Debated in Parliament on 16 Aug 2016.
Order for Second Reading read.
Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time."
Let me, first, explain the context behind this Bill. In January this year, I announced that we will restructure the Infocomm Development Authority of Singapore (IDA) and the Media Development Authority of Singapore (MDA) into two new organisations ‒ the Info-communications Media Development Authority, or IMDA for short, and the Government Technology Agency, or GovTech for short.
Both IDA and MDA have contributed significantly to the development of Singapore's infocomm and media sectors since their formation in 1999 and 2003 respectively.
As the infocomm regulator and developer, IDA has contributed significantly to Singapore's position as a dynamic, competitive and innovative global infocomm capital. IDA fully liberalised Singapore's telecommunications market in 2000, two years ahead of schedule, and ensured that we are the only country in the world that has nationwide fibre in our homes and businesses. That is why Singapore is consistently ranked among the world's top in telecommunications infrastructure, thus giving our consumers and businesses access to competitively priced, high-speed connections. IDA has also fostered a vibrant infocomm startup community and a growing pool of successful infocomm small and medium enterprises (SMEs) and enterprises that have flown the Singapore flag high around the world.
MDA has also been instrumental in growing Singapore's media sector through the implementation of the Media21 Master Plan and the Singapore Media Fusion Plan. It has actively promoted the creation of high-quality local content for public service broadcasting, and nurtured generations of filmmakers, directors, games developers and writers with its scholarships. In addition, MDA has put in place co-regulation and content classification frameworks to uphold our community norms, while helping Singaporeans make more informed decisions about the media content they wish to consume.
Sir, the pace of technological change has significantly increased in recent years. More and more disruptive technologies and new business models that are enabled by infocomm media technologies have sprouted up. Rapid convergence between Singapore's infocomm and media sectors has been seen in recent years, blurring the traditional divide between these previously distinct industries.
Our traditional media, telecommunications companies (telcos) and technology (tech) companies have expanded into content creation and new media businesses and vice versa. For example, our media broadcasters have developed online platforms that can stream content around the world and are partnering overseas players to bring in fresh content for our viewers. Several, like StarHub, are even developing their own content, through the Public Service Broadcast (PSB) Contestable Funds Scheme. With convergence, the delivery of content and services is no longer restricted to traditional platforms. We can see this in the mobile market where there are mobile handsets capable of receiving video and television broadcast streams. Thus, content developers now have the opportunity to sell their content to a larger spectrum of service providers.
My Ministry has been closely monitoring these trends. We have begun to bring IDA and MDA's industry plans closer together through the development of Infocomm Media 2025, which was launched last year. The process has confirmed our view that the time is right to set up a converged infocomm media developer and regulator.
IMDA will build on the successes of IDA and MDA and help develop Singapore as a future-ready infocomm media hub. Consumers will also be a key focus for IMDA, ensuring that they continue enjoying a variety of infocomm media services at good service standards and competitive prices. I have reminded the staff of IMDA that, ultimately, what they do to harness the power of infocomm media must have a positive impact on the lives of Singaporeans.
The Bill before this House will legally establish IMDA. After the creation of IMDA, I expect to put forward more specific legislative proposals to bring about a converged perspective on consumer protection, infocomm media regulations and industry development efforts.
On the industry development front, IMDA will help Singapore harness the opportunities in the converged infocomm media landscape by equipping Singaporeans with the skills to thrive in a digital future and driving our economy through promoting digital connectivity and creativity.
The Infocomm Media 2025 Plan which I launched last year sets out broad directions to guide the development of the infocomm media sector. Having a single agency implement the plan will provide greater clarity to industry partners and deliver more impactful outcomes.
For example, one of IMDA's priorities will be to build a future-ready Singaporean Core for infocomm media. As a converged organisation, IMDA will be better poised to address the talent needs, and develop professional skills for the infocomm media sector. It will do this by building interest and cultivating talents from young and introducing our students and young adults to the exciting world of infocomm media. IMDA will also build on the initiatives and programmes that IDA and MDA currently have for students and professionals, to help them build and strengthen the core infocomm media skills that they need to seize opportunities and compete both locally and internationally.
IMDA will also enhance support for our infocomm media companies. For example, IMDA will have three innovation facilities under its wing, inherited from IDA and MDA. These are the IDA Labs, the Games Solution Centre, and Creators' Space. The new IMDA team will be studying how best to bring these facilities together as an integrated network that will better support the ideas and aspirations of companies in the converged infocomm media space, such as tech and online content creators. In particular, SMEs and startups will be able to leverage these facilities for prototyping and content creation, and bring their innovative products, services and content to fruition. This opens up interesting opportunities for collaboration and learning.
For example, a film animation company may be interested to venture into product merchandising. It can use the IDA Labs facilities to learn more about coding, and tinker around with robotics to prototype "toys" that can be launched in conjunction with their films. Conversely, an IDA Labs tech startup can leverage the Creators' Space to work with a community of online content creators to develop a compelling narrative for a crowd-funding campaign.
IMDA will also encourage greater sectoral innovation and transformation using infocomm media technologies in order to benefit Singaporeans and create greater economic and social value for our companies. For example, IDA has introduced the "Internet of Things" to some schools to enable authentic, inquiry-based learning. Students can use the sensors to capture data and upload them onto an online platform for data exchange and sharing. IMDA will also work with industries to explore ways to bring virtual reality and augmented reality technologies into the classrooms.
Sir, while the formation of IMDA is prompted by the rapid convergence of the infocomm and media sectors, there are areas which IMDA will oversee where convergence may not feature so prominently, such as our postal services, and the registration and coordination of satellite orbital slots. These remain important areas of work. For example, as the Postal Authority, IMDA will continue to ensure the smooth operation of postal services in Singapore and that it continues to innovate to meet changing consumer needs.
Regulatory certainty and clarity are highly critical in a converging sector. As we move to a connected and digital world, we need to grow trust between businesses and consumers. Regulatory frameworks must, hence, be sufficiently robust and holistic to ensure that our policy objectives are met in this new converged environment and avoid having regulatory lacunas with regards to convergent services. At the same time, we need to enable fair competition and further the interests of businesses and consumers and, most importantly, Singapore. This is important as we move to a more connected and digital world.
Today, IDA's regulatory powers for the telecommunications and postal sector are spelt out in the subject-matter legislations, namely, the Telecommunications Act and the Postal Services Act. However, MDA's regulatory powers to manage market competition for the media sector are contained in the MDA Act. With the formation of IMDA, subject-specific legislation for the telecommunications, media and postal sectors will continue and will be implemented by IMDA. For expediency, the market competition provisions in the MDA Act will be carried forward into Part 7 of the IMDA Bill as an interim measure. The longer-term plan is for IMDA to develop a holistic approach to regulation and competition management for the infocomm media sector through streamlined rules and regulations. This will make it easier for businesses to grow.
On the content regulation front, MDA currently enforces sector-specific Acts such as the Broadcasting Act and Films Act. Moving forward, IMDA will take over these subject-specific legislation and continue to ensure that content guidelines reflect community standards. With convergence, the same content can be carried over traditional as well as non-traditional media platforms. It is, hence, important for IMDA, as a converged regulator, to keep pace with technological developments that change the way media content is delivered and consumed and ensure that such content is consistent with our community norms and values.
IMDA will also oversee the personal data protection regulation. Today, the Personal Data Protection Act, or PDPA for short is enforced by the Personal Data Protection Commission (PDPC). When IMDA is formed, the Commission will be a unit under IMDA to enforce data protection regulation in the private sector. The synergies between infocomm media and personal data protection have led to our decision to site the Commission within IMDA. For example, companies often set up websites that collect, process and provide access to personal data of their customers. Many of the solutions to enhance personal data protection, hence, leverage on infocomm media technologies. The Commission, under IMDA, will continue to ensure that all private sector companies comply with the PDPA. As companies make more use of data to improve their offerings, IMDA will also ensure that our personal data regulations and policies promote public trust and confidence in our companies.
As a converged regulator, IMDA will now have the opportunity to improve consumer protection policies across the infocomm media sector. Moving forward, IMDA will study how such consumer protection policies can be further developed.
Sir, having explained the rationale for the Bill and the roles that IMDA will play, I will now describe the main elements of the Bill. The Bill comprises 11 Parts.
Parts 1 and 2 of the Bill provide for the key concepts used in the Bill and to establish the IMDA. Part 2 also sets out IMDA's functions and powers, which are drawn from the existing provisions in the IDA and MDA Acts. These cover industry development and regulatory functions that IDA and MDA currently play in the infocomm and media sectors. IMDA will not have any additional functions and powers beyond what IDA and MDA currently have. Any difference in the exact wordings of the clauses is to simplify the language. The substance and meaning of the provisions remain unchanged. Parts 3 to 6 are on matters regarding IMDA's Board members, their decision-making procedures, IMDA's own employees and its financial provisions.
Sir, as I mentioned earlier, Part 7 of the Bill empowers IMDA to regulate competition matters in the media sector. These provisions were ported over from the MDA Act and are essential to give IMDA the legislative powers to intervene in competition-related matters that have an impact on the industry and consumers, including mergers and consolidations that involve media companies, and potential abuse of market powers by dominant media companies.
Part 8 of the Bill sets out the administration and enforcement powers of IMDA. These apply to offences under the IMDA Bill and do not replace the enforcement powers that are in IMDA's subject-specific legislation, like the Telecommunications Act and the Broadcasting Act.
Parts 9 and 10 contain provisions that transfer the relevant undertakings and personnel to IMDA, to repeal the IDA and MDA Acts and provide for saving and transitional arrangements.
Finally, Part 11 of the Bill makes consequential and related amendments to other Acts, including to incorporate PDPC into IMDA, as I earlier mentioned.
Sir, as a single infocomm media authority, IMDA will have many opportunities before it to reshape and strategise industry development so as to bring greater value. I am confident that IMDA will build on the successes of IDA and MDA to create a vibrant and dynamic infocomm-media hub and discover new economic opportunities for Singapore and our people. Sir, I beg to move.
*Question proposed. (proc text)]
Mr Zaqy Mohamad.
Thank you, Deputy Speaker, for allowing me to speak on this Bill which changes the way the Government approaches infocomm and media.
The restructuring of IDA and MDA is both relevant and timely and will support the development of the Infocomm Media 2025 plan. Both infocomm and media around the world are converging and this presents both opportunities and challenges. From both the Government and corporate point of view, the restructuring also made sense, so as to be able to better deal with the challenges and the huge potential that the new digital world offers.
Before this, in Singapore, the lines between pay television and telecoms operators had become blurred as regulatory and competition issues had straddled both IDA and MDA. The introduction of over-the-top services, such as Netflix, further illustrates the need for a converged regulator and industry development agency. Hence, businesses that offered the bundled services of both telecoms and media had to work with both IDA and MDA.
Under the newly formed IMDA though, these companies need only to work with one agency guided by the converged policy framework. This will promote industry development as it facilitates business planning and creates a more conducive regulatory environment.
However, there are some areas that the new IMDA must make clear with respect to regulation since these have not been discussed in the public domain yet. With the new IMDA in charge of content regulation – I know the Minister spoke about Acts that will come under IMDA – will there be further changes in (a) laws and regulations in the near future to simplify business operations in the industry, and (b) regulations on content that can be carried across different multiple platforms?
In this respect, I would also like to ask IMDA to review the possible market failure or issues with lack of competition which results in Singaporeans being taken hostage to pay for expensive, exclusive sports content. The English Premier League saga has gone on for some time, and cross-carriage does not address high costs for content. We were very lucky with the last-minute agreement for Mediacorp to screen the Olympics. The sentiments evoked by Joseph Schooling's win would not have been the same if Singaporeans did not have access to the "live" screening.
As older sectors, such as marine and oil and gas start to slow down, we must identify and cultivate new engines of growth. And I am confident that the infocomm media sector has the potential to be one of them.
I am heartened that industry development will be a focus for IMDA because this will bring great benefit to Singapore, as it emphasises on talent, research, innovation and enterprise. To begin with, IMDA aims to equip Singaporeans with the skills to thrive in a digital future and drive the domestic economy by promoting digital connectivity and creativity.
It is important to note that in terms of its industry development focus, the priorities of IMDA are to grow the infocomm media sector, foster a stronger culture of creating and building, building a future-ready Singapore Core for infocomm and media, strengthening Singapore's connectivity and harnessing data as a competitive advantage. I believe that these priorities will, in part, help to create a stronger pipeline of Singapore content. And we recently saw with the right dedication and nurturing of talent, Singapore was placed on the global sporting map at the Olympics. And I am confident that with the right development of local talent and content in the infocomm media sector, IMDA can nurture a world-class talent pool for the global media landscape.
In terms of opportunities that this convergence creates, I look forward to hearing what plans IMDA has in rolling out some of the projects that leverage synergies across the infocomm and media sectors.
Having the right regulatory environment alone is not enough. To develop the industry in-depth and to allow Singapore to leverage all of the opportunities that the convergence of infocomm and media presents, we must also have the right supply of resources, that is, talent and human capital, to help create a specialised sector and to support its expansion.
At the moment, we do not have a critical mass of professionals in this sector to support this scale of industry development, and I would like to hear from the Minister how IMDA plans to grow more infocomm media professionals for future demand. For those with the potential to switch to this field, how can we attract them and develop their skills and competencies in this area? How will these be done differently under IMDA as compared to the times when IDA and MDA were separate entities? Deputy Speaker, Sir, allow me to continue in Malay.
(In Malay): [Please refer to Vernacular Speech.] The restructuring efforts being done by the Government in the infocomm and media sectors as well as in the application of technology towards the creation of a Smart Nation are essential steps to not only adapt to a changing world but also for us to prepare for the future. They clearly show a change in the Government's approach to achieve outcomes that would further benefit Singapore.
The establishment of IMDA is a welcome move, in view of the many changes that have occurred in the global technology landscape. IMDA is a new agency resulting from the restructuring of IDA and MDA in order to support the development of the Infocomm Media 2025 Plan. Both sectors, infocomm and media, are increasingly converging at the global level into one huge platform. Therefore, this amalgamation will definitely open new opportunities and, at the same time, present new challenges.
We are aware that, just like the more traditional sectors, for instance marine, oil and gas, which are among the pillars of Singapore's economy, we need to identify and develop new growth sectors. In this aspect, I am confident that the infocomm media sector is one of the sectors with a bright future for Singapore. This sector promises a huge potential that can contribute towards Singapore's economy and provide our people with better job opportunities and attractive career prospects.
One clear benefit is that service providers and companies that previously dealt with IDA and MDA separately can now deal with a single agency only. This will further facilitate the development of this industry because it will make dealings easier and provide a more conducive enforcement environment.
Nonetheless, the overall functions of IMDA need to be explained more clearly. For instance, will it supervise the regulation of media content and will changes be made to the regulations since the same content can be published on various platforms?
Even so, I believe that IMDA's priorities are to focus on the growth of the infocomm media sector and to develop a Singaporean culture that is more prepared to deal with changes in this sector. It will prepare our citizens with relevant skills for the digital future, including in terms of appropriate media and digital content.
In terms of prospects and opportunities arising from this amalgamation of agencies, I look forward to the details of IMDA's plans for projects that will make the sector flourish further. In terms of expertise and talent, it is also important to let us know about the plans to develop suitable manpower and the strategies that will be adopted, through IMDA.
(In English): I look forward to hearing from IMDA about their exciting plans and evolution in policy to bring Singapore in line with the latest developments in due time. I am certain that this streamlining and convergence will bring about a bright future for the infocomm media sector in Singapore. This is a sector that, if well-developed and managed, could become a key enabler of Singapore's growth moving forward. Mr Deputy Speaker, I rise in support of the Bill.
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