January 2021 Parliamentary Questions
PROTECTION FROM MORE INFECTIOUS NEW VARIANT OF COVID-19 VIRUS
Mr Murali Pillai asked the Minister for Health what measures will be put in place in Singapore to deal with the new variant of the COVID-19 virus that is reported to be spreading rapidly in the UK and parts of Europe.
Mr Lawrence Wong (excerpt of his speech): The emergence of new viral strains that may be more infectious, such as the B.1.1.7 variant, is indeed very worrying. And I share the concerns raised by Mr Murali Pillai and Mr Melvin Yong.
Where necessary and practical, we will tighten our border restrictions to limit importation risk. For example, from the UK and South Africa we have introduced additional testing and requirements, as well as restricted the number of travellers. We have also recently tightened the testing regime and safe management measures for those working in the aviation and maritime sectors, as they are the ones who are most likely to be interfacing with travellers and crew from overseas.
For example, for air crew who have layovers in higher risk countries, we are testing them more frequently after they return to Singapore and requiring them to self-isolate for a few days. Likewise, we are doing a one-time sweep to test all marine workers and we are increasing the frequency of testing for marine workers going on board vessels. We are testing them every seven days instead of 14 days.
This is not the first time we have picked up new strains of the virus. Nor will it be the last. The fact is that the virus has always been mutating, and will continue to do so. Other new strains will continue to emerge. We do not know what their cumulative effects will be like. So, we will have to constantly monitor the latest developments around the world, review the data and evidence, and update our measures accordingly.
With the virus raging around the world, we clearly cannot afford to freely open our borders at this time. But neither can we close ourselves completely from the world and simply stop all flights or ships coming to Singapore. Trade and travel are our lifeblood. This is an existential issue for us because we do not have the luxury of a hinterland to depend on. Therefore, we take a calculated risk-based approach in managing our borders. Minister Ong Ye Kung recently made a Ministerial Statement on this. So, I will just reiterate the key points.
To facilitate essential business and official travel, we have established special travel arrangements with certain countries and territories. We control the number of travellers on these schemes tightly, and we require the travellers to stick to a controlled itinerary and strictly limit interactions with the wider community.
For example, we have a Fast Lane between Singapore and six provinces and municipalities in China, established in June last year. Miss Cheng Li Hui asked how many have taken this up. Around 500 travellers have arrived from China under this arrangement. Since early November, we have also allowed short-term Chinese visitors to enter Singapore via the Air Travel Pass.
In order to promote both Singapore’s economic interests and our status as a global business and transportation hub, we will continue to negotiate and formulate additional travel arrangements with other like-minded countries or regions while ensuring that public health is not compromised.
Recently, we also announced a new travel lane, called Connect@Singapore, aimed at a limited number of business, officials and high economic value travellers coming to Singapore for short-term stays. As it would not be practical for these travellers to serve a 14-day quarantine, we manage the risk by placing a “bubble wrap” around these travellers. So, the travellers will only stay at dedicated facilities and will not be allowed into the community. They will also undergo regular testing and observe all prevailing safe management measures.
Besides these special travel arrangements, we have, on a daily basis, a far larger number of travellers who are returning Singaporeans, PRs and long-term pass holders. There is also a continued flow of new migrant workers coming in, mostly construction workers and foreign domestic helpers. We need them to build our homes and infrastructure, and to support the care-giving needs of our families.
For these returning residents and essential workers, we allow their inflow on a controlled basis, but we require those who are from higher risk countries to serve a 14-day Stay Home Notice or SHN at dedicated facilities. They will be tested at the end of their SHN. Travellers from countries with new virus variants will serve their SHN at designated hotels to further minimise the risks of spread. This system ensures that we are able to tightly ring-fence imported cases and minimise the risk of leakage into the community.
Since 18 November, we have required all non-citizen and non-PR travellers from higher risk countries or regions coming to Singapore to take a pre-departure test within 72 hours prior to their departure. We have not required this of citizens and PRs because we do not want to place additional barriers for them to return home if they have urgent need to do so. Additionally, as paediatric testing services may not be so easily available in some countries, those aged six and below are also exempted from this pre-departure test. But through the SHN, we ensure that community transmission risks are minimised for these travellers, even in the absence of a pre-departure test.
BUSINESSES THAT HAVE TAPPED BUSINESS AND IPC PARTNERSHIP SCHEME TO PROMOTE CORPORATE VOLUNTEERISM AMONGST EMPLOYEES
Mr Murali Pillai asked the Minister for Culture, Community and Youth (a) how many businesses have taken advantage of the Business and IPC Partnership Scheme (BIPS) set up to promote corporate volunteerism amongst employees seconded to Institutions of Public Character (IPCs); and (b) whether BIPS, which is due to expire on 31 December 2021, will be extended so as to provide more support to the IPCs during this pandemic.
Mr Edwin Tong Chun Fai: The Business and IPC Partnership Scheme (BIPS) was introduced in July 2016 to encourage corporate volunteerism and provide support to Institutions of a Public Character (IPCs). Through BIPS, businesses enjoy 250% tax deduction on wages and related expenses when they organise or support their employees to volunteer and provide services at IPCs, including secondments. At Budget 2018, BIPS was extended to 31 December 2021.
On average, 37 businesses tap on BIPS each year, between 2016 to 2019. To encourage more businesses to do so, the Ministry of Finance convened a series of focus group discussions in 2018 to gather feedback. This led to the following enhancements in December 2019 to make BIPS more accessible to businesses:
a) Businesses can choose to claim deductions on wage based on fixed hourly rates in lieu of actual salary, to reduce their administrative burden — $10/hr for general volunteerism, and $20/hr for skills-based volunteerism;
b) Businesses no longer have to submit proof of documentation for expenses less than 5% of total qualifying expenditure to IPCs, though they should retain proof for verification by the Inland Revenue Authority of Singapore; and
c) Declaration forms were simplified.
The Member asked if we will be extending BIPS beyond December 2021. BIPS has received positive feedback from corporates and IPCs. Some corporates see contributing to the community as part of a business’ larger role in the society, and an expression of the mutual, symbiotic relationship between a company and the community in which it thrives. Employees of corporates who give back to society also have higher levels of well-being and are more productive and fulfilled. IPCs in turn, benefit from the skills and expertise that a corporate offers and can serve their beneficiaries more effectively.
We encourage corporates to continue volunteering with IPCs and create a larger positive social impact. We are therefore working with key partners to review the scheme, including plans for beyond December 2021. We will share more information when the plans are ready.
REVIEW MEDICAL INSURANCE COVERAGE FOR WORK PERMIT HOLDERS
Mr Murali Pillai asked the Minister for Manpower (a) whether there is an increasing trend of employers of work permit holders being required to pay medical bills above what will be covered under their work permit holders’ insurance policies; and (b) if so, whether the Ministry intends to increase the current medical insurance coverage of at least $15,000 per year.
Mrs Josephine Teo: About 95% of all hospitalisation bills incurred by Work Permit and S Pass holders fall below $15,000, the current minimum medical insurance coverage required of their employers. This has been so for the past three years.
As outlined in MOM’s Addendum to the President’s Address, we are developing an insurance programme to help employers manage unexpected large medical expenses of their migrant workers. Although this may mean higher premiums, it will also give employers greater peace of mind. We aim to keep the cost impact manageable for employers and will provide an update in due course.
LIFE INSURANCE POLICIES SURRENDERED ON PER YEAR BASIS AND REGULATING SALE OF LIFE INSURANCE POLICIES TO PROTECT POLICYHOLDERS’ LONG-TERM INTERESTS
Mr Murali Pillai asked the Prime Minister (a) over the past three years, what has been the percentage of life insurance policies that have been surrendered on a per year basis; and (b) whether MAS intends to regulate the secondary market involving the sale of life insurance policies so as to protect the policy holders’ long-term interests and to prevent them from prematurely surrendering their life policies for reasons other than the inability to make premium payments.
Mr Tharman Shanmugaratnam (for the Prime Minister): The percentage of life insurance policies surrendered averaged 1.1% per year during 2017 to 2019. In the first three quarters of 2020, the percentage of policies surrendered was about 0.7%.
Policyholders who surrender their policies may not be able to find a policy with similar coverage at the same cost once it has been terminated. The Monetary Authority of Singapore (MAS) has put out financial education messages targeted at policyholders on the risks or disadvantages associated with surrendering or selling their life insurance policies. For policyholders who are unable to pay premiums, insurers have been providing them some support, such as offering grace period for payment and premium loans.
There are also situations where holding on to a life insurance policy no longer makes financial sense. For example, when the insurance coverage is no longer required because the policyholder does not have a dependent anymore, or where the policyholder has more important alternate uses for the cash value in the policy. Under these circumstances, the policyholder may sell his policy in a secondary market for a higher cash value to a third party company, who in turn sells it to investors.
These third party companies are currently not regulated in Singapore. This is similar to other jurisdictions such as Hong Kong and Japan. While they are regulated in the US and UK, the focus is on the protection of investors who purchase the re-sold policies rather than the policyholders. We will continue to monitor the market for potential risks, and will introduce regulatory safeguards if necessary.
