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Forum: Social changes a reason to look at extending HDB lease​


Jul 22, 2024

The 99-year lease on HDB flats continues to be a contentious issue for Singaporeans, especially given how expensive flats have become (Future of HDB flats: A delicate balancing act, says sociologist Chua Beng Huat, July 13; and Don’t allow 99-year HDB lease issue to remain unresolved, July 19).
This is not simply a matter of rising costs.
The Housing Board began its 99-year lease model for its public housing flats in the 1960s. This lease model means that the ownership of the flats will revert to the state after 99 years.
Addressing Parliament, National Development Minister Desmond Lee has said that HDB flats of 99-year leasehold strike a good balance between providing a home for life, asset appreciation, rejuvenating our city and building homes for the new generation.
However, it should be recalled that in the 1960s, the life expectancy of Singaporeans was just 60-plus years. Moreover, Singaporeans married and had children very early then, often in their 20s.
Taken together, the 99-year lease would have allowed the children of the original buyers to live in that HDB home for life if desired. Socially, this makes sense, and provides families with stability and the intimate memories of growing up in that home.
It also helps buyers whose children have a permanent disability or serious illness, giving families the peace of mind that, regardless of finances, the children can spend the rest of their lives in their parents’ home if need be.

Moving forward to the present, the life expectancy of Singaporeans has increased significantly to more than 80 years. Singaporeans are also marrying later and delaying having children, if they have any at all.
These seismic social changes in Singapore ought to be considered in determining anew the length of HDB flat leases. For instance, extending the leases of HDB flats to, say, 150 years may help allay some of these concerns.

Daniel Ng Peng Keat
 

Forum: Make insurers pay for third-party property damage if their client is clearly at fault​


Sep 25, 2024

The Motor Vehicles (Third-Party Risks and Compensation) Act 1960 (MV Act) does not require insurers to make insurance compulsory for third-party property damage.
For third-party property damage coverage, an insurer’s obligations arise solely from the contractual relationship with its policyholder.
The insurance contract requires its policyholder or insured driver to report an accident to the insurer.
While the rationale is sound in not-so-clear-cut motor accidents, it should not apply in all situations.
In situations where there is ample evidence clearly showing that their insured driver was at fault in an accident and is 100 per cent responsible for it, the insurers should be mandated to proceed with a third-party claim.
Nowadays, in-car cameras can provide clear footage of an accident. This can be used to determine if the insured driver was at fault in the accident and the extent of his responsibility.
Insurers can now choose to push the case away and claim that they will send reminders to their insured driver.

The most drastic actions insurers can take are to repudiate liability, cancel the policy, decline renewal of the policy and confiscate the no-claims discounts (NCDs).
None of these actions will encourage their errant insured driver to make an accident report.
And none of these actions protects the victim. They serve only to protect the insurer.
The victim will have to either claim from his own insurance policy or file a civil suit against the errant driver. The victim has to pay the cost of repairing the damage done by the errant driver, bear the increased premiums with reduced NCDs and also high legal fees.
The MV Act not only punishes the victims but also benefits the errant drivers and insurance companies.
Upon policy cancellation, the errant drivers can just sign up for another policy with another insurance company with no penalties.
Insurance companies benefit from charging higher premiums for those who claimed from their own insurance and at the same time they have no obligations to pay for property damage caused by their former clients.
The MV Act should be reviewed, with an added clause which requires insurers to pay for third-party property damage if there is sufficient evidence to show that their client is 100 per cent at fault.

Vincent Tan Zongxian
 

Forum: Let supermarket customers use own bags to hold items before payment​


Aug 06, 2024


FairPrice recently implemented a new policy that lets shoppers use their personal shopping bags and trolleys only after they have paid for their groceries at the cashier. The aim of this move appears to be to prevent theft.
Ever since plastic bag charges were imposed at all major supermarkets, many shoppers have been using their own reusable bags and trolleys to hold groceries before they head to the cashier.
For instance, I bulk-buy heavy items such as dairy products and rice, and using a personal trolley was often the most convenient way to hold my purchases before payment.
FairPrice’s new policy means that shoppers will now have to use the supermarket’s green baskets or metal trolleys, while lugging their personal bags or trolleys as they shop.
Many neighbourhood FairPrice outlets have narrow aisles which make handling more than one trolley challenging and unsafe for shoppers.
My mother, who is in her 70s, has to resort to kicking the green basket along the floor because she has no strength to carry the heavy basket once it is filled with groceries. At the same time, she has to pull her own empty shopping trolley along. If she uses the supermarket’s trolley, there isn’t much space to put her personal trolley inside too.
She was advised by a FairPrice staff member to buy its house-brand metal trolley costing around $47. I presume that a metal trolley like this lets staff see clearly that shoppers are not hiding any item during payment, unlike when they use their own bags.

FairPrice should prioritise its customers’ safety and convenience and make it easier for them to shop using their own reusable bags and trolleys while doing their bit for the environment.

Albert Foo
 

Forum: Look into property tax burden for seniors living in private properties​


Aug 28, 2024

I share Prime Minister Lawrence Wong’s concern that addressing the rising cost of living and improving care for seniors is a critical issue, one that will only become more pressing as our population ages (Govt studying how to tackle cost-of-living concerns, take better care of seniors: PM Wong, Aug 23).
As a community volunteer, I often engage with seniors who express deep concerns about their growing financial burden. What was once a simple lunch at a hawker centre costing $2 has now surged to $6, a stark reminder of how inflation is eroding their financial stability. While initiatives like the CDC vouchers are appreciated, there is a growing sentiment that more substantial action is needed.
This strain is particularly severe for senior home owners of private properties. These homes are not investment properties, but homes that they have built and lived in their entire life. Yet, they now face annual property tax that has risen to thousands of dollars. Without a steady income, this burden is unsustainable and is causing significant hardship for many of our seniors.
I urge the Government to reconsider its property tax policies for senior home owners. It is crucial to ensure that our seniors can enjoy their golden years with dignity, free from the anxiety of financial strain.

Emily Yap Yong An
 
No cronyism.
Among the dozens and hundreds of candidates. Temasek's subsidiary Vertex Ventures has to choose one that smoked cannabis.
Schooling's Olympic gold medal is better than a 3.8+ GPA, double degrees, prior internship experience, and leadership positions in many CCAs.

Singapore’s Olympic gold medallist Joseph Schooling joins venture capital firm​

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Former national swimmer Joseph Schooling has joined Vertex Ventures South-east Asia and India as an associate. ST PHOTO: KUA CHEE SIONG
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Kimberly Kwek

Oct 01, 2024

SINGAPORE – After closing a chapter on an illustrious swimming career in April, Singapore’s sole Olympic gold medallist Joseph Schooling is starting a new endeavour as an associate with venture capital company Vertex Ventures South-east Asia and India.
The firm announced in a LinkedIn post on Sept 30 that the former champion has joined its investment team.
The post read: “Joseph brings with him a unique perspective to our firm.
“As he embarks on this new journey, he will be working alongside our seasoned investment professionals to gain more experience and insights into assessing and making investments in high-growth start-ups.”
Vertex Ventures South-east Asia and India is one of the seven major funds in Vertex Holdings’ global network – the latter is a wholly owned unit of Singapore’s Temasek Holdings.
The fund’s investments focus on sustainability, fintech and healthtech among other things.
Following the announcement of his retirement earlier this year, the 29-year-old told the media that he would be turning his focus to the venture capital space, his swim school Sports Schooling, charity work and assisting his mother May at her trading company.

Before this latest venture, Schooling enjoyed a successful career in the pool, becoming the first Singaporean swimmer to finish on the podium at the Commonwealth Games and the world championships.
At the 2016 Rio Olympics, he made history by winning the men’s 100m butterfly final, overcoming a field that included American great Michael Phelps.
In addition to his Olympic success in Brazil, Schooling also claimed 29 golds at the SEA Games, seven Asian Games medals, a silver at the Commonwealth Games and two bronzes at the world championships.
His exploits earned him the Sportsman of the Year gong a record six times.
Schooling’s agent and manager Ronda Ng said: “Joseph is currently on an attachment with Vertex as he pivots into the VC (venture capital) world. This is an area that Joseph has been actively working in since his retirement from professional swimming in April.”
 

MRT, bus fares to go up by 10 cents for adults who pay by card from Dec 28​

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The Public Transport Council said the Government will provide an extra $250 million in subsidies to cover this deferred increase. ST PHOTO: KUA CHEE SIONG
Kenneth Cheng and Lee Nian Tjoe

Sep 12, 2024

SINGAPORE – Each train and bus ride will cost adults who pay by card 10 cents more from Dec 28, as public transport fares climb by 6 per cent.
Concessionary fares for seniors, students, people with disabilities and low-wage workers who pay by card will rise by four cents per journey, the Public Transport Council (PTC) said on Sept 9 after its yearly review of train and bus fares. About two million commuters are in this group.
The fare changes mean that an adult passenger taking the MRT from Tampines to Raffles Place will pay $2.02 from Dec 28, up from $1.92 now.
In 2023, fares went up by 7 per cent, or up to 11 cents, for adults who pay by card. The 11-cent hike is the highest on record.
Fares rose by 2.9 per cent in 2022 and 2.2 per cent in 2021. In 2020, there was a freeze on fares to help the public cope with the impact of the Covid-19 pandemic.
PTC, which regulates fares and ticket payment services, said the 6 per cent rise is less than a third of the allowable increase of 18.9 per cent for 2024.

This comprises a 3.3 per cent adjustment for 2024 and a 15.6 per cent hike deferred from the 2023 exercise.

The 2024 adjustment was driven by growth in core inflation and wages in 2023, but was moderated partially by an 18.6 per cent drop in energy prices from their peak in 2022, said the council.
PTC said it understands that the cost of living remains a concern for Singaporeans, and it decided to grant the 6 per cent hike to “cushion commuters from the full fare increase”.
The remaining increase of 12.9 per cent will be rolled over to future fare review exercises.

The council was asked at a press conference on Sept 9 why it did not allow more of the deferred hike from the previous exercise to be cleared in this round.
The council’s chairwoman Janet Ang said the increase for 2024 was deemed to be manageable for passengers, adding: “PTC’s mission must be to balance affordability, and reduce the gap between fares and costs.”
The council said the Government will provide an extra $250 million in subsidies to cover this deferred increase.
This is in addition to the more than $2 billion in subsidies it pumps in yearly to keep public transport services running, and extra funding of up to $900 million that will be spent over the next eight years to improve the bus network under the new Bus Connectivity Enhancement Programme.
“The additional government subsidy will help to moderate the fare increase while still accounting for the higher costs of providing public transport,” said PTC.
There will be no change to fares paid in cash on buses. Less than 1 per cent of public transport rides are paid for in cash.
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The cost of adult monthly travel passes and monthly concession passes will remain unchanged too, to help heavy public transport users cap their expenses, PTC added.
The council said operators SBS Transit Rail and SMRT Trains had applied for the full 18.9 per cent hike in 2024, citing reasons such as cost pressures arising from inflation and higher labour costs to keep salaries competitive.
In line with the 2024 fare increase, PTC said it would require SBS Transit Rail to contribute 15 per cent of its expected revenue increase, or $3.05 million, to the Public Transport Fund, which helps households cope with fare increases.
SMRT Trains will contribute 25 per cent of the same, or $9.96 million.
To help defray the fare increases, the Ministry of Transport and the People’s Association said the Government will provide public transport vouchers worth $60 each to resident households with a monthly income of up to $1,800 per person. Each household will get one voucher.
This is higher than the vouchers worth $50 each given out in the previous round to households with a monthly income of up to $1,600 per person.
The higher income eligibility criterion for the vouchers will benefit an extra 60,000 households. The vouchers can be used to top up fare cards or buy monthly passes, and will be given out in two stages.
Households that received a voucher in the 2023 exercise and continue to qualify will receive a voucher automatically. They will be notified by the end of December.
Households that qualify but do not receive a voucher in the first stage can apply for one online or at community clubs from early 2025. More information on the application process will be made public later.
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PTC said households in the 21st to 40th percentile – the average public transport user – spent an average of 1.7 per cent of their monthly income on public transport in 2023, compared with 1.8 per cent in 2021.
Lower-income households in the 11th to 20th percentile, meanwhile, spent about 2.4 per cent of their income on public transport in 2023, down from 2.5 per cent in 2021.
After taking the latest fare and wage increases into account, the share of public transport expenses as a proportion of monthly income for these households will remain similar to that of 2023, said the council.
Public transport users said they expected fares to go up, as has been the case in recent years.
Business consultant Albert Kwan, 39, said this is somewhat justified, given that there are more MRT lines being introduced, and overall public transport connectivity has improved.
Partnerships director Alka Solanki, 52, said the fare increase means an extra 80 cents a day for her family of four, but “it is not going to break my bank”.
“It is acceptable given that there are improvements in MRT connectivity,” she added.
Retired real estate consultant James Tan, 66, said service levels should improve in tandem with fare increases.
Customer success executive Zoey Tan, 35, who now qualifies for a concessionary card for low-wage workers, said fares will become pricier when she changes her job and no longer qualifies for lower fares.
Transport economist Walter Theseira said the cost of operating public transport services has been rising faster than the fare increases that PTC has allowed.
“I expect PTC is also hoping that moderate inflation will give a bit of breathing room in the next few years to spread out the deferred increase,” said Associate Professor Theseira.
 

PAP and WP MPs clash over ruling party’s close ties with NTUC​

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Mr Gerald Giam noted that many PAP MPs and branch chairpersons serve as advisers to NTUC-affiliated unions. ST PHOTO: AZMI ATHNI
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Goh Yan Han
Political Correspondent

Sep 10, 2024

SINGAPORE – Whether the close relationship between the People’s Action Party (PAP) and the National Trades Union Congress (NTUC) is good for workers here was the subject of a 30-minute exchange in Parliament on Sept 9 when the House discussed a Bill to strengthen protections for platform workers.
PAP MPs argued that this alliance has ensured that the views and needs of workers have been conveyed to the political leadership and prioritised, and that this is reflected in the ruling party’s track record since it has been in government.
The issue was raised by Mr Gerald Giam (Aljunied GRC) during the debate on the Platform Workers Bill.
While acknowledging the union leaders’ hard work, the Workers’ Party (WP) MP questioned if they could fully advocate workers’ interests if they were also PAP members.
He noted that many PAP MPs and branch chairpersons serve as advisers to NTUC-affiliated unions.
Should workers’ interests conflict with government policies or party agenda, these leaders may feel pressured to support such policies even if they feel that doing so compromises workers’ needs, said Mr Giam.
“Furthermore, an overly close relationship between the PAP and unions risks creating groupthink, where union leaders are less inclined to challenge prevailing policies or explore alternative solutions,” he added.

He also suggested that if the PAP were to lose power, unions aligned with the PAP might struggle to work with the new government, or lose the support of workers who voted for the new administration, potentially weakening their effectiveness.
Midway through his speech, Mr Christopher de Souza (Holland-Bukit Timah GRC) raised a point of order that Mr Giam had not referenced any provision in the Bill, and what he said was instead “predominantly an attack against the NTUC”.
“We cannot, Mr Speaker, be using Parliament and legislation to craft political speeches that go well beyond the ambit and the scope of the legislation that we are debating,” said Mr de Souza, addressing Speaker of Parliament Seah Kian Peng.

Mr Giam replied that the first part of his speech was a preamble relevant to the points he wanted to make. Among them was that the WP supports tripartite dialogue between employers, unions and the government of the day, but not an explicit alignment between the unions and any political party.
In this regard, NTUC-affiliated Platform Work Associations – which would be given legal mandate under the new Bill – could restrict workers’ choices in joining or forming an association that best represents their interests. He proposed that they be able to form alternative associations not affiliated with NTUC, so as to have representation that is “not beholden to any political party or the government”.
After Mr Giam concluded his speech, Mr Seah pointed him to Section 50 of the Standing Orders of Parliament, which, among other things, instructs MPs to keep their speeches relevant to the subject being discussed.
Leader of the Opposition Pritam Singh then joined the debate, where he questioned the relevance of Mr de Souza’s 2022 Budget speech, which was focused not on government spending but instead urged the PAP to make a decision on the 4G (fourth-generation) leadership.
“It cannot be just accusations made at the opposition, but I think some PAP members ought to reflect on themselves,” said the WP chief.
Mr de Souza replied that at a Budget debate, members have free rein to discuss what they want in addition to the Budget, such as the objectives, values and future they want to see for Singapore.
“I was concerned for the country that we needed leadership. I stood here and gave one of the most difficult speeches of my political career, which is that... without key leadership, budgets are nothing,” he said.

On the other hand, Mr Giam’s speech attacking NTUC, during a debate on a Bill to advance platform workers’ welfare, was political opportunism, Mr de Souza said.
Senior Minister of State for Defence Heng Chee How, who has been with the labour movement for close to 30 years, weighed in, saying that the PAP’s decades-long track record shows that the close partnership has served workers well.
He noted that alliances between political parties and trade unions are not uncommon in many countries, including Britain, the United States and Canada, which Leader of the House Indranee Rajah had earlier cited.
“They don’t do this out of stupidity,” said Mr Heng. “They do this because it serves the interest of the constituents that they represent concurrently.”
He asked that Mr Giam “deal with the facts”, and give due respect to union leaders here. “They are not stooges. Their hearts are in the right place. They do all this for their fellow workers,” he said.
Mr Heng then questioned if Mr Giam’s proposals would make it more or less likely for tripartite partners to come to a sensible agreement that can be implemented for the good of workers.
“Be fair to our unions. Be fair to the NTUC. NTUC is not expecting the Workers’ Party to support us, but at least be fair,” he said.
Senior Minister of State for Manpower Koh Poh Koon also waded into the discussion. He recalled that when the left wing of the PAP split off to form the Barisan Sosialis, the Singapore Trades Union Congress also split into two rival bodies – NTUC and the Singapore Association of Trade Unions (Satu).
“Satu aligned with the Barisan Sosialis, and the Barisan Sosialis in 1988 folded into the Workers’ Party,” said Dr Koh.
“So I think maybe the Workers’ Party should think about changing its name, because if you feel so averse about being associated with workers, you might want to think about something else.”
Mr Giam then asked the PAP MPs if, based on their statements, one can assume that NTUC would become “an instrument of opposition against the new government”, if the PAP were to ever lose power.
In response, Ms Indranee said that she could not speak on behalf of NTUC, though it would be entirely up to the workers and NTUC to decide whether to support any political party.
This is as trade unions elect their own leaders, and will act in ways that they think is best for their unions and their workers, she said.
“What I can say is that the PAP would do its very utmost not to have to give them a reason to think that we would never support them, or that, as a government, we would not do our very best for the workers and the NTUC,” she said.

Ms Indranee also pointed out that with a general election around the corner, to be called by 2025, “the political rhetoric ramps up”.
“Political parties can slug it out amongst themselves, but don’t put the platform workers in the middle of this,” she said.
She added: “At the end of the day, it comes back to this: We have a Bill to pass, and let’s pass this Bill so that we can confer rights and protections on our platform workers.”
A total of eight MPs spoke during the exchange, including WP MP Jamus Lim (Sengkang GRC) and Mr Alex Yam (Marsiling-Yew Tee GRC).
 

Founders’ Memorial’s construction set to cost $335 million​

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Slated to open in end-2028, the Founders' Memorial will be dedicated to independent Singapore’s pioneers and the values they exemplified. PHOTO: COURTESY OF GARDENS BY THE BAY AND NATIONAL HERITAGE BOARD
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Ng Keng Gene
Correspondent

Sep 09, 2024

SINGAPORE – The upcoming Founders’ Memorial at Gardens by the Bay’s Bay East Garden is set to cost $335 million to construct.
Responding to a question from Mr Louis Chua (Sengkang GRC), Minister for Culture, Community and Youth Edwin Tong told Parliament on Sept 9 that the development cost is based on current outlook and projections.
The sum “encompasses building construction and fit-out costs for the exhibition galleries, viewing gallery and outdoor amphitheatre, education and family spaces and amenities, and a 5ha outdoor public garden”, said Mr Tong in a written response. He added that the annual operating cost of the memorial “is being worked out in tandem with the development of operational plans”.
Slated to open in end-2028, the memorial – which was mooted in 2015 following founding prime minister Lee Kuan Yew’s death – will be dedicated to independent Singapore’s pioneers and the values they exemplified. It broke ground on June 5.
Mr Tong said the memorial “will be an integrated gallery and gardens experience”, adding that it will be a space “to capture the spirit of our nation and unify Singaporeans”, by enabling them to reflect on the past and be inspired for the future.
Its twin two-storey buildings, which will be connected by a common basement, were designed by Japanese architecture firm Kengo Kuma & Associates, working in collaboration with Singapore firm K2LD Architects.
The opening of the memorial was originally planned for 2025 – in time for Singapore’s 60th birthday – but its completion date was pushed back owing to extensive infrastructural work that was taking place at its Bay East Garden site. Its adjusted 2027 completion date was then revised due to the Covid-19 pandemic.

The Founders’ Memorial MRT station on the Thomson-East Coast Line will open in tandem with the memorial in 2028.
 

Koh Poh Koon says high bids ‘not the norm’, after $10,158 bid for Marine Parade Central hawker stall​

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A bid of over $10,000 was put up for this vacant stall at Marine Parade Central Market and Food Centre in a July 2024 tender. ST PHOTO: WONG YANG
Wong Yang

Sep 11, 2024

SINGAPORE – While a few stalls at popular locations have attracted high bids, with five at the Marine Parade Central hawker centre crossing $8,000, such tender prices are not the norm, said Senior Minister of State for Sustainability and the Environment Koh Poh Koon.
He was responding on Sept 9 to Mr Yip Hon Weng (Yio Chu Kang), who asked if a recent bid of over $10,000 for a stall at Marine Parade Central Market and Food Centre indicated a trend of escalating hawker stall rentals, and how this would impact food affordability for Singaporeans.
A recent bid of $10,158 for a vacant unit at Marine Parade Central Market and Food Centre had raised eyebrows among netizens in August, with some expressing concern about the impact of high stall rentals on the cost of hawker food.
Dr Koh told Parliament the median successful tender price for cooked food stalls across hawker centres was about $1,800 in 2023. About a fifth of such stalls were awarded at tender prices at or below $500 in 2023.
The median monthly rent of non-subsidised cooked food stalls across hawker centres is about $1,250, and has remained at this level since 2015, he added.
According to a tender notice in July, the bid of $10,158 was the second-highest bid for the stall at the Marine Parade Central hawker centre, after a $10,680 bid that was withdrawn. The next three highest bids ranged between $8,113 and $9,500.
Dr Koh said the recent tender for the stall was “quite competitive”, attracting more than 40 bids.

He noted that the hawker centre is very popular, as it is open for the three meals throughout the day and has good footfall. Marine Parade MRT station, which opened on June 23, has an exit that leads to the hawker centre.
A survey by the National Environment Agency (NEA) found that stall rental makes up less than 10 per cent of stallholders’ operating costs, compared with raw materials, at 56 per cent, and manpower, at 20 per cent, Dr Koh said.
Replying to Mr Yip’s question on support for small business owners and new hawkers to help them with rising stall rentals, Dr Koh said only about 4 per cent of cooked food stalls in hawker centres today are paying rent above the assessed market rent. The remaining 6,000 stallholders pay rent no higher than this value.

NEA – which runs 121 hawker centres in Singapore – has put in place measures to ensure rental prices of hawker stalls are fair and not speculative, he added.
These include disallowing subletting or assigning of hawker stalls to prevent stallholders from engaging in rent-seeking behaviour, and removing the reserve rent in the tender of vacant stalls to allow rental rates to fully reflect market conditions.
Since September 2019, operators of new hawker centres have been required to stagger rentals for the first two years of operations such that stallholders pay 80 per cent of the stall’s rental in the first year, and 90 per cent in the second year.
Dr Koh said this is to help stallholders manage their operating costs as they gradually establish a clientele in the new hawker centre.
Tendered rents are also adjusted to the market rate determined through independent professional valuation after the stallholders’ first tenancy period of three years, he noted.

Dr Koh added: “For those who have, for example, paid a very high price – $10,000, $8,000 – in their first tenancy term, this price will hold. But following their first tenancy term, that price will be adjusted to the assessed market rent, which, as I said, is about $1,200 thereabouts, so that will help to make the price more sustainable for this hawker in the longer term over the next tenancy term.”
At Marine Parade Central Market and Food Centre, a hawker who wanted to be known only as Mr Yang, 53, said his wife Yang Ailan had submitted the $10,158 bid for the vacant stall as their son, who is in his late 20s, wants to start his own cooked food business.
Mr Yang, who helps his wife run a drink stall just four units away from the vacant unit, told ST in Mandarin: “Our son works in the car industry, but he’s not sure how stable it is since the economy isn’t doing so well. So he wants to open his own stall.”
He added: “We thought this would be a good place because we’ve had a drinks stall at this hawker centre for over 10 years, it’s clean, and we are very familiar with the area.”
A 20 per cent to 30 per cent improvement in their drink stall’s business since Marine Parade MRT station opened gave his wife the push to make the bid, said Mr Yang, who added that the tender for the stall has not been awarded.
Other hawkers at the food centre were less sanguine about the prospect of opening a stall with a monthly rental of over $10,000.
Mr Remus Seow, 28, who operates a Japanese fusion food stall, said a 20 per cent increase in sales after the station’s opening lasted only a month, and business has been only marginally better since then.
He told ST: “It’s not fair for them to bid this high because people might fight to meet the price and this could push up future bids. If that happens, who is going to take over the old generation of hawkers, and keep affordable food available for Singaporeans?”
In August 2018, the issue of high tender bids for hawker stalls was also in the spotlight after a woman made a successful $10,028 bid for a stall to sell drinks at Chomp Chomp Food Centre, only to end the tenancy agreement the same day she signed it.
NEA had called the bid – the highest successful bid received up till then – an “outlier”.
Citing two studies that showed stall rentals comprised only 12 per cent of hawkers’ overall costs, and hawkers generally priced food according to what the market can bear, then Senior Minister of State for the Environment and Water Resources Amy Khor told Parliament at the time that stall rentals do not directly affect food prices.
 

COE prices up for most categories; Open category reaches $113,104, highest since Dec 2023​

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COE premiums rose for most categories at the latest tender exercise on Sept 18. ST PHOTO: DESMOND WEE
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Lee Nian Tjoe
Senior Transport Correspondent

Sep 18, 2024

SINGAPORE - Certificate of entitlement (COE) premiums climbed across most categories on Sept 18, with the Open category recording the biggest rise to hit $113,104.
This is the highest since December 2023, when the price of an Open category (Category E) certificate was $118,388.
At $98,524, the price of a Category A COE, meant for smaller and less powerful cars and electric vehicles (EVs), was 2.1 per cent higher than the $96,490 recorded at the previous exercise on Sept 4.
It is the highest Category A price so far in 2024.
For Category B COEs, used to register larger and more powerful cars and EVs, the premium was $110,001, up 3.5 per cent from $106,300 previously.
The Open category COE premium of $113,104 was 5.8 per cent higher than the $106,901 from the previous round. Such certificates can be used to register any vehicle type other than motorcycles, but are almost always used for bigger, more powerful cars.
The commercial vehicle (Category C) COE premium stayed flat at $74,000, just $1 below the price set two weeks ago.

The premium for a motorcycle (Category D) COE rose by 1 per cent to end at $9,900, up from $9,801.
COEs give people the right to own and use a vehicle in Singapore.
The next COE tender exercise will close on Oct 9 – three weeks after the Sept 18 exercise, which is longer than the typical two-week interval.

Some motor dealers were surprised by the latest tender results.
Mr Jason Lim, managing director of BMW Eurokars Auto, said that traders were expecting COE premiums in both car categories to fall by “$2,000 to $3,000”, as business has been slow after premiums went up across the board at the last exercise held two weeks ago.
Instead, COE premiums rose by $2,034 in Category A and $3,701 in Category B.
A sales manager from a mass-market car brand, who asked not to be named as he was not authorised to speak to the media, said the market talk was that aggressive sales promotions from some major brands have not been able to significantly drive up orders over the past two weeks.
Even so, there was a sizeable number of bids in the previous round held on Sept 4 that were not successful – 342 bids in Category A and 267 in Category B, for cars that would have been sold earlier.
These bidders would have been in the mix at the latest tender exercise if the dealers wanted to be able to register the cars.
At the end of the latest tender exercise, there were 468 unsuccessful bids for COEs in Category A and 223 in Category B. Motor dealers said these unsuccessful bidders will likely return to bid in upcoming tender exercises, putting upward pressure on premiums.


Mr Nicholas Wong, chief executive of Honda agent Kah Motor, attributed the latest tender results to the “kiasu mentality” – “kiasu” being Hokkien for “fear of losing out” – as dealers rush to secure COEs in this round.
This is because they expect premiums to go up in October due to the three-week gap, which gives dealers more time to collect sales orders, and the upcoming Car Expo event, which will stimulate buyer interest.
The Car Expo will take place on Oct 5 and 6. It is a large-scale car sales event organised by SPH Media, which publishes The Straits Times.
 

Forum: Factor in rail disruption impacts when considering cost-benefit ratio of good transport system​


Sep 30, 2024

The recent MRT train breakdown gives us much food for thought on how we want to shape our entire transport system as the Government puts the emphasis on being car-lite (Train disruption on EWL to last several more days; SMRT aims to restore services on Sept 30, Sept 26).
We have long been told to give up cars and even private-hire vehicles and taxis in favour of public transportation. Premiums for certificates of entitlement are sky-high and developers of new buildings have been told to reduce parking spaces to discourage car ownership.
At the same time, we have been asked to accept reduced duplication in bus and train lines, and even heads of transport and train services have been nuanced in emphasising the balance between over-maintenance and costs.
While financial prudence is important, when it comes to something that is vital to the daily running of our country with severe downstream effects should a breakdown occur, surely we need more options, more reserve capacity and more manpower to keep our overall operational efficiency high.
The long lines for buses and sky-high private-hire fares during train disruptions, even for a short while, are undesirable as the effect is widespread, especially for the masses, as we are being cajoled into becoming a car-lite society. For many, public transport is not just an option but the only one as other options become more unaffordable.
The cost to the economy when a breakdown occurs is high. The anguish and frustration it causes are often not accounted for but need to be considered when we measure the cost-benefits of keeping public transport strong and healthy.

Peter Loon Seng Chee
 

Forum: Beef up alternative transport options to cope with rail disruptions​


Oct 01, 2024


The recent East-West Line train disruption left many commuters, including myself, with limited options to get home (East-West Line MRT disruption: How a faulty train left a trail of destruction, Sept 27).
It also reminded me of an issue I have found increasingly pertinent: Singapore’s transport system seems to have a distinct lack of alternative options.
During a rail disruption, free bridging bus services are offered between affected stations.
However, these are insufficient to overcome the loss in capacity from MRT trains being out of operation, especially during peak hours.
Lines such as the North-East Line, the only line that serves the densely populated north-east, and the Circle Line, a key line for interchanges, are already crowded even outside peak hours, and past breakdowns on those lines have proven that reinforcement is needed.
The East-West Line going out of order raises another issue, namely that the line’s western section has a lack of nearby alternatives.
The Downtown Line is the only parallel line, and there are few bus routes through the mostly landed estates of Bukit Timah, rendering the Downtown Line a poor substitute for affected commuters until the Cross Island Line connects the two by 2032.

Building more connections between Jurong and the south, such as with the proposed Jurong Region Line extension to Haw Par Villa, should minimise the pain that such breakdowns cause in the future.
Yet, bus routes running parallel to MRT lines have been cut, reducing capacity along those corridors as a whole. It was only public pressure that reversed some of these decisions, such as in the case of bus service 167 in 2023.
This has left commuters with subpar alternatives during an MRT breakdown.
Given these points, I hope that the Land Transport Authority will seriously reconsider its approach to dealing with parallel bus routes, and further develop rail lines to increase rail capacity as soon as possible.

Roderick Foo Sheng Heng
 

Emergency, business hotlines restored after hours-long Singtel landline outage​

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There were more than 2,500 reports as at 3.10pm on service outage website Downdetector. ST PHOTO: KUA CHEE SIONG
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Sarah Koh

Oct 09, 2024

SINGAPORE - The hotlines of the Singapore Civil Defence Force (SCDF) and police, as well as those of hospitals and banks, could not be reached on Oct 8 in an unprecedented islandwide disruption involving Singtel’s telecommunications network.
The disruption lasted for more than three hours before services progressively resumed between 6pm and 7pm.
Netizens began submitting outage reports as early as 2pm on crowdsourced outage website Downdetector when they could not get through public service hotlines. At 3.18pm, there were 2,706 reports on Downdetector.
In a Facebook post at around 4.20pm, the SCDF and police urged members of the public to use SMS instead.
“Members of the public who are experiencing difficulties reaching us at 995 or 999 can SMS SCDF at 70995 or SPF at 70999 instead,” said the police. “The safety and well-being of the public is our top priority. We will provide updates as soon as more information becomes available.”

In an update at around 6.50pm, the SCDF and police said 999 and 995 hotline services were restored.
It is not known how many people were affected by delays in reaching emergency services.


An annual statistics report released by the SCDF on Feb 21 showed it responded to 246,832 emergency calls in 2023. In 2022, it responded to 256,837 calls.
Hospitals and medical centres affected included KK Women’s and Children’s Hospital (KKH), Changi General Hospital (CGH), Singapore General Hospital (SGH), SingHealth and National Cancer Centre Singapore.
KKH and SGH advised patients to contact them via e-mail since their phone lines were down.


CGH, SingHealth and National Cancer Centre Singapore directed patients to use the SingHealth Health Buddy app for appointments, medication orders and billing services.
A National University Health System (NUHS) spokesperson said the organisation was alerted to intermittent connection issues affecting its phone lines in the afternoon, due to the disruption.
“Our patients were, however, still able to manage their appointments or send in their queries via the NUHS app and our e-mail channels,” said the spokesperson, adding that its phone lines were fully restored by 5.35pm.
Mr David Kwok, 74, told The Straits Times he had tried to use his home phone to call SGH at about 2pm to reschedule a medical appointment, but was unable to get through.
Attempts to call Singtel’s customer service hotlines were also unsuccessful, said the retired engineering officer.
Mr Kwok visited Singtel’s flagship store in Somerset to find out what was wrong, and was initially told there might be an issue with the payment of his bills, before he was informed of the service disruption.
“One thing I was very worried about was the 999 and 995 numbers,” he said. “What happens if there’s a fire?”
Other public hotlines affected were those of SimplyGo, a unified ticketing system by the Land Transport Authority, and Changi Airport.
The customer service hotlines of DBS Bank, OCBC Bank and UOB also did not work, with the banks advising customers to use their banking apps instead.
In its Facebook post at around 4.50pm, DBS said: “We have also been informed by Nets that this industrywide issue may also impact transactions, such as QR, credit and debit, and Nets card transactions, via some Nets terminals.”

Ms Chan Chiew Yen was not able to use Nets when she tried to pay for skincare products at Takashimaya at around 5pm.
The 50-year-old executive did not have sufficient cash on hand for her purchase, which added up to more than $200.
She was puzzled as to why there have been such problems with cashless payments.
“I feel it’s time that I start to set aside larger amounts of physical cash, just in case of more outages like these,” she said.
Payment via DBS’ PayLah! and the national PayNow instant fund transfer services were not affected, said DBS.
Many office landlines were also down.
Ms Mariam, a customer service supervisor at a public service agency, said issues with her company’s customer service hotline began at around 2.15pm, and were resolved by 5.30pm.
“While my staff were glad they could take a break during the disruption, our case loads have piled up. The team will have to work twice as hard tomorrow to clear our pending cases,” said the 26-year-old.
Singtel’s first post on Facebook went out at around 3.40pm, noting that some of its customers, including public service hotlines, “may be experiencing intermittent fixed voice service issues”.
Replying to queries from ST, a Singtel spokesman said affected services included residential, corporate and public services. “From 4.45pm, services were progressively restored, starting with emergency services.”
“This is an isolated incident and there’s no evidence to suggest it is a cyber-related event,” said the spokesman, adding that services were fully restored by 6.30pm.
“We are working diligently with our partners to investigate the root cause to prevent this from happening again.”
The Infocomm Media Development Authority (IMDA), which regulates the telecommunications sector, said it is looking into the disruption, which started at 2pm.
“Singtel was required to restore services urgently, with emphasis on key government services,” said an IMDA spokeswoman. “Services, including 999 and 995 hotlines, were progressively restored from 5pm, and all services have been restored by 6.30 pm.”
“IMDA takes a serious view of any service disruption to public telecommunications services, and will investigate the incident,” she added.
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According to service outage website Downdetector, there were more than 2,500 reports as at 3.10pm. PHOTO: SCREENGRAB FROM DOWNDETECTOR
 

Cat A COE price hits 1-year high of $103,799 as premiums rise across the board​

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The Category B COE premium climbed 5.5 per cent to $116,002. ST PHOTO: CHONG JUN LIANG
Esther Loi

Oct 09, 2024

SINGAPORE – Certificate of entitlement (COE) premiums went up across the board on Oct 9, with premiums for smaller cars reaching a one-year high.
At $103,799, the price of a Category A COE – meant for smaller and less powerful cars and electric vehicles (EVs) – was $5,275, or 5.4 per cent, higher than the $98,524 recorded at the previous exercise on Sept 18.
This is the highest price for Category A since October 2023, when it hit $106,000. It is also the first time in 2024 that the premium crossed the $100,000 mark.
The premium for a Category B COE, used to register larger and more powerful cars and EVs, climbed 5.5 per cent to $116,002, from $110,001 previously.
The price of an Open category (Category E) COE ended at $116,000, 2.6 per cent higher than the $113,104 from the previous round. These certificates can be used to register any vehicle type other than motorcycles, but are almost always used for bigger, more powerful cars.
The commercial vehicle (Category C) COE premium climbed to $75,009, 1.4 per cent higher than the $74,000 registered three weeks ago.
The premium for a motorcycle (Category D) COE rose by 1 per cent to end at $10,001, up from $9,900 in the previous tender.

COEs give people the right to own and use a vehicle in Singapore.
The latest COE tender comes days after the Land Transport Authority’s announcement on Oct 4 that the number of certificates available for bidding between November 2024 and January 2025 will increase by 3.6 per cent to 15,834, compared with 15,283 from August to October.
Motor dealers The Straits Times interviewed said the higher COE premiums across the board were expected, given the three-week gap between this exercise and the previous one on Sept 18, instead of the regular two-week interval. This gave dealers more time to collect orders.
The large-scale car sales event The Car Expo – held on Oct 5 and 6 and organised by SPH Media, which publishes ST – also stimulated demand from buyers, they added.
Mr Ng Choon Wee, commercial director of Hyundai distributor Komoco Motors, said there were many genuine buyers at The Car Expo looking to replace their cars, driving up demand for COEs.
This was borne out in the number of unsuccessful bids at the end of the latest tender: 618 in Category A and 432 in Category B. Mr Ng said these figures rose significantly from the previous exercise on Sept 18, when there were 468 unsuccessful bids in Category A and 223 in Category B.

Ms Corinne Chua, managing director overseeing Volvo at motor group Wearnes Automotive, agreed, noting that there were several premium brands selling smaller cars and EVs that qualified for Category A COEs at The Car Expo. These brands received quite a good number of orders, she said.
Mr Jason Lim, managing director of BMW Eurokars Auto, noted that many new Chinese brands are entering the market and trying to secure Category B COEs to deliver their cars quickly. He added that they have the bidding power to do so, thus driving up prices.
He also observed steady crowds with strong buying interest at BMW’s booth at The Car Expo.
Looking ahead, Komoco’s Mr Ng does not foresee an immediate drop in COE prices at the next tender on Oct 23. He predicts that prices would soften gradually towards the end of 2024 owing to the increase in COE quota.
 

500,000 out of 2.8 million MRT journeys affected daily during East-West Line disruption​

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At 3pm on Sept 25, the second and first carriages of the affected train were towed back to the depot. PHOTO: ST FILE
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Kok Yufeng
Transport Correspondent

Oct 15, 2024

SINGAPORE – About 500,000 out of 2.8 million train journeys were affected each day during the severe East-West Line (EWL) disruption that crippled services between Jurong East and Buona Vista stations from Sept 25 to Sept 30.
This means the disruption – one of the worst to hit Singapore’s MRT system in its 37-year history – affected more than one out of every six MRT trips taken by commuters each day.
Addressing 31 questions filed by 21 MPs on the incident in a ministerial statement on Oct 15, Transport Minister Chee Hong Tat apologised again for the significant inconvenience caused by the disruption.
He told Parliament that the Land Transport Authority (LTA) will mete out penalties should investigations reveal any lapses, and rail operator SMRT will bear the costs of the disruption regardless of the outcome of the probe.
Some details of the incident can be determined only after investigations have been completed, he noted.
“As to the root cause, including why the axle box dropped, as well as learning points to improve our responses and prevent future incidents, these are issues which the investigations will cover,” he added.
Describing the Sept 25 disruption as “a setback”, Mr Chee said Singaporeans are understandably concerned about what it means for the safety, reliability and resilience of the MRT system.

“These are also our priorities,” he said, adding that the incident will not shake the public transport sector’s determination to do better.
“While we do our best to avoid disruptions, incidents may still happen from time to time,” the minister added. “What is important is how we respond to the incidents, and how we learn from them to strengthen our resilience against future disruptions,” he said.
The disruption on Sept 25 began with a first-generation Kawasaki Heavy Industries train that developed a fault at about 9am while travelling eastward near Clementi station.

There was smoke detected from the train, Mr Chee said, adding that SMRT stopped the faulty train at Clementi station so passengers could alight, before it was withdrawn to Ulu Pandan Depot.
After the train had turned around at Queenstown station and was travelling westward between Dover and Clementi, an axle box came off the bogie of one of the train cars, causing the wheels of the bogie to derail.
However, as the other 11 bogies of the train remained on the rails, the train was able to continue travelling for a few minutes past Clementi, Mr Chee said.
Based on preliminary assessments, this caused damage to 2.55km of track, as well as trackside equipment like power cables and the third rail, which supplies power to trains.
This damage triggered a power trip along parts of the EWL at about 9.25am, causing four other trains that were between Clementi and Buona Vista stations to stall.

Of these four stalled trains, three were at stations where passengers could alight. The fourth train stalled about 40m before the platform at Clementi station, and the 850 passengers on board were guided onto the tracks by SMRT staff to the station platform.
Given the scale of the disruption, Mr Chee said there was some initial confusion on the ground when the incident occurred.
When SMRT staff attempted to restore train service along the affected EWL section, they realised extensive damage had been caused and it would take time to remove the faulty train from the tracks and to carry out repairs, he added.
Mr Chee stressed that commuter and worker safety was the top priority throughout the recovery process.
This was why LTA and SMRT took the necessary time to complete the repairs and conduct rigorous testing before resuming train service on Oct 1, he said.
Across the MRT system, there are multiple layers of safety controls in place, Mr Chee added.
As the regulator, LTA imposes safety standards that are aligned with international best practices. Operators that do not meet these standards will be subject to penalties, and face additional regulatory conditions and monitoring if necessary.

Mr Chee said LTA also imposes maintenance performance standards as part of its rail licensing conditions, and there are audits by independent external assessors.
Responding to questions by Workers’ Party MP Louis Chua (Sengkang GRC) and Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) about predictive maintenance capabilities, he said the rail operators have installed monitoring systems to detect potential defects where feasible, and use special vehicles to scan the tracks to pick up issues.
However, Mr Chee said he would not comment on whether such systems could have detected risks leading up to the disruption on Sept 25, citing the ongoing investigations.
On reliability, he said LTA and the rail operators take this seriously. While significant progress has been made over the past decade, this continues to be a work in progress, he added.
The minister noted how the MRT network has maintained a mean kilometres between failure (MKBF) – a measure of rail reliability – of at least 1 million train-km since 2019, which he said is comparable with the most reliable overseas metros. In contrast, the MRT network here had an MKBF of 67,000 train-km in 2012.
Estimates show that all MRT lines clocked at least 1 million train-km as at end-September 2024, he said.


Mr Chee said that LTA has been working with the rail operators since 2011 to improve their maintenance regimes. LTA has also upgraded signalling and power systems and invested in infrastructure like signalling simulation centres, to improve the operators’ ability to diagnose and remedy different faults.
LTA’s monitoring of MKBF and rail licensing conditions has ensured that the rail operators here invest sufficiently in maintenance to minimise disruptions too, he added.
In his statement, Mr Chee made the point that Singapore’s public transport network, with six MRT lines and a sizeable fleet of about 5,800 public buses, is more resilient and better able to cope with disruptions than before.
The mitigation measures put in place during the six-day EWL disruption allowed most public transport users to continue with their journeys, albeit with additional travelling time, he said.
Noting that the public transport system was able to cope thanks to the efforts by the respective bus operators and staff on the ground, Mr Chee said planned expansions to the rail network over the next decade will further improve resilience.
He cited the upcoming Stage 6 of the Circle Line, which will close the loop by connecting HarbourFront and Marina Bay stations and provide those living in the west with another route to the downtown area.
The Jurong Region Line, which will open in three stages from 2027 to 2029, will improve connectivity in the west of Singapore and offer more alternative interchanges with the North-South and East-West lines at Choa Chu Kang, Boon Lay, and Jurong East stations.

Similarly, Mr Chee said the Cross Island Line, which will open in stages from 2030, will improve connectivity as almost half of the MRT line’s stations will be interchanges, offering more alternative travel routes.
Responding to questions by MPs about the role that public buses could play to improve public transport resilience, he said buses cannot fully replace rail capacity in the event of an MRT disruption.
He noted how a six-car EWL train can carry more than 1,000 passengers, and run at two to three-minute intervals during peak hours at speeds of up to 80kmh.
In contrast, a double-decker bus can carry only up to 120 passengers and typically runs at much lower speeds depending on traffic conditions.
“Hence, even with up to 80 double-deck bridging buses deployed per day, these were unable to match the full capacity of the East-West Line,” Mr Chee added.
However, he said the public bus network still plays a key role in complementing the rail network here.
“That is why, even when we need to rationalise bus services, we retain at least one trunk route that runs parallel to MRT lines,” he added.
Sixteen MPs rose to seek clarifications from the minister, stretching the discussion to about two hours in total.
Their questions ranged from safety measures put in place for workers to the amount spent by SMRT on maintenance, and whether any further steps like special audits were being taken to bolster rail reliability.
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About 850 commuters on board a stalled train near Clementi MRT station safely disembarking on the tracks and being guided back to the station platform. PHOTO: SMRT/FACEBOOK
Progress Singapore Party Non-Constituency MPs Leong Mun Wai and Hazel Poa asked why a Committee of Inquiry (COI) was not convened in this instance.
LTA has started its own probe into the EWL disruption, with an advisory panel of local and international experts appointed to review the findings.
Singapore’s Transport Safety Investigation Bureau (TSIB), a department of the Ministry of Transport, will also carry out an independent safety investigation.
Mr Leong asked Mr Chee how the recent disruption was different from the severe North-South Line breakdowns in 2011, which prompted then Prime Minister Lee Hsien Loong to order a COI.
Ms Poa said a COI would allow the public to hear testimony from experts, and she asked Mr Chee if he would consider public hearings for LTA’s probe.
In response, Mr Chee said the context in 2011 was different from today, as the MRT system was less reliable. He also noted that COIs were not convened for other serious rail incidents in the past, like the flooding of MRT tunnels near Bishan station in 2017.
Mr Chee said the investigations by LTA and TSIB into the EWL disruption will be done thoroughly, and the findings will be made public. “That is the commitment that we have made,” he added.
A Ministry of Transport spokesman previously said that LTA, as the rail regulator, has the necessary regulatory powers and technical knowledge to conduct a thorough investigation.
 
The PAP MPs in NTUC's Central Committee: Ng Chee Meng, Heng Chee How, Desmond Tan,
The PAP MPs, former PAP MPs and ministers on the board of directors of NTUC Enterprise: Lim boon Heng, Lim Swee Say, Ng Chee Meng
are all sleeping!

NTUC central committee not aware of capital reduction plan in Allianz-Income deal: Desmond Tan​

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NTUC Enterprise went into the deal to strengthen Income in the longer run as it recognised the challenges that Income had been facing. ST PHOTO: AZMI ATHNI
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Goh Yan Han
Political Correspondent

Oct 17, 2024

SINGAPORE – The labour movement’s central committee did not know of the plan to return $1.85 billion to shareholders under the Allianz-Income deal before it was mentioned in Parliament on Oct 14, said NTUC deputy secretary-general Desmond Tan.
Speaking in Parliament on Oct 16, Mr Tan said the central committee had been briefed by Income Insurance and its parent company, NTUC Enterprise, on the strategic imperatives of the deal, but the capital reduction plan was not highlighted to it.
As Income is a non-listed public company, it would have to comply with the legal responsibility of non-disclosure of commercially sensitive information on Allianz’s plans post-acquisition, he said.
Mr Tan made the point in response to questions from Non-Constituency MP Leong Mun Wai and Nominated MP Raj Joshua Thomas during the debate on the Insurance (Amendment) Bill, adding that Income is subject to the Singapore Code on Take-overs and Mergers.
The capital reduction plan is a key factor in the surprising turn of events that saw the Government block the hotly debated $2.2 billion deal between Income and German insurer Allianz that was first made public in July.
Allianz had made an offer to buy a controlling stake of at least 51 per cent in Income.
On Oct 14 in Parliament, Minister for Culture, Community and Youth Edwin Tong said in a ministerial statement that the Government had decided it would not be in the public interest for the transaction to proceed in its current form.

While the Government does not have concerns over Allianz’s standing or suitability to acquire a majority stake in Income, the concerns lie in the terms and structure of this specific transaction, particularly in the context of Income’s corporatisation exercise, he said.
Mr Tong added that before the deal was raised in Parliament in August, his ministry had not seen the plan for Income to return some $1.85 billion in cash to its shareholders within the first three years after completion of the transaction.
During the debate on the Insurance (Amendment) Bill on Oct 16, Mr Tan explained why NTUC had supported the proposed deal.

When NTUC was briefed on the proposal, it was difficult for the unions to learn that Income was planning to sell a majority stake to Allianz, given the company’s history as the labour movement’s first social enterprise, said Mr Tan, who is Senior Minister of State in the Prime Minister’s Office.
But NTUC Enterprise went into the deal to strengthen Income in the longer run as it recognised the challenges that Income had been facing amid a more competitive and tightly regulated insurance landscape, he noted.
“The NTUC central committee agreed with the strategic intent and approached it in good faith,” he said.
He also clarified that NTUC, as a major shareholder of NTUC Enterprise, does not get involved in the day-to-day running of operations.

It delegates to the board of NTUC Enterprise the responsibility of making decisions pertaining to all businesses.
Mr Tan also noted that Second Minister for Finance Chee Hong Tat had acknowledged that NTUC had acted in good faith and in the interest of workers and members.
“If you look at it, the Government and NTUC share the same strategic intent and broader objectives for Income and the co-op movement,” said Mr Tan.
“But as far as the specifics of this transaction are concerned, there is now perhaps a difference in view,” he added, referring to the concerns Mr Tong had raised about the deal.
He added that NTUC has reviewed the matter and accepts the Government’s considerations and decisions on the proposed transaction.
“We note that the Government remains open to any arrangement that Income may wish to pursue, whether with Allianz or any other partners, so long as the concerns highlighted are fully addressed.”
Mr Tan added that Income has committed to study carefully the implications of the ministerial statement by Mr Tong and the amendments of the Insurance Act, and will work closely with the relevant stakeholders to decide on the next course of action.
“The labour movement – which includes NTUC Enterprise and NTUC – is united in (its) purpose and we will continue to do right by our people, and what is necessary for the longer-term interest to serve workers and the people of Singapore,” he said.
In a Facebook post on the evening of Oct 16, labour chief Ng Chee Meng said the decision to halt the Allianz-Income deal and its implications were of key concern to the labour movement and union leaders who had supported the deal.
He added that Deputy Prime Minister Gan Kim Yong, Mr Tong and Mr Chee held an “honest and productive engagement” with NTUC and union leaders to clarify issues after the Parliament sitting.
“NTUC respects and accepts the Government’s decision that the transaction cannot proceed in its current form,” he said.
 

Forum: Need to be more rigorous when examining future proposals after failed Allianz-Income deal​


Oct 18, 2024

Some Singaporeans are understandably relieved at the timely intervention by the Government to block the contentious $2.2-billion deal between NTUC Income and German insurer Allianz on concerns over the deal structure and the ability of the local insurer to continue its social mission (Parliament passes Bill enabling Govt to block Allianz-Income deal; and NTUC central committee not aware of capital reduction plan in Allianz-Income deal: Desmond Tan, both Oct 16).
It is puzzling that the NTUC central committee was briefed on the strategic synergies of the deal for Allianz to buy a controlling stake in Income, but not on the capital reduction plan to return $1.85 billion to shareholders.
As Minister for Culture, Community and Youth Edwin Tong said, Singapore continues to be open to future new proposals if the terms and structure of the proposed deal are robust, protect the public interest, and do not compromise the ability of Income to carry out its social mission.
Hopefully, the takeaways from this failed deal will provide food for thought for a more holistic, rigorous and thoughtful methodology with which to screen investments and assess future proposals.

Woon Wee Min
 

Forum: Impose stiffer penalties on rail operators for disruptions​

Oct 17, 2024

I agree with Transport Minister Chee Hong Tat that public transport fare formulas should primarily reflect changes in operating costs (Public transport fares should not be tied to service levels, disruptions: Chee Hong Tat, Oct 15).
At first glance, this may seem contradictory. After all, we are paying more and may still be experiencing service disruptions. But there is room to introduce stricter penalties for rail operators to ensure accountability.
First, the Government should consider awarding rail contracts to operators with the best performance records. It is unclear why the Thomson-East Coast Line contract was awarded to SMRT, given that several lines operated by SMRT have been prone to frequent disruptions.
To improve service quality, Singapore should open up the bidding process to world-class rail operators globally, rather than limiting it to local players like SBS and SMRT.
Second, there appear to be insufficient penalties for operators who fail to meet reliability targets, which include factors like distance travelled between failures.
Currently, when targets are not met, operators simply do not receive incentive payments. For a disruption, rail operators can be fined a maximum of 10 per cent of their annual fare revenue. But the fines imposed so far seem less.
SMRT was fined $5.4 million for a breakdown in 2015 that affected more than 250,000 commuters, and $1.5 million for another disruption in 2017 that affected 230,000 commuters for a staggering 14.5 hours. Why was the fine lower for a longer disruption? It raises questions about how fine amounts are determined.

I look forward to the findings of the current investigations into the recent disruptions, as well as the slew of measures planned to prevent such occurrences.

Desmond Teo Mingjie
 

Questions to be answered in the Allianz-Income saga​

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The deal between Allianz and Income Insurance was called off by the Singapore Government. ST PHOTO: ARIFFIN JAMAR
Angela Tan and Kang Wan Chern

Oct 18, 2024

SINGAPORE - A plan for German insurer Allianz to buy a majority stake in Singapore’s Income Insurance went awry when a key piece of information belatedly came to light.
Allianz’s plan to return $1.85 billion in cash to shareholders within three years after the transaction in a capital reduction exercise proved to be a sticking point, prompting the Government to urgently pass new laws on Oct 16 to halt the deal.
Had the planned deal gone through, Allianz would have taken a stake of least 51 per cent in Income. NTUC Enterprise would have seen its stake in Income shaved from 72.8 per cent to between 21.8 per cent and 49 per cent, depending on how minority shareholders tender their shares.
The changes to the Insurance Act allow the minister in charge of the Monetary Authority of Singapore to withhold approval in cases that involve an insurer that is a cooperative or is linked to one.
Income used to be a cooperative before it changed its legal structure to a company in 2022, and parent NTUC Enterprise is a cooperative.
NTUC Enterprise, in turn, is set up by the National Trades Union Congress (NTUC), the Singapore Labour Foundation and their affiliated unions.
In a four-hour debate on Oct 16, MPs from both the ruling and opposition parties – as well as Nominated MPs – raised several points related to Income and NTUC entities.

Industry experts who spoke to The Straits Times also questioned the role of those involved in the deal.
ST examines the issues and some of the questions that remain unanswered.

Communication about the capital reduction plan​

NTUC deputy secretary-general Desmond Tan said on Oct 16 that the labour movement’s central committee did not know of the insurers’ plan to return $1.85 billion to shareholders before it was made known in Parliament on Oct 14.

He was responding to questions posed by backbenchers including Progress Singapore Party’s Non-Constituency MP Leong Mun Wai and Nominated MP Raj Joshua Thomas.
Mr Leong had asked about when NTUC’s leaders were briefed on the offer. “If the NTUC central committee did not know the full details, then why did NE (NTUC Enterprise) and Income not brief them on the full details of the transaction?”
Mr Thomas pointed out that NTUC’s secretary-general Ng Chee Meng and president K. Thanaletchimi had issued a statement on Aug 5 that Income can continue to fulfil its social mission only if it has access to additional resources and the ability to scale.
“Did Income brief the NTUC leadership of the proposed initiative to reduce share capital?” he asked.
Mr Tan said that NTUC is a major shareholder of NTUC Enterprise and does not get involved in day-to-day operations, with business decisions delegated to the board of NTUC Enterprise.
In a nod to the questions that MPs posed to NTUC, Income and NTUC Enterprise during the debate, he said: “I will take these comments and questions back... to the relevant entities, so they can find a suitable occasion to address them.”

Singapore Management University’s Associate Professor Eugene Tan told ST that “it boggles the mind that NTUC’s central committee did not know of the capital reduction”.
He noted that NTUC’s Mr Ng also sits on NTUC Enterprise’s board.
“Serious questions must be asked on why this vital part of the proposed deal was not prominently surfaced by NTUC Enterprise to Income’s board and shareholders, as well as the authorities,” Prof Tan said.
Professor Lawrence Loh, director of NUS Business School’s Centre for Governance and Sustainability, added that the Government could also consider improving its regulatory coordination.

Accountability and leadership​

Questions were also raised about how those involved in the decision-making process might be held accountable for how the proposed deal did not match up to earlier assurances made by Income.
During Income’s corporatisation in 2022, it had obtained an exemption from the Ministry of Culture, Community and Youth (MCCY), which oversees the governance of co-ops, to carry over a surplus of $2 billion to the new entity.
Then, Income also told MCCY that it was aiming to build up capital resources and enhance its financial strength.
Mr Thomas asked in Parliament if the Government would be taking steps to ascertain how Income could “negotiate, agree and attempt” to execute a deal with Allianz that was the “opposite” of Income’s representations to MCCY.
He noted that the chairman and chief executive of Income at the time of corporatisation and announcement of the proposed deal with Allianz were the same people.
“How involved were they and the senior management of Income in, on the one hand, making representations to MCCY, and, on the other, arranging the deal with Allianz? Did they not see the contradictions?” Mr Thomas said.
Mr Leong also outlined concerns in Parliament over what NTUC leaders had represented to the public about the deal, when there appeared to be a lack of safeguards on the ability of Income to carry out its social mission.
“The leaders of NTUC, NE and Income owe the public a more substantial explanation on this,” he said.
Prof Tan said that a thorough explanation of how things went wrong is warranted. “Otherwise, the next proposed merger or acquisition is going to have stakeholders be wary from the get-go.”
He also raised doubts about Income’s financial adviser Morgan Stanley. “Did they not see the capital reduction as raising serious questions about Income’s corporatisation and its social mission?”
Income’s chairman Ronald Ong is also chairman of Morgan Stanley’s South-east Asia business. Income said in July that he had recused himself from the decision when Morgan Stanley was appointed as the financial adviser for the deal.
NMP Neil Parekh said during the Oct 16 debate that he failed to understand how Income does not have larger market share and greater pricing power, and said the company needed “strengthening”.
To this end, he suggested that “a new Singaporean-controlled board of directors with real talent, real experience and a real vision” could be put in place.
They could then be tasked with developing a “coherent five-to-seven-year plan to make Income Insurance a world-class company operating profitably not only in Singapore but also in other countries in Asia ex-Japan”, he said.

What next for Income and its shareholders​

MPs also called for explanations of how Income will continue to operate profitably and fulfil its social mission going forward.
Workers’ Party MP He Ting Ru (Sengkang GRC) asked the Government to articulate what it sees as Income’s social mission now, and in the future, given the evolving and competitive insurance landscape.
She asked the Government to redefine Income’s social mission as a life or health insurer to avoid the risk of it focusing only on delivering its present obligations, such as participating in national-level insurance programmes and providing low-cost schemes to union members.
“If we leave the question of what is ‘social mission’ unanswered, it risks presenting these specific matters as central, while missing the wider picture of how Income is fundamentally able to fulfil its social mission as an insurer,” she said.
Mr Thomas said the question of how Income can leverage its corporate structure to meet social objectives may need to be looked at, adding: “I think that Income has a lot of explaining to do.”
Prof Tan noted that had the capital reduction gone ahead, NTUC Enterprise would have a significant cash infusion of about $1 billion that it otherwise would have no access to, and which it could then deploy elsewhere.
“The losers, however, would be Income and Singaporeans because of the real risk that Income would erase or lose its social DNA. As a minority shareholder, NTUC Enterprise could struggle to keep Income’s social mission alive,” he said.
For now, it seems that “elements within NTUC have lost sight of the purpose of its existence. There seems to be a quest for profits that is at odds with NTUC’s purpose”, Prof Tan added.

Sequence of key events​

July 17: German insurer Allianz offers to buy a stake of at least 51 per cent in Income Insurance in a $2.2 billion cash deal.
Mid-July: Allianz, Income and its parent NTUC Enterprise submit plans to the Monetary Authority of Singapore (MAS) around the time the offer was made. It includes details about Income returning $1.85 billion in cash to shareholders within the first three years after the deal wraps up. This was not publicly disclosed.
July 25: NTUC Enterprise chairman Lim Boon Heng says that Income will continue to provide affordable insurance after the deal. The statement comes after some former executives and members of the public raised concerns about the insurer’s social mission.
July 27: Income issues a statement that its chairman Ronald Ong had recused himself when Morgan Stanley was appointed as the financial adviser for the deal, after questions were raised about it.
July 30: Mr Lim, Income chief executive Andrew Yeo and Income board’s lead independent director Joy Tan further clarify concerns over the deal in an interview with ST and in a separate joint statement.
Aug 4: NTUC Enterprise and Income rebuts an open letter by former NTUC Income chief executive Tan Suee Chieh, in which he objected to the Allianz offer.
MCCY Minister Edwin Tong writes in a Facebook post that co-ops as social enterprises must be financially sustainable in order to better serve their members in a fast changing economic environment.
Aug 5: NTUC’s secretary-general Ng Chee Meng and president K Thanaletchimi say in a joint statement that the central committee was briefed on the deal, and outlined why Income needed to become more competitive.
Aug 6: The deal is debated in Parliament. The Ministry of Culture, Community and Youth (MCCY) is unaware of the post-transaction details at this time.
After Aug 6: MCCY continues to do due diligence and enquire further into proposed deal. MAS provides MCCY with further details, including Income’s capital optimisation plan as the regulator felt it could be relevant to the ministry’s views on the deal. MCCY had not seen this information earlier.
Oct 14: MCCY minister Edwin Tong tells Parliament that the Government will halt the deal in its current form on concerns over its structure and ability of Income to continue serving its social mission. A Bill to amend the Insurance Act is tabled on an urgent basis.
In a late statement, Allianz says it will consider revising the deal structure. Income and NTUC Enterprise say they will work closely with stakeholders on the next course of action.
Oct 16: NTUC Deputy Secretary-General Desmond Tan tells Parliament that NTUC’s central committee was unaware of the capital extraction plan and learnt of it on Oct 14. MPs debate the issue for nearly four hours, and vote to pass the Bill.
 

Forum: Disappointed by results of renovation at hawker centre​


Oct 29, 2024


The Old Airport Road Food Centre was recently renovated. How much did the Government spend on the works, which required the centre to be closed for four months?
New flooring, tables and chairs were installed.
However, despite the installation of larger ceiling fans, ventilation remains poor because there is no proper suction system and smoke emitted from the barbecuing and deep-frying accumulates and makes people cough.
Cooks and helpers also have to work in very cramped conditions.
With the installation of the new tables and chairs, the walkways seem narrower. There is little aisle space for diners to walk through.
Those using mobility vehicles or wheelchairs find it impossible to navigate between tables.
Residents and visitors are disappointed by the results of the renovation.

The National Environment Agency may have done a great job in grading hawkers on hygiene; it must now step up and improve the working conditions of hawkers.

Lim Kee Yong
 
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