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

Smart Fight, Smart Nation

Ms Tin Pei Ling (MacPherson): Mr Chairman, I beg to move, "That the total sum to be allocated for Head U of the Estimates be reduced by $100".

Sir, it was almost seven years ago since the launch of the Smart Nation initiative by Prime Minister Lee. The Smart Nation initiative envisages a future Singapore that is a leading economy powered by digital innovations and world-class city with the Government that gives our citizens the best home possible and responds to their different and changing needs.

We are truly fortunate to have benefited from the coordinated build-up of digital infrastructure, capabilities, talent pool and smart tools through the efforts of the Smart Nation initiative. This virtue of being prepared allows our Government agencies to respond swiftly and act decisively in our response to COVID-19.

I dread to imagine how colossal an effort it would have been to have to manually track persons on Leave of Absence and Stay-Home Notice or to contact trace hundreds of thousands, perhaps, millions of people, especially when speed is of essence to containing the spread of COVID-19.

At the peak of the pandemic, there was so much uncertainty and Singaporeans struggled to figure out what help schemes they are eligible for and what information to believe or not to believe. Everyone would have had a unique set of circumstances. The sheer amount of queries received were simply overwhelming.

But, thankfully, innovations and creations such as TraceTogether, and digital tools such as the Government WhatsApp and Telegram channels, eligibility checker and chatbots, helped to achieve what we needed to, so much more effectively and efficiently.

Consequently, we were able to effectively control the spread of COVID-19 and deliver important information to Singaporeans in a very timely manner.

On this note, I would like to ask whether the Government could provide an update on what other technology-based measures that might be in place to boost our fight against COVID-19 and future crises such as this. As our population gradually gets vaccinated, if, how and when can we expect electronic vaccination certificate to be issued? Could this be integrated with the SingPass mobile app, just like how we can now access our NRIC, driving licence and other useful information?

Having a robust digital capability will strongly position us for future challenges and opportunities. Who knows when "Disease X" might strike us? Hence, the earlier we are digitally ready, the better. May I therefore ask how is the Smart Nation initiative progressing at this point?

Question proposed.

Digital Identity

Ms Tin Pei Ling: This brings me to my second question to ask the Ministry whether the National Digital Identity (NDI) initiative is on track for widespread adoption in 2022 and what is the expected timeline for NDI to be enabled for cross-border travels and transactions? If we are to expect vaccination e-certificates, perhaps we should consider enabling NDI for cross-border travels and transactions concurrently.

Smart Nation and COVID-19

Mr Alex Yam (Marsiling-Yew Tee): Chairman, permission to take my cuts together.

The Chairman: Yes, please.

Mr Alex Yam: Chairman, the pandemic has threatened public health and safety, forcing individuals and organisations to cease economic and social activity and to stay within the safe confines of our homes.

One cannot imagine how we could possibly have coped if not for the Smart Nation infrastructure that was already in place pre-COVID-19.

The Government's foresight to progressively build up our digital infrastructure and engineering capabilities have paid off handsomely.

In the midst of a pandemic, we could count on technology to access essential services and goods, reducing exposure to the virus. We could also stay informed with the myriad of official online channels, established to protect us from misinformation.

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Then, there is the TraceTogether, which allows for the establishing of an efficient contact tracing network. This network has effectively prevented widespread community outbreaks and saved our healthcare system from being overwhelmed. Minimising the impact of the pandemic has also allowed for our economy to enter the recovery stage, while the general population gets to resume life with some form of normalcy.

For commercial entities, the application of smart technology pushed them to innovate and reinvent their operations or product offerings. Not only were they able to continue their operations during the pandemic, they are even scaling new heights.

We will continue to face multifaceted challenges, further complicated by COVID-19. Can I ask the Minister to share about how the Smart Nation will help us emerge stronger from the pandemic?

Smart Nation Private Sector Involvement

My second cut. As I mentioned earlier, we coped with this pandemic due to our resolve and helped definitely by technology.

In the past one year, we have navigated the pandemic with the help of digital services, whether we want to find out where to collect our masks, or to see a doctor, or if it is safe to go to a mall or to a park, we would utilise the digital platforms created by GovTech. There are also the safe entry systems and contact tracing tools and networks which were created by the Government to help all of us stay safe. Many of these digital services have gone a long way to directly benefit citizens and businesses. Let me take the opportunity to thank all the engineers and staff at GovTech for innovating on our behalf during this difficult period.

As we further our Smart Nation initiative, opportunities abound as well for the private sector. The Government has had several strategic national projects that have involved close collaboration with industry players. For example, the rapid development of our cashless payment system can be attributed to the hard work of our officers as well as bank service providers and merchants.

Such collaboration improves diversity of solutions and resources. It also contributes to job creation and makes a good training ground for budding tech experts to pilot new technologies. It will help our businesses to develop new capabilities and improve their product and service offerings, which will in turn stimulate economy.

Can the Minister share about how we are collaborating closer with the private sector to further our Smart Nation drive?

Data Protocol and Safeguards

Miss Cheng Li Hui (Tampines): Sir, our civil and public servants may come across classified information at work and such information could be crucial for them to exercise their duties effectively. There could be dire consequences if such information is wrongfully shared publicly.

In April last year, we had two such cases. First, a public servant was arrested for sharing a draft media statement on schools moving into full home-based learning to curb the spread of COVID-19. Later, a civil servant was arrested for leaking the COVID-19 case numbers before official announcement. Both incidents could have resulted in panic in the community at a time when calm was needed.

Most recently, a public servant allegedly leaked a Police lookout message that identified the suspect of the Tampines fatal stabbing incident. The message included the suspect's name, image, date of birth and nationality. It was widely circulated that the man had fatally stabbed his wife. From that, I received calls informing me that the deceased is my ex-PCF staff, Iris.

Sir, Iris was a sweet and thoughtful lady. After her resignation from PCF, she came to bid me farewell at my Meet-the-People session. The next week, she returned again. She noticed that I was engaging people over my exposed drink and returned with a cup cover. She was a good mother and brought her children well. Her three children lost both their parents on the eve of Chinese New Year reunion dinner. It was a difficult period, made more difficult with the exposure.

I would like to ask how can the Government further instill discipline on how Government officers deal with the possession of such information and what can be done further to let officers better recognise and appreciate the severity of sharing this information publicly.

Smart Nation and Digital Government Group

Ms Hany Soh (Marsiling-Yew Tee): Thank you, Chairman. What role does the Government play in building digital infrastructure to support our economy and society?

Our Government has always advocated for a Smart Nation approach in building Singapore's future. As the next generation of technology evolves and influence positive changes to our lives, there will soon be more urgent need for digital infrastructures, such as the upcoming 5G network.

With that in mind, what is the current status of the 5G roll-out? Are there any data security concerns and safeguards that we should take note of before we widespread adoptions?

Lastly, in which areas will the digital infrastructures enhance our governmental services online in order to better serve businesses and our Singaporeans?

Smart Nation

Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, in 24 November 2014, the Smart Nation initiative was launched by Prime Minister Lee. At the launch, Prime Minister Lee outlined Singapore vision to be a Smart Nation. He said, I quote, "Our vision is for Singapore to be a Smart Nation – a nation where people live meaningful and fulfilled lives, enabled seamlessly by technology, offering exciting opportunities for all."

Echoing this, Minister-in-charge of the Smart Nation Office said, and I quote, "How do we include everyone in the digital revolution? This is all about designing solutions for people, and not the other way round."

Now, more than six years into our journey to make Singapore a Smart Nation, can the Minister share how we are making our vision of Smart Nation real and tangible for Singaporeans and Singapore?

In the last year, we have seen how COVID-19 has accelerated the adoption of digital, affecting many aspects of our work and life, changing how we work, live and play. Digital solutions enable new capabilities, allowing us to reimagine the way things are done. And in doing so, how we have and how are we continuing to ensure that no one is left behind in our drive to being a Smart Nation?

In my Budget debate speech earlier this week, I did give the example of my resident struggling to get a simple task as the process had been digitalised. And I had shared that it was not an aversion. It was because of a gap in tech savviness but not an aversion to use in tech.

So, in our process of digitalisation, are we going to make an effort to drive a Smart Nation and design solutions for our people who are less tech savvy. How can we make it such that we make technology disappear?

Personalised Smart Nation Initiatives

Mr Sharael Taha (Pasir Ris-Punggol): Mr Chairman, in the Smart Nation Summit on 26 June 2019, Prime Minister Lee mentioned, for us, being a Smart Nation, it is not about flaunting fizzy technology, but it is about applying technology to solve real-world problems that will make a difference to people's lives.

As we battle the pandemic over the past 12 months, we have witnessed clearly how Smart Nation applied digital technology that has made a difference to our lives, such as MOE's student learning space which enabled home-based learning for all students; TraceTogether (TT) token, which reduced contact tracing from four days to 1.5 days and the supply airline app which manage the distribution of critical supplies, such as 90 million masks and more than 500,000 meals for Redeem SG.

Moving ahead, what are the Smart Nation initiatives can we look forward to to help deliver more personalised and inclusive services for our citizens?

The Chairman: Minister Vivian Balakrishnan.

The Minister for Foreign Affairs (Dr Vivian Balakrishnan): Thank you, Mr Chairman, on behalf of Prime Minister Lee and Senior Minister Teo.

COVID-19 has been a real stress test of the work that Smart Nation has embarked on for the past, more than almost seven years. It has exposed gaps, it has validated our investments over the many years and it has also allowed us to differentiate ourselves and to emerge stronger in a post-COVID world.

So, the questions my team and I have asked ourselves in the last one year are the following: have our digital systems helped to save lives, enhance resilience, improve the quality of services provided to our people? Has it enabled us to overcome challenges collectively without leaving anyone behind? That has been our framing.

The digital systems that we have been building up have actually showed to be absolutely critical in our fight against COVID-19. Many of the solutions that we deployed during the crisis were developed by our in-house engineers within GovTech and other public agencies in weeks, sometimes overnight, over days.

TraceTogether, which now has 4.7 million people using it, SafeEntry – all these have helped to reduce the time needed to identify and quarantine close contacts. It used to take us four days. It is now down to 1.5 days. SupplyAlly and RedeemSG have been used to distribute more than 2.9 million TT tokens and 19 million masks. And those of you who participated in this would know that this really helped turbo charged the delivery of these.

We had websites, MaskGoWhere, SupportGoWhere, FluGoWhere and we have the Gov.sg WhatsApp and Telegram channels. Again, rolled out overnight and the ability to provide crucial accurate information from trusted sources enabled us as a population to respond in a coordinated, effective and calm manner.

Over 700,000 manpower and workplace applications for businesses have been made through the GoBusiness portal and that also provides convenient, comprehensive information, especially on safe management guidelines over the past year. The Government was therefore able to continue serving people, providing services online even during the circuit breaker and thereby cushioned the social and economic impact.

Technology will be critical as we try this year to resume our daily lives. For instance, using the National Appointment System for COVID-19 Vaccination, eligible persons can book their vaccinations online when it is their turn. But it goes beyond that. It is about matching supply and demand in time and space. And for those of you who have been vaccinated, you can check your records which are available on HealthHub.

MOH and GovTech are also developing a globally inter-operable HealthCerts standard based on blockchain technology to facilitate cross-border verification of health documents. There will be notarised Pre-Departure Test (PDT) test results which will be available on SingPass Mobile and we will look into extending this to vaccine certificates as suggested by Ms Tin Pei Ling.

Ninety-five percent of Government's transactions between citizens and businesses are today completed digitally end-to-end – 95% done paperless, cashless and presence-less. This is actually one of the highest rates in the world.

These achievements have only been possible because of our relentless recruitment of talent and especially in-house engineering capabilities before the crisis hit. And we must now double down on building up our people, building up our capabilities and our agility and to use the latest cutting-edge technologies.

One area which we will do more of is to make greater use of the cloud in order to scale new services and to re-engineer existing services.

Seventy percent of our eligible IT systems will have migrated to the cloud by 2023 under the Digital Government Blueprint. This shift to the cloud incidentally will also make us greener and more sustainable.

We will continue to attract and nurture top ICT talent within the public sector, through our Smart Nation Scholarships, Technology Associate Programme (TAP) and other talent development programmes. And we are not just looking for hardcore engineers but also multi-disciplinary teams – designers, analysts, policymakers, artists, communicators, in order to create really functional teams fit for purpose.

We will be launching the Digital Academy next quarter, to build up the digital skills within the wider Public Service in areas including data analytics and cybersecurity. The Digital Academy will train more than 6,000 Public Service officers. We hope to offer about 95 training programmes within the first year. And I will also put in a request for Members of Parliament, those of you who want to attend these courses, please email me, and I might even try to persuade the Prime Minister to do an introductory course on C. I have not asked the Prime Minister yet.

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I share Miss Cheng Li Hui’s concern that it is critical for our public officers to carefully handle classified information in order to maintain public trust. All officers will undergo an annual data security programme, so that they know their responsibilities and how to safeguard the data that they handle in the daily course of activities and we will also remind our officers of the severe consequences of mishandling data.

I agree with Ms Hany Soh that the Government plays a critical role not only in shaping the national digital infrastructure but also the processes and the thinking and the mindset around it. Just like physical infrastructure, we must commit to ensuring that our digital infrastructure, in both the hard and software side of it, is top-notch globally. The question on 5G rollout will be handled by MCI later. But even in that area, we will make sure that we are at the leading edge of the world and, both in terms of security and efficacy, we will be there.

Ms Tin Pei Ling asked for an update on the national digital identity. I am glad to report that SingPass now provides seamless and secure access to over 1,400 digital services by 340 agencies, including private sector organisations, like some banks and insurance companies. The number of users of SingPass Mobile has grown. It was one million users in March last year. It is now 2.4 million users today. We will be looking to extend the benefits of our national digital identity platform and to enable easier access to e-services beyond our shores, and we are embarking on pilot projects with Australia and Shenzhen, China.

I agree with Mr Sharael Taha that the Government's digital services must be secure, must be inclusive and must be personalised. We have introduced the SingPass two-factor authentication (2FA) modes to ensure that SingPass remains not only secure but accessible and especially to the elderly and vulnerable groups, especially those without mobile phones. And these include the latest use of Face Verification so that people can use Face Verification as a second factor and this will be based on matching their images against a verified database held by ICA. Individuals can also opt to have their SMS one-time password sent to a trusted family member so that they can still have the benefit of security and the help of a trusted family member.

We are consolidating information and services for our citizens under the one-stop LifeSG app. If you have not used it, please go and check it out. More than 250,000 people have already downloaded the app, and they can access a personalised dashboard of services to more than 70 Government e-services. Users can also view the Government benefits and support relevant to them, such as GST Vouchers, Pioneer and Merdeka Generation MediSave top-ups and, soon, including the benefits that have been announced under this current Budget.

We are also improving our digital services for improved productivity and, next quarter, GoBusiness will launch an e-Service Navigator to provide our businesses easy access to over 300 Government e-services. But more importantly, this is also an opportunity to re-engineer our processes and make Government services more suitable and facilitatory to all our businesses.

We have harnessed digital technology also to create more energy-efficient and water-efficient homes, and you will be aware of some further announcements on smart meters in both energy and water.

Mr Alex Yam has emphasised that partnership is key, and the Government and financial sector are, indeed, in fact, a very good example where this partnership has borne fruit. Compared to a year ago, we have a 31% increase in PayNow mobile users. Today, we have than 2.7 million users, and PayNow transactions have more than doubled in this one year. No doubt accelerated by COVID-19 and the aversion to handling cash.

Another example is the Singapore Financial Data Exchange which has enabled us, as individuals, to retrieve a consolidated view of all our personal finances, using either the MyMoneySense portal or a mobile banking app. Actually, if you have not checked this out, it is a big deal because it allows data sharing which has historically been very difficult to achieve because you get a direct overview of all your financial statements and bank accounts. But you can imagine the security needed to enable that to happen. And this was enabled because we have central digital infrastructure riding on SingPass and MyInfo and the relationship the Government has had with the banks and our role as a neutral, trusted party to enable this kind of sharing and this kind of utility to occur.

I want to also thank the 150 Smart Nation Ambassadors who, even in the midst of the difficulties last year, volunteered to help promote the use of digital technologies, including TraceTogether. Later this year, we will be convening a citizens panel to explore how we can improve the design of our digital services.

So, let me conclude, COVID-19 did not change history but it has accelerated both the need and the opportunities arising from the digital revolution. Our Smart Nation Initiative has put us in a good position to seize the moment and to prove that we can and do solve real-world problems quickly and to differentiate ourselves in the post-COVID world.

The Chairman: Any clarifications? Ms Jessica Tan.

E-payments

Ms Jessica Tan Soon Neo: Mr Chairman, COVID-19 has provided the impetus for many Singaporeans and businesses to adopt the use of e-payments.

E-payments make real-time payments between individuals; consumers and business; or business-to-business convenient, seamless and fast. It takes away the need and the risk of carrying and handling cash, saving time and effort, and is safer. There are clear benefits of using e-payment and we have been helping our residents as well as businesses in using and adopting e-payments.

But we do still receive requests and feedback to ensure that e-payment does not become the only mode of payment, Because there are segments amongst our residents and even small businesses that prefer to continue to use physical cash. A case in point is that, during COVID, the bank branch in our constituency was closed. You would not believe the number of emails and requests I had to talk to the bank just to get the bank to open and there were long queues. I was sent photographs of long queues at other bank branches near our constituency that residents needed to go to. So, clearly, there is anxiety and people like to still handle cash and there is also anxiety about security. This has been conveyed. So, I would like MAS to give us an update on whether Singapore residents have been more receptive to e-payments in the past year, albeit that COVID-19 would have driven some of that. But what steps has MAS taken to ensure that the less digitally savvy amongst us are not left behind?

Option for PIN-only Bank Cards

Mr Dennis Tan Lip Fong (Hougang): Mr Chairperson, there has been a concerted effort to educate and encourage all seniors to go digital. While such projects, like Seniors Go Digital and Hawkers Go Digital, are highly commendable, there must be the awareness of the gap between the availability of technology and the people using it. Contactless payments through credit and debit cards have recently become the norm in Singapore, at retail merchant outlets and even in buses and trains since 2019.

Until recently, NETS relies on a PIN for verification since its inception in 1985. Recently, though, NETS has pushed out their new contactless card with similar operating principles for contactless cards as international scheme debit cards. This has led to some worries among the elderly. While contactless payment has made payments easy, senior citizens are more vulnerable to scams. The spike in bank account debit and credit-card scams in recent years has also made the elderly concerned over losing their hard-earned money in these scams. One of my elderly residents was told by DBS that all new cards will be contactless and they will not allow any card requiring PIN for all transactions. He contrasted DBS' services with OCBC's which, he said, provided a debit card which is digitally rendered non-operative by default unless so activated by the customer.

Mr Chairperson. I understand that Singapore uses a chip and signature system in verifying payments through debit and credit payments. Many European countries, on the other hand, have implemented a chip-and-PIN authentication system. Such a system may be a good guard against attempts at fraudulent payment scams targeted at debit and credit cards. Indeed, we have seen an increase of such cases in the recent one to two years, and many against our senior citizens.

I would like to urge MAS to explore having a chip-and-PIN debit card or a PIN-only NETS-enabled ATM bank card only meant for domestic payments that are issued to senior citizens. Such cards can provide an added layer of defence to senior citizens against any fraud or scams.

The Chairman: The last I checked, I am still a Chairman. So, please feel free to use that term. Ms Sylvia Lim.

Mr Dennis Tan Lip Fong: Apologies!

Scams Involving Bank Customers

Ms Sylvia Lim (Aljunied): Chairman, Sir, it has been heart-wrenching for us in this House to see our residents being scammed of their hard-earned monies. Many are elderly and have little avenue to earn money lost.

As Singapore moves towards widespread adoption of digital payments, the risks are heightened. As the money scammed are usually transferred from bank accounts, what role should banks play in trying to minimise the risks for vulnerable customers? It does seem that different banks may have varying requirements when it comes to transactional security. Therefore, I welcome the recent consultation paper by the MAS on a proposed notice on identity verification. This will mandate the types of information financial institutions must use to verify the identity of an individual for non face-to-face contact.

I wish to follow up on a suggestion made by the former Member of Parliament for Hougang, Mr Png Eng Huat, during last year's Committee of Supply of offering an option of a cooling-off period for inter-bank transfers. Has the MAS considered this and could it be implemented?

On vulnerable customers, there was a Business Times article last weekend by David Hardoon, a former special adviser to the MAS. He noted that some financial institutions were using AI and psychometrics to help predict which customers might be more susceptible to scam attacks. This would assist in developing bespoke advisories and training programmes to help inoculate such customers from falling prey to scams. To what extent is the MAS working with banks on this?

Finally, I would like to make an observation regarding the freezing of scammed monies in bank accounts in Singapore. In response to my Parliamentary Question in January 2021, the Minister for Home Affairs said that where the suspect was not arrested, a Court order was needed to return the money to victims, which process might take at least a year. As such a delay could cause serious hardships, could the agencies and banks work on a more expedited process?

Strengthening Anti-Money Laundering Efforts in Singapore

Mr Murali Pillai (Bukit Batok): Mr Chairman, being an international financial centre, Singapore-based banks must remain vigilant in the fight against fraud and money laundering.

In the recent past, there had been an exponential increase in dollar value of white-collar crime that has impacted on the banking system.

In the commodities trade sector, Singapore has been rocked by trade financing fraud that has led to multi-billion dollar exposures to banks. Some banks have withdrawn services from this sector totally. Traders with legitimate businesses suffered a hit as it would be more difficult for them to get credit lines.

In a response dated 5 October 2020 to my Parliamentary Question, the hon Senior Minister stated that the fraud cases have been attributed to weak disclosure practices and internal controls on the part of the companies.

What is concerning though is that, despite these weaknesses, banks have extended credit lines to such companies. On the part of the banks, there should have been more robust credit risk assessment of the companies. There should be more checks, apart from just relying on paper-based processes, as they are more susceptible to the risk of fraud. The impact of the banks’ lack of diligence is not just felt by the banks in question but the entire eco-system.

Banks regulated by MAS play a key role in preserving the integrity of our financial system. They are, in fact, required to guard against the use of their operations to facilitate any illegitimate activity, including fraud and money laundering. Failure to do so can have a serious impact on businesses and affect Singapore’s reputation as a premier international financial centre.

May I ask whether MAS has conducted a review of the banks’ actions against their regulatory requirements? How will MAS ensure that banks will take their responsibilities seriously in preventing fraud and anti-money laundering, especially in the context of fraud amounting to billions of dollars?

Even as Singapore grows in strength and stature as a financial centre, we need to make sure that our growth is rooted in a strong enforcement regime where all stakeholders are held firmly to their regulatory duties.

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Ensure Fair Value of Insurance Policies

Mr Derrick Goh (Nee Soon): Mr Chairman, the support given by MAS through the six-month moratorium on the payment of insurance premiums has been helpful, but it will end by 31 March 2021.

We are likely to see more residents not being able to continue to pay their insurance premiums as the economy will not recover so quickly, including the unevenness of growth expected to continue across economic sectors.

Residents in such cases may have no choice but to terminate their policies or sell them to third parties. It would be good if MAS could consider ways to help citizens who have to sell their policies to third parties to get a fairer value, especially under such challenging times, through better price discovery from the secondary market that is currently unregulated.

Driving Environmental and Social Outcomes

Mr Desmond Choo (Tampines): Mr Chairman, I have spoken on the value of gender diversity in the workplace and the value of a diversified board.

Climate change is a global emergency, requiring efforts from all companies. How they invest and conduct their business is a powerful lever in supporting Singapore’s Green Plan 2030.

Can the Ministry consider mandating gender diversity and green investment board disclosure for listed companies? This can allow investors to shape their investment towards our gender diversity and sustainability aims. We already have mandatory sustainability reporting. We can go further by companies report on their green investment and footprint. For gender diversity, we can look at efforts by the Board to diversify itself.

Can the Ministry also support a corporate-led movement similar to Bloomberg’s Gender-Equality Index? It tracks the performance of companies committed to disclosing their efforts to support gender equality.

SGX Sustainability Reporting

Mr Leon Perera (Aljunied): Mr Chairman, the MAS-regulated Singapore Stock Exchange currently has a "comply and explain" policy on sustainability reporting for its listed companies, which was first announced in 2016. It presents a range of internationally accepted standards which companies are encouraged to choose and follow, but are not mandatory. This has resulted in inconsistencies in reporting methods, quality in data disclosure and, hence, rendering the reports ineffective due to lack of comparability amongst the listed companies. It could also lead to greenwashing. According to an NUS study done in 2019 on sustainability reporting, there are clear differences in the sustainability reporting performance among different industries.

Perhaps we could move from a "comply and explain" to a mandatory regime, as some other major exchanges have done. Studies are needed to determine the best frameworks to align with, such as GRI, TCFD, SASB, and so on, and we could also add industry-specific frameworks, such as RSPO.

But more broadly, can MAS share its plans to improve SGX's sustainability reporting policy to ensure quality and comparability of sustainability reports and provide support for SMEs to encourage sustainability reporting?

The Chairman: Minister Ong Ye Kung.

The Minister for Transport (Mr Ong Ye Kung): Mr Chairman, on behalf of Senior Minister and Minister-in-charge of MAS, Mr Tharman Shanmugaratnam.

Let me start by addressing the issue of public trust, which is the bedrock of the financial services sector. I will then talk about two important medium term developments for the sector asked by Members. One is e-payments and, two, is promoting greater social good, such as sustainable development.

First, it is absolutely important for us to preserve and enhance the trust in our financial system. Ms Sylvia Lim asked if banks can work with the Police for more expeditious return of monies belonging to victims of scams. This is, indeed, a concern, especially when scam cases are on an uptrend. The banks have various measures to protect consumers. There are various caps, daily transaction limits, ATM withdrawal limits, contactless payment limits.

Ms Sylvia Lim asked whether there could be a cooling-off period, but it is really not so practical. The cooling-off period applies more in circumstances where you buy something and you find that it was an impulsive buy, you return it and you get your refund. But for day-to-day transactions, I think there are serious practical limits to impose a cooling-off limit. But I think the most important safeguard is to practise good cyber hygiene and take personal precautions.

So, for consumers, this means updating security patches and anti-virus software on your electronic devices promptly; and never giving away online banking login credentials, whether it is your user IDs, OTPs and PINs, to anyone. This includes not responding to seemingly legitimate requests for your personal and banking information, whether via email or SMS. No matter how genuine they look, never give that away.

The Anti-Scam Taskforce under the Association of Banks in Singapore (ABS) has a specific workstream focusing on educating the public against scams. The Anti-Scam Centre under the Police, works closely with banks to freeze the bank accounts of recipients of scam monies to enable police investigations. However, once prosecution commences, it will be the Courts that decide when the seized monies can be returned, depending on factors, such as whether seized monies remain relevant for the purposes of investigation or trial. MAS understands and shares Ms Lim’s concern, and this is something we will have to consult the Police to see what is possible.

Mr Murali Pillai asked about fraud prevention and anti-money laundering efforts in the commodities trading sector. MAS is working closely with other Government agencies on this. This includes strengthening banks’ credit risk assessment on firms in the sector, and digitalising trade financing to reduce fraud risk.

ABS, with the support of various Government agencies, has issued a code of best practices to enhance commodity financing standards in Singapore. It covers the trading companies’ corporate governance, risk management and disclosure practices. Banks will use it to set standards for lending and this will be fully implemented by July this year.

MAS is also working with ABS to establish a secure central database for banks to access records of trade finance transactions in Singapore. This will enhance transparency of transactions and mitigate the risk of duplicate financing.

Mr Derrick Goh asked about surrendering of insurance plans and secondary trading of insurance policies. In 2020, despite the economic recession, the number of policies surrendered hit a five-year low of 153,000, representing 0.9% of total in-force policies. This is partly due to the industry’s COVID-19 relief measures, which allow customers to defer paying for premium up to six months. The applications for premium deferment have since fallen sharply by 80% between Q2 and Q4 of 2020.

We should note not all policies surrendered are due to financial hardship. Some policyholders choose to terminate their policies because they no longer serve their needs. Whatever the case may be, it will benefit policyholders to be able to sell the policy in secondary market, which typically fetches a higher value.

Let me now talk about a couple of key developments in the financial sector, starting with e-payments. Ms Jessica Tan has asked for an update and expressed some concerns.

So, let me state at the outset we cannot be dogmatic about this. We are promoting e-payments because it is efficient, convenient and green, but we are not aiming to be a cashless society. Cash will continue to be a familiar and convenient way to transact, as Ms Jessica Tan has experienced. The adoption of e-payments by Singaporeans has been steadily increasing in recent years. The COVID-19 pandemic and the rise of e-commerce have accelerated this trend.

Registrations for PayNow, for example, rose by 1.6 million last year, bringing the total number of registrations to 4.9 million. Registrations for PayNow Corporate doubled last year to around 240,000 business users. This means that 80% of residents and businesses are now on PayNow. This has driven PayNow transaction volumes to over $5 billion for the month of December 2020, which is double the volume a year ago. We expect this growth to continue, as users can now also send and receive PayNow transfers via non-bank e-wallets, such as GrabPay and Singtel Dash.

Adoption of QR payments by merchants has also surged. There are 200,000 SGQR labels islandwide, with 120,000 deployed in 2020 alone. And as more people switch from cash to e-payments for their day-to-day transactions, the usage of cheques has fallen. The ratio of cheque volumes relative to e-payment volumes has dropped from 32% in 2016 to 18% in 2019 and then 12% last year. The absolute number of cheques used fell by a record 10 million in 2020.

Similarly, the ratio of ATM cash withdrawals to e-payments has also been falling, from 47% in 2016 to 24% in 2019, to then 17% last year. These ratios should decline further as more people get used to accepting e-payments. And there are Singaporeans who are less familiar or face difficulties with e-payments and we will not leave them behind.

The “Seniors Go Digital” initiative – Members are familiar – helps seniors acquire skills to transact digitally. Seniors can receive personal lessons at SG Digital Offices around the island and they will be handheld, people will guide them, and I believe MOE is still pressing ahead to equip every child with a bank account and digitally-enabled bank account.

Furthermore, it is important that cash continue to be widely accepted in Singapore. There will continue to be ATMs and cash withdrawal points across our island. Today, there are 4,100 of these touchpoints, compared to about 3,700 five years ago.

As for PIN-only bank cards requested by Mr Dennis Tan, the local banks do offer customers the ability to disable the contactless feature of their ATM and debit cards, or the option of ATM cards without the contactless feature at all. We are not aware of any bank's initiative to do away with PIN numbers. We will remind the banks to explain this option to customers who may need it.

Another significant development in the financial services sector is the evolution of its role in promoting the larger social good. In this regard, Mr Desmond Choo and Mr Leon Perera asked about disclosures and sustainability reporting.

We share the Members’ desire to see companies providing high-quality reports on their efforts to promote sustainability and in social contribution. We also want to see continued improvements in how our companies disclose their broader social and environmental impact, on top of their financial performance. Such disclosures are important, especially given the heightened social and environmental consciousness amongst investors. It will facilitate capital flows towards investments more aligned to the investors’ preferences, objectives and standards.

Since 2016, Singapore Exchange Regulation (SGX RegCo) has required SGX-listed companies to disclose material environmental, social and governance (ESG) risks and opportunities that could influence the decisions of investors. These include information, such as greenhouse gas emissions, skills and gender diversity of senior management and their board members. In addition, the Code of Corporate Governance requires listed companies to disclose their board diversity policies, one aspect of which is gender diversity, and the progress in implementing the policies.

For financial institutions, MAS has set out its expectations with respect to the governance, management and disclosure of environmental risks. These disclosures are in accordance with international reporting frameworks, such as recommendations by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).

Notwithstanding that, in certain areas – and as pointed out by Mr Leon Perera – such as in the area of environmental sustainability, current corporate disclosures are still not where they need to be, because international standards are still evolving. The basic problem is that there are various sustainability disclosure standards globally. So, this reduces the reliability, consistency and comparability of ESG disclosures across jurisdictions and even sectors. That undermines the purpose of the disclosures, which is to facilitate capital allocation decisions across competing investments.

MAS and SGX RegCo are, therefore, carefully studying international initiatives on harmonising sustainability disclosure standards. One major initiative happening is that significant international standard setters are now coming together to develop unified global standards and we will monitor the developments closely.

SGX RegCo will be consulting this year on enhancements to its sustainability reporting requirements. It will incorporate recommendations from the TCFD. In the meantime, MAS and SGX RegCo will continue to work with the Singapore Institute of Directors to help boards raise their sustainability reporting standards.

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Mr Chairman, to conclude, let me say this. As an international financial services centre, Singapore can contribute to the global climate change movement by mobilising capital towards low greenhouse gas emission solutions and climate-resilient development. These can be investments in renewable energy generation, battery technology, carbon-efficient and food production methods, so on and so forth. The ability to achieve this and not disclosures alone, is what will move the needle and make a significant impact that is beyond Singapore.

Some observers have noted that in the recently announced Green Plan, not all the initiatives and targets are new. It is a fair and accurate observation and, in fact, it is only right that the Green Plan comprises existing as well as new initiatives. Because, as a nation, we have been implementing strategies to preserve our environment and combat climate change for many years. What the Green Plan does is to try to consolidate and synergise all that we are doing, all that we are planning to do, and elevate their importance.

Each initiative under the Green Plan is a major multi-year undertaking. For MAS, our strategy is to develop Singapore into a leading centre for Green Finance and that was announced in November 2019. If we can successfully mobilise capital and new investment into the green economy, we can bring about a virtuous cycle of economic growth, creation of jobs and opportunities that are environmentally sustainable. In the coming years, we will need to work very hard with the industry and all our partners, to build environmental risk resilience into the financial system, of which, quality disclosures play an important part; expand green finance solutions and markets; and leverage innovation and technology. The work is cut out for MAS and the financial services sector. Thank you, Mr Chairman.

The Chairman: Any clarifications? Order. I propose to take a break now.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker: Order. I suspend the Sitting and will take the Chair at 6.35 pm.

Sitting accordingly suspended

at 6.17 pm until 6.35 pm.

Sitting resumed at 6.35 pm.

[Mr Speaker in the Chair]

Debate in Committee of Supply resumed.

[Mr Speaker in the Chair]

Head U (cont) –

The Chairman: Head U, Prime Minister's Office. Miss Cheng Li Hui.

Population Policies

Miss Cheng Li Hui: Sir, since the Marriage and Parenthood package was introduced in 2001, there has been few rounds of enhancements, with the latest enhancement in 2019. However, this has not arrested the declining Total Fertility Rate, or TFR. Singapore’s TFR is at our historical low.

The low TFR is not a situation unique to Singapore alone. For example, South Korea’s TFR fell to 0.92 in 2019. This is likely due to changing social norms and values, as many continue to prioritise their careers over marriage and parenthood.

In the Parenthood survey that I mentioned in my Budget debate speech, there was question: "What would encourage you to have more children?" Some answered “Nothing”, “I want my life back”, “Enough”, "My parents are getting too old to help."

Others said, "Trusted care-givers such as grandparents", "infant care near home and work", "I must have time for each child."

But it would seem the Government have a tough job encouraging some couples to have more children.

Given the on-going COVID-19 situation, Singapore’s TFR may dip in the near term. As young couples may choose to defer their marriages due to safe distancing capacity limits imposed on weddings. Uncertain economic conditions may also cause couples to postpone their child-bearing plans. Overall, this would impact our immediate marriages and fertility outcomes. Hence, I would like ask the Minister for an update on the impact of COVID-19 on our marriage and TFR numbers.

I would also like to ask the Minister on whether the Government plans to review its existing strategies to encourage more Singaporeans to marry and have children, especially given changing life priorities and societal values.

Population Strategies

Ms Denise Phua Lay Peng (Jalan Besar): The TFR for resident Singaporeans stands at 1.14 as at 2019, the lowest registered in Singapore so far. But the developed countries all over the world struggle with low birth rates.

A case in point is South Korea which has TFR lower than Singapore. Since 2006, South Korea was reported to have spent almost US$250 billion on mostly cash schemes such as medical subsidies for pregnant ladies, cash for each baby born and for raising the child till he was one, and monthly allowance for families with children under seven. However, South Korea still has a very lacklustre track record in terms of TFR, mainly due to the lack of desire to marry amongst the young people and also, their decision for alternate lifestyle choices.

It is obvious external outside-in strategies such as cash incentives are insufficient and they would have to be balanced with a strong dose of inside-out effort to shift social mindsets.

I seek the consideration of Government to the following suggestions to both increase TFR and our resident Singapore population.

One, to encourage earlier marriage, consider offering support and grants to organisations with larger staff sizes and especially gender-dominant sectors like nursing, teaching, the army, to create opportunities, dignified, respectable opportunities for interaction; for example, in sports, in learning, or in forming interest clubs.

Second, also to encourage parenthood for those who are married, consider the following measures. For couples are willing and able to conceive, introduce even more generous housing priority benefits. Consider second timers, for example, for HDB flat priorities and also assure couples and all of this Interim Rental Flat that they will need before they get their flat. Consider providing free universal infant care and child care up to the age of seven.

And next, for couples who are willing and unable or find difficulty in conceiving: one, provide a greater range of support measures of fertility care and education; two, study carefully and consider addition of new fertility techniques such as egg freezing into the slew of assisted reproduction measures.

And for couples who are able to conceive but are reluctant or unwilling, provide respective and effective platforms for more inside-out education and sharing – dare I say, counselling – services for them to consider parenthood. And next, on the immigration policy of Singapore, through better supporting transnational families with one Singapore Citizen parent. Sir, I am deeply empathetic to residents of mine who are affected by the very strict and I know well-intended immigration decisions of our Government.

Qin Hao, the stepson of my resident, came to Singapore only in his teens when his mother remarried here. He cannot speak very good English, but a really good boy. He tried very hard to catch up with his English proficiency and worked very hard in school and later went to ITE. He was a diligent community volunteer. I helped support part of his ITE education but alas, when he reached 21 years of age, he had to leave Singapore. His mother, brother and stepfather are all Singaporeans. They are separated.

In other families, foreign women either widowed or abandoned by their Singapore spouses with children, are not assured of their stay in Singapore when they apply for PR or Singapore Citizenship, due to our strict migration policies. They have either a mix of children born locally and/or children from their past marriages.

I seek Government’s careful consideration to include them and their children as resident Singaporeans. The burden and stress they have to pay, sometimes in the form of very high school fees and healthcare costs, should be relieved. I propose that there be more flexibility and leniency in granting both PR and citizenship to families such as them.

National Population and Talent Division

Ms Hany Soh: Chairman, I would like to explore whether it is possible to provide more support to first-time parents, not just the financial support but also what else we can do to relieve their stress and feelings of helplessness during pregnancy and after the birth of their first-born. In particular, can we explore an initiative to develop a milestone booklet, akin to a baby's health booklet, to be provided to expecting couples, to track expectant mommies' well-being and to share useful information useful information by health practitioners regarding the necessary preparations for each stage of pregnancy, the parenting best practices and a list of supports systems available to all parents for the first few years of their journey into parenthood.

There is a similar concept found in Taiwan where it is called the "Maternal Health Handbook", 孕妇健康手册, which tracks the expecting mothers physical and emotional development. Some examples of what I envision could be in our Singapore's version would include items such as a checklist of vaccinations required for expecting mothers, recommended dates to sign up for prenatal classes, a checklist of items to prepare for the arrival of the baby, along with tips on how to spot signs of labour or postnatal depression symptoms and where to seek support in this regard.

Childcare Sick Leave to Help Total Fertility Rate

Mr Louis Ng Kok Kwang (Nee Soon): Singapore’s Total Fertility Rate (TFR) is at a dismal 1.14 births. We have tackled this from a financial angle by various schemes to lower the cost of having children. However, in addition to financial constraints, time and stress are common concerns I hear from parents, especially those thinking about having a second child.

While some of us have the luxury of working from home, COVID-19 has also shown us the limits of this for certain groups of essential workers. For them, childcare sick leave is critical for juggling the demands of work and parenthood. I have spoken up about this previously.

It has been more than a decade since childcare leave provisions were increased. Will PMO consider having specific childcare sick leave and providing this on a per child basis?

The Public Service already gives officers childcare sick leave and it is on a per child basis. If the Government feels that childcare sick leave is important for the people who work for us, then why is it not important for the people we serve? Let us level this playing field.

COVID-19 Effects on Our Population

Ms Ng Ling Ling (Ang Mo Kio): Mr Chairman, in January this year, fellow Member of Parliament Mr Louis Ng raised an Adjournment Motion on “Providing more help for those undergoing IVF”. Yesterday, Member Miss Cheng Li Hui also spoke about Assistive Reproduction Technology (ART) and fertility health yesterday. I too relate with the topic because of residents who have shared with me their struggles.

Based on the Department of Statistics data, the highest marriage rates among males and females in Singapore has grown to 30 to 34 years old in 2019, an increase of about five years from a decade ago. This means that more couples are getting married at a later stage of their life.

With economic uncertainties due to the COVID-19 pandemic, like Miss Cheng Li Hui, I will not be surprised that some couples may decide to delay their marriage and may unknowingly be set back by fertility issues when they plan to have children later at an older age.

The Government's move from last year to remove the age limit of 45 years old for women undergoing ART procedures, as well as the cap on the number of IVF cycles a woman can undergo will certainly help sub-fertile couples.

6.45 pm

Yet, as recent as last week, I still have a discouraged couple who shared with me their emotional and financial concerns after numerous failed attempts in ART. Given that the Total Fertility Rate has remained low and may worsen due to the pandemic and economic downturn, I would like to ask what other strategies the Government will consider to help young people understand more about fertility health earlier in their life, to better make their marriage and child-bearing plans.

The Chairman: Ms Carrie Tan.

Maternity and Paternity Leave Enhancement

Ms Carrie Tan (Nee Soon): Chairman, Sir, I shall not belabour the point about Singapore's dismal Total Fertility Rate (TFR). What I do wish to emphasise is the reasons why we do not have enough babies and propose some measures to help bring the numbers up.

Number one, unequal care load between the men and women. Singaporean women struggle to juggle work and care in a large part due to the lack of men's involvement in parenting. Utilisation of paternity leave is at 53%. And fathers that I have spoken to express a spectrum of challenges, ranging from, "I don’t feel that I add much value at home because the baby only wants mommy" or "If I take leave, I will have a pile-up of work. It is even more stressful" or "I still need to bring the bread home."

This is consistent with studies that NPTD has done, which brings us to major factor two – high work stress, no time and energy due to demands at work, make couples decide on having less children than what they would like to.

And such resistance to taking paternity leave, made worse by workplace demands makes it necessary for stronger Government measures. My proposal is to mandate the 50-50 sharing of the current childbirth leave.

Currently, mothers receive four months of maternity leave, two months of which are subsidised by the Government. And this has the unintended impact of discriminatory hiring by companies who hesitate to hire women especially those who are newly married, for fear of having to bear the financial and operational costs of paid maternity leave for four months.

To ensure higher usage of paternity leave, the Government can mandate that the four months be split half and half between mom and dad, with each of the employers getting subsidised for one month by the Government. This will have an equalising effect on hiring and firms will find it easier to manage the absence of a staff for two months instead of four.

Mandating paternity leave by law, and making the one month of Government subsidy only available to both firms respectively if fathers fully utilise their paternity leave, will also compel companies to be supportive of their employees taking leave in the months post-birth.

To sweeten the deal for fathers, I would like to venture that the Government may want to also offer fathers income tax reliefs which are currently given to mothers, if paternity leave is fully utilised. Of course, we need to provide infant care courses for dads as it will be helpful to help fathers step up better and also set mothers' minds at ease.

With such measures, we can create in time a norm in societal expectation for fathers to be present and involved in the first months of an infant's life, and subsequently as the child grows. Studies have shown that fathers who have a close relationship with their children contribute to their sons growing up with an increased inclination to be involved dads themselves.

If we want to cultivate a more positive mindset towards marriage and parenthood in our future generations, we need to ensure equal sharing of the load of care. And the time is now for us to set a new norm.

Corruption in Singapore

Mr Pritam Singh (Aljunied): Mr Chairman, a Straits Times article in December last year provided a snapshot into the state of corruption in Singapore today. One of the opening lines was, and I quote, "Many people are heedless of the corruption that exists in squeaky clean Singapore, but graft remains prevalent."

Over the last three to four years, the number of high profile corruption revelations have come to light.

In 2018, two Chinese Nationals, both of whom were forklift drivers were charged for collecting multiple bribes of $1 in exchange for not delaying the loading and unloading of vehicles. Both drivers were fined and jailed between two to four months.

An equally significant case came to light this year when a brother and sister were handed jail terms close to the maximum five years for conspiring to secure tenders for two companies in China and receiving in excess of $2 million in bribes. The case was significant because a substantive part of the offence was committed outside Singapore. But because the Prevention of Corruption Act applies and has extraterritorial effect, the message was a clear one. Corruption committed by Singaporeans and Singapore corporate entities are not condoned anywhere in the world.

Yet, the remark of graft remaining prevalent in our paper of record, no less, is a matter of concern. While the Government is busy determining how best to reset the economy and put Singapore ahead of the pack when the post COVID-19 recovery begins, the core Singaporean value of a no-nonsense attitude towards corruption needs to be restated more forcefully. At stake is the reputation of the Singapore brand in a world where competition is stiffening and strong sustained growth harder to come by for a mature economy like ours. The goodwill and confidence generated for high quality investments by a strong emphasis against corruption through the Singapore brand cannot be understated.

CPIB be cannot afford for Singaporeans to be heedless of the corruption that exists in the country and double down on public education of its work. In the Minister for Law's Parliamentary speech last November, the Minister spoke of the zeitgeist that is being felt worldwide with many societies grappling with debates about inequality and the sense that the elites are bending the rules and systems to their own advantage and that the structures are unfair.

Sir, to this end, it would be useful to recall some high profile cases that have been splashed across our newspapers in the years past involving people in high places.

The Keppel Offshore and Marine or KOM scandal come to mind as does the CAD raid of S-League clubs and the Football Association of Singapore, which saw the arrest of our former Member of Parliament allegedly involved in $0.5 million donation to the ASEAN Football Federation.

I understand that investigations can take some time to complete but in view of the profile of the latter two cases in particular which involve people have some status, there is a real public interest as to why these matters have not closed yet. In the public mind, the inordinate delay in investigations is commonly juxtaposed against the publication of names, images and details of individuals splashed prominently in our papers, involving relatively petty amounts that constitute corruption like the $1 bribe, and rightly so.

To address public talk of inequality and double standards or perceptions of the same, it would be important for the CPIB and investigatory authorities to consider interim updates in view of the length of time that has elapsed since the news of the investigations broke. In the Keppel case, many remain perplexed why the authorities are taking so long to complete investigations, especially in light of Keppel officials who have been anonymously fingered in publicly available US Department of Justice documents.

In November 2019, Keppel Offshore and Marine's lawyer who admitted to drafting contracts to make bribe payments was sentenced to a year's probation and fined $75,000 in the US. Although a US citizen, the district judge allowed the lawyer in question to serve his probation in Singapore where he resides with his wife. What is holding up the investigations into the Keppel matter? Because it does not seem fathomable that the company can admit to offences but at the same time, there is insufficient evidence to lay at the feet of senior Keppel officials thus far.

Separately, when can the public anticipate a closure to the FAS matter?

And finally, I call on the Government to amend the Prevention of Corruption Act to raise the penalties for corruption.

Updating Prevention of Corruption Act

Mr Murali Pillai (Bukit Batok): Mr Chairman, Singapore has a well-known reputation of being a jurisdiction that is tough on corruption.

Transparency International (TI) Corruption Perceptions Index (CPI) 2020 ranked our country as being the third least corrupt country in the world. Singapore is the only Asian country to be ranked in the top 10.

This hard-earned reputation and result are due in no small part to our men and women in CPIB. They deserve our gratitude for keeping corruption in check and ensuring that no one is exempted from the long arm of law even though the investigations can be difficult, arduous and may even take time.

In the 2018 Committee of Supply debate, I suggested that the main tool of the CPIB, the Prevention of Corruption Act (PCA), which was last reviewed more than 30 years ago, be updated to ensure that CPIB will continue to be able to handle the evolving challenge of corruption, in particular, cross-border corruption.

Some of the areas I suggested looking into include expanding the extraterritorial reach of PCA to include corporations incorporated in Singapore; to update the punishment provisions, especially with respect to corporations, and to consider enacting a provision similar to the UK Bribery Act; which is to make it an offence for corporations that fail to prevent the commission of bribery.

The hon Minister in the Prime Minister's Office, in response, stated that a review was being undertaken.

Three days ago, CPIB issued a press statement highlighting the charging of three former employees for bribery in which the value of the subject is about $200 million. It seems to me that this case is a timely reminder of the need to review the PCA provisions to ensure that the punishment provisions serve as an effective deterrent.

One further area which I wish to highlight for review is to statutorily provide in the PCA the attribution of company employees' corrupt actions to the company so that the company can be held liable and can be taken to task under the PCA in appropriate cases too.

As three years have passed, I will be grateful for an update of this matter.

SGUnited, Employment and Re-Employment

Mr Patrick Tay Teck Guan (Pioneer): The COVID-19 pandemic has hit our economy very hard. Although latest figures show some improvement in employment levels at the end of last year, we are certainly not out of the woods. The external economic environment remains uncertain and the recovery of the labour market will take time.

In particular, the Labour Movement is concerned about the challenges faced by workers in the impacted sectors. We are also very concerned about segments of the workforce, in particular, the mature Professionals, Managers and Executives (PMEs).

These employment challenges triggered by the COVID-19 pandemic accentuated what are already longer term trends and challenges facing workers, which is that technological changes are reshaping jobs, creating new jobs and also taking away the need for other jobs, which can be automated or done with fewer workers due to digitalisation.

Even without the challenge posed by COVID-19, it is challenging for workers to maintain their employability throughout a longer career span going forward. While workers need to be open to learn new skills, we also require employers to look ahead and identify the job changes and invest ahead in retraining, before the job changes happen.

The Public Service is a significant employer. I would like to ask the Minister in charge of Public Service, how the Public Service can step up to support local workers, especially those from hard hit sectors, with job opportunities. How has been the progress in the public sector's SGUnited Jobs and Skills effort?

The Public Sector is also a significant sector, which has launched its own "ITM" in the form of the Public Sector Transformation movement. I like to ask how is the Public Service planning to ensure that its officers continue to have the pre-requisite skills and can retain their employability, as jobs are being reshaped in the transformation process? In the same vein, how is the Public Service taking the lead in enhancing the employability of older officers? With the current weak labour market, is the Public Service continuing with its earlier commitment to extend retirement and re-employment ages ahead of time?

Public Service Transformation

Mr Melvin Yong Yik Chye (Radin Mas): In my Budget debate speech, I highlighted how the two phenomena of work-from-anywhere and work-from-home, will result in Government having to fundamentally re-assess long-held policy beliefs.

In the face of such rapid global transformation, we need to ensure that our Public Service remains agile to respond to these changes. Our public officers will need to remain adaptable through constant upskilling and new experiences, so that they can serve Singapore effectively in the new normal.

I would like to ask what is PSD's plan to ensure that our public officers of today will be ready to take on the challenges for tomorrow. How will our Public Service tap on the potential of new technologies, such as artificial intelligence, 5G, and autonomous robotics?

For our Public Service leaders of tomorrow to effectively drive transformation in Ministries and Statutory Boards, we need to ensure that we groom officers from a wide variety of background. While the Public Service has committed to recruit talents from both the private and people sectors, more can be done to send more officers on external attachments to acquire fresh perspectives, including to the Labour Movement. How many public officers have been seconded to the private and people sectors? Can PSD set a target for key sectors, such as education, health and trade and industry?

7.00 pm

Sir, in the new normal, with increased life expectancies, how does the PSD plan to extend the lifelong employability of our public officers? Are our Public Service schemes ready for the day when more Singaporeans live beyond 90 years?

Lastly, as the largest employer in Singapore, companies turn to the Public Service to take the lead in adopting progressive workplace practices. With the new work-from-home culture, I hope that the PSD can drive the adoption of flexible working arrangements; and set the tone for companies in the private sector to follow.

The Chairman: Minister Indranee Rajah.

The Minister, Prime Minister's Office (Ms Indranee Rajah): Mr Chairman, I thank Members for their views and suggestions on population matters.

We want to build a population that fosters a strong and cohesive society, sustains a strong sense of shared national identity and generates a strong, vibrant economy where all can progress, and the fruits of growth can be distributed for a fair and just society.

Singaporeans will remain front and centre of all we do. Let me share four key population strategies that will help us to emerge stronger in a post-COVID-19 world.

First, supporting marriage and parenthood remains a national priority. Helping Singaporeans start and raise their families allows individuals to fulfil their aspirations to be a parent and also addresses an existential issue for us, which is maintaining a core of citizens born and bred here.

Miss Cheng Li Hui asked about the pandemic's impact on our marriage and fertility outcomes. COVID-19 has caused some Singaporeans to postpone their marriage, resulting in about 10% fewer marriages in 2020 compared to 2019. Others have delayed their parenthood plans.

Because we recognised the importance of marriage and parenthood as a life-goal for Singaporeans, we prioritised these even as we tackled the health and economic consequences of COVID-19:

We increased the attendance capacity for wedding receptions and solemnisations to 100, so couples can celebrate with more loved ones.

We introduced the $3,000 Baby Support Grant, or BSG, in October for Singaporean couples who have a child in these two years. This is over and above the Baby Bonus Cash Gift. Almost 10,000 families have benefited. We hope this gives some reassurance to couples to proceed with their parenthood plans.

The pandemic has also brought about opportunities. COVID-19 showed that flexible work arrangements (FWAs) are feasible and help parents to manage their responsibilities at work and home.

Mr Louis Ng asked if we could introduce additional leave for parents to care for sick children. Any leave enhancement, even if unpaid or temporary, could affect employers' operations and parents' employability, and must be reviewed with other requests for leave enhancements. It is more difficult to introduce such changes in the current challenging economic climate.

FWAs, on the other hand, are a pragmatic approach to meeting the needs of employers and workers. So, that is something that we can look at.

I agree that we need to lock in the gains of FWAs since the vast majority of employers now offer it. We are studying the effects of increased use of FWAs and how to keep such practices. Meanwhile, we urge employers to continue to offer FWAs to achieve better work-life harmony while at the same time, meeting business needs.

Ms Denise Phua suggested many ways to improve our Total Fertility Rate (TFR). Our TFR has been below replacement level for years. In 2020, our TFR was 1.10, which is a historic low. We are in a similar predicament as East Asian societies like South Korea and Taiwan, and Scandinavian countries known for achieving good fertility outcomes, like Finland and Norway. They also experienced a drop in TFR, and some are at historic lows too. Raising fertility is an uphill task for advanced societies, but we must continue to support those who wish to marry and have children.

Most young Singaporeans still desire to marry and have children. The recent World Values Survey showed that families are important to Singaporeans and most want to have children – preferably two. This is consistent with findings from the latest National Population and Talent Division's Marriage and Parenthood Survey, where over 80% of single respondents aged 21 to 35 said they wanted to get married, and 92% of married respondents in the same age group wanted at least two children. In the last five years, or 2016-2020, the average number of citizen births also increased compared to the previous five-year period of 2011-2015. We hope that notwithstanding the pandemic, Singaporeans will continue to pursue their family goals, and we will galvanise a whole-of-nation effort to support them.

Responding to Ms Denise Phua's suggestions, we are committed to building a Singapore that is made for families.

In the past two years, we have significantly enhanced access to affordable housing and pre-school. We raised the qualifying income ceiling for subsidised housing from $12,000 to $14,000 in September 2019 so that more couples could have affordable housing options. Those buying resale flats, can now receive up to $160,000 in housing grants, up from $90,000 five years ago.

We also increased the Additional Subsidy for pre-schools and raised the qualifying household income ceiling to $12,000 a month. We aim to further lower fee caps at Government-supported pre-schools so that working families with a child in full-day childcare pay around the equivalent of fees for Primary school plus after-school student care. With means-tested pre-school subsidies, low- and middle-income households will pay even less.

Miss Cheng Li Hui in her Budget Speech yesterday, and Ms Denise Phua and Ms Ng Ling Ling in their speeches today, have suggested increasing support for Singaporeans who undergo Assisted Conception Procedures, or ACPs. We agree that adequate financial and socio-emotional support is important. While we encourage married couples to have children when they are younger and their chances are better, we have also enhanced ACP support over the years.

The age cap on ACP co-funding is based on clinical evidence that success rates decrease with age. In deciding the maximum number of co-funded cycles, we also considered the emotional strain couples face when undergoing ACPs.

With MediSave and existing co-funding support, eight in 10 eligible Singaporean couples have no out-of-pocket expenses for their first cycle, while nine in 10 would not pay more than $500 for their first cycle.

Just last year, we removed the age limit for women undergoing Assisted Reproduction Technology, or ART, treatments. We also enhanced the co-funding scheme for couples to tap on up to two of the six co-funded ART cycles when the wife is aged 40 and above, if she had attempted an ACP before 40. We will continue to review the MediSave withdrawal limits to balance between supporting couples with their cost of treatment today, and ensuring they have sufficient savings for healthcare in old age.

While public Assisted Reproduction centres currently provide couples undergoing ACP with emotional support and social counselling, we will do more with community partners to provide holistic support and remove stigma for those seeking fertility checks or treatment.

Ms Hany Soh, who has asked for information to be disseminated to first-time parents, will be glad to know that the MSF's Baby Bonus Parenting Resources, or BBPR, Pregnancy Keepsake Journal, provides tips on pregnancy and parenthood. This will be piloted at maternity hospitals and selected private obstetrics clinics, complementing MSF's BBPR website, and HPB's e-toolkits for expectant mothers and new parents.

But we can always do better. With your permission, Mr Chairman, may I ask the Clerks to distribute an infographic showing the key enhancements this year. Members may also access these materials through the SG PARL MP mobile app.

While most married Singaporeans wish to have two or more children, and the majority still do, a growing number have only one child. Some Singaporean couples have shared their worries about the costs of having a second child, even though they very much want to. Currently, the support from Government to parents for their second child is the same as their first. We reviewed this and will provide more support for couples having their second child. We will double the maximum dollar-for-dollar Government co-matching of parents' savings in the Child Development Account (CDA) for the second child, from $3,000 to $6,000. This is in addition to the $3,000 CDA First Step Grant that parents receive upon opening the CDA.

With this enhancement, the maximum total Government contributions for the second child's CDA will increase from $6,000 to $9,000. All Singapore Citizen, or SC, children who are the second child, and whose date of birth or estimated date of delivery is on or after 1 January 2021, will be eligible. About 12,000 children will benefit annually.

The one-time $200 CDA top-up, announced by Deputy Prime Minister Heng on Budget Day, as part of the Household Support Package, will provide additional support.

Ms Carrie Tan has championed greater gender equality in caring for children and asked to set aside two months from the current four months of maternity leave, as paternity leave. She also asked for tax incentives to nudge fathers to use them.

We agree that the active involvement of fathers is critical to the wellbeing of children and their partners. Today, fathers can already share up to one month of their wives' maternity leave under the Shared Parental Leave Scheme, on top of two weeks of paternity leave. However, only about 5% of fathers use this flexibility. Some couples also prefer to reserve all 16 weeks of maternity leave for mothers to recuperate and bond with their child.

Hence, we are cautious about requiring fathers to take more of mothers' existing maternity leave. We would first urge fathers to take their paternity leave. Since the introduction of Paternity Leave, take-up rates have increased from 25% in 2013 to 53% in 2018. It is encouraging that more fathers have been taking time off to care for their new-borns, and we hope this signals a stronger shift towards greater shared parental responsibility.

Some working fathers and adoptive mothers may not qualify for paternity or adoption leave due to their employment arrangements. For example, they may be on multiple short-term employment contracts, or their employment contracts may have expired before the birth or adoption of their child.

To better support this group of parents, we will introduce the Government-Paid Paternity Benefit (GPPB) and Government-Paid Adoption Benefit (GPAB). This is similar to the current Government-Paid Maternity Benefit for working mothers, where a cash benefit is given in lieu of the Government-paid share of leave if their employment circumstances do not qualify them for leave. This will apply to parents whose children's date of birth, estimated date of delivery, or formal intent to adopt, is on or after 1 January 2021. About 500 working fathers and adoptive mothers would benefit from GPPB and GPAB annually. More details on the eligibility criteria and application process will be shared later.

I move on now to a workforce with a strong Singaporean Core.

The pandemic has also given us an opportunity to transform our workforce and reduce our reliance on lower skilled foreign workers. From June 2019 to June 2020, our total population declined slightly by 0.3% due to a decrease in foreign employment in the services sector, and Work Permit holders. S Pass and Employment Pass (EP) holders have also decreased amid the pandemic due to travel restrictions and the economic downturn. The Government continues to maintain a tight stance on our foreign worker manpower policy.

COVID-19 has accelerated efforts for businesses to transform business models and improve productivity. At the same time, we will continue to partner businesses to train and retain local workers and strengthen the Singaporean Core of our workforce.

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We must also remain open to global talent who can complement our local workforce and attract high-value activities that create quality jobs for locals. That is why we have tightened the EP criteria and sharpened our tools, such as the Tech@SG and the Tech.Pass. We set a high bar for these schemes and are very selective. The talent base will help us emerge stronger, by anchoring and expanding new growth sectors.

For example, Mr Timo Recker and Mr Andre Menezes, from Germany and Brazil, co-founded agri-food tech start-up Next Gen Foods in Singapore in early 2020. They bring with them experience in alternative protein and food distribution. The team is developing plant-based foods, including an alternative chicken product. Next Gen Food Technologist Ms Claudia Lee, who majored in Food Science at NUS, said it was a dream come true to work directly with leading global experts in plant-based foods. By working with global talent, more Singaporeans like Claudia can deepen their expertise in growth areas.

Finally, we will continue to carefully calibrate the pace of immigration. In 2020, we granted about 21,100 new citizens, and 27,500 new Permanent Residents (PRs). These figures are lower than previous years due to travel restrictions and operational issues arising from COVID-19. For example, safe management measures resulted in limited slots to complete the final steps for PR and citizenship registration, which must be done in-person.

Hence, a few thousand applicants, who were approved in-principle, had not completed all the required processes to be granted their PR or citizenship respectively by end-2020. Depending on how the COVID-19 situation evolves, these applicants could be granted PR or citizenship in the coming months and may add to the numbers normally granted this year.

We continue to carefully select new PRs and citizens, and welcome those who have committed to making Singapore their home. We take in immigrants not just based on their ability to contribute to Singapore, but also their ability to integrate.

As Ms Denise Phua has acknowledged, foreign spouses have family ties to Singapore and our policies are already facilitative for those in genuine and stable marriages. Widowed or divorced foreign spouses, with custody of minor Singaporean children, will generally be allowed to stay here on a Long-term Visit Pass (LTVP) until the child becomes an adult. They can also qualify for a Letter of Consent from MOM which will allow them to work and care for their Singaporean children here. While it is not possible to guarantee PR or citizenship to any foreigner, foreign spouses are generally considered more favourably, especially when they have Singaporean children.

We must continue to build a community that is inclusive and united. In the past year, we saw many uplifting positive examples of Singaporeans and foreigners rallying together to help battle the COVID-19 crisis. For example, Ms Chong Pek Lian from Malaysia contributed to the COVID-19 battle as a contact tracer at Sengkang General Hospital. Despite the long hours and heavy workload, she was glad to help reduce the spread of the virus.

Singaporeans also gave help, support and appreciation for our foreign workers who have contributed to our society, such as those in healthcare and construction. Many have continued to carry out their duties here and have not been able to see their families throughout this period. Our society will be stronger if all who call Singapore home and believe in our vision are empowered to make Singapore a better place.

The Government will continue to work with a range of stakeholders to build our future together and emerge stronger post-COVID. We have consulted Singaporeans widely on population-related issues. For instance, in 2019, we convened a Citizens' Panel to tackle the tricky issue of improving work-life harmony, which affects marriage and parenthood.

In 2020, we also worked with the Citizens' Workgroup to co-develop new curriculum and programmes for the Singapore Citizenship Journey. This initiative explored what it means to be Singaporean, including our shared values and duty to contribute to society. We agree with Miss Cheng Li Hui that the Government's strategies for encouraging marriage and parenthood need to account for shifts in life priorities and societal norms.

As part of the Emerging Stronger Conversations, Minister of State Sun Xueling and I will lead a series of conversations on "Building A Singapore Made For Families", from April to September this year. We want to better understand how the thinking and aspirations of Singaporeans, at different stages of their Marriage and Parenthood journey, may have changed due to the pandemic. Ms Denise Phua will be glad to know that the engagements will include transnational families, who may face unique challenges after deciding to make Singapore home. We will work together with the rest of society to better support all families in Singapore and shape an environment in which we can make time for things that matter.

Our post-COVID world will require population strategies that keep us resilient and cohesive. Together, let us continue to build a Singapore that is a home for all Singaporeans and emerge stronger as a nation.

Let me now go on to separately address the cut by Mr Pritam Singh on corruption. I think he made some general comments at the start about the status of corruption, and I just wanted to refer to the CPIB Report for 2019. This indicates that the Transparency International Corruption Perceptions Index for 2019 ranked Singapore fourth out of 180 countries and territories with a high score of 85. And in the latest Political and Economic Risk Consultancy 2020 corruption survey, Singapore maintained top position and improved its score to 1.73 as compared to a score of 1.85 the previous year, zero being the best score.

In 2019, CPIB received 350 corruption-related reports compared to 358 in 2018. And in 2019, the percentage of corruption-related reports registered for investigation increased to 34% compared to the annual average of 28% over the preceding four years, but generally speaking, we are doing well on that front and the cases have been prosecuted with all due dispatch.

Mr Singh asked for update on two cases. I think it was the Keppel Offshore and Marine and I believe FAS.

On Keppel Offshore and Marine, this case is complex and transnational, involving multiple authorities and potential foreign witnesses from several countries. The Singapore authorities have been working closely with foreign investigating and prosecuting agencies on the matter. As part of the on-going investigation, AGC and CPIB had made two fact-finding trips to Brazil in May and August 2019. As there is a need to obtain additional information from other witnesses based overseas, AGC and CPIB have worked together to send a mutual legal assistance, MLA request to Brazil following the earlier fact-finding trips. The MLA request is pending their response.

AGC and CPIB are also working together to send more MLA requests to other relevant foreign authorities to interview these potential witnesses. While our intention is to move as expeditiously as possible, not all aspects of the investigation are within our control, particularly in relation to the requests and applications made and filed in other jurisdictions.

The current COVID-19 situation globally has also made the cross-jurisdiction investigation efforts more challenging. CPIB is unable to comment further on the case, so as to protect the integrity of investigations, which are confidential in nature and to avoid prejudicing any prosecutorial decision that might follow. CPIB remains resolute and committed to combat corruption and will continue to pursue the case to its end.

With respect to the FAS case, I am afraid that when Mr Pritam Singh filed the cut on corruption, normally you have to indicate the gist of the cut. And the gist of the cut which is indicated to Parliament and then given to the Ministries, only indicated update on Keppel investigations; so, I am sorry I do not have the information on FAS. But perhaps, Mr Singh might like to file a Parliamentary Question on that.

The Chairman: Minister Chan Chun Sing.

The Minister for Trade and Industry (Mr Chan Chun Sing): Mr Speaker, Sir, let me, on behalf of the Prime Minister, address the cut from Mr Murali on the CPIB.

First, let me thank Mr Murali for recognising the efforts of CPIB in keeping corruption at bay. Corruption is under control in Singapore but we must never be complacent. The findings from CPIB's 2020 Public Perception Survey saw strong public confidence in our national anti-corruption efforts, with the following cited as the top three success factors contributing to the low corruption rate in Singapore: first, the political determination to keep corruption at bay; second, the heavy punishments; and third, the anti-corruption laws that are effective.

The Prevention of Corruption Act has served Singapore well and remains an effective instrument. The review of this Act by CPIB is underway. CPIB has been working in consultation with AGC on a comprehensive list of provisions for the review, some of which included the disgorgement of corrupt benefits from perpetrators and strengthening the protection of informers' identity. CPIB will provide more information on the review when it is ready together with AGC.

But having said that, Mr Speaker, Sir, I think I would like to emphasise one particular point that has come up from the various threads. And that is, our reputation as a clean and corruption-free country is hard-won and is not something that we take for granted. Looking at our history, we know that such things may happen now and then, involving all strata of society. But regardless of who is involved, which organisation is involved, nobody will be above the law and CPIB, together with the rest of the enforcement agencies will get to the bottom of each and every case, because the reputation of Singapore, the kind of values that we exhibit must be above all other considerations. So, it is a hard-fought reputation, it is hard-won but we must never be complacent because it is a job that will never be done and we must never let our guard down.

Next, I will address the cuts from Mr Patrick Tay and Mr Melvin Yong on the Public Service's efforts to enhance employability, employment practices and build capabilities.

Mr Patrick Tay asked how the Public Service has helped Singaporeans impacted by the pandemic. We have worked with unions and other partners to place some 21,000 local workers so far in short-term and long-term jobs and traineeships across the public sector. They came from all age groups, including mature workers, and we remain committed to supporting the needs of workers through the SGUnited Jobs and Skills effort.

But we are clear that in the longer term, with an ageing and shrinking local workforce, we must help our people work longer with new capabilities. Therefore, the Public Service will raise its retirement and re-employment ages to 63 and 68 respectively from 1 July 2021, one year ahead of the national schedule, as earlier committed.

Mr Melvin Yong spoke about supporting public officers' lifelong employability, through good workforce and workplace practices. We agree. Key to this is re-skilling our officers to continually upgrade their skillsets to keep up with the new job demands. Since 2019, we have worked with the unions to upskill thousands of officers in areas such as basic digital literacy, data analytics and adapting to career and work-life transitions.

We are also developing public officers through job rotations and attachments to the private and people sectors. Officers learn best practices to bring back to the public sector. So far, we have worked with over 50 partners to attach over 90 officers from more than 30 agencies to such organisations and we will continue to expand this scheme further.

Mid-career hires into the Civil Service also accounted for over 45% of all hires in the past five years. We welcome more mid-career hires to join us and contribute their skillsets and experiences to public sector work.

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We are implementing progressive workplace practices to build a more collaborative and caring Public Service. We have implemented flexible work arrangements like enabling more officers to adopt hybrid work arrangements. We are doing more to promote workplace health and mental wellness. For instance, we are starting a Service-wide programme to train mental wellness ambassadors to provide peer support and care for co-workers.

We are also making concerted efforts to strengthen the Public Service’s capability to serve Singapore. We have been investing in technology as a key driver of Public Sector Transformation. Many of our COVID-19 responses were underpinned by technology, like A*STAR and TTSH’s Fortitude test-kit, and HTX’s autonomous robot M.A.T.A.R deployed to patrol dormitories.

We are leveraging technology like Artificial Intelligence (AI) for policy-making, service delivery and operations. The MSO One Service App uses AI-enabled routing of residents’ feedback. Public officers working in science, technology and engineering (STE) roles will be developed in niche areas like power engineering, modelling and simulation. We welcome more aspiring scientists and engineers into the Public Service.

Mr Speaker, Sir, the Public Service will continue to transform ourselves and continue to develop our workforce to prepare our people for a longer career within the Public Service. At the same time, we will increase the porosity between the Public Service and the private and people sector, so that we can gather experiences from all across the nation for the good of our country.

The Chairman: Any clarifications? Mr Louis Ng.

Mr Louis Ng Kok Kwang: Thank you, Sir. I agree with the Minister that flexible work arrangement especially work-from-home is the way forward. But I think we need to remember that the essential workers cannot work from home.

So, could I ask, one, whether the Minister is aware of any studies in Singapore that show that by increasing childcare leave, it would decrease the employability of a person?

Two, could I ask whether PMO can study the usage of childcare sick leave amongst our public servants, and then use this study to decide on whether to extend it to everyone else?

Ms Indranee Rajah: Mr Chairman, on the first question, I do not have information on specific study with me at hand but I can look that up and we will liaise with the Member separately.

On the second, I believe the Member had a suggestion. I am always happy to entertain suggestions from the hon Member Mr Louis Ng and we will look at it.

The Chairman: Ms Denise Phua.

Ms Denise Phua Lay Peng: Chairman, I just have a clarification for Minister Indranee. I was asking for a bit more flexibility and more liberalisation of the immigration policy for the foreign spouses of Singaporeans. They are either widowed or abandoned. Minister mentioned just now, and I wanted to seek clarification, that these spouses who are widowed or abandoned, the Minister mentioned that they would only get long-term visit pass until the Singaporean child is 21. Is that correct? Because if so, by the time they can apply for PR will be actually quite late. And many of them would have Singaporean roots and the children and the families would all be here. So, I think it would make sense to provide them the PR or citizenship status. I am just seeking clarification on that.

Ms Indranee Rajah: I was actually simply describing the broad range of measures. I was not making a statement as to a specific time when it is considered. I think ICA considers each case on its own merits and the point I was making is that family ties will mean greater priority.

The Chairman: Ms Tin, would you like to withdraw your amendment?

Ms Tin Pei Ling: Chairman, I thank everyone for the contributions and also to our very hardworking Public Service officers and our leaders in this House for keeping Singapore vibrant and safe. With that, Chairman, I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

The sum of $972,616,700 for Head U ordered to stand part of the Main Estimates.

The sum of $293,445,300 for Head U ordered to stand part of the Development Estimates.