Speech by Mr Baey Yam Keng, Senior Parliamentary Secretary, Ministry of Transport & Ministry of Culture, Community and Youth at 2019 Budget Debate

Introduction

1.     Mr Deputy Speaker, I stand to support the Budget. Budget Statement 2019 outlines the Government’s strategic plans to build a strong and united Singapore – a nation that is safe and secure, powered by a vibrant economy and inclusive society, prepared for the future through sound fiscal policies and, above all, a global city we can call home.

2.     While the Government takes the lead in creating useful policies, systems and platforms for businesses and individuals to succeed, every one of us can and must do our part to build Singapore together.

An inclusive society

3.     Budget 2019 is an inclusive budget that highlights our commitment to ensuring that all Singaporeans, particularly the most vulnerable groups, have universal access to healthcare.

4.     In this regard, I am happy to note that the Merdeka Generation Package will provide Singaporeans born in the 1950s with special subsidies for common illnesses, chronic conditions and dental procedures under CHAS, in addition to MediSave top-ups and subsidies for MediShield Life premiums.

5.     Beyond this, I am pleased to note that this group will also receive a $100 top-up to their Passion Silver cards which they can use for public transport, activities at Community Clubs, and entry to public pools. I urge all seniors to continue to take good care of their health, and also keep themselves socially active through sports, arts, volunteerism and lifelong learning. Make good use of your senior concession travel passes to catch up with your relatives and friends, and explore various parts of Singapore. Remember, senior citizens 60 years and above, which include all Merdeka Generation members, can make a journey on the MRT and public bus, to anywhere within two hours, which is more than enough time to travel between any two places in Singapore; and senior citizens just pay a maximum of 88 cents.

A liveable and sustainable city

6.     Mr Deputy Speaker, another key theme in Budget 2019 is how we can improve the quality of life for all, by promoting a greener environment. A greener environment means cleaner air and thus healthier living. Today, the land transport sector is the second-largest source of emissions in Singapore. As our land transport sector grows, we have to address emissions. This will be done by promoting public, active and shared mobility and managing the growth and use of vehicles.

7.     We also encourage the adoption of cleaner and more carbon-efficient vehicles. The additional diesel tax will help to discourage diesel consumption, and create a better and healthier living environment for all Singaporeans.

8.     However, I agree with Member Mr Ang Hin Kee, that for those who drive for a living, in particular diesel taxi drivers, they will feel the impact of the additional diesel tax. That is why the Government has announced measures to help cushion the impact on businesses and drivers, including a permanent reduction in the annual Special Tax on diesel taxis by $850.

9.     I am very glad that taxi companies have stepped forward with concrete measures. First, all taxi operators have pledged to pass on the entire savings resulting from the Special Tax reductions to their drivers, in terms of rental reduction and for some, Medisave top-ups. While this may not fully cover the cost increase faced by some drivers, it does go some way in reducing their overheads while nudging drivers to be more conscious of the impact of diesel consumption on the environment. I also note that taxi companies which operate diesel pumps are already offering lower prices than retail pumps. However, I do echo MP Lee Bee Wah’s call to taxi companies to do more by absorbing part of the diesel tax. Second, I am happy to note that for cabbies who are driving a diesel taxi which is five years and above, ComfortDelGro is offering a $100 voucher if they convert to a hybrid taxi by end-March 2019. The rental rates of such hybrid taxis may be slightly higher, but they are more environmentally friendly, and fuel-efficient, which could lead to savings for taxi drivers overall. About 30% of the entire taxi fleet in Singapore are non-diesel. I urge taxi companies to play their part towards a cleaner environment and add more non-diesel vehicles as they renew their fleet. Learn from ComfortDelGro, offer more incentives to encourage drivers to switch from diesel taxis.

10.    Mr Deputy Speaker, Sir, some parents have expressed concern about rising school bus fares. Let me share how the Government is helping school bus operators. First, all diesel buses will receive a new road tax rebate for three years from 1 August 2019. This new rebate will start at 100% for the first year, 75% for the second year, and 50% for the third year. Diesel private hire or excursion buses used to ferry school children can continue to apply for a further 50% rebate on their road tax.

11.    Second, all diesel school buses, diesel private hire buses and excursion buses ferrying school children will get an additional cash rebate for a three-year period from 1 August 2019. The additional cash rebate for the first year is $1,600 for school buses, and up to $1,800 for diesel private hire or excursion buses ferrying school children.

12.    Third, school buses continue to enjoy COE exemption, on top of the offset measures shared earlier.

13.    So, taken together, these measures will help school bus operators maintain financial sustainability and keep costs down for parents. Even if it may not be possible for school bus operators to transfer all these savings to every single student or parent, they can look at ways to improve service delivery. So I would like to suggest for them to offer free bus trips for students and their families during school holidays to special events such as the Children’s Biennale at National Gallery Singapore.

14.    For our public bus industry, the Land Transport Authority is already shifting away from pure diesel public buses, with the introduction of 50 diesel-hybrid buses and 60 electric buses to our fleet. Some commercial vehicle fleet owners have also expressed their intentions to progressively convert their fleets to electric or hybrid vehicles, as part of their fleet renewal plans. We are encouraged by these industry-led efforts as we make the transition towards cleaner vehicles together. Such efforts cannot be solely achieved by the Government – everyone must chip in. The costs of adopting and using cleaner technologies may also have to be borne by consumers, too, alongside businesses and the Government.

15.    我国的清洁绿色环境值得我们引以为豪。为了确保我们的下一代能够享有优质的生活环境，我们需要继续为环保尽一份力。政府可以通过奖励或津贴促使更多企业引进和使用绿色科技，也可以采取一些措施如条例和税务来抑制对环境的污染。在这个过程中，成本难免会提高，需由各方来承担。德士师傅的营运成本主要是租金和柴油费，收入则受德士车资架构控制，这些因素都不属于他们所掌控的范围内，把他们夹在之间。所以，我同情德士师傅的处境。庆幸的是，所有德士公司已宣布将会把政府调低特别税所省下来的成本完全转交给德士师傅，这有助于减轻他们的负担。然而，柴油税增加，我希望德士公司在提供柴油给德士师傅时，也能够承担部分的柴油税。德士师傅成本上升了，乘客日后也可能需要承担更高的德士车资。

A caring community

16.    消费者可以分担更干净空气的费用。社区里的温情更需要多方的支持。就连咖啡店也能够扮演重要的角色。我就举个例子：自从淡滨尼推出“乐龄215计划”以来，年长居民每逢星期二上午都能以优惠价5角钱来享用一杯咖啡。每个星期二早上，一杯咖啡，5角钱，所以叫做“乐龄215计划”。参与计划的咖啡店和茶水摊从2016年的9间，到现在的20间，步入了第三个年头，优惠价依然保持在5角钱。单单在2018年，就售出了超过4万5000杯优惠价咖啡。咖啡原价至少1块钱，也就是说，老板们少收了超过2万2000 块钱。在此，我要特别感谢参与这项计划的咖啡店老板。一杯香喷喷的咖啡，能为年长居民送上温暖，让他们感受到社区的浓厚温情。

Conclusion

17.    副议长先生，最后，让我用一百个字来概括今年的财政预算，同时也祝福新加坡国泰民安，代代繁荣：

立国配套不比建国一代
正因为立国好过上一代
财长分配资源大伤脑袋
不忘政府对人民的交代
衣食住行还有吃喝穿戴
莱佛士登陆到一路一带
人口老龄化但脑筋不呆
建立社会风气和新声代
国民意识不滥用塑料袋
美好未来大家一起期待

谢谢。