Augustine H.H. Tan
Singapore
“There are instances when reserves should be used, but the govern- ment has to make a case to the President and if good arguments are used, the President is expected to concur. I therefore end by asking you, as you have done in your speeches, to support this Bill with a very loud "Aye" when it comes to the vote. [Applause].”
“We must have confidence that in the end, as Singaporeans, we know what is overall best for ourselves. We are a community of free citizens committed to making Singapore a great city to live in and for foreigners to come visit and admire.”
“There is such a thing as initiative. Who initiated the project? What was the objective of the project? And there is such a thing as economies of scale, the benefits of which are passed on to the taxi drivers. Let us not forget those elements. An hon. Member: They do not pay tax on their income.”
“They can still enjoy the seafood regardless of the indigestion. They can do the shopping and do other things in Johor Baru. I believe that what is important for us is that we do not preclude ourselves the option of setting our own national policies.”
“Mr Speaker, Sir, the Minister stated that it is undesirable to employ foreigners to run child care centres because they affect the values of our children. Is it not also true that by having foreign maids in our homes that they too directly impact upon the values of our children?”
“It was a point which I brought out much earlier when a similar matter was debated here in Parliament. Because the government could borrow on the basis of the reserves even though the President has one key to the reserves because there is such a thing as credit-worthiness of the country.”
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“Sir could not the Minister of State produce figures to show the proportion of acceptance to rejection of applicants for work permits for multinational companies, against those for the local companies?”
“Alternatively, Sir, NTUC Welcome might have imported the rice directly at lower cost, but then, Sir, comes the question. If they could have imported the rice at lower cost, why could they not pass the benefits of the low price to the consumers direct? Why set up this Fair Price business and have higher prices for everybody? Why try to tell the consumer clubs, "Raise your prices", so that they can compete? Why maintain a system at the expense of the consumers? Now, Sir, they want to take me to court. They challenge me to clarify outside so that they can take me to court. Sir, I know, and I tell you Members in this House: I do not have enough evidence to pin it legally on the NTUC Welcome. I have only circumstantial evidence, but if anybody challenges me any further, the exact details of these minutes, confidential or not, will be made available to this House. Thank you, Sir, for your indulgence. 3.01 p.m.”
“In a court of law, Sir, I know that I cannot pin the blame on NTUC Welcome, but in this Chamber, with the privilege which Members have, I must raise it as a matter of public interest. This is my inference, and I ask the public and the Members of this House to examine for themselves whether this inference is warranted, given the facts of the matter. Sir, that is not the end of the story. At that time, that was in May, the price differential, as I said, was as much as 60 to 70 cents. The mark-up that the Whampoa Consumers' Club was putting on the price of rice varied between 4% and 6%. Shortly after that meeting we had to reduce our mark-up, and in spite of a reduction of our mark-up to about 3% to 5% we have only been able to maintain a price differential of 10 to 15 cents. Something funny is going on, Sir. I ask myself a number of questions. Has Intraco been supplying rice at a lower price to NTUC Welcome than to the consumer clubs? Just think of it, Sir, they tried to get us to raise our prices. We refused. Might they not have jacked up the price of delivery to us and maintain a lower price to NTUC Welcome so as to allow them the differential? I am not being unduly suspicious, Sir. I just go on the facts. What are the facts? We maintain a margin of 3% to 5%. NTUC Welcome has been offering under the Fair Price Shop system a 5% rebate on the rice which they are supplying to the retailers. If they were getting rice from Intraco at the same cost as we were, how could they pay the 5% rebate? How could they also pay an annual 5% rebate to the customers of NTUC Welcome? How could they pay for their overheads with the usual mark-up that they would have to make? Something funny is going on.”
“Mr Speaker, Sir, I crave your indulgence to reply. Sir, I have been challenged both inside and outside the House to clarify my statement which I made last Wednesday here regarding NTUC Welcome and the price of rice. Sir, there was a meeting held at the Ministry of Finance conference room on 2nd May, 1978. The meeting lasted between 2.30 pm and 3.50 pm. The representative at the meeting were people in the Department of Trade, headed by Mr Ridzwan Dzafir who was Chairman of the meeting, two representatives from the AUPE Multi-Purpose Cooperative Society, Kreta Ayer Constituency Consumers' Service, PAP MacPherson Branch, two representatives from the NTUC Welcome Consumers' Cooperative, namely, Mr Low Lee Yong and Mr Ho Siang Ow. Queenstown Consumers' Club, Singapore Port Workers' Club, and Whampoa Consumers' Club. Mr Speaker, Sir, I would give you the gist of the meeting, but if anybody were to challenge me any further, in the public interest I will release the full minutes of the meeting (confidential or not) to this House. The purpose of the meeting was to "suggest" to the consumer clubs and cooperatives that they should maintain uniform prices with NTUC Welcome supermarkets. That sounds fine, until one stops to ask: were the prices all that different, and in what directions were they different? The price differential was as much as 60 to 70 cents per 12 kg of rice of various grades, and the differential was against NTUC Welcome. The whole purpose of the meeting was to get the consumer clubs and cooperatives to raise their rice prices to the NTUC Welcome levels. I do not know who instigated the meeting. I do know the meeting was held at the Department of Trade. I do know who was the beneficiary of the meeting, namely, NTUC Welcome.”
“Mr Speaker, Sir, what a relief to know that we are not all dying at that rate. ADJOURNMENT MOTION With the consent of the Speaker and the general assent of Members present, Motion made, and Question put. Resolved, "That, notwithstanding the Standing Orders, this House do adjourn at 4.30 p.m. today." - [Mr E.W. Barker]. PRESIDENT'S ADDRESS Debate on the Address (Second Allotted Day) Order read for Resumption of Debate on Question [10th January, 1979]. 'That the following Address in reply to the Speech of the President be agreed to:- "We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the opening of the Second Session of this Parliament.".'. - [Dr Lau Teik Soon] Question again proposed. 2.35 p.m.”
“Other new measures are mentioned in the other Addenda, such as the Defence Addendum which mentioned the recruitment of women into the regular service in future. This will give the women a better opportunity to serve the country. The Labour Addendum mentioned the intended changes to the Workmen's Compensation Act to give families of the workers a fairer and speedier compensation. This is, of course, a good measure. However, the Public Utilities Board Addendum has mentioned about the intention to readjust tariffs for gas, electricity and water. This causes worry to many people. I hope this measure will not be implemented in the immediate future so as not to increase the burden of the consumers. Sir, I support the Motion. 4.49 p.m.”
“This will enable us to employ all those young people who enter our labour market every year, and to raise our living standards. Only when world trade is increased and only when our goods and services can compete on the world market, will we be able to achieve such objectives and, provided we are competitive enough we may not achieve them. I agree with what the Minister has said that at present our world is a very competitive one. For self-interest, many countries have imposed protectionism and heavy tariffs against importing goods from developing countries. This causes a blow to developing countries with their incipient industries. Therefore, in order to remain competitive and for our survival and development under this stark reality, we must raise our skill and productivity with diligence and correct work ethos as well as provide good services and expand our market. Only then can we overcome our problems and achieve our targets. The Minister in his Addendum has said that our target in the coming year is to get a total investment of $450 million from abroad. His ambition is worthy of praise. However, I feel that in addition to seeking investments from abroad, we should also encourage domestic investments and try to get our capital from domestic sources. In fact, we are not short of domestic capital. This could be seen from the over-subscriptions of Government bonds raised. How are we going to encourage investment from domestic capital? I feel that the wise Minister will be able to formulate good measures to attract our entrepreneurs, commercial and industrial capitalist to contribute their best towards our economic prosperity.”
“There are two prerequisites for the achievement of these objectives. Firstly, there must be adequate funds so that we can do whatever we have planned to do. On this point, the Acting Minister for Culture's announcement on the setting up of a Cultural Foundation is worthy of praise as this is a timely measure. Secondly, there must be a comprehensive scheme or programme and that bold steps must be taken to nurture artistes. The Ministry of Culture should recruit experienced artistes to fill up the permanent posts so that they could formulate long-term policies and programmes. The recruitment of artistes and those with talent should not be on an ad hoc basis. Since the Ministry of Culture has taken very energetic steps in the promotion of our cultural and artistic activities, it should regard the task of setting up a cultural centre as a pressing need. With the establishment of this cultural centre, we will be in a better position to promote the various kinds of cultural and artistic performances, such as dramas, dancing and musical concerts, etc. so that the flowers of culture and art may bloom abundantly and so enrich the spiritual lives of our people. In the Addendum on the Ministry of Finance, the Minister has mentioned about how to attract foreign investments, how to develop industries, trade and tourism which are all constructive measures. These measures show their unique characteristics, namely, the continuance of a policy of diversified economy. In fact, this viable economic policy is an important factor which will preserve our economic growth and stability in the coming years. The Minister points out that in the coming years our target is to achieve a 6-8% actual economic growth rate per year.”
“Mr Teong Eng Siong (Sembawang)( In Mandarin): Mr Speaker, Sir, the President in his Address on the 26th December, 1978, highlighted three important aspects. Firstly, the international economic order and its repercussions on Singapore. He said that, barring an economic recession, we should be able to maintain a 6-8% economic growth. This is indeed encouraging news to the people in Singapore. Secondly, the conflict between Vietnam and Kampuchea and its serious implications on the security of Thailand and other Southeast Asian countries. Thirdly, the nurturing of a young political leadership. The President pointed out that what is decisive is the quality of the political leadership. It goes without saying that this remains an important task for the Government over the next few years. The President in his speech made a very accurate analysis of the new situation we are facing. This speech should be studied by all the people in Singapore in order to understand what we will be confronted with. In the Addendum, the Acting Minister for Culture said that the Ministry of Culture would follow a policy of allowing the rich cultural heritage of the various cultures in Singapore to interact and blend into a distinctive Singaporean culture and that the Cultural Activities Section would be enlarged and formed into a Cultural Division thereby broadening the scale of activities. This shows that the Ministry of Culture will take positive steps to develop the traditional cultures and arts of the various communities so that further encouragement will be given to help them develop cultural and artistic pursuits under the aegis of the Ministry of Culture. However, this takes time and it is not easy to achieve such objectives.”
“There is a big contrast. These three matters which are of a serious nature are being confronted by the students who, we hope, would be "the future leaders" Physically and mentally, in addition to the stigma attached to the rest of the 92%, the parents, teachers and schools will be affected. Full day schools will be introduced from 1980. I hope the Ministry will bear in mind yet another priority, in fact more important, and that is a smaller class. In the meanwhile, it is odd that no mention has been made in the Addenda with regard to the problem of two-year courses and three-year courses for pre-university students. For all the schools in our State, the inculcation of Asian values is of vital importance. In line with this policy, I feel it is important for the Ministry in charge to examine the following possibilities:- (1) That the teaching of literature and its elements be included in the Malay Language papers to the extent of, say, 20 to 30%. (2) That Secondary 4 students be permitted to take Malay Literature by providing Literature classes in Secondary 3 and Secondary 4. This means that they have two options, either English Literature or Malay Literature. So, this means that our students in addition to knowing Shakespeare, Chaucer, Milton and Pope, would also know about the works of authors in this part of the world. (3) There are several non-Malay schools which provide religious instruction. I think the Ministry of Education should consider giving religious instruction once a week for one period from 12.15 pm to 1.00 pm for afternoon session pupils, and 1.00 pm to 1.45 pm for students attending morning session. In full day schools, they can be held at the end of the day's lessons or at the commencement. 4.40 p.m.”
“Yet another instance is when the Ministry of Education appointed Vice-Principals at the eleventh hour followed by a press statement to the effect that the appointments were so designed that the teachers would not shirk their responsibilities in their old schools. This reflects a contradictory attitude. Whilst, on the one hand, there is a show of confidence in their new arduous assignments, on the other, there is, as if, a lack of faith in the teachers concerned to discharge their duties, and thereby the need to ensure that they dispose of their obligations first. Coming back to the problem of these nine schools, I believe this course of action has been resorted to in the absence of other alternatives, because if there were, the Ministry would not have taken it. There are three important factors. (1) Streaming is pernicious from the viewpoint of seeking knowledge particularly in the field of education at schools. (2) Streaming also means that the Ministry has concluded that the zenith of mental development of man on the average occurs between the ages of 12 and 13 years. There must, of course, be relevant data in the Ministry from doctors concerned which have been examined by the Ministry. Yet, from the experience of successful pupils, there are two important classes in school - Primary 5 and Primary 6. A pupil, who has completed Primary 5 can be promoted to Primary 6 and finish his PSLE. For a secondary school pupil who has completed Secondary 3 and proceeding to Secondary 4, there is a possibility that he will complete his 'O' level. (3) Immersion class held everyday for two hours at another school requires extra physical and mental alertness for these pupils. It should be reminded that they are poles apart when we compare the immersion class with a full day school.”
“, (1) engraved boats and sampans. (2) open spaces for sepak takraw, top-playing, kite-flying and other games, e.g., Chinese chess, chess, draught, etc. (3) bands and other musical shows. The announcement by the Minister for Culture on the establishment of a Cultural Foundation is most welcome. The response to it is also most encouraging. This is more so with the proposed establishment of a cultural complex and plans to coordinate the activities of cultural bodies whether Government, quasi-Government or individuals. I suppose the Cultural Activities Section will have more work. I feel the time has now come for a Cultural Coordinating Council to be established and to be chaired by the Minister himself to co-ordinate cultural activities so that they can truly reflect the aspirations of a multicultural and a multilingual society. Finally, I would like to touch on education. Every action has a reaction. What has to be borne in mind in proposing something is our approach. A good proposal but one which lacks a good approach does not end up well. On the other hand, a proposal that is less favourable but carried out with a good approach will bring forth good results. This instance is glaringly seen in the steps taken by the Education Ministry when it announced the streaming of the best 8% of our students to the nine selected schools. In the context of a reaction to every action, we find several anomalies in the proposal that is hotly being debated at present, for example, (a) the announcement that future leaders will come from these schools, and (b) stressing the label of "Super School" itself. I feel that such words have distorted the situation and thus the atmosphere of uncertainty has been aggravated.”
“" A dictum which I feel is most appropriate at a time when people are very conscious of their health is that "even with a stomach complaint they go to the A & E." We hope that with health education we would be able to bring the society to better appreciate problems concerning life and death. I am also interested in the Minister's statement that from 1973 to 1977 hospital admissions for mental illness increased by 56% and that psychiatric outpatient attendances increased by 121%. I feel that the Minister concerned also knows the details in respect of this matter, e.g., (a) the patients' age group; (b) their occupation; (c) the background - in detail if possible - to their present state of health. A knowledge of details of the cases is very relevant to successful treatment. To prevent any further increase in the number of these cases at our hospitals, e.g., Tan Tock Seng, Toa Payoh, Alexandra, which will be undergoing a major programme to improve buildings and facilities, I hope this improvement will include a better environment, as this is very essential to good treatment, including pollution control. With regard to pollution control, we are anxiously awaiting the pollution control work to be carried out at the Singapore River, the Kallang Basin and other catchment areas. For example, one day the Whampoa River will be improved to such an extent that small boats and canoes will be plying up and down the river amidst an attractive and beautiful environment for recreational activities and pleasure. This I will not deny. On the other hand, this is something which the Ministry can think of. I would, in fact, like to say something more than this. Apart from the place being planted with trees and shrubs, cultural and artistic activities can also be included, e.g.”
“The number of units to be allocated should depend on the needs of each constituency. If this is considered too elastic, I wish to propose that it should not be less than three units for each constituency. This is very essential because the close proximity of community halls will further facilitate the work of bringing the people together, particularly the aged residents, in places where they can mingle freely, and not confine themselves in their flats minding their own affairs. We certainly wish to see our, senior citizens imparting their wealth of experience through the community centres and community halls nearest their homes. In this way, continuity of living at an advanced age and maintaining posterity can be well preserved. Talking about old people - we will all be amongst them - I would like to suggest to the Ministry of Finance to review the question of pensions, bearing in mind the ever-increasing cost of living. I am told that a survey was carried out in 1969 and ten years have now elapsed. Please give attention to this matter. The time has come for some sort of a scheme to be drawn up so that the rates of pensions are not fixed, in contrast to the ever-increasing cost of living. I am also of the view that it is immoral to ask pensioners to pay income tax on the monthly pensions they receive. They should be exempted from paying income tax, just as they are exempted from paying for treatment at Government clinics or hospitals on the strength of their medical benefit cards. The Ministry should at least consider extending such a concession to them. Touching on hospitals, I am very happy with the statement of the Health Minister that "Health education must be made universal like literacy.”
“It is therefore welcome to note that the Ministry of National Development, which has a big role to play in the physical improvement of Singapore, has measures to improve the flats that are now under construction; for instance, the provision of "larger floor areas, higher ceilings, more lifts and better finish." As a flat dweller, I can say that a higher ceiling makes the flat look bigger. If the ceiling is low, the flat seems to be smaller than it is. In addition to these observations, there are a few matters on maintenance which require to be looked into. For instance, (a) there is no need to wait for five years before repainting the flats, if it is apparent that a block of flats is loathsome dirty, like slums exposed to the elements. (b) Structural defects, through no fault of the occupier, have been discovered. Sewerage should be made the particular responsibility of the Ministry. No householder wishes to tarnish this vital aspect. (c) Then there are instances of broken window glass louvres. Although this is a small matter, I think it is very important. I feel that the Ministry can initiate a survey on this matter and try to undertake repair work simultaneously for one block and/or area, thereby reducing the cost of repairs to the occupier. Incidentally I hear that the cost of a single glass louvre is about $20 to $30. Meanwhile, statistics show that by 1980 about 70% of the population of Singapore will live in flats. Although community centres have been built in constituencies, the Member of Parliament concerned is also provided with the additional facility of using the void deck as a community hall. I hope the allocation of only one unit for each constituency can be relaxed, and leaving its discretion to the MP.”
“This works out to 22,770 deaths due to both causes in 1977. Yet only a total of 11,955 people died as recorded in the Bulletin of Statistics. 4.21 p.m. Encik Sidek bin Saniff (Kolam Ayer)( In Malay): Mr Speaker, Sir, I rise to fully support and thank the President for his succinct Address. The Address has highlighted the factual state of affairs facing us. After a close scrutiny of the Addenda to the Presidential Address, on the whole a conclusion can be arrived at - that every Ministry has outlined its programmes as best as it possibly can for the comfort and well-being of the people and for the image of the nation in the international arena. For example, the expected 6 to 8% real growth can, with one stroke, act as an impetus to all the people of Singapore to be gainfully employed, particularly the youths, because we know that hard work is a very important ingredient not only for self-improvement but, in the final analysis, it results in the stability of the nation, besides depicting the character and quality of the society of the nation. It is consonant with one of the objectives of the Ministry of Labour to develop a good work ethos and increase productivity. We also await the matters to be raised when this Ministry re-examines or reviews the Employment Act. In this respect, I think we cannot erase the shadow of Spyros. Every year, hopefully, the standard of living of the society will rise and with it the life-style will also change. The one-room flats are not so popular. With both parents, sons and brothers working, people have become choosy and they are not contented with just "so long as I have it".”
“If I may now turn my attention to the Ministry of Social Affairs, it is encouraging to note the new initiatives being undertaken, particularly to help the aged and the chronic sick. It would be helpful, however, to have an idea of the quantitative needs for homes for the aged and chronic sick and how the Ministry intends to meet the demand. If filial values have indeed been eroded, then the Ministry will have an uphill task re-educating the younger generation. A contingency plan to meet the needs of the aged abandoned by the younger generation would appear to be desirable. I welcome the provision of more library facilities from the Ministry of Culture. However, I do not like the new policy of the National Library to prevent students from studying in its libraries. Students from poor homes need a peaceful and quiet place to study. Besides, they need the reference books which they cannot afford to buy. Hence, referring them to the schools which are open at night for them to study is not an adequate substitute unless the library facilities are available and unless they are not disturbed in their study. I hope, therefore, that the policy will be reversed and perhaps also air-conditioned study rooms can be made available at libraries and community centres. Finally, may I offer a comment on the data presentation. Both the Public Utilities Board and the Port of Singapore Authority could present more up-to-date information instead of relying on information in the first seven months of 1978. The Addenda were presented in December 1978. The Ministry of Health's mortality figures are rather alarming if they are indeed true. It reported that 22 out of 1,000 people died of cancer and 72 out of 1,000 died of heart disease in 1977.”
“I also welcome the Addendum on the Ministry of National Development that the Housing and Development Board will build recreational and social facilities, like swimming pools, and install more and better lifts in old housing estates. St. Michael's Estate is sorely in need of these improvements. Perhaps the Minister in charge can inform us of his exact plans for the old estates. I notice also that a centralised wholesale market for fruits and produce will be built at Pasir Panjang. There are obvious economies in centralization. However, I hope that the distribution and transportation elements have been sufficiently considered to minimise the amount of travelling necessary and the attendant costs because a lot of things seem to converge around Pasir Panjang. The Ministry of Health has proposed to increase the Government's capacity for manufacture of pharmaceuticals. Perhaps the Minister could explain to us why it is desirable that Government should engage in such manufacture at all and whether it is economic to do so. The Ministry of the Environment has reported that it considers the number of hawkers in Singapore to be adequate and wants to restrict the issue of new licences. There has already been a substantial drop in the number of hawkers of 2,352 over the last couple of years. Would the Minister inform us what ceiling he has in mind, and how he has arrived at the conclusion? On the matter of hygiene, we can take pride that everybody can safely eat out at hawker stalls and coffee shops. More, however, could be done to educate stallholders in food-handling. Hawkers invariably stick their thumbs in the soup or drink when serving their customers - a revolting sight indeed!”
“Yet the immigration policy discriminates against foreigners in service or white-collar type jobs. In other words, a greater supply of blue-collar workers is made available so the wage differential goes against such workers. Little wonder, then, that Singaporean workers choose the higher-paying jobs after discounting the exposure to physical risks and relative unpleasantness of various occupations. The Finance Ministry has also proposed the setting up of another industrial training centre. Perhaps this House could have some evaluation of the performance and cost- effectiveness of the present ones to ensure that they do not become white elephants which are costly to maintain. Our tourists already exceed two million in number and the Finance Ministry is pushing for more. It would be interesting to know whether the Ministry has developed any idea of the optimal number of tourists we should have without straining our infrastructure and services or else there might come a time when there are more foreigners than natives here. Turning to the Ministry of Labour, I welcome the proposal to include an insurance element in the Central Provident Fund. This will enhance the benefits to families who are bereaved. Perhaps the Ministry could inform us whether the CPF will undertake the insurance itself or farm out the policies to insurance companies. The latter appears preferable to me because the risks are spread. Besides, the funds are re-channelled into the private sector for productive use, I am not too comfortable with an overly large share in national savings by the public sector.”
“Coming back to the Ministry of Finance Addendum, I am pleased to see that there will be a review of estate duty. I hope the Ministry will be able to alleviate much hardship suffered by bereaved families as a result of undue delays in processing estates and of arbitrary valuations imposed on the estates. The Addendum has also emphasized further upgrading of manufacturing industries. This is a right move. However, the service sector deserves attention too. Information about this sector is all too scanty. The manufacturing bias of the Finance Ministry is also evident in its proposal to develop industrial entrepreneurship. Why not entrepreneurship generally? It would also be desirable to cast the entrepreneurial net wider than simply "local engineers, technicians or industrial managers." It may also be noted that it is not merely access to finance that is critical for entrepreneurial development but it is also important to consider appropriate tax incentives and develop procedures that facilitate local investment. Is there sufficient commitment to the idea? And, is the EDB the appropriate agency to handle the problem? The EDB was set up and is geared to promote foreign investments, which it has done very well. The Finance Ministry Addendum also stated that it would continue the policy of orderly and moderate wage increases via the National Wages Council. This is a correct policy but I believe we should also look at wage structures and wage differentials and use them as means of developing the labour market. It has been my impression that all the adjustment has been forced on the supply side and not enough on the demand side. Complaints are made, for instance, about Singaporeans not wanting to do blue-collar jobs and preferring service-type occupations.”
“We should be alert to the storm signals already evident now. Currency instability has defied the efforts of central bankers and the IMF. Protectionism has already cost the world economy between US$30 - $50 billion in world trade over the last three years. "Orderly marketing arrangements" already cover more than 10% of world trade, and more is on the horizon. We should indeed be on guard against protectionism as the Ministry of Finance Addendum put it. More importantly, we should ensure that our industries will be efficient enough to overcome protective barriers. We should also support all efforts at Multi-lateral Trade Negotiations to bring down tariff and non-tariff barriers. It may be noted that general tariff reductions are more beneficial to us than the Generalised Scheme of Preferences (GSP) concessions since such concessions invariably are subject to quota limitations and are easily withdrawn or subject to reclassification. We should indeed explore new markets. Here, perhaps the Minister for Finance could explain why there is not yet a full-fledged trade promotion body. I also welcome the proposal by the Finance Ministry to sell off parts of public enterprises. There is a danger that an unduly active public sector may deter private investment efforts, especially when the Government-owned enterprises enjoy preferential treatment, openly or via hidden means. We should also develop controls over public enterprises that are monopolies or acquire monopolistic powers. Such monopolies can hide inefficiency by simply raising their prices at public expense. Not too long ago, the NTUC Welcome Cooperative tried to pressurize the Consumer Clubs and other retailing cooperatives to charge more for rice sold to the public. We, of course, resisted the pressure.”
“Sir, I rise to join my colleagues in supporting the Motion standing in the name of the Member for Serangoon Gardens. The President has given us a comprehensive review of Government policies in the next few years. As my colleagues have noted, the Ship of State is evidently in good hands. But I have a few points to offer which may be helpful in clarifying some of the policy issues involved. The President was hopeful that, despite a downturn in the American economy and higher oil prices, and barring a recession, we should still be able to achieve 6-8% economic growth. Hon. Members may note that most economic observers expect a recession in America, but there is disagreement on the severity and duration of the recession. My own view is that a recession is definitely under way for a number of reasons. One factor is that the US economic expansion, while not sufficient to reduce unemployment, has been unduly long. Secondly, inflation has proven to be more serious and more difficult to contain. Thirdly, and not unrelated to the other factors, the US dollar has been falling dramatically on world currency markets. Hence not only will there be a US recession but it is likely to spread to other countries as well. What is in question is the severity and duration of the recession. If policy-makers are mindful of the lesson of the 1974-75 recession which surprised most observers in its depth and duration, they should be careful in not overly restricting monetary policy. Already interest rates in America have risen alarmingly. Policy-makers should also remember the misery produced by the Great Depression of the thirties when protectionism was rife, world trade was limited by cartels and nations engaged in competitive devaluation.”
“The ordinary MP gets only a home telephone - there is no provision for staff, not even a direct telephone line in his own office. He gets a part-time allowance for a job that is supposed to be part-time but which carries full-time responsibility. He has to nurse his own career at the same time. But the demands of office include not only Parliament and Parliamentary Committees but also his Constituency, his Party Branch and the Party itself which can sometimes be demanding. The resulting time and energy expended cut significantly into his own career. Perhaps some thought should be given to supporting services for MPs to allow them to be more effective. Meet-the-people sessions, for example, are easy to handle when only 10 to 20 people turn up but not when 80 to 100 turn up. I am sure constituents would appreciate easier access to MPs. This can be done if MPs are allowed full-time staff - at least a good personal assistant - located in the constituency and who are qualified enough so as to be able to handle complaints and problems. Mr Speaker, Sir, it is a good thing to provide for our pensions but we want to be in a position to enjoy it. May I offer my support to the Bill.”
“The new Bill prorates their benefits in accordance with years of service in each office, I hope this will not deter younger Members from accepting junior offices at considerable sacrifice to their own careers and having to run the gauntlet to reach higher office. On this side of the Bench, there are three colleagues who deserve mention because the new Bill has affected them particularly adversely. Two non-office holding Members are currently serving as Ambassadors abroad. I refer to the Members for Ulu Pandan and Katong. Under the existing Act, their service as Ambassadors is reckonable for pension as mentioned by the Hon. Minister. The new Bill has removed this provision. But I do not think that these colleagues would have changed their minds about serving our country had they been informed of the change beforehand. The other colleague who is losing out substantially is the Member for Farrer Park. He has served as Parliamentary Secretary, Minister of State and as Cabinet Minister. He has more than nine years of reckonable service but his problem is that he is too young - not yet 45. Therefore, he will lose out considerably under the new Bill. Sir, I am drawing attention to these adverse effects of the Bill so that it is clear to the public that we are acting responsibly in a matter affecting our immediate welfare. Singapore would be ill -served if its leaders do not have the proper dedication and the willingness to sacrifice time, energy and even material benefits for the nation. Public service in Singapore is certainly no bed of roses. Strict standards of honesty and integrity ensure that the public knows exactly what it is paying to Members of Parliament and office-holders. Perquisites of office are so paltry as to be almost non-existent.”
“Mr Speaker, Sir, I find this Bill a difficult subject to speak on. Nevertheless, it is important that the issues raised by the Bill be thoroughly aired so that our constituents do not misconstrue our intentions. Members of Parliament have given long and careful consideration to the Bill. Representations were made, resulting in a number of amendments which remove some inequities. Allow me, Sir, to comment on some of the provisions of the Bill. The change in pensionable age from 45 to 50 years affects the younger Members adversely. I hope this will not deter young people from aspiring to be Members of Parliament. The majority of present Members accepted office when no pension was available and when the parliamentary allowance was much less than it is today. In the same spirit, I am sure we will accept the adverse change in pensionable age. The change in the basis of computation for office-holders' pensions from 1/30th to 1/27th makes little or no difference to the majority of existing office- holders. The Senior Ministers who started in 1959 have already served 19 years. Under the old formula of 1/30th salary for each year of reckonable service, they have almost reached the maximum two-thirds allowable. The change to 1/27th clearly does not benefit them. Those Ministers who started in 1963 have served 15 years. The change in the basis of computation means very little, from 1/2 to 5/9ths of their salary. For those office-holders who were promoted from lower offices, the new Bill has reduced their pension benefits significantly. I refer to Senior Ministers of State, Ministers of State and Senior Parliamentary Secretaries who rose from lower offices. Under the existing Act, these colleagues would enjoy pension based on the highest three years' salaries.”
“Mr Speaker, Sir, is the Hon. Minister aware that in the event that an application for citizenship is refused the applicant has got to re-apply and go through the procedures again? It does impose hardship in many of these cases. Could not the application be kept alive for further reference?”
“Sir, may I clarify? It is in Appendix II.”
“There are 282,853 cases in the A & E Departments in 1977. A $6 increase for each one of these cases would only amount to $1.69 million compared to the expenditure of millions of dollars or tens of millions of dollars on buildings and on facilities for civil servants. Sir, we should sometimes stop to think what is the philosophy of this Government. I agree and I think hon. Members also agree with the principle that people should not feel that everything is for free. But I think that lesson is well taken in Singapore. If we want to increase the fee in respect of any category of service, let it be proportionate. An increase of 50 cents or $1 to people who earn several thousand dollars a month means nothing. But an increase of 50 cents or $1 to a person who earns $220 or $300 a month means "plenty". It can mean that some of these people may have to starve in order to get the necessary medical service. The Minister may turn around and say, 'Why do they not go to the Social Welfare Department? If they are social welfare recipients, they will be entitled to waiver of charges, etc.' But, Sir, let us thank our lucky stars that in Singapore the ordinary worker is still dignified enough not to want social welfare. Because he is dignified enough he is penalised in the process. But if we keep on adding these charges we will force people to get on to social welfare if only for the simple necessity of getting these services which they cannot otherwise afford. Sir, I think we should give very serious and due consideration to the points which have been raised.”
“I would like to invite just one Permanent Secretary, or his Deputy Secretary or even the Minister himself to try budgeting on $300 a month. In many cases people have to make do with less than that. Take a widow who is earning $200 or $230 per month with four children to support. On this kind of wage, how can we expect such a poor person to pay the charges which are being levied? Even the old charges were exorbitant enough. The other question which I put to myself is this. Can our Government afford not to increase these rates? As an economist, I would say the answer is yes, and a resounding yes, for the simple reason that in fiscal matters, we have been very conservative, if not overly conservative. We have been prudent, which is to the good. But at the same time, Sir, I am also beginning to suspect whether there is not a loss of a sense of proportion. Just a few days ago, 36 Members of Parliament visited the new PUB building. I was told that the cost was about $64 million. There are other new buildings being put up by the CPF and other statutory bodies. If one looks at the facilities being provided in these buildings there is only one word that can describe it adequately - magnificent or extravagant. But this is a very serious matter for us to consider. If our civil servants think that they can simply spend money on luxuries of that sort when they should really be concerned with providing adequate services to the people of Singapore, then we say something is wrong. If it is a money-making concern and the facilities are needed to entertain, that is fair enough. But if they have to levy charges on the ordinary people to support such expenditure then we say something is wrong. Let us again have a sense of proportion.”
“If we look at the total health expenditure for this year which we have approved only recently, it amounts to $254 million out of a total Government expenditure of $5,7 56 million 'Or only 4.4%. The other question which I put to myself is: can our workers afford the increases? Quite clearly, as indicated by hon. Members who have spoken on this subject, the answer is no. Sir, if one looks at the CPF figures for 1976, the number of workers earning below $300 per month, that is, $10 per day, is 45.96% or nearly 46% of the total number of workers. And yet the Minister has increased the A & E charges from $4 to $10 per visit. But $10 is equivalent to the daily wage of a worker. The Ministry of Labour Annual Report 1976, Table 20, gives us information of wage-rates in selected occupations within industries in the private sector. I will quote some examples of the daily wage rate: Manufacturer of bread, cakes and confectionery: $ Chief baker . . 11.72 Ovenman . . 9.28 Baker . . 8.15 Driver . . 8.46 General labourer . . 7.14 Spinning, weaving and finishing of textiles: Loom fixer . . 6.83 Spinner . . 7.80 Weaver . . 7.21 General labourer . . 7.41 Sir, I am not conducting a filibuster here, otherwise I could have read to you all the wages of ordinary workers in Singapore. They are available to hon. Members as they are in the Ministry of Labour Annual Report 1976. My point is very simple: that our workers cannot afford these very exorbitant increases. I suspect that the people who do the planning in Singapore are in one respect overly paid in the sense that they are paid at a level so many times that of an ordinary worker that they have lost all sense of perspective.”
“Mr Deputy Speaker, Sir, I rise to support the views expressed by the Member for Potong Pasir. Sir, I ask myself a number of very simple questions, the answers to which put me very much at variance with the position taken by the Minister for Health. The first question I pose myself is: Is there an abuse of the services in respect of A & E Departments, Outpatient dispensaries and dental clinics? The Minister gave us figures to prove that there have been abuses in respect of the A & E Departments. For 1977, there was a 1 7.6% increase in the number of attendances and he drew attention to the last three months of 1977, in particular, which showed about 25% increase over the corresponding three months in 1976. But, Sir, in 1977 there were only 282,853 cases which amounted only to 23,571 cases per month, or only 786 cases per day, or only 131 cases per hospital. We have a population of 2.3 million. Even on a monthly basis, the attendances amount to 1.02%. I cannot see where the abuse comes from, and if the Minister knows any statistics at all he should not be using figures on the basis of three months and comparing them with another three months. There might be seasonal factors involved. People may tend to fall sick during the later months of the year because of the rain, flu and so forth. In my mind, Sir, I do not think there is any question of abuse. At the back of the Minister's mind is the fear that our health services will mushroom to unmanageable proportions as can be witnessed in the advanced countries where people really do abuse and take advantage of their health services. I believe we are far from that particular situation.”
“In that way they will participate in the ownership of the company and have a stake in the particular company. Sir, I raise these few points because these are my personal misgivings about this particular proposal. I see the extension of the use of CPF funds in this direction as being an unhealthy one.”
“But it is another thing to get the CPF itself to invest in shares like the SBS, because the CPF itself is so big that it can absorb or spread whatever risks there are of buying any particular share or any particular security. No contributor will be penalised in the event a share price goes down. But in this particular event, the proposal will therefore throw the burden of risk on the commuter or the bus worker who makes use of his CPF funds, to buy these shares. Sir, so long as the PAP Government is here, I am sure this Government will always make sure that the management of SBS, and indeed of all the statutory boards and all those hundreds of Government enterprises, are being run by capable and efficient management personnel. But there is no assurance that this Government will always be here. If you get a government which is incompetent and which also appoints incompetent people to run things, then you can imagine the problems that can emerge in the future. If the concern is that we do not want the share ownership of SBS to be concentrated in a few hands, i.e. the rich buying up the shares, we can always have a law, like the Newspapers Act, which restricts ownership of shares to no more than 3% (I believe the figure is 3%). If we are concerned that the workers should have a particular stake in the SBS, why do we not get the NTUC to utilise its surplus funds to buy these shares on behalf of the workers, and eventually distribute these shares among the workers themselves on an instalment basis, rather than make them use their CPF funds for this particular purpose? Even SBS itself could have an incentive scheme for the workers; for example, if they have worked for a certain number of years they will be given so many shares.”
“Sir, I support the idea of spreading the ownership of the shares of the SBS so that the commuting public and the bus workers will have a stake in the bus company. This is a good move as it will help to ensure that the company is efficiently run. But at the same time I have certain misgivings because it is not just the workers who can ensure the efficiency of SBS, but management itself. So much hinges on the efficiency of management. While I can agree that the special Government Team of Officials has done a good job in the SBS, especially when there has been no fare increase over the last few years we cannot have this assurance that the future management will always be as efficient, because there is no criterion or yardstick by which we can measure this efficiency. If SBS were to turn to the Government or the Ministry of Communications and request for a fare increase, by what measure would the Government judge that it is fair and reasonable for the company to increase its fare? The company will simply say, "Our costs have gone up. Therefore, we must have this fare increase." Added to this is the guaranteed return of 7 1/2% which will make it easy for management to turn to Government and say, "Look, if you do not allow us this fare increase, we cannot give the 7 1/2% rate of return." So how do we go about monitoring and ensuring that the management is really efficient and that we do not have continual increases in bus fares on account of this guarantee? Sir, the other matter concerns the principle behind the use of CPF funds. Up to now we have only allowed such funds to be used to buy houses or flats. That is all to the good because that gives the workers a stake in society and increases productivity and stability.”
“Mr Deputy Speaker, Sir, is the present thinking or the future thinking of the Minister and his Ministry involved in considering the actual subsidy for the running of these community homes? As I recall it when looking at the plan, it is a sensible plan no doubt but the expenditure has to come from the local community. That means the Government is not putting up anything at all.”
“Mr Speaker, Sir, we are a member of the IMF but it seems to me rather curious that we are staying out of this scheme of the IMF, which hon. Members may be aware, is a scheme to increase international liquidity by the issue of this so-called Special Drawing Rights, that is, from time to time the members of the scheme get together and the IMF decides to issue so many millions of Special Drawing Rights in accordance with some formula related to trade and size of GNP and so forth. It seems to me that this kind of allocation has a cumulative effect and that by staying out of the scheme we may be losing out in terms of access to international liquidity or credit which may be useful in the future in case we do get into some balance of payments difficulties. I do realise that there is a cost involved in joining the scheme. The cost is in respect of two factors. One is that the interest payable on the scheme has been low in relation to the market rates of interest so that any fund diverted from, say, normal holdings of foreign exchange reserves to the IMF for the purpose of use by other members under the scheme would incur a loss of interest. The other factor is that since we are a surplus country in respect of balance of payments position we would be designated as contributor to the SDR scheme in respect of hard currencies for the use of members who are in a deficit position. Perhaps the Hon. Minister might want to inform the House what his calculations are in this respect.”
“Mr Speaker, Sir, sometime ago we read in the newspapers that we had some dispute with the International Monetary Fund in respect of the gold which we had contributed earlier to the Fund. The gold had been sold by the IMF which intends to use the profits for distribution to the poorer countries as a form of economic aid. May I ask the Hon. Minister whether the matter has now been resolved and in what direction? I have also a further question in regard to the Special Drawing Rights scheme of the International Monetary Fund. As I understand it, Singapore has not become a member of this scheme. May I ask the Hon. Minister whether the matter has been reconsidered and if we are still not a member, why not?”
“I do not know. I am asking the Minister why is he making the allegation that they are out to seek publicity. That is a serious allegation.”
“Sir, I think the Minister should have mentioned that quite a number of public complaints are channelled through Members of Parliament during their "Meet-the-people" sessions and not only the press and his own complaints bureau. Unfortunately, Sir, he has also made unwarranted aspersions on letter writers to the press. I do not think that the majority of these complainants are out to seek publicity. Maybe they think that it is a more effective channel than writing to his Central Complaints Services.”
“. On a point of clarification, Sir. There was no chit-chatting. The nurse in question was asking details like, "Has the patient been hospitalised before? If so, which hospital? What kind of diseases has he been suffering before?" These questions took a lot of time. In the meantime, there was a patient with a heart attack. The first thing she ought to do was to see whether the patient was still alive or still breathing. The oxygen equipment was there. Oxygen was probably necessary. She took the better part of two or three minutes questioning me before she got down to what she was supposed to do, that is, attending to the patient. This matter should not be treated lightly.”
“Sir, the Acting Minister for Social Affairs mentioned that the ambulance attendants are given proper and regular training in respect of first aid and so forth. I am just wondering whether training in weight lifting is provided for the ambulance attendants. I had occasion to tell this House some days ago about two ambulance attendants who could not even lift a patient weighing only 140 lbs. Would he ensure that attendants do have this capacity to at least lift their patients? Sir, would the Minister also ensure that the nurse who goes along with the ambulance pays proper and due attention to the patient before getting down to administrative details? I raised this subject under the head of Ministry of Health and was told to refer to the Minister for Social Affairs. I am telling him directly now that he should get his nursing staff acquainted with this proper priority. Otherwise, since administrative details take time to sort out, in the meantime the patient may have stopped breathing.”
“The question that suggests itself to my mind is: here we have a diversion of savings from private hands into public hands. Can the public sector usefully, productively and efficiently deploy these savings in terms of investment, in other words, translate these savings into actual investment? Of course, the Senior Minister of State could reply by saying that the POSB can re-lend this money into the money market, as indeed it has. But this is introducing an additional financial intermediary. POSB does not lend money for free. It gains a rate of return in this process. But please do not misunderstand my intention. I support saving efforts in general but if the idea is to promote savings generally, why not grant the tax exemption on all savings deposits irrespective of whether they are in the POSB or in the commercial banking system? Furthermore, I think there should be a limit on the amount of savings that can enjoy this tax exemption, otherwise we find the rich diverting their funds to POSB and I would suspect, if we look at the figures closely, that there are probably quite a few of them who take advantage of this very high rate of return. As I said, it is at least 10% for those in the 50% income tax bracket and there are not many investments that can yield a 10% rate of return.”
“As the Ministry of Finance does not believe in hidden subsidies, the policy of tax exemption on POSB interest rate is interesting to me. For those in the 50% income tax bracket a 5% tax exempt interest rate means 10% market rate of interest and there is no bank deposit that can earn 10% rate of interest. I think the going rate is about 51/2% to 6%. Therefore, one must ask the question: Has not the operation of the Post Office Savings Bank resulted in a considerable diversion of funds from finance companies and commercial banks into the Post Office Savings Bank? I do recognise, of course, that the attempts and the campaign by the Post Office Savings Bank to attract new depositors, particularly amongst school children, are very commendable and, undoubtedly, there has been some increase in national savings as a result of its efforts. But at the same time, if one looks at the figures very closely, there is a very considerable diversion of funds from the commercial banks and finance companies to the POSB. This then raises the question: what is the hidden cost of this tax exemption? In other words, how much is Government forgoing by way of revenue because of POSB's success in attracting saving funds from the commercial banking system ? A further important point to raise is in respect of the use of funds. It is no good just simply encouraging people to save money. The money has to be put to good use into investment purposes. The Government itself has already got its revenue. It has access to the funds of the Central Provident Fund and, by law, part of the deposit base of commercial banks and finance companies has to be invested in Government securities, and so on. To add to this, we now have the funds of the Post Office Savings Bank at the disposal of the public sector.”
“One curious thing which I noted in reading about this proposal was the intention to give a special bus concession pass to new shareholders of SBS. Coming from the Ministry of Finance this is a very curious line to take, or proposal to advocate, because one hears quite often from the Ministry of Finance, whenever convenient, that it does not believe in hidden subsidy. Sir, imagine if all bus commuters become shareholders and the concession rate was extended to everyone of them, then it is tantamount to no concession at all because bus fares will be raised so as to enable them to have the concessionary passes. If, on the other hand, only some of them become shareholders and the others do not, then it becomes a subsidisation of those shareholders by the non-shareholding public. In any case, the SBS is a public monopoly and like all public monopolies one has to keep careful tabs on its operational efficiency to ensure that the increases in bus fares do not go to cover inefficiency but are a result of legitimate increases in costs. The distinction between the two is not easy to identify in practice particularly as it is a monopoly. If there was a rival bus company in Singapore one can turn around and say, "If X company can accept 50 cents bus fare, why should Y company ask for 60 cents bus fare?" There is no comparison. Therefore, we have to take the word of the bus management. Undoubtedly, the Government Team of Officials has done well in this respect. But this is something that will need continuous monitoring by the ministries concerned. Sir, since the Senior Minister of State made reference to the Post Office Savings Bank, may I again make a comment on this subject? Here again, I find a curious anomaly.”
“They say, "All right, you are a poor guy. We give you these concessions. Instead of paying 100%, you pay 50%. Be a good guy. As long as you do not export to us more than so much a year, you can continue to enjoy this benefit. If you want growth of export, it is all right provided it is beneath a certain set percentage again. Of course, we feel free to take it away from you when our own products are unduly threatened." So there is a re-classification of imports from time to time. 6.45 p.m. Recently, in the last few months or so, we have seen examples where products which are not on the sensitive list but under GSP were put on the sensitive list and subject to quotas. My point was very simply that we should not get over-involved in items under GSP, for the simple reason that there is protectionism and rising protectionism, and furthermore we are in danger of re-classification. So if we allow foreign manufacturers to come in and use us as a production base to get through the back-door, so to speak, to the advanced countries' markets because their own exports of these categories are being shut off by protectionism directly, then I think we are only asking for trouble in the future. That was the sum total of my point. Sir, may I also make a comment in regard to the Singapore Bus Service Ltd. on the new proposal to sell shares to bus workers and the bus commuting public. Since bus workers and bus commuters normally look forward or plan to buy flats with their CPF balances, I am just wondering how much they have left, in terms of their CPF balances, to spare for the purpose of buying SBS shares. Is the Government thinking of allowing them to use the extra half percent which is expressly set aside for retirement benefit?”
“Sir, I refer first to the reply by the Minister for Finance in response to my comments about the need to shift our production out of sensitive products. Sir, while it is true that manufacturers make their own calculations and their own projections and sometimes they would still go ahead despite Government warnings, I think it is still the object of public policy to give guidance and set directions in which industries ought to move. For example, the case of Hong Kong, which has pursued a largely laissez faire type of economic policy, has resulted in a very unhealthy situation in so far as over-concentration of industrial production and exports, particularly in respect of textiles, is concerned. Members may know that during the 1974-75 recession whereas Singapore still enjoyed a positive growth rate of 4% or so, Hong Kong was in a minus growth rate region. Therefore, I believe that what Government ought to do is to monitor the situation in the advanced countries very closely to find out which products are likely in the foreseeable future to come under protectionist pressures. It is not all that difficult to identify or to monitor, for the simple reason that one can study data on industrial production, especially excess capacity and the state of the market in these products, to find out what are the likely products in this danger category. Furthermore, in this whole matter of Generalised System of Preferences (GSP), sometimes one gets the impression from newspapers and speeches that GSP is something that is heaven-sent. It is a gift and so on. But in reality there would not be any need for GSP if there were not any protection in the advanced countries which are giving these GSP concessions. First of all, they slap on tariffs and quotas.”
“The outstanding performance of our workers should win the recognition of the State. Sir, I now wish to touch on the six items of tax increases. The increase in colour TV licence fee and telephone surcharge is not too big an amount. It may not cause too big a repercussion. However, the increase in entertainment duty will cause cinemas and entertainment organisations to raise their admission fees.”
“This shows that the Government will in the years to come make greater efforts to promote business activities, provide more employment opportunities for the people and upgrade the standard of living of the people. The largest allocation of $911 million or 33% goes to public housing. This shows that Government will speed up the construction of houses to provide more houses for the people so as to shorten the waiting period for houses. As all these development programmes are carried out in the interest of the future of the nation and the well-being of the people, Singaporeans should show an interest in these programmes and give their active support to ensure their success. Sir, if we examine the economic achievements of the last financial year, we shall discover that the performance was still not bad. The Finance Minister disclosed that our economic growth rate last year was 7.8%, slightly higher than that for 1976. In the shadow of slow world economic recovery and in the face of trade protectionism widely practised by advanced countries, it is indeed a rare achievement to be able to put up such a performance. That we have been able to forge ahead in the face of adverse circumstances to achieve such good results is in my opinion due to our diversified economic policy, our policy of giving maximum encouragement to foreign investments and the policy of actively expanding external trade, in addition to other wise and practical policies drawn up by the Government. Of course, another major factor is the close co-operation among labour, management and the Government, thus ensuring political stability and good labour/management relations. Furthermore, the diligence of our workers is also an important contributing factor to our achieving economic development.”
“And I am very glad that we did not get too deep into textile production because Members are again aware of the greater restrictions which have been imposed under the multi-fibre agreement late last year and early this year. Therefore, my question to the Finance Minister is whether officials down the line are aware of this new policy and, if not, can he explain to this House the setting up of this new facility to produce colour television sets? Mr Teong Eng Siong( In Mandarin): Sir, the 1978 budget tabled by the Minister for Finance on 27th February has, apart from increasing car registration fee, entertainment duty, driving licence fee, colour TV licence fee and airport tax, also spelt out three company tax incentive schemes, and reduced personal income tax varying from 1% to 10%. These tax reduction measures are encouraging. People in the various business sectors give unanimous commendation to this progressive budget and are of the opinion that it will promote business activities in the Republic and strengthen confidence in our economic development. About half or $2,754 million of the total budget of $5,756 million has been allocated to development, indicating that the Government is continuing to invest huge sums of money in economic construction of the Republic to offset recession brought about by international economic depression, and to accelerate economic recovery. This undoubtedly is a dynamic policy which will definitely win the support of the people. Economic services take the lion's share of $1,185 million or 43% of the $2,700-odd million development budget.”
“Mr Speaker, Sir, in his Budget Statement to this House a few days ago, the Minister for Finance enunciated the policy to shift our industries from items which are sensitive to protectionism towards goods and services which are not sensitive to protectionism. I fully support this policy in view not only of increasing protectionism that we face but also in view of the possible reclassification of Singapore from a developing country to a developed country which will mean the loss of status and qualification in respect of the Generalised System of Preferences under which our industries have enjoyed preferential access to the markets of the developed countries. Sir, I was rather concerned to read today that a Japanese manufacturer intends to set up a rather substantial facility in Singapore to produce colour television sets. Sir, Members may be aware that the import of colour television sets into America, for example, has been under intense fire from the labour unions and has come under protectionism, i.e. duties and quotas for imports of such goods into America. 4.45 p.m. Sir, a similar circumstance occurred in the early 1970s in respect of textiles. At that time, the Hong Kong and Taiwanese textile manufacturers had already exhausted their quotas for preferential access to the developed markets and they were trying to come into Singapore to set up similar facilities so as to make use of whatever quota that was available to us. At that time, I was on the board of directors of the Economic Development Board and I argued strongly against letting these people come into Singapore for the simple reason that they were going to produce goods which were sensitive i.e. goods which came under special GSP quotas.”