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No big spikes or falls in COE premiums

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CERTIFICATE of Entitlement (COE) prices ended mostly flat yesterday, with marginal increases and dips in the various categories.

Premiums for bigger cars fell slightly - by over 2 per cent - from $47,604 to $46,502 when the second round of bidding in March closed yesterday.

Likewise, the open-category COE, which can be used for any vehicle type but ends up mostly for bigger cars, also fell to $46,667 from $48,002.

The biggest drop was in the COE premium for commercial vehicles, which fell 5 per cent to $46,502.

During the first round of bidding this month, that premium cost $48,890 - which was a seven-month high.

Meanwhile, COE prices for smaller cars and motorcycles crept up slightly.

Premium for Category A COE - for cars up to 1,600cc and 130bhp - went up from $45,000 to $45,504.

Motorcycle premiums rose slightly from $6,503 to $6,589.

Despite the changes being just marginal, dealers said this did not mean demand was easing off.

Nicholas Wong, general manager of Honda authorised agent Kah Motor, pointed out that there were 3,836 bids yesterday for Category A COEs, higher than the 3,518 in the previous round.

He said in the short-term - until the next quota period begins in May - prices across all categories would likely stay within this region.

"Of course, throughout this year, the prices will be trending downwards.

"The question is, when it will start moving down and by how much," he added.

dansonc@sph.com.sg


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Thursday, March 24, 2016 - 08:20
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Friends and family attend funerals of SMRT staff

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SINGAPORE - Close to 150 well-wishers, including colleagues, close friends and relatives, went to SMRT maintenance trainee Nasrulhudin Najumudin's house in Tampines Street 12 on Wednesday (March 23) morning to pay their last respects.

Mr Nasrulhudin and his colleague Mr Muhammad Asyraf Ahmad Buhari, 24, died on Tuesday after an oncoming train struck them while they were walking along the tracks near Pasir Ris MRT Station to investigate a possible fault.

Many turned up at the Tampines home as early as 9am in the morning, sharing fond memories of the 26-year-old, whom they said had dreamt of joining the police force one day or furthering his studies at university.

Among them was his cousin Khairul Yazid, who grew up with him in Tampines, where they both live.

"He was considering between becoming a policeman and continuing his studies," he told The Straits Times.

"I looked up to him as an older brother," added the 22-year-old student, who rushed home from his hostel in Nanyang Technological University after hearing about the accident.

The mood grew sombre as Mr Nasrulhudin's body was brought back from the mortuary around 2.35pm, carried by close relatives.

Land Transport Authority (LTA) chief executive Chew Men Leong was among the visitors.

He said the LTA is helping with investigations by the Ministry of Manpower and police, but did not give further updates or a timeframe.

He added: "Right now, our focus is with the family and to support them."

Minister-in-charge of Muslim Affairs Yaacob Ibrahim and Transport Minister Khaw Boon Wan also visited the 26-year-old's family at their home. Mr Khaw went to Mr Asyraf's funeral at Lengkong Empat as well.

About 200 friends and relatives had gathered there.

Mr Asyraf's family, who were in Saudi Arabia on pilgrimage, arrived at about 2.30pm in an SMRT taxi. SMRT chief executive Desmond Kuek also visited the family.

Earlier in the day, more than 30 friends and relatives of the two men also turned up at the morgue where the families identified their bodies.


This article was first published on March 23, 2016.
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Thursday, March 24, 2016 - 08:19
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Singapore layoffs in focus ahead of budget as oil flounders

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Layoffs in Singapore have hit their highest levels since the global financial crisis, highlighting the adverse impact of sustained low oil prices on the city-state.

A big chunk of the losses have come in marine and offshore industries, areas where Singapore has long dominated. Singapore is a global trading hub for physical oil and 70 per cent of the world's jack-up rigs are built there.

Now that oil prices have slumped to multi-year lows, both intentional and local companies are announcing hefty layoffs.

Among global companies hit by the oil crash that have announced job cuts, is Oslo-listed BW Offshore, which builds and operates ships that can produce and store oil offshore.

Singapore rigbuilders Keppel Corp. and Sembcorp Marine have collectively cut some 10,000 jobs in the last year.

This comes as Singapore Exchange-listed oil and gas companies reported a wave of impairments and provisions that followed rig delivery deferments and cancellations.

Moody's in late-February downgraded the debt ratings of several key drillers, such as Transocean and Ensco, which may hit rig builders in Singapore. including Keppel Corp., Sembcorp Industries and Sembcorp Marine as the drillers' access to funds will likely tighten, triggering rig orders deferments and cancellations, said Singapore's DBS bank in early March.

Order books are also likely to decline this year.

"The yards are the last in line in terms of cash flow trickle-through; if vessel and rig owners continue to under-utilize their assets, order wins are likely to remain low," wrote DBS analysts in a note on March 15.

The mood in general is still cautious. Even though oil prices have gained recently, they have not traded at a level that gives confidence to the market, Andy Hendricks, contract driller Patterson-UTI Energy CEO told CNBC's Power Lunch on Monday.

"As an industry, we (don't) really know what that number is yet, what price WTI will settle in and inspire a little bit of confidence," he said.

DBS analysts said the situation for rig builders is unlikely to improve unless oil rebounds to $60 a barrel-about 40 per cent higher than current levels around $42 a barrel.

The US rig count has fallen by two-thirds by over the past year to its lowest since 2009, reported Reuters this week.

To weather the energy downturn, some companies are looking to diversify their businesses.

Singapore's Keppel Corp., for instance, will likely deploy more funds to its property segment as offshore and marine segment flounders, said OCBC Investment Research's Low Pei Han. The company's other businesses includes waste-to-energy, data and logistics.

Singapore's troubles go beyond oil and gas as jobs in the financial and technology sectors were also hurt, with global banks Barclays and Standard Chartered, as well as Japanese online retailer Rakuten and US internet company Yahoo also axing staff.

Forecasters last week slashed their growth expectations for Southeast Asia's leading financial hub ahead of Thursday's budget.

Private economists polled by the Monetary Authority of Singapore (MAS), the city-state's central bank, see gross domestic product (GDP) growth at 1.9 per cent this year, down from a previous forecast of 2.2 per cent in December and below last year's reading of 2 per cent.

Last year marked the weakest pace of growth since the economy contracted 1.3 per cent in 2009, so if GDP growth does slip below 2 per cent this year, it will mark a new seven-year low.

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Thursday, March 24, 2016 - 08:57
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Our turn to follow Mr Lee's rainbow: PM

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The Government's weekly Cabinet meeting began on an unusual note yesterday, to mark the first anniversary of the death of founding prime minister Lee Kuan Yew.

The first 10 minutes of the usually closed-door meeting were streamed live on the Facebook of Prime Minister Lee Hsien Loong, showing him addressing the Cabinet as he gave an insight on the way Mr Lee mentored the younger ministers.

When he was the prime minister, Mr Lee kept an eagle eye on every aspect of Singapore, said PM Lee.

"Yet (he) knew that he could not control everything personally, and that even more so, another prime minister would have to govern in a different way.

"He advised us that one could not use 10 fingers to catch 10 fleas, quoting Mao (Zedong). One had to focus on the important things and build a team,'' PM Lee recounted.

Mr Lee also made an enormous effort to ensure that those who came after him succeeded in the running of the country, he added.

The Prime Minister pledged his Cabinet ministers will hold firm to the ethos and values Mr Lee had stood and fought for as they face new challenges in a changing world.

The Prime Minister was wearing a badge with the phrase "follow that rainbow", used by Mr Lee in 1996 to urge Singaporeans to chase their dreams. The Cabinet then observed a minute of silence.

PM Lee spoke in the very room that Mr Lee had chaired or attended meetings for four decades. He said: "This Cabinet Room was Mr Lee's command tent, where issues were examined and debated, decisions were taken, instructions given, and progress tracked."

After Mr Lee stepped aside as prime minister in 1990, he continued to attend Cabinet meetings as senior minister until 2004, and then as minister mentor until 2011.

Mr Lee would recount the history and considerations behind the topic at hand so that the Cabinet was aware of the context when making fresh decisions, PM Lee said.

But he also encouraged ministers holding different views to argue their case, and he was prepared to make hard decisions.

To illustrate, PM Lee cited the decision to cut Central Provident Fund contribution rates in 1985, when Singapore suffered its first recession since independence.

Mr Lee had systematically raised contributions to 50 per cent of wages during a period of rapid growth, PM Lee recounted.

But the Economic Committee - which PM Lee had chaired at the time when he was minister of state for trade and industry - concluded that costs had got out of line and a reversal in policy was needed to jump-start the economy.

His ministry proposed cutting the rate from 50 per cent to 40 per cent.

"Then, to our surprise, he said if you are going to do it, do it properly. 40 per cent is neither here nor there.

"Make a decisive move, and cut it to 35 per cent.

"Furthermore, cut only the employer's contributions. Do not cut employee's contributions to increase take-home pay.

"That may sweeten the package but it will do nothing to make us more competitive," PM Lee recounted.

This was a lesson "not just in economic management but in political leadership", PM Lee said.

It was through such lessons that three generations of younger ministers have "benefited from his experience and insights, his views and concerns, and increasingly, his thoughts for Singapore's future".

PM Lee said: "Now we are a new team, dealing with a changed world in new ways, but always inspired by Mr Lee's example and his memory, and holding firm the ethos and the values that he stood and fought for.

"These will guide us as we, in turn, follow the rainbow that Mr Lee himself chased all his life: to build an exceptional nation and to improve the lives of all Singaporeans."

waltsim@sph.com.sg


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Thursday, March 24, 2016 - 09:01
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More funds to fight noise pollution at building sites

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Complaints about noise dropped from 16,600 in 2013 to 14,900 last year, new figures from the National Environment Agency (NEA) reveal.

One of the reasons for the fall, according to NEA, is the Quieter Construction Fund (QCF) which will be extended until 2018 and have its funding cap increased.

QCF was introduced two years ago by NEA to encourage companies to adopt innovative technology to reduce the impact of construction noise.

Since its inception, 41 applications have been approved to receive grants totalling more than $1.3 million. It has also helped to reduce violations of permissible noise limits from 483 in 2013 to 330 last year.

The enhancement of the fund will benefit companies purchasing more expensive equipment such as the silent piler, which costs about $750,000 - around $550,000 more than conventional ones.

Said Fong Peng Keong, NEA director of pollution control department: "If you are on a site where a contractor has applied for QCF and has already put in place solutions, you will experience a drastic drop and feel the noise level has improved."

From next month, the funding cap of the purchase of quieter equipment will be raised from a maximum of $50,000 to $150,000 per item.

The average grant given to date is $32,000.

NEA chief executive Ronnie Tay said: "We are aware the costs of quieter construction technology and noise mitigating measures have remained high and the industry welcomes more funding assistance."

MA Builders attracted more than 20 complaints and a fine from the authorities while working on a development in Jurong in 2013.

Since successfully applying for a $40,000 QCF grant to buy an $80,000 noise control barrier, which it has implemented at its new River Valley construction site, it has received less than 10 complaints and has had no legal noise violations.

"It's almost impossible to meet the limits in residential areas where our construction site is only 30m away from other buildings," said manager Kent Ang.

"QCF complements productivity because work will not be stopped for noise violations and there will be no monetary loss through fines as well."

domteojy@sph.com.sg


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Thursday, March 24, 2016 - 09:06
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Singapore steps up checks at entry points

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Security has been beefed up at Changi Airport and other Singapore checkpoints, following Tuesday's blasts at Brussels Airport and a city metro station that killed 31 people and wounded 270.

The authorities here have also stepped up checks and patrols at key transport nodes, a Ministry of Home Affairs spokesman told The Straits Times yesterday. "We will calibrate security measures according to the threat environment," he said. No further details about the improved security were provided.

Mr Christopher de Souza, Government Parliamentary Committee chairman for Home Affairs and Law, said: "Heightened security at land, sea and air checkpoints must be expected. We must mentally prepare ourselves with a 'when' mindset and discard the comfortable 'if' mindset." He was echoing a point made last Friday by Home Affairs and Law Minister K. Shanmugam, who announced a major ramp-up of counter-terrorism measures.

Speaking at an event in Yishun yesterday, Mr Shanmugam said the threat of a terror attack has evolved significantly into "a serious monster". "Brussels was in a heightened state of alert and yet the attack took place," he said. "We have to prepare ourselves, and I think every major city has got to prepare itself. There are measures in place, but I again emphasise that unless you turn the entire city into a prison, it's not going to be possible to counter every possible attack."

Singapore will strengthen its security, such as by installing more closed-circuit television cameras in public places and training emergency response teams to react swiftly to attacks. There is also a need for building owners and event organisers to impose stringent security measures.

One measure suggested in the wake of Tuesday's attacks is screening all passengers and visitors before they enter airports. However, experts say this is unnecessary and would cause congestion.

They also ruled out measures used in other countries. At major Indian airports, for example, only travellers are allowed to enter terminals, while in Israel, checks are carried out as early as along approach roads to the airport.

Mr H.R. Mohandas, head of the diploma in aviation management programme at Republic Polytechnic, said: "Adequate steps are in place at Changi Airport with security patrols in the public areas, as well as checks on passengers before they enter the restricted areas."

Singapore Management University Assistant Professor Terence Fan, who specialises in transport, said keeping people away goes against efforts to market the airport as a shopping and dining haven.

Professor Rohan Gunaratna, who heads the International Centre for Political Violence and Terrorism Research, said youth and other vulnerable people should be encouraged to take up roles in youth or community groups, to give them a stake in the country's security.

karam@sph.com.sg
calyang@sph.com.sg

Additional reporting by Ng Huiwen


This article was first published on March 24, 2016.
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Thursday, March 24, 2016 - 10:38
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Watchdog drafting guidelines for online ads

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Complaints against misleading online ads and those that are offensive doubled last year

The number of complaints and queries about online advertisements doubled last year, as did the figure for adverts that consumers found derogatory.

The Advertising Standards Authority of Singapore (Asas) released its 2015 figures yesterday, showing that it received 272 overall complaints, just one fewer than in 2014 and down from 307 in 2013.

There were 91 complaints about online advertisements last year, up from 45 in 2014.

Some consumers were misled by discounts and rates that turned out to be not as attractive as advertised, while other ads falsely depicted or made questionable claims about certain products.

Asas is now drafting guidelines for digital and social media advertising. It has conducted a public consultation exercise and will finalise the guidelines by the second quarter of this year.

Asas chairman Tan Sze Wee said some retailers hold the mistaken belief that the Singapore Code of Advertising Practice does not apply to their online advertisements and that they are free from the restrictions of traditional media.

"Asas would like to highlight that (the code) applies to advertisements in all media, including electronic communications and websites," Professor Tan said.

"The key premise of (the code) is that all advertisements must be legal, decent, truthful and honest."

He added that the spike in such feedback may have been due to consumers spending more time on their mobile devices.

There are also more advertisements on websites, social media channels and e-mail, as more businesses venture online.

Last year, there were 13 complaints about derogatory advertisements, up from six in 2014.

They included an ad put up by eatery OverEasy Orchard at Liat Towers in Orchard Road that featured three scantily clad women exposing their buttocks and the tagline: "Seriously sexy buns. Two are better than one. Smack that."

Asas received four complaints saying that the advert was sexist, and ordered it to be taken down.

Other feedback that Asas received involved imagery and depictions that people felt were derogatory towards their own ethnic groups.

Meanwhile, the beauty, hair and slimming industries received the most flak for their ads, followed by the food and beverage, health, finance, and travel industries.

Besides getting businesses to take down or amend ads, Asas can ask media owners, such as Singapore Press Holdings and the Association of Media Owners (Singapore), which sit on the Asas council, to withhold advertising space from those that repeatedly engage in unethical advertising.

mellinjm@sph.com.sg


This article was first published on March 24, 2016.
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Thursday, March 24, 2016 - 11:02
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Scheme for quieter equipment beefed up

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Gripes about noise fall; NEA to raise cap for Quieter Construction Fund, extend it to 2018

The number of complaints about noise dropped from 16,600 in 2013 to 14,900 last year, new figures from the National Environment Agency (NEA) reveal.

One of the reasons for the fall, said the NEA, is the Quieter Construction Fund (QCF), which will be extended until 2018 and have its funding cap increased.

The QCF was introduced two years ago by the NEA to encourage firms to adopt innovative technology to reduce construction noise. Since its inception, 41 applications have been approved, with grants totalling more than $1.3 million disbursed. It has also helped to reduce the number of violations of noise limits from 483 in 2013 to 330 last year.

The higher cap will benefit firms buying equipment such as the silent piler, which costs about $550,000 more than conventional ones.

"If you are on a site where a contractor has applied for QCF and has already put in place solutions, you will experience a drastic drop and feel the noise level has improved," said NEA director of pollution control Fong Peng Keong.

From next month, the funding cap for buying quieter equipment will be raised from $50,000 to $150,000 per item. The average grant given to date is $32,000.

NEA chief executive Ronnie Tay said: "We are aware the costs of quieter construction technology and noise-mitigating measures have remained high, and the industry welcomes more funding assistance."

MA Builders has benefited from the QCF. The firm had more than 20 complaints and was fined while working on a development in Jurong in 2013.

Since successfully applying for a $40,000 grant to buy an $80,000 noise control barrier, which has been installed at a River Valley construction site, it has received fewer than 10 complaints and has not breached the legal noise limits.

"It's almost impossible to meet the limits in residential areas, where our construction site is only 30m away from other buildings," said its manager, Mr Kent Ang. "The QCF complements productivity because work will not be stopped for noise violations and there will be no monetary loss through fines."

domteojy@sph.com.sg


This article was first published on March 24, 2016.
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Thursday, March 24, 2016 - 11:20
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Pendeta Cikgu Ariff meninggal

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MASYARAKAT Melayu/Islam Singapura kehilangan sebutir lagi permata persuratan dengan pemergian Pendeta Dr Haji Muhammad Ariff Ahmad.

Dikenali dengan panggilan mesra Cikgu Ariff, Allahyarham menghembuskan nafas terakhirnya pada 9 pagi semalam di Hospital Khoo Teck Puat.

Allahyarham meninggal dunia pada usia 91 tahun akibat sakit tua.

Beliau meninggalkan balu, Hajah Sarinah Haji Haniff, empat anak dan enam cucu.

Menurut anaknya, Encik Muhammad Shah Peri, Allahyarham dimasukkan ke hospital pada 14 Mac lalu dan keadaannya bertambah lemah dari hari ke hari sejak itu.

"Sebelum dimasukkan ke hospital, Allahyarham boleh berbual seperti biasa dan ingatannya masih tajam. Cuma badannya sahaja yang lemah.

"Di hospital, keadaannya menjadi lebih teruk sehinggalah awal pagi tadi (semalam), doktor suruh kami mengumpulkan ahli keluarga di hospital," kata Encik Muhammad Shah Peri, 51 tahun.

Mayat Allahyarham dibawa pulang ke rumah teresnya di Nemesu Avenue sekitar 11.20 pagi.

Jenazahnya dibawa ke Masjid Ba'alwie bagi solat jenazah sekitar 4.30 petang yang dipimpin mantan Mufti, Shaikh Syed Isa Semait.

Saudara-mara, rakan-rakan guru serta pemimpin masyarakat dan negara membanjiri kediaman Allahyarham sejak mendapat berita pemergian budayawan negara itu.

Antara yang hadir tengah hari semalam ialah Menteri Sekitaran dan Sumber Air, Encik Masagos Zulkifli Masagos Mohamad; Anggota Parlimen GRC Jurong Cik Rahayu Mahzam; dan sasterawan, Haji Suratman Markasan.

Menteri Perhubungan dan Penerangan yang juga Menteri Bertanggungjawab Bagi Ehwal Masyarakat Islam, Dr Yaacob Ibrahim, menyertai solat jenazah bagi Allahyarham di Masjid Ba'alwie pada sebelah petang.

nurdhuha@sph.com.sg


This article was first published on March 24, 2016.
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Thursday, March 24, 2016 - 11:28
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Singapura kekal destinasi paling popular pelancongan Muslim

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SINGAPURA mengekalkan kedudukannya sebagai destinasi paling popular dalam pasaran pelancongan Muslim.

Menurut kajian terkini Indeks Pelancongan Muslim MasterCard-CrescentRating (GMTI) 2016, yang meliputi 130 destinasi, Singapura menduduki tempat paling atas dalam senarai destinasi Bukan Negara Pertubuhan Kerjasama Islam (OIC), dengan Thailand, United Kingdom, Afrika Selatan dan Hongkong dalam kumpulan lima negara teratas.

Hongkong menaiki satu tangga kepada tempat kelima. Taiwan dan Jepun juga masing-masing memperbaki kedudukan – antara 10 negara teratas pada tahun ini.

Malaysia mengekalkan kedudukan sebagai tempat tertinggi bagi destinasi OIC, sementara Amiriah Arab Bersatu (UAE) di tempat kedua dan Indonesia keempat.

Singapura berada di tempat kelapan dalam senarai destinasi gabungan keseluruhan.

Kajian itu juga menunjukkan pada 2015 terdapat 117 juta kedatangan pelawat Muslim di peringkat global – mewakili hampir 10 peratus pasaran pelancongan.

Ia diramal berkembang kepada 168 juta pelawat menjelang 2020.

Ketua Pegawai Eksekutif (CEO) CresentRating & Halal Trip, Encik Fazal Bahardeen, berkata kajian indeks 2016 itu kini menjadi alat utama bagi destinasi di dunia bagi mendekati pelanggan Muslim.

“Satu trend terbesar yang kami lihat ialah destinasi bukan OIC melakukan usaha gigih menarik pelancong Muslim dan mereka kini mewakili 63 peratus daripada destinasi dalam GMTI.

“Misalnya Jepun dan Filipina telah mengambil langkah utama sejak beberapa bulan lalu mempelbagaikan ketibaan pelancong mereka dan dalam pada itu meningkatkan ekonomi mereka,” katanya.


This article was first published on March 24, 2016.
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Thursday, March 24, 2016 - 11:34
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73-year-old Hougang resident dies from dengue

Budget 2016: Jurong Innovation District to be set up

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SINGAPORE - A new Jurong Innovation District (JID), envisioned as the industrial park of the future, will be built as part of the Government's push to encourage more innovation.

The first phase of the district, which will be in Jurong West, is expected to be completed by around 2020.

Singapore's earlier industrial estates were developed for specific industries focused mostly on production, said Finance Minister Heng Swee Keat during his Budget speech on Thursday (March 24).

But nowadays, research, innovation and production are closely intertwined, he pointed out.

The district will bring together researchers, students, innovators and businesses to develop products and services of the future. It will also create an environment to house different activities within a single next-generation industrial district.

It will be the future of innovation for enterprise, learning and living, Mr Heng added.

"Fifty years ago, we transformed Jurong from swampland into a thriving hub for the manufacturing industry that powered Singapore's economic growth. Now, we will take another leap to create the industrial park of the future," he said.

"This has the potential to transform how we live, work, play and create."

JTC, the national developer of industrial infrastructure, is currently constructing Launchpad@JID, to serve as a space for entrepreneurs, researchers and students to design, prototype, and test-bed their new innovations.

JTC has also launched an Open Innovation Call to invite private sector technology owners to test-bed and develop innovative and sustainable infrastructure solutions within the district.

There are already other new types of industrial parks being built in other parts of Singapore,

JTC, for instance, is also building a creative industry cluster across the road from Singapore Institute of Technology (SIT) which will move to Punggol.

SIT, Singapore's fifth autonomous university, was set up in May 2009 to offer more degree opportunities to polytechnic graduates. It now operates from an interim campus at Dover with satellite branches in each of the five polytechnics.

Besides the new innovation district, the Government will also try to encourage innovation by promoting start-ups in new and existing industries.

To achieve this, a new entity called SG-lnnovate will be set up, Mr Heng announced.

SG-lnnovate will match budding entrepreneurs with mentors, introduce them to venture capital firms, help them to access talent in research institutes, and open up new markets.

It will build on what has been done by the lnfocomm Investments Private Limited (llPL), and work with Spring and EDB to expand the accelerator programmes to new and emerging sectors such as smart energy, digital manufacturing, fintech, digital health and Internet-of-Things.

In addition, up to $4 billion from the Research, Innovation and Enterprise 2020 Plan will be directed to industry-research collaboration.

"Innovation is enabled and enhanced by the use of technology but innovation goes beyond that. It is fundamentally about new ways of doing things to meet the needs of people and industries better," said Mr Heng.

"Innovation is the engine of value creation and growth. We must make innovation pervasive in our society."


This article was first published on March 24, 2016.
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Friday, March 25, 2016 - 09:00
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Budget 2016: Double whammy for property developers

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SINGAPORE'S Finance Minister, Heng Swee Keat, told Parliament on Thursday that it is too premature to relax property cooling measures given the price level and current market conditions.

"We will continue to monitor developments in the property market closely," Mr Heng said in his Budget 2016 speech.

Here are some comments:

Low Hwee Chua, Head of Tax Services, Deloitte Singapore and Southeast Asia:

"As hinted by various Government officials, the Finance Minister has confirmed that it is too early to relax the current property cooling measures."

"It is a double whammy for property developers as manpower costs will increase due to the non-deferment of the previously announced increase in foreign worker levies for the construction industry."

Christine Li, director and head of research at Cushman & Wakefield:

"As expected, the property cooling measures are not lifted. This did not come as a surprise."

"The residential transaction volume has been halved since the implementation of the Total Debt Servicing Ratio (TDSR) framework in 2013 and there is "frustrated demand" in the market as buyers are deterred from entering the market due to the additional buyer's stamp duty (ABSD)."

"As a result, a pre-mature lifting of the cooling measures, particularly the ABSD, could result in buyers rushing into the market for fear that property price may rise due to increased demand."

"Given that the only beneficiaries of the lifting of the cooling measures such as tweaking the ABSD will be property developers, Singaporeans who can afford a second property (as ABSD does not apply to first time buyers), permanent residents and foreigners, it does not serve the interest of the masses as having these measures in place will help to keep prices affordable."


This article was first published on March 24, 2016.
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Friday, March 25, 2016 - 09:00
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Budget 2016: Foreign worker levy increase deferred in marine and process sectors

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SINGAPORE - Foreign worker levy increases will be deferred for one year in the marine and process sectors due to challenging business conditions and the reduction of Work Permit holders in these sectors.

Levies will also remain unchanged for another year in manufacturing, Finance Minister Heng Swee Keat said in his Budget speech on Thursday (March 24).

The Government will proceed with levy increases in the services and construction sectors, as announced in Budget 2015.

In construction, the levy rate for Basic Tier R2 workers will be raised from $550 currently to $650 on July 1 this year, and to $700 on July 1 next year.

The minimum experience requirement for man-year entitlements (MYE)-waiver workers will be raised from two to three years from July 1 next year to encourage firms to retain their more experienced workers to support productivity.

For the services sector, levy rates for R2 workers will be raised from $300 to $450 for the basic tier, $400 to $600 for Tier 2 and $600 to $800 for Tier 3.

The levy rates for S Pass holders will also go up on July 1. The Basic Tier rate will be raised from $315 to $330, while the Tier 2 rate will be increased from $550 to $650.


This article was first published on March 24, 2016.
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Budget 2016: Business-minded focus on the future and help upstream for families

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SINGAPORE - Mr Heng Swee Keat's maiden Budget announced on Thursday (March 24) afternoon has a singular focus: to transform companies, so they can work together and with the government, to raise productivity, automate and innovate processes, and expand overseas.

At the core of the $73.4 billion Budget are measures to give grants to companies, co-fund bank loans to companies, and to increase R&D activity.

There are also measures for the people but these are modest in comparison.

For example, $4.5 billion is set aside for the Industry Transformation Programme to support enterprises and industries. Another $4 billion is set aside for industry-focused R&D.

In contrast, new programmes for households are relatively modest. The new Silver Support Scheme that gives cash allowances to lower-income seniors will cost $320 million this year and is expected to increase as the population ages and more cross the cut off age of 65 to qualify for the allowance. The existing Workfare income supplement has been made more generous, and $770 million is to be paid out next year.

Special transfers for households this year amount to $500 million. These will be given out in the form of the GST voucher, CPF Medisave top-ups for older Singaporeans and service and conservancy rebates.

Special transfers for businesses amount to $2.2 billion. This includes $790 million under the extended Wage Credit Scheme to co-fund wage increases.

All these have to be seen within the context of an increase in social expenditure overall. Social development spending these days takes up a big chunk of the Budget - 46.7 per cent in FY 2015.

Still, individuals hoping for tax breaks will be disappointed this year, especially given that companies get a 50 per cent corporate income tax rebate this year, up from 30 per cent, subject to a cap of $20,000.

But this was is not unexpected. In last year's Budget, taxpayers got a 50 per cent income tax rebate for their incomes earned in FY 2014, even as top earners saw a hike in their tax rates. This year, unemployment rates continue to be low and median incomes have sustained growth. Meanwhile, businesses are bracing for a global slowdown.

The bottom line: workers can fend for themselves, while the firepower from the Budget is trained on companies.

Hence the business focus of Budget 2016.

This is after all a tough fiscal year - it's the start of a new term of government, so the state coffers are bare. It has to live within its revenue. Luckily for Singaporeans, its operating revenue is supplemented by the returns from long-term reserves. This has provided a welcome cushion for the Budget.

This year, the reserves added $14.7 billion in Net Investment Returns Contribution (NIRC) to the Budget. This was thanks to inflows from Temasek Holdings' funds. Last year, the NIRC was $9.9 billion.

The injection of nearly $15 billion into the national coffers allows Finance Minister Heng Swee Keat to announce a Budget surplus of $3.4 billion.

Listening to Mr Heng announce his Budget while helming The Straits Times' live blog with my colleague Ignatius Low, I was struck by two things.

The first is Mr Heng's emphasis on partnership and the need for companies to work together and tap on each other's networks to transform the industry.

This would mean companies setting aside traditional rivalries and competitiveness, and seeing how they can work together - perhaps co-invest in infrastructure or bring in automation equipment - that can change the way they all do businesses. Some of the Industry Transformation Programme initiatives aim to get businesses to partner each other. This will require painstaking effort by the trade associations and business and government bodies.

The labour movement made a start with this kind of industry-wide approach, when it worked sector by sector, company by company, to get cleaning and security companies to come up with a progressive wage structure for workers. The private sector will have to do something similar, to work together to transform the way they do business.

The second thing that struck me was the emphasis on supporting families at risk.

The KidStart programme will tap government and community resources to help children up to the age of six from vulnerable families get support in learning, development and health support.

The pilot programme for 1,000 children will cost more than $20 million a year or about $20,000 a child. It is thus a heavy and intensive investment. But as Mr Heng points out, research shows that a child's early life experiences significantly influence their development.

This is a welcome initiative, and brings Singapore in line with developed countries that have such programmes. The United States' well-known Head Start programme for example started in the 1960s and became a national programme in 1981. It supports children from low-income families up to the age of five. Once identified, children get help in learning and social interactions, get access to nutritious meals, health, dental, and mental health programmes. Social workers also work with parents on their parenting skills, and to provide housing stability and financial security.

Such upstream intervention in at-risk families has been shown to help improve children's chances of settling down in school and doing well there.

Another programme that I cheered was the one to give second-timer families another shot at owning a Housing Board flat. This is for families who sold their first flat and then ended up having to rent again. Anecdotally, there are even stories of people who end up living at parks after foolishly selling their HDB flats.

Now if they have young children, they can get grants of up to $35,000 to buy a new two-room flat on a shorter lease that will be more affordable. Families have to show commitment to getting their lives in order, such as by staying employed.

This move helps such families get back on their feet again by giving them a chance to secure shelter over their heads. In the end it is the children who stand to benefit most, moving out of rental flat areas - some of which are plagued with drug and crime - into new HDB estates.

Even though these two programmes will not cost a great deal - likely in the tens of millions, not billions - they signal Singapore's move to be more proactive in helping families in need.


This article was first published on March 24, 2016.
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First Silver Support payout in July

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The much-awaited Silver Support Scheme will make its first payout in July, with some 140,000 Singaporeans aged 65 and above receiving between $300 and $750 every three months.

About three in 10 Singaporeans aged 65 and above will qualify for the payouts, with those living in smaller Housing Board flats receiving more.

The Central Provident Fund (CPF) Board, which is implementing the scheme, will consider three factors in deciding whether a person qualifies: lifetime wages, housing type and level of financial support in the household.

"Some of our older Singaporeans have fewer resources in their retirement years than others, because they earned low wages even after working consistently throughout their lives, or because they stayed home to raise their families," said Finance Minister Heng Swee Keat.

The scheme will provide these seniors "a modest but meaningful supplement to their retirement incomes", he said. "(But) it is not intended to substitute for other sources of support."

The proportion of Singaporeans aged 65 and above will double from one in eight now to one in four by 2030, he noted.

There is no need to apply to join the scheme. Instead, the CPF Board will use information that it already has, such as CPF contribution history and housing type.

To qualify for the scheme, the person must not have contributed more than $70,000 to the CPF by the age of 55.

Those who own or whose spouse owns a five-room or larger HDB flat or private properties will not qualify.

Each member in the household also cannot earn more than $1,100 each month. The eligibility will be reviewed yearly.

These criteria will "make sure Silver Support goes to those who have lower incomes over their lifetimes and less retirement support", Mr Heng said. He added that a retired couple living in a three-room flat can receive $4,800 each year.

Recipients will receive the money in their bank accounts or cheques if they do not have bank accounts.

The scheme was announced by Prime Minister Lee Hsien Loong at the National Day Rally in August 2014. During campaigning in the general election last September, PM Lee described the scheme as one that helps seniors to "have a pension in old age".

A new law was passed in Parliament in August last year and the scheme was to have kicked in by this month, but Mr Heng said that more time was needed because it was a "new and extensive" scheme.

The first payout in July will be a double payment covering six months from April to September.

Thereafter, the payouts will be made every three months: in March, June, September and December.

The scheme costs close to $320 million in the first year. "The cost will likely increase over time as our population ages," noted Mr Heng.

Those who do not qualify for Silver Support will benefit from other help schemes such as the GST Voucher, MediShield Life and the Pioneer Generation Package, Mr Heng said.

Besides the Silver Support Scheme, Mr Heng also announced yesterday increases in the monthly cash allowance for those under the Public Assistance Scheme. A two-member household will receive $870, or $80 more, in cash each month.

To provide more community support for seniors, pilot networks will be set up.

Run by a small team of full-time staff, the networks will involve volunteers, voluntary welfare organisations, businesses and schools.

The measures targeted at seniors will make Singapore a model for successful ageing, Mr Heng said.

Mr Patrick Tay, who chairs the Government Parliamentary Committee for Manpower, said that with the scheme kicking off in July, this gives seniors time to make an assessment of whether they qualify.

Ms Peh Kim Choo, chief of programmes at the Tsao Foundation, said that the difficulties of defining and calculating lifetime wages and household support could have held back the implementation.

But the payouts can make a difference to the seniors, she said. Some will use it for essentials like medical care.

"For those whose basic needs were met already, this additional payout will enable them to save, buy better food and enjoy a little of life's luxuries," she said.

tohyc@sph.com.sg


This article was first published on March 25, 2016.
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Budget to 'build our future together'

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The first Budget of the Govern- ment's new term was unveiled yesterday - a prudent plan that balanced targeted relief for companies and households with the longer-term objective of getting them future-ready.

Finance Minister Heng Swee Keat, delivering his maiden Budget, set the tone early on in his relatively compact speech.

With SG50 celebrations over, it was time to plan for Singapore's next 50 years, he said.

On the economic front, this means not just helping firms and industries ride out current economic uncertainties but, more importantly, transforming them through deeper innovation and collaborations.

Workers, who will have to adapt to changing job demands, will get further help to learn new skills, and the most vulnerable households will get enhanced support to ensure they do not get left behind.

"Core for us to succeed is the spirit of partnership," declared Mr Heng, who circled back often to this theme.

"Together, we are weaving a rich tapestry - each thread a different colour and texture, but woven together to give strength and resilience to our economy and our society."

Mr Heng acknowledged that firms are facing tough conditions, from rising costs to slowing export demand.

But while the outlook is subdued, he noted that the economy is still expected to grow.

"We must not let pessimism take hold, lest it creates self-fulfilling expectations. The Government will continue to monitor the situation, and stands ready to act if conditions warrant."

Nonetheless, he announced a package of measures to provide smaller companies with some short-term relief, such as raising the corporate income tax rebate from 30 to 50 per cent and a new scheme to help small and medium-sized enterprises (SMEs) borrow working capital more easily.

But firms hoping for further delays to foreign worker levy hikes would mostly have been disappointed - he deferred levy increases for work permit holders in only the marine and process sectors, for a year.

Mr Heng stressed that even as firms navigate the current uncertainties, they must keep their eye on the future.

"The global economic landscape is changing, and our challenges are pressing. We have a narrow window. We must find every opportunity to transform, to emerge stronger in the coming years."

To that end, Mr Heng unveiled an Industry Transformation Programme (ITP), estimated to cost $4.5 billion over five years and mostly aimed at helping SMEs scale up.

It envisions technology and innovation at the core of Singapore's SMEs, setting aside over $450 million to encourage SMEs to adopt robotics and other forms of automation.

A new $100 million one-stop trade information management system will enable businesses to share data electronically with one another and the Government, giving them capabilities associated with much larger international firms and potentially over $600 million worth of man-hour savings each year.

While helping businesses prepare for the future economy, the Budget also kept an eye on individuals and households.

A new "Adapt and Grow" initiative will see the current system of government wage support for local hires expanded to cover more jobs and workers.

Low-wage workers will benefit from enhancements to the Workfare Income Supplement scheme, which will now have higher, more frequent payouts and simplified criteria.

Mr Heng also gave details of how the Silver Support Scheme, which supports the most vulnerable seniors, will work.

It will pay out between $300 and $750 every quarter to those eligible, benefiting 140,000 senior Singaporeans.

At the other end of the scale, babies born from yesterday will receive $3,000 in their Child Development Accounts, while a pilot initiative called KidStart will see about 1,000 underprivileged children get learning, developmental and health support in their first six years.

As a result of all these, total government expenditure this year is estimated to be $73.4 billion, the largest ever and a rise of 7.3 per cent from financial year 2015's $68.4 billion.

Despite this, the Budget will see a surplus of $3.4 billion, thanks to the inclusion of revenue contributions from Temasek Holdings.

Analysts said the Budget was a prudent one, with Mr Heng balancing short-term concerns and long-term challenges.

He "maintains a fine balancing act as he tiptoes along this fiscal tightrope," said ANZ economist Ng Weiwen.

"While there are near-term assistance measures to support the economy, an eagle eye is still maintained on pursuing a productivity-driven growth model in the medium term, aiming to raise productivity from current levels of productivity growth which are close to zero per cent."

Economists also welcomed the ITP, which they saw as a big push at driving innovation through a more targeted approach by sector, and integrating restructuring efforts.

Singapore Management University economist Hoon Hian Teck said: "There's always been talk about this, but I must say I walk away from listening (to Mr Heng) feeling that I've heard a game plan for the next 50 years. And it makes me a bit more hopeful - I think we've identified what are the things we have to do to engineer ourselves for the future."

yasminey@sph.com.sg


This article was first published on March 25, 2016.
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Security forces need protection from civil suits: Eng Hen

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While there are countries which no longer give their police and soldiers protection from civil suits, many have come to regret the decision.

And a similar move here could leave Singapore with a security force constantly second-guessing itself, reducing its effectiveness.

This was the response from Defence Minister Ng Eng Hen to Parliament yesterday after Non-Constituency MP Dennis Tan suggested weakening Section 14 of the Government Proceedings Act (GPA).

The provision was inherited from the British and holds that a member of the armed forces, and the police, who causes death or injury to another member of the security forces while on duty, cannot be sued for negligence.

It was this provision which two army officers and the Singapore Armed Forces relied on when sued by the family of a full-time national serviceman who died in 2012 after an allergic reaction to smoke grenades during a military exercise.

The High Court dismissed the suit, and many members of the public questioned the fairness of Section 14 of the GPA.

But Dr Ng explained the need for the provision which lets officers respond to threats effectively instead of wondering whether their actions could lead to them being sued.

Citing a hypothetical example of servicemen being tasked to patrol Jurong Island and spotting a significant threat, Dr Ng said: "Do they stop the person, or will they hold back, thinking, 'If I make the wrong decision, then I'm on my own?'

"A civil suit is not a trivial matter."

Mr Tan said the provision might lead to a moral hazard in which officers might be less inclined to take precautions, thinking they are protected by the GPA.

But Dr Ng replied that the Act actually reduces moral hazard, since it gives immunity only in less serious cases. If servicemen commit rash acts, they are not protected.

They can be prosecuted in the criminal courts and end up in jail, said Dr Ng.

Mr Tan also suggested that the GPA apply only during actual operations and be waived during training.

But Dr Ng said that training must be realistic for it to be effective. Singapore's armed forces cannot be expected to train at one pace and be expected to ramp up their capabilities in real operations.

"There is a saying, 'When you don't train and sweat, you will spill blood in real operations'," he said.

He added: "Can you get a level of proficiency if servicemen think they are not protected during training?"

Dr Ng did invite Mr Tan to table a motion for the House to debate an amendment to the GPA if he felt strongly about it. "Do you want to give our security forces the confidence that when they do their job, and when they do it without recklessness or negligence, that the Government Proceedings Act protects them?" he asked.

Referring to the case of Private Dominique Sarron Lee, who died after being exposed to zinc chloride in the smoke grenades, Dr Ng said: "I looked at the facts very carefully. I think we have done right by everyone. We're of course sad, but I think we still need to do what is right for the entire system."

rachelay@sph.com.sg


This article was first published on March 25, 2016.
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Town councils may have to set aside funds for new lifts

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Town councils may be required to set aside a stipulated portion of their sinking fund to replace old lifts, a move the authorities are considering even as they pledge to step up checks on lifts in the light of recent high-profile accidents.

National Development Minister Lawrence Wong announced the potential measure yesterday when he said his ministry was looking into ways to help town councils manage their finances better.

It wants them to plan ahead and keep an eye on whether they have enough funds for the long term. To this end, it may require "town councils to submit their projections and plans for financial sustainability", he said.

Pinpointing lift replacement, he noted that, as it is a major item of sinking fund expenditure, his ministry is considering "ring-fencing part of the town councils' sinking funds" to pay for it.

Mr Wong was answering Mr Chong Kee Hiong (Bishan-Toa Payoh GRC), who wanted to know whether town councils have enough funds to replace lifts.

Town councils manage HDB estates. Under the law, they are required to set aside a minimum portion of the service and conservancy charges they collect from residents and the grants-in-aid they receive from the Government, to pay for cyclical works.

These include the replacement of lifts and lift parts.

The portion is 30 per cent for one- to three-room flats, and 35 per cent for larger flats, Mr Wong added.

Lift safety and maintenance in HDB estates have hit the headlines in recent months.

Last October, an 85-year-old Jurong resident's hand was severed when the doors of the lift closed before her dog got in, and while the dog leash was looped around her left wrist.

As the lift moved up, her hand was dragged through a gap in the doors. Investigations, however, found nothing wrong with the lift.

In January, the operation of a lift in Punggol was suspended after an inner door remained open while the lift moved.

Then earlier this month, a lift in an Ang Mo Kio block suddenly shot up 17 floors, causing a 36-year-old woman in it to fall and hurt her back. The lift later stalled and trapped the woman inside for more than an hour.

The incidents led the Building and Construction Authority (BCA) to announce that it would step up its audit of lifts in Singapore, especially those in HDB blocks.

It also said there would be changes to the law when it completes its ongoing review of lift regulations this year.

MPs came up with ideas to boost lift safety yesterday.

Mr Ang Hin Kee (Ang Mo Kio GRC) asked if the Ministry of National Development (MND) would establish a skills framework to ensure lift maintenance is up to standard, while Ms Tin Pei Ling (MacPherson) suggested having an internal appraisal system to rank lift companies by their performance.

Replying, Mr Wong said the HDB pays attention to quality when procuring lifts.

"It will and already looks at breakdown rates of different lift models as a quality measure in selecting the new lift model for installation in new HDB blocks," he said.

"Beyond the installation, the rest of it really depends on maintenance, regular, good checks and proper inspection regimes."

Still, the BCA is looking at ways to "strengthen the capacity" of lift technicians and authorised examiners, including a performance-based regime to ensure that lifts are properly maintained, he added.

Mr Pritam Singh (Aljunied GRC) asked if the MND would consider an upgrading programme or subsidy for lifts that have not reached the end of the recommended 28-year replacement cycle but have obsolete parts.A

Mr Wong said the HDB will work with the town councils to help them look for "appropriate replacement for these lift parts, in particular".

yeosamjo@sph.com.sg


This article was first published on March 25, 2016.
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More money in the kitty for baby

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Parents of Singaporean newborn babies will get more help to cope with their children's health and childcare expenses.

They will receive a new grant of $3,000 in their child's Child Development Account (CDA), without having to first deposit money in it.

Also, the Medisave withdrawal limit for pre-delivery expenses - such as money spent on ultrasound scans and prenatal consultations - will be doubled from $450 to $900.

These changes apply with immediate effect to Singaporean babies born from yesterday.

Finance Minister Heng Swee Keat said to laughter from MPs in the House yesterday: "I am told that, on average last year, we had 93 babies born every day. So congratulations to our 93 babies (born today)."

The changes are part of new family-friendly perks in the Marriage and Parenthood Package, which was introduced in 2001 and has been enhanced four times - in 2004, 2008, 2013 and last year.

The CDA scheme involves the Government matching parents' contributions dollar for dollar, up to a cap of $6,000 to $18,000, depending on the birth order of the child.

Parents can open a CDA and use it to pay for expenses such as their child's medical costs and childcare fees, from the time the child is born until he turns 12.

Eligible children will receive the new First Step Grant - which is part of the existing overall government contribution - automatically.

So, while the maximum government contribution remains the same, parents need to deposit only $3,000 to $15,000 for each child - instead of $6,000 to $18,000 - to get the maximum co-matching funds.

With the new grant, an estimated 74 per cent of CDA holders will be able to receive the maximum government contribution, up from the current 60 per cent, said Senior Minister of State Josephine Teo in a Facebook post yesterday.

Mrs Teo, who oversees population issues, added: "Separately, about 5 per cent of CDA holders today do not save into their accounts at all, perhaps because they are unable to do so. They do not enjoy any of the co-matching funds.

"The $3,000 grant will be particularly helpful for this group of parents and their children."

Singapore had 33,793 citizen babies last year, the highest figure in 13 years.

The grant will be deposited into CDAs from July 1, after necessary updates to systems are made.

The Ministry of Finance said parents of children born between March 24 and June 30 should wait until July 1 before saving in the CDA in order to benefit from the grant.

Staff from the Ministry of Social and Family Development will visit all hospitals over the long weekend to explain the grant.

Business development manager Ivan Ong, 32, who is expecting to welcome a second child in May, intends to use the CDA to offset pre-school costs, which have been rising steadily in recent years.

He said he will wait until July to save in the CDA, so that he needs to contribute only $3,000 to get the maximum $6,000 from the Government.

"My wife will take maternity leave and there are a few months to go before we enrol the child in infant care, so I think we can wait."

goyshiyi@sph.com.sg


This article was first published on March 25, 2016.
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