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Chee Hong Tat’s call for fiscal prudence rings hollow amid contradictory government spending

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Transport Minister and Second Finance Minister Chee Hong Tat’s comments at the Economic Society of Singapore’s annual dinner on 28 August present a puzzling contradiction when juxtaposed with the government’s recent spending decisions.

Speaking at the event, Chee emphasized the need for responsible fiscal management, stating that the government could have taken “the easier and more populist approach of fixing prices and giving out broad-based subsidies” but instead chose to support firms and individuals in a more targeted manner.

He added, “This is also how we steward our resources responsibly, instead of indulging in ‘fiscal fantasies’—that we can somehow keep spending more and more, and find the taxes or loans to support this increased expenditure down the road, without having to carefully assess the consequences upfront.”

Yet, these remarks seem to ring hollow when considering the government’s recent financial commitments, which suggest a departure from the very fiscal conservatism Chee advocated.

A prime example is the construction of the Founders’ Memorial, a project with a projected cost of S$235.66 million. The Memorial, intended to honour Singapore’s founding fathers, is being built despite the founding leaders’ own wishes against such a monument.

As noted by the government itself, “The Founders’ Memorial will honor the values and ideals of our founding leaders,” but the substantial financial commitment to this project raises questions about whether such spending aligns with the principles of fiscal prudence.

Every Singaporean knows how late founding prime minister Lee Kuan Yew made it very clear throughout his life that he did not need and did not want any monument, a reason why he willed for his 38 Oxley property to be demolished after his death. Yet, the expensive project seems to go against his wishes, possibly in favour of political propaganda.

Moreover, the government’s decision to allocate S$900 million annually to support SPH Media despite its inflated circulation scandal further complicates the narrative of responsible fiscal management.

This massive funding to the media conglomerate, designed to “ensure the sustainability of a trusted and credible media,” well against public opinion, has sparked debate about whether such state intervention is necessary, particularly when contrasted with Chee’s warning against excessive spending.

Let’s also not forget the Electronic Road Pricing (ERP) 2.0 device, which Mr Chee defended vigorously in Parliament as well.

The government invested S$556 million in the ERP 2.0 system, and despite widespread criticism from motorists over the bulky and inconvenient design of the new On-Board Units (OBU), the design is somewhat fixed, and there is no revision to the design by the Land Transport Authority (LTA).

This goes against LTA’s initial promise of a compact, smartphone-sized device when the tender was awarded in 2016. Instead, the final product—a clunky three-piece unit—has raised concerns about whether the government is truly being prudent in its spending and ensuring value for money.

The contradiction becomes even more apparent when examining the recently announced SkillsFuture Jobseeker Support (JS) scheme, introduced by Prime Minister Lawrence Wong during his first National Day Rally speech in August 2024.

The JS scheme, slated to commence in April 2025, is aimed at helping involuntarily unemployed Singaporeans and Permanent Residents (PRs) by providing financial assistance while they search for new jobs.

The government has set aside over S$200 million annually for this initiative, which will benefit an estimated 60,000 individuals each year—comprising more than 60% of the involuntarily unemployed population.

However, despite the seemingly generous allocation, the scheme is explicitly not designed to meet the immediate financial needs of those it aims to help.

The government has stated that the JS scheme “is not a social assistance scheme,” with payouts capped and structured to taper off over time. In the first month, eligible individuals will receive up to S$1,500, but this amount decreases to S$750 by the sixth month, leaving many questioning the adequacy of such support.

As noted by members of the public on social media, “What’s the point of having an unemployment scheme when the funds paid out cannot meet the immediate needs of the individual to tide them over during tough times?”

Additionally, the inclusion of PRs in the JS scheme has sparked further debate.

Singaporean taxpayers might reasonably question why their money is being used to support PRs, especially those who are not married to Singaporeans and could, theoretically, return to their home countries in search of better opportunities if they lose their jobs.

This raises the concern of whether the inclusion of PRs is a politically motivated move aimed at securing future support from potential new citizens.

Is it a political move to nurture support for would-be citizens so that they would support the incumbent when it comes to election?

We don’t know, but the spending on foreigners for the purpose of supporting them for unemployment seems awfully contradictory to what Chee said about stewarding Singapore’s resources responsibly for Singaporeans.

The contrast between the PAP’s JS scheme and the Workers’ Party’s (WP) long-proposed redundancy insurance scheme further highlights the inconsistency in the government’s approach.

The WP has advocated for redundancy insurance since 2006, proposing a scheme funded by contributions from both workers and employers.

As detailed in the WP’s 2020 manifesto, this scheme would provide a payout equivalent to 40% of the last drawn salary for up to six months, with a cap of S$1,200 per month and a minimum payout of S$500 to benefit low-wage workers.

Importantly, these payouts would be conditional on the worker actively seeking new employment or undergoing retraining, ensuring that the scheme promotes both financial stability and continued employability.

In contrast, the PAP’s JS scheme, which relies on taxpayer funding, offers lower payouts that taper off rapidly, potentially leaving many individuals without sufficient support.

As one would wonder, isn’t WP’s policy more prudent for the coffers, for having employees pay for their own unemployment insurance to obtain a higher payout, which is sustainable, contrary to PAP’s scheme which uses taxpayers’ money to sustain a payout which is hardly sufficient for many?

Chee Hong Tat’s warning against “fiscal fantasies” and unsustainable spending seems to stand in stark contrast to the government’s own actions.

The lavish spending on projects like the Founders’ Memorial and SPH Media, coupled with a poorly designed unemployment support scheme, raises questions about which policies are truly “politically irresponsible” and “economically sound.” These are just a few recent examples among many questionable expenditures, including the infamous S$800k rubbish disposal centre.

If the government is serious about stewarding resources responsibly, it may need to take a closer look at its own spending habits and consider whether they align with the fiscal principles it so vocally champions.

The post Chee Hong Tat’s call for fiscal prudence rings hollow amid contradictory government spending appeared first on Gutzy Asia.

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Reforming Singapore’s defamation laws: Preventing legal weapons against free speech

Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.

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by Alexandar Chia

This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.

Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.

Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.

Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.

As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.

Sadly, that is the case with regard to precedence in defamation suits.

Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.

If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?

In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.

Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.

And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.

This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.

These are how I suggest it is to be done –

  1. The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
  2. Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
  3. A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
  4. A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
  5. Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
  6. All defendants of defamation suit should be allowed full access to legal aid schemes.

Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.

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Man arrested for alleged housebreaking and theft of mobile phones in Yishun

A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.

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SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.

The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.

The authorities reported that they received a call for assistance at around 5 a.m. on that day.

Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.

The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.

The suspect was charged in court on Monday with housebreaking with the intent to commit theft.

If convicted, he could face a jail term of up to 10 years and a fine.

In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.

They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.

The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.

The investigation is ongoing.

Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.

Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.

The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.

Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.

However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.

The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.

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