EXEMPTED BUSINESS

EXEMPTED BUSINESS:

(Motion): Resolved,

That the debate on the Budget Statement be proceeded with beyond 7.00 pm and the proceedings thereon be exempted at this day's sitting from the provisions of Standing Order No. 91(3). – [Mr Mah Bow Tan]

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ANNUAL BUDGET STATEMENT: Debate resumed.

Ms Ellen Lee: ( In Mandarin ): [For vernacular speech, please refer to Appendix A.] This year's Budget is indeed shocking to many people, making our people realise how serious the present situation is. It also shows the determination of the Government to deal with the problem. The Government not only insists that employers should endeavour to retain the jobs of their employees, but also makes history by opening up the coffer to draw into our past reserves, and goes even further to introduce the unprecedented Jobs Credit, Special Risk-Sharing Initiatives and other packages to help employers who are not doing well to cut costs and save the rice bowls of their employees so that they can keep their flats, or at least delay the possibility of losing their jobs.

Among all the commentators who are making waves all over the world, my deepest admiration is for the Lianhe Zaobao commentator, former Member of Parliament, Mr Goh Choon Kang. In his article, " Conscientious Economics ", he described the Government as a clever housewife. This is an apt analogy – "There are good housewives, there are also not so good housewives. A clever housewife or daughter-in-law is well loved by her parents-in-law. A clever housewife will make use of her wisdom, her virtue, her clever thoughts, her decisiveness and

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unite the old, the middle-aged and the young in the family. Enhance the family cohesiveness and collectively overcome adversities, making it one big happy family."

On this occasion, our ordinary folks would look at the Government as though it is their young daughter-in-law. If she does well, it is to be expected, and even then there are things that she could have done even better, and if she does not do well, then, of course, she will be subjected to very severe criticisms. It is very difficult to please everybody. Fortunately, our Government's style is not to be deterred just because some people may have other ideas. Otherwise, we would not get to enjoy the new lease of life brought about by this unique Budget.

Apart from thoroughly resolving the problems affecting the daily lives of the people, the Government should also care for the present mood and spiritual condition of the ordinary folks. Every day, every night, we keep hearing depressing economic news that would hurt our fighting spirit and undermine our confidence. It would make our people worry, disheartened and following that, it may even lead to family discord, bankruptcy and marriage breakdown. Therefore, I support the Prime Minister's call that we should help our people through our grassroots leaders, our grassroots organisations, our community organisations, so that all our people will feel that there is warmth and care in the society, so that they will be able to pick themselves up and try to ride over these difficult times. Even for those who do not go for medical treatment because of financial difficulties, we should encourage them to go for treatment so that they would recover sooner.

( In English ): The Government has set aside $3.7 billion towards healthcare and a chunk of the monies will be used towards promoting mental well-being. I

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strongly support and applaud this move as we are already seeing a rising number of people seeking treatment for some milder forms of mental illnesses, such as depression or anxiety to more serious forms which border on insanity and unsoundness of mind. Furthermore, "addiction" is also classified as a form of psychiatric ailment and many people are addicted to many different things that may cause them to behave in ways that cause their loved ones to wonder if they are mentally sound. I believe that there are still many more people needing help but they or their family members are not coming forward to seek help as they fear the social stigma of being labelled "mad".

Mdm Deputy Speaker, my worries are:

(i) Just how effective are we in reaching out to those who are suffering from some form of mental illness, but are undetected or unreported due to ignorance or the very stigma of the illness?

(ii) The decision to allocate funds to promote good mental health is a top-down approach. Are we doing enough to pro-actively promote mental health to make it a ground up movement? We are effective in our efforts to help those who need cash or other material help, but sadly lacking in helping those with mental illnesses who do not voluntarily come forward or are easily detected.

(iii) Do we have the necessary infrastructure and step-down care facilities needed to cope with rising number of such cases and professional outpatient care to ensure all who need it would be able to undergo assessment and treatment? Should the funds be also allocated generously to voluntary welfare organisations to provide community support and programmes, so that recovered and recovering victims of

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mental health and related problems are able to assimilate back into their families, workforce and society when they are better?

*Cols. 1849-1850.

With our ageing population, more elderly are also suffering from various forms of mental illness ranging from dementia to Parkinson’s disease. Most, if not all, forms of mental illness require prolonged period of after-care and follow-up plus treatment. More often than not, the medication required is for the long-term and they usually do not come cheap.

It is a worrying trend that as the elderly and the frail are usually unemployed and totally dependent on their children for their living expenses, they would be the first to be considered in the budget cutting exercise. Given the current downturn, it is likely that medication or treatment for the elderly will be among the first to be considered as unnecessary expenditure that have to be cut. The elderly themselves may well think and feel this way too as they consider themselves a burden to their children, which will result in much more serious problems. As such, we should ask what more can we do to help those who can ill-afford the costs of mental illness treatment and rehabilitation. Perhaps more doctors and social work and medically trained personnel could be rallied to help.

Together with my parliamentary colleague, Ms Cynthia Phua, who spoke of this earlier, I urge that sufficient resources, efforts and programmes be embarked on with the huge budget given to healthcare to ensure that we will all stay sound and sane amidst much unsoundness and insanity in the markets and the global economy. I hope that there will be an inter-Ministry committee for this wellness programme to be launched with the whole-of-Singapore approach.

Mdm Deputy Speaker, with this I strongly support the Budget.

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Dr Muhammad Faishal Ibrahim (Marine Parade): Mdm Deputy Speaker, the current economic downturn has shown itself to be among the worst in history. Despite much of the reported efforts of many governments around the world to stave off its damaging and gloomy effects on their economies, there is very little evidence that blue skies lie ahead in the near upcoming months. Our fortunes being tied to the global economy, puts us in a similar dire situation.

However, I am optimistic about our future. The Resilience Package commensurates with our nation’s forward-looking approach to nation-building and also touches the heart of the matter for Singaporeans. I believe that this is a Budget crafted by the people, for the people with the true Singaporean spirit and heartbeat.

Madam, I believe that as much as we could inject billions of funds to mitigate the effects of this downturn, the spirit, resilience of the country that normally characterises Singaporeans is equally needed at this time. To overcome this crisis, I call upon all Singaporeans to 'take the bull by the horns' in this year of the Ox and work together as Team Singapore. I believe that this crisis requires a many 'hands, feet and minds' approach to resolve. It requires us as Singaporeans from all walks of life to do our part. The well-off can donate in kind and support meaningful initiatives; the educated to support the less educated through volunteerism while those from the low-income to persevere, upgrade their skills and stay employed. Support groups could provide emotional support while schools can play a more proactive role in reaching out to families affected by the downturn.

Allow me to continue my speech in Malay.

( In Malay ): [For vernacular speech, please refer to Appendix A.] Madam, as

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the name of the Budget suggests, the Resilience Package also aims to increase the resilience of Singaporeans when going through these difficult times. To help the people, the Government gives various handouts, including cash through the GST Credits, as well as rebates on other monthly bills.

Singaporeans must be smart in using the additional cash so that they can use the different handouts for as long possible and not to spend it in a short time, for example by buying expensive goods.

On the issue of finance, I really hope our citizens will have the resilience with regard to their money. This includes having sufficient savings and saving regularly so that their savings will increase. As the saying goes, "Look after the pennies and the pounds will look after themselves." Each dollar saved every month will result in a higher savings amount for the future.

A good example is the saving habits of our Government. Savings are made during good times with the budget surpluses being kept in the national reserves. Eventually, these reserves will accumulate and become an important source, especially during these difficult times. In facing the weak economy now, the Government has to spend a huge amount and any deficiency in the national budget can be overcome by careful use of the national reserves.

This practice must be followed by our citizens. The reserves accumulated by each family will become an important source when they face hardship like the one now, with the risk of pay cuts or, even worse, retrenchments. In this matter, our people must continue to improve their knowledge and skills in financial planning. They need to know the basics of financial planning, including setting aside part of their income to build

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individual and family savings. More people are increasingly aware of this practice but it needs to be actively instilled among our citizens.

Financial planning is not only for the high income earners but it is more important for those with middle or low income. They face higher risks in the current weak economic climate with the possibility of wage cuts or retrenchment, and therefore they need sufficient savings in case something unexpected happens.

Admittedly, some organisations do have financial planning workshops. I applaud their effort and urge that such efforts be increased in order to give more benefits to more people. Financial planning not only involves regular savings but is also required when we buy expensive goods and services. This includes house and car purchases, where we need to know financial planning so that the payments and other expenses will not exceed our income. Let us not follow the Malay saying – being stylish to the extent of finishing all our money – but let us spend within our means.

At the same time, I would like to see our community continue their journey towards excellence. Do not let the current economic downturn hinder our objectives. In this regard, excellence can be achieved by improving the quality of our work. Besides this, we have to upgrade our knowledge and skills until we become a high value-added worker to our employers. This will turn us into an important asset to our companies. The journey towards excellence must not stop even in these difficult times so that our community will be more ready to take advantage of the opportunities when the global and local economy recovers. Let us continue to pursue excellence during this downturn.

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Allow me to continue my speech in English.

( In English ): Madam, besides the cheers from the initiatives of the recent Budget, there are still concerns among Singaporeans. Though many Singaporeans are striving to be self-reliant, if one does not have a job, the situation may still be challenging. We have to continue to fine-tune our systems to facilitate the process of securing jobs for Singaporeans. I am concerned that many present workers will become ex-workers who will be desperately trying to find a job to feed their families. In addition, I have met a few groups who are very concerned about the economic downturn. These include Singaporeans who are 40 years and above, and unable to find a job, as well as those who cannot be employed like the elderly, disabled and mentally incapacitated.

With these considerations in mind, we need to invest in more social workers and counsellors to support Singaporeans proactively and devise a holistic approach to help families in need. I would also like to urge the Ministries, Government agencies and privately-run organisations to adopt a more compassionate approach in addressing the problems of Singaporeans who are having difficulties during this downturn, particularly, those who have lost their jobs and have many dependents to support. For example, due to job losses, many may have difficulties to pay their housing mortgage loans and other bills, which will certainly add to their distress. While ensuring that Singaporeans are responsible for their spending, we need to empathise with their anxiety as well as the complex circumstances faced by them.

Madam, in our pursuit to survive this economic downturn and prepare for the upturn, I feel we need to be bolder and continue our effort in enhancing innovation and creativity in Singapore.

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Through the Budget and other avenues, we need to provide the platforms and opportunities for Singaporeans and companies to be creative and innovative in facing the challenges of the downturn so that we can ride on the opportunities and reap benefits in better times to come.

We have seen how the Government through its ministries and agencies, as well as private organisations, such as the Meritus Mandarin, have been creative and innovative in saving jobs for its people and employees.

Madam, many MPs who spoke before me have called for job saving and job creation. I believe among other measures, we need to be bolder in our effort in building creativity and innovation in Singapore. This will give us a long-term job creation sustainability and contribute towards the creation of a new economic eco-system.

I am pleased to note that the Government will spend $130 million on enhancing grants and training schemes to encourage enterprises across various sectors to refresh and develop new capabilities as part of the programme "making innovation pervasive". In relation to this, I would like to ask the Minister how our local start-ups are doing with regard to innovation and bringing their innovation to the market. With the current credit crunch, small start-ups may be driven out of the market even before reaching the mature stage of the innovation process. While the future lies in innovation, I find that many of these enterprises constantly face financial challenges in keeping afloat as well as struggle to attain market penetration. I believe the Government can do more to support the growth of these innovative enterprises and start-ups that have the potential to develop into massive multi-national corporations in the future. For example, companies like Google, Apple

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and Facebook were once start-up companies but have today become a tremendous force in job creation and innovation. The true economic benefit is far from the measurable number of jobs each of these companies creates. When Intel created its first micro-processor in early 1970s, who could have predicted or imagined that the Intel of today would become the world’s largest chip manufacturer. While the current recession poses threatening economic challenges, it also presents an excellent opportunity for us to be bold in our drive towards innovation. At a time when people at established companies may be losing their jobs, we need to provide a decisive approach to support job creation within knowledge-based enterprises, which also includes our start-ups.

Madam, Prime Minister Lee Hsien Loong has described the Resilience Package as a 'very decisive Budget' that aims to help Singaporeans through the difficult economic times ahead. On this, let me share with you in the House about a note which was received from Mr Robert Yang, Senior Vice-President of DFS (Duty Free Shop) Worldwide, where Robert shared an exchange between DFS President for Worldwide Operations, Michael Sheever, with the Chairman and CEO, Edward Brennen about Budget 2009.

*Cols. 1851-1854.

Michael wrote, I quote, "This will certainly help. Unfortunately, there is a part of me that thinks we would need it. You have to admire the Singapore Government. They are tough to deal with but decisive and fast when it is necessary. What a great idea on their part to protect their tax-paying citizens. Someone should send this to Obama."

Madam, here we see how a non-Singaporean corporate leader think of Singapore and our political leadership. It is an endorsement for Government's effort in this Budget to save jobs and business. In the words of Robert, he said, "I am proud to be a Singaporean."

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Madam, using an imagery which I have used before at a Convention, where each country or nation is represented by people climbing the different peaks in a mountainous area, the current economic crisis will cause people from many countries to slow down or perhaps retreat from their climb towards the higher peaks. Some may even fall down from their higher peaks. However, as we slow down in our climb towards the different peaks of excellence, it is important to continue to invest in our base-camps to provide the appropriate infrastructure to face the current crisis and facilitate the progression towards the higher peaks even during this current downturn. In addition, we should continue to invest in our people to enhance our skills and expertise so that we can be effective in our pursuit of excellence.

Madam, my key message today is: Singaporeans need to have the perseverance and creativity to brave this difficult period as One People, One Nation and One Singapore. While this downturn is different in its form and magnitude, I believe we will pull through together with the Singapore spirit.

On that note, I support the Budget.

Mr Christopher de Souza (Holland-Bukit Timah): We live in capricious times. Two days into the New Year the Government was forced to cut its growth forecast for 2009. The numbers keep on changing; current estimates for 2009 are -5 to -2 %, about 6,400 people lost their jobs in the last nine months of 2008. Today, there is wide speculation that the figure will surpass 30,000, dwarfing the 1997 Asian Financial Crisis.

Madam, Budget 2009, delivered early, gave needed reprieve to Singaporeans. It injected a sense of confidence in the Government – this confidence derived principally, from Singaporeans realising

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that the Government knows the cause of the problem, and, equally important, has the wherewithal to address it. That the Government is able to do so without borrowing, unlike many economies in the world, sets it apart.

These were also the sentiments of the P65 Singaporeans with whom I had a Budget dialogue on 30th January. The purpose of the dialogue was to analyse the Budget, from a P65 Singaporean’s perspective. While fully supporting the watershed Jobs Credit and SRI Bank Lending stimulus (both schemes using past reserves), and the business cash flow and direct assistance to households initiatives, the discussion veered to four further concrete ways of how to alleviate the hardships of Singaporeans. I would like to discuss these four today.

We need to reconsider the treatment of contract and casual workers. Why? Two reasons: Firstly, because the people who hire contract workers often do not contribute CPF for them. This lack of CPF means that the contract worker, who is likely a low-wage worker, does not grow his retirement nest egg. It also means that he has less to pay towards his housing asset, which gives him more incentive to rent. This goes against the principle of Home Ownership, which is a "key pillar" of our economy. Importantly, for the purposes of Budget 2009, a worker would need to (a) contribute CPF, and (b) contribute towards his Medisave account to receive the knock-on effects of Jobs Credit and the WIS and its special payments. Contract workers, often a highly vulnerable group of Singaporeans, will therefore not benefit from either.

There are several solutions to this:

Firstly, to step up education of employers to ensure that they are aware that they must pay CPF for contract workers who receive more than $50 a month.

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Secondly, to embark on a major increase in enforcement measures and impose hefty penalties on recalcitrant employers.

Thirdly, to educate and empower the contract workers themselves so that they are aware of their rights and are not afraid to report employers who fail to pay CPF.

These measures are necessary because employment contracts often see the employer in a strong bargaining position; and the potential employee or worker in a weak position. This especially applies to our Singaporean contract workers, such as contract cleaners, who lack formal education, speak dialect, are elderly, and are in desperate need of a job. Such inequality of bargaining power, a principle recognised in contract law, becomes more acute when the workers know that 30,000 people may lose their jobs. If their employer refuses to pay CPF, they may be afraid to speak up, because they worry about the fact that they may lose their job.

Hence, we need to do more to ensure that these vulnerable workers receive CPF contributions, have a retirement income, and are able to purchase a home.

I hope that the Government seriously considers ramping up these measures. With growing numbers of workers hired on a contract or casual basis, this problem must be quickly addressed.

The second reason for changing the treatment of contract workers is because without CPF contributions into their Medisave account, the contract worker will not get the benefits of WIS or the WIS special payments envisioned under Budget 2009. Therefore, this WIS (the fourth pillar of our social security system), to quote Budget Debate 2008, is not available to the contract worker. Without the matching employer’s contribution, the

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contract worker is unlikely to voluntarily put a portion of his limited wage into Medisave.

Additionally, the job security which Jobs Credit is envisioned to bring is unavailable to the contract worker – if he is not on the employer’s CPF payroll.

So, in order that this Budget well and truly achieves its aim of giving (a) job security to Singaporeans and, (b) targeted assistance to vulnerable workers, surely the Government should first ensure that as many people qualify for the Jobs Credit and WIS as possible. Since the qualifying mechanism is CPF contributions, I urge the Government to embark on major efforts to ensure that all workers who qualify for CPF are in fact receiving it from their employers.

In the meantime, as a temporary stop-gap measure, would the Government consider removing the requirement to contribute to Medisave in order to receive WIS payments? I fully understand that WIS is meant to be "Workfare not Welfare", but is not the worker already helping himself by working? Hence, as a worker, he should be legitimately qualified to receive Workfare. This will encourage people to work. For the sake of clarity, I am in support of tying Jobs Credit to the CPF payroll, since this will give employers added incentive to pay their workers CPF. But WIS is different – it is meant to incentivise the worker not the employer. Therefore, given the worker has taken the step to work, he should be given WIS regardless of any contribution to Medisave.

I have two more suggestions for how the Government can alleviate the plight of contract workers and other vulnerable low wage workers.

The first suggestion is based on the fact that the Government provides jobs to

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many Singaporeans. My suggestion is that the Government, together with GLCs and Town Councils, should lead the way in ensuring that all workers who provide the Government with services, such as cleaning services, receive matching employer-employee CPF contributions. This will also ensure that they can receive WIS and the job security that Jobs Credit seeks to achieve.

The second suggestion is for the CDCs. When CDCs give financial assistance to residents, the CDCs should also automatically deposit a portion of the financial assistance into the residents' Medisave Accounts. This way, if the resident is working he will receive the WIS component from the Government. This could also incentivise residents who are not working to work so that they can receive WIS.

Madam, the second suggestion about what more we can do to help Singaporeans in these difficult times, arising from the Budget dialogue I had with P65 Singaporeans, has to do with the foreigner-Singaporean worker ratio. We have heard how a foreign workforce adds value to our economy and, in fact, creates more job opportunities for Singaporeans. However, when I do supermarket shopping with my wife, we observe that most of the check-out counters are manned by Indonesians, Filipinas or Malaysians. It seems very few staff in the supermarket are Singaporeans. The same is happening in hawker centres – many stall assistants or coffee-shop assistants are PRC Chinese nationals. English is being spoken less in the retail and service industries. In restaurants, waiters and waitresses come from around the region – Indonesia, China and so on. The feel and environment in these places is changing and changing rapidly. Because these places are in the heartlands, the environment in our heartlands is changing.

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I ask: Is it the Government’s intention to have the service industry, such as waiting tables, check-out counter staff, manned by foreigners? How does this benefit Singaporeans who would be willing to take on these jobs? Given the flourishing numbers of foreigners in service industry jobs, would the Government consider tweaking the quota system to ensure that the minimum number of Singaporeans employed by a company at any one time is increased, and the number of foreigners decreased? This is not to question the service standards of foreigners – my main concerns are two-fold: (i) whether Singaporeans who want and need these jobs are unable to get them due to the large number of foreigners, and (ii) whether the Government has given serious thought to the rapidly changing cultural dynamic, feel and environment in our heartlands? A more strict Singaporean-foreigner worker ratio could make these changes less rapid, and more manageable.

The third proposed area where we can help Singaporeans in these difficult times is by giving more power to FIDReC. Presently, FIDReC has been the authority of choice for Singaporeans seeking redress for mis-sold financial instruments. FIDReC is a lot cheaper than seeking independent legal advice and pursuing litigation. However, FIDReC’s jurisdiction to adjudicate disputes between banks and consumers only goes up to $50,000. A resident in my constituency who lost a considerable amount of his life savings informed me that consumers could appeal for adjudication up to $100,000. But this is only an avenue of appeal, which if unsuccessful means that the consumer has recourse to adjudication for up to $50,000 of mis-sold products.

This is too low a cap. Why not create parity between FIDReC’s jurisdiction and the jurisdiction of the Subordinate Courts – that is, allow FIDReC to adjudicate matters involving sums of up to

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S$250,000? This will allow many Singaporeans caught out by the Lehman minibonds, and other structured products, to take benefit of an adjudication without expensive legal redress. I give two real examples from my constituency of why FIDReC’s limit is too low. First, when I went for a recent market visit in my constituency, a wet market stall holder informed me that his wife had invested their life savings in Lehman-linked mini bonds – $200,000. They worked day in, day out. They saved about $1,000 per month and they have been working for about fifteen years. The money was meant for their children's education. Should my resident have to pay substantial legal fees for representation in Court just because FIDReC cannot adjudicate matters beyond $50,000? It does not make sense. The second example is an elderly couple who live in my constituency. The lady invested her life savings as an assistant nurse in Lehman-linked products – over $200,000. She informed that she had parked her money in POSB for the longest time before putting her money in Fixed Deposits. She told me that the only reason she moved her money from Fixed Deposits to the Lehman product was because a Relationship Manager came to her home and persuaded her by saying that the principal would be secure. She did so very reluctantly. Her investment is now worth next to nothing. She went to FIDReC only to be told that it handles claims up to $50,000. My resident’s only option is to pay legal fees out of the little left she has to trial her chances against the bank. In light of examples such as these, which I am sure are repeated in many of the Members’ constituencies, would the Government consider increasing FIDReC’s jurisdiction to the Subordinate Courts' limit of up to $250,000?

The fourth point I wish to make is not so much a suggestion but a strong endorsement on behalf of the P65

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Singaporeans I had a dialogue with, of the Government’s concerted effort to employ up to 18,000 workers in the uniformed and civil services.

One of the main concerns of the P65ers was job prospects for those graduating from ITE, University and Polytechnics in 2009, and those who graduated last year. I strongly support the Government's strong recruitment drive, and urge the Government to continue to create more of these useful employment prospects. There is, no doubt, gauging from the responses of the P65 Singaporeans at the dialogue, that these recruitment drives have created a significant sense of comfort among the younger Singaporeans. The sense of comfort comes in knowing that the Government is actively and innovatively creating new jobs. I note that the Government's recruitment is also targeted at workers seeking jobs in project management, IT, accounting and urban planning, therefore offering a wide selection to graduating classes. This form of job creation will tide young Singaporeans over the difficult near future. They will also benefit from learning about the mission, vision and values of our first class armed forces and civil service.

In conclusion, Madam, I support the Budget, not only because of its generosity towards Singaporeans, but because it essentially displays the Government's resolve to secure jobs, keep its promise that each student will be given a first rate education and shepherd the economy through a tumultuous time. To have the wherewithal to put Singapore on such a track at a time like this is admirable. To do it without borrowing, sets this Government apart.

Madam, I support the Budget.

6.46 pm

Dr Fatimah Lateef (Marine Parade): It is a bold Budget they say, valued at 6% of

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our GDP. It has pushed new boundaries. It has sparked debates in all sectors, from coffee shops to schools and corporate boardrooms.

Mdm Deputy Speaker, extraordinary circumstances do call for extraordinary measures. It is a most challenging crisis we are facing, just as Barack Obama puts it rather succinctly, and I quote, "The challenges we face are real. They are serious and they are many."

Yes, it is serious enough that we have to respond in an extraordinary way with a calculated risk at implementing the well-thought and researched Jobs Credit Scheme. The Member Mr Low Thia Khiang yesterday wanted evidence that it will work well as a pilot, as an original. There will be no prior data and no statistics to analyse for now. It may or may not be statistically significant, in terms of saving jobs, we have to see. But to help him see this clearly, let us consider the following hypothetical scenario. Company A has 200 employees with Jobs Credit Scheme at 12% for the first $2,500 per employee per month, this would mean $300 per employee per month saved by the company. Thus, for the 200 employees that Company A has, it would get about $60,000 per month from the Government. This can be used to pay for at least 20 workers if we consider each of them earning about $3,000 per month. This is equivalent to Company A not having to formally pay the salary of about 10% of its workforce as the Government is already doing it. These 20 people could have lost their jobs without the Jobs Credit Scheme. But we will have to monitor the scheme and follow through.

Mr Low was also not supportive of the scheme as he said the companies which are doing better will also benefit from the scheme. I asked him – but he is not here

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– so what? In a crisis as this, everyone and every company will be affected by the tsunami people effect, no matter how deep their pockets are. Anyway, such companies can share their benefits with their employees – sharing bonuses and goodwill during good times and of course taking pay cuts and tightening their belts during tough times. If the Member can come up with something more practical and creative, I am sure everybody will be more than willing to listen to him.

Member Sylvia Lim also suggested earlier today by giving out money to retrenched workers. She suggested giving out 50% of their last drawn salary for six months which she said should be ceiling about $500 per month. I am not sure we want to support this, instead of making sure people have jobs like the Jobs Credit Scheme. Because I would also caution the Government against taking on her suggestion, as it may lead us down the slippery slope of unemployment benefits, welfarism and of course something like what we call the dole scheme in the West. So imagine what this would do to our workers, in terms of their mentality and psyche as well.

Globally, this crisis is the consequence of an era of easy credit, indebtedness, instant gratification and living beyond one's means. For example, the sub-prime crisis and the Ninja loans in the US. But this crunch actually stems from a deeper moral and spiritual matter. At stake, is a virtue which capitalism depends on, that is thrift. The main reason we are in this situation is that people have lost their sense of thrift. In Samuel Smiles book titled "Thrift", it is mentioned that thrift is the daughter of prudence, the sister of temperance and the mother of liberty. From the economic perspective, thrift begets capital, which begets prosperity

Minister Mentor Lee Kuan Yew has mentioned that, "this Budget is not ungenerous, nor overly generous".

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Indeed, it is a natural law, you cannot both overspend and save at the same time. We would not have been able to afford this Budget if the Government had not been prudent and frugal. Financial prudence and thrift are part and parcel of our public expenditure. Frugality will prevail in public finance far into our future.

On the issue of why we have to dip into our past reserves brought up by Member Mr Low Thia Khiang again, I feel that Mr Low should be happy that we do have reserves to dip into. This is the result of a hardworking and honest Government that has seen us through many previous recessions.

Now that the Budget package has been announced and the monies are about to be disbursed, it calls on everyone, every family and every company to do the right thing, ie, the practice of thrift and prudence, compassion and empathy. This encompasses the ideals of hard work, financial prudence and generosity. Thrift leads us to use all we have in the wisest way to promote thriving. This Budget will test Singaporeans' adaptability, how companies can negotiate changes and innovate, how professionals can learn from conversion courses. It calls on us to reflect on what our wants and needs are. Strict financial planning for yourself and your families. Live within your means. Waste not, want not and always put something aside for a rainy day.

All these seem so familiar to me. Coming from a family with very modest background, I did voluntary community work during school breaks to fend my restless teenage energy, whilst my friends went on overseas holidays and on shopping sprees. In fact, this service to the community sparked my involvement in humanitarian work, serving humanity on a global scale today. Indeed serving humanity is the best work of my life and

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thrift is not a brake on your dreams, excellence, ambition, promotion, success and reaching out to others. Ignite your imagination and creativity and learn to think out of the box during these challenging times. Do not be negative and do not feel down. It is not how badly things turn out for you so much as how you respond to them that is important. We can use this period of crisis to come out more into the community. Spare some time to volunteer your services, build your networks and for those who have lost their jobs, we may be able to help put you in touch with our community outreach programmes and job placement programmes. You may just find a job through networking with others. The positive influence you create on people is something which cannot be measured in dollar and cents.

OCBC has done a survey on the top dreams and wishes of Singaporeans. Last year, the top three dreams and wishes were: (1) seeing the world; (2) self improvement; and (3) making money. Not surprising. This year, the top three wishes are: (1) starting families; (2) settling down; and (3) buying a home. It certainly highlights the return to core values of family, kinship and human relationship. How these have changed in a span of just a year!

With this Budget, Madam, the question we have to ask ourselves is not whether our Government is too big or too small but ask whether it works, whether it helps families, whether it helps create and fund jobs, whether it cares and whether it helps citizens plan a retirement which is dignified. The small red dot has a strong brand name and a big heart, and at its core will be the ethos of thrift.

( In Malay ): [For vernacular speech, please refer to Appendix A.] This year’s Budget is the biggest ever. It requires Singapore to dip into the national reserves. This shows that Singapore is in

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a good position to overcome the economic crisis, and we have enough savings that we can give away.

The wisdom of making preparations for difficult times, for example through the practice of frugality and savings, is an approach that is often emphasized by the Government. Hence, for the Malay/Muslim community, I would like to ask them to always instil in themselves the habit of being frugal, and to be flexible during this economic downturn.

Try to use this period of downturn to attend "Smart Spending" programmes, and learn ways to reduce unnecessary spending. Parents must teach their children about the importance of saving from an early age, as the Malay saying goes "If you are willing to persevere in the beginning, you will enjoy the rewards later."

For workers, they need to continue taking the opportunity to upgrade themselves so that their skills stay relevant. Those who are unemployed also must not be choosy when it comes to jobs, in order to continue their livelihood.

Our new graduates must change their mindset, accept any available jobs first and not to be too choosy. Our objectives must be to strengthen abilities and improve qualities. Experience also plays an important role. The era of the iron rice bowl is over.

This Budget focuses on workers and jobs, although there are those who hope for more cash handouts. The Government’s thrust to save jobs is the correct action because without jobs, how will the families support themselves? With jobs, these families can pay for their daily expenses and livelihood.

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The investment on children’s education cannot be compromised, and for those who cannot afford it, the Government has many schemes to help them with regard to their children’s education.

The Government also gave assurances that those in need will receive help, including the low-income, elderly, the sick and those unable to work, through the programmes that were announced.

Help is also given to those retrenched, including through training programmes that will prepare them for other jobs.

Eventually, no matter how much is done by the Government, it is up to the individual to work hard and stay committed to overcome this crisis. Our community has overcome many challenges before this, and is able to move forward. I believe that they possess a lot of resilience in facing this economic crisis.

*Cols. 1855-1858.

( In English ): Mdm Deputy Speaker, I support the Budget.

6.57 pm

Mr Wee Siew Kim (Ang Mo Kio): Mdm Deputy Speaker, let me congratulate the Minister for Finance for a Budget which has won all-round praise.

As one businessman aptly said, "The Government has heard the suffering and addressed the issues squarely and more than adequately, surpassing all expectations." From businessmen and residents alike, the scope and magnitude of the Budget have certainly drawn positive superlatives.

But who knows how long and deep this downturn is going to be? I believe we need a cocktail of remedies to help our people through one of the toughest downturns that Singaporeans have ever experienced.

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Beyond the Budget, how each of us in our various roles in society and the working community will support and empathise with those in need is also critical. It will speak of the type of society that we are. I hope that the gracious society that we have been developing will come to the fore in this period of need.

But we should also emerge from this challenge with a stronger spirit as a nation, more united having weathered another major trial as one people. As such, I would like to talk about the roles of three groups – administration; families and community – in managing through this recession.

Through this upsize Budget, it is clear that the Government is concerned, not just for businesses but also for individuals. In addition, there are many Government schemes to help the needy and jobless. The question is perhaps what more can the Government do to show care?

In the GPC dialogue with the Minister for Community Development, Youth and Sports, it is evident how MCYS staff, from the Minister down, jump through hoops to reach out and help the needy. This Ministry is definitely one that cares a lot. But care for the people cannot be just MCYS' purview. Can the other Government Ministries also reach out and help within their jurisdiction? Can they empathise with people who seek assistance and be more sympathetic to those who find themselves in difficult situations.

Take a very simple but painfully real case –

that of a resident who received a curt reply to his appeal for a waiver of a simple parking offence. I have often read such curt replies. Some seem to imply that the agencies believe that Singaporeans are lying unless they can prove otherwise. It need not be so. Why not give the benefit of the doubt for the offence? In such instances, the agency

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can be more sympathetic because a stiff fine definitely hurts, even worse, a licence revoked – all affecting incomes and livelihood.

Why not take a leaf from ComCare support? ComCare works on the principle that the grassroots know the ground situation better. Without direct contact and communication, Government officers sitting in their offices may not be able to fully appreciate the circumstances and needs of the families and individuals. As such, in instances when officers have to make a judgment call, why not be generous in compassion or set up a system where people closer to the situation can be relied upon for an additional view or judgment, just like the roles the grassroots leaders play in the delivery of ComCare support. In these difficult economic times, we can perhaps be more forgiving and try to go out of our way to be more understanding and sympathetic.

It is time to bring more heart to policies and manuals. Our civil servants are known to be smart, tackling issues in a logical fashion. Brain power is never lacking. But it is often said that in any campaign, you need to win the hearts and minds of individuals if you want to succeed. So, I think that this is the time to go about one's responsibilities with a heart. Even if you have been burnt before, go about doing things with a heart.

The Jobs Credit Scheme is an ingenuous arrangement that preserves the CPF contributions which many Singaporeans depend on for their mortgage payments while, at the same time, saves costs and conserves cash flow for the employers. It helps keep more people in their jobs, with experience and tenure intact, ready for the time when demand returns. Another uniquely Singapore scheme is the Workfare Income Supplement Scheme, which encourages workers to find and stay at work while, at

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the same time, helping them to save for their longer term needs. However, the good intentions of these two schemes may be negated somewhat, if we continue to rely entirely on the tender system and outsourcing of work.

Take the example of cleaning contracts. Every time it is tendered, the price drops. Even as the new contractor takes over the workers, he needs to find ways to reduce his costs as he has invariably tendered a lower price to win the contract. Guess what gives? The worker gets paid a lower salary to do the same work.

The Government has set a good example with the Job Redesign so that certain work could command a higher pay. But more needs to be done. Here, the Government has opportunities to set a leading example. I know this is but one example. There are, without doubt, merits in outsourcing and the tender system, but the evaluation must be more sophisticated, taking into consideration whether succumbing to the allure of short-term cost savings would lead to longer term problems.

Let us face it. Value creation is with the businesses. Job creation is with the businesses. The Administration must make it easier for businesses to operate. Having bonuses pegged to GDP growth is already an indication that our leaders believe that growth is one key indicator of performance. However, many in the civil service may still not fully appreciate this.

Allow me to give you an example. But let first me declare a conflict as it concerns one of the companies that I have responsibility for. I only heard the details after the dust has settled. We were merrily operating from land owned and leased from one Government agency. Then the land was transferred to another Government agency. With that stroke of

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the pen, costs increased. Moreover, we were told that we should consider ourselves lucky as, in normal circumstances, we would have to vacate the land, make good to original conditions and then re-establish ourselves once the ownership changes between the two Government agencies have taken effect.

In reality, what has happened? The land title changed from one agency to another and costs to the businesses increased. In this instance, where has value been created? At the end of the day, the company was practically "bullied" into complying. I used the word "bullied" figuratively as I do not, for a moment, believe that it was the leaders' intent but the execution has gone awry. Here, straightforward, single-minded adherence to manuals and policies would not suffice. It is to be infused with a strong dose of the appropriate culture and spirit. It is the entire mindset that people bring along while executing their work that counts. It is the awareness of what is the end game that counts. It is not one agency showing better performance, regardless of its impact on others.

There are more examples but bear with me with just one more. Another area for more Government support is the social service sector. SILRA Home is in my ward. As part of urban renewal, they move from a sprawling one-storey complex to a modern high-rise building sited on a land footprint a fraction of the land it vacated. Expenses increased due to maintenance of elevators and all other costs associated with a high-rise building. However, their grant has remained stagnant. The officers overseeing SILRA have turned a deaf ear to their entreaties in the face of these increased costs. How stout a heart these volunteers have, before they throw in the towel? My message – please administer with a heart.

Families must pull together. Families are the foundation stones of our society.

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There are many schemes to encourage family togetherness. Examples include the grant to encourage children to stay closer to parents and financial incentives to children who top up their parents and siblings' CPF accounts. We can do more. Give incentives for three-generation housing needs, for example, priority in flat application, selection queue or give a one-time incentive bonus to be used for renovation or furnishing the selected HDB flats. I know we have just increased the additional housing grant. We can enhance it some more to further nurture family cohesiveness. In good times and in bad, we expect families to pull together and look after one another. True kinship sees everyone through thick and thin. However, we all know that there are able but irresponsible children who neglect their parents. We must act for these neglected parents or this will be a further and unnecessary load on society. One can even argue that some parents deserve to be neglected. But if they are infirm and aged, should society be made to shoulder a disproportionate burden?

From previous debates, progress has been made. Leeway has been made for children who are genuinely unable to provide for their parents financially. But there are many who can make adjustments to their lifestyles and accommodate parent care within their means. They are just not willing to. As such, we should consider enhancing the Maintenance of Parents Act to go after these children and adjudicate that they provide not only sustenance, in terms of money, but also a roof and emotional support. Filial piety and caring for our elders is well entrenched in the value system of Asian societies. By no way should we allow individuals in our midst to persist in abrogating this responsibility. We should encourage and regulate as necessary families to take responsibility and care for their aged parents and relatives. This is even more important as

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our society ages. This is a value that should be perpetuated, so that the young generation know that in the autumn and winter years of their lives, care is also readily at hand for them as well.

Still on the subject of families, the support for single-parent families is woefully inadequate. While we fear that proactively reaching out to support single parents may send the wrong signal to society, this group of people do need help, especially the single mothers struggling to look after young children. We are probably not totally sympathetic to whatever may have led them to their circumstances, but the problem at hand still needs solutions. I hope we could devote a portion of the Budget and reach out to them. Could we provide more support for single-parent families? For instance, give priority for childcare application. Provide subsidy for childcare services and Government-operated tuition and day care centres. In this instance, every Singaporean counts.

There are many helping hands in our community – VWOs, self-help organisations and charities. There is a great reliance on these non-profit organisations, as they play active roles in making a difference in our community. The Government, too, has led the way by increasing the tax benefits for donations to IPCs. However, these NGOs can benefit from further Government support. For example, the Government can help provide limited rent-free period for facilities. The Government can allocate or second some human resources at no charge to help kick-start an initiative or simply be the extra hands to get through the day-to-day operations. This will not only help reduce operating costs of these NGOs but also indirectly help the Government "supervise" and understand the activities of the organisations and enhance management. We really need not only send in the cavalry only when there are problems.

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Keeping people employed is the key tenet of the Jobs Credit Scheme. However, we know that we cannot avoid retrenchments as decreasing demand will impact some companies. There will be hardships and we need to expedite whatever help we can. The solution is, of course, training and new jobs. But in the short run, easing the cash flow for people affected adversely by job dislocations would be a great relief. Hence, I hope that there is no additional hardship imposed by agencies withholding services, for example, utilities. In such difficult financial times, every bit of help counts.

I am confident that Singapore will come out of this recession stronger. This is because Singaporeans would have rallied and supported each other through this crisis. We are benefitting from the hard work and prudence of prior generations in that we now have reserves that will tide us through. And dipping into it now, actually places the responsibility on us to work even harder so that we can contribute towards replenishing it. Let us work together, support each other and face this challenge confidently as a mature and gracious nation.

With that, Mdm Deputy Speaker, I support the Budget.

7.12 pm

Mr Hri Kumar Nair (Bishan-Toa Payoh): Mdm Deputy Speaker, it is late and I will be brief.

More than 2,000 years ago, a great Chinese philosopher said, "In calamity lies good fortune, and in good fortune lies calamity". It was a shrewd observation of human enterprise and fallibility. We are now witnessing the calamity lurking in the economic run which started some years back – a run driven in large part by greed, complacency and ignorance. These are

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mistakes people have made many times in the past, and are condemned to repeat again in the future.

Experts continue to debate about when this mess started, or who or what was responsible. But it does not change the fact that the world faces its most serious economic challenge in 60 years. This $20.5 billion package is a significant response. But, in reality, what it does, or hopes to do, is to help us tread water until the situation becomes clearer. No one knows for sure how long this situation will last, how bad it will be and how much more it will cost the Government to keep our heads above water. Many predict that the Government will have to inject more funds in the future. If anything, this Budget is a sobering testimony of how vulnerable we are and the difficult times we face.

So as time goes on, there will be increasing calls on the Government to do more for different groups, sectors or industries. We have seen examples of this around the world. In the United States, different industries have argued forcefully for a share of the bailout fund, including the pornographic industry! But our means are not unlimited. The solution cannot be to throw money at every problem but to pick the right battles and the right weapons to deploy. In that regard, I would like to touch on one issue which the Budget does not address and that is helping Singaporeans keep their homes.

First, let me say that I support the Government's focus on helping companies and businesses stay afloat by addressing their cash flow and credit issues and, thereby, save jobs. Few would disagree with these objectives. But make no mistake, we will all face a stressful time in the coming months to hold on to our jobs. No industry will be immune. It will also not matter how senior or experienced you are. I am often told by clients that

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this is a good time to be a lawyer, because when businesses fail, there is more legal work. That may have been true in previous recessions,

but this one is altogether a different creature. Over the last few weeks, the news coming out of the United States and United Kingdom, including major international law firms, have been the thousands of redundancies of lawyers, including senior lawyers and even partners of major law firms.

So the reality is that despite the measures being taken in Singapore and the billions of dollars other governments are injecting into their own systems, the world economy will be in decline for some time, businesses will go under and Singaporeans will lose jobs.

More will need help. The Government has increased financial assistance payments to PA recipients, CCCs’ Comcare fund, GST Credits and such. Every bit helps and is welcome. Incentivising companies to retrain and retool are also important. But with limited opportunities, it may take time for those who have lost their jobs to find employment. Stress levels will go up. Now more than ever, we need to ease the pressure off Singaporeans.

I, therefore, hope the Government will have plans to deal with other likely points of stress, and one of these will be the ability of Singaporeans to keep their homes.

To a large extent, we are fortunate that most Singaporeans live in HDB flats and I know from my MPS experience that HDB exercises considerable flexibility to help families that are unable to meet their loan payments. But over the last few years, because of regulations, many have had to finance their purchases through commercial banks. We also cannot ignore the large numbers who live in private properties. They may not have the option

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of downgrading because their loans exceed the value of their homes or they may not be able to get a loan to buy an alternative home. If they are retrenched and unable to service their mortgage, foreclosure is a serious risk. And a spate of foreclosures and forced sales will only depress the property markets, put more loans at risk and therefore more homes at risk.

There are a number of ways the Government can help. For example, easing the current restrictions on obtaining HDB loans, allow those with commercial bank loans to refinance with the HDB, impose a moratorium period on foreclosures, require banks to restructure default loans, including offering interest-only payments for a specified period of time.

Other countries have and are planning schemes – the HOPE for Homeowners programme in the US; the Homeowners Mortgage Support Scheme in the UK. These programmes are calibrated to meet the challenges in their own countries, but the objectives are largely the same.

I urge the Government to come up with and announce concrete plans as soon as possible so that they can be implemented quickly if needed, and Singaporeans will know sooner what the conditions are to qualify for help. It would be a major source of stress relief to know that the Government will help and it keep a roof over our heads until the storm passes.

I am not suggesting that the Government bails out everyone who defaults on a mortgage. There should of course be restrictions. For example, it should only be for those with one home; the inability to pay should be on account of the current economic downturn; it should not apply to those who still have the ability to downgrade, albeit at a loss.

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I also accept that we cannot ignore the "moral hazard" arguments, and that public funds should not be used to bail out bad decisions or risky behaviour. So the Government's role should not be just to hand-out money but to clearly articulate, its principles and philosophy and to ensure that the measures it implements is consistently these. One important message that must be convey is that this exercise is a two-way process. While it is the Government's duty to offer assistance where it is needed those who ask for or receive help must also take positive steps to get themselves back on their feet.

My concern is that some, despite losing their jobs, will not see the need to get back quickly into the market, preferring to wait for work which is similar or equivalent to the one they have lost. This time they could be in for a very long wait. I have encountered too many cases like these in my MPS, it is a real problem.

There are also those who are able to work, but are not inclined to because they are able to just get by on the assistance they receive. I understand from the CDCs that a large number of job seekers are classified as "not job-ready" or "near job-ready", meaning that, in some cases, they are not prepared to accept work that is offered them because of inconveniences like shift work. One CDC officer told me that one out of every 10 job seekers it helps, only one is "job-ready". The overwhelming majority are not. And some live in rental flats, which means they receive large subsidies. I understand that although they reject suitable job opportunities, they continue to enjoy these subsidies. So this connect does not make any sense.

We have to send a strong message that we cannot afford the luxury of being

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selective, not in these times. We need all hands to the pump to keep our economy afloat even if it means making or compromise or personal sacrifices in the short- or medium-term.

I, therefore, urge the Government to re-examine the way it gives assistance. It is important to incentivise people to find work with programmes like WIS. It is equally important to address those who ask for or get assistance but refuse to help themselves for no good reason.

Madam, there is one significant difference between our fiscal measures and those announced by some of the major developed nations. We are in a position to call on reserves, while they intend to fund programs by borrowing and make future generations pick up the tab.

As times get tougher there will be more pressure on the Government to spend. Many economic experts and lay persons alike will have different ideas on how much to spend, what to spend it on and where to get the money from. The Government may have to take tough unpopular measures. But being tough alone does not mean that you are right. That takes intelligence, experience and mature judgment.

Our reserves are there because of the hard work of earlier generations of Singaporeans, coupled with sound and prudent management and leadership. Now, more than ever we need the Government to exhibit those qualities. The problems we and other countries faced are exceeding volatile, exceeding complex. They will not be solved by spending some money here or some money there. We are in this for the long haul. The measures we implement have to be sound and steady. They also have to be flexible to meet new and unexpected challenges. This budget is evidence of that measured, mature approach. Hopefully it will put us on the

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path to find good fortune in these times of calamity.

I support it.