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No place for effigy burning

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Four reasons why such a protest is not the S'pore way of doing things
By Toh Yong Chuan, The Straits Times, 8 Feb 2014

TRANSPORT Minister Lui Tuck Yew recently came close to becoming perhaps the first Cabinet minister in Singapore's history to have his effigy burned in a public protest.


The police stepped in and the effigy was doused with water instead of being torched.

The water may have lowered the temperature of simmering public frustrations among some over the fare hike, but the incident raises a burning question: Does effigy burning as a form of public protest have a place here?

Although alien to Singapore, burning effigies in public protests is not uncommon elsewhere. Just five months ago, the Miss World pageant was moved from Jakarta to Bali after hardliners staged street protests in the Indonesian capital and burned effigies of the pageant organisers.

Prime Minister Lee Hsien Loong came close to having his effigy burned in Thailand in March 2006. Thai protesters picketed outside the Singapore Embassy demanding that Temasek Holdings abandon its acquisition of Shin Corp. They burned photos of Mr Lee and his wife, Ms Ho Ching, who is Temasek chief. An effigy of the Merlion was set on fire.

The exact origins of effigy burning are unclear, although it seems to have its roots in witchcraft and black magic. Effigies are life-size models of people that purposely make them look ugly.

In a Parliament sitting on Nov 16, 1961, then Prime Minister Lee Kuan Yew described effigy burning as an act that "symbolically burns and beats the person to death, hoping, by the process of pinpricking the idol and black magic, that some harm would befall the person some thousands of miles away".

Mr Lee was answering Mr David Marshall's question on whether Singapore would sever trade ties with Portugal to protest against the country's war atrocities in Angola. He was also ambivalent towards effigy burning, describing it as "witchcraft methods".

Some have argued online, after the Hong Lim Park protest, that effigy burning is not inconsistent with some aspects of local culture and religious practices.

They are not wrong. Paper models of servants, houses and cars are commonly burned as offerings during the Chinese Hungry Ghost month. There is also the superstitious Chinese practice of da xiao ren, or beating evil people, where a person uses slippers or shoes to beat a paper effigy of a rival before burning it.

Hindus celebrate Dussehra, a festival before Deepavali, where the mythical 10-headed king Ravana is burned in effigy signifying the victory of good over evil.

Still, these cultural and religious practices are different from the burning of effigies in public protests. They are neither violent nor do they stoke public anger.

There are at least four reasons why there is no place for effigy burning as a form of public protest here.

One, it is plainly dangerous to set fire to objects in public.

When rules were relaxed in 2008 to allow outdoor protests at Hong Lim Park, the intention was always for such demonstrations to be peaceful and safe. Public safety should not be tossed out of the window just because outdoor protests are allowed.

Two, even if protest organisers can argue that effigies can be burned safely, say campfire style, where does the burning stop?

If effigies can be burned, why not also have a bonfire to burn textbooks to protest against the education system?

In fact, why stop at textbooks? It was less than two years ago when a controversial US pastor burned copies of the Quran, stoking anger worldwide.

Three, the burning of an effigy directs attention to a person, not the underlying policy. And policies are far more than just one person, even if he is the minister.

I am not a big fan of some of our transport policies - from the ERP rates that refuse to come down to the MRT system that keeps grinding to a halt.

But surely Mr Lui cannot be expected to bear the full brunt of our unhappiness. He is a convenient target, nothing more. Burning his effigy may make the protesters feel somewhat better, but it is not going to improve public transport policies.

Member of Parliament Seng Han Thong suffered serious burns in 2009 when a mentally unstable former cab driver set him on fire. It is unclear whether the assailant was unhappy with taxi policies and vented it on the taxi association chief.

Indeed, Mr Seng was punched in 2006 by another former cabby who had lost his taxi licence.

Singapore Management University law professor Eugene Tan says it stirs up "emotions rather than trying to get any substantive point across or propose alternative solutions. Let's deal with the issues, not personalities".

Four, the burning of effigies incites hatred and violence. There is no place for hatred and violence in any civil society.

Mr Lim Biow Chuan, an MP, describes effigy burning as "not the Singapore way of doing things".

I agree.

Former Nominated MP Siew Kum Hong, a lawyer with a known liberal bent, says that effigy burning "always has a place on the spectrum of lawful free expression" and "there is nothing inherently unlawful about it". Even so, he acknowledges that it would require "fairly extreme circumstances" for the public to support effigy burning.

Singapore is not at the state of extreme circumstances yet.

There is simmering public unhappiness over policies such as transport and housing, which the Government is working to fix.

Some policies require tweaking and others overhauling, but they are not broken.

I was glad that the protest organiser switched tactics and doused the effigy with water instead. But consider this: What next? Trampling on the effigy? Punching it? Where then would we draw the line?

I may change my mind about burning, dousing, trampling or punching effigies if there is rampant corruption or policy failures.

For now, I am sitting it out, because the system is far from broken and there is no need for such extreme acts. Extremism will only break the system, not mend it.



Lee Bee Wah: Grassroots MP doesn't take 'no' for an answer

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Nee Soon GRC MP Lee Bee Wah, 53, has probably managed to get more concrete things done - not just in her own ward but nationally - than any other backbencher. She tells Rachel Chang why, to her, "no" does not mean no.
The Straits Times, 8 Feb 2014


You're a tenacious fighter for infrastructural improvements to Nee Soon South, your ward. What were the sweetest victories?

When I got them to build a lift at the overhead bridge (at Khatib MRT station), and now they're rolling them out nationwide.

I (first) brought it up in 2008, during the Committee of Supply debate in Parliament. (Former Second) Minister (for Transport and Finance) Lim Hwee Hua told me, if your resident cannot go up the overhead bridge, the resident can walk to the traffic light junction - it's 32m.

I SMSed my CC (community club) staff: "Go and measure now! I know it's not 32m!" Parliament adjourned for a tea break. By the time it resumed, my CC guy came back with the measurement.

I said, "Minister, sorry, it's 136m. I believe LTA (Land Transport Authority) measured from the nearest distance across the road. But residents don't walk across just that. Have to turn right, walk along the road, cross six lanes, walk back."

I spoke four times in Parliament about it.

Finally, in 2011, they said, okay, we are piloting it at six locations, and Khatib MRT station was one. But then, even after they approved that, they found that there were big cables and a water pipe underneath (the place where we wanted to build the lift).

And PUB (the national water agency) said, we don't allow any structure to sit on the water pipes and cables. I told the PUB guy, I'm sure there is a solution. We went a few rounds, eventually they agreed. After that, they said, okay, your Khatib one is the most difficult one. After we solved the Khatib one, we can do it all!


It seems your training as an engineer (Ms Lee was a civil engineer and a principal partner of her own engineering consultancy firm until she sold it last year) gives you an edge in dealing with government agencies on infrastructure.

Yes. Another example is that previously, four-storey blocks didn't get to have their lifts upgraded. Because in the programme, the benefit to each household unit must be a certain amount. So since four-storey blocks have fewer units, they said it busts the cap. The cost of installing the lift is too high.

I went to HDB's deputy chief executive. I said, there are not so many units, so you don't have to put in such a big lift. I just need a lift good enough for a wheelchair and two persons. A mini-lift (that is less expensive).

I said, I'm an engineer. If you need my expertise, I'm more than willing to contribute. I was joking lah. So, after some time he came back and said "yes". So those seven blocks in Nee Soon South that are four-storeys tall - they did it. And now, they've rolled that out to all four-storey blocks in Singapore.


How come the engineers the Government hires can't come up with these solutions on their own?

A lot of people think, "Okay, that's policy.""No", they take as no. For me, No cannot be No!

I thought, elderly residents here also need a lift, even though it's four storeys.

There are 110 blocks in Nee Soon South, and only seven are four-storey ones. They are thinking from the angle of what the majority needs. But for me, every resident's needs are important.

I'm the eldest in my family. Whenever my brothers and sisters had problems when we were young, they would run to me. All this while, I have been the problem solver. This is coupled with my engineering training, which is also problem-solving.

And I enjoy solving problems for my residents. It's very rewarding for me to see their smiling faces.


What have you not been able to solve?

I feel very sad when residents come and share with me, for example, about family breakdown.

Sometimes, the marriage is beyond repair. But I can help the wife get a job, so she can stand on her own.


Do you have to step on the toes of government officials to get things done?

Whenever HDB, NParks (National Parks Board) or PUB staff get posted to Nee Soon South, I say, "Give me your mobile number! And make sure it's on because I can call you whenever..."

The agencies find it good training ground for their officers!

One LTA officer told me, "My CEO (chief executive officer) said, 'Any e-mail from Bee Wah, better reply within three days.'"

I work layer by layer. I go to the officers first. If they cannot solve the problem, I go to the director. If they cannot solve, I go to the CEO. If the CEO cannot solve, I go to the minister.


Do the government servants or ministers feel that you can be unreasonable with your demands?

They reject it not because the demand is unreasonable, but because of funding reasons or because the policy at the time didn't cater to that.

When something registers in my mind, I will find the opportunity to do it.

There's a river at Sungei Seletar. Residents said, no footpath. I asked for one. (But) it's MINDEF (Ministry of Defence) land. MINDEF doesn't want people to walk there, so cannot put in a footpath.

Then one day, it flooded. I told PUB, "You must deepen the river right? Take this opportunity, put in a footpath. Call it a service maintenance path." We got it.


Do you sympathise with the policymakers' point of view, though? Someone has to balance the needs and the budget.

We need to strike a balance. If everybody were to look at it from (the) overall (view), whatever the feedback is from the ground (is ignored). And residents feel, you're not lobbying for me. Then who is taking care of residents' needs?

It is my role to raise things from the ground, so that those balancing the overall (view) have that source of input.

Most of the issues that I bring up are from residents' feedback. Maybe I'm more of a doer, a grassroots MP.

The Government has become more flexible, more open to our requests, making exceptions. I think they realised, sometimes jokingly we will tell the minister, you're so heartless.

Those who can take it, they just laugh, those who cannot take it don't want to talk to me any more. But I haven't made any enemies. By now, they accept what I am.


What else is on your wish list?

We provide public housing for those earning up to $10,000 a month. Up to $12,000, they can buy executive condominiums. But in time, we have to lift the cap for ECs.

They feel that private property is beyond their reach and they cannot buy ECs. It may not be a big group, but why are we making them so unhappy?

The other group is divorcees - we must help them with housing. Some headway has been made here.


What drives you? You seem indefatigable.

This is my second chance in life. I had colon cancer in 2003. I had an operation.

Then two years after, in 2005, they called me in for a tea session and asked if I was keen to go into politics. I said, "Do you know that I have colon cancer?"

"Yes," (Deputy Prime Minister) Teo Chee Hean said. My medical report was on his table. "I think it should be okay," he said.

I went home to tell my husband, "Wah, PAP wants me, wo bu hui si ("I won't die" in Mandarin)!" (laughs)


What do you do in your free time?

I exercise, swim or cycle in the morning. I make it a point to visit my mum in Malacca five times a year.

My girl is in the final year of university, my boy is in the final year of polytechnic. I'm also lucky, with a very supportive husband (Soh Chee Hiang, 54, a manager at Singapore Technologies), who goes marketing, who takes care of the home. A lot of residents think I'm not married and don't have children. They ask, how come you're always here!



What's for supper

Coffee shop at Yishun Street 81, Block 844
- Chrysanthemum tea and iced milk tea: $2.20
- 10 sticks of mutton and pork satay: $6.50
- 6 chicken wings: $9
- Rojak: $4
- Total: $21.70



THE SUPPER CLUB LEE BEE WAH

Online vigilantes going too far?

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Two recent cases expose the ugly side of online behaviour in Singapore
By Nur Asyiqin Mohamad Salleh, The Sunday Times, 9 Feb 2014

Singapore's Internet community ought to police itself better if it wants to safeguard its freedom online and not invite the authorities to step in and stop atrocious behaviour, new media experts say.

Two recent cases have exposed the ugly side of Singapore netizens in the way they have pursued and attacked individuals they decided deserved to be punished.

Last month, Briton Anton Casey found himself at the receiving end after posting disparaging remarks about "poor people" on the MRT and having to "wash the stench of public transport" off himself.

Most agreed that what he did was offensive, but the online attacks targeted him, his former beauty queen wife and their young son. Mr Casey took his family to Perth, claiming they had received death threats. He then lost his job as a senior wealth manager after he and his employer "parted ways" in the wake of the controversy.

Last week, 24-year-old undergraduate Quek Zhen Hao found himself the overnight focus of attention, after two videos - showing him tailgating, overtaking and braking dangerously in his car - were circulated widely online.

In one video, he is seen confronting another motorist who drives away - only for Mr Quek to chase after him.

Netizens called him "public enemy", "ugly" and an "Ah Beng". He was also subjected to what netizens call CSI - named after the television series Crime Scene Investigation - when personal information about him, his family and girlfriend was dug up and shared online for all to flame.

Mr Quek apologised for what he did on the road, but said he had become a victim of "cyber Ah Bengs" himself.

"My girlfriend's photos have been taken from her Facebook account and posted on the forums," he told The New Paper. He said his family and girlfriend had been harassed, claimed he had received death threats, and pleaded with netizens to remove his parents' address from the Internet.

Is it all going too far, when an alleged wrongdoer ends up appearing like the victim of an online mob attack?

The state of online conduct in Singapore is troubling, said Dr Michael Netzley, a media researcher and the academic director of executive development at Singapore Management University.

"Any time somebody appoints himself judge, jury and executioner, we have a drastic problem," he said.

Dr Netzley, who has researched digital media across Asia, compared online "CSI" activity here to what is known as the "human flesh search engine" in China, where netizen mobs turn on individuals and make their lives a misery by posting their personal details online.

The bullying has driven some victims in China to the brink of suicide, he said.

International communications and social media expert Lars Voedisch wondered whether some netizens were taking justice into their own hands because they felt helpless, feeling official authorities were not doing enough.

"It's actually quite cowardly behaviour, independent of being lawful or not," said Mr Voedisch, who has worked in Singapore for more than 10 years.

Social media lawyer Lionel Tan, of law firm Rajah & Tann, said anyone who feels threatened online can seek legal advice to find out if the threat constitutes criminal intimidation under the Penal Code. These should not be mere insults, but comments that threaten injury to the person, his property or reputation. The victim can lodge a police report.

"People have to realise that the laws of Singapore apply to whatever is done or uttered, whether offline or online," said Mr Tan. "They shouldn't have the impression that different rules apply in the online world. There's no complete freedom - even though it may feel like it. Don't continue to think the online world can't be governed or policed. It can."

He said the authorities could step in to encourage good online conduct or introduce laws to let victims of cyber bullying seek redress.

Dr Netzley said: "What I don't want is for the Government, at some point, to decide that they've had enough and are going to start tracking people online. But any time you push the limits online, you invite the Government to make restrictions.

"People must do better at self-regulation, and there needs to be more citizens willing to speak up and say, 'This is wrong'."




FROM WRONGDOER TO VICTIM


What he did: Last month, the British wealth manager posted two Facebook comments referring to public transport commuters in Singapore as "poor people".

The reaction: Netizens took offence and circulated his comments widely. He was flamed online and his actions were reported in both the local and international press. He said he and his family were threatened by netizens.

The result: He apologised, left his job here and left with his family for Perth by the end of the week.



Quek Zhen Hao, 24

What he did: Last week, the undergraduate was caught on video twice in the same day driving dangerously. The clips, in which he was shown tailgating, overtaking and braking suddenly, were posted online and went viral.

The reaction: He was roundly flamed online and netizens posted his home address and girlfriend's photos. He also claimed he had received death threats.

The result: Mr Quek has apologised on video. He has also appealed to netizens to leave his family alone and remove his parents' address from the Internet.



Troubling

"Any time somebody appoints himself judge, jury and executioner, we have a drastic problem."

DR MICHAEL NETZLEY, a media researcher and the academic director of executive development at Singapore Management University









The cost of getting too personal online
By Carol Soon, Published The Straits Times, 11 Feb 2014

TODAY is global Safer Internet Day and is an opportune time to sketch some lessons on social media etiquette that have come to the fore. It is likely that January 2014 will be remembered for the unfortunate series of incidents following posts by British expatriate Anton Casey.

The wealth manager's online posts of what seemed like personal snapshots - his son travelling on the MRT and another of his son in his luxury car - with inappropriate captions that appeared to insult the poor and the ordinary commuter brought him instant ignominy.

Within hours, netizens incensed by his remarks had posted information on his employment details, his supervisor's contact and his residential address online, along with angry comments directed at him and his family.

The heat got so bad that within a week, Mr Casey had lost his job and left Singapore with his family, citing "death threats".

This case is curious because one would think that, by now, people would have learnt to be circumspect about what they post online, after the recent string of incidents involving people shooting their mouths off on social media and getting into hot water.

Sadly, this has not happened, and it makes the case for educating Internet users on the benefits of self-preservation.

In Singapore, the Media Literacy Council (MLC) is tasked with the core mission of developing "public education programmes that will help the public navigate media, especially the Internet, safely and responsibly" and "promoting a safe, secure and civil media environment for all".

To guide online behaviour, the MLC came up with a set of core values: empathy, responsibility, respect, integrity, inspiring others positively, astuteness and discernment.

These are useful in inculcating positive values that guide technology use. They also appeal to people's sense of responsibility.

The MLC website does have useful tips on how to protect personal information online, such as connecting only with people we know offline, asking friends not to post pictures of us or our family without permission, and working with websites concerned to remove false or private information about ourselves.

While these tips are important and timely, there's a need to send a stronger message: that what you do and post online has consequences offline.

This approach may sound more self-serving than an appeal for empathy, but research has established that most people are driven primarily by self-gratification rather than by altruistic motives when they go online.

A study by Anita Whiting and David Williams points to why most people use social media. Besides social interaction, information-seeking and entertainment, people use social media to express their thoughts and opinions, criticise others and blow off steam. Social media is often used as a personal promotion vehicle where users "market their own personal brand".

In a 2010 study conducted by the Pew Internet & American Life Project, researchers said members of Generation Y in the US will continue to disclose huge amounts of personal information. What is their main motive? It is to stay connected and take advantage of social, economic and political opportunities.

I once participated in a radio talk show held at a junior college in the north zone and was impressed by the students who were self-aware, articulate and confident. They shared their views on online sharing.

Responding to a fellow panellist's appeal for people to behave responsibly online, a female student questioned why she had to do so and said candidly that when she goes online, she says things that she cannot express freely in the offline world.

There is nothing wrong with pursuing personal interests but we need to drive home the message that every action online, just as in the real world, comes at a cost.

The time we spend online is a cost; it is an opportunity cost as we have less time for other tasks or modes of interaction.

We incur social costs when we are publicly shamed and criticised, damaging our reputation in our school, workplace or community.

An even more severe cost would be legal ramifications when we get on the wrong side of the law.

Whether it is the female polytechnic student who made a disparaging remark about Indians, or the former labour movement employee who made a Facebook post filled with expletives on Malay weddings, these individuals have paid a price in one form or another for their actions online.

What seems like common sense is not so common after all.

Three commonly overlooked characteristics of Internet technologies and their implications should be ingrained in users.

One is the loosening of inhibitions due to the Internet's anonymity, resulting in us saying things we normally would not say to one another face to face.

Another is the increasingly non-existent boundary between what is private and public, and the speed at which one's personal details can be dug up and spread online. What we share online, or do offline for that matter, is almost guaranteed to come under the scrutiny of strangers.

Take the recent case of Mr Quek Zhen Hao. After two videos showing him behaving aggressively on the road went viral, anonymous Web users found his parents' address and photos of his girlfriend, and posted them online.


Third, everything is permanent on the Web - the text, photographs and videos we post online can be easily copied and reposted repeatedly, making it near impossible to wipe one's slate clean.

In short, users should realise that what they say or do online will define them to the invisible masses, who will not hesitate in unearthing personal details about them in the name of information-sharing.

While it is all so easy and tempting to share bits and bytes of our lives, the simplest yet seemingly hardest thing to do is to pause and think of the price attached to what we share.

Greater awareness of the characteristics of Internet technologies will compel users to be more circumspect when they post content online. At the least, it could prevent them from becoming the next headline, in print or in cyberspace.

Dr Carol Soon is research fellow at the Institute of Policy Studies, National University of Singapore. A longer version of this piece is also available at www.ipscommons.sg



Related

Learning Chinese

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More kids in US learning Chinese
As China's economy grows, US parents realise benefits of learning the language
By Melissa Sim Us Correspondent In Washington, The Sunday Times, 9 Feb 2014

When Sarah Ramsay was 13 years old, she took her first Chinese class at St Mary's School in Medford, Oregon, with no prior exposure to the language.

"I remember I talked to the middle school counsellor after because I was so nervous, I wanted out," she says. But her counsellor told her to give it two weeks, which she did.

Now, the 17-year-old speaks fluent Mandarin, has visited China through a summer programme, and will be taking a double major in business and Chinese at the University of Oregon.

As China's economy continues to grow, Americans are looking beyond learning foreign languages such as German or French and turning to Chinese instead.

Parents are starting their children on the language early, sending them to Chinese immersion schools, or even private classes, outside of regular school hours. And more people have enrolled in Chinese programmes at the tertiary level, hoping to polish their skills in the language.

Mr Jeff Wang, director of education and Chinese-language initiatives at the educational non-profit Asia Society, estimates that there are more than 1,000 Chinese programmes in schools across the US, up from just 260 when the society did an informal survey in 2005.

Adds Dr Hong Yang, director of the US-China Institute at Bryant University in Rhode Island, who also oversees a programme teaching Chinese to the community: "About five or six years ago, we had 100 to 200 people learning Chinese in a year. Now we have 1,500 to 2,000 students a year."

As a measure of its popularity, at private language school Language Stars, which works with several schools and has 17 centres in Washington DC and Chicago, Chinese has surpassed French as the second most popular language in the last two years. Spanish remains the most popular.

The desire of parents to give their children a good grounding in Chinese is so great that some children give up their lunch hour once a week to take a Mandarin class, says Language Stars' chief executive Jamie Davidson.

Many young students, like Ms Ramsay, say they enjoy learning a language so different from what they are used to and see it as useful for their future.

"I want to be in business" or "China is going to take over the world" are some answers Chinese teacher Diana Douglas, 27, often hears when she asks her students at St Mary's School why they want to study Chinese.

The school takes the study of Chinese seriously, requiring all seventh grade students (equivalent to Secondary 1) to go through a semester of Chinese classes.

For those who desire a higher level of proficiency, there are more than 150 Chinese immersion schools across the country, where Chinese is used as a medium of instruction.

At public charter school Washington Yu Ying, for example, Chinese is used to teach subjects like mathematics and science on alternate days.

The school for children aged four to 11 is so popular that - similar to the Singapore system - pupils have to ballot for a place. Last year, the school received 800 applications for only 45 places.

School head Maquita Alexander says: "Since the second year of the school... there has always been a waiting list."

Founded in 2008, the school has places for 511 pupils.

Apart from the parent-driven demand, the US and Chinese governments also provide opportunities for the study of Chinese through various programmes.

The US government runs Startalk, a summer language programme, and the language flagship programme that gives out tertiary- level grants. Chinese is one of the languages that these programmes try to promote.

Since 2004, the Chinese government has sponsored numerous centres around the world called Confucius Institutes or Confucius classrooms to promote the Chinese culture and language.

According to the Confucius Institute Headquarters or Hanban website, there are 97 Confucius Institutes and 357 Confucius Classrooms in the US.

But while these are "important contributors to enable growth in a major way", there is also a great desire on the ground to learn, says Asia Society's Mr Wang.

Freshman Luke Thompson, 19, of College of the Holy Cross in Worcester, Massachusetts, who was first exposed to the Chinese language through Startalk, hopes to major in Chinese and political science, and to work for the US Foreign Service.

He has also set another goal: "One day I will be able to go to a store in China and bargain for a better price entirely in Chinese."





Indians seeing importance of learning Chinese
By Nirmala Ganapathy India Correspondent In New Delhi, The Sunday Times, 9 Feb 2014 

At Springdales School in Pusa Road, Delhi, principal Ameeta M. Wattal plans to talk to parents about introducing a Chinese language course in Class 6 or Primary 6 in April.

Ms Wattal, who lived in China for five years and speaks Mandarin, is unsure how many pupils will take the course but is convinced it is the foreign language to learn over French and German, the old-time favourites, taught in Indian schools for years.

"Chinese is an important language globally. If business is going to be China-centric, naturally a lot of job opportunities will come up in China," she said. "But you need to motivate children. Chinese is not an easy language... the calligraphy is difficult."

Chinese is being offered by the Central Board of Secondary Education as an optional foreign language at the Class 6 level in a dozen Delhi schools starting this year. The board chalks out syllabus and rules for 15,000 private and government schools across India and abroad, and has brought in 22 teachers from China to teach students and train Indian teachers.

"The teachers will stay in India for one year. They are all primary and middle school teachers," said an official who did not want to be named. The costs will be shared between the federal government and the schools.

The plan is not new. In 2010, then Education Minister Kapil Sibal announced in Beijing that India was introducing Chinese in schools. But it did not happen because there were not enough teachers to teach Chinese, and India had security concerns about allowing Chinese teachers into Indian schools.

While China is India's second largest trading partner, ties have been fraught with tension. The two countries have a long pending border dispute that is a constant source of irritation. And Indian security agencies view Chinese participation in different Indian sectors with suspicion.

Now the government is well aware of the potential of having a young population acquiring Chinese-language skills and tapping into one of the world's fastest-growing markets.

In one sign of how it views the importance of more Indians learning Chinese, clearance was given last year to set up a Confucius Institute, which teaches not just the language but also skills like gongfu. The proposal had been pending for eight years.

The institute was inaugurated last year in Mumbai University in collaboration with Tianjin University of Technology.

Still, allowing Chinese teachers to teach in Indian schools is not expected to lead to a flood of Chinese-language teachers as security concerns still remain.

In the meantime, demand for learning Chinese is rising.

At Jawaharlal Nehru University, thousands of students apply for 35 spots every year. "Demand is always there but the problem is we don't have an infrastructure in place (across the country). This language is increasingly becoming important, not just (because of) geopolitics, but also due to trade and the economy," said the university's Chinese and China studies professor B.R. Deepak.

Mrs Purnima Garg, who runs the Chinese Language Institute, said: "Chinese is the language of the 21st century because of the economic growth of China."

But many wonder if Indian school students can handle the extra burden of learning a language known to be difficult.

India's education system is already seen to be overburdening students who spend hours studying in school and then taking tuition to get ahead in a highly competitive race for limited places in top colleges.

Students are often spotted carrying school bags bulging with books, learning a minimum of three languages ranging from English and Hindi, the national language, to Sanskrit or regional languages. Many also take an additional foreign language like German or French.

But at least one parent thinks Chinese can and should be taught. Mrs Anjali Virk has struggled to get Chinese tutors for 10-year-old Abhay and eight- year-old Adi. She approached her sons' school when she heard of the government's plan to introduce it. "The school said they needed a pool of teachers and that was the problem," said Mrs Virk, who managed to get a tutor this year.

"You just need to be a bit farsighted... knowing Chinese will increase employment opportunities. My kids resist it but the elder one is getting the idea that it's a language no one else knows. Of course it's a challenge because I am not able to help them with homework.''

At the Chinese Language Institute in Gurgaon, students recite common Chinese phrases. It is a three-month crash course taught by a native speaker.

Political science student Kalyanee Parajpe, 18, is learning the basics but wants to go further. "I want to know more about China's political system and I think it will be better to read the Chinese version instead of the English translation."

But she does not know where she will go after the course. "I am thinking about going online and learning. Let's see."


$1.50 an hour is just too little for anyone

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Despite back-breaking labour, some foreign workers may be earning less than a cleaner's pay
By Radha Basu, The Sunday Times, 9 Feb 2014

For a year, Bangladeshi construction worker Hossain Iqbel worked seven days a week fitting pipes underground on Jurong Island.

His basic wages - at $1.50 an hour or around $280 a month - were a third of the $800 he had been promised when he left home.

He did not complain at first, despite having proof of his low wages - unlike many other employers of foreign workers, his issued payslips.

He held back because he had borrowed heavily to pay for recruitment fees and did not want to be repatriated.

Eventually, he lodged a complaint days before his contract was due to end, fearing he might be sent home without his dues being settled.

Acting Manpower Minister Tan Chuan-Jin told Parliament last month that migrant workers were generally treated well by employers, and a 2011 survey of 3,000 work permit holders showed that nine in 10 were satisfied.

Complaints to the ministry about work-related abuses are also low. It helped 7,000 foreign workers last year - less than 1 per cent of the 700,000 work permit holders here.

But these numbers may not reflect the true picture on the ground.

While covering foreign worker issues, I have been told time and again by workers and their advocates that despite grave abuses, many workers will not complain so long as the power balance between employer and employee remains skewed in the employer's favour. Some policies need tweaking to level the playing field.

First, the ministry could compel all big and medium-sized companies to issue itemised payslips, clearly showing basic and overtime pay, hours worked and deductions, if any. Itemisation is important. I have seen hastily scrawled figures on the backs of used envelopes that currently pass as "payslips". This needs to change.

A move to mandate payslips was deferred for all companies recently, after feedback that small and medium-sized enterprises needed more time to implement proper payroll systems.

An ongoing survey by workers' group Transient Workers Count Too (TWC2) shows that one in 10 claimed they were underpaid or not paid at all in the previous month. That could translate into tens of thousands of workers at any given time.

Itemised payslips - together with electronic payments - would give workers proof of being underpaid and empower them to complain.

Some workers say that on pay day, they are passed cash stuffed in envelopes and the amounts are occasionally far less than what they are owed.

Mandating electronic transfers of salary could help overcome this problem. The ministry says some workers may prefer the convenience of cash payments. This could be easily catered for by having an opt-out feature.

But the main reason workers do not complain is that doing so can cost them their job. The employer can unilaterally cancel the work permit and send the worker home once the complaint is resolved and dues are paid.

For workers who still have debts to repay, complaining is the last option. A survey of 104 Bangladeshi workers showed that each paid an average of $6,500 to get here and it took up to 17months to repay their loans. Anyone sent home within his first year returns to big debts.

TWC2 advocates have suggested that a worker who leaves his job - whether he is sacked or resigns - should be allowed 60 days to remain in Singapore and find another. A worker who feels unfairly treated or abused will more readily speak up and complain, if he is assured that he is not at risk of being packed off home.

Such a move could also help raise workers' wages and hurt the bad eggs, such as Mr Iqbel's employer, who profit by undercutting more ethical competitors who know it is morally wrong to pay a manual worker $1.50 an hour.

Employers' interests could be protected by proscribing mass resignations, to prevent large-scale poaching by competitors.

Significantly, Singapore allows foreign maids to transfer to another employer in case of disputes with an existing employer.

Also, as part of a little-known scheme, the Manpower Ministry already allows work permit holders to change jobs on a case-by-case basis. It is unclear how many have been allowed to do so, but there were two cases recently of workers being given 14 days to look for a job after their permits were cancelled when their employer defaulted on levy payments.

Finally, there is the matter of wages.

In the absence of publicly available surveys of foreign workers' wages, it is hard to know how many workers earn as little as Mr Iqbel.

The Sunday Times understands that the Bangladeshi and 14 of his compatriots were each owed an average of $9,500 in wages.

They eventually opted to settle privately with their employer and left Singapore.

Thanks in part to tireless negotiations by unions, the Government recently announced that it would introduce new laws to ensure that local cleaners would get at least $1,000 in wages. More productive and skilled workers can earn more.

Even as we applaud the move, it is time to discuss how blue-collar wages can be pulled up in the construction and marine sector too, where, as Mr Iqbel's example shows, workers might be earning less than a third of what a cleaner gets, despite back-breaking manual labour.

Singaporeans have long clutched the moral fig leaf that it is okay to pay these foreigners a pittance because they spend the bulk of their salaries in their home countries, where the costs of living are far lower. Besides, they come willingly - and conventional wisdom has it that if they don't like what they get, they can leave.

Such attitudes must change. Working hard at vital jobs that most locals will never deign to do, migrant workers have played a key part in Singapore's economic success and deserve better - and fairer - returns.

It is time to evaluate whether it's right to pay anyone $1.50 an hour for hard work - just because it's legal and we can.


Shipyard workers talked out of strike

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Advocacy group persuaded some 120 foreigners not to stop work over pay dispute
By Toh Yong Chuan, The Straits Times, 10 Feb 2014

AROUND 120 foreign shipyard workers came close to staging an illegal strike last month over unpaid wages. But they were talked out of it by the Migrant Workers' Centre (MWC), a foreign workers advocacy group backed by the labour movement.

The MWC kept this under wraps until the Ministry of Manpower (MOM) confirmed the case with The Straits Times yesterday.

The workers - 100 from Bangladesh and 20 from India - were hired by Akash Engineering and Technology, a sub-contractor for ship building and repair.

Unhappy that their salaries for up to 31/2 months had not been paid, some workers went to the MWC on Jan 15, saying that they would not be turning up for work the next day unless they got their money.

"They were very serious about it and had even returned their safety gear to the company," MWC executive director Hans Goh said.

He revealed that six MWC staff went to the workers' dormitory in Lim Chu Kang that evening to talk them out of their plans. They roped in an MOM director, who promised the workers that the ministry would look into their salary disputes the next day.

"We told them, 'Once you break the law, that is it, we can't help you any more'," said Mr Goh. "We also said that if their employer fired them for refusing to work, they would lose everything."

He would not be drawn into saying whether the MWC, which was set up in 2009 by the National Trades Union Congress and the Singapore National Employers' Federation, had averted an illegal strike, preferring to call it an "industrial action" or "sit in", which is the labour movement's parlance for protests by workers.

The Straits Times understands that a local shipyard that hired the company as a sub-contractor paid the workers the salaries owed the next day.

The workers declined to be interviewed because most of them are still working for the company.

Contacted on the phone, the company's director, Mr Kakarlapudi Venkata Madhava Varma, a permanent resident, said that the wage dispute had been settled. "Only some payment was outstanding. Everything has been sorted out, and I don't see any issue now."

He declined to reveal the amount of salary that was owed, saying that the company was not in any financial trouble. Official company records show that the company has a paid-up capital of $850,000.

But it is not off the hook yet. "Investigations into Akash are ongoing for possible offences under the Employment Act," the MOM said, without elaborating.

While it is not illegal to strike in Singapore, there are regulations to follow, including a registered trade union having to get the majority of affected members to say "yes" by secret ballot.

The last strike in Singapore was in November 2012, when 171 SMRT bus drivers from China failed to show up for work to protest against living conditions and being paid less than their Malaysian colleagues. Five have since been convicted, and are serving jail terms of between six and seven weeks for instigating the illegal strike.

Member of Parliament Zainudin Nordin, who chairs the Government Parliamentary Committee for Manpower, said that more could be done to educate foreign workers about Singapore's laws and regulations. "They have to have trust in our system and should not resort to doing things that would break the law."


Pioneers need more healthcare support: PAP group

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By Ng Jing Yng, TODAY, 7 Feb 2014

Minimising the cash outlay by seniors for their healthcare bills is at the crux of the recommendations made by the PAP Seniors Group to the Government for the Pioneer Generation Package and the formulation of MediShield Life.

The group from the People’s Action Party, making policy recommendations for the first time since it was formed in December, called for higher Medisave withdrawal limits for the elderly, more help for them to pay specialist outpatient treatments and expensive non-subsidised medicine, among other things.

Sharing the recommendations at a press conference yesterday, Speaker of Parliament Halimah Yacob, who chairs the group, said healthcare was a chief concern during a dialogue session it had organised last week.

For instance, individuals aged 65 and above made up 10 per cent of the population in 2012, but accounted for almost 30 per cent of hospital admissions. Dialogue participants, who included both the young and elderly, also pointed out that seniors may have little savings, but face medical-cost inflation, Mdm Halimah said.

While the recommendations were made with the pioneer generation in mind, Mdm Halimah told TODAY they would be applicable to future cohorts of seniors as well. “Everyone will eventually grow old and the need for healthcare is recurrent,” she added.

Mdm Halimah also noted that the dialogue participants had different views on the definition of a pioneer. However, there was consensus towards setting a baseline benefit for all pioneers while giving the needy ones more, she added.


On the group’s recommendation to allow for higher Medisave withdrawal limits, Mdm Halimah noted that elderly citizens who are frail or suffer from chronic ailments might need to use their Medisave more than the younger people.

“We are also concerned that if … the elderly cannot withdraw more Medisave, they may end up in hospital more to make use of subsidies ... that is also not so desirable (with the current hospital bed crunch),” she said.

The group further suggested for Medisave to be used for home-based care to encourage active ageing in the community, as well as for buying non-subsidised medicine, so senior citizens will not have to use too much of their own cash.

With the ongoing review of MediShield Life— a universal insurance scheme offering lifelong coverage — the group also recommended increasing its level of benefits to provide better coverage for large subsidised bills.

Besides asking the Government to help pioneers pay a significant part of MediShield Life premiums, the group also noted that such help cannot be one-off as premiums will increase in the future.

Mdm Halimah also reiterated that the community can play a part in showing their appreciation and respect for the pioneer generation. For example, private enterprises can consider giving special discounts for senior customers, she said.

Mdm Halimah, who submitted the group’s recommendations to Health Minister Gan Kim Yong yesterday, will also send them to the MediShield Life Review Committee.





Many welcome ideas to make healthcare more affordable for elderly
By Claire Huang, Channel NewsAsia, 8 Feb 2014 

Many have welcomed the ideas to make healthcare more affordable for the elderly, as recommended by the PAP Seniors Group on Thursday.

But some also flagged concerns about the impact of the proposals.

The PAP Seniors Group made several recommendations.

Among them, a tiered Medisave withdrawal scheme where older Singaporeans can withdraw more for outpatient needs, and increasing subsidies for homecare costs.

Mdm Chan Chee Meng, 80, said: "Hopefully they will help the elderly because some are really in need of assistance. Not everyone has children to help."

Mr Anthony Woo, 72, said: "The total package is of course a prudent direction to be heading for, but at the end of the day, it's still the same pool of money. It's the individual's income.

"Unless the government finds a way to plough some top-up, which is outside of the individual's earnings, then I will say it's complete."

Mr William Siow, 62, said: "The suggestions are good for the elderly but there's also a need to prevent the children seeking financial aid on behalf of their folks from abusing it."

For some, the suggestion to increase subsidies for homecare costs will ease Singapore's hospital bed crunch.

Abhijit Ghosh, leader of healthcare & pharmaceutical at PwC Singapore, said: “This will go a long way to solve the problem of the bed crunch issue because for the elderly generation, they would like to get the subsidy for their check-ups and try to get the hospital treatments.

“But if they can go more for the homecare treatment, where their near and dear ones are available, and the government's systems are geared up to support that, that would be fantastic.”

Another suggestion is getting the government to pay the bulk of MediShield Life premiums for seniors.

Dr Lam Pin Min, chair of the Government Parliamentary Committee for Health, said: "With MediShield Life, the coverage for the different medical conditions will be enhanced. So I'd expect the MediShield Life premiums to be increased as well, and I'm sure this is the main concern of many Singaporeans.

“And I hope that with the review, we can seriously look into subsidising the MediShield Life premiums, especially for the older age group - the pioneer generation."

But concerns remain.

Mr Ghosh said: "The tiered withdrawal will enable the elderly generation to withdraw more but someone needs to cough it up, someone needs to put it (money) in. And I have reasons to believe we need to look at expanding our demographic profile and bring in more younger population to share the risks. So the issue of risk pooling will become a big issue."

Experts said tackling the ballooning healthcare costs for the elderly in Singapore will remain an uphill task for the government. This is especially so, with Singapore's rapidly ageing population and declining birth rate.







PAP Women's Wing wants more eldercare support
Position paper calls for policy changes in housing, health care, job and social support
By Janice Heng, The Sunday Times, 9 Feb 2014

The People's Action Party's Women's Wing is calling for change in four policy areas to better support seniors and their caregivers.

Its proposals include a housing subsidy for singles who care for aged parents, mandatory eldercare leave and a respite care scheme so caregivers can have breaks.

These were set out in its position paper released yesterday, which proposed changes to policies in housing, health care, employment and social support.

Ageing issues are particularly important to the Women's Wing as women are expected to form the majority of Singapore's elderly, said Associate Professor Fatimah Lateef at its annual conference, where she presented the paper along with fellow Women's Wing member and Member of Parliament Ellen Lee.

At the conference, Women's Wing chairman and Minister in the Prime Minister's Office Grace Fu noted that women here have made great strides in health, education and employment.

But they continue to face challenges in trying to balance work and care-giving duties, she said. She highlighted the importance of keeping women in the workforce for as long as possible, especially in a rapidly ageing society where there will be fewer young folk to support the old.

Hence the need to push for measures to make workplaces more family-friendly through flexible hours, build better childcare and eldercare facilities, put in place an effective Fair Employment Practices Framework to reduce discrimination and adjust leave and benefits schemes so men and women can take on more equal roles at home.

She also highlighted a need to pay attention to low-wage households headed by women who are widowed or divorced.

Other measures to address the challenges of an ageing population were also explored in the position paper.

In housing, the Women's Wing also wants elderly-friendly fixtures to be made available to more by lowering the minimum age for the Housing Board's Enhancement for Active Seniors scheme and doing away with the requirement of needing assistance.

Dr Fatimah also spoke of helping elderly home owners to monetise their property by extending the Lease Buyback Scheme to larger HDB flats. The scheme lets home owners sell part of their lease back to the Government, but only for three-room and smaller flats currently.

In health care, the Women's Wing wants more subsidised health screenings and free assistive equipment such as wheelchairs for the needy elderly.

On eldercare leave, Dr Fatimah told reporters that a week's leave might be an appropriate amount. She hopes that this and other proposals can be put in place in the next two years.

On the employment front, ideas included an "elderpreneurship" centre with loans and training for older entrepreneurs, and more incentives to hire older workers.

Finally, in the area of social support, the Women's Wing hopes able-bodied elderly will be encouraged to help less able-bodied seniors.

The position paper has been presented to the PAP Seniors Group (PAP.SG), set up late last year to address elderly issues.

Last Thursday, PAP.SG released a paper on health care in which it called for more public spending in six areas to ensure health care remains affordable to older Singaporeans, especially members of the pioneer generation.





S'pore still lags behind in gender diversity among board directors: Grace Fu
By Tan Qiuyi, Channel NewsAsia, 8 Feb 2014

Six out of 10 companies in Singapore have all-male boards, and only 8 per cent of board directors in the country are women. This puts Singapore behind its Asian neighbours, like Hong Kong (9 per cent) and Indonesia (11 per cent).

Minister in the Prime Minister's Office Grace Fu gave these statistics at the PAP Women's Wing's annual conference on Saturday.

She told reporters that efforts over the past year to get companies to improve gender diversity on their boards have been slow.

"We're not happy with the progress," said Ms Fu, who is the chairperson of the PAP Women's Wing.

"For a company to say that I value women as employees is one thing. But when there're no board appointments, it sends the wrong signal to women working in that company," she said.

Ms Fu also told reporters that for now, there are no plans to push for legislation on women's representation in companies' senior management. But she said she was not ruling out the possibility in future.

"What we need is not legislation, and therefore perhaps a token appointment. We need companies to really look at this (women leaders) as a source of human capital, and to start building from the ground policies, development and training programmes that really look at tapping women as a resource," said Ms Fu.

The Women's Wing also presented a position paper focusing on seniors in Singapore.

The 15-page paper calls on the government to legislate elder care leave, amongst a slew of other health-care, housing, and employment improvements for seniors.

The Women's Wing will lobby for a law to give caregivers elder care leave of one week.

"This is realistic. As you know, our elderly and seniors have to go for check-ups and their rehabilitation programmes at least a few times a year, so I think a week (of elder care leave) would be a good start-off number," said Associate Professor Fatimah Lateef, who is a member of the PAP Women's Wing and an MP for Marine Parade GRC.

Apart from elder care leave, the Women's Wing is also urging the government to set up a respite care scheme for senior citizens, offer a higher subsidy for - or even free - health screening for needy seniors.

On employment, the group recommends government loans for entrepreneurship, more skills training and a "lifelong learning college" to raise the value of seniors in the job market and tackle any ageist attitudes.

The focus on the elderly is in tandem with the recent formation of PAP’s new wing for seniors called PAP.SG.


Pioneer Generation Package to benefit 450,000

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PM Lee outlines health-care package for 450,000 pioneers
Subsidies and top-ups provided for life; package a way to honour them
By Goh Chin Lian, The Straits Times, 10 Feb 2014

PRIME Minister Lee Hsien Loong yesterday paid tribute to the generation of Singaporeans who worked together to build this nation from its infancy, and announced a special package of health-care subsidies as a gesture of gratitude to those aged 65 and older.

These pioneers would have been at least 16 years old at Singapore's independence in 1965 and many would already have been working to support their families at that age. They would also need to be citizens before 1987 to qualify for the package, which includes enhanced subsidies for outpatient treatment, additional annual Medisave top-ups and help with premiums for the new national insurance scheme, MediShield Life.



About 450,000 people are expected to benefit. More details will be announced in the Budget speech on Feb 21.

Yesterday, though, the focus was more on remembering and thanking this first generation of Singaporeans for their contributions, both big and small.

The special tribute to pioneers, which more than 1,000 of them attended, was also chosen to be the first event to kick off celebrations for Singapore's golden jubilee next year.



In his speech, Mr Lee recalled the pioneers' journey in the early years, and that many of them migrated here from other lands to start a new life.

This special generation took part in the drama of the anti-colonial struggle, the battle against the communists, and the fight against the communalists which led to separation from Malaysia and independence, he said.

"Despite difficult times and the real danger of failure, you persevered, put Singapore first, and worked together to build our nation," he said.

They started Singapore on the path of development, raised successive generations, and "taught us the values and spirit that enabled us to succeed".



In his speech in Malay, Mr Lee paid tribute to the Malays of the pioneer generation who chose to remain here after separation from Malaysia. "Your choice enabled Singapore to grow into a unique multi-racial and multi-religious society. We are grateful for your confidence, loyalty and contributions," he said.

In his speech in Chinese, he recalled how his father, Singapore's founding prime minister Lee Kuan Yew, and his colleagues toiled for the new nation, and the difficulties they endured.

Elaborating on the package, PM Lee said the benefits will be provided to the pioneers for the rest of their lives, with more given to those who are older.

The target group is the first generation of Singaporeans living here after independence, and who were either citizens at the time or in the early years of the Republic.

They include the first national service enlistees in 1967.

Those who became citizens before 1987 are included for practical reasons: the manual records before that year are incomplete.

Mr Lee assured older Singaporeans who do not meet the criteria that they will continue to be cared for in many other ways. He encouraged all Singaporeans to honour the seniors in their own way, adding that more events will be held for this purpose.

At yesterday's party, guests mingled with President Tony Tan Keng Yam and Mrs Mary Tan, Mr and Mrs Lee, and Cabinet ministers.

Ex-MP Chiam See Tong, 78, said he felt honoured and appreciative that "my work as an opposition member has been appreciated".

Given initial talk that the package's cut-off age could be 70, MP Lim Wee Kiak said the lower cut-off age of 65 was "generous" as "five years is a large group".

As a result, Madam Tong Gim Hua, who turns 65 in October, will now benefit from the new subsidies. She spends $60 every few months on medicine to control her blood pressure and cholesterol level. Her bedridden husband is in a nursing home. She said: "I can use the money saved for my bus ride to see my husband three times a week."










"This is a special package for a special generation. No matter how we design the package, it can never fully reflect the contributions that our pioneers have made to our nation. Nevertheless, I hope you will accept it as a sincere expression of our gratitude, and I hope that it will be of help to you and to your families."






Help for a special generation
- Extra government support to pay MediShield Life insurance premiums. 
- Extra subsidies for treatments at polyclinics, GP and specialist outpatient clinics.
- Additional annual Medisave top-ups.
- Benefits for pioneers aged 65 and older are for life.




Lower MediShield premiums, more help for medical needs
By Goh Chin Lian, The Straits Times, 10 Feb 2014

SENIORS who qualify for the Pioneer Generation Package are set to enjoy the enhanced benefits of MediShield Life, yet pay less in premiums than they do today.

That will be the result of new subsidies in the package, the Finance Ministry said in a press release yesterday. Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam will announce the details in his Budget speech on Feb 21.

Besides more subsidies for MediShield Life, those who qualify for the Pioneer Generation Package will also get help in two other ways.

They will receive more subsidies at polyclinics, specialist outpatient clinics and private GPs, under the Community Health Assist Scheme (CHAS) for lower- and middle-income households.

That will be on top of other significant subsidies for outpatient treatment which all citizens are eligible for.

The pioneer generation will also receive additional annual top-ups to their Medisave accounts. They can use these to pay for their medical needs and MediShield Life premiums.

Announcing the package yesterday, Prime Minister Lee Hsien Loong said the Government decided to focus on health care because its affordability is top on the minds of older Singaporeans.

The Medisave top-up recognises that many in the pioneer generation do not have much in their Medisave accounts because the national medical savings scheme was introduced in 1984, years after they had started working.

Their wages and Medisave contributions were also lower then.

But he stressed that the package has a broader impact beyond health care or the pioneer generation. They can save some of what they would have spent on health care, for their other needs. The package will also reduce the financial burden on their children.

The package will apply to living Singapore citizens who meet two criteria:
- They were 16 years old and above in 1965, or born on or before Dec 31, 1949 (65 years old and above by the end of this year);
- They received their citizenship by Dec 31, 1986.
While the package is for those who were citizens when Singapore became independent or in the early years after independence, the Government has complete information on citizenship registration records only from 1987 onwards, the ministry said.

An exercise to fully computerise the records was done at the end of 1986, so dates of registration are missing from manual records on citizens before 1987.

The ministry said that those eligible will be informed in due course. Channels will be set up later on for citizens who wish to check on their eligibility.

Retired engineer Ellappan Parasuraman, 78, said the package will relieve the burden of his and his wife's medical costs borne by his four children.

Agreeing, his daughter Premalatha Pakasuraman, in her 40s, said: "We all have schoolgoing children of our own to look after."

Dr Jeremy Lim, head of health and life sciences practice at consulting firm Oliver Wyman, hailed the package as "a milestone in Singapore's health-care evolution".

But he would prefer the package not to be one-size-fits-all, he said, as different pioneers have different needs. It also has to be flexible to meet health-care needs not covered by Medisave and MediShield, such as community and home care services, he added.

He noted that the enhanced subsidies for outpatient clinics will by default be means tested, as they will be implemented through CHAS.

To qualify for CHAS, the household monthly income for each person must be $1,800 and below. For households with no income, the annual value of their residence must be $21,000 and below.

But chairman of the Government Parliamentary Committee for Health, Dr Lam Pin Min, disagrees with means testing for the pioneer generation. Since the package is to thank and honour them for their effort in nation building, he said all who qualify should be treated equally.






Cut-off age lowered to 65 due to earlier start to working life
By Melissa Lin and Carolyn Khew, The Straits Times, 10 Feb 2014

DURING the time of Singapore's independence in 1965, many who joined the workforce did so at the age of 16.

That is why the cut-off age for the Pioneer Generation Package was lowered to 65, revealed Senior Minister of State for Finance and Transport Josephine Teo.

"I think initially there had been some suggestions that the pioneer generation refers to those who were 21 at the point of independence, which would make them 70 this year," Mrs Teo said.

But the Government received feedback that in that era, people generally started working earlier, she said.

Having a cut-off age of 65 means that the pioneer generation refers to those who were at least 16 at the time of independence.

The Bishan-Toa Payoh GRC MP was speaking on the sidelines of an event that paid tribute to pioneers living in Bishan North.

Some 45 residents aged 70 and above were treated to lunch at a coffee shop and given goodie bags and red packets of $80 each.

Responding to queries as to whether the Government expects any negative reactions from those who might just miss the cut-off age and feel left out, she stressed that there were plans to enhance the existing health-care support for those who did not qualify.

At a separate event, Minister for Social and Family Development Chan Chun Sing said that while the benefits of the package were generally related to health care, the money it would free up could be used by beneficiaries for other needs.

"For example, what the elderly would otherwise be spending on their health care can now be used for transport or even housing," he said, adding that it would also lighten the financial burden on their children.

Senior Minister of State for Law and Education Indranee Rajah also added that efforts will have to be made to reach out to possible beneficiaries to help them understand what they are getting.

Speaking on the sidelines of the official opening of the upgraded Block 112 Jalan Bukit Merah Market and Food Centre, which Mr Chan also attended, she said: "The concern is that they may not know the details and they don't realise how this could benefit them."





Malays who chose to stay helped nation succeed: PM
Moment of choice in 1965 was significant in making Singapore what it is today
By Neo Chai Chin, TODAY, 10 Feb 2014

The pioneer generation of Malays who chose to remain in Singapore during the separation from Malaysia enabled Singapore to grow into a unique multi-racial and multi-religious society, said Prime Minister Lee Hsien Loong.

The Separation in 1965 was a moment of choice for the Malay community, between joining Malaysia as part of the majority and remaining in Singapore as a minority, he said.

Many chose to stay and Mr Lee paid tribute to them during his Malay speech at yesterday’s Pioneer Generation event at the Istana, saying that they helped build a modern nation with many opportunities and a high quality of life.

“We are grateful for your confidence, loyalty and contributions,” the Prime Minister said, adding that the community has passed on to its children the values and ethos that will take Singapore forward.

In his Mandarin speech, Mr Lee highlighted that the Pioneer Generation Package’s focus on healthcare would mean people have more resources for other needs, while also helping to reduce the burden on their children.

The package is therefore not just a subsidy, but also a means to help pioneers live better in their old age, Mr Lee said.

One of the guests at yesterday’s event, Mr Chng Bah Bee, 72, said the Package would give seniors assurance. A former port worker, Mr Chng said medication for his high blood pressure, diabetes and high cholesterol cost over S$30 every three months, but that he and his wife, a cancer survivor, exercise daily and are well-covered by insurance bought by their children. “We took care of ourselves, and then the next generation,” he said.

Meanwhile, Mr Lee also said Singapore owes its success to the pioneer generation, noting that the Republic had no natural resources when it became independent and the future was very bleak. But the pioneer generation persevered to ensure Singapore survived and grew, and their hard work set a strong foundation for the country’s development, he said.

In paying tribute to the work of the older generation, Mr Lee said the package cannot fully repay Singapore’s pioneers for their contributions, but he hopes it will be accepted as a sincere gesture of thanks.





Honouring their contributions


MALAY PIONEERS WHO CHOSE SINGAPORE

"For the Malay community, Separation meant a moment of choice - between joining Malaysia as part of the majority, or remaining in Singapore as a minority.

Many of you chose to stay in Singapore to start a new life here, together. Your choice enabled Singapore to grow into a unique multi-racial and multi-religious society. We are grateful for your confidence, loyalty and contributions."





SHOWING OUR APPRECIATION

"The Government has taken steps to take care of our pioneer generation in their old age. All of us can also play a part in our own ways, be it a simple gesture of giving up seats on our public transport for the elderly or caring for the elderly in our families and the community. If all of us do our part, we will be a better society with heart and conscience."











Garden party at Istana

The Straits Times, 10 Feb 2014

Performers from this year's Chingay Parade welcoming guests at the annual Chinese New Year Garden Party for grassroots leaders at the Istana yesterday.

At the event was Mr Lee Kuan Yew, who had skipped a Tanjong Pagar event last week as he had been warded in hospital. He joined Tanjong Pagar GRC grassroots leaders for a group photo, along with fellow Tanjong Pagar GRC MP Indranee Rajah. Some 4,000 grassroots leaders and spouses attended the party hosted by Prime Minister Lee Hsien Loong and Cabinet ministers.





We were just doing our jobs: Pioneers
Older Singaporeans share about how they got involved in nation building
By Maryam MokhtarThe Straits Times, 10 Feb 2014

AMONG the more than 1,000 members of Singapore's pioneer generation who were at the Istana yesterday morning was an army officer who trained the first SAF regulars and NS men, a hotelier who raised millions for the Community Chest, a teacher, and a prison warden who touched many lives.

Yet they all said they never thought they were doing anything out of the ordinary, much less lifting the next generation of Singaporeans on their shoulders, as it said in the invitations they had received to yesterday's tribute ceremony.

Instead, they were merely doing their jobs and finding solutions to things that went wrong.

Retired Singapore Armed Forces (SAF) colonel Goh Lye Choon, 73, was one of six platoon commanders who started the first national service battalion in 1967, and one of the first to train officer cadets, including a young Ng Jui Ping, who later became chief of defence force.

He also lived through some of the nation's darkest days.

In 1964, in the midst of Indonesia's Confrontation against Malaysia, Mr Goh received news that eight soldiers had been ambushed and killed by Indonesian special force agents in Kota Tinggi, Malaysia. Singapore was part of Malaysia then and three teams were sent to evacuate casualties and search for the enemy. Mr Goh volunteered to be among them.

"My old officers who worked with me in the earliest days were going to get involved without an officer commanding (them). So I volunteered to be the commanding officer, I wanted to serve with them," he said.

It took three months to complete their mission of hunting down the Indonesian enemies, 36 of whom were eventually killed.

Pioneers like him who protected Singapore during Konfrontasi were among those who came in for special mention in Prime Minister Lee Hsien Loong's tribute speech yesterday.

Mr Lee also spoke of the pioneers who served as some of the first regulars and NS men, building up the SAF and Home Team.

And he honoured heroes who fought different battles - leading community service efforts and moulding the country's young minds.

He mentioned mothers and housewives, Samsui women, farmers, traders, teachers, doctors and nurses who went to villages to teach about health and hygiene; civil servants who built homes, roads and drains; and grassroots leaders, unionists and political leaders who rallied Singaporeans to a common cause.

Veteran hotelier and former Community Chest chairman Jennie Chua, 70, said: "We didn't plan... to carry the future generations on our shoulders, like the invitation card said. We had dreams, we had fire, but we didn't expect anything... When things didn't go right, we found a way around it and we just went on."

Ms Chua, the former general manager of Raffles Hotel, was appointed ComChest chairman in 2000. She led the organisation till last year, spear-heading efforts that raised tens of millions of dollars for the needy each year.

Her involvement in community work grew out of "my experiences having gone through hard times growing up", she said.

Former Member of Parliament and school principal Wan Hussin Zoohri, 76, said of his three decades teaching Malay and history at Sang Nila Utama Secondary and as principal of Tun Seri Lanang and Mayflower secondary schools: "We went through the ups and downs of nation building in the early years and it was about educating the young. Many of the students I taught have now gone on to become leaders in their own fields, be it lawyers or engineers... it makes me happy just when they call to tell me how they are doing," he said.

"After all the years of sacrifice, this gesture is most welcome and long overdue," he said of yesterday's tribute and package.

PM Lee said the tribute party for the pioneer generation was a "modest gesture".

While it was not possible to invite the hundreds of thousands of pioneers still alive, those present represented the many individuals who had contributed to the country in various ways, big or small, he said.

Technician supervisor Ong Soh Ha, 78, has spent close to half a century involved in grassroots activities in Telok Blangah. He was also a volunteer with the People's Defence Force back in the late 1950s, and patrolled the Tanjong Pagar port to keep it safe from would-be saboteurs.

Of his volunteer and grassroots activities, he said: "I do it because I support Singapore. The Government built up our country - the roads, the buildings - and I wanted to help them as a Singaporean."

Mr Ellappan Parasuraman, 78, worked as a project engineer for ST Electronics and helped develop communications systems for the air force and navy.

He described yesterday's tribute as "wonderful" and said he was grateful for the help he will receive from the Pioneer Generation Package.

The Government's "modest gesture" also left a deep impression on retired prison officer Saman Ismail, 65. He was among the first batch of men to enlist for NS, where he learnt discipline and teamwork.

"I benefited physically and mentally. I could contribute to the defence of my country for two years," he said.

That experience of serving Singapore spurred him to join the civil service, and he spent four decades in the Prison Service. He is glad to have played a part, from his post "on-the-ground" dealing with prisoners, to shifting the focus from incarceration to rehabilitation.

Asked how he felt about the nation honouring his work, he teared and said: "I feel very honoured, very happy. After retirement, you think you have already done everything and every day is the same. Out of the blue, to think that they recognised what I have done after many years of service, it really lifted me up."




FOR ALL THEY DID

You have contributed in many ways, big and small.

As mothers and housewives, bringing up new generations of Singaporeans.

As farmers and Samsui women, traders and factory workers, putting food on the table for your families and keeping Singapore going.

As members of the Volunteer Corps protecting Singapore during Konfrontasi, or of the Vigilante Corps keeping our streets safe from saboteurs. As our earliest regulars and national servicemen, building up the SAF and the Home Team.

As doctors, treating and caring for our sick, and as nurses, working alongside them, going to villages to teach people about nutrition, hygiene and health, and to schools to screen and immunise our children.

As teachers, setting up new schools and nurturing our young. And as young officers in PWD, HDB or PUB, building our public infrastructure.

As grassroots volunteers, unionists and political leaders, rallying Singaporeans around our common cause. Thank you all and through you, thank you to all in our pioneer generation.






Pioneers' health-care package 'has right focus'
Benefits plug gap arising from lack of medical insurance, savings: Experts
By Tham Yuen-C And Charissa Yong, The Straits Times, 11 Feb 2014

WHEN Singapore's pioneer generation started working, there was no Medisave, no MediShield and no Medifund. Salaries were low and people had to retire at an earlier age.

As a result, they may not have saved enough to pay for their medical care.

Given these circumstances, the health-care benefits provided by the Pioneer Generation Package give them what they need most, said health-care and ageing experts as well as MPs yesterday.

Said Dr Ng Wai Chong, medical director of the Hua Mei Centre for Successful Ageing: "In that era, not everybody had the good fortune of getting an education.

"Even if they worked hard, they may not have earned a lot or saved enough."

So, for many like retiree S. P. Chandrashagaran, 74, the benefits come in handy. The former caretaker wears a pacemaker and has used most of his Medisave funds on his medical bills.

Mr Chandrashagaran, like most of his generation, has no medical insurance.

For these pioneers, the package Prime Minister Lee Hsien Loong announced on Sunday will provide enhanced subsidies for outpatient treatment, additional annual Medisave top-ups and help with premiums for the new national insurance scheme, MediShield Life.

The health-care benefits are to recognise their contributions in building modern Singapore.

Those who qualify must be 65 or older by the end of this year. They must also have become Singapore citizens before 1987.

Mr Chandrashagaran's situation is typical of most from the pioneer generation, as they did not have enough in their Medisave accounts to pay for insurance premiums, said MP Chia Shi-Lu, a member of the Government Parliamentary Committee for Health.

The 3M framework of Medisave, MediShield and Medifund was started only in 1984.

Those who suffer from chronic ailments and require frequent visits to the doctor will also benefit from the package, said MP Fatimah Lateef, as subsidies for outpatient treatment will be higher.

Amid the unanimous support for the package, there is, however, disagreement on whether everyone who qualifies should get the same amount of benefits.

MP Liang Eng Hwa feels it should be equally distributed to all: "This is not a social welfare assistance package, so we should not distinguish by housing type or income."

But Ms Eleanor Yap, editor of seniors' magazine Ageless Online, said well-off pioneers should give their benefits to the needy.

Similarly, Dr Kanwaljit Soin, past president of Women's Initiative for Ageing Successfully, said a minimum amount should be given to all, but with extra top-ups for the more needy.

As for the cost of the package, economist Phua Kai Hong put the likely bill at under $4 billion a year, roughly equal to Singapore's annual health expenditure.

It is still a large sum, but it will decrease each year, he added, as the number of pioneers dwindles.

Mr Liang, deputy chairman of the Finance Government Parliamentary Committee, said the annual sum would be "manageable".

"We should be able to pay for the package through revenue generated from taxes. If we continue to grow the economy to generate more revenue, then we won't have to increase taxes."





WHAT THE PIONEERS SAY


MRS MARY CHEW, 76, RETIRED ADMINISTRATIVE CLERK

"I never expected that the Government would consider what I've done a 'contribution' (to the country).

As a person, you do what you can; any reward is secondary. This is a privilege and a surprise. I've a pension so I'm fine as far as medical bills are concerned. Still, it's good to have this package to fall back on."



MR PHILIP CHEW, 78, RETIRED PUBLIC HEALTH OFFICER

"In those days, we, the pioneer generation, had very low salaries and low Central Provident Fund (CPF) (sums).

I used to pay my MediShield premiums using CPF, but since two years ago, I needed to top up with a few hundred dollars out of my pocket. Without this package's top-ups to my Medisave account (which can be used for MediShield Life premiums), maybe I could have afforded to pay my premiums for only another 10 more years.



MRS JAYAMANI CHANDRASHAGARAN, 69, RETIRED NURSE

"I am already well covered by my insurance. But not everybody is as lucky as me...

The Government should find those who are really in need and help them more. They shouldn't help everybody, some are already well-to-do."



MR JOHN MORRICE, 80, SINGAPORE ARMED FORCES VETERAN

"I get full medical benefits under my pension scheme, which covers my wife as long as I live. Once I pass on, my wife loses everything. But now with this package, at least when I die, she will be covered under that."





Who is eligible?

THE Pioneer Generation Package will be for all Singaporeans who will be at least 65 years old by the end of this year. That means they would have been born in 1949 or earlier.

Those not born here must have become Singapore citizens before 1987. This is to include all those who were citizens when Singapore became independent in 1965, or shortly after.

The reason for this is that the manual historical records of the years before 1987 are not complete with regard to registration dates of some citizens. Hence, all who became citizens before that year will be included.







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TDSR Rules tweaked to help home owners refinance mortgages

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By Melissa Tan, The Straits Times, 11 Feb 2014

THE central bank has made it easier for home owners to refinance their existing mortgages.

It yesterday widened an exemption on tough mortgage rules to include more borrowers who bought their residential properties before the total debt servicing ratio (TDSR) framework took effect in late June last year.

Mortgage consultants and banks welcomed the move, saying it was fair to those home buyers. But while some market watchers wondered whether this hinted at a relaxation of cooling measures, others said it was not a sign that the Government was easing curbs.

Under the revised rules, home owners who are refinancing the loan for the home they live in will be exempt from meeting the TDSR requirement even if they own other properties and are servicing other property loans, the Monetary Authority of Singapore said.

Previously, owner-occupiers were exempt from the TDSR only if they did not own any other property or did not have any other outstanding mortgage.

The TDSR framework stops borrowers from taking or refinancing home loans that will bring their total monthly debt repayments to over 60 per cent of their gross monthly pay. Those who bought homes as investments before June 29 last year also received a reprieve from the TDSR limit, though subject to conditions.

MAS yesterday said it would "allow a transition period" until June 30, 2017, during which borrowers can refinance loans for their investment homes above the 60 per cent limit. However, they must commit to a debt-reduction plan with their bank at the point of refinancing and must also fulfil the bank's credit assessment.

The rule changes are meant to "help borrowers ease their immediate debt-servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans", MAS added.

Mortgage consultants said borrowers will benefit from the change as some were previously stuck with their existing loans.

Mr Alfred Chia, chief executive of financial advisory firm SingCapital, said many people were tied in, which helped banks "tie down their clients".

Banks yesterday said they welcomed MAS' move. "Some borrowers with good reasons to refinance will now face less difficulty. The older home loans were not assessed with the new TDSR rules and hence the exemption... is therefore fair," said Ms Koh Ching Ching, group corporate communications head at OCBC.

But market watchers' views differed on the implications. "It could be a prelude to more relaxation of cooling measures," said real estate lawyer Lee Liat Yeang.

Taking a different view, Citi economist Kit Wei Zheng said in a note that since the TDSR rules still applied to new home buyers, "we hesitate to call this a property relaxation measure".

Apart from the TDSR, some owner-occupiers were also given exemptions from mortgage servicing ratio (MSR) rules and loan tenure limits yesterday. Those who bought HDB flats or executive condominium units before the MSR rules kicked in - which capped monthly home loan repayments at 30 per cent of gross income - are exempt from those rules when refinancing their homes, MAS said.

It added that a similar concession applies to loan tenure limits, for owner-occupied homes bought before the implementation dates for those rules. Borrowers whose loan tenures exceed the current regulatory limits can now keep the remaining tenures of their loans when they refinance.


Rise in road deaths involving heavy vehicles

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Increase of 37.5% contrasts with drop in all deaths from traffic accidents
By Joyce Lim, The Straits Times, 11 Feb 2014

SINGAPORE'S roads became safer for all users last year, except where it concerned heavy vehicles.

Deaths on the road fell by more than 5 per cent to 159, out of a total of 8,213 casualties, owing to greater enforcement against violations and outreach to vulnerable groups like elderly pedestrians, motorcyclists and pillion riders.

But fatalities from accidents involving heavy vehicles rose by 37.5 per cent, from 32 in 2012 to 44 last year.


At the release of its annual statistics yesterday, Commander of Traffic Police Cheang Keng Keong said traffic police officers had stepped up operations against such errant drivers.

As a result, recorded traffic violations committed by those driving heavy vehicles - defined as having an unladen weight of above 2,500kg - went up by 5.8 per cent, from 12,583 offences in 2012 to 13,318 last year.

Tampines GRC MP Baey Yam Keng, who has championed heavy-vehicle road safety after two young brothers were killed by a concrete mixer in Tampines in January last year, said concern remained over the spike in figures.

He said: "One key reason could be there are more heavy vehicles on the road due to more construction works around the island. With more volume, there is a likelihood that accidents involving heavy vehicles will go up.

"It could also be that drivers are stressed to make more trips, or speed on the roads to meet the tight timelines for their projects."

Last April, Mr Baey successfully banned heavy vehicles from school zones in his constituency after he got the Land Transport Authority (LTA) to allow heavy vehicles to take expressways to get to sites in Tampines.

LTA rules bar heavy vehicles with low speed limits from using expressways, to help traffic flow and for safety reasons.

A prime mover driver who wanted to be known only as Mr Wong told The Straits Times that drivers like him are paid according to the number of trips they make in a month. They try to make more trips by driving faster, said the 38-year-old, who has been in the job for over 10 years.

On a brighter note, the number of accidents ending in death and injury continued on a downward trend that began in 2010. There were 6,426 last year, down from 7,188 in 2012.

The rate of such accidents has also fallen, from more than 74 per 10,000 vehicles in 2012, to just over 66 last year. The number of accidents involving motorcycles and elderly pedestrians has also fallen.

The Traffic Police attributed this to ongoing outreach campaigns to vulnerable groups and improved road safety features at crossings, among other things.

But a small group of "recalcitrant drivers" pose a menace to others, said Assistant Commissioner of Police Cheang.

The Traffic Police have noted an increasing trend in the number of drivers issued summonses for more than one serious moving offence.

He promised a tough stance against them. "We will be firmer with our appeals, and errant motorists can expect to be suspended and lose their licences altogether if they do not improve on their driving behaviour."


Income + wealth inequality = More trouble for society

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Data and studies on the wealth gap are needed to address inequality
By Robin Chan, The Straits Times, 11 Feb 2014

MUCH attention given to inequality in Singapore in recent years has focused on income inequality. There is a good reason: Singapore’s income gap, as measured by the Gini coefficient for income, is one of the widest among developed countries at 0.478.

The Gini measures how income is distributed in a society. The closer the Gini is to 1, the more unequal the distribution of income.

To narrow this gap, the Government has made efforts to raise wages at the bottom and increase taxes on wealth at the top. Among other things, it has given cash handouts and supplemented incomes with Workfare Income Supplements for low-income earners.

It is also working with tripartite partners to boost incomes for low-wage sectors. It recently required cleaning companies to follow wage guidelines for cleaners’ starting pay.

In addition, the Government has started extracting a bigger pound of flesh from the rich through the tax system. Last year’s Budget introduced more taxes on high-end assets, including luxury cars and homes.

Some analysts are predicting more such moves to help lessen the income divide in this year’s Budget on Feb 21.

But the income gap is only one part of what separates the rich from the poor. Another – possibly more alarming – factor fuelling economic and social inequality is wealth inequality, according to a number of recent studies.

Wherefore wealth?

INCOME often refers to earnings from work, although it can include income from other sources such as rent. Wealth measures income accumulated over time, so it tends to have a cumulative effect over years. Wealth also includes assets in the form of property, stocks and inheritances. All these can grow in value separately from income.

A person with zero income can be very wealthy. A person may have $10 million in assets (and is hence considered wealthy) but can have zero income in a particular year – if he is not working and does not collect rent or dividends from his assets. Income and wealth must be taken together for a fuller picture of a household’s true economic power.

American think-tank Pew Research Centre last December published a report on wealth inequality which said: “Most researchers agree that wealth is much more unevenly distributed than income.”

It cited data showing that the top one-fifth of United States families earned about 60 per cent of all income but owned nearly 90 per cent of all wealth.

A separate report by the International Monetary Fund (IMF) last October said that the ratio of private wealth to national income in the world has more than doubled since 1970. This means wealth is growing more quickly than incomes.

“Household wealth is very unequally distributed – even more so than income,” the report said. “In advanced economies, the top 10 per cent own, on average, more than half of the wealth (up to 75 per cent in the US),” it added.

This means wealth is “arguably, a better indicator of ability to pay than annual income”, the report said.

Another reason the wealth gap is as significant as – if not more significant than – the income gap is that a build-up in wealth can become entrenched over time and is harder to redistribute.

For example, a rich family with houses worth $10 million can pass them on to their children, who may use those houses as collateral or capital to buy more property or build businesses to accumulate another $20 million for their descendants. And the cycle goes on.

So while wealth inequality has received less mention in Singapore than income inequality so far, it is arguably an even more important challenge facing our society.

Mind the gap

SO HOW wide is the wealth gap in Singapore?

There are no official numbers on wealth distribution in Singapore. But piecing together different data gives some clues.

A global wealth report released by Credit Suisse last October said Singapore’s median wealth per adult (aged 20 and above) was US$90,466 (S$114,925), which means half of Singapore’s adults had more, and half had less than that amount. But the mean wealth per adult was US$281,764. This adds up the total amount of wealth held by every adult, divided by the number of adults.

This gap between the median and the mean is one of the biggest in the rich world, according to the Credit Suisse report. It implies that much of the wealth in Singapore is in the hands of a few. Unlike the median, the mean can go up significantly if the total wealth is pulled up by a few super-rich individuals.

Indeed, the report showed that the top 1 per cent of Singapore’s wealthiest hold more than a quarter of the country’s wealth.

It also illustrated the wealth gap in another way. Some 4.4 per cent of Singapore adults have more than US$1 million in wealth, while 20 per cent have less than US$10,000, the report said.

Of the other 215 countries surveyed, only Denmark and France had both a larger percentage of adults at the very top and at the very bottom, indicating a wider wealth gap than Singapore.

What are some reasons for this vast gulf in wealth?

One could be the property price surge. This is significant given that nine in 10 households here own their homes and the home makes up half of a household’s net wealth in Singapore.

While reports from third parties such as Credit Suisse shed some light on the wealth gap, they are not comprehensive.

Associate Professor Poh Eng Hin, who is assistant dean of accountancy at the Nanyang Business School, suggests that government agencies track wealth more closely and release the data.

This could come from a combination of numbers from the Monetary Authority of Singapore, the Inland Revenue Authority of Singapore and household balance sheet data collected by the Department of Statistics.

Panel studies that track wealth of the same family or individual over time would also give a better sense of wealth inequality in Singapore, he added.

Getting a handle

INEQUALITY in wealth has an impact on social mobility. There are reasons to believe that wealth mobility could be even lower than income mobility. That is, the chances of someone from a nonwealthy family staying nonwealthy is high, the Credit Suisse report pointed out.

Also, an increase in wealth, unlike incomes, is not necessarily directly a result of work. This raises questions about how truly meritocratic Singapore can be. This is why – even though the goal for Singapore is not to equalise outcomes, but to equalise the starting opportunities in life – there is a strong economic and moral case for higher wealth taxes.

Apart from helping to reduce inequality, it can also be an efficient and effective way to raise revenue for public coffers, the IMF said in its report last October. “In principle, taxes on wealth also offer significant revenue potential at relatively low efficiency costs.”

The IMF also said increasing progressivity in property taxes is one of the best ways to tax the wealthy, which is exactly what Singapore is doing. This means taxing second and third homes more than the first, and taxing more costly properties at a higher rate.

Raising taxes is always a sensitive political and economic issue.

But with tax revenues needing a boost to match higher government spending on social safety nets – such as the recently announced Pioneer Generation Package– raising taxes on the wealthy is likely to be more effective than raising taxes on incomes alone.

Singapore should not be afraid to take the lead in this area.

Last year, Hong Kong’s South China Morning Post said Singapore’s Budget – and its imposition of higher wealth taxes – posed questions for Hong Kong’s own fiscal options: “The Singapore way may not be ours, but it does raise the question whether our top tier of wealth or income should be seen to pay more to help bridge inequality. It is a debate in which the wealthy should take part, in the interests of the city in which they prospered.”

The same can be said for Singapore. After so much focus on income inequality, it is time to kick-start a discussion on how the wealthy can contribute more to bridge inequality.


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Little India riot: Bus driver will not face charges

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He could not foresee worker running after bus or falling into its path: AGC
By Walter Sim, The Straits Times, 12 Feb 2014

THE bus driver involved in a fatal accident that sparked the Little India riot on Dec 8 last year will not face any criminal charges.

The Attorney-General's Chambers (AGC) said yesterday Mr Lee Kim Huat, 55, was not found culpable of any offence after it "carefully and extensively studied" the evidence from the Traffic Police.

The riot erupted after the private bus driven by Mr Lee ran over and killed Indian national Sakthivel Kumaravelu, 33.



A more complete picture of what happened in the minutes before he died emerged yesterday, when the AGC explained why no action will be taken against Mr Lee, who has the alias Lim Hai Tiong.

It said Mr Sakthivel, a construction worker, was "moderately to severely intoxicated" when he stumbled and fell into the path of the moving bus. Blood tests showed he had nearly three times the amount of alcohol allowed for motorists.

At 9.15pm that day, he boarded the BT & Tan bus in Tekka Lane, bound for his Jurong dormitory. When he suddenly dropped his Bermuda shorts, he was asked to get off. He complied, but then went after the bus as it moved off.

Mr Lee drove slowly through crowded Tekka Lane, heading towards Race Course Road at between 5.6kmh and 5.9kmh, the AGC said.

Mr Sakthivel caught up and touched the moving bus as he ran alongside it. Seconds later, he fell just as Mr Lee was turning left into Race Course Road and looking out for traffic from the right.

The AGC said Mr Lee could not have been expected to foresee that Mr Sakthivel had run after the bus, or that the worker would fall into its path.

Mr Lee will be a witness at the Committee of Inquiry hearing into the riot, which will begin next Wednesday.



On Monday, Indian national Chinnappa Vijayaragunatha Poopathi, 32, was jailed 15 weeks for continuing to be in an assembly after it was ordered to disperse. Cases against 24 others, who face rioting charges, are pending.

A spokesman for India's External Affairs Ministry said yesterday that India was aware of the verdict against Chinnappa in Singapore.

"We are in constant touch with the Singapore side so that all Indians are provided due process of law and legal assistance," said Mr Syed Akbaruddin.

He added that a senior ministry official will be in Singapore on Friday to discuss bilateral issues, as well as developments related to the riot.






Little India riot: First man sentenced gets 15 weeks' jail
By Hoe Pei Shan, The Straits Times, 11 Feb 2014

A CONSTRUCTION worker who refused to leave the scene of last December's Little India riot was jailed for 15 weeks yesterday.

Indian national Chinnappa Vijayaragunatha Poopathi, 32, was the first of 25 accused to be sentenced. He was originally charged with rioting but pleaded guilty last Friday to an amended charge of continuing to be in an assembly after it had been ordered to disperse under Section 151 of the Penal Code.

The amended charge came after the Attorney-General's Chambers considered the extent of Chinnappa's involvement, his guilty plea and representations made by the defence.

Deputy Chief District Judge S. Jennifer Marie, who called Chinnappa's conduct "defiant and brazen", ordered the man's imprisonment to take effect from his arrest on Dec 8.

Chinnappa, who arrived in Singapore in October last year and earned $22 a day, had ignored calls for people to disperse. He continued to walk to the Kodai Canteen eatery near the junction of Kerbau and Chander Roads where groups of rioters had been hurling projectiles at Home Team personnel on the night of Dec 8.

Chinnappa joined an assembly of about 10 others gathered outside the canteen.

Court documents said he "shouted at the canteen employees, demanding that they reopen the shops and sell alcohol to them, further heightening tensions". He refused to leave until more police arrived, and was later arrested in Kerbau Road.

Deputy Public Prosecutor Sellakumaran Sellamuthoo urged the court to jail Chinnappa for at least four to six months, arguing that the sentence had to reflect the magnitude of the night's disorder and serve as a deterrent.

The riot - the worst violence in Singapore in more than four decades - left 49 Home Team officers injured and 23 emergency vehicles damaged.

Judge Marie imposed a 15-week sentence, which was close to the three months proposed by the defence, because she was "mindful that consideration of general deterrence be tempered by proportionality in relation to the severity of the offence committed as well as by the... culpability of the offender".

She added that Chinnappa had not been in the immediate vicinity of the riot's eruption in Race Course Road, nor had he been violent. He had also not caused any damage or impeded rescue work.

Defence counsel Sunil Sudheesan, who said the sentence was "quite fair", noted that his client had already spent about eight weeks in remand and could be released within a week on the basis of good behaviour.

Mr Sunil added: "He feels regret for his actions... He just wants to get on and go home."

Chinnappa could have been given up to two years' jail and/or a fine. Under a rioting charge, he would have faced up to seven years' jail and caning.

A second pre-trial conference has been set for the cases against the other 24 Indian nationals facing rioting charges.


More ex-inmates reoffend within 2 years of release

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Increased community efforts, tougher laws in the pipeline to stem rising figures
By Nur Asyiqin Mohamad Salleh, The Straits Times, 12 Feb 2014

MORE community involvement and tougher measures are in the pipeline to try to deter former inmates from reoffending.

The challenge was laid out yesterday with 2013 figures showing that 27.4 per cent of inmates released in 2011 committed another offence within two years of leaving jail - up from 23.6 per cent for those freed in 2010.



While these rates have been relatively stable over the years, recidivism among inmates in drug rehabilitation centres continues to rise.

The rate hit 31.1 per cent for the 2011 cohort, a rise of 3.6 percentage points from 2010, according to the Singapore Prison Service (SPS) yesterday.

An SPS spokesman said: "Recidivism rates fluctuate on a yearly basis and are dependent on various factors, such as the willingness of the inmate to change, and community or family support."

Tough amendments were made to the Prisons Act last month to deter former criminals from slipping back into crime. These include amendments to introduce the Conditional Remission System, which targets inmates released on good behaviour. If they commit another crime while in remission, they will incur an additional sentence over and above the one imposed for the new offence.

Another new scheme - the Mandatory Aftercare Scheme - focuses on high-risk offenders by placing them on programmes like halfway-house stays and home supervision. They can also be subjected to curfews and electronic monitoring.

Both amendments are likely to take effect this year.

The SPS is also providing additional vocational training opportunities, which are helping more inmates secure jobs even before their release.

Superintendent of Prisons 1A Abdul Karim Shahul Hameed said the first six months after inmates are released are critical in determining whether they will reoffend. "Do they have a place to stay? A job? Necessary money to survive? Our focus has always been to do more in this area," said Mr Karim, who is also deputy director of the SPS' reintegration and community collaboration services. "And we're really looking at doing more to get community support and more volunteers to come around and help."

That help is coming with community efforts increasing. The number of volunteers involved in the Yellow Ribbon Community Project - a grassroots-led initiative started in 2010 to help inmates and their families - has grown in the past few years.

Volunteer Edna Tan, 52, said former inmates who do not find acceptance on release can be swayed into turning to crime once more.

Ms Olivia Shepherdson, SPS' senior assistant director for community-based interventions services, said inmates often feel guilty about not being there for their family. "Knowing their family is being cared for by community agencies will help them be assured and focus on doing their sentence," she said.







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More SMEs tapping SPRING's schemes

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Agency helped 3,440 companies launch 3,270 projects last year
By Yasmine Yahya, The Straits Times, 12 Feb 2014

AS COMPANIES became increasingly aware they could not simply conduct business as usual amid a restructuring economy, more turned to SPRING Singapore for help last year to up their game.


Overall, these companies embarked on 3,270 projects, 10 per cent more than in the year before.

About 80 per cent of the companies that benefited from SPRING's aid last year were micro and small enterprises, each with an annual turnover of less than $10 million.

By tapping on SPRING's schemes, these companies received help with a wide variety of projects, from raising productivity to commercialising their business ideas and accessing overseas markets.

SPRING also approved more than 4,300 loans worth $1.25 billion last year, slightly down from 2012, when 4,500 loans worth $1.3 billion were given out.

Overall, however, SPRING's efforts generated higher value-add and helped to create more jobs last year than the year before.

It churned out $6.16 billion in economic value-add, up from $5.9 billion in 2012, and created 21,000 jobs, up from 19,000 in the year before, SPRING said at its annual year-in-review briefing yesterday.

SPRING chief executive Tan Kai Hoe said the economic outlook and feedback from companies indicate that this year could be an easier one for businesses.

Still, SPRING will not let up on its efforts to help even more SMEs restructure, he added.

"I think SMEs are now aware of productivity... We are beginning to see some action, but it will take some time to see results. We hope to see concrete results in the next couple of years," he said.

Some of the projects SPRING supported last year were rather straightforward affairs.

Eng Soon Dry Bean Curd Manufacturing, for example, received funding support from the Capability Development Grant to help it buy a machine that automated its packaging process.

Now, the company needs just three workers at a time to oversee this process, down from six previously. Output has also risen 30 per cent, and the risk of product contamination has decreased.

"Most of the employees who had been doing this job were foreigners. With the tightening of foreign worker rules, we felt that in the long run, it would be better if we invested in a machine now, instead of continuing to rely on manpower," said production manager Tan Jun Long.

SPRING also helped in more complex projects, some involving multiple companies at a time.

Among them was one that benefited from the Collaborative Industry Project scheme. It was helmed by department store operator C.K. Tang, which tied up with five of its suppliers, all SMEs, to implement an IT system to raise productivity for all six partners.

This system enables a smooth exchange of sales data between C.K. Tang and the suppliers, and the SMEs can easily monitor how well their products are selling at Tangs department stores, and thus manage their inventory and replenish stocks quickly.

Since the system's implementation in September, the five SMEs have enjoyed up to a 10 per cent rise in sales and 20 per cent reduction in manual labour as sales and inventory data is now processed digitally rather than on paper.

With the twin challenges of rising costs and labour shortages pressing on them, a lot more SMEs also turned to self-help guides. SPRING's online toolkits, which are simple guides on how to improve things such as financial management, productivity and customer service, were downloaded 29,000 times last year, up 76 per cent from 2012.

This year, SPRING will focus on stepping up its efforts to position SMEs for growth and streamlining its existing schemes to ensure that they can cater to as many SMEs as possible, said Mr Tan.

"We are hoping to make sure that our schemes are flexible enough to be able to support all the SMEs. At the margins, where we find small gaps that we may not have covered, we will look at some of those."


MacDonald House attack still strikes home

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Those old enough remember shock when iconic building was bombed
By M. Nirmala, The Straits Times, 12 Feb 2014

THE bombing of MacDonald House by two Indonesian saboteurs might have taken place 48 years ago, but that event long ago casts a shadow that still falls over today's Singapore.


Those old enough remember the shock of the event when the pair of Indonesian marines bombed the Orchard Road building on March 10, 1965.

At 3.07pm, a bomb went off at the 10-storey building.

The explosion ripped off one lift door and shattered windows right up to the ninth floor. The wall separating the staircase and the adjoining room of the Hongkong and Shanghai Bank housed in the building was completely demolished, exposing a view of the carpark on the other side of Orchard Road.

It was raining and Mrs Rosie Heng of Malaya Borneo Motors in the building thought the explosion was a loud thunder clap, according to news reports then.

On the ground floor, plaster and bricks rained on bank employees busy closing their accounts.

After the blast, office worker Lim Chin Hin, 45, wiped the blood off his face, picked up his spectacles which had been knocked off, and groped his way out of the room filled with twisted steel.

Thirty-three people were injured. Three people died.

The bodies of Mrs Elizabeth Suzie Choo, 36, private secretary to the Hongkong and Shanghai Bank manager, and Miss Juliet Goh, 23, a clerk in the bank, were found buried in the rubble. The third victim, Mr Mohammed Yasin Kesit, 45, a driver, slipped into a coma after the blast, and did not come out of it.

Recalling the incident, Mr Barry Desker, dean of the S. Rajaratnam School of International Studies, said: "At that time, MacDonald House was an iconic building as it was the tallest in Orchard Road. The other buildings were single- or double-storey buildings and the land at Ngee Ann city was a burial ground."

The choice of MacDonald House for the bombing was significant as it was about 1.4km from the Istana, the official residence of the President of Singapore.

Mr Lee Khoon Choy, now 90, was even more directly involved. Singapore had caught and tried the two Indonesian saboteurs, Harun Said, 21, and Osman Mohamed Ali, 23.

They were convicted of murder and hanged in 1968.

Tempers in Indonesia were raging after Singapore turned down appeals for clemency from President Suharto.

Mr Lee, who became ambassador to Indonesia in 1970, used his understanding of Javanese culture to pave the way for smoother ties.

The veteran diplomat persuaded then-Prime Minister Lee Kuan Yew to do two things on an official visit to Indonesia in 1973.

One was to wear the Indonesian attire of a batik shirt, a gesture that surprised his hosts. The other was for PM Lee to scatter flowers on the graves of the two dead men.

The following year, President Suharto visited Singapore, in a further sign of the strong ties developing between the two countries.

What is needed now, said Mr Lee Khoon Choy, is for today's leaders and diplomats to make a similar gesture to soothe wounded feelings.

Singapore leaders have raised their concerns over the naming of an Indonesian frigate KRI Usman Harun after the two bombers.

But Indonesian leaders are sticking to their stand that their decision is final and in line with the country's tradition of honouring heroes. They also say that the ongoing row will not affect bilateral relations.

Mr Lee Khoon Choy believes the recent row is the work of either a group that is "ignorant of history" or a group of extremists.

Asked whether Mr Lee Kuan Yew's act of scattering flowers could be seen as Singapore apologising for executing the bombers, he said no.

"The flowers were scattered as the Javanese believe that the souls of the dead will be pacified through this gesture," he said.

"It was a matter of Singapore showing its big heart. It said 'I forgive you'. But that doesn't mean 'I approve of your bombing of MacDonald House'.

"Don't link the two events, as Singapore, and countries that respect the rule of law, cannot allow terrorists to become heroes."

The two saboteurs had arrived in Singapore from Java at 11am on that fateful day, wearing civilian clothes.

They had been instructed to bomb an electric power house but, after lunch, they headed to MacDonald House.

They placed a blue travelling bag containing explosives near the lift of the mezzanine floor of the building. After lighting the fuse at 3pm, they boarded a bus and fled the scene.

Three days later, a bumboat pilot found the two men in Singapore waters, holding on to a floating plank. The vessel they had been travelling in had capsized.

The bumboat pilot rescued them and handed them to the marine police.

When captured, the pair were in civilian clothes, not army uniforms. This became an issue during their trial.

They claimed to be prisoners of war, but Senior Crown Counsel Francis Seow said they were merely "mercenary soldiers" who had been paid $350 to carry out a particular assignment.

As they were in civilian clothes and had targeted a civilian building, the men were tried for the murder of the three people who died in the blast.

They were sentenced to death on Oct 20, 1965.

For Mr Desker, the bombing still holds lessons for Singapore today. Now, as then, Singapore remains vulnerable to such an attack.

MacDonald House, built in 1949, was gazetted a national monument on Feb 10, 2003.

Today, it houses various offices, including a large Citibank branch.





WHY IS SINGAPORE SO CONCERNED OVER INDONESIA’S NAMING OF A NAVY SHIP? THE STRAITS TIMES RECOUNTS THE EVENTS AT THE TIME OF KONFRONTASI AND WHAT IT MEANS FOR RELATIONS BETWEEN THE TWO COUNTRIES.



Series of explosions in Singapore
The Straits Times, 12 Feb 2014

"KONFRONTASI" or confrontation refers to the period between January 1963 and August 1966 when Indonesia used military, economic and diplomatic means to break up the newly formed Federation of Malaysia of which Singapore was a part.
Indonesia broke off ties with Malaysia and went on to instigate its nationals to infiltrate and sabotage key installations in Malaysia and Singapore.

One attack carried out in Singapore was on March 10, 1965, at 3.07pm, when a bomb exploded at MacDonald House, Orchard Road's tallest building at that time. A lift door was blown off. Windows of buildings 100m away were shattered, as were windscreens of cars across the road.

Three people died and 33 were injured. Two Indonesian marines, Harun Said and Osman Mohamed Ali, were caught, tried and hanged for murder.

Other incidents included an explosion on April 13, 1964, which caused extensive damage at 21 Jalan Rebong off Changi Road, killing a woman and her daughter and injuring six.

Three days later, on April 16, another explosion completely wrecked a telephone booth at the junction of Jalan Betek, Jalan Timun and Jalan Badarah. Four men and a woman were injured.

Indonesian saboteurs are reported to have caused at least 42 explosions in Singapore from September 1963 to May 1965. In August 1966, Konfrontasi ended with the signing of a peace treaty between Malaysia and Indonesia. The toll in Singapore: seven killed and more than 51 others injured.

Coming as it did soon after the racial riots in July 1964, the bombing of MacDonald House cast a dark shadow over the fledging country's future, a situation made worse after the island was expelled from the Malaysian federation in 1965.

Independent Singapore, however, went on to become a successful city.





The days when bombs went off in my kampung
By Salim Osman, The Straits Times, 12 Feb 2014

WHEN a bomb went off one Sunday night in April 1964 at Jalan Rebong in Kampung Ubi, the impact was so large that I could feel it from my home in Geylang Serai a kilometre away.

A 50-year-old Malay widow and her only child, a 19-year-old schoolgirl, who were at a neighbour's house were killed when the bomb exploded nearby.

Three days later, another bomb went off about a kilometre away, at the junction of Jalan Betek and Jalan Timun, at a public telephone booth. Five people were injured, including a 62-year-old Chinese woman and three Malays who lived near the booth.

As a 12-year-old boy who had just entered secondary school, I was curious as to why a bomb had gone off in my kampung area.

I cycled to Jalan Betek, the scene of the second explosion, to see the mayhem. Only the concrete base of the phone booth was left; the booth and its roof had been blown to bits. The house next door was in shambles, its sitting room badly damaged.

Months earlier, terrorists had planted a bomb at Katong Park in front of the Ambassador Hotel in Meyer Road. That park by the beach was a favourite picnic site for many of us who lived in Geylang Serai.

The series of bombings in Singapore occurred at the height of Indonesia's "Konfrontasi" - "Confrontation" - against the Federation of Malaysia formed in September 1963. Singapore was then a part of this federation.

We were told that it was the work of Indonesian soldiers who had infiltrated the island to launch a campaign of terror in line with its "Ganjang Malaysia" - "Crush Malaysia" - campaign against the fledgling federation.

It was an act of military aggression without a formal declaration of war against Malaysia, which then President Sukarno considered a "British puppet".

For the Malays in my kampung, Konfrontasi was a campaign of terror against civilians. The series of bombings against targets such as telephone booths, public parks and beaches targeted ordinary people.

Soon, people were afraid to visit these places.

The biggest attack was the bombing in March 1965 of MacDonald House in Orchard Road, which killed three civilians and injured 33 others.

Indonesian marines Osman Mohamed Ali and Harun Said were arrested, tried and convicted of murder and hanged.

Konfrontasi was a source of disappointment to my late father, who was Javanese, and his Javanese friends.

They had come to see Sukarno as a leader who had united the sprawling archipelago, and were disappointed that he had launched the campaign of terror against Malaysia, a newly emerging nation in the Nusantara, the Malay world.

Konfrontasi also became the first test of our loyalty to Singapore - and to then Malaysia of which we were a part.

The Indonesian soldiers who infiltrated Singapore to carry out the bombings were all of Malay stock. Some could have well been relatives of Malays who had migrated to Singapore from Java before the Japanese invasion in 1942.

I recall the swirl of talk in the kampung then: What should the Malays do if the saboteurs came to them to seek refuge? Should we provide food and shelter, or should we surrender them to the authorities?

Those conversations inevitably ended with the same decision: To hand over any infiltrator or wandering saboteur to the authorities.

This was no easy decision, given our kinship ties.

My father's only sister lived with her family in Indonesia. But he lost contact with her because of Konfrontasi; they renewed contact years later, in 1971.

All that was over four decades ago. Now, the Indonesian military plans to name a navy ship after the two marines who had bombed MacDonald House and struck terror in Singapore.

We may not be the families of those who died or were injured in the bombing, but as Singaporeans, we feel outraged by the move to honour two terrorists by naming a vessel after them.

According to Indonesian Armed Forces chief General Moeldoko, the decision to name the ship was made in December 2012 with no intention to stir emotions.

But surely there are hundreds of Indonesian heroes whose names can be chosen for the vessel. Why pick the names of the two marines, when this would only open up old wounds?





Survivor of 1965 MacDonald House bombing tells his story
By Rennie Whang, The New Paper, 12 Feb 2014

When a bomb went off at MacDonald House on March 10, 1965, Mr Zainal Kassim (above), then 26, was badly injured.

He said: “I was bleeding all over... My head had swelled to double its size, like a watermelon."



Last week, he was stunned to hear news of Indonesia naming a navy ship after the two men responsible for the attack.

Mr Zainal, now 75, said: “I was hurt because these men planted a bomb and other people were killed and injured. These are innocent people.”

Three people died and 33 were injured in the incident.



KRI Usman Harun Issue

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Be sensitive to Singapore's feelings. This is the message from two former diplomats, responding to Indonesia's decision to name a naval vessel after the two marines who bombed MacDonald House in 1965.

Sensitivity is a two-way street
By Bilahari Kausikan, Published The Straits Times, 13 Feb 2014

INDONESIAN Foreign Minister Marty Natalegawa has told the Singapore media that "no ill intent was meant, no malice, no unfriendly outlook", when Indonesia named a new frigate KRI Usman Harun, after two Indonesian marines executed in 1968 for a 1965 terror attack on MacDonald House in Orchard Road that killed three and injured 33.

Singaporeans will no doubt be happy to know this. But I am afraid that the Foreign Minister entirely missed the point.

The issue is not Indonesia's intentions. It is something far more fundamental. Indonesians never tire of reminding Singapore that we should be "sensitive" and "neighbourly". But Indonesians do not seem to believe that they should be equally "sensitive" to their neighbours. "Sensitivity" and "neighbourliness" are to them a one-way street.

These are the facts: Between 1963 and 1966, then Indonesian President Sukarno waged a "Konfrontasi" (confrontation) of terror attacks and military action to "Ganjang (crush) Malaysia". Singapore was part of the Federation of Malaysia formed in September 1963 until August 1965 when it became independent.

In Singapore alone, there were some 40 bomb attacks over about two years. Most of the targets could by no stretch of the imagination be considered legitimate military objectives. They included schools, hotels, cinemas, bus depots, telephone booths and residences.

MacDonald House was an office building. The victims of that bombing were civilian office workers. Relatives of the victims are still alive. Older Singaporeans still remember the fear and uncertainty of that period. Are we not entitled to some "sensitivity"?

The two who planted the bomb, Osman Mohamed Ali and Harun Said, may have been Indonesian marines, but were in civilian clothes and sneaked into Singapore for terror attacks against civilians. They were found guilty of murder and executed after they had exhausted all legal appeals.

What would Indonesians think if the Singapore Navy were to go crazy and name one of its warships after Noordin Top, the terrorist behind bombings in Jakarta in 2004 and 2009 and who may have assisted in the 2002 Bali bombings?

The late President Suharto sent a personal emissary to plead for clemency for the two marines. But they had been convicted of murder after due legal process. On what grounds could Singapore have pardoned them?

To have done so would have been to concede that the small must always defer to the big and irretrievably compromise our sovereignty.

After Singapore refused the clemency appeals, a Jakarta mob then sacked our embassy, burned our flag and threatened to kill our ambassador.

There were actually four Indonesians on death row in Singapore in 1968 for crimes committed during Konfrontasi. Two others, Stanislaus Krofan and Andres Andea, had their sentences remitted after pleas by the Indonesian government and were sent back to Indonesia. The bomb they planted did not kill anyone.

A few years later in 1973, Singapore's then Prime Minister Lee Kuan Yew placed flowers on the graves of the two executed marines, thus bringing the episode to a close.

Both actions - standing firm on fundamental principle even at the risk of conflict and making a gracious gesture once the principle had been established - were equally important in setting the foundations of the relationship Singapore today enjoys with Indonesia.

The origins of Konfrontasi are complex: the political tensions and contradictions within Indonesian society of that time, Sukarno's fiery personality and grandiose ambitions for "Indonesia Raya" (greater Indonesia), among other things.

Self-righteous nationalism

THESE conditions are not likely to be repeated. But as the respected American scholar of Indonesia, the late Dr George McTurnan Kahin, wrote in 1964 while Konfrontasi was still ongoing, that episode of aggression towards its neighbours was the consequence of the "powerful, self-righteous thrust of Indonesian nationalism" and the widespread belief that "because of (the) country's size… it has a moral right to leadership".

Time may have given a more sophisticated gloss to this attitude but has not essentially changed it.

This attitude lies, for example, behind the outrageous comments by some Indonesian ministers during the haze last year that Singapore should be grateful for the oxygen Indonesia provides; it is the reason why Indonesians think Singaporeans should take into account their interests and sensitivities without thinking it necessary to reciprocate.

Indonesians and Singaporeans need to understand this.

Of course, Indonesia has the right to name its ship anything it pleases, as some Indonesians have argued. But that is beside the point.

Why choose a name that is bound to cause offence? That the Indonesians did not even think of the implications, as Foreign Minister Marty's comments to the media would suggest, is exactly the point.

I do not expect the Indonesians to change the name of the ship. But would any Indonesian leader be prepared to emulate Mr Lee Kuan Yew and place a wreath at MacDonald House?

It was not Singapore that started this incident. And Singapore has no interest in seeing relations with a close neighbour strained.

But Singaporeans cannot let this episode pass without signalling our displeasure.

The foundations laid for the bilateral relationship in 1968 and 1973 are still valid. Mutual respect is the essential condition for good relations.

My father was ambassador to Indonesia when Singapore's embassy was sacked. He was on leave in Singapore when the decision was taken to turn down the appeal for clemency. He went back to Jakarta to be at post when the execution took place.

After the mob attacked our embassy, he and all our staff remained at post, operating from Hotel Indonesia.

I was a schoolboy studying in Singapore at that time. But shortly after the attack, he summoned me to Jakarta to join him and my mother. I now realise that it was to show that we were not intimidated. It was my first lesson in diplomacy.

I spent a boring month holed up in Hotel Indonesia.

The only "entertainment" was the daily demonstrations in the square in front of the hotel, which included a seemingly endless stream of red-bereted KKO (Navy Commando Corps) commandos marching by, shouting threatening slogans.

But after a while, I realised that it was only a few units marching round and round in circles because I came to recognise the faces of individual soldiers. And that too is a lesson that Singaporeans should understand.


The writer is ambassador-at-large at the Ministry of Foreign Affairs, where he was, until May last year, its permanent secretary.






Why the past matters
By Barry Desker, Published The Straits Times, 13 Feb 2014

AT NOON on Saturday, the blast of air raid sirens will be heard again. It is a reminder that the fall of Singapore to the Japanese imperial army occurred on this date, Feb 15, in 1942. This year, for the second year, the Singapore Armed Forces will hold the Total Defence Commemoration Ceremony at the War Memorial Park on Feb 15.

As part of this event, recruits from the 3rd Battalion Singapore Guards will be handed their rifles in a weapon presentation ceremony at 6.20pm. This recalls the exact time of the surrender of allied forces to the Japanese at the old Ford Motor Factory on Upper Bukit Timah Road.

For a generation of Singaporeans now passing away, the Japanese occupation was the single most significant formative experience of their lives. The sense of helplessness, the fear of a new set of colonial overlords, the loss of close relatives and the dislocation of families resulted in many a story being told over dining tables as Singaporeans were growing up.

People in Singapore did not see themselves as one people in 1942. At most, you took care of those nearest and dearest to you. Beyond the family, clan and ethnic loyalties were probably most significant.

By contrast, over the past 50 years, there has been a gradual coming together of Singapore society. There is a sense of nationhood and an identification which goes beyond clan, race, language or religion.

Ties are emerging which link Singaporeans wherever they are, even if it is Singlish, celebrating Chinese New Year with lo hei, eating roti prata or satay and complaining about the educational system. But shared perspectives go beyond food or celebrations. We are now a more resilient society, with the ability to withstand challenges and to respond effectively.

Today, many Singaporeans have little exposure to riot, revolution and mayhem. It is difficult to believe that Singapore formed part of a region which was seen as the Balkans of Asia, a cockpit of war and conflict in the 1960s.

The Vietnam War spilled over into Laos and later Cambodia, while Malaysia, Thailand, the Philippines and Burma, as it then was, were confronting major communist insurgencies.

A turbulent neighbourhood

NEVERTHELESS, Singaporeans are reminded from time to time that they live in a turbulent neighbourhood. The events of the past few days are one such reminder. Singapore reacted strongly to Indonesia's decision to name a naval vessel after Osman Mohamed Ali and Harun Said, two Indonesian marines who were executed by Singapore in 1968 for the MacDonald House bombing of March 1965. Three people were killed and 33 injured.

While the Indonesian armed forces appear to be seeking to limit the fallout resulting from the naming of the ship, there have been populist moves by politicians seeking to build their base as the April elections approach.

The MacDonald House bombing was the most serious incident in Singapore during Indonesia's Confrontation with Malaysia, an undeclared war from 1963 to 1966 which saw several hundred casualties across the archipelago. It included Indonesian paratroopers landing in Labis and seaborne landings in Pontian, as well as cross-border raids in East Malaysia. Singapore also faced a series of bomb attacks mounted by infiltrators.

The Indonesian decision on the naming of the ship was a surprise. It revived painful memories of an Indonesia which sought deference from its neighbours and was prepared to use force to implement its desires.

Singaporeans thought such memories had been banished by Indonesia's role in building Asean. In the 1960s, Indonesia sought to stride the global stage even as it antagonised its neighbours. Its leaders from Suharto onwards, however, have sought to increase their regional influence by more peaceful means.

Today, Jakarta's insensitivity towards its neighbours could have a costly impact on Indonesia's desire to play a role as a rising middle power in global affairs.

Most Singaporeans thought the MacDonald House bombing had receded into history, especially after then Prime Minister Lee Kuan Yew sprinkled flowers on the graves of the two Indonesian marines. He did this at the Heroes Cemetery in Jakarta in September 1973 during his first visit to Indonesia since independence, a move which led to Mr Suharto's first state visit to Singapore in 1974.

What this latest incident reveals is that in times of stress in bilateral relations, old grievances come to the fore.

In Indonesia, social media sites in recent days have gleefully referred to Singapore as a little red dot. They accuse Singapore of benefiting from Indonesia's travails and allege that Singapore provides shelter to corruptors and capital fleeing the country.

Bilateral relations have been smooth, but there is always a risk that Indonesia's highly competitive political system could lead nationalist politicians to stoke popular sentiments for domestic political gain.

For 30 years, when Indonesia was under the leadership of President Suharto, Singapore enjoyed excellent relations with Indonesia.

But with today's more democratic system, Indonesian leaders have to take greater account of public sentiments. Inevitably, this will lead to periodic tensions in bilateral ties. Fortunately, they have generally been well managed by Mr Suharto's successors.

While Singapore has prospered and now has an enviable standard of living, the island remains vulnerable as a city state. Creating a sense of security is vital as it underpins Singapore's economic prosperity, social equilibrium and political stability.

Events such as the commemoration of Singapore's surrender in 1942 remind us of Singapore's past experiences and raise awareness about the challenges that Singapore could face in the future.

In the same way, the response to the ship-naming incident highlights that just as Singapore is expected to be sensitive to its neighbours, there is also a need for them to be alert to issues which have caused unhappiness to Singaporeans in the past.

As we approach the 50th anniversary of Singapore's independence, Singaporeans should remember the troubled history of foreign invasions, communist subversion and communal riots that undermined our stability and well-being, and tested the unity of our forefathers.

With confidence born of a growing sense of shared values and identity, Singaporeans should also reflect on how much better prepared the country is today to face the challenges of the future.


The writer is the dean of the S.Rajaratnam School of International Studies, Nanyang Technological University. He was Singapore's ambassador to Indonesia from 1986 to 1993.






A more confident and difficult Indonesia
In the 1960s, a rising Indonesia chose a way of confrontation and conflict with its neighbours. The region is watching how Indonesia today relates to its neighbours, amid a bilateral row with Singapore over Indonesia's act of naming a navy ship after two soldiers executed for a bomb attack in Singapore.
By Hugh White, Published The Straits Times, 12 Feb 2014

IT IS not surprising that Singaporeans should be disconcerted by Jakarta's decision to name a new navy frigate in honour of two Indonesian marines executed in Singapore for crimes of terrorism.

Most obviously, of course, there is understandable concern about the feelings of people with family and friends who were among those killed in the bombing of MacDonald House in March 1965. This was, after all, an atrocious crime. But perhaps more importantly, it is an uncomfortable reminder of a difficult and dangerous period in Indonesia's relations with its neighbours.

And this reminder comes at a time when questions about Jakarta's future regional policy are inevitably being raised by the profound economic and political transformations under way in Indonesia itself, and in the wider East Asian region.

What kind of neighbour will a wealthier, more powerful and more democratic Indonesia be for us in the more complex, more contested and potentially more dangerous East Asia of the Asian Century?

For Singaporeans, the names Usman and Harun are reminders of the time of Confrontation in the early to mid-1960s. Two Indonesian marines, Osman Mohamed Ali and Harun Said, were convicted of the bomb attack that killed three and injured 33 in 1965.

In those years - the years of "living dangerously" - President Sukarno tried to take advantage of Cold War rivalries between America and China to expand Jakarta's power and influence over its neighbours, and he was prepared to use terrorism and military intimidation to achieve his ends.

Everyone in our region, Indonesian and non-Indonesian alike, owes a huge debt to President Suharto for his wisdom in abandoning his predecessor's adventurism after he took over from Sukarno, and for his skill in transforming the basis of Indonesia's relations with its neighbours from bullying and intimidation to trust, respect and cooperation within the Asean framework which he did so much to promote.

Of course, the same can be said for his counterparts among Indonesia's neighbours. Nothing typifies the tact, forbearance and statesmanship that helped to build stable relations between the giant Indonesia and its smaller neighbours so vividly as Singapore's then Prime Minister Lee Kuan Yew's famous gesture of sprinkling petals on the graves of the two executed marines in Jakarta's Kalibata cemetery.

It was a remarkable gesture, only five years after they had been executed by his government. Mr Lee no doubt understood why it was important for these men to be honoured by the country they had served, even after the policy they had carried out had been repudiated, and why it was important for him to do so too, painful though it must have been for him. This was the kind of statesmanship that turned South-east Asia, in a few short years, from one of the world's most turbulent regions into one of its most peaceful.

But that is now a long time ago.

Today, a new set of leaders faces a new set of challenges in managing our region's relations, and they do it in very different circumstances.

Indonesia today is not the country it was under Suharto's New Order. For 15 years, it has achieved remarkably steady economic growth, even without the major reforms that would make such a difference to its ability to attract investment and realise its immense potential.

Indonesia today is again a rising power in the world, as it was under Sukarno, but built this time not on Sukarno's soaring revolutionary rhetoric, but on the much more durable foundation of solid economic performance.

How it will choose to use this power depends on the new generation of rising Indonesian political leaders, and how they can shape and respond to the popular will through Indonesia's rambunctious version of democracy.

Where will this lead?

Indonesia's neighbours have been very fortunate that since Suharto fell 16 years ago, his successors have stuck to the broad directions he set for Indonesia's regional policy. They have resisted the pressures that inevitably arise in any democracy to promote and exploit jingoism and xenophobia for domestic political advantage.

In the region, many will be watching with great interest to see whether the leading candidates in this year's forthcoming presidential election show the same restraint. It would be unwise to take it for granted that they will.

Even if they do, none of Indonesia's neighbours can assume that its foreign policy will remain essentially unchanged over the coming years.

It will seek to redefine its regional role as its relative wealth and power grow, and as the region itself changes under the influence of the rise of China, the emergence of India, and the inevitable implications for the roles of America and Japan.

No one should be surprised if we see over the coming years the emergence of a more confident, assertive Indonesia, more diplomatically and strategically active on the regional stage, and working not just through the medium of Asean, but increasingly as a key independent power in its own right.

There is no reason to assume that such an Indonesia would be threatening to neighbours like Singapore or Australia. But equally, no one should be surprised if this more confident Indonesia is a little harder to deal with, less willing to compromise and more inclined to assert what it sees as its interests.

In a very different context, Australia has seen this new assertiveness in its difficulties with Indonesia over intelligence revelations and the management of asylum seekers in recent months.

Unlike Singapore in the present case, Australia bears much of the blame for these problems, but any long-term observer of the Australia-Indonesia relationship cannot help but be struck by the greater firmness with which Indonesia is responding to these disputes.

Wherever the blame lies on particular issues, the rest of the region as well as Indonesia itself will need to learn to handle better the realities and sensitivities.


The writer is professor of strategic studies at the Strategic and Defence Studies Centre, Australian National University.






Hard-won relations, so quickly forgotten
The decision to name an Indonesian warship after two bombers who attacked Singapore in 1965 undermines decades of effort to build military ties
By Winston Choo, Published The Straits Times, 14 Feb 2014

IT WAS about two years after I was commissioned as an officer in 1961 that Konfrontasi broke out.

Konfrontasi, or the "Crush Malaysia" campaign, launched by then Indonesian President Sukarno in 1963 to oppose the formation of the Federation of Malaysia, saw Indonesian troops engage in raids, bomb attacks and acts of subversion across the federation states.

At that time, Singapore was part of the Federation of Malaysia, and a target.

In 1964, I was sent to Sebatik Island, south of Sabah, and later, to the Kota Tinggi area in southern Johor as part of the 1st Battalion Singapore Infantry Regiment (1 SIR) to repel Indonesian infiltrators.

Those of us in 1 SIR did not suffer any casualties in our fights. However, our comrades in 2 SIR in Kota Tinggi were less fortunate, and several of them were killed. These are painful memories that can never be erased, particularly for those of us who have lived through the conflict.

In Singapore, at least 42 bomb explosions occurred, culminating in the bombing of MacDonald House that killed three people and injured 33 others on March 10, 1965.

It is crystal clear to me as a former military officer that such attacks - conducted by non-uniformed military personnel and directed at non-military targets, resulting in the loss of innocent civilian lives - were clearly illegal under the laws of armed conflict and went against every principle that I stood for.

It was thus with surprise and immense disappointment that I read about Indonesia's decision to name a warship after the two men responsible for bombing MacDonald House. Despite protests from Singapore, Indonesia has decided to stick to its decision.

When the perpetrators of the bomb attack were later executed in Singapore on Oct 17, 1968, relations between Singapore and Indonesia were fraught with tension and unease.

It was only years later that then Prime Minister Lee Kuan Yew sought to bring closure to the difficult episode during his trip to Indonesia in 1973.

People may have forgotten, but when then President Suharto visited Singapore in return in 1974, he signalled a major change in attitude towards Singapore by publicly accepting Singapore as an equal, independent state.

This set the tone for Singapore and Indonesia to move on and build a normal, healthy bilateral relationship that benefited both sides.

In the years since, our two countries have cooperated in many areas of mutual benefit, including in trade and investment, and military cooperation, as well as in Asean.

Hard-won relations

BECAUSE of this healthy state of affairs, in my 33-year career in the Singapore Armed Forces (SAF), I have had the good fortune to build many strong and close friendships with many TNI (Tentara Nasional Indonesia, or Indonesian National Armed Forces) counterparts, including the TNI leadership.

From my personal experience, this episode of naming a warship after the two bombers of MacDonald House which caused the death of innocent Singaporean civilians is not characteristic of the way the TNI would have handled matters back in my time.

It was clear to me that both sides understood the importance of maintaining a good degree of understanding and stability between our militaries, as a ballast to Singapore and Indonesia's bilateral relations, which may see ups and downs at the political level.

From a point before 1974, when the SAF and TNI hardly had any bilateral interactions, we took careful and deliberate steps, and worked hard to build up our ties to a level where our military leadership could easily pick up the phone and call each other.

This helped greatly in reducing any potential misunderstandings, as our commanders were able to consult in private and resolve sensitive issues quickly before things got out of hand.

Later, the close relationship saw an expansion of military-to-military cooperation, leading to more bilateral exercises and joint naval operations to keep our contiguous waters safe, like the Indonesia-Singapore Coordinated Patrols, which witnessed its 20th anniversary in 2012.

This level of cooperation was possible only because of the strong foundation of trust and understanding that we had built up through different generations of SAF and TNI leadership.

Times of crisis

IN TIMES of crisis, both countries have also come to each other's

aid without hesitation. When the Indian Ocean tsunami struck in 2004, the SAF was the first to reach and lend a hand, deploying an unprecedented amount of manpower and assets in its history of disaster assistance.

The close ties and familiarity between our armed forces were evident during the operation. The SAF and TNI regularly send our officers to each other's training courses, and the SAF officers who had graduated from the Indonesian military academies could speak fluent Bahasa Indonesia and had experience with the Indonesian way of doing things.

When Singapore was in need in December 1997, when SilkAir Flight MI185 crashed into the Musi River near Palembang, killing all 104 passengers and crew, the Indonesians came swiftly to our aid.

They spared no effort in supporting the search and rescue operation, deploying several ships to help locate survivors and recover the two black boxes.

It saddens me to think that those in the Indonesian establishment who decided on the name KRI Usman Harun for the warship - after the two convicted bombers - could have so quickly forgotten the deep relations that both countries have painstakingly built over the years, on so many fronts.

What Indonesia does not seem to realise is that such actions, taken without due consideration, not only disregard the sensitivities of a neighbouring country, but also undermine the decades of peace and friendship both our militaries have built in partnership, by reopening a closed chapter that both nations have agreed to lay to rest.

There are surely many other deserving warriors and soldiers in Indonesia's illustrious history, so why choose to name the warship in a manner that reflects the violence and callousness of Indonesia's past actions?

It appears that when decisions need to be made for one's own interests, the concerns of a small country like Singapore can be disregarded. The "little red dot" mentality is still alive and entrenched in the minds of many Indonesian officials.

This incident comes as a poignant reminder for those Singaporeans who believe that Singapore is no longer as vulnerable as before, and that a strong SAF is no longer necessary because relations are rosy and peace has prevailed in the past few decades.

There is no better moment than now for us as a nation to recognise that the peace and security of Singapore can never be guaranteed.

I have witnessed for myself how hard-won our recent decades of peace are. We have now witnessed how quickly things can turn sour overnight.

A small country like ours will face situations where others do not take us into account when they make decisions. If we do not have a strong and capable SAF, we leave ourselves open to being cowed, intimidated and vulnerable to pressures from larger states.

If we do not want this to be the reality for us and our children's generations, all Singaporeans must take on the collective responsibility of protecting our way of life and play our part for the defence of our nation.

Only then will we be able to stand up to challenges, shape our present and plan for the future that we most desire.

This is our only reality.

Lieutenant-General (Ret) Winston Choo was the first and longest-serving chief of the Singapore Armed Forces (1974-1992). He is currently chairman of Metro Holdings' board of directors and non-resident ambassador to Israel.



KRI Usman Harun: Shanmugam explains Singapore's stand

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By Tham Yuen-C, The Straits Times, 13 Feb 2014

A DAY after his Indonesian counterpart said there was no ill will intended in the naming of a navy ship after two marines who set off a bomb here, Foreign Minister K. Shanmugam welcomed the overture, but he also delved into the past so as to explain more fully Singapore's stance.



The March 1965 bombing in Orchard Road, during the Confrontation when Indonesia opposed the formation of Malaysia which Singapore was then part of, targeted civilians. This was illegal under international law, the minister stressed.

The marines, Osman Mohamed Ali and Harun Said, were tried in court and hanged in 1968. In the subsequent years, the countries' leaders, Mr Lee Kuan Yew and Mr Suharto, made active efforts to improve ties. There was "some closure", said Mr Shanmugam.

Hence, there has to be sensitivity by both nations, to "make sure that it is behind us and not reopen it (the issue)", he added.

That was why Singapore asked Indonesia to reconsider its decision last week, when news broke of the warship's name.

The minister drew the distinction between the naming of a building in Indonesia and a ship, saying the signal is "very different". "The ship sails the seven seas, carrying that message to every land that the ship goes to as it carries that nation's flag."

Hence, in the wake of the spat, it would have been difficult for things to be business as usual, he said. Singapore pulled an invitation to Indonesia's navy chief to this week's Singapore Airshow.

Mr Shanmugam also said the naming could be seen in different ways. At its most benign, it could mean Indonesia had not considered Singapore's sensitivity. The other extreme could be Indonesia glorifies the marines' actions "rather than simply treating them as heroes who carried out their orders".

Still, he said Indonesian Foreign Minister Marty Natalegawa's remarks that no ill will had been intended were very constructive.

He added: "In that context, it is quite important for us to know that the marines are not being honoured for killing Singaporeans."





Need to ensure history is not reopened
The minister gave a detailed explanation of Singapore's position on Indonesia's decision to name a navy ship after two men hanged here for a fatal bombing during the Confrontation.
The Straits Times, 13 Feb 2014


QUESTION: What did the event mean at that time between the two countries, Singapore and Indonesia?

SHANMUGAM: By the time the two men were tried and before they were hanged, President Sukarno had lost power. Confrontation had stopped. President Suharto was in power. We were seeking to forge a new relationship with Indonesia.

Indonesia asked for these two men, as well as others, to be released. We released 45, including two men who had actually been sentenced to death because they had a bomb which exploded but no one died. We took into account the relationship, what we were trying to do, and so we pardoned those two because no one had died in that particular explosion.

The execution took place three years after the bombing and the killings. How could we have answered to the victims and their families and to Singaporeans if we had set these two men free? The other two who were set free had not killed anyone.

And it is significant that the second incident with the other two men happened - that bombing - occurred in April 1965, barely a month after the attack on MacDonald House. So, there must have been a perception that the first attack was successful and therefore, you know, the second attack. And there must have been plans for more. Yet we set them free. So we were also balanced.

Not pardoning Osman and Harun was actually a defining moment for Singapore in terms of our foreign policy. If we had agreed to release them, then that could have set the precedent for our relationships with all bigger countries.

And what is that precedent? That we will do - or we should do - what a bigger country asks us to do even when we have been grievously hurt. That would be a different concept of sovereignty.

It is definitional that almost every country that deals with us would be bigger than us. So we decided that is not good for us. The men were hanged.

It was not an easy decision because the British forces were withdrawing in two years. We are talking about 1968. Almost non-existent defence capability. But Mr Lee Kuan Yew stood firm. It was our sovereign decision.

The Indonesian public was very upset. Our Embassy in Jakarta was sacked. But within a few years, there was some closure. Both countries put aside the events of Confrontation. Our relationship improved.

We took active efforts - President Suharto and Mr Lee Kuan Yew - and today if you look at the relationship it is excellent, it is mutually beneficial. We were the second largest investor in Indonesia last year. We have regular consultations. In fact, last week I was in Indonesia. We keep taking steps to strengthen our relationship - keep the momentum because Indonesia and Singapore have to live together. Indonesia has really provided the stability that has allowed the entire region to prosper.



QUESTION: What does the naming of the warship now mean to us?

SHANMUGAM: It was last week that we found out that the warship was going to be named after the two marines and it was going to be called 'Usman Harun'. It is of course - as many people in Indonesia as well as some other commentators have pointed out - Indonesia's sovereign right to name the warship as it chooses. But that really is not the total answer, nor is it the end of the matter. Sovereign decisions can of course have an impact on other countries. In this case, Singapore.

Why do I say it? You know, when you name a warship like this, there are a range of interpretations possible. At the most benign, it could mean that Indonesia did not take into account our sensitivity, how Singaporeans would interpret the naming given what the marines actually did in Singapore.

At the other end of the range, much less benign, is that Indonesia glorifies their actions in Singapore rather than simply treating them as heroes who carried out their orders.

This is therefore an area where Indonesia's sovereign right to name a warship intersects with a part of our mutual history, and the Singaporean and Indonesian mutual decision to put that history behind us. There has to be sensitivity on the part of both countries to make sure that it is behind us and not reopen it, that is why we asked Indonesia to reconsider the naming of the warship.

It is one thing to name a building in Indonesia, or bury them in the Heroes' cemetery. It is quite another to name a warship - the signal is very different because the ship sails the seven seas, carrying that message to every land that the ship goes to as it carries that nation's flag. What is that message? So it would have been difficult for us to proceed as business as usual, as if nothing had happened. As a result, the TNI (Indonesian Armed Forces) chiefs and officers did not attend the (Singapore) Airshow.



QUESTION: What next?

SHANMUGAM: We have said what we think should be done. Foreign Minister Marty Natalegawa made some very helpful comments yesterday. He has made clear that there was no ill will or malice intended. That is very constructive. We welcome his comments.

In that context, it is quite important for us to know that the marines are not being honoured for killing Singaporeans. It is also important that it is understood and acknowledged that the naming of the ship impacts on us and impacts on our sensitivities.







Marines' act part of a 'campaign of terror'
Name of warship reopens old issue, says Shanmugam
By Tham Yuen-C, The Straits Times, 13 Feb 2014

SINGAPORE opposes Indonesia's decision to name a ship after two marines who set off a bomb here in 1965, as it sends the wrong message about a painful period in the two countries' history that both had agreed to leave behind.

Their act targeted civilians and was part of a "campaign of terror" during the Confrontation, Foreign Minister K. Shanmugam told reporters yesterday.

Marines Osman Mohamed Ali and Harun Said had posed as civilians to plant a bomb at MacDonald House on Orchard Road, killing three people and injuring 33.

The incident took place at a time when Indonesia opposed the newly formed Malaysia, which Singapore was then a part of.

The bombing on March 10 was part of a spate of attacks that included hits on schools and other civil institutions using saboteurs, and which saw bombs planted across the island.

The marines were eventually tried and hanged here in 1968, but given a full military burial and recognised as heroes in Indonesia.

Indonesia has a sovereign right to name the ship as it chooses, Mr Shanmugam acknowledged, but the decision can have an impact on other countries.

In this case, it "intersects with a part of our mutual history", and the mutual decision to put that history behind us, he said.

As such, both countries have to be sensitive about the issue, to "make sure that it is behind us and not reopen it".

Singapore has hence asked Indonesia to reconsider the decision to name the vessel KRI Usman Harun, he said.

It is one thing to name a building in Indonesia after the men or bury them in the heroes' cemetery, but quite another to name a warship after them, said Mr Shanmugam.

"The signal would be very different because the ship sails the seven seas, carrying that message to every land that the ship goes to as it carries that nation's flag. What is that message?"

The minister also set out why it was necessary for Singapore to hang the two men, after they were tried in court. The Government could not have answered to the families of the victims if they had been set free, he said.

Doing so would also have set a precedent for Singapore's relationship with bigger countries, he added - that the Republic will, or should, do what a bigger country asks, even when it has been "grievously hurt".

That would be a different concept of sovereignty, he said, and added that the incident was a defining moment for Singapore's foreign policy. "Almost every country that deals with us would be bigger than us. So, we decided that that is not good for us."

It was not an easy decision, as the British forces were withdrawing in two years.

But then Prime Minister Lee Kuan Yew stood firm, despite Singapore's almost non-existent defence capability at that time, Mr Shanmugam said, recalling also that the Singapore Embassy in Jakarta was sacked.

But Singapore was also "balanced" in its approach, the minister pointed out.

The Confrontation had ended by the time Suharto took over from Sukarno in 1967, and Singapore was then seeking to forge a new relationship with Indonesia.

Jakarta asked for the two, as well as others, to be released.

Singapore released 45 people, including two men who had been sentenced to death for setting off another bomb, though there were no deaths that time.

"We took into account the relationship... and so we pardoned those two because no one had died in that particular explosion."

Both countries also put aside the events of the Confrontation, with then President Suharto and Mr Lee making a special effort to build ties.

"Today, if you look at the relationship, it is excellent, it is mutually beneficial," Mr Shanmugam said. Singapore was Indonesia's second-largest investor last year, and both countries have regular consultations.

"We keep taking steps to strengthen our relationship, keep the momentum, because Indonesia and Singapore have to live together. Indonesia has really provided the stability that has allowed the entire region to prosper," he said.





'No shades of grey' in MacDonald House bombing
By Tham Yuen-C, The Straits Times, 13 Feb 2014

THE 1965 bombing of MacDonald House was targeted at civilians, and was clearly against international law, Foreign Minister K. Shanmugam said yesterday.

When Indonesian marines Osman Mohamed Ali and Harun Said planted the bomb in the Orchard Road building on March 10 that year, they were not in uniform, but posing as civilians.

The explosion killed three civilians and injured 33 others.

Mr Shanmugam said the attack was part of a "campaign of terror" that was contrary to the laws of war, adding that there was "nothing subjective about Geneva Conventions".

Under the conventions - a set of international treaties and protocols that lay down the rules for the humanitarian treatment of people during conflict - attacks against civilians are prohibited.

Some commentators recently said the two men were merely following military orders when they carried out the attack.

They argued that it was thus all right for the duo to be considered "heroes". The two men were executed in Singapore, but were viewed as heroes in Indonesia and given a full military burial there.

Mr Shanmugam, however, said there were "no shades of grey" in what they did.

"If it happens now, if people plant bombs to kill civilians, historians won't be debating on how to characterise it," he said.

The bombing was part of a spate of attacks carried out in Singapore, during which schools and other civilian institutions were also targeted.

It took place during the Confrontation that Indonesia's then President Sukarno pursued against Malaysia, which included Singapore at that time.

Mr Shanmugam noted that the two men had been tried in court in Singapore and were sentenced to death for their crime.

The case had also gone all the way up to the Privy Council in London, and Britain's court of appeal had upheld the decision of the Singapore courts, and found the two men guilty too.







Indonesia 'meant no ill will' in naming of ship
Jakarta takes S'pore's expressions of concern very seriously, says minister
By Zakir Hussain,Indonesia Bureau Chief And Zubaidah Nazeer, Indonesia Correspondent In Jakarta, The Straits Times, 12 Feb 2014

INDONESIA'S Foreign Minister Marty Natalegawa stressed that his country meant no ill will or malice when it decided to name a new frigate KRI Usman Harun after two marines behind a 1965 bombing in Orchard Road that killed three and injured 33.

"No ill intent was meant, no malice, no unfriendly outlook," he said repeatedly in a hastily convened interview with Singapore media. Jakarta took the recent expressions of concern from Singapore "very seriously", he added.

"Indonesia really values its relationship with Singapore in all its dimensions, and we are very keen to continue on that track."

Dr Marty's conciliatory comments are an attempt by Jakarta to defuse tensions that have dominated headlines over the past week, and come a day after Defence Minister Purnomo Yusgiantoro and Indonesian Armed Forces chief Moeldoko sought to downplay the row.

Officials have also kept President Susilo Bambang Yudhoyono abreast of the developments, and have sought his guidance, he added.

The issue surfaced last Wednesday, when Singapore Foreign Minister K. Shanmugam phoned Dr Marty to raise concerns about a newspaper report stating that the Indonesian Navy would name a new vessel after marines Osman Mohamed Ali and Harun Said, who were convicted and hanged for attacks which killed civilians in Singapore in 1968.

Deputy Prime Minister Teo Chee Hean and Defence Minister Ng Eng Hen also called their counterparts, who maintained that the duo had been declared national heroes after their deaths and that the navy traditionally named ships after the country's heroes.

The matter escalated over the weekend, when Singapore cancelled invitations for 100 officers to the Singapore Airshow, as well as a planned meeting. Top defence officials, including General Moeldoko, then cancelled their scheduled visits to Singapore.

Dr Marty said yesterday that from Indonesia's perspective, the issue of the marines' attack had been closed in 1973, when then Prime Minister Lee Kuan Yew sprinkled flowers on the graves of the men in a symbolic gesture that repaired frayed ties. Dr Marty said officials felt naming the ship after the marines would not cause a furore as that chapter was closed.

"The impression or the view was, perhaps, this is no longer a sensitive matter. But obviously, it still is, from Singapore's side," he said. "That sensitivity has been registered, and we are aware of it. At the same time, we are keen to ensure there is a sense of mutual respect... and we can both move forward."

Dr Marty added that Singapore's Ministry of Foreign Affairs had sent Indonesia a note to register its position and concerns. He planned to reply soon, to underscore Indonesia's resolve and commitment to manage the issue and continue developing bilateral ties.

"The recent episode of the past one week reminds us that while relations are very strong and very close, we need to constantly nurture this relationship and ensure there are no unintended complications that arise from decisions made from whichever side," he added. And this, he said, meant being able to "put ourselves in the other's shoes to empathise".

He disagreed that the current tensions were a "spat", citing a ministerial meeting held in Singapore yesterday between the two sides to boost economic links.

"There has been some misunderstanding and a communication gap," Dr Marty said.

"Let us now let the dust settle and move forward."

In Singapore, the Defence Ministry said in response to media queries that parliamentary questions about the matter have been filed. "Minister for Defence will address these issues in Parliament next week," said the ministry's spokesman Kenneth Liow.





Indonesian Foreign Minister Marty Natalegawa on the current row with Singapore over the naming of an Indonesian warship.

ON HIS BASIC MESSAGE

What I am addressing now is the basic message that no ill intent, no ill will and no malice is intended. It is just one of those things. It has happened, let's quickly move on; we want to get it behind us.


ON INDONESIA'S STRATEGIC INTEREST

It is in our strategic interest to have very close and friendly relations with all of our neighbours. But this is the reality of modern-day international relations - the sources of complications may be multi-faceted.


ON SINGAPORE'S PROTEST NOTE

We have received a note from the Singapore Ministry of Foreign Affairs. I believe it was (sent) yesterday, and it explained Singapore's position, especially its concerns. It simply puts on paper what had been registered verbally or orally as well.


ON MAINTAINING BILATERAL TIES

The key challenge for us is not to allow the matter to define what Indonesia-Singapore relations are.

Some may want to portray Indonesia as a country that is trying to throw its weight around, in terms of its defence outlook and posture, but that is certainly not the case.

We do not feel threatened by Singapore because we know it is not in Singapore's DNA to look at Indonesia as a foe. For Indonesia, we do not look at Singapore as a party with whom we have any ill intent or threats emanating from. It is more about how we manage misunderstandings. So I am keen to project this message that no malice is intended and we should move forward.






S'pore, Jakarta teams meet to boost economic ties
Meeting held amid strong stand by Indonesian media on diplomatic row
By Zubaidah Nazeer Indonesia Correspondent And Zakir Hussain Indonesia Bureau Chief In JakartaThe Straits Times, 12 Feb 2014

AN INDONESIAN delegation led by Coordinating Minister for Economic Affairs Hatta Rajasa was in Singapore for a meeting yesterday, amid a diplomatic row over Jakarta's decision to name a frigate after two marines who bombed MacDonald House in 1965.

Mr Hatta and Singapore's Minister for Trade and Industry Lim Hng Kiang co-chaired the meeting, during which both sides noted good progress made across six joint economic working groups, a Ministry of Trade and Industry (MTI) statement said. The groups were set up to enhance bilateral cooperation in investments, civil aviation, tourism, manpower and agri-business, as well as in Batam, Bintan and Karimum, and other special economic zones.

Indonesian Foreign Minister Marty Natalegawa highlighted the meeting as an example of how very close relations are between the two countries.

In an interview with The Straits Times yesterday, he said tensions over the naming of KRI Usman Harun resulted from "miscommunication".

But "the overall picture is a very healthy one", he added.

His comments came as the Indonesian media took its strongest stand yet on the issue, with several newspapers and broadcasters giving it prominence.

The Republika newspaper said in an editorial that the row was among several which reflected a lack of respect for Indonesia by neighbouring countries. MetroTV said in a commentary that Singapore was "playing with fire".

In the interview, Dr Marty said bilateral ties were "developing very, very well in the economic area, trade, investment, people to people, and tourism". He noted that Singapore is the largest source of visitors to Indonesia and a growing number of Indonesians are going there for their studies.

After Japan, Singapore is the second-largest source of foreign investment, hitting US$4.6 billion (S$5.8 billion) last year, Indonesia's Investment Coordinating Board said in its latest report.

Boosting such investments was on the agenda when economic officials from the two countries met yesterday.

"The meeting underscored the strong economic relations between Singapore and Indonesia and the mutual interest to strengthen economic collaboration," the MTI statement said.

Last year, bilateral trade reached $74.8 billion, making Indonesia the second-largest trading partner for Singapore among Asean countries. Indonesia was also Singapore's top source of tourists in 2012, according to the MTI.

Several media outlets recognised the value of this cooperation. In an editorial titled "Too much to lose for Indonesia and Singapore" yesterday, the Jakarta Globe daily said the present diplomatic friction should not be allowed to undermine relations. "Indonesia and Singapore have in the past also experienced tensions in their relations but have also found a way to move forward. It must be so again, as there is too much to lose on both sides," it said.

In another editorial, the Bisnis Indonesia daily said: "Singapore's prosperity cannot be separated from the contributions of Indonesia... Equality and mutual respect are key to productive bilateral relations."

Dr Marty dismissed any suggestions that Indonesia "is trying to throw its weight around". He said the two countries' ministers have very good communications.

"So I'm hopeful that we can get back on track again."



Related

New system to improve childcare locations

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Database to capture more accurately the demand for places
By Priscilla Goy, The Straits Times, 14 Feb 2014

A NEW system to more accurately gauge demand for childcare places is in the works, so that new childcare centres can be built where they are most needed.

It comes amid moves to meet growing demand for childcare services, which saw the Government pledge last year to add 20,000 more childcare places - or about 200 centres - by 2017.

This will provide enough places for one in two children here, up from one in three in 2013.

While a centre's waiting list can provide some indication of demand, it suffers from one key problem - duplication. This is because some parents put their children's names down for places at several childcare centres at the same time, even when the children may already be enrolled in one centre.

To get around this issue, the Early Childhood Development Agency (ECDA) is putting together a database which will filter out repeat applications, and reveal the actual number of people waiting for a place.

Coupled with its existing database of enrolment, this will help it better plan where to open new childcare centres.

Minister for Social and Family Development Chan Chun Sing, who revealed this new initiative in an interview with The Straits Times this week, said the new database is expected to be ready by the second half of the year.

Explaining the need for it, he added: "Some parents register their children at many places and that messes up the projection of demand... Some may even continue to register their children in the queue, even though their children are already in a particular centre."

The ECDA is interested in knowing who is in the queue only for the purpose of ascertaining its length, he said.

He acknowledged it may be a "sensitive issue" for childcare centre operators to share their waiting lists with ECDA. But he said the data would be kept confidential, so operators would not know their competitors' waiting lists.

Currently, in planning where to locate centres, the ECDA relies on geospatial software which shows the location of existing centres, and demographic data such as the number of children eligible for childcare places in an area.

This year alone, at least 45 centres will be set up islandwide, with most of them sited in newer estates such as Punggol and Sengkang, where there is a higher proportion of young families and more demand for childcare services.

A spokesman for My First Skool, which has six centres in Punggol, said waiting lists give "very limited insight" into the demand for childcare services in an area.

Besides parents registering at multiple centres, some parents whose children are already in childcare centres in other areas may register interest in a specific centre after increased publicity about the centre, she explained.

Accountant Michelle Tay, 35, said it would be good if parents too could know the actual number of people queueing up for a place at centres in a particular vicinity.

Said the Punggol resident, who put her four-year-old daughter's name down on waiting lists at three childcare centres from 2010, before getting a place about a year later: "We'd be less anxious when looking for a childcare place."





Progress seen in childcare sector
Minister is 'cautiously optimistic' that quality, affordability improving
By Priscilla Goy, The Straits Times, 14 Feb 2014

ALMOST a year after outlining a five-year plan to improve the childcare sector during last year's Budget debate, Minister for Social and Family Development Chan Chun Sing is "cautiously optimistic" about how the sector has progressed so far.

His mantra is to improve the accessibility, affordability and quality of pre-school education.

"We are cautiously optimistic that the pieces are moving into place," said Mr Chan in an interview with The Straits Times earlier this week.

He added that there has been "very rapid growth" in the number of childcare places, which grew from being enough for about 17 per cent of the cohort eligible for pre-school five years ago, to covering 33 per cent early last year.

The goal is to add 20,000 places by 2017, to ensure there are enough places for 50 per cent of the cohort. Last year, 8,818 places were added.

To better gauge demand and decide on the location of childcare centres, the Early Childhood Development Agency (ECDA) will set up a database of those in the queue for a childcare place by the second half of the year.

Mr Chan said improving accessibility is more straightforward than improving affordability and quality of childcare services.

He said he hopes the five anchor operators, including three which were appointed last month, will provide good benchmarks and "set the pace" of how childcare programmes should be priced.

Anchor operators get government help, such as rental subsidies and priority in securing Housing Board sites for new centres, in return for keeping fees low. Their monthly fees for a full-day childcare programme cannot exceed $720.

Mr Chan said: "We cannot prevent people at the extreme edges going for niche programmes... and realistically, there's no way that you can stop them. But for the mass market, you must give them confidence that the programmes provided by the anchor operators are good enough."

A panel of experts in pedagogy and child development evaluated the curriculum of the new anchor operators before selecting them, he said. The ECDA will also ensure that "the basic meal that they serve is nutritious enough", he added.

Asked about concerns of taxpayers' money being used to subsidise profit-making operators - the anchor operator scheme was expanded to include for-profit operators - he said taxpayers would benefit in the long term.If an anchor operator can make a profit, "the whole society benefits". "I'd have received valuable information on how the curriculum and sector can be organised more efficiently.

"If I mandate that they will never make any money from this, then there are all sorts of ways that they can pretend to not make money. There's no efficiency gained at all." But there is a "short-term safeguard". A "substantial" portion of an anchor operator's profit has to be reinvested into developing the capability of the sector, he said.

More effort will be made to retain teachers, too. "Every time we lose teachers, we have to retrain another batch of teachers. That takes up resources... It's better for us to keep the teachers who are good and passionate in the sector."

Last year, Mr Chan announced a new Continuing Professional Development Masterplan, which includes a road map outlining key responsibilities for staff, who will have to complete courses to move ahead in teaching and leadership pathways. While he did not disclose how teachers' pay will be raised, he said the ECDA had shared salary data for the pre-school sector with operators in December.

Some operators, particularly the smaller ones, do not know what the salary benchmark in the market is, he said. "We hope that by sharing such things, it will encourage them to look at some of their human resource practices... We hope it will be a first step to at least get things moving."









Intakes cut at 4 of 5 MOE-run kindergartens
By Pearl Lee, The Straits Times, 14 Feb 2014

THE Ministry of Education (MOE) has decided to cut by as much as half the number of new enrolments at four of its five kindergartens next year.

The only exception is its kindergarten in Punggol, where residents have long complained about a lack of pre-school facilities. It will continue to take in as many as 120 children.

However, the kindergartens in Telok Blangah, Farrer Park and Tampines will now offer just 60 places each. The one in Bukit Batok will have 80 spots.

When these MOE-run kindergartens were first announced last year, each of the four centres sited within primary schools had space for 120 kids. The Tampines kindergarten - the only one to be located in a void deck - had 80 places.

MOE explained yesterday that the numbers were revised to "better reflect the projected demand for pre-school places in the surrounding areas". But it is prepared to increase the number of places if the need arises, said an MOE spokesman.

The Straits Times had reported last year how most centres had faced a low take-up rate, with parents complaining about the lack of childcare and school bus services. Care services will be offered at the centres in Punggol and Telok Blangah next year.



Registration for kindergarten places will be held on April 4 and 5, from 9am. The five centres will hold open houses on March 1, from 9am to 11am.

Priority will be given to siblings of children studying in the kindergartens now and those from lower-income families. The rest are for citizens, with priority for those who live nearby. If there are any places left after that, they will be allocated to permanent residents.


AVA support for farmers hit by mass fish deaths

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By Grace Chua, The Straits Times, 14 Feb 2014

FISH farmers affected by the recent mass fish deaths do not have to worry about missing mandated productivity targets, said Minister of State for National Development Maliki Osman, during a visit to coastal fish farms yesterday.

Their losses will be considered when their production is counted, and they can turn the setback into a chance to improve their farms, said Dr Maliki, who met several farmers during his visit to two farms off Changi affected by mass die-offs.



In all, 34 farms in the eastern Johor Strait and five in the west Johor Strait have lost some 160 tonnes of fish so far. The die-offs were attributed to low levels of dissolved oxygen and a plankton bloom due to hot weather and neap tides, when high tides are at their lowest, said the Agri-Food and Veterinary Authority (AVA).

While fish farms must produce 17 tonnes of fish per half hectare of farm space to keep their licences, Dr Maliki said "it's only fair that we tell the farmers it's okay, we look at how much losses you have suffered this time round, your productivity performance will be measured in line with the losses you have suffered".

The affected farms were also rearing fish more vulnerable to poor conditions, such as grouper, golden trevally and threadfin, he added. Singapore's farms produce about 6 per cent of the fish consumed here, the AVA said.

But fish in the market are safe to eat: the dead fish have all been disposed of properly, he said.

Dr Maliki, who is also South East District mayor, said the South East CDC would offer support to the families of affected Singaporean farmers and workers.

He said the authorities would also help fish farmers tap a $30 million AVA fund meant for boosting food production here, to improve aeration systems for example. But farmers must pay for equipment up front first, then submit receipts to get reimbursements.

Farmer Goh Joo Hiang, 60, who had lost up to $200,000 worth of fish, said the losses should also factor in next year's productivity targets. "Even if we bought two-inch fry now, it would take a year to raise them."

Meanwhile, the dry spell since mid-January has meant that more water has to be pumped into reservoirs.

Environment and Water Resources Minister Vivian Balakrishnan wrote in a Facebook post yesterday that water agency PUB has been running Singapore's desalination and Newater plants "at close to full capacity". The two desalination plants here can meet up to a quarter of Singapore's water needs, with a combined output of 100 million gallons per day (mgd).






AHPETC auditors' disclaimer of opinion on financial statements

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MND responds to WP's defence of town council
Ministry highlights issues after WP says its observations were misleading
By Andrea Ong, The Straits Times, 15 Feb 2014

THE controversy over the latest accounts of a Workers' Party-run town council was ramped up a notch last night with Ms Sylvia Lim releasing a lengthy defence of the council's position, which the Ministry of National Development (MND) promptly responded to.

Ms Lim described as incomplete and misleading the MND's observations on the latest financial statements of the town council under her charge.

Ms Lim, who chairs the Aljunied-Hougang-Punggol East Town Council (AHPETC), was responding to MND's statement on Thursday where it expressed concern that the council's independent auditors had submitted a disclaimer of opinion on its accounts for the second year running.



But in a response last night, MND noted that AHPETC's auditor raised 13 issues of concern. Of these, four were related to issues the auditor had raised the previous year. AHPETC had assured MND then that "most have been rectified, with a few still in progress", said the ministry. "The auditor's latest report however showed this not to be the case."

MND said the nine new issues include not complying with the rules for sinking fund transfers, not disclosing to its auditor the details of project management fees paid to a related party as well as its latest management accounts and minutes.

"Such failures are not related to handover issues," it said last night.

AHPETC had in its latest annual report attributed some of its financial issues to the handover in 2011 from the former Aljunied Town Council, which had been under the People's Action Party.

MND was responding to the WP's defence that some of the information gaps cited by the auditor were due to parties like the former managing agent.

Ms Lim also said AHPETC has fixed its oversight on transfer of monies to its sinking fund and expressed surprise that project management fees to a related party had to be reported separately.

In its report on AHPETC's financial statements for FY2012, auditor Foo Kon Tan Grant Thornton said it had been unable to obtain sufficient audit evidence and determine the accuracy and validity of several items in the accounts.

On Thursday, MND highlighted items such as lift upgrading expenses of $18.6 million and lift repair expenses of $1.6 million.



Yesterday, Ms Lim focused on a sum of $1.12 million which the former PAP-run Aljunied Town Council had recorded as receivable from the Citizens Consultative Committee (CCC) for town improvement projects.

The auditor's report said that AHPETC had received about $521,000 from the CCC in the last financial year, but this could not be identified and matched to the $1.12 million receivable.

Ms Lim said AHPETC's repeated attempts to get information on the amount from the former managing agent and government bodies like MND and the Housing Board "did not yield answers".

Such gaps are likely to remain unless agencies give information to the town council, she said, adding that MND "could well be the best party" to assist AHPETC in resolving some key gaps.

Another area flagged by MND was the auditor's note that AHPETC had not transferred any conservancy and service charges to its sinking funds in the last financial year, as is required by the Town Councils Financial Rules.

Responding, Ms Lim said AHPETC acknowledged the council's practice of transferring money to its sinking fund after deducting sinking fund expenses was an oversight which has been rectified.

She stressed that the oversight had not resulted in any loss of monies or unauthorised spending.

MND also highlighted the auditor's observation that AHPETC had not made available details of project management service fees paid to a "related party", which is an entity where the town council's key management personnel have a personal financial interest.

Under "related party transactions", AHPETC had declared managing agent fees worth some $5.3 million paid to its agent FM Solutions and Services (FMSS), as well as project management services that FMSS had rendered "at an agreed percentage" based on the final value of the projects.

Ms Lim said it is standard practice for town councils to include project management as part of the services awarded to managing agents.

The financial statements do not specify that project management fees should be separately reported as these are listed as the project's construction costs or sinking fund expenditure.

AHPETC also submits quarterly returns to MND on new contracts awarded to its managing agent and was "puzzled" by why MND and the auditors highlighted the issue, she said.

She took issue with media reports that repeated "insinuations of impropriety" in AHPETC awarding its managing agent contract to FMSS.

The firm's managing director Danny Loh is secretary of AHPETC while his wife, Ms How Weng Fan, is its director and AHPETC general manager.

Ms Lim said FMSS had been appointed without tender for only a year, to tide over the handover period in 2011. The year after, it got a three-year contract after an open and audited tender.

Besides welcoming MND to perform any audit it deems necessary, Ms Lim also sought the ministry's help in resolving the issues raised by the auditor, by verifying and confirming some opening figures handed over by AHPETC's predecessor under the PAP.




SEEKING MINISTRY'S HELP

As MND has expressed its concerns over our accounts, we seek its assistance in resolving the issues raised by our auditor, by helping us verify and confirm the various opening figures handed over from the former Aljunied TC. We also welcome any audit by MND which it deems necessary.





FAILURES NOT DUE TO HANDOVER

The auditors raised 13 issues of concern... four of them are related to issues the auditor had raised the year before (FY 2011). Nine new issues of concern were raised, for instance, the TC did not transfer funds into its sinking funds as required. Such failures are not related to handover issues.







Workers’ Party links audit issues to post-poll handover; MND hits back
Most of the concerns auditors raised not related to handover issues, ministry says
By Neo Chai Chin, TODAY, 15 Feb 2014

The Aljunied-Hougang-Punggol East Town Council (AHPETC) yesterday sought to relate some concerns flagged by independent auditors over its latest financial statements to handover issues dating back to the 2011 General Election. This explanation was denied by the Ministry of National Development (MND) that pointed out that the majority of the concerns which the auditors made a disclaimer on “are not related to handover issues”.

The town council’s Chairman Sylvia Lim said yesterday in a media statement that it is seeking the ministry’s help to resolve gaps in its accounts, while criticising observations made by the latter on Thursday as “incomplete”.

The town council’s auditors, Foo Kon Tan Grant Thornton, were unable to determine if items worth over S$22 million in its latest financial statements were valid or accurate. This was among the issues highlighted by the MND in a press statement on Thursday, which also flagged as cause for concern the auditors’ disclaimer of opinion on the accounts.

Ms Lim said: “As MND has expressed its concerns over our accounts, we seek its assistance in resolving the issues raised by our auditor, by helping us verify and confirm the various opening figures handed over from the former Aljunied Town Council.”

Responding to Ms Lim’s statement last night, the MND did not indicate if it would assist the town council, but said the town council’s auditors raised 13 issues of concern in making a disclaimer, of which nine were “new issues of concern” raised in the 2012 financial year.

Four issues were from the previous financial year, and the Workers’ Party-run town council had assured MND last August that most had been rectified, with a few still in progress, the ministry said.

“The auditor’s latest report however showed this not to be the case,” it added.

The new issues of concern include the town council not transferring money into its sinking fund as mandated under the Town Councils Financial Rules.

“Such failures are not related to handover issues,” the MND said.

The ministry also took issue with Ms Lim saying the auditors had given a qualified report and not an adverse one. “The AHPETC auditor expressed a disclaimer of opinion on the Town Council’s FY2012 financial statement. This is more severe than a qualified opinion,” the MND said.

‘Lapses didn’t result in unauthorised spending’

Ms Lim had said the town council understands the auditors’ plight, as there were information gaps that existed at the handover after the 2011 General Election, that are still not filled.

For the 2011 financial year, the auditors had tried to seek information from the town council’s former auditors but failed.

“Repeated attempts” by the town council to get information from the former managing agent and government authorities did not yield answers, she said.

The MND and the Housing and Development Board were asked about S$1.12 million which the then-People’s Action Party-run Aljunied Town Council had recorded as receivables from the Citizens’ Consultative Committees for town improvement projects, for instance.

Attempts in the 2012 financial year were also unsuccessful, said Ms Lim, who is Member of Parliament for Aljunied GRC. “Unless those agencies with the required information furnish them to the Town Council, it is likely that information gaps will remain and the accounts will continue to be qualified every year,” she said. “In this regard, we note that the MND could well be the best party to assist the Town Council to resolve some of the key information gaps.”

Nevertheless, Ms Lim acknowledged lapses in the transfer of money to the town council sinking fund in the 2012 financial year. Town councils are required to transfer conservancy and service charges, grants-in-aid and interest payable to the sinking fund within one month from the end of each quarter of each financial year.

Ms Lim said the oversight did not result in any loss of money or unauthorised spending, and has been rectified.

She expressed puzzlement that the MND and auditors would take issue with how the town council did not provide details of project management service fees paid to its managing agent, FM Solutions and Services. It is standard practice for town councils to include project management fees in the managing agent services awarded, she said.

Media reports repeating “past insinuations of impropriety” in the town council awarding the managing agent contract to FM Solutions “must be debunked”, Ms Lim added. She reiterated that FM Solutions was appointed without tender for only one year right after the 2011 GE because of “urgent need” as the incumbent managing agent wanted to be released.

In 2012, an open tender was called but only FM Solutions submitted a bid, which was rigorously evaluated and subject to a special audit.

“Any allegation of impropriety is utterly rejected,” said Ms Lim, who welcomed any audit by the MND that it deems necessary.





Residents split over town council’s financial statements
By Kenneth Tan, TODAY, 15 Feb 2014

Residents in Aljunied GRC and Hougang whom this newspaper spoke to were split when asked yesterday whether they were concerned with the fact that auditors appointed by their Workers’ Party-run town council were unable to express an opinion on its latest financial statements.

A straw poll of 20 residents showed that half of them were worried, but the rest were indifferent.

On one hand, those who were concerned said that large sums of taxpayers’ money were involved, and the WP has to show that it is able to run the town council in a transparent manner.

On the other hand, those who were unperturbed said that it was premature to draw any conclusions and some felt the problems stemmed from the handover of Aljunied GRC by the People’s Action Party (PAP) following the General Election in 2011.

On Thursday, the independent auditors, Foo Kon Tan Grant Thornton, said that, among other things, they were unable to determine the validity and accuracy of various items, including receivables, lift repair and lift upgrading expenses, temporary unidentified receipts from residents and the Housing and Development Board, advance receipts from residents in respect of conservancy and service charges along with Goods and Services tax (GST) payables and unreconciled differences of cash and bank balances. In total, the items were worth more than S$22 million.

The annual report for Aljunied-Hougang-Punggol East Town Council — containing the financial statements — does not include Punggol East, which came under the town council following the WP’s victory in the constituency’s by-election in January last year.

Ms Sharon Tan, a homemaker, said: “It concerns my neighbourhood and their decision-making.” She added that the news was enough to make residents reconsider which political party they want to run their town council.

Ms Kim Lin Harbick, 34, added: “It’s our money (which) they are spending. The town councils have a duty to the residents to be transparent in their doings.”

Mr Joseph Moolayil Joseph, a 85-year-old retiree, felt that as a responsible organisation, the town council must be able to fully account for their spending to the auditors.

The town council’s auditors had submitted a disclaimer of opinion for the second time — prompting the Ministry of National Development to flag its concern in a press release issued on Thursday.

Disclaimers of opinion are issued by auditors when there is a lack of information or appropriate evidence to provide a basis for audit opinion.

However, Ms Suriati Mohamed, a 50-year-old housewife, said it was not a concern for her as long as her needs as a resident are met by the town council. “I don’t know about financials, as long as there is no problem, all the facilities are here, it is okay for me,” she said.

Similarly, other residents such as Ms Diana Tan, 42, said they were unconcerned about what they described as “politics”.

Mr Tan Yoke Len, 44, a HDB shopowner, said he felt that there were some issues with the handover by the PAP.

Mr Assya Fiee, a 28-year-old technical officer, said he is waiting to see how the issue plays out. In the meantime, he is putting his trust in the WP, he said.





Auditors unable to verify WP town council's accounts
By Charissa Yong, The Straits Times, 14 Feb 2014

INDEPENDENT auditors have declared that they are unable to verify a Workers' Party-run town council's accounts for the second year running.

The auditors hired by the Aljunied-Hougang-Punggol East Town Council (AHPETC) highlighted 13 points of concern. Foo Kon Tan Grant Thornton said in its report that it was "not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion".

These included the fact that AHPETC did not release details of project management service fees paid to a "related party".

These are transactions where the town council's key management staff have a personal financial interest.

Auditors said that as the information they sought was not disclosed to them, they were "unable to determine the completeness of the related party disclosures as disclosed in... the financial statements".

Auditors also could not determine the validity and accuracy of various items in the accounts, including some $20 million in lift repair and lift upgrading expenses. There were also unexplained differences, between its records and returns submitted, of GST payable, involving some $518,000.

The town council also did not transfer any service and conservancy charges to a sinking fund account for estate maintenance, in the 12 months ending March 31 last year.

The auditors' report prompted the Ministry of National Development (MND) to express concern. The ministry said yesterday that AHPETC had not complied with some provisions of the Town Councils Act and the Town Councils Financial Rules, as reported by the independent auditor.

"This is the second year that AHPETC's auditors have submitted a disclaimer of opinion on its accounts. This is cause for concern," MND said.

Accountants say there are four types of audit opinions here. A disclaimer is the second-worst, the worst is adverse.

AHPETC said that preparing the financial statements "continued to be a challenge" due to "handover issues that required more time to resolve".

Town councils are required by law to submit audited financial statements to the Minister for National Development, for presentation to Parliament. The deadline for the 2012/2013 financial year was Aug 31 last year. AHPETC was late, and did so only on Monday after seven reminders.





'13 problem areas' in town council accounts
Auditors highlight issues involving unverifiable funds, lack of documents
By Charissa Yong And Andrea Ong, The Straits Times, 14 Feb 2014

AUDITORS appointed by the Aljunied-Hougang-Punggol East Town Council (AHPETC) sought information they needed to sign off on its accounts, but said that they had not been given enough data to do so in 13 areas which they flagged.

The Workers' Party-run town council's financial statements for FY2011/2012 could also not be verified by auditors.

In the latest report, auditor Foo Kon Tan Grant Thornton also drew attention to the fact that AHPETC did not release details of project management service fees paid to a "related party".

This is where a key management personnel of the town council has a personal financial interest in the contracts awarded for the projects.

Auditors were, therefore, "unable to determine the completeness of the related party disclosures as disclosed in... the financial statements".

The third party, sources said, is AHPETC's managing agent, FM Solutions and Services (FMSS).

AHPETC's annual report said it hired FMSS for three years beginning in July 2012.

The firm, the report added, provided project management services which worked out to some $5.3 million in FY2012/2013, based on an agreed formula.

The company, which first came to public attention during a parliamentary debate on town councils last May, is closely affiliated with the WP. Its managing director, Mr Danny Loh, is also secretary of AHPETC. His wife, Ms How Weng Fan, is the firm's director and acted as the town council's general manager.

The couple had been assentor and proposer to the WP candidates who contested Ang Mo Kio GRC in the 2006 General Election, the coordinating chairman of the People's Action Party town councils, Dr Teo Ho Pin, had revealed in May last year.

Auditors also said that the validity and accuracy of various items in AHPETC's accounts, including lift repair and lift upgrading expenses of some $20 million, could also not be determined.

The auditor noted that lift repair and upgrading expenses from the previous financial year had been included in the current year's financial statement. This resulted in expenditures for the current year being overstated.

In the annual report, AHPETC acknowledged some of the issues, and pointed out that these were carried over from previous years.

For example, $110,735 that was due from the Inland Revenue Authority of Singapore was in the accounts handed over from the previous managing agent but without supporting documents. The lack of documents meant that their accuracy could not be verified, she said.

There were also funds received by the Citizens' Consultative Committee which could not be verified. Though AHPETC received $520,926 from the CCC in the current financial year, these receipts could not be identified and matched to the receivables.

Another $338,379 pertaining to "accrual without work orders" was also brought forward from Aljunied Town Council in August 2011, when the WP took over the running of the organisation from the People's Action Party. The town council said this amount was brought forward "without details", and therefore could also not be verified.

"In addition to these handover legacy issues, there were systemic and structural issues associated with developing a new financial system," it added.

This is being implemented in phases, resulting in "many accounting adjustments" along the way. Some of these will be carried forward to the next financial year, the report said.

Some of the other areas flagged by auditors - GST differences, income tax provisions and payments and conservancy charges received in advance - are "major accounts which require more time and effort to reconcile", it said.

Town councils are also required by law to transfer a portion of the monthly conservancy and service charges to a sinking fund to maintain the estate it has charge of.

This must be done within a month from the end of the quarter of each financial year, but the AHPETC breached this rule for the entire financial year ended March 31, 2012.

The WP's seven MPs and town councillors, including chairman Sylvia Lim, held their regular quarterly meeting at AHPETC's Hougang Central office last night.

AHPETC vice-chairman Pritam Singh said they would respond to the Ministry of National Development's statement accordingly.




Some discrepancies
- Aljunied-Hougang-Punggol East Town Council (AHPETC) did not transfer a portion of monthly service and conservancy charges into its sinking funds as required under the Town Councils Financial Rules, for the financial year ended March 31, 2013.
All town councils must do so within a month from the end of each quarter of each financial year.
- AHPETC did not give auditors details of project management service fees paid to a related party.
Related party transactions are those where the town council's key management personnel have a personal financial interest.
- AHPETC did not make available to auditors its latest management accounts and records of minutes subsequent to the financial year-end, to allow auditors to ascertain whether the statements properly reflected adjustments or disclosures needed in light of relevant subsequent events.
- Various items' validity and accuracy could not be determined.
This included some $20 million in lift repair and lift upgrading expenses, about $308,000 of temporary unidentified receipts from residents and HDB, some $507,000 in advance receipts from residents in respect of conservancy and service charges, and receivables of some $1.8 million recorded in "sundry debtors".

There were also unexplained differences of some $518,000 in goods and services tax payable, and unreconciled differences of some $63,000 in cash and bank balances.



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