late mother, a Chinese teacher, tried to teach me, but her English was very limited. Then some time in Primary 3, I had a eureka moment. I figured out that if 'b-a-r' reads 'bar', and 'b-e-r' reads 'ber', 'b-a-r-b-e-r' put together is barber, the guy who cuts my hair. In other words, I figured out phonics," he said.

"If I were in primary school today, I would probably have been put into a Learning Support Programme, which would have done me good. In secondary school, it would also have been better for me to be placed in a less demanding band for English, which would give me time to pick up the basics, and then upgrade to the more demanding band if I could meet the standards. I should have done G2 or G1 English."

He said, like him, most students have uneven strengths, and specific weaknesses.

"It is just the way humans are. The challenge of our education system is to cater to that.

"That is the central purpose of this change.... The school system will become far more flexible than today, so that we can customise learning to the student, to give them time to blossom at different points in their lives, while anchoring the belief that we can grow and get better."

PM Lee Hsien Loong's Facebook post on education
The Straits Times, 6 Mar 2019

Our education system is widely admired. However, that doesn't mean we will stop trying to improve it!

During the Committee of Supply (debate) in Parliament today, Ong Ye Kung announced that secondary school streaming will be phased out by 2024. In its place, Ministry of Education, Singapore is implementing subject-based banding.

Secondary students will be able to study subjects at the appropriate band, depending on whether they are strong or weak in that subject. The N-and O-Level exams will be replaced by a new common national exam. Students will take individual papers at different levels, matching the bands.

MOE introduced streaming 40 years ago. The system has enabled students of different abilities to learn at their own pace. It has helped nearly every student to complete secondary school, and most to go on to post-secondary education.

But streaming has some drawbacks - it lacks flexibility, and students in the slower streams may become demotivated. Banding overcomes these difficulties, while enabling each student to learn at the pace which suits their aptitude and level, depending on the subject.

Glad to see the lively exchange of views in Parliament about streaming yesterday.

We take education very seriously, and will listen to all ideas to make it better. We must acknowledge that children differ enormously in their abilities and interests.

Schools should tailor the education they offer to the students' varying needs and talents.

At the same time, they should create opportunities for students to interact with one another across different races and social backgrounds so that they grow up at ease with one another and share a sense of identity, mutual responsibility and nationhood.

PRIME MINISTER LEE HSIEN LOONG

No more Normal, Express streaming: Parents applaud move by MOE
They say move can reduce stigmatisation and let students learn at own pace
By Jolene Ang, The Straits Times, 6 Mar 2019

Education Minister Ong Ye Kung's announcement yesterday in Parliament on doing away with the Normal and Express streams in secondary schools by 2024 was met with approval from the House and from parents as well.

Parents who spoke to The Straits Times said that this is a good move by the Education Ministry, with some adding that it has the potential to help reduce stigmatisation.

Mrs Dadina Ong recalled her own experience of being "branded as Normal" after the Primary School Leaving Examination.

The 42-year-old described it as a scary experience. "Everyone started judging, and that shocked me," said Mrs Ong.

She managed to get into the Express stream after Secondary 1, and went on to be a bank treasurer after getting a diploma in business in a polytechnic and a degree from an overseas university.

She is glad her Primary 1 son will grow up in a different system.

"This Normal and Express split is not necessary. It will be more relaxed now," she said, adding that it might even encourage some people to have more children. "It is fun studying when there are no high demands and expectations."

Housewife Reshma Alwani, who has a daughter in Pri 1, welcomed the chance for her child to be in classrooms with students from other bands.

"We shouldn't be afraid to let them sit with others who score less in an exam. Instead, focus on their own learning ability," she said.

"In fact, when everyone is just as good or better than you, it can also be intimidating."

But she, like other parents, also had concerns, such as how schools decide when students get to move across subject bands.

Will it still be based on a single exam, she asked?

"Sometimes, the child is nervous or unwell on exam day, and that can affect the performance," she said.

Another worry was what will happen to students who go to schools which offer mainly higher-level G3 subjects. From 2024, starting with those entering Sec 1, students will take subjects at three levels - G1, G2 and G3, with G standing for "General".

G1 will roughly correspond to today's Normal (Technical) standard, G2 to Normal (Academic) standard and G3 to Express standard.

Housewife Diane Wee, 44, recalled how her daughter, who is now in Sec 2, was posted to an all-Express stream school last year, but had to transfer to another school after "dropping" to the N(A) stream.

"In a way, it is good. In her new school, the class size is smaller and she can learn at her own pace.

"I can see that she is doing a lot better than at the first school, where she was struggling," said Madam Wee.

But she would have preferred it if her child could have changed streams and yet stay at her first secondary school. Changing streams was already emotionally trying for her daughter, and it was made tougher by having to find another school.

Madam Wee said: "Changing schools was inconvenient as we had to hunt around for another that could admit her in Sec 2. Most schools we approached told us to just apply and wait."

Mr Ong said in Parliament yesterday that "in time, it will also make sense for the schools that take in only Express students to offer some subjects at the N(A) or N(T) level".

"After all, customisation of education, and catering more flexibly to the varied interests and abilities of students, will benefit them," he said.

These schools also have to make a special effort to recruit students from all backgrounds, and ensure that students have sufficient inter-school mixing opportunities, he added.

Building friendships across streams at Edgefield Secondary
By Amelia Teng, Education Correspondent, The Straits Times, 6 Mar 2019

With the Ministry of Education's removal of the Normal stream label, more classes in future may not be organised along academic tracks.

Education Minister Ong Ye Kung yesterday cited the example of Edgefield Secondary School, which took the pioneering step of reshaping its form classes so that students - no matter their stream - can build friendships with each other.

Since January, each Secondary 1 class has been made up of students from different streams.

Classmates take about half of their lessons such as physical education, art and music together, while for academic subjects like mathematics and science, they break into groups by their assigned streams: Express, Normal (Academic) and Normal (Technical).

Mr Ong said most students told him they were happy with their new classes, and their parents felt the arrangement was better.

But he also heard from the school principal, Mr Lee Peck Ping, that a handful of parents were concerned the new approach might slow down learning in class.

"Peck Ping painstakingly explained how subject-based banding works, what students are learning as a form class, and how classes for academic subjects are still banded based on the learning abilities of the students," he said.

"He told me a very small number of parents were still worried and felt that had they known, they would not have sent their child to Edgefield," he said, adding that he understands their concerns.

"But Edgefield Secondary was making the right trade-off, to develop students both academically and socially," Mr Ong said.

By 2024, more schools will adopt such innovative ways of organising their form classes.

Mr Lee told The Straits Times that the school decided to reorganise its classes to help students interact more naturally.

Under subject-based banding, nearly 60 per cent of its Sec 1 and 2 students from the Normal (Academic) stream take at least one Express level subject. Nearly all of its Normal (Technical) students take at least one higher-level subject.

The students have grown in confidence and self-esteem, but some said they do not feel a sense of belonging to the Express classes, he noted. This is because students tend to stay separate from each other as they come from different classes.

The school went through more than 100 permutations of the timetable before coming up with the final version. It considered factors such as the availability of classrooms and teachers, and ensuring that students' school hours are not extended.

Ms Alfieana Alphonso, a form teacher of a Sec 1 class, said: "Lesson planning can be challenging and it requires teachers to really know their students and their strengths well."

She added that teachers differentiate their teaching subtly, for instance, by providing different worksheets in a single classroom.

"Secondary school isn't just about academic achievement," she said. "It is also about building memories and experiences with others from different streams."

Sec 1 Express student Muhd Abid Muhamad Zahid, 12, said: "We have more friends, and we don't look down on each other.

"I am not so good in science, so my N(A) friend will help me when we do work in the library together.

His classmate Heidi Loh, a Normal (Academic) student, said: "No one really cares about which streams we come from. I take Chinese at Express level and I don't feel different from the Express students because we are in the same class."

Sec 1 Normal (Technical) student Javier Peh, 12, goes for recess and chit-chats with friends from other streams. They also play and help each other with school work. He also takes mathematics, Chinese and English at the Normal (Academic) level.

"If you are a true friend, you shouldn't go to an N(T) student and say you are less... you would be supportive and keep helping them to do better in exams," he said.

Streaming in secondary schools to stop: Boon Lay students benefit from form classes organised by CCAs
By Jolene Ang, The Straits Times, 6 Mar 2019

Boon Lay Secondary School has been dividing classes by their students' co-curricular activities (CCAs) since 2017. And Education Minister Ong Ye Kung found out first-hand the impact this "unorthodox" system is having on its students when he visited the school.

In Parliament yesterday, he recalled how students explained that they looked forward to attending morning assembly, cutting back on late-coming and absenteeism rates, because they get to meet friends and seniors from their CCA groups.

"One student told me, 'Now, I can pour my heart out to my seniors every morning before assembly, even if it is for 10 minutes. But to do that, I must come to school, and come on time,'" said Mr Ong. Another student told him how in the past, a teacher might admonish a noisy class by asking 4N(T) to keep quiet.

"All the other Normal (Technical) students immediately felt like they were singled out," said Mr Ong. "Now, the teacher would say, 'NCC, keep quiet!', and the Normal stream students would feel okay." NCC stands for National Cadet Corps.

"The Ministry of Education will need to study their results further, but there is now a genuine belief that the social environment of the school can positively influence a student's academic behaviour and performance," he said.

Boon Lay Secondary students attend assembly sessions and Character and Citizenship Education lessons together with their CCA mates, regardless of streams.

Classes are further grouped into three clusters: uniformed groups, performing arts, and sports and clubs. Students attend camps and overseas trips with their clusters, which encourages mixing for students in gender-or ethnicity-specific CCAs, such as The Boys' Brigade and Malay dance.

However, students still attend classes in teaching groups that are differentiated by stream, based on subject-based banding.

Boon Lay principal Tan Chor Pang said: "Teaching groups offer more flexibility because they can be formed in any way we want. The groups are not their identity. They are merely classes they go to because they take a certain subject combination."

This means that students' subject combinations can be fluid, and they can take out-of-stream subjects easily. And because teaching groups are not fixed form classes, it is easier for the student to integrate into the class. "We differentiate identity and affiliation from teaching and learning," said Mr Tan.

Secondary 4 Normal (Technical) student Hafiz B Immran, who is in NCC, said he used to mix with only students in his stream before classes were reorganised - partly because he was shy, but also because he was afraid others would look down on him.

"Now, I have worked with people from the other streams. We gain knowledge and build character and leadership together. I think this has really helped me step out of my comfort zone," said Hafiz, 16.

English and social studies teacher Josephine Tan, 31, who is in charge of the choir students, said that unlike traditional form classes which change every one to two years, the CCA-centric classes allow her to follow her students throughout their time in the school.

"We, as teachers, can understand them a lot better and give them a holistic education, not based only on academics, but also on their development and growth on a personal level," said Ms Tan.

Some GEP schools have introduced mixed form classes
By Amelia Teng, Education Correspondent, The Straits Times, 6 Mar 2019

Some primary schools offering the Gifted Education Programme (GEP) have taken steps to widen the social circles of these pupils, Education Minister Ong Ye Kung said yesterday.

Rosyth, Nanyang and Nan Hua have introduced form classes that have a mix of pupils this year from both GEP and non-GEP classes, he noted in his response to Ms Denise Phua (Jalan Besar GRC), who had asked how the Education Ministry ensured students interacted with their peers in other streams.

"There is merit to having students who are gifted academically to also mix with students who are taking subjects at G1, or former Normal, level," she said.

Mr Ong announced yesterday that the Normal (Technical), Normal (Academic) and Express streams will end by 2024 and be replaced by subjects at three levels: G1, G2 and G3.

He said that in the three GEP schools, pupils spend a specified amount of time in their mixed form classes, but attend GEP classes for academic subjects such as Science and English.

"So, changes are already happening. We note your point, it is exactly the same balance that we are trying to optimise, and we will continue to work on it," he added.

Mr Ong also said there was value in having diversity in the education system, with schools that focus on different abilities, like the School of the Arts (Sota) and schools such as Crest Secondary and Spectra Secondary, which specialise in preparing students at the Normal (Technical) level.

Responding to Dr Intan Azura Mokhtar (Ang Mo Kio GRC), he said the Singapore Sports School already takes in students from all academic levels.

Sota, on the other hand, accepts mainly students from the Ex-press stream because it offers the relatively more rigorous International Baccalaureate (IB) programme, he said.

"We want to make sure the student can keep up, and not end up not coping and losing confidence totally," he said. Mr Ong noted that Sota may have to relook its admission policies when the three streams are merged.

What is most important is that most schools "in the middle" have diversity in their schools, which is what his ministry hopes to achieve, he added.

Taking away labels will shore up students' confidence
By Sandra Davie, Senior Education Correspondent, The Straits Times, 6 Mar 2019

At long last, the Education Ministry has taken the step to do away with the Normal-Express divide in secondary schools.

What will take its place is subject-based banding, where over four years in secondary school, students will take a combination of subjects at different levels according to their strengths.

At the end of the fourth year, they will sit a new common exam. They will leave school with a certificate that will list the subjects they took, at which level and the grades they attained.

Education Minister Ong Ye Kung said this change had been several years in the making, the way it should be done in education - figuring out what needs to change next, planning it out, and implementing at a pace that takes into account the trade-offs, complexities and the immense impact it will have on students.

But taking away labels, especially Normal (Technical) and Normal (Academic), is a significant step - a recognition of the fact that students' ability levels are not fixed. Rather, they have varying and diverse strengths.

We should also welcome the fact that students for a large part of the school day - when doing physical education, their co-curricular activities, music, design and technology, art - will be assigned to mixed-ability classes.

Research shows that systemic streaming not only affects how students learn, but also how teachers teach. And it is the students classed as less able who lose out.

Evidence from years of research suggests that while streaming benefits higher-attaining students, it has a negative effect on middle and lower attainers.

A British study released last year showed that teachers use different techniques with students in lower-ability groups, teaching a narrower curriculum and avoiding more complex areas for fear of overstretching them.

The result is that lower-ability students are less likely to develop into independent learners, said the researchers from UCL Institute of Education, Nottingham University and King's College London.

This is similar to what is espoused by labelling theory, which says that students' attainment level is, at least to some degree, a result of the interaction between the teacher and the pupil, rather than just being about their ability.

A classic study which supports the self-fulfilling prophecy theory was done by Harvard psychologist Robert Rosenthal in an elementary school in California.

He selected a random sample of 20 per cent of the student population and informed teachers that these students could be expected to achieve rapid intellectual development.

He tested all students at the beginning of the experiment for IQ, and again after one year, and found that the randomly selected "spurter" group had, on average, gained more IQ than the other 80 per cent, who the teachers believed to be "average".

Professor Rosenthal speculated that the teachers had passed on their higher expectations to students, which had produced a self-fulfilling prophecy. "If teachers had been led to expect greater gains in IQ, then increasingly, those kids gained more IQ," he said of his finding.

But just how do teachers' expectations lead to gains in IQ?

Further studies done by Prof Rosenthal showed that a teacher's expectations affect his interactions with the students he teaches in many ways.

Teachers give the students who they expect to succeed more time to answer questions, more specific feedback and more approval. Even their body language is different - they consistently nod and smile at those kids more.

So, MOE's move to do away with the Express and Normal stream labels and to introduce full subject-based banding will go a long way in benefiting our students.

As Mr Ong said, this change will help us to customise education for students, while minimising the effect of labelling and stigmatisation.

Educators and policymakers have to act on their belief in the growth mindset when it comes to learning and that a child has diverse strengths and talents.

As Mr Ong said, all schools must provide an environment that encourages growth and development to bring out the full potential of their students.

MPs urge MOE to abolish Normal, Express streaming
'Normal' label hurts students' confidence and motivation, they say, calling for expansion of subject-based banding
By Amelia Teng, Education Correspondent, The Straits Times, 5 Mar 2019

It is time to move away from streaming children into Normal and Express tracks. That was the call from several MPs yesterday as the debate on the Education Ministry's budget kicked off.

Urging the ministry to abolish academic streaming, they said it has led to Normal stream students losing motivation and confidence, with two MPs giving real-life examples of students limiting their own potential because of the label.

Instead of streaming, which has been in place for about 40 years, they suggested expanding subject-based banding to all students, allowing everyone to share classrooms but learn at their own pace.

Subject-based banding, which last year was expanded to all secondary schools, currently lets Normal stream students take higher-level subjects, including those from the Express stream, if they are strong in those subjects.

While streaming allows students to learn at their own pace, Normal stream students often feel discouraged by the "Normal" label placed on them, and lose self-esteem and confidence, MPs said yesterday.

Describing streaming as a "sacred cow" that needs to be slain, Ms Denise Phua (Jalan Besar GRC), who chairs the Government Parliamentary Committee for Education, highlighted the 2002 Jack Neo film I Not Stupid, which revolved around the lives and struggles of three pupils in the EM3 academic stream, which was for those who were academically weakest.

Last year, a video documentary called Regardless Of Class, hosted by Senior Minister of State Janil Puthucheary, reaffirmed the differences between students from different streams, she added.

Dr Intan Azura Mokhtar (Ang Mo Kio GRC), a former secondary school teacher who has long called for streaming to be abolished, said: "It is time for us to move on and recognise that academic streaming places self-limiting beliefs on students who think they are only as good as the stream they are in."

Drawing from his past experiences as a science relief teacher 30 years ago, Mr Ang Wei Neng (Jurong GRC) said that Normal stream students had a sense of "resigned acceptance and defeat", especially when he tried to teach them topics that were beyond their syllabus.

"As a young and idealistic teacher at that time, I tried to interest the students in science no matter which streams they were from. Even when certain sections were not supposed to be taught to the Normal stream students, I went on to teach them as it was interesting," he said.

"However, the Normal stream students were quick to dismiss most of what was in their textbooks. They said, 'We are taking the reduced syllabus, no need to learn'."

Mr Charles Chong (Punggol East) said streaming can create a "class divide" between students who are deemed by the education system to be academically able and those who are less so.

Mr Louis Ng (Nee Soon GRC), who last week called for streaming to be scrapped, again urged MOE to address concerns about social stratification due to streaming.

All five MPs who spoke on streaming called for subject-based banding to replace it, allowing students to take a combination of subjects at different difficulty levels, but without clear-cut labels such as "Normal".

"Some of us excel in languages, others excel in mathematics or the sciences, while others excel in sports or the arts," said Dr Intan, who also suggested that graduation certificates should no longer indicate if students took the N levels or O levels.

Ms Phua said: "Doing away with streaming does not equate to putting everyone in the same class for every subject, ignoring the need for each to learn at their own pace and method. Far from it."

In 2008, MOE scrapped streaming in primary schools and replaced it with subject-based banding, which allows pupils to take a combination of subjects at either Standard or Foundation level.

Mr Ang said: "Clearly, (the success of) subject-based banding has shown that sometimes we pigeon-hole and stream our young too early."

Related
Learn For Life – Remaking Pathways: Greater Flexibility With Full Subject-Based Banding -5 Mar 2019

UPLIFT Strategies to Enhance Support for Disadvantaged Students and Strengthen Ground Coordination -5 Mar 2019

MOE FY2019 Committee of Supply Debate Response by Minister for Education Ong Ye Kung -5 Mar 2019

↧

Free cervical cancer vaccine for Secondary 1 female students from April 2019

March 8, 2019, 7:33 am

≫ Next: Needy Singaporeans to get more financial aid with increase in ComCare Assistance from July 2019

≪ Previous: Streaming into Normal and Express in secondary schools to stop in 2024; to be replaced by full subject-based banding

Offer will be progressively extended to all girls currently studying in secondary schools
By Salma Khalik, Senior Health Correspondent, The Straits Times, 7 Mar 2019

All Secondary 1 girls in national schools, including madrasahs, will be offered free vaccination from next month to protect them against cervical cancer.

About 200 women get the cancer each year and 70 die from it, said Senior Minister of State for Health Amy Khor yesterday.

She added: "This cancer, which is caused by infection with the human papilloma virus (HPV), can be prevented with vaccination and screening."

The vaccine protects women against common HPV strains, which primarily cause cervical cancer, but can also cause vulva, vaginal and anal cancers.

As a one-time catch-up, the offer will be progressively extended to all girls currently studying in secondary schools. Those of similar age studying in private education institutes will also be offered free vaccination, if they are Singapore residents.

This is an opt-in scheme.

The Government has put aside $10 million for this year, and $2.5 million annually from next year.

Singapore has picked the oldest of three HPV vaccines on the market, Cervarix, which protects against HPV strains 16 and 18, which account for 70 per cent of cervical cancers.

The Ministry of Health (MOH) told The Straits Times that Cervarix was selected based on factors such as efficacy, price and stock availability.

Its spokesman added: "MOH is evaluating Gardasil 9 to compare it to the other two HPV vaccines. If found to be cost-effective in the local setting compared to Cervarix or Gardasil, MOH will consider offering Gardasil 9."

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Needy Singaporeans to get more financial aid with increase in ComCare Assistance from July 2019

March 8, 2019, 8:17 am

≫ Next: CHAS subsidies for all Singaporeans with chronic illnesses from November 2019

≪ Previous: Free cervical cancer vaccine for Secondary 1 female students from April 2019

By Theresa Tan, Senior Social Affairs Correspondent, The Straits Times, 6 Mar 2019

Needy Singaporeans will get more financial aid each month from the Government.

From July 1, a single person on the ComCare Long-Term Assistance scheme will get $600 a month, up from $500. Two-person households will get $1,000 a month, up from $870 now.

The scheme, also known as Public Assistance, provides a cash sum each month to destitute persons who cannot work permanently as a result of old age or illness, and have little or no family support.

Most are elderly Singaporeans, and recipients also get other help, such as with their medical bills. The increase in Long-Term Assistance quantums will benefit some 4,000 households.

Recipients of Long-Term Assistance will get help as long as they remain eligible for the scheme.

New beneficiaries of the ComCare Short-to-Medium-Term Assistance (SMTA) and those who have their SMTA aid renewed after July 1 can also expect more money.

Minister for Social and Family Development Desmond Lee said in Parliament yesterday: "We also provide ComCare Short-to-Medium-Term Assistance to help families tide over difficult times and regain stability. For example, those whose breadwinners are temporarily unable to work, looking for jobs or earning a low income may receive temporary support.

"We have similarly reviewed ComCare SMTA to keep pace with living expenses and changes in expenditure patterns."

Mr Lee said the amounts given to SMTA recipients vary, depending on their needs and financial circumstances.

The Ministry of Social and Family Development's (MSF) spokesman gave an example of a family of two living in a one-room HDB rental flat with one person earning $500 from working part-time, and the family getting about $360 a month from the SMTA to supplement their income.

The household can expect an increase of about $200 in aid from July.

The length of monetary aid given also varies from case to case, but in a parliamentary reply last month, the MSF said a median sum of about $400 was given to families on the SMTA each month, and the median length of help received was about six months. From 2015 to 2017, between 14,000 and 16,000 households received the SMTA at any point in time.

Mr Lee announced the increases in ComCare quantums in response to questions from Dr Lily Neo (Jalan Besar GRC) and Mr Seah Kian Peng (Marine Parade GRC), who asked about the efforts to strengthen the aid given to vulnerable families.

Mr Lee said that in the past decade, the MSF has reviewed and adjusted the ComCare rates every two to three years. The last review was in 2016.

Mr Seah also asked if ComCare reviews and increments could be made more frequently, and Mr Lee said he would consider the suggestion.

For Madam Lee Ah Chah, 77, an extra $100 is very good news. She now gets $500 each month from the Public Assistance scheme.

She is divorced, estranged from her two sons and lives alone in a two-room rental flat. She stopped work as a cleaner over a decade ago to take care of her ailing mother.

She suffers from asthma and other illnesses, and said it is hard to find a job, given her age and health, even if she wants to work.

To make ends meet, she is very thrifty and often cooks simple meals. Fish and seafood are a luxury, she said.

"I am very thankful to the Government. With more money, I can buy better food at times to treat myself. I also hope to save some money for emergency use."

Related
More Comprehensive Convenient And Coordinated Support For Low-Income And Vulnerable Families -6 Mar 2019

↧

CHAS subsidies for all Singaporeans with chronic illnesses from November 2019

March 8, 2019, 9:09 am

≫ Next: Older HDB rental blocks to get better ventilation, natural lighting

≪ Previous: Needy Singaporeans to get more financial aid with increase in ComCare Assistance from July 2019

New green CHAS card from November for all Singaporeans with chronic health conditions
By Rei Kurohi, The Straits Times, 7 Mar 2019

From Nov 1, all Singaporeans suffering from diabetes, hypertension or other chronic illnesses can tap the Community Health Assist Scheme (CHAS) for subsidies, and those who already qualify for it will receive bigger subsidies.

The introduction of the new CHAS Green tier is for households with a monthly per capita income of more than $1,800 or a home with an annual value of more than $21,000.

Its holder can get up to $112 in yearly subsidies for a simple chronic condition, or up to $160 for a complex condition - meaning someone with multiple chronic conditions or one with complications.

Details of the new health assistance programme were announced by Senior Minister of State for Health Edwin Tong in Parliament yesterday during the debate on his ministry's budget.

The CHAS Green tier is in addition to the existing CHAS Orange and CHAS Blue, which subsidise treatment for common illnesses, chronic health problems and selected dental issues for lower-to middle-income Singaporean households.

Last year, about 630,000 patients benefited from CHAS subsidies, Mr Tong said.

Singaporeans who were aged 16 and older in 1965, referred to as the Pioneer Generation, enjoy CHAS benefits regardless of income.

From Nov 1, members of the Merdeka Generation, who were born in the 1950s and are in their 60s now, will also qualify for CHAS benefits regardless of income.

Annual subsidies for the Merdeka Generation will be capped at $340 for simple conditions and $520 for complex conditions.

For common illnesses, the subsidy will be capped at $23.50 per visit. For dental services, the Merdeka Generation will get between $16 and $261.50 per procedure, depending on what it is.

This is higher than the CHAS Blue tier for households in the lowest income bracket with a per capita monthly household income of $1,100 or less, but not as high as what the Pioneer Generation receives.

Subsidies for current CHAS Orange and CHAS Blue cardholders will also be raised by $20 a year, from $300 to $320 a year for CHAS Orange and from $480 to $500 a year for CHAS Blue.

CHAS Orange cardholders can get a subsidy of up to $10 per visit for common illnesses from Nov 1. Currently, they do not get any subsidies for common illnesses.

"Collectively, we expect to pay out more than $200 million a year on CHAS subsidies," Mr Tong said.

He added that the Health Ministry is working on simplifying the CHAS application process to encourage more Singaporeans to sign up.

Online applications will be available from September this year.

Ministry of Health Committee of Supply Debate 2019

Rate of growth in healthcare spending unsustainable, says Gan Kim Yong
People must try to stay healthy even as system improves, he says
By Salma Khalik, Senior Health Correspondent, The Straits Times, 7 Mar 2019

Singapore is pumping in more money than ever on healthcare, but continued spending at current rates will not be sustainable.

The most effective way to keep healthcare affordable is for people to stay healthy, as unhealthy lifestyles are taking a toll on the system and affecting quality of life as Singaporeans age.

Speaking yesterday during the debate on his ministry's budget allocation for the year, Health Minister Gan Kim Yong shared that since 2010, national healthcare spending had almost doubled, from $11 billion to reach $21 billion in 2016.

Subsidies given out had also risen from $2.6 billion to $5.6 billion, pushing up government health expenditure, which increased by 2.4 times - from $3.9 billion to $9.3 billion.

"It is unsustainable for us to continue increasing our national healthcare expenditure at this current rate," Mr Gan said.

Healthcare manpower and infrastructure has been ramped up.

Mr Gan said that since 2010, the number of doctors here has gone up by 52 per cent and the number of nurses by 44 per cent.

Medical school intake has gone up from 300 to 500 a year, and the latest nursing intake of more than 2,100 students is a record high.

Seven new hospitals have been built, adding a total of 3,800 beds when fully opened.

But this trajectory cannot be sustained, he said. Individuals have to do their part in keeping healthy, and the healthcare system has to transform the way it delivers care.

An ageing population is only one part of the problem.

While people here are living longer, "for every 10 years we live, we spend more than a year in illness", said Mr Gan.

Life expectancy here had gone up to 84.8 years in 2017. The years lived in good health had also increased to 74.2 years.

"These figures also show that we are living about 10 years of our life in ill health," Mr Gan said.

Dr Chia Shi-Lu (Tanjong Pagar GRC), head of the Government Parliamentary Committee for Health, had expressed disappointment that Singapore, once ranked the healthiest country in the world, had fallen to eighth place this year.

Mr Gan acknowledged that Singapore needs to work harder in its fight against chronic diseases.

Deaths from cancer, stroke and heart diseases had fallen by 16 per cent between 2010 and 2017 as a result of "early prevention, better treatment and disease management, which have contributed to our increase in life expectancy".

But he said that the prevalence of diabetes, high blood pressure and high cholesterol levels here had gone up by 4 per cent, 14 per cent and 33 per cent, respectively, among adults aged 18 to 69 between 2010 and 2017.

He said: "This is partly due to an older population, but also to unhealthy lifestyles and habits."

And while individuals need to get their act together, healthcare institutes too have been changing the way they treat patients.

An experiment by the National Healthcare Group polyclinics, where a team of medical and non-medical personnel looks after about 5,000 patients with chronic diseases, has resulted in improved outcomes, he said.

Polyclinics in the other two clusters are now following suit.

New ways to manage patients are also being tried out at the hospital level. About 4,000 patients have benefited from Alexandra Hospital's integrated model. This is now moving into the next phase, where it integrates hospital care with community services.

To keep people healthy, the ministry will offer free cervical cancer vaccines to young girls, better screening for cervical cancer and non-fasting screening for diabetes and cholesterol to encourage more people to screen for problems.

Mr Gan said: "But the most effective way to keep healthcare affordable is to stay healthy."

Six new polyclinics by 2023, with up to six more by 2030
By Felicia Choo, The Straits Times, 7 Mar 2019

Six new polyclinics will open by 2023, with another four to six more opening by 2030, in a bid to boost Singapore's primary care infrastructure.

The additions will bring the number of polyclinics from the current 20 to around 30 by 2030, Dr Lam Pin Min, Senior Minister of State for Health, said during the debate on his ministry's budget yesterday.

The polyclinics to be completed by 2023 are in Bukit Panjang, Eunos, Kallang, Khatib, Sembawang and Tampines North, while those in Serangoon and Tengah will be ready by 2025.

The locations of the remaining polyclinics have yet to be finalised.

The Ministry of Health will also continue to redevelop existing polyclinics to meet anticipated demand.

The redeveloped Ang Mo Kio and Yishun polyclinics opened last year, while Pasir Ris Polyclinic is currently being redeveloped as part of the Integrated Transport Hub and will be more user-friendly with barrier-free access.

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Older HDB rental blocks to get better ventilation, natural lighting

March 9, 2019, 6:47 am

≫ Next: Universal Basic Income: Why should Government give handouts to everyone?

≪ Previous: CHAS subsidies for all Singaporeans with chronic illnesses from November 2019

By Shabana Begum, The Straits Times, 8 Mar 2019

In the 1980s and 1990s, housewife Leong Lye Chan, 57, would squint hard while walking along the dark and gloomy corridors of the HDB block where she rents a flat.

She would perspire as she waited in the muggy corridors for her son after school.

In 2004, both ventilation and lighting at Madam Leong's Block 217 in Ang Mo Kio Avenue 1 improved significantly following changes made by the HDB.

Another rental block that was improved under the pilot programme was Block 1 in Holland Close.

Following the pilot, HDB will do the same at other older rental blocks built in the 1960s and 1970s in areas such as Bukit Merah, Kallang and Bedok.

These places house most of the older rental blocks, and the refurbishment will start in 2020.

Despite the tenants' positive feedback about the 2004 pilot, the works were not extended to other blocks in view of the rental demand and supply situation at the time, said an HDB spokesman.

A rental block typically has one-or two-room flats along both sides of the central corridor. Save for sunlight and wind sneaking into the corridor through open spaces at the lift and staircase landings, the rest of the corridor is mostly unlit.

To improve ventilation, HDB will create more openings along the corridors by removing some flats on each floor of the rental blocks, Senior Parliamentary Secretary for National Development Sun Xueling said yesterday.

The tenants living in the affected units will be moved to similar units in the same building or nearby rental blocks. "HDB will work closely with local organisations and the relevant agencies to ensure a smooth transition," she added.

Nationwide, HDB manages about 230 rental blocks, but lighting and ventilation improvements will be for blocks built in the 1960s and 1970s that have long corridors with flats on both sides, she said.

"We are looking to start preparation for the improvement works later this year," she added.

For Madam Leong's block, two columns of one-room flats were removed near both ends of the wide 10-storey block. Before the pilot, only the centre of the building had openings for air and light to enter.

Now, each floor is lined with 24 units, with two 5m-wide open spaces near the ends to facilitate cross-ventilation.

"Last time, the corridor was too dark. When people walked past us, we couldn't see them. Now, it is better because older people can see and hold the handrails while walking. It is also more airy," said Madam Leong, who has been living in her one-room flat for 32 years with her 31-year-old son.

Families also use the open spaces to dry their laundry, store their wheelchairs and bicycles, and chat with neighbours.

She added: "Every afternoon, I sit with my neighbours around a foldable table to chat about life and drink tea. Then, we return to our houses at 4pm to cook dinner for our families."

Lower-income families will get more help to have own homes
By Rachel Au-Yong, Housing Correspondent, The Straits Times, 8 Mar 209

Lower-income families will receive a lot more help in their home ownership journey, from getting grants to buy resale flats to a team of officers dedicated to monitoring their progress. In all, six MPs asked about ways to help this group, and yesterday, the Ministry of National Development unveiled an unprecedented slew of measures to uplift them.

ENHANCED GRANTS

Families who used to own their own HDB homes but are now living in rental flats will be entitled to the Step-Up CPF Housing Grant from May.

Before its expansion, the grant of $15,000 was for lower-income families to buy new three-room homes, but only if they already owned two-room flats.

With the change, families can also buy resale flats - not just Build-To-Order units - as long as they are in non-mature estates.

Minister for National Development Lawrence Wong, who made the announcement in Parliament yesterday, said the grant was expanded "because we want to do more to help these families move back to home ownership". He added that the number of families in rental flats who buy their own homes has nearly doubled in the last five years, from 700 in 2014 to 1,300 last year.

Some MPs, however, noted that the total number is relatively small: About 5,000 such families out of a total of 56,000 in the last six years.

CHANGES TO FRESH START SCHEME

Several improvements are being made to the 2016 Fresh Start Housing Scheme to help families with young children in rental flats buy a second HDB flat of their own.

Since December 2016, 74 families have joined the scheme.

This includes the setting up of an intensified support programme to help Fresh Start families stay on course in their journey to home ownership. A service provider appointed by the Ministry of Social and Family Development will run it.

"We have found through our experience that closer and more regular contact with families allows for early intervention to address issues that may emerge," said Senior Parliamentary Secretary Sun Xueling.

The programme is in addition to a new HDB team dedicated to spot and reach out to rental families who may be eligible to buy a home.

Another change is that "special consideration" will be given to selected families - who applied for Fresh Start but did not meet some of the criteria - to join. This would benefit about 80 families in the next three years, she said.

Also, to qualify for Fresh Start, the age limit requiring a family to have at least one child below age 16 will be raised to 18. Ms Sun did not say how many will benefit.

The new age limit will be applied as well to the Parenthood Priority Scheme and the Assistance Scheme for Second-Timers (Divorced/Widowed Parents).

RENTS TO STAY THE SAME

The Housing Board will not raise rents for families who have made down payments and signed the leases to buy a home.

Typically, rents are reviewed every two years, and are tiered according to household income. "We hope this will put households in good stead for their next milestone as home owners," Ms Sun said.

RENTAL FLATS TO BE SPRUCED UP

The HDB will improve airflow and brightness of rental blocks built in the 1960s and 1970s, which typically have long central corridors with flats on both sides.

Also, tenants who share one-room rental flats, under the Joint Singles Scheme (JSS), will get greater privacy with the introduction of partitions.

Related
Joint MND-HDB Press Release: Measures to Support Housing Needs of Singaporeans -7 Mar 2019

↧

Universal Basic Income: Why should Government give handouts to everyone?

March 9, 2019, 7:08 am

≫ Next: New Zealand terror attack: Societies must acknowledge rising Islamophobia, tackle right-wing hate ideology, says Shanmugam

≪ Previous: Older HDB rental blocks to get better ventilation, natural lighting

Policies involving the application of universal basic income are instituted with a broad brush (It's time to talk about a universal basic income, March 6).

Yes, they are simple to administer, will help those displaced by disruptive technology and may even enable creative endeavours not otherwise possible.

But why give an unqualified windfall to all and sundry, regardless of need, circumstances or motivation to strive for a better life?

Indubitably, the less fortunate, deprived, sick, handicapped and lower-salaried workers must be given a helping hand by the state.

But such financial aid must be targeted to be meaningful and work effectively.

With a good social welfare infrastructure under the umbrella of the National Council of Social Service, its complex administration in our small and smart nation is manageable, unlike with sprawled out populations in large countries, where those who need the most help may find it inaccessible.

We can't possibly continually give handouts to the able-bodied displaced by disruptive technology as this indicates the unremitting theme of things to come.

But retraining those eager to start afresh, of which schemes are aplenty here, and teaching them to fish again, will give them an occupation to provide food for a lifetime.

Yik Keng Yeong (Dr)
ST Forum, 8 Mar 2019

↧

New Zealand terror attack: Societies must acknowledge rising Islamophobia, tackle right-wing hate ideology, says Shanmugam

March 17, 2019, 7:38 am

≫ Next: Every school must promote tolerance, openness: PM Lee Hsien Loong at Hwa Chong Institution’s 100th Anniversary Dinner

≪ Previous: Universal Basic Income: Why should Government give handouts to everyone?

Dealing with specific incidents not enough - you got to deal with the ideology, he says
By Charmaine Ng, The Sunday Times, 17 Mar 2019

Societies need to acknowledge that Islamophobia is increasing around the world and come down hard on these people, Singapore's Minister for Law and Home Affairs K. Shanmugam said yesterday.

Speaking to local mediaa day after the terrorist attacks in New Zealand mosques that left 49 people dead, Mr Shanmugam said: "When you see the face of the person who was alleged to have committed the crime, I think you see the face of evil."

He added that while people with right-wing hate ideology have carried out terror attacks for many years, the issue has not received "as much attention" as those said to be carried out on behalf of Islam.

Beyond having leaders speaking publicly to condemn the attacks and stepping up security, societies have to "face squarely the reality that Islamophobia is rising", said Mr Shanmugam, who was speaking on the sidelines of a grassroots event.

"Just as we come down hard on terrorists who say that they attack on behalf of Islam, you got to come down equally hard on Islamophobic people and also you got to deal with the ideology - it's not just dealing with specific incidents," he added.

"For that you got to start by acknowledging that it is there. When you do not acknowledge it, the problem just grows."

Societies need to figure out the boundaries between free speech and hate speech - a line which, in many places, is often blurred.

"We try and draw a line and a fairly strict line, whether it is in the form of entertainment or it is preaching... anything that interferes or attacks other peoples' religions, race," he noted.

Highlighting Queensland Senator Fraser Anning, Mr Shanmugam said of the controversial comments made by the far-right independent politician: "Attacking Islam, attacking the Prophet, saying that it is a savage religion. If he had been in Singapore, this would never have been allowed."

It was important for Singaporeans to understand that if people are allowed to attack other religions or races, over time this would spread as hate speech which results in a "culture of permissiveness", Mr Shanmugam added.

And that creates "a greater divide" and "a more permissive environment for violence... so we have to face up to these questions," he said.

When asked if security at religious sites will be stepped up in the light of the Christchurch attacks, Mr Shanmugam said that while Singapore remains on high alert, it has strict laws on gun control as well as on hate speech.

He also urged Singaporeans who have come across the video of the New Zealand shooting to not circulate it and delete the footage.

"Please delete it. And don't spread it. Because we are giving the gunman and the right-wing ideologists exactly what they want by spreading it," he said.

'Sickening', Islamophobic remarks by Australian senator Fraser Anning after Christchurch attack, says Shanmugam
By Tee Zhuo, The Straits Times, 16 Mar 2019

Remarks by a far-right Australian senator after the Christchurch terror attack were "sickening" and Islamophobic, said Home Affairs and Law Minister K. Shanmugam.

Mr Shanmugam said that the comments by senator Fraser Anning described Islam as a violent, fascist religion promoting savage beliefs.

The senator also attacked the Prophet and blamed Muslim immigration for the massacre, Mr Shanmugam added in the Facebook post on Friday night (March 15).

"The senator's statement is sickening. It is completely unacceptable. And he issued it when people are grieving," he said, adding that "our prayers are with the victims and their families".

New Zealand Prime Minister Jacinda Ardern said that the 49 victims were from across the Muslim world.

She said her government was working with consular officials from countries including Pakistan, Turkey, Saudi Arabia, Bangladesh, Indonesia and Malaysia.

In a statement released just hours after the attack, Mr Anning condemned the gunman but said that "usually (Muslims) are the perpetrators".

"The real cause of bloodshed on New Zealand streets today is the immigration program which allowed Muslim fanatics to migrate to New Zealand in the first place," the senator from Australia's Queensland said.

Citing a verse from the Bible, he added that "those who follow a violent religion that calls on them to murder us, cannot be too surprised when someone takes them at their word and responds in kind".

Australian politicians have denounced his remarks. Prime Minister Scott Morrison said that the remarks were "disgusting".

"Those views have no place in Australia, let alone the Australian Parliament," he said in a Facebook post.

Similarly, former Prime Minister Malcolm Turnbull described Mr Anning's as "contemptible", and called him a "disgrace to the Senate".

"By spreading hatred and turning Australians against each other he is doing exactly what the terrorists want," he said on Twitter.

Fraser Anning’s comments today are contemptible. He is a disgrace to the Senate and what is worse by spreading hatred and turning Australians against each other he is doing exactly what the terrorists want.
— Malcolm Turnbull (@TurnbullMalcolm) March 15, 2019

Mr Shanmugam's Friday Facebook post noted that New Zealand is a peaceful country and is seen as a model of race relations, and that most people cannot imagine this happening in the country.

He also noted that the terrorist had released an "extreme, violent message" just before the attack.

"It is heart-breaking that people, praying in a mosque, should be mowed down."

Other Singapore leaders have also expressed their condolences.

President Halimah Yacob strongly condemned the attack in a letter to New Zealand Governor-General Patsy Reddy, and called it a “senseless act of violence against innocent civilians at places of worship”.

“On behalf of the people of Singapore, I convey our deepest condolences to the bereaved families of the victims, and wish those injured a swift recovery,” she added.

Prime Minister Lee Hsien Loong said in a letter to Ms Ardern: “This heinous act is an attempt to spread fear and hatred. We must not allow such acts to divide our societies.”

He added that Singapore stands in solidarity with New Zealand in the fight against terrorism.

Foreign Minister Vivian Balakrishnan also extended his condolences to New Zealand’s Deputy Prime Minister and Minister of Foreign Affairs Winston Peters.

The terrorist, Australia-born self-professed fascist Brenton Tarrant, 28, was charged with murder in court on Saturday.

He had released a lengthy document titled The Great Replacement, in which he said he wanted to kill Muslims based on a conspiracy theory that European populations were being displaced by immigrant groups.

Australia gets tough on anti-Muslim rhetoric
The Sunday Times, 17 Mar 2019

CANBERRA • Australian Prime Minister Scott Morrison has announced the government will censure a senator over his Islamophobic comments about the Christchurch mosque shootings.

Queensland Senator Fraser Anning, a far-right independent politician, tweeted last Friday: "Does anyone still dispute the link between Muslim immigration and violence?"

"I wonder if there will be as much outrage from the left wing when the next Muslim terrorist attack occurs? Most likely silence and talk about 'lone wolf attacks, mental illness and no connection to Islam'," he added.

Will any left wingers condemn this? pic.twitter.com/PQo439pUyX
— Senator Fraser Anning (@fraser_anning) March 15, 2019

The remarks were yesterday rebuked by Singapore Home Affairs and Law Minister K. Shanmugam on Facebook. "The senator's statement is sickening. It is completely unacceptable. And he issued it when people are grieving," he said, adding that "our prayers are with the victims and their families".

Mr Morrison said yesterday his coalition government and the opposition Labor party had discussed a bipartisan motion when Parliament returns next month.

"I would normally not want to give this any oxygen, but I want to absolutely and completely denounce the statements made by Senator Anning... in his attack on Islamic faith specifically," the Prime Minister said.

"These comments are appalling and they're ugly and they have no place in Australia. He should be, frankly, ashamed of himself," said Mr Morrison, who is an evangelical Christian, after visiting Sydney's Lakemba Mosque.

Former Australian prime minister Malcolm Turnbull also called Mr Anning's comments "contemptible".

"He is a disgrace to the Senate and, what is worse, by spreading hatred and turning Australians against each other, he is doing exactly what the terrorists want."

Both major parties can go no further than censuring Mr Anning as he is an independent. But amid the controversy, an unidentified young man threw an egg at Mr Anning during a press conference in Melbourne, prompting the senator to hit him in the face repeatedly before being stopped.

Australia is grappling with the New Zealand shooter being its citizen, given how far-right groups have been active in Australia for decades.

Some experts say that anti-Muslim rhetoric has now been normalised by mainstream right-wing news outlets, many of which are owned by billionaire Rupert Murdoch.

In recent years, far-right political parties such as Ms Pauline Hanson's One Nation have gained newfound political relevance by pivoting to the issue of Muslim immigration from the Middle East and South Asia.

Dr Mehreen Faruqi, Australia's first female Muslim senator, blamed Ms Hanson and Mr Anning for normalising language used to target Muslims.

"This is not random. This is the consequence of the Islamophobic and racist hate," Dr Faruqi wrote last Friday in a message on Twitter.

↧

Every school must promote tolerance, openness: PM Lee Hsien Loong at Hwa Chong Institution’s 100th Anniversary Dinner

March 22, 2019, 10:05 am

≫ Next: Hard choices need to be made for sustainable healthcare: PM Lee Hsien Loong at the Official Opening of Sengkang Hospital Campus

≪ Previous: New Zealand terror attack: Societies must acknowledge rising Islamophobia, tackle right-wing hate ideology, says Shanmugam

Maintaining multicultural exchanges essential for promoting societal cohesion, integration: PM Lee
He highlights Hwa Chong Institution's efforts to expose its students to different cultures
By Rachel Au-Yong, The Straits Times, 22 Mar 2019

Hwa Chong Institution may be steeped in Chinese history and language, but the school has taken steps to ensure its students are exposed to different cultures, said Prime Minister Lee Hsien Loong.

He underlined the importance of having multicultural exchanges in a speech last evening to some 12,000 alumni, staff and students at the school's 100th anniversary gala dinner, held at its campus in Bukit Timah.

"Maintaining such multicultural exchanges is critical to promoting cohesion and integration in our society," PM Lee said in Mandarin.

Hwa Chong, a Special Assistance Plan (SAP) school, has few non-Chinese students. The school has, however, striven to give students the opportunity to mix with peers of different races and backgrounds through various activities, he noted.

For instance, the school partners ITE College West to organise a joint overseas community involvement programme trip, during which students from both schools work and live together.

Besides Hwa Chong, every school should promote the spirit of openness and tolerance because it helps preserve the foundation of Singapore's multiracial and multicultural society, PM Lee added.

"At the same time, we should also strengthen the teaching of mother tongues, enrich the heritage of our society, and further consolidate our country's multiracial, multicultural national identity."

Speaking in both Mandarin and English, he traced Hwa Chong's history, and said it is very much intertwined with Singapore's.

The school, which started with around 70 students in a small building in Niven Road in the Selegie area, has witnessed and participated in many pivotal events, he said, from World War II to the fight for independence from the British in the 1950s and separation from Malaysia in 1965.

For instance, many Chinese students - including those from Hwa Chong - joined anti-colonial protests after World War II.

On the one hand, they were inspired by a movement happening in the world, he noted. On the other, some felt they had been treated unfairly under the colonial system, and wished to rise up against it.

"In the turbulent 1950s and 1960s, Hwa Chong provided the back-drop for anti-colonial and anti-government struggles, and many students were affected by left-leaning thinking," PM Lee said. "It was a time of turbulence."

Enrolment in Chinese-language schools dwindled in the 1970s, as English schools grew in popularity. Nine SAP schools were thus introduced in 1979 to preserve the traditional Chinese school cultural environment.

Hwa Chong was one of the nine. Today, the school is recognised for its high academic performance and bilingual alumni, PM Lee said.

He added that the school has to make a concerted effort on three fronts to continue thriving as an educational institution.

First, it must uphold high academic achievements, even as it continues to emphasise all-rounded education and the cultivation of character and values.

Second, it has a "special responsibility" as a SAP school to promote Chinese traditional culture, values and heritage, and to help students to master their mother tongue.

"This was the reason Mr Lee Kuan Yew introduced SAP schools in 1979. He wanted to revive the spirit of the old Chinese middle schools," he said, adding these schools had "emphasised character development, seriousness of purpose and the spirit of community".

Third, Hwa Chong students must "understand the context of our society, and their own responsibilities within it", PM Lee said. "You must know how Singapore society works, identify with fellow Singaporeans of all races and religions and feel a responsibility for your fellow citizens.

"You need to feel a calling to participate in community and national affairs, to contribute to the society and system that has nurtured you, and to take on leadership roles to help take Singapore forward."

Concluding in Mandarin, PM Lee noted that Hwa Chong is celebrating its 100th anniversary and Singapore, its bicentennial.

The road ahead is full of trials and tribulations, he said.

But citing the school's motto for continuous improvement, he said the country will continue to flourish if it adopts that same approach.

Hwa Chong Institution celebrates its 100th year
12,000 alumni, staff and students get together for Hwa Chong Institution centenary
By Sue-Ann Tan, The Straits Times, 22 Mar 2019

Spirits were high despite the pouring rain as more than 12,000 alumni, staff and students of Hwa Chong Institution turned out in force to celebrate the school's 100th anniversary yesterday.

The date is also the school's Founders' Day, when it was started as The Chinese High School in 1919.

One of the many alumni who flew back from abroad especially to pay tribute to their alma mater at the centennial dinner was Dr Sim Choon Kiat. The 51-year-old is an associate professor of the sociology of education at Showa Women's University in Tokyo.

"I flew back because it is to return to where it all began for me and to catch up with old friends," he said. "I want to know that they are doing well and are healthy and happy."

Prime Minister Lee Hsien Loong was the guest of honour at the centennial gala dinner, together with Minister for Education Ong Ye Kung, Minister in the Prime Minister's Office Ng Chee Meng and Minister for Culture, Community and Youth Grace Fu.

Hwa Chong Institution, then known as The Chinese High School, began with 70 students in a small building in Niven Road in the Selegie area. Its notable alumni or former board members include businessman and philanthropist Lee Kong Chian and playwright Kuo Pao Kun. Music composer Liang Wern Fook was also an alumnus of Hwa Chong Junior College.

Dr Liang also composed a ballad specially for the centennial.

The centennial celebrations are centred on the message: "To strive ceaselessly for self-improvement; to serve virtuously for communal growth."

Mr Robson Lee, chairman of the board of directors, said: "Singapore is a multicultural and diverse country with various races and religions. The Government has worked hard for many years to provide a harmonious, prosperous and stable society. It has not been easy.

"So to the bicultural students of Hwa Chong, you must remember and be grateful for the support that the Government has provided the school."

He added that students should remember the motivations of their founders and serve Singapore well.

Together with the centennial, the school is also launching the Kuo Chuan Centennial Art Gallery Project. The gallery will house the works of pioneer artists who were Hwa Chong teachers such as Liu Kang, Chen Wen Hsi and Chen Chong Swee.

The artists blended Eastern and Western styles to create a distinctive "Nanyang style" art form, contributing to Singapore's artistic heritage and culture.

Dr Lim Wee Kiak, chairman of the board of governors, said: "It serves our younger generation to appreciate our local arts and heritage.

"As we celebrate... let us remember the lessons from history as they will inform our future legacy."

Hwa Chong's former principal Tooh Fee San, 79, said: "Its flourishing over this century... (is owing to) the collective effort of our board, staff, students, parents, alumni and partners in this journey."

Horticulturist Mak Chin On, 76, graduated more than 50 years ago, and a decade ago, he started preparing plants specially to decorate the school for its centennial celebrations.

"It is my way of giving back," he said.

Book celebrates Hwa Chong's 100-year history
By Rei Kurohi, The Straits Times, 11 Mar 2019

He was Singapore's former president, but Mr Ong Teng Cheong was once also known as a "musketeer".

To be exact, Mr Ong and four classmates at the then Chinese High School (CHS) in the 1950s were referred to as the "Five Musketeers" for standing up to left-wing students and refusing to support their communist cause.

While the quintet would openly defy left-wing students by not taking part in the boycotts or strikes, they would, however, occasionally join in for "good" causes such as helping the victims of floods and fires.

"However, we never supported their communist cause even though we were also anti-British, anti-colonialism, and pro-independence.

"Also - and perhaps more importantly - because we often helped them with their homework, the left-wingers left us alone, and labelled us 'The Five Musketeers'," wrote Mr Ong in private memoirs about his childhood.

This story was revealed in the Hwa Chong Centennial Commemorative Book, which marks the 100th anniversary of Hwa Chong Institution - the product of the 2005 merger of CHS and Hwa Chong Junior College.

Mr Ong Tze Guan, 53, the elder of the former president's two sons, had contributed excerpts from memoirs written by the former president and left behind after his death.

Mr Ong served as Singapore's first elected president from 1993 to 1999 and died aged 66 in 2002.

Mr Ong Tze Guan, who is the chief executive of Singapore-based firm Glowtec Bio, wrote in the submission: "My father's years in CHS were formative ones that had a profound influence on his development.

"The rich and diverse experiences he had in the school helped to shape his world view and mould him as a person of great character."

At a press briefing yesterday, the editorial committee behind the book said the 644-page book containing over 540,000 words is the school's most comprehensive effort to date. It documents the school's history from before World War II to today through the eyes of its alumni, former teachers and principals, and members of the school's board of directors.

Other notable names among the contributors include Singapore Management University School of Law dean Goh Yihan, and the National University of Singapore's provost and senior deputy president, Professor Ho Teck Hua.

The book's 170 submissions by some 200 authors took two years to compile and edit, said Mr Robson Lee, chairman of the school's board of directors.

Besides photographs and personal stories, the book features profiles of notable alumni, accounts of the school's co-curricular activities such as the Chinese drama club, poetry and prose pieces and the authors' aspirations for Hwa Chong's future.

The submissions are mostly in Chinese, but a handful, such as Mr Ong Tze Guan's, are in English.

The book will be available on March 21, the school's Founder's Day, when a celebratory gala dinner will also be held for over 12,000 alumni and other members of the Hwa Chong family.

The public can contact the Hwa Chong Alumni Association after the book's launch to purchase a physical copy, which will cost $60. Sales proceeds will go to the school fund.

The 2.5kg book comes bundled with a collection of the school's badges of various designs through the years. About 1,000 out of 4,500 copies in the initial print run have already been bought by alumni.

Mr Lee said some copies of the book will also be donated to libraries here, and more copies will be printed if there is interest.

The editorial team also plans to launch a free e-book version on the alumni association's website by the end of the year, Mr Lee added.

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Hard choices need to be made for sustainable healthcare: PM Lee Hsien Loong at the Official Opening of Sengkang Hospital Campus

March 26, 2019, 6:44 am

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Healthcare spending rising fast and will go up further, so new ways to fund it must be found
By Rachel Au-Yong, Housing Correspondent, The Sunday Times, 24 Mar 2019

Singapore's healthcare receipts already exceed $9 billion and are rising faster than GDP growth, with a certainty they will go up even further. Eventually, this will become unsustainable, Prime Minister Lee Hsien Loong said yesterday.

In the medium term, Singapore will have to find new ways to fund healthcare spending.

"But at the same time, we have to think hard about what we must spend on, and which drugs and procedures are cost-effective," PM Lee said at the official opening of Singapore's newest hospital, Sengkang General Hospital (SKH), and the companion Sengkang Community Hospital (SKCH), which provides rehabilitation services.

"We have to make hard choices, and I hope we will have the support of Singaporeans in making them," he added.

PM Lee's comments come after the Health Ministry said last August, when SKH opened its doors to the public, that it will take a pause to plan future healthcare needs after the next public general hospital opens in Woodlands in 2022.

Since 2010, the Government has been steadily building more facilities to meet growing demand as the population ages.

The Sengkang integrated campus in the north-eastern part of Singapore will add 1,000 acute hospital beds and 400 community beds when it opens fully. It currently operates about 500 acute and 150 community hospital beds. More beds will be opened progressively to meet rising patient demand.

Yesterday, PM Lee noted that Singapore spends less on healthcare than most other developed countries, yet has better outcomes.

One reason for the lower expenditure is the relatively younger population, "which has only recently begun ageing".

"But the main reason is because we have structured our system properly, and built in the right incentives to guard against over-consumption of healthcare," he said.

This is not easy to do because it is difficult to tell people that some treatments they want are not necessary or cost-effective, he added.

"Yet we have to watch how heavily the Government subsidises healthcare," he said, noting that in countries with high health subsidies, doctors tend to prescribe more unnecessary and expensive treatments.

PM Lee also spoke about how the healthcare system must adapt to Singaporeans who are living longer and have to grapple with chronic diseases such as diabetes and hypertension. They also live in smaller families, with a larger proportion of family members being seniors.

One way it is doing this is by shifting to a more patient-centric, multi-disciplinary approach, he said.

That is why SKH and SKCH are located in the same campus and operate as a single entity, just as the authorities have done with Ng Teng Fong General Hospital and Jurong Community Hospital.

PM Lee noted that SKH patients can receive a wide range of medical services - they can be treated at SKH and smoothly transferred to the community hospital, with staff from both hospitals working together as one team. The administrative procedure for such a transfer has also been simplified.

Patients also do not need to travel so far to get specialist services, with the National Heart Centre, Singapore National Eye Centre and the National Cancer Centre operating satellite clinics at the hospital.

PM Lee also stressed the importance of primary care and noted how SKH is partnering almost 30 general practitioners in Sengkang and Punggol to provide chronic disease management, among others.

Even as these measures are rolled out, he reminded people that the "best thing we can do for ourselves is to take care of our own health".

While accidents or injuries cannot be helped, many diseases are preventable if people watch their diet and lead healthy lifestyles, he said.

SKH chief executive Christopher Cheng said the hospital set two goals when it began operations last year: ensuring that its facilities and systems run smoothly and safely, and building a good health network in the community.

"This is a collective effort," he said.

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Old Guard leader Ong Pang Boon honoured for his contributions to Singapore on his 90th birthday

March 26, 2019, 7:21 am

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PM Lee Hsien Loong honours pioneer leader who helped to lay basis for nation's survival, sovereignty
By Timothy Goh, The Straits Times, 25 Mar 2019

In order to signal that national defence was a priority back in 1965, Mr Ong Pang Boon, together with fellow ministers Jek Yeun Thong and Othman Wok, led by example and volunteered to serve in the People's Defence Force.

The following year, the trio marched proudly in Singapore's first National Day Parade.

This anecdote was among many shared by Prime Minister Lee Hsien Loong at Mr Ong's 90th birthday celebrations on Saturday. He was born on March 28, 1929, in Kuala Lumpur.

A hundred guests, including People's Action Party (PAP) activists, former MPs as well as friends of Mr Ong, were present at Parliament House for the occasion.

They included Emeritus Senior Minister Goh Chok Tong and Fengshan MP Cheryl Chan. She is the niece of Mr Ong's late wife, former MP Chan Choy Siong, who died in 1981.

PM Lee, who has known Mr Ong for more than 60 years, recounted that Mr Ong volunteered to be the election agent for founding prime minister Lee Kuan Yew in the 1955 Legislative Assembly elections.

The year after, Mr Lee asked Mr Ong to become organising secretary of the PAP. At the time, Mr Ong had gone back to his home town in Kuala Lumpur and had a good job that paid "a princely sum" of $700, with a possible training opportunity in England.

Accepting Mr Lee's offer would have meant taking a pay cut for Mr Ong, as Mr Lee could afford to pay him only $450.

However, PM Lee said, like the other pioneer leaders, Mr Ong had witnessed the brutality of the Japanese Occupation and the chaos of the post-war years.

He firmly believed in the PAP's vision of an independent, multiracial Malaya, and a fair and just society where Malayans of all races would be masters of their own destiny. So, he accepted Mr Lee's offer.

As the PAP's first organising secretary, Mr Ong was "much more than an administrator", said PM Lee. He also played a crucial role bridging the non-communist PAP leaders, who were mostly English educated, with the Chinese-speaking masses, who had become the voting majority from the 1955 elections.

As one of the few senior PAP leaders who were effectively multilingual, Mr Ong used his fluent Mandarin, Hokkien and Cantonese to rally and win the hearts and minds of voters and cultivate strong ties with the branches, the grassroots and community leaders.

This contributed much to the PAP's victory in the 1959 Legislative Assembly elections, which enabled the PAP to form the government for the first time.

PM Lee noted that the elder Mr Lee had written in his memoirs that without Mr Ong, he (Mr Lee) would have been a "deaf and dumb secretary-general".

The quiet and soft-spoken Mr Ong also played an important role during the lead-up to Singapore's merger with Malaya, said PM Lee.

His strong connections to the Chinese-speaking ground and sharp assessments of who the party loyalists were proved critical in forming the core of an effective counter to the pro-communists, and in the battle for merger.

PM Lee added that although Singapore's separation from Malaysia came as a huge shock to Mr Ong, and though he was born in Malaysia, had family there and had strong emotional ties with his home state of Selangor, he did not look back after the separation agreement was signed.

Instead, said PM Lee, Mr Ong "poured heart and soul into making sure that newly independent Singapore survived".

Aside from volunteering to serve in the newly formed People's Defence Force, Mr Ong became minister of home affairs at the age of 30 in 1959, and also held key portfolios such as education, labour and environment.

PM Lee said that as education minister, Mr Ong had to face the "particularly delicate task" of moving students towards bilingualism.

If not for the fact that Mr Ong could speak many languages and dialects, and was well respected by the Chinese-speaking community, this move would have faced much greater resistance.

Mr Ong also came up with the idea of a loyalty pledge to be taken by students, to inculcate national consciousness and patriotism. This was later developed into the National Pledge which Singaporeans know today, and which Mr Ong produced the final Chinese version of.

Calling Mr Ong "one of the Old Guard who laid the basis for Singapore's survival, sovereignty and eventual success", PM Lee said Mr Ong's contributions, and those of the first generation, will never be forgotten.

"We owe them an incalculable debt of gratitude. On behalf of all of us, Mr Ong, thank you for your lifetime of dedicated service to the PAP, and for your many illustrious contributions to Singapore," he said.

PM Lee added that he and his colleagues had done their best to build on the foundations laid by the founding generation, live up to their ideals and improve on what they had inherited.

"Soon, we will be handing over the baton to the next generation.

"And I am confident they, too, know how precious a legacy they will be taking charge of, how heavy their responsibility is, and how carefully they must steward the precious treasure that is Singapore," he concluded.

Thanking PM Lee for his remarks, Mr Ong said: "It is the environment that shapes the man. It has been my good fortune to be at the right place at the right time."

He added that he had accepted Mr Lee's job offer in 1956 as he believed in the PAP's leadership and its vision for the country.

He also recounted how the PAP's first generation of members came from diverse backgrounds, but were united with the common objective of breaking free from British colonialism and creating an independent and prosperous Malaya and Singapore.

Mr Ong said: "I believe that leadership renewal is crucial to the success of all organisations, including political parties.

"But I also believe that, like the orderly waves of the Yangtze River, the renewal process must be well paced and sensitively executed so as to avoid unnecessary unhappiness among the older members."

He added that it had been a privilege to witness Singapore transform from a Third World nation to a First World one.

"What gives me greatest personal satisfaction is that I have contributed, in some small ways, to this transformation," he said.

↧

NEA's pay-as-you-throw rubbish idea triggers memes and serious debate

March 26, 2019, 9:21 am

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Residents worry about hike in waste disposal fee and indiscriminate throwing of rubbish
By Cheryl Teh, The Straits Times, 26 Mar 2019

One photo showed the white-and-blue Electronic Road Pricing (ERP) gantry photoshopped onto a rubbish chute with the caption "Electronic Rubbish Pricing".

Another showed a rubbish chute with a coin-slot, labelled "insert coin to dump rubbish", next to it.

These memes have surfaced on social media following a Straits Times report on March 15 over a "pay-as-you-throw" pilot by the National Environment Agency (NEA) later this year, to make households pay according to the garbage they throw.

Besides the lighthearted memes, the report has triggered a serious debate over the feasibility of implementing such a scheme here and the necessity of exploring this idea or even others to monitor and limit rubbish dumped by households.

Speaking at a major sustainability conference in Kenya's Nairobi city on March 12, Mr Cheang Kok Chung, director of NEA's department for environmental protection policy and international relations, had revealed plans for a trial of the initiative.

He said the pilot could involve bin chutes that use radio frequency identification (RFID) technology to track how much waste a household produces.

Though the NEA has said it will not be implementing the initiative immediately, it has already drawn more criticism than praise from Singaporeans.

A poll of 100 ST readers found that 69 of them opposed the idea.

Several HDB residents told The Straits Times that they fear the plan might result in them having to pay much more for waste disposal, or in people throwing rubbish indiscriminately to avoid paying the fee.

But others think pay-as-you-throw could be a good idea, if more thought is put into how the plan might be carried out.

Madam Janice Seah, 54, an administrative assistant, is one of those who expects more harm than good to come out of the pay-as-you-throw plan.

"I think having RFID tags to track waste is okay if it's just for monitoring. But I'm afraid people will try to avoid paying and leave their rubbish next to the communal chute," said Madam Seah, who lives in an HDB flat in Sengkang.

"Our corridors will end up being smelly and attract cockroaches, rats and other pests. The waste disposal people will then have to come and pick up trash two or three times a day."

Stay-at-home mother Koh Liting, 32, is worried that having to pay to use the garbage chute would result in extra charges for garbage disposal. Each HDB household now pays a fixed price of $8.25 for garbage disposal.

Ms Koh is concerned that garbage chutes might become "ERPs for trash bags". She hopes that the fee of $8.25 will remain as the upper limit for garbage disposal under the scheme.

"I don't want my garbage bill to become like a cellphone bill. Garbage disposal, like water and electricity, is part of our basic utilities, not like extra mobile data, and we shouldn't be charged just for throwing rubbish," Ms Koh added.

But others said there are some upsides to the pay-as-you-throw idea.

Ms Irene Tan, 41, an accountant at a construction company, said the scheme will encourage people to go green and also reduce the amount of stuff they throw away.

Ms Tan, who lives alone, said she disposes only two plastic bags of rubbish a week. She estimated that if she were charged 50 cents per chute-load, she would pay around $6 a month, instead of the $8.25 she is paying now.

"I try to recycle and being able to save some cash along the way will encourage me to re-use my items more," Ms Tan added.

Meanwhile, some people agree that the pay-as-you-throw initiative might help to reduce household waste and gave suggestions to ensure the pilot is effective.

Mr Cole Lee, 23, a second-year undergraduate, said he hopes to see some cash incentives being given out when the initiative is rolled out.

"The four members of my family live in a two-room flat and my father is the sole breadwinner," Mr Lee said.

"The little things add up, so things like monthly rebates for throwing fewer things, or even a six-month free trial for the pay-as-you-throw system, would help us out."

MPs have also weighed in about the viability of the pay-as-you-throw project.

"In the light of our only landfill filling up faster than expected, we need to reduce the amount of waste we generate," said Ms Lee Bee Wah, an MP for Nee Soon GRC, referring to the Semakau landfill which was envisaged to last till 2046 when it first opened in 1999, but is now expected to run out of space by 2035.

She added that the focus should first be on education and changing mindsets regarding waste management.

"Reducing waste should come from the heart. Otherwise, if we only focus on the fees, those who can afford the fees may not be motivated to reduce their waste significantly," Ms Lee said.

Mr Gan Thiam Poh, an MP for Ang Mo Kio GRC, said the initiative, if rolled out, may spur locals to find ways to convert and re-use their items. "The bigger concern beyond pay-as-you-throw is to keep Singapore clean and environmentally friendly, and to do our part on the world stage to help save the environment.

"Saving the planet and fighting climate change is everyone's responsibility, rich or poor," he added.

Most Singaporeans polled by ST say no to initiative
By Cheryl Teh, The Straits Times, 26 Mar 2019

Over the past week, The Straits Times asked 100 Singaporeans between the ages of 16 and 75 for their opinions on the National Environment Agency's (NEA) "pay-as-you-throw" initiative to reduce household waste.

Sixty-nine of them said they did not support the initiative, 22 took a neutral stance and nine said they would support it.

But 30 people out of the 69 against the pay-as-you-throw idea said they would reconsider their stand. Of this group, 18 said they would consider changing their minds if the NEA confirmed they would not face exorbitant increases in waste-disposal charges. The remaining 12 in this group said they would reconsider if NEA guaranteed significant and permanent savings per household in the long run.

The nine who supported the idea cited two reasons. Six of them said they would support the plan if it helped them save costs in the long run.

Three would support it if it helped to reduce waste and, by extension, minimise the negative impact of waste on the environment.

'Pay-as-you-throw' system to limit household waste?
By Cheryl Teh, The Straits Times, 15 Mar 2019

A National Environment Agency (NEA) official has raised the possibility that Singapore residents may in future be asked to "pay as you throw", as part of efforts to monitor and limit rubbish dumped by households.

This could involve bin chutes that use radio frequency identification (RFID) technology to track how much waste any one household produces, he said at a major sustainability conference on Tuesday.

"We are working on a trial to track the number of times a household opens a rubbish chute hatch, with each opening accepting only a fixed volume of waste," said Mr Cheang Kok Chung, director of the NEA's department for environmental protection policy and international relations.

"(There is a) glaring lack of a 'pay as you throw' element in the (waste disposal) fee," Mr Cheang said, adding that Singapore's ubiquitous rubbish chutes made it very difficult to implement a "pay as you throw" system using prepaid waste bags.

He was speaking at a presentation during the 2019 Sustainable Innovation Expo in Nairobi, Kenya. The Expo is being held on the sidelines of the fourth United Nations Environment Assembly meeting.

Each HDB household currently pays $8.25 a month for waste regardless of the amount thrown away. With this new scheme, some might end up paying less.

Said Mr Cheang: "Hopefully (the trial) works and the next time we can report that we are a bit closer to the 'user-pay principle' tax."

If there are monitoring systems like RFID tags, people might be motivated to throw less rubbish indiscriminately, which would mean less rubbish landing up in Semakau, Singapore's only landfill.

According to the latest figures, about 200,000 tonnes of solid waste and all incineration ash are sent to the landfill annually.

At this rate, Semakau will be filled to the brim by 2035. It was envisaged earlier that the landfill, when it first opened in 1999, would last until 2046.

Singapore currently has the technology to use RFID tags on bins.

According to reports in 2016, recycling collection crews could scan RFID tags on recycling bins upon collection for recyclables to be tracked in a system.

It is not impossible to implement such a project.

The "pay as you throw" principle has worked in other countries.

In South Korea, for example, households can buy designated bags to dispose of their trash, or take it to centralised RFID food waste and rubbish bins.

There, the trash will be weighed and the household billed accordingly.

The NEA told The Straits Times yesterday that there are currently no plans to introduce pay-as-you-throw RFID waste disposal systems in Singapore.

"Building on lessons from past trials and other countries' experience, the National Environment Agency is constantly exploring ways to incentivise households to reduce the amount of waste disposed of," an NEA spokesman said.

"There is no current plan to implement a pay-as-you-throw RFID waste disposal system," the spokesman added.

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URA Draft Master Plan 2019: More homes planned in city centre to inject vibrancy

March 29, 2019, 7:05 am

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Over 20,000 new homes likely in Central Area; CBD Incentive Scheme to convert ageing offices
By Rachel Au-Yong, Housing Correspondent, The Straits Times, 28 Mar 2019

More than 20,000 homes could be built in the city centre, which the Central Business District (CBD) is part of, so that it does not become a ghost town at night.

This is more than a third of the current 50,000 flats in the Central Area.

On top of this, the Government will give developers a higher gross plot ratio - a measure of how intensely a land parcel can be developed - to nudge developers to convert ageing offices into hotels and homes.

Announcing the CBD Incentive Scheme at the launch of the Draft Master Plan yesterday, Minister for National Development Lawrence Wong noted that the district is largely mono-use today.

"We want to introduce a broader mix of uses so that the CBD is not only a place to work, but also a vibrant place to live and play," he said.

Other highlights include a new 50km Greater Rustic Coast along the northern coast and three-dimensional district-level underground plans to help building owners and developers plan for the future.

The CBD Incentive Scheme, which will kick in when the Master Plan is gazetted later this year, will apply to the Anson Road, Cecil Street, Shenton Way, Robinson Road and Tanjong Pagar areas. There are currently over 3,000 dwelling units there.

Predominantly office buildings, which have been built or significantly refurbished at least 20 years ago, are eligible.

They will get a plot ratio increase of between 25 per cent and 30 per cent, depending on their location and land use, which could range from a hotel to a condominium with some shops on the ground floor.

This may help inject new life into this major business node, and see streets filled with hip restaurants, bars and boutique gyms, which have emerged in fringe CBD areas like Boat Quay, Circular Road and Telok Ayer.

The CBD Incentive Scheme, as well as another to rejuvenate ageing commercial buildings islandwide, will replace the Bonus Plot Ratio Scheme introduced in 1989.

The Draft Master Plan guides Singapore's development over the next 10 to 15 years and is reviewed every five years.

The authorities also plan to introduce new homes in Marina Bay and Marina South, for example, through the Government Land Sales programme. But the breakdown on the number of housing units and development timeframe for the various areas will be subject to market conditions, said an Urban Redevelopment Authority (URA) spokesman.

The plan would "bring more homes to where jobs are, and cut down on commuting times for workers to and from work", the URA said in an earlier statement.

Housing plans for other neighbourhoods in the Central Area - like Rochor, Farrer Park, which will have a sporting emphasis, or Keppel, which will feature waterfront housing - are still under detailed study.

Outside of the Central Area, there will be 42,000 new homes in Tengah, 4,000 in Kampong Bugis and 10,000 in Bayshore near the East Coast in the near term, said the URA spokesman.

Also, public housing in Dakota Crescent will be planned around six preserved Singapore Improvement Trust (SIT) blocks and an iconic playground from the 1950s.

As for the Greater Southern Waterfront and Paya Lebar Air Base, they will be developed only in the longer term, so "we have not embarked on detailed planning for these areas", she added.

Other neighbourhoods that will see new homes include Tanglin Halt in Queenstown, and Springleaf in Yio Chu Kang. Details will come later.

The Draft Master Plan 2019 will be exhibited at the URA Centre until May 24. Members of the public can send their feedback on the draft plan to the URA.

Underground plans for three districts revealed
They will help nation build deeper and wider, freeing up more land for people-centric uses
By Derek Wong, The Straits Times, 28 Mar 2019

District-level underground plans, released for the first time under the Urban Redevelopment Authority's (URA) Draft Master Plan, will help the nation build deeper and wider, freeing up more surface land for people-centric uses.

Three-dimensional subterranean maps of Marina Bay, Jurong Innovation District and Punggol Digital District were rolled out at the launch of the Draft Master Plan yesterday at the URA Centre in Maxwell Road.

This marks the first phase of what the authorities hope will eventually be a seamless underground map of the country.

The maps show specific locations of bus and rail networks, carparks, pedestrian links, roads, logistics use and utilities, up to a depth of 8m, 15m and 25m for Jurong, Punggol and Marina Bay respectively.

URA chief planner Hwang Yu-Ning told the media in an earlier briefing on Monday that the underground plans are part of a strategy to create spaces for the future as well as build capacity for growth.

She pointed to Singapore's first 230kV underground substation as an example of optimising land use by saving ground space for higher-value purposes.

Located next to Labrador Park MRT station, the substation will be integrated with a commercial building above, freeing up 3ha of land above ground for development.

There are several underground 66kV substations that are already operating in Singapore.

Architect Jason Pomeroy, who is behind the redesign of the Kallang area in the Master Plan, called it a "huge benefit" to have facilities and infrastructure underground without compromising the usability of space on the ground. However, he added that one also has to be conscious of the cost of digging as well.

The maps are also meant to help facilitate planning so that subterranean space can be used efficiently and effectively by building owners and developers.

National Development Minister Lawrence Wong said in a speech at the launch yesterday that the underground plans "will help coordinate planning of infrastructure, storage and utilities".

Veteran urban planner Steven Choo said that with such plans, developers can be more certain about the development potential of the land.

"They will also be freed from constraints on their land while benefiting from better connectivity and efficiency of district-level services that the plans might offer," said Dr Choo, who is chairman of real estate advisory firm VestAsia Group.

National University of Singapore civil engineering professor Yong Kwet Yew supports the push to go underground and highlighted how other cities, such as Montreal and Helsinki, have successfully created extensive underground networks.

"The best (thing to do) is to actually put all the transport links and facilities underground. Major cities in the world are already doing it.

"I think we should do the same, especially when traffic causes a noisy ambience for surrounding neighbourhoods," he said.

Asked about the challenges of going underground, Prof Yong cited costs and societal acceptance.

"But I think the impact is generally very minimal," he said. He added that technical constraints can be solved through research.

There are also plans to build deeper. Besides existing caverns such as Jurong Rock Caverns - an underground storage facility for liquid hydrocarbon that goes more than 100m deep - there are ongoing cavern studies by statutory boards JTC and PUB which will help identify potential cavern spaces for industrial, utility and storage use.

Jurong Rock Caverns and an ammunition facility in Mandai have saved Singapore 360ha of land, about the size of Marina Bay.

The Government has said earlier that there is no intention to locate residential homes underground.

Other key highlights
By Derek Wong, The Straits Times, 28 Mar 2019

The Draft Master Plan launched yesterday by the Urban Redevelopment Authority (URA) featured plans to introduce homes to new areas, underground maps as well as schemes to revitalise ageing buildings.

Here are some other highlights from the plan, which may be gazetted later this year.

ONE-STOP NEIGHBOURHOOD HUBS

Future residential precincts will be laid out in such a way that there is easy access to a wide range of public spaces and amenities.

Integrated hubs such as Bukit Canberra in Sembawang and Punggol Town Hub will make it easier for residents to shop, dine and engage in family activities under one roof.

GREATER SOUTHERN WATERFRONT

The Pasir Panjang Power District, which will be connected to the rest of the Greater Southern Waterfront stretching from Pasir Panjang to Marina East, will become a lifestyle and heritage destination.

Government agencies are exploring strategies to realise this, such as the "adaptive reuse" of the former power station buildings and opening up the grounds for public access.

URA and the Singapore Land Authority will be launching a competition next month for the public to contribute ideas on how the precinct can be transformed.

TRANSFORMING PAYA LEBAR AIR BASE

Work on the area will start after 2030, when the air base is vacated, freeing up 800ha of land.

The site will be transformed into a new town with jobs and amenities.

Some of the preliminary ideas to transform the area include:

• Retaining the area's rich aviation heritage by repurposing the former airport buildings and parts of the runway;

• Creating a network of parks and open spaces with leisure options;

• Building an integrated mixed-use neighbourhood for future residents.

Plans to transform Orchard Road, create more buzz in CBD
By Derek Wong, The Straits Times, 28 Mar 2019

Shoppers in Orchard Road may one day find themselves in a lush urban corridor that connects to the Singapore Botanic Gardens and Fort Canning Park, based on plans to rejuvenate the central area.

The Urban Redevelopment Authority's (URA) Draft Master Plan, released yesterday, also includes other initiatives to revitalise the central area, such as tapping vacant state properties in the Central Business District (CBD) for short-term use to bring about greater footfall.

The plan also includes the introduction of two schemes to incentivise developers to convert ageing developments to other purposes, such as hotels and residential use.

"Increased global competition, changing trends and lifestyle aspirations mean that our city centre needs to maintain its competitive edge and dynamism through continued growth and rejuvenation," said the URA in a statement.

Orchard Road will be divided into four sub-precincts, each offering a different experience. The 2.4km stretch may also see a car-free portion to connect green spaces, as well as new retail concepts, attractions, entertainment options and events.

A solution to generate more vibrancy in the CBD is to tap vacant state properties, said URA chief planner Hwang Yu-Ning to the media in an earlier briefing on Monday.

These buildings can be used to test-bed new ideas and events. Some of these vacant buildings are in Maxwell Road and Sultan Gate.

The CBD Incentive Scheme will give developers a higher gross plot ratio - the permissible development intensity of a land parcel - to encourage them to turn older offices into mixed-use buildings. The scheme will kick in when the Master Plan is gazetted, which is expected to be later this year.

Under the Strategic Development Incentive (SDI) Scheme, which took effect yesterday, developments islandwide may be able to increase their gross plot ratio or attain flexibility on other development controls if they have innovative proposals that transform the precinct. Such ideas include the provision of high-quality public spaces, car-lite measures and conservation efforts, for example.

To qualify, the buildings must have a minimum age of 20 years from the date of the last temporary occupation permit. Submissions will be assessed on a case-by-case basis.

Mr Jason Leow, president (Asia and retail) of CapitaLand Group, which owns and manages a network of properties in the central area, called the Draft Master Plan "a positive move in promoting ground-up ownership of and private participation in the urban rejuvenation of Singapore's built environment".

Mr Nicholas Mak, executive director of property consultancy ZACD Group, said owners of ageing retail malls outside the central area may be attracted to the SDI Scheme, as these developments face dwindling footfall due to changing consumer habits amid a rise in e-commerce.

"These owners are likely to welcome incentives which encourage redevelopment and possible conversion of uses to inject more life and vibrancy in the area," he said.

Ms Christine Li, senior director and head of research at property firm Cushman & Wakefield, said the CBD Incentive Scheme may indirectly cause CBD office rents to rise.

"Given that there could be a wave of redevelopments into residential and hotel segments to tap the CBD Incentive Scheme, office supply in the medium term could be even tighter if there are more conversions of office developments into residences and hotels," she said.

Singapore to have 1,000ha more parks and park connectors
By Rachel Au-Yong, Housing Correspondent, The Straits Times, 28 Mar 2019

In 15 years' time, nine in 10 Singaporeans will be just a 10-minute walk away from a park.

This enhanced City in a Garden vision was unveiled yesterday in the Draft Master Plan, which shows 1,000ha more parks and park connectors across the island. The expansion is an almost 13 per cent increase over the existing 7,800ha.

This is part of a "conscious and deliberate effort" to protect natural spaces and increase ecological resilience, said Minister for National Development Lawrence Wong at the launch of the Draft Master Plan.

"From time to time, we hear concerns that Singapore is developing too rapidly, that we are losing greenery and heritage spaces," he said.

"We have to change and reinvent our city. But Singapore is also our home, and we want it to be a home that's beautiful and green, with familiar spaces that we can connect and identify with."

Recently, nature groups have clashed with the authorities over several developments, the latest of which was over the Housing Board's findings of an environmental study on the clearance of secondary forests for public housing in Tengah.

Last month, the authorities said they intend to make public such findings unless there are specific reasons, like security considerations, to keep them confidential.

Mr Wong yesterday elaborated on the nature of the planned green spaces, saying the goal is to have more than 400km of park connectors in the next 15 years, up from about 300km now.

There will also be major green recreational corridors, including the 36km Coast to Coast trail linking Jurong Lake Gardens in the west to Coney Island Park in the north-east. The trail will be officially launched on Saturday.

Another major green stretch is the 24km Rail Corridor running from Woodlands to Tanjong Pagar. About one million people will live within 1km of it.

Work to enhance a central 4km stretch between Hillview Avenue and Bukit Timah Railway Station is ongoing. The authorities hope that when the entire corridor is fully linked by 2021, it will rejuvenate nearby neighbourhoods.

Some areas in the vicinity of the railway will be conserved for their heritage, such as Bukit Timah Railway Station and the Station Master's Quarters. Both buildings will be refurbished with suitable amenities.

Nearby, the former Bukit Timah Fire Station and Beauty World will be transformed into gateways for the surrounding nature and heritage attractions. The fire station building will have a visitor centre and become a central point for the network of attractions in the area.

At Beauty World, there will be street-level activities and landscaping to improve the walking experience from the shopping mall to the Rail Corridor. An upcoming Bukit Timah Community Centre, with a market and hawker centre, will add to the buzz.

Another major recreational corridor is the Round Island Route, a 150km ring-like park connector that will be progressively completed by 2035.

Part of the route comprises the Greater Rustic Coast, a 50km belt of parks, beaches and nature attractions that stretches from Lim Chu Kang to Changi.

Some of the impending projects there include Mandai Mangrove and Mudflat, which will be enhanced as a nature park in mid-2022, and the development of a new park in Hampstead Gardens.

The Urban Redevelopment Authority is also exploring recreational options in Kranji, such as whether Singapore Racecourse can be turned into a family-friendly and communal spot.

Related
Draft Master Plan 2019 - Proposals for an Inclusive, Sustainable and Resilient City -27 Mar 2019

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