HEAD U - PRIME MINISTER'S OFFICE

Head U – Prime Minister's Office

The Chairman: Head U – Prime Minister's Office. Mr Matthias Yao.

New and old citizens

Mr Matthias Yao Chih (MacPherson): Sir, I beg to move,

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

Sir, Singaporeans take pride in Singapore being a multi-racial, multi-cultural and multi-religious society where people of different ethnic origins and beliefs live and work side by side in harmony and mutual support.

We are a multi-racial society because our forefathers came from different parts of the region and the world to make Singapore their home. They came from the Malay Archipelago, India, China, the Middle East and beyond. They worked hard together and raised their families here. Today, their descendents, that is, we, have a nation and a home called Singapore.

Through the years of nation-building, this society of different communities has forged a way of life where it is uniquely ours. It has an identity which is perhaps still very hard to define but, certainly, Singaporeans know what being Singaporean is. When we go overseas, we can spot a Singaporean from a mile away.

In recent years, it has been more difficult to keep growing our economy at a strong pace. An opportunity came by when the economic cycle turned up as explained by the Finance Minister earlier this afternoon. But our workforce did not have the capacity to take on all the opportunities that came our way. We had to employ more foreign workers and approve more applications for citizenship to enlarge the workforce. However, when their numbers became larger, when the presence of foreign workers and new immigrants became more visible, Singaporeans began to feel that the Singaporean way of life was being encroached on or even slowly changed. Some do not like it. While they have no problem living in a multi-racial, multi-cultural society, and indeed that is what Singapore is, they nevertheless feel that it

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has to be a Singaporean society and not a new imported society that is alien to those born and bred here.

This is a delicate development that we need to pay close attention to. On one hand, even as we slow down on immigration, we cannot turn it off completely. We still need to continue to attract well-qualified foreigners to become our citizens to make up for the lack of a larger population base. To do that, we need to offer these foreigners an attractive proposition. And we should appreciate that these new citizens bring with them variety and diversity that will enrich our society. In fact, we should even say that the new immigrants ought to be proud of the deep heritage they come with and invite them to share it with us.

On the other hand, Singaporeans also want them to be quickly assimilated and become Singaporeans not just in legal status but also in preferences, attitude and behaviour. In other words, be more like us, the old citizens. They do not want their neighbourhoods and their workplaces to feel more and more like foreign localities.

Sir, we must not let tension arise between the old and the new citizens. We build Singapore into what it is today by gelling immigrants from different origins into one cohesive society. We must press on with this great effort. In this respect, I would like to ask the Prime Minister whether his Office will introduce any policy initiatives that will help to achieve a balance between the needs of new citizens and the concerns of the old ones.

Citizens and permanent residents

Ms Indranee Rajah (Tanjong Pagar): Sir, we have always had the debate on foreign talent and foreign workers in Singapore. In the past year, however, Singaporeans' concerns about foreigners and permanent

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residents (PRs) living and working in Singapore have reached a new level of intensity. The concerns expressed by Singaporeans range from complaints that foreigners are taking away their jobs, that PRs are snapping HDB flats and driving up prices beyond the reach of ordinary Singaporeans, thus depriving Singaporeans of flats, to overcrowding on the MRT. And explanations by the Government as to why we need foreigners and PRs only seem to elicit a general feeling that Singaporeans are less appreciated than foreigners. If you think of Singapore as a family, the Singapore citizen is like a biological child asking: why do you care for my foster brother or sister more than me? That seems to be the feeling.

Why is this the case and why is it that this general reaction seems to be more heightened now than in the past? I think it is not a coincidence that this heightened expression of concern by Singaporeans has arisen following the global meltdown. October 2008 marked the beginnings of the global financial crisis that affected the world economy and Singapore's economy as well. We began 2009 with much uncertainty over the economic environment and whether businesses would stay afloat. Over the past year, Singaporeans have been understandably concerned about whether they will be able to keep their jobs and for those who lost their jobs, whether they can find new ones. There are feelings of insecurity about livelihoods because although economic recovery can be seen on the horizon, the effects of the recovery have yet to reach the ground.

Foreigners and PRs are therefore seen as a competition for a limited supply of jobs, housing and facilities. This reaction towards foreigners and PRs in Singapore is ultimately attributed to a perception that the foreigners and PRs are getting or taking what rightfully belongs to

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Singaporeans and that seems to be the heart of the problem. Whether or not this is, in fact, really the case and whether the statistics actually bear this out is something that I would like to ask the Deputy Prime Minister to comment upon. However, it is a perception, and so long as it is a perception, it is an issue that needs to be addressed.

Recently, the Government has indicated that it will raise the foreign worker levy which will make it more difficult to employ foreign workers. The Government has also sent out signals that they will slow down the intake of foreigners. Whilst this does give some reassurance to Singaporeans, it has, on the other hand, led to the foreigners and the PRs feeling more insecure. They are now wondering whether this is the beginning of an anti-foreigner sentiment here in Singapore. One Managing Director of an international group mentioned to me that he had been thinking of remaining in Singapore in the long term but in the light of the recent ground sentiments, he was now thinking of purchasing a home in Europe as a fallback just in case things did not work out here.

As a country with a strong sense of nationhood that is founded and committed to the ideals of peace, prosperity and progress for the nation, it is clear that Singaporeans must come first. However, we have always also been an open society and we have benefited from the presence of non-Singaporeans in our midst. So it seems to me that the question is really one of calibration – what is the right ratio of Singaporeans to foreigners and what is the right allocation of jobs such that we can ensure that Singaporeans are fully employed but, at the same time, allow foreigners to work in Singapore so that we can grow the pie as a whole so that Singapore as a whole country can benefit.

I think that what Singaporeans need most right now is reassurance, not just in

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words but also in deed and policy, that they will always come first, which is right, because Singapore is our country and our home. At the same time though, the foreigners and the PRs amongst us also need to hear where they stand and a clear indication that they are not going to bear the brunt of an anti-foreigner backlash.

I would therefore like to ask the Deputy Prime Minister for his comments on this, whether there is a differentiation in terms of benefits for Singaporeans and PRs and how the Government intends to balance the need for priority for Singaporeans on the one hand with the need for foreigners to live and work in Singapore on the other hand.

New immigrants and permanent residents

Mr Ang Mong Seng: ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Mr Chairman, the birth rate in this country has been decreasing in recent years. In the year 2009, the birth rate has fallen to a historical low of 1.23%. Although the Government does provide baby bonus and other incentives, the birth rate has yet to increase to the Government’s targeted level. In order to have enough manpower to build our nation and sustain our economic development, the Government has no choice but to open its doors to allow more foreign immigrants into Singapore to boost our population.

Currently, the population of Singapore is five million. Out of this five million, 3.28 million are Singaporeans, 600,000 are PRs and 1.2 million are work permit holders. As such, we now see many negative reports about the PRs and foreigners such as them causing the rise in housing prices and depriving locals of their jobs. The total number of PRs and worker permit holders stands at 1.8 million, that is 40% of our population.

I need to ask, how long, on average, do these PRs live in Singapore and what is

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their average age? What kind of contribution have they made to our social and economic development? How have they impacted on our social behaviour and values? What kind of policies are we going to have to implement in the next few years with regard to foreign immigrants and PRs?

According to my knowledge, some who have been PR for more than five or even 10 years are still not willing to convert. We need to encourage them to become a citizen and provide services to this country. Can we perhaps invite those PRs who have been PR for more than three years to become citizens so that they can start contributing to this country sooner?

In attracting these immigrants and foreign talent to Singapore, have we also done enough to encourage our own local students who are studying abroad to come back to Singapore? I wish to ask the Deputy Prime Minister: how many local students do we have now studying in higher institutes of learning abroad and how many will come back to Singapore? Are there any plans to bring them back?

*Cols. 3029-3030.

Foreign talent and Singaporeans

Dr Teo Ho Pin (Bukit Panjang): Sir, Singaporeans understand that we need foreign talent to complement our local workforce to compete in the global economy. But in recent years, the sudden influx of foreign workers has raised concerns amongst Singaporeans. Some foreign workers have also taken jobs previously held by Singaporeans, thus causing unhappiness. The presence of foreign workers in our community has resulted in some social issues such as dormitory problems, overcrowding and fear amongst Singaporeans.

Sir, as the Government builds capabilities of our workforce in the future,

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it is crucial to review the foreign talent and worker policy. Foreign talent must help companies to be competitive so that companies can continue to employ Singaporeans. This must be the basis in attracting foreign talent. The Government must continually monitor the policy to ensure that it is not a zero-sum game for Singaporeans.

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Sir, as Singapore attracts more foreign talent to be our citizens and permanent residents, the integration of our people will be more challenging. We need to identify more platforms where new citizens, PRs and Singaporeans can interact and bond. One simple way is to encourage our new citizens and permanent residents to join the PA Passion Card membership and, thereafter, participate in our community activities. Besides our grassroots associations reaching to them, we should provide opportunities for our new citizens and PRs to take initiatives to join our community activities. Therefore, I would like to suggest to the Prime Minister to consider making PA Passion Card membership as part of the new citizen and PR application process.

Sir, I would like to ask the Prime Minister the following questions:

(1) What is the Government's long-term strategy in attracting foreign talent to be Singaporeans, PR and foreign workers?

(2) Will the Government provide more measures to differentiate between Singaporeans and PRs? Will such measures bring tangible benefits to Singaporeans?

(3) Can the Government provide an update on the efforts and outcomes of the

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integration and naturalisation champions (INC) in bonding new citizens in our community?

The Chairman: Mr Chiam See Tong is not here. Mr Seah Kian Peng.

Total fertility rate review

Mr Seah Kian Peng: Sir, we are worried that the Singaporean born in Singapore may one day become a rare and exotic creation. Total fertility rate is at an all time low. We need to review the effectiveness of the various parenthood measures. After all, our expenditure on parenthood measures has increased almost 100% since 2007.

Sir, I suggest that the Government target its subsidies in three ways:

(1) Give more to parents who want to have assisted conception. Sir, I suggest that the first course of IVF for all Singaporean citizens be paid for completely by the Government. This will give those who really want to have children the financial means to do so. Last year, there was a 50% increase in patient numbers for IVF, after the Government announced its subsidy.

(2) Continue to provide financial and other support for children up to the time they are 18 years old, at a budget of about $300 per child per year, and this amount can be used for anything that the parents want – whether it is buying books, going for hair cuts, new clothes, and so on – in other words, minimal restrictions.

(3) Increase the number of university places for Singaporeans. Sir, many of us worry about our children and our bank accounts as our children near 18 years old. The MOE has told us that the increase has been about 5% each year – is this rate enough to keep up with

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demographics and the changing aspirations of Singaporeans? The long-term goal has been to provide places for 25% of each cohort. Why not aim for at least 30% of Singaporean children having a place in a Singapore university?

(4) Adopt a Whole-of-Government approach to tackle this issue – can the current Government paid maternity leave scheme be enhanced? Would paternity leave help? Could those starting a family be given much higher priority in their HDB flat applications? The list goes on.

Sir, it is a difficult problem and we are fighting against a global trend. But try we must. I hope the Ministry will consider all proposals and see how they can complement the current incentive schemes.

National Population Secretariat

Mr Arthur Fong (West Coast): Mr Chairman, Sir, in recent years there has been a visible increase in the number of foreign immigrants in our midst. At last count there are close to one million foreign immigrants, including foreign workers here on Work Permits, S-Passes, Employment Passes as well as Permanent Residents. Some have become citizens, others are keen to apply to be Permanent Residents and some will not.

All said, their increased numbers have added much diversity to Singapore as most Singaporeans will agree. However, there are segments of Singaporeans who lament that the uniquely Singapore way of life has taken a new phase, especially in the heartlands. Heartlanders have complained that the environment is dirtier than before and blamed this on newly arrived foreigners. Although there is anecdotal evidence that some incidents have been attributed to foreigners, largely our fellow countrymen do still have habits that are anti-social. It boils down to each resident

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taking ownership of our living environment but that is another debate altogether.

The Town Councils and HDB Branch Offices have been working hard to educate all residents and we have seen some improvement but we have a long way to go.

Sir, we cannot afford to be xenophobic. We cannot let a "them and us" attitude to permeate. With the challenges that we have identified and debated on earlier and the slew of strategies to execute, we need all Singaporeans to be in concert. We cannot have a polarised society.

Sir, the Government needs to explain its position and its stance towards the foreigners, either here as foreign workers or PRs. It is a difficult balance that we need to achieve, that is, to explain our position and the reasons for recalibrating policies on foreign workers and PRs, and that of acknowledging the concerns of our people. The fact is these very foreigner workers often bear the brunt of job cuts when economic times are hard and are easy punching bags when the economy experiences a downturn. The PRs are blamed when property prices increase, when service standards drop and when our children fail to get to the school of their choice. In some schools, parents have commented that foreign scholars edge our children out in the academic race.

This recalibration of policies requires a delicate response as both groups can be emotionally charged by the changes or the lack of it. There are many knock-on effects on the social fabric while we recalibrate. Sometimes, both groups, that is a PR and a Singaporean, are in the same household. The Singaporean wife of a PR expressed to me that we are an ungrateful lot and ignore the contributions that the close to one million foreigners make. I can only imagine the kind of

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angst, conflict and the doubt that the couple faced.

Ironically, in an advance society like ours, inter-racial and inter-religious marriages have fewer issues than the one faced by a couple of whom one is a citizen and the other is a PR. I know it is difficult for a government as decisions must be made by the couple themselves. But with the changes, it will mean tougher choices for them. I only hope that their decision will not be less beneficial for Singapore. We have to assure both Singaporeans and foreigners alike that our Government is not wavering on our policy. We should be single-minded, committed to spend our energies to ensure that Singapore becomes an attractive city for the talent, be it Singaporeans or foreigners. The outcome must be that we need to acknowledge the fact that as we push towards increasing our productivity –

The Chairman: Mr Arthur Fong, time is up. Mr Sam Tan.

The Parliamentary Secretary to the Minister for Trade and Industry and Acting Minister for Information, Communications and the Arts (Mr Sam Tan Chin Siong): Mr Chairman, Sir, some say this Budget is clinical, rational but boring. I could not help but agree. However, is this necessarily a bad thing? To me, this Budget is like how Roger Federer plays tennis – not very exciting but extremely effective. He plays to win and not to entertain. And so, too, for this Budget, which has few fireworks but lots of gunpowder to fire up Singapore's long-term future. But the long-term future of Singapore cannot be secured by dollars and cents alone. It is not just a matter of strong intellectual solutions or hard-headed decisions, it is also a matter of the heart and unity.

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This Budget focuses mainly on turning Singapore into an advanced economy. However, we do not only need to be an advanced economy, we also need to be an advanced society. So, today, I want to take my speech into two parts. In the first part, I will speak about old Singaporeans, those of us who were born and bred here. For this group, I urge us to see how we can become a closely knit nation, a gracious society.

The second part speaks to new Singaporeans. We also need to look more closely and carefully at existing social cohesiveness attempts and see how this can be called into service in integrating new Singaporeans.

Sir, there are quite a few rental blocks in my constituency at Radin Mas. Residents who live in these rental blocks generally take as good care of their homes as the rest of us, though, of course, there is always the occasional black sheep who litters the estate. However, this is a common problem in all the other HDB estates. Sir, I was, therefore, disconcerted to read about the protest of residents in Tampines who are upset that the building of the rental blocks in their vicinity will bring down the value of their properties. They do not want the old and the needy in their neighbourhood. Sir, is there a sense that some people are "untouchables"? Are we seeing a caste mentality developing in Singapore?

Sir, I am concerned with this incident which, I believe, if it is left unchecked, will tear our social fabric, weaken our societal foundation and threaten our national survival. If our fellow Singaporeans start to develop and embrace this new caste mentality, then I fear this will be the beginning of the end for Singapore. I, therefore, argue that we ought to take a big-hearted approach to embrace Singaporeans of all walks of life into the common spaces of our society.

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How can we do this? Here is one perspective from a young who was an engineer and later a teacher and now a writer. He writes about the process of blaming, criticising and growing up.

Let me just quote a few lines from his article. He said, and I quote:

"Lee Kuan Yew is not my dad. Yet he is clearly the Father of modern Singapore. Singaporeans are, in that sense, all his children. As children, we were "prisoners of his education policies. As young men, we were 'hostages' to National Service duties … ."

"Then there is the matter of my father. You see, my father is Fong Swee Suan … to put things simply, MM Lee and my dad used to go head to head, fist to fist, in their youth."

The writer is Mr Otto Fong – not our Mr Arthur Fong – son of the former Secretary-General of the Singapore Bus Workers' Union, who was involved in the Hock Lee bus riots in 1955. Mr Fong Swee Suan was a leftist member of the PAP and, later on, he became a political detainee. After his release from detention, Mr Fong Swee Suan and his family settled in Johor Baru. Mr Otto Fong and his siblings travelled daily from across the Causeway to study in Singapore. He would get up 5.00 am and returned home only after 3.00 pm. Life was not easy for him.

He goes on to say, and I quote:

"In my own youth, I blamed both men for my imperfect Life. Fortunately, age gave me new perspectives. If I do not make a better life for myself, I am the only one to blame. Just as MM Lee’s generation had worked hard for me, I must now work hard for my own future. Whether Singapore ups its game to another level is not up to my father’s generation. It is up to mine."

Sir, this is a fine example of a boy turning into a man and, in the process,

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developing a forgiving attitude and a very balanced perspective. I quote Otto Fong because he has shown the spirit of "live and let live", despite his own imperfect life in his youth.

Sir, I had spoken earlier about how Singaporeans ourselves need to find that special something to cherish and the need to love our fellow Singaporeans. Now, I would like to talk about the new arrivals who come to Singapore to start their lives anew. While there have been a lot of discussions on the issues of locals versus foreigners and so on, I would, however, just want to share three stories which highlight the impact of foreign talent and workers, both in Singapore and other countries.

First, in the past, I remember we could only eat Malay and Indian food during Chinese New Year period as most Chinese would close their stalls to celebrate Chinese New Year. Since opening up to foreign labour, many Chinese restaurants and hawker stalls are opened during the Chinese New Year period because of the foreigner workers from China and their presence has also spurred some of the Singaporeans stall owners to open their stall as well. So, having foreign workers among us has helped us to improve our living comfort.

Second, I met a China Minister last year and asked him why China needs to attract foreign talent when it has already had 1.3 billion of population. His reply was that for China to compete with the world, it needs the best from the world. When China does not have such talents, it will seek them out from the world. I am not surprised that if this talent search also includes Singaporeans.

Third, I was in Tokyo last month for work when having a bowl of noodles in an eating house, I noticed that some of the waitresses did not quite look like Japanese. So, when I asked one of them,

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in Mandarin, she responded and told me that she and her many of her colleagues were actually from China. Later, when I asked the senior executive of the big Japanese corporation about this, he said many Japanese are no longer willing to work as waiters and waitresses. Even if they do, their salaries will be much higher than foreign workers. He then whispered into my ear and said that if not for these foreign workers, he would have paid much more for his noodles. So, while Japan is quite a closed society, many Japanese quietly welcome foreign workers as they help to bring costs down and make life easier.

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Singapore only has about five million people. We need talents and we need them from the world. The alternative is a lower standard of our own game, a less comfortable living and a loss of international competitiveness. All these points have been well argued during the debate in the last two days. Hence, I shall not belabour them further.

Sir, although these arguments are well won, the fact remains that one-third of our current workforce is made up of foreign workers, and we know that we need them while we embark on a challenging path to raise our productivity by one-third in the next 10 years. Since we cannot wish the foreign workers or foreign talents away because we need them, I think the next best thing to do is to think afresh about what we can do to help foreign talents better integrate into our Singapore community.

First, I want to suggest that the whole notion of national integration is to go beyond race and religion, beyond locals and foreigners. National integration should also include intra-social bonding between the haves and the have-nots to bridge the

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gap, to stop the breeding-of-the-caste mentality.

Sir, we know that since January 2002, Inter-Racial Confidence Circles (IRCCs) were set up for constituencies, and Harmony Circles for schools, workplaces and other local organisations. There are altogether 84 constituencies in Singapore and there is one IRCC in each constituency. There are also many Harmony Circles out there in the community. What I would like to propose is this – that the IRCCs consider expanding its scope to include intra-social bonding in our society for the purpose mentioned earlier in my speech.

On the other hand, the Harmony Circles in companies, schools and elsewhere take into their job scope the integration of new Singaporeans. I would also like to propose additional funding mechanisms and strong support for this expanded role and job scope for the IRCCs and Harmony Circles. There are justifications to do so.

Sir, no one knows how well this will work, and I think we will need to refine the idea further. But I do believe that we need to work on old Singaporeans via the IRCCs while at the same time bring a fresh approach to the national integration efforts for the new Singaporeans through the Harmony Circles.

Sir, all of us in this House carry a flame for Singapore and we all want to do it proud and graciously, regardless of our race, language, our achievements and our social standing. Like what Mr Otto Fong said, it is up to our generation – Singaporeans old and new – to make Singapore the land of our dreams.

The Chairman: Mr Chiam, do you want to take your cuts now before the Minister replies? You have two cuts. Please take them together.

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Permanent residents

Mr Chiam See Tong: Sir, my first cut is on permanent residents. Is there any cap on the number of permanent residents? With all the productivity incentives, training and other incentives to encourage businesses and also incentives for Singaporeans to be gainfully employed and the Government expecting Singaporeans to be self-reliant, these measures shall reduce the dependency on foreign skills and talents. More foreign workers are being used in the construction, marine and the health care sectors. The Government and the organisations say that Singaporeans are not willing or prepared to take up these jobs. Singaporeans are blamed and have been accused of not taking up some low-end jobs with low pay. But the fact is that with the current cost of living, it is practically not possible to survive with low-end jobs offering lower pay, and hence Singaporeans hesitate to take up these jobs. It is the Government that is directly responsible for creating this environment by making Singapore an expensive place to live. Singaporeans should not be blamed for that. The Government should focus on and revamp the whole education system and training for workers, and also introduce policies to encourage and motivate Singaporeans to take up the jobs in the sectors where foreign workers' talents are mostly used now. This will reduce the dependency on foreign workers. Does the Government have plans in this area?

Birth rate

Sir, my second cut is on raising the birth rate. Singapore's birth rate continues to decline despite the Government's special tax incentives, such as the Baby Bonus scheme. As usual, the PAP's practice is simply throwing money at the problem and encouraging more foreigners to fill the gap. Little attention is paid to the accompanying social consequences, in order to overcome the declining birth rate.

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While the birth rate is falling in other developed countries as well, the whole situation in Singapore is among the worst in the world. We are seeing the outcome of our social and economic policies.

My observations and by talking to the ordinary people, I would say that the declining birth rate is due to the following fundamental reasons – high cost of living, including for public housing where couples have to work long hours to service their mortgages; insecurity of jobs; high cost and burden of educating and bringing up a child. As long as economic hardship continues to worsen for families, whether in the form of high cost of living or taxes, there will be an imbalance in the natural forces. Also, it is important for the Government to find out why in certain countries, like Sweden and France, can increase their fertility rates instead of following the liberal immigration policy.

A more integrated and holistic approach is required. What we need is a more conducive environment for people to reproduce by keeping the cost of living from ballooning and providing comprehensive social nets for families struggling to balance career and child-raising. More incentives are necessary for couples undergoing fertility treatment and also needed the Government's change of mindset on unwed pregnant girls.

Lastly, any new policy to improve the birth rate should be made simple and always target the largest segment of the population to achieve any lasting results.

The Deputy Prime Minister and Minister for Home Affairs (Mr Wong Kan Seng): Mr Chairman, many Members have spoken passionately about the issues of immigration and population. They no doubt reflect concerns raised by segments of our public over the increased inflow of immigrants and its impact on our society. This is a very important subject, and it is also a highly complex subject. I want to thank

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the Members for giving me this opportunity to address it.

Let me first assure Members that the Government recognises and acknowledges Singaporeans’ concerns and sentiments. Indeed, in the last few years, we have seen a dramatic increase in the number of foreigners in Singapore. It is understandable that Singaporeans may feel uncomfortable over the sheer number of foreigners in our midst. The Government has taken note of this, and we have reviewed our current processes of granting permanent residence (PR) and citizenship (SC) to foreigners in Singapore.

Dr Teo Ho Pin asked about the Government’s strategy in attracting foreigners to come here for work, and to become PRs and citizens. Broadly speaking, there are two types of foreigners living in Singapore – the transient group which mainly comprises those who come here to work, and the resident group which sinks roots and becomes our PRs and citizens eventually. Although this distinction is not obvious on the ground, it is an important one to bear in mind.

In June 2009, the transient group accounted for about 1.25 million out of our total population of about five million. Foreigners who come here to work essentially fall into this transient group. They leave when their work permits or employment passes expire. They are an important part of our workforce, and their economic contributions to Singapore’s growth are real and significant.

Ms Indranee Rajah and Mr Chiam See Tong have also raised concerns about the competition that foreign professionals pose to Singaporeans in the job market, housing and also in the use of our public spaces and public transport. While we will not condone discrimination against Singaporeans, we cannot ring-fence jobs

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and reserve them only for Singaporeans. The majority of foreigners, who are here on work permits, are working in jobs that Singaporeans do not want to do. I acknowledge that there are also those on employment passes holding jobs that Singaporeans are willing to do, and who compete directly with Singaporeans. However, as Mr Arthur Fong has mentioned, if we want to compete globally, we have to create an environment which can attract the best people, including those in mid-level – be they Singaporeans or foreigners – to work here and contribute to our economy. The measures in Budget 2010 will provide Singaporean workers with the best possible head-start to compete in this global economy. If foreigners are not here to help us compete against other countries, they will be working in other countries to compete against us. The future will see global competition becoming more and not less intense. We must therefore attract skilled and professional foreigners here to increase our manpower pool.

Indeed, it is because of our meritocratic open door policy that Singapore continues to attract investments, and ranks high up in international surveys on the ease of doing business. Companies must be allowed to recruit and deploy the best talent possible for the job to ensure the success of their businesses. This, in turn, generates economic growth and job opportunities, which ultimately benefit our citizens more than any transient foreign worker group.

For example, Mercer is a company that has benefited from our flexible manpower policy. The ability to attract the best talent from around the world is vital to ensuring skills transfer to its Singapore office, which is today Mercer’s Asia regional hub. From just over 100 staff in Singapore five years ago, in 2005, Mercer will grow to 400 this year. Two-thirds of the jobs created in the last five years are filled by Singaporeans who are

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given the opportunity to learn from global expertise.

Our flexible manpower policy has also allowed Barclays to establish a hub in Singapore by bringing in foreigners with highly specialised skills not readily available in our local labour force. Barclays has been actively investing in the development of Singapore’s financial services workforce by hiring and developing local talent, which is critical to further expansion and job creation. In the last five years, over 1,000 jobs were created by Barclays for Singaporeans.

Sir, I believe Singaporeans recognise the value and contributions of these foreign workers. This is the point made by Mr Sam Tan too. Mr Matthias Yao and some other MPs who spoke in the Budget debate during the last two days are also right in observing that Singaporeans may have begun to feel that the Singaporean way of life was being encroached upon.

The negative reaction of Singaporeans is one of frustration and annoyance of having to share limited common spaces with people who may have different social habits and reflexes. The Government has hence undertaken action to educate our foreign workers on our social norms so as to integrate them better while they are here.

Singaporeans, however, need to be realistic and fair-minded. While we want foreign workers to do the less pleasant jobs and contribute to our economy, we cannot also expect them to stay away during their off days from public places and shopping malls where we frequent or not to take the public transport to go to work and squeeze the space with us. On our part, Singaporeans need to be more tolerant and understanding the different habits and practices of workers from different backgrounds and cultures. I think some of us who are old enough here would remember that not too long ago, 40-50 years ago, we shared the same

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practices. For example, in the coffee shops, you would see spittoons just underneath the tables.

4.15 pm

With regard to Singaporeans' perception that the foreigners are driving up the HDB prices, I am sure the Minister for National Development will address this more fully during the COS, but we know that we have no shortage of housing. New flats are being built, and this year we are going to offer 12,000 BTO flats. I understand that almost the same number of flats were being built last year. When we have PRs who have come to settle here, we also expect them to find a home, so it is only fair that we allow them to purchase flats. They do not receive any direct subsidy from the Government for HDB flats. They have to buy from the resale market.

Some Singaporeans have asked why we allowed such a large inflow of foreign workers in recent years. We had taken in large numbers during the economic boom years from 2004 to 2007 to catch the wind of growth so as to propel our economy forward. The Finance Minister has explained this in great detail this afternoon. From 2004 to 2009, the non-resident population grew from about 750,000 to 1.25 million. The foreign workers enabled us to take full advantage of the favourable external conditions from 2004 to 2007 in order to maximise our growth. And these were good years for Singaporeans too because median income also went up. Had we kept out foreign workers, our growth would have been choked off, and Singaporeans would have been worse off.

Going forward, Sir, in line with the Economic Strategies Committee's recommendation for our economy to keep the foreign workforce to about one-third of our total workforce, the Government will take steps to moderate the inflow of our

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foreign workforce over time. However, the change will not be easy. It will require heavy capital investment in automation, training to re-tool our own workforce and raising productivity. Our businesses and workers must also gear up to make the necessary adjustments.

To sum up, Sir, transient foreign workers are here to work and they will eventually go home. Most of them do not sink roots. We should appreciate their contributions to Singapore as they have helped us grow our economy. In turn, with economic growth, we have the resources to develop infrastructure and support programmes which have raised the quality of life for all Singaporeans. Economic growth has also enabled us to accumulate reserves in good times, which we have been able to rely on to sustain and support Singaporeans during lean and tough times.

Sir, the second category of foreigners in our midst is not transient but stays on to become PRs and citizens. I know that this is a matter which Singaporeans care very deeply about, and rightly so, as it concerns the value of our citizenship.

The number of PRs and citizenships granted to foreigners has gone up in the last few years. Singaporeans have expressed concern about this increase. Some even wonder if we are giving away permanent residency and citizenship too easily. While the number of Singapore citizenships granted is fairly stable, the number of PRs given is indeed higher over the last few years compared to the years before 2005. Why did we do this? We wanted to take advantage of the strong economy in the mid-2000s to attract and retain suitable foreigners to sink roots here and to make up for our low TFR.

We have recently reviewed the PR/SC assessment framework. We will refine it

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to better manage the pace and overall numbers. We will ensure that those who become one of us are of better quality, and not only contribute to Singapore economically but also integrate well into our society. We have already started to tighten the framework in the last quarter of 2009. Mr Ang Mong Seng asked about the number of new PRs and citizenships granted. We granted 59,500 PRs and 19,900 citizenships for the whole of 2009, as compared with 79,200 PRs and 20,500 citizenships in 2008.

Sir, going forward, we will further tighten the framework to raise the quality of the immigrants. This will reduce the number of PRs granted. We will monitor carefully the number of PRs who qualify and, if necessary, fine-tune our criteria in the light of the actual outcome. However, I am not in favour of any absolute cap on the number of PRs. How many we take depends on the quality of the applicants, and there may be events which trigger an unexpected surge in numbers, which we should take advantage of.

As for the number of new citizens, this again will depend on the quality of the applicants, but provided we have good applicants, we should take up to 20,000 a year. I will explain later why we need this number.

Sir, we will put in more effort to integrate PRs and new citizens into our society. This will continue to be spearheaded by the National Integration Council, under MCYS, which was set up last year to promote and foster social cohesion and integration. The success of this endeavour will, however, depend on the support and response of both newcomers and Singaporeans.

Sir, recently, I held a few dialogue sessions with Singaporeans and new immigrants. I met a research fellow from A*STAR, Dr Xue Bo who was very glad

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that he made the decision to move from a private condominium to an HDB flat in Jurong. There, he encountered a friendly neighbour, Mr Alan Lim, who took the first step in welcoming him and his family. Not only did he help Dr Xue’s family orientate themselves in the new neighbourhood, he also included them in his social circles and introduced them to his friends. Kind, helpful and practical gestures like these are deeply appreciated by those at the receiving end, and will go a long way towards making us more cohesive and harmonious even as we become more diverse. Integration is an ongoing journey and takes a long time. It cannot be rushed. It needs the direct and active involvement of both Singaporeans and new immigrants.

Sir, having newcomers in our midst means dealing with differences in outlook and social habits. While we work to make them a part of us, we should also appreciate the little differences that make our social landscape more varied and vibrant. Let me share the story of Dr Anuj Gupta, a former Indian national, who came here as a Junior College student in 1992. He later studied at the NUS medical school. Dr Gupta now works in Clementi Polyclinic. Like any seasoned GP in Singapore, he is able to interact with patients in a variety of languages, including dialects, English, and a bit of Mandarin. He prides himself on being able to provide medical consultation in Hokkien! It is hard to get much more Singaporean than that. Yet, he recalls wryly that whenever he speaks English, some patients would identify his non-native accent and ask him, "Doctor, where are you from?" Dr Gupta married a former PRC citizen who came here in 1995 and studied in our polytechnic to become a nurse. They now have two lovely children. Apart from Dr Gupta, we have also managed to attract his two brothers, who are also doctors in Singapore. When asked why he chose Singapore, since he married a PRC

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national, he said, "Well, my wife couldn't adjust to India, and I can't adapt in PRC, so Singapore is the best place for us."

As Mr Sam Tan pointed out, new immigrants can play positive roles in building the future of Singapore alongside existing Singaporeans. Many immigrants are taking the first step to be part of Singapore society, through taking part in our grassroots activities and volunteering in community organisations. But it takes two hands to clap. Indeed, we have many Singaporeans, including 800 Integration and Naturalisation Champions from our grassroots organisations, who go about helping newcomers settle in and integrate into their communities as part of their daily lives. The INCs organised about 600 events last year for 30,000 new immigrants. Many Singaporeans took part in these events too. This should be encouraged. The newcomer’s transition into the community would be much smoother and faster if Singaporean neighbours and their co-workers take the initiative to welcome them and help them settle in. On the other hand, new immigrants could also initiate efforts to reach out to Singaporeans, and take part in activities organised for them by Singaporeans.

Sir, although we will continue to welcome good quality PRs and new citizens who can contribute to Singapore, we stand by the principle that Singaporeans come first in their own country. No need to worry about this. Recently, the Government took measures to draw a greater distinction in privileges and benefits between Singaporeans and PRs in the areas of education and healthcare. This is necessary to recognise the privileges of citizenship, and to give PRs adequate incentive to convert to become Singapore citizens.

However, we need to be sensible and balanced about how we go about this. For instance, we should never undermine

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the principle of meritocracy which makes us competitive and which ensures communal harmony and social cohesion. We must also avoid making ourselves so unattractive that suitable foreigners are deterred from sinking roots and becoming a part of Singapore. There is a global competition for good people with talent and if we make Singapore an inhospitable place, we will lose out. We will do ourselves great harm if others outside Singapore have the wrong impression that we are xenophobic. This will be against our national interest. We heard the story recounted by Mr Sam Tan that a PRC leader had said that even they are looking for talent. And New Zealand too. New Zealand is targeting Singaporeans, in particular, because they think that we are hardworking, we are honest and they want Singaporeans to be there. And the Australians, too, are also specifically targeting Singaporeans. So, we are in this world where competition for talent is very keen.

Besides broadening our talent pool, PRs and new citizens have another critical value for Singapore. Immigration is a key source of population augmentation which we cannot afford to do without. Let me explain.

4.30 pm

We face a serious population challenge today. Last year, the number of resident births fell to 36,926 compared to 37,277 in 2008. But citizen births constituted only 31,843. Resident total fertility rate (TFR) fell to 1.23, our lowest yet. This is well below the 2.1 needed to replace ourselves. Our TFR is among the lowest in the world. Mr Seah Kian Peng suggested that we review the effectiveness of the marriage and parenthood package. The package was only recently enhanced, less than one-and-a-half years ago, in August

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2008, and then the economic downturn occurred soon after.

So my guess is that the economic downturn is likely to have played a part in the decline, and not like what Mr Chiam thinks, that it is because it is too hard to raise a family. Of course whether people have more children or not, whether they get married or not, is very much a personal decision. We would recall that in the last two recessions in 1998 and 2001, resident births fell by an average of 4,500. In 2009, the decline was smaller, only at 351. We believe that the 2008 marriage and parenthood package has helped to cushion this decline. Without the package, the decline could have been worse. It is too early now to review the marriage and parenthood package. We will let the 2008 marriage and parenthood package run for a while before doing a more comprehensive review.

Sir, the Government is trying to address the problem of our low fertility rate and create a pro-family environment. Through the Marriage and Procreation (M&P) package, we aim to provide holistic and comprehensive support to couples in getting married and having children but we also need to be realistic that even with our M&P package, we will not be able to turn our TFR around. Moreover, getting married and having children are intrinsically personal decisions. Singaporeans may still choose not to get married or have more children for various reasons.

That leaves us with a sobering truth – Singaporeans are not producing enough babies to replace themselves. What are the implications of this? If our TFR remains the same, and we do not allow immigrants to settle here, our resident population will start to shrink as early as 2025 because deaths will outstrip births, just like what is happening in Japan today. In 1970, when our TFR was above 2.1, each elderly person was supported

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by 17 working adults. By 2020, one elderly person will be supported by five working adults. And by 2030, it will be one elderly person supported by just over three working adults.

A larger elderly population in the future would also mean increased public expenditure due to increasing demands on our public healthcare, community and social support infrastructure. Taxes may have to be raised to increase support for the aged.

With fewer younger people, our workforce and society will lose our vitality and vibrancy. This will mean that Singapore will become less attractive to foreign investors. Our own young talented Singaporeans may leave our shores for better opportunities in more dynamic economies. With fewer young Singaporeans, we will face grave challenges to maintain the strength and efficacy of our citizen armed forces, security and law enforcement agencies.

Sir, in a nutshell, we need 60,000 babies just to replace our resident population. But we only have about 37,000 babies per year. That is provided the number does not go down again in future. This is why I mentioned that we need about 20,000 new citizens in order to keep our citizen core.

Unless there is a dramatic reversal of our local TFR, and I do not see this happening, it is critical that we must tap on immigration as a measured means to augment our population. We must continue to allow in good-calibre foreigners as PRs and SCs to supplement our low birth rates. However, our society needs a strong citizen core. Singaporeans must always form the bulk of our resident population. Hence, we must focus on getting good-quality citizens rather than carry a large PR population who are content to remain PRs indefinitely instead of taking up Singapore citizenship.

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Without this infusion of new citizens, based on the current demographic trends, we will soon have a shrinking population and a declining Singapore.

Mr Chairman, Sir, I would like to assure this House that the Government is cognisant of the ground sentiments and feedback on the issues which had been brought about by immigration in recent years. We have made careful refinements and changes to our policies to address these concerns. But we have also to be practical and realistic.

We must look at the issue of foreign workers and immigration objectively and rationally. We must recognise that good-quality foreign workers and immigration still remain important to our sustained economic growth and are vital to address our serious longer-term population challenges. Ultimately, the key is always in finding the right dynamic balance and trade-offs, as some MPs have suggested. This is not easy to do but it is necessary to do, if Singaporeans are to be assured of a future and a quality of life, no less than what we enjoy today.

Sir, we are all descendants of immigrants. Singapore grew and prospered since its founding because our great-grandfathers, grandfathers, fathers or parents – I must say actually grandparents, great-grandparents, otherwise the women will take offence – were allowed to come and settle to make a better life and in the process, to contribute to Singapore's growth. Had they been denied the opportunity to do so at the right time, we would not be born here and Singapore would not be what it is today. In future, the children and the grandchildren of today's immigrants who sink roots here, will grow up with our children and grandchildren. Together, they will be the next generation of Singaporeans and Singapore will be their home, just as much as it is our home today.

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Mr Chairman, Sir, Singaporeans' concerns over the immigration policy are widely reported in the Chinese media. So please permit me to say a few words in Mandarin.

( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Immigration policies have been widely reported in the Chinese media. Here, I will use Mandarin to say a few words. First of all, there are two types of foreigners living in Singapore. The transient group comprises workers who come to Singapore to work and when they finish their contracts, they will return to their own countries. In the past 10 years, the increased number of foreign workers has been associated with our economic growth. Many Singaporeans do understand that these foreign workers have made substantial contributions to our economy. However, differences in lifestyle and habits are now making some people uncomfortable. The Government has stepped up the effort to educate the foreign workers so that they can better understand Singapore's social norms.

We must transform our economy in tandem with the change of the outside world. We have taken the suggestions put forward by the Economic Strategies Committee to help companies increase productivity and slow down the pace of importing foreign workers into the workforce.

The second category of foreigners are those who want to sink roots and become PRs and citizens eventually. Overall, the number of new citizens has remained stable. Due to the economic situation, we have seen more PRs since 2005. The Government will calibrate the number and pace of immigration to ensure that those who become one of us are of better quality, and not only contribute to Singapore economically but also integrate

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well into our society. From the fourth quarter of last year, we have already tightened the framework.

Going forward, we will further tighten the framework to raise the quality of the immigrants. This will reduce the number of PRs granted. As for new citizens, provided that they meet the quality criteria, we should take up to 20,000 a year.

Given our low fertility, if we do not bring in immigrants, Singapore's resident population will start to shrink by 2025. With an aging population, we will bear tremendous social burdens. We need 60,000 babies a year to replace our resident population, but we only have about 37,000 babies a year. I do not see a significant rebound in fertility happening. We must bring in 20,000 new citizens every year to keep our citizen core.

We must continue to allow in good-calibre foreigners as citizens, and not just maintain a large number of permanent residents who are contented with the status quo and have no intention to convert. We have already widened the differences in benefits received by citizens and PRs to incentivise more PRs to take up citizenship.

On the other hand, the Government will continue to put in efforts to promote social integration so that new immigrants will be able to integrate into the society earlier. With this new force of new citizens, we will be able to maintain a sustainable population and safeguard our future. We are all descendants of immigrants to whom we owe for Singapore's prosperity. The new immigrants today will sink their roots in Singapore and their children and grandchildren will be future citizens who will continue to fight for Singapore.

*Cols. 3031-3032.

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Electoral Boundaries Review Committee Report

Ms Sylvia Lim (Non-Constituency Member): Sir, in countries like the UK, electoral boundary revisions are carried by an independent Boundary Commission under the charge of a High Court Judge. Proposed boundary changes are also open to public scrutiny and objection. In Singapore, however, the boundary revisions are done by a Committee chaired by the Cabinet Secretary, reporting to the Prime Minister.

Sir, despite my belief that the PMO should not be in charge of boundary review, the focus of my cut is how the current process may be improved for transparency and accountability. I would like to touch on two points. First, the timing of the release of the report. Second, the contents of the report.

Sir, as far as release of the report is concerned, it is noted that in GE 2001, the revised boundaries were released about one week before Nomination Day. In the last GE, they were announced about seven-and-a-half weeks before. I would call for the Boundaries Review Report to be released at least six months to one year before Nomination Day. This is especially important because of the unique situation in Singapore where there are GRCs and SMCs. GRCs can be chopped and changed and SMCs can be created and dissolved with the stroke of a pen.

For the coming election, we are expecting some significant revisions due to expected increase in the number of SMCs from nine to 12 as some GRCs are being reduced in size. Having good notice would give voters confidence in the boundary redrawing process. It will also give a reasonable time for political parties to do more focused groundwork and consider their candidate line up.

My second point relates to the contents of the report. In the last Electoral

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Boundaries Review Committee (EBRC) Report, the terms of reference were very generally stated as reviewing and recommending the new constituencies and boundaries taking into account significant changes in the distribution of voters due to population shifts and housing development. As a basis, the 2006 report calculates the MP to voter ratio using the total number of voters nationally divided by the number of parliamentary seats. This led to a conclusion of one Member of Parliament (MP) for every 26,000 voters. The report then states that a 30% variation is allowed, leading to a possible voter range of between 18,000 and 34,000 per MP.

Sir, reading the report raises more questions than it answers, for example, how was it derived that the 30% variation was permissible? Why were Ayer Rajah SMC and Bukit Timah SMC dissolved when they still had the number of voters in the acceptable range for SMCs? How was it decided that the new replacement SMCs would be Yio Chu Kang and Bukit Panjang, and so on?

Sir, such changes could not have been at the whims and fancies of the EBRC. There must have been a certain methodology employed or other factors considered. As this is a matter of public interest, could the next EBRC Report go further into the reasons for dissolving or creating SMCs or changing the boundaries of GRCs.

Sir, the Government must know that Singaporeans are skeptical about the redrawing of boundaries. It would be an improvement to have advanced notice and some transparency in this process.

Mr Wong Kan Seng: Sir, the law allows the Prime Minister to call a General Election (GE) any time and there is no legal requirement that the electoral boundaries be revised ahead of a GE. The Prime Minister also has full discretion in

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determining the number and boundaries of Electoral Divisions. But it has been the practice of the Prime Minister to appoint the Electoral Boundaries Review Committee to look at the boundaries whenever he thinks it is necessary. And based on past experience, he has always appointed the Electoral Boundaries Review Committee (EBRC) before every General Election. The Committee usually takes between two and four months to complete the review. Once that report is completed and the Prime Minister has accepted it, he will present it to Parliament without delay. As to whether the report will be released way ahead of the next GE or six to 12 months ahead of the GE, much depends on when the Prime Minister calls for the Election. I believe he will give all interested candidates and parties as much time as possible. But the timing of the release of the report, and the timing of the calling of Election may not be very certain because the Committee needs to complete the report and if the Prime Minister, at his own discretion, thinks that that is the right time to call an Election, he may call for an Election. But I can assure the Member that he would give sufficient time to Members and interested parties to look at the constituency changes.

4.45 pm

The appointment of the EBRC is not mandated by law. But the Committee's work is guided by the terms of reference given by the Prime Minister. I have not seen any yet because no Committee has been appointed so far and I do not know what will go into the terms of reference, whether it includes some of the issues that the Member talked about. But, generally, the Committee will look at population shifts, population changes, and then decide on where each of the constituencies will be, including the parts that need to be redrawn. Why some are

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changed and why some are notchanged, I think much depends on the configuration at the time. And that is very much left to the discretion of the Committee.

The 30% variation used by the Committee in deciding the size of a constituency is a practice that has been carried out for the last 30 years. Before that, the number was smaller but the Committee needs to have a certain way and a certain principle of guiding themselves on determining the size of the constituency. So in the last 30 years or so, each of the Committees has adopted the 30% variation.

The Chairman: Mdm Halimah, take your two cuts together.

Productivity in the public sector

Mdm Halimah Yacob (Jurong): To achieve a target of 2% to 3% growth in productivity, we need a strong and effective public service that is innovative, quick to respond and is not mired in red tapes, to partner the private sector to carry out the various initiatives. At the same time, we need to guard against the pitfalls of the old WITs and other similar schemes which over time became so mechanical and KPI-driven that they began to lose their meaning and impact amongst staff.

A common joke amongst staff is that WITs which stands for Work Improvement Teams actually meant Wasting Important Time. Such cynicism does not augur well for our productivity efforts in the public service but we cannot blame the staff who, after a while, begin to see it as just as a numbers game. To ensure that the past does not repeat itself, the public service needs strong leaders to champion this productivity push in a meaningful and effective manner.

I would like to ask the Deputy Prime Minister how the public service is

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preparing itself to support our productivity push.

Re-employment of older workers

Re-employment legislation will be introduced in 2012 and the public sector has set its guidelines on re-employment, both kicking in in 2010. As one of the largest employers in Singapore, the public sector's HR policies have a significant impact on the private sector. With the greater focus now on productivity and innovation, there are concerns amongst older workers if there will be a place for them. Therefore, the re-employment initiative has assumed greater urgency. It is also important that the public sector continues to invest in the training and upgrading of its older workers so that they can perform the new, more complex and challenging tasks and can continue to add value to their work.

I would like to ask the Deputy Prime Minister for an update on the re-employment of older workers in the public sector. How many were re-employed? What is the average length of re-employment? What are the terms of their employment and what kind of training is provided to them?

The Deputy Prime Minister and Minister for Defence (Mr Teo Chee Hean): Mr Chairman, Sir, first of all, I would like to thank Mdm Halimah for her interest in the public service. The public sector has been transforming at the individual, organisational and whole-of-government levels to support the growth of a knowledge-intensive, innovative and entrepreneurial economy.

The Public Service for the 21st century (PS21) movement which was launched in 1995 operates at all three levels. At the individual level, the Public Service emphasises training to upgrade our officers' skills as well as impart positive attitudes towards change. Senior

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officers are trained and encouraged to create a conducive environment to generate new ideas and to encourage public officers to examine their work processes and make changes. WITs is one of those systems which, when well-implemented with good leadership, is effective. The ideas which emerge may not be big ideas but collectively, they foster innovation, continuous improvement and learning.

At organisational level, many of our public agencies strive for and have attained best-in-class organisational practices and benchmarks, including the Singapore Quality Class certification and the People Developer standard.

At the whole-of-government level, the public sector has cross-agency platforms like the SMART Regulation Committee that focuses on improving the operating environment for businesses. The ease with which a company can be registered or individuals can file their tax returns is now well-known. The simplification of factory registration requirements by the Ministry of Manpower is another good example. To maintain and strengthen the Public Sector's productivity drive, I have asked the Head of Civil Service to personally oversee this task.

Let me now address the re-employment of older workers in the public sector. In 2009, 85% of the 820 public officers who retired at the age of 62 years old were offered re-employment. Of those offered re-employment, 540 officers or 77% accepted the offers. About nine in 10 of the officers re-employed at 62 years old and above were re-employed on a full-time basis. Eight in 10 were re-employed at the same job level. Re-employment contracts are generally one-year contracts, renewable up to the age of 65 years. Last year, more than 2,500 public officers attended pre-retirement preparatory courses conducted by the Civil Service College. Public sector agencies

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have also put in place various upgrading and re-skilling initiatives to prepare employees to take up jobs other than their current work.

Elderly care

Dr Lily Neo (Jalan Besar): Mr Chairman, the impact of a double whammy arising from a chronic low birth rate and a rapidly greying population is on us. It is going to hit us like a malignant condition that refuses to go away unless treatment is given early and effectively. Yes, given that the problems that can arise will be troublesome and complex, we need to deal with this double whammy as a matter of urgency.

Dr Lily Neo (Jalan Besar): 4.52 pm

Madam, although many have spoken at length, we have debated in this House and we have even appointed a Cabinet Minister to oversee the issue of caring for an elderly population, our people on the ground continue to feel uncomfortable and anxious about growing old. May I ask the Minister to prioritise on three positive attitudes towards ageing and to promote dignified and graceful ageing in our society?

One, preventive healthcare is the way forward. It aims to help those who are healthy to remain well for as long as possible without ill from especially our lifestyle-induced diseases. In other words, we need to encourage "active ageing" as a key element in ensuring our elderly population keep fit and healthy and limit or delay the onset of disabilities. May I ask the Minister whether an "active ageing" drive can be extended islandwide? And will he emphasise the three

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components in "active ageing" – physically, mentally and socially?

Two, many Singaporeans, especially our elderly folk who have no income but have increasingly medical needs, are concerned about rising medical costs. This concern will affect many more people because our population is greying fast. Besides the importance of promoting "active ageing" and encouraging those who have any common illnesses like diabetes and hypertension to pay attention to their treatment so as to mitigate increased healthcare expenditure, there is also a need to promote better financial planning and saving by our people. It is essential to persuade everyone to take up health insurance, such as MediShield and Eldershield to cushion the burden of any hefty unforeseen healthcare expenses. A concerted effort in promoting this area will certainly benefit everyone in the long run.

Three, the necessity for a majority of people here to continue employment beyond the current retirement age of 62 is becoming increasingly evident as the life expectancy of Singaporeans is getting increasingly higher than the 77 for men and 81 for women. It is necessary to keep people agile, physically and mentally, in their "later years of life" and to do so, fresh stimulation and re-training for them to continue working is recommended. Financial planners estimate that at least 70% of Singaporeans do not have enough savings to maintain their lifestyles after retirement at 62. With declining birth rates and declining dependent-working ratio, the elderly cannot be sure of depending on their children. This will be an issue for the economy of the country.

It is becoming more apparent that many mature workers are very much in their prime in terms of knowledge and creativity. These mature workers thus become an available resource our nation can beneficially tap. We have to debunk the perception and mindset that people

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become "useless" once they hit a certain age and that their bodies and minds go into such decline that the workplace will benefit from their departure. This will augur well for the idea of lifelong employability of workers.

May I therefore urge the Minister to step up our effort to dispel the view of ageing with despondent, useless and sickly lives and entrench the view of ageing with purposeful and healthy lives? Let us give the ageing folk new hope.

Physical activities for seniors

Dr Teo Ho Pin: Madam, research has shown that in Japan, older people who reported a lack of social support was 1.5 times more likely to die in the next three years than those with higher social support. This is of concern to us today as one in 12 Singaporeans is above 65 years old. Officially launched in 2002, Northwest Briskwalking Club, with a network of 128 clubs and more than 50,000 members, provides opportunities for residents to meet regularly through brisk walking activities. Our brisk walking champions, coordinators and volunteers have spearheaded many initiatives to make our members active and healthy. At the same time, the brisk walking club has provided a platform for social interaction. Last year, we were glad to receive support from the Prime Minister's Office to promote brisk walking to all Singaporeans. To-date, a total of 430 brisk walking clubs were formed and many Singaporeans have taken up brisk walking as a form of exercise to keep fit.

Madam, besides brisk walking, Northwest CDC has also identified qigong as a form of exercise to build strength, flexibility and balance amongst our residents, especially the elderly. With the support from the Singapore Qigong Shi Ba Si Association, Northwest CDC has formed 29 healthy qigong clubs comprising 2,500 members. These members practise qigong regularly and form

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social groups to stay active. Based on the experience of Northwest CDC, I would like to urge the Prime Minister to provide support to promote qigong as a form of healthy lifestyle activity for our seniors.

Madam, I would like to ask the Prime Minister the following questions:

(1) what is the long-term strategy of the Government in promoting active ageing and healthy lifestyle amongst our seniors?

(2) can the Government consider setting up an active ageing endowment fund to provide sustainable funding support for active ageing activities and programmes?

(3) besides supporting brisk walking, can the Government provide funding to support and promote qigong for our seniors?

Mr Ang Mong Seng: ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Madam, at the moment, 10% of our population is above 65 years old. Twenty years later, by 2030, about 25% of our population will be above 65 years old. If at that time, our population is five million, this will mean that we will have one million people who are over the age of 65. The various Government departments have been providing better services to our senior citizens like lift upgrading so that the lift stops at every floor. Now, I am more concerned about how to promote a healthy lifestyle among our senior citizens and whether we have any facilities to help them to live a happy life.

5.00 pm

*Cols. 3033-3034

Active ageing and wellness for seniors

Mr Ong Ah Heng (Nee Soon Central): ( In Mandarin ): [ For vernacular speech, please

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_refer toAppendix A * _ .] Madam, sometimes we hear some of our wheelchair-bound senior citizens say that it is more painful living than dying. This is a complaint that I have heard not just from those who are wheelchair-bound but also many senior citizens who live alone and feel very lonely. Especially during festive seasons, these seniors do not have friends or relatives to celebrate with, making them more miserable. We know that when people are old and lonely, they become very pessimistic. With our ageing population, it is more urgent for us to resolve this issue.

I agree with Minister Lim Boon Heng that senior citizens should not feel that they cannot participate in some activities when they have reached a certain age. On the contrary, if a person has started running the marathon before 65, he should have no mental barriers preventing him from continuing with the sports. So long as he is physically fit and fully prepared, he can still run the marathon at a comfortable pace. Similarly, if they like to play badminton, squash or tennis, they should continue to do it to lead an active lifestyle.

I know a restaurant owner in Joo Chiat who is now past 70 years old, yet he has been taking part in marathon every year. He even ran at the Great Wall and went to Mongolia to take part in the cross-country marathon. His spirit is truly admirable.

There are definitely encouraging signs of more senior citizens leading very active lifestyle. There is an increasing number of people taking part in brisk-walking and practising qigong in their colourful red and white outfits in the parks. However the percentage is still small. In our constituency, we have 11,500 people aged 50 years and above but only 800 have

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participated in our Wellness Programmme. I think we should encourage more of them to participate in our activities and know more friends. I urge the Government to provide more facilities to help these senior citizens so that they can live a very active lifestyle.

Social isolation and support for elderly

( In Mandarin ): [For vernacular speech, please refer to Appendix A.] Like Japan, Singapore is facing a serious fertility rate problem. At the moment, 8% of our population is 65 years old and above. This works out to be about 270,000. This is a big number. Many of them have problems walking or have health problems. According to MCYS' statistics, the number of people aged 65 and above will reach 19% of our total population by 2030. If our population remains at 340,000, 19% would mean close to 650,000 seniors.

Our young people these days do not want to live with their parents. In the West, it is nothing unusual as they usually leave home and live on their own by the age of 21. In Singapore, however, we emphasise Confucian and family values and encourage our young to live with their parents and take care of them. I have the following suggestions: first, we must stress family values and encourage our young to look after the seniors; and second, we should provide more social support for the seniors who are abandoned by their children.

*Cols. 3035-3036; 3037-3038.

_Social isolation _

Dr Ong Seh Hong: Mdm Chair, in the early 20th century, Sago Lane in Chinatown used to be such a sad place. It was where the lonely immigrants from China, who were here for work but because of many reasons were not able to return back to home, went to rent a place at one of the many death houses. They

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would pay the operator a small fee in return for a small foldable bed for them to sleep until they died. The house would then look after their last rites. It was a sad business to be in but these houses offered a service to lonely migrant workers during their last journey in life. Because of this service, Sago Lane was also known as " sei yan kai ", or the Street of Dead People.

Fast forward to Singapore today, we have a growing number of elderly living alone. I am afraid this number will continue to grow further in future. However, living alone has its downfall for the elderly as it increases their risk of ill health, affecting their physical and mental wellbeing. It is sad that, until today, we still hear of elderly people dying in their flats and were discovered only when the smell of their decomposed bodies aroused the attention of the neighbours.

Madam, these elderly folks who die alone tend to be also from the less-advantaged group, lower-income group, with no family support. And they tend also to live in poverty and probably living out the last days of their life in a miserable state. The luckier ones might be known to and received some help from many of our VWOs.

Madam, therefore, it is important to look after this vulnerable group of elderly. For a start, we could draw them out and encourage them to interact socially and find ways to remain active. Studies have shown that social interactions and regular exercise can improve the wellbeing and cognitive functions of elderly persons. Although many VWOs have been performing an excellent job providing social support and care to seniors, more can be done and I feel that this is a job that requires the wider community involvement. I suggest that we set up more centres for elderly to drop in, socialise, exercise, and get advice on health matters and other social issues.

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These centres should ideally be located near the elderly's home. Therefore, they should be built on a precinct level and not on a constituency level. They should be run, involving the local communities. These centres should also keep a register of elderly living alone on whom the volunteers and staff can keep a watchful eye.

The Chairman: I think it may be simpler for Members if they just refer to me as "Madam". "Mdm Chair" tends to connote an inanimate object and I do not wish to have any confusion there and so as to avoid further gender confusion, a straightforward "Madam" will do. Mr Laurence Wee.

Assistance for abandoned parents

Mr Laurence Wee Yoke Thong: Mdm Chair [ Laughter. ] –

The Chairman: That would be "Madam".

Mr Laurence Wee Yoke Thong: We see a trend of abandonment of parents by children through referrals to family service centres (FSCs)by organisations such as CDCs, HDB, Town Councils and grassroots, among others.

At Care Corner, two FSCs, namely Admiralty and Queenstown, we see a total of 14 cases for a 10-month period – 1st April 2009 to 31st January 2010. Of the 14, they are most males, in their early 50s to early 60s. These cases, I believe, are only the tip of the iceberg as most parents do not want to blow matters up regarding parental neglect for fear of losing face. And they walk to a FSC as a last resort, and not to a police station. In one case, the daughter-in-law abused the mother and chased her out of the home. In another three cases, the children chased their own parents out.

Madam, I would like to ask the Prime Minister whether there are any provisions

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in the Budget to provide support for this group and may I suggest that more outreach be done to these elderly.

Long-term care for the elderly

Ms Ellen Lee (Sembawang): Madam, long-term care is a variety of services which help meet both the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves for long periods of time. It is common for long-term care to provide custodial and non-skilled care, such as assisting with normal daily tasks like dressing, bathing and using the bathroom. Increasingly, long-term care involves providing a level of medical care that requires the expertise of skilled practitioners to address the often multiple chronic conditions associated with older populations. Long-term care can be provided at home, in the community, in assisted living or in nursing homes. Long-term care may be needed by people of any age, even though it is a common need for senior citizens.

While some of these services are presently available, inadequacy, unequal geographical distribution and affordability remain the major issues. There is also the need for more supportive programmes at the neighbourhood level to assist families in caring for their elderly members. These community-based support services include meal delivery; laundry; home modification – for example, the installation of grab bars, non-slip tiles and levelled floors; a telephone hotline for crisis and counselling; a befriender service, where volunteers are matched with lonely elderly people for home visits; mutual help groups, for instance, neighbourhood-based small groups of about 10-30 older persons to foster mutual care and concern; volunteers to accompany elderly to clinics or hospital; bereavement and funeral services, where volunteers offer

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help to bereaved families or arrange funerals for the destitute elderly; and an alarm response service, where staff at a voluntary organisation in the vicinity respond to an elderly resident's call for help when the alarm is used.

While many of these services have already started across Singapore in the past decade and there is a wide array of community-based services available, demand is growing. Moreover, some of these services are unevenly distributed across the island, so family members may have to travel long distances to reach a particular service; older persons will similarly need to travel for long periods and suffer fatigue. If the Government policy of "ageing in place" is to be successful, more will have to be done and relevant support services should be established in all housing estates so that the needs of families with ageing members are met in a comprehensive way. In short, the prevalence, awareness and access can be further augmented nationally.

Another problem is that services for the aged are multi-disciplinary and older people's issues are multi-dimensional. The availability of appropriately trained personnel is also a major issue facing the voluntary welfare organizations, as they generally operate on lean budgets and volunteers may not easily be recruited, a situation that is common in many countries.

There is a need to improve the current financing options for long-tern care services so that they provide the most efficient, most affordable and highest quality care. To combat long-term care challenges, it is imperative to have supporting doctors, nurses, nursing homes and others working together in teams and with the patients and families to ensure the right care is given at the right time, in the right setting. The Government could provide incentives to organisations

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providing LTC (long-term care) by rewarding them for positive care outcomes.

In view of increasing medical costs and hospitalisation expenses, I hope the Government will also consider revising the aged dependency relief for co-residential children and children-in-law. It might encourage children to continue care-giving and it could also reduce the incidence of abuse due to the financial stress of caring for elderly parents.

Capability building for seniors' needs

Mr Baey Yam Keng (Tanjong Pagar): ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] A few weeks ago, I watched a programme on Channel 8 called "Life Transformer 2". The host interviewed a po-po in her 80s who has two mentally-challenged sons. Although her sons are in their 50s, they still need to be cared for by their mother. The family receives Public Assistance so there is no problem with daily expenses. Po-po is no longer young and the two children cannot be much of a help; their house is messy. The programme arranged volunteers to help with the cleaning and even got a sponsor to have their cabinets and floor changed.

There are three things that impressed me. First, the programme looked after po-po 's needs. We all have our little habits, especially old people who can be stubborn sometimes. The volunteers were very careful when they did the cleaning. After they cleaned the room, they put everything back in their original place so po-po could find it easily. Po-po has two very old refrigerators in the house. Although she does not need two as they waste electricity, she has a special attachment to the refrigerators as they were paid for with her CPF. Even though the hosts knew this was not economical, they still obliged. Second, po-po has a

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tumour on her face. Towards the end of the programme, the host found her a specialist hoping she would recover soon. Third, the two hosts, Li Mingshun and Quan Yifeng spent much time chatting with po-po to get an understanding of her life. They found that po-po read the newspaper everyday and she even looked up difficult words in the dictionary – a good example of never stopping learning. Many people care about po-po and po-po is obviously very happy.

5.15 pm

Singapore's population is quickly ageing. How are we going to make adjustments to the changing social landscape? "Life Transformer 2" suggests:

Firstly, we must put the seniors’ views first when it comes to their needs. These people can be old fashioned. In po-po 's case, it would be impractical to ask po-po to throw away one refrigerator.

Secondly, it is quite common for old people to become disconnected with society. Things that are easy for us can be quite difficult for them. After some time, problems could arise. In po-po ’s case, her tumour was getting bigger. We must watch closely the needs of the seniors.

Thirdly, social circles of the seniors will get smaller with the passing of their spouse and friends. They will feel very lonely. A senior citizen told me that she looked forward to Residents’ Committee's outings very much because this was the only opportunity for her to see the outside world. We should create more opportunities for the seniors to socialise and communicate with other age groups. On one hand, the young can learn from the old; on the other hand, the old can feel young people’s youthful energy.

"Life Transformer 2" has ended. Singapore still has much to do to prepare it for the ageing population. Families, Government, VWOs and social groups

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must work together to build a better life for the elderly.

*Cols. 3039-3040.

Mr Lim Boon Heng: We have one of the fastest ageing population in the world. Today, there are about 300,000 people aged 65 years and above. In 20 years' time, we will see a three-fold increase to about 900,000 people. That is why we are preparing for an ageing society and that is why it is important and urgent to do so.

We have taken steps to enhance the financial adequacy of our seniors: better returns on CPF savings, CPF LIFE for a stream of income until they pass on, enabling people to work longer and to monetise their homes. And we are working on financing of long-term care.

We have promoted active ageing, so that seniors lead a full and meaningful life. Dr Teo Ho Pin and Mr Ong Ah Heng have asked what the Government is doing to promote healthy lifestyles and enhance the quality of life of our elderly as part of our long-term strategy to deal with an ageing population. We are encouraging them to take charge of their ageing and be in control of their health and well-being.

To enable seniors to move easily out of their homes to places they wish to go to, we have been creating a barrier-free environment: lift upgrading for lifts to stop at every floor, barrier-free walkways, retrofitting buses to take wheelchairs, and ramps and lifts at MRT stations. We require new developments to be designed to the Code on Barrier-Free Accessibility in Buildings. There is also the Universal Design Guide, which recommends to the industry how to design to meet the needs for all people, including the elderly. We will assess the effectiveness of these measures.

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Dr Lily Neo discussed active ageing, particularly lifelong learning and the employability of our seniors, while Dr Teo suggested the setting up of an Active Ageing Endowment Fund. The Council for the Third Age (C3A) promotes active ageing through the annual Active Ageing Festivals, and works with partners to promote lifelong learning, enhancing seniors' ability to contribute to society. And this is not just one event in a year but there are five other events organised by our CDCs, and funded by C3A. As the $20 million GO Fund is for the fiscal year 2006 to 2010, there is no need as yet for an endowment fund. C3A will continue to use the GO Fund to fund lifelong learning opportunities for seniors. Importantly, as employability depends on the attitude of employers and older workers, C3A will also encourage a mindset shift of both seniors and employers. C3A is one of AARP's international partners for the International Innovative Employer Award, which recognises employers that have implemented age-friendly practices in their organisations. Five Singapore companies have won the award in the last two years. So I think as we do more of this, as we showcase what some of the progressive companies do, I hope that others will also follow. With respect to employment, there is a tripartite group that is working on this. But reports throughout the world show that there will be a skills shortage that is been faced in the US and Europe, because the baby boomer generation is retiring. The employers are beginning to realise the assets that they have. They are now keen to employ such older workers. We should learn from this. C3A will be organising the International Consortium for Intergenerational Programmes Conference in late April 2010, focusing on intergenerational relations at the family, workplace and the community. We also have to learn how to manage a more diverse group of employees, with age ranging from 20-plus to maybe even 70s.

We have introduced a Wellness Programme, to help people take charge of

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their own health, and join social interest groups. The pilot project has been successful. The 12 sites reached out to 17,000 seniors aged 50 years and above, of whom 12,000 took part in health screening. Residents who are Wellness Club members have been able to better manage their health. Fifty-eight percent of the 8,857 at risk seniors identified during the Wellness Programme health screenings have seen doctors or nurse educators for medical follow-up. Research has shown that whatever the state of one's health, we can improve our quality of life if we are active physically, mentally and socially. And as Dr Lily Neo requests, when we promote active ageing, we should promote these three points of importance of being active physically, socially and mentally.

We have examples from the Wellness Programme. Let me share one. Mr Quah Boon Hwee, a 65-year-old retiree, led a sedentary life before joining the Radin Mas Wellness Programme. He had diabetes and an irregular heart beat. After attending health education workshops through the programme, he realised he had to exercise and watch his diet in order to enjoy good health. Mr Quah's medical condition is now under control. He joined the herb garden interest group and made firm friends with other members. Their group has transformed a small plot of land in the Bukit Merah Community Club into a beautiful herb garden.

Dr Lily Neo asked whether we will extend the Wellness Programme to more constituencies. Yes, we will expand the Wellness Programme progressively. The budget is $77 million over the next five years. In fiscal year 2010, 25 new Wellness sites will be launched. The target is to reach out to 50% of seniors over the next five years.

We are implementing physical exercise programmes under Seniors for Physical

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Activities (SPA), which complements the Wellness Programme. Minister of State Heng Chee How, who chairs the SPA committee, will respond to Dr Teo and Mr Ang Mong Seng's queries on the plans to support physical activities for our seniors.

I will now speak on two important issues; preventing social isolation and developing our capability to care for frail seniors.

Mr Ong Ah Heng, Dr Ong Seh Hong, Ms Ellen Lee and Mr Laurence Wee have noted that social isolation and the plight of our lonely elderly are serious issues that we must pay attention to. Social isolation for seniors is an emerging concern among ageing societies. When seniors are socially isolated, they become disconnected from society. They withdraw into their own world, often literally into their own homes. They are apathetic to all that goes on around them, not caring for others, and not caring for themselves. They lose hope.

In 2000, the number of elderly aged 65 above living alone was about 15,000. This increased to 22,000 in 2005. Living alone is the highest risk factor for social isolation. Preliminary results from an MCYS-commissioned study indicate that 26% of seniors who live alone have symptoms of depression compared to only 9% who live with their spouse or family. Further, 16% of seniors with weak social networks outside the household also show such symptoms as compared to only 8% who have strong social networks outside of the household.

Based on the survey findings, an estimated 35,000 older people aged 60 and above live alone in 2009. Even if we do not consider the increase in singles and smaller families, this number is expected to rise further, to 61,000 in 2020 and 83,000 in 2030.

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Given the increase in seniors living alone, it would become increasingly difficult to identify and reach out to those who are isolated, by the means we have adopted up to now. Thus, there is an urgency in addressing the issue of social isolation.

In the past two years, as Dr Ong Seh Hong has mentioned, there have been several reports in the media of people dying alone, detected only when neighbours complained about the smell. Naturally, we are upset that this should happen.

What has gone wrong? Almost all the cases I read about happened in rental flats. There are Seniors Activity Centres serving the rental flats, run by VWOs, with each centre staffed by two or three persons. In addition, the poor who are at risk of social isolation have been placed on a befriending scheme, where the volunteer contacts the senior at least once a week. The befriending scheme is operated by VWOs. The Seniors Activity Centres and the befriending scheme receive funding from the government. Have the VWOs failed in their service?

How do other societies take care of their elderly, prevent social isolation, and prevent sad cases of people dying alone?

I remember reading a story of how seniors in a small village in Japan put up yellow flags at their doors each day, to let their neighbours or the postman know that they are all right. If there is no flag, it means maybe something is wrong. If the yellow flag is up, the person is all right. In Japan, many of the young people move to big cities for employment, leaving behind the very aged in the villages. In such a situation, the seniors have to organise themselves for mutual help. When old neighbours look out for old

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neighbours, help will come quickly if something should happen.

Another example is "The Village" concept in the USA. Older residents living in a neighbourhood collectively pay annual membership fees that support a small office of two staff or so. This office would coordinate services for the seniors. But more importantly, the seniors will organise themselves, volunteer their talents and skills to one another, and the old-old can leverage on the young-old so that they can age in their own homes. And they call such villages also "Naturally Occurring Retirement Communities".

5.30 pm

Typically, we live in high-density HDB flats. Because there are so many people around, we have not realised that we, too, have to organise ourselves for mutual support. As Dr Ong Seh Hong noted, the community must help these lonely seniors. If we depend on SACs and befrienders, then we will need many more staff and volunteers, to know what is happening to our seniors everyday. This is impossible. So, like the old villages in Japan, we too must organise ourselves, so that neighbours look out for neighbours.

Incidentally, both stories refer to "villages". And this reminds me of the kampongs of old Singapore. I am glad that some of this kampong spirit lives on today. Tampines Changkat CCC has a Silver Connect Scheme. Ms Tan Lay Hua, a 47-year old home-maker, has taken care of four elderly in her neighbourhood since 2005. The elderly trust her and are very open in sharing their problems with her. They call her whenever they need help. Through her, one of the elderly, who could not afford medical bills, successfully applied for the Neighbourhood Medical Assistance Scheme. Ms Tan even accompanies the elderly for their medical check-ups. She helps them read their bills in English and patiently explains the

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contents to them. To encourage the elderly to be more active, she often buys tickets for them to participate in community activities for the elderly.

Mutual support is possible only when the community recognises the need and each resident is willing to participate. So our grassroots groups, especially the Residents’ Committees, have a key role to facilitate the formation of mutual help groups. That is why the People’s Association is encouraging pot-luck floor parties for people to get to know their neighbours better. That is why the People's Association is encouraging the formation of social interest groups, so that neighbours come together regularly and deepen friendships. This is building social capital, we need to accumulate a lot more social capital that will manifest in neighbours readily helping neighbours. It is a lot of hard work doing floor parties. I have done 100 in the past year in my own constituency, the person who initiated this, Dr Lim Wee Kiak, has already done his first 100th and is embarking on his next 100th. But we have been gratified by the response of the residents. And so I look forward to all our advisors to support our grassroots organisations in this effort of building social capital.

Next, developing capability in eldercare. As the number of seniors grows, some will need care. The majority of the old will be cared for by family caregivers at home. In Minnesota, USA, in 2005, 92% of the elderly were cared for in this way. In Europe, the shift is towards home and community care. So, we should keep as many as possible of our seniors at home. Our policies and programmes should be framed around supporting families in the care of the elderly at home.

Our approach is to enable people to take care of themselves for as long as possible. For those who need support, to enable them to do as much as possible themselves. The Australians call this the

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"Active Service Model". Let me illustrate. A senior lady asked for home help services, as she felt she was no longer able to clean her home. When the service officer arrived, she found that the lady had an old heavy vacuum cleaner which this lady now could not pull around. So she proposed replacing it with a new light weight vacuum cleaner. This lady could then continue to clean her home herself, and benefit from the exercise as well.

This active service approach is also applied to day care. Instead of prescribing what the seniors do, day care operators give them choices, so that they continue to decide what they want to do. We must not place them in a dependency mode, in an active mode to take charge of their own lives. It is important that we learn to do this.

If we take the approach that we will provide care, and we prescribe care, then inevitably the client will expect care, and everything will have to be provided for, or done by someone else. Now one of our Seniors Activity Centres (SAC) reported that the seniors expect everything to be done for them, including carrying goodie bags to their flats. On the other hand, in another Seniors Activity Centre run by TOUCH Community Services, the seniors happily help in organising activities at the centre. TOUCH SAC initiated a "Loving Your Neighbour Programme" in 2009. It aims to mobilise the seniors to show kindness and to keep a look out for one another in their neighbourhood. It is quite clear why the TOUCH SAC can do a lot more than the first SAC I mentioned. I believe the seniors there find life more purposeful.

Next, we should take a client-centric approach to delivering services to the elderly. Currently our services are service-centric. The senior may have meals delivered daily by one service provider, the flat cleaned by another and a befriending visit by yet another. Not only

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is this approach not cost effective, sometimes there can be adverse outcomes, if services are poorly coordinated. For example, one senior who died alone and was discovered only after neighbours complained of the smell, actually was receiving home delivery meals. Therefore, we need service providers who can provide en suite services, who can work with the local community, and who have systems that can flag significant gaps that may need attention.

Services for the elderly are dominated by VWOs, whose focus is on the poor. But it is not only the low-income elderly and the poor who need services. For example, the seniors living alone that I mentioned earlier are not only living in rental flats, but also in 3-room, 4-room, 5-room and even private property. So we need more service providers to cater to the needs of fee-paying clients.

I shall also be frank to say that most of our service providers are small, lacking in scale, unable to pay attractive wages, yet incur high costs. Most also provide little training. Mr Baey Yam Keng mentioned capability building in the VWO sector to provide adequate care for our seniors. Yes, there is much to be done regarding productivity in this sector. Much as we want many helping hands, we need to nurture a few large operators with en suite services and critical mass to bring unit costs down and to raise standards, and adopt the active service model.

This is the approach we are taking in developing capability for care of the elderly. Ms Ellen Lee asked about caregiver support and home and community care options. I would say that in addition to building hardware in terms of a barrier-free Singapore to facilitate ageing-in-place, we are working to improve the "software" of options and better support for those who need care.

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The setting up of the Centre for Enabled Living (CEL) is an important piece in the eldercare landscape. As its name suggests, the care philosophy is to empower seniors and their families, and to enable seniors who need care to be as independent as possible.

First, CEL acts as a first-stop centre for seniors who need eldercare and supportive services. It is also a resource centre for information and referrals. Together with the Agency for Integrated Care (AIC), we are working towards an integrated and seamless care delivery and referral pathway.

For seniors who are frail and may have multiple needs, CEL will launch its pilot Assessment and Coordination for Enabling service (ACE). It aims to develop such care management expertise over the next two years so that families can be supported in caring for their seniors.

Second, CEL helps to empower informal caregivers with practical caregiving skills. CEL is working with key providers, such as NTUC Eldercare and Touch Community Services to provide up to 1,000 training places for informal caregivers, including foreign domestic workers in the coming financial year.

Third, CEL is building up VWO capability in providing en suite home- and community-based care and supportive services, working closely with NTUC Eldercare, TOUCH Community Services and St Luke’s. For example, CEL is funding TOUCH to develop and scale up integrated home care covering home help, home therapy and home modification. TOUCH will use Radio Frequency Identification (RFID) technology to enhance efficiency in home service delivery.

CEL is working with Thye Hua Kwan to pilot the "Rent-a-Care Helper" programme, targeted at lower income

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seniors. These seniors and their families cannot afford to hire foreign domestic workers, but they do need regular help and support from trained caregivers. With a VWO like Thye Hua Kwan maintaining the central pool of care workers, costs could be made affordable for low income families.

MCYS has set aside about $3 million in fiscal year 2010 to support these initiatives by CEL in collaboration with key VWO providers.

Mr Laurence Wee asked about abandonment of parents by children. The role of the family is vital. The Government is committed to support families with the responsibility for their parents. Children who abandon their elderly parents in an irresponsible manner should be deterred. I understand that the Minister for Community Development, Youth and Sports will speak more on this as he discusses the Maintenance of Parents Act.

The Government has already laid the groundwork and will continue its plans to meet the challenges of an ageing population. It will take a long time, not just months but years, to change mindsets about what ageing means and to realise the opportunities to help our seniors be confident participants in society for as long as they are able. I am confident that we have taken the right steps towards enhancing the lives of our seniors, but it will be up to each individual to take control of his own old age, with the support of his family and community.

The Minister of State, Prime Minister's Office (Mr Heng Chee How): Madam, Dr Teo Ho Pin and Mr Ang Mong Seng asked about our national strategies to promote physical activities for seniors. Physical activity is good tonic as one ages. For individuals, exercise improves fitness, well-being and general quality of life. Healthy individuals spend less time and

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money on medical treatment. This benefits them and society. A sedentary lifestyle, on the other hand, works in the opposite way.

A 2005 survey by the Singapore Sports Council showed that six in 10 seniors aged 55 years and above were sedentary in the three months preceding the survey. This is no good. And this is why we have to do more to empower our seniors to be physically active.

The Committee for Seniors for Physical Activity (SPA) which I chair focuses on building capability and capacity in the community to promote physical activity for seniors. We purposely bring together multiple agencies including the Ministry of Community Development, Youth and Sports, People's Association, the Community Development Councils, the Health Promotion Board, the Council for Third Age, Sports Council, HDB, NParks, and so on – multiple agencies, so that the platforms we develop are integrated and community-based.

The SPA uses three criteria to select the health activities we promote among seniors. First, there must be scientific evidence that the activity leads to concrete health outcomes when done properly and regularly. The HPB advises the SPA on how the activity can improve aerobic ability, strength, balance and flexibility of participants.

Second, the activity must be easy to join, low-cost, not hard to learn, have a local following and be scaleable. Third, it must provide opportunities for seniors to make friends and join social networks.

5.45 pm

The SPA launched the National Brisk-walking Programme in September last year. And I thank People's Association and the CDC Mayors for their wonderful support and drive for this initiative in their respective districts. And, here, I particularly want to acknowledge the leadership

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of Mayor Teo Ho Pin. The results have been most heartening. In the first nine months, from April to December 2009, 156 new brisk walking clubs were formed, bringing the total number of such clubs nationwide to 431. The total number of brisk walkers grew by 14,692, ie, as per the record, from 59,000 to 73,700. That is a 25% increase. We will press on and sustain the initiative, and derive the benefits as we go along. This is not something that you do in a day by just getting a big crowd together. It is not even something that you try to achieve within a year. Because it is the sustained, regular and proper practice of these activities that will yield those health outcomes. In a way, just like productivity, it is a long journey, it is one that is well-worth investing in, getting more out of life.

This year, SPA will launch another two platforms, that is, tai chi and qigong. And this will add to the choices. Tai chi and qigong are amongst the top 10 sports of choice for seniors in Singapore aged 55 years and above. According to survey, 8.2% of our seniors already do various forms of these activities. Therefore, it gives us a base, and it tells us that it is scalable. And these activities have been scientifically demonstrated to improve strength, and also aid in balance and flexibility. So even the less mobile or the more frail seniors will find these activities doable and may find them appealing. Here, the SPA agencies and I welcome and acknowledge the support and partnership of Singapore Wushu Federation in co-developing and promoting the tai chi and qigong platforms. Going forward, we will continually add to, review and adjust our range of platforms to take into account the outcomes, choices and changing preferences amongst our seniors.

We are systematically laying the ground for a stronger culture of physical

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activity amongst our seniors. For example, there are many beautiful parks and fitness corners with good equipment and helpful signs showing us how to exercise properly, safely and effectively. There are many clubs and groups that one can join to make friends and to keep their exercise and the gains.

For us, as individuals, all it takes is to step out, join in and enjoy our way to good health.

The working population spends a huge amount of time at work. Workplace arrangements can therefore be a big help or hindrance to the health and fitness of employees. A healthy worker is more productive, less costly in terms of sick leave, and therefore more employable. The SPA will be examining how to take the message and practice of health-giving physical activity for older workers to the workplace. The workplace platforms will then complement the community platforms in empowering and enabling the older workers and citizens to live long, live well and enjoy peace of mind.

Bank lending

Mr Ong Kian Min (Tampines): Madam, I would like to stress the importance of personal financial discipline in the low interest environment that we are currently enjoying.

Many banks and credit card companies are cold calling customers, offering low interest fund transfer. Some banks even send blank cheques through the mail. And all you have to do is to fill in the amount and drop the cheque into another bank account. I have received a number of such calls and when I tell the callers that I do not need their facility, the bait the caller use is that, "The interest is cheap, meaning low, so you should borrow." That seems to be the key selling point to entice customers. But cheap repayment

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loans with small monthly instalments and where the principal sum has to be repaid at the end of the promotional period are dangerous and give a false sense of financial liberty. They encourage people to spend by removing the worry of making periodic repayments to pay down loan. This is very tempting, all the more so that the Resorts World casino is open. We must never forget that low interest rates will not last forever. And in the case of fund transfer, the interest rate becomes punitively high as early as when the loan is not repaid at the end of its limited period.

Easy credit can be harmful or beneficial, depending on the hands of he who receives it. If we are not careful when we sign up for easy cheap loans, responding to cold calls, blank cheques and free gifts without thought and if we do not manage our finances carefully, the impact on our finances can be devastating. I would like to ask how the Monetary Authority of Singapore is monitoring this situation and whether it will be advising the banks on their marketing and sales practices.

Complex financial products

Mr Lim Biow Chuan (Marine Parade): Madam, let me declare my interest as the Vice-President of CASE to speak on this cut.

In September 2008, Lehman Brothers Holding Inc. filed for bankruptcy in the United States. About 8,000 retail investors in Singapore were affected and many suffered large financial losses. Many of the investors are retirees and unsophisticated investors with minimum knowledge of investing in such complex financial products. CASE is glad that MAS issues updates regularly on its website so that anxious retail investors are kept informed of the developments in the matter.

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I would like to ask MAS the number of cases each of the financial institutions handled and the outcome of such cases. How many were settled without going to Financial Industry Disputes Resolution Centre (FIDReC)? What about the number of cases referred to FIDReC? How many were resolved and how many were unresolved?

In September 2009, MAS called for a public consultation to strengthen regulations on the sale and marketing of unlisted investment products. May I know how MAS intends to ensure that financial institutions abide by the new regulations? How can there be more protection for consumers when investing in complex financial products sold by the financial institutions? Will the sale of such products to retail consumers be banned?

The Minister for Trade and Industry (Mr Lim Hng Kiang): Madam, MAS shares the concerns of Mr Ong Kian Min that Singaporeans should exercise personal financial discipline and generally live within their means. This is done at four levels.

First, MAS has rules on the granting of unsecured credit and credit cards in order to implement the Government's social policy of discouraging Singaporeans and PRs from spending beyond their means.

Second, even though MAS leaves it to the banks to put in place the appropriate risk management practices in extending such credit, MAS continues to emphasise to the banks the need to uphold prudent lending standards that take into account the credit worthiness of the borrower and the borrower's debt servicing ability.

Third, the Association of Bank in Singapore (ABS) has a code of consumer banking practice which requires the banks to provide clear information when offering financial products and services to their customers. For example, banks should

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inform customers of key information such as the applicable interest rates for credit facilities as well as the features and risks of such products. MAS expects banks to adhere to these standards as set out in the code.

But, finally, the consumers themselves must also need to carefully assess their own repayment capability and ensure that they do not incur excessive debt. They should exercise prudence and not commit to a loan because of attractive promotional interest rates or free gifts. MoneySENSE has been working with partners such as ABS and the media to educate consumers on the responsible use of credit facilities and factors consumers should consider before taking on the debt.

Let me turn to Mr Lim Biow Chuan's request on the update of the structural products. As at 31st December 2009, the financial institutions that were confronted with these structured products problem have received a total of 7,257 complaints, of which, they have decided on 97% of these complaints. Of the cases decided, 66.6% of the investors have been offered settlement of which 95.3% has accepted the offers.

Mr Lim also asked about the situation in FIDReC. As of 31st December 2009, a total 1,823 formal claims have been lodged with FIDReC for same defaulted products. Ninety hundred and ninety-three claims have been resolved while 51 claims are pending mediation and 779 claims have been referred to adjudication. The time taken to resolve a particular complaint would obviously depend on the factors such as the complexity of the dispute and when the parties involved are available for meetings and hearings.

Mr Lim Biow Chuan also asked about the actions that MAS would take to ensure that the financial institutions abide

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by the new regulations on the marketing of structured products. As Members know, MAS has put up the proposal and through the consultation papers for feedback from the industry and from consumers. MAS is still in the final process of resolving this and incorporating the feedback received. When the proposals are settled, MAS will implement this through legislative amendments to the Securities and Futures Act, the Financial Advisors Act and the relevant regulations, notices and guidelines. This will be done with proper regulations.

At the same time, MAS is intensifying supervision of the financial institutions in the sale of such investment products. Through inspections, mystery shopping and meetings with senior management, MAS will assess whether financial institutions have the proper systems and the controls in place to comply with these regulatory obligations. However, MAS still maintains that the primary role of the Board and senior management of financial institutions is to ensure that the controls and processes put in place are implemented vigorously and consistently by all staff in their dealings with their customers.

Where there are breaches on non-compliance with MAS' rules and regulations, then obviously, appropriate regulatory action will be taken by the MAS. The regulatory actions that MAS can take will range from a reprimand, issuance of directions, composition of fines, referral of the matter to the Commercial Affairs Department and prosecution, or in serious cases, the revocation of licences.

The Chairman: We have some time available so Members who wish to seek clarifications on responses given may do so. Ms Sylvia Lim.

Ms Sylvia Lim: Madam, I would like to seek clarification from Deputy Prime

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Minister Wong on his response to my cut. First, regarding the contents of the Electoral Boundaries Review Committee Report. Would the Prime Minister's Office (PMO) take up my suggestion to require the Report to at least give some reasons for changes to the boundaries? This would be something the voters, I think, would appreciate very much, to give credibility to the process. Secondly, regarding the timing of the release of the Report. I believe we are expected to make constitutional amendments to give effect to what the Prime Minister announced last year about the changes in configurations to the constituencies. And I think the Prime Minister has also mentioned previously that this would be tabled some time after the Budget. Would I be correct to assume that the Committee could only be appointed after those laws have been amended? My last clarification is: earlier Deputy Prime Minister Wong mentioned that the Boundaries Committee would take two to four months to complete its work based on historical experience. Based on that, would I be reasonable to assume that the new boundaries can be expected some time later this year, maybe end of third quarter or fourth quarter?

6.00 pm

Mr Wong Kan Seng: Ms Lim is indeed correct to say that there will be constitutional changes in the light of the Prime Minister's announcement last May. We are going to see fewer six-person GRCs. On average, there will be five-person GRCs and there will be at least 12 single constituencies.

Arising from the changes, the Constitution will be amended. The Prime Minister also said we are going to have more NCMPs. Right now, the Constitution says six and before the nomination, Prime Minister will, after the writ, state the maximum number of Opposition and NCMPs to be returned to Parliament. Right now it is six, and three are returned

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to Parliament, including the NCMPs. For our future Parliament, the Prime Minister has said that there would be nine NCMPs, including elected MPs. Total Opposition is nine. If indeed two Opposition Members are elected, there will be seven other NCMPs. For that, we need to make a constitutional change. As for the single constituency provision, I think, the law will remain. Same thing for the size of the GRC, the law will remain.

The constitutional amendments will be tabled at the end of this Budget debate. And because of these proposed changes, I would believe that the next Electoral Boundaries Committee will have to do a review of the existing boundaries in order to give effect to what the Prime Minister has announced. So does it mean that the Electoral Boundaries Review Committee cannot be appointed before the constitutional change? Well, between now and the end of Budget, I am not aware of any Committee being appointed. So I can safely tell her that the Committee has not been appointed yet. It would only be appointed after the constitutional change.

As to whether more explanation can be given by the Boundaries Committee Report, I think we will wait and see, because I cannot prejudge or presume what the Boundaries Committee will decide.

The Chairman: Are there further clarifications? No? Mr Yao.

Mr Matthias Yao Chih: Madam, I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

The sum of $247,297,100 for Head U ordered to stand part of the Main Estimates.

The sum of $43,646,300 for Head U ordered to stand part of the Development Estimates.