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AYE crash driver out on bail; police probe completed

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The businessman accused of causing the fatal accident along the Ayer Rajah Expressway is out on bail of $50,000, a district court heard yesterday.

Lim Chai Heng, 53, who is represented by lawyer Yusfiyanto Yatiman, was released from remand at Changi Prison on Monday.

Yesterday, a police prosecutor told District Judge Christopher Goh that the police have completed their investigation. They are now waiting for the forensic and vehicle damage reports.

Lim is accused of driving against the flow of traffic along the AYE on Dec 19, causing an accident that killed actor Liong Kuo Hua, 37.

Read also: 1 dead, 3 injured after car goes against flow of traffic on AYE

Mr Liong, also known as Jackie, had appeared in several films, television programmes and commercials. He was pronounced dead at the scene of the accident.

Lim’s pre-trial conference will be held at the High Court on March 14.

Read also: Driver in fatal AYE accident charged in hospital

If convicted of culpable homicide not amounting to murder, he could be jailed for up to 10 years and fined, but he cannot be caned as he is above 50 years old.

Since the AYE incident, two other motorists have been charged in court this year after allegedly driving against the flow of traffic.

Lam Chen Wee, 26, was charged with dangerous driving on Jan 31. He will be back in court on March 1.

Brandon Ng Hai Chong, 30, was charged with the same offence on Jan 12 and will return to court on March 23.

First-time offenders convicted of dangerous driving can be jailed for up to a year and fined up to $3,000.

Repeat offenders can be jailed for up to two years and fined up to $5,000.


This article was first published on Feb 17, 2017.
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Lowest rises in income for families at both ends

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The gap between top and bottom earners was at its narrowest in a decade last year, but observers say more can still be done for the lowest-earning families as their income did not grow as quickly as that of other groups overall.

For the bottom 10 per cent of households with at least one working member, the rise in income was among the smallest last year – 1.4 per cent per household member. The only decile with a lower rise was the top 10 per cent of households.

By comparison, median income growth per household member was 3.8 per cent. “This shows that more needs to be done to improve the well-being of the lowest-income households,” said UniSim senior lecturer Tan Khay Boon.

DBS economist Irvin Seah attributed the smaller rise in incomes at the bottom in part to last year’s 19,000 layoffs – the highest since the global financial crisis in 2009.

“The moment a sole breadwinner loses his job, the household income drops to zero,” he said.

Meanwhile, Bank of America Merrill Lynch economist Chua Hak Bin said the bottom 10 per cent of households saw a “huge jump” in income in 2015, a lift that is hard to sustain. That year, their income grew by 10.7 per cent, the highest for all deciles.

“Perhaps some companies are facing pressures, and cannot reward their workers at the lower end as much this time,” he suggested.

Photo: The Straits Times

National University of Singapore sociologist Paulin Straughan said more details about those in this group – for instance, ages and occupations – should be made available.

“We need to know the make-up of the bottom 10 per cent so we can chart the way forward,” she said. “If it’s older workers , we have to pay attention to the effects of ageing on the low-income. If it’s young graduates, then we must make sure they level up on the appropriate skills.”

Households at the top saw slow growth too. Incomes for the top 10 per cent of households grew by 0.2 per cent, the slowest across deciles.

Observers said this was not surprising, given the challenging economy that has affected business owners as well as professionals, managers, executives and technicians (PMETs). PMETs made up the majority of those retrenched last year.

Around 20 per cent of those in the top decile had earners from the financial and insurance sectors, which saw negative 1 per cent growth in median real wages.

Slower income growth among top earners also helps explain why the income gap narrowed last year. The Gini coefficient, which measures income equality, was 0.458, the lowest in a decade. It was 0.463 in 2015.

After taking into account government transfers, it was 0.402, down further from 0.409 in 2015.

Mr Seah said the dip is also the result of several Budgets aimed at strengthening safety nets, as well as policies meant to lift those at the bottom taking effect, such as lower education costs for children in low-income families. “The Gini coefficient has been trending downwards after many years of targeted and robust social policy ,” he added.

Several families told The Straits Times they were bracing themselves for tougher times ahead.

Taxi driver Chia Teck Chai, 59, said his income did not change much in absolute terms last year, but he will take fewer rest days now.

“I’m getting older and not as energetic now, but if I take a break, that’s less money for the month,” he said.

Telco project coordinator Kenneth Chen, 33, said his income went up by 5 per cent last year.

His tip for tough times? “Save. Just because your pay has risen doesn’t mean you must spend more.”


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Man found dead at park in Tampines

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A 59-year-old man in jogging attire was found dead at a Tampines park yesterday morning.

Police are investigating the case as an unnatural death.

A police spokesman said that they were alerted to the discovery of a body at Tampines Eco Green park, near the junction of Tampines Avenue 9 and Avenue 12, at about 7.15am.

The man, who has been identified as Mr Eddie Wee Leng Huat, was found at the entrance of the park near a canal. The Straits Times understands there were no signs of injury.

Read also: Wheelchair-bound woman found dead in Tampines

Retiree Francis Tan, 64, who was cycling past the park at about 8am, said: “There were about five or six people with me, who gathered on the other side of the canal.”

The Tampines resident, who has lived in the area for about 20 years, added: “I saw the police officers take a few pictures of the body.”

He added that as far as he knew, this was the first time such an incident had happened at the park.

The 36ha park has been open to the public for about six years.

A 56-year-old quality inspector, who wanted to be known only as Mr Lee, said his wife was exercising at the park around 7am when she saw two police officers in the area.

“Not many people exercise around this area of the park so early in the morning,” he said.


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Popular Indian playback singer S P B thanks fans with 50th anniversary world tour

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Sripathi Panditaradhyula Balasubrahmanyam, who is responsible for the on-screen singing voice of Indian superstar actor Rajinikanth, needed his son, 45, to nudge him into holding a 50th anniversary world tour to thank his fans.

The 70-year-old playback singer, who is better known as S P B, tells The Straits Times: “My son said to me, ‘Without the audience, you would not have travelled around the world for the past 50 years, so don’t you think that the minimum courtesy is to give a thanksgiving concert, anywhere and everywhere possible?'”

He will be performing in Singapore tonight as part of the tour to mark his 50 years in the music industry.

The concert at the Suntec Singapore Exhibition & Convention Centre, scheduled to last 3.5 hours, will feature a condensed version of his discography – he has recorded a staggering 40,000 songs in 14 languages, including Tamil, Hindi, Malayalam, Kannada and his mother tongue Telugu.

His hit songs include the National Film Award-winning Thanga Thamarai from Minsaara Kanavu (1997) and Balleilakka from Rajinikanth- starrer Sivaji (2007).

It is no wonder the singer says that the hardest part of the tour was deciding the setlist for the concert.

“The tough part is which songs to keep in and which songs to leave out,” he quips, adding that if asked to pick a favourite, he would have “a list of a thousand songs”.

In the Singapore leg, S P B will be joined on stage by other playback singers – namely Karthik, K S Chithra, Shweta Mohan, S P Sailaja and his son, Charan – who will be singing famous songs from his career.

When he started out in show business in his 20s, he thought he would record about 10 or 15 songs and call it a day.

Unlike many of his counterparts, he was not classically trained and he learnt everything by ear.

“I know that I’m not as theoretically sound as some of the other singers because I never learnt music from anybody,” says S P B, who earned only 300 rupees a song back in the 1960s.

The secret to his stamina all these years is the audience.

“The energy of the audience keeps me afloat,” he says.

“In 2017, when I come on stage, they still embrace me with the same love and affection… That satisfaction is something I can’t explain.”

His world tour kicked off in August last year. He made stops in Canada, Russia, Dubai and Sri Lanka and will next head to the United States.

While he is not as instantly recognisable as actors such as Rajinikanth and Kamal Haasan, both of whom he has been lending his singing voice to since the 1980s, he says that playback singers such as him are as much actors as the on-screen stars.

He says: “In the same way that actors inhabit characters in front of the camera, playback singers inhabit characters and have to emote in front of the microphone.”

Demonstrating his point, he sings Unna Nenachen Paattu (from 1989 film Apoorva Sagodharargal), once vocalising plainly and, again, with a pained expression to reflect the pain and suffering of the lyrics of the song.

“Without expression, a song is nothing.”

BOOK IT / SPB50 A GRAND WORLD TOUR

WHERE: Suntec Singapore Convention & Exhibition Centre, Halls 601 to 604, Suntec City, 1 Raffles Boulevard

WHEN: Tonight, 7pm

ADMISSION: Tickets from $45 to $155 from Sistic (call 6348-5555 or go to www.sistic.com.sg)


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Budget 2017: Five issues that could be in the spotlight

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SINGAPORE: When Finance Minster Heng Swee Keat delivers the Budget for 2017 on Feb 20, longer-term transformation measures to bolster Singapore’s restructuring efforts will likely remain a key priority.

Even as growth slows and unemployment creeps up amid lingering global uncertainties, there will be minimal short-term fixes, according to economists who spoke to Channel NewsAsia.

“The Budget will not be a shot of morphine, regardless the state of the economy’s health, but it will be a very targeted administration of long-term vitamin supplements to ensure that Singapore thrives,” said Mizuho Bank’s senior economist Vishnu Varathan.

Given that there is an additional agenda this year to flesh out details of the Committee on the Future Economy’s (CFE) report, what will these “vitamin supplements” be and what else can Singaporeans expect from Budget 2017?

1. BE PRUDENT WITH AN EYE ON THE FUTURE…

First of all, the Budget, which accounts for the Government’s revenues and expenditures, will remain a prudent one even as economists expect it to be in surplus for the financial year ending March 31.

This is largely because the Government is only in the second year of its new term and will want to save up in case of rainier days ahead, suggested Credit Suisse economist Michael Wan.

And this mindset of keeping an eye on the medium to long term is essential as an excessive focus on ongoing risks such as Brexit may end up being counter-productive, Mr Varathan said.

“We know there are many uncertainties right now, like Donald Trump’s policies, Brexit and China’s slowdown. But because we don’t know exactly how this will pan out, trying to pre-empt near-term shocks has risks and we will risk being premature and misguided,” said Mr Varathan.

This might result in the squandering of resources, which could have been directed to the long-term restructuring goals of transforming Singapore’s businesses and workforce, he added.

Mr Liang Eng Hwa, chairman of the Government Parliamentary Committee (GPC) for Finance and Trade, said: “This year’s Budget will have the added vital task of implementing the recommendations of the CFE. Hence, necessarily, the focus will be more medium to long term. I expect the Budget to continue its prudent stance given the uncertainties ahead – that it is the most sustainable way to build resilience.”

Singapore’s economy has been running slow amid a double whammy of macroeconomic risks and an ongoing domestic restructuring. (File photo: AFP/Roslan Rahman)

2. BUT THERE COULD BE SOME COUNTER-CYCLICAL MEASURES

Nonetheless, just like last year’s Budget, there may be some short-term targeted initiatives to help businesses, households and individuals navigate through the current wave of economic challenges.

For instance, Citi economist Kit Wei Zheng expects all planned foreign worker levy increases for vulnerable sectors such as offshore and marine engineering, to be held off. The Government could also help to reduce or defray non-labour costs, like utilities and rentals, to “avoid unnecessary loss of competitiveness”, he added in a report dated Feb 10.

Amid a softening labour market where retrenchment has steadily risen over the course of last year, help will also be made available to displaced workers. Apart from skill upgrading opportunities, help could also come in the form of longer tax repayment periods and a one-off personal income tax rebate, said Mr Kit.

However, given that the growth slowdown has not been as significant as it was during the global financial crisis, experts say a repeat of drastic measures such as the 2009 Jobs Credit Scheme will be unlikely for now.

3. A ‘BUSINESS FRIENDLY’ BUDGET?

Enterprise development will likely continue hogging the limelight at the upcoming Budget. Coming into step with the CFE’s proposals, a “business friendly” Budget is expected to contain initiatives to help companies further leverage technology and enable innovation, said DBS economist Irvin Seah.

At least two initiatives announced last year could return to the spotlight. For one, there could be more details about plans for the remaining 17 industries under the Industry Transformation Maps (ITMs). Over the past year, development roadmaps for six out of the 23 targeted industries under the S$4.5 billion programme have been announced.

Mr Seah is also expecting an enhanced version of the Automation Support Package – a more than S$400 million fund aimed at helping companies automate, drive productivity and scale up – which could entail a bigger grant and higher risk-sharing by the Government. 

But investments in digital technologies, as well as research and development (R&D), can be a costly endeavour for homegrown small- and medium-sized enterprises (SMEs). It could also be a potentially risky one when firms are already feeling the squeeze from rising costs, financing and manpower pressures.

“SMEs in the last few years have been fighting tightening labour shortage and rising cost, whilst at the same time, trying to transform their business,” Mr Ang Yuit, vice president of membership and training at the Association of Small and Medium Enterprises (ASME), told Channel NewsAsia. “A slowing growth environment would force them to cut back on innovation activities, and also very likely, scale down their business.”

However, to stay relevant amid the digital wave, he noted that it is imperative for SMEs to “double down on innovation, business model re-engineering as well as R&D”.

As such, ASME is calling on the Government to extend the Productivity and Innovation Credit (PIC) scheme, which Mr Ang described as “one of the easiest grant for SMEs to tap on”.

Apart from that, ASME hopes to see more support for SMEs to make that leap from local to global. According to Mr Ang, current measures are “very little” and are often an ill fit with SMEs. Citing the Double Tax Deduction Scheme for Internationalisation (DTD) as an example, he said: “It may be good for large enterprises, but for SMEs looking to go abroad, it is the availability of business and opening of markets that is important.”

Even though it managed to tap grants from IE Singapore, local restaurant 4Fingers Crispy Chicken faced challenges in areas such as recruitment, searching for business partners and suppliers, when it first ventured into the Malaysian and Indonesian markets.

As it gears up for the opening of its stores in Australia this year, similar obstacles have re-surfaced due to the lack of a local network and resource constraints.

Mr Steen Puggaard, CEO of the fried chicken chain, told Channel NewsAsia: “A single portal for businesses to tap onto IE Singapore’s worldwide resources for market launches would be very beneficial… Apart from resource assistance in supply chain, legal, finance and tax etc, financial assistance in securing these resources would also help us manage our costs in market entries.”

Overseas expansion is a key focus for this homegrown fried chicken chain in 2017. (Photo: 4Fingers Crispy Chicken)

4. HELPING THE WORKFORCE TO LEVEL UP

Also on the cards could be measures to help Singaporeans acquire deeper skills to stay relevant in a fast-changing labour market upended by rapid technological disruption.

Amid a growing mismatch between jobs and skills in the local economy, OCBC’s head of treasury research and strategy Selena Ling said that more can be done on top of existing schemes such as the Professional Conversion Programme (PCP), Adapt and Grow and the Career Support Programme (CSP).

For instance, the existing credit amount of S$500 in the SkillsFuture scheme could be increased to motivate Singaporeans to cultivate a lifelong learning attitude, said Credit Suisse’s Mr Wan. To encourage companies to accommodate workers who take on additional jobs or training, employers could receive tax rebates or subsidies when they send their employees for training, he added.

5. BALANCING SOCIAL SPENDING

With the economy now in focus and a slew of measures such as the Silver Support Scheme already in place, observers said the upcoming Budget will unlikely see further increases in social expenditure or the announcement of big-bang social policies.

Mr Liang noted that the Government is facing a delicate balance to generate enough revenue to meet the ramp-up in social spending and infrastructure over the past few Budgets.

“As the economy slows, does that mean tax revenue will be reduced? We also cannot expect the Net Investment Returns (NIR) contribution to always be (steady) because global markets do have ups and downs that impact overall returns. So the pace of growth in revenue and expenditure is something that we need to watch closely,” he explained.

“At the end of the day, we want to spend on the right thing and exercise prudence.”

To be sure, the Government has said that more support will be given to the elderly, young families and people with disabilities in this Budget. DBS’ Mr Seah said households can expect to receive a helping hand in child education costs, top-ups to various public assistance schemes such as the Comcare Fund, and rebates on utilities, service and conservancy charges.

Follow See Kit on Twitter @SeeKitCNA

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Chinese man jailed for eight years for airport blast

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SHANGHAI – A court in Shanghai jailed a man for eight years on Friday after he set off an explosive device last year at the city’s Pudong International Airport, injuring at least three travellers and delaying flights.

In a brief statement, the court said that Zhou Xingbo set off the device because his “life was not smooth” and so he took extreme measures to “vent his spleen”, injuring three people. It did not give details. The government initially said five people were injured, including the person who set off the device.

Zhou Xingbo took a beer bottle containing self-made explosive materials out of his backpack and threw it at ticketing counter. After the bottle exploded, he then took out a knife and slashed his own neck, the government said.

Business hub Shanghai is mainland China’s most cosmopolitan city, with a large foreign population, but is generally very safe with major crime unusual.

Explosives are relatively easy to obtain in China though, home to the world’s largest mining and fireworks industries.

A man in a wheelchair detonated a home-made explosive at Beijing’s international airport in 2013, injuring himself in what was an apparent attempt to draw attention to an earlier grievance.

Individual Chinese unable to win redress in disputes have in the past resorted to extreme measures, including bombings, but such incidents are rare amid the tight security at the country’s airports.

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Thai police find only medical kit in search for fugitive monk

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Buddhist monks chant inside Dhammakaya temple while police block access to the place in Pathum Thani province, Thailand February 16, 2017. REUTERS/Chaiwat Subprasom

 

BANGKOK – Thai police hunting a fugitive Buddhist monk discovered medical equipment in the temple rooms where they had expected to find him and will keep searching, an officer said on Friday.

The military government used an emergency law on Thursday to let police explore the scandal-hit Dhammakaya Temple after months of failing to get it to hand over Phra Dhammachayo in a politicised money-laundering case.

The Dhammakaya Temple has said its former abbot, 72, is too sick to face questioning and has not been seen for months.

The head of Thailand’s Department of Special Investigation said police went to the place they had expected to find the monk, but discovered only a bed and a hyperbaric chamber – a high-pressure oxygen device that can be used to promote healing. “They said he was sick and immobile. But we didn’t find him yesterday, which means he can move,” Paisit Wongmuang told reporters.

“We’ll keep searching for many days. If we don’t find him today we’ll search again tomorrow.” He said they would reassess their search only once they had combed every building in the temple compound, which at 1,000 acres (400 hectare) is nearly 10 times the size of the Vatican City.

The temple has been a rare institution in defying the military government. Opposition from political parties and activists has largely been silenced since a coup in 2014.

Phra Dhammachayo faces charges of conspiracy to launder money and receive stolen goods, as well as taking over land unlawfully to build meditation centres. His aides dismiss the accusations as politically motivated.

The controversy partly reflects more than a decade of divisive politics in Thailand, where 95 per cent of people are Buddhists.

Although the temple has no overt political affiliation, the abbot is widely believed to have had links with populist former prime minister Thaksin Shinawatra, who was overthrown in 2006. A government led by Thaksin’s sister was toppled by the army in 2014.

The Dhammakaya Temple’s brasher approach to winning followers jars on conservatives, who say it exploits its followers and uses religion to make money. The temple says it is as committed to Buddhist values as anyone else.

The new move against the temple comes days after the king’s appointment of a new supreme patriarch from the most austere of two Thai Buddhist fraternities. A religious council had earlier recommended a monk with links to Dhammakaya.

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Hong Kong widens lead over Singapore in free economy ranking

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Hong Kong has been ranked the world’s freest economy for the 23rd straight year, climbing in overall points to widen the lead over second-placed Singapore, according to the 2017 Heritage Foundation index released on Thursday.

The US think tank’s annual Index of Economic Freedom report, first published in 1995, grades 10 freedoms – from property rights to entrepreneurship – on a scale of zero to 100 in about 180 economies across four broad categories: rule of law, government size, regulatory efficiency and open markets.

Hong Kong achieved scores of 90 or above in eight components, and attained the top positions in fiscal health (100), trade freedom (90) and financial freedom (90). The city’s overall score of 89.8, derived by averaging the grades of the 10 economic freedoms, was well over the global average of 60.9 and an improvement of 1.2 points after the last two years of decline. The city also extended its lead over rival Singapore from 0.8 point last year to 1.2 points this year.

Read also: Singapore economy picks up speed in Q4, but Trump threat looms large

The report noted Hong Kong’s “high degree of economic resilience” and lauded its legal framework, regulatory efficiency, openness to global commerce, government transparency and lack of corruption. The city has also benefited from “more intense” interaction with China “through strengthened financial and other non-economic linkages”, the report added.

Hong Kong Financial Secretary Paul Chan said on Thursday that the latest rankings affirmed the city’s “steadfast commitment in safeguarding the free market principles”.

“On top of maintaining our favourable business environment, free trade, simple and low tax regime, the rule of law and independent judiciary, the government would also strive to enhance our financial infrastructure and foster closer economic co-operation with major trading partners, so as to strengthen Hong Kong’s leading position as an international city,” said Mr Chan.

A government spokesman added that Hong Kong’s administration is “fully aware of the keen competition globally and the rapid economic development of our peers in the region” and will strive to maintain Hong Kong’s competitive edge.

Read also: The superheroes and villains of the economy in 2017

That Hong Kong has retained its top spot yet again is expected, but how the city has managed to grow its lead is noteworthy, said Chan Yue-cheong, an associate professor of economics at Hong Kong Polytechnic University. “What is surprising is that the margin is now wider over Singapore because Singapore is also trying very hard to improve,” said Prof Chan. “In fiscal health, Hong Kong has an advantage, and has had very big surpluses in recent budgets.”

But competitor Singapore – which scored higher in government spending, rule of law components and regulatory efficiency – has different strengths that may serve the city-state better and push it ahead of Hong Kong in the long run, said City University’s economics faculty head, Ma Yue.

“Singapore’s fundamentals are actually, I think, much stronger than Hong Kong’s. There is much more support from the government, for instance in technology, whereas Hong Kong has a non-intervention policy,” said Prof Ma. While Hong Kong and Singapore both gained ground at the top of the ladder, the United States slipped from its 2016 11th spot to a new low of 17th, with an overall score of 75.1 – the worst American score ever recorded in the index.


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Old Chang Kee offers any four items for $5 on weekdays (2pm to 5pm) from 17 Feb 2017

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Old Chang Kee latest promotion – $5 for any four items on weekdays (2pm to 5pm)

Old Chang Kee offers any four items for $5 on weekdays (2pm to 5pm) from 17 Feb 2017

Old Chang Kee is offering a Tea Break Special promotion available at all Old Chang Kee outlets on weekdays from 2pm to 5pm. Grab any four items for just $5 from 2pm to 5pm everyday!

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Singapore evaluating when, how best to impose carbon pricing

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Singapore is set to impose a carbon price as it looks to cut greenhouse emissions to meet its commitments under the Paris Agreement, The Business Times has learnt.

The government is now determining the timeline and what form of carbon pricing to take in the city-state, according to the National Climate Change Secretariat (NCCS).

Various countries around the world have implemented some form of carbon pricing as they seek to reduce emissions in a cost-effective manner. Singapore, too, has been studying this policy option and monitoring such international developments for some time, said NCCS.

“Alongside current measures such as regulations, incentives and capability building, a carbon price can help improve energy efficiency, lower carbon emissions and promote low-carbon technology,” said a spokesman in response to a BT query. “We are evaluating when and how best to implement carbon pricing in Singapore.”

The move follows other policy initiatives the government is planning to cut the country’s emissions intensity to 36 per cent below 2005 levels by 2030, as it had pledged under the 2015 Paris climate change pact.

It has set a target of ramping up improvement in energy efficiency in the manufacturing sector by one to 2 per cent a year from 2020 to 2030. In November last year, it also said that it is planning to tighten energy monitoring and reporting requirements for large industrial players.

Read also: COE prices close mostly lower in Dec’s first round bidding exercise

The industry sector, which accounted for 59 per cent of Singapore’s greenhouse gas emissions in 2012, is expected to take most of the weight of a carbon price. The petroleum refining, chemicals and semiconductor sectors made up the bulk of these emissions. The largest refining and petrochemical complexes in Singapore are owned by Royal Dutch Shell and ExxonMobil.

Shell, together with five other European oil majors such as BP and Statoil, had during the run-up to the Paris summit in 2015called on governments to introduce a carbon price. This, they said, would discourage high-carbon options and help to stimulate investments in the right low-carbon technologies. ExxonMobil has said that it is supportive of a carbon tax. “We are committed to working with the Singapore government on this important issue to find solutions that help reduce greenhouse gas emissions while ensuring Singapore’s long-term competitiveness,” said an ExxonMobil spokesman, adding that the group is taking action to reduce emissions in Singapore through energy efficiency initiatives such as building cogeneration plants.

A price on carbon emissions – Graphic showing the two main forms of carbon pricing and its pricing in Asia. It is increasingly gaining favour with governments as countries around the world look for ways to cut greenhouse gas emissions.Photo: The Business Times

Carbon pricing can take either the form of a carbon tax which puts a price on each tonne of carbon produced, or an emissions trading scheme which uses market mechanisms to price carbon.

The Singapore government had indicated that carbon pricing is an option as early as in 2010. Then, Prime Minister Lee Hsien Loong revealed that the government already worked with a shadow carbon price.

Read also: First COE bidding exercise for 2017 ends predominantly higher

“If there is a global regime to curb carbon emissions and that means that Singapore will have to reduce our own emissions more sharply than we are doing now, in order to comply with international obligations, then we will have to make the carbon price explicit, to send the right price signals,” he said in a speech at the Singapore International Energy Week.

In the Climate Action Plan unveiled in July last year, the government said that it will be studying the need to price carbon to enhance energy efficiency efforts across all sectors.

“A carbon price would send appropriate price signals to encourage changes in energy consumption, provide market incentives for the adoption of energy-efficient technologies and low-carbon solutions, and stimulate growth in green industries,” said NCCS in the document.

But a carbon price will incur costs, including affecting Singapore’s competitiveness, it also noted. “Its overall impact will have to be studied.”

The shift in Singapore’s position comes as the idea of a carbon price increasingly gains popularity with other governments around the world. About 40 national jurisdictions and over 20 cities, states and regions are already putting a price on carbon, according to the World Bank.

Carbon prices range from about US$1 per tonne of carbon emissions in Poland and Mexico, to US$137 per tonne in Sweden, a report by the World Bank in October last year showed. In Asia, South Korea has started a national emissions trading scheme in 2015, while China aims to roll out a nation-wide emissions trading system by the second half of this year.

“A carbon price would send appropriate price signals to encourage changes in energy consumption, provide market incentives for the adoption of energy-efficient technologies and low-carbon solutions, and stimulate growth in green industries.”


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