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PSP’s Alternative Budget proposal reveals excess fiscal resources to spend on Singaporeans, contrary to government claims

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SINGAPORE — The Progress Singapore Party (PSP) has presented an Alternative Budget proposal for 2023 that includes long-term programs designed to “give Singaporeans comfort over their current and future financial positions,” according to Mr Leong Mun Wai, the party’s Non-Constituency Member of Parliament.

Delivering the proposal in Singapore’s Parliament on Wednesday (22 Feb), Mr Leong argued that there were excess fiscal resources to spend on Singaporeans, contrary to what the Government has been saying. He claimed that the Government’s recent short-term financial assistance measures, such as the CDC vouchers and Cost of Living Special Payment, were more likely to breed dependency than to strengthen resilience.

While welcoming the financial assistance announced by Deputy Prime Minister and Finance Minister Lawrence Wong in Budget 2023, Mr Leong argued that more long-term programs were necessary.

“We need long-term programmes to give Singaporeans comfort over their current and future financial positions before they can concentrate on becoming innovative workers and enterprising risk-takers to build Singapore into a competitive information economy,” he said.

He argued that Singapore had sufficient fiscal resources to fund such programs without drawing on the national reserves.

Mr Leong claimed that the Government’s estimates showed Singapore had excess fiscal resources, and that the country’s strong fiscal position was demonstrated by the Government’s ability to commit to a S$100 billion Covid-response package, which was equal to more than 20% of Singapore’s Gross Domestic Product  (GDP) in 2019.

According to Mr Leong, the Government only needed to draw S$40 billion from the reserves for the package because it had found S$32 billion of excess fiscal resources in the budgets of 2020 and 2022 to fund the balance. Additionally, he noted that in the same three years, the Government had set aside S$24 billion from the budgets to top up various endowment and trust funds whose spending is for future years.

“This translates into an annualized amount of about S$18.7 billion. This amount is roughly equal to the Net Investment Return Contribution (NIRC) allocated to the budget each year. This is proof that the NIRC has always been a slack in the budget which is normally not used to benefit Singaporeans in the year that it was allocated,” said Mr Leong.

Mr. Leong also noted that the Government had argued that the NIRC was pooled with the rest of the budgetary resources and used for all purposes, but by setting aside a sum of money almost equal to the NIRC in trust funds and endowment funds, it was equivalent to not spending the NIRC in the current year.

While the Government argued that there was a looming current and future budget deficit, Mr Leong maintained that in fact, there were excess fiscal resources in the Budget that could be deployed better.

“However, even ignoring the potential spending cuts, it is quite safe to say that we have excess fiscal resources each year, mainly from the NIRC, which can be deployed more proactively for the benefit of low-income and middle-income Singaporeans. In 2023, the NIRC has reached a new record of $23.5 billion, ” said Mr Leong.

He proposed several programs to demonstrate how the budget could be restructured to deploy these resources, including the Affordable Homes Scheme and Millennial Apartments Scheme to reset the public housing policy.

Mr Leong also argued that the middle-class is already over-taxed relative to their income, and proposed that some of the tax increases of Budget 2022 and 2023 should be reversed. The Goods and Services Tax (GST) would be reverted to 7%, and property tax increases for owner-occupied properties would be restricted to those with an Annual Value of more than S$50,000.

The Alternative Budget also proposed the limitation of stamp duty increase to properties worth more than S$3 million, and the Additional Registration Fee (ARF) increase would be limited to cars with Open Market Value (OMV) of more than S$60,000.

Additionally, the PSP would budget $4 billion for the nationalization of the MediShield and CareShield schemes, which will relieve middle-class Singaporeans of the anxiety over ever-rising healthcare insurance premiums.

Mr Leong also proposed measures to enhance job security for Singaporeans, such as introducing a S$1,200 monthly levy on Employment Pass (EP) holders to level the playing field between Singaporean and foreign employees. He argued that Singaporeans are disadvantaged when competing with EP holders who are exempted from Central Provident Fund (CPF) contributions.

He emphasized the need for compassionate spending to support low-skilled workers and disadvantaged segments of society. To that end, he proposed budgeting S$3 billion for a living wage that guarantees a minimum monthly take-home pay of S$1,800 for all Singaporean workers, which he had previously recommended during Budget 2021. The living wage would allow all Singaporean workers to attain a minimum standard of living, while the Progressive Wage Model would remain in place to help workers achieve a higher wage level.

Additionally, Mr Leong proposed budgeting S$1 billion to help the disadvantaged segments of society by doubling the ComCare pay-out for the poor and providing an allowance for caregivers and stay-at-home parents in recognition of their sacrifices and contribution to society.

All in all, PSP’s Alternative Budget, with a proposed net spending increase of about $8 billion which Mr Leong says is only a fraction of the excess resources available.

He concluded by inviting Singaporeans to be the judge of the merits of the proposals in the Alternative Budget, adding, “Singaporeans deserve better.”

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Parliament

Minister Shanmugam rejects request for detailed information on visa-free visitor offences: Cites bilateral considerations

Minister for Home Affairs K Shanmugam rejected Workers’ Party MP He Ting Ru’s request for detailed statistics on visa-free visitors involved in crimes, citing bilateral concerns. He affirmed current screening measures are sufficient, with no plans for an electronic travel authorisation system.

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On 10 September 2024, Minister for Home Affairs and Law, Mr K Shanmugam, refused to provide detailed information requested by Workers’ Party Member of Parliament (MP) for Sengkang GRC, Ms He Ting Ru, regarding visa-free visitors involved in criminal offences in Singapore.

Ms He had asked for statistics on how many visa-free visitors had been arrested or identified as persons of interest for criminal activities from 2021 to June 2024, along with a breakdown of offences by type, number, and country of origin.

She also queried the consideration of enhanced screening measures and the possibility of introducing an electronic travel authorisation system similar to those in other jurisdictions.

In his written response, Mr Shanmugam stated that with over 150 countries on the visa-free entry list, it would not be practical or meaningful to publish crime statistics specific to visitors from these nations.

He added that doing so could carry bilateral implications and potentially send the wrong message to bona fide visitors from these countries.

Mr Shanmugam affirmed that Singapore’s Immigration & Checkpoints Authority (ICA) employs a risk-based, multi-layered approach to balance border security with traveller facilitation and assured that the current measures are sufficient. He reiterated that there were no immediate plans to implement an electronic travel authorisation regime, as it would increase inconvenience for visitors.

“We are satisfied with the current measures, and for now, do not see a need for an additional electronic travel authorisation regime. Also, such a regime will make visiting Singapore more inconvenient,” said Mr Shanmugam.

This response followed an oral reply delivered earlier that day by Minister of State (MOS) for Home Affairs, Ms Sun Xueling, who addressed a related question posed by Non-Constituency Member of Parliament (NCMP) Mr Leong Mun Wai from the Progress Singapore Party (PSP).

Mr Leong had expressed concerns about the potential rise in crime following the introduction of a 30-day visa exemption arrangement for Chinese nationals in February 2024. He specifically questioned whether the recent burglaries involving foreign syndicates had any link to this exemption and whether automated lanes at Changi Airport increased the risk of non-bona fide travellers entering the country.

Ms Sun refuted Mr Leong’s concerns, clarifying that there had been no increase in arrests among short-term visitors from China since the visa exemption came into effect.

She noted that the arrest rate of Chinese visitors had, in fact, decreased compared to the previous year. While acknowledging the involvement of some foreign nationals in criminal activity, she highlighted that the visa regime alone cannot eliminate all risks. Instead, ICA employs enhanced technology, such as biometrics and advanced data analytics, to screen travellers.

Ms Sun also emphasised the importance of the tourism sector to Singapore’s economy, generating S$27.2 billion in receipts in 2023 and employing over 71,000 workers. She argued that closing borders to prevent crimes would not be a viable solution, especially given Singapore’s competition with neighbouring countries like Malaysia and Thailand, which are also working to attract Chinese visitors.

Despite further calls from Mr Leong for additional security measures and tougher penalties for cross-border crimes, Ms Sun reassured that the government continually reviews its laws, including the Criminal Procedure Code and Penal Code, to address transnational crimes such as human trafficking, drug trafficking, and online scams.

She affirmed that Singapore remains vigilant in adapting its laws and measures to combat evolving criminal trends.

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Parliament

Leong Mun Wai questions why NTUC leaders often come from the ruling party

During the Platform Workers Bill debate on 10 Sept, Mr Leong Mun Wai, NCMP from the Progress Singapore Party, backed WP MP Gerald Giam’s call for an independent NTUC. He expressed concerns about NTUC’s ties to the ruling party, questioning its independence given that its leaders are often from the PAP.

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SINGAPORE: Mr Leong Mun Wai, Non-Constituency Member of Parliament (NCMP) from the Progress Singapore Party, voiced support for the Workers’ Party and its MP Gerald Giam’s call for an independent and non-partisan NTUC, separate from the ruling People’s Action Party (PAP).

During a parliamentary debate on the Platform Workers Bill on Tuesday (10 Sept), Mr Leong acknowledged that tripartism is a fundamental aspect of governance that all parties, including opposition ones, seek to foster.

He noted that unions naturally seek political power to effect change but expressed concerns about the extent of NTUC’s relationship with the ruling party.

However he questioned the level of NTUC’s independence from the government.

He pointed out that the NTUC’s secretary-general is often a minister or former minister and that many NTUC leaders come from the ruling party.

“Can you find another trade union in the world where the trade union chief is a minister? Are there any countries? Please let me know if there are,” Mr Leong asked, further noting that few opposition politicians are given appointments in NTUC.

“I think we are entitled to think that the independence of NTUC ought to be better than this.”

Earlier, PAP MP Christopher De Souza criticized MP Gerald Giam for using the term “tether” to describe the NTUC-PAP relationship, emphasizing that the NTUC operates through partnership, alliance, and solidarity rather than subordination.

In response, Mr Giam clarified that when he used the terms “tether” or “untether,” he meant that the NTUC and the PAP should be separate and independent organizations.

He sought to ensure that NTUC does not appear to be biased towards the ruling party.

Mr Giam also raised concerns about NTUC’s structure, particularly questioning why the Platform Associations need a Council of Advisors with the power to dismiss the Executive Council and why these advisors are predominantly PAP members or MPs.

He suggested that this structure indicates a lack of independence for NTUC.

The current NTUC secretary-general is Ng Chee Meng, a former PAP minister who assumed the position in 2018 and continues to hold it despite losing to WP’s new team in GE2020.

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