SINGAPORE: I have been following with great interest the events surrounding Hyflux over the last few months. For many years, the company and its founder, Olivia Lum, were held up as examples of a successful home-grown company and an outstanding entrepreneur respectively.

That the company was in the water sector, a critical resource for Singapore and increasingly the rest of the world, was an added plus, when it implied the company was serving the nation and “doing good” while doing well.

NOT PRETTY

But somewhere in between its astronomical rise and the situation today, the wheels came off the wagon.

There is a good possibility that many bondholders will lose most of their investments in Hyflux and the company will exist in a reduced form – that is if it manages to survive and secure the necessary support from financial backers and key stakeholders for the proposed restructuring.

The situation is not pretty. Hyflux defaulting on its bondholders has been discussed extensively in the media. A recent report suggests that the PUB has also served a notice of default on Hyflux, for its potential inability to supply water.

Too bad, Hyflux. Water being a critical resource for Singapore is now a double-edged sword.

I will focus on the non-financial aspects of the Hyflux situation precisely because financial default is the most likely outcome of underlying strategic decisions. My intent is not to find fault with Hyflux’s decisions since hindsight is perfect, but to dissect the problems it faced to glean lessons for the benefit of Hyflux and other Singapore companies.

SHIFT TOWARDS OPERATIONS AND MAINTENANCE

A central premise is that over time Hyflux took on a greater amount of strategic complexity over time. Some risks of this greater strategic complexity may not have been factored in when decisions were taken while other risks only became apparent over time, because of an evolving environment.

READ: I am deeply saddened for the pain and loss suffered by investors, lenders – Hyflux CEO

Hyflux started with a simple strategy of focusing on being a water treatment specialist, which served it well over its first two decades. All seemed to pan out well in its favour, including listing on the Singapore Exchange, a remarkable feat considering its modest beginnings, and after-tax profits of S$59 million in 2008.

In fact, 2008 was also remarkable because the company was able to grow its sales by 188 per cent – from S$192 million in 2007 to S$554 million, helped by a five-fold increase in revenue from the municipal (or government) sector.

In its 2008 annual report, the company noted that Hyflux membranes and systems had been installed in more than 1,000 plants in over 300 locations worldwide, again an impressive achievement.

But someone in that giant corporation should have spotted obvious early warning signs. Revenue was geographically concentrated, however, with China and Middle East and North Africa (MENA) accounting for 54 per cent and 40 per cent of the total revenue in respectively.

By 2008, Hyflux started placing greater emphasis on its Operations and Maintenance (O&M) business instead of its traditional Engineering, Procurement and Construction (EPC) focus.

One advantage of the former was its stable revenue generation with contract duration of 20 to 30 years.

On the other hand, revenue chunkiness was a key disadvantage of EPC, because it means lumpy and unpredictable annual shareholder returns. So Hyflux began to see advantages in the former and maintained a portfolio of both O&M and EPC contracts.

The downside of chasing after O&M contracts was revealed in the recent news of PUB serving a notice of default on Hyflux. Unlike EPC contracts, where a project is handed off to the client who operates the plant (and hence bears all subsequent risks), O&M contracts would require Hyflux to continue to operate the plant.

If, for any reason, Hyflux’s ability to continue to operate the plant became impaired, given the critical resource that water is, the consequences for Hyflux would be severe.

READ: The Marina Barrage, a dream 20 years in the making, a commentary

TUASPRING THE STRAW THAT BROKE THE CAMEL’S BACK?

A major increase in strategic complexity occurred when Hyflux took on the Tuas Power project.

While the capital intensity of the Tuas Power project has been discussed extensively, the strategic implication was that taking on the business pushed Hyflux into a new market: Power generation.

Though there may be some synergies across the water-desalination and power projects, like many diversification decisions where perceived synergies may be emphasised more than the downsides in evaluating project risk, the risks in the power project may have been underestimated – or possibly even overlooked.

Two factors may have further complicated the risk assessment. First, the location of the Tuas Power project in its Singapore home market may have led to an underestimation of the risks because Hyflux was familiar with the context, unlike many of its projects which were in emerging economies that imply significant uncertainty.

Funding infrastructure projects in the latter category would also require political risk insurance, encouraging Hyflux to exercise project discipline.

READ: What Singapore can do to prepare for the next flood, a commentary

As later events showed, however, the Singapore Government can be a demanding customer. Failure to deliver on its commitments would probably imply a swifter penalty to be imposed.

Second, the deregulation of the power sector culminating in the Open Electricity Market may be another factor that exposed Hyflux’s power sector to the wild fluctuations of commodity prices. As luck would have it, the gyrations in oil prices have been more pronounced over the last few years.   

EROSION OF FINANCIAL HEALTH

While strategic complexity rose, a number of other factors were slowly but surely eroding Hyflux’s financial health. Its revenue was erratic — between 2012 and 2016, revenue fluctuated between S$321 million (2014) and S$986 million in 2016.

Clearly, despite greater emphasis on O&M, revenue had not stabilised. For an asset-based company like Hyflux, erratic revenue tends to have a disproportionately large impact on profits because costs are less flexible than revenue.

In fact, the earning per share showed a steady downward trend after 2012, before turning negative in 2016. Even in 2016 when Hyflux reported record revenues, profits were rather modest — in fact, they exhibited a decline over the years prior to 2016.

Through these years, Hyflux’s capital intensity rose with its asset base ballooning from S$2.1 billion in 2012 to S$3.8 billion in 2016.  The increased asset base was financed by issuing debt which carried a high interest rate and drained valuable cash.

Though Hyflux’s dividend per share peaked in 2010 at 4.77 cents, the company had to cut it drastically in 2016. Dividend payments would represent another drain on cash.

MIND THE RISKS

So, what are the lessons from the Hyflux story? The most important lesson is: Mind the risks. Diversification is an important growth strategy for many firms but is not a panacea when risk evaluations tend to overemphasise synergies and downplay risks.

Some of the risks also can become magnified over time — as borne out in the case of the power sector.

READ: Are Singapore businesses just not creative enough? A commentary

A second important lesson is about minding small changes in the environment that might cumulatively have a huge impact on your strategy and its viability.

A number of changes have taken place on top of the deregulation of the power sector that had huge impact on Hyflux, including fluctuating fortunes for economies in the Middle East, a key source of revenue for Hyflux before 2012 and reduced orders from Chinese customers, which used to be Hyflux’s biggest market.

Though each of these changes was not large enough to undermine Hyflux, their collective impact on Hyflux was substantial.

READ: For explosive growth, look to these two models of business, a commentary

A third and final lesson is about preparing for the worst-case scenario, especially when large, capital-intensive strategic projects are financed with debt.

Looking ahead, even if Hyflux is able to win a reprieve from bondholders, it faces the possibility of PUB taking over the plant because non-performance of a strategic plant may be viewed as a national security issue. 

One hopes this is not the end of the story for this rare Singapore unicorn.

Nitin Pangarkar is an Associate Professor in the Department of Strategy and Policy at the National University of Singapore (NUS) Business School. The opinions expressed are those of the writer and do not represent the views and opinions of NUS.

SINGAPORE: They had travelled from as far as Indonesia in the hope of watching Swedish metal band Watain play live, but some concert-goers were left bitterly disappointed after the band’s show in Singapore was cancelled, just hours before it was scheduled to take place. 

The Infocomm Media Development Authority (IMDA) had initially allowed the concert with a rating of Restricted 18 (R18), but called it off at the last minute, following advice from the Home Affairs Ministry (MHA). 

When Channel NewsAsia visited at 6pm, around 70 fans were milling about outside the concert venue, the EBX Live Space along Pereira Road.

“My money, rupiah, I spent so much money to get here,” said a fan from Bandung, who only wanted to be known as Ucox. 

Along with several others from Indonesia, he had only been told of the cancellation after arriving at the concert venue.

“We are just disappointed, that’s it … Their music changed my life. I wake up in the morning and I have new spirit for working,” he said. “It’s like somebody stabbed me in the back.”

Other Watain fans Channel NewsAsia spoke to said the perception of fans of metal music was riddled with stereotypes. 

Mr Jaarvis Ali, who had planned to head to the concert after work, said: “I don’t know where people get this idea that the people who listen to heavy metal are aggressive or that we worship Satan.

“Ask anyone in the scene. We are merely cat lovers coming together to enjoy good music, or at least what we believe is good. The worst part of it all is that the guys have been promoting this show for months with approval … this is just plain ridiculous.”

One of the concert organisers, who only wanted to be known as Khaal, said he was expecting a crowd of about 150. It cost about S$15,000 to S$20,000 to bring the band to Singapore.

“Everything was fine, we followed the rules and protocol,” he said. “We had everything solid and because certain things happened, it was cancelled.”

He said IMDA had called to inform him earlier in the day that the concert might be cancelled but only confirmed the cancellation later in the afternoon.  

READ: Swedish metal band Watain’s concert in Singapore cancelled due to “security concerns” 

“MHA has expressed serious concerns about the concert, given the band’s history of denigrating religions and promoting violence, which has potential to cause enmity and disrupt Singapore’s social harmony,” said IMDA in a statement.

Later on Thursday, Home Affairs Minister K Shanmugam confirmed his ministry had advised IMDA on the cancellation. 

He said that upon “further security assessment”, MHA “decided that in light of the responses that the band has evoked and taking into account of course the history which we know, it will be against public order interest and will affect our religious and social harmony if we allow the concert to go ahead”.

“My concern is about all those who travelled all the way here for the concert, it’s a total waste,” said Khaal. 

There are plans to offer refunds to those who paid for tickets, but this has not been firmed up yet, he said, adding that the parties involved were still in talks and IMDA was being “helpful” in the process. 

As of Thursday afternoon, an online petition calling for Watain and another group, Soilwork, to be banned from performing in Singapore had garnered more than 16,000 signatures. 

According to a Facebook event page, Soilwork’s concert is scheduled to take place at the same venue on Oct 29.

READ: Allowing metal band Watain to perform would affect religious and social harmony – Shanmugam

The Change.org petition was started by Ms Rachel Chan, who described the bands as “not (representing) the culture which we want in our youths”. It was addressed to Minister for Culture, Community and Youth Grace Fu.

“Their subliminal messages in their songs include death and suicide,” she added. 

Supporters of the petition commented online that the band “promotes violence” and “poisons our youth”.

But fans disagreed, calling Ms Chan an “extremist” and a “zealot”.

One fan, who did not want to be named, said: “What she’s done is ruin a lot of people’s experience because she simply didn’t agree with it.”

He told Channel NewsAsia he had paid S$166 for the concert and a meet-and-greet session with the band.

“If you are going to go on the charts right now … take any 10 songs and most of them will be about sex and drugs, and that’s somehow okay?” he added.

SINGAPORE: Aspiring hawkers on the incubation stall programme can look forward to longer rental discounts, Senior Minister of State for the Environment and Water Resources Amy Khor announced on Thursday (Mar 7).

The 50 per cent discount off rental rates for incubation stalls has been extended from six to nine months.

“This is to address feedback that more time is needed to establish their business,” Dr Khor said in her Committee of Supply speech in Parliament.

READ: New programme launched for aspiring hawkers

The incubation stall programme was launched last February to support aspiring hawkers in learning the ropes and in testing their business plans in a practical setting. Their stalls come pre-fitted with basic equipment to lower the start-up costs.

Since its launch, more than 50 applicants have applied for 15 incubation stalls, including the two newest stalls at Chinatown Market.

READ: ‘I don’t even cook at home’: Young hawker starts his career without any culinary experience

READ: ‘We have never taken a full salary as young hawkers’

CENTRALISED DISHWASHING SUBSIDIES EXPANDED

Existing hawkers who use centralised dishwashing services are also set to benefit from expanded subsidies under the Productive Hawker Centres grant.

The National Environment Agency (NEA) has been paying up to 70 per cent of stallholders’ centralised dishwashing fees for the first two years of adoption. The agency will now pay 50 per cent of the cost in the third year and 30 per cent in the fourth year.

Centralised dishwashing was introduced to reduce overall manpower needed for such services and table cleaning.

NEA said it is expanding the subsidies to further encourage stallholders to use a centralised dishwashing service, and to ease their transition towards assuming the full cost of the service. 

For the seven new social enterprise hawker centres, NEA had announced last November that the dishwashing subsidy will be extended to them, following a review of operating costs stallholders there face. 

In the case of social enterprise hawker centres, NEA will pay half of the dishwashing fees in 2019 and 30 per cent in 2020.

READ: Dishwashing subsidy extended to stallholders at new hawker centres: NEA

SEHC STALLHOLDERS WELCOME CONTRACT CHANGES: AMY KHOR

Social enterprise hawker centres (SEHC) came under the spotlight last year following complaints from stallholders about additional operating costs like dishwashing, tray-return and consultancy fees. 

There was also feedback about contractual terms relating to operating hours, termination notice periods, security deposits and other charges such as legal fees. 

The issues prompted NEA to review key contractual terms between stallholders and operators.

READ: Some social enterprise hawkers unconvinced by business model of packaged charges

READ: NEA suggests changes to contract terms between social enterprises, hawkers

“I visited all seven SEHCs to get feedback from the stallholders on the changes made and am pleased that the majority of stallholders have welcomed them,” Dr Khor said on Thursday. “We will continue to improve the model based on feedback from hawkers and other stakeholders.”

Seven out of 114 hawker centres in Singapore are managed by private social enterprises and cooperatives: Fei Siong Social Enterprise, NTUC Foodfare, Timbre+Hawkers, Hawker Management by Koufu and OTMH by Kopitiam.

READ: The Big Read: Grumbling and rumbling at social enterprise hawker centres — what’s the rub?

As of Jan 31, SEHC operators have organised a total of 18 feedback sessions with stallholders to “discuss feedback and brainstorm ideas” on improving the hawker centres, said NEA.

“All the operators are holding regular feedback meetings and will continue to gather the stallholders’ comments on stall operations through these meetings,” the agency added.

“Regular individual stall-to-stall engagement is also being conducted by NEA’s place managers to obtain insights and feedback from stallholders.”

Dr Khor also announced that the Government will help form two workgroups related to the hawker trade and culture. The workgroups will include hawkers, food advocates and representatives from various fields.

One group will explore ideas to attract and support new entrants to the hawker trade, while the other will look at encouraging graciousness and tray return habits.

SINGAPORE: Senior-friendly road safety features will be installed at 20 more locations islandwide, said the Land Transport Authority (LTA) on Thursday (Mar 7).

The areas, known as Silver Zones, will be located in residential estates such as Ang Mo Kio, Potong Pasir, Tampines and Yishun, and are expected to be completed by 2020.

Such zones feature narrower roads and speed humps to slow down oncoming vehicles, as well as two-stage crossings to allow elderly pedestrians to rest at the halfway mark. 

Since the scheme was first announced at the Committee of Supply debate in 2014, LTA has completed 15 Silver Zones. Statistics show that accident rates involving senior pedestrians at these zones have gone down by almost 75 per cent, LTA said.

During his Committee of Supply speech in Parliament on Thursday, Senior Parliamentary Secretary for Transport Baey Yam Keng said LTA will be working with the community to enhance the design of Silver Zones.

“Besides traffic calming features, there is also beautiful landscaping which makes every Silver Zone not only safer, but more beautiful,” said Mr Baey.

He noted that the Government has adopted “innovative solutions” to improve the zones, by testing three-dimensional markings at Whampoa Drive. The markings are intended to encourage motorists to reduce their speed because of the perceived narrower lane width.

LED road studs at zebra crossings were also installed at the zone to alert motorists to pedestrians at night.

“I urge all motorists to slow down and look out for pedestrians when approaching these areas,” said Mr Baey.

LTA said it intends to implement a total of 50 Silver Zones in residential estates by 2023. 

SINGAPORE: While Singapore respects Malaysia’s and Indonesia’s sovereignty over their airspace, discussions on air navigation arrangements must fundamentally be based on technical and operational considerations, Singapore’s Acting Minister for Transport Vivian Balakrishnan said in Parliament on Thursday (Mar 7).

Malaysia and Indonesia have expressed their desire to see changes to airspace arrangements in the region, Dr Balakrishnan noted. He maintained that any discussions on the matter must be for the purpose of enhancing safety and efficiency. 

“We are certainly willing to address their concerns. Singapore fully respects Malaysia’s and Indonesia’s sovereignty over their airspace. 

“At the same time, discussions on air navigation arrangements must fundamentally be based on technical and operational considerations, for the purpose of ensuring the safety and efficiency of civil aviation,” Dr Balakrishnan said during the Ministry of Transport’s Committee of Supply debate in Parliament.

He added that any changes to these arrangements, if warranted, must be done properly in accordance with the rules, requirements and decisions set out by the International Civil Aviation Organization (ICAO).

Singapore provides air traffic services over parts of southern peninsular Malaysia that is within the Kuala Lumpur Flight Information Region. This was an arrangement approved by ICAO in 1973. 

Last December, Malaysia indicated that it wants to reclaim its “delegated airspace” in southern Johor, citing concerns over sovereignty and national interest.

Malaysia had also raised concerns about the Instrument Landing System (ILS) procedures for Singapore’s Seletar Airport, saying that the flight path will impact developments and shipping operations at Johor’s Pasir Gudang.

Singapore, in response, said that the ILS simply puts on paper the existing flight paths, making safety rules clearer and more transparent.

READ: Singapore, Malaysia airspace dispute: What we know and timeline

Singapore’s Ministry of Transport had also said that the ILS procedures do not impose any additional impact on other airspace users as well as businesses and residents in Johor.

Indonesia, on the other hand, has repeatedly expressed its wish to take over control of the flight information region (FIR) above Riau islands, which has been managed by Singapore since 1946 as mandated by ICAO.

Singapore has repeatedly said that the FIR is not an issue of sovereignty, but of the safety and efficiency of commercial air traffic.

On Thursday, Dr Balakrishnan said the region has “benefitted greatly” from Singapore providing air traffic services from 1946.

“Through these decades, Singapore has been providing ATS (air traffic services) to the highest standards of safety and efficiency, in accordance with our responsibilities under international law, and ICAO’s standards and practices,” he told the House. 

Dr Balakrishnan noted that Singapore managed 740,000 flights in the Singapore FIR last year, about half of which landed at or departed from Changi Airport. The other half were overflights, many of which were to and from other airports in the region.

“The region’s aviation sector has benefitted greatly from these arrangements. This has been a win-win arrangement for the region, our neighbours and us,” said Dr Balakrishnan, who is also Foreign Affairs Minister. He is standing in for Transport Minister Khaw Boon Wan who is recovering from surgery.

“REASONABLE PROGRESS” MADE IN MARITIME DISPUTE TALKS

On the maritime dispute between Singapore and Malaysia, Dr Balakrishnan said discussions on the issue have made “reasonable progress” so far. 

“I hope to make some joint announcements within the next two weeks,” he added.

READ: Singapore, Malaysia maritime dispute: A timeline

Dr Balakrishnan stressed that the dispute will not affect the viability of Singapore’s upcoming Tuas Terminal.

“Development works are proceeding as planned, and there will be no impact to access for ships calling at the terminal in the future. I can assure that our security agencies will continue to be vigilant, and safeguard the sovereignty and security of our territorial waters,” he said.

HSR: NO PROPOSALS FROM MALAYSIA TO CUT COSTS

On the Kuala Lumpur-Singapore High Speed Rail (HSR) project, Dr Balakrishnan said Singapore has not received any proposals from Malaysia on reducing costs.

The two neighbours had agreed to a two year suspension of the project up to May 31, 2020, and Malaysia had requested that both sides discuss the way forward in the meantime, with the aim of reducing costs.

“We have yet to receive any proposals from Malaysia on this,” said Dr Balakrishnan on Thursday. ”We will study any such proposals carefully when we receive them. We look forward to working with Malaysia when the project resumes.”

READ: Malaysian government says it has remitted ‘abortive costs’ for HSR postponement: MOT

As for the Johor Bahru-Singapore Rapid Transit System (RTS) Link, Dr Balakrishnan said there could be further delays to construction, after Malaysia recently asked for another deadline extension, until Mar 31, to confirm its joint venture partner for the project to Mar 31.

READ: Johor Bahru-Singapore RTS link ‘not progressing well’, Malaysia missed deadlines: Khaw

The RTS project, which links Bukit Chagar station in Johor Bahru and Woodlands North station in Singapore, was meant to be completed by 2024. The service is no longer on track to meet the original target, Dr Balakrishnan reiterated. 

He said, however, that Singapore still believes that the RTS Link is a “mutually beneficial project”.

“I would like to reassure that we remain fully committed to implementing the project as per the RTS Link Bilateral Agreement,” said Dr Balakrishnan.

SINGAPORE: Designated priority cabins for “vulnerable” commuters will be piloted on one of the rail lines, announced Senior Parliamentary Secretary for Transport Baey Yam Keng on Thursday (Mar 7).

These priority cabins are meant for seniors, persons with disabilities and families with your children, he said in his Committee of Supply speech.

“Other commuters are encouraged to give way to them in these cabins, which will be located near the station lifts where possible,” said Mr Baey.

READ: ‘45-minute city, 20-minute towns’: Advisory panel outlines vision for Land Transport Master Plan 2040

As part of plans to make the transport infrastructure more user friendly for various segments of the society, a stroller restraint system will be progressively installed on all buses by 2020, after the one-year trial on service 69 in June 2017 received “positive feedback”, he said.

All new taxi stands will also be designed to be without barriers, he added.

As for those with disabilities, Mr Baey said the ministry wants to make information such as bus service numbers and bus stop destinations more accessible.

For instance, he said LTA started a trial this January on a mobile app – the Mobility Assistance for the Visually Impaired and Special Users (MAVIS) – that provides audio announcements both on the bus and at the bus stop to commuters with special needs. The trial started with three buses on Service 139, which serves the Enabling Village, but they will be redeployed to Service 141 in May as it serves the Singapore Association of the Visually Handicapped.

He said the ministry will consider users’ feedback and evaluate the feasibility of providing such assistive tech on more public buses.

This is in addition to the commitment to make all public buses wheelchair accessible by 2020, Mr Baey said.

Mr Baey noted that one of the strategies put forward by the Land Transport Master Plan advisory panel is to design an inclusive land transport infrastructure. Efforts on this front are already underway such as making all MRT stations and bus interchanges barrier-free.

The ministry also completed a five-year programme to add 200km of sheltered walkways to make walking to public transport nodes more convenient, he said. With more than 60 new MRT stations underway, another 100km of sheltered walkways will be added by 2029, said Mr Baey.

SINGAPORE: Commuters will be able to use their Mastercard contactless bank card or compatible mobile phone to pay for their public bus and train rides from April this year, with Visa expected to get on board “later this year”.

This was revealed by Senior Minister of State for Transport Janil Puthucheary during his Committee of Supply (COS) speech on Thursday (Mar 7).

Dr Puthucheary said the Land Transport Authority (LTA) had partnered Mastercard to test the use of contactless bank cards on public transport under the account-based ticketing pilot in March 2017.

This has been “successful” and LTA is now ready to fully launch the service under a new brand called SimplyGo.

“With SimplyGo, commuters will have the option of carrying one less card for transport, or maybe no cards if they are using their mobile phones, and not having to do card top-ups,” Dr Puthucheary said.

LTA said in a separate press release on Thursday that commuters can register for a SimplyGo account and link different contactless bank cards on the TransitLink SimplyGo portal or app. Participants of the pilot can continue to use the same Mastercard, it said.

Those with stored value cards, such as concessions cards, ez-link or NETS FlashPay cards, will be able to get the same convenience when they upgrade their existing cards towards the end of the year, it added.

Mastercard said in a statement after the announcement that it is “delighted” to be the first international payments brand to partner LTA for the launch of SimplyGo.

AUTONOMOUS VEHICLES TO CREATE NEW JOB OPPORTUNITIES

Dr Puthucheary also pointed to autonomous vehicles (AVs) as another area of technology that can allow the Government to potentially reinvent how land transport is provided and deliver better services through, for example, dynamically routed services.

It was previously reported that self-driving buses and shuttles will be introduced in Punggol, Tengah and the Jurong Innovation District in 2022. This vision came a step closer earlier this week when Nanyang Technological University and Volvo Buses launched a 12-metre autonomous electric bus.

It can also help create new job opportunities in the sector, he added.

ST Engineering, for one, is conducting a trial of autonomous buses and has partnered SBS Transit to deploy a few of its bus captains to be safety operators, Dr Janil said.

“While the widespread deployment of AVs is still years away, such trials give us an early sense of the requirements for the new job roles that will be created,” he said.

SINGAPORE: A new maritime drone estate will be launched to provide a conducive environment to test and develop applications for the sector, said Senior Minister of State for Transport Lam Pin Min on Thursday (Mar 7).

He said the Maritime and Port Authority of Singapore (MPA) and Civil Aviation Authority of Singapore will launch the maritime drone estate near Marina South Pier.

The close proximity to an anchorage provides a conducive space for test-bed and development activities, Dr Lam said in his Committee of Supply speech.

It will also serve as a regulatory sandbox for the development of rules and safety standards for maritime drone operations.

READ: Use of drones to detect defects on HDB blocks takes flight

He said the industry has already been active in this arena.

Companies such as Wilhelmsen and Airbus are trialling the use of drones to deliver goods from shore to ship, which will increase productivity and reduce manpower needed compared to the current method of deliveries by boat, he said.

The maritime drone estate is the second such zone announced here.

In Feb 2018, one-north was designated as the first drone estate in Singapore, and meant to facilitate the trial of unmanned aircraft systems (UAS) technologies and commercial uses in a controlled urban environment.

WATCH: Drone trials to take place at one-north

Dr Lam said the ministry will continue to create a supportive environment and explore deeper collaborations with the industry in the area of drones.

While the ministry facilitates more beneficial uses of drones, Dr Lam said it is “mindful” of the potential safety and security threats arising from its errant and irresponsible use as seen in the recent incidents at UK’s Gatwick and US’ Newark airports.

Drones flying near London’s Gatwick airport had grounded flights and caused mayhem among thousands of travellers flying during the Christmas period last year.

Meanwhile, flights into the Newark Liberty International Airport – the 11th busiest US airport – were briefly suspended after two drones were seen flying over the nearby Teterboro Airport.

Dr Lam said he had informed the House in January that Singapore has measures in place to deal with such threats, and the Transport Ministry works closely with its Defence and Home Affairs counterparts on such efforts.

That said, to ensure drones are operated safely, the CAAS is looking at strengthening the unmanned aircraft regulatory framework, which may include the mandatory registration of drones, he said.

The regulator had said last April it was reviewing regulations on unmanned aircraft and areas being looked at include operating guidelines, pilot competency and requirements for aircraft weighing more than 25kg.

SINGAPORE: Changi Airport’s mega retail and lifestyle development Jewel Changi Airport will open on Apr 17, Senior Minister of State for Transport Lam Pin Min said on Thursday (Mar 7).

The S$1.7 billion project, a 10-storey complex consisting of five storeys above ground and five basement floors will be home to more than 280 shops and food and beverage (F&B) outlets. 

Visitors can look forward to the return of fast food chain A&W, an 11-screen cineplex and a Pokemon merchandise store.

Speaking during his ministry’s Committee of Supply debate, Dr Lam said that on top of lifestyle offerings, Jewel Changi Airport will offer aviation facilities that will improve the travel experience for passengers, such as early check-in facilities, integrated ticketing and baggage services for fly-cruise and fly-coach transfers.

READ: Building the Jewel: A close-up look at the 9,000 pieces of glass used in Changi Airport’s upcoming project

Meanwhile, F&B brands that are setting up shop in the complex, and in the region for the first time, also include Swiss artisanal chocolatier Laderach, Norwegian casual seafood restaurant Pink Fish and American fast food chain Shake Shack. 

Jewel will also be home to a long list of homegrown brands, including design retailer Naiise, gallery store Supermama and Tiger Beer which will be launching a first-in-the-world Tiger Street Lab at level 5, offering exclusive seasonal brews.

Local chef Violet Oon will open her largest restaurant to date – more than 350 sq m in size – offering local delicacies, such as dry laksa.

TERMINAL 2 TO UNDERGO UPGRADING WORKS

In his speech, Dr Lam added that upgrading works on the airport’s terminal 2 will “start soon”.

He added that the terminal will be “expanded and refreshed”, and would include automated check-in kiosks, biometric-enabled bag-drops and automated immigration gates.

Dr Lam said the facilities are to offer passengers “greater convenience” as they move from check-in to immigration to their flight. 

The move comes after Terminal 4 was developed as Changi Airport’s first passenger terminal to have a fully automated departure process.

SINGAPORE: Minister of Education Ong Ye Kung recently announced this week in Parliament that the current approach to streaming will be phased out.

From 2024, students entering secondary school would no longer carry the labels of Normal Technical, Normal Academic or Express.

Instead, they will move forward unencumbered by fears of being pigeonholed or labeled a failure, and be free to focus on learning at their own pace in each subject. The traditional stigma associated with these labels will be removed.

Such broad-brush streaming – that assumes that a child who is low performing is unable to perform across all subjects – will be replaced by full subject-based banding, where students will take a combination of subjects at three different levels based on their PSLE scores: General 1, General 2 and General 3 (G1, G2, G3), with the latter being the highest level.  

When the new system kicks in, lower secondary school students will be allowed to take more subjects at a higher level – including subjects such as Geography, History and Literature, beyond the four PSLE subjects.

READ: From reducing drop-out rates to slaying a ‘sacred cow’: How streaming has evolved over the years

At the end of their secondary education, students will sit for a common national examination and receive a certification that reflects their G1/G2/G3 subjects.

Is this the panacea that will help relieve the stress surrounding education that society is hoping for? Or are we dumbing down examinations by catering to the broad middle?

STRENGTHS-BASED LEARNING

I distinctly recall giving up on Higher Chinese during my ‘O’ levels and didn’t spent time revising it at all. My rationale was that I would focus my limited time and energies on the subjects that I already did well in, namely Literature, Geography and English.

I also struggled with Additional Math throughout my third year, and was nearly forced to drop it entirely unless I pull up my socks.

Had this system been in place 20 years ago, I might have suffered less heartache.

Full subject-based banding provides greater flexibility for each child to learn at their own pace, depending on his or her strengths.

It will mostly benefit weaker students as it removes an invisible glass ceiling and allows every child to gain confidence in at least one subject area, instead of trying to buck up in weaker subjects and feeling like a failure all round.

Even for the child who is high-performing, the new approach may also combat the pressure of thinking that you have to ace every subject.

One research paper titled The Principals of Strengths-Based Education published in The Journal of College and Character states: 

Strengths-based educational models represent a return to basic educational principles that emphasise the positive aspects of student effort and achievement, as well as human strengths … A strengths perspective assumes that every individual has resources that can be mobilised toward success in many areas of life.

Such a strengths-based approach is more aligned to an individual’s natural way of learning. The confidence and growth gained in one area can have powerful ripple effects on a child’s outlook, motivation, and entire schooling experience.

READ: Parents, don’t shy away from a competitive education system, a commentary

LOWERING SOCIAL BARRIERS

As part of this new system, form classes will be reorganised and made up of children from different abilities and social classes. This is designed to address social stratification by allowing students from different backgrounds to get together in the same class.   

Form classes may be organised around students’ strengths in particular subject areas, project groups or CCAs.

Some parents may raise concerns that mixing Normal and Express students in one class can be disruptive. We may worry that our kids will come under negative peer pressure or be distracted in class.

However, such myths need to come under greater scrutiny. It is simply not true that all low-performing students are rowdy or difficult to handle.

Problematic classroom behaviours exist across the board. A teacher friend of mine observed that many of her weakest students are teachable, and some exhibit strengths in sports or presentation skills.

Furthermore, the students will move to the various classes according to their subject band. Teachers will still be able to teach efficiently and at the right pace.

READ: Let children take charge of their learning , a commentary

Seen in this light, full subject-based banding may actually kill a couple of birds with one stone.

Not only does it encourage mingling across social classes, which is something many Singaporeans feel uncomfortable doing unless placed in a situation where you need to work together, it also allows room for different academic strengths to develop and shine.

Lastly, it helps to reduce the stress on parents who want their children to do well in the PSLE and qualify for express.

That said, there may be a smaller percentage of parents who would see this as an impetus for their child to aim higher and distinguish themselves from the crowd – by entering the Integrated Programme that is only offered to the crème de la crème.  

LETTING SOME STRESS OUT OF THE SYSTEM

Incidentally, my second child will be in the pioneer batch of non-streamed kids, and I could not help but heave a sigh of relief while absorbing the news. 

He may be at a tender age of 8, but already I have observed that his strengths are not going to be in the languages, but likely in math and science.

Instead of artificially propping him up as an academic all-rounder by enforcing tuition and assessment books, I can now embrace the idea that he need not chase a particular cut-off score, but can focus on the areas he is good at.

As parents, we always wonder whether we are doing enough for our children’s education. But what is enough?  

The new system will remove some of the stress parents and children bear today, and hopefully fewer of us will feel like we are not doing enough for our young.

With a bit more breathing space all round, the home environment might just become a more pleasant one – one that is balanced with more time for play and bonding, and not just studies. 

On the flipside, some of us may wonder: We all went through a rigorous streaming system, so why can’t our children do the same? 

READ: Life Beyond Grades a worthy cause but be careful not to trivialise failure, a commentary

GRIT AND RESILIENCE STILL REQUIRED

Times have indeed changed.

In the past, we may have done well in terms of getting the right answers. But the brave new world calls for new skills, such as communication, collaboration, and problem-solving. It is not about getting the right answers, but asking better questions.

Does the new system allow for these skills to be honed and practised? Only time will tell, but introducing diversity in the classroom will surely give way for teamwork and empathy skills to be developed.

Considering MOE’s recent announcements on abolishing the T-score system and removing some tests at certain transitory years, this latest move continues to exemplify the Ministry’s resolve to reduce the emphasis on grades and to create a holistic education.

But does this automatically mean that parents will let up on the chase for grades?

While children will be free from carrying a label at an early age, their emotional resilience against poor grades or failure still needs to be built up brick by brick. And we, parents, teachers or other significant adults are the bricklayers.

A top performer who meets with his first fail grade can suffer in his self-esteem if grades are the only things he has ever been measured against.

A weaker student can fall prey to intense competition and give up, if he lacks parental support and has never heard an adult say, “I believe in you.”

As parents, we need to choose our response.

Streaming or no streaming, we still need to make a conscious choice to let go of our aspirations to see our offspring “succeed” in the narrow sense of the word, and allow them room to carve out and define their own version of success.  

This is the message behind the Education Ministry’s latest move: Every child has his own unique strengths and talents, and every child can succeed on his own terms.

It is now up to us to believe that and carry the same message to our children.

June Yong is a mother of three, an educational therapist and owner of Mama Wear Papa Shirt, a blog that discusses parenting and education in Singapore.