Goh Chok Tong
Singapore
“This is what your father said during the debate on the Nassim Jade episode: "The proudest thing (for your mother) are her three children − upright, well-behaved and honourable... They are brought up straight, they are likely to stay straight. It is like, as I have said, a code of honour. If you break that code, you have brought shame...”
“They are not just the headaches of the Prime Minister and his team. They are not just the headaches of the PAP. They are also the headaches of the Workers' Party and every Singaporean. On their own, the Prime Minister and his team cannot resolve them. They require us, the Members of Parliament, and the people, to work with them.”
“The national financial education programme, MoneySENSE, continues to work with partners such as the Association of Banks in Singapore (ABS) and the media to educate consumers on the responsible use of credit facilities and the factors consumers should consider before taking on debt. PROPERTY AGENTS' COMMISSION RATES 2.”
“Mdm Halimah Yacob asked the Minister for National Development (a) in 2008, what is the takeup rate for the interim rental housing scheme that is provided to those without homes; (b) what are the reasons given for rejections under this scheme; (c) whether the rental rates were affordable; and (d) how many applicants had rejected the rental…”
“MAS is working with relevant government agencies and stakeholders to study the issue carefully, and to consider the various proposals that have been raised, including the feasibility of introducing a no-fault regime.”
“Mdm Cynthia Phua asked the Minister for National Development (a) if he will provide an update on (i) the use of sustainable alternative materials in the construction industry and (ii) the cost of construction materials in view of increasing inflation rates and rising oil prices; and (b) how will the high material and labour cost impact on…”
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“This may have created the impression in many that health care is provided free to all, regardless of the ability to pay in many countries. This is a serious misconception. Health care is not provided free. Indeed, the population has made a pre-payment, either in the form of taxes or a levy on wages. It is a hefty pre-payment, high taxes in the case of UK and a high levy of 14% of wages in the case of West Germany and France. It is not just the rich who have to pay high taxes. Workers too pay high taxes, 7% of wages in West Germany and France.”
“There is no such thing as free medicine. Medical care is expensive. The Ministry's budget is $368 million this year, $322 million for doctors and nurses'wages and to pay for other running costs, and $46 million for hospital expansion. The question is: how is health care to be financed, not whether it should be available for free. Many countries have a comprehensive health care system. They finance it in the following ways to keep charges within the affordability limit of the population. (i) From general taxation, with the patients paying nothing as in the UK, or the patients paying something, as in Singapore. (ii) From a levy on employers or employees to run a national health insurance scheme. West Germany offers such a system. Both the employer and the employee contribute 7% (I repeat 7%) of the employee's wages towards a national health insurance scheme, making a total of 14%. France also operates a compulsory national health insurance scheme. The employee contributes 3% of wages, but the employer contributes 11%, again making a total of 14%. In Japan, the employee and employer contribute a total of 8% of wages towards national health insurance. In the United States, 65% of the population are covered by voluntary private insurance, There is a compulsory national insurance scheme, called Medicare, for those aged 65 years and above. This is financed from payroll tax contributed by employer and employee over a person's working life. Thus, Medicare for the old is actually financed by the people themselves during their working lives. There is a health plan for the poor called Medicaid financed from general tax revenues. Medical care and treatment are invariably given free or heavily subsidized at the point of consumption under these health delivery systems.”
“So no one should expect health care to be provided for free. These same parties want an immediate repeal of the charges that are now being levied at Government hospitals and clinics regardless of the capacity to pay for those who seek treatment. They want to introduce a free health service for all citizens without any discrimination based on wealth. If the medical service is available to all, regardless of the ability to pay, the poor must suffer, not the rich. I will explain. Well-heeled lawyers who can now afford to be treated by private doctors will want free treatment at Government hospitals. Accountants, expensively-dressed business executives, chauffeur-driven bankers and loaded stock brokers who now do not use Government hospitals and clinics will flock to these hospitals, competing with poor patients for the limited facilities and specialist doctors. They will demand to be treated by the best specialists and accommodated in the best class wards because medical care is for free. And contrary to popular belief, there are more well-to-do Singaporeans than poor Singaporeans. According to CPF records, more than half the employees earn more than $500 per month. A high proportion of those earning less than $500 per month are young workers. They are, therefore, not necessarily poor. Demand for health services will explode if medical care is rendered free to all, regardless of the income status. When a system is overloaded, it is the poor who suffers, not the well-to-do who can opt out for private medicine. The poor cannot do that. This argument that the poor will benefit from a free medical service is not unlike the argument that income tax reliefs should go up to benefit the poor. But the effect is the opposite of what is intended or expected.”
“The condition of a higher qualification for promotion to a higher grade was waived in 1978. Since then three promotion exercises were held which benefited the primary health care doctors. Quite a few of these doctors have been promoted to Registrar level as well as Superscale Grade 'H'. The doctors in the primary health care will also be considered for formal training, for practical attachments locally and abroad, under the Ministry of Health's manpower development plan. The Member for Ayer Rajah emphasized the importance of paying attention to the medical needs of elderly people. We agree and I will also touch on this when I discuss the National Health Plan. The Health Plan requires time for debate and Budget session is not the best time to do this because of time limitation. I propose to have the Health Plan debated fully both inside and outside Parliament at a later date, hopefully in the next few months. Hence I would ask the House to bear with me if I do not go into details this afternoon. I shall only outline the philosophy behind the plan and give a few assurances to dispel unnecessary fears. 6.00 p.m. Let me emphasize at the outset that it is not the purpose of the National Health Plan to increase medical charges and recover more revenue. If revenue is the only consideration, it will be far simpler and more effective to ask the Minister for Finance to increase taxes, or not to reduce them as had been consistently done over the last four years. We can then continue to subsidize health care heavily, as we have always done, 90% for C-class and 80% for B2-class. Health care is a basic need, as basic as food, clothing and housing. No one expects the Government to provide free food, clothing and housing, except for some small political parties.”
“But I agree with him that we should emphasize the importance of primary health care, that being the first line of patient contact. Total primary health care service is provided by Government and private practitioners play an important role in keeping the population generally healthy and, as he rightly pointed out, reducing the need for costly hospitalization. Under the National Health Plan the primary health care service will be consolidated to improve the quality of service. New and better equipped polyclinics will be planned for HDB new towns, and old and uneconomical clinics will be closed down. We are studying the feasibility of extending the working hours of selected clinics when the supply of doctors increases in the Ministry, to meet the needs of working families. Outpatient clinics will be made available to Government or private doctors to run in the evenings on a fee-sharing basis. The dominant role played by the 500 private medical clinics manned by over 600 general practitioners will be maintained. To improve their service to the public, the Ministry of Health will propose to HDB to allocate space for future private medical clinics in its new towns on the basis of anticipated demand. As for the working conditions of doctors in the primary health service, most doctors in polyclinics and OPDs are generalists without specialist qualifications, unlike their counterparts in the hospitals. But there is no bias in the Ministry towards specialists in so far as compensation for contribution to services is concerned. It is true that in the past doctors in the primary health service lost out in promotion simply because they did not have a higher qualification but the situation has been rectified.”
“Putting aside professional consideration, my Ministry is of the view that private employers could be more flexible and make it less inconvenient for their employees in seeking medical treatment when they fall sick. The Government allows its employees to produce medical certificates from private practitioners but these will have to be endorsed by its own doctors. Similarly, employers could consider allowing their employees to consult doctors other than those on the company's panel but requiring the medical certificates issued by these other doctors to be endorsed by its own company doctors. Alternatively, companies could increase their panel of doctors to make it more convenient for their employees. For instance, company doctors could be appointed on the basis that the location of their clinics is close to the place of work and/or the employee's homes as far as possible. Before I discuss some aspects of the National Health Plan, I would like to answer the comments raised by the Member for Ayer Rajah. He has made a fundamental error when he looked at the accounts - the sums budgetted for hospitals and outpatient clinics - and compare them with their respective attendances. The two are not comparable. The sum provided for Hospitals includes in-patient care and not just attendances at the specialist clinics and the A & E departments. As he will know, the cost per attendance at the outpatient clinic is very much lower than that for hospital care. On a per day basis, the cost per attendance at outpatient clinic is $4.50 as against $124 per patient-day in the Singapore General Hospital, or an average of $15 and $22 per attendance at the hospital's specialist out-patient clinic and A & E department respectively. The two are not comparable.”
“Terms and conditions of service of nurses are being reviewed. I believe the Ministry of Finance is sympathetic towards the review of terms and conditions of service for the nurses. Hopefully in the next few years the nursing shortage will be alleviated. The Ministry is also encouraging, in the meantime, the large number of qualified nurses who have left the profession to come back on a part-time basis. Private hospitals are also encouraged to recruit foreign nurses with suitable qualifications. These steps should help solve the nursing shortage problem. The Member for Kebun Baru touched on the question of medical ethics when he referred to letters to the press. One swallow does not make a summer, just like one opposition MP does not mark the dawn of a new era, Isolated reports of unethical practices, therefore, do not mean that there is a degeneration of medical ethics. But just as one cantankerous, obstreperous, obscurantist charlatan in Parliament will tarnish the high standing of MPs, one blatantly unethical medical practice will bring the medical profession into disrepute. Therefore, we must try to eradicate all unethical medical practices, just as we must try to block all charlatans and scallywags from entering Parliament. With regard to ethics there is no legislation to enforce this. The medical profes- sion, however, has an obligation to look into this, whether it ranges from high fees or non-response to urgent calls for attention. The Ministry of Health is working with the profession to see how this can be done. The Member for Kebun Baru also touched on the question of medical certificates. Employers no doubt have their reasons for wanting to recognize only medical certificates issued by the company doctors.”
“The number of doctors registered with the Singapore Medical Council at the end of 1981 was 2,091 which is higher than the figure quoted by the Member for Clementi. By 1985 this will increase to 2,400. Based on projections of hospital beds and outpatient attendances, the number of doctors required by 1990 is estimated at 3,000. We have already taken steps to increase the supply of doctors in Singapore. The National University of Singapore has increased its intake of medical students from 140 to 170 since 1980. It has further increased the intake to 203 from this year. The expected supply of doctors will be 2,800 by 1990, which will lower the doctor/population ratio from the present 1:1200 to 1:950. 5.45 p.m. So long as there is a shortage of doctors in Singapore, foreign doctors from the better known medical schools, within the Commonwealth or outside, will be permitted and even encouraged to practise in Singapore. In fact, the list of qualifications for registration in Singapore has been expanded from 58 to some 200 since 1980. This list will be reviewed and enlarged periodically. It is true that the Government hospitals are presently facing a shortage of nurses. This has been brought about by the rapid expansion of private hospitals in recent years. However, the recruitment and training of nurses has been stepped up since 1980. The Ministry has reverted to the former practice of recruiting both student nurses and pupil assistant nurses, in parallel. Prior to this change, applicants had to go through the route of pupil assistant nurse before becoming student nurse which, therefore, made it unattractive for applicants to the nursing service. Currently, 1,250 nurse trainees are in various stages of training. Another 1,000 school leavers will be taken in this year.”
“Sir, the Member for Clementi has warned about the danger of increasing medical costs as a result of Singapore being developed into a medical centre. The warning was also put forward by the Member for Kebun Baru. I share the concern of these Members that the development of Singapore as a regional medical centre should not unduly push up the cost of health care, particularly for Singaporeans. Singapore's medical reputation will depend ultimately on the quality and pricing of the services. Foreign patients will continue to come to Singapore only if they are satisfied with the quality of these services and the fees charged. The locals, i.e. Singaporeans, should not worry too much about the exorbitant charges in the private sector in Singapore because they have recourse to the public hospitals which play a dominant role in the provision of health care in Singapore. My Ministry has initiated discussions with the Singapore Medical Association and the Association of Private Medical Practitioners to explore the feasibility of introducing a scale of fees charged by private medical practitioners. The scale of fees, if introduced, will serve as a useful guide to patients. Unfortunately medical skills and services differ even for the same type of services or operation. So it would not be practical or desirable to enforce, through legislation, charges in accordance with a schedule of fees. But a published schedule of fees will serve as a useful guide to the public who use the services in the private sector. We would like to see self-policing by the medical profession in the first instance. Its good name must not be tarnished by an avaricious few. I agree with the Member for Clementi that an adequate supply of doctors and nurses is crucial to the development of our medical service.”
“In preparing the Economic Development Plan for the Eighties, the Ministry of Trade and Industry has suggested that the medical registry should be open to foreign doctors with recognized qualifications without demanding reciprocity. This was to ensure that there is no closed-shop practice. I have now been advised by the Ministry of Health that reciprocity has never been a condition for registration by the Singapore Medical Council. Foreign recognition of Singapore qualifications is not a prerequisite to our recognising foreign qualifications. Besides medical graduates of the National University of Singapore, any doctor holding medical qualifications listed in the Schedule to the Medical Registration Act is eligible for registration in Singapore. A doctor holding any other unlisted medical qualification may also be registered if the Medical Council is satisfied that he possesses medical or surgical knowledge, experience and skill which are of value to Singapore. This principle applies whether the doctor is working in the public or private sector. It is not our intention to limit admission of foreign doctors to specialists in selected disciplines. Any qualified or skilled foreigner is welcomed to practise his profession or skill in Singapore. In the case of a doctor, he has to satisfy the Singapore Medical Council that he possesses the requisite skill.”
“We have one of the best medical practices in Asia. There is no question about that. The increasing number of foreigners coming to Singapore for medical treatment testified to this. The credit goes largely to our local doctors as only 10% of the doctors in the medical register as at 31st December 1980 were non-Singaporeans. The question is: how do we build upon our indigenous strength to become an international centre of medical excellence? We are good in standard disciplines such as general surgery, orthopaedic surgery, internal medicine and many specialities such as cardiovascular surgery and neuro-surgery. We have inadequate number of specialists elsewhere, such as ophthalmic and ENT surgeons. Even for those disciplines in which we are good in, we can become better by inviting distinguished specialists to practise in Singapore, for short periods if necessary and for long periods if possible. The presence of a large number of reputable doctors in Singapore is necessary before we can succeed as an international medical centre. Hence, the importance of attracting foreign doctors of eminence to Singapore to give added strength to our medical service. ADMISSION OF FOREIGN DOCTORS 2. Dr Tan Cheng Bock asked the Minister for Trade and Industry and Minister for Health if he will elaborate on his expression "without demanding reciprocity" when he stated that Singapore's "medical registry should be open to foreign doctors with recognized qualifications without demanding reciprocity."; whether this proposal is to be limited to the public service only or to the private sector as well; and whether it is the intention to admit a selective type of high calibre expertise only or all foreign doctors with minimal recognized qualification.”
“Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed. STAMP DUTIES (AMENDMENT) BILL Order for Second Reading read. 4.50 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to make provision in accordance with Clause 2 of Article 145 and Clause 2 of Article 147 of the Constitution of Singapore for additional expenditure in excess of the provision authorized by the Supply Act, 1980 and the Supplementary Supply (No. 2) Act, 1980. The additional sum has been scheduled as a Supplementary Estimate which has been considered and approved by the House as Command Paper No. 8 of 1981. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Sir, I beg to move, "That the Bill be now read a third time." Question put, and agreed to. Bill accordingly read a Third time and passed. SUPPLEMENTARY SUPPLY BILL Order for Second and Third Readings read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In accordance with Article 145 of the Constitution of Singapore, heads of expenditure to be met from the Consolidated Fund other than statutory expenditure have to be included in a Bill to be known as the Supply Bill. The purpose of the Supply Bill before Members is therefore to give legislative approval to the appropriations from the Consolidated Fund to meet expenditure in the financial year, 1st April 1981 to 31st March 1982. The heads of expenditure and the sums that may be incurred in respect of each head are shown in the schedule to the Bill. These have been approved by the House in the Main Estimates of Expenditure for the financial year, 1st April 1981 to 31st March 1982, and appear on page 21 of Command Paper No. 9 of 1981. The Supply Bill, when approved, will empower me to issue warrants, authorizing expenditure up to the amount for each head as shown in the Bill to be paid out from the Consolidated Fund. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." Question put and agreed to. Resolutions accordingly agreed to. SUPPLY BILL Order for Second and Third Readings read. 4.45 p.m.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. First Resolution reported - "That the sum of $5,199,036,780 shall be supplied to the Government under the heads of expenditure for the public services shown in the Main Estimates for the financial year 1st April, 1981 to 31st March, 1982, contained in Paper Cmd. 9 of 1981." Second Resolution reported - "That the sum of $5,044,207,600 shall be supplied to the Government under the heads of expenditure for the public services shown in the Development Estimates for the financial year 1st April, 1981 to 31st March, 1982, contained in Paper Cmd. 9 of 1981."”
“Sir, I shall communicate with the Minister for National Development on the frequent breakdown of the lift. If the lift does not break down so often, then I think there would not have been complaints about the patients having to go to the polyclinic on the fourth floor of Bukit Merah Centre. The Member for Tiong Bahru has suggested that perhaps the Ministry of Health can arrange with the community centre to make use of the premises for such a purpose, so that old patients who are unable to travel long distances can be attended to. This suggestion can be looked into. But I believe the community centre normally does not open in the mornings and that, for diabetic patients, it is preferable to give injections of insulin in the morning. However, I shall certainly look into this matter. Perhaps we can do one better, if the number of patients is not great. We have the Home Nursing Foundation whereby nurses visit the homes of patients who are unable to afford private nursing. If the number is not great, maybe we can get these nurses to attend to the old patients and to render them medical assistance, such as administration of injections, if there is nobody at home who can do this for the patients. But we can look into the request by the Member for Tiong Bahru to see if we can come to some arrangement whereby the patients can be attended to either in the community centre or in some other suitable place. Mr Ch'ng Jit Koon( In Mandarin): Sir, the Minister has given a very satisfactory reply and I have no reason not to withdraw my amendment. I beg leave to withdraw. Amendment by leave, withdrawn. The sum of $275,160,510 for Head P ordered to stand part of the Main Estimates. The sum of $69,488,700 for Head P ordered to stand part of the Development Estimates. Head O -”
“Sir, my comment is that this is the professional way of doing things. I have explained earlier that it is not possible for the dispensary to dissolve the ampicillin in capsules on behalf of the patients because the syrup would not be stable at room temperature and we cannot expect the dispensary to dissolve the ampicillin in capsules into syrup form, and have a fresh supply ready for the patient every time. I see no difficulty whatsoever in the parent going to some small trouble of dissolving the capsule so that the baby can take the medicine in syrup form. I believe the medicine is as effective as that which we can buy from the private practitioners.”
“The Member has heard that the JTC will be passing on the management of its existing housing estates in Jurong to the HDB. He has heard correctly, and I am sorry that the JTC has not informed the Member of Parliament earlier and he has got to hear this from the grapevine. JTC has, in fact, earlier decided to hand over the construction of some 31,000 units of public housing flats in Jurong East and Jurong West to the HDB. There is a good reason for the move. It is to avoid duplication and conflicting rules in the provision of public housing. It is better for HDB to be the single authority that looks after public housing in Singapore than to have two authorities which may be operating conflicting rules, such as the provision of free car parks in JTC housing estates when it is not available in other HDB housing estates. It is also more efficient for HDB to do so and it will allow JTC to concentrate on industrial estate management which is the primary role of JTC. I believe the only privilege available to residents of Jurong Town housing as compared with residents of HDB estates is the privilege of free car-parking. When the housing estates are transferred to HDB, the estates will not be under the charge of JTC and, therefore, would not be under my charge. I would therefore be in no position to give the assurance to the Member for Jurong.”
“Sir, I am happy to note that the residents of Jurong are quite happy to live in the housing estates managed by JTC. I believe a major reason why they are happy is because they have a good Member of Parliament.”
“The facts before us do not support the contention that we are not helpful to the local industrialists. They have benefited from the var ious schemes that we have, and I can give my assurance to the House that they place great importance in trying to help the local industrialists to upgrade as far as they could. Mr Ch'ng Jit Koon( In Mandarin): Sir, in view of the Minister's assurance, I beg leave to withdraw my amendment. Amendment by leave, withdrawn.”
“But that does not mean that we should not try to help the local industrialists in their plight. We have a number of schemes whereby we try to help local industrialists to operate. I have earlier looked at the figures of workers made redundant as a result of the new economic policy. The percentage of staff made redundant as a result of the higher wage policy is very small. If I remember correctly, if should be less than 5%. The termination of services of the staff of most factories that have closed down has been due to other reasons, such as poor marketing, bad management, no forward orders, and so on. Causes that could be traced to the higher wage policy were small, less than 5% if I remember correctly. I do not have the exact figures with me now. The Member made a point that the local companies being smaller were unable to put up a good case to take advantage of the various schemes which the Economic Development Board operates. We have the Local Industries Unit in the Economic Development Board. I believe the Board has been very helpful to the local industrialists. They have, in fact, helped the smaller businessmen to complete their application forms for the various incentive schemes, such as the Small Industries Finance Scheme and Product Development Assistance Scheme. If the Member has any specific evidence of cases that have been turned away because of their poor presentation, I would appreciate it if the Member could bring up the evidence to my notice. I will then confront the Economic Development Board with such facts. But so far as I understand it, the officials have given me the assurance that they have indeed helped the small industrialists to fill in the necessary application forms for the various incentive schemes.”
“They have told me that, as far as they understand, no country in the world carries out regular checks of service pipes because of the extensive mileage of service pipes that are laid underground. The suggestion by the Member for Alexandra that people should be educated to respond when they detect gas leakages is a good one. I think it is necessary for the public to be alert when they detect leakages through the presence of gas odour in the air. They should immediately inform the Public Utilities Board so that they can come round to check. I would not like to comment on the tragic event in Mei Ling Street because I understand that the Coroner is conducting an inquiry into the cause of the death. It is, therefore, not proper for us to apportion blame or otherwise as the facts are not yet fully investigated. I thank the Member for his concern over possible dangers posed by gas leakages, and I assure him that the Public Utilities Board will look into the safety aspect of the gas-work. Coming to the comments made by the Member for Tiong Bahru, he made an eloquent plea for local industrialists. He wanted to know how many local enterprises have closed down; how many people were made redundant as a result of the economic restructuring policy, in particular the higher wage policy pursued by the economy. I do not have with me figures for the number of local companies that were forced to close down as a result of the economic restructuring policy. I do not think the figures are important because we operate a free market economy. Companies will have to live within the regime and those that are unable to live within the regime of higher productivity, higher value-added and higher wages will therefore have to close.”
“Sir, first let me deal with the points brought up by the Member for Alexandra. We are all saddened at the loss of an innocent life as a result of the tragedy that happened in Mei Ling Street. We share with the parents their grief over the loss of their daughter. The Member for Alexandra has suggested that we should perhaps review the existing network of gas pipes as it could pose a potential danger as a result of possible gas leakages. This matter can be studied by the Public Utilities Board. I believe that generally the service pipes should last 20 to 25 years, depending on the ground conditions. Perhaps the PUB could take a look at the older pipes in the older estates to see whether, if they are indeed 20 to 25 years old, they should be replaced. As for pipes to be cast in concrete and laid above ground, I do not know the engineering possibilities but I believe there is also a danger of localised subsidence of the ground. It that happens, the weight of the concrete could, in fact, help to break the pipe and thereby pose a danger of leakage. Nevertheless, I will ask the Public Utilities Board to look into the suggestion by the Member for Alexandra. He also suggested that there should be devices installed to monitor a leakage when it occurs. Generally such devices could be installed in a confined space. In the case of the H D B meter room, I believe there was no gaswork in the confined meter room, and therefore there was no necessity to have an alarm system to trigger off as a result of leakages. I also understand that the Public Utilities Board does a routine check every month of the major gas mains to check on possible leakages. It is not possible, however, for the Public Utilities Board to do routine checks of the miles of service pipes.”
“Mr Speaker, Sir, there are plans to set up three overseas trade offices in Belgium, Saudi Arabia and the People's Republic of China in financial year 1981-82. Our local industrialists or traders can get assistance from these overseas trade offices, whose function is to promote our exports in overseas markets. Our overseas offices will, therefore, service trade enquiries, seek out foreign buyers and provide logistics support for overseas promotional projects such as organisation of trade fairs and trade missions. Actual follow-up of contacts established and business enquiries received will, however, have to be undertaken by the industrialists and traders themselves. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1981 TO 31ST MARCH, 1982 Order read for consideration in Committee of Supply (5th Allotted Day]. [Mr Speaker in the Chair] Head I - 2.36 p.m.”
“None of the EDB's training centres and institutes will be located in the Ang Mo Kio New Town. The EDB will, however, consider Ang Mo Kio as a possible location for future training centres. The VITB, whose vocational institutes complement EDB's training centres, has chosen the site at the junction of Ang Mo Kio Avenue 5 and the proposed Sembawang Expressway for its latest vocational institute. OVERSEAS TRADE OFFICES (Functions) 2. Mr Yeo Toon Chia asked the Minister for Trade and Industry and Minister for Health (a) how many new overseas trade offices will be established in financial year 1981-82 and in which countries; and (b) whether it is possible for our local industrialists or traders to get assistance from these overseas trade offices, and, if so, how.”
“Mr Speaker, Sir, at present, the Economic Development Board runs four Joint Industrial Training Centres. They are: (1) Tata-Government Training Centre at Chin Bee Drive, Jurong; (2) Philips-Government Training Centre at Jalan Ahmad Ibrahim, Jurong; (3) Rollei-Government Training Centre at Kallang Junction: and (4) Japan-Singapore Training Centre at Jalan Bukit Merah. These centres provide a four-year apprenticeship training in the following 11 trades designed to meet the needs of industrial firms using advanced skills and technology:- (1) Precision Metal Machinery (2) Precision Mechanics (3) Precision Optics (4) Tool and Die Making (5) Tool and Die Making (Plastic Moulds) (6) Auto-Lathe Setting (7) Consumer Electronics (8) Industrial Electronics (9) Electrical Engineering (10) Instrumentation and Control (11) Industrial Machinery Maintenance. All trainees are required to undergo two years of in-centre training in one of the four training centres and another two years of in-plant attachment in an industrial firm. On completion, a trainee will be awarded a trade certificate and will be required to serve a bond with the firm in which he was earlier a"ached. The bond is one year for a trainee who has completed his National Service and three years for a female trainee and male trainee who has not done his full-time National Service. The Economic Development Board is also setting up three more training institutes. They are: (1) the Japan-Singapore Institute of Software Technology for programmers and systems analysts at the World Trade Centre; (2) the German-Singapore Institute for production engineering technicians and vocational instructors at Science Centre Road, Jurong; and (3) the French-Singapore Institute for electronics technicians at Science Centre Road, Jurong.”
“Sir, I have been asked by the Prime Minister to reply on his behalf. From experience, the Public Service Commission found that many overseas graduates and professionals who are keen to work in Singapore do not know where to apply for suitable jobs, how to go about applying for Employment Pass and what the living conditions in Singapore are. The functions of the Professionals Information and Placement Service (PIPS) are to assist and to facilitate such graduates and professionals from overseas, both Singaporeans and foreigners, by advising them on job opportunities, accommodation, education for the children, immigration procedures and so on. To do this job, PIPS needs a computer to maintain records of such persons so that they can be referred to the appropriate employers, both public and private. Another function of PIPS is to identify the highly talented graduates and professionals from overseas with a view to attracting them to work in Singapore. This is done mainly through the Career Advisory Officers of overseas universities with the assistance of our embassies abroad. The target countries are the traditional English-speaking countries. As far as numbers are concerned, the more talented people we can attract to Singapore the better. There is, therefore, no upper limit on targets. The breakdown of the Development Estimates for this Unit is as follows: purchase and installation of a computer system, $750,000: cost of office renovation of PIPS, $232,000; cost of office equipment and furniture, $74,000.”
“777 - 780) Annex 1 - REVISION OF SALARIES OF MINISTERS, CHIEF JUSTICE, ATTORNEY-GENERAL, CHAIRMAN PSC, JUDGES AND MEMBERS OF PARLIAMENT, AVERAGE EARNINGS OF TOP THREE IN VARIOUS COMPANIES AND PROFESSIONS IN 1979, LOCAL LAW GRADUATES, PSC LOCAL LAW SCHOLARS, PSC OVERSEAS LAW SCHOLARS (Cols. 781 - 790)”
“Enforcement will also be difficult as under-the-table payments are bound to be made in an attempt to evade tax. Proponents of capital gains tax advocate that it can be structured to penalize only speculators who are out to make a fast buck. It will not affect the genuine investor. They argue that the tax will help to check runaway prices in the property market. They further argue that speculative activities are undesirable and distortionary forces prevent true market forces from operating. The result of all these pros and cons would suggest that Government should not take hasty decisions and this matter must be deliberated very carefully before we decide to intervene in the market. I believe, Mr Speaker, Sir, that I have covered the more important items. For those items which I might not have covered in my reply, I would suggest that the Members raise them in the Committee of Supply under the appropriate Ministries. I would like to thank Members for their pains in going through the Budget, for their congratulations and, more importantly, for their constructive suggestions. [Applause] Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1981 to 31st March, 1982. ADJOURNMENT Resolved, "That Parliament do now adjourn." - [Mr Chua Sian Chin]. Adjourned accordingly at Fourteen minutes past Seven o'clock p.m. Official Report - MAIN AND DEVELOPMENT ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1981 TO 31ST MARCH, 1982 (Cols.”
“When we talk about checking of escalating property prices, we have to decide whether we want to intervene with the basic factor that causes property prices to rise. Do we want to intervene with the confidence factor? I think we should not rush in very quickly without proper consideration of the subject. Just to curb rising property prices without understanding the basic factors behind the rise could undermine the very confidence in Singapore that has brought about high property prices. The Minister for National Development has already announced his intention to increase the supply of properties in an attempt to meet demand. I think this is a sound method. If demand is there, increase the supply, as he has promised to do. Various other measures that can be adopted and suggested by Members of the House are a credit squeeze and rent or price controls which, however, are undesirable as we believe in a free market economy. Restrictions on purchases by non-citizens also appear unwarranted at this stage as an examination of the transfers of ownership in 1980 reveals that only 2.9% involved non-citizens and foreign companies. The other alternative suggested by Members are a freeze on resale of property, six months or a year, and capital gains tax. These measures must be carefully studied before any action is taken. Opponents to the introduction of capital gains tax on real property fear that the tax will reduce Singapore's attractiveness as a centre for investment. In addition, the tax may not succeed in curbing speculation if there is a genuine demand and confidence in Singapore. In such a case, prices of properties would merely rise to take account of the tax factor.”
“The Member for Mountbatten suggested that we should consider double tax deduction for technical missions abroad. He thought, by repeating or by sheer repetition, his idea will be accepted. I am not sure whether I can accept his idea right away, but I would assure him that I would ask the Trade Development Committee to have a re-look at his proposal. And if the Trade Development Committee agrees that double tax deduction should be given for technical missions abroad, we would then convince the Minister for Finance to accept the recommendation. On property speculation, the Member for Khe Bong and the Member for Bedok, in particular, have spoken very vehemently about the escalating property prices. I tread rather apprehensively on this subject because it belongs, in a sense, to the Minister for National Development. From the point of the Ministry of Trade and Industry and also the Ministry of Finance, I would say that the Government is not oblivious to the situation in the real property market, 1980 has been a year in which prices of residential property and office space increased rather rapidly. This is a source of concern as high prices and rentals have a disturbing effect on investment and potential investment and the ability of citizens, especially those in the middle-income group, to acquire their own homes. The current state of the property market can be attributed to increased demand due to an influx of investors, rising affluence of citizens, the growth of the economy, high liquidity and easy availability of finance, rising labour and construction costs and speculative activity. In a nutshell, it is a supreme sign of confidence in the stability and security of Singapore.”
“But I can say that as we move up-stream, the likelihood of protectionism will decrease. Primarily, importing countries want to protect their jobs and these are industries which require plenty of labour, such as textiles, manufacture of television sets and similar labour-intensive industries. These industries are very prone to protectionism. But if we manufacture faceless components, things like universal joints for cars which are required in the total manufacture of cars and if there are very few plants producing such components, then the likelihood of protectionism would be very much less. The Member for Boon Lay suggested that we should have an energy labelling scheme on appliances. I think this is a good suggestion and if it can be implemented, we should do so. But we do not produce all the appliances which we require in Singapore. These appliances have to be imported from abroad. And in the implementation of this particular suggestion, we have to ensure that we do not unwittingly or wittingly use this measure as a non-tariff measure to prevent the import of such appliances. This matter will be further looked into by the Ministry of Trade and Industry. The Member's suggestion that the Central Provident Fund could be used by young entrepreneurs to start up investment is a less practical suggestion. There are many demands on the Central Provident Fund. There has been a suggestion that the Central Provident Fund could also be turned into some kind of a national health scheme. I do not think the Central Provident Fund is such a bottomless pool where everybody can use it for all kinds of purposes. I do not think the idea will be agreed to by the Minister for Labour.”
“I can assure the Member that we have a very healthy overall balance of payments as evidenced in our stable, strong Singapore dollar. The Member was also a little unfair in saying that we have not succeeded in our export promotion because of this widening merchandise trade deficit. Singapore does not possess natural resources and naturally, as we grow, our demand for imported goods or capital equipment will also increase, and we can expect in the natural course of events that the visible trade will widen in terms of deficit. We have been monitoring the export of domestic products and as a percentage this has shown an increase. The share of domestic exports in total exports has increased from 39% in 1970 to 62% in 1980. This is an indication of a fair success in our export promotion. The Member suggested that we should look into ways of improving the balance of trade with specific countries. He mentioned the United States, Japan, Saudi Arabia and Malaysia. Again, in trade matters, it is not necessary for us to have a balanced trade with individual countries. It is not possible. It is not possible, for example, for us to have a balanced trade with Saudi Arabia. We import oil and there is no way in which the Saudi Arabian market can absorb all our products to match the extent of purchases which we need to incur on their oil products. The Member wanted an assurance from me that, as we upgrade into the manufacture of components and high-value products, there will be no protectionistic measures taken against such products. I am afraid I cannot give him that assurance. It is not for me to assure the House that such items would not be subject to protectionistic measures levied by other countries.”
“I think a ceiling of $600,000, like what we have, is more generous than to stipulate "one house". Parents can decide for themselves whether they wish to own one house or two houses so that when they pass away from this world each house can be left to each of their two children. The parents have flexibility on the number of houses and the type of houses which they wish to own, whereas if we were to exempt only one house, it is in my view, less generous than the present exemption. So much for matters concerning tax. I move now to comment on economic matters. The Member for Serangoon Gardens noted an omission in the "Highlights of the 10-year plan on Social and Development Strategy Directions and Goals." The "Highlights" is an economic plan and it is true that we have not included chapters on social and cultural development. The idea can be taken up not by the Ministry of Trade and Industry but by the other Ministries that are concerned with the matter. We can approach them and ask them to formulate their views and, if suitable, incorporate them in the "Highlights" of our plan in the coming ten years. The Member for Serangoon Gardens was very concerned about the widening trade deficit. He claimed that he was not an economist, and I think he spoke not like one who is an economist. We need not be overly concerned about the widening deficits in the merchandise trade account, that is, the visible trade account, e.g. trade in commodities, manufactured goods and other tangible items. We should be more concerned with the overall balance of payments or the balance of payments in the current account, including earnings from invisibles, that is, from the financial services, tourism, insurance and so on.”
“As regards estate duty, the Member for Punggol has suggested that the raising of the ceiling is inadequate or could be inadequate for some people and, therefore, we should consider exempting one house from estate duty instead of having a ceiling of $600,000. I would think that the proposal would be inequitable because, what is a house? There are houses which are worth a couple of million dollars and there are houses which are worth $700,000 or $800,000, and others very much less. A more equitable basis is what we have done - to set a quantitative ceiling on exemption. If $600,000 proves to be inadequate because of escalating property prices, we can always look into the possibility of upping the exemption ceiling.”
“Thank you. I do not propose to counter-quote. I would merely say that the purpose of a tax must be viewed in the circumstances of the day and also what we expect to be the circumstances of the future. Therefore, there is no inconsistency, even though the purpose of the payroll tax has been changed over the years. The present policy of the Government is that tax revenues should not be earmarked for any specific purposes. Like other tax revenues, payroll tax revenue is credited into the Consolidated Revenue and it is used to defray Government expenditure. If training is required, funds for training can be made available from the Consolidated Revenue other than from the payroll tax. Even the reimbursement or the make-up pay for the national servicemen should come from the Consolidated Revenue rather than from a specific tax. This brings me to the question of the Skills Development Fund, that is, whether it would in the future suffer a similar fate as the payroll tax. I cannot look too far into the future, but I would say that if the situation in the future warrants the surplus in the SDF being credited to the Consolidated Revenue, then a case will have to be made for it. And, of course, the approval of this House will have to be obtained for that purpose at the appropriate time. For the time being, the fund will be used for the purpose it was meant, that is, the training of workers to help us in economic restructuring. But we must not be prisoners of our own past. If the situation requires a change in the use of funds, we should be courageous enough to change the purpose of the fund, with the prior approval of Members of the House.”
“I shall disregard the Member's remark for the time being and move on to his suggestion on payroll tax. He has done a lot of research to show the shift in Government policy in the application of the proceeds of the payroll tax. He has quoted the then Minister for Labour in 1965 and he also quoted the current Minister for Finance who gave certain replies in 1971. But the Member for Punggol appears to have omitted quoting the First Deputy Prime Minister, who was then the Minister for Finance, when he gave the reason why the earlier idea of a social security scheme was not applicable for Singapore. I could perhaps, therefore, enlighten him.”
“Again, the solution is not as simple as it seems. The Housing and Development Board borrows from the CPF to finance its development projects. Other Government Ministries and statutory boards also finance their development projects from funds from the CPF. These funds carry interest rates which are less than the market rates. If we have to pay a higher interest rate to depositors in the CPF, then there should be consequential adjustments to interest rates that are charged on loans borrowed by the statutory boards and by the Government. This would, in turn, increase the cost of the final product. In the case of housing, the financing cost will go up and the price of flats sold to the public will have to be adjusted accordingly. The matter requires careful consideration. There is a committee that is looking into all these matters and because its deliberation is not complete, it is not opportune to consider the suggestion made by the Member for Punggol.”
“Pioneer companies, for instance, are exempted from tax. Companies engaged in ware-housing and servicing, international trade and consultancy services are taxed at a concessionary rate of 20%. For offshore income of ACU operations, it is taxed at 100/o. Tax incentive schemes, such as double deduction and investment allowance, have also reduced the tax burden on companies. There is therefore no need at the moment to lower the company tax. There was the suggestion by the Member for Bedok that we should consider giving tax incentives to parents who send their children to learn music or to take up the arts so that they can become more cultured in the process. He also suggested that tax incentives should be given for the purchase of books outside the school textbooks. Whilst I would agree with his sentiments, I think the suggestion is not capable of practical implementation. We would be opening Pandora's box if we allow expenditure incurred by parents on their children's education in music, reading and so on, to be exempted or to be taken into account in calculating the tax burdens of the parents. The Member for Punggol suggested that we should consider increasing the relief that is allowed for contributions to the Central Provident Fund. This matter was, in fact, considered by me this year. It is not opportune because we have a Committee looking into the overall qUestion of the right interest rate payment for depositors who have funds in the CPF. The rate paid to depositors in the CPF at the moment would appear to be low and some Members have suggested that the interest rate should be upped.”
“There is certainty in the present rate and corporations have adjusted themselves to the present rate of 40%. If we were to lower the rate, the impression could be created that the rate could also be revised upwards in the years to come and uncertainty is thereby created. I feel that, unlike personal income tax, the tax burden on companies is not that heavy as to discourage them from increasing their earning capacity. The tax burden on companies in Singapore is among the lowest in the ASEAN region. Other than company tax, we do not have other taxes like development tax and profit remittance tax. But there are other Members who compared Singapore with Hong Kong, arguing that our tax rate should be reduced if we were to be competitive with Hong Kong companies. To agree with this argument is to agree to a substantial reduction on company tax. It must be at least 10% and even at 10% reduction, from 40% to 30%, we still would not be competitive because 30% tax rate on company profits is certainly high as compared to the 161/2% for Hong Kong companies. If the company tax rate is reduced by 10%, the total tax loss would be in the region of $150 million, and since we still require revenue to finance expenditure we have to decide whether we should up personal income tax rates or other taxes to make up for the loss in the company tax. It is, therefore, a question of balancing the budget - which tax we should retain, which one we should up, and which one we should give away in order to achieve our overall purpose which is to sustain a high economic growth rate for the country. Also, although the rate of tax is 40%, many companies are not taxed at this rate because of the various tax incentives and concessions offered by the Government.”
“The approach that should be taken should be total, not one of tinkering with tax relief alone or offering concessions to the old in the cinemas or when they are taking buses. The Committee has not quite yet completed its deliberations, and it would therefore be premature for us to talk about enhanced relief for supporting aged parents. Moving on to the question of presumptive tax, we are fully aware that there are many problems connected with this particular new proposal. It is wrong, however, to conclude right away that presumptive tax will penalize the lower income hawkers or taxi-drivers, i.e. those who do not do so well as compared with the more successful ones. There is always a way out for them. If they feel that the presumptive tax worked out as a result of sample surveys is on the high side, they can keep simple accounts to show that their actual income is much lower than what the presumed norm set by the Inland Revenue Department is. I concede, however, that presumptive tax is inequitable in the sense that the more successful self-employed would still be evading tax, I would not expect the more successful self-employed to show accounts to the Inland Revenue Department with their ending up paying more tax. There is, therefore, still an element of inequity. But if these successful self-employeds are eventually caught by the Anti- Evasion Tax Unit, the penalty to be exacted from them will more than compensate for the loss in revenue in the meantime. The Member for Thomson suggested that company tax could be progressively reduced from 40% to 30%. I feel that there is no pressing need for a reduction this year. The rate of 40% for company tax has been maintained since tax on income was legislated in 1947.”
“If welfare programmes are being pressurized on the Government, these welfare programmes must be financed, and if Singaporeans pay tax they will know very well that tax will have to be increased in order to pay for subsidies and welfare programmes. Hence, the underlying philosophy of having as many people as possible within the tax net if their income exceeds a certain level. Also, if we were to increase the personal relief, it is not the lower income group that will benefit more but the higher income group, and hence the benefit is regressive. Several Members have also argued, seemingly convincingly, that the relief for aged parents should be increased, and they have quoted me from the Budget statement to urge that I back up my words with deeds. Again, relief in this regard is not meant to meet the full expenses of supporting aged parents. I would go back to what the First Deputy Prime Minister said some years ago, which was quoted by an hon. Member, that filial piety cannot be quantified in terms of dollars and cents. The relief that has been given by the current Minister for Finance - to me it is a signal of our intention to educate the Singapore public to show respect for the old. It should not be equated to the amount that is necessary to support aged parents. It cannot be, but it is an important signal that we have compassion for the old and that we want our young to look after the old. Of course, the question can be asked whether we should not signal again such compassion by upping the relief. There is a Committee looking into the problems of the aged, and it is chaired by the Permanent Secretary in the Ministry of Social Affairs.”
“Where stage shows are held not with the purpose of profit but to promote cultural development in Singapore, the Ministry has always given an exemption on entertainment duty. Several Members have pleaded once again - those who were in the House before plus new Members - that personal relief for income tax should be increased. Here, I would like to explain that reliefs are not meant to meet the total cost or expenditure to sustain a taxpayer, his wife or family. Reliefs are meant merely to ameliorate his tax burden. We could either increase the reliefs or adjust the tax rates. If we were to increase the personal relief by $1,000, the tax loss would be in the region of $35 million, and Members cannot expect an adjustment to tax rates. The Ministry is prepared to give a tax rebate of about $45 million for this year, taking into account the need for revenue and the expenditure required in the coming years. This could be attained either by an adjustment to tax rates or by an increase in personal reliefs, and of the two methods an adjustment to tax rate is a superior method. By increasing the personal relief by $1,000, we would be allowing some 64,000 taxpayers who are now within the tax net to get off the tax net. This is contrary to our basic philosophy of wanting as many people as possible in Singapore to pay tax. Those who earn an income should pay a reasonable amount of tax. The underlying thinking is not because we are hard-hearted and that we want everybody to pay tax for the sake of doing so, but because we feel that Singaporeans, by paying tax will understand better that there is no place for subsidies and welfare programmes.”
“The matter is not as simple as that because if we were to link pension to inflation, then there will be pressure from those who are not receiving pension. Pension applies mainly to civil servants who have retired, and so others who are not on pension and who have also contributed to the economy and who are on the Central Provident Fund scheme would likewise put pressure on the Government to suggest a formula whereby the CPF deposits should also be linked to inflation. There could be suggestions later on that even wages should be linked to inflation. Inflation indexing is not a scheme which we will recommend because in linking payments to inflation we will get ourselves into a situation where we are chasing our own tails! There is then very little real effort to try and tackle the real causes of inflation because everything is linked to inflation. If the cost of living goes up, wages will go up, our CPF deposits will go up and pensions will be adjusted. We are then not tackling the real problem, and that is, the causes of inflation. At any rate, the plight of the pensioners was taken care of last year when we gave a Singapore allowance to the pensioners. Maybe later on, the Singapore Allowance could be reviewed again by the Ministry of Finance. Coming to tax matters, the Member for Henderson disagreed with the increase in entertainment duty. He argued that, by increasing the entertainment duty, we would not be promoting cultural shows, stage shows, concerts, symphony orchestras, and so on. Here, the Member may not be aware that the Ministry of Finance has been very generous in granting remission of entertainment duty on matters pertaining to culture.”
“First, let me dispose of some establishment matters. The Member for Delta noted what he thought was an anomaly between the high number of vacancies in the Establishment and the retirement age for civil servants which he thought was 55. He is mistaken here, because officers appointed after 1st July, 1956 are compulsorily retired only at the age of 60. Those officers who were appointed before 1st July, 1956 have to retire at 55 years of age. These officers, however, provided they are in good health and have given satisfactory service to the Government, could be offered re-employment on a year-to-year basis. On medical benefits for civil servants, this is a matter which has been brought up time and time again. The guiding principle in providing medical benefits to civil servants or dependants of civil servants is whether the dependants are truly dependent on the employees of the Government. Where a woman officer has children who are solely dependent on her, as in the case of a widow, a divorcee, or a married woman who has been granted a decree of judicial separation, she is accorded medical benefits exactly the same as those of a married man in the civil service. And in the unlikely event a woman officer has a husband completely dependent upon her, the Ministry of Finance is prepared to consider the provision of medical benefits to him as a special case. The Member for Nee Soon and some other Members have criticized the two-tier system in implementing the National Wages Council's guidelines. The National Wages Council is meeting again to deliberate on new guidelines for the coming year. I am sure their criticisms and suggestions will be noted by the National Wages Council. Several Members have suggested that pension should be linked to inflation.”
“Mr Speaker, Sir, hon. Members of the House have been unanimous and generous in their support of the financial policy for the fiscal year 1981 -82. They have also been very generous in their criticisms and suggestions on matters which they found wanting in the Budget statement. Several Members have brought up matters which I feel do not properly belong to a debate on the budget. I would therefore not be able to answer those Members who have brought up questions on Culture and even on the HUDC. Such matters I will leave them to the Minister concerned to reply at the appropriate time in the Committee of Supply, if the Members would raise the matter again. I would, therefore, restrict myself to matters concerning the financial policy for the coming year. At this late hour, Mr Speaker, Sir, when the body and, more importantly, the mind are almost frozen, I propose to be very concise in my reply. I do not propose to be wordy and say nothing in my reply, otherwise the Member for Mountbatten will not find satisfaction in the replies which I will be giving.”
“It is true, however, that with rising affluence and income, the consumption pattern of Singaporeans will change over time. To provide a more-up-to-date picture of the consumption habits of our population, the Department of Statistics will conduct another household expenditure survey next year. On the last part of the question, it is difficult to be exact in estimating the minimum income level required to sustain a family as it will depend on many factors, such as individual tastes, age, physical attributes of household members, distance from place of work, and so on. As a rough guide, according to data from the 1977-78 household expenditure survey, a four-person HDB household in that year had an average family income of about $860 and spent an average monthly expenditure of about $707. Allowing for wage and price increases since 1977-78, it is estimated that the average family income would now have been about $1,060 compared to an average household expenditure of about $830. CLOSURE OF SCHOOL (Consultation with MP and Principal) 13. Mr Hwang Soo Jin asked the Minister of Education whether, in deciding on the closure of either a primary or secondary school, it is an established procedure of his Ministry to consult the relevant Member of Parliament and principal.”
“Mr Speaker, Sir, the Committee on Profiteering and Inflation (CPI) meets regularly to monitor changes in prices of essential commodities, examine the causes of inflation, and consider whether and how certain price increases could be moderated. The Committee has met 66 times so far. Inflation in Singapore is primarily imported. As we are dependent on imports, our domestic prices are influenced by changes in the international prices of energy, raw materials and other imports. We cannot avoid the effects that world inflation will have on our domestic prices. The CPI will, however, moderate such imported inflation by long-term purchases and diversifying sources of supplies of essential commodities such as rice and sugar, whenever possible. The CPI, together with the Department of Trade, also look out for profiteering practices. The Department will ensure that firms do not restrict supplies of essential commodities to artificially force up prices or to profiteer. On the second part of the question, the current basket of goods and services used in computing the Consumer Price Index is based on the most recent household expenditure survey conducted in 1977-78. It is representative of nearly 90% of all households in Singapore with monthly expenditures of $100-$1,499. It is also representative of the expenditure pattern of 90% of households living in HDB estates. The last two household surveys (one conducted in 1972-73 and the other in 1977-78) showed that patterns of expenditure did not differ significantly over the five-year period. The current basket is, therefore, probably still representative of the expenditure pattern of the majority of Singapore households, particularly those living in HDB estates.”