1. Mr Speaker, I thank Members for speaking in support of the Bill. They have also raised many thoughtful comments, which I will now address.

District Pneumatic Waste Conveyance Systems

Overview of Costs Associated with DPWCS

2. Mr Murali Pillai asked how connection charges and tariffs will be determined, and Er Dr asked if residents would have to foot these costs. Let me give an overview of the costs and how they will be recovered.

3. First, the connection charge will cover the capital costs. In Kampong Bugis, NEA will collect this from the Master Developer. The connection charge will be small compared to other costs like land costs and construction costs. In fact, it will be a very small proportion. It will be made known to bidders when the site is launched for sale, so that this would be factored in their bids. Second, a monthly tariff will be collected from owners of premises within the district, such as the Management Corporation Strata Title (MCST). This will cover operational and maintenance expenses for the DPWCS. The MCST will then collect payments towards this tariff from subsidiary proprietors under the MCST as part of their monthly maintenance fees.

4. To keep overall costs competitive, NEA will appoint the DPWCS licensee for Kampong Bugis through an open tender. The tariffs will take into account factors such as gross floor area (GFA) and amount of refuse generated for different types of premises. For example, the tariffs for residential premises will be different from that for commercial premises.

Managing potential cost increases from DPWCS

5. Ms Irene Quay, Mr and Ms spoke about potential cost increases arising from the DPWCS.

6. We will make every effort to ensure that the costs of waste collection remain affordable. But we also have to balance short term costs with long term sustainability. Waste generation in grew from 5.6 million tonnes in 2007 to 7.7 million tonnes in 2017, a 40% increase over the last decade. This trend is likely to continue as Singapore’s population and economy grow. If we do not adopt technology but continue to manage waste the way we do today, we will need a proportionate increase in manpower which we cannot meet without turning to more foreign labour, given our manpower constraints.

7. We know that Singapore’s workforce is shrinking and ageing. Manpower costs across all sectors will continue to rise. The challenge is even more acute in the environmental services industry, which many , as I had noted earlier, perceive as dirty and unappealing, and shun away from. We might not be able to find workers, even if we were willing to pay for them. Members would agree with me that increasing our reliance on foreign workers to collect waste is not a sustainable solution. So we need to start putting in place systems now, such as the PWCS to automate waste collection, which will allow our workers in the environmental services industry to take on higher value-added jobs.

8. From our recent consultations with industry players, the operating costs for PWCS comprise only a very small proportion of the total maintenance expenses for a condominium. Hence, the PWCS will not significantly affect the residents’ maintenance fees. Condominiums with PWCS will also benefit from reduced pests and odour, and manpower savings from not needing to manually transport waste within the premises.

9. At the district level, premises will also enjoy more cost savings due to economies of scale through shared bin centres, air and ventilation equipment, and pipe networks. In greenfield sites, these benefits would be even greater, as the planning and construction of the network will be done from the start without retrofitting. This is seen in other cities, including several in South Korea, where DPWCS are implemented on greenfield sites.

10. For these reasons, we expect the cost borne by each dwelling unit (DU) for the DPWCS at Kampong Bugis to be lower than that at Yuhua, which is a brownfield site that required extensive and more costly retrofitting works, as mentioned by Er Dr Lee Bee Wah. Over the longer term, as PWCS is used more extensively in Singapore, and with technological advancements, we can expect the costs of DPWCS to decrease.

11. As mentioned in my opening speech, NEA estimates that a 1000 dwelling units condominium would save GFA equivalent to a five-room HDB flat by eliminating its bin centre. In Kampong Bugis, this translates to the Master Developer saving 20% of the GFA used for bin centres, which could then be diverted to saleable units or facilities for residents. Residents will also benefit from a cleaner and quieter environment due to reduced truck traffic.

12. Mr Murali asked whether the Government would consider subsidising existing private developments to implement PWCS within their estates. Currently, the costs of conveying waste from individual chutes to bin centres in private developments are borne by residents through their monthly maintenance fees. So the Government does not subsidise this, and we have no plans to do so.

Measures in place to address residents’ concerns and other operational problems

13. Mr Murali Pillai and Mr Zainal Sapari spoke about operational concerns related to DPWCS in Singapore and other cities, such as suction noise and smell from choked pipes.

14. I would like to assure Members that we take these concerns seriously. PWCS itself is a tried and tested technology and has been used in countries such as South Korea and Sweden for many years. To date, some 140 condominiums and commercial developments in Singapore have also used PWCS with only minor operational issues. Where disamenities occur, we will study and address them. For example, chokages have been addressed by improving the design of refuse chute hoppers, and odour, by ensuring the regular replacement of odour filters.

15. Let me share with Members the experience of a district in Gwacheon City, which is in Seoul. Residents were initially concerned when they saw the shared bin centre in the middle of the district. They were concerned that the bin centre would affect the aesthetics of the area, and whether there would be odour problems. These concerns were cleverly addressed by integrating the bin centre into a landscape garden, which residents welcomed.

16. This illustrates the importance of resident-centric design. The PWCS retrofitting project at Yuhua faced design limitations as it was in an existing estate with limited space. As a result, the bin centre had to be located in the middle of the estate, surrounded by blocks of flats. HDB has introduced acoustic mitigating measures and odour treatment solutions to address the noise and smell issues at the bin centre. Public education efforts were also intensified to remind residents of items that cannot be disposed of in the PWCS. This would prevent chokages that give rise to odours.

17. More importantly, the learning points from Yuhua have been incorporated in the Government’s upcoming projects. These include the PWCS at the new HDB estate at Tampines North, where the bin centre will be located at the edge of the district, away from residents. Other effective design features include placing refuse hoppers outside of flats and sizing refuse hoppers to limit the size of items that can be thrown into the chute, thereby preventing chokage. New developments, such as those in Kampong Bugis, would incorporate such planning and design features that will facilitate the smooth operation of the PWCS.

18. Another cause of disamenities is improper maintenance of the PWCS. To address this, NEA is jointly developing a Singapore Standard for PWCS with HDB, Enterprise Singapore (ESG) and other stakeholders. The Standard covers proper maintenance of PWCS, such as recommendations to replace air filters every six months, so that they remain effective in removing unpleasant odours. PWCS vendors must also provide operation and maintenance manuals to managing agents and MCSTs and provide basic training to the staff of the managing agents.

19. As Ms Irene Quay, Mr and Dr Chia Shi Lu highlighted, users of DPWCS have a role to play in preventing chokage and its associated issues. They must use the DPWCS correctly, and avoid throwing bulky or long items such as pillows or brooms into the chutes. NEA will support such efforts to educate residents on the correct way to use the PWCS, as we are already doing at private developments which have adopted PWCS. For instance, signage could be placed at throw-points to educate residents on proper usage. NEA has also amended the Code of Practice on Environmental Health to introduce a refuse chute hopper design that limits the size of items that can be thrown into the chute.

20. Mr Zainal Sapari, Mr Gan Thiam Poh and Mr Irene Quay highlighted the need for prompt detection of faults in the PWCS and the importance of contingency plans in the event of breakdowns. It is our priority that our residents have reliable waste collection services and NEA will ensure this through licensing conditions on the DPWCS licensee. In the event of a prolonged disruption in the main DPWCS network, the licensee must ensure continued service, such as through manual waste collection. These contingency plans are similar to those in other countries such as South Korea. PWCS are also equipped with sensors and monitors to alert operators of any system faults so that they can carry out prompt remediation.

21. Even as we prepare for contingencies, it is pertinent to note that most chokages are cleared within two to three hours, in existing developments that use PWCS in Singapore.

Working towards greater adoption of DPWCS in Singapore

22. Mr Murali, Ms Sylvia Lim and Mr spoke about the Town Councils’ role in managing PWCS. Mr Murali and Ms Sylvia Lim asked why the Bill excludes Town Council-managed premises. This is because HDB has already been playing an active role in implementing PWCS in public housing estates. Hence the current Bill focuses on enabling DPWCS to be implemented on sites comprising private developments.

23. NEA and HDB are also collaborating closely on implementing PWCS, and will be adopting the Singapore Standard for PWCS in new projects.

24. Mr Louis Ng spoke about potential increases in maintenance costs to Town Councils due to PWCS. While this Bill covers private developments only, we understand that HDB works closely with Town Councils to address this. For example, as mentioned by Mr Murali, the Ministry of National Development is providing a temporary grant to Town Councils to help offset costs until the PWCS industry attains economies of scale. In addition, Town Councils will enjoy savings from PWCS due to the reduced manpower requirements for refuse collection and cleaning. And indeed they are already seeing this but in the initial phases, because the PWCS is only applied to a particular part of the constituency, the savings in collection costs cannot be passed through directly. Whereas, in a private development, the costs can be directly offset in the maintenance fees payable.

25. We welcome Mr Murali Pillai’s suggestion to extend the scope of DPWCS, by combining public and private estates to allow for greater economies of scale. This is something we can explore in future after we gain more experience in implementing DPWCS.

26. Ms Sylvia Lim asked how we intend to roll out the DPWCS areas under Section 31G. Our plan is to implement the DPWCS at Kampong Bugis, a greenfield development site that will enable the DPWCS to be planned and integrated from inception. We currently have no plans for a nation-wide rollout of the DPWCS to existing developments or brownfield sites. Our priority is to implement the Kampong Bugis DPWCS well and ensure that it operates smoothly. With the experience gained, we will continue to enhance the development and management of PWCS in Singapore by working with the relevant agencies on suitable areas, taking into account site, technical and financial considerations.

27. Ms Sylvia Lim also asked about extending DPWCS to landed estates. One of our considerations in implementing DPWCS is the financial viability and sustainability of the system. Currently, we do not think there are sufficient economies of scale to implement DPWCS in landed estates for the system to be financially viable. We will focus our efforts on non-landed developments, such as Kampong Bugis. Let me also assure everyone including residents of existing developments that we will not declare a DPWCS area lightly. It will be carefully and judiciously considered, we will work with the planning agencies, taking into account not only site and technical considerations but also costs. We will only do it if it benefits the residents and cost will be a key consideration.

PWM Bonus

28. Mr Speaker, Sir, I will now address Members’ questions about the Progressive Wage Model (PWM) Bonus.

29. Ms and Mr Louis Ng asked about the profile of the cleaning workforce. There are currently more than 40,000 resident cleaners and 17,000 foreign cleaners; their average age is 60 years old and 37 years old respectively. The composition has remained stable over the past three years.

30. The Tripartite Cluster for Cleaners (TCC) has been rallying all stakeholders to support measures to uplift the skills and wages of cleaners, including the PWM Bonus. To raise awareness among workers, a need highlighted by Mr , the unions have been conducting roadshows and briefings and have reached out to more than 6,500 workers. More sessions are being planned, and cleaning businesses have also been reminded to inform their workers.

31. Let me express our appreciation to Mr Zainal Sapari for championing the interests of our cleaners as Chairman of the TCC. Thanks to the TCC’s efforts, some cleaning businesses have already factored in the PWM Bonus in their contracts that extend beyond 2019. Others such as 800 Super Holdings Limited have also been giving out additional bonuses to motivate and appreciate their workers. And indeed, I hope more businesses will do the same. I also support Mr Zainal’s heartfelt call for service buyers to safeguard the welfare of their cleaners.

Compliance with PWM Bonus Requirement

32. Several members asked how the PWM Bonus will be enforced, and how errant businesses would be flagged out. NEA and the Ministry of Manpower (MOM) routinely inspect the records of cleaning businesses to ensure compliance with the PWM requirements. This includes making sure payslips are issued, and training records of cleaners are kept.

33. Mr Murali Pillai was concerned how existing cleaning contracts would be affected, and what considerations the Director-General of Public-Health would take into account before invoking the powers to postpone the effective date of the PWM wage requirements. Mr Zainal Sapari also suggested giving a grace period for businesses who do not pay the PWM Bonus when the requirement takes effect.

34. The TCC had consulted service buyers and providers extensively, and deliberately recommended that the PWM Bonus be implemented only in 2020. This was to give cleaning businesses ample time of more than three years to adjust their service agreements accordingly. As such, all cleaning businesses will be required to pay their resident cleaners the PWM Bonus from January 2020. For cases of non-compliance, NEA will review their circumstances on a case by case basis.

35. Mr Louis Ng raised concerns about cleaners’ wages being reset when a contract ends and there is a change in service provider. The TCC shares such concerns, and had therefore proposed the yearly PWM wage increments, which would steadily lift wages at all skill levels for cleaners entering into contracts after 1 July 2018. We urge cleaning businesses and service buyers to recognise the skills and experience of workers, and pay them fairly.

36. By investing in productivity enhancements and technology, businesses can afford to sustain higher wages for their workers. The Government will continue to support cleaning businesses in pursuing productivity projects through various schemes such as the Environmental Services Productivity Solutions Grant or ES PSG. Under the ES PSG, cleaning businesses can receive support for up to half the cost of eligible productivity-enhancement solutions, up to a maximum of $250,000. Service buyers should also reject cheap-sourcing in favour of performance-based contracting. This will encourage cleaning companies to invest in productivity measures without compromising the interests of cleaners – a concern highlighted by Mr Desmond Choo.

Training Support for Cleaners

37. Besides ensuring fair wages, we need to help our cleaners upskill and keep up with industry demands. Ms Joan Pereira asked whether training is tailored to the needs of all cleaners. All cleaners attend a basic cleaning course before starting out. The courses are offered in various languages, including English, Mandarin, and Malay. To facilitate learning, courses are designed to emphasise hands-on learning which I think is best suited to the profile of the workers.

38. Cleaners continue to receive support after they start work. For example, Horsburgh Integrated Services groups new and experienced cleaners together to facilitate on-the-job training. Another example is Lifeline Cleaning Pte Ltd, where older workers comprise 80% of the staff. The company tapped on WorkPro Job Redesign Grant and successfully trained its cleaners to use machines to clean floors more efficiently. In fact, I recently met 67-year old Mr Lee Thian Kok from Lifeline, who has learnt to operate automated cleaning devices that make his job easier and more productive. Mr Lee exemplifies the spirit of lifelong learning, and is proof that older cleaners are not disadvantaged. We will support workers of all ages to upskill and reskill, and encourage more businesses to adopt these best practices.

39. Cleaning work must not only become more efficient; it must also become more safe. Dr Chia Shi-Lu highlighted the need for tighter safety measures to protect cleaners at work. NEA and Workforce Singapore have jointly developed a list of enhanced tools, chemicals and machines that businesses can adopt to make cleaning more effective and safe for cleaners. Cleaning supervisors can also receive training under the Environmental Cleaning Workplace Skills Qualification (WSQ) framework to implement risk controls, and educate workers on workplace safety.

Extending the Scope of Progressive Wage Model

40. Mr Louis Ng suggested extending the Progressive Wage Model (PWM) beyond the current pool of cleaners, to cleaners who are directly employed as well as foreign workers. The PWM was designed to help cleaners employed by cleaning businesses earn higher incomes through upskilling. Previously, these workers saw their wages depressed as cheap-sourcing was prevalent across the industry. The PWM sought to level the playing field, amidst a more comprehensive effort to raise wages of lower-income citizens across the board.

41. While the PWM does not apply to cleaners who are directly employed, we urge employers who are doing well to share their gains and reward their workers fairly, adopting the key principles of the progressive wage model.

42. Foreign workers are hired on different terms, and employers already bear other related expenses such as additional levies and accommodation arrangements for engaging them. While the PWM does not apply to the foreign workers, again, we encourage employers to adopt the key principles of progressive wages when paying their foreign cleaners.

43. Regarding Mr Louis Ng’s suggestions to adopt the R1 scheme for foreign workers in the cleaning sector, there is already such a scheme for the Services sector which covers cleaning businesses. Under this scheme, employers enjoy lower levies and longer employment periods when they train and retain their foreign cleaners. Mr Ng also proposed mandating a minimum proportion of R1 foreign cleaners; we will study this suggestion with MOM.

44. As for Dr Intan Mokhtar’s suggestion of extending the PWM to the Food and Beverage industry, I will convey it to my MOM colleagues to consider. With regard to Mr ’s comments, I would like to clarify that the PWM is not a national minimum wage, but a framework to raise wages in tandem with productivity improvement. It is applied to selected sectors prone to market failure such as the cleaning sector, the lift sector that Mr Chen Show Mao talked about, and the security and landscaping sector where wages are lower.

Deterrence Against Litterbugs

45. Dr Intan Mokhtar also asked for stronger enforcement action against motorists who litter and cause roadside fires. The Penal Code Review Committee has proposed to introduce a new clause linking those who litter materials containing embers to a fire that subsequently occurs at that place. The Committee also recommends that higher penalties be imposed for causing fires by littering of materials that contain embers, such as cigarette butts. The Government will review the Committee’s recommendations.

46. Regarding Dr Intan’s suggestion to deploy more surveillance cameras to tackle high-rise littering, NEA has deployed such cameras through our service providers more than 5,500 times over the past five years resulting in more than 5,000 enforcement actions. We will continue to be vigilant in tackling this issue, while also working with the community to foster collective responsibility and ownership of our shared spaces.

47. Dr Intan asked whether make-shift rubbish bins placed by good Samaritans to collect rubbish during community events or private functions would contravene section 17 of the Act. The answer is no – section 17 is not intended to discourage such activities.

48. Finally, let me come back again to the reason for introducing provisions on the PWM Bonus. We want to recognise our cleaners who have played such a big part in keeping Singapore clean and green. As Mr Zainal Sapari said, there are many ways each of us can show our appreciation to the cleaners around us. By being considerate in the way we use public spaces; by picking up after ourselves; and by saying “thank you” to them. More importantly, as Dr Intan Mokhtar has emphasised, the onus is on each and every one of us to keep our housing estates clean. Er Dr Lee Bee Wah has shown the way with the Nee Soon “No Cleaners Day”. We must build a city that is truly clean because Singaporeans are gracious and mindful of their community and the environment.

Conclusion

49. Sir, to conclude, the EPH Amendment Bill is a milestone in our journey to transform our environmental services industry through innovation and technology. At the same time, we will upskill our environmental services workers, and improve their livelihood and working conditions. All Singaporeans will benefit as we ensure a cleaner and greener environment in the years to come. I thank Members for their support of the Bill.