Sunday, 11 March 2012

More needy Singaporeans to qualify for aid





Widening of social safety net to benefit 15,300 more people
By Ong Hwee Hwee, The Straits Times 10 Mar 2012

AS THE Government seeks to strengthen its social safety net to realise its pledge of an inclusive society, more needy Singaporeans will now qualify for aid.

For a start, the income criteria for ComCare, a key component of its help schemes, will be widened.


Bigger families who bust the ceilings can still qualify if their income per capita falls below $550.

'This will enable more to receive short-term assistance to tide over difficult times, and have the hope to get back on their feet again,' said Acting Community Development, Youth and Sports Minister Chan Chun Sing yesterday.

ComCare offers temporary short- to medium-term assistance to those who have lost their jobs or are unable to work for a period. Help rendered includes cash and utilities vouchers.

Dr Yaacob on challenges for Malay-Muslim leaders

By S Ramesh, Channel NewsAsia, 8 Mar 2012


Making this call, Minister-in-Charge of Muslim Affairs Dr Yaacob Ibrahim said the Community Leaders Forum Convention in November this year will be an apt platform for the community to reflect, review and explore paradigms to further build capacity as a community to face future challenges, in its vision to be a Community of Excellence.

Dr Yaacob was speaking in Parliament and replying to several issues raised on the challenges facing the community during the debate on the estimates for the Ministry of Community Development, Youth and Sports.


One challenge is to help families in need, noted Dr Yaacob.

He said the community has seen rising income across all income groups.

With this, giving has also gone up and "zakat" collection or the collection of tithes has been increasing over the past few years.

In 2011, a total of S$23.3 million was collected, a 3 per cent growth from the previous year, and 2,210 families received monthly assistance.

Dr Yaacob said the Islamic Religious Council of Singapore (MUIS) will continue helping existing zakat recipients, and at the same time gear up for more applications. 

Trans-fat limit for cooking oils

Fine, jail or both for selling ingredients and food flouting 2g limit
By Poon Chian Hui, The Straits Times, 9 Mar 2012

FIVE times a week, housewife Doreen Tay, 56, puts bread, pastries and curry puffs on her family's breakfast table.

It has occurred to her that these foods may be unhealthy for her husband and two children, one of whom is overweight.

But she says: 'What can I do? I don't know what the shops use to make their bread.'

When new trans-fat limits kick in this May, consumers like her can rest assured that what they eat will have less of this harmful fat.

It is raw ingredients of these food items - margarine, shortening and cooking oil - that the laws are targeted at.

From May, the ingredients that are used in the locally made pastries and curry puffs Madam Tay buys will not be allowed to contain more than 2g of trans-fat for every 100g of their weight.

This was announced by Minister of State for Health Amy Khor in the Budget debate on Wednesday.

Imported processed or packaged foods that may have trans-fats and oils, such as biscuits and potato chips, do not fall under these new regulations. This is because many of these imports are also sold to countries in which trans-fats limits are already in force, and where trans-fat labelling is compulsory.

Education Minister Heng Swee Keat outlines MOE's plans for holistic education

Channel NewsAsia, 8 Mar 2012

Education Minister Heng Swee Keat has outlined his ministry's plans to create a holistic education system and one where no child is left behind.

Speaking in Parliament on Thursday, Mr Heng said that to prepare our students for the future, education must develop the whole person.

"It is less about content knowledge, as content will have to be re-learnt and even un-learnt during one's lifetime," he said.

"It is more about how to process information, discern truths from untruths, connect seemingly disparate dots, and create knowledge even as the context changes. It is about developing an enduring core of competencies, values and character to anchor our young and ensure they have the resilience to succeed."

"Developing the whole child must first begin with instilling the right character and values. We must adopt a student-centric, values-driven approach," added Mr Heng.



And to reflect the emphasis on a holistic, values-driven education, Mr Heng said that there will be a new Edusave Character Award to recognise students who exhibit exemplary values, such as resilience and tenacity, integrity, care and respect, as well as civic responsibility.

The minister said the Community Involvement Programme is an important part of character building as it builds a spirit of volunteerism.

It will therefore be enhanced and reframed as Values in Action to place a stronger emphasis across all schools on the inculcation of values through community involvement.

Under Values in Action, students will undertake personal and group reflections to discuss their experience and the role they can play in the community.

Students will be encouraged to choose community issues they are concerned about, understand them better and decide how they can make a difference.

Schools will also be encouraged to develop 4-year or 6-year development plans to move towards more sustainable learning through community involvement.

To ensure opportunities for all students, the Ministry of Education is significantly increasing its coverage of financial support for needy students.

More funds will also be given to financial assistance schemes.

Corporate rate kept at 17% - but still competitive

By Andy Baik And Sandie Wun, For The Straits Times, 8 Mar 2012

GOVERNMENTS are under pressure to raise tax revenue to reduce budget deficits or fund social spending in a volatile economy. At the same time, their ability to raise taxes is limited by global competition which makes companies and labour highly mobile in their search for lower tax regimes.

Nations constantly pit themselves against their closest neighbour in tax competitiveness, fighting for a larger bite of the inbound investment pie. Asia-Pacific nations have been reducing corporate tax rates to that end. Hong Kong and Singapore currently lead the race to the bottom. Both have chosen to stick to their current headline corporate tax rates of 16.5 per cent and 17 per cent respectively during their recent Budget announcements.

Taiwan is the newest member of the low-tax-rate club, cutting its tax rate from 25 to 17 per cent in 2010. Indonesia, Thailand, New Zealand, South Korea and Malaysia are also implementing phased reductions. Even Japan, known for its traditionally high tax rate, has buckled.

With more hopping onto the 'cutting tax' bandwagon, will Singapore lose its sparkle as an investment destination?

Possibly so, if you take a cursory glance at Singapore's tax rates with a short-term perspective in mind. But dig deeper into the overall tax effectiveness, certainty and substance of Singapore's tax regime, and you will find that the race for Singapore in this global tax competition is far from over.

To begin with, the Asia-Pacific nations may not even be the most relevant benchmarks for Singapore, in terms of tax rate competitiveness and setting the headline tax rate. Singapore is at a different economic and developmental stage, compared to many Asia- Pacific countries. The country has successfully evolved from being primarily a manufacturing base for MNCs, to an attractive location for housing higher value-added activities such as services, procurement, supply chain management and financing.

It would be more meaningful to benchmark Singapore's tax regime with countries like the Netherlands and Switzerland, which have been attracting investments particularly from MNCs in Europe and globally. Their corporate tax rates are not particularly low, at 25 per cent for the Netherlands, and 12.7 to 25 per cent for Switzerland.

Singapore's relatively low corporate tax rate could have pushed it onto the list of potential hub location for MNCs to anchor their regional or global functions. However, the deal-breaker lies not just in the corporate tax rate. It is the effective tax rate that matters. This varies depending on the tax circumstances and other tax offsets that each company is subjected to. Countries are thus utilising tax strategies and policies in a targeted manner to bring effective tax rates to a level below the headline tax rates.

According to published data in 'Effective Corporate Tax Rates on New Investment, 2010' by the Cato Institute, effective tax rates of territories around the world were mostly higher than Singapore with the exception of Hong Kong. The effective tax rates were estimated at 8.5 per cent in Singapore, compared to 4 per cent in Hong Kong, 10.9 per cent in Taiwan, 16.8 per cent in the Netherlands, 17.6 per cent in Switzerland, 18 per cent in Malaysia and 29.1 per cent in Japan.

Saturday, 10 March 2012

Govt moves to tackle commuter woes; BUS and train fares will remain unchanged in 2012

It aims to cut waiting time, ease crowding and raise service levels
By Goh Chin Lian, The Straits Times, 8 Mar 2012

COMMUTERS can expect a shorter wait and less crowding on buses and trains as the Government rolls out an aggressive plan to increase their numbers and frequency.

They will also get a reprieve this year from fare increases as a committee goes into a huddle to seek a new formula for fare adjustments that will kick in next year.

The raft of measures announced by Transport Minister Lui Tuck Yew yesterday is a response to commuter complaints about the long wait and tight squeeze on public transport amid a rapid rise in population and ridership.



Reflecting their distress, an annual survey of more than 3,100 regular bus and MRT commuters by UniSIM last October shows satisfaction levels have dropped, especially for buses.

Public transport was rated most poorly on three fronts: waiting time, reliability and comfort. But MRT services probably took a big hit too, after the two major train service disruptions last December, two months after the survey was done.

Tackling the two services in turn, Mr Lui said improvements had been made in the rail system, like the complete opening of the Circle Line last October.

Changing tides: China and India

There is little to fear and much to gain from the rise of Asia's two giants
By George Yeo, Published The Straits Times, 9 Mar 2012

CHINA and India are old civilisations. When the Portuguese and the Spanish braved the oceans at the end of the 15th century, it was to find alternative routes to the east - to India, the Spice Islands and China. One was often confused for the other, with native Americans called 'Indians' by Columbus. For the Middle East and South-east Asia, however, China and India reside deep in the historical memory, going back to the mist of early times.

The current rise of China and India is but a re-emergence of ancient peoples on the global stage. In recent centuries, both came to be dominated by Western powers. India was fully colonised; China partially so. Each responded in a different way according to its own nature and circumstances. As they become major powers again, the Western domination of the world will recede. A multipolar reality will define this century, as was indeed the case for much of human history. Provided human beings do not go mad again, the prospects for peace and development in the coming decades are good.

China is not likely to become an imperial power in the pattern of the West. That it should become more self-confident and assertive is to be expected, even militarily. But it would go against the grain for China to seek colonisation and the conversion of others to Chineseness.

It is unlikely that China and the United States will go to war despite inevitable conflict of interest. While trials of strength there will be episodically, China will not be encroaching on distant countries the way the Western powers and Japan encroached on China in the past. (China's relationship with its neighbours on the border like Korea, Mongolia, Central Asia and Vietnam is a different matter. Depending on the cycles of Chinese dynasties, they were either a part of the empire, its enemies or in its penumbra.) China will fight to defend its interests but it is unlikely to be aggressive like the European powers during the age of colonialism. From this perspective, the way Chinese Vice-President Xi Jinping conducted his recent visit to the US was in keeping with an old pattern of behaviour.

Both China and India have been described as civilisational states. But while historical China has often been a strong state, historical India was frequently not, and certainly never over the entire sub-continent until the British arrived. India's internal divisions facilitated its colonisation by the British.

India's heterogeneity stands in sharp contrast to China's homogeneity, where Han people make up over 90 per cent of the population. Since India's independence, more states have been created to better reflect its diverse makeup. In China, provincial lines have historically been drawn to prevent sub-groups from becoming too powerful.

India's politics therefore has a different rhythm from China's. There is no central order to overthrow and replace. To paraphrase Amartya Sen, the Indian is endlessly argumentative. Indian history is fractured with details.

India has one critical long-term advantage over China which is its demographic profile. China's population will reach about 1.5 or 1.6 billion, after which its population will decline like Japan's. Although the Chinese government is relaxing population control, the declining birth rate is hard to reverse.

In terms of organic growth, China is like a magnificent Californian redwood adding height each year. India, in contrast, is more akin to a big bush, growing all over the place. What keeps the bush coherent are its roots in Indian civilisation, a deep common Hindu-Jain-Buddhist substrate with relatively recent Mughal-British overlays. In the Hindu pantheon, there are 300 million deities. That number says something about the Indian mind and its acceptance of diversity.

At one level, because of the English language and Anglo-Saxon institutions, India seems much more like the West than China. However, despite being closer to the US than China, India will not be used by the US against China unless this is in its own interest. On issues like world trade, climate change, Iran, Afghanistan and Myanmar, India is often prepared to take positions opposed to the US. India will cooperate with China for mutual benefit. Both are part of the Bric (Brazil, Russia, India, China) grouping which holds regular summits. In return for China supporting India as an observer in SCO (Shanghai Cooperation Organisation), India supports China as an observer in SAARC (South Asia Association for Regional Cooperation).

Apart from the 1962 War, there has been no major conflict between China and India.The high Himalayas separated them, and in Central and South-east Asia, smaller states provide a wide buffer.

The Buddhist connection is well- known. Over the centuries, through the silk routes, the two civilisations learnt from each other philosophy, mathematics and astronomy to practical subjects like meditative practices, ship design and sugar-making.

The political relationship lags behind the economic relationship. China is already India's biggest trading partner. Bilateral trade exceeded US$70 billion (S$88 billion) last year and is expected to hit US$100 billion in 2015. Road, rail, air and electronic connections have greatly improved to the Tibetan plateau and China wants to link them to Indian networks through the mountain passes. With Myanmar opening up, South-east Asia will again become a major connector between China and India. Chinese cities like Chongqing and Kunming are eager for political obstacles to be removed because of their geographical positions. Kolkata will benefit hugely too as it is less than a thousand kilometres by road from Lhasa and a little over two hours by air from Kunming. When Japan controlled the Chinese coast, it was from Bengal and Bihar through Burma and over the Hump that Kuomintang China was kept supplied.

India's fear of Pakistan complicates the bilateral relationship between China and India. From worrying about Pakistan, India now worries for Pakistan. This is a profound change in India's attitude. While bilateral relations between India and Pakistan are far from normal, they have improved considerably. China in turn maintains a careful balance between historical friendship with Pakistan and its growing economic and political relationship with India.

The Sino-Indian relationship may become as important as the Sino-US relationship in global affairs. Together China and India make up 40 per cent of the world's population and will probably supply more than half its brainpower. In every field of human endeavour, how Chinese and Indians work together will matter a great deal. Their current role in Silicon Valley presages the world that is to come.

Over the long run, it is the cultural relationship between China and India that will matter most. Today, they frequently stereotype each other. Coming from Singapore where the mandalas of China and India overlap, to use Wang Gungwu's elegant phrase, there is clearly considerable prejudice and misunderstanding between them. At the same time, each doffs its hat to the other as an ancient civilisation.

If China and India can maintain stable relations in the coming decades, there is great hope for the future. It is not too optimistic to envisage an Asia-Pacific region stretching across the Pacific to India with over 60 per cent of the world's population living in relative peace and enjoying economic development for years to come.

If instead China and India are locked in confrontation, the future will be troubled. We must expect some third parties to sow seeds of discord between them. Working for good long-term relations between China and India is therefore a worthwhile cause.

China and India as connected but separate poles will make a multipolar world more stable. In such a dispensation, smaller countries will enjoy greater autonomy of action.

In a modest contribution to better long-term Sino-Indian relations, Amartya Sen, Sugata Bose, myself and others have been promoting the revival of Nalanda University. For centuries it was a centre of learning which brought learned people, mostly Buddhist monks, from all parts of Asia together. This project has been blessed by leaders of the East Asian Summit which now includes the US. An Asia in peace and playing a bigger role in world affairs will also help untangle the knotted problems in the Middle East.

The influence of China and India in the Middle East is bound to grow. While this weakens the West's position in the nearer term, Asia's rise will relax tensions in the longer term, which is good for the West. Iranians, Arabs, ayatollahs, sheikhs and Muslim Brothers will all feel less trapped in what is often now seen as a Manichean conflict with the West. The view of China and India from the Middle East is very different from that of the US and Europe. Perhaps to make the point, the first countries Saudi King Abdullah visited when he became king were China and India, with Malaysia as the third. Because of history and proximity, India's role in shaping the future of the Middle East will be greater than that of China. China's advantage is its veto power on the UN Security Council.

The simultaneous re-emergence of China and India on the global stage is lifting not only Asia. The contribution of growing Asian middle classes to global investment and consumption is increasing yearly. With their favourable resource-to-population ratio, Latin America and Africa are bound to benefit

For developed countries, the rise of Asia is both a threat and an opportunity. Many individuals face increased competition. They have to work harder and maybe for less pay. Existing government benefits cannot be sustained. In contrast, those with knowledge, capital and networks profit from cheaper access to land and labour overseas, selling to growth markets. As income distribution worsens, the politics in many developed countries sour and forging a common response to new challenges becomes harder.

The tides are changing regardless of whom the winners and losers are. Whether as countries, corporations, congregations, tribes, families or individuals, how we reposition ourselves for the ebbs and flows will decisively affect our chances of success. Of course nothing is inevitable in human affairs. For example, we do not know what new eruption may occur in the Middle East. The Iranian nuclear programme is an obvious concern. There also the unknown unknowns. The biggest mistake is clinging to old positions in the hope that what is happening is transient and will blow away. It will not because what we are witnessing is a sea change.

The writer is a former foreign minister of Singapore. He is now vice-chairman, Kerry Group Limited. This is an edited excerpt from the 7th Tsai Lecture delivered at Harvard University on March 7.

PM says he will call by-election in Hougang

Timing of by-election is for the PM to decide
By Andrea Ong, The Straits Times, 10 Mar 2012

PRIME Minister Lee Hsien Loong said yesterday he would call a by-election in Hougang, but had not decided on when it would be held.

Noting that the single-seat constituency is vacant after former MP Yaw Shin Leong was expelled by the Workers' Party (WP), PM Lee said: 'I intend to call a by-election in Hougang to fill this vacancy. However, I have not yet decided on the timing of the by-election.'

In deciding on the timing, he said he would take into account all relevant factors. These include Hougang residents' well-being, issues on the national agenda, and the international backdrop that 'affects our prosperity and security'.


PM Lee was responding in Parliament to Mr Christopher de Souza (Holland-Bukit Timah GRC), who had asked if the PM was considering holding a by-election in Hougang, and if so, when.

His reply will go some way towards quelling speculation on the issue since Mr Yaw was sacked on Feb 14 for not coming clean on his alleged extramarital affairs.

PM Lee had said he would consider carefully whether and when to hold a by-election in Hougang. Yesterday, he remained firm that the timing is at his discretion and he is not legally obliged to call a by-election 'within any fixed timeframe'.

Friday, 9 March 2012

Minimum wage: Malaysia

Minimum wage: Malaysian firms worried about spike in costs
Owners of small businesses warn that 80% of them will have to close down
Published The Straits Times, 7 Mar 2012

PETALING JAYA: Representatives from 16 Malaysian business and manufacturing associations have voiced concerns about a sudden increase in costs due to a minimum-wage deal that the government is expected to announce soon.

Owners of small and medium-sized industries (SMIs) warned that up to 80 per cent of operating companies in Malaysia may close down if a blanket minimum wage is introduced, according to the Malaysian Insider news website.

The SMI Association of Malaysia told a news conference yesterday that SMIs employ 59 per cent of the labour market, or seven million workers.

'About 80 per cent (of SMIs) are micro-SMIs, which are labour-intensive and employ the majority of these workers, a total of about four million. Their profit margins are only between 3 per cent and 5 per cent.

'Basic wage not including incentives is about RM650 (S$270) now but if it is increased to RM800, they will be totally killed,' said association vice-president Michael Kang.

Better MediShield coverage, more subsidies for elderly & sandwiched class

By Vimita Mohandas, Channel NewsAsia, 7 Mar 2012

A key focus of the new Healthcare 2020 Masterplan is to make healthcare affordable for all Singaporeans.

For one, the health ministry will provide better MediShield coverage to help the elderly and vulnerable groups with their medical bills.

And the government will more than double its overall spending on Intermediate and Long Term Care (ILTC), by 2016.

The income criteria to qualify for help in ILTC sector will also be simplified - with relief extended to the sandwiched class.


Health Minister Gan Kim Yong said MediShield premiums are expected to rise soon.

He added that payouts under MediShield have been rising.

Between 2008 and 2011, the Medishield scheme paid out 21 per cent more in claims each year, while premiums grew by only 10 per cent each year. The last increase in premiums was in 2008.

To keep MediShield sustainable and support the extension of benefits, a 45-year-old may now see a premium increase of S$7 a month while the younger age groups will see a smaller rise.

An older policyholder aged 75 could see an increase of S$20 a month.

To offset these increases, a one-time Medisave top-up of S$400, or S$33 per month was announced in the recent Budget for all Singaporean policyholders to help cushion the impact of the premium adjustment.

And older policyholders beyond the re-employment age of 65 will also receive Medisave top-ups under the GST voucher scheme of up to S$37.50 per month which can offset the premium increases in full.

Mr Gan added that families will now find it easier to get subsidised intermediate and long term care.

Bringing mental health care to nearby clinics

By Teo Wan Gek, The Straits Times, 8 Mar 2012

PEOPLE suffering from mental conditions like depression will not have to make a long trek to a hospital, under a government plan to bring help to a nearby neighbourhood clinic.

More than $100 million will be spent over the next five years on this new community-based approach in providing such services as counselling and psychotherapy.

These services will complement those currently offered by the hospitals.

Initially, these will be tried out as a pilot project in the north and central regions.

'Our goal is to build a network of care and support services that are integrated with our primary care and long-term care services,' said Minister of State for Health Amy Khor yesterday when she announced the new approach.

It is part of an overall health masterplan to deliver care more effectively, by increasingly having more people treated in the community than in hospitals.

As the population increases, about 2 per cent more people are expected to suffer from schizophrenia each year.

And in a rapidly ageing population, the number of people with dementia will also rise sharply.

'We must enhance our mental health capabilities to cope with this increased burden,' said Dr Khor.

'Our strategy of keeping people healthy and managing their health conditions well to reduce the need for costly hospitalisations also applies to those with mental conditions.'

The teams that will provide community-level care will be made up of doctors, nurses and psychologists.

Called Assessment and Shared Care Teams (Ascat), they will be found at community clinics and medical centres.

The target is to have six Ascat teams by 2016 to manage up to 9,500 patients, said Dr Khor.

Camera catches high-rise litterbugs

NEA pilot project shows it is effective but it will be used only in hot spots
By Cheryl Ong, The Straits Times, 7 Mar 2012

INSTALLING surveillance cameras atop public housing blocks is not the cheapest way to catch high-rise litterbugs, so they will be used only where the problem is acute.

The National Environment Agency (NEA), in response to queries from The Straits Times, said it cost $25,000 to deploy a camera for stretches of at least five days in 10 locations under a pilot project it undertook last year.

Until the pilot project, enforcement had entailed labour-intensive stakeouts lasting several hours.

The NEA said the pilot project showed that mounting stakeouts with the cameras was 'more effective than current methods', but added: 'The cameras will be used only after careful assessment of the situation and after all other means, such as educational efforts to exert community pressure on the litterbugs, have been exhausted.'

Of the 10 locations the camera was deployed in turn, it caught litterbugs in two locations within the few days it was left turned on round the clock.

The 10 hot spots where it was installed included neighbourhoods in Bukit Batok, Jurong West, Chua Chu Kang, Woodlands, Marsiling and Bukit Panjang.

Senior Minister of State for the Environment and Water Resources Grace Fu had told Parliament on Tuesday that such surveillance cameras and video-analytic software will be deployed in the second half of this year to catch litterbugs, who can cause death or injury to people on whom these 'missiles' land from on high.

It is the Government's response to a problem that has continued to be the bugbear of the authorities, despite more than a decade of public education drives.

Each month, the NEA gets reports of about 100 cases of high-rise littering, but has managed to prosecute just 41 litterbugs in 10 years - about four a year.

The problem lies in that objects can be hurled from a window or a balcony in a flash. Someone who sees it happen may not have a smartphone handy to get the evidence, so litterbugs have just carried on their business with impunity.