HEAD V - MINISTRY OF TRADE AND INDUSTRY

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[Mr Speaker in the Chair]: **ESTIMATES OF EXPENDITURE
FOR THE FINANCIAL YEAR
1ST APRIL, 2011 TO 31ST MARCH, 2012 **

(Paper Cmd. 1 of 2011): Order read for consideration in Committee of Supply [3rd Allotted Day].

Head V – Ministry of Trade and Industry

Resumption of Debate on Question [3rd March, 2011],

"That the total sum to be allocated for Head V of the Estimates be reduced by $100." – [Ms Jessica Tan Soon Neo].

Question again proposed.

Singapore company on Fortune 500 list

Mdm Ho Geok Choo (West Coast): Mr Chairman, Minister Mentor Lee mentioned recently that Singapore is too tiny and its talent pool too small to produce a world-class manufacturing giant of the Fortune 500 class. However, Mr Lawrence Leow, President of the Association of Small and Medium Enterprises, feels that Singapore can work towards producing companies for the global stage outside manufacturing.

In this area, Singapore has its stars. An example is tenCube, which produces anti-theft software for mobile platforms and which was sold to McAfee. tenCube received initial support from EDB and SPRING Singapore.

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Mr Chairman, we need to look at ways to transfer the successful experiences of such companies to SMEs in Singapore. SMEs in Singapore are constantly looking at growing their business beyond this island. They need export credit insurance and loan guarantee support. In this regard, what is the progress to date on setting up an export-import bank in Singapore to help local SMES grow overseas?

In addition, I would like to know how well aware SMEs are of BrandPact, which is a joint initiative by SPRING and IE Singapore to help companies in their branding strategy so that they can improve margins and break into new markets. How do we measure BrandPact's effectiveness?

Productivity – ramping up progress

The Minister of State, Prime Minister's Office (Mr Heng Chee How): Sir, I would like to withdraw my cut as the subject matter on Productivity has been explained by Deputy Prime Minister Teo during the debate on the Budget Statement.

The Chairman: Mr Zaqy Mohamad is not here. Assoc. Prof. Dr Muhammad Faishal.

Role in national productivity drive

Assoc. Prof. Dr Muhammad Faishal Ibrahim (Marine Parade): Sir, by allocating a sizeable portion of the Budget to raise productivity, Government has shown that it meant business to raise income for Singaporeans through productivity growth and help companies to leverage on innovation and technology to raise efficiency and productivity. In fact, productivity has become the buzzword among Singaporeans as it represents one of our strategies in the way forward for Singapore.

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Earlier this week, Deputy Prime Minister Teo Chee Hean, who chairs the National Productivity and Continuing Education Council has updated the House on the progress of his Council. I am heartened to note that the Council has endorsed the productivity roadmaps of seven of the 12 sectors and that we will have the roadmaps of all the sectors by the end of this year. Deputy Prime Minister Teo mentioned that productivity is not just about automation or cutting manpower. I totally agree with him that companies must take a holistic, comprehensive and fundamental re-look at their businesses. Identified by the 12 sectors, I can foresee that the current state of productivity at the different sectors would vary as they have their own unique operational characteristics and would need different strategies to enhance their efficiency.

Sir, I would like to ask the Minister to elaborate on the economic development strategies of the Ministry in its focus on the productivity drive. What are the salient productivity-related characteristics of the 12 sectors? Among others, I am referring to the drivers and inhibitors of productivity for the various sectors. Finally, what are some of the plans that the Ministry has to enhance the productivity of sectors such as construction, retail and F&B in the next five years?

Productivity measures and other schemes

Mr Teo Siong Seng (Nominated Member): ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Mr Chairman, Sir, fellow Members of Parliament, first, I would like to declare that I am the President of Singapore Chinese Chamber of Commerce and Industry (SCCCI). This year is the Year of the Rabbit, so I shall use rabbits as a simile for our businessmen. I will use the example of rabbits eating carrots to describe the difficulties faced by SMEs in

*Cols. 3819-3822.

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applying for the National Productivity Fund (NPF) and Productivity and Innovation Credit (PIC).

In the new Budget, the Government is topping up the NPF to $2 billion. It also enhanced the PIC, giving the businesses more incentives to improve their productivity.

In other words, the Government has prepared a full basket of carrots for the rabbits – SMEs – to eat. This is exciting news indeed! However, I have asked many people and they have raised this concern: the carrots are strung up too high, so how can the rabbits reach them?

In fact, the Government has been supporting the SMEs unswervingly all along. However, due to the somewhat complicated application procedures and a rather long approval process, many companies have been held back. SMEs that have benefited are few.

Take SCCCI as an example. We set up our first overseas office in Shanghai as a response to the Economic Strategies Committee's (ESC) call. Last July, we applied for the Local Enterprise and Association Development (LEAD) scheme. Although we could not ascertain if the application would be approved, we still resolved to set up the Shanghai office in October last year.

We made the right decision. So far, we have signed MOUs with five local trade associations and the Chongqing Liangjiang New Area. Our Shanghai office will facilitate mutual visits and business matching. Meanwhile, we are also in discussion with other ethnic associations on collaboration.

On 25th February this year, the grant was finally approved. We were relieved. Here, I would like to thank MTI and IE Singapore for their trust and support.

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Now the NPF has increased to $2 billion. This is a huge sum which promises a lot of carrots for the rabbits. However, what we are concerned about is how SMEs can meet the requirements of the Government agencies to enjoy the grant. SCCCI waited seven months for the approval; this was not long, but do other SMEs have the resources to wait this long?

Hence, I suggest we streamline the application process and shorten the time needed to apply and get funds. This will make the first step easy for SMEs and the rabbits would have the chance to eat the carrots.

This year's Budget has greatly enhanced the PIC scheme. Companies, however, can only reap benefits in the next financial year. Water afar cannot slake the thirst now. Many SMEs are short of capital. Purchase of new equipment, training of staff, innovation and development all need large upfront capital. When the rabbit is hungry, you present it with a carrot; it may not be a whole carrot, it can be half or one-third. With that, the rabbit can develop some strength first and then will have energy to grab more carrots to improve productivity.

I suggest that we change the way PIC is applied. We can let the companies enjoy the incentives earlier. This may increase the workload of Government agencies, but the most meaningful thing is for the rabbit to be able to eat the carrots.

Both NPF and PIC are designed to help companies improve productivity. The next thing we are concerned about is how to implement them effectively.

This week, Deputy Prime Minister Teo Chee Hean announced that the National Productivity and Continuing Education Council has identified 12 sectors that

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have greater room to improve productivity. Among the 12 sectors, seven have already formulated their roadmap. SCCCI has 137 trade association members; we are more than willing to help the Government implement the roadmap according to industry characteristics.

For a smooth implementation, I suggest that trade associations be invited to join the review and implementation process. Being insiders with most knowledge about their own trades and industries, they can provide effective suggestions which can lead to "double the results with half the effort".

With the tantalising carrot in front of him, the little rabbit will try its utmost to eat it. As long as the carrot is not placed too high, it will be within reach of the rabbit. We need to encourage the rabbits to build up team spirit and work together to find good ways to improve productivity.

The Minister for Trade and Industry (Mr Lim Hng Kiang): Mr Chairman, let me thank Members for their comments. First, let me make some general remarks then I will deal with the issues raised.

2010 was indeed an exceptional year. Our economy grew by 14.5%. We had a strong recovery because we responded effectively to the 2008/2009 financial crisis. Our good performance also validated our economic strategies in the last decade. Let me highlight three lessons learnt.

First, it validated our strategy of diversifying trade partners and growth clusters. This minimises concentration in any single market or industry, and smoothens economic volatility. Going forward, we can expect global economic volatility to remain a feature so

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diversification in our economy is of critical importance.

Second, it reinforces our policy of welcoming talent who can contribute to our economy. This has helped us to anchor higher value-added activities that created good jobs for Singaporeans. Many of our sectors thrive because Singaporeans and foreign talent work together. Can you imagine our financial services sector or our manufacturing sector, our offshore trading sector, competing without the participation of foreign talent? This would be like competing with one hand tied behind our back.

Third, our support for the internationalisation of Singapore companies. Due to our small domestic market, our companies have no choice but to expand overseas relatively early in their growth cycle. This is our karma . We are not a huge continental economy like the US, India, Europe or China. Our domestic market is limited and our companies have to go overseas.

Later on, I will deal with the economic strategies specific to the next few years but I thought I should reinforce these three key fundamentals. We should not lose track of these fundamentals.

If we take a longer-term view, we have done fairly well. Over the last five years, our GDP grew by 6.4% per year. Median resident household income grew by 2.6% per annum in real terms. For our residents, the average unemployment rate in each year over the last five years stayed within the range of 3% to 4.3%.

This year, as we have forecasted, we expect the economy to grow by 4% to 6%. Over the medium term, our growth prospects remain positive. Emerging Asia will become a key growth engine and we can take advantage of the growth opportunities arising from that.

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Ms Jessica Tan, Mr Wee Siew Kim and Mdm Ho Geok Choo have asked how the Government is helping Singapore-based companies seize growth opportunities, become competitive and expand into Asia.

Let me outline three key strategies to achieve this. They are: (i) to make a Singapore a global Asia business hub; (ii) re -position existing clusters and grow emerging ones; and (iii) p ursue productivity-led growth.

12.15 pm

Our first strategy is to develop Singapore as a global Asia hub. The companies of today operate globally. Many site their activities across Asia and coordinate them from control towers. Control tower functions will include things like innovation, commercialisation, supply chain and talent management, amongst others. Our political stability, connectivity, access to talent and our educated workforce make Singapore a compelling destination for global and regional control towers. We, in fact, target three groups of companies: multinational corporations, global mid-sized companies as well as Asian champions. We can be a base for MNCs and global mid-sized companies to penetrate the Asian market. At the same time, Asian champions wanting to expand from their domestic base to other parts of the world will also find Singapore very useful.

Our global Asia hub strategy is working. Take, for example, Applied Materials, a leading global semi-conductor equipment supplier. Last year it set up its first Asian semi-conductor equipment manufacturing plant in Singapore. Applied Materials expects 50% of its global semi-conductor equipment supplies to be manufactured here. The company also manages its regional supply chain out of Singapore.

Hoya Surgical Optics is another example. It is world-leading manufacturer

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of intraocular lenses which are implanted in cataract patients. Hoya's presence in Singapore dates back to 2003 when it first set up a plant to manufacture intraocular lenses for global markets. Earlier this week, Hoya announced the relocation of its global headquarters to Singapore. The integration of its headquarters and manufacturing activities in Singapore will improve its overall operational efficiency and bring the company closer to the emerging Asian markets.

To be a global Asia hub, our value is not just location. Our companies must also understand the business environment in Asia, they must know the business regulations, the demand conditions, have insights to consumer as well as HR best practices in various Asian markets. To support this, we are growing niche capabilities in our professional services cluster. PricewaterhouseCoopers, the fifth largest HR consulting player in the world by revenue, set up the Asia-Saratoga Centre here last year. The centre will develop a database of HR performance matrix pertaining to companies in Asia. Examples of such matrix include recruiting costs and workplace productivity. Using this database, the centre will be able to analyse how well its Asian-based clients are doing in HR management compared to their peers in the region. The database will also allow it to advise its clients on how their HR operations can be optimised.

We are also helping companies access Asia-ready talent. Many companies have fed back to us that they lack managers who are ready for Asia; managers who understand the Asian business environment and are comfortable operating in Asia. So, last year, we launched the Human Capital Leadership Institute (HCLI) to develop business leadership capabilities in Asia. Come May, HCLI will roll out the Singapore business leaders' programme which will help prepare senior executives for regional leadership positions.

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Our second strategy is about strengthening Singapore's export base and diversifying our industrial portfolio. Let me share with you examples from some of our key clusters.

In electronics, we have remained competitive by scaling the value chain. In the 1990s, we engaged in four-inch, six-inch and eight-inch wafer fabrication, now we have 12-inch wafer fab plants. As a result, our share of global semi-conductor output has risen from 6% to 11% over the past decade. The renewal process continues. We are developing deep capabilities in integrated circuits. These are vital components of portable devices such as laptops and handphones. Last year, we launched an Integrated Circuit Design Centre of Excellence in NTU called VIRTUS. VIRTUS specialises in developing technologies required for applications in medical technology, clean technology and consumer electronics. It also helps train talent in emerging electronic sectors such as power management and energy harvesting.

In logistics, we are similarly undergoing a renewal process. To be closer to their main markets, companies are relocating their logistic centres to Asia. This creates opportunities for us, too. Hitachi Data Systems, for example, found it too slow to ship products from the US to its growing customer base in Asia, so last year it opened a regional distribution centre in Singapore to aim for faster delivery.

Mr Chairman, a competitive logistic cluster serves as an enabler for all our other clusters. So, to cement our position as a logistics hub, we are developing competency in new niches. For example, SATS recently launched Coolport, a facility that can store perishable foodstuff as well as heat-sensitive pharmaceutical products in a temperature-controlled

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environment. This will help us anchor new investments in biomedical sciences as well as other clusters.

Our efforts in nurturing new clusters are also progressing well. For example, we foresee good prospects for clean technology which encompasses solar power, wind energy and others. Leading players like Vestas, Siemens and Bosch already engage in high-value innovation and manufacturing in Singapore. To strengthen our base, we have also set up public R&D centres specialising in clean technology. This includes the Solar Energy Research Institute of Singapore (SERIS) in NUS and the Energy Research Institute at NTU. All in all, clean technology is on track to add S$3.4 billion to our GDP. This is slightly over 1%, and generate an additional 18,000 jobs by 2015.

Let me know turn to our third strategy which is to pursue productivity-lead growth. From the comments on productivity from Ms Jessica Tan, Assoc. Prof. Dr Muhammad Faishal and Mr Teo Siong Seng, it is clear that Members share the view that productivity will be crucial to our ability to achieve sustained economic growth in the future. To achieve our productivity growth target of 2% to 3% per year, we have to achieve sustained productivity improvements at all four levels. At the economy level, we must move towards higher value-added sectors. This is part of the ongoing restructuring of our economy, shifting from low value-added activities to higher value-added sectors and growing new clusters. What I highlighted just now about the developments in our key clusters as well as the new clusters that are nurturing reflect this effort.

Second, at the sectoral level, we must move up the value chain within existing industries. Efforts at this level recognise that each sector faces its own challenges and requires different solutions to improve

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productivity. This is something that Assoc. Prof. Dr Muhammad Faishal also highlighted. We will work with companies that have made headway in their productivity efforts. These companies will serve as productivity champions and help demonstrate the value of productivity improvements to the rest of the sector.

The trade associations and chambers (TACs) have a key role to play as champions of productivity. We will engage the TACs through our Local Enterprise and Association Development (LEAD) programme which offers sectoral-based customised assistance that target unique industry needs. Mr Teo Siong Seng also highlighted the importance of engaging with the TACs and we intend to do so.

At the third level – at the firm level – this is where much of the heavy lifting will be done and therefore the Government has enhanced the Productivity and Innovation Credit (PIC) to further encourage companies to invest in activities that foster productivity and innovation. The PIC will allow the individual firm to respond to the productivity call, so, in this way, we can reach out to a very broad base.

Finally, at the individual worker level, it is also very important that workers continue to upgrade themselves and take advantage of the many avenues in our Continuing Education and Training (CET) system to do so.

Assoc. Prof. Dr Muhammad Faishal asked about our plans for the various sectors such as construction, retail and F&B. I think in the MND debate yesterday we highlighted the roadmap for the construction sector, Deputy Prime Minister Teo has also provided updates and some examples from the retail and F&B sectors, so let me share with you two others sectoral examples: precision

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engineering and hotels. In precision engineering (PE), the level of productivity in the sector is only about 50% of that in developed countries such as the US, Germany and Japan. To catch up, our PE players have to move up the value chain. The industry needs to be transformed beyond one that supplies standard parts for local customers to one that designs and makes its own sophisticated final products for the export market. Meiban Group is a local PE player that has successfully made such a transition. They started off as a contract manufacturer of plastic products. It then began to pursue industrial design a few years ago. This has paid off. Meiban is now able to design and patent tools that have doubled the output of current equipment.

We also need to anchor global players to improve the dynamism of our PE sector. This is not restricted to manufacturing but extends to the entire value chain. This is something that Ms Jessica Tan also raised – the need to have the entire ecosystem and the supply chain. An example is Kulicke & Soffa. This is a market leader in the manufacture of semi-conductor wire bonders. The company started operations here with a modest sales team in 1993, it has since moved on to include manufacturing and product management, and recently also made Singapore its global corporate headquarters.

In the hotel industry, we face a different set of challenges. Based on the Singapore Tourism Board's (STB) study, our hotel industry's productivity level is comparable to that of Hong Kong. Here, our main challenge lies in attracting manpower for rank-and-file jobs in an already tight labour market. To raise productivity, more hotels have to improve their operational efficiency. They need to review systems and leverage technology to optimise manpower resources. An example of a hotel that has done so is Grand Park Orchard. It purchased passport

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scanning devices to facilitate guest check-ins, dispensing with the need for manual entries. In this way, their guest services officers are now able to check in a guest in two-and-a-half minutes compared to four minutes previously. To complement the move to improve operational efficiency, rank-and-file jobs in hotels need to be upgraded and redesigned to become higher-skilled ones with better remuneration. More Singaporeans will then be attracted to these jobs.

For the hotel industry, high service standards are also critical. I agree with Ms Jessica Tan that we need a quantum step improvement in service excellence – visitors must go away with a happy experience. Productivity is not just about reducing the denominator, it is also about increasing the numerator – the value-add. And raising the service standards, in fact, allows us to also raise the value-add.

Mr Chairman, let me conclude. Singapore is, in fact, in a very good position to tap the opportunities in a rising Asia. Our medium-term growth prospects are promising. However, constraints in labour supply compel us to raise productivity and make the best use of our resources. We therefore need to persevere in our restructuring efforts. We will then have an economy that will create a better quality of life for all Singaporeans. There are some cuts which overlapped with what we are going to talk about in SMEs, so I will leave to Minister of State Lee Yi Shyan to deal with this later.

Innovation for growth

Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, the Prime Minister announced a $16.1 billion plan to boost research, innovation and enterprise over the next five years in September last year. The move to generate economic growth via innovation is certainly the right way to go

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for Singapore as a knowledge-based and innovation-driven economy.

As a Member of Parliament, from time to time, I have met Singaporeans who would like to better understand how our investments in research, innovation and enterprise translate to benefits for Singapore and the man in the street.

I would like to ask the Minister to elaborate on the key strategies under the $16.1 billion plan. What programmes have been rolled out under this plan? Can the Minister elaborate on how existing efforts have been enhanced and how do companies, researchers and entrepreneurs stand to benefit from this plan? Prior to this plan, how successful have we been in reaping growth from investment in innovation? Can the Minister share a few success stories from this effort?

12.30 pm

Innovation as key enabler

Miss Penny Low (Pasir Ris-Punggol): Sir, more than $16 billion has been set aside over five years to fund innovation as a key enabler of economic growth, and the way to increase productivity and real income. Bravo! But, Sir, The Economist magazine defines "innovation" as "new products, business processes, or organic changes that create wealth or social welfare", or simply put, "the fresh thinking that creates value." To achieve quantum leap growth, fresh thinking and organic changes – or systemic innovation – is the way to go.

Systemic innovation involves changing the mind's eyes to see and think in new ways – from economic assumptions to social arrangements, impacting the demand and supply of basic needs. Often, they are catalysed by crisis, disruptive technology, social needs or cumulative physical and cultural changes.

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But the mother of innovation usually arises out of needs, and the most compelling needs are those that relate to improving human condition, and not just financial value. Some examples are the spread of education, green and infotech revolution – all of which points not to profit maximisation but to making life better. Perhaps what we need is a systemic paradigm shift from private innovation to social innovation, to yield both economic and social dividends. Sir, what are the schemes that prompt systemic innovation?

To this end, I advocate refocusing innovation on the following:

(i) A paradigm shift and changing the language from product and service innovation to social innovation, tackling human needs and making life better for Singaporeans. An example can be found in Singapore Polytechnic that adopted humanitarian values as their ethos, changed the curriculum to give meaning to studies. For example, the engineering and design students team up with VWOs and allow them to empathise firsthand with the disabled's daily struggles, and create meaningful solutions to improve the quality of life for real people. Some of the solutions are so good that commercial interests are found.

(ii) Demand-side innovation. Our incentives are heavily supply-side bias. But with the advent of new media, demand-side innovations like crowd sourcing, consumer and social needs-driven collaborative innovation offer unprecedented opportunities to harness global creativity and value-add to our products and services. From Google to Facebook, companies that adopt open and user needs-driven processes to their products and business development have become an integral part of our lives. What are some of the schemes that incentivise our demand-side innovations?

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(iii) Information innovation. We have an excellent data collection system that unveils latent assets and maps future trends and challenges. Why not make our national challenges known in digestible form in a checklist and then invite innovators to tackle them? Doing so would also allow the frontliners to better understand the issues and users to share visions.

(iv) Collaborative innovation. Cross pollination of ideas combining many elements in new ways has been the most transformative. For example, mobile phones combine micro-processors, transmitters, network of masts and applications that create new businesses that satisfy lifestyle needs.

To encourage collaborative innovation, the Government can help build trust-creating devices like eBay's peer rating systems or provide public database. Government should also support existing platforms that focus on peer-to-peer, 3Ps and intra-industry collaboration, including that in the social sector. One such platform – and I declare my interest here since I also help to create this platform – is the Global Social Innovators Forum, which is a locally created, internationally recognised annual event that brings together change leaders from the 3Ps and academic circle to build a more inclusive, sustainable and better world.

Perhaps, the Government can also think about developing a social Silicon Valley where the 3Ps can come together to solve Singapore's most pressing concerns. One such park also called the Social Innovation Park is found in Spain. They visited Singapore's SIP, took our ideas and found great government support, and is now abuzz with many cross-sector collaborations and host more than 50 international companies and associations. Can we do the same?

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Fifth, innovation in distribution. Just as central planning has become less efficient, distributed periphery network gains weight. Local smart grids, step-down care, telemedicine are some examples. Can we also incentivise the creation of new infrastructure, or adapt old ones to expand into a more efficient distribution centre?

All of these would also need a new legislative vehicle, a regulatory architecture and investment flow to unlock these systemic changes.

Sir, in conclusion, where innovation in the private sector is designed to reserve benefits for financial gains and those who can pay for it, social innovation is structured to favour the rapid diffusion of an innovation rather than keeping it private. In so doing, open sourcing solutions and mass distribution lower costs, increase efficiency and create a value system that is different and KPIs that will truly transform our society.

Sir, higher economic profits and social dividends –

The Chairman: Ms Indranee Rajah.

Integrated Resorts

Ms Indranee Rajah (Tanjong Pagar): Mr Chairman, it has been a year since the Integrated Resorts (IRs) have opened, and there have been reports on the strong performance of the IRs since their opening. I would like to ask the Minister for an update on their performance, in particular, how does that performance so far compare with the earlier projections, and what does the Government expect to be the IRs' economic contribution in the long term.

Dr Lam Pin Min (Ang Mo Kio): Sir, the two Integrated Resorts – the Marina Bay

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Sands and Resorts World Sentosa – are both in operation albeit not at their maximum capacity. Notwithstanding this, the opening of these two IRs has brought significant economic benefits to Singapore with increased tourist arrivals and betting taxes amounting to $2.3 billion. In addition to the casinos, Singaporeans and tourists alike can enjoy other entertainment amenities, including the delightful culinary skills of Michelin-starred chefs, theme parks, conference and exhibition facilities. I would like to ask the Minister what would be the expected benefits in terms of tourism receipts and GDP contribution when the two IRs are operating at their maximum capacity. Will Singapore be looking at the possibility of building more IRs in the future?

Tourism

Mr Chan Soo Sen (Joo Chiat): Mr Chairman, Sir, the tourism sector had a very good year last year. I wonder how much of this is due to the impact of the Integrated Resorts. I would also like to ask what would be the steps that we want to take in order to sustain this growth for the long term.

I remember in the early 1970s when we started our tourism industry, we marketed Singapore as an "Instant Asia". What will be the emphasis on the Asian part of the heritage that we are going to put in our strategy to promote Singapore as a tourism destination? For example, heritage towns like Joo Chiat, which is my constituency, what would be the plans that the Singapore Tourism Board have in promoting us to wholesome tourists, not the kind of tourists that my constituents are worried about?

How about eco-tourism? We may only have a small plot of primary forest, but the advantage is that it is very diversified in terms of ecology. Furthermore, the size is also quite manageable. We do not have to go to the Amazon and get lost. In Bukit

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Timah, we usually would not get lost and we see a lot of things. What are the steps that we can do in order to promote these as Singapore's instant eco-tourism? How about making Singapore into a "cooler" place where the tourists coming here can find this place enjoyable, relaxing and really fun, not the kiasu kind of an image that they have of Singapore? How do we encourage tourists coming here to slow down their pace a little, enjoy our eco-system, enjoy our heritage and enjoy our nice and cool place? I understand that the average tourist stays about four days. If they extend their stay by one day, we have 25% more money to make.

Dr Lam Pin Min: Sir, tourist arrivals in Singapore rose by 16% in December 2010, as compared to the same month in 2009. In the whole of 2010, tourist arrivals grew by a massive 22%, with a total of about 11.6 million tourists. Tourism is an important sector to us. It is the lifeline of the retail industry as well as the hospitality industry.

I would like to ask the Minister the following: how many tourists are we expecting this year? What are our tourism targets for the next five years? With stiff competition from our neighbours, what additional attractions are we developing to help achieve these targets?

Energy

Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, with the recent crisis in the Middle East and Northern Africa, what are the implications for Singapore's energy supply? We would expect that with the disruption in supply, oil prices will be pushed up and add to the inflationary pressures that Singapore is already experiencing. Singapore is highly reliant on energy imports, and any disruption of energy supply and prices will affect our industries and households. We have a developed market with high energy intensity and consumption. Our lifestyles

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and industries are extremely energy intensive – from our communication devices to entertainment, transportation industry. All aspects of our lives require energy. In fact, if we had a disruption for just a few hours in Singapore, I think you just cannot imagine what that would be.

Can the Minister share our strategy to ensure Singapore's energy supply resilience and security? What innovations are we investing in for alternate energy sources and sustainability? Both in the short term and longer term, what measures are we taking to address these challenges and implications for Singapore and companies that operate in Singapore?

Mr Michael Palmer (Pasir Ris-Punggol): Mr Chairman, Ms Jessica Tan seems to have taken the words out of my mouth, and said inflation is on the rise in Singapore and various other parts of the world, particularly so with the cost of crude oil going up per barrel to over US$100. I think in Singapore we should be looking at different sources of energy and alternative sources of renewable energy as well as sustainable energy. Could I ask the Minister to share with us – with the Middle East in turmoil – what effect has the sharp increase in the price of oil had on Singapore, and our cost of energy and cost of goods in general? Do we have other sources of oil and alternative energy sources, such as LNG, which will help soften the effects of the rising oil prices? What steps are we taking to move towards a more sustainable source of energy, such as nuclear energy?

Mr Liang Eng Hwa (Holland-Bukit Timah): Sir, we have seen unrest in the oil rich Middle East region in the last few weeks. The situation is still unfolding, remains uncertain and with no end in sight. The unstable geopolitical risk has pushed oil price to hit a two-year high of almost US$120 per barrel last week. Some analysts like Nomura even predicted that the oil price could even hit above

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US$200 per barrel if the unrest spreads and expands further into the region.

Should the events in the Middle East turn for the worst, how would Singapore be impacted? Would an oil shock change the outlook of our economic growth? And how prepared are we for a scenario of sustained high oil price?

Ms Indranee Rajah: Mr Chairman, like my three parliamentary colleagues who have preceded me, I am concerned about the current developments in the Middle East and, in particular, how it will impact Singapore's economy. I would therefore like to ask the Minister what is Singapore's strategy for alternative energy and, in particular, if he could provide an update on the status of the pilot project for electric cars, and whether electric cars can be a viable alternative mode of transport in Singapore. If yes, then how long would it take before electric cars can become a mainstream means of transport?

The Senior Minister of State for Trade and Industry (Mr S Iswaran): Mr Chairman, I want to thank Members for their interventions and I will address their specific questions on three broad areas – research and development, tourism and energy.

12.45 pm

Assoc. Prof. Dr Muhammad Faishal asked how we plan to harness innovation for growth, and what benefits would accrue to researchers, industries and entrepreneurs. Our investment in R&D is really part of our long-term capabilities to underpin our future economic growth. It has strengthened our economy by promoting innovation and catalysing new area of growth. For example, A*STAR's Bioprocessing Technology Institute has helped to seed the capabilities and the

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expertise that has supported, subsequently, the emergence of the biologics industry in Singapore. Today, that industry has attracted $2 billion in investments and it will create more than 1,000 jobs.

Our SMEs have also gained from our R&D initiatives. Under A*STAR's GET-Up, Growing Enterprises through Technology Upgrading programme, researchers have been attached to some 200 SMEs to help develop new products and services by using technology. One example is Tru-Marine Pte Ltd which developed a new process to repair rather than replace worn engine rotors. This allowed the company to offer a new niche service and, consequently, it has grown its annual revenues from $20 million to $50 million.

Our commitment to research and innovation remains unstinting. Last year, the Prime Minister announced the Research, Innovation and Enterprise (RIE) 2015 plan which would render enhanced support to our researchers, industries and entrepreneurs. As many Members have already noted the Government will invest $16.1 billion in R&D for the next five years. That is an increase of 20% over the previous five-year plan. At a time when many countries are cutting back on R&D due to fiscal constraints, Singapore stands out for continuing to build its research and innovation eco-system. This investment will yield three main benefits: scientific excellence and talent; greater economic outcomes; and, solutions for challenges that Singapore faces.

RIE 2015, first of all, will continue to support scientific excellence and nurture talent. We will invest in the creation of new knowledge and ideas, which are the basis of future innovations. The pool of competitive research funding will be enlarged to ensure that the best ideas are supported. Multi-disciplinary and collaborative efforts will be encouraged, as it is often at the intersection of these

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different branches of knowledge that new ideas and discoveries are made.

Second, we will leverage on our scientific capabilities to encourage and generate greater economic outcomes. Under EDB's Research Incentive Scheme, $2.5 billion will be set aside to co-fund the establishment of corporate centres of R&D excellence in Singapore. We have also introduced a new $1.35 billion Industry Alignment Fund for collaboration between public and industry researchers in order to align Government-funded research more closely with the needs of the industry.

Over the next five years, the allocation to innovation and enterprise will be doubled to $1 billion to enable researchers and entrepreneurs to take more ideas from research to commercialisation. One example, the Singapore Institute of Manufacturing Technology received a grant to further existing nanotechnology research and develop a new process for producing self-cleaning paint. This technology was licensed to Haruna Singapore Pte Ltd, a local paint company, for commercial production. This budget will then help match the commercial needs of companies like Haruna with the intellectual property developed in our research centres. It will support entrepreneurs in proto-typing and test-bedding new products and services, and provide seed funding for growing technology enterprises.

Third, R&D will help to address some of Singapore’s pressing challenges. Miss Penny Low has suggested that the Government adopt a broader definition of innovation that delivers not only economic outcomes but also solutions that address social concerns. I am assuming the Member does not think that the pursuit of economic outcome is inherently wrong in its own terms. But this is more about the remit that MTI and its agencies have, which is primarily to focus on economic

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outcomes. But the dichotomy between social and economic, in some ways, is a false one because most of the commercially viable ideas start by seeking to address a need in the market which is a social need usually. So, that is the Government’s approach. We want to encourage research which is geared towards meeting needs that are pressing or that are long term in nature, in the marketplace, in the society.

We established the $1 billion National Innovation Challenge programme to encourage, as Miss Penny Low put it, "systemic innovation" to develop solutions to Singapore’s national challenges. It will not only help solve our problems but also serve to build a better life for Singaporeans and spawn new industries and business opportunities in the process. The first challenge, "Energy Resilience for Sustainable Growth", aims to develop cost-competitive energy solutions for deployment within 20 years to help Singapore improve energy efficiency, reduce carbon emissions, and increase energy options. The Government has also applied the collaborative innovation approach to address longer-term public sector needs. The $450 million Co-Innovation Partnership Programme will help private enterprises to collaborate with the public sector to develop innovative solutions for specific needs in the public sector. Each collaboration can receive up to $1.75 million under the programme. There is a good pipeline, for example, the Ministry of Health is exploring ways to use remote technology to monitor diabetic patients. JTC is looking at how we can transform excavated soft materials into alternative reclamation fill.

In general, we agree with Mr Wee Siew Kim that innovation should be encouraged in as many sectors as possible. We have established grant schemes for test-bedding ventures in areas such as urban solutions, health and

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wellness, lifestyle and media amongst others. We will continue to encourage this diversity and vibrancy in our R&D landscape.

Turning now to tourism. As with R&D, we are breaking new ground in tourism. Last year, riding on the Asia’s recovery and the opening of the two Integrated Resorts (IRs), we welcomed 11.6 million visitors and registered $18.8 billion in tourism receipts, an increase of 20% in visitor arrivals from the year before and 49% for tourism receipts.

Dr Lam Pin Min and Ms Indranee Rajah have asked about the long-term economic impact of the IRs. MTI recently announced that based on initial numbers, we are on track to realise the previously projected $2.7 billion in value-add per year per IR, and 50,000 to 60,000 economy-wide job creation in the steady state.

Mr Chan Soo Sen asked how much of last year’s growth is due to the IRs. It is not possible to give the Member a definitive breakdown but clearly there are many factors at play, we were starting from the low base in 2009; there is also the growth in Asia in general, and there was therefore much greater tourist traffic and then, of course, the IRs which brought a significant addition to our tourism landscape.

But we must recognise that it is still early days yet, with the IRs in their first year of operation. We must expect that the novelty will diminish even as the IRs continue to roll out new attractions. We must also anticipate increasing regional competition for the tourism dollar. It is really too early to draw a definitive conclusion about their long-term economic impact or, indeed, to form a view as to whether we should have more IRs in the future.

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Dr Lam Pin Min and Mr Chan Soo Sen have asked about the outlook for the tourism industry. For 2011, STB’s forecast is for 12 million to 13 million visitor arrivals and $22 to $24 billion in tourism receipts. That is an increase in visitor arrivals that range between 3% to 12% and 17% to 28% in tourism receipts. These are significant increases and, if they are achieved, will take us another step closer towards achieving STB’s target of 17 million tourist arrivals and $30 billion in tourism receipts in 2015.

The reason we have been able to come this far in tourism is partly because of our investments in a strong portfolio of attractions and that has helped us to tap the growth in Asia. We have heard these attractions – the International Cruise Terminal, Gardens by the Bay and the National Art Gallery – these are some of those that are coming in the pipeline that will add to the momentum. Eco-tourism is not really the strongest suit of most cities including Singapore, but tourists who are so inclined can clearly immerse themselves in the verdant environment of the Bukit Timah and Central Catchment Nature Reserves, as well as the Sungei Buloh Wetland Park. It is not really the central prong on which the STB markets Singapore as a tourist destination. But clearly, Singapore can be a launch pad from which to explore those options in the region.

Mr Chan Soo Sen asked about the cultural tourism and STB is working on curating a diverse calendar of events ranging from lifestyle events, like the F1 and the Asian Fashion Exchange, to cultural experiences such as the Chingay Parade, Thaipusam and Hari Raya celebrations.

Taking a longer-term view of tourism, we must acknowledge the constraints on our resources especially land and labour. We cannot keep increasing indefinitely the

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number of visitor arrivals, which Dr Lam described as massive, or the number of workers in our tourism industry. So, we need to place greater emphasis on increasing the value-add we derived from each visitor and raising productivity. To raise the yield per visitor, we need to offer a greater experience and value. For example, STB has made a deliberate effort to create a series of lifestyle events around the F1. Consequently, average F1 visitor spending in 2010 was close to four times that of the regular visitors – more on F&B, more on entertainment and accommodation. Another way to add value, and Minister has elaborated on this already, is to meet the rising expectations of visitors by enhancing service quality. Our GEMS Up (Go the Extra Mile for Services) effort is part of a broader national effort to ensure that we are able to raise service standards.

Productivity push is key. We have had a lot of discussion on it. I just want to make the point that we need to explore ways to enhance efficiency and job redesign. Swissôtel has a programme where selected room attendants are given the additional responsibility of preparing the rooms according to specified individual preferences to enhance guest experience. They are also
entrusted to do their own quality control checks to ensure that cleanliness and all the other expectations are met. By empowering room attendants and imbuing them with this greater sense of pride and ownership in their work, and increasing job value and wages, this programme should help to increase job satisfaction and improve staff retention. We also encourage businesses to identify more areas where such improvements can be made.

We now turn to energy. Even as we pursue growth, we are mindful of the resource challenges that we face. Ms Jessica Tan, Mr Michael Palmer, Mr Liang Eng Hwa and Ms Indranee Rajah have all raised questions over the impact of the

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political turmoil in the Middle East and North Africa on our energy prices and security. It is important that we first recognise that rising energy prices are part of a long-term trend which reflects fundamental demand and supply drivers in the global energy market. Barring major shifts in the global energy supply, energy will become a relatively scarce resource as demand grows, particularly because of a resurgent Asia. If there is a global initiative to price the cost of carbon emissions to the environment, this will exert further upward pressure on energy prices. As a small economy that is almost wholly reliant on imported energy, we cannot be insulated from these global trends.

Against that backdrop of that long-term trend, we must also be prepared for greater volatility in energy markets. In 2008/2009 because of the global financial crisis, there was demand uncertainty and that depressed energy prices. Today, the turmoil in the Middle East and North Africa has created supply uncertainty. It does not affect us directly as an energy source because most of our sources are primarily in the region. But oil futures have risen by about 21% since the protests in Egypt began. Not all of these will translate into increases in our electricity prices: the strength of the Singapore dollar, our use of natural gas as our primary fuel and Combine Cycle Gas Turbine (CCGT) plants, which are very efficient for power generation, and a competitive electricity market will cushion us to some extent. But we cannot be fully shielded from the impact of these increases if they persist.

Diversification is key to ensuring that Singapore continues to have secure and competitively-priced energy supplies. The Government will, therefore, continue to explore the development of viable alternative fuel sources. We now import gas from Malaysia and Indonesia through pipelines. We are building the LNG

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terminal which will provide access to a global gas market and the terminal will come on stream in 2013.

Other options include coal and electricity imports. Coal is relatively abundant, and new technologies can help to reduce its environmental impact, so this is something which we should be keeping a close watch on. The Economic Strategies Committee recommended electricity imports as another possibility. A competitive proposal might allow us to access energy sources in our region while freeing up valuable land and other resources in Singapore. We are reviewing our regulatory framework to consider this option for the medium term.

MTI is also leading a multi-agency pre-feasibility study on nuclear energy. The study is looking at key factors such as technological developments, safety and security issues as well as the economics of nuclear energy. The aim is to inform the Government’s understanding of the risks and possibilities arising from nuclear energy, given the global and regional developments in this space. We cannot rely extensively on alternative energy sources such as wind, geothermal or solar to meet our baseload energy requirements due to our natural disadvantages in these areas. But we will augment our fuel mix with these options where it is technically feasible and economically viable. For example, the Government has invested $31 million in pilot programmes to install solar panels on the rooftops of some HDB buildings by 2015 in order to assess their efficacy.

While we are somewhat constrained on the supply side, we can help ourselves significantly by using energy more efficiently. We can do more with less energy. The private sector has shown this. For example, 3M has made a concerted effort to imbue an energy-

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efficiency culture in its manpower team and, as a result, they have achieved a 35% improvement in energy efficiency, with a cumulative cost saving of US$1.4 billion. We can aspire to do the same – as households, as companies and as a nation as a whole.

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The key aspect in managing such demand is pricing energy right. Consumers will adjust their behaviour when they appreciate the full cost of energy as reflected in its price. Conversely, subsidising energy will only lead to inefficient use of a scarce and precious resource.

Some households may face difficulties in coping with rising and volatile energy prices. Our approach is to provide targeted assistance to those who need it. In Budget 2011, the Finance Minister has announced $200 million in utilities rebates which will help Singaporeans cope with high energy prices. I can put it in more specific terms. This year, a 1-room household will receive enough in rebates to cover most of its annual electricity bill, while a 3-room household will receive about five months' worth of electricity bills in rebates. These are signficant rebates which are provided in a targeted manner to those who will need them the most. Since 2007, the Government has provided close to $800 million of such rebates, benefiting about 800,000 households.

Clearly, beyond households, we want to encourage energy efficiency amongst all industry players, across sectors, and the Energy Efficiency Programme (E2PO) coordinates these programmes.

Ms Indranee Rajah asked about the electric vehicle (EV) pilot project. This is another R&D initiative. The project will test if EVs can become a viable mode of transport in Singapore. We are currently

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developing the charging infrastructure for the pilot. The first charging stations are due to be completed by mid-2011. The first EVs should arrive in Singapore around that time. We will run the pilot for about two years, and use the data to evaluate the costs and benefits of EVs.

Mr Chairman, if I may conclude, as the Minister had emphasised earlier, growing the economy requires efforts at various levels. First, we must grow capabilities. R&D is one of the ways we can try which MTI does this. Second, we must seize opportunities arising in Asia. MTI's efforts in tourism seek to do this. Third, we must address our resource constraints. Our multi-pronged approach to addressing our energy challenge will help put the economy on the path of more sustainable growth.

Inflation

Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, recently, there have been many reports regarding inflation led by the increase in prices of various consumer products. In addition, much has also been debated in this House in our recent Budget debate. While there are views that the increase in prices is led by car and housing, others feel that prices of most goods and services have gone up and will continue to go up. As a result, while there is a fear of this inflationary phenomenon, I have received feedback that Singaporeans are also unclear and confused with regard to the details of the inflation we are facing and how it affects the different segments of our society. Many organisations in Singapore, including the Government, have reviewed their programmes and schemes to help Singaporeans cope with this inflationary phenomenon.

With a sizeable proportion of low-income residents living in my ward, Kaki Bukit Division, I am very concerned if they are affected by the rise in prices. In

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particular, I am concerned that many of the middle- and the lower-income Singaporeans are finding it difficult to cope with these increases, especially in terms of food and transportation. From the statistical point of view, I would like to ask the Minister to explain how the current inflation is affecting the various income groups according to the major items that they consume. In particular, which segment of the society have been the hardest hit by the recent inflationary phenomenon?

Monitoring retail prices

Mr Liang Eng Hwa: ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Recently, I went to the People's Association to attend an event. Since it was still early, I went to a nearby coffeeshop and ordered a cup of coffee with less sugar. The coffee shop assistant brought me the coffee and I was about to take out 90 cents. Before I even handed it to him, he said, " yi yuan wei ding ". I was puzzled – I did not know what he meant by " yi yuan wei ding ". He immediately explained that one cup of coffee is $1; it is a set price and cannot be bargained. I understood and appreciated his humour. This little episode gave me a good first-hand experience of the inflation.

I heard that even zhuchao stalls raised their prices. A plate of hor fun now costs $3.50; the price of a can of Coke Light rose from $1.10 to $1.30.

I would like to ask the Minister how the Government is going to monitor the retail prices and if there are any anti-competition practices. We want to keep the price at a level that people can accept. Do we have enough resources to monitor effectively?

The Chairman: Mdm Ho Geok Choo, take both your cuts together, please.

*Cols. 3823-3824.

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Red tape and productivity schemes

Mdm Ho Geok Choo: Mr Chairman, Deputy Prime Minister Teo Chee Hean said on Tuesday that Singapore would stress a culture of continuous improvement and learning in the productivity drive. One missing element here is empowering our people to think of alternative means of reaching the same results.

I know of a HR professional with more than 20 years of experience abroad as a consultant at a well-known bank whose application for certification as a consultant was stalled by the secretariat staff just because he could not show that he had chalked up 1,000 hours of consulting work in Singapore prior to the application. His application was automatically rejected.

An appeal was made. This HR professional was one of the pioneers of the Management Services Division (MSD) of PSD. He was asked to show evidence of his consulting work with MSD and Ministry of Finance some 30 years ago. Obviously, MOF was unable to help as they do not have the records. It was only through intervention that this HR professional was asked to appear before interviewers who, upon seeing him, were very apologetic and immediately sorted out his application.

Mr Chairman, I think there is a gap between what the administrators understand of their role and the expectations of the policymaking body. The more important point really is that it would appear that the administrators are not empowered to think from the inside out. They are satisfied to just go by the rules and that is how rigidity sets in.

I hope the Government will launch a campaign on thinking from the inside out, so as to encourage, firstly, service providers to go the extra mile to resolve

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problems and, secondly, employers to empower service providers to accommodate alternative but equally effective ways of doing things.

SMEs and productivity

Mr Chairman, in helping SMEs, it is good to see five trade bodies here set up the Enterprise Development Centres (EDCs) to train their members to innovate and be more productive. Sir, have these efforts reached their target group, especially the smaller SMEs? How effective have the EDCs been in helping SMEs step up their productivity drive?

The SMEs, which are trade body members, are more likely to be able to leverage on the network advantages mentioned by Deputy Prime Minister Teo Chee Hean. Which brings one to question how many SMEs do not belong to a trade body and thus are not as plugged-in to the economy and Government initiatives as those who are. For those outside the network, what impact do they have on productivity in Singapore as a whole?

I acknowledge that the Government has been tireless over the past year in launching productivity initiatives. Some SMEs, though, feel that the Government should not introduce too many new productivity programmes but should instead make it easier for them to adopt existing schemes and to allow them time to show results. Apart from the Productivity and Innovation Credit scheme introduced last year, SMEs are also offered a battery of other schemes, some with similar sounding names. The range is bewildering to individual businessmen. What can be done to tidy up this web?

Orchids

Mr Chiam See Tong (Potong Pasir): Sir, the national flower of Singapore is the orchid. Singapore has expertise to grow orchids on a commercial basis. Singapore

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also has the expertise to collect and distribute orchids all over the world. Singapore should develop itself to be the world distribution centre for orchids, just like Amsterdam has done so for tulips and other flowers. In this way, 100,000 or more jobs could easily be created for our own people.

Consumer protection

Mr Yeo Guat Kwang (Aljunied): Mr Chairman, Sir, as the President of Consumers Association of Singapore (CASE), I would once again urge the Ministry of Trade and Industry to extend the five-day cooling-off period to the beauty industry. CaseTrust-accredited spas are already giving their customers a cooling-off period to reconsider their purchase of all beauty packages. In view of the recent Subtle Senses case, the CaseTrust Council is exploring to introduce the escrow account and insurance for fees collected as a requirement of CaseTrust accreditation scheme for the spa industry, just like what we did for the private schools previously to protect the advance payments made by all consumers.

I hope the Government will require all beauty salons and spas to give their customers a cooling-off period. As consumers, usually the ladies, feel vulnerable when therapists start to sell packages to them during the treatments.

Next, I understand that MTI has concluded the public consultations for the lemon law. I would like to ask when the changes to the Consumer Protection (Fair Trading) Act (CPFTA) and the Hire Purchase Act on the provisions of the lemon law so that we can better protect all consumers from the purchase of defective products.

Sir, the Consumer Protection (Trade Descriptions and Safety Requirements)

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Act was passed in 1975, which was a long time ago. The Act prohibits false trade descriptions and stipulates that breaches of the Act attract a fine or imprisonment or both. While the Act has been set out to protect the rights of consumers and assure them that they are getting what they are paying for, the Act has not always achieved this goal.

The Act currently lists only 45 products as controlled goods. These are mainly home appliances and components of or related to some of the other petroleum and gas system. I would like the Ministry of Trade and Industry to look into setting safety standards for all goods. This would then mean that all the basic consumer products will be set with acceptable limits of chemicals, for example, and safety standards so that the health of the consumers will be better protected.

The Ministry should also require importers and manufacturers to state the age group of consumers that the goods are intended or suitable for, and also make sure that all the contents of health warnings or hazards are stated clearly for consumers to make an informed choice.

The Minister of State for Trade and Industry and Manpower (Mr Lee Yi Shyan): Mr Chairman, let me first address the concerns on inflation, especially Assoc. Prof. Dr Muhammad Faishal's query on how inflation has affected the various income groups.

Singapore's headline inflation rose to 2.8% in 2010, from 0.6% in 2009. The lowest 20% income group experienced the lowest inflation rate of 2.4% compared to 2.7% and 3.1% for the middle and the highest 20% income groups respectively. Last year's inflation affected the higher-income group more than the rest. This year, the Monetary Authority of Singapore is expecting

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headline inflation to be between 3% and 4%. The four key drivers on inflation are: higher car prices, rising accommodation cost, higher wages and rentals and higher food prices and utilities. While some of these price increases, for example, the higher cost of food, utilities and service-related items, affect a broad segment of Singaporeans, the spike in car prices would only affect every three in four households which purchased new cars last year. Likewise, for accommodation cost, 87% of households already live in housing that they own. The increase in imputed rental in the CPI will not affect their cash outlay at all.

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Mr Chairman, now I will speak in Mandarin.

( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Mr Liang Eng Hwa has asked how MTI monitors prices and monopolistic practices in the market and whether Government has enough resources to monitor the situation effectively.

Mr Chairman, recently MTI set up the Retail Price Watch Group to monitor the prices of necessities and food to prevent monopolistic practices and promote money-saving tips. The Watch Group have focused on four areas.

First, keep track of price fluctuations. The tracking of prices is mainly done by the Department of Statistics. Currently, the Department of Statistics regularly monitors the sale of necessities, tracking the price of items such as rice, fish, meat, eggs, vegetables island-wide, and even prices of chicken rice and fish ball noodles commonly sold at food centres. From this month, the Department of Statistics will also monitor food prices at food centres, to see which stalls have raised prices. I

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think the coffee stall patronised by Mr Liang can also be included in the list. The Retail Price Watch Group also welcomes more people to provide more tip-offs and take part in the tracking of prices.

In fact, the Watch Group suggests that Mr Liang visit Bao Hua Drinks Stall and Ah Di Drinks Stall at Block 527, in Ang Mo Kio Cheng San Constituency, to enjoy coffee at just 50 cents. According to a report in the New Paper dated 15th February, there is another stall in Cheng San Constituency called "Lao Li Coffee". I have nothing to do with this stall. [ Laughter. ] It also sells freshly brewed coffee at 60 cents. MP Mr Liang Eng Hwa said that $1 is a fixed price, but I say this is not fixed as the market is very competitive and people are trying all means to fight for business. Thus, not all can fix the price at $1.

Second, ensure that the market operates highly effectively. For the market to operate effectively, getting the support of big retailers is the key. Big retail chain stores are all over the island. If big retail shops do not raise prices, it will have a positive effect on stabilising prices. Currently, NTUC FairPrice has promised that for the next six months, prices of its 500 housebrand items will remain the same. Apart from NTUC FairPrice, Cold Storage, Giant and Shop N Save have also made similar commitments. I hope that the other retailers will also follow their example and offer low-cost options.

Third, take tough actions against monopolistic and profiteering practices. The newly established Retail Price Watch Group includes representatives from Competition Commission of Singapore and Consumers Association of Singapore (CASE) and their role is to monitor and take action against businesses involved in profiteering, engaging in anti-competition or unfair practices, as well as those who fail to deliver what they promise. In the event that the Watch Group finds any

*Cols. 3825-3826.

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shops or stalls involved in inappropriate business practices, the Competition Commission and CASE will take action and investigate.

Fourth, educate the consumer to understand how the market works. For almost all daily necessities and food, there are relatively low-cost alternatives or brands available. The Watch Group will improve communication with consumers through various ways. Our education efforts will focus on letting the consumers know that they have many choices, and be aware of various money-saving tips. The Watch Group launched a new hotline 64611880 and website, www.pricewatch.gov.sg today. This will make it more convenient for our consumers to give feedback and suggestions. I hope that members of the public will generously share tips on getting value-for-money deals. Of course, they can also report businesses that raise prices unreasonably, so that the Watch Group can understand the reasons and source of price increases.

( In English ): Sir, I would like to move on to address concerns of raising costs for SMEs. As pointed out by some Members, some SMEs may also face rising costs, especially for wages and rentals. Many of the measures that the Minister for Finance announced in his Budget Speech to help companies, such as the one-off SME cash grant of 5% of the company's revenue capped at $5,000, corporate income tax rebate up to $10,000, and the Productivity and Innovation Credit will help SMEs cope with rising costs. But even as they address the challenges of rising costs, SMEs should not lose sight of the more important task of raising productivity by embracing innovation, automation and workers' training.

To address short-term cost pressures, we need to reinvent our businesses for our long-term competitiveness. Consider,

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for instance, Q&M Dental Clinic which has a chain of 40 clinics and two dental centres across the island. Q&M faced the problem of increasing material cost eating into their profits. It was difficult to reduce cost from their manual pen-and-paper procurement system. The system was not only prone to human error but also resulted in wastage and many unhappy staff would have to spend time doing very tedious paperwork. These problems are not uncommon among SMEs. Q&M decided to tap on SPRING Singapore's Technology Innovation Programme to develop a computerised procurement system with a database of nearly 4,000 products. This new system allows each clinic to easily place orders, track its monthly expenditure against budget, and reduce wastage through timely reminders on expiry dates of their materials. It saved them many hours of manual submissions and queries. It led to higher staff morale and teamwork. With its new system in place, Q&M sees scope to eventually lower material cost to around 5% of its revenue from the current 8%. By freeing up their staff from administrative chores, Q&M can now commit more time to human resource training as the next phase of their productivity efforts. Q&M has recently embarked on their customer-centric initiative and are sending their staff for customer service training to improve customer service. What we see here is one good step leading to another, along the journey of productivity improvement.

Let me give Members another example of productivity improvement in one of our well-known seafood restaurants, Jumbo Seafood. There was a time when they used to receive frequent customers' feedback on inconsistency of taste across their outlets, specifically for the chilli crabs. There are customers who prefer certain outlets and shun others. The reason was simple. Everyday, each individual kitchen had to marinate and prepare their own sauces and food items.

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This was done before work, in between the afternoon and night shifts. The difference in taste and quality across outlets was affecting customers' satisfaction, brand recognition and market positioning. Jumbo Seafood then decided to set up a central kitchen to prepare their sauces and fast-selling items. This allowed them to maintain consistency and freshness in the food quality across their outlets and to cut down the repetitive work carried out at every outlet. Without having to prepare food each day before work and after the afternoon shift, overall working hours were shortened and their outlet staff had more time to rest and get ready for the intense night shifts. This had led to higher workers' productivity. The central kitchen also reduced the need for large kitchen areas at each outlet, thus creating more space for tables to increase revenue which also means land productivity versus worker productivity. After setting up the central kitchen, Jumbo Seafood experienced a surge in sales with more repeat customers and an improved market position. In fact, F&B chains equipped with central kitchens are in a very good position to offer additional value proposition, such as off-site catering service and takeaway sales. These new services will actually raise the sales per worker and make better use of the equipment and machinery which means assets productivity. This is one way to expand sales beyond the limitation of physical shop fronts.

To help more companies to do what Q&M and Jumbo Seafood have done, the Government will be injecting substantial resources in the next five years, including the $850 million Enterprise Development Fund announced by the Minister for Finance. This will be managed by both IE Singapore and SPRING Singapore. The fund will support broad-based efforts to help all SMEs upgrade our industry clusters and help our high-growth companies build up

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further capabilities and spur entrepreneurship. It will also help our companies expand overseas. The additional $1 billion injected into the National Productivity Fund will give us more resources to support our industries and companies moving towards higher productivity. The Government will continue to ensure SMEs are aware of the various schemes.

Mdm Ho Geok Choo asked if our Enterprise Development Centres are effective in reaching out to SMEs to improve productivity, and whether our system schemes could be simplified. The Enterprise Development Centres (EDCs) – five of them now – play a key role, both in reaching out to SMEs, regardless of their membership with Trade Associations and Chambers, to improve productivity. They help SMEs understand and navigate the grant application process. The EDCs proactively engage the SMEs to educate them on relevant Government schemes and provide advice in areas such as finance, operations and management. Some EDCs have helped SMEs to diagnose their productivity's performance and develop appropriate plans to move ahead. I am pleased to note that in 2010 alone, the five EDCs have provided assistance and business advisory services to about 10,000 SMEs, out of which, 900 also embarked on the productivity management programme under the SME productivity roadmap. In our grant application process, the Government continues to simplify our schemes by having enough customisations to best meet the wide diversity of SMEs' needs. Broad-based schemes are designed to be as simple as possible for SMEs to use. For instance, consider the iSPRINT scheme.

SMEs looking for packaged solutions pre-qualified by IDA to support basic business functions, such as accounting and payroll, do not need to submit any business proposals under the Increase SME Productivity with Infocomm

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Adoption and Transformation (iSPRINT) or grant application form. They can proceed with the purchase of the solution, implement it and make that claim through IDA, all in about eight weeks. Since its launch, more than 750 SMEs have benefited from iSPRINT programme, generating a projected $400 million in value-added over the next three years.

For people capability development, involving larger sums of money, more customisation is needed to better understand the SMEs' needs so as to provide the right time of assistance. For example, SMEs looking to build capabilities, such as branding, had to go through a diagnostic process to identify the key areas which need to be addressed and most appropriate scheme for them. Behind the scenes, of course, we have further integrated the collaboration among agencies, such as SPRING and IE Singapore to better serve the common clients more effectively.

Although the Government will do what it can to make the schemes easier to understand and access, I must also emphasise that SMEs themselves must be proactive in wanting to improve before the right assistance can be rendered.

Over the years, IE Singapore has rolled out a number of programmes to take SMEs overseas. They include market studies, meeting potential partners and connecting with Singaporeans' firms already in overseas markets. IE also runs programmes that help companies build specific strengths in branding, franchising, intellectual property protection and access to finance. For first-timers, IE also runs SME Market Access Programme. So far, 87 SMEs have gained from this programme.

One of them is Bee Cheng Hiang, a very well-known Singapore-based barbecue meat retailer with more than 130 overseas outlets. Recently, it made its

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first foray into Seoul. To prepare for this, the company applied for intellectual property rights for its brand in Korea and tapped on the programme to reduce the associated costs.

As the opportunities in Asia grow, MTI and our economic agencies will step up efforts to open doors. We will also facilitate projects for SMEs through the many bilateral G-to-G platform and business councils we have established with many countries. SMEs should also tap on our wide network of 18 FTAs, including those with key Asian markets, such as China and India, to enhance their market access. We will keep improving our outreach to SMEs on how to take advantage of the FTAs.

Mr Teo Siong Seng asked about the role of Trade Associations and Chambers (TACs) in helping SMEs make use of productivity-related schemes and to expand overseas. Indeed, TACs are our important and natural partners. As representatives of the various industries, the TACs understand the needs and aspirations of their members and the challenges facing different sectors in improving productivity or expanding overseas. It also have many SMEs in their membership. TACs are thus well-placed to advise SMEs on using the various Government's programmes for productivity improvement and internalisation.

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We have a long history of working with TACs. We continue to explore new ways in helping TACs. For instance, we are now exploring with TACs to improve the needs and interests of their members when applying to use programmes under the National Productivity Fund. This may be one way to ease the administration burden on smaller companies. The TACs have been playing an active role in leading business missions and trade fairs. Last year, the various Chambers led a total of

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150 trade fairs and over 50 missions to overseas markets, benefiting some 3,300 companies.

Before I conclude, Mr Chairman, let me address Mr Chiam's question on orchids. MTI works closely with agencies like the Agri-Food and Veterinary Authority of Singapore and IE Singapore to facilitate the growth of Singapore's orchid export sector. Our efforts have seen our global market share of orchid exports grow from 7.3% in 2007 to 11% in 2009. Today, Singapore is the third largest exporter of fresh orchids. We promote orchid exports by negotiating free trade agreements that remove or reduce tariffs and non-tariff barriers imposed by our major markets. For instance, in Australia, one of our major export markets, we managed to secure exemption from mandatory fumigation for Singapore's orchid exporters. We will continue with such efforts.

Mr Chairman, let me conclude, our SMEs are the backbone of our economy, making up 99% of the enterprises in Singapore. Six out of every 10 workers in Singapore are hired by SMEs. Investing in our SMEs is investing in our future.

The Senior Parliamentary Secretary to the Minister for Trade and Industry (Mr Sam Tan Chin Siong): Mr Chairman, Sir, let me, firstly, thank Mr Yeo Guat Kwang for his feedback and keen interest in championing consumer protection.

Singapore has a multi-tiered consumer protection framework with caveat emptor , or "buyers beware", as its cornerstone. Given the diverse and evolving range of consumer products and services, consumer education and awareness to enable them to discern the best deals for themselves, and also to reject unrealistic promises is the most sustainable approach. This has been the principle

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which CASE has been promoting all these years. CASE’s active role in consumer education is thus key to our overall consumer protection framework.

Our consumer protection legislation provides the next level of defence. Our legislation needs to carefully balance risks against costs, as sweeping and prescriptive legislation will lead to higher business costs that may be passed on to the consumers. So, we regularly review and update our legislation to be in line with the international best practices.

Mr Yeo Guat Kwang enquired on the progress of the consumer product safety framework. Sir, I am pleased to report that MTI has completed a review of the consumer product safety framework. Beyond the 45 categories of controlled goods mentioned by Mr Yeo, we will be also enhancing our consumer products safety regime to cover general consumer goods to align them with the latest international standards. MTI will be issuing the Consumer Goods Safety Requirements Regulations (CGSR) to give SPRING Singapore the power to stop the supply of consumer goods that do not meet international safety standards. Under these regulations SPRING will also have the power to direct suppliers to inform their customers of the potential dangers of such goods. Suppliers who do not comply can face a maximum penalty of up to $10,000 fine or imprisonment of up to two years, or both. The CGSR, drafted with feedback from the stakeholders, such as CASE, consumers and retailers, will take effect from 1st April 2011.

Mr Yeo Guat Kwang mentioned the need to provide safety information such as age group, health and hazard warnings on products. With the implementation of the CGSR, all consumer products are required to meet the applicable international standards. This will actually protect the consumers more effectively as

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compared to merely asking them to supply the product information.

In addition to this, currently many manufacturers are already stating information such as suitable age groups and health warnings on their products. Consumers who find such information useful will likely to purchase these products, which will encourage importers to bring in more products with safety information clearly stated. Nonetheless, we will consider a regulatory approach if the market mechanisms are unable to provide consumers with information critical to the safe use of the products.

Mr Yeo Guat Kwang also asked for an update on the lemon law. At the last Committee of Supply debate, I mentioned that MTI was studying the necessary legislative changes to introduce a lemon law in Singapore. Most of the key features of lemon laws, as implemented in other developed economies, are already present in Singapore’s legislation. For example, under the existing law, a consumer may reject goods purchased within a reasonable period and obtain a refund if the purchased goods are not of satisfactory quality. However, the lack of express legal provisions for the repair and replacement of defective products in the current legislation make it less easy for consumers to seek these remedies. By providing greater clarity, the new provisions will address the problems of some suppliers refusing to replace a defective product after repeated failed attempts at repair. I am pleased to announce that we have completed the public consultations on the proposed legislative changes. The feedback from the public has generally been very positive. We intend to move the legislation on the lemon law in Parliament later this year.

Our approach is to limit the legislating of specific consumer practices to targeted industries, where the proliferation of

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errant businesses makes it difficult for the industry to self-correct through consumer education and accreditation alone.

Mr Yeo also asked whether the five-day cooling-off period can be extended to the beauty industry. Sir, the cooling-off period has already been part of the CaseTrust accreditation programme, launched with MTI’s support. It recognises and encourages good practices such as giving consumers a cooling-off period and not selling to customers during treatment. The accreditation programme enables consumers to make better choices without going down the route of imposing prescriptive regulations on the entire industry, which will result in higher business costs that will
ultimately be borne by the consumers. As the accreditation programme has just been launched last year and it is currently being enhanced, we believe it will be best for now to monitor the effectiveness together with CASE and we will tighten the regulations in the industry if necessary.

The Chairman: We have time for clarifications. Ms Jessica Tan.

Ms Jessica Tan Soon Neo: Mr Chairman, I would like a clarification with regard to the commercialisation of R&D. Could the Senior Minister of State share more about the IP framework in terms of how we will support and encourage development of IP in Singapore? He talked about commercialisation of IP, but could he share a little more about the IP framework to encourage companies to develop and base their IP in Singapore?

Mr Iswaran: May I just clarify, are you referring to the framework as in how IP is shared between institutes and companies?

Ms Jessica Tan Soon Neo: That is right.

Mr Iswaran: Mr Chairman, to answer the Member's question: basically, our

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research institutes adopt quite flexible models and you will find that there is a range of arrangements in how IP is shared with the private sector. That can start from a wholesale sale of the IP in which case the private enterprise takes it over after a period of co-development. There are instances where they jointly own the IP and there are other instances like the one I highlighted in my speech where they are licensed. The approach is a fairly flexible one. The key objective is really this: first, we want to ensure that the research that is undertaken in our institutes has productive application which means collaboration with the private sector is quite essential. But at the same time, we want to ensure that our institutes and the researchers get a fair deal. Within those broad parameters, they are fairly flexible in their pursuit of a range of options.

Mr Yeo Guat Kwang: Just a point of clarification, Sir. The Senior Parliamentary Secretary mentioned that the lemon law could be passed later this year. Could he be more specific? Could it possibly be the next available sitting?

Mr Sam Tan Chin Siong: Sir, MTI and the other agencies working on this project are aiming to move the Bill in the later part of this year. It probably will not be at the next sitting but it will be at the next few sittings from today.

Mr Liang Eng Hwa: Sir, I would like to ask the Minister the strong Singapore dollar has been the key macro weapon to combat imported inflation. However, we are increasingly dependent on the external sector like tourism, exports to grow our economy. I would like to ask the Minister how would the strong Sing dollar, which has been hitting new highs, impact industries like our tourism and export sectors. Also, how would that impact the companies that we are encouraging to

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internationalise? I must declare my interest: I do work in a financial institution that deals with the markets.

Mr Lim Hng Kiang: Sir, as the Member correctly pointed out, there is a very strong trade-off involved. Our monetary policy is hinged on the value of the Singapore dollar, the exchange rate policy. At the same time, we do have other factors to consider – our export market, manufacturing as well as tourism and other sectors. But taking all these into consideration, so far, the Monetary Authority of Singapore (MAS) has a dual role unlike other central banks. Some central banks only have inflation as the key role but the MAS' role is to nurture stable economic growth, which means competitiveness as well as keeping the economy on a stable front, meaning also an inflation role. This is the balancing act that we will have to continue to meet.

Ms Jessica Tan Soon Neo: Sir, I would like to ask the Senior Minister of State with regard to the strategies for the efficient use of energy. I know he talked a lot about pricing and pricing it right to ensure that we drive the right behaviours. Beyond pricing, have we looked at other strategies in terms of use of technology, innovation, timely information-sharing to both industry and households to enable and develop more efficient energy consumption behaviour?

Mr Iswaran: Mr Chairman, I thank the Member for the question. The point about pricing: to be very clear that that is the fundamental requirement because if the price is not right, then we cannot expect behaviour to adjust which is the desired outcome.

Having said that, we are not just relying on price mechanism. There is a slew of efforts underway in a range of sectors. If the Member looks at the building sector, for example, we have the patent marks, and so on, which are really

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designed to encourage developers to adopt energy-efficient building designs and we have already seen that coming on-stream.

If the Member looks at the industries, we have the Efficient Energy Programmes Office (E2PO) which focuses on various programmes which are targeted at and helping industries develop energy-efficient solutions. Because the industries are so diverse, you need fairly customised solutions and so there is a whole new industry around this, of energy consultants.

If you look at households, we got the ticks that MEWI does and this is part of the process of encouraging our consumers to be more prudent in the way they select their appliances. We are also testing out smart meters. There is a trial run that is taking place in Singapore. The real purpose of these smart meters is to give households and residents a real-time sense of how the consumption of electricity on their part is affecting their bill so that they can correct it. Normally there is a bit of a disjoint because we consume, then the bill comes later. So, this is to give them a bit more of a real-time feel and they can track it and make adjustments.

There is a range of measures and I think those, together with our core approach on pricing and targeted subsidies, are really designed to create a more energy-efficient system.

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Miss Penny Low: Sir, the Senior Minister of State said that all innovations, whether academic or social, will ultimately benefit the user. I fully agree. As such, can the Minister also clarify why do we then continue to use language and focus on products or supply or services-centric and specific innovations rather than cause-specific? As we hear on Radio FM93.8,

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"change your perspective and change your life". Otherwise, outcome may be just incremental improvements rather than real innovations.

The second clarification is on collaborative innovation and funding schemes. The Senior Minister of State repeatedly mentioned public and private sector collaborations. I cheer that but the end-user, the people sector, is conspicuously missing from his entire speech. This serves the point I made earlier on in my speech that the $16 billion fund is very much supply-side-centric but most transformational innovations today are driven by demand-side innovations. I wonder if the Senior Minister of State can clarify if there would be more schemes to look into demand-side innovations and push it to the limit and transform some of the thinking and paradigms that we have today and heavily include people and the people sector in the entire innovation drive.

Mr Iswaran: Mr Chairman, I regret that the Member takes exception to the vocabulary we used in describing innovation. But this is a reflection of the DNA of what MTI and its agencies are about. Because, at the end of day, MTI and its agencies, have been charged with economic outcomes. Clearly, we have got to keep focused on that. That does not mean you jettison all social and other considerations. Indeed, as I have explained, for example, when you talk about meeting a healthcare need – that is actually quite social in its outcome but it has also got an economic dimension. If you want something to be sustainable in the marketplace, then you need a certain economic viability test to be applied to it.

I think the Member also made a point about the people sector and involvement. Sir, we have a range of programmes available. I do not wish to enumerate them in detail but it would suffice to say

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that there have been instances where social enterprises and the people sector have taken advantage of some of them. Perhaps not to the extent where the Member would desire.

I would also draw the Member's attention to the fact that the Ministry of Community Development, Youth and Sports, through its ComCare and other broad programmes, also seeds a great deal of these kinds of people-sector ventures. Sir, I think we need to look at it in totality and not just from the context of what MTI and its agencies are doing, although even within that context we have got considerable allowances made for these kinds of efforts. I think those were the main points the Member made.

Mdm Ho Geok Choo: Mr Chairman, I would like to seek a clarification with Minister of State Lee Yi Shyan. The Minister of State has shared how paper processing and procedures have been streamlined for more effectiveness in the agencies. I would like to ask what special programmes have actually been implemented in agencies to empower service providers in agencies to be more flexible and to take initiatives beyond and to go beyond provided guidelines.

Mr Lee Yi Shyan: Mr Chairman, under the Ministry of Trade and Industry we oversee an important portal called the "Enterprise One". In the "Enterprise One" portal, there are many business-related applications that have been put online so that users, large and small companies, can go to it and download applications very efficiently. Obviously, whether it is a Ministry, statutory board, or even a private-sector company, simplifying user interface is so critical because of the ongoing changes in contents, in products and services offered and also in meeting the changing needs of customers.

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PSD responsible for the civil service-wide improvement of efficiency, for example, cutting red tape, has very aggressive programmes. I participated in some of them and I am aware that, for instance, they look at Six Sigma, they look at training black-belters in their organisations. These are people that are trained and put into different departments to relook at processes in a very fundamental way with a hope that they can greatly simplify the efficiency and the user experience.

Mr Zaqy Mohamad (Hong Kah): Sir, I think the MTI's position on productivity is quite clear. I think most companies probably understand. We want to drive productivity – while there are foreign worker levies on one side, on the other hand, we give rebates and incentives to companies. The issue is for many smaller companies, for example, they are never going to transform overnight. I think the easiest way for them is to transfer the cost of increased levies into cost to the consumers. To some extent for the Ministry, it is a little difficult to balance. I would like to hear from the Ministry how it plans to balance productivity on the one side and potential inflation on the other.

The second issue with SMEs is the issue of cashflow. Now that we have increased levies, they get hit on a monthly basis. But cashflow for SMEs – if you understand their business – many of them have very poor collection terms, they tend to face collection issues. At the same time as well, they can only collect items like GST claims once every quarter and sometimes even later, depends on when they get revenue.

These are the two areas for my clarification. I do have to commend MTI for sharing a lot of examples of small companies making it good. It is important that we have small companies to be the champions because the SMEs like to say that a lot of examples MTI gives tend to

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be of big companies with scale. I think it is the right direction to highlight SME examples.

Mr Lim Hng Kiang: Sir, I do not want to underestimate the complexity and the difficulties we face. Our approach is to take it at various levels: at the overall economy level, at the sectoral level, at the firms' level, at the workers' level.

As the Deputy Prime Minister Teo Chee Hean explained, we take some issues which cut across different areas, so if it concerns the low-income group, we have another group to address it. Some issues can also be horizontal issues, like IT applications, so we have another scheme for it.

As Minister of State Lee Yi Shyan explained, we have a very elaborate outreach programme to the SMEs through either the trade associations, which then gives us a very sectoral approach, or through the EDC which is a very broad-based approach. Ultimately, of course, the heavy lifting comes from the firms themselves. They must want to improve. There are a lot of schemes and we are open to suggestions how we can make the schemes more easily available to them. But I do not doubt the heavy lifting will, in the end, be borne by the firms and we hope that the firms will rise to the occasion. The impetus to all these is really competition. The companies must realise that this is the way forward. We are providing all these schemes, we are providing all the mechanisms and the help. If they do not restructure and change and others do, then the competition will come from the other companies who will do much better than them. In the end, that would be the main impetus.

Ms Jessica Tan Soon Neo: Sir, first of all, let me thank the Minister, Senior Minister of State, Minister of State and Senior Parliamentary Secretary for

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providing us with the insights on the policies and sharing with the various strategies. We have covered from productivity, innovation for companies all the way to energy and even orchids. We looked at the needs of industries, SMEs, MNCs as well as the consumers.

Thank you for that insight. It was heartening to hear from the Minister that apart from the policy approach, there clearly is a lot of thinking around the enabling aspects and it is at all levels: the economy, the sector, the firm and worker.

With that, I beg leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $655,126,100 for Head V stand part of the Main Estimates.

The sum of $7,432,227,600 for Head V stand part of the Development Estimates.