Debated in Parliament on 8 Mar 2017.
Mdm Chairman, I beg to move, "That the total sum to be allocated to Head W of the Estimates be reduced by $100."
Madam, there are many who say that we live in an era where fast-developing technologies are disrupting businesses and industries at an extremely fast pace.
This is, however, not historically unprecedented. Trains reigned supreme until the emergence of automobiles and airplanes. Electricity replaced kerosene as our energy source for light. Steel outmuscled iron, bricks and mortar to allow us to build superstructures such as skyscrapers and bridges over large bodies of water.
Each and every time this happened, incumbent industries suffered and new ones boomed. This is the cycle of technology and business.
Just the other day, I read of Netflix's US$105 million purchase of Martin Scorsese's new gangster film starring Robert De Niro named "The Irishman". I must confess that I did not know what Netflix was. As usual, when it comes to technology, my daughters had to educate their father about how I can now watch award-winning TV shows, movies and documentaries, on-demand, via streaming through the Internet for a reasonably small subscription fee.
Through large volume subscriptions, Netflix now has the resources to compete with traditional movie production houses and even begin production of movies and shows of their own.
Locally, I understand that Netflix is fast gaining popularity amongst Singaporeans. What does this mean for cable television providers, such as StarHub and Singtel? How about movie theatres? Netflix has the latest content, with easy on-demand access, at a cost lower than cable television or movie theatres. While it is too early to tell what will happen next in the movie/TV entertainment industry, what we do know is that business can no longer be conducted "as usual" in the industry.
Netflix's entry into the movie/TV entertainment industry is not unlike the entry of private hire cars into the point-to-point transportation industry.
Private hire car companies made their foray into Singapore in 2013. Of these, Uber and Grab now constitute the largest market share. A key reason for the rapid growth of private hire car services in Singapore is their ability to address the perennial complaint of Singapore commuters − the difficulty of getting taxis during peak hours, in remote areas and during inclement weather. This is despite Singapore having one of the highest taxis-to-population ratios in the world.
Private hire car companies are able to plug this service gap through their mobile apps which provide a platform to efficiently match private hire car drivers and passengers directly in real time and space. Acting as a marginal supplier, private hire car drivers come onto the road readily to soak up latent demand as and when required. This significantly shrinks transaction costs, giving passengers greater choices and value.
Taxi drivers facing increased competition were naturally displeased. They argue that taxis have to adhere to a fixed schedule of charges and comply with availability requirements. There was a daily minimum mileage that taxi drivers needed to clock and a specified number of taxis need to ply the streets during peak periods. This makes them inflexible in pricing and uncompetitive against private hire cars.
There were, initially, also no regulatory requirements for anyone to be an Uber or Grab driver. All you needed was a driving licence and a car. No mandatory background checks were required. Private hire car drivers were not required to apply for or take any tests to obtain a vocational licence.
Uber and Grab used technology as leverage to match demand with supply and reduced transaction costs considerably to capture a significant portion of the point-to-point transportation market.
Private hire cars tripled its numbers on our roads in as many years. Private hire car drivers, on the other hand, point to exclusive advantages that taxis enjoy. Taxis are allowed to pick up passengers who hail them on the streets. Taxis also enjoy exemption from the child seat rule, which mandates that all children under 1.35 metres in height are required to be in a child seat when travelling in a car.
All the above issues have been well-aired in the mass media.
Madam, perhaps the pertinent question to ask is this: what is the Government's stand on this? Should the Government support the plea from some taxi drivers to ban private hire cars in Singapore? Or should the Government adopt a laissez-faire approach and allow the free market to regulate itself?
The Government picked an answer somewhere in between. Private hire car drivers are now subject to regulatory requirements. They, too, need to apply for a vocational licence which subjects them to screening and training. This not only levelled the playing field with taxi drivers but, more importantly, addressed the safety and competency concerns of commuters.
However, the Government did not step in nor interfered directly with the disruption that technology has caused in the point-to-point transportation industry. Uber and Grab were filling a demand and consumers were, ultimately, benefiting from wider choices at better value.
In fact, recent trends suggest that the industry, on the whole, may have benefited from the disruption. Minister Khaw had, in his reply to a Parliamentary Question on 20 February 2017, revealed that the total number of taxi trips remained relatively stable, with only a slight drop from 967,000 trips in 2013 to 954,000 trips in 2016.
With private hire cars tripling in numbers since 2013, the statistics suggest that the "pie" for point-to-point transport has grown larger. A larger "pie" means that the industry can sustain both taxis and private hire cars, while consumers continue to enjoy the best of both worlds at better value. Everybody wins.
The competition provided by private hire cars has now forced traditional taxi operators, who have been slow to change without competition, to consider revamping their pricing models in order to remain competitive and relevant. There was news last week that several taxi operators, including ComfortDelgro, Trans Cab and Premier Taxi, were all considering implementing the surge pricing model used by private hire cars. This is a positive sign for commuters and the industry.
New technologies will always disrupt stable, entrenched industries. This is clear from past and present examples. No industry will remain relevant in perpetuity. Stifling new innovative technology can only end in a negative outcome for the overall Singapore economy.
Madam, however, as I had raised in my Budget Debate speech, it is extremely important that we do not lose sight of the perspective of the individual Singaporean; the issues and difficulties that each Singaporean and their families face in their day-to-day lives.
I use a simple example. I had said in my Budget Debate speech that I empathised with taxi drivers. Why did I say that? I do not advocate protectionist policies for our taxis. However, in a reasonably short period of time, three events and their corresponding policies are likely to have repercussions on the livelihoods of taxi drivers.
They are: firstly, the entry of private hire cars into the point-to-point transportation industry; secondly, the restructuring of the diesel tax; and thirdly, the push for automated, driverless cars.
These policies have objectives designed for the collective good. They are important for Singapore and will ensure that we maintain our competitive edge globally. And yet, all three together are likely to simultaneously cause specific groups of individuals, such as taxi drivers, frustration, worry and concern.
We should be mindful of that. How do we take full advantage of new technologies in order to ensure that our economy remains nimble, vibrant and on the cutting-edge and still ensure that no one is left behind? This is where policy-makers and public managers need to strike a fine balance between the two.
I, therefore, invite the Minister to share with us any of the Ministry's current and/or future plans to address the issues arising out of new technologies disrupting the transportation sector.
Question proposed.
Madam, breakdowns, as we have seen in recent times, not only disrupt our overall public transport system, they also undermine customers' confidence in it. Therefore, reliability of our train systems should be a major focus of the Government as it had done in recent times.
I would like to ask the Ministry: what are its plans to improve maintenance and expedite the replacement of old trains? May I ask whether LTA is considering employing a regime of predictive maintenance instead of waiting until something goes wrong? This will help us enhance the reliability of trains and tracks from contributing to breakdowns.
One other issue that concerns estates, such as the new BTOs of Keat Hong Pride and Crest in my constituency, is that they are not covered by noise barriers today. Trains on the North-South line increase in frequency due to signalling enhancements and, quite often, you can also hear trains travelling towards depots past midnight. Many residents are impacted by the level of noise from the tracks and trains. Residents have complained that the noise from concrete sleepers is much louder, compared to the old wooden ones.
NEA has set acceptable noise levels in decibels. Can I ask if this is a determining factor and what is the acceptable decibel level for LTA to put in place noise barriers? In our current situation, it does seem that LTA has put the responsibility on HDB to put in place noise mitigation measures, and we seem to be going in circles. If, indeed, the decibel levels are equivalent or higher compared to the areas that have benefited from noise barriers, such as those that are being implemented just 100 metres to 200 meters along the current track, then the decision to implement noise barriers should be quite clear-cut. LTA needs to be transparent in the criteria to implement noise barriers which, currently, is not clear to the public.
Mdm Chairman, allow me to declare my interest as I am also a staff of ComfortDelgro. In recent years, MOT has done a significant job in reducing MRT breakdowns. The Minister has set a very bold target of increasing the Mean Kilometre before Failure (MKBF) to 400 kilometres, a standard comparable to Hong Kong and Taiwan's sub-way, and this is laudable.
However, the recent MRT breakdowns that concentrate between Jurong East and Joo Koon stations have greatly inconvenienced Jurong residents. There were at least three major breakdowns between these two stations in January alone and there are numerous incidents where the residents had to add tens of minutes of travelling time between the two stations. These unfortunate incidents often occurred during the peak hours, affecting thousands of Jurong residents.
May I know whether LTA has identified the problems that caused the frequent breakdowns and delays specifically between the Jurong East and Joo Koon MRT stations? Are there plans to improve the train reliability between these two stations? Or would it be helpful to increase the engineering hours to fix the problems? I hope the Minister can look at this seriously.
Madam, at the Committee of Supply (COS) in 2016, I highlighted the alarming regularity of train faults, breakdowns and disruptions, and asked for the Ministry's plans to abate these unacceptable occurrences.
Unfortunately, I have to repeat the cut again this year. Contrary to recent survey findings, train breakdowns and delays have been happening so frequently that commuters are getting increasingly frustrated. For example, half a dozen track circuit-related delays on the Clementi-Joo Koon stretch of the line have occurred in the past one and a half months, while a quick search on The Straits Times and TODAY from May to December 2016 brought up at least 18 times a train breakdown was reported. So, there are at least two breakdowns or more a month and these do not include the train faults and delays that were not reported.
It seems like train faults are becoming the norm for us now, which is not where we want our Singapore transport system to go.
As I have said at the COS last year, Singaporeans should not have to get used to this regularity of disruptions. We should expect our system to have far fewer disruptions. We should also be greatly concerned with the loss of productivity to all our workers and our economy arising from the man-hours lost to all delays.
So, I would like to ask the Minister what is the Ministry's assessment of the recent breakdowns? What are the Ministry's plans to improve the situation and will commuters see a significant decrease in the number of train delays, faults or disruptions this year?
Ms Low Yen Ling, please take your two cuts together.
Mdm Chairman, according to LTA, rail ridership in Singapore grew by 4.6% to above 3 million in 2015, which is more than double 10 years ago. In the same year, MRT trips climbed 4.2% to 2.9 million, and LRT trips grew by almost 11%. Bus passenger trips were also up by 3.7% to 3.9 million.
This uptake in public transport has come on the back of the Government's efforts to improve connectivity, with the addition of the Downtown Line, as well as more buses and trains.
This has been no easy feat. I would like to thank and commend LTA and MOT for their hard work and perseverance. Their efforts have paid off, as indicated by the latest annual Public Transport Customer Satisfaction Survey, where commuters' satisfaction in public transport scored 96.4% for 2016, hitting a nine-year high.
While more Singaporeans are enjoying better public transport options and higher commuter satisfaction, some 5,600 residents living in the Hume area are still being held back by low train and bus connectivity. Despite the presence of the Downtown Line's Hillview station, these Hume residents are caught in a long 2.6 km unserved span between Hillview and Beauty World MRT stations. This stretch is more than double the average 1.1 km distance found between most MRT stations. So, Hume residents have little choice but to make their way to Hillview or Beauty World MRT stations via a detour and crowded buses.
I sincerely appeal to MOT and LTA to review the merits of opening Hume MRT station. The Hillview and Hume resident population is set to increase further with the addition of more condominium projects to the current 20 over condominiums present in that belt.
Furthermore, the upcoming Rail Corridor development will certainly bring greater human and motor traffic to the area. The masterplan will create an attractive residential and community oasis. With eight distinctively themed stretches along its 24 kilometres, the Rail Corridor will attract nature lovers, history buffs, cyclists, runners, families and even tourists who wish to experience Singapore's history in a new way.
The Rail Corridor is the legacy of the Singapore-Malaya rail link that started in 1903. In its vicinity is the gallery "Surviving the Japanese Occupation: War and its Legacies". The confluence of rich history, greenery and recreational opportunities makes it a unique experience and attraction that can enhance tourism and boost Singaporeans' appreciation of our historical and green heritage.
However, without train connectivity for easy access by the masses, these treasures that I talked about may remain the enjoyment of those with vehicles, limiting its potential and pull for the rest of Singapore.
May we know if MOT will support the development of the Rail Corridor as well as the anticipated rise of human and motor traffic to the area with an MRT station in Hume? In addition, how will LTA and MOT help Hillview and Hume residents gain greater satisfaction in public transport, especially in train connectivity?
With easy access via a Hume MRT station, we hope all of Singapore will get to appreciate what the area has to offer. This is certainly a move that will be welcomed by all residents in Hume and Hillview.
Mdm Chairman, in recent years, LTA and MOT have worked closely with my community leaders and I to improve the commuting experience and public transport connections for Bukit Gombak residents. We would like to thank and commend them for their efforts.
We appreciate the recent addition of bus number 973 last month. It is connecting the areas between Bukit Panjang, Hillview Avenue and Hume Avenue. We are grateful for City Direct bus number 653 that has made it easier for Hillview and Hume residents to get to and from the CBD area at peak hours. Many residents have told me that because of the convenience and comfortable ride on bus number 653, they now leave their cars at home on weekdays.
These improvements are moving us nearer the vision of a green and car-lite Singapore. With new train lines and more public buses, more Singapore residents are taking public transport to work. According to the last General Household Survey in 2015, 59% of residents aged 15 years and above took the MRT and/or public bus to work or school. This is a rise of 4% from the year 2010.
We certainly want to encourage such commuter behaviour. However, we still face some bus connectivity challenges in Bukit Gombak. For instance, to get to Hillview MRT station, our Hume residents need to backtrack in their bus routes, and buses are always packed during peak hours. Those going to the city via the Beauty World MRT station are often subject to a long wait because most buses plying Upper Bukit Timah Road are full by the time they reach Bukit Gombak. Many residents report waiting 15 minutes or even more before boarding a bus. In addition, the new bus 973 can only stop 200 metres ahead of Hillview MRT Station instead of the bus stop just outside the Hillview MRT station, because of the bus route. I want to reaffirm my thanks and gratitude to the LTA team for working hand-in-hand with us. There has been much progress but in terms of offering a good "first-and-last-mile" experience, we do still have room for improvement.
In addition to addressing these commuting blues, we hope the authorities can look ahead to provide good bus connectivity for Bukit Gombak residents to get to their new and upcoming Community Club at Hillview Avenue. Currently, the location is under-served in terms of access to the MRT stations of Hillview, Bukit Gombak and Beauty World. We estimate about half of residents in the constituency do not have public transport connections to the Community Club, which is scheduled to open later this year.
The Community Club will be a central node of many activities. Among its many new features are a childcare centre, culinary school and rooftop garden. Hence, easy access by public transport is vital for Bukit Gombak residents to access these amenities and for community bonding.
Will LTA and MOT help to improve connectivity to MRT stations and access to the new Community Club in Bukit Gombak? This will certainly encourage more residents to join in the movement for Singapore to become car-lite and green.
Our Minister has been talking about a car-lite society, and I am all for it. To be car-lite, we need to further improve our public transport. We need to make bus journeys, especially in the morning and evening peak hours, more pleasant.
But for many Nee Soon South residents, this is not the case. The worst bus services in Nee Soon South are bus Nos 860 and 811 which pick up residents from new BTOs, like Acacia Breeze, Palm Breeze, Oleander Breeze, Angsana Breeze and Saraca Breeze, to Khatib MRT and Yishun MRT stations respectively. It is common to hear residents feedback that they must miss three or four buses before they can board as they are often over-packed − not so much of a "breeze" at all.
Besides that, my residents living in private estates in Mandai Road and Sembawang area have been telling me that Khatib is "so near and yet so far". There is no direct bus to go to Khatib. They have to travel north and come back south again, and then go to Khatib. A good public transport service should also cater to the residents living in private estates as well.
I also ask for covered linkways from the back gates of the condominiums to the nearest bus stop to improve accessibility, so that they, too, can enjoy taking public transport. I have put up requests for two condominiums, The Estuary and Forest Hill, and I hope this Budget will have good news for my residents. In fact, previously, it was offered to The Estuary but, at that time, they did not take it up because LTA had one caveat: they must build a covered linkway from the nearest block to their back gate, then LTA will continue from the back gate to the bus stop. So, this round, they agreed to do that but LTA's side has still not approved it.
Lastly, a sheltered linkway along Yishun Avenue 2 to the Yishun Sports Complex would also bring plenty of cheer to the residents on a rainy day. Mdm Chairman, Yishun is a beautiful place with nice nature parks and the soon-to-be-added Hot Spring Park. We have friendly and helpful people. It will be a perfect place to call home if our Transport Minister can have his magic touch to our bus services.
Mr Melvin Yong, please take your two cuts together.
Thank you, Madam. Mdm Chairman, the Bus Contracting Model (BCM) has helped raise bus service standards. This is evident as commuters' satisfaction in public transport had climbed to a nine-year high in 2016.
The BCM introduced new service standards that the public bus operators are required to meet. Consequently, our bus captains carry the responsibility of fulfilling these standards every day, and it is important that we give them our fullest support.
First, bus captains are required to abide by specific arrival timings at bus stops. In particular, the first and last buses leaving the terminal are required to reach their next stop no later than five minutes. They cannot be early, too. Bus captains also tell me there is an increase in the number of bus stops now designated as checkpoints, where they must meet specified timing requirements.
However, narrow ingress and egress points at bus interchanges, traffic conditions and even weather conditions can adversely affect the arrival timings.
I would like to ask the Ministry for the percentage of bus services which failed to meet the above service requirements in the past six months. Can the Ministry review these timing requirements and the number of checkpoints to allow for some form of flexibility, considering bus operations are subjected to unpredictable road and weather conditions that are often not within the drivers' control?
Second, the running time for bus captains to complete their bus journey should be reviewed to accommodate peak and non-peak periods. Today, our Electronic Road Pricing (ERP) rates are reviewed quarterly by LTA to take into account peak and non-peak periods like school holidays. With data analysis, I hope LTA can review and adjust the bus running time in a similar fashion.
Commuters have complained that they do not understand why buses travel slowly even when there are no vehicles ahead. Many do not know that our bus captains need to meet the service timings. Can LTA work with the union to raise public awareness on these service requirements under the Bus Contracting Model (BCM)?
In 2012, LTA announced the Bus Service Enhancement Programme (BSEP). Under this programme, we have seen an injection of more buses over the past years. However, the current infrastructure, particularly the older bus interchanges, were not expanded to cope with the increase in buses. Bus captains now need to wait longer for available bus parking lots, which affect their already-short layover time. I would like to ask the Ministry if the planned fleet of 1,000 buses are placed on the roads already and if there are any plans to review the current infrastructure?
The BCM requires all public bus operators to use LTA's Common Fleet Management System (CFMS). However, ground feedback indicates that information on the CFMS used by the Bus Operations Centre Controllers is not always synchronised accurately with the Driver Display Unit (DDU) used by our bus captains in the bus. This means that the CFMS may show that bus captains are late reaching the bus stops, while their DDU in the bus shows otherwise. Can LTA do more to improve the stability of these systems?
Lastly, we have heard of cases where bus captains are abused and even assaulted by commuters while performing their duty. Bus captains should not be distracted from driving the bus for the safety of the commuters on board and all road users. I would like to urge the tripartite partners to collaborate with the union to do more to protect our bus captains. On the union's part, we will work with the public bus operators to make a police report for every case of assault against our bus captains. I hope investigations of such cases by the Police would be handled promptly and there should be strict prosecution of offenders. I also hope that commuters understand that our bus captains work hard to bring us to our destinations safely and on time, every day and every night. I ask for your support to ensure that they work in a safe environment.
My second cut. Many commuters depend on our public rail transport daily. However, they may be unaware of the hard work that our rail maintenance professionals put in − often behind the scenes − to keep our rail transportation running. With more focus on rail reliability, as highlighted by several Members earlier, the role of our rail workers is more critical than before. We need to uplift the profession and ensure that there is a consistent pipeline of talent into the industry.
First, we must ensure that our rail workers can perform their duties in a safe environment. Today, they battle challenging working conditions at the underground depot and poorly-ventilated tunnels. More can be done to improve their work environment. We need to ensure that the air conditions in the underground depot in our tunnels do not pose any health concerns for our workers.
Second, as technology continues to advance, our rail workers need to keep up with the changes and stay relevant. The new Singapore Rail Academy, recently launched, can play a vital role in training promising new entrants and also upskilling existing workers. Can we establish a Rail Manpower Development Plan to systematically build up our talent pool? We must be able to send our local talents to learn at the best foreign institutes.
Lastly, I hope that the Ministry can work with the union and our rail operators to raise public awareness on the important work of our rail workers. This would not only instil a sense of pride among our existing rail workers, but also help to attract future ones.
I welcome the move by the Ministry to exempt the contribution of motorcycles to a quota to the open COE category. Hopefully, this move may help to ease the motorcycle COE price dilemma.
Madam, I still receive grievances expressed by motorcycle owners – specifically our fellow Singaporeans, who depend on their motorcycles for their family livelihoods – on the exorbitant motorcycle COE prices that have been going on for many years.
I believe a more encompassing and inclusive measure can be introduced and implemented to regulate the motorcycle COE prices. I would like to reiterate my call made at last year's COS debate, that is, to break down the motorcycle COE according to the different engine capacity and also to allocate the number of quota according to the percentage of these motorcycles on our roads.
If the COE for cars can be categorised in such a manner, why can it not be done for motorcycles? I still think it is one of the better ways to mitigate the issue of high motorcycle COE prices.
I have two clarifications for the Ministry.
First, observers and commentators viewed the introduction of tiered ARF as being meant to mitigate the high motorcycle COE prices. Can I have the Minister's confirmation as this was not mentioned explicitly during Minister Heng's Budget Speech. If the answer is yes, how can this be achieved and, if no, what is the actual purpose of this implementation?
Secondly, with a tiered ARF imposed on motorcycles, would the Ministry consider having paid Preferential Additional Registration Fee (PARF) rebate for motorcycles, similar to that for cars?
Mdm Chairman, in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Chairman, when implementing Government policies, blind spots often occur. However, problems will eventually be solved via effective communications between Government agencies and trade associations.
Two years ago, during the Chamber's luncheon dialogue with representatives from the transport industry, the Singapore Motor Cycle Trade Association gave us the feedback that, as a result of the COE system, the quota for motorcycle COEs keeps being reduced. We realised that motorcycle buyers actually fall under two categories. One category of buyers use motorcycles to make a living. The other category of buyers use motorcycles for leisure activities. With a smaller quota, the COE would be driven up, and the impact would be acutely felt by those who depend on motorcycles for their livelihood. The Singapore Motor Cycle Trade Association provided this feedback to Land Transport Authority, and SCCCI also helped to lobby by adding our views.
In this year's Budget, Minister Heng Swee Keat announced that the contribution of motorcycle COE quota to open category COE quota would cease, to address the problem of a decline in quota. LTA also announced that it would continue to seek feedback from the industry and public, so that the COE system could meet the demands of the population at large more equitably.
This case study shows that LTA has responded promptly to industry feedback and helped to solve their problems. SCCCI also engages in similar channels of communication with other Government agencies and, moving ahead, will help even more trade associations to provide constructive industry-related views.
First of all, I would like to comment about the recent changes in motorcycle COEs. Motorcyles are the lifeblood for many of our working class. The recent effort to remove motorcycles from contributing to the Open Category COE is a good move, because it will mean more motorcycle COEs available than otherwise. Despite that, however, the recent motorcycle COE auction price continued to edge up. Therefore, would MOT consider adding COEs back to the motorcycle categories, so that we move back towards the historical percentage that motorcycles used to represent in the entire vehicle population?
Next, I would like to talk about light goods vehicles. Businesses, especially SMEs operating light goods vehicles (LGVs), face many challenges today, and this contributes to high business transportation costs. In view of these challenges, I have a few clarifications.
First, would MOT consider delaying the implementation of Euro 6 diesel standards by one year, from the current 1 January 2018, so as to give key LGV vendors time to ready the full range of vehicles, which includes more vehicles with manual transmission drive? Why is this necessary? At the Traffic Police department, foreign worker drivers need to prove that they have a manual Class 3 driving licence, which is a near impossibility, given the countries they come from. Otherwise, they will be issued automatic Class 3 driving licence. So, not having many manual transmission vehicles available for purchase is going to create real operational challenges for many companies.
Second, would MOT consider allowing LGV owners to renew their COEs with tenures equivalent to their remaining statutory lifespan, versus the current five-year mark, so as to reduce the cost and cash flow associated with the extended COEs?
Third, can the Early Turnover Scheme (ETS) hopefully, be enhanced as well as extended by increasing the current and upcoming discount on COEs for LGVs, similar to heavy goods vehicles (HGVs), and extending the ETS to include Euro 5 through perhaps lower incentives, and not just Euro 6 vehicles?
Fourth, can MOT consider delinking the COE supply contribution from commercial vehicle de-registrations to the Open Category, just like what has been announced for motorcycle COE whereby de-registrations from motorcycles will no longer contribute to Open Category COEs in the preceding quarter.
Minister Khaw.
Mdm Chairman, Budget 2017 positions Singapore for an uncertain future. There will be challenges, but we will be in a good position if we can succeed in capturing the many opportunities that will also arise. Budget 2017 calls on all stakeholders to work together to seize these opportunities. The transport sector will play its part.
The transport sector is a key pillar of our economy. Many Singaporeans make a good living working in it. Collectively, the industry employs more than 300,000 workers. The potential for further growth is also great. Many well-paying jobs are waiting to be filled.
More importantly, the transport sector is a key enabler for our economy. It connects us not just within our island, but to the rest of the world. This started from Singapore's early days as a centre for entrepot trade and allows Singapore to thrive as an international hub today. That is why we are continually upgrading our infrastructure. This year, we are working concurrently on multiple projects, including Changi Airport Terminals 4 and 5, the Pasir Panjang and Tuas Terminals, the KL-Singapore High Speed Rail, the JB−Singapore Rapid Transit System (RTS) Link, the Downtown and Thomson-East Coast Lines.
The transport sector is also a crucible of innovation. It is ripe for disruption and transformation. The scope for using technology to raise productivity is substantial − self check-in facilities at the airport, robotics for baggage handling, driverless cargo vehicles, automated cranes at our sea-ports, LTA using big data to optimise traffic flow, predictive maintenance for trains, and drones for all kinds of deliveries. Who knows what else the future will bring?
Working with EDB, we offer Singapore as a test-bed, an incubator for new ideas, and for companies and start-ups to run trials here. What works can then be commercialised elsewhere and, along the way, we hope some local companies can acquire new capabilities and business opportunities.
Later, Second Minister Ng Chee Meng and Senior Minister of State Josephine Teo will elaborate on some of these exciting initiatives and trends. Many of these changes will happen during their career. It is appropriate for the young Ministers to spearhead these developments and see them through. As for me, I shall look forward to enjoying the benefits as a consumer during my lifetime.
I agree with Mr Sitoh Yih Pin on the inevitability of technology advancements. The human mind is wired to explore new ways of doing things. And we will always seek to better our lives. Last week, DeepStack was reported to have beaten the world's best poker players, and we knew that artificial intelligence had already beaten chess grandmasters and Go champions several years ago.
These technology advancements will create opportunities to change and improve our lives. If Netflix offers better value than Starhub TV, consumers will switch. I am familiar with Netflix, but I do not use it. I still enjoy going to the cinema, the old romantic ambience of the cinema.
This is the hard reality of the market that incumbents will always suffer. Such competition is unsettling for them, but it is good for consumers. As regulators, our job is not to stifle innovation but to be fair to all players, and we should always put consumer interest as our top priority. But I agree with Mr Sitoh Yih Pin that as a Government, we should also be concerned about the workers who will be impacted. He highlighted the stress on the taxi drivers. We should help them, not by insulating them from innovations, but by alerting them to the potential disruption and preparing them for change. Change is unpleasant but everyone can be helped to adapt to change.
As noted by the Committee on the Future Economy (CFE), the best way to ensure relevance is to acquire and develop deep skills, and going beyond that, to master competencies. Last month, I launched the Singapore Rail Academy, which aims to nurture a Singapore Core with deep technical expertise. As a start, the Academy has partnered the Employment and Employability Institute (e2i) to develop a foundation programme for both fresh graduates as well as mid-career upgraders. Mr Melvin Yong was there with me at the launch.
We have great ambitions for the Rail Academy. It will develop programmes to train workers in critical areas of rail operations and maintenance. It will work with the rail operators and the Institutes of Higher Learning to offer pre-employment programmes, as well as continuing education and training. An example is the part-time Diploma in Rapid Transit Technology. I agree with Mr Melvin Yong that we should also learn from good rail operators overseas by attaching our professionals there to pick up best practices.
The Rail Academy will develop a competency framework for railway professionals and also accredit training programmes. This will facilitate job upgrading. The Academy will also take charge of industry branding and work with industry partners to improve working conditions by utilising technology to lighten workloads and enhance employee health management.
What is most critical is for our transport workers to be open to learning new skills. Then, they can ride the wave of technological change. I agree with Mr Melvin Yong that we must tap on the strong tripartite relationship and platforms to help our workers adjust. For taxi drivers affected by competition, we are working with the National Taxi Association and taxi companies to help them cope. For bus captains, we are working with the National Transport Workers' Union and the public bus operators to help them adapt.
Madam, new technology, disruptive business models and commuters' demand for higher levels of service are transforming the way we move about. History is truly in the making. Where these will lead us, we cannot be sure. But I think it sure will be exciting! We have simplified the evolving drama under the banner of "Making Singapore Car-Lite by 2030". But it is much more than about cars or their depopulation. It is also about making it easier and more enjoyable for everyone to walk, cycle and take public transport. There will be less need to own cars, and we can look forward to reclaiming many road lanes and car-park spaces and using them instead for the community and for greenery. It is about a lifestyle change, a mindset shift and improving the quality of life for all.
We are testing many of these ideas in Ang Mo Kio by making it a model cycling town. Phase 1 is done. Phase 2 will begin shortly. We are making Tampines Town the second model walking and cycling town. Design work will start soon. Today, many residents there already use bicycles and PMDs to get around. Many who work in Tampines live in adjacent towns, so we will provide trunk cycling routes, connecting Tampines to neighbouring towns and also to Changi Business Park and Singapore Expo.
We will improve crossings, widen footpaths and improve safety at bus-stops. We are determined to make cycling and the use of PMDs both pleasant and safe.
At its core, our public transport system will have a high capacity, highly connected and reliable public train system.
We are making progress. The expansion of our rail system is on track. Our rail network is growing, on average, by one kilometre every month. This year, we will extend the East-West Line by four stations to Tuas West, and the Downtown Line by 16 stations to Singapore Expo. We will soon select and appoint the operator for the Thomson-East Coast Line. We have begun to call tenders for Circle Line Stage 6. We have started planning for the Jurong Region and Cross Island Lines. When all these lines are completed, eight in 10 households will have a station within a 10-minute walk. I will be one of those eight in 10.
We particularly look forward to the opening of Downtown Line 3. It will be a game-changer for residents living in the east, just as Downtown Line 2 was for the west and north-west residents. When in full operation, the entire Downtown Line should serve a daily ridership of more than half a million commuters. A recent study found that one out of six rides on the Downtown Line was made using new EZ-Link cards. So, these are new travellers. This suggests that a sizeable number of commuters, perhaps living along the Bukit Timah corridor, are switching to rail. The experience of the Downtown Line gives us confidence that a car-lite Singapore is achievable.
Over at Bukit Gombak, Mayor Low Yen Ling has called for Hume MRT station to be opened. I have heard her appeal. The long-term development of that precinct, including the upcoming Rail Corridor development, can justify an MRT station. That is why we have made provision for it. However, the pace of development will determine the timing for the opening of the station. As soon as there is sufficient ridership justification, we shall open the MRT station. This is our commitment.
Mr Ang Wei Neng observed that train reliability is improving. Indeed, it is, although we are not yet where we want to be. But we will get there. Not to worry. As he noted, we have an objective measure called the Mean Kilometres Between Failure (MKBF) to track our progress objectively. Our MKBF crossed 160,000 train-km in the first half of last year. It further improved to 192,000 train-km in the second half, close to my target of 200,000. That is why I am raising the bar, to the next target of 300,000 train-km. And next year, we will shoot for 400,000. It can be done.
As I previously explained to Mr Dennis Tan in this House, raising train reliability is a multi-year effort. It is not multi-week or multi-month. It takes years because replacement of ageing assets takes years. We have replaced all the old sleepers. This year, we will replace the old third rail system which had been causing some problems to the East-West Line recently. We will soon complete the upgrading of the signalling system for the North-South Line, which will bring a lot of benefits to many residents, including the residents of my favourite Member of Parliament, Er Dr Lee Bee Wah. Next year, we will do the same for the East-West Line. But let me sound an alert. Re-signalling is a complex engineering operation. Er Dr Lee Bee Wah knows that. Getting it done perfectly, flawlessly, is almost impossible. That has been the painful experience of London, Hong Kong and Taipei. They warned us that we should expect many teething problems when we cut over the signalling system to the new one this year. So, I am all mentally prepared for criticisms from Er Dr Lee Bee Wah. We will do our best to minimise inconvenience, but be prepared for some hitches. So, please bear with us.
Mr Ang Wei Neng highlighted the recent hitches between Jurong East and Joo Koon stations on the East-West Line. We have very old signalling components there which need replacement. We are planning to replace them. But, sometimes, maintenance and replacement works cannot be completed during the limited engineering hours. That is why train service for that stretch was occasionally impacted when planned works extended into revenue hours. I have heard Mr Ang's suggestion and I shall ask LTA and SMRT to consider ending the revenue service for that stretch of the East-West Line earlier so that we have more engineering hours for these works.
Meanwhile, we have completed the transition of SMRT Trains to the New Rail Financing Framework (NRFF). We took ownership of SMRT's rail assets last October, and Temasek's delisting of SMRT also allows it to focus on its core responsibility without the short-term pressures of being a listed company. This is an important achievement. It took us many years and I am glad that we have now completed it. The rail industry structure is now in a better shape to allow us to replace and upgrade ageing assets promptly. This should improve reliability.
We will soon call tenders to upgrade the North-South and East-West Lines' power supply system. It has been a source of many problems in the last few years. Now that we have taken over the assets, we are going to change this replacing of the power supply system, and also to replace all our first-generation MRT fleet with 66 new trains. And it will not be just a mere one-for-one replacement. We will, in the process, upgrade the trains as well as the power supply system to tap on new technology which is now available.
For the North East Line, we are also working with SBST to refurbish and upgrade their first-generation trains. For the Bukit Panjang LRT, we have started the process for its renewal. We target to call a tender this year for a complete replacement of the ageing components and an upgrade of its systems.
Mr Zaqy Mohamad asked if we can do predictive maintenance for our trains and tracks. Indeed, predictive maintenance is the way to go. We are acquiring the necessary tools and capabilities for this purpose. These include new generation automatic track inspection systems and condition monitoring tools for real-time data collection and analysis. I also hear Mr Zaqy's concern about the noise generated from passing trains. We are aligned with the NEA on what is the acceptable level of noise. We are closely monitoring the situation and are implementing system-wide noise mitigation measures. Our trains have noise-dampening wheels and our operators are servicing the train wheels and tracks more frequently. Where necessary, we will install noise barriers. This is, however, a major multi-year programme, as we have to coordinate it closely with so many other maintenance, improvement and upgrading works that compete for precious engineering hours.
Besides, buses complement our MRT. Under the Bus Service Enhancement Programme (BSEP), we have injected 850 buses and introduced 70 new or amended routes. The improvement has been felt on the ground. I appreciate Mayor Low Yen Ling's feedback on new bus services in Bukit Gombak. But I know that we can never do enough. I have heard her call for better connectivity to the upcoming Community Club in Bukit Gombak. She is a very good Member of Parliament and I have a soft spot for good Members. Another good Member is Er Dr Lee Bee Wah. I have also heard her feedback on Services 811 and 860, and for more covered linkways. We will see what else we can do. But let me also plead and seek Members' understanding that, for financial prudence, bus service provisions require a minimum ridership. If ridership goes down as commuters switch to rail, we will have to remove or amend existing bus services. Otherwise, you will have half-empty buses running on the roads causing pollution and it is also a waste of taxpayers' money.
Meanwhile, our bus infrastructure has expanded in tandem with the larger bus fleet. We have now three new interchanges and more parking lots at existing interchanges. But, critically, we have moved all the bus operators to the Bus Contracting Model, with LTA taking over bus assets and infrastructure. This is another major transformation in the transport sector and for the bus industry. Next month, we will be awarding the tender for the third bus package at Seletar. The tender has now been closed. I was looking at the bids and it has attracted very competitive bids, with lower prices, on average, compared to the previous two tenders. This is good for taxpayers. Later this year, we will call the tender for our fourth package at Bukit Merah. With competition, bus operators are working harder to improve their service. This is good for commuters.
As Mr Melvin Yong pointed out, our bus captains are the key to delivering higher service levels. Our bus captains strive to improve bus arrival regularity and reduce bunching − a very big complaint from the ground. LTA has set fair but ambitious standards, and our bus captains are working closely with their service controllers to manage bus arrivals real-time. That is why, sometimes, some buses on certain routes have to be driven very slowly. That is because they want to arrive punctually, as scheduled, because road conditions can vary during the day. And this is the only way to solve the bunching problem. If you want the bus drivers to drive as fast as the roads can take, then sometimes they may arrive too early and there will be complaints about bunching. But I accept that this is still a new system, both for regulators as well as the regulatee, and we shall see how else we can calibrate the system to make it work better for us. But it has worked very well elsewhere − London, Australian cities − and I see no reason why it cannot work here, too.
As our public transport system improves and expands, fewer people will need to own a car. Going car-lite is, however, a journey. Meanwhile, the various vehicle control policies, like COE and ERP, remain relevant. But from time to time, we refine them as circumstances change. And one big move we made this year is to stop the contribution of motorcycle COEs to the Open Category. Very few motorcycles have been registered under Category E COEs due to the high Category E premiums. This recent move will stabilise the motorcycle population. It is in response to many Members' and motorcyclists' as well as the Chambers of Commerce's concerns that the motorcycle population is shrinking.
Another move is to improve the progressivity of the vehicle tax system. In 2013, we introduced the tiered ARF for cars, taxis and commercial vehicles. So, this year, we extended the same to motorcycles. This is the reason behind this move, because Mr Muhamad Faisal Abdul Manap had asked what was the rationale behind this move. But we are increasing the ARF only for the high-end models. The large majority of motorcycle buyers will not have to pay higher ARF.
I thank Mr Thomas Chua for his comment. Yes, indeed, we always consult the industry. LTA's dialogues with them are at least twice a year. Both ideas came up from the industry in the process of brainstorming and we are happy to be able to implement them this year. As I have said, the Singapore Motorcycle Trade Association is an important stakeholder and is our partner. We are on the same side. Other than market-sensitive information, we share with them as much as we can.
Mr Henry Kwek voiced the challenges faced by businesses and we are mindful of their difficulties. That is why there are several concessions to help them manage costs. So, the ARF for commercial vehicles is low, motor taxes are low, road taxes are low for them. And, secondly, commercial vehicles can go for repeated five-year COE renewals to help businesses better manage their cash flow.
As for Euro 6 emission standards, these are regulated by my colleague in MEWR. We did discuss in Cabinet and the intention to move it to Euro 6 next year, having served the industry notice since 2014, I think there is sufficient time for the industry to respond. I know there are some concerns about whether there would be enough vehicles, Euro 5, and some questions on why can we not go to Euro 5 first, and so on.
Having decided on Euro 6, I think we should just move. The market has enough Euro 5 vehicles and models to meet the demand. The Minister for the Environment and Water Resources will share more details later.
My own take on this issue is this. Transport does impact our health. Europe's embrace of diesel vehicles has now made many cities highly pollutive. It is a sad case of unethical commercial practices making money at the expense of public health. They are now trying to reverse the trend. Paris, Madrid, Athens and Mexico City have all announced that they will ban diesel vehicles from their city centres, latest by 2030. I think we, too, should nudge down the population of diesel vehicles and work towards becoming a diesel-free city. The restructuring of the diesel tax should be read in that context.
Madam, as we work towards Car-Lite 2030, let us be also mindful that the significant improvements to our public transport network require high capital investments and incur high operating costs.
Under the new Bus Contracting Model, the Government is now responsible for buying and replacing buses. We pay bus operators a fee to run the bus services. Although fare revenue goes to the Government, it is not enough to cover operating costs and the Government has to top up the deficit. And it is a huge deficit.
Over the next five years, we expect to subsidise public bus services by close to $4 billion. Similarly, with the transition to the New Rail Financing Framework, the Government is now responsible for replacing rail assets. And over the next five years, we also expect to spend $4 billion on rail. And all this − $4 billion plus $4 billion equals $8 billion − is on top of the about $20 billion we will be spending to build new public transport infrastructure.
We must ensure that the fiscal burden does not become too excessive for taxpayers. In the earlier years, I remember, as a young officer in the Civil Service, our objective was to split the responsibility in transport by having taxpayers pay for the construction of the infrastructure, in other words, capital expenditure (capex) − the Government and the taxpayers pay for it. But commuters must bear the operating costs through transport fares. In other words, transport fares must be able to cover the operating costs. But over the years, as fares have not kept up with rising costs, taxpayers have to subsidise more and more of the operating costs, especially as we have been raising service standards significantly.
This is clearly not sustainable. While the Government will continue subsidising public transport heavily, we must find a fair balance in the relative burden to be borne by commuters, taxpayers and operators. Remember also that commuters are also taxpayers.
Fares are regulated by the independent Public Transport Council (PTC), through a multi-year fare formula. The current fare formula will expire after this year's fare exercise. The PTC will be reviewing the formula. They will consult widely. I am confident that they will decide wisely. Last year, they took a big step to standardise the train fares across all MRT lines and no longer make a distinction between above-ground and underground lines. This was a major step. They slayed a sacred cow!
Many commuters have benefited. They have seen their fares reduced. I know. As a regular user of the Circle Line with a Senior Citizen card, I see my fare reduced from 92 cents to 87 cents. But remember: the PTC cannot always bring good news; sometimes, they have to adjust fares upwards. When they do, I hope commuters will be understanding.
Mdm Chairman, we are enhancing our transport system to meet the needs of Singaporeans and also to support our future economy. A good transport system connects people to places and also connects people with one another. Public transport is a common space where we interact with fellow Singaporeans and where collective memories are made. So, let us shape this common space together to raise our quality of life and make Singapore among the most liveable cities in the world.
Madam, I am heartened by how MOT has balanced the disruptive aspects of the industry, such as Uber and Grab, and embraced future technologies by creating regulatory sandboxes for autonomous vehicles, for instance.
Recently, our taxi operators announced that they will be implementing surge pricing. The private hire car industry has set themselves up to fill the gaps in availability of the traditional taxi companies. Now that taxi companies are moving in the same direction, many Singaporeans are concerned that there is no longer fare certainty if both the taxi firms and private car hires all adopt surge pricing. Also, many asked if they will be hit with a double whammy now that LTA has just relaxed earlier this year the requirements for taxi availability. How can the Ministry ensure that the public will be adequately served?
From a regulatory point of view, there are many possibilities for transport in the near future and I think the Minister just now covered some of these, such as autonomous vehicles. I would like to ask the Ministry what regulatory and policy changes it may require to manage this transition and how will this transform public commute?
I would like to propose that a Future Transport Committee be formed to conduct a comprehensive overview of regulations covering all forms of current and predictable future civilian ground transport. We must look at both the economic and social impact shifts in the transport paradigm; and what this means for commuters and Singaporeans whose rice bowls could be impacted, such as autonomous vehicles and other aspects. For example, today, you find taxi drivers being impacted, too.
On a more national strategic consideration, I would like to ask the Ministry how our sea and air ports will be differentiating themselves, with growing competition from the region, be it the new Malaysian port or the Kra Canal development. What new strategies and features will be put in place to ensure the continued attractiveness of our ports? I look forward to hearing from the Minister on these considerations.
In Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] Mdm Chairman, the high number of unhired taxis and rental cars is worrying. Currently, more than 1,700 taxis are sitting idle. To compete, taxi operators are introducing the dynamic pricing model. What is the way forward to balance traditional taxis and new market players?
Today, we have two pilot programmes for driverless vehicles running. Widespread deployment of self-driving vehicles is expected in 10 to 15 years. Can the Ministry elaborate on our future plans for driverless cars and buses? What kind of future is there for today's drivers?
Mdm Chairman, I am excited about many on-going trials on autonomous vehicles. But as Executive Secretary of the National Transport Workers' Union, I am equally concerned with the possible implications on some 50,000 workers who drive for a living. It keeps me awake at night.
Many of these drivers − bus captains, truck drivers and taxi drivers − are middle aged and are not highly educated. How can we help them transition into a driverless world?
What is the projected implementation timeline for autonomous vehicles in Singapore? Can the Ministry work closely with the union on methods and pace of implementation? How can we leverage the Singapore Bus Academy to upskill and multi-skill our bus drivers for future jobs and not just basic training for current jobs?
Widespread adoption of autonomous vehicles may be a decade away. But we need to start preparing our workers today.
There are about 100,000 people who possess a Taxi Driver Vocational Licence (TDVL). However, only about half of them are actively driving a taxi. Some of them have commented that hiring agreements with taxi operators are cumbersome and opportunities to drive a taxi on a part-time basis are limited.
Today, there are more flexible hiring options, including even an hourly rental scheme. Will the Ministry, therefore, consider piloting a trial to encourage inactive TDVL holders to keep their licence and driving skills current by driving a taxi?
As an incentive, the Ministry can consider reducing their licence renewal fee if they clock a stipulated minimum number of hours driving taxis on the roads within the year.
Secondly, there is the impact of a double whammy. The new diesel tax does translate to additional business costs burden on taxi drivers. Cabbies told me that they want to be made more competitive and not to seek less competition. So, will LTA consider reviewing the overall business operating costs of the taxi business, to seek new and effective ways to manage rental costs incurred by drivers, especially since they are also facing intense competition from private hire car drivers as well?
Madam, we have made concrete progress in recent years in making public transport more accessible to disabled persons. There are two areas I wish to highlight for further review.
First, the space available on buses for wheelchairs. The Minister previously confirmed that 92% of public buses today are wheelchair-accessible and the goal is to make this 100% by 2020. While certainly welcome, the fact is that the number of wheelchairs that a bus can accommodate is very limited. According to the operators' websites, SMRT buses can accommodate two wheelchairs, while some SBS Transit buses can only accommodate one.
I have received feedback from disabled persons living in a charitable home about the difficulties posed when a few wheelchair-bound persons need to travel at the same time. Due to the limited space on board, they would need to board the buses in turn and wait at their destinations for subsequent buses carrying their friends to arrive, greatly increasing their travelling time.
Besides their personal situation, they also rightly point out that as the general population ages, we can expect that a few wheelchair-bound persons may need to be on board the same bus at the same time. Now with the Bus Contracting Model, where the Government owns all operating assets, I ask the Government to look into having buses with more wheelchair space.
Secondly, while we may have made good infrastructural improvements and removed physical barriers, it is vital that our public transport emergency plans provide for the safety and safe evacuation of persons with disabilities. Should a contingency arise, say, in the MRT system that requires evacuation or diversion of passengers, do our emergency plans spell out how we will communicate and protect those who are physically or mentally impaired, including the wheelchair-bound or those impaired in vision or hearing? To what extent have such plans been exercised?
Madam, LTA said last December that the Silver Zone initiative will be rolled out to many parts of Singapore by 2023. While there are merits to the Silver Zone initiative, there are also safety concerns and operation as issues that need to be resolved.
First, the implementation of the Silver Zone programme must go hand-in-hand with the widening of the pedestrian footpaths in the area. This is because the roads in the Silver Zone will be narrowed substantially to slow down traffic in the area. This will leave very little room for cyclists to manoeuvre. As some pinch points along Hougang Avenue 5 are designated Silver Zones, there is virtually no room for cyclists and buses to co-exist. Due to safety concerns, cyclists may take to the footpath and this will create another set of problems. The elderly, expectant mothers and young children are all at risk when cyclists are forced to share footpaths that are not designed to be shared in the first place. Without the widening of the pedestrian footpath for Silver Zone, it is an accident waiting to happen, either on the narrow road or on the narrow footpath.
Second, the courtesy crossing is probably one of the most misunderstood features of the Silver Zone initiative. Some courtesy crossings are designed to look like zebra crossings without the white stripes and light poles. In fact, when the Silver Zone was done up in Hougang, a few residents told me the contractors forgot to pain the white stripes and left.
Who is supposed to show courtesy at such crossing − the pedestrian or the motorist? According to LTA, it is the responsibility of the pedestrian to keep a look-out for on-coming vehicles at such crossings. Madam, here lies the confusion. I have seen motorists stopping for pedestrians to cross, while others did not. It is made more confusing when motorists have to slow down at such crossings due to the pinch points and the elevated crossing, but they may not have the intention to stop for pedestrians to cross. Furthermore, motorists may show courtesy on one side of the road while, on the other side, they may not. How would the pedestrians know who will stop for them? There is too much second-guessing at courtesy crossings, and that is a recipe for accidents to happen.
The term "courtesy crossing" is a misnomer to begin with because there is no change to the way pedestrians are supposed to cross the road. We look left, look right and look left again before we make a judgement call to cross the road. The pedestrians still have to stop for vehicles to pass. So, what is this added courtesy all about?
The Silver Zone is a good initiative. The safety concerns for cyclists and pedestrians over the narrow footpaths can be easily addressed. The confusion over the courtesy crossing, however, needs to be addressed sooner rather than later. Residents have shared incidents of near-misses at such crossings and I hope LTA will look into resolving this confusion soon.
Madam, gasoline and diesel-powered vehicles are key contributors to air pollution in cities around the world. Recently, the Minister for the Environment and Water Resources was quoted in a newspaper article stating that Singapore was not on track to meet our 2020 targets for reducing air pollutants.
Electric vehicles are seen as a solution to this problem and some are promoting it as a game-changing growth industry, especially if it is coupled with self-driving technology in the near future.
The electric car-sharing scheme that is being rolled out this year is an excellent programme in terms of scale and scope. The fact that the public can use up to 20% of the 2,000 charging points is a good move to encourage private electric car ownership. Other than the sharing of charging points, does the Ministry have plans to promote private electric car ownership?
However, since the Government's approach is to encourage public transport usage rather than private car usage, the key question when it comes to electric vehicles is whether our public buses would make the switch from diesel to electric. LTA announced in August last year that Go-Ahead Singapore was putting an e-bus on a six-month trial. I would like to ask the Minister what is the conclusion from the trial and whether it indicates a go ahead for more e-buses to hit our roads.
Mdm Chairman, the Ministry is allowing certain footpaths to be shared by cyclists, users of PMDs and pedestrians. Allowing shared use of footpaths may invariably increase the risk of accidents. Besides suitable sign-posting, footpaths should always be sufficiently wide to allow for such safe shared use.
Last year, I filed a Parliamentary Question asking the Minister about the recommended width for footpaths and whether the Ministry will conduct an island-wide review to ensure that existing footpaths which are often used by cyclists are widened in accordance with the minimum width.
Minister Khaw replied to say, and I quote, "most of our footpaths are at least 1.5 metres wide". I assume the Minister meant that 1.5 metres is the "recommended" width.
In reality, there are some footpaths which are often used by both cyclists and pedestrians which may be narrower than 1.5 metres. One example is the footpath along Bedok North Avenue 4, specifically around the bus stop opposite St Anthony's Canossian Secondary School, right next to Block 95. It is 1.2 metres wide at least along certain parts of the path leading towards Bedok North Industrial Estate. This footpath is heavily used by cyclists and PMD users travelling between Bedok and the industrial estate, as well as pedestrians.
Some residents have shared with me during my house visits that there is a dangerous choke-point at the location around the bus stop where the footpath connects to the staircase leading to Block 95, right by the bus stop. Coming from the direction of the industrial estate, the footpath curls left round the back of the bus stop, effectively creating a dangerous blind spot made worse by the advertisement billboard which obstructs the view of both cyclists and people at the bus stop. According to the residents I spoke to, there have been accidents and near misses. I wrote a letter to LTA on 7 July 2016 but I have yet to hear from them on the action they may have decided to take or the reasons for not taking any action.
I urge the Ministry to carefully review the width of all footpaths which are often used by cyclists or PMD users, to ensure the safety of all users.
Madam, with the passing of the Active Mobility Bill recently, bicycles, powered mobility devices and power-assisted bicycles are allowed to be used on public paths.
I understand and accept that these devices would allow more people, especially the elderly, to move around without the use of the car. This will be environmentally friendlier and help Singapore achieve a car-lite society faster.
However, members of the public have given feedback that they are still worried about the potential for accidents on the footpaths caused by reckless and inconsiderate users of such powered mobility devices or power-assisted bicycles. The concern is really for the young children and the elderly who are less alert to the dangers of speeding riders.
I urge LTA to have a greater outreach to all potential riders of powered mobility devices or power-assisted bicycles so that they can learn to be considerate and responsible riders. LTA should conduct safety courses not just in English but also in other languages for riders. If LTA anticipates that more seniors will be using such devices, LTA should conduct such safety courses in the vernacular languages and at convenient places like the Community Centres or Community Clubs. We need to do more to reach out to the potential riders so that they can learn to respect other road and public path users. In many parts of Europe and Australia, both pedestrians and riders of powered devices are able to co-exist because of mutual respect and consideration for each other.
I also call on LTA to enlarge its team of enforcement officers. Last month, I filed a Parliamentary Question and I learned that there are currently only 16 LTA active mobility enforcement officers. Madam, I submit that these 16 active mobility enforcement officers are simply inadequate and not effective. Without adequate enforcement, there is a real risk that riders may simply ignore the LTA rules and ride recklessly. In the process, they endanger other road or footpath users. LTA should not just rely on its 600 volunteers as the deterrent effect and impact are not the same as having dedicated enforcement officers.
We are on track to achieving a car-lite environment with a well-connected bus and train network, more sheltered walkways and the push for bicycles and PMDs. To make our city bicycle-friendly will entail building cycling infrastructure, extensive cycling paths that are clearly marked out, and putting up signages.
With our cycling tracks gradually getting more crowded because they are popular with more cyclists and PMD users, we all need to do more to promote a cycling culture and inculcate a mindset for all on safety and etiquette, such as giving way to cyclists, road users and pedestrians.
As Minister Khaw mentioned earlier, Ang Mo Kio has completed Phase 1 of its dedicated cycling path project. I wonder if his Ministry has an initial assessment of its effectiveness and what lessons have we learnt from this project.
The national bicycle-sharing scheme to be piloted in some areas by year-end is another good initiative. Will the Ministry consider extending this scheme to Ang Mo Kio as well? The necessary infrastructure is already in place to support the rolling out of such a scheme.
Apart from the national bicycle-sharing scheme, other privately operated schemes are also in play. Are there plans to have more of these schemes ply other parts of the island which are not covered in the pilot trial of the national bicycle-sharing scheme? And what concerns will the Ministry have with regard to these privately run schemes?
In addition, how would the privately run bicycle-sharing scheme be addressing safety concerns? For example, how will the users' minimum age be ascertained should they participate in the bicycle-sharing scheme and use it on the roads?
Beyond bicycle-sharing, can we also push for greater inclusiveness and more efficient use of resources? Can we allow for the cycling infrastructure, such as docking stations and smart locks systems, be extended to other private bicycles and PMDs not on the national bicycle-sharing scheme as well?
Madam, when I was in Shenzhen last month to study about electric buses, I also had the chance to witness the proliferation of bicycle-sharing schemes in Shenzhen city.
Three companies − Ofo, Mobike and Bluegogo − dominated the market. They provided thousands of bicycles for rental and the rental fee started from as low as 10 cents RMB per ride. These companies operate without government subsidies. One drawback, however, was messiness. These rented bicycles were parked all over the places haphazardly on the pedestrian pavements.
Ofo and Mobike, which are known as Obike in Singapore, have started operations in Singapore. Ofo charges as low as 50 cents per ride in Singapore. The rate is very competitive, attractive and affordable. Last Sunday, when I was in my constituency, I had the chance to try the use of an Obike. It was left behind at a void deck in Jurong West. So, I used the Obike app to unlock the bicycle and tried riding it. It was very easy to use. I was even given a $3 credit when I registered online. From the Obike app, I could see that the yellow rental bicycles were in abundance in availability in the nearby blocks as well as at the Lakeside MRT station. It was so convenient. Ofo and Obike have indicated that they will push out a few thousand bicycles over the next few months without the need for fixed docking stations. It appears that the services provided by these two innovative companies could help fix the first- and last-mile problem of connecting commuters to and from MRT stations.
In contrast, the bicycle-sharing scheme initiated by LTA will add 1,000 bicycles at fixed docking stations in the Jurong Lake District by end of this year. I understand that LTA is prepared to subsidise this bicycle-sharing scheme in Jurong Lake District. The companies bidding for this project will need to indicate the amount of subsidies they require.
LTA's bicycle-sharing scheme, as compared to those provided by Ofo and Obike, appears to pale in comparison in terms of speed of implementation, the number of bicycles on offer and the ease of use. Thus, I would like to ask the Minister if LTA would consider working with these companies like Ofo and Obike to proliferate the bicycle-sharing scheme and make it popular in all major towns in Singapore, besides just Jurong Lake District, but less the messiness.
Minister Ng Chee Meng.
Mdm Chairman, Minister Khaw spoke earlier about the immediate improvements we are making to our transport system. I will share how MOT plans to transform it over the longer term.
Singaporeans can look forward to a future transport system that will be smarter, greener and more inclusive.
Let me first share how we will leverage big data, mobile technology and automation, to make our transport system better and smarter.
We will use big data and analytics to improve train reliability. We will be deploying condition monitoring tools on our trains and equipment to collect data more extensively and on a real-time basis. All 66 new trains that the Minister mentioned for the North-South East-West Lines and our new power supply system will be equipped with monitoring sensors across all these.
We will also be deploying a new-generation Automatic Track Inspection System for the Downtown Line. Imaging sensors and lasers will be installed on revenue trains to scan the tracks of the entire Downtown Line to detect anomalies, so that we can arrest any faults early.
With such data, we will be able to improve the maintenance of our train system. We will adopt a more proactive, predictive approach to maintenance, away from the current model of preventive maintenance. To enable this transition, we will need to build an integrated asset management database, so that we can better monitor and predict the health of the entire rail network and all its components.
Data analytics are also helping us improve other aspects of our transport system. For instance, the public bus operators track the location of all their buses, and they are applying analytics so that they can instruct their bus captains to either slow down or speed up to avoid bunching with other buses, all in real time. This will, in part, answer Mr Melvin Yong's concerns.
And this is only the beginning. LTA is building an analytics system which will fuse data from various sources, such as fare cards, wifi and CCTV systems, and also cellular data from the telcos. This will enable LTA to better model commuter flows in our public transport network and improve its overall planning capabilities. We can then also respond more effectively to ground developments, such as by injecting additional bus and rail capacity, to cope with unexpected crowd surges or even train delays.
In time to come, we will be able to integrate private transport data as well. Using Global Navigation Satellite System technology and through the in-vehicle units that are installed in all vehicles in Singapore, we can get aggregated, comprehensive and real-time data on road traffic. We can use it to improve traffic flows, for instance, by providing motorists with access to real-time traffic data to decide on the fastest or least congested routes, and enable even our traffic light system to respond more intelligently and optimally to different real-time road conditions.
Apart from big data, mobile technology is another key enabler in our transport sector and this is already benefiting commuters tremendously.
In particular, just-in-time, demand-responsive transport has become more pervasive. For example, all of us know, just until a few years ago, if we wanted to book a taxi, we had to speak to an operator on the phone, and had access only to the taxis of that one company and this is not including all the holding time. This was clearly not convenient nor efficient. But today, we use an app, like GrabTaxi, to book taxis almost instantaneously from any taxi company. Commuters are better served because there are now more taxis that are reachable, literally at our fingertips.
But the greater disruptive change by far, enabled by mobile technology, has been private hire car services. PTC's recent survey suggests that almost one in two point-to-point trips are now served by private hire cars. At the same time, it seems that many more commuters are taking point-to-point transportation, both on taxis and in private hire cars.
I am glad to see that commuters are using these mobile technologies and are satisfied with both taxi and private hire car services.
Mr Zaqy Mohamad and Miss Cheng Li Hui expressed concerns about dynamic pricing. I am glad that taxi companies and drivers are rising to the competition. Taxi drivers, as I said, have improved their services. Customer satisfaction has improved from a year ago. And taxi companies are rethinking their business models. Some have lowered rental rates and introduced innovative rental schemes. More recently, I know that they have proposed dynamic pricing as one more option for booked trips. This is similar to the way fares for private hire car services are determined. The PTC is currently discussing the details with the taxi companies. Meanwhile, my view is that we should let the taxi industry innovate and adapt to the new market conditions and competition. Our taxi drivers have to make a living, too, and we should not restrict their ability to compete effectively.
On the other hand, I understand some commuters' concerns about dynamic pricing. Fares, indeed, will likely vary according to demand and supply, sometimes higher and sometimes lower during peak hours or off-peak periods. But importantly, before any journey begins, commuters will know exactly how much their fare would be. They can then choose to accept or decline the offer.
For commuters who prefer more familiarity, they will have the traditional option to book a taxi. The taxi companies, I understand, intend to retain the traditional metered fare system even as they introduce dynamic pricing. But ultimately, taxi companies should ensure that dynamic pricing improves and not worsens the matching of demand and supply.
I thank Mr Zaqy Mohamad for his comments on our approach to managing the changes in this evolving industry. Our light-touch approach has served commuters well so far. The new regulations for private hire drivers and vehicles are aimed at protecting commuters' interests, especially safety. From July 2017, private hire car drivers must obtain a vocational licence. To get the licence, they must undergo relevant training and pass requisite tests on road and passenger safety and be subject to background and medical checks.
We intend to maintain some differentiation in privileges and regulations between taxi and private hire car services for now, given their different roles. For instance, we intend to continue to allow only taxis to serve the street-hail market. Taxis also enjoy COE concessions. They pay the Category A Prevailing Quota Premium even though many taxis are larger Category B models. So, while we try to ensure that competition is fair, it is not always possible and desirable to impose the exact same regulations on both sectors.
There are likely to be further disruptions afield. The recent trend is ride-sharing among unrelated commuters. UberPool and GrabShare offer commuters the possibility of sharing a private hire car trip if they are headed in the same direction, which is cheaper than taking a ride on your own.
We also have SWAT, a local start-up that aims to provide on-demand bus services. The company uses a routing algorithm to pick up and drop off passengers on demand, while dynamically optimising the route real-time so that the bus can manage passengers most efficiently. This could potentially transform how bus services are operated in the future, including public bus services in areas where there is low ridership and maybe during low-demand hours.
Mobile technology is also re-shaping bicycle-sharing. A few years back, we studied the schemes in cities like London, Paris and New York. These are the traditional ones with docking stations. We thought they could potentially work in Singapore. But, they were however not sustainable commercially and required some Government subsidy. So, we took some time to work out how to fund this and, eventually, LTA put out a tender last year for a bicycle sharing service, starting small in the Jurong Lake District.
However, as Mr Ang Wei Neng has observed, in recent months, this has been disrupted almost. We have seen the emergence of dockless bicycle sharing systems here in Singapore. These dockless systems allow users to hire and return a shared bicycle at any location. There are obvious advantages: lower infrastructure costs, more convenience. The downside, however, is potential indiscriminate parking. It is still not clear whether these new systems or the traditional ones will work better for Singapore.
LTA will study both the docked and dockless systems. And we will assess whether to proceed with our plans and whether to extend them to other towns like Ang Mo Kio, as Mr Ang Hin Kee has suggested, given that Ofo and Obike are already rolling out their services independently of LTA's tender.
Let me move on to the topic of automation. We are focusing on self-driving technology in a big way because they have the potential to dramatically improve public transport. For instance, we could have a fleet of self-driving pods or shuttles that can be called on demand to bring us from our doorstep to an MRT station. Self-driving buses, on the other hand, could address our shortage of bus drivers.
Of course, significant technology challenges have still to be overcome before self-driving can take off in a big way. But we are working towards such a day by facilitating the development of such technology and mobility concepts in Singapore.
We have embarked on trials of self-driving pods. Initiatives are underway to develop self-driving buses and to explore how the technology can be applied for use in freight transport and utility vehicles.
We also launched the Centre of Excellence for Testing & Research of Autonomous Vehicles at NTU (CETRAN) in August last year, to establish a set of safety and performance standards for our local environment as well as testing requirements and protocols.
The advent of these technological innovations and new business models worries our transport workers, quite understandably. As Mr Zaqy Mohamad, Mr Melvin Yong and Miss Cheng Li Hui all similarly expressed, I understand their concerns as well. But the right approach is to prepare our workers for these changes and not obstruct them. In any case, these technological advances cannot be stopped, and even if slowed, we will lose out on the many new opportunities that they bring along.
We will help our workers to upskill and re-skill, so that they can take on the new jobs that will come as the industry evolves.
The Government has put in place the institutions to do so, with the Singapore Rail Academy and the Singapore Bus Academy. We are working closely with our tripartite partners through platforms, such as the Public Transport Sectoral Tripartite Committee chaired by Senior Minister of State Josephine Teo. This Committee will identify the relevant skills, build local capabilities and develop the curricula to nurture a future-ready workforce.
For taxi drivers, Mr Ang Hin Kee suggested some incentives to get more taxi drivers to ply the road by waiving their licence renewal fees. Today, active taxi drivers pay only half of the Taxi Driver's Vocational Licence renewal fee, that is, $20, every three years when they renew their licence. We will consider Mr Ang's suggestions, but I think what will be more meaningful in the longer run is for the National Taxi Association (NTA) to work with the taxi operators to innovate to meet the competition from private hire cars.
I trust that our workers will rise to the challenges and find a way to adapt. They always have. Some of our bus captains I have met in Punggol have upgraded themselves to take on interchange and operations control centre roles which allow them to continue improving the commuter experience in other ways and also upgrade their own incomes and responsibilities. As I have shared earlier, taxi drivers have also been improving services in response to competition and I look forward to the evolving situation to improve overall point-to-point services.
I have talked extensively about smart transport. The second feature of our future transport system is that it will be greener.
Emissions from motor vehicles are one of the largest sources of air pollution. Vehicular emissions contribute about half of locally produced PM2.5 pollution. And diesel vehicles are the main culprit. A study postulates that nitrogen dioxide produced by diesel vehicles is linked to around 23,500 deaths in the UK a year. London is setting up a Low Emissions Zone in its city centre to address this and is replacing most of its diesel buses with hybrid and electric ones.
In Singapore, we are enhancing our Carbon Emissions-based Vehicle Scheme (CEVS) to incentivise a shift towards the purchase of lower emissions vehicles. The current CEVS grants rebates or levies surcharges based on a vehicle's carbon emissions.
To more holistically account for the health and environmental impact of vehicular emissions, we will include other pollutants, such as carbon monoxide and particulate matter, into the criteria of the scheme. This will encourage buyers to choose models that are not only more fuel-efficient, but also emit less air pollutants, and thus further improve the ambient air quality and public health. Our colleagues from MEWR will elaborate on the enhancements to the scheme.
We will also make a shift towards a greener public bus fleet. By procuring buses which meet more stringent emission standards, we have already been greening most of our diesel-powered fleet. But no emissions is better than low emissions. That is why we have been trialling an electric bus on Service 17 and now Service 119. Assoc Prof Daniel Goh asked about the results of this trial. The initial feedback has been encouraging; while more costly, commuters enjoyed the quieter ride and the bus has been fairly reliable.
LTA intends to expand the trial and will be calling tenders to procure 50 hybrid buses and 60 electric buses this year. We will have three bus services which are fully served by electric buses. However, a problem with pure-electric technology is that it is not fully proven yet for tropical climates, in part because vehicles operating here consume a lot of energy for air-conditioning. The electric car sharing and electric taxi trials that LTA launched recently will also help us better understand the application of this technology in our climate.
The third feature of our future transport system is that it will be more inclusive. It must be designed thoughtfully to serve the needs of vulnerable groups, such as people with disabilities; families, especially those with young children; and an ageing population which is likely to be less mobile.
Our journey towards a fully barrier-free public transport system is almost complete. All MRT stations and bus interchanges are now barrier-free. Ninety-two percent of our public buses are wheelchair-accessible. This will increase to 98% by the end of next year, and 100% by 2020.
I agree, however, with Ms Sylvia Lim that there is always room to improve. We plan to do more, within what is affordable. Ms Sylvia Lim also asked about derailment contingency. Rail staff will assist to evacuate any person who needs help. SCDF will also be called on site to help further. Regular exercises will be conducted. If I recall correctly, late last year, there was one done for staff and SCDF to familiarise themselves in case of such derailment.
One idea that has also been suggested occasionally in this House is to have audio announcements on our buses to help passengers with visual disabilities. LTA will start testing this as an enhancement to the new passenger information display system currently being trialled on Service 106.
LTA plans to collaborate with SG Enable for SG Enable to "adopt" Redhill MRT station, which is the station nearest to the Enabling Village and used by many of the disabled community to travel to the Village. Redhill Station then can be a test-bed for new mobility technologies, ideas and infrastructure designs that can make public transport more accessible for persons with disabilities. So, this move can, hopefully, enable all to co-create solutions with people who are affected, including the Enabling Village community.
The journey from Redhill station to the Enabling Village is a challenge for persons with disabilities, because of the hilly topography and the 400-m distance. So, I have challenged LTA and SG Enable to come up with a solution to improve this last mile and, hopefully, apply such solutioning to future projects.
Another frequent feedback is from families with young children. They want to have public transport made more accessible for them. I hear them and we will try.
I know it is challenging to have to fold up strollers before boarding public buses. On the other hand, LTA and the bus operators have genuine concerns for the safety of children in open strollers. For example, if the bus, for whatever reason, has to brake suddenly or swerve suddenly, we are concerned for the child's safety. But, on balance, we think we can move on this. Starting from 2 April, we will allow families to board public buses with open strollers. We hope this will make travelling with young children on public transport more convenient.
Parents will have to be fully attentive and please take responsibility for the safety of the children and hold on tight to the open strollers at all times. As we work towards a more inclusive public transport system, I urge other commuters to be patient if it takes a bit longer for families with open strollers to board our buses.
To improve pedestrian accessibility, we have been progressively installing lifts at pedestrian overhead bridges over the last three years. We have completed 23 bridges so far and are working on another 24 to be completed by end-2018.
However, lifts are not always the most optimal solution. They are expensive. They cost about $4 million in capital cost per pair of lifts and to maintain them takes about $40,000 a year. Two, if the lifts were to be shut down for maintenance or repair, the crossings will no longer be barrier-free. So, these are some of the set-backs.
I think a better solution is to implement at-grade pedestrian crossings where safety is not an issue and the impact on traffic not excessive. These are more convenient for the elderly and faster to build. With our Green Man Plus programme, the elderly and persons with disabilities can get more crossing time.
Another way in which we are making streets safer for the elderly and the less mobile is through the Silver Zone programme. Currently, we have nine Silver Zones and feedback has been positive. The programme will be expanded to another 41 locations island-wide.
Mr Png Eng Huat asked about the design and public education of Silver Zone features, including courtesy crossings. Before building Silver Zones, LTA works closely with grassroots leaders to ensure that the design and safety features meet the needs of the residents. As part of the public education process, LTA distributes posters and brochures, and also makes use of community events to address residents' concerns face-to-face.
Indeed, pedestrian safety must always be a primary concern for MOT and, in this regard, I agree with Mr Dennis Tan and also with what Mr Png Eng Huat has raised on the importance of safe path-sharing. We are working to improve the safety aspect of our infrastructure design. Where possible, LTA will widen the narrow footpaths with high pedestrian volumes, from the current 1.5 metres or less, to 1.8 metres or more. The location mentioned by Mr Tan is part of our plans to do so within the next two years.
Besides infrastructural improvements, we have introduced new rules to protect pedestrians sharing footpaths with bicycles and PMDs, such as a speed limit of 15 kilometres per hour, as well as the maximum width and weight and top speed of devices. We have also introduced a new code of conduct to guide cyclists on how to share paths safely. But more than infrastructure upgrades and rules and regulations, we need the cooperation of all users in order to have shared spaces, to make them safe. We need to develop a culture of gracious sharing through education efforts, amongst others.
Such education efforts are being expanded to more groups of users and in more languages, in line with what Mr Lim Biow Chuan has suggested. At the last Car-free Sunday, we announced that the new Safe Riding Programme will be expanded to riders of PMDs and power-assisted bicycles. And the programme curriculum can be found on the LTA website, with translations in Mandarin, Malay and Tamil to be available soon. To ensure compliance with the new rules and code of conduct, LTA has stepped up enforcement against reckless cyclists and PMD users.
Since May last year, LTA's team of Active Mobility Enforcement Officers has conducted more than 1,100 operations and issued advisories to more than 1,300 riders for unsafe riding. While the enforcement team is not very large, as Mr Lim has pointed out, they work very hard and intelligently. Enforcement officers are deployed to hotspots, which are identified using data and, importantly, from public feedback.
In addition, the number of volunteers has increased to 700 and they are supporting our enforcement officers well. In addition, officers from the Traffic Police and NParks have also stepped in to help in enforcement.
Going forward, we will be augmenting our enforcement efforts with technology, such as CCTVs and body cameras.
Mdm Chairman, let me conclude. We are investing heavily in upgrading our transport system. But investing in hardware is not sufficient. We depend on those who serve in the transport industry to make our everyday commute better, and I want to thank them for their hard work and dedication.
Our future transport system will be one that is smarter, greener and more inclusive. We aim to give every Singaporean a variety of mobility options to meet different needs at different times, and at different stages of their lives. We can count on having more convenient and reliable journeys. We will enjoy cleaner air and safer shared services and spaces. I look forward to these improvements which will bring about an intelligent and sustainable transport system for all Singaporeans.
Thank you, Mdm Chairman. Singapore acts as a regional air and sea transport hub.
Our forefathers had the foresight to build on our advantageous geographic location and sea trade was our first engine of growth. Spices, rubber and other commodities produced regionally were shipped through Singapore's harbour and sent to other parts of the world. We have, indeed, come a long way since. The concern on the ground is that our status as an air hub and regional port of call may be increasingly threatened by our regional peers.
Thailand has a proposal to construct the Kra Canal, which would allow ships to by-pass the Straits of Malacca and Singapore altogether. Another proposal is by Malaysia to construct a new harbour along the Straits of Malacca that aims to overtake Singapore as the largest port in the region. Recently, the Chinese launched a rail freight service between China and London, thus providing a land route alternative to the traditional sea freight route between Europe and Asia.
Madam, our transport trade hub status is an important pillar of our economy and people are worried that this pillar will be weakened with the regional developments that I have mentioned. As a small country, we must remain open and connected to the world, be it by air or sea. This is in line with the recommendations spelt out by the Committee on the Future Economy.
In fact, it was the first out of seven strategies to take the Singapore economy forward. The Committee recommends that we need to deepen and diversify our international connections and press on with open trade.
Against this backdrop, I would like to ask MOT to share its plans on how Singapore can maintain its position as the regional hub for air and sea trade flows.
Madam, Malaysia's Port of Tanjung Pelapas and Port Klang are of lower cost, compared to our port. In addition, a new Malacca harbour, the Melaka Gateway, is being developed. What will be the impact of these ports on our sea hub status?
How will the Industry Transformation Maps for Air Transport and Sea Transport help Singapore to stay ahead, and when will these ITMs be launched?
China, India and Indonesia are three of the five fastest-growing markets in terms of additional passengers. How are we tapping into the growth of these markets?
Mdm Chairman, air traffic growth in the Asia Pacific region is one of the fastest in the world. A 2015 study by the Centre for Asia Pacific Aviation shows that $226.8 billion will be invested in building new airports and expanding airport facilities in the Asia Pacific. That is 37% of global investment and the highest of any region in the world. From Beijing, Tokyo, Seoul, Hong Kong, Taipei to cities in India and the Middle East, airports are fast expanding to capture a slice of the rising long-haul business travels and intra-regional traffic boosted by low cost carriers.
Obviously, there are many economic spin-offs arising from a city's comprehensive and international connectivity. Just as we have experienced in Singapore, a thriving air hub benefits directly not just the overhaul and maintenance industry, but also brings measurable benefits to other sectors, such as logistics, convention and exhibition, hospitality, financial, healthcare and so on. A vibrant air hub also renders Singapore ideal for regional headquarters operations.
Competition to be the premier air hub is, however, most intense. I would like to ask the Minister how would MOT ensure that Singapore maintains its edge as a vibrant and leading aviation hub? How does MOT work with the industry players to map out a collective vision for our future? Would MOT take on an industry-development role to evolve a comprehensive Industry Transformation Map? Could the Minister highlight the kind of new jobs Singaporeans can expect from being a vibrant air hub of the future?
Changi Airport Terminal 4, slated to open in the latter part of this year, will be our latest aviation investment to be realised.
As part of the Committee on the Future Economy's (CFE) recommendations, aviation falls under one of the sectors identified to have an Industry Transformation Map to up productivity and workers' skills and to promote innovation and adoption of technology.
How is the newest airport terminal a showcase of industry transformation? What are the efforts to develop and implement productivity initiatives for higher efficiencies in airport operations, such as baggage handling and cargo management, at Terminal 4?
How are the roles of workers in Terminal 4 different from Terminals 1, 2 and 3? For example, will there be less reliance on manpower and manual work; and a bigger push for automation, self-serve counters for commuters and even the use of robotics?
Mdm Chairman, please allow me to declare my interest as I am an advisor to the Singapore Port Workers' Union (SPWU). Recently, there have been reports that China is investing S$14 billion in the Malacca Gateway Project, which includes building a deep seaport on an island off Malacca which will be ready as soon as 2019. The development is likely to challenge Singapore's position as the major trans-shipment hub and the new cruise ship jetty will also have an impact on cruise tourism in Singapore. A November 2016 CNBC article stated outright that Malacca is eyeing a slice of Singapore's shipping business, and the new port's selling points are lower costs, less congestion and less stringent port rules.
Similarly, there are also reports that China is financing the cost of Thailand's Kra Canal so that ships coming from the Indian Ocean can go straight to the South China Sea, bypassing the Straits of Malacca and Singapore. An academic paper, published in March 2016 by two researchers for the Institute of Developing Economies, sought to project and forecast the economic impact of the Kra Canal. In most scenarios, Singapore stood to suffer a negative impact.
Could the Minister provide a realistic analysis of these threats and their impact on Singapore's ports? Would it divert trade from Singapore and to what extent? What is MOT's plan to strengthen the position of our ports?
The recent oil spills severely affected native diversity and fish farms in the vicinity. MPA launched investigations into the cause of collision and various agencies conducted beach clean-ups. However, the SOP for clean-ups varies from agency to agency. Would the Ministry consider organising a roundtable to engage stakeholders and agencies, such as MPA, NEA, NParks and AVA, as well as other stakeholders and experts, to come up with a comprehensive oil spill response plan which can apply to future mishaps? Would the Ministry hold responsible parties accountable for the impact and ensure that compensation is made to those affected, for example, the fish farms?
Senior Minister of State Josephine Teo.
Mdm Chair, I thank Members for their interest in the continued success of our air and sea hubs.
The aviation and maritime sectors contribute around 10% of our GDP and provide nearly 250,000 jobs. They are anchored by well-connected ports that link Singapore to the rest of the world. As noted by Minister Khaw Boon Wan, they are both pillars and enablers of our economy.
Our approach has been to plan ahead and yet remain responsive to new developments and market opportunities. We invest heavily to develop infrastructure and human capital so that Singaporeans can take up the good jobs created.
Over the next 10-15 years, many of our infrastructure investments will take shape. With the new Tuas Terminal and Changi Terminal 5, we will have the capacity to comfortably handle twice the volumes of passenger and container traffic today and still have room for growth.
However, we will not need twice as many people. Innovation and the intensive use of technology will transform the way people work and companies do business. Miss Cheng Li Hui and Mr Lee Yi Shyan asked about the two sectors' Industry Transformation Maps (ITMs). CAAS will launch the Air Transport ITM in April this year, while MPA will develop the Sea Transport ITM over the course of the year.
My response to Members' cuts will outline the three key strategies embedded in our ITMs that will strengthen the competitiveness of our aviation and maritime hubs. They are: smarter ports, vibrant enterprise ecosystems and systematic manpower development. I should, of course, add that when we say manpower development, we include woman power also.
Let us start with smarter ports. I note Mr Ang Wei Neng, Mr Zaqy Mohamad, Mr Yee Chia Hsing and Miss Cheng's concerns about the regional port developments. Given that it will take some time for the Malacca Gateway project to be fleshed out and the uncertainty surrounding the Kra Canal project, it is still too early to determine their impact on us.
But international competition has never been far away from our aviation and maritime sectors. Our starting point is that others can and will up their game. Whatever the analysis, the only response that will serve our long-term interests is to keep improving to stay ahead. Therefore, it is not enough to build bigger ports. We will need smarter ports.
We have two strong industry champions − PSA in maritime and Changi Airport Group (CAG) in aviation. So, what kind of smarter ports are they developing?
Put simply, our smarter ports will apply advanced technologies to achieve scale that is matched by superior connectivity, efficiency and reliability. You need scale but what you really want is to deliver superior connectivity, efficiency and reliability. That is what the customers want.
In our seaport, it will not simply be about buying automated guided vehicles or installing automated cranes. Rather, it will be about advanced planning and optimisation of equipment deployment to allow the seamless transfer of containers from vessel to wharf, then to truck, then to yard and then vice versa.
It may sound easy but is actually very difficult to execute. As a transhipment hub that is connected to over 600 other ports − if you take Shanghai, they are connected to under 300 ports; we are connected to over 600 ports − container movements here are much more complex than ports that mostly handle origin-destination cargo. In other words, cargo that is either coming out from your own port city or going into your port city. Here we do transhipment, where we do connections for shippers, and the vessel calls involve mind-boggling permutations of synchronised unloading and reloading. And when 30 million containers are moved each year, even a small margin of error is highly problematic. And imagine, at Tuas, we are going to get to double that volume − 65 million.
The complexity of container movements will increase as we enhance the connectivity of our port and attract higher volumes. That is why PSA is studying the use of data analytics that will generate insights about the flow of vessels and containers, and test-bedding automation solutions that will optimise processes and the use of equipment.
What we learn at Pasir Panjang will be used in the planning of Tuas Terminal which, when fully developed, will have a capacity bigger than Tanjong Pagar, Keppel, Brani and Pasir Panjang Terminals combined.
Likewise, the bigger challenge for us at Changi is Terminal 5 which, Members may recall, will have an eventual capacity bigger than Terminals 1, 2 and 3 combined. This will enable us to host more flight connections and tap the growth of civil aviation in the Asia Pacific region.
Miss Cheng Li Hui asked for an update on developments at Changi. T4 will begin operations in the second half of this year. There is a lot of testing going on. Planning for T5 is on track, and CAG will soon begin to identify the architects to take on the challenge of designing it.
T4, which is smaller than the existing terminals, is, in some ways, a testbed for T5. On opening day, passengers will have a full suite of self-service and automated options for check-in, bag drop, immigration clearance and boarding. Airports elsewhere may have implemented some of these components, but not the entire suite as far as we know.
Beyond what passengers see, at the back-end, T4 will have automated baggage screening, sorting and storage. Smart cleaning initiatives, centralised support functions for retail and F&B will further reduce the manpower needed. Mr Ang Hin Kee will be pleased to know that, at steady state, we expect T4 to realise up to 10% in manpower savings due to automation. The experiments at T4 will also shape what is possible at T5 in future. And I think that is where the bigger savings have to be.
Our existing terminals, too, are raising their performance and productivity. CAG and CAAS are bringing airport stakeholders onto a common collaborative decision-making platform to share operational data. For instance, airlines and ground handling agents now can view real-time flight movements on the airfield. This helps them efficiently deploy resources to quickly rectify problems. Since its implementation last year, one benefit has been the reduction of aircraft taxiing time by 90 seconds during peak hours. We are talking about each aircraft. This may seem negligible − just 90 seconds − but we must remember that we have about 1,000 aircraft movements in our airport every day. So, the cumulative impact on runway productivity and, of course, for the airlines, fuel cost savings are really not trivial, not at all.
Why does it matter that PSA and CAG develop smarter ports? Ultimately, their customers, the shipping lines and airlines − and the end users − the shippers and passengers − they all vote with their feet. To keep the customers and end-users coming back, scale must be matched by superior connectivity, efficiency and reliability. This is what will help Singapore to build a sustainable edge, which is exactly Mr Lee Yi Shyan's question.
For Singapore to extract the full value of our smarter ports, we will also need vibrant enterprise ecosystems and systematic manpower development.
Let us talk about vibrant enterprise ecosystems. With well-connected ports as anchors, our maritime and aviation hubs have grown far beyond PSA and CAG. Today, Singapore is ranked as the world's top international maritime centre, with a diverse maritime services cluster comprising over 5,000 establishments. In aviation, Singapore is home to world-class air freight, aerospace, and maintenance, repair and overhaul companies.
When we ask companies why they choose to be in Singapore in spite of our higher costs, they tell us that it is the value of being plugged in into a vibrant network, a thriving ecosystem, if you will.
Through this network, they can be closer to their customers and gain quick access to market intelligence which helps them make timely decisions to respond to market shifts: pricing, what to do with the commercial arrangements − all of these require intelligence. They can also find good partners more easily to share risks in business ventures or jointly develop new projects.
A vibrant enterprise ecosystem is a natural magnet that attracts and retains more businesses to weave a denser network. That makes it harder to replicate. This is why we actively seek to anchor key players across many types of aviation and maritime services in Singapore − to stay relevant and strengthen our hub competitiveness.
Our international maritime centre continues to grow in breadth and depth. New companies, like LH Shipping from Switzerland and the West of England Protection & Indemnity Insurance Club, set up shop in Singapore last year, while those already here, such as K Line and Marubeni, expanded their operations.
Through new joint ventures with PSA, major shipping lines, like CMA-CGM and China COSCO Shipping, are shifting more of their activities to Singapore. It is helpful that both CMA-CGM and China COSCO are also leaders in the ever-shifting landscape of alliance partnerships among the container lines.
When the companies open up new lines of businesses, it enables our aviation and maritime hubs to capture emerging opportunities and stay relevant. Take, for example, the movement of time- and temperature-sensitive pharmaceutical products. Singapore will be the first in Asia to build up a cluster of businesses certified by the International Air Transport Association in pharmaceutical handling. With this, companies like Global Airfreight International, SATS and SIA Cargo will be better placed to benefit from the growth in pharmaceutical trade as the region becomes more affluent. Similarly, the recent acquisition of the Baltic Exchange by SGX will allow Singapore to take active part in the fast-evolving landscape of maritime risk management.
But perhaps the biggest value of vibrant enterprise ecosystems is that they help Singapore's drive for innovation.
This year, we will see the results of our first two Aviation Challenges, one of which focuses on automating baggage handling for narrow-body aircraft. As Members know, the process today is largely automated − screening, sorting, storage − but still has some parts that require manual handling. Behind the scenes, bags have to be transferred from a baggage carousel to a baggage trolley which is towed to the aircraft. They are then unloaded and moved into the aircraft belly hold, which, for a narrow-body aircraft, is 11 metres deep but just one metre high. We ought to salute our baggage handlers who do this back-breaking work. But we should not leave this process unchanged.
We searched all over the world for solutions, but found none that would fully meet our needs. So, we resolved to develop our own solution. As we speak, five teams from industry and academia are developing prototypes to automate this laborious process.
Platforms like Aviation Challenges are attempts by CAAS to bring together the best minds to develop innovative solutions for our airport. But these attempts will not succeed unless we have a vibrant enterprise ecosystem to draw on. The first two challenges have drawn on the capabilities of over 100 engineers and researchers from several entities.
We are involving local companies, such as Cyclect Electrical Engineering and ST Dynamics, and I have asked CAAS and CAG to bring more on board. It is not just the airport that will gain from the innovations. Businesses, too, can capture value through deepening their capabilities and spinning off other innovative products and services to support their internationalisation.
Start-ups are also getting into the action.
Take, for example, Ascenz Solutions which started in 2008 as a two-person show. With co-funding from MPA's Maritime Innovation and Technology Fund, Ascenz created a system called Shipulse that collates data from sensors installed on board ships and transmits it back to shore. Shipulse allows shipowners to remotely analyse a ship's speed and fuel efficiency in real-time and then instruct the crew to adjust the ship's route or carry out energy efficiency measures to save fuel and improve vessel performance. Shipulse has been installed on over 400 vessels and thousands more could use it. Having expanded to a team of more than 30 with operations in nine countries, Ascenz is now eyeing the European market.
A likely shift towards digitalisation in the aviation and maritime sectors can give more start-ups like Ascenz their big breaks. You know, this is serious stuff, when even an established giant like AP Moller-Maersk decides to nominate as its new Chairman someone with a track record as "Mr Digitalisation". This is going to be a harbinger of major industry transformation.
Interestingly, the maritime sector is not usually thought of as a beacon of innovation. But I am bullish about the prospects for Singapore because the market here for innovative products and services is significant and quickly evolving. As their innovations gain market acceptance in Singapore, start-ups will be in a stronger position to internationalise. PSA has already taken the lead by launching PSA unboXed last year. And what PSA unboXed does is to invite start-ups and potential partners to propose technology solutions for the port, in which PSA unboXed may then decide to take an equity stake and try to make a success of them. I have asked MPA to work with SPRING to see how best to expose more local start-ups to opportunities in maritime businesses.
To give a further boost to innovation, MPA will set up the "MPA Living Lab" at our port by the end of this year. The MPA Living Lab will provide the essential "live" operating conditions that will facilitate the test-bedding of potential innovations. Because this is critical − you can have a great idea, but if you are not able to prove the concept in "live" operating conditions, that would be a gap in the innovation journey. Areas being explored include autonomous vessels, multi-purpose drones and next-generation vessel traffic management systems. We believe this could be a game-changer for Singapore, bringing together technology developers and industry players to anchor their innovation activities in Singapore and help our sea hub stay ahead.
Let me turn now to manpower development. Smarter ports and more vibrant enterprise ecosystems bring many more good jobs. All in all, we expect some 13,000 new jobs in the air and sea transport sectors by 2025.
The jobs created over the next decade will be markedly different from today. The increasing deployment of smart technologies means that new jobs will be more knowledge-intensive. At the port, more data scientists and operations research analysts will be needed to optimise shipping routes, port operations and vessel traffic management. At the airport, we will require data scientists skilled in air traffic operations research and analysis, to optimise our runway and airspace capacities through modelling and simulation.
Technology will also transform existing jobs into higher skill, higher value-added jobs. For instance, port equipment engineers today are responsible for maintaining and repairing the port's equipment and facilities. With the introduction of AGVs, they will also plan and design operations to segregate manned and unmanned activities and to synchronise the AGVs' operations with other automated equipment. We are also investing in baggage and cargo robotics systems at the airport that will leave the more repetitive tasks of lifting and loading to the machines, freeing up our workers to oversee other parts of the operations.
We are committed to helping Singaporeans make the most of the exciting and rewarding career opportunities, by working closely with our tripartite partners.
For fresh school-leavers, CAAS and MPA are working with the Institutes of Higher Learning to develop new industry-specific training schemes. Two SkillsFuture Earn and Learn Programmes for passenger service agents and ground operations specialists at the airport were introduced in October 2016. The next intake for these two programmes is scheduled for April this year. Three other Earn and Learn Programmes were launched last year for port operations officers, deck officers and marine engineers.
We are also helping mid-career Singaporeans switch to maritime and aviation careers. To prepare them for roles in flight operations, baggage, catering, maintenance and cargo, Professional Conversion Programmes (PCPs) will provide structured training and career progression, with corresponding salary increases. PCPs for more occupations will be launched in due course.
For Singaporeans already in the aviation and maritime sectors, we will help them progress in their careers. MPA will enhance the Maritime Cluster Fund for Manpower Development to support a wider range of training. This will enable Singaporeans to be trained in new and increasingly important areas, such as data analytics and new maritime technologies. We expect this to benefit some 5,000 locals annually.
To help Singaporeans better plan their careers, we will develop Skills Frameworks that help them identify those which are relevant and necessary for advancement. The Skills Framework for the Sea Transport sector, which was developed in consultation with the industry and unions, will be launched in April. A Skills Framework will also be developed for the Air Transport sector. But let me make clear that we cannot make this work without the companies taking an active interest and the workers being willing to adapt. So, tripartite involvement and commitment will be key.
Mdm Chairman, even as we strengthen the competitiveness of our aviation and maritime hubs, we should remember that our fortunes are closely tied to those of the region. We will, therefore, continue to promote a region that stays open and connected.
In aviation, last year, all 10 ASEAN countries ratified all the ASEAN open skies agreements. ASEAN has also started negotiations on an EU-ASEAN Comprehensive Air Transport Agreement which would be the first bloc-to-bloc air services agreement in the world.
Open sea lines of communications, too, are critical to trade. Today, almost half of the world's seaborne trade by tonnage passes through the Straits of Malacca and Singapore, and we must ensure that these waters remain safe and secure for ships. Through MPA's Safety@Sea campaign, the number of marine incidents has been kept low. There was only one major shipping incident in our waters in 2016, no easy feat, considering that Singapore is one of the world's busiest ports with over 130,000 vessel calls every year.
We also look to more environmentally-friendly and sustainable growth.
For example, CAAS has worked with neighbouring airports to develop an Air Traffic Flow Management System. It sounds a bit abstract − Air Traffic Flow Management System. But what it really means is that you want to regulate the flow of aircraft even before they take off from the departure airports. Why? Because we want to have more certainty in managing, at the receiving airports, the incoming flights.
To passengers, what this would mean is that you could spend less time circling in the air before landing because the airport is congested. But to airlines, the fuel cost savings is very much appreciated. A 2016 operational trial showed that, on average, each aircraft saved about 300 kilogrammes of fuel burn. With more than 150,000 landings at Changi each year, the cumulative effect on the environment is quite significant.
On the maritime side, MPA already has the Maritime Singapore Green Initiative with five programmes − the Green Ship, Green Port, Green Technology, Green Awareness and Green Energy Programmes.
To promote the adoption of cleaner marine fuels, MPA will soon pilot LNG bunkering operations in Singapore. MPA has been working with industry and like-minded ports around the world to harmonise LNG bunkering processes and to grow a global network of LNG-ready ports. It is no use if we are LNG-ready but other ports are not. The ships cannot move this way. These efforts have seen good progress, with authorities in Japan, Korea and Norway recently coming on board.
Mr Louis Ng asked about our response to oil spills. We are highly vigilant towards environmental incidents and have a well-established, multi-agency response plan which is regularly exercised.
During the oil spill off Pasir Gudang in January, agencies responded swiftly and effectively. Within hours, MPA, which is the coordinator for the inter-agency response, had already modelled the spilled oil's trajectory and worked with the agencies to take measures, such as laying out oil-absorbent booms, to prevent its spread. As a result, traffic in the East Johor Straits and Singapore's port operations were not affected. Affected beaches were quickly cleaned up and key biodiversity areas at Pulau Ubin, Coney Island and Pasir Ris were protected. They were not harmed. We are now working with the insurers of the vessels responsible for the incident to compensate the affected parties, including the fish farms. The Bunker Convention puts the responsibility on the shipowners.
Mdm Chairman, to conclude, our aviation and maritime sectors not only provide critical connectivity for our economy, but are also growth engines that create exciting and rewarding job opportunities for Singaporeans. We will strive to strengthen the competitiveness of our air and sea hubs through Smarter Ports, more Vibrant Enterprise Ecosystems and Systematic Manpower Development.
Through initiatives, like the Aviation Challenges and MPA Living Lab, we will help the businesses in these sectors help themselves by deepening their capabilities and developing innovative products and services. Through tripartite cooperation and enhanced funding support, we will help Singaporeans acquire and master the deep skills that are needed to stay relevant.
Our officers have been working quietly but tirelessly, and I am mighty proud of them. Whether in 10, 20 or 50 years, we still want to be leading aviation and maritime hubs. Our businesses and workers will have every opportunity to be at the frontier of the industry transformations and ride this wave of growth.
We have a bit of time for clarification. Mr Ang Hin Kee.
Madam, I have a question for Minister Ng Chee Meng. He mentioned earlier that he found that the calls made to taxi operators being rather ineffective and already overtaken by disruption. Therefore, I would like to ask if he will work with LTA to remove Call Catering from the Quality of Standard yardstick measurement for taxi operators.
I thank the Member for that but I need to clarify. I did not say anything about calls being ineffective.
Earlier, the Minister mentioned that people calling up taxi operators for the person over the other side of the phone to book a taxi, that being relatively overtaken by third-party apps and the likes of other bookings. So, if that is already obsolete, will, therefore, the Call Catering Quality of Standard yardstick be removed from the taxi operators' standards?
Thank you for that clarification. I understand it better now. We will look into all these as the industry evolves. If the phone calling becomes completely displaced by apps, then maybe we will do away with it. But there are still proportions of commuters that will be still using the phone bookings.
I have three clarifications. One to Minister Ng for replying to my cut on dynamic pricing. I am all for dynamic pricing and companies innovating with new models. But my question was how LTA, as a regulator, will ensure that in shifting to demand pricing, you do not have a deja vu of taxi availability being an issue, because that could shift behaviour in terms of how taxis make themselves available.
The second question is I thank the Minister also for demystifying the slow bus-driving for some services like 983 where you travel from between Choa Chu Kang and Bukit Panjang. Residents have complained that buses sometimes travel at 30km/h or 40km/h on an empty road or stop at bus stops where there is no one.
Are these service levels determined by LTA or the service provider? Despite repeated feedback, does LTA review the service level based on commuters' experience?
Finally, on noise barriers, I am heartened that Minister Khaw Boon Wan spoke that LTA and NEA are aligned. May I just check what the qualifying decibel level is before noise barriers are erected? I understand these projects compete for resources within the LTA budget but if you could give residents and citizens clarity on how they can qualify and when they qualify, I think they are more inclined to —
Mr Zaqy, just the clarification, please, no speeches.
Thank you.
Madam, I thank the Member for the clarification. It is early days yet. The Public Transport Council and the taxi companies are still in discussion. We will watch the situation carefully to monitor taxi availability whenever the programme is instituted. So, as we let it evolve, as always, we will monitor, review and see what is to be done.
Yes, please, Minister Khaw.
To answer the Member Mr Zaqy's query, and relying on memory, I think it is 67 decibels. But I am relying on memory; I am 65 years old.
I had two other clarifications.
Two other clarifications? So, if you keep your clarifications short, the front bench will remember them better. Please, Minister.
Can the Member repeat his questions?
The slow bus-driving. Is the service level determined by LTA or the service provider? Why are these buses driving slowly? Could they be adjusted based on commuters' experience?
It is always a collective effort that we want to ensure the best service to commuters. When we involve this technology, it is still dependent on real-time traffic conditions. You can imagine in peak hours, I have got three buses that start from the depot. From the very start, the first bus collects more passengers, it actually slows down along the whole route; whereas the second bus coming through, where there are less passengers, let us say a headway of five, 10 minutes, the second bus actually catches up. You can imagine if we have more than three buses and you have a peak-hour period of two hours of this bunching and relaxing. So, the real-time data is needed for them to adjust and this will be a real-time operator responsibility. But LTA will see what we can do to facilitate this use of technology, as I have said.
Thank you, Madam. I have a clarification for Minister Ng. Earlier, he spoke about the steps to make the public transport system more inclusive for disabled passengers as well as families. And he mentioned a new scheme where families would be allowed to bring children in strollers on board, rather than to have to fold up their strollers.
So, I would like to clarify whether, actually, he would agree that this ties in nicely with my cut on wheelchair space because you would need more space on the buses now for these various wheelchairs, prams and so on, and that the Government will bear this in mind when it looks at the design of buses.
I thank the Member for that clarification. The short answer is yes because they are similar. In the new standards that we have imposed on buying new buses, there will be two spaces available either for wheelchairs or strollers. In the current wheelchair-accessible buses that we have, more than 5,000 of them, there is at least one available space for wheelchair or stroller.
Minister Ng, you said that electric buses are costlier than regular buses. I would like to clarify three things. First, is this in terms of operational cost or capital cost? Second, how much more costly? Third, whether this will eventually factor into fare increases, especially with the revision of the fare adjustment mechanism which is due this year?
I thank the Member for the clarification. I do not have the numbers offhand but in terms of capital expenditure (capex) and operational expenditure (opex), yes, they are more expensive. In a trial stage, right now, we have not raised any fares; they are still consistent with whatever the fares are for the rest of the buses.
As Minister Khaw mentioned just now, the Government is already subsidising $4 billion over the next four to five years on buses. So, realistically, whether we go green or not, we will have to be realistic about fare prices in the long term.
Thank you, Madam. I just want to follow up on the clarification by Mr Zaqy Mohamad. I suppose he was referring to the Bus Service Reliability Framework which is really a good intention by LTA to keep the bus to the timings and to arrive punctually and so on. But what happens on the ground, sometimes, is that the bus may arrive too early and then, therefore, they stop at the bus stop for a while or they slow down the speed of the travelling and so on. It is causing disservice to the commuters instead.
I would like to ask the Minister whether for some buses like those along trunk routes where it is a loop service, maybe the whole loop will take about three hours, should there not be more leeway given to the bus operator, so that they do not have to do such things as to slow down and then, overall, the commuter will have a bad experience because of that.
I thank the Member for the clarification. Where the bus may have to slow down, it may inconvenience some. But in terms of the overall system of buses plying the whole three-hour route, the overall service to more passengers is better. Indeed, some commuters may notice that this bus is slowing down but it gives proper spacing between buses. In a long route, it prevents bunching of buses that if you miss the two buses, you have to wait a long, long time for the third bus to come.
I thank Senior Minister of State Josephine Teo for her explanation. Good to know that we are staying competitive by offering smarter technology solutions to our stakeholders. However, I also know that some of our air and sea agencies have a consulting arm that offer their technology know-how to other countries. May I suggest that we hold on to this technology as our strategic advantage and we do not offer it freely to an airport or seaport which may threaten our hub status?
Madam, I think Mr Yee might be referring to the case of Changi Airports International (CAI). CAI does not, in particular, hold intellectual property rights with regards to, say, technology. What they do have is great operational insights. When it was set up, the idea was that, as part of Singapore enterprises internationalising, there was also benefit in having CAI offer their expertise to airports elsewhere that would like to tap into this expertise. But I take the Member's point; we want to keep some of the crown jewels. The entities that are involved in this are equally mindful about it.
Thank you, Madam. Madam, I have one clarification for Minister Khaw. He earlier mentioned that the implementation of the tiered ARF is to further suit the implementation of tiered ARF for cars in 2013, basically, to have some form of consistency. My clarification is, similarly, on the basis of consistency, would the Minister consider having PARF rebate for motorcycles?
The reason for extending to motorbikes is not so much because of consistency but because we wanted this principle of being more progressive in our taxation system.
As for PARF, PARF's main purpose is to incentivise deregistration. In other words, you get rid of your old vehicles, whether it is cars or motorbikes. But because the bulk of the motorbikes, even with the tiered ARF, we will still be paying very low ARF, which is about 15% of Open Market Value (MOV). Without PARF, the incentives to deregister would be greater.
I seek a clarification from Senior Minister of State Mrs Josephine Teo. I thank her for sharing with us the Government's plans to deal with the competition for sea hub. Can I just ask the Senior Minister of State what is the Government's view on the likely competition that may be posed by the recent opening of the China-Britain freight train, at least, in the future years?
Mdm Chairman, the Member asked a very interesting question. The China-UK freight train has started off in Yiwu and it has traversed across China, Kazakhstan, Russia, Belarus, Poland, Germany, Belgium, France and then to the UK, to London. Twelve thousand kilometres. It took them 18 days, which is about half of what it would take if the same set of containers were to have to travel by ship.
So, there is obviously some value in that because there may be some types of cargo which will be too expensive to transport by air. But, if you transport it by sea, then it takes twice as long. So, items could include things like prototypes that you want to deliver to the market very quickly. But this type of transportation − rail transportation − is constrained by the scale. This particular voyage that was undertaken, if I remember correctly, involved 40-foot containers − bigger boxes − but there were just 344 of them. If you compare that to what one of the mega-vessels would take these days, that is, closer to 18,000 to 19,000 TEUs, the scale that can be transported is completely different.
From that perspective, as a transhipment hub that serves quite a lot of the Asia-Europe traffic, for the moment it does not appear that the China-UK freight link is going to be a game-changer. But the landscape is always evolving and we will have to pay close attention.
One other area that really deserves close attention is the Arctic Circle. With the melting of the icecaps, I think Mr Dennis Tan would know that the northern sea route offers something compelling, too. It is just that, in the foreseeable future, it is not likely. In the foreseeable future, it is not likely that even though you are able to sail through, you can cut up to 60% of the voyage time. It would be very difficult to schedule services.
We watch all of these developments very closely, including the Kra Canal, which has been talked about for decades actually. The short answer to your question is that we monitor all of these. We do analyse what their impact could be. But, as I have said in my earlier speech, we cannot stop others from upping their game. We just have to do everything within our power to stay ahead.
Madam, about the point made by the Senior of State Mrs Josephine Teo on the seaport, I also want to reflect the plight and concerns of the port workers. It is exciting to learn that the Tuas Terminal would be a state-of-the-art smart port. I hope the Senior Minister of State can elaborate on the transport infrastructure linking to the Tuas Port. Otherwise, the new port can be large but few workers would like to work there.
Mr Ang is not just a good Member of Parliament, he is also a very good adviser to the union. Indeed, the union has been in discussion with us and has highlighted the concerns.
There are about 8,000 to 9,000 local port workers who, from the year 2021, will start to have to move as the Tuas Terminal gets its first few berths operational. We are very keen to make sure that the land transport options will be good ones. We are in discussions with other agencies and also with PSA which remains the biggest employer there. So, please be assured that this is very much on our minds.
Madam, just a clarification for the Senior Minister of State. I appreciate that the agencies are working together but can we have a roundtable so that the agencies can work together with the other stakeholders and experts − the NGOs and the scientific community − for oil spills?
Mr Ng, roundtable or not, we will meet with them. I have shared earlier MPA's inter-agency response. Some of the inputs that NGOs have given us include the use of non-toxic oil dispersants and also in terms of where we will prioritise the containment activities. What we have done is to say we will protect the areas that have got greater bio-diversity value. So, I think the conversation continues.
Mr Sitoh Yih Pin, do you wish to withdraw your amendment?
Yes, Madam. I would like to thank MOT staff for their hard work and Members for their contributions. Further, on behalf of Members, I extend our gratitude and appreciation to Mr Khaw Boon Wan, Second Minister Ng Chee Meng and Senior Minister of State Mrs Josephine Teo for answering our questions and sharing with us MOT's plans for the future. On that note, Madam, I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
The sum of $1,541,987,600 for Head W ordered to stand part of the Main Estimates.
The sum of $8,680,257,000 for Head W ordered to stand part of the Development Estimates.
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