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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“But we know that very often doctors have different opinions as to the diagnoses or the diseases the patients may be suffering from. We therefore require the patients to be referred to the OPD so that the Government doctors can serve as a screen before these patients are passed on to the specialist clinics. It is better for the OPD to take on this additional load than for the specialist clinics. The Member suggested that GPs be allowed or be encouraged to take over post-operative and follow-up cases from hospitals. This suggestion is a good one provided he can come up with a list of takers. We shall be more than happy to come to an arrangement whereby patients can be passed on to GPs to attend to when these are follow-up cases. We may, however, have to insist on some control over the kind of charges which they intend to levy on the patients so that there is similarity in their charges and what the OPD would charge. The Member's suggestion that Government laboratory and X-ray facilities be opened for use by the GPs can be considered. In fact, GPs at the moment have free access to Government laboratory facilities for infectious diseases. For diseases outside this particular scheme, their request could be considered when they wish to use Government facilities but there must be a charge. The Member's proposal that polyclinics be turned into processing centres for GPs amounts to posting specialists to polyclinics from our point of view. We cannot afford this at this point of time as manpower is a problem which we have to tackle in the Ministry.”
“One is through rationing and the other is through the price mechanism. We think the price mechanism is the lesser of the two evils. When the water rates were revised in early 1973 and late 1975, there was an immediate reduction in the growth rate, from 7.7% in 1972 to 1.6% in 1973 and 1.8% in 1974. In 1975, the growth in water consumption was 9% and it was reduced to 1.7% in 1976 after the price revision. Therefore, price revision has a salutary effect on wastage of water. The minimum amount of water required by the lower income group will be taken into consideration in any water rates revision to ensure that these people are not adversely affected. May I now have your permission, Mr Speaker, Sir, to wear my other hat, that is, the Ministry of Health? The Member for Ayer Rajah commented that promotion of Singapore as a medical regional centre should not be at the expense of the national health care. We agree with that observation and I would give the assurance that turning the health industry into a prized industry to cater to regional requirements will not be done at the expense of national health care. He made several points, more of an administrative nature, regarding improvements to the GP referral system and so on. On his suggestion that patients be allowed to be referred by GPs directly to the specialist clinics instead of through the outpatient dispensary, I would like to say that the differential pricing for specialist clinics is, in fact, intended to keep the workload off from these clinics. If GPs are allowed to refer patients directly to specialist clinics, there is always the possibility of abuse. Of course, the Member for Ayer Rajah has suggested that these direct referrals be limited to clear cut cases.”
“If there are other desirable attributes of such industries, of course, we should encourage such industries despite the fact that they are big users of energy. Some Members have suggested that we should avoid wastage in the use of energy and I could not agree more with the suggestion. My Ministry intends to have an energy conservation campaign very shortly, sometime in May. The thrust of the energy conservation campaign will be on the inculcation in consumers of the need to conserve energy, good housekeeping in other words, and also to look into the enforcement of regulations to ensure that conservation is taken seriously by industrial and commercial enterprises, in particular, offices and hotels. A point was made by several Members of Parliament that in any revision of PUB charges, consideration must be given to the lower income group, i.e. those who use the minimum amount of energy or water, and that cost increases should not be passed on to them provided they are not the ones who are wasting water. The point is well taken and, in fact, that is the philosophy of the Public Utilities Board. All consumers who use less than $80 per month are granted, for example, a concession of not paying the 10% Government tax. We indicated in the Addendum to the Presidential Address that water rates may be revised. The rationale for this is the big increase in the rate of water consumption. In the last two years, the demand for water has grown too rapidly, by 7.4% in 1979 and 7.7% in 1980. If this rate of water consumption continues, there will be a water shortage in times of crisis, in times of drought, given our limited water storage facilities in Singapore. There are two ways in which we can control the rate of increase in the consumption of water.”
“Half of this would have to be borrowed. The other half could be financed from operating surpluses generated over previous years. The point remains valid, however, that as a monopoly a statutory board must exercise all care to ensure that there is no inefficiency. The PUB is aware of this and looking at the cost of generating electricity, it would appear to me that the Board has exercised due care in keeping costs low. Fuel oil accounts for 77% of electricity. Interest on loans and depreciation 15%, maintenance of equipment and so on 5%, and wages only 3%. Oil price has gone up from S$39 in 1972 to S$479 per ton in 1980, an increase of 1,130%. The average price of electricity per kilowatt hour was 6.38 cents in 1972. In 1980, it was 17.74 cents, an increase of only 180%. This, to me, proves that the PUB has in fact minimized price increases through higher productivity and efficiency, through the proper use of plants ind manpower to produce electricity. There is a limit, however, to the extent that the escalating oil prices can be offset by improvement in efficiency. Once they have purchased better equipment, it is more difficult to absorb the next round of increases in the cost of fuel oil. One Member suggested that the abolition of promotional block rates might affect industries which are desirable and yet, at the same time, are high energy users. I can assure the House that the abolition of promotional block rates should not affect the overall attractiveness of Singapore as an investment centre for such industries because the cost of electricity in Singapore is still lower than in Hong Kong or Japan. And then there is also the point of whether Singapore should encourage industries which are large users of energy.”
“The point, however, is taken that wherever possible we should encourage joint ventures between multi-national companies and these young professionals or executives. But we operate a free enterprise economy. We cannot require multi-national companies to have local shareholders. It is a decision which we leave entirely to the investors. Despite the number of Members of Parliament who have made comments on the economic restructuring and other matters, there are really very few points for me to answer on the economic side. Moving on to the Public Utilities Board, several Members of Parliament seem unable to reconcile what they call the hefty surpluses of the PUB with the frequent increases in PUB charges. They appear to labour under the misconception that the PUB is out to make profits. The Public Utilities Board does not have shareholders. There is, therefore, no vested interest for the PUB to make huge profits because who would it distribute the profits to? It is true that the PUB had an operating surplus of $119 million in 1979. Taken in isolation, this figure appears to be hefty but related to the total investments in property, plant and equipment at historical cost, the return on these investments comes up to only 4%. The surplus is required to repay loans taken from the World Bank, the Asian Development Bank and other sources which were used to finance development. The Board has an outstanding debt of $1.2 billion which has to be repaid and hence the need to generate a small surplus. If there were no surplus generated every year, the Board would be regarded by banks as a non-credit-worthy enterprise and the Board will have difficulty in getting-fresh loans to finance development. The PUB intends to spend some $2.2 billion over the next five years.”
“Mr Speaker, Sir, as I have to cover several areas, I propose to be concise and precise. On Research and Development, the Member for Boon Lay suggested that we should set up a National Coordinating Committee to implement R & D. Perhaps this suggestion can be considered at a later stage. In the meantime, the Ministry of Trade and Industry will perform the role of coordinating R & D. R & D must not be divorced from the end-users in particular industries and hence my Ministry will, wherever possible, consult the end-users and the National University of Singapore in undertaking this task of coordinating R & D. The Member for Changi suggested that the Skills Development Fund should be used to promote R & D beyond manpower, for example, safer ways of manufacturing products. I do not believe the Minister for Finance will agree that that is the proper use of the Skills Development Fund which is meant for upgrading manpower. Research staff can, however, have recourse to the Skills Development Fund if further training and upgrading are required. In fact, SDF has provided a total sum of $233,000 to three companies to train engineers for R & D work. The Member for Chong Boon suggested that young professionals be encouraged to go into ventures through joint participation with multi-national companies. He thought that finance was the least important problem. Here, I would disagree with him. Generally, young professionals who work in multinational companies have picked up the relevant experience and they feel that they can branch out into supporting industries on their own. Finance to them is an important problem and the Small Industries Finance Scheme will help the young professionals to branch out into ventures on their own.”
“Just one concluding remark, Mr Speaker, Sir. The Member for Whampoa is, in fact, sharing the same sentiments as myself, that is, both of us are against price fixing because it is impossible to do so and both of us are against the formation of cartels to fix prices. As I remarked earlier, my Ministry is looking into the possibility of prohibiting cartels from engaging in price-fixing activity. They can have their associations. They can have their social activities. But they should not be allowed to fix prices. Question put, and agreed to. Resolved, That Parliament do now adjourn. Adjourned accordingly at Sixteen minutes to Five o'clock p.m. sine die. WRITTEN ANSWER TO QUESTION CHANGI INTERNATIONAL AIRPORT (Medical clinic) 1. Mr Teo Chong Tee asked the Minister for Health if his Ministry will consider setting up a unit at the new Changi International Airport to render emergency medical treatment to passengers on arrival, prior to departure or in transit, a service which is not presently available at the Paya Lebar International Airport.”
“As I said earlier, prices are determined by market forces but, nevertheless, cost data might be useful to the public so that they can judge for themselves whether the supplier is charging an unreasonable profit and, if it is, whether they, as consumers, would wish to deny that supplier the benefit of exorbitant profit by not purchasing that particular item.”
“The two associations, I understand, are registered under the Trade Unions Act, and under the Act they are permitted to impose restrictive conditions on trade and to fix prices. As I said earlier, I do not subscribe to the thesis that prices should be fixed either by the Department of Trade or by a cartel. Therefore, we would be looking into the feasibility and desirability of introducing legislation to prohibit such associations from engaging in price-fixing activities. The Member for Mountbatten suggested that one of the ways to curb price increases by the two associations was for the Ministry to encourage NTUC to take up premises in HDB estates to run coffee shops or coffee houses. That decision must rest with NTUC. But on my part, I would not encourage NTUC to go into the coffee business or into the provision of soft drinks to customers. That is not the role of NTUC. There are other means whereby we can curtail unnecessary profiteering. But NTUC should not depart from its basic role of organizing workers to improve their welfare through better working conditions. I support the observation of the Member for Mountbatten that CASE has a useful role to play, and for CASE to play a useful role both Government and consumers must support its activities. In the ultimate, whether we can succeed or cannot succeed in curbing profiteering, consumers must play the role. CASE, together with the Department of Trade, can help by publishing and publicising cost data.”
“If prices are too high, consumers can always withdraw consumption of that particular item or services or they can look for alternative forms of goods and services. But that does not mean that the Government has no interest in the level of prices of goods and services in Singapore, in particular, the prices of essential goods. There is a committee on Profiteering and Inflation in my Ministry, whose role it is to ensure that there are no restrictive practices to force up prices artificially. It is the primary role of the Committee on Profiteering and Inflation to ensure that no business operators group themselves together to fix prices by artificially restraining supply in order to enhance their profits. When the two associations, the Singapore Foochow Coffee Restaurant and Bar Merchants Association and the Kheng Keow Coffee Merchants Restaurant and Bar Owners Association, informed the Department of Trade on 4th November 1980 that they were going to raise prices, the Department immediately asked for cost data. These data were submitted on 14th November 1980 and on that very day the two associations held a press conference to announce that the prices of coffee, tea and other beverages would go up on 15th November 1980. I am not looking now into the justification of whether the price increases were right or wrong. But I would like to register our displeasure at the almost blatant disregard of Government authority. Surely the two associations should heed the request of the Department to defer price increases until the Department could have a look at the data submitted by the two associations. Government authority must prevail and must be seen to prevail.”
“Mr Speaker, Sir, the Member for Mountbatten has touched on the fundamental of economics, i.e. how prices of goods and services should be determined. I am not at all convinced, Mr Speaker, Sir, that prices should be determined on the basis of cost plus a profit margin. If that was so, there would be very little incentive for business operators to cut down costs. They can pay more to their employees. They would not worry too much about the cost of imports because they can easily pass on, with the approval of some authority, the increased cost. Therefore, I am not convinced that prices should be on the basis of cost plus a profit margin. Neither am I convinced that prices should be fixed, whether by cartel or by the Department of Trade. I have spent some years of my working life in Fullerton Building drinking coffee supplied by the canteen operator. The canteen operator was given the canteen premises free of rent but the prices in which they could charge were controlled by the Ministry of Finance. The premises was tendered out to canteen operators and normally the operator that submitted the lowest price-list would be given the contract to provide beverages and food to the staff in Fullerton Building. Prices were, therefore, fixed at a low level. For example, a glass of coffee with milk, when I was there, cost 10 cents. Up to now, I am not sure whether the coffee with condensed milk that I drank tasted like Singapore River water or dish-water. Price determination of goods and services is therefore best left to market forces, i.e. to supply and demand. In this way, the consumer has almost as much power as the supplier in determining prices.”
“Sir, it is not a question of a typographical error. It is a question of whether there is a mental error in the interpretation. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Goh Chok Tong]. Bill considered in Committee; reported without amendment: read a Third time and passed. ADJOURNMENT SINE DIE Resolved, "That at its rising today Parliament do stand adjourned sine die." - [Mr E W Barker]. ADJOURNMENT MOTION”
“Mr Speaker, Sir, the Minister for Finance has already given a reply on the definition of Research and Development to the question raised by the Member for Whampoa. I will therefore not give a reply because I share the sentiments of the Minister for Finance on this particular issue. That reply would therefore cover the observation of the Member for Whampoa on the economic and management services. The thrust of the incentives, as given in the Budget statement, was for the purpose of improving the manufacturing sector, in particular, research and development. As the Minister for Finance has pointed out, there are other incentives for improving human capital for economic and management services. If these are not adequate, improvements could be considered at a later stage. As to the observation of the Member for Whampoa on clause 3, the intention, as far as my Ministry is concerned, is for a single criterion to apply. In other words, it is not necessary to have a combination of two of these conditions before the incentives would apply. This Bill has been drafted by the Attorney-General's Chambers and, therefore, I take it that the correct interpretation of or is that only one of the three conditions needs to be satisfied. I myself am not a legal man, and therefore I do not wish to quarrel with the legal opinion of the Attorney-General. I do not have the audacity to quarrel with the Minister for Law either, who is here anyway, on this particular point. On technical services, I do not have the Income Tax Act with me. I therefore cannot give an answer as to whether "technical services" has been defined in the Income Tax Act.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In the 1980 Budget Statement, I announced a package of four tax incentives for promoting Research and Development (R & D) activities in Singapore. Three of these incentives involve amendments to the Income Tax Act. These amendments have been incorporated in the Income Tax (Amendment No. 2) Bill, 1980, which the House has just considered and passed. The fourth incentive, namely, the granting of investment allowance of up to 50% of the capital investment in research and development made by a company, requires an amendment to Part VIA of the Economic Expansion Incentives (Relief from Income Tax) Act. The purpose of this short Bill is to give effect to that incentive. The existing section 46B of the Economic Expansion Incentives (Relief from Income Tax) Act provides that investment allowance may be granted to a company which carries out a project for the manufacture or increased manufacture of any product or for the provision of specialised engineering or technical services. The present Bill will extend the scope of section 46B to allow investment allowance to be granted to companies carrying out projects for research and development. A company may qualify for investment allowance in respect of an R & D project if the project is approved by the Minister. Approval for investment allowance will be given on a case by case basis. The amendments to section 46A of the Act are of a consequential nature. Sir, I beg to move. Question proposed.”
“In line with the Housing and Development Act, the Bill seeks to enable the Corporation to impose penalties on the owners who contravene the Act, instead of acquiring the flats, where the offences are not serious. Under the existing rules of the Corporation, a person cannot apply for a Jurong Town Corporation flat if he owns a property during the 30-month period before the date of his application for such flat. He is also prohibited from owning another property after the date of the purchase of a flat. The Bill seeks to extend this prohibition to cover the period between the date of application and the date of purchase of a flat. The Bill also empowers the Corporation to take enforcement action where the flat is misused by the owner or any other occupier of the flat. Under the existing law, the Corporation can take such action only if the owner has misused the flat. The other aspect of the Bill is to make clear that any notice or document sent by the Corporation to the owner of a flat by registered post or affixed to some conspicuous part of the flat shall be deemed to be of good service. This will enable the Corporation to serve notices on owners of flats who try to evade service of notices by locking up their flats and staying away. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Goh Chok Tong]. Bill considered in Committee; reported without amendment: read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr E.W. Barker]. Adjourned accordingly at Four minutes past Four o'clock p.m. to a date to be fixed.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill seeks to make a number of amendments to the Jurong Town Corporation Act, mainly to Part IV of the Act which deals with the sale of flats, houses and other buildings owned by the Corporation. The amendments made to the Act are based on similar amendments made to Part IV of the Housing and Development Act which deals with the sale of Housing Board flats and buildings. At present, an applicant or owner of a Jurong Town Corporation flat, his spouse or authorised occupier is not allowed to own any other property. The Bill seeks to allow such applicant or owner, his spouse or authorised occupier with the written consent of the Corporation to purchase any commercial property not exceeding $250,000 in value, or such higher value as the Minister may allow, if he uses it to carry on his own business. The amendment is similar to that made to the Housing and Development Act. Recently amendments have been made to the Housing and Development Act to enable the Housing and Development Board, through its authorised officers, to act for parties in the resales and in other transactions of Housing Board flats in cases where the parties are not represented by any solicitors. The Bill seeks to empower the Corporation to provide similar services for owners of Jurong Town Corporation flats in the resale or other disposition of their flats. This is to help the flat owners to reduce legal costs. The Act allows the Corporation to acquire a flat sold by the Corporation if the owner contravenes certain provisions of the Act. However, for less serious offences, this penalty is considered too harsh and can cause considerable hardship to a family.”
“Mr Speaker, Sir, I would not be able to speak for the Indonesian government at this stage. They would have to ratify the Agreement on their side. On our side, I have been authorised by the Government to sign the Agreement and in accordance with our own constitutional requirements, that will be sufficient for the Agreement to take effect. So it is more a question of waiting for ratification from the Indonesians. MILITARY PRESENCE IN SOUTH EAST ASIA (Balancing of) 19. Mr P. Selvadurai asked the Minister for Foreign Affairs if, in view of recent press reports to the effect that a superpower was establishing a military base in Cam-Ranh Bay, he will consider initiating moves, in concert with his ASEAN counterparts, to balance the said military presence in South East Asia.”
“Mr Speaker, Sir, the question has been overtaken by events, and I am pleased to inform the House that I have this morning signed the Agreement between Indonesia and Singapore for Economic Cooperation in the Development of Batam Island. The Agreement focuses on the cooperative effort to promote the development of the Industrial Region of the Batam Island, which consists not only of Batam Island proper but also the group of islands of Janda Berias and Islands of Tanjung Sau, Ngenang and Kasem. The Agreement covers areas of mutual interest in trade, industry, banking, communication, taxation, customs and immigration. The Agreement will come into force immediately after the respective governments have fulfilled the constitutional requirements and notified each other. The Agreement will remain in force for five years from the date of implementation, after which it can be extended with the consent of the two governments. The full text of the Agreement will be published when the necessary formalities to bring it into force have been completed by the two parties.”
“Mr Speaker, Sir, I am fully aware of the implications as mentioned by the hon. Member for Whampoa. However, the exchange rate determination comes under the Ministry of Finance. QUESTIONS FOR ORAL ANSWER (Exemption from Standing Orders) 3.25 p.m. With the consent of Mr Speaker and the general assent of Members present, Question put, and agreed to. Resolved, "That, notwithstanding the Standing Orders, Questions for Oral Answer set down in the Order Paper may be taken after 3.30 p.m. at today's sitting." - [Mr E.W. Barker]. ORAL ANSWERS TO QUESTIONS BATAM PROJECT (Position) 18. Mr Ng Kah Ting asked the Minister for Trade and Industry what the position is with regard to the proposed agreement between Indonesia and Singapore under the Batam Project.”
“Mr Speaker, Sir, it is true that one can mitigate the impact of imported inflation by allowing the currency to appreciate vis-a-vis currencies outside Singapore. But there are also other implications of an increase in the exchange rate and, that is, it would affect the exports.”
“Mr Speaker, Sir, I do not know which part of Milton Friedman's arguments the Member was referring to because while in Singapore he touched on many things. But, in essence, if the Member is talking about the free-play of market forces as a means to check inflation, and that is generally the thrust of Dr Friedman's arguments, then we think that is applicable in Singapore. We are trying to use market forces to improve efficiency in the economy so that cost increases as a result of wage-cost increases and oil price increases will be offset by productivity increases.”
“Mr Speaker, Sir, I am now clear as to the import of the question and, that is, the effect of inflation on people who are unable to increase their earning capacity. That is quite different from the causes of inflation. If a person is a pensioner, it is true that he will suffer the impact of inflation and, frankly, there is no way in which the pensioner can be compensated for such pernicious effects of inflation.”
“Mr Speaker, Sir, I do not quite see the rationale of that question, i.e. increasing the earning capacity of people to combat inflation. I do not see the direct linkage or cause of inflation in that question.”
“Mr Speaker, Sir, we do not target to achieve inflation in Singapore. We aim to minimize it. Ours is an open economy and inflation is mostly imported. The Government will, however, continue to keep domestic inflation down by improving productivity in the economy. Our inflation rate for this year is estimated to be around 9%. Barring any major oil price increase in the next 12 months, our inflation rate in 1981 should be lower than this year's. Further oil price increase is a major factor that will determine the rate of inflation in Singapore in 1981. Higher oil prices will mean that we have to pay more for our oil and other imports. Our inflation will therefore depend on the action of OPEC and the consequences of the Iraq-Iran war in the next 12 months. On the domestic front, higher cost of housing construction due to higher oil and labour costs will affect the level of inflation. If the effect of any price increase in oil imports is to be ameliorated in the next 12 months, there must be a conscious effort by Singaporeans to conserve energy, thereby reducing our need for oil imports. They must also be more productive and use energy-saving devices so that higher oil import and wage costs are offset by productivity increases. As consumers, they must spend wisely and not excessively. With these efforts, we should be able to minimize the rate of increase in our inflation in the next 12 months.”
“Sir, unlike trade missions, in the case of missions abroad to study technological developments, there are other incentives available for the latter group, such as the accelerated depreciation allowance for investments, investment allowance scheme, capital assistance scheme for the upgrading of industries, and small industries finance scheme for purchases of capital equipment for them to upgrade their operations. There are, therefore, sufficient incentives available for even the small companies to participate in missions abroad so as to absorb new technology which they can then introduce when they come back. REPORT OF THE ELECTORAL BOUNDARIES DELINEATION COMMITTEE (Statement by the Minister for Law and Science and Technology) 2.55 p.m.”
“Sir, the expenses connected with their studies abroad are deductible. The companies should have at least the resources to go abroad before they can claim any tax deduction. That part of the expenses which they will incur on study missions abroad are legitimate expenses and are deductible for tax purposes.”
“Mr Speaker, Sir, the device of granting of double tax deductions to companies should not be indiscriminately used as it could be abused, besides causing revenue loss. If it is in the interest of a company to participate in a study mission, it should do so, and it can deduct all legitimate expenses. Double tax deductions should not be a critical factor in determining participation in study missions. Moreover, confining the incentive to study missions organised by government agencies will discriminate against those organised by the private sector either as a group or individually. Also, sufficient effective incentives already exist for manufacturers to upgrade their technology and I do not see the need for an additional incentive. Their best incentives are the benefits which a technological upgrading will bring for their enterprise.”
“Mr Speaker, Sir, Jurong Town Corporation's policy is to locate industrial estates with suitable clean factories near population centres so that residents can work near their homes. The Changi area is suitable for industrial development. There are population centres in the Changi and Tampines areas, and the new Changi International Airport will stimulate the growth of aviation supporting and servicing industries. JTC has therefore quickened the development of 106 hectares of land at the Loyang Industrial Estate. But looking ahead, JTC anticipates additional demand for factories and industrial sites in Changi. The JTC has now earmarked an additional 73 hectares of land at the Changi North Industrial Estate for industrial development. Acquisition of sites will commence towards the end of 1980. Development works will proceed immediately thereafter. STUDY MISSIONS TO COUNTRIES WITH HIGH TECHNOLOGY WORK (Double deduction against tax for expenses) 11. Mr Eugene Yap Giau Cheng asked the Minister for Trade and Industry whether his Ministry will consider the grant of a double deduction against tax for expenses incurred by companies that participate in study missions organised by government agencies to countries with industries engaged in high technology work.”
“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. CENTRAL PROVIDENT FUND (AMENDMENT) BILL Order for Second Reading read, 5.00 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 85 and Clause 2 of Article 87 of the Constitution of Singapore for additional expenditure in excess of the provision authorised by the Supply Act, 1979. The additional sum has been scheduled as a Supplementary Estimate which has been considered and approved by the House as Command Paper No. 3 of 1980. 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 85 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, 1980 to 31st March, 1981. 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, 1980 to 31st March, 1981, and appear on page 27 of Command Paper No. 4 of 1980. The Supply Bill, when approved, will empower me to issue warrants, authorising 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. Mr Speaker: I think it will be a good idea to take the Suspension now. I suspend this Sitting and will take the Chair again at 4.55 p.m. Sitting accordingly suspended at 4.25 p.m. until 4.55 p.m. Sitting resumed at 4.55 p.m [Mr Speaker in the Chair] SUPPLY BILL Order for Second and Third Readings read.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. First Resolution reported - "That the sum of $2,988,876,790 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, 1980 to 31st March, 1981, contained in Paper Cmd 4 of 1980." Second Resolution reported - "That the sum of $3,616,633,460 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, 1980 to 31st March, 1981, contained in Paper Cmd 4 of 1980."”
“Mr Speaker, Sir, may I first of all explain that Haw Par Villa does not belong to the Government and, therefore, any plans to preserve and maintain the Villa must come from the owners. In April 1979, the owners, Haw Par Brothers (Pte) Ltd. made an offer to the Government to take over the Villa and the land, i.e. Haw Par Brothers (Pte) Ltd. was prepared to donate Haw Par Villa to the Government. The Singapore Tourist Promotion Board, on behalf of the Government, was agreeable, in principle, to take over the Villa as it is a major tourist attraction, provided that the land can be transferred free from encumbrances of any lease or sub-lease, if any. There is a lease between Haw Par Brothers (Pte) Ltd. and Haw Par Brothers International Ltd., whereby the land has been leased to Haw Par Brothers International Ltd. for 20 years from 1970. Haw Par Brothers International Ltd. was reluctant to surrender the lease, and thus the Government was unable to take over the Villa. Recently, however, Haw Par Brothers International Ltd. suggested to the Singapore Tourist Promotion Board to join with them in a venture to jointly preserve and maintain the attractions of Haw Par Villa. The proposal is under study by the STPB. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1980 TO 31ST MARCH, 1981 Order read for resumed consideration in Committee of Supply [6th Allotted Day]. [Mr Speaker in the Chair] Head W -”
“Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates for the financial year 1st April, 1980 to 31st March, 1981 and ask leave to sit again on Monday, 24th March, 1980.”
“Sir, first of all, there is no contradiction in my remarks that we should be restrictive on the issue of employment passes. The qualification is, we should be restrictive in the issue of passes to expatriates who do not bring along with them skills which are not already present in Singapore. If the expatriates have skills which are better than Singapore's. I have made it very clear that we welcome such inflow into Singapore. So there is no contradiction in terms of the policy of free trade and free competition. But I see a contradiction if we were to prevent these companies from coming here, even though the local entrepreneurs may be the ones who are affected. But in many instances, it is not the local entrepreneurs who are affected. It is the established British trading houses which could be affected. Their lines of distribution for certain products could be taken away from them as a result of these foreign manufacturers wanting to do their own distribution in Singapore. I cannot see the logic of this unless in the view of the manufacturer they can do a better job here in Singapore than the existing distributor. To prevent local lines of distribution from being taken over by the principals, I think there is no way out but for the local distributor to be efficient. If he can prove that he is efficient, then I do not see why the manufacturer would like to disrupt his own market share. The manufacturer can take over the existing market but there is no guarantee that he can retain what he has. The market can shrink if his own marketing efforts are not efficient once he takes over the distribution of his products.”
“This is where the employment pass can be used to ensure that only personnel who can bring along with them expertise are allowed to come in. Employment passes should not be given liberally to expatriates if they come over only to do a job which is no better than what a Singaporean can do. So in terms of issue of employment passes for expatriate personnel for such companies, from an administrative point of view, we shall be restrictive in recommending the issue of such passes. I hope my reply allays the fears of the two Members who touched on the issue. 5.30 p.m.”
“Meaning whatever the price, there will still be demand by our women for such items. Therefore, the distributors will find it profitable for them to retain the original price even though tariffs have been removed. I shall, however, ask my Department of Trade to monitor the price situation. We can only monitor because I do not think we can insist that prices should come down as a result of the removal of ti3riff duties because we should leave pricing to the private sector. But I would expect, as I remarked earlier on, that prices should fall as a result of the removal of tariffs. The second point is more basic in economic policy. If we believe in free enterprise, free competition and free trade, do we believe it all the way or do we believe it pan of the way? We have just removed tariffs for local industries. And to interfere with the distribution system is, in fact, to institute measures which are worse than tariffs. We are interfering if we prevent the overseas principals from establishing companies here to take over the distribution of their products in the private marketing arrangement. Generally, overseas companies would take over the distribution of their own products only when, in their own assessment, they believe they can have a bigger share of the market. If the local agents are performing an efficient job and can perform even better than the overseas companies coming over here to establish offices, then I do not see the commercial logic for these overseas companies to take over the agencies. I would therefore be loathe to interfere with business arrangements. The point, however, can be made as to what contribution these foreign companies bring to Singapore.”
“Mr Speaker, Sir, two issues have been brought up for discussion. One is whether prices would drop as a result of the removal of protective tariffs on certain products. The second issue concerns the taking over of established agencies in Singapore by the principals. To answer the first question, I would expect that prices should fall as a result of the removal of tariffs. If prices do not fall, the local product would still enjoy a similar position as before, i.e. there is still an element of protection. If the distributors of imported goods want to increase their share of the market, one way to do so is for them to reduce prices. I would also expect local products that are substitutes for the imported products to fall in price over time, though not immediately. The whole rationale for the removal of protective duties is to bring about greater efficiency in the production of these goods. And if we succeed in doing so, i.e. if the policy works as we expect it to work, then the cost of production of the goods should fall. An example was cited in the case of cosmetics where prices did not fall. J think there is a difference between cosmetics and the manufactured products like airconditioners, refrigerators and television sets. In the case of cosmetics, we do not have firms in Singapore to produce these products which are comparable in quality to those which are imported into Singapore. There is also the value attached to the brand name of imported products. The demand for cosmetics also appears to be fairly inelastic.”
“Mr Speaker, Sir, all I can do is to convey the Member's remarks to the Finance Minister for him to take note.”
“Mr Speaker, Sir, in fact, the question should have been asked at the debate on the Finance Ministry and the Member would have got an answer. I am justifying from my point of view why the loan was converted into a grant. I do not think that the decision was ultra vires because the Finance Minister, I believe, has the authority to decide whether or not to convert the loan into a grant.”
“Sir, my understanding is that the demand exceeds the supply. If the situation is indeed what has been described to me, namely, that demand does not exceed supply because of the construction of new housing estate, then the suggestion can be considered by the JTC.”
“Mr Speaker, Sir, I would not be able to give him the exact figure. But I have here a table (Cols. 1233 - 1234) which, in fact, should have been given in the first part of my answer to the Member for Ang Mo Kio. The table gives the figures from 1972 to 1979 on a year by year and industry by industry basis. It will, however, be too tedious for me to read out the figures together with the quantum of investment per year. I shall hand a copy to the Member for Ang Mo Kio and have this appended to my statement. The figures here would give an indication of the success of the companies involved. For example, if those companies that were formed in 1972 were still operating in 1979, they would be regarded as still in operation. I do not know the profits of these companies, so I would not use the word "success" but they are still in operation. table - Gross Joint-Venture Projects Committed During 1972-1979 (Cols. 1233 - 1234) MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1980 TO 31ST MARCH, 1981 Order read for resumed consideration in Committee of Supply 13rd Allotted Day]. [Mr Speaker in the Chair] Head Q - 2.38 p.m.”
“Mr Speaker, Sir, I do not have the figures for 1970 and 1971. However, I could give him figures from 1972 onwards. The reason is that EDB started compiling these figures only from 1972. Between 1972 and 1979, 244 companies were set up as joint ventures between foreign investors and local entrepreneurs. The investment committed by these companies amounted to S$1.3 billion. All these joint venture companies were promoted and serviced by EDB. The list of these projects is not exhaustive as the EDB does not have information on joint ventures which were formed outside the EDB, that is, those which were not promoted or serviced by the EDB.”
“Mr Speaker, Sir, two criteria have been cited just now. The question is whether we should be liberal in giving out finances under the Scheme when we are fairly confident that some of the com- panies would not be able to return the loans given or to give a return on the equity capital. A certain amount of prudence would, therefore, have to be exercised by the officials in charge to ensure that public funds, whilst being given out to aid industries, are not wasted on projects which do not in their view have a chance to succeed. MANUFACTURING INDUSTRY (Joint ventures with foreign investors) 2. Mr Yeo Toon Chia asked the Minister for Trade and Industry how many local companies have set up joint ventures with foreign investors in the manufacturing industry, year by year, since 1970, giving the types of joint venture; and how many of these joint ventures were initiated by the Economic Development Board.”
“Sir, during this period, loans were granted to 16 companies, 10 of which were wholly-owned foreign companies, and the remainder were joint ventures which include Singaporean interests.”
“Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1980 to 31st March, 1981.”
“This will benefit the previously non-taxpaying pensioners. I hope this will meet part of the way regarding the complaints raised by Members of Parliament that the Government has neglected this particular group of people who have contributed to the economy of Singapore in the past. The Member for Moulmein suggested the idea of a CPF voluntary savings scheme. The real question is whether we can afford to pay an interest rate of 8-12% on a voluntary savings scheme. We have the institution in the POSB whereby the public is urged to save and the savings are exempted from tax. The Member's proposal is to have a voluntary saving of 2-5% going into the CPF, attracting a return of 8-12%. So the key issue is whether the CPF can afford to give a rate of return of 8-12%. The CPF will have to invest the funds to have a return higher than this figure if it is to be able to afford to service this return on a voluntary saving. The more important point is the observation that the funds in the CPF are diminishing in value and that therefore a way must be found whereby the CPF depositors can protect as much as possible the real value of the funds in the CPF. This is the real concern. I do not have any ready answer on how we can do this, but I think it is serious enough for us to take it up with the Minister for Labour to see whether we can find a way whereby the real value of at least part of the CPF deposits of those who are now not enjoying HUDC or HDB purchase benefits can be preserved. I believe I have covered most of the points. In case I have not, Members of the House are at liberty to ask them in the form of Questions for Oral Answer at a later stage. With that, I thank Members of the House who have taken time to give me some useful constructive comments.”
“But more important, in our set-up we must not give the impression that "We have arrived" and can afford a 5-day week like many of the countries in the West. If we do, given a few more years there will be pressure, perhaps from the Member for Bedok, for a 4 1/2-day week because some other countries are practising 4 1/2-day week. So we need to have a different philosophy. We need to work. We need to provide services over 5 1/2 days; in some cases, over seven days a week, 24 hours a day. The benefit to the economy of a 5 1/2-day week, I believe, exceeds the energy that could be saved, although I am not sure whether we, in fact, will be saving energy by having a 5-day week. On pension, the Members who made the comment may not be aware that, in fact, the quantum for the New Singapore allowance has been increased with effect from the 1st January of this year. Circulars have been sent out to the Pensioners' Association. The Accountant-General has been asked to pay this and I believe the revised quantum has been paid out to the pensioners. As a matter of interest, Members may wish to know that for a pensioner drawing a gross pension of $100 or less per month, the allowance has been increased as follows: The pre-revised figure is an allowance of 50% of gross pension with a minimum of $15 per month or a maximum of $30 per month. Revised, an allowance of 50% of gross pension with a minimum of $35 per month or a maximum of $50 per month will be paid. There is, therefore, an increase of $20 per month. For a pensioner drawing a gross pension above $100 per month, pre-revised, a flat rate allowance of $30 per month, subject to a maximum gross pension of $650 per month. Revised, a flat rate allowance of $50 per month, subject to a maximum gross pension of $670 per month.”