Volume 94 Thursday No 10 24 March 2016

PARLIAMENTARY DEBATES

OFFICIAL REPORT CONTENTS

Written Answers to Questions for Oral Answer Not Answered by 3.00pm

Page

17 Lift Upgrading Programme for Previously Ineligible Flats (Mr ) 1 18 CPF Special or Retirement Account Funds for Mortgage Arrears (Mr Zainal Sapari) 1 19 Labour Crunch in Maritime Industry (Er Dr ) 2 21 Separating Clients' Deposits and Payments to Prevent Unlawful Withdrawal of Funds (Mr ) 3 22 Upgrading of Private Estates above 30 Years Old (Mr ) 4 23 Repairs and Maintenance Schedule for Nature Parks (Ms Rahayu Mahzam) 5 24 Difference between Parking Fees for Surface and Multi-storey Car Parks (Assoc Prof ) 5 26 Feedback from Public Consultation on Fresh Start Housing Scheme (Er Dr Lee Bee Wah) 6 28 Ensuring Quality of Works Done for Home Improvement Programme (Dr ) 7 LIFT UPGRADING PROGRAMME FOR PREVIOUSLY INELIGIBLE FLATS

17 Mr Zainal Sapari asked the Minister for National Development (a) whether HDB can reconsider to (i) offer the Lift Upgrading Programme (LUP) to ineligible flats due to cost considerations (ii) offer LUP again to those blocks of flats that have not been successful if there are changes to the owners of the benefiting units; and (b) whether HDB will withdraw the right of the owners of the benefiting units to ballot if their units have been rented out or they could not be contacted for whatever reasons.

Mr : When the Lift Upgrading Programme (LUP) was introduced in 2001, there were more than 5,300 blocks that did not have direct lift access. Almost 1,000 blocks exceeded the LUP cost cap then. However, over time, HDB developed various cost-effective technical solutions so that more blocks could benefit from LUP. These efforts have reduced the number of ineligible blocks to around 150. Despite HDB’s best efforts, there will still be some blocks where the LUP cannot be offered due to excessively high costs or technical constraints. By necessity, we have to set a financial cap on how much we can build and spend on each benefiting unit. This is so that we spend prudently. For blocks that have failed the LUP polling previously, HDB will evaluate appeals on a case-by-case basis. Key considerations are whether the circumstances have changed since the last polling, and if there is at least 75% support from residents before appealing for LUP to be re- offered. This is regardless of whether there has been any change in owners of the benefiting units. Singaporean flat owners are the eligible voters for LUP. Even if they have rented out their flats, they remain eligible to vote for the LUP. As such, the rights of the owners of the benefiting units to ballot will not be withdrawn. If the eligible voter is unable to cast the vote for the LUP, he can appoint a proxy to vote on his behalf during the polling period. Back to Contents CPF SPECIAL OR RETIREMENT ACCOUNT FUNDS FOR MORTGAGE ARREARS

18 Mr Zainal Sapari asked the Minister for Manpower whether HDB can reconsider 2

allowing HDB home owners who do not have sufficient savings in their CPF ordinary account to utilise their CPF special or retirement accounts to manage their home mortgage arrears.

Mr : CPF members can use their Ordinary Account (OA) savings for the downpayment, monthly instalments and mortgage arrears for their housing purchase. The Special Account (SA) savings are generally preserved for members’ retirement needs, and cannot be used for housing purposes. When members turn 55, a Retirement Account, or RA, is created. Monies from the OA and the SA are transferred to the RA up to the Full Retirement Sum. The OA continues to exist even after the RA is created. Any remaining OA balance, as well as new contributions to the OA after the age of 55, can be used to meet housing needs. In addition, any RA savings in excess of the Basic Retirement Sum can also be used for housing purposes. HDB proactively helps flat owners manage their arrears early. If their financial difficulty is temporary, HDB will consider reducing or deferring their instalments to help them resolve their arrears. For flat owners who can no longer afford to keep their flats, HDB will help them explore more options, including right-sizing to a more affordable flat. For CPF members who do not have sufficient OA savings to meet their housing needs, we have exercised flexibility where cases merit it. For example, we have, upon appeal, allowed CPF members to use their RA savings that originated from their OA to pay for their housing, even if their RA savings are below their Basic Retirement Sum. Overall, we need to strike a balance between allowing CPF members to use their SA and RA savings for housing needs and safeguarding such savings for their retirement needs, so as not to compromise their retirement adequacy. Back to Contents LABOUR CRUNCH IN MARITIME INDUSTRY

19 Er Dr Lee Bee Wah asked the Minister for Manpower (a) what is the status of the labour shortage in the maritime industry; (b) how has the labour crunch affected the industry; and (c) whether the Ministry will adjust the current foreign worker quota to help ease the situation.

Mr Lim Swee Say: The port is an important pillar of Singapore’s economy providing 3

critical connectivity to global markets. To strengthen Singapore’s status as a leading transhipment hub, an adequate pool of skilled manpower is essential to support port operations round the clock. Overall, while manpower is tight, for certain jobs that are physically taxing or require sea- going expertise, such as stevedores or harbourcraft crew, foreign workers complement the local workforce due to a shortage of Singaporeans willing to do the work. Nonetheless, most companies are well within their Dependency Ratio Ceiling (DRC) for the employment of foreign workers. As part of developing the Sectorial Manpower Plan (SMP), the Maritime and Port Authority (MPA) is also working with industry partners and the unions to help more Singaporeans take up sea-faring as well as shore-based careers in the maritime sector. These efforts include putting in place programmes to train more Singaporean seafarers and developing career ladders for various professions in the sector. MPA is also promoting the use of technologies and automation at our port to reduce reliance on manual labour. For instance, MPA is working with PSA to pilot the use of Automated Guided Vehicles (AGVs). As port operations expand, the use of AGVs will reduce the need for more foreign port workers. With the implementation of productive technologies and efforts to address the manpower shortage for specific jobs at the port, we do not see a need to adjust the foreign worker quota for this industry at this point of time. We should instead press on with our efforts to drive productivity improvement and accelerate the shift towards a more manpower-lean mode of port operations. Back to Contents SEPARATING CLIENTS' DEPOSITS AND PAYMENTS TO PREVENT UNLAWFUL WITHDRAWAL OF FUNDS

21 Mr Gan Thiam Poh asked the Minister for Trade and Industry (Industry) whether the Ministry will consider enhancing the protection of consumer interests by requiring merchants and sellers to set up and maintain client accounts to keep the deposits/payments separate from their daily operating accounts and making unlawful withdrawals from these accounts a criminal offence. 4

Mr S Iswaran: The Government’s approach to consumer protection is based on promoting fair trading among retailers, and helping consumers make informed purchasing decisions. This approach has benefited consumers and businesses, as the vast majority of our retailers are legitimate businesses who want to serve their customers well. As the nature of consumer transactions can vary widely in practice, broad-based requirements such as mandating that deposits be put into escrow accounts would be onerous, and raise the cost of doing business which will ultimately be passed on to consumers. In sectors where deposits are the norm, the Consumers Association of Singapore (CASE) has worked with sector associations to develop the CaseTrust accreditation scheme. Most businesses accredited under the CaseTrust scheme provide protection for consumers’ deposits. This usually takes the form of business insurance which will compensate consumers if the business becomes insolvent. Currently more than 700 businesses from various sectors offering motoring, renovation and spa and wellness services are CaseTrust accredited. CASE recently announced that it has partnered the Hair and Cosmetology Association (Singapore) to work on CaseTrust accreditation to promote fair trading, improve the sector’s image and raise consumer confidence. CASE is in similar discussions with the Association of Catering Professionals. We encourage more businesses to become accredited as this helps to provide consumers with greater confidence that their interests are safeguarded. Back to Contents UPGRADING OF PRIVATE ESTATES ABOVE 30 YEARS OLD

22 Mr Chong Kee Hiong asked the Minister for National Development how many private estates there are that are currently above 30 years old and whether there is a plan to upgrade these estates through the Estate Upgrading Programme by a certain due date.

Mr Lawrence Wong: Since the Estate Upgrading Programme (EUP) was launched in 2000, MND has selected 63 private estates through nine batches of EUP, benefitting more than 46,000 households. There are about five to nine estates selected in each batch. In selecting estates for EUP, we consider the age of the estate as well as the physical conditions. We prioritise the older estates, which have greater need and more opportunities for significant improvement through the upgrading works. These works include installation of park furniture 5

and playground equipment that provide a more conducive environment for community bonding, and footpath improvement to provide better connectivity and accessibility. With the nine batches of EUP, we are making good progress in upgrading the estates that are more than 30 years old. MND aims to offer EUP to more estates. There are slightly more than 20 estates, which are more than 30 years old and have yet to be selected for EUP. We will continue to prioritise these older estates for EUP. The pace of the programme will depend on the resources available. We will also coordinate with other government agencies that are also planning upgrading works, so as to minimise inconvenience to the public. Back to Contents REPAIRS AND MAINTENANCE SCHEDULE FOR NATURE PARKS

23 Ms Rahayu Mahzam asked the Minister for National Development (a) whether NParks has a maintenance schedule for the nature parks such as that for repairing foot paths and lights; and (b) whether there are any plans to upgrade the foot paths and facilities at the Nature Park.

Mr Lawrence Wong: NParks carries out quarterly checks of the amenities within nature parks, and repairs them if necessary. NParks also replaces their lights and footpaths every 15 years, and will consider accelerating the replacement cycle if the conditions warrant it. In addition, NParks responds expeditiously to replace or repair damaged amenities when ad-hoc feedback is received. For Bukit Batok Nature Park, NParks recently completed an extensive series of maintenance works to improve the amenities. For instance, in 2015, NParks upgraded the existing lamps and implemented measures to reduce soil erosion near footpaths. Moving forward, NParks also plans to install a fitness corner with senior-friendly exercise equipment to make Bukit Batok Nature Park even more friendly to users of all ages. Back to Contents DIFFERENCE BETWEEN PARKING FEES FOR SURFACE AND MULTI- STOREY CAR PARKS

24 Assoc Prof Fatimah Lateef asked the Minister for National Development whether there can be a review of the monthly parking fees at HDB estates in particular the fee difference 6 between surface and multi-storey carpark lots.

Mr Lawrence Wong: Parking charges are levied to recover part of the cost of providing and maintaining HDB car parks. As it costs more to provide and maintain multi-storey car parks (MSCPs) compared to surface car parks, the monthly season parking rate is generally higher for MSCPs. Some precincts are served by both surface car parks and MSCPs. As the surface lots are generally nearer to the flats, they are understandably more popular. In some instances, this imbalance in demand has resulted in congestion in some surface car parks while the MSCPs are under-utilised. In these car-parks, one of HDB’s measures to regulate and even out the parking demand is to equalise the monthly parking charges between the surface and MSCPs. However, HDB has no plans to implement island-wide equalisation of season parking charges as there is no widespread imbalance in parking demand today. Back to Contents FEEDBACK FROM PUBLIC CONSULTATION ON FRESH START HOUSING SCHEME

26 Er Dr Lee Bee Wah asked the Minister for National Development whether the Ministry can provide an update on the feedback received from the public consultation on the Fresh Start Housing Scheme.

Mr Lawrence Wong: The Fresh Start Housing Scheme aims to help second-timer families with young children living in public rental housing to own a home again. In November and December last year, MND and HDB held a series of focus group discussions to better understand the challenges that public rental tenants face in owning a home again, and seek views on how to support them in a meaningful way. We consulted former rental tenants who have successfully moved on to homeownership, current rental tenants, as well as social workers and frontline public officers who work with rental tenants. Most of the participants agreed that the Fresh Start Housing Scheme cannot just be a housing scheme, but must include guidance and support for families along their journey to homeownership. There was also broad agreement that the families benefiting from the Scheme must also do 7

their part to get their lives and finances in order. This means that they must show the commitment to find a job and maintain a stable income. At the same time, there was a strong view that the Scheme should focus on the children, and ensure that they are attending school regularly, so that the next generation can make progress and secure a better future. More detailed summaries of the consultation are available on MND’s website. Based on the feedback received, we are now working out the detailed parameters for the Fresh Start Housing Scheme. What is clear is that the Scheme must be more than just the provision of another housing grant and a new flat. It’s about supporting the families in need and helping them to solve their problems holistically. We continue to welcome feedback and will announce more details about the scheme soon. Back to Contents ENSURING QUALITY OF WORKS DONE FOR HOME IMPROVEMENT PROGRAMME

28 Dr Tan Wu Meng asked the Minister for National Development (a) what are the measures that HDB has put in place to (i) ensure the quality of Home Improvement Programme (HIP) upgrading works; (ii) minimise disamenities to residents undergoing HIP; and (b) what are the penalties imposed on contractors performing substandard HIP work.

Mr Lawrence Wong: The Home Improvement Programme (HIP) seeks to enhance the safety and functionality of our older flats, and help residents to resolve some common maintenance issues that they may face within their flat, such as ceiling leaks or spalling concrete. HDB adopts a multi-pronged approach to ensure the quality of HIP upgrading works. First, HDB has a stringent procurement process to engage capable and financially-sound contractors and consultants. Second, HDB maintains a list of recommended building materials suppliers for contractors to use in HIP projects. Third, HDB requires contractors to provide sample units before mass production. Once these sample units are approved, they serve as the quality benchmark. Fourth, HDB engages consultants with full-time staff on site to supervise upgrading works. Fifth, HDB institutes a robust quality audit and enforcement regime. Sixth, HDB has regular dialogue sessions with the contractors’ senior management to share the expected quality and workmanship standards and alert them of the quality issues that require their remedial action and pre-emptive measures. Seventh, HDB and consultants carry out functional tests to check on 8 electrical services installed and the water-tightness of the upgraded toilets. Finally, HDB and consultants conduct a final inspection on completed upgrading works prior to the handover to residents. Residents do not need to move out of their flats when HIP is underway. Understandably, there will be some inconveniences when the works are in progress. HDB seeks to keep these to a minimum, and to complete work on the interior of each flat within 10 working days. When work is in progress, temporary common toilets/bathrooms are provided at the void deck. Portable toilets are also set up at the end of each working day in flats undergoing upgrading works, for residents’ use at night. In addition, an air-conditioned study room and rest area are provided for residents’ use. Residents can also provide feedback, make enquiries and seek assistance at the Information Centre. Should there be any service or quality lapse, HDB will take enforcement action against the contractor. This includes imposing administrative charges and demerit points. If a contractor performs poorly, the contractor may be precluded from tendering for future HDB projects. Back to Contents

Office of the Clerk of Parliament Singapore, 24 March 2016