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            Mr Leong Horn 
            Kee, Dr Ong Chit Chung and Dr Loo Choon Yong raised various issues 
            on deferment, disruption, flexibility on call-ups for in-camp 
            training and the role of women for full-time National Service. 
            Recently, this House debated the issue of NS defaulters following 
            the Melvyn Tan episode. It was a useful debate because it allowed 
            MINDEF to explain the fundamental basis for National Service, it 
            also caused Singaporeans to examine what the SAF call NS-liable men 
            to service, and under what terms do we implement the Enlistment Act. 
            Let me summarise what Mr Teo has articulated. There are three 
            fundamental messages. First is that National Service must be for 
            meeting a critical national need of national security and survival 
            and to the nation. The second and third principles are universality 
            and equity in implementing the liabilities and duties of NS men. Why 
            universality and equity? Because otherwise it is very difficult to 
            impose this liability to Singaporeans. These same three principles 
            also govern our approach to issues related to deferment, disruption, 
            flexibility in call-ups and women in NS.  
            NSF 
            Deferment
 Let me first touch on deferment and explain the basis for deferments 
            that we have previously allowed and the recent changes that have 
            been put into place.
 
 Under the Enlistment Act, any NS-liable male can be called up for NS 
            as soon as he turns 18 years old. There is a reason for this 
            enlistment age. We should be clear that the SAF must be able to 
            maintain and project a credible force to achieve the critical need 
            to ensure our security and survival at all times. And it has to do 
            so with a conscript army because of our small population. In other 
            words when the button is pushed, who do we depend on? We depend on 
            ORNS men, they form the backbone of our SAF. Not only do we require 
            them to be trained to be soldiers and leaders within the two years 
            of NSF, they also play a critical role as operationally ready 
            soldiers during their remaining NS liability. For many, this means 
            that they are required to serve up to the age of 30 plus. By 
            enlisting them around 18 years of age, we optimise the ability of 
            the SAF to fulfil its missions with an energetic and able-bodied 
            defence force.
 
 Despite the legislated enlistment age and operational requirements, 
            MINDEF had exercised flexibility in the past by allowing some groups 
            of students to complete their studies before serving their NSF.
 
 MINDEF had granted deferment to those who could start their 
            full-time course of study before the age of 18 for local courses and 
            before 17½ for overseas courses, and this was assuming that such 
            courses would not last more than 3 or 4 years. Similarly, 
            pre-enlistees are granted deferment for ¡®A¡¯ levels and polytechnic 
            diploma courses if they are below 19 years old as at 1 January of 
            the year of commencement of the course.
 
 Such exceptions were workable if the majority of NS-liable males 
            entered into a few institutions with fixed starting terms. We could 
            predict quite reliably the proportion and number of students that 
            would be deferred. But educational opportunities have expanded 
            exponentially in the past few years. We now have a proliferation of 
            institutions with a variety of modules in Singapore. New compressed 
            integrated courses have also been introduced, so that students could 
            theoretically start anytime within the year. The opportunities to 
            study abroad and at different times of the year have also increased 
            as Singaporeans have become more affluent. Many more Singaporeans 
            would be able to start universities or other courses before ages 17½ 
            abroad or 18 locally.
 
 It is no therefore no longer tenable to grant deferments based on 
            past criteria. MINDEF has therefore decided to get back to basics, 
            rationalise our deferment policy based on operational needs and the 
            primary goals of National Service¡ªthis is a starting principle and a 
            fundamental one. In rationalising our policy, it was understood that 
            NS is a sacrifice which may mean that Singaporeans would have to 
            defer their university studies till after they have completed 
            National Service. We applied the key principles of universality and 
            equity to ensure that everyone within the same cohort would receive 
            more or less the same treatment in allowing them to attain their 
            educational qualifications.
 
 Therefore, MINDEF will only grant deferment for pre-enlistees to 
            gain their basic educational qualifications of ¡®A¡¯ levels, 
            polytechnic diploma, or below. This is reasonable as most of our 18 
            year old NS enlistees would either have completed their basic 
            qualification programme or are about to complete it. As university 
            degrees are considered higher educational qualifications, deferments 
            for university studies will no longer be allowed. This new policy 
            for deferments has been in place from the end of last year.
 
 Now, the vast majority of our enlistees will not affected by this 
            rationalisation. Our past records show that under the old previous 
            deferment policy, less than 100 a year were granted deferment for 
            university studies in the past¡ªthis is a special 100. Moving on, 
            this will no longer be allowed. For those affected, what it means is 
            that they have to serve NS like the rest of their peers before going 
            for their university studies. This is the norm, even for those who 
            do their pre-university studies overseas. More than 75% of those 
            granted deferment for pre-university studies in the past returned to 
            serve their NS before proceeding to university.
 
 As part of our rationalisation, ITE students will now be able to 
            proceed to undertake a polytechnic diploma course ¨C a basic 
            educational qualification ¨C before enlisting for NS. Even then, we 
            will only allow such deferments if they are below 20 years old as at 
            1 January of the year of commencement of the course.
 
 Now I know there are many NSFs with ITE qualifications who are 
            already currently serving in the SAF. We will allow early disruption 
            to all those who have completed their BMT to pursue their 
            polytechnic diploma in Apr 2006 or Apr 2007, provided that they 
            qualify for the deferment under the new policy.
 
            NSF 
            Disruption
 Now let me talk about disruption. Mr Leong, Dr Ong and Dr Loo 
            called for greater flexibility in granting disruption from full-time 
            NS for tertiary studies. Dr Loo asked, some of the members have 
            asked that disruption from full-time NS to be granted to all 
            scholarship holders.
 
 Let me qualify that disruptions not only affect the training and 
            operational readiness of the individual; it also impacts the unit as 
            a whole ¨C because the army fights as a unit. It will compromise unit 
            standards and its operational readiness. This is especially so 
            because the duration of NS has been reduced to 2 years.
 
 MINDEF therefore allows disruption only in selected cases and based 
            on the three principles. First it must be subject to the operational 
            readiness of their units not being compromised. For equity, we will 
            allow disruptions for those who are enlisted for NS in later intake 
            batches, so that they are able to start university in the same year 
            as their peers or of the same school cohort, who were enlisted 
            earlier. Now, let me give you a few examples so you can understand 
            what I am saying.
 
 For example, NSFs belonging to the same ¡®A¡¯ level or Polytechnic 
            cohort are typically enlisted over two intakes¡ªwe can¡¯t bring them 
            all because of the flow ¨C so they are split over two intakes due to 
            capacity constraints at the training schools. ¡®A¡¯ level holders are 
            typically enlisted in the December and March intakes¡ªthere are 
            basically two intakes, while Diploma holders are typically enlisted 
            in the June and September intakes.
 
 In each of these cases, MINDEF will allow disruption of up to 2 
            months to those who were called up in the later intake so that they 
            could enter university in the same year as those who were enlisted 
            in the earlier intake¡ªthe principle of equity.
 
 Allow me to illustrate this with an example because it can get quite 
            confusing. An ¡®A¡¯ level NSF enlisted in December 2005, will complete 
            his 2-year NSF liability in December 2007 and be able to commence 
            his university studies, if he wanted to, say in February 2008, if he 
            starts in an Australian university. But his classmate who was 
            enlisted in April 2006 will only complete his NS liability in April 
            2008. In other words, the classmate who was enlisted late and his 
            peers can now start university in February 2008. For such cases due 
            to different call up dates, MINDEF may grant a 2-month disruption to 
            pursue his university studies.
 
 However, MINDEF does not allow disruption to those who are trying to 
            start an overseas course or a local course one academic year ahead 
            of their male peers within the same cohort. This is the very example 
            that Mr Leong brought up. Mr Leong has suggested disruption of up to 
            3 months for tertiary education. Using the same example, we would 
            not allow disruptions for an ¡®A¡¯ level NSF enlisted in December 2005 
            to start university in September 2007. That would be unfair to his 
            peers of his cohort in Singapore who can only commence their studies 
            in 2008. It is in fact untenable. Because of the expanded choice of 
            universities both here and locally, almost all students could find a 
            place to start at some university earlier and apply for disruption.
 
 As for disruption for scholarship holders, only PSC scholars have 
            been given special consideration for disruption after serving 6 to 
            10 months of NS to do their university studies, before returning to 
            complete the remainder of their full-time NS. Now annually, only 
            about 30 are granted such early disruptions. This is not extended to 
            other scholarship holders as early disruption has significant impact 
            and needs to be minimised. Such special consideration is only given 
            to PSC scholarship holders as it is an important conduit for 
            bringing key talent into the Public Service.
 
            
            NSmen - Deferment for ICT
 Dr Loo asked for greater flexibility with regards to deferment for 
            In-Camp Training for NSmen. There is already a high degree of 
            flexibility and we have granted deferments for those who have just 
            started a new job or are getting married during the ICT. But for 
            operational reasons again, such deferment cannot be free for all. 
            Every NSman has a role to play and the unit is affected if he is 
            deferred from in-camp training. There is thus a need to strike a 
            balance between the inconvenience caused to the NSman by the In Camp 
            Training and the impact on the unit if the NSman is granted 
            deferment. The commander on the ground is in the best position to 
            make that judgement, and rightly so, because it is the commander who 
            is held accountable for the readiness of his unit. All requests for 
            deferment are therefore decentralised and put up to the unit 
            commanders for consideration.
 ¡¡
 
            NS 
            for Women
 Dr Loo also asked for women to be called up for NS in non-combat 
            roles. As stated by our Minister before, we currently have no 
            operational need for women conscripts to serve in the defence force. 
            NS, yes, must be for the critical need of security and survival. 
            While National Service can help in national education and character 
            building, these are not sufficient reasons in themselves to call up 
            women for NS. Dr Loo will also be interested to know that indeed 
            there are volunteers, women volunteers in the SPF as well as the 
            Civil Defence. There are presently about 5,666 volunteers out of 
            which 36% are women.
 
            
            RECORD IV
 Mr Chairman, let me now move on to
            
            Record IV, and I have spoken at length on how MINDEF balances 
            its operational and training requirements. All male Singaporeans are 
            called to serve National Service. Despite many competing demands for 
            their time, our national servicemen understand the need for NS and 
            have remained committed in fulfilling their duty to the nation.
 
 I am therefore happy that the Government and MINDEF has accepted the 
            key recommendations put forth. We have circulated the report, but I 
            won¡¯t go into details. As Dr Loo had said, it¡¯s not quid pro quo to 
            register our thanks. It is a simple way of saying thank you for all 
            their sacrifices.
 
 The key recommendation was to give more to NSmen in the next surplus 
            sharing exercise. This additional sum is called the
            
            40th Anniversary NS Bonus and is part of the ¡®Progress Package¡¯. 
            The Prime Minister has announced details of this in his budget 
            speech. This is a strong recognition of the role our NSmen have 
            played in the defence of Singapore.
 
 We have also announced several other RECORD IV recommendations that 
            the Government has decided to implement immediately. This includes 
            the Operationally Ready NS Completion Award, where NSmen who 
            complete their training cycle from 1 January this year will receive 
            a monetary award of $300. The first payment will be made in April 
            2007. Thereafter, MINDEF will give this award on an annual basis to 
            those who complete their training cycle in the previous work year. 
            The Prime Minister also announced that the Government has agreed to 
            the additional tax relief of $2,000 for NS key command and staff 
            appointment holders.
 
 MINDEF has accepted RECORD¡¯s recommendation to relax the Mindef 
            Notification Centre requirement. Currently NSmen who go overseas for 
            24 hours or less are required to notify MINDEF of their trip. 
            Henceforth NSmen who have already completed their Operationally 
            Ready NS training cycle and have been phased into MINDEF Reserve 
            will now be exempted from MNC notification, even if they are below 
            the statutory age.
 
 MINDEF has also agreed to relax exit control measures for full-time 
            national servicemen. Currently, NSFs are required to apply for an 
            Exit Permit whenever they travel overseas, regardless of the trip 
            duration. With the change, they will be required to apply for Exit 
            Permits only for overseas trips of 3 months or more.
 
 MINDEF will also improve the convenience of other exit control 
            measures recommended by RECORD. As these changes to exit control 
            take time to implement, details will be announced in the next 4 
            months or so.
 
 We also strengthened the Total Defence effort and as a start, the 
            role of the Advisory Council for Community Relations in Defence will 
            be expanded to engage more Singaporeans in Total Defence.
 
 In the area of recreation, RECORD IV has recommended that a SAFRA 
            clubhouse be developed in Jurong to cater to the needs of NSmen 
            living in the West, this has been accepted. In addition, the 
            committee has also recommended that the existing Toa Payoh clubhouse 
            be upgraded so that it remains relevant and attractive to NSmen and 
            their families. SAFRA has agreed to the recommendations and will 
            announce its development plans in due course.
 
 By fully accepting all the RECORD IV recommendations, we hope to 
            underscore again the Government¡¯s and the people¡¯s appreciation of 
            the role of National Servicemen and the contributions they have 
            made. They are the bedrock of our defence. They remain as critical 
            as ever in light of the changes in the security environment.
 
            
            Research and Development
 Sir, let me now address the comments raised by Dr Teo Ho Pin on 
            defence Research & Development.
 
 Key Functions of DSTA and DSO
 
 Apart from its key function of acquiring systems to meet the 
            SAF¡¯s requirements, the Defence Science and Technology Agency, or
            
            DSTA, undertakes R&D in building protection and developing 
            critical real-time command and control (C2) systems for the SAF. It 
            also manages the defence R&D budget for MINDEF by investing in 
            promising R&D activities with potentially high payoffs for defence 
            in the
            
            DSO National Laboratories, our universities, our defence 
            industry and other research institutions.
 
 It is DSO which does the bulk of our front-end defence R&D. It 
            undertakes R&D to sharpen the cutting-edge for our defence in areas 
            such as sensors, electronic warfare, guided weapons, information 
            systems, and chemical and biological defence.
 
 Delivering High-Payoff Capabilities For The 3G SAF
 
 An excellent illustration of how our R&D capabilities have 
            multiplied the fighting capabilities of the SAF is in the 
            development of the combat management system (or
            
            CMS for short) for our
            
            frigates. The ship may have been designed and developed in 
            France but the CMS, which is the brain of the ship, was developed 
            locally by our own defence scientists and engineers from DSTA and 
            DSO. This Combat Management System fuses the information from the 
            myriad of combat sensors, evaluates the threats faced by the ship 
            and matches the appropriate weapons to neutralize any threats. The 
            CMS enables the commander to make superior decisions to deal 
            decisively with any operational situations. Without it, the 
            commander would have required a much larger crew, taken much longer 
            to understand the situation and decide on the appropriate response, 
            and thus put the ship and its crew at greater risks. The force 
            multiplying effects of a system like the CMS is therefore clear. And 
            this also helps to explain why we are able to reduce the ORNS full 
            time national service from 2½ to 2 years.
 
 DSTA also works closely with our defence industry to produce 
            platforms and capabilities to meet the unique requirements of the 
            SAF. Some examples of such successes are the
            
            Bionix vehicle, the
            
            Primus self-propelled howitzer and the
            
            Pegasus Lightweight howitzer.
 
 These products, together with the CMS of our stealth frigates, are 
            but some of numerous high-payoff capabilities which has made 
            possible for the transformation of the SAF into
            
            3G SAF. Such capabilities have resulted in sensors and weapon 
            systems which are more effective and better networked, resulted in 
            platforms and combat systems which have better survivability, 
            enabled our commanders to have better situation awareness and make 
            better decisions, and enabled our soldiers to enhance their combat 
            effectiveness.
 
 R&D Is A Long-Term Investment
 
 Sir, defence R&D is about building up expertise in our people 
            and building up intellectual capital. It is a long-term investment 
            therefore, we have commited about 4% of our defence budget to 
            defence R&D and a further 1% to experimentation of new operational 
            concepts.
 
 Commercialisation Is Not The Primary Focus
 
 Dr Teo also asked about whether there are plans to commercialise 
            the output of our R&D efforts. Let me just say that the primary 
            purpose for us to undertake defence R&D is to create knowledge and 
            build up new defence capabilities. While there are dual-use 
            technologies that we have built up that have commercial potential, 
            we have indeed explored commercial opportunities for them.
 
 Examples of technologies that have been licensed to commercial 
            companies include a portable biochip system to detect pathogens, 
            originally developed jointly by DSO and NTU for biodefence, and an 
            intelligent information search and analysis software developed 
            jointly by DSO and a US research institute. A consortium comprising 
            of DSO, NUS and two A*STAR institutes had also successfully 
            developed a multi-layer substrate packaging technology that can be 
            commercialised. However, in pursuing such commercial spin-offs, we 
            are mindful that our engineers and scientists must not be distracted 
            from their primary mission of defence R&D.
 
 We have to rely upon our defence industries to produce the 
            commercial spin-offs. Indeed, ST Engineering now earns more revenue 
            from their non-MINDEF work than they do from MINDEF. But ST 
            Engineering would not have the capability to successfully win non-defence 
            contracts if not for the core competencies they have built up in 
            developing systems for MINDEF. For example, ST Engineering has made 
            breakthroughs in selling C2 systems to customers in Hong Kong in 
            recent years. Its C2 capabilities grew due to C2 work done for 
            MINDEF.
 
 In summary, we have strong capabilities, R&D capabilities, strong 
            R&D capabilities in DSTA and DSO to ensure that SAF¡¯s unique 
            requirements are met. Commercial spin-offs will be generated as and 
            when there are opportunities.
 
            R&D 
            is a Long-Term Investment
 Sir, defence R&D is about building up expertise in our people and 
            building up intellectual capital. It is therefore a long-term 
            investment. Today, we commit about 4% of our defence budget to 
            defence R&D and a further 1% to experimentation of new operational 
            concepts. This is a necessary investment to ensure that the SAF is 
            at the cutting edge, and sustain it.
 
            ¡¡ 
            ¡¡ Source:
            www.mindef.gov.sg News 
            Release 6 Mar 2006 
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