Debated in Parliament on 8 Mar 2013.
Madam, I beg to move, "That the total sum to be allocated for Head R of the Estimates be reduced by $100".
I first declare my interest as a practising lawyer. I would like to begin by commending the Ministry for the many legislative and policy changes implemented in the past year. One key move was in respect of the mandatory
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death penalty. On the whole, the move to give our courts wider discretion in sentencing has been applauded. Likewise, the changes in respect of legal aid, to refine the means test to allow legal aid for proceedings before the Commissioner for Labour, this allows more Singaporeans to receive legal aid and, therefore, legal representation.
Madam, these changes signify a shift in putting more heart in our laws and policies. Consistent with this approach, I would like to highlight several areas for consideration. First, I believe more can be done to expand the pool of resources available for legal aid. There are untapped legal resources we should explore. These include retired lawyers, in-house counsel and academics. One problem would be that these individuals would have to apply and pay for practising certificates, which is sometimes inconvenient. Will the Ministry allow a limited practising certificate which can be issued without payment or other usual formalities solely for the purposes of appearing in legal aid or probono cases?
Further, I am troubled by the high number of accused who appear at their first criminal mention unrepresented. I mentioned the figure at 47% at the debate on the Legal Aid Amendment Bill. Will the Ministry consider enacting a scheme where accused with legal representation can obtain simple advice and guidance in respect of the charges against them and their options, at least before their first mention? This will reduce the fear and anxiety many of them faced when they appear before the court, and allow them to make more informed decisions about how they respond to the charges. We could involve law students or those doing their Practice Law Course to assist in this. It will provide them valuable hands-on training and may even encourage more of them to practise criminal law when they qualify.
Related to this is an issue I raised in 2010 and that is the recording of statements of accused or witnesses in criminal proceedings. Recently, there has been a number of high profile cases where the time of the court has been taken up to determine whether statements of the accused and witnesses were properly recorded or accurately represent their evidence. I had raised in 2010 the possibility of having a more independent check on this process and that would include having the statements recorded by video – by having a video recording of the statement-taking process – or at least having an independent third party, like a Commissioner for Oath, sign off on the statement before they are made final. These would cut down the costs of trial – of court time – to determine the integrity and accuracy of the statements and will give more confidence in the reliability of these statements when they are used in court.
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My next point relates to the need for laws against hate speech and greater privacy laws in Singapore. The advent of the Internet and social media has improved access of information and allow the ordinary citizen to air his opinions online. This is a good thing. However, the anonymity that the Internet affords has also led to a deterioration of social mores and etiquette on online platforms. While rude expressions per se should not be restricted simply because they are unpleasant, we should be concerned when hate speech and hateful ideas are spread online by vilifying, disparaging, ridiculing or inciting violence against particular groups of people; hate speech threatens social cohesion and stability. Some countries have enacted legislation prohibiting and criminalising hate speech, and even speech online.
We have the Sedition Act but that may be too blunt a tool to use in some situations. A more focused legislation against hate speech or inappropriate conduct online may be timely for it to give more responsive and effective remedies.
Related to this is a need for stronger privacy laws. In January this year, following the horrific accident in Tampines that claimed the lives of two young brothers, photographs showing the mangled state of their bodies were circulated rapidly on the Internet. The photographs made a spectacle out of a tragedy and robbed the family of their privacy and dignity that they deserved. This is only one incident. The recent sex corruption cases have seen photographs of innocent women circulated on the Internet, speculating whether they were the parties involved. There are many instances online where people snap photographs of others in public spaces for the purpose of subjecting them to online ridicule and scorn.
The question is whether we as a society find this acceptable and, if not, whether the Government should step in to do something about it. At the very least, we should allow persons who are aggrieved the facility to bring an effective response themselves. Most people will not have the ability or resources to discover the persons behind inappropriate posts online. Our judicial system is difficult for ordinary folk to navigate without incurring significant costs to obtain discovery and, subsequently, redress. There should be a facility to enable discovery of the identities of persons who put up inappropriate posts and for effective remedies for these posts to be taken down swiftly. I ask the Ministry to consider setting up a bureau or agency to offer such services to the public.
Finally, may I ask the Minister for an update on the Qualifying Foreign Law Practice (QFLP) scheme? How many more licences does the Ministry intend to
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issue? And what gaps in our legal services does it hope to bridge in the next round of licences?
Madam, I would like to raise two areas for review concerning the investigation and pre-trial stages of criminal cases. First, I would like to revisit the suggestion to video record the statements given by accused persons in custody, which Mr Hri Kumar just touched on.
This practice of video recording is in place in various jurisdictions, including Australia, the United Kingdom, South Korea and Taiwan. Its purpose is as a safeguard, to ensure that the person in custody gave his statement voluntarily and that the words in the statement fell from the accused's own lips and were not force-fed.
I first raised this issue during MinLaw's COS five years ago in 2008. At that time, the Government's response was that video recording does not ensure that statements are voluntarily given. In 2011, MinLaw made a similar response after the Ismil Kadar case.
While I agree that video recording is not a fool-proof guarantee against impropriety or allegations of such, the benefits of doing so are undeniable and accrue to both the state and the defence. For the state, it offers significant protection to our law enforcement officers against groundless allegations that they threatened the accused or subjected the accused to duress. Footage of the statement recording will show the demeanour of the accused and the recording officer, to enable the court to come to certain conclusions about whether the accused's will was sapped through sleep deprivation or he was not in a proper frame of mind during the recording. Furthermore, statements are often challenged by the defence on the ground that the words in the statement were put in by the recording officer and did not come from the accused. A video recording will settle that question decisively.
In other countries, video recording has been found to save Police and Court time, as both sides may decide not to pursue certain matters after viewing the recording. At the same time, it is a safeguard to maintaining high standards of law enforcement. We in Singapore may need this safeguard even more, since an arrested person's right to see counsel under arrest is so limited. Would the
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Government at least re-think its position on this issue or at least for capital cases?
Secondly, the Criminal Procedure Code 2010 introduced a new pre-trial case disclosure regime where both prosecution and defence are required to disclose evidence relevant to the case well ahead of the trial. Since its implementation, I have assisted as defence counsel in a few court cases under the framework, and I can see its value and contributions towards a fair trial. Currently, only District Court cases under the Penal Code and selected statutes come under the disclosure regime. Other cases, for example, those charged under the Prevention of Corruption Act (PCA) have not been brought under the framework yet. As the framework has proven useful and successful, when will its scope be expanded to cover other laws like the PCA?
Madam, the fourth Presidential Election in August 2011 was the first contested election for the presidency since 1993.
Candidates presented competing, and often conflicting, visions of the Elected Presidency. In some respects, the conflicting visions were encouraged by the electorate which had high expectations, and saw the President as a political player to function as a check on the Government.
This is notwithstanding that Singapore's Head of State is not vested with the same powers as the executive Presidents of the United States, France and many Latin American countries.
There was the palpable expectation that the presidency should be a watchdog that can both bark and bite. The sense was that the current reactive powers of the Elected President results in a watchdog that could only bark, and even then only in limited circumstances.
However, put simply, the Elected President is not designed as a countervailing source of political power in our system of Government.
The silver lining is that Singaporeans saw the first presidential contest in 18 years as an opportunity to demonstrate their aspiration for a more robust political system and to entrench good governance.
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Would the Government consider using the next couple of years before the next presidential election to create better awareness and understanding of the constitutional limits of the Presidency? I note the Minister's own efforts in trying to clarify the role and function of the Elected President but I felt that it did not make much headway in the lead up to the hustings, particularly as it came on the back of the bruising 2011 General Election.
Madam, candidates must run for the office that exists, not one that they wish to have. The Elected President is a little understood and a much misunderstood institution in our system of constitutional government.
More importantly, the electorate must be discerning to know which candidate is over-promising on the Elected President's constitutional powers and mandate. I make this call to Singaporeans to better understand our system of Government.
At the same time, I call on the Government to let the Elected Presidency to evolve in tandem with Singaporeans' reasonable expectations of the roles and functions of the office, all in the name of entrenching good governance.
Madam, the Small Claims Tribunal (SCT) has been kept busy and efficiently handled numerous small claims for a whole range of claims. My residents, as well as some of the freelance professionals whom I have come into contact with, have shared with me the limitations of the Small Claims route. The issue is not with the process and getting the order but the costs of litigation if one seeks to enforce the small claims judgement. For example, if the amount of judgement claims is $1,000 or even $5,000, the cost to enforce, if the losing party refuses to pay, may render it not worthwhile to take further civil action. Can MinLaw help plug this lacuna and provide some recourse for the claimants who have judgement in hand?
In line with my earlier point on enforcement of small claims is the incidence of small companies which are liable to pay under a small claims judgement and end up winding up the company and setting up shop under another company and a new name. The claimant is often left in the lurch. Can MinLaw do something to help such claimants?
And, finally, with an increase in our population and the rising number of household units and the close proximity of neighbours, the frequency of
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disputes between neighbours is likely to increase. It can be noise, smoke, dripping water, excessive items along corridors, to invasion of space. Besides community mediation, a Magistrate's Complaint, and show cause action by the Police, can we not set up a tribunal for neighbourly disputes which should incorporate compulsory mediation, penalty provisions and establishing community norms?
Madam, I would like to follow on from the suggestions by my colleague, Mr Patrick Tay, about the discussion for developing a Community Mediation Framework. In particular, whether it is possible if the first round of mediation does not resolve in an amicable situation, then an appointed body or group issues a notice to the party or parties involved requiring them to comply with an appropriate or described set of behaviours.
And where the offence then is a failure to comply with the notice, rather than letting cases drag on until one party reports the matter to an authority, the other party gets fined and the relationship becomes more strained and very adversarial, I am not suggesting that we could use this opportunity to develop a framework to draw up a list of offences – which may be a difficult list to agree upon. It is the process which is prescribed and the failure to engage with the process that is the offence.
For long-drawn disputes where either party refuses to attend mediation, could the act of refusal to attend mediation be considered as an offence and give the process of mediation more bite and enhance its effectiveness?
Mdm Chair, our bankruptcy laws currently try to strike a balance between allowing debtors to maintain a modest lifestyle, while providing creditors with the opportunity to recover some of the debts owed to them in an equitable manner. In many countries, bankrupts might lose their houses and life savings when bankruptcy occurs. In Singapore, the fact that HDB flats and CPF monies are protected from creditors in the event of bankruptcy provides significant protection for debtors.
There are two specific aspects of our bankruptcy regime where I think we could be even more liberal to debtors. The first is in cases where the bankruptcy is the result of business failure. Now, this is quite a common cause of
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bankruptcy for small business operators who trade in their own name or for those who might provide guarantees for companies when securing loans. In relation to many of these businessmen, once the business fails, and they become bankrupt, that probably means that they will not be able to continue running the business and they may have to find a very different means of earning a living. If they do not have proper educational qualifications, this may mean a substantial drop in income. And this puts them in a bind because it means that their income would be reduced, which makes it more difficult for them to get out of bankruptcy. But if they do not get out of bankruptcy, they will not be able to go back to doing business. It also means that many of these operators do not get a second chance to get back into business even though they might have learned from the first failure and might be able to do better the second time.
A slightly different approach towards bankruptcy is the approach taken by Hong Kong where bankrupts are generally given discharge after four years if they conduct themselves well while they are bankrupt. Creditors may object to the automatic discharge but only on very limited grounds, namely, if the bankrupt did not comply with the conditions of the bankruptcy. This is obviously a much more liberal regime than Singapore. But I think it is probably a direction that we could move in if we want to encourage entrepreneurship and risk-taking. Hong Kong is well-known for entrepreneurship. And I also think the risk of credit freezing up is not that big an issue because businesses remain vibrant to Hong Kong. This might be one approach to allow those who fail in business to pick themselves up again.
The second area where I think our bankruptcy regime can be a little more liberal is those who become bankrupt as a result of unsecured personal credit. These are typically people who incur a large amount of consumer debt. This can come in the form of credit card debt, generous consumer lendings, such as those offered by some electrical and furniture shops, as well as unsecured personal loans from banks and authorised moneylenders. Unauthorised moneylenders are also a problem, but they generally would not be creditors in bankruptcy.
The main mischief here is I sometimes get very concerned when I see how easily consumer credit is extended. I see low-income families buying very large television sets, for example, because low monthly instalments are a great attraction. But when they default, the furniture or the electronic goods they buy get seized and they may be made bankrupt if the debt is sufficiently large.
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Credit cards continue to be marketed quite aggressively, giving people additional spending power. But if people cannot pay these debts, then the interest rates are usually quite substantial and, again, they might end up in a vicious credit spiral. If people were to become bankrupt as a result of unsecured personal credit, we could probably be more liberal than letting them being discharged as well.
I understand the main risk in having a more liberal bankruptcy regime is that we may create moral hazard where people may borrow excessively and borrow more than is prudent. But I also think that this risk is something that can be managed because what it means is that lenders will also become more prudent in how they lend. If they know that there is a chance that people may be discharged from bankruptcy more easily, they will be more careful in extending consumer credit and this, I think, is a good thing.
Madam, the law protects HDB flats and the proceeds of sale of such flats from being used as a security or collateral for any debt. The exception is for housing loans.
When a person becomes bankrupt, his flat is also protected from other creditors as the HDB flat does not vest in the official assignee. This protection is consistent with the HDB flat's status as public housing. When an owner of an HDB flat falls into mortgage arrears, the HDB will help him to restructure his payments and explore ways to help him. But if that does not work out, he would be encouraged to right size by moving to a smaller and more affordable unit.
In a very worst case scenario, if substantial arrears accumulate and nothing is done, HDB may compulsorily acquire the flat and compensate him. This puts certain households who owe substantial debts in a quandary. If they sit tight, their shelter is assured and their flat is protected from creditors. However, this is not financially prudent. Housing arrears build up and there is that worry about compulsory acquisition at the end of the day.
On the other hand, if they proactively try to downgrade to a more affordable unit, the full amount of cash proceeds from sale of their flat becomes fair game for creditors such as moneylenders, credit card companies and banks. The cash proceeds will also vest in the official assignee on bankruptcy. I believe this will be case even if the owners attempt to use HDB's enhanced contra facility. This is problematic because debtors often need to use a portion of cash to buy a
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smaller home and, if the proceeds are seized by creditors, they will lose their roof. This is not ideal.
Some residents I have met are caught in this bind. I would like to propose that MinLaw enhance protection of public housing for Singaporeans and plug this gap by putting cash proceeds from the sale of flats beyond the reach of creditors, whether in bankruptcy or otherwise, to the extent that such portion of cash proceeds is needed to be used for the payment of another flat.
Mr Edwin Tong is not in the House. Mr Arthur Fong.
Madam, Singapore has earned a reputation internationally as the country that can get things done, with good infrastructure, capable IT support and personnel and a knowledge-based economy. These are the basic, necessary and vital ingredients to achieve our ambition to be an Intellectual Property hub. If I may add one other critical ingredient necessary to be an Intellectual Property hub is our impartial and efficient legal system.
Madam, the areas of IP patents, royalties and licensing are important ones and set to grow. The World Bank listed royalties and licensing to be worth about US$200 billion.
The number of patents is growing at a furious pace of 45% annually.
We should have a slice of that pie. But we must work at removing some impediments to growing the IP industry. Perhaps, even consider a review of section 34 which could blind-side an IP newbie, mostly inexperienced start-up individuals, registering their product overseas first and not being aware of the requirement under this section and would be fined.
More communication and education are needed to counter potential "leakage" of IP filings going elsewhere. Could the Ministry study if this section could be removed or reviewed altogether or have more publicity or comprehensive communication plans such that the public is aware of this? Secondly, would MinLaw also consider setting up a Do-it-Yourself registration, a DIY facility, especially for small companies, many of which are start-ups, who
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may find it costly to register through the services of a lawyer?
I look forward to the Minister for Law updating the House on the plans to further develop Singapore into an IP hub. How else can we help our local businesses to commercialise and exploit the IP that they own?
Minister Shanmugam.
Mdm Chairperson, I thank all who spoke.
Mr Hri Kumar asked for an update on the impact of significant legislative changes in the past year. MinLaw administers over 80 Acts, which is about 20% of the Statute Book, which we review and seek to reform from time to time. A number of reforms were made in the last financial year.
Looking at criminal justice, the Evidence Act was amended to expand the court's discretion to admit hearsay and opinion evidence. As regards sexual assault victims, we made it clear that cross-examination on sexual history can only be done when directly relevant.
Together with MHA and AGC, we worked on and brought before this House, reforms to the mandatory death penalty in relation to drug trafficking and murder, as well as the procedure for the Court of Appeal to review death sentences. The transitional cases are now being dealt with. We will monitor the impact on our crime rates as a result of these changes.
Separately, a law reform committee led by the Senior Minister of State for Law will be looking at rationalising the Penal Code offences relating to homicide and hurt where death is caused; and whether and to what extent mentally disabled offenders should be punished differently across the whole spectrum of criminal law.
Mr Kumar also asked about hate speech in the context of the Internet. I think that Members would know that yesterday, Deputy Prime Minister Teo made some comments about reviewing this area. We will update the House when that review is completed.
To boost the legal services sector, we amended the Legal Profession Act, the International Arbitration Act, and the Foreign Limitation Periods Act. If you
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look at the Legal Profession Act, we widened ad hoc admissions for Queen's Counsel. More flexibility was also given for Singapore firms to collaborate with foreign firms.
Under the International Arbitration Act, we updated the definition of arbitration agreements, recognised emergency arbitrators, clarified the tribunal's power to award interest and allowed judicial review of negative jurisdictional rulings.
As regards the Foreign Limitation Periods Act, it was made clear that, where a case is governed by foreign law, the issue of limitation will be governed by foreign law. This has made Singapore a more neutral forum.
The amendments were made as part of an overall effort to develop our arbitration sector. It is difficult to pinpoint the effect of each change on the legal sector, but you can see, in broad terms, the overall effect on our legal sector. In 2012 – the nominal value-add from legal services was estimated at around $1.85 billion. In 2008 – it was $1.48 billion. That is a 25% increase. And if we have a vibrant legal services sector, that will in turn support the banking sector, the finance sector, corporate headquarters in Singapore and areas which require sophisticated legal support.
Other changes we made include the Legal Aid and Advice Act, where we updated the means test to keep pace with the cost of living, and try and protect vulnerable persons in family disputes. With the amendments, an additional 300,000 citizens and PRs can meet the income test. That is about 25% of Singapore residents, up from the current 17%. The Civil Law Act was expanded to give greater discretion to distribute property of deceased persons with no heirs. For example, unclaimed CPF monies are now covered. That Act came into effect on 15 February 2013 and I have tasked the Public Trustee to take charge of its administration.
For the Moneylenders Act and Rules, we enhanced the enforcement powers of the Registry of Moneylenders, extended interest rate caps, prohibited up-front fees which increased borrowing costs, and removed exceptions to caps on unsecured lending. This and earlier measures reduced the volume of moneylending, and the number of moneylenders fell from 249 in 2011 to 209 in 2012. The value of the loans fell from $480 million to about $260 million over the same period [Please refer to Official Report of 7 July 2014].
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Moving forward, we will continue to reform the law across the different areas of legislation that MinLaw covers.
One of the major areas that will be covered this year is our bankruptcy and insolvency regime. Mr Vikram Nair asked if we can consider an easier regime to discharge certain types of bankrupts: bankruptcies due to business failure and bankruptcies due to unsecured consumer credit. I think there is merit in differentiating between the different types of bankrupts. We have started a review of our discharge policies, but I ask that Members bear in mind that we have to balance between the creditors' interests and discharging bankrupts where it is just to do so, without creating a moral hazard. We will certainly consider the Member's views in the review.
We will also consider the Member's views in the context of the Insolvency Law Reform Committee. That Committee will be finalising its report on the Omnibus Insolvency Bill which will improve and streamline personal bankruptcy and corporate insolvency regimes. We will also consult the public after reviewing the Committee's report and our discharge policies.
In this context, Mr Desmond Lee asked whether our laws would allow a HDB flat owner who is in financial distress but not yet a bankrupt to downgrade to a small flat without having the proceeds of the sale taken by creditors. Under the Housing and Development Act, HDB flats in general cannot be used as security. In bankruptcy, the HDB flat owned by at least one citizen will not vest in the Official Assignee; that is to say that it is not available to the creditors. The High Court has also ruled that that protection also applies to proceeds from the sale of the HDB flat. Those in financial distress should be aware of these bankruptcy protections. We will also ask MND and HDB to see if there is a gap in this area.
Next, if I can move to resolving community disputes. Mr Patrick Tay and Dr Janil Puthucheary spoke on this. We note their concerns and suggestions. Community disputes, as Members recognise, fall into many categories, ranging from noise disturbances to unpleasant smells. Some are bona fide and some may suggest extreme sensitivity. It is inherently difficult to resolve these disputes because emotions tend to run high and views on what is acceptable behaviour are very subjective.
The existing framework of criminal and civil laws, I think, may need to be relooked at. My Ministry is working with MND, MHA and MCCY to see if we can develop a framework that can apply to this set of issues. This was broadly
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referred to yesterday by the Second Minister for Home Affairs in the context of what should be the norms of acceptable conduct between neighbours, enhanced mediation processes and calibrated sanctions to enhance compliance.
This is a work in progress and we welcome suggestions, but bear in mind that legislation cannot solve all issues.
Finally, on Asst Prof Tan's suggestions on improving Singaporeans' understanding of our system of Government, especially the role of the Elected President. Since 1988, when the idea of the Elected President was first mooted, the Government has explained the role of the Elected President several times. In 1999, then-Prime Minister Goh made a statement in this House. In 2011, statements clarifying the role of the Elected Presidency were issued.
The role of the President, as stated in the Constitution, is not very difficult to understand. Article 21 states clearly that the President acts on Cabinet's advice, except in certain specified areas: the use of past reserves; appointments to key public offices; ISA detentions; CPIB investigations; and restraining orders relating to the maintenance of religious harmony.
I think it is very clear. If I may refer to Asst Prof Tan's own article which was published on 31 May 2011 in the media, and I quote, "Singapore's Head of State is not vested with the same powers as the Executive President of the United States, France and many Latin America countries. Despite our President being elected, our system of Government remains a parliamentary one, in which policy making and law making are the prerogatives of the Cabinet and Parliament. Put simply, the Elected President is not designed as a countervailing source of political power in our system. The Elected President has two key custodial functions: That of protecting Singapore's financial assets and safeguarding the integrity of Singapore's public service… In layman's term, the President holds the ‘second key'. But the President cannot initiate a drawdown of the reserves or make key appointments, laws or policies; his powers are inherently reactionary. In most other areas, the President has limited discretionary power, mostly acting on the advice of the Cabinet, or being constitutionally required to consult with the Council of Presidential Advisers."
So, it is very clear. Asst Prof Tan has set it out, I have set it out, and others have set it out.
I would suggest that in the specific context that Asst Prof Tan mentioned, of candidates – or some of the candidates at least – saying what they thought
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the powers were – that it is not a problem of public misunderstanding. It is perhaps a misperception of what candidates may have considered to be the powers of the Elected President.
I agree with Asst Prof Tan that public education is important and the Government will continue to clarify these areas. Students are educated on Singapore's system of government, including the President, and on their responsibilities as citizens. These include their responsibilities as voters in presidential and parliamentary elections. They are taught at a level commensurate with their maturity through compulsory subjects, including Social Studies, and Citizenship and Character Education.
The Senior Minister of State for Law will take the remaining cuts.
Mdm Chairperson, Mr Hri Kumar asked about the QFLPs. From 2008 to 2011, the value of legal services exported from Singapore increased by 51.8% from $363 million in 2008 to $551 million in 2011. This growth has been catalysed by our calibrated liberalisation of the legal services sector, mainly through the QFLP Scheme.
In 2008, the first six QFLP licences were handed out. The six firms have done well. Eighty percent of their gross revenue comes from offshore work, work that would otherwise have been done overseas. Last month, we awarded a second round of QFLP licences to four top international firms. We will continue to monitor the QFLP scheme to ensure that it continues to contribute to the strength and diversity of our legal sector.
Mr Fong had asked about making Singapore an Intellectual Property hub. Mdm Chairperson, today, the development and exploitation of intellectual property have become a key driver of economic growth globally. The importance of intellectual property (IP) will continue to increase. Transactions in IP will become a business in itself and Singapore must ride this wave. A vibrant IP marketplace in Singapore will support high-value jobs and business opportunities for Singaporeans. It will also enable Singapore businesses and innovators to commercialise and exploit their IP. We, therefore, set up the IP Hub Steering Committee last year to formulate a Master Plan to guide Singapore's development in this area.
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The Committee has submitted its findings and recommendations to the Government. It identified three strategic outcomes that we should work towards. The first is that Singapore should aim to be an international hub for IP transactions and management, so that companies will use Singapore as a base for regional and international IP transactions, and manage their IP portfolios from Singapore.
Two, Singapore should aim to be a hub for quality IP filings for companies all over the world. These companies can tap on our IP service providers and infrastructure and use Singapore as the gateway to secure IP protection in key markets all over the world. Singapore should become a choice venue for IP dispute resolution by leveraging on our efficient, cost-effective and high quality judicial system, and alternative dispute resolution methods, such as arbitration.
To reach these strategic outcomes, the Committee has recommended that Singapore develop skilled IP professionals, networked to the region and beyond, to effectively serve the international needs of companies. Also, we should build a conducive and progressive environment to encourage IP players worldwide to bring their IP activities to Singapore, and thus create a thriving IP eco-system in Singapore, entrench our status as an IP hub, and position us to assert thought leadership in the field.
We are in general agreement with the recommendations of the Committee, and we intend to aggressively develop Singapore into a regional and international IP hub. Detailed announcements will be made over the next few months on this front.
Mr Fong also asked about the review of section 34 of the Patents Act, currently referred to as the National Security Clearance (NSC) provision, which is meant to safeguard the disclosure of information prejudicial to national defence interests and public safety. Patents agent professionals are aware of the requirements and the clearance process at IPOS is simple and quick. Information about NSC is available at the IPOS website, but IPOS will study how to further raise awareness of the provision among companies.
On Mr Fong's suggestion to set up a DIY facility, it is already possible today for companies to file IP, such as patents and trademarks, on their own, but most still seek IP service providers for professional assistance. Companies can enjoy a 400% tax deduction or 60% cash payout on IP registration under the Productivity and Innovation Credit (PIC) scheme. This can include the
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associated fees paid to professional service providers.
On the Small Claims Tribunal – an issue raised by Mr Patrick Tay – legal costs for proceedings are minimised as the process is simple and parties appear in person. Money orders are enforced through the Magistrates Court through the Writ of Seizure and Sale (WSS), and the filing fee for the writ of execution to enforce the Tribunal's order is $105, which is 30% lower than the fee for a case not under the Tribunal. Incidental costs of enforcement, such as bailiff and auctioneer fees, may bring the total cost of the enforcement to about $400 to $600. However, the Court will generally order the losing party to bear all enforcement costs, so that the successful claimant may not need to pay.
We are conscious of the cost factor in our on-going review of the Small Claims Tribunal Act together with the Subordinate Courts. We will ensure that the Small Claims Tribunal stays true to its purpose of providing effective and swift redress for small claims.
Mr Patrick Tay had asked about consumers' recourse against errant companies who fold up and set up as new companies. A person who uses the corporate form for fraud can be made personally liable for the debts of the company. He may also be guilty of a criminal offence. If a person is a director, he could also be disqualified from holding directorships. In terms of public education, ACRA has collaborated with CASE to develop a guide for consumers dealing with business entities. That guide shows consumers how to use ACRA's information services, to conduct background checks on business entities before deciding whether they should deal with them.
On criminal procedure, Ms Sylvia Lim had raised a question on the disclosure regime under the CPC. In launching the disclosure regime, we determined a body of predicate offences to be included. The Prevention of Corruption Act is not included in this list. CPIB investigations under the PCA, therefore, are excluded from the disclosure regime. However, CPIB investigations of predicate offences included in the regime will observe the same disclosure requirements.
The Police has introduced measures over the years to improve the quality of their investigation processes. These practices are shared among the Government investigation community, which includes the CPIB. MinLaw will convey the Member's comments to the CPIB and this will continue to be reviewed. In the meantime, for cases not covered under the statutory regime, the common law will still apply, as the Court of Appeal made clear in Kadar's
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case.
Both Ms Lim and Mr Hri Kumar raised the issue of video recording. The issue of video recording is an operational matter relating to police investigations and it comes more directly under the purview of MHA. However, MinLaw understands from MHA that there are currently no plans to introduce video recording for the taking of statements. MHA's position is that the issue of video recording as well as other operational issues should be looked at in the following manner: there should be a fair system which seeks to ensure that crimes are solved, and the system should also seek to ensure that the rights of the accused are protected. If an accused wishes to challenge the statement given by him, there are clear avenues available today.
On the question of whether this regime can be re-thought, over the years, MHA has introduced a number of changes, and it is MHA's intention to continue to look at the processes. I think the Government recognises the rationale behind the suggestions made by Mr Hri Kumar and Ms Lim. That rationale, together with other considerations, will be considered in the light of evolving circumstances when MHA further reviews its processes.
Mr Hri Kumar also raised the issue of legal aid, and made three points for consideration: whether we could have ad hoc practising certificates for retired practitioners or people who can come in to help with legal aid; using law students for pro bono work; and what can be done for accused persons who are unrepresented. As I had mentioned previously, I am currently chairing a committee on the promotion of pro bono work. We will take these suggestions to the committee and consider them and see what can be done.
On a slightly broader note, because Mr Kumar also mentioned what MinLaw has done over the past year, if I may just say a few words on the legal sector in general. The legal sector has grown, as mentioned by the Minister. If I may just add that the arbitration sector, in particular, has also seen stellar growth.
Singapore is now recognised as the leading international arbitration hub in Asia. A 2010 White & Case International Arbitration Survey found that we are clearly the most popular Asian seat. Worldwide, we are the third most preferred seat by companies, together with Paris and Tokyo, and after London and Geneva.
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The growing caseload of the Singapore International Arbitration Centre (SIAC) reflects our rising stature in international arbitration. The number of new cases handled by SIAC rose from 99 in 2008 to 235 in 2012. The total value of disputes reached a record high of S$3.61 billion in 2012, well in excess of the total for 2010 and 2011 put together.
This growth is the result of the aggressive and holistic approach we have taken to develop the arbitration sector over the years. We have a completely open regime for international commercial arbitration. Parties engaging in arbitration in Singapore have the freedom to engage lawyers of any nationality and to use any governing law. We have also introduced tax incentives for arbitrators and arbitration work. And we have established Maxwell Chambers, which offers world-class arbitration facilities. The Global Arbitration Review called Maxwell Chambers' opening one of the "Best Developments" in the arbitration industry. Our Courts, too, have been strongly supportive and pro-arbitration. Finally, we have a supportive legislative framework in the form of the International Arbitration Act, which we continually update in consultation with academics and practitioners.
Our coming of age was evident when the International Council for Commercial Arbitration held its Congress here. The Congress was attended by the who's who of the international arbitration community, and had the largest participation rate in its history, of more than 1,000 attendees.
Concurrently, we have seen the growth of arbitration expertise in the local Bar, at all levels. This will enable Singapore to continue to be the arbitration centre of choice for the region as well as internationally. I would encourage younger Singaporean lawyers to deepen and extend their arbitration skills and knowledge to take advantage of this growth area so that, in the years to come, we will continue to have a strong pipeline of Singapore lawyers who will be able to serve the local, regional and international markets for arbitration.
We also hope to see the continued growth of strong Singapore law practices and hope that they will take advantage of some of the available incentives, such as the Development and Expansion Incentive for International Legal Services, a concessionary tax rate for firms which do international work from Singapore; and a tax incentive for international arbitration work done substantially or culminating in hearings in Singapore. In addition, agencies, such as EDB, SPRING Singapore and International Enterprise Singapore, provide a variety of general incentives for capability building that the Singapore
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law practices can tap on.
For dispute resolution, as the Chief Justice announced at the Opening of the Legal Year, Justice V K Rajah and I will lead a committee to study the proposal for creating a Singapore International Commercial Court, and this will further expand our dispute resolution offerings.
Mediation is also a priority. In the coming year, we will build on earlier efforts by the Singapore Mediation Centre to strengthen our services for international commercial mediation.
Mdm Chairperson, the development of the legal services will be a source of growth in itself, and more importantly, a vibrant legal services sector supports growth in other sectors of the economy which require sophisticated legal support.
Ms Sylvia Lim.
Thank you, Madam. Two clarifications for the Senior Minister of State on her response to my cuts. The first is regarding the disclosure regime and whether other statutes, for example, the PCA, would be brought under it. The Senior Minister of State seemed to suggest that it is something discretionary and may or may not happen. But my question is: should we not proceed on the basis of whether there is any good reason why it should not be brought under that regime? After all, is it not desired to have uniformity in these pre-trial disclosures, especially for cases heard by the District Court?
The second clarification is concerning the issue of video recording. The Senior Minister of State appeared, in the gist of her remarks, to say that this issue is actually an MHA issue. Perhaps, she would like to clarify because, historically, MinLaw has taken ownership of this issue of video recording, both in the CPC review in 2010 as well as certain statements made to the media about this issue.
I would like to ask: does MinLaw not have an interest in the standards of evidence brought before the Court and how Court time is used? In fact, Mr Kumar also alluded to the fact that much Court time is being used now to refute such allegations which I think video recording could somewhat mitigate. In other countries, it has been shown that prosecutors are pushing for this because they have found the value in video recording in the handling of trials. I would
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like to ask the Senior Minister of State what is actually MinLaw's ownership of this issue or whether it is just something which they think MHA should take the lead on from now on?
Madam, I will answer the question. The Government takes ownership of this issue. Obviously, the Member is entitled to ask the Government and someone has to answer. The gist of the response on video-recording is that, in the past when MinLaw took up the issue, it is often that the office-holders were double-hatting, or because of the specific context of the legislation before the House.
Now, today's question is operational in nature: video-recording has to be done by the police if it is instituted, and the Member knows that.
Therefore, given the operational nature of the issue, given the fact that MHA agencies have to deal with it, they will have to assess whether it is feasible, whether they have the necessary resources, and what implications it has on their investigative procedures. On these operational issues, we defer to them. We are happy to relay the answer on their stance, but we also think that it would be more productive, in the specific context in which this question is raised, that it be put directly to MHA, perhaps in the form of a parliamentary question. But we are happy to respond, and we have responded today. We also recognise the rationale for the Member's point, as well as Mr Kumar's point, and we would put it across for MHA's consideration. So, if the Member wishes to continue to raise the issue with MinLaw, we will be happy to answer; we are just making the additional point that the Member could consider specifically raising it with MHA.
In response to the Member's point as to whether or not MinLaw is interested in making sure that standards of evidence in court are up to scratch – I would reply, yes, absolutely. We want to make sure of that, and as everyone can see from the moves that we have made in the last few years, and as the Member will recognise, standards have been refined considerably. I think the Member will welcome the changes, for example, to the disclosure regime. Last year, when we had a meeting with the members of the criminal bar, several stood up and welcomed the changes. One of them, a leading member, said, "This is the best time to practise at the defence bar." But that does not mean that the current position is crystallised. We have to continuously evolve, look at
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the best practices, and we welcome suggestions by Members and others.
Secondly, as far as criminal case disclosure is concerned, again, we put it in because we believe that it is the right thing to do, and it has been put in place for many pieces of legislation. But let us see how it works before we expand it to other agencies, other pieces of legislation.
So, that rationale has already been explained. The speed with which the regime can be expanded depends also on the ability to make sure that the agencies can comply with the processes, and whether they believe it is workable in their particular context. That is the case in the specific context of CPIB and PCA. That is also the case for other agencies and other pieces of legislation, and we will continue to have conversations with CPIB and other agencies on this.
Madam, I would like to raise a question with the Minister for Law. I appreciate his assessment that some of the presidential candidates, perhaps, misperceived the office of the Elected President. But certainly, I would take the view that some of the candidates probably found it politically expedient to present what they would do if they were elected. I think that certainly got a segment of the electorate rather excited. In any case, I take the position that, in the end, it is still important for the electorate to be informed so that people do not get too politically entrepreneurial.
Asst Prof Tan, we on this side of the House know all about political entrepreneurship. We have seen it. I do not, of course, want to specifically comment on what the candidates' motivations may have been. All I can say is that, when candidates go out and say they are going to do this and that, they should know whether or not it is legally possible, given their qualifications, and given the clear explanations as to what the President's powers and functions are. They would know the answer, if they apply their minds to it. And yet they make these statements. People have to draw their own conclusions as to why the candidates do it. When appeals to emotion are made and played up, it is not often easy to counter them with logic and reason but we will continue to try.
Mr Hri Kumar, do you wish to withdraw your amendment?
Mdm Chair, I would like to thank the Minister and the Senior Minister of State for their responses. I think that MinLaw had a full plate
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last year, and I think they have a larger plate but no less fuller this year. Plato said, "Good people do not need laws to tell them to act responsibly but bad people will find a way to get round those laws anyway." So, on behalf of my Members and other Members of this House, I would like to record my appreciation for the officers of the Ministry for the hard work and the diligence and passion with which they performed them. With that, may I have leave to withdraw my amendment?
Amendment, by leave, withdrawn.
The sum of $242,042,400 for Head R ordered to stand part of the Main Estimates.
The sum of $565,072,000 for Head R ordered to stand part of the Development Estimates.
Order. I propose to take the break now.
Thereupon Mdm Speaker left the Chair of the Committee and took the Chair of the House.
Order. I suspend the Sitting and will take the Chair again at 2.45 pm.
Sitting accordingly suspended
at 2.24 pm until 2.45 pm.
Sitting resumed at 2.45 pm
[Mdm Speaker in the Chair]
Debate in Committee of Supply resumed.
[Mdm Speaker in the Chair]
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