Committee of Supply − Head U (Prime Minister's Office)

Public Sector Transformation

Mr Patrick Tay Teck Guan (West Coast): Mr Chairman, I beg to move, "That the total sum to be allocated for Head U of the Estimates be reduced by $100."

The global operating environment is evolving rapidly. There are many growth opportunities in Asia, but economic competition is also intensifying and technological changes are reshaping competitive advantages across economies. Domestically, we are faced with an ageing local workforce which can pose constraints on our growth. But not if we can enable our people to learn, unlearn and re-learn to stay employable over a longer career span. Indeed, technology is a potential game changer that can allow us to overcome our resource constraints and embark on a new S curve in our growth trajectory. To stay competitive, we need to be able to innovate and leverage on technology, to do more with less, and to work smart.

The same applies to the Public Service. The Public Service must be able, agile and adaptable. Able to stay at the forefront of technological advancement, agile to be able to work with the private and people sector to build a competitive economy; and adaptable, as we embrace the journey towards being a Smart Nation. This means that the Public Service must be able to use technology to become more productive in its operations. This include using technology to transform the way it delivers services.

Citizens today are used to services like FoodPanda or Grab that crowdsource and bring different providers together to be accessible at the fingertips of customers in a high tech way. Many companies, such as those in the retail sector are also using AI and Data Analytics to analyse and in fact, anticipate customers' needs. How is the public sector using technology to similarly transform the way it functions from performing regulatory functions to enforcement, to delivering services to citizens. How can it bring related services together, to help citizens of businesses rather than have citizens or businesses go to different Government agencies to get what they need. How is the Public Service using technology to make service delivery more efficient and save time and effort on the part of citizens and businesses in transacting the public sector.

In fact, how is the Public Service using AI and Data Analytics to better anticipate citizens' needs and using robotics to complement its workforce. Of course, it is not and must not be just a tech push. Ultimately, Public Service delivery must be anchored on citizens' needs. Beyond delivering services efficiently and impartially, the Public Service must be able to put in place systems and processes to ensure that public officers do not just apply rules mechanically, but always put citizens at the heart of Public Service delivery.

They must be able to identify changes in the needs of citizens and be able to update policies, programmes and services in a timely manner. In short, the three "highs": not just high tech but also high touch, and not just high touch but also high trust. To transform Public Services, therefore require public officers to take on new skills so that they can perform their jobs differently and effectively. Where work can be automated, it is also important for public officers to be able to take on new skills to perform new jobs.

In short, SkillsFuture should apply equally to the Public Service. What is the progress of the Public Service in upgrading the digital skills of our public officers. Does the Public Service put in place reskilling programmes to help retrain officers to move from one job to another within the public sector as technology changes the way work is done? The Public Service should work closely with our public sector unions and Labour Movement to encourage all officers to constantly reskill and retool in order to keep themselves relevant and employable.

A good start will be forming dedicated training committees jointly with our public sector unions and union leaders. Beyond skills, the Public Service ethos lies at the heart of Public Service. While jobs and skills will change, the values of service, integrity and excellence should always remain. How is the Public Service developing its officers to ensure that they continue to remain grounded, that they are in touch rather than lose touch, the needs, aspirations, the concerns of citizens and businesses? How do we develop public officers who are able to serve your heart, be able to connect with citizens and co-create new solutions with both the people and private sectors?

Question proposed.

Disruption in the Public Service

Prof Fatimah Lateef (Marine Parade): Mr Chairman, Singapore has one of the most dynamic and high performance Public Service sector globally. With a spectrum of younger officers to the very senior and experienced ones, they serve Singaporeans through our Ministries, Civil Service, Statutory Boards and many other organisations.

With globalisation and a more connected world, our Public Service must be resourceful, creative and rapid thinking. They must remain nimble and keep abreast of the changes and disruption in the world of today and tomorrow. They must align with the state of the art, be adaptable and flexible in certain aspects of policy making and governance, but yet uphold the principles that Singapore stand for. The adoption of IT and other technology driven processes, communications as well as surveillance must be top notch and robust. Yet at the same time, maintenance of safety and security must be upheld. How is the Singapore Public Service assisting the officers in providing adequate training, building of capabilities, acquisition of the necessary software, technology adoption as well as nurturing and managing the mindsets of officers to ensure adaptation, alignment and buy-in? And this is also part of the learn, unlearn and relearn process.

Another very important tagline with the Public Service must be coordination. With the amount of disruptions and interventions that we face today, how will the Public Service ensure, safe coordination and integration of information, data and details across the service, whilst at the same time, maintaining confidentiality?

Citizen-centric Government Services

Mr Cedric Foo Chee Keng (Pioneer): Mr Chairman, my cut today is to discuss whether our Public Service can adopt a citizen-centric approach to delivering Government services. Delivering services to citizens is at the core of what Government agencies do.

[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]

Unfortunately, many of these services are based on processes and technologies that have been in place for many years and many of these were designed based on each agency’s individual needs and requirements. Therefore, such services were not designed with the objective of improving the ease and satisfaction when a citizen interacts or transacts with the Government.

To make an enquiry or to complete a transaction, citizens may have to physically visit different agencies, speak on the phone with multiple parties or browse websites of various Government agencies. Often times, citizens have to fill up many forms and repeat information that were previously provided albeit to a different Government department. Government agencies in turn face both declining citizen satisfaction and also incur higher costs from repeated touch points across agencies.

A citizen-centric Government should function as an integral unit adopting a whole-of-Government approach when delivering services to citizens. This calls for a coordinating unit that cuts across silos like, Ministries, Statutory Boards and departments, and sharing data freely at the backend across all agencies.

Today, with advances in technology and connectivity, Governments can meet these rising citizens expectations. Digital transformation with AI, machine-learning and data analytics, a Government could even predict and anticipates what a citizen needs. Queuing at counters and filling up forms could be a thing of the past. I would like to ask the Minister about how the Public Service is organising itself to ensure that services are delivered in a citizen-centric manner?

Public Service and Citizen Well-being

Ms Anthea Ong (Nominated Member): Trust as they say is built in drops and lost in buckets. The recent spate of service lapses has contributed to an increasing sense of uncertainty about the robustness of the Public Service.

Minister Heng in response to the Zaobao Commentary that alleged complacency, said "We would not flinch from taking a hard look at ourselves each time there is a failure and doing whatever is necessary to put things right."

I am heartened by Minister Heng's conviction and commitment. Indeed, a string of events of such significance happening so fast and furiously offers more than a glimpse of possible fault lines within the system, not just in isolated Ministries or with certain officers. Might having an open conversation on these fault lines restore trust? What specific steps are being taken by the Government to withdraw public confidence?

Additionally, how does the Public Service Division ensure a culture of accountability, transparency and empathy? With increased public scrutiny and expectations, how is the Civil Service College training public officers to understand subjective well-being beyond material well-being and how are they trained to formulate better policies that address citizens' well-being in ways that also increase public trust in public institutions?

Lastly, how can Public Service Cares, announced in Budget 2019 be more than just a volunteering programme for public officers but be embodied as an ethos?

Notwithstanding my clarifications, I want to take this opportunity to express my appreciation for every Public Service officer in the service who serves sincerely and wholeheartedly.

The Chairman: Mr Lee Yi Shyan. Not here. Ms Sylvia Lim.

1.30 pm

Appointments to Constitutional Office

Ms Sylvia Lim (Aljunied): Sir, there are certain public officers created under the Constitution with functions and duties to safeguard the public interest. These appointments are recommended by the Prime Minister and subject to the discretionary approval of the President.

One example is the Attorney-General. Under Article 35, the Attorney-General shall have power, exercisable at his discretion, to institute conduct or discontinue any proceedings for any offence.

Another example is the Auditor-General, who, under Article 148(F) is entrusted with the constitutional duty to audit and report on the accounts of all departments and offices of the Government, the Public Service Commission, the Legal Service Commission, the Supreme Court or Subordinate Courts and Parliament.

Sir, we are all familiar with the annual audit reports of the AGO. It often contains embarrassing findings and may uncover misconduct. The AGO reports are a key measure by the Government towards accountability and a prudent use of public funds.

Chairman, today, I would like to ask for clarification about the selection process and criteria used by the Prime Minister in selecting the Auditor-General.

The Constitution does not spell out any qualifying criteria for being the Auditor-General.

In recent history, our Auditor-Generals have been drawn from senior civil servants and there has been an appointment of a new Auditor-General this year. I do not know the current appointee personally and I have no reason to doubt her integrity. Indeed, I am prepared to assume that she will do her best to do her work honourably.

However, can the Prime Minister confirm that the current appointee is the spouse of a Senior Minister of State. And if this is so, did the Prime Minister consider how appointing the spouse of a Senior Minister of State would affect the public perception of the independence of the AGO?

Pensioners under MediShield Life

Mr Png Eng Huat (Hougang): Sir, I had spoken on the impact of MediShield Life on pensioners when the compulsory health insurance scheme was introduced and debated in this House in 2014 and 2015.

As I understood from some pensioners, they have continued to receive the same medical benefit as before as assured in this House although not under MediShield Life but under their original pension medical scheme. As it is, these pensioners are insured under MediShield Life in name only even though they do not need the coverage. I understand their MediShield Life premiums are paid for by the Government and transitional subsidies through MediSave top-ups.

The MediShield Life scheme is almost five years now. While pensioners are not worse off, in terms of their medical benefits, I wish to ask the Government if there is any study or survey done to ascertain the financial impact of the redundant MediShield Life coverage on pensioners. After factoring the various MediSave top-ups, did the subsidies help pensioners pay for their MediShield Life premiums as well as for their spouses' premium in full without the need to incur any out-of-pocket expenses? This is important because this Government has assured pensioners in this House that they would not be worse off under MediShield Life. And by that, it should also mean that they would not be financially burdened when they are put under the compulsory but never used medical scheme.

Next, Deputy Prime Minister Teo said that pensioners have one important benefit with MediShield Life that they did not have previously. He said that the spouse of a pensioner will cease to have medical benefits when the pensioner passes away. But under MediShield Life, the spouse will be covered by MediShield when the pensioner is no longer around.

Sir, this important benefit is assuring but it is also a benefit by default to begin with, since MediShield Life is made compulsory for all. Everyone has to pay for medical coverage by law, regardless of who you are. So, this important MediShield Life benefit, as mentioned by the Minister, only makes more sense for pensioners if the Government continues to pay the premium for their spouses when they are no longer around. Otherwise, the spouses will have to come under MediShield Life by law – they do not have a choice.

Sir, I would like to ask the Government to clarify if it would continue to pay the MediShield Life premiums for the spouse of pensioners as a benefit when the old medical coverage ceases with the passing of a pensioner.

Deepening Skills of Officers

Dr Teo Ho Pin (Bukit Panjang): Mr Chairman, Sir, in Prime Minister Lee's "A Tale of Two Cities" speech in London in 2014, he espoused Singapore's global city aspirations. To this end, we achieved fifth place in the Global Cities Outlook List last year. To sustain this, it is imperative that our world-class city is supported by a world-class Civil Service.

I would like to know the measures which the Government has undertaken to ensure and upgrade the service delivery skills of our Public Service officers.

Sir, just as the Government has called upon the private sector to increase productivity and the quality of their services, it should urge the public sector to take the initiative in setting an example for the rest of Singapore to follow.

In addition, I would like to suggest that the Government use the speed of delivery, and the quality of Public Services as metrics by which it assesses the progress of its push to build a world-class Civil Service.

However, it should be noted that the employment of a one-size-fits all approach in serving the public will not suffice. There must be greater introspection on the part of our civil service. Far too often, we focus too much on the numbers and neglect the human aspect of governance.

While automation has allowed for gains in productivity, navigating a pre-recorded voice menu, or filling up a form adhering to a strict format online, may not satisfy the needs of the public.

Sir, I believe that if the civil service provides more channels of access to Public Services, which take into consideration, the limitations of automated processes, it can serve Singaporeans better.

In the pursuit of headcount and productivity KPIs, the public sector has resorted to outsourcing, which has affected the quality of Public Services. Sir, outsourcing does not contribute to the development of human capital in the civil service and may result in public officers losing out on learning opportunities in providing quality services.

I would like to propose that we adopt a design-thinking approach to transform the delivery of Public Services. At the same time, we should refocus our efforts to train and deepen the skills of our Public Service officers.

Sir, our global city deserves a world-class civil service with the heart to serve the public.

Readiness of Public Officers

Mr Ang Hin Kee (Ang Mo Kio): Mr Chairman, Sir, the Government has been active in its efforts to innovate and improve the ease of transactions between the Government and the public.

As the pace of transformation quickens with technological disruptions, I would like to know how well public sector workers are being prepared to stay relevant. At the same time, how have jobs in the public sector been transformed and what other changes will be coming soon?

In the midst of such changes, I hope the Government can take the lead in ensuring that all public sector workers have access to relevant training, reskilling and redeployment opportunities.

Are the various Ministries and agencies aware of the challenges faced by those who may struggle in their training efforts, especially the older workers, who may find it more challenging to acquire new skill sets? Have we been able to re-deploy these workers across different departments, agencies or Ministries?

Recently, I met about 80 unionised staff from various statutory boards and they shared with me their experiences and the assistance given to help our public sector workers to be future ready and to be prepared for a transformed workplace.

Is PSD aware of how each agency is progressing in this journey and whether their respective efforts have been effective, especially to help the older ones adjust to the pace of training required for their new or enhanced job roles or even redeployed roles?

Last year, the Civil Service College announced that it is partnering the 12 Institutes of Higher Learning to support public sector transformation, as well as the transformation of learning within the sector. Public officers will have access to one digital learning platform. Would the Ministry have an update on the take-up rate of these courses on the new learning portal?

The Chairman: Mr Louis Ng, you have two cuts. Can you take both together?

Delinking Academics and Careers

Mr Louis Ng Kok Kwang (Nee Soon): Sir, last year, I spoke about the need to better recognise public servant contributions and skills beyond their formal academic qualifications.

Minister Ong shared that one initiative was to merge existing schemes for diploma and degree holders. Beyond the point of recruitment, an officer's progression is pegged to their on-the-job performance rather than their educational qualification. This has been done for MOE, the generic Management Executive Scheme in the Civil Service, and the Air Traffic Control Officer Scheme.

Minister Ong indicated that PSD will work with other public agencies to identify more areas where this can be implemented.

[Mr Speaker in the Chair]

Can the Minister provide an update on which other public agencies no longer have different salary scales and progression structures for diploma and degree holders? Can we also extend this to ITE graduates and not just diploma and degree holders?

Internal Quality Service Managers (QSMs) for Public Agencies

Sir, last year, I also spoke up last year about the need to provide platforms for public servants to provide feedback to upper management. Further, we need to close the feedback loop so that public servants know that their views are valued and can make a difference in strengthening the Public Service.

I suggested implementing internal Quality Service Managers within Ministries and Statutory Boards. Minister Ong responded that all public agencies do conduct staff engagement surveys periodically.

I still meet some public servants who say that they have provided feedback but have no idea if anyone is looking into it and have not received the reply with regard to the feedback that was provided.

Will the Minister consider adopting common principles and guidelines for the conduct of staff engagement surveys across the Public Service? Will the Minister also consider requiring public agencies to track the feedback received and actions taken in response to the feedback?

The Chairman: Minister Chan Chun Sing.

The Minister for Trade and Industry (Mr Chan Chun Sing): Mr Chairman, Sir, let me first thank all Members who have spoken up in support of the importance of maintaining an able and committed Public Service.

I agree with all of you. Our Public Service colleagues and I are determined to build a Public Service that is the pride of Singapore and Singaporeans. Our Public Service has been a pillar of strength for Singapore's survival and success. It has been so, and it will continue to be so.

Our operating environment is changing rapidly. Internally, new generations of Singaporeans are growing up in different circumstances, with different aspirations and expectations. Singaporeans expect services to be organised around them and delivered in an integrated and timely manner. They expect systems and organisations to fit their needs and not the other way round. Singaporeans also expect services and information at their fingertips and have much less patience to navigate complex bureaucracies.

Externally, our geo-political situation has become more uncertain and challenging. New security threats, including the cyber space, have emerged, and which threaten our national security. The contest of big powers and the domestic politics of regional players combined, can potentially squeeze us and shrink our economic and foreign policy options. But all is not gloom and doom.

Connectivity and technology allow us the opportunities to overcome our geographical and labour constraints. If used well, they can bring us to greater heights. Our workforce is also more educated and more skilled. We can better compete on quality rather than quantity.

To continue to build a vibrant and successful Singapore for the future, our Public Service must constantly challenge ourselves to come up with new ideas, adopt fresh approaches to working, organise ourselves differently and develop new skills.

Our Public Service generally delivers services efficiently, but this is not enough. Beyond working the whole-of-Government, our Public Service must achieve whole-of-Nation outcomes. Partnering Singaporeans and the private sector to deliver results must become second nature to our Public Service, and not as an afterthought. It is not just about delivering good service for the public, but also delivering better services with the public.

However, the Public Service and private sector must play our respective parts well in this new partnership to take Singapore to greater heights. Both must be matured to know the complexities of taking into account many sources of feedback, competing interests and differing aspirations. And if our individual suggestion is not accepted after working the process together, it does not mean that the ideas and inputs are not considered. Instead, it has formed part of the process to arrive at the final solution.

1.45 pm

I agree with Dr Teo Ho Pin on a design-thinking approach to the delivery of Public Services. The Public Service will progressively approach the design of many of our services around people and issues, rather than just expect people to adjust to our existing structures and ways of working.

The Moments of Life app for families, launched last June, is a small example of how the Public Service can come up with new ways of serving citizens better, by working with citizens and the private sector, as partners. The team wanted to make life easier for parents of newborn babies. They want to reduce the administrative hassle so that mums and dads can focus on welcoming baby and caring for baby. So, they started by interviewing many new parents to understand what needs to be done at the point of baby’s birth, what frustrates them and to get good ideas from parents how Public Services can be delivered better and faster services for them. The outcome was an app that allows parents to register their child’s birth, apply for Baby Bonus and child library membership, all at one go. They do not need to approach multiple agencies and produce the same physical documents for verification again and again. This app has been downloaded over 20,000 times in less than a year and I am happy to say that beyond public hospitals, we have begun offering this service at private hospitals, starting with Thomson Medical Centre earlier this year. Other private hospitals will progressively come on-board in the coming months.

The Public Service will expand this effort. It has since started more projects to redesign services around more key moments, including pregnancy, parenting a school-going child, National Service, and entering one's silver years. We will also design services with different segments of citizens in mind, especially those who may not find it easy to access our services through the usual channels. For instance, at IRAS, a priority registration queue is created for the elderly and those with mobility constraints during the tax filing season. They will be ushered to a sitting area and attended to quickly. HDB also sets up a priority queue during sales launches to assist the elderly, persons with disabilities and expectant mothers. At CPF Board’s service centres, there are retired citizens who serve as roving CPF Ambassadors to help post-55 CPF members.

The Public Service is working closely with various people and private sector organisations in this expanded effort to redesign services around citizens. We will share more about these developments in the coming months.

Within the Public Service, we also need to organise work differently across Ministries and agencies. Our current structures were optimised to solve previous problems. When problems evolved and goals changed, we must similarly be bold to evolve our structures and organisations to serve the objectives of tomorrow, as Member Mr Cedric Foo suggested. Climate change, cyber threats, unmanned systems are but some new challenges that require us to evolve new organisational structures to manage them.

Mr Cedric Foo also asked how we can continue to ensure that our services are citizen-centric. Indeed, the Public Service must re-organise itself to be citizen-centric, not agency-centric, in the way we work.

The Public Service Centre at Our Tampines Hub is one example. It started by co-locating different agencies together to serve citizens in one physical location. This year, the six agencies are coming together to cross train counter staff, and each staff will be able to provide a range of some 70 services across the six Government agencies. Citizens will be able to approach any counter for help, instead of having to wait for the "right" counter to become available.

The Social Service Office is yet another example of how we are bringing different services together to help citizens in need. For instance, the SSOs at Taman Jurong, Kreta Ayer, Yishun, Chua Chu Kang and Jalan Besar are piloting an effort for the same SSO officer who provides financial assistance to unemployed residents to also help them find jobs. The Silver Generation Office is also co-located with the SSOs in Taman Jurong and Geylang Serai, and the officers work closely to address the social and health needs of seniors in a more integrated manner.

As many have suggested, it is not easy for the Public Service to organise itself differently and operate differently to serve citizens better without new skills. Ms Anthea Ong, Dr Teo Ho Pin and Mr Ang Hin Kee are right that we have to help our public officers approach their work with new mindsets and give them new skills.

First, we need our Public Officers to think differently. They must be able to see beyond the current task that they are doing, and work with their colleagues in other Ministries or agencies to serve citizens better. This does not come from classroom training alone. The Public Service Division will expand the system of job postings to apply to a wider group of officers, so that our officers will gain wider perspectives, and grow a stronger instinct to work across agencies and with the private and people sectors.

Second, our Public Officers cannot just develop good policies but must be able to execute them well. To do this, Public Officers must be able to understand the needs of citizens and businesses better, know what are the constraints and challenges on the ground in implementing policies, and be able to see through the implementation details.

The Public Service Division and MCCY launched a new Engagement Immersion for Leaders programme last year. Leaders at Director-level and above were attached to different frontline work environments to serve citizens so that they can gain new insights on how policies and programmes can be implemented better on ground. This year, we will implement Public Service Cares. This is a new initiative to encourage all officers to volunteer and serve the community, and in the process, learn how to better communicate with citizens. It seeks to develop a stronger service ethos and a culture among public servants to walk and know the ground needs even better. Officers, senior ones including, are regularly rotated to join the PA, SSOs and REACH outreach efforts on the ground for them to get a first-hand feel of serving Singaporeans.

Third, we need our public officers to have good inter-personal linkages with the people and private sectors. In particular, the Public Service will work towards achieving greater porosity and two-way flow of talents between the public and the people and private sectors. One way is through sending officers to work attachments in the private sector. For example, we sent 10 officers for attachments to various companies such as DBS, Singtel and Grab, through the inaugural Service Delivery Talent Attachment Programme last year. They are bringing back new knowledge and insights to improve the delivery of Public Services. We will expand such opportunities to strengthen our Public Service and our links beyond the Public Service.

Fourth, public officers need to understand our region much better, and develop stronger ties with their peers in the region. To continue to expand the economic and international space for Singapore, our officers must be able to be plugged into various international networks, and understand the economic, political and social systems of countries in the region and in our key markets. Our Public Service leadership must be able to pick up a phone and call their peers to discuss issues and to engage in new collaboration. Therefore, we will continue to encourage both PSC scholars as well as mid-career officers, to be trained in different countries. We will also create many more opportunities for officials across different countries to come together in joint courses, forums and discussions, to share best practices and network together. Just as in the private sector, we should expect future Public Service leaders to have experiences working beyond the domestic context.

Finally, our Public Officers at all levels – leaders to officers – must be savvy in using technology, so that we can use technology to make Public Services better and make the Public Service more productive. The Public Service is aiming for 100% digital literacy. Every public officer – from leaders to counter staff – must know how to operate in a digital world and to thrive in it. The Civil Service College has launched LEARN, a mobile platform to enable officers to learn anytime, anywhere. In the last three months since the launch, over 34,000 accounts have been activated and almost 10,000 courses have been completed on this platform. SNDGO will elaborate more on other Smart Nation Initiatives subsequently.

I agree with several Members who spoke on the need to create a more diverse Public Service leadership. We need a Public Service leadership team that has different talents and is able to surface different perspectives. Going forward, when our Public Service selects future leadership teams, we will increasingly look for a combination of operations, communications, mobilisation and international exposure; beyond pure policy making skills. A more diverse Public Service is a more resilient Public Service for the uncertainties ahead.

We must systematically select, recruit and develop officers to achieve this diversity. Educational qualifications remain a valid proxy for certain skills and capabilities of candidates we recruit into the Public Service, and we will not disregard that. But the level of educational qualification alone is necessary but not sufficient. The Public Service will also have to look out for other skills, competencies and traits when we recruit new officers. Beyond intellect, we also want officers who have initiative and creative ideas, and those who have strong inter-personal skills and work well with others. In the areas of ICT, the Public Service will be selecting recruits based on the technical skills they possess, beyond educational qualifications.

Mr Louis Ng asked about single structures for ITE graduates, diploma and degree holders. Since 2015, the Public Service has been merging salary schemes, such that the ITE graduates, diploma and degree holders are recruited and progressed on the same structure. Where schemes require particular qualifications – for example, doctors, accountants and engineers – we will specify these. Today, almost all public agencies have single-structure schemes.

I have spoken at length about how the Public Service needs to change. But just as important are things that will not change: our values, our aspirations for Singapore and the high standards for ourselves.

Our values of excellence mean that we will not rest on our laurels. Our Public Service continues to work towards high aspirations for Singapore. This means always thinking ahead and acting to expand opportunities for Singapore or pre-empting problems in future. For instance, for Singapore to remain competitive, we must be a hub for innovation. So MOE, ESG and EDB came together to develop the Global Innovation Alliance (GIA) initiative, to connect Singapore to major innovation ecosystems around the world. The GIA expands on existing overseas internship programmes offered by our local institutes of higher education that place students on overseas internships in start-ups or enterprising and innovative companies. The Public Service is leveraging these internships for scholarship holders and in-service officers as well, for them to broaden their training and exposure. The GIA will create more opportunities for students, entrepreneurs and business owners to gain experience, connect and collaborate with their overseas counterparts.

Similarly, we have proactively pushed for more Free Trade Agreements (FTAs) to help our businesses expand overseas and lower prices of imported goods and services for domestic consumers. Such FTAs have to be planned way ahead, as they entail long negotiations with foreign counterparts. The recently concluded EU-Singapore Free Trade Agreement (EUSFTA) was planned almost a decade ago and was achieved through close coordination among many agencies including MTI, AGC, MinLaw, IPOS, MOM and MEWR. They worked together and sustained the momentum of the negotiations through time across different teams of officers. We are now planning ahead for our FTAs to embrace digital trade in the new economy.

We also think long term when it comes to developing our city. Almost 10 years ago, the Economic Strategies Committee mooted the idea of consolidating our container port activities at Tuas in the long term. This will allow our port to achieve greater economies of scale while freeing up the prime Southern Waterfront for redevelopment into a new waterfront city that will be even more exciting than Marina Bay. Today, the proposed new Tuas Terminal is already taking shape, and will be progressively completed by the 2040s. The Tuas Terminal, which will be twice the size of Ang Mo Kio town, is expected to be the largest container terminal in the world. Our Tuas Terminal will help Singapore strengthen our position in the maritime sector.

This is not the only long term multi-decade projects we have planned for. We are pursuing other ambitious projects that span many years – in fact decades – whether it is developing Singapore's deepest cable tunnel system for electricity transmission or planning for Changi East which includes the new Terminal 5, or planning for the Jurong Innovation District or Punggol Digital District. These projects help to create an even more vibrant Singapore and a better home for future generations of Singaporeans. Our Public Service cannot just try to play defensive to uphold the existing system. We expect more from our Public Service – constantly thinking of breaking new ground to take the country forward amidst the stiff competition.

Even though we plan ahead, sometimes things will not go as planned. When things do go wrong, the Public Service will work hard to fix the mistakes and seek to do better. Head (Civil Service) recently reminded all senior public leaders to use the recent incidents and lapses as an important learning moment to see how we can do better.

2.00 pm

I support his call and appreciate that the Public Service is taking its mission very seriously. However, integrity means that we need to take responsibility and be accountable at every level for what went wrong. If we do not address the mistake head on at the respective levels, but instead choose to indiscriminately sack staff and leaders every time something went wrong, then we will have a weaker system over time. We will also discourage the Public Service from trying new things because the surest way not to make a mistake, is not to do anything novel. That will be the biggest mistake and disservice to our nation.

The values of integrity and excellence apply equally to the appointment processes. Ms Sylvia Lim asked for clarification on the selection process and criteria used by the Prime Minister in identifying persons to fill key constitutional appointments. The process to appoint individuals to any constitutional appointments is set out in the Constitution. The Constitution also sets out the requirements of candidates for certain roles, as well as the office holders who should be advised or to be consulted on the appointment. In general, the key considerations when identifying candidates include their ability to do the job well, their qualifications and experience, track record, integrity and sense of Public Service.

Ms Lim asked if we are aware that Ms Goh Soon Poh, the new Auditor-General, is the wife of Senior Minister of State Mr Heng Chee How. Yes, we are aware. The Auditor-General is appointed by the President in accordance with the advice of the Prime Minister. The candidate was proposed to the President's concurrence after consulting the Chairman of the Public Service Commission. The President will consult the Council of Presidential Advisors which provides an additional level of scrutiny and advice. Ms Goh Soon Poh has more than 30 years of public sector experience and worked in a range of government Ministries. She has served with distinction, with utmost integrity and commitment to excellence. She has helmed Deputy Secretary roles in two of the largest Ministries, MOE and MHA, and also spent time in two central Ministries, MOF and PSD, and will be familiar with governance matters related to finance, procurement and human resources. Ms Goh also has public sector experience that will be useful for the Auditor-General role.

The role of the Auditor-General is to audit and report to the President and the Parliament on the proper accounting and the use of public resources to enhance public accountability. AGO's audit observations are conveyed to senior public officers, namely, Permanent Secretaries of Ministries who are Accounting Officers for their respective Ministries and, hence, responsible for managing that. These senior public officers are responsible for addressing the findings and reporting back to the AGO. The audit process generally does not involve political office holders. There is no conflict of interest generally between AGO and the Ministries it audits. Where there is a potential conflict of interest, there are specific processes to manage these, just as in any professional organisation.

Our Public Service cares for our people. Mr Louis Ng asked about staff engagement. PSD currently works with Public Sector agencies to administer a common staff engagement survey across public agencies. The survey enables agency leaders to better understand the areas that the agency is doing well in and what it can do better to help officers. Leaders are expected to respond to the feedback and take appropriate action.

Mr Png Eng Huat asked about MediShield Life for pensioners. Like all Singapore Citizens and Permanent Residents, Government pensioners have been covered under MediShield Life from 1 November 2015. MediShield Life provides additional help on top of the retirement medical benefits that they enjoy as Government pensioners. This is very useful especially if someone is unfortunate enough to get a severe illness with a huge medical bill. For example, one pensioner on the Comprehensive Co-payment Scheme (CCS) had pneumonia with a bill size of $29,000. She had 85% of the bill covered by her post-retirement medical benefits. MediShield Life helped to pay for the remaining 15%. She did not have to pay anything out of pocket. Another pensioner on the CCS had lymphoma with a bill size of about $14,000. He only had to pay out of pocket expenses of $300, after taking into account his post-retirement medical benefits and MediShield Life.

Mr Chairman, Sir, our public officers joined our Public Service because of a calling. And that is to build a better home, a better nation and a better future for all Singaporeans. Our future is in the hands of this generation of leaders – from the public, private and the people sectors. Like it was almost 54 years ago, we must all be pioneers once more and always. If we put our hearts, minds and hands together as one Singapore team, I am confident that we can prevail against the challenges and Singapore will remain vibrant and successful. Our Public Service will lead and support fellow Singaporeans in achieving this.

Sustainable Population Strategies

Dr Lim Wee Kiak (Sembawang): Mr Chairman, despite a comprehensive strategy to encourage Singaporeans to marry and have children, our birth rates remain low as our population continues to age. In fact, this is a global trend among developed and developing economies around the world, and certainly, it will take time to find sustainable solutions to alleviate the situation.

What is our current concept – that a woman should have a career and also be a good mother; that a man should have a career and also be a good father. We give them good support with maternity leave, paternity leave, childcare leave, Baby Bonus and a whole suit of incentives. But things are not quite working out. Why? Difficulty in juggling office work and care for children – from tending to them when they are sick, to coaching him as they grow up. Have we looked into a more radical or new system whereby women with children may take three to six years off the workforce to bring up their children? This will also foster strong family ties and our children a strong foundation too. We can make laws where these women and men would not be discriminated for the years out of the job market.

In return, we can allow more qualified older people in our workforce to stay on to fill the vacant slots temporarily left behind by them.

As we continue to implement baby-friendly policies as well as family-friendly policies, we must continue to identify and manage other problems stemming from an ageing population. We already have in place many strategies. We are encouraging senior citizens to stay healthy and active in the workforce through a lot of initiatives. Perhaps we can incentivise our senior citizens to look after their grandchildren. Similar to the proposed care-giver allowance for seniors, can we look into a grandchildren care-giver allowance for seniors looking after their grandchildren.

We face greater challenges with our limited pool of human resources to maintain a vibrant economy. How has the Government directed its population strategies to support an economy that will continue to grow? We rank 13 among countries best at attracting, developing and retaining talent in 2018, according to a report by Business Insider. If we cannot sustain our population by Singaporeans' natural births, then the only way to top up our population is through immigration. We will then face the issue on integration and challenges in forging a national identity and cohesion. What is the upper limit we set for immigration so as not to affect our social compact ?

As a young nation, we continue to grapple with seeking our national identity. We do not have a shared history of struggles that binds us together. Our Pioneer Generation and Merdeka Generation can share their experience and be a value resource to inspire the next. Perhaps, the Government can share its plans to foster a strong sense of national identity among Singaporeans, and yet maintain a healthy population profile.

The Chairman: Mr Gan Thiam Poh, take the two cuts together.

Population Strategy

Mr Gan Thiam Poh (Ang Mo Kio): A rapidly ageing population and a persistently low Total Fertility Rate (TFR), which is among the lowest in the world, pose serious challenges for our future. There are severe implications for our social fabric, national heritage, economy and defence, just to name a few. We must make it a matter of priority and urgency to review our population strategies.

We need a core group of young Singaporeans to ensure that our country remains cohesive, dynamic and vibrant. What measures does the Government have to invigorate our population strategies and keep a balanced mix of locals and immigrants? What is the Ministry’s view on the effect of new attitudes to family structures and their impact on families and procreation? In addition, how would we prevent the financial burden of caring for our ageing population from falling on our future generations?

Total Fertility Rate

In Minister Heng’s Budget speech, he urged us to draw on our Singaporean DNA to continue to progress. Unfortunately, with our low Total Fertility Rate (TFR) at 1.16, one of the lowest rates in the world, the future of our DNA is at risk.

Modern Singapore had started as an immigrant country and will continue to accept and integrate immigrants in the future. However, it is important that we have a core group of Singaporeans born and bred here.

The Government had implemented various measures and incentives to support marriage and procreation. We need an urgent review to understand why they have not been effective. Whether these are inadequate or require enhancements, we must address the roots of the problems. Will the Ministry share its plans to reverse our TFR?

New Citizens – Appointment and Integration

Prof Fatimah Lateef (Marine Parade): Immigration laws vary from country to country and change according to the needs, factors affecting population as well as growth and development of the nation.

There is really no one-rule-fits-all policy. Singapore is challenged even further due to our sheer small size and more so, due to our rapidly ageing populace. Our guidelines and policies must acknowledge our diversity, uphold unity and be realistic and practical. New citizens can have a positive contribution towards nation building and social integration.

The guidelines for recruiting new citizens must be robust and dynamic and at the same time meet our objectives. How are we reviewing our immigration policies?

Are we able to implement a more structured community involvement of potential new citizens candidates, perhaps even with the provision of inputs from senior and experienced community leaders. This is with a view to having them immersed and better integrated with the local community and activities. The community leaders can act as assenters and provide valuable inputs in this respect.

Challenges Faced by Young Adults

Mr Vikram Nair (Sembawang): Chairman, in 2015, we had a bumper year in terms of baby in Singapore and rise in our TFR. However, since then, Singapore's TFR seems to have dropped to an all-time low of 1.16 in 2018. This is despite the fact the Government has put in place a wide variety of incentives for people to marry and have children.

According to Singapore's population data bureau, we have a large number of people of childbearing age and coming to childbearing age, yet more are choosing not to get married and have children. Have any studies been done on why this is so?

I understand from previous COS debates that many young people have a desire to settle down and get married. Yet, it appears they are not doing so. What are the challenges faced, particularly by young adults in marriage and parenthood? Is there anything that may be done to address these challenges?

Family – Reaffirming our Values

Mr Alex Yam (Marsiling-Yew Tee): Mr Chairman, as a nation, we strive to be the best. But sometimes we have to take a cold hard look at ourselves to take stock.

We are a city in a garden, but are we truly green? We are fast becoming a Smart Nation, but can this nation also continue to grow a heart? We have a highly productive workforce, but what are we truly producing? We can be number one on many fronts, but if we allow our most basic of building blocks to start to crumble and weaken how long more can we keep it up?

Chairman, as Singapore continues to progress economically, it also seems that like the rest of the developed world we are beginning to face what is an increasingly post-familist future – one where that basic building block, the family, is becoming more side-lined and threatened.

Singlehood, childlessness, and instability of the institution of the family are growing in many countries around the world – Singapore has not been spared. And while not in the extreme some anti-natalist propaganda has also recently appeared on our shores.

In 2017, our TFR was a dismal 1.16. It was a seven-year low and the second lowest on record. This is despite the billions that we have committed to promoting marriage and parenthood over the years.

Surveys tell us that over 80% of young Singaporeans intend to get married and have children, but that intention seems not to be reflected in the actual numbers getting married and also having children. Perhaps it is opportune for us to ask ourselves again, what is it that we are not doing enough of?

What I feel is missing from the narrative is addressing the slow unfortunate change in culture and its threat to the family.

Today, we live in a stressful world. We can always admit that – one whose pace is breakneck. We all want to work hard, produce better results and aim for the next rung up in our careers, that is not inherently wrong but it has unfortunately become a key part of our new culture today.

This leaves young Singaporeans breathless. This work ethic subconsciously makes us stay longer in the office and often even when there is no real reason to do so. Great for the companies, but at what cost to society? We end up having no time to date, no time to go out, no time for ourselves, no time to get married, no time to have children.

We cannot be indifferent to this problem as a society. Our very fabric as a nation depends of the family nucleus. Families play a vital role in determining the welfare of children, in meeting our deepest needs for meaning and solidarity with one another, and in shaping the economic and political fortunes of nations. When the family is not flourishing and no longer serves as the central organising feature of society, the nation begins to lose its basic unit.

2.15 pm

So, it is not just about the money, the more money we throw at the problem the more monetised and mercantile this most natural of building blocks becomes, reinforcing the growing stereotype that families are commodities. What we need today is to reinforce a culture that is centred around the family. From our very childhood, we should imbue in our young the importance of family – encouraging them to have quality time with their own families. For parents of this generation to reset the pace and reset the tempo of our culture.

Part of it is our auto-reverential culture caused by technology. Many of us can attest to the fact that when we are at home, we may be with each other but we are really not with one another, we are with your phones. We pretend to engage with one another, but actually we ignore one another. We think we speak to many people, but actually, we are just talking to ourselves.

On the work front, this happens as well. Technology meant to make work easier, literally ties us to our desk, even if we are away from the office. So, employers must also see more and more the importance that family plays in having a happy workforce. A purely transactional relationship only engenders stress, where parents fear even taking time off for family. We need to do more to encourage a change in work culture and not just through incentives like the Enhanced Work-Life Grant. More can be done at the cultural level.

For all the generosity of our M&P Package, there must also be a whole society issues that needs to be addressed – cost-of-living and aspirations. How can we ensure that as a society continue to value the family and will be willing to help families achieve their aspirations? These take more than just policy or programmes or grants, but a whole society. A relook of our culture.

We must do what we can to avoid what some called, the "systematic humiliation, apathy-inducing neglect, and soul-killing cruelty" against the role of families in our society.

Enhancing Family-friendly Culture

Mr Saktiandi Supaat (Bishan-Toa Payoh): Couples these days have many valid concerns when planning to embark on parenthood. In truth, some personal sacrifices are necessary, but the broader society encompassing community groups, employers and families can do more to compromise and embrace the family-friendly Singapore. There are couples of perfectly happy juggling four children. These are the ones with good support from the community, their extended families and their workplace. They probably made some personal sacrifices to prioritise their family as well. Others are stressed out just with one.

Today's grandparents are not like those of the 1960s and 1970s. Today's grandparents plan their retirement and go on frequent holidays and I do not fault them. They deserve the break. So, how do we balance between the needs of the grandparents and their young children who are setting up families? What is being done to help instill a family-friendly culture in Singapore which is supportive of marriage and parenthood? We need a mindset shift in our approach to address the issues in this environment.

Many a time, my wife and I, who are both working and have three kids will face emergency calls from the school or kids falling ill, among other things, requiring one or both of us to attend to a child. One example of how we can further improve family culture environment is to see if we can offer a comprehensive back-up care in corporates or private and public agencies with national software matching platform to help employees find last minute childcare or eldercare when the usual arrangements breakdown. In the UK, there are such companies doing it, such as My FamilyCare. But more can be done to create this private set-ups and help these types of companies grow to create a better more diverse support network in a family-friendly environment.

Family-friendly Workplace

Ms Rahayu Mahzam (Jurong): Someone shared a story with me once. A man came home and saw his helper at the playground with his children. They were having so much fun and he was jealous. It had been a long day at work and at that moment, he felt like he was working so hard so that he could pay his domestic helper to have the life that he wants. It was a fleeting thought, but it reflected on how much he wished he could spend more time with his children.

We all have aspirations and we want a better life for our families. We also have much to contribute to the economy and a meaningful job gives us a sense of purpose and drive. However, many of us also yearn for a work-life balance so we can spend time with our families. Employers play an important role in supporting Singaporeans in managing their work-life balance, including providing flexible work arrangements or supporting working fathers in playing more active roles at home.

How will the Government encourage employers to play their part? I note there are schemes such as the Enhanced Work-Life Grant. Have the measures been effective and what more could be done to encourage employers to foster a more family-friendly workplace culture?

Supporting Working Parents

Mr Desmond Choo (Tampines): Our young Singaporeans are sandwiched in caring for young children and elderly parents. The Government has been providing support to such families. Can the Minister update on further progress and what more will the Ministry be doing?

Demographic trends necessitate changes to how young families are supported at the workplaces. One, with smaller family sizes, our younger Singaporeans need to care for both their children and parents. It is common to easily spend more than a day away from work to bring an older parent for medical check-up. The same applies for an ill child.

Thus, Family Care Leave is important to our workers, especially those whose children are older than seven years old. The fungibility in using the leave provides more flexibility for workers. Can the Government consider having the Public Service to take the lead in providing family care leave for all public servants as a start?

Second, we need to help our young Singaporean parents better manage the cost of infant care and full-day childcare. Couples are spending on average $1,495 on full-day infant-care monthly. Those who qualify for $600 subsidy still need to fork out about $900 a month for infant care. This can be quite taxing. Similarly, Singapore citizens are eligible for a basic subsidy of up to $300 for childcare per month. This was implemented in 2008. Since 2001, the childcare operators have raised their median fees by 22%.

Lastly, flexible work arrangements are crucial to support families. While many companies today offer FWAs, it has not been socialised into a societal norm like the Nordic countries. We need to take decisive action to make FWA pervasive. Can we introduce the right to FWA? This makes starting FWA conversations easier for workers. We can start with the larger companies. This can provide real impetus in socialising FWA and better support our families, especially our women workers.

The Chairman: Mr Louis Ng, you can take your two cuts together.

Extending Childcare Leave

Mr Louis Ng Kok Kwang: Sir, young couples are rightly concerned about whether they have the means to bring up a child. It is now not just "money not enough", but also "time and leave not enough". The current six days of childcare leave and unpaid infant care leave is insufficient. It does not make sense that the amount of leave does not increase as well when you have more kids. Parents with four kids clearly need more leave than parents with one child. With Hand Foot and Mouth Disease so common now, six days of childcare leave is just not enough. I experienced this last year when all three of my kids had HFMD consecutively. My four-year-old had to be out of school for two weeks.

I am not even sure if parents who have two or more kids will have sufficient annual leave once their childcare leave has been used. Can we consider giving childcare leave on a per child basis? For parents with two or more kids, can Minister also consider allowing parents to use their sick leave entitlements also when their child is sick? Parents can provide their child's MC as proof when using this leave. Next cut.

Extending Parental Leave

Sir, it has been almost two years since I delivered my Adjournment Motion calling for more parental leave for parents of multiples or preterm babies. In the blink of an eye, my twins, Katie and Poppy, are now two years old. From fighting for their lives, they are now fighting for their toys. The burps have been replaced by farts. Their crying has been replaced by smiles and the beautiful sound of laughter. This parenthood journey has been priceless and I am so happy we have three healthy, happy girls.

The adjournment motion speech brought back many painful memories of Katie and Poppy being born premature and almost losing their lives. It is an experience that I hope no parent has to go through and I hope that through my sharing, our policies will change and they are changing. It was announced last year that we will introduce a Tripartite Standard to encourage employers to provide four weeks of unpaid leave for parents of multiples or preterm babies.

Can Minister provide an update on how many employers are providing this leave? I understand MOE is providing this. Can Minister confirm if the entire Public Service is now providing this unpaid leave?

Mr Speaker: Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 2.45 pm.

Sitting accordingly suspended

at 2.25 pm until 2.45 pm.

Sitting resumed at 2.45 pm

[Mr Speaker in the Chair]

Debate in Committee of Supply resumed.

[Mr Speaker in the Chair]

Head U (cont) –

The Minister for Manpower and Second Minister for Home Affairs (Mrs Josephine Teo): Mr Chairman, I thank the Members who have spoken. Their views and suggestions are well appreciated. In my response, I will provide an update of our population strategies and measures to support Marriage and Parenthood.

Dr Lim Wee Kiak asked how we will build a sustainable and vibrant Singapore for all ages in light of our demographic challenges. We are doing so through three broad strategies.

Our first and foremost strategy in managing the population is to ensure that there is always a new generation of Singaporeans to carry our legacy forward. We want Singapore to be a Great Place for Families, where young couples sense the strong support for marriage and parenthood from society and the state.

How are we doing on this front? In addressing this question, it is useful to take a step back. When we consider developments over longer time periods, there are some reasons to be optimistic:

The average number of citizen births in the last five years is higher than the previous five-year periods. From 2014 to 2018, the average was 33,000 citizen births annually. From 2009 to 2013, the average was lower at 31,400 citizen births annually. If we go back an even earlier period, between 2004 and 2008, the annual average was 32,000 births. So, for the most recent five-year period, we are talking about 33,000 citizen births on average annually. The five years before that – 31,400; and the five years before that – 32,000. So, it is clearly higher.

On top of this, many Singaporeans are living overseas so we welcomed about 1,500 citizen babies born overseas annually, over the past five years. This average is also higher than that of the previous five-year periods. From 2009 to 2013, there was an average of about 1,400 overseas citizen births annually. And between 2004 and 2008, this average was 1,000 overseas citizen births.

Recent marriage numbers have also remained high. In fact, the average number of marriages in the past five years was significantly higher than the past decade.

Juxtaposed against these developments is another set of forces at play. Most young Singaporeans still want to marry and have children, which Mr Vikram Nair would be glad to know. From our 2016 Marriage and Parenthood Survey, more than eight in 10 single millennials indicated they intended to marry, and more than nine in 10 married couples said they wanted two or more children. However, they are also taking longer to find the right partner and starting families later. The surge in the number of young Singaporeans entering the prime child-bearing age may be followed by a surge in births, but at a later stage. We believe this explains recent drops in Singapore’s Total Fertility Rate (TFR), to 1.16 in 2017 and 1.14 last year. But, given the positive marriage trends, I remain hopeful that there could be an uptick in TFR when the children of the baby boomers start having babies themselves.

For family to remain the bedrock of society, which Mr Alex Yam spoke passionately about, we must actively lean against the wind to make marriage and parenthood achievable, enjoyable and celebrated.

There are still many things in Singapore that are favourable to child-raising. Last year, Singapore was ranked first in the World Bank’s inaugural Human Capital Index. And what that means is that as far as the World Bank is concerned, for a child born in any of the 157 countries that they surveyed, Singapore would be where their human capital potential is most likely to be optimised. In the same year, an international non-governmental organisation “Save The Children” also ranked Singapore as the best country for children to grow up in.

The Government has also progressively enhanced our Marriage and Parenthood Package. Mr Gan Thiam Poh and Mr Desmond Choo had asked about the progress and adequacy of our current measures.

Mr Chairman, Sir, may I have your permission to distribute a table showing the key marriage and parenthood benefits that a young couple can receive today, compared to five years ago.

The Chairman: Yes, please. [A handout was distributed to hon Members.]

Mrs Josephine Teo: Thank you. Mr Chairman, firstly, a couple can now own their first home sooner. Flats with shorter waiting times – about two to three years, compared to three to four years for typical BTO flats – are now available to them. The first batch was launched in November 2018. Those who may have urgent housing needs or location preferences, can choose to buy a resale flat and receive up to $120,000 in housing grants, which is $40,000 more than what a couple would have received in 2014. First-timers buying a new flat in non-mature estates can service their housing loans using less than a quarter of their combined monthly incomes, often with little or no cash because they draw on their CPF savings instead.

Second, parents now benefit from greater support for child-raising costs. When their first child is born, they receive up to $18,000 through the MediSave Grant for Newborns, Baby Bonus Cash Gift, and the Child Development Account (CDA). This is $3,000 more than the maximum a couple would get in 2014. They will also receive a CDA First Step of $3,000 deposited by the Government, without having to save into the CDA first, which helps to lighten their load at the start of their parenthood journey.

Third, in their child’s pre-school years, the couple would find it easier to enrol their child in an affordable and good quality preschool. ECDA has increased the number of full-day pre-school places nationwide by over 50% since 2014. There are 170,000 full-day pre-school places today. By 2023, this will increase to about 200,000, and two-thirds of pre-schoolers will be enrolled in Government-supported preschools.

Fourth, throughout their parenthood journey and as their family commitments increase, the couple now has stronger support to manage their work and family responsibilities today. They enjoy enhanced parental leave provisions, which enable fathers to play a more active role. With up to eight weeks of leave, a father now has access to double the amount of leave in his child’s first year, compared to just five years ago. The take-up of Paternity Leave has been encouraging, increasing from 37% in 2014 to 53% for recent cohorts.

We have also increased paid childcare leave over the years. Today, each parent with children below age seven has six days of childcare leave per year, and two days of childcare leave per year while their children are still in Primary school.

Mr Louis Ng gave suggestions on further increasing leave for parents to care for their children, while Mr Desmond Choo suggested legislating flexible work arrangements. We will keep reviewing the scope to expand leave provisions but, as Mr Douglas Foo reminded us, we should be careful about mandating businesses to do more as it would impact business viability and put jobs at risk. Given the recent enhancements, I hope Members will agree to give companies some time to adjust before further moves.

In the meantime, promotional efforts should continue. That is why we introduced a Tripartite Standard last year to encourage employers to provide unpaid leave when their employees have unexpected care needs, including multiple or preterm births, or family members or children who are hospitalised. I must thank Mr Ng for giving us the idea. About 450 employers with over 224,000 staff combined, have adopted this Standard. This includes the Public Service with over 70 agencies. We will continue to encourage adoption of the Standard.

I should also add that parents would be more likely to benefit from flexible work arrangements today. We introduced the Tripartite Standard on Flexible Work Arrangements in October 2017, and also launched the enhanced Work-Life Grant last July, to better support the adoption of flexible work arrangements. The grant has received more than 340 applications in just five months. More workplaces are now supportive of flexible work arrangements. Around 53% of employers now offer at least one formal flexible work arrangement. This could be flexi-time, flexi-place, flexi-load, and this is up from 47% in 2014. This is, in fact, a significant turning point I have been waiting for. The tide is shifting and I am hopeful flexible work arrangements will become much more commonplace henceforth.

Nevertheless, I am aware that young Singaporeans still have concerns, which Mr Desmond Choo also raised.

Parents have raised concerns about financial costs, such as pre-school fees. ECDA is reviewing the pre-school subsidy framework, to make quality preschool more affordable for parents. The Ministry for Social and Family Development (MSF) will provide an update on this during its Committee of Supply debate.

Parents may also feel the need to keep up with other parents’ intensive efforts in education, for example. MOE, too, is concerned. To help our students discover more joy and develop stronger intrinsic motivation to learn, MOE is reducing the frequency and stakes of school-based assessments. Students’ class and level positions will not be reflected in report books to minimise unhealthy comparisons among students based on their academic performance.

MSF has also started the Baby Bonus Parenting Resources Portal to boost confidence in parenting through sharing of tips by experts on raising happy and healthy children.

Next, as Ms Rahayu Mahzam pointed out, the workplace environment is critical. Senior Parliamentary Secretary Low Yen Ling will share more at MOM's Committee of Supply debate.

3.00 pm

But overall, I am encouraged that more companies are taking progressive steps to support their employees' care-giving needs. One such example is M.Tech, an SME which specialises in cyber security and network performance solutions. I visited M.Tech this week. As many of their employees are young parents who may also be caring for elders in the family, M.Tech decided to offer flexible work arrangements to staff who need them. This was made possible by IT tools which enable staff to work remotely and still be effective. I met Petrine, a product manager who was able to telecommute when her children were down with chickenpox, and when her mother was hospitalised. M. Tech was initially concerned about the investment needed to enable mobile working but later found that the benefits well worth it. For example, it is better able to attract and retain employees who are productive and committed to their work, such as Petrine who has been with M.Tech for 11 years.

Beyond workplace flexibility, there are deeper issues of workplace culture. Some Singaporeans indeed work very long hours, leaving little time for dating or family life. Having fewer hours to rest and recharge not only affects employees' health and well-being, but also the time that they have with their loved ones.

As the nature of work evolves, there is value for organisations to adopt new ways of working, that achieve good business outcomes while giving staff enough downtime to recharge.

M. Tech employees, for example, may get off work early, whether to attend courses or to pick up their children from child care. But they would reconnect later in the evening to complete time-sensitive tasks, such as confirming sales orders taken in other time zones, and they do not mind doing it at all because it does not take very long.

And so we hope many more employers will make the effort to promote more sustainable work practices, for the sake of their employees and for their own business viability in the longer run.

Finally, with the trend of later marriages and births, the Government will be reviewing our assistance to couples who face difficulties conceiving and who wish to undergo assisted reproduction technology treatments.

Members including Mr Ong Teng Koon, Mr Saktiandi Supaat and Mr Vikram Nair have given suggestions on further measures to strengthen support for marriage and parenthood.

I agree we can do more. However, porting over practices in other countries wholesale may not yield the desired results. South Korea, for example, poured much resources to emulate the Nordic countries. But its TFR has not improved and fell to 0.98 last year. I think for South Korea, this is the lowest they have on record.

Our efforts over the last five years are significant, even if they may take more time to bear fruit. We also need deeper changes of mindsets to reduce stresses in parenting.

Ultimately, marriage and parenthood are personal decisions, shaped by the values that each person holds dear, but they are also influenced in no small part by social norms, our families, employers and the wider society. There are strong cultural and societal factors at play. Like Mr Saktiandi Supaat and Mr Alex Yam have pointed out, no single stakeholder can fully address these on its own.

In this regard, I am encouraged to see how various community stakeholders have stepped up.

The Families for Life Council, for example, offers a suite of education programmes at workplaces and community touch points. It also organises events to encourage Singaporeans to make family life a priority.

In Boon Lay Constituency, a Parents' Support Group was formed after a group of young parents met at the People’s Association's Embracing PArenthood community celebrations. The group meets quarterly to share tips about child development, infant nutrition, and other parenting pointers.

Such efforts, big or small, go a long way in making parenthood enjoyable and celebrated. We welcome more of them.

In the coming months, NPTD will embark on a consultation process to listen to the needs and concerns of Singaporeans around forming families, and how Government and the community can better support their aspirations. I also appreciate the Members' suggestions and there are many good examples. Mr Saktiandi Supaat suggested Back-Up care. So, I would like to invite all stakeholders to join us in co-creating and shaping policies. We will give more details about the consultation process soon.

Mr Chairman, I have taken some time to reaffirm our commitment to supporting marriage and parenthood. Our second strategy in managing the population is to maintain a careful balance in immigrant flows. At its heart, the aim of our immigration policy is to sustain a stable citizen population that keeps our economy vibrant and our society cohesive.

Similar to the past few years, we granted around 22,600 Singapore Citizenships in 2018, of which 1,600 were to children born overseas to Singaporean parents. With 32,700 Permanent Residencies granted last year, the PR population remains stable at around 520,000.

As Dr Lim Wee Kiak and Mr Gan Thiam Poh mentioned, it is important that citizens share a strong sense of identity and belonging to Singapore. We also agree with Associate Professor Fatimah Lateef that it matters how we select new citizens.

To this end, we conduct regular reviews of our immigration framework. We remain highly selective in granting permanent residencies and citizenships. In all cases, we consider applicants' age, family profile, economic contributions, as well as their ability to integrate, among other factors. We look for markers of rootedness and identification with Singapore's way of life, values and norms.

Family ties and length of stay provide a strong indication of this. As a result, one in four adults granted citizenship in recent years have family ties with Singaporeans; three in five have lived in Singapore for at least 10 years; and majority of our new citizens each year are in their younger and prime working ages. We will continue to maintain a careful balance in managing immigration.

Mr Chairman, our third and equally important strategy in building a sustainable population is to enable Singaporeans to age with grace and purpose.

The United Nations has described population ageing as one of the defining features of our time. In Asia, Japan was the first country to age rapidly. Singapore, together with South Korea, Hong Kong and Taiwan, is not far behind. Today, our life expectancy is the third highest in the world. Fortunately, more of these years are enjoyed in good health than before.

Far from being resigned to this development, our approach is to help Singaporeans enjoy productive longevity, in many varied ways. It starts with being able to stay active, having opportunity to work if seniors wish to, and strengthening support for retirement adequacy.

Since the 1980s, we have been putting in place measures to prepare for an ageing society. The Central Provident Fund (CPF) has been enhanced over the years. Besides home ownership, it now helps Singaporeans save for healthcare needs and receive payouts for life in their retirement.

Beyond CPF Life, the Government also introduced the Community Health Assist Scheme (CHAS), Silver Support, MediShield Life and now, CareShield Life, to help families take better care of their seniors. For older Singaporeans who may have less in MediSave, we have provided the Pioneer and Merdeka Generation Packages with a focus on keeping quality healthcare affordable to seniors. This is in addition to regular top-ups to boost retirement savings.

As the recent Parliamentary motion on Ageing with Purpose affirmed, we should continue to improve our policies to support the changing profile of seniors. For example, more seniors wish to work longer. Our employment rate of those aged 55 to 64 is already among the highest in the world, and still going up. In my capacity as Manpower Minister, I set up a Tripartite Workgroup on Older Workers. Later in the debate, I will provide an update on the Workgroup's deliberations that will address Mr Gan Thiam Poh's concerns about supporting senior employment.

Within our communities, we are also updating the way we care for seniors, for example through innovative, award-winning solutions like Kampung Admiralty. My colleagues at the Ministry of Health will share more during their Committee of Supply debate. With your permission, Mr Chairman, I would like to conclude in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, we will continue to strengthen our efforts to make Singapore a Great Place for Families.

In the last five years, trends in marriages and citizen births are encouraging. There were on average 33,000 citizen births each year between 2014 and 2018. In the earlier five-year periods, the annual average was lower; 31,400 from 2009 to 2013 and 32,000 from 2004 to 2008. Marriages are also on the rise.

We have significantly strengthened support for marriage and parenthood in recent years, for example, in the areas of housing, childraising costs, preschool, and managing their work and family responsibilities. Compared to even five years ago, young parents are much better supported.

While the Government strengthens its support, we also need the whole of society to make Singapore a Great Place for Families. For example, employers and co-workers can help by accommodating parents’ needs for flexible work arrangements. Community organisations can also celebrate parenthood and build networks of support among peers.

We will embark on a consultation process in the coming months to listen to the needs and concerns of Singaporeans over forming families. We hope that various stakeholders will continue giving feedback and join us in making Singapore a truly Great Place for Families.

The Chairman: Mr Darryl David.

Digital Nation Benefits for Singaporeans

Mr Darryl David (Ang Mo Kio): Mr Chairman, the Smart Nation initiative was launched late 2014 with the aim of applying digital and smart solutions to provide better services to our residents and businesses.

Since its inception, the Smart Nation Initiative has gone on to embark on numerous pilot projects and trials, some of which like contactless payment for public transport and TeleHealth are starting to bear fruit. That said, some of these initiatives seem to have been started as standalone programmes, with Government agencies and Statutory Boards launching their own initiatives.

Can the Prime Minister's Office elaborate more on the the larger national narrative guiding the Smart Nation Initiative and how it has delivered tangible benefits to citizens and businesses?

Also, are there intentions to embark on a public-private partnership to commercialise current initiatives so that more benefits can be delivered to end users by private sector players?

The Chairman: Ms Tin Pei Ling.

People at the Heart of Smart Nation

Ms Tin Pei Ling (MacPherson): People must be at the heart of our Smart Nation efforts. Solution should deal with only modern problems to make urban living easier for our people. These could include transportation, energy efficiency, public safety, public health, citizen engagement, privacy and cyber security. A Smart Nation needs to succeed. We need to solicit citizens' and businesses' buy-in. Benefits have to be real for them to believe in it. Hence designing solutions to be citizen or user-centric is imperative.

In Estonia, the use of X-Road by its government offered much benefit to its citizens making life easier at every level and at gendering support for and trust towards its smart government. It is estimated that X-Road saves more than 820 years of working time for the state and its citizens annually. Secure digital ID also enables Estonians to complete transactions efficiently and securely. When a child is born, for example, the hospital enters the information in its database that is linked to the National Population Register. The information is shared automatically with various government systems that then ensure the child receives social benefit such as healthcare and education.

Given our aspirations and experiences of other countries, how would the Government ensure that services are citizen-centric? While it is the Government's plan to make its services more data-driven and anticipatory, what more can citizens and businesses expect to benefit from our Smart Nation efforts?

3.15 pm

Personal Data with Public Agencies

Ms Sylvia Lim: Digital Defence is now our sixth pillar of Total Defence and all, including the Government, play a role in this.

On 12 February this year, the Minister for Communications and Information told the House that GovTech is overall in charge of the security and safeguards systems for data and that GovTech is the agency that does many of the reviews, ensures the Government agencies are in compliance with the Instruction Manuals and other provisions.

I would like to ask whether GovTech specifically oversees that citizens' personal data stored within public agencies is safeguarded from misuse, hacking or leak. For instance, does GovTech audit the data and privacy protection practices of public agencies? In view of the risks and breaches that had occurred, would the Government look into publishing an annual report on the cybersecurity readiness of public agencies to give some reassurance to citizens and to encourage the achievement of high standards?

Next, while there are regulations to punish public officers who do not comply with confidentiality obligations, what is the position of the innocent persons whose data has been compromised? For instance, it was recently reported that a station inspector had illegally accessed the Police's computer system to screen the telephone records of a man he suspected of having an affair with his wife. In such a case, are there guidelines about whether the affected person should be told and within a certain time-frame? Such information is crucial for victims to protect themselves and to seek recourse in a timely manner.

Finally, during the recent debate on the HIV registry leak, the Government told the House that a person whose data had been leaked, had the recourse of suing MOH. Besides commencing an expensive lawsuit against the Government, how else can an aggrieved person get compensation?

Smart Nation Programmes

Mr Cedric Foo Chee Keng: Mr Chairman, my cut is on our Smart Nation vision and programmes. Our Smart Nation vision is a good one. A digital Government will allow for an integrated and seamless Government, resulting in better policies and operations. A digital economy will increase productivity for businesses, will create new jobs and opportunities right into the future. A digital society will allow our people to enjoy greater conveniences, increased opportunities and a higher quality of life.

Since the inception of the Smart Nation initiative in late 2014, good progress has been made in applying digital and smart solutions to provide better services for our citizens and businesses.

Several good programmes that have been introduced should be applauded. The Moments of Life initiative is a good example – a one-stop application to help Singaporeans navigate the journey of welcoming a newborn and raise a young child. New parents can register the birth of their newborn and apply for Baby Bonus incentives at one go, through a single application. For pre-schoolers, parents can search for pre-schools, retrieve and view medical data of their child on the Moments of Life application. For many parents entering the exciting and busy journey of parenthood, the conveniences of a one-stop application versus a need to navigate various agencies and websites provide a real and tangible benefit.

Another good programme is the launch of MyInfo Business, which allows SME to interact and access 129 Government e-services and 143 private sector e-services.

However, these initiatives are but a small step towards our Smart Nation goals. The technology curve has moved very rapidly and what was not possible is now possible.

I would like to ask the Minister to provide an update on the programmes that we are implementing over the next few years so as to allow us to achieve our Smart Nation vision.

Preparing for the Future

Chairman, my next cut is on preparing for the future. Despite lacking in traditional factors of production like land, labour and capital, Singapore was able to beat the odds in our transformation from a third world country to a first world country today. Our success can be attributed to strong and honest leadership, a tolerant multi-racial society and a culture of self-reliance and mutual support.

Today, we face a fresh set of challenges – an ageing society, sharper infrastructure and manpower constraints, just to name a few.

Amidst a global digital revolution, Singapore has to accelerate the transformation of our society and economy in order to remain competitive, or risk being left behind. There are many benefits to a digital economy. Higher productivity, better quality of life, better jobs, reduced business operating costs and the list goes on. Because of the significant benefits to citizens and businesses, other cities and nations around the world are also embarking on similar digitalisation efforts. Let me give just one example.

In October 2018, Emirates launched trials of the world's first biometric pathways at Dubai International airport. This allows the use of biometric technology through Smart immigration tunnels, with passengers walking through immigration without a need to stop at a counter. Through adoption of these technologies, UAE has plans to gradually phase out airport immigration officers by 2020.

As other countries embark on similar digitalisation efforts, what is the Government doing on the Smart Nation front to ensure that we remain relevant and globally competitive?

The Chairman: Mr Teo Ser Luck. You can take your two cuts together.

Businesses in Smart Nation

Partnership on Smart Nation

Mr Teo Ser Luck (Pasir Ris-Punggol): We have shared our vision to become a Smart Nation and there have been announcements and programmes implemented. And through Smart Nation, there are many opportunities we can help to liven all the start-ups and also local businesses. There is a high expectation for a Smart Nation project to bring to businesses efficiency, effectiveness as well as business opportunities, especially in the tech business community.

However, instead of a growing interest thus far, there seems a lesser anticipation and excitement now about the projects and many have seen that the opportunities that they anticipated were not coming through. So, may I know whether the Ministry or PMO could update on what is the impact on the businesses so far in terms of opportunities as well as in doing business within the Smart Nation project.

There are many projects that the private sector has embarked on especially the tech businesses. We should be able to tap on these start-ups or companies that develop these technologies, and especially when they have developed advanced state-of-the-art developments in AI, machine learning or automation. GovTech does not need to set up another group or another committee to redevelop or reinvent the wheel. It could partner these companies to go into a trial and test process. And many of these technologies have been tested by the market. Do consider them before setting up another major project within GovTech or within the Government. Work with these companies out there. They can offer good help and better help.

Could PMO update the business community what are the initiatives available through the Smart Nation project and what are the opportunities that will be available in future.

The Chairman: Mr Ong Teng Koon. Not here. Mr Vikram Nair.

Smart Nation

Mr Vikram Nair: Mr Chairman, Singapore Government is leading the way in making Singapore a Smart Nation. GovTech is ensuring that more and more Government services are available online and are easy to use online. This is commendable.

However, a Smart Nation may be led by a smart Government, but it will also need a "smart" private sector to take full advantage of the progress.

In this respect, how is the Government involving the private sector and the tech community in this Smart Nation drive? What new initiatives can we expect in the coming year?

Smart Nation and Digital Inclusion

Ms Rahayu Mahzam (Jurong): The Smart Nation effort is a commendable one. It is necessary to keep up with the changing global developments and ensure that our citizens can benefit from updated technology, so that we can all enjoy a better quality of life. Smart technology can also be used to make society more inclusive. For example, LTA is now trialing a new mobile app that makes it easier for people with special needs to travel.

Still, some have expressed concern that we may be changing too fast and that there are vulnerable groups in our community who may not be able to keep up with the change. Some are concerned that the elderly may not be digitally savvy and will have difficulties adjusting to the changes. Others are concerned that low-income families may have limited access to new devices or even the Internet. We need to ensure that these groups are not left out and can, in fact, benefit from the Smart Nation initiatives.

Could the Ministry give an update on the efforts taken so far and elaborate on how the Smart Nation can benefit the vulnerable groups mentioned above?

The Chairman: Minister Vivian.

The Minister for Foreign Affairs (Dr Vivian Balakrishnan): Mr Chairman, on behalf of the prime geek in Government, Prime Minister Lee Hsien Loong.

We have made significant strides in our use of the latest digital technologies, first, to generate new jobs; second, re-skill our workers for these new jobs; third, to restructure our economy in order to sharpen our competitiveness; fourth, to improve the quality of life on a daily basis; and, fifth, of course, to enhance the integrated delivery of Government services on a citizen-centric level.

I want to thank Mr Cedric Foo, Ms Tin Pei Ling, Mr Vikram Nair who have quite rightly emphasised that what matters is not technology for its own sake, but people – what we do with the technology and how it benefits us in our daily lives.

With your permission, Mr Chairman, may I display an infographic to show our Smart Nation projects and their milestones, and also request that the Clerks to distribute the printout.

The Chairman: Please do so. [A handout was distributed to hon Members.]

Dr Vivian Balakrishnan: Thank you. First, we have focused on increasing convenience in our daily lives. The MyInfo project allows you to open a bank account or apply for credit cards online, and get approval almost instantly through carefully secured shared data. SingPass Mobile is an app that allows citizens to log in to Government services using biometric authentication instead of passwords. I am glad to report that 200,000 people have used the system since we launched it four months ago. PayNow has seen 2.3 million registrations. And, in fact, a lesser known fact that those of you who have linked their NRIC to PayNow, can receive their SG Bonus, can receive your Edusave awards and even more pertinent politically, can even receive your CPF lump sum payments quickly, almost instantly, instead of waiting for cheques to arrive in the mail.

The Moments of Life app helps parents manage their child's early years. So far, 2,000 births have been electronically registered through a single auto-filled form. I forgot to check whether Ms Tin Pei Ling used the app. Not yet. For the next one, then. This is part of the service delivery approach that Minister Chan Chun Sing described just now. After my appeal and Mrs Josephine's appeal, Ms Tin should have the next one. Together, we believe that these improvements will allow all of us to save time, reduce transaction costs and increase efficiency.

Second, Smart Nation has also tried to facilitate a safer living environment. We are trialing a new Personal Alert Button for the elderly to call for help especially after a fall when they may be immobilised. This was brought home to me even more starkly recently when Minister Khaw described when he had his fall and he fractured his arm – the intense agony that immobilised him. And as you would have seen in his Facebook post yesterday, this is not unique to him. Many elderly people have faced emergencies at home alone, immobilised and they need to call for help. So, this is one example in trying to make a difference at a direct personal level.

Another example, drowning detection systems have helped our lifeguards keep community swimming pools safer. NEA has installed 50,000 Smart Gravitraps to help monitor and to help destroy breeding sites for dengue-spreading Aedes mosquitoes.

The MyResponder app has helped to save the lives of at least 13 heart attack victims so far. But more important than the apps and the technology, is the fact that this is an example where technology has enabled us to express our mutual care for one another.

Third, our initiatives have helped made it easier to do business. We are continuing to provide more choice and better interoperability in e-payments. Last year, the SNDGG, the MAS and IMDA together launched the common SGQR standard, and NETS has rolled out 50,000 Unified Point-of-Sales terminals across the country. These initiatives have helped merchants to offer greater convenience for consumers and reduced cash usage. In Smart Nation, we must always be data driven so I asked and I have been informed that e-payment values have increased to more than three times that of ATM cash withdrawals. So, we are moving in the right direction.

3.30 pm

NETS was also appointed to unify the e-payment landscape at hawker centres and coffee shops. This will allow the consolidation of different e-payment methods and more importantly, faster settlement for hawkers. So, they receive their money the next day.

More than 80,000 businesses have registered for PayNow Corporate since its launch last August. Like individuals, businesses can now send and receive payments instantly. The PayNow initiative has contributed to cheque usage falling to 20% of inter-bank transfer volumes. Again, making progress in the right direction.

MyInfo Business allows up to 220,000 SMEs to open bank accounts and apply for loans easily and quickly. IRAS has piloted direct submission of GST returns from businesses’ accounting software, enabled by National Digital Identity (APIs), and will look to extend this to all GST-registered businesses. The Networked Trade Platform has reduced application time for trade permits, it used to take several days, now it takes one hour. This reduces the burden of administrative processes, and enables our entrepreneurs to focus on growing their businesses instead of navigating red tape.

Mr Teo Ser Luck and Mr Vikram Nair asked about our upcoming initiatives. We will continue to make our digital services more accessible, more integrated. We will enhance the SingPass Mobile so that it can be used for secure logins to selected private sector applications as well. Security will of course remain our central pre-occupation. Senior Minister of State Janil will address Ms Sylvia Lim's question on security, because without security at the core of our Smart Nation, many of these initiatives will be at risk.

We will expand the slew of services under Moments of Life to help citizens deal with all the significant turning points in our life, birth, school, marriage, even including end-of-life matters. And we will empower seniors to lead more active lives. MOH will share more of this in their session. We will continue to enhance convenience in daily life.

Parking.SG is already used by over 60% of car owners, and we want to make it even easier not just to pay for parking but to find their parking lots. This year, GovTech, URA and MSO will be trialing the installation of smart sensors so that we can provide real-time availability of kerbside parking lots to people who are looking for a lot.

HDB is looking to create smarter towns so that we can optimise land, infrastructure and utilities, and allow people to engage and form communities using these digital tools. This will make our heartlands more liveable, more efficient, more sustainable and safe.

Businesses can look forward to more digital tools to increase connectivity both within Singapore and beyond our borders. IMDA’s new national e-invoicing standard will speed up corporate invoicing and payments. And those of you in business will know, the velocity of cash flow is crucial in business.

We are streamlining Government transactions. The Minister for Finance mentioned a pilot portal to help up to 18,000 food service companies cut red tape in their licence applications. Any one who has tried to open a restaurant would have known it takes many applications. We will try to streamline all these in the process, remove duplicate applications, reduce red tape and to give approvals faster. We hope to expand this effort to other industries in future.

Our goal is to integrate all these services to help firms unlock new ways of connecting with consumers and other businesses and transacting with Government. The SNDGG is not doing this on our own. We are not a Ministry but we view ourselves as a shared platform for the whole of Government. The Digital Government Blueprint calls for Government to be digital to the core by 2023. Many agencies have therefore implemented or are in the process of implementing new digital initiatives in order for us to achieve this.

Let me give you another example. MOH launched Healthy 365, which has kept 1.7 million users active over the past four years. Many people have told me that they enjoy the National Steps Challenge and I am especially intrigued to see so many non-techy people wearing activity trackers. It is not just because the HPB is giving it away free, but the combination of community and activity and of course the usual Singapore pursuit of health points and discounts helps. But the point is, we have used technology to make a difference and to improve health on a daily basis.

MCCY recently launched a central volunteer management system to deepen volunteer engagement and recruitment. Six public agencies now use volunteer.sg to manage over 20,000 active volunteers. MCCY will share more during their session.

I have described a whole slew of existing and upcoming benefits to citizens from the Smart Nation. But I also agree with Ms Tin Pei Ling that we must continue to our citizen-centric focus and delivering services in an integrated way. In the coming years, with the data generated from our expanding digital infrastructure, we can expect the services to become more personalised, more tailored made to the individual needs of citizens and to be more responsive. When people shop online, when people engage online, especially with private sector, expectations are raised and the expect Government to also to be able to respond in such a personalised, responsive manner.

One way which we are going to do this is also to make better use of Artificial Intelligence (AI), which we believe, will greatly improve our lives and our economy. Let me spend some time then, to share we you what we are doing in this AI space. AI, and in particular deep machine learning, has revolutionised the scene in recent years. AI has already begun to make an impact in our daily lives. If you just stop to think about it, the voice assistants in your handphone, the language translations, the GPS optimisation, the credit card fraud alerts, all these have benefited from advances in AI just within the last two years.

I have mentioned just now that the Government has been using AI for drowning detection in our swimming pools, we have also used it for SkillsFuture’s fraud detection, and for local speech recognition. In fact, AI speech recognition has been used to augment the transcription of COS speeches this year. So, it should make it more accurate. And even if you point out mistakes, you will help us improve the system.

Mr Cedric Foo asked how Smart Nation will keep us relevant. AI, data analytics, robotics and automation are crucial ingredients for us to restructure of our economy. We need to achieve a quantum leap in productivity by creating new engines of growth. The Government needs to upgrade our technology stack so that we can be more responsive to citizens’ needs and to the demands of an increasingly competitive marketplace. We believe that Singapore has a good foundation for AI, through a multi-agency effort from SNDGG, MCI and our economic agencies.

The National Research Foundation (NRF) set up AI Singapore to bring all relevant research institutions and AI start-ups together. GovTech will set up a centre of excellence in data science and AI to help other agencies deploy these AI solutions and technologies. Finally, MCI is developing guidelines to encourage responsible and safe use of AI, such as the Model AI Governance Framework which Minister Iswaran announced recently.

We need to double down on these efforts. This year, an inter-agency taskforce will study how Singapore will develop AI as a strategic capability and become a trusted global hub for test-bedding, for deploying and scaling up AI solutions especially in the context of a highly urbanised city like ours. For citizens, this means new and better services, whether from the Government or private sector. The possibilities are promising: McKinsey has identified 160 use cases where AI can be used for social good. For example, AI can “recommend content to students based on past successes and engagement with the material” and “detect student distress early”. Basically, what it means is, we talk about streams and subject banding, all that are still relevant. But to really to be able to customise that educational journey for that individual, sometimes maybe even to gamify it, will provide a more helpful educational experience for our students.

We also foresee AI optimising urban scenarios. For instance, optimising our traffic light networks and to predictively maintain public infrastructure. In other words, make sure things do not break down or to identify potential problems, before they lead to a breakdown. We foresee AI applications in finance, in logistics and cybersecurity. And in fact, there are already many local companies in these and other domains. This is to answer Mr Teo Ser Luck, we hope to co-create with these companies the development of these new AI solutions.

To scale up AI development, we are looking to democratise access to data and AI tools so that everyone can learn and experiment with AI solutions. We want to support SMEs to adopt AI and to work with Government on relevant use cases. We will expand the Government and private sector collaboration. One example AI Singapore's 100 Experiments programme, for companies to solve their own real-world business problems, together with AI experts. And this programme will also bring AI apprentices to co-train with industry. So, in other words, we are linking businesses to main experts and people who want to learn and enter this industry.

Lastly, we will build up local know-how in AI, and we will equip everyone to benefit from AI capabilities. This means teaching computational thinking and data literacy in schools, and training adults in data science and AI skills. Before that sounds too scary, I want to say that we do not expect everyone to become an AI expert. But think of AI in the future, the same way which you think of word processing today. It is a general purpose technology and we want our workforce to be able to use AI tools to participate meaningfully in the future AI-driven economy to secure good jobs, improve productivity and raise wages.

So, let me conclude by restating the obvious. Smart Nation is ultimately about improving lives and livelihoods. We have done reasonably well so far. Singapore won the City Award at the 2018 World Smart City Awards in Barcelona, which testifies to the concrete benefits that Smart Nation brings to Singaporeans and the recognition which we have from the rest of the world. Still, we cannot be complacent because the pace of technological change is so unrelentingly quick. The Government will continue supporting our local firms in this mercurial environment through initiatives such as Scale-Up SG, the Enterprise Financing Scheme and SMEs Go Digital, which you heard about from Minister Heng in the Budget speech. And I share Ms Rahayu Mahzam’s concerns on digital readiness and inclusion and Senior Minister of State Janil will elaborate on the special inclusion initiatives that we will embark on to make sure no citizen is left behind.

But these challenges and all these disruptions also bring many opportunities for Singapore, especially a city state with hardworking, disciplined, highly educated people. We have disproportionate opportunities in such a world. We call on citizens and businesses to journey with us, to fully exploit our comparative advantage, take advantage of the resources and the infrastructure that we have put in place, and to co-create solutions for the future. If we do this, Mr Chairman, we can all reap the benefits of our Smart Nation for years and decades to come.

3.45 pm

The Chairman: Dr Puthucheary.

The Senior Minister of State for Communications and Information and Transport (Dr Janil Puthucheary): Mr Chairman, if I may follow on from Minister Vivian's rallying cry for all of us to become involved in Singapore's Smart Nation ambition. The Government cannot make this happen alone, cannot make this happen through force of will, by wishing it by making speeches. We need the ideas and capabilities of our people and our businesses. As a nation, everyone needs to be part of our Smart Nation journey.

We do not have a monopoly on the best ideas and talent. We will need to create opportunities for citizens, community partners and businesses to contribute meaningfully to Smart Nation.

Members, Mr Teo Ser Luck and Mr Vikram Nair, have asked about partnerships between Government, businesses and the tech community. One of the ways we are facilitating greater participation from businesses, is through building something we call CODEX which stands for Core Operations, Development Environment and Exchange, which is a shared digital backbone, part of which is the Singapore Government Tech Stack. This can be used to build applications and digital services. CODEX will be modular, inter-operable, and will, in future, allow an interface to parties outside the Government.

As part of CODEX, we are working with public agencies to shift their ICT systems towards the commercial cloud. So, Government, systems, public agency systems on the commercial cloud and this will allow us to benefit from leading edge private sector capabilities to build products and services better for our citizens.

We are also actively involving the tech community. One example is a mobile application called “Kill The Queue”, which allows shoppers to save time by scanning and paying for items through their mobile phones, as they shop. The app was conceptualised by a team of GovTech engineers. They then partnered students from Temasek Polytechnic to build a prototype, as part of the students’ final year project. This partnership also allows students to improve their skills through solving real-world challenges. So, partnerships through businesses by looking at how Government build platforms and products can be inter-operable and can create opportunities for businesses to interface with ideas that we can seed out into the students and the academic community so that they can run with and try to develop real-world solutions.

Members may have heard of “Developers Conferences” or DevCons. These are usually organised by tech companies, such as Apple, Google or Facebook, and they are done to engage engineers and the tech business communities to leverage upon the product or the platform owned by that company. So, we might have an Apple on IOS Developers Conference, for example, or Facebook Developers Conference, where the time is given for software developers and businesses to think how they can utilise that product better for their own business purposes and how their feedback then improves the product of the person running the Developers Conference.

To facilitate greater collaboration with the community, and to look ahead to how the private sector can build products that layer onto or interface with our Smart Nation platforms, we organised our first ever Developers Conference, GovTech STACK DevCon 2018. I have yet to comprehensively verify this so, a bit of a caveat that I have not received evidence to the contrary, but I believe so far, this is the first and only Government-driven Developer's Conference. And this event attracted over 1,200 attendees from the private sector, Government, public sector and tech community.

Separately, we also support hackathons. Members may have heard about hackathons. So, what is the difference between a Developers Conference and a hackathon. A Developers Conference, the person organising it has a product, has a solution, has a platform and wants to ask the community how to do things better using this product, how to make the product better for you. In a hackathon, the participants are generating ideas to solve the problems that they are concerned about and the Government also supports this. This provides platforms for the tech community to come together, learn from each other, ideate and build products. We support the hackathons such as the Startup Weekend Singapore Mega 2018, and the “Smart City Challenge”, which was jointly organised by DBS, GovTech and SUTD.

We are extending our outreach efforts beyond the tech community because we need a Smart Nation which benefits all citizens, from all walks of life.

We are actively engaging citizens on Smart Nation initiatives through a project called Smart Nation Co-Creating with our People Everywhere (SCOPE). SCOPE is a platform for us to bring out early prototypes of our digital products or ideas to citizens. So, one example that Minister Vivian quoted was the alert button. Very earlier on in its design phase and its conceptualisation phase, just as soon as we have something physical, we encourage participants to play with these products, to try them out, to test them and their feedback then is used to improve our product development process. This is something very common in the private sector but now we are starting to use these techniques in developing our public sector's Smart Nation solutions.

We have had a series of engagements over four months, at Senior Activity Centres, Grassroots events and NTUC Events reaching in this way to over 3,500 citizens. We have collected many useful insights and suggestions.

One example of these insights is how receptive seniors are to active ageing services within the Moments of Life application. On our preliminary findings, the majority of seniors aged 60 and above have smartphones, and are open to the idea of using digital services. They also gave feedback about how to design the application in an easy-to-use manner, and how to provide support and coaching to seniors so that they can use these apps and benefit from these services. All of this will help us to develop and deliver a better product, better services and better experience.

We will continue to scale up these efforts. To enable more Singaporeans, from different walks of life to contribute to Smart Nation, we will be signing an MOU with NTUC to further engage workers and their families, to help them make the most of new jobs and new opportunities.

I agree with Madam Rahayu Mahzam, that even as we move ahead in building Smart Nation, we need to ensure that this Smart Nation includes and benefits all Singaporeans.

We are committed to Digital Inclusion and Digital Readiness, so that everyone is able to access the opportunities that technology creates. I will speak more about these broader Digital Readiness efforts in the MCI COS but SNDGG will play our part, by ensuring that Government’s digital services are designed to benefit all.

As part of these efforts by Government to improve the usability of our websites, we have developed a set of Digital Service Standards (DSS) for Government agencies.

For example, HDB’s website MyNiceHome is a portal that provides first-time homeowners with useful information about buying and renovating a flat and this has been completely redesigned. The site was made mobile responsive, different forms of search and assistance had been added, and the content had made accessible to people with disabilities. And as a result, the site traffic has increased significantly.

Ms Sylvia Lim has asked about data protection within the public sector. The Government should, indeed, be held to high standards for the protection of the data it collects. In SNDGG, our role is not just about delivering good products, but also in setting and maintaining high standards of data protection for the public sector.

The Government has progressively enhanced security measures to safeguard sensitive data. We introduced the Internet Surfing Separation policy in 2016 and the disabling of USB ports from being accessed by unauthorised devices in 2017. We have also increased the number and types of internal IT audits, to check on agencies’ data access and data protection measures. As a matter of practice, agencies will use identifiable data only when necessary such as for providing personalised services.

We will continuously review our standards and measures, and will incorporate lessons learnt and industry best practices. For example, we will progressively automating user account management to ensure tight and robust access control.

Where citizens suspect that their data have been misused or hacked, they can lodge a complaint with the agency and if there is any suspicion of a crime, they can make a report to the Police. They can contact GovTech directly. We have guidelines for the handling of data and protocols that should be in place. Complaints will be thoroughly investigated and appropriate action taken. On top of that, there are other issues and consequences as a result of that and we would like to discuss the ways we can help and support them.

To build our Smart Nation platforms and products, to engage the tech community and businesses, to develop and enforce rigorous standards across the public sector, and to create jobs and opportunities for Singaporeans we will need to build up a strong core of engineering skills. We have been searching for engineering talent to join us. We are looking for people with bright minds, an eye for computational design and the drive to contribute to society. There are exciting opportunities for engineers in Government.

And I would like to cite a particular example, Ms Laura Lee. Members may or may not be familiar with Ms Lee's first employer King.com which is a software developer. I suspect some Members may be more familiar with one of their products which is Candy Crush. While Ms Lee was working at King.com, helping Candy Crush to become one of the best selling games of all time. She read about how data was used by GovTech engineers to resolve the spate of mysterious disruptions to the Circle Line in 2016. So, reading about that effort by our data scientists to solve these real-world problems, Ms Lee was inspired to come back home to Singapore and join us. And now she is currently a Data Scientist with GovTech working to improve Government’s digital services, such as transport route planning and jobs matching. Like many of our engineers she also pursues other projects as part of her personal professional development within the team. Currently, she is part of a team that is trying to find ways to use technology, machine learning and our Smart Nation platforms to encourage more recycling. This is something that she initiated as part of a hackathon she participated in, using her skills to pursue something that matters to her.

Ms Lee did not graduate with a computer science degree. Her training was in Mathematics, Economics and Statistics. While at university, in order to pursue one of the courses that she had, she had to learn R which is a programming language focused on Statistics and her ability to use R to solve the problems and apply those solutions to what she was working on sparked her interest in coding and data science. So today, she is familiar with a variety of coding languages – Python, CSS, Javascript and HTML and all of these she picked up after starting work. Recently, she had developed a full-stack web application as part of an internal hackathon project.

And the point I want to make with this: what Ms Lee’s story demonstrates, and there are many others like her, the experience that they have, this demonstrates that the opportunities that are created in Smart Nation are not just for a handful of people not just for a few. We are hoping to make them as widespread as possible, including the jobs that are created. It is not just for those students who are currently pursuing a Computer Science course, or participating in Robotics as a CCA. Ms Lee’s CCAs, by the way, were Hockey and Student Council. It is not necessary to have picked up all the programming skills before leaving school. What is important is to have the drive, the curiosity and the willingness to pick up new skills throughout our lives.

Smart Nation is a national effort, and we in the Smart Nation and Digital Government Group will do our part to work closely with citizens and businesses, to create jobs, opportunities, and a sense of transformation and optimism for the next generation of Singaporeans.

Improving Election Processes

Mr Pritam Singh (Aljunied): Sir, in 2015, Workers' Party Non-Constituency Member of Parliament Yee Jenn Jong noted that the completeness of the Electoral Boundaries Review Committee (EBRC) report had been shrinking over the years and asked for the meeting minutes of the Committee's report to be released. In response, Prime Minister replied that on the completeness of the report and the minutes, "I leave that to the Committee". Even though the Prime Minister said that he was not in favour of publishing every twist and turn that would be reflected in the minutes, the Prime Minister was noncommittal on the prospect of a more complete report. It would appear that this can change should the Government decide to do so since the EBRC's Terms of Reference are determined by the Prime Minister himself. I hope we can move from the circular nature of these justifications and provide a report for the public that details why specific precincts in GRCs and SMCs are moved or swapped for each and every constituency in future.

In addition, why does the Government not announce the formation of the EBRC as a matter of practice? It would be a waste of Parliament's time and even bordering on an abuse of process if a Member of Parliament had to file the same Parliamentary Question to the Prime Minister when rumours of an imminent election are in the air. In making the point, can I enquire if the EBRC has been formed?

In 2013, Deputy Prime Minister Teo stated that the Prime Minister will certainly remain open to and consider making refinements to its procedures when necessary. I hope these suggestions on greater detail in the Committee’s report and announcing when the Committee is formed will be taken on board.

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Finally, it was announced that Elections Department will conduct roadshows to educate voters on changes to the parliamentary elections system, specifically, the electronic registration for voters. Can the Prime Minister update the House on this matter and the number of roadshows that will be organised for this purpose, where and when they will be held in the months to come.

The Chairman: Minister Chan Chun Sing.

Mr Chan Chun Sing: Mr Chairman, on behalf of the Prime Minister. It has been the practice for the Prime Minister to appoint an Electoral Boundaries Review Committee to review the number, names and boundaries of electoral divisions ahead of a General Election. The Committee is made up of senior civil servants who are knowledgeable in demographic shifts and population statistics. The review report is presented as a White Paper to Parliament and released to the public once it is accepted by the Government.

In drawing up its recommendations, the Committee is guided by the terms of reference laid out by the Prime Minister. The Committee independently considers and determines how the constituencies are delineated, the size and configuration of the constituencies, as well as the total number of Members of Parliament to be returned. When reviewing the electoral boundaries, the Committee takes into account technical factors, such as population growth and shifts and other relevant parameters.

As a matter of practice, we should allow the Committee to focus on its work professionally, away from unnecessary media attention or public pressures. As with past elections, there will be sufficient time, from when the Committee’s review report is made public to the time of the election, for candidates and political parties to make their preparations.

On Mr Singh's second question as to whether the Electoral Boundaries Review Committee has been formed yet, the answer is, no. And for the number of roadshows, we have done that in preparation for the last Presidential Election and will continue to do that as we move towards the next General Election.

The Chairman: Assoc Prof Daniel Goh.

Subsidising the Stock Market

Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Mr Chairman, the Monetary Authority of Singapore recently announced a $75 million plan to boost equities research and equity listings. The Grant for Equity Market Singapore (GEMS) will co-fund listing costs of companies and the salaries of equity research hires by 50% to 70%.

Critics have argued that this is throwing money at the problem without addressing the fundamental issues of stock market malaise.

For small to mid-size caps, the main problem seems to be the lack of expertise and experience on corporate governance. Even before we can talk about investor excitement, we should address the confidence of retail investors in small and mid-caps. There is often excitement in initial listings, many times encouraged by enthusiastic analyst coverage, but this excitement very easily gives way to collapsing stock prices due to corporate governance issues.

Recent examples include e-commerce start-up Y Ventures and F&B company Kimly. These have affected retail investor confidence. The restructuring of Noble Group, which has not been allowed to re-list, and the current restructuring of Hyflux to save it from liquidation have further affected confidence.

For both Noble and Hyflux, analyst reports have had little impact in educating retail investors about their cash flow problems. Shareholder activism and academic scrutiny have done more to highlight potential issues, but often too late for retail investors. Would not GEMS do better to fund programmes to advise small and mid-caps on corporate governance and improve their performance in this aspect?

Corporate Governance in Companies

Mr Dennis Tan Lip Fong (Non-Constituency Member): Mr Chairman, last year, the Keppel Offshore and Marine corruption case was discussed in this House. Many people have wondered how sizeable bribe payments were made without oversight from the highest level of management or its Board. Like the Swiber case, we are still waiting for the outcome of the Keppel case.

The on-going problems plaguing Hyflux that have since surfaced remind us that corporate governance issues remain complex and entrenched, with potential market-wide implications. This, in turn, can affect shareholder value and investor confidence.

The repercussions of such problems affect many small-scale retail investors. Sixty-year-old Mrs Goh shared with ChannelNewsAsia her worries of not being able to recoup her investment in Hyflux. Such worries are not unfounded as recent announcements by Hyflux have indicated that investors like her will have to suffer losses on their investments if a proposed restructuring plan proceeds.

In many other cases, it is often the minority investors that lack protection and do not get any help from the regulators or the law when majority shareholders and directors make use of loopholes in regulations to effect transactions at the expense of minority shareholders.

Another worry arising from such corporate malfeasance is the impact such incidents can have on the companies’ reputation and, by extension, on Singapore’s. Some international commentators have made unflattering remarks on the robustness of Singapore’s regulatory regime and enforcement.

I note that MAS have set up a Corporate Governance Advisory Committee (CGAC) as part of the recommendations by the Corporate Governance Council, itself set up in 2018 to review the Code of Corporate Governance.

Despite such efforts, it may be time for us to acknowledge that self-regulation and internally-driven processes on corporate governance cannot be relied upon solely. The present oversight processes and regime are surely not adequate. In some of these cases, the problems reported seemed to have escaped the attention of their auditors or the problems have not been commented upon by their auditors.

In cases where the executive management of a company or its board is aware of serious malfeasance or malpractices, or is not aware of such malfeasance but ought to be aware, the buck should never stop anywhere below executive management and its Board.

Regulators should be more proactive in taking errant or neglectful directors to account when they fail in their duties and obligations.

Can SGX RegCo or ACRA not do more?

The Government should do more to improve the corporate governance regime of our companies. I would like to propose that an independent taskforce be convened to evaluate the need for a Government agency to provide oversight on corporate governance standards and to improve audit quality. Such a review is timely and necessary to ensure that safeguards are in place to protect shareholder value and to ensure that the reputation of Singapore companies is not adversely affected by those who have fallen short.

Finance as a Force for Good

Ms Anthea Ong (Nominated Member): Mr Chairman, I am heartened that Budget 2019 acknowledges climate change as a strategic challenge for Singapore. The financial sector’s role in allocating capital for a climate safe future across generations is a significant one that we must include in our strategic plan for climate change action.

As a leading financial hub, Singapore’s banking and asset management industry must rise to this challenge. How we lend is a reflection of our values and principles. For example, civil society recently called out our banks for continuing to fund coal-fired power. As of September 2018, 17 banks have committed to stop financing coal-fired power. The Governor of Bank of England is reported to be open to increased regulatory requirements for “brown” investments.

What regulatory and supervisory mechanisms are being developed so that banks in Singapore will:

(a) actively implement existing green standards, like ABS’ Haze Diagnostic Kit, into their lending policy frameworks; and

(b) proactively work with civil society and experts to identify other critical industries, like energy, where green standards should be developed and implemented?

Our asset management industry currently manages US$2.4 trillion. Can we allocate funds to support our asset management industry to develop stronger stewardship principles and use the tools available in the market to help us safeguard our future, one that is climate-safe?

For example, the Government Pension Investment Fund of Japan allocates close to 10% of its investments into funds using sustainability indices. Two pension funds in Korea have gone even further and stepped away from future coal investments.

The Chairman: Minister Ong Ye Kung.

The Minister for Education (Mr Ong Ye Kung): Mr Chairman, let me first start by addressing Assoc Prof Daniel Goh’s question on the Grant for Equity Market Singapore (GEMS). Let me first explain.

GEMS, as a scheme, is funded by the Financial Sector Development Fund (FSDF) which was set up in 1999 following the demutualisation and listing of the Singapore Stock Exchange (SGX). So, it is not funded from taxpayers' money. The scheme was then designed in response to feedback from the industry that a vibrant equity market requires not only new listings, but also sustained investor interest post-listing. So, it is really a fund started from the industry to address feedback from the industry and you design GEMS. And the primary aim is to strengthen public financing channels for growth enterprises, in particular, small-and-medium-size enterprises (SMEs). So, GEMS does so, as Assoc Prof Goh mentioned, by defraying listing-related expenses and promoting better research coverage of the sectors they are in, as well as their business models.

There are certain sectors that we can do better in attracting listings; high growth sectors being one example. And GEMS is designed to promote those sectors. There are also gaps in investment coverage for small and mid-cap listed enterprises and new business models. This is why the scheme comprises a listing grant and research-related grants to improve the equity research ecosystem.

The quantum of listing grant has thus been also tiered to favour high growth areas, such as the technology sectors. Well-developed sectors, such as Real Estate Investment Trusts and Business Trusts, do not qualify for the grant. Applicants for the research grant are also required to provide coverage for small and mid-cap listed enterprises. It is a young scheme. I am sure different agencies will monitor the effectiveness, taking further feedback and inputs and try to improve the scheme over time in order to serve its objectives.

Mr Dennis Tan asked about corporate governance and whether it should just be left as an internally driven process, and whether SGX RegCo, ACRA can do more. He called for an independent taskforce to review the corporate governance framework and a Government agency to provide oversight on corporate governance standards and improve audit quality.

Actually, many of these features already exist within our current system. MAS, as the statutory regulator of Singapore’s capital markets, and SGX, as the frontline securities market regulator, oversee the corporate governance standards of listed companies, set out in the Code of Corporate Governance. The SGX Listing Rules, in turn, require companies to disclose how the companies’ practices conform to the principles in the Code. The Accounting and Corporate Regulatory Authority (ACRA) is responsible for upholding financial reporting and audit quality by inspecting the statutory audits performed by public accountants.

As for an independent taskforce to review the corporate governance framework, as Mr Dennis Tan has alluded to, MAS has convened an industry-led Corporate Governance Council in 2017. That was an adhoc Council. It had a list of recommendations. MAS accepted all the recommendations that the Council submitted last year in August. Consequently, changes were made to the Code and the SGX Listing Rules to implement the recommendations.

In line with one of the key recommendations of the Council, MAS established now a permanent Corporate Governance Advisory Committee (CGAC) earlier this month. The CGAC comprises prominent industry leaders with stature and corporate experience to advocate good corporate governance practices. It will identify current and potential risks to the quality of corporate governance in Singapore and advise the regulators on corporate governance issues.

High standards of corporate governance do help sustain good corporate performance for the long term. It ensures good systems and structures to evaluate investments, manage risks, safeguard all shareholders’ interests, conduct leadership succession and other key processes in the company.

However, risks are inherent in investment. One of the key aims of regulation is to require that investors have access to up-to-date, material information, such as a listed company’s financial condition and prospects, in order to make informed investment decisions. Investors, on their part, also need to pay close attention to what is disclosed, look beyond potential returns and assess if they can also accept the risks that come with specific investments.

The regulators – ACRA, MAS, SGX RegCo – will continue to calibrate rules and work with stakeholders, such as the new CGAC, to strengthen the corporate governance standards and practices in Singapore. At the same time, we will continue to educate the investing public on the trade-offs between risks and return, through the MoneySense programme.

Lastly, Ms Anthea Ong asked about sustainable financing. MAS is committed to advance the agenda for sustainable finance. As a member of the Network for Greening the Financial System, MAS works closely with our international counterparts to develop best practices for financial institutions to manage climate risks and opportunities. Let me outline MAS’ efforts in three key areas.

First, our local banks have implemented policies aligned with the Guidelines on Responsible Financing issued by the Association of Banks in Singapore, to evaluate their borrowers’ environmental, social and governance (ESG) risks, and help borrowers improve their sustainability profiles. In this regard, the local banks have also committed to stop new financing of inefficient coal plants. MAS also expects insurers to consider environmental risks in their risk assessments, and has introduced a climate scenario in our industry-wide stress tests.

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Second, the financial industry is promoting green financing, such as green bonds. Over $2 billion of green bonds have been issued to date, following the introduction of the MAS Green Bond Grant Scheme. Recently, the Scheme was expanded to cover social and sustainability bonds.

Indeed, within the asset management sector, the large majority or 80% of sizeable asset managers in Singapore are signatories to the UN Principles for Responsible Investment, and take on board environmental, social and governance risks considerations in their investment processes. In MAS’ own investment portfolio, we have been actively working with our fund managers to ensure that ESG considerations are incorporated.

Finally, to strengthen the region’s financial resilience to disaster risks and address protection gaps, the Southeast Asia Disaster Risk Insurance Facility will be set up in Singapore this year as ASEAN’s first regional catastrophe risk pool. It will better cover emergency response costs in the aftermath of catastrophes. MAS will continue to work with key stakeholders in the financial industry to promote the sustainability agenda.

The Chairman: Clarifications, please. Mr Vikram Nair.

Mr Vikram Nair: The question is for Minister Josephine Teo. I think you have prepared a good discussion on all the different initiatives by the National Population and Talent Division. But I am just curious. What is the root cause of the fall in TFR over the last three years despite all these initiatives?

Mrs Josephine Teo: Mr Chairman, I thank Mr Vikram Nair for his question. This is an important question. I could not help but overhear my colleagues' chuckle. In fact, I have been studying this for some years and perhaps if Members allow I could share my own reflection on this.

When we think of births, we think of TFR. My observation and my reflection would be that there are really two key sets of driving forces. One key set of driving forces are longer term in nature. Births, when looked at from a longer term perspective, really have to do with values and social norms. And these would include attitudes towards singlehood versus marriage, couplehood versus parenthood. And then within parenthood, the role played by fathers versus mothers. It would also include norms as to how many children is considered ideal in any society. And also how people prioritise parenthood versus other pursuits such as career, caring for elders, service to the community and, very importantly of course, personal lifestyle interests.

Parenting norms also matter a great deal: whether like in the Scandinavian countries, it tends to be quite relaxed attitude; or whether in an East Asian context generally a very intensive form of parenting. These impact costs – how much people spend on children, and of course, as a result the perception of affordability. And then, as a result, for the parents how many children they will eventually actually have because of how much they think they can afford. So, these are the longer term driving forces – a whole set of forces at play. So, root causes.

But in the shorter term, births can also be affected by other things. For example, economic uncertainty. So, if the job situation is not clear, people are anxious. Then, you could see that translate into a dip as what Korea experienced in the last couple of years. And in fact, one of the stars, if we could put it that way, of high births, Finland, often touted – in fact, since 2010, Finland has also seen a decline in the birth rates. So, before 2010, Finland's birth rate was around 1.9; and by now it has gone to below 1.5. And if you look at the TFR by rural areas versus city areas, actually it is quite across the board. In Finland's rural as well as city areas, births have declined. I think it has something to do with the sense of malaise and people feeling not confident.

So, that is one type of short-term effects, if you could put it that way.

There is also another factor on the short term – how TFR could fluctuate. It is mathematical. Because TFR is a ratio, so it depends on what you have in the numerator and what you have in the denominator. So, I will not go too much into that. But I would say that these are short-term factors because when confidence returns, it is entirely possible that people who have put off parenthood in Finland could then decide that this is time. Okay, we have been putting it off. And then you might see an uptick in their TFR. So, the long-term factors versus the shorter term factors.

I think what would be important for us is really not to be overly distracted by the year-to-year ups and downs in the TFR. We pay attention to them, we look at them, and we ask ourselves why it is happening this way. But do not be overly focused on it. What we should really focus on would be the values and our societal norms, which many Members spoke about.

It is important for us to firstly remember we have to strengthen the fundamentals. And the fundamentals are – you need to have economic vibrancy, you need to have societal cohesion. These are fundamentals. And then, on top of these fundamentals, we must do our utmost to support marriage and parenthood aspirations, meaning we have to try as best as we can to make marriage and parenthood achievable, enjoyable and celebrated. Those are the things we have to focus on. We should stay the course.

Mr Patrick Tay Teck Guan: One of my cuts on public sector transformation, I asked Minister in our drive towards upskilling and reskilling in the Public Service whether the Public Service can partner the Labour Movement as well as the public sector unions in forming training committees to drive some of these training efforts that cross our Ministries and Statutory Boards. I wanted a response from Minister Chan.

Mr Chan Chun Sing: Mr Chairman, that is definitely a good suggestion. As the former immediate past Secretary General of NTUC, I would certainly take note of that. Indeed, I have instructed the Public Service Division that in our transformation to pay extra attention to those who require a bit more assistance to transit to new jobs. And I would say that we are not setting up a big overall committee to integrate with the AUPE at that level, but importantly, we are starting at the respective job levels. So, for example, there are lower skilled workers in MEWR who require new skill sets and we are focusing our attention on them, prioritising them in our transformation effort first.

Likewise, the Civil Service College will also contact and work closely with the Labour Movement to make sure that the modular system of training is made available to as many of the public servants as possible. We all know public servants, just like any other people, who are in full-time jobs is always difficult for them to take time out from their jobs to do training for one or two weeks. So, we need to work together with the Labour Movement to design modular courses, stackable modules to be accessible to our public servants in order for them to acquire the new skills, especially in the area of digital literacy. We welcome this move by the Labour Movement and the offer by the Labour Movement and will certainly work closely with AUPE to bring this about.

Ms Sylvia Lim: Mr Chairman, I have a clarification for Senior Minister of State Janil on my cut on personal data protection in the public agencies. I would like a clarification from him as to whether it is the expressed Government policy that persons whose data has been compromised, while in the care of public agencies, that such persons have a right to know that there has been a breach and that they have the right to know in a timely manner.

Dr Janil Puthucheary: Mr Chairman, we addressed some of these in the discussion recently in the previous sitting. There are guidelines about how public sector officials should handle the matter of a data breach involving citizens' particulars. There is no absolute requirement. We do need to look at every case and we do need to look at the issue at hand as to what has been accessed, what are the circumstances, what the potential impact would be on the citizen to be involved in that process thereafter. We have heard about the examples cited in this Chamber about what has happened after the recent breach. So, the short answer to Ms Lim's question is – no. There is no single expressed position on this. There are guidelines about how the matter should be handled. There are guidelines about how citizens should be approached. The situation needs to be taken on a case-by-case basis and all the factors that are relevant need to be taken into account.

Ms Anthea Ong: Mr Chairman, can I kindly request for Minister Chan to further expand on my question on how or what specific measures or steps is the Government taking to restore confidence in the Public Service?

Mr Chan Chun Sing: Mr Chairman, every time when something goes wrong in the Public Service, regardless of which agency the first thing to do is to get to the bottom of it by the respective agency to see what are the lessons learnt. That the agencies must do internally to make sure that they get to the bottom of it and put things right.

The second step that we always will do is to make sure that these lessons are shared across all the other agencies. Because things that happen in one agency can offer important lessons to other agencies.

There is a third step that I would always ask the Public Service to do is when we do our debrief is to ask ourselves if we could have prevented or preempted this incident right at the beginning. And that is why I always discuss and share with my fellow colleagues in the Public Service that it is necessary but not sufficient just to put things right. Actually, more important than playing defensive we need to make sure that our systems are in place to preempt problems from arising in the first place.

Of course, it is very difficult for the Public Service to say that I have done this and therefore I have prevent these problems because the problems never even manifest themselves. But that is our challenge. That is the high bench mark that we need to set for ourselves as the Singapore Public Service if we aspire to be a Public Service that Singapore and Singaporeans can be proud of.

And, indeed, as I shared we have done many things that I think we can be proud of because that has put Singapore at the forefront of many these views so that we have prevented and preempted many of these issues. Be that as it may, we should never be complacent.

So, the way to restore public confidence is to make sure, one, we get to the bottom of the issue; and if there are people who are responsible, we will make sure that we rectify that, even as we take the responsibility at that level we would ask ourselves could we have trained that person better, could we have changed our process to take into account the human factors to prevent those mistakes from happening in the first place.

So, these are things that, I think, we owe it to ourselves in the Public Service to get things right and to prevent things from going wrong in the first place because it gives us no joy to say that we are able to recover from our mistakes fast. In fact, I would like to see ourselves not getting into those mistakes in the first place.

The Chairman: Mr Louis Ng Kok Kwang.

Mr Louis Ng Kok Kwang: I think Minister Chan Chun Sing has responded to my cut in saying that almost all public agencies have now a single structure scheme in terms of career progressions for a public servant. Could I just ask what percentage do not have this single structure scheme and what are we doing to close this gap?

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Secondly, I think in response to my cut as well, he said that Leaders should respond to that feedback provided. But my cut really was about how are we going to ensure that they do and whether we can have internal Quality Service Managers (QSM) to take that role instead to take that feedback given is actually looked into and the loop is closed?

For Minister Josephine Teo, I am very thankful that you have announced that 450 employers are now offering the unpaid leave and I think you mentioned 70 public agencies. Could I ask whether the entire Public Service can offer this unpaid leave for parents with multiple or pre-term babies so that we can walk the talk and we can take the lead on this issue.

Lastly, with regards to the childcare leave, could I ask Minister to consider again whether we can allow people to use their current sick leave entitlements, not just when they are sick, but again when their children are sick? And to avoid people from misusing this, they have to provide the child's MC as proof when they take this kind of sick leave.

Mr Chan Chun Sing: Mr Chairman, let me first clarify that our aim is not to merge every scheme possible. You cannot do that because there are schemes that are for professionals – doctors, engineers, accountants. So, our aim in the Public Service is not to merge every scheme. Our aim is to merge the schemes where it is possible to do so. And the last I checked, for the 50 over agencies, I think I would say almost 50 of them have done so; and the rest who are not able to do so, it was because they have good professional reasons.

Now, even for those who have done so, we will constantly challenge ourselves. Are we able to merge those schemes even earlier, at an earlier stage whereby we take into account an individual's performance rather than just the academic grades?

So, going forward, we will see the following things. Yes, academic grades will be taken into account as one of the signs as a proxy of what the person is capable of, but increasingly, as I mentioned, there will be other skillsets that we are required to take into account for a holistic assessment of the individual. To what extent we can, I think beyond those professional schemes and engineers, qualified engineers and doctors, we will try to that extent possible. So, that answers the first question.

The Member's second question is about how do the leaders follow up on their respective agencies when they get the feedback? Well, there are few ways. First, when they get the feedback, I expect them to take actions on their own. And of course all the respective agencies' feedback comes to me and if necessary, I will have a discussion with the respective Permanent Secretaries or the Chief Executives of the various agencies. They know that we take this seriously, they know that I expect them to take this seriously, and if need be, I will let them know.

The Chairman: Minister Josephine Teo.

Mrs Josephine Teo: Mr Chairman, to the first question as to whether all public agencies – in principle, yes, but if you know of any who somehow are not in that list of 70, feel free to let me know. We will check up on it.

On this question on whether parents' leave entitlements can be used for their children, here I want to just have a word of caution. I remember some years ago when I was still in the Labour Movement, NPTD at that time was doing consultation on whether we should raise the Maternity Leave benefits. So, it surprised me, but when we did the engagement with our women unionists, they were very wise and they said to me, "Sister, be careful about what we ask for because whenever we increase these leave benefits, we look different to the employers. They start seeing us differently, because they start seeing us in terms of the liability and obligations that they have towards us." So, not all of them were so keen to expand the leave benefits. So, that was a very useful exercise and I keep bearing it in mind.

What the Member has asked for, I think amounts to that – you are really going to expand the leave provisions for people who are parents. Not that you cannot do that, but by doing so, we have to ask ourselves, what the employers will think of it. From having obligations to the individual as an employee, now they have obligations to the entire family. The same benefits can extend to the whole family. I think that is very expansive. And I will be very careful about this because primarily, the leave provisions were designed to protect the individual in the event of illness. If we think that society can bear more leave provisions for those who are going to be parents, I think we do it openly, we do it in a transparent fashion, we do it in a way that is honest with the employers so that they do not have to second-guess when they take on an employee whether there are these other hidden obligations that they have to fulfil.

The Chairman: Mr Ang Hin Kee.

Mr Ang Hin Kee: For Minister Chan Chun Sing, just one clarification and one suggestion. When you earlier mentioned about public sector transformation, you will have your officer work with AUPE to ensure that public sector servants are assisted and well-coached as far as training is concerned. I think you also referred to the Statutory Board unions and those who are House unions, not just those that are belonging to AUPE, just for clarification, so that the other union leaders and members will not feel left out that their areas are not looked after.

Secondly, a suggestion. I had a conversation with many of them and they have mentioned that a lot of the trainings are centred on the worker themselves – on the lower skilled or the older ones. Then, they realised that their supervisor could be much younger, could be somebody who is in their 30s or 20s. And they realise that sometimes the supervisors do not quite understand that this transition, this situation that they face, require some level of empathy, some assistance and some mentoring and coaching from the supervisors. So, the suggestion is that, can supervisors that oversees some of these workers also go through a system of training whereby they are able to coach and guide these officers along so that the entire transformation and the ability to adapt will be something that is owned by both the staff as well as the supervisor, and therefore make the workplace more inclusive?

Mr Chan Chun Sing: Mr Chairman, I thank Mr Ang Hin Kee for reminding me to clarify this. Yes indeed, that is why I mentioned that when we talk about the Public Service transformation, when we talk about acquiring new skills, it is not just at the AUPE level, it is beyond that, actually at every of the agencies' level with the respective union. This would include AUSBE for the Statutory Boards, it would also include agencies like the unions SURAWU and so forth. So, that it is at the respective agencies' level because we find through our experience, the most impactful training is when it is focused on the respective agencies rather than the generic skillsets. There is a place for generic skillsets but I think there is also a place for very focused, targeted, intervention at the respective agencies' level. So, that the first thing.

On the second point about the training – indeed the PSD together with the Civil Service College has worked out a framework for different levels of training to be given to different levels of our Public Service officers. There are basic level of skills that are given to everybody – the basic digital skills, there are specific skillsets given to the workers at the lower wage level and the lower skill level to help them upgrade. But you are right that we also have other forms of training that includes the intermediate managers and even the higher managers because different levels of managers require different skillsets.

For example, in the Member's particular situation, indeed for the middle managers, they must know how to make use of some of these technologies; besides using it – how to exploit this technology, how to use, how to help their fellow workers to adopt and adapt to such technologies. Yet, at the higher level, at the more senior management level, we expect them not to just be hands on, but also to know the potential to use some of these new technologies to restructure and change the processes which they are doing at their job at the current point in time.

So, you can see that in this overall digital masterplan or the digital skills masterplan, we are looking at different skill sets for different managers at different levels. So, that is indeed what we are going to do at the training for the CSC as they roll out across the Civil Service.

The Chairman: End of clarifications. Just like to encourage Members, you have been doing well in time-keeping. We get to go home earlier than expected, it might help our TFR as well. We will check back on next year's Budget. Mr Patrick Tay, do you wish to withdraw your amendment?

Mr Patrick Tay Teck Guan: Mr Chairman, I would like to thank the responses from Minister Chan Chun Sing on building a great Public Service; Minister Josephine Teo for sharing on how we are going to support families, parenthood and marriage; Minister Dr Vivian Balakrishnan and Senior Minister of State Dr Janil Puthucheary on not just building a smarter nation, but really one on improving lives and livelihood; Minister Ong Ye Kung on strengthening our financial markets and our regulatory system; Head (Civil Service) and the PSD team, as well as all our public servants, for putting us all at the heart of what they do and working hard to ensure we are top notch and first class. On that note, I beg leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $827,594,400 for Head U ordered to stand part of the Main Estimates.

The sum of $196,666,600 for Head U ordered to stand part of the Development Estimates.