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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“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to a certain resolution. Resolution reported - "That the sum of $25,721,200 shall be supplied to the Government under the heads of expenditure for the public services shown in the First Supplementary Estimates of Expenditure for the financial year 1st April, 1979 to 31st March, 1980 contained in Paper Cmd. 3 of 1980." Mr Goh Chok Tong: Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolution. Question put and agreed to. Resolution accordingly agreed to. ARBITRATION (AMENDMENT) BILL Order for Second Reading read. 3.09 p.m.”
“Sir, the answer is yes, and it will be further strengthened. REVISION OF HOSPITAL CHARGES (Statement by the Minister for Health) 2.40 p.m.”
“Mr Speaker, Sir, I do not have the figures off-hand. Perhaps we could leave this matter till I come to the Budget Statement, when I will be making further statements on the Trade Development Board.”
“Mr Speaker, Sir, first of all, not all the 29% will require Government assistance to help them with their exports. They are already exporting on their own. Perhaps a certain percentage of them will require the help of Government agencies. As I have mentioned, there are at present, incentives, the commercial secretary service and other schemes which are run by the Department of Trade to help these exporters export their products.”
“Trade expansion ultimately depends on our exporters and manufacturers. It is not possible for a Government organisation, even in the form of an autonomous body like a statutory board, to undertake the task of private enterprises. To export successfully, our manufacturers must have the products to sell, know their markets, and sell. These are not functions which a centralised body can perform well. Secondly, 71% of our exports are undertaken by multinational companies, and they are unlikely to need the services of a Trade Development Board. Thirdly, it was proposed that the Board should be partly financed from a cess levied on all trade declarations. This is inequitable. Exporters who do not need the services will also have to pay the fees. It will affect their price competitiveness. My Ministry feels that exporters who cannot sell overseas effectively on their own, either because they are too small or lack the know-how, should make use of international trading companies. Tax incentives have already been given to encourage the formation of multi-activity international trading companies. These are sales oriented companies that will be more effective than a Trade Development Board.”
“Mr Speaker, Sir, since the Trade Development Council was proposed some three years back, my Ministry has had discussions with representatives of the private sector on the desirability and feasibility of setting up a Council. As a transitional measure, the Trade Development Committee was set up on 1st August, 1978, as a channel for obtaining the contribution of the private sector on trade development programmes. This Committee has now recommended that a Trade Development Board be formed to take over and intensify the functions of the Trade Development Section of the Department of Trade. Its activities are to include: (i) Promotion of entrepot trade and exports of Singapore products; (ii) Identification of potential export markets; (iii) Provision of trade information, e.g., tariffs, licensing and all relevant legal and commercial requirements in importing countries; (iv) Assistance in organising inward and outward trade missions: (v) Servicing trade enquiries; and (vi) Coordinating and directing the activities of overseas trade offices. The main argument for a statutory board was that it would have greater flexibility and autonomy than a Government department in management, personnel administration and financial matters, and hence would be more effective. The Committee also proposed that the Board be financed through a cess on all trade declarations. My Ministry, after studying these recommendations, decided that it was not necessary for us to set up a separate body to do what had been done by the Department of Trade and my Ministry all these years. The crucial point is not whether the Board will have more flexibility than the Department of Trade, but whether this flexibility alone is enough to promote trade more effectively than the present methods.”
“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 Twenty-seven minutes past Three o'clock p.m. to a date to be fixed. Annex - COMPOSITION AND TERMS OF REFERENCE OF THE COMMITTEE (Cols. 529 - 530)”
“The present Bill is therefore necessary to ensure that in computing the export profit of an export enterprise which qualifies for tax relief provided by section 32 of the Act, such part of the capital allowance as may be attributable to the export profit qualifying for the tax relief must be deducted. The Amendment will come into effect from the year of assessment 1980. The Government's view is that the Amendment does not change the incentives that it is granting or have granted to approved companies. What it does is to correct an imprecision in drafting that has required the full judicial process of 10 years to settle. The Government has received representations from some companies that the Bill should not apply to those already granted export enterprise certificates, as they claim it undermines the basis on which they agreed to establish manufacturing plants in Singapore. We regret we cannot accede to their request as it was never our intention to grant the additional benefit. However, if it is proven that some were indeed misled by the uncertain wording of the present unamended Act into making investments, and hardship would fall on them by the Amendment, we are prepared to look at their case on an individual basis. I would like to reassure the investment community that the Government does not go back on any explicit commitments made by itself or its agencies. Credibility is the cornerstone of its investment policy and it will continue to demonstrate this. But it cannot be expected to preserve something which its actions through the judicial process show it never intended to give in the first place. 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.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Under Part IV of the present Act, 90% of the qualifying profits of an export enterprise are exempted from income tax for a specified period. The purpose of this incentive is to encourage manufacturing investment to produce for the world markets. The Comptroller of Income Tax's interpretation of section 32 regarding the deduction of capital allowance was, however, challenged in Court by one of the firms given the incentive. This firm considered that the whole of the capital allowance should be deducted against non-qualifying profits and none against qualifying profits, although the plant and machinery for which the incentive is given are used to produce both types of profits. The Comptroller's interpretation was that the capital allowance should be allocated proportionately between the non-qualifying and the qualifying profits. The Comptroller's interpretation reflected the intent of the Government when enacting the legislation in 1967, whereas the firm's interpretation gave it additional tax benefits. The dispute was first brought before the Courts 10 years ago. The Comptroller's interpretation was upheld in the Board of Review, High Court and Court of Appeal. However, in March 1979, the Privy Council, which is the final tribunal, ruled in favour of the company. While accepting the verdict of the Privy Council in the particular case, the Government has to consider what it should do regarding a decision which gives the affected companies additional benefits against its intention and against an interpretation of the legislation by the Comptroller of Income Tax which has been widely known to investors, particularly because it has been disputed in the Courts.”
“NGEE ANN TECHNICAL COLLEGE (AMENDMENT) BILL "to amend the Ngee Ann Technical College Act (Chapter 179 of the Revised Edition)", presented by Dr Ahmad Mattar; read the First time: to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE POLYTECHNIC (AMENDMENT) BILL "to amend the Singapore Polytechnic Act (Chapter 80 of the Revised Edition)", presented by Dr Ahmad Mattar: read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. SINGAPORE BROADCASTING CORPORATION BILL (As reported from Select Committee) Order for Third Reading read. 3.11 p.m.”
“DEFAMATION (AMENDMENT) BILL "to amend the Defamation Act (Chapter 32 of the Revised Edition)", presented by Mr E.W. Barker; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. WEIGHTS AND MEASURES (AMENDMENT) BILL "to amend the Weights and Measures Act, 1975 (No. 51 of 1975)", presented by Mr E.W. Barker; read the First time; to be read a Second time on the next available sitting of Parliament and to be printed. BRETTON WOODS AGREEMENTS (AMENDMENT) BILL "to amend the Bretton Woods Agreements Act (Chapter 61 of the Revised Edition)", recommendation of President signified; presented by the Minister for Finance (Mr Hon Sui Sen); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed. ARCHITECTS (AMENDMENT) BILL "to amend the Architects Act, 1976 (No. 14 of 1976)", presented by the Minister for National Development (Mr Teh Cheang Wan); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed. FIRE SERVICE BILL "to make better provisions as to the constitution duties and powers of the Singapore Fire Service and to make provisions for the prevention and fighting of fires and for matters connected therewith; and to repeal Part IV of the Local Government Integration Act (Chapter 210 of the Revised Edition)", presented by the Acting Minister for Social Affairs (Dr Ahmad Mattar); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.”
“As for the Education Service the Committee found that a further revision was unnecessary since the recently revised salaries for this service are in line with the Committee's recommendations for professional services. Future Salary Review 17. Salaries in the professional services will be reviewed after each review of Administrative Service to take into account Singapore's economic growth and the comparable opportunities and pay levels in the private sector. Conclusion 18. Finally, I must point out that the primacy of the Singapore Administrative Service is the bedrock of Government policy. The pre-eminence of this Service is in the role of Administrative Officers and will be reflected in their greater number in Staff Grades. The outstanding and the exceptional in the professional services will also retain their relative lustre because those with the qualities comparable to the best in Administrative Service can aspire to the new Staff Grades. BILLS INTRODUCED 3.06 p.m. PRIVATE HOSPITALS AND MEDICAL CLINICS BILL "to provide for the control, licensing and inspection of private hospitals, medical clinics and clinical laboratories, to prohibit trading in human blood, and for purposes connected therewith, and to repeal the Nursing Homes and Maternity Homes Registration Act (Chapter 163 of the Revised Edition)", presented by the Minister for Health (Dr Toh Chin Chye); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed. ARBITRATION (AMENDMENT) BILL "to amend the Arbitration Act (Chapter 16 of the Revised Edition)", presented by the Minister for Law and Science and Technology (Mr E.W. Barker); read the First time; to be read a Second time on the next available sitting of Parliament and to be printed.”
“Of the professional services in Government, the Medical, Dental and Legal Services experience the greatest difficulty in retaining staff because of the higher earnings of similar professionals in private practice. The Committee has, therefore, made special recommendations for the Legal, and Medical and Dental Services. 13. For the Legal Service a scheme of special non-pensionable allowances will be introduced. These allowances will narrow the gap in earnings between lawyers in the private and public sectors. They will be paid on a personal-to-holder basis and will be reviewed from time to time to take into account the gap in earnings between lawyers in the two sectors. These allowances will be payable as follows: Upper Timescale $250 pm Superscale H $500 pm Superscale G $750 pm Superscale F $1,000 pm Superscale E $1,250 pm Superscale D $1,500 pm Superscale C $2,000 pm Superscale B $2,500 pm Superscale A $3,000 pm No allowances will be payable to Legal Officers in the Staff Grades. 14. The Chief Justice, the Attorney-General and the High Court Judges are outside the Legal Service. They are not subject to the ceiling of Superscale A. These appointments represent additional avenues available to members of the Legal Service to advance beyond Superscale A. 15. For Medical and Dental Services a new Consultation Fees Scheme will allow consultants to choose between retaining consultation fees up to 60% of their consolidated salary or continue their existing fixed specialist allowances. This should retain enough consultants in the Government Service despite the current financial pull of private practice. These allowances or fees, however, will not be paid to Medical and Dental Officers in Staff Grades. 16.”
“In the Education, Engineering (PWD), Foreign, Inland Revenue, Legal and Medical Services where the existing topmost grade is Superscale C. one outstanding professional from each of these services at any one time can be promoted beyond Superscale A to the Staff Grades. (b) in addition to the above advancement opportunities: (i) outstanding professionals with proven administrative ability can be absorbed into the Administrative Service; and (ii) suitable professionals can be transferred to university appointments to further their careers, without loss of their accrued Civil Service pension benefits. Other Terms and Conditions of Service 11. The Government accepts the Committee's view that other terms and conditions of service in the Civil Service should, given the nature of salaried employment in a large bureaucracy, be comparable to employment in the private sector. It cannot, however, reproduce the same individual variations of private practice for professionals, which penalises the unfortunate mercilessly and rewards the lucky few fabulously. Improvements have been made recently to the leave, car loan and housing loan schemes. Nevertheless, the Ministry of Finance will consider the following further improvements: (a) extending the repayment period for housing loans from 20 to 25 years so that the maximum quantum of housing loan can be increased from four to five times that of an officer's annual salary; and (b) paying pension benefits to the dependants of a pensionable officer for a reasonable period in the event of his death in harness after serving a minimum number of years. Recommendations Specific to the Legal, Medical, Dental and Education Services 12.”
“Their promotion will be faster than in the past, determined by their own ability and contribution to the performance of their services, and by the rate of progress of their peers in the private sector. Early Promotion of Bright Young Recruits 8. To facilitate early promotion of bright young recruits a Timescale Intermediate Grade similar to the Senior Administrative Assistant Grade ($1640x65A-1835/ 1900x65A-2420) will be introduced for all the professional services. Promotion Prospects for All Professionals 9. To improve the promotion prospects of all professionals in Government Service: (a) full-scale promotion exercises will be held at least once in every two years; (b) there will be an annual review when the respective Appointing Authority and Head of Department (or Permanent Secretary) concerned take the initiative to identify deserving officers for promotion outside the normal promotion exercises; (c) officers away on study leave or official duty overseas will be considered during promotion exercises; their promotion will not be jeopardised because they cannot be interviewed by the Public Service Commission; and (d) the practice of promotion on trial will be discontinued. Top Grades for Outstanding Professionals 10. Every professional service must have a few outstanding officers in charge, if its performance is to be maintained and improved upon. Our aim is to attract and retain able and dedicated officers by faster promotion. The outstanding few will be able to proceed beyond their present topmost grades. Therefore: (a) Outstanding officers in the professional services can be promoted on a personal-to-holder basis to Superscale A.”
“The Ministry of Finance will, in consultation with the Ministry of Defence and the Ministry of Home Affairs, review the pay and promotion prospects of senior echelons of the uniformed services so that the pay schemes will be equal to, and the promotion prospects better than, those for the professional services or the Administrative Service. This will enable the SAF and the Police to recruit and retain some of the best of each year's crop of scholars. Principles of Review and Recommendations 4. In its review of the professional and equivalent services the Committee adopted the following general principles: (a) The Administrative Service will remain the premier service in the Civil Service: and (b) The time-tested pattern of internal relativities existing between the various services should not be disturbed, unless adjustment is compelled by a wide salary gap between a particular service and its analogous profession in the private sector. 5. The Committee concludes that, except for the Medical and Legal Services, the earnings of most officers in the Government professional services are comparable to their counterparts in the private sector. No salary revision for these services was necessary. Instead, the Committee recommends measures which will assist the recruitment and retention of able officers in these services. These measures also apply to the Medical and Legal Services. 6. I shall describe these measures. Career Opportunities for Professionals 7. Professionals in the Civil Service should have career prospects comparable to those of their colleagues who opt for the private sector.”
“Mr Speaker, Sir, I am making this Statement on Professional Services on behalf of the Prime Minister. Introduction 1. Following the Ministerial Statement on the Singapore Administrative Service in Parliament on 15 May 1979, a Professional Services Review Committee was constituted to examine the pay and career advancement prospects in the professional and equivalent services in the Singapore Civil Service. For record purposes, I am placing on the Table an Annex (Cols. 529 - 530) to my statement which gives the composition and terms of reference of the Committee. The Committee submitted its Report to Cabinet on 8 October 1979. I will dwell only on the major recommendations of the Committee. Annex - COMPOSITION AND TERMS OF REFERENCE OF THE COMMITTEE (Cols. 529 - 530) Purview of the Committee 2. The Committee reviewed only those services which meet the definition of "professional and equivalent services". These are services which are comparable to the Administrative Service in two respects: (a) Appointment is confined to candidates with either a good Honours degree (First Class or Second Class Upper) or a professional qualification; and (b) Their existing salary structure is similar to that for the pre-revised Administrative Service. These services are the Dental, Engineering, Medical and Legal Services and the senior echelons of the Accounting, Audit, Civil Aviation, Computer, Education, Foreign, Inland Revenue, Management Services, Meteorological, Parks and Recreation, Planning, Primary Production, Scientific, Statistics and Survey Services. 3. The uniformed services are not included by the terms of reference. The Government places the highest priority on the recruitment and retention of high calibre officers for the Singapore Armed Forces (SAF) and the Police.”
“Mr Speaker, Sir, I did not detect a question in the comment made by the hon. Member. Nevertheless, I would give a reply. For the University, I do not know whether the Member would prefer that there is no creation of new posts. I thought the creation of new posts above the existing highest grade is to allow them a further opportunity to move upwards. I am surprised if the University Professors do not appreciate that this is to allow the ablest of the Professors to move upwards.”
“Sir, the head and the legs must function together, and I take the point that the Executive Service and the Clerical Service are important to the proper functioning of the Government. The point is whether the salary scales of the Executive Service and the Clerical Service are such that we are not able to attract suitable officers to serve in these two particular services. I understand that up to now there is no great difficulty in recruiting the necessary personnel for these two services. Therefore, it would seem to suggest that at this particular moment there is no need for us to look into these two services with a view to a general revision of their salary scales. There is no compelling reason why we need to do so at this stage anyway.”
“Merit or performance matters a lot, Mr Speaker, Sir. But the officers would move upwards within their own salary scales or the Service in which they are in.”
“Mr Speaker, Sir, I do not think that the average Administrative Officer needs feel frustrated by the revision to the salary structure. As a comparison of the incomes of graduates between the public sector and the private sector shows, the incomes of the average Administrative Officers in the public sector are comparable to what their peers are earning outside. The existing salary range of the Singapore Administrative Service allows sufficient flexibility for the average officer to move at a rate which is commensurate with the rate of progress of his counterpart in the private sector. I do not think that in our effort to attract the best into the Administrative Service, the average Administrative Officer needs to feel frustrated. On the second question, Mr Speaker, Sir, I think the disparity in annual increments between the Honours graduate and the general degree graduate is because generally one would expect an Honours graduate, given the better formal qualification which is a reflection of his talent and ability, to contribute more than the general degree graduate.”
“Professional Services A Ministerial Committee headed by the Minister for Trade and Industry has been set up to look into the terms and conditions of the Professional and Other Services, It will submit its recommendations to the Cabinet within three months. I must add that whatever changes there are to the Professional or Other Services, the pre-eminence of the Administrative Service will be the cornerstone of all services. This is our premier service. Top administrators help Ministers to formulate and to decide on national policies. These policies affect all sectors of society. Therefore, we must have our best and balanced minds as top administrators. Only one smaller group of officers is more important. They are the SAF scholar officers. They will have career prospects as good as, and rates of promotion faster than, top administrators. The reason is compelling. In an emergency, they are responsible for the lives of more than 70% of our young men in the active and reserve service. In ordinary times, they help decide how we spend 5% of our GDP or about 16% of our Budget. Had we recognised this and insisted on high calibre administrators and SAF scholar officers 20, or even 10, years ago, Singapore would have been better off today. It is better that we put this right forthwith than leave our spread of talent to chance. We would then end up with talent in the wrong places, ill-adjusted and ill-suited to the needs of our future. 3.45 p.m.”
“Outstanding Administrative Assistants, particularly those who have completed full time National Service, can expect to be promoted to this grade within their first few years of service. These are the officers who are more likely to leave the service if they feel they are not making sufficiently quick progress in their career. Promotion at shorter time-intervals confers recognition and a sense of forward movement. Similarly, the two Superscale Grades D1 and C1, together with the existing Super-scale Grade B1, will give the PSC flexibility in promoting meritorious and dedicated officers. To enhance the attractiveness of the Administrative Service, in future officers in the Timescale and Superscale Grades E and below can be recommended for annual promotion. The ablest may be allowed to jump grades. Promotion will not depend on vacancies but on merit alone. Officers will not be forgotten even if posted to what are generally regarded as mundane jobs. Talent will be spread over all Ministries. With ability recognised through frequent promotions, it should be possible for an outstanding officer to advance rapidly from cadetship to the grade of Permanent Secretary, Superscale C, in 12 to 15 years. Future Salary Review Salaries in the Administrative Service will be reviewed periodically in the light of per- formance of the economy and comparable opportunities and remuneration levels in the private sector. Adjustments, apart from those through annual National Wages Council (NWC) increases, will be made if the rewards for the best in the public sector get out of line with those enjoyed by outstanding executives in the private sector. The next review will be made in 2 1/2 - 3 years' time. It will be preceded by a thorough study of rewards in the public and private sectors.”
“New Salary Grades The Government has, therefore, decided to create the following grades in its Administrative Service: - (a) Three Staff Grades I, II and III above Superscale A; (b) Two Superscale Grades D1 and C1; and (c) A Senior Administrative Assistant grade between Administrative Assistant and Assistant Secretary grades. I would now like to table the revised salary structure for the Singapore Administrative Service. [Annex A (Cols. 375 - 376) handed in to the Clerk and distributed to hon. Members] Mr Speaker, Sir, from the table you will notice that, henceforth, only Superscale Grade C and above will be known as Permanent Secretary grades. The salaries for the various Staff Grades, Superscale Grades D1 and C1, are all indicated in the table which has just been circulated to Members. Annex A (Cols. 375 - 376) The three new Superscale Staff Grades will demonstrate beyond doubt that the most outstanding civil servants can aspire to levels of remuneration approximating those of the chief executives of large private enterprises. These Staff Grades will act as an incentive to serving officers and as an attraction to the bright young graduates commencing or contemplating a career in the civil service. The three Staff Grades I, II and III will be brought into operation in stages in three promotion exercises, once every 15 to 24 months. They will be filled only if there are deserving officers. Thus, at the earliest, Staff Grade III will be filled only in 3 3/4 to 6 years' time. Accelerated Promotion The new Senior Administrative Assistant grade will enable the Public Service Commission (PSC) to accord promotion to promising officers in the Timescale grades more quickly.”
“The starting remuneration in the Administrative Service is generally more attractive than in the private sector but the outstanding executive in the private sector soon outstrips his peer in the Administrative Service. Although those who reach the top echelon of the private sector earn far more than the top Administrative Officers, the skills, drive and dedication required of both in the respective sector are comparable. This disparity in rewards puts the highflyers in the Administrative Service at a disadvantage. From this study of incomes of graduates in the private sector and the public sector, the Government has concluded that the immediate problem is not one of inadequate financial rewards for the average Administrative Officer. It is the problem of gross disparity between what the outstanding graduates are earning in the private sector compared to what the highflyers are earning in the Administrative Service. This revision to the salary structure of the Administrative Service is to put right this gap in earnings of top graduates. For the present, a general salary revision is not necessary. Whether a revision will become necessary in 2 - 3 years' time depends on the growth of private sector incomes for the average graduates compared to those in the public sector. The outstanding officers in the Administrative Service can best be rewarded through (a) the creation of additional Time-scale, Superscale and Staff Grades, and (b) frequent promotions within the revised salary structure to enable the outstanding officers to maintain parity with their peers in the private sector.”
“Mr Speaker, Sir, I have been asked by the Prime Minister to deliver a Statement on the Singapore Administrative Service on his behalf. The quality of a nation depends on the quality of its people and government. Good government requires political and administrative leadership of indisputable integrity, ability and dedication. The public sector needs a fair share of the best brains to tackle the complex economic and social problems Singapore will face in the next two decades. The thrust of our economy will continue to depend on the entrepreneurial vigour and business acumen of our private sector but its management will require sophisticated skills and administra- tive excellence in the public sector. Singapore's rapid development in the last two decades has opened up career opportunities hitherto unavailable for persons with talent outside the public service. The Singapore Administrative Service, as the premier service in the public sector, must therefore be attractive enough for it to recruit and retain a fair proportion of the cream of our graduates. The terms and conditions of the Administrative Service must match the best in the private sector. The Government has compared the incomes of graduates in the public and private sectors. This was done by constructing a comprehensive income profile of the graduate population in Singapore from a number of authoritative sources. The findings of the income comparison between graduates in the public and private sectors suggest that while the average officer in the Administrative Service earns as much as the average officer in the private sector, the remuneration of the outstanding Administrative Officer is much less than that of the top 5% of the salaried graduates in the private sector.”
“In addition, we are now examining a proposal for Government to set up a proper institutional framework, such as a high level national body, to spearhead and coordinate our drive on R & D. This body will examine our R & D manpower development, identify R & D needs and capabilities and coordinate our R & D efforts both in the public and private sectors. These are some broad steps that we can take to stimulate technological development in Singapore. I would welcome other suggestions from the hon. Member. 3.30 p.m.”
“Mr Speaker, Sir, my Ministry is doing some preliminary research into the institutional framework and the measures needed to stimulate technological development in Singapore. We hope to develop the ideas further into a plan for implementation next year. Nevertheless, I would like to share with the House some tentative thoughts on how we can stimulate technological development. Obviously, the fastest way is to encourage technological transfer from abroad. We must therefore continue to promote foreign investment, especially in higher technology products. These products include machine tools, industrial machinery, optical instruments and other precision engineering products, aircraft and automobile components, industrial electronics and computer-related products, petrochemicals and fine chemicals. Secondly, existing industries must be encouraged to automate and upgrade their operations to increase their technological content. Thirdly, we must continue to expand and upgrade our industrial training facilities as manpower development is an integral part of technological development. Fourthly, local industries must also upgrade their technology. The Economic Development Board can help by assisting them to form joint ventures with foreign partners. While the thrust for our industrialisation in the 1980's will still be largely dependent on technology transfer from abroad, we must consider how to promote engineering research and development (R & D) work by industries and institutions in Singapore. A modest start has been made with the Product Development Assistance Scheme. Companies are also allowed to deduct R & D expenses for income tax purposes.”
“Sir, I beg to move, In page 3, line 41, to leave out "Schedule" and insert "Act". This is necessary as the provisions should refer to the Act and not to the Schedule. Clause 6, as amended, ordered to stand part of the Bill. Bill reported with an amendment; read a Third time and passed. ACKNOWLEDGMENT TO THE CHAIR”
“As the activities of the RAS are to be in line with Government practices, clause 5 of the Bill requires the Association to submit its Annual Report at the close of each financial year to the Minister for presentation to Parliament. Moreover, as the RAS is controlling and administering public funds, my Ministry has introduced under clause 6 of the Bill a Schedule containing provisions regarding the keeping of records and audit of accounts of the Association by the Auditor-General or an auditor appointed in consultation with the Auditor-General. 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. [Mr Deputy Speaker in the Chair] Clauses 1 to 5 inclusive ordered to stand part of the Bill. Clause 6 -”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill before this House seeks to facilitate the operation of the rubber trade and to ensure that the activities of the Rubber Association of Singapore (RAS) are in line with accepted Government practices To ensure there is no discrimination, my Ministry has introduced a provision in the new Bill to enable a person whose application for membership of the RAS has been rejected, to appeal to the Minister. Section 10 of the Rubber Association of Singapore (Incorporation) Act, 1970, provides for an officer of the Singapore Institute of Standards and Industrial Research (SISIR) to be appointed as a member of the Management Committee of the Association. This provision was made in 1973 when discussions were underway to make SISIR the testing laboratory for Specified Singapore Rubber (SSR) samples. However, the SSR producers have established their own testing units. Therefore, SISIR's membership of the Management Committee is unnecessary. Clause 3 of the Bill seeks to delete this provision from the Act. The "Singapore Rubber Fund" is a general fund of the Association established under the Act. Its proceeds pay for expenses connected with the administration of the Act. The Association has a fidelity fund to meet claims arising out of default by members of the Association in the course of their business. As the two funds are not related, the Bill seeks to clarify that provisions under section 13 of the Act relating to the "Singapore Rubber Fund" do not apply to any fidelity fund established by the Association.”
“As a safeguard against discrimination, my Ministry has also made provision in the Bill to enable a person whose application for a licence has been rejected to appeal to the Minister. Under the present Act, a licence is valid for a period of one year from the date of issue. To simplify the issue and renewal of licences, my Ministry has proposed that this provision be amended to allow for licences granted to expire on the last day of the year in which they are issued. Sir, the penalties that the RAS may impose on its members who have contravened the Act or its rules include, among other things, the imposition of a fine. The maximum fine is limited to $10,000 which is insufficient to deter malpractices. My Ministry has, therefore, proposed to raise the fine to a maximum of $25,000. In addition, it is proposed that the quantum of security which may be imposed on an offender to ensure his future compliance with the Act be raised from $10,000 to $25,000. Finally, it is proposed under clause 6 of the Bill that powers be given to the RAS to warn a person of the consequences of further contravention of the Act or any rules made under it. 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. RUBBER ASSOCIATION OF SINGAPORE (INCORPORATION) (AMENDMENT NO. 2) BILL Order for Second Reading read.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill before this House seeks to improve the administrative machinery of the Rubber Association of Singapore (RAS) and to empower the Association with more authority to deal with members who contravene the Rubber Industry Act. Presently, the Rubber Shipping and Packing Control Ordinance, 1949, of Malaysia permits persons holding shipping licences issued under Singapore's Rubber Industry Act, 1973, to export rubber from Malaysia. However, the Rubber Industry Act of Singapore does not provide for reciprocal validity of shipping licences issued under the Rubber Shipping and Packing Control Ordinance of Malaysia. Sir, the amendment under clause 2 of the Bill is advanced to provide reciprocal treatment. The proposed amendment exempts a person who is holding a valid shipping licence issued under the Rubber Shipping and Packing Control Ordinance of Malaysia from applying for a similar licence issued under the Rubber Industry Act to export rubber from Singapore so long as the reciprocal arrangement remains in force between Malaysia and Singapore. Under the present Act, an applicant for a licence to pack or ship rubber or to manufacture Technically Specified Rubber is not required to be a member of the RAS. This is undesirable as a licensee who is not a member of the RAS will not be bound by the rules, by-laws and regulations made under the Rubber Association of Singapore (incorporation) Act, 1970. The Bill seeks to remedy this by providing that a licence will not be granted or renewed unless the applicant is a registered member of the RAS and is also holder of a valid licence issued under section 4 of the Rubber Dealers Act.”
“Part VIC (comprising sections 46T to 46AA) provides for incentive scheme for consultancy services performed on approved overseas projects. Such consultancy services include technical, construction or engineering consultation, design and engineering, fabrication of machinery and equipment, and the management and supervision of the installation or construction of any project. To qualify for the incentive, a company must have gross revenue (excluding costs of materials used or subcontracts made) exceeding $1 million per annum. Again, the incremental income above a base derived from its average income of the preceding three years will enjoy the tax concession of 20% for a period of five years. Where the company has less than three years' operation, the base period shall be such amount as the Minister may specify, taking into account the revenue of other consultancy companies. Dividends paid out of such income will similarly be tax-free. 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. RUBBER INDUSTRY (AMENDMENT) BILL Order for Second Reading read. 7.05 p.m.”
“Part IVA (comprising sections 37A to 37L) deals with the incentive scheme for international trading companies which increase their exports of qualifying Singapore manufactured goods and domestic produce. It also applies to international trading companies doing entrepot trade of qualifying non-traditional commodities, i.e. other than commodities such as tin, natural rubber, crude palm oil and pepper. A company may apply to be an international trading company if:- (a) its exports of qualifying manufactured goods or Singapore domestic produce separately or together exceed $10 million per year; or (b) its export sales of qualifying non-traditional entrepot trade commodities exceed $20 million per year. If approved, its income from annual incremental export sales will be taxed at 20% for a period of five years. Dividends declared out of such exempt income will also enjoy tax exemption. Part VI B (comprising sections 46J to 46S) deals with the incentive scheme for companies engaged in regional warehousing and servicing activities. To qualify for this incentive, a company must be spending not less than $2 million on building (excluding land) and capital equipment in Singapore. The portion of its export income which exceeds a base value derived from its average income of the preceding three years will enjoy the tax concession of 20% for a period of five years. Where the company has less than three years of operation, the base value shall be such amount as the Minister may specify, taking into account the export earnings of other warehousing or servicing companies. Tax exemption will be extended to dividends distributed out .of the exempt income.”
“The investment allowance granted will be up to half of the fixed capital expenditure incurred within a specific period not exceeding five years. During the qualifying period and within two years after the end of the period, the company shall not sell, lease or dispose assets acquired under such expenditure. The investment allowance will be credited against the chargeable income of the company and could be carried over to subsequent years until it is exhausted. Dividends which are distributed to shareholders out of such exempt income will also be exempted from tax. The scheme will complement the existing pioneer and export incentive schemes. It will benefit projects with long gestation periods and which do not generate profits in the initial years of operation. Manufacturing companies can make use of the scheme to expand and improve their operations. Existing profitable trading or servicing companies can also benefit from the scheme to diversify into manufacturing. The scheme will further encourage industries to use newer and better plant and machinery to raise productivity. The services sector has been doing well despite the recession. Export of services has been less vulnerable to protectionism. With the fast expansion of our financial, transport and communication and other services, this sector will continue to sustain our economic growth, complementing the contribution of the manufacturing sector. The prospect for further expansion of the services sector is promising. We shall encourage the development of warehousing and servicing, international trading, and consultancy activities. To build up a more diversified services sector, the 20% concession tax rate is being introduced under the new Parts IVA, VIB and VIC.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill will give legislative authority to two major tax concessions announced in the 1978 Budget Statement. These are the investment tax credit scheme for companies engaged in an approved manufacturing or related technical servicing project; and the 20% concessionary tax rate for companies engaged in regional warehousing and servicing of technical products, providing consultancy and technical services overseas, export of approved Singapore manufactured products, and offshore trading in non-traditional commodities. The Economic Expansion Incentives Act has been one of our key policy instruments for industrial promotion. As in the past, the latest amendment is necessary because of our need to be flexible and to adapt to changes in domestic and external economic conditions. As Members are aware, the world economy, upset by the 1974 recession, has not fully recovered. Singapore therefore faces greater difficulty and keener competition in getting investments from abroad. While foreign investments will continue to be vital for economic growth in Singapore, local entrepreneurs must also be encouraged to invest more. We will continue to attract multi-national companies to expand and invest in higher value-added production. At the same time, more of our local companies should improve and diversify their business into the manufacturing of better kinds of products. Thus an investment allowance scheme is provided for companies investing in projects for the manufacture or increased manufacture of any product or for the provision of specialised engineering or technical services. A new Part VIA (comprising sections 46A to 46I) is introduced for this purpose.”
“653 - 656) Ministry - THE BUDGET FOR THE FINANCIAL YEAR 1979/80 (Cols. 657 - 658)”
“The credit for the painless Budget therefore must go to the Government, the workers, the Members of Parliament in the House and generally the people of Singapore for making it possible. If we want a repetition of such painless Budgets, I think the lesson is: we keep on working the way we have been working and, even better, improve on our performance so that we would always have sufficient revenue to finance current and development expenditure in Singapore without the need for the Finance Minister to levy additional taxes. Better still if the economy can be enlarged and made to grow at a rate that can allow concessions to be given. The Budget, Mr Deputy Speaker, Sir, has deliberately been toned down so that none of us would get the impression that we have done very well and therefore now is the time for us to enjoy the fruits and relax and liberalise completely, and to have more concessions or bigger concessions than those that have been given. I am therefore very happy that several Members, in particular the Member for Anson, have underlined the undertones of the Budget, that is, whilst we have done fairly well to-date, the future is indeed very uncertain and therefore we have in the next one or two years to consolidate our position and prepare ourselves to face an uncertain economic future. Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the financial year 1st April, 1979 to 31st March, 1980. ADJOURNMENT Resolved, "That Parliament do now adjourn." - [Mr Hon Sui Sen]. Adjourned accordingly at Nine minutes to Eight o'clock p.m. Official Report - MAIN AND DEVELOPMENT ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1979 TO 31ST MARCH, 1980 (Cols.”
“Leong under the title of "Youth in the Army". If he does so, and I think they are interesting anecdotes which contain lessons for the civil service as a whole, I can then assure him that I would try my best to make it compulsory reading for the bureaucrats. Sir, I think I have covered most, if not all, of the points that have been raised in the House. If I have not, I would suggest to Members to raise them under the appropriate Heads by moving an amendment to cut the vote by $10, or to ask questions for oral answers. And to those whom I have tried to give an answer this evening but could not satisfy them, please feel free to pursue the matter because if we cannot convince Members of the correctness of our decision, then Members should try and convince us the other way. Only then can we arrive at the right decision or a decision that can satisfy everybody. I have been given credit by several Members of the House for the Budget and also by the Minister for Finance prior to my presentation of the Budget that all credit would be due to me, it was my work and therefore the credit should be entirely mine. That I disagree. I would agree, however, with the silent implication that all blame or failures in the Budget will be mine. I decline to accept any of the tributes given to me for presenting the Budget because it is possible to have such a painless Budget only because every one in the Government, the workers, the managers, the people of Singapore, every one of them has put in his share of hard work over the last 20 years. The Government, including Members of Parliament in this House, has taken the right policy decisions, even tough decisions, in the past to ensure that the economy today is resting on very sound footing.”
“In the rush certain mistakes had unfortunately occurred. These errors will be corrected and the amendments given to the Members of the House as well as those who have a copy of the Command Paper. There were no other serious howlers except perhaps for the mistake where, instead of "Half-yearly" it has ended up as "Haly-yearly" [page 18]. The rest are minor mistakes which will be taken care of. Ministry - THE BUDGET FOR THE FINANCIAL YEAR 1979/80 (Cols. 657 - 658) On the suggestion by the Member for Jurong that tax reduction should be considered for artistic works, a matter which he had raised a year ago, I am afraid that we have not decided that such exemption or tax reduction should be given for artistic works. There are problems of valuation, but more important is the priority consideration. He could perhaps argue from his point of view, and justifiably so, that at this point of time we should perhaps give consideration for artistic expressions by way of tax reduction. But we could also argue that now is not the time, but perhaps when the economy is more firm, when we are less troubled by future imponderables and when we are confident that uncertainty in the future would not rock the economic boat, that could be the time when we could be more liberal. In other words, the answer is no, but it will be considered at the right time. The Member for Kampong Chai Chee gave us several interesting anecdotes which he has lumped under the theme of "justification of administrative blunders". He wanted a response although I do not know how to respond to his vivid account of anecdotes. But perhaps I can make a suggestion to him - if he can find the time he should compile all these anecdotes, similar to the work that has been done by Mr C.C.”
“Fortunately nobody has suggested it as a specific measure against protectionism practised by others, because to do so would be to set off a further round of protectionism and thereby give further excuses for developed countries to enhance their protectionist measures. A question was asked as to what has happened to the across-the-board 10% tariff reduction that was proposed some time ago. The proposal was superseded by the collective desire of ASEAN countries as a whole to have this exchange of 50 items initially, now increased to 100 items, each time they meet under the Preferential Trading Arrangement. There has been no further progress in the proposal of across-the-board tariff reduction that was suggested by some countries in ASEAN. Instead the five members are pursuing fairly earnestly with liberalization under the Preferential Trading Arrangement of exchanging 100 items per time per member. In the Ministry of Finance's Addendum to the President's Address it was mentioned that in the course of the next few years the Government would sell off some of its shares in some of its companies. There was a question as to whether this has been done. This has not yet been done, It is still too early. We mentioned "in the course of the next few years." I am sure in the course of the next few years we will implement what we have stated in the Addendum. There was a howler regarding "low cost housing" and "Law cost housing", but that was not the only typographical mistake, unfortunately, in the Budget Command Paper. Other errors have been spotted by my Ministry. (Cols. 657 - 658) They should not have occurred, but they have occurred in the rush to prepare the bulky, voluminous Command Paper after it was approved by the Cabinet.”
“Given the lack of natural resources, the small base of our economy and the fact that manpower, other than strategic location, is about the only asset which we have, we have to take a conscious policy to ensure that the local population, given time, will be as efficient and as competitive in terms of production of output as any foreign country's population. We live by exports, and with an economy that is plugged in to the world economy, unless our manpower is efficient enough to be able to compete internationally, including competition against foreigners in Singapore, sooner or later we will find it difficult to sustain, let alone try to upgrade, the standard of living. On protectionism, since Members of the House share my view perhaps there is no need for me to repeat that we are all against protectionism. But one Member did ask what specific measures we can take against the protectionist policies of the developed countries. Unfortunately, beyond working together with our ASEAN colleagues and the Group of 77 developing countries in international fora, there is very little we can do by way of specific measures or counter-measures against protectionism practised by not only the governments in the developed countries but also trade unions, as recently expounded by the Member for Anson. We will continue to lobby in international fora against protectionism, and we hope that the collective voice of the Third World will prevail against the weight of protectionism practised by the developed countries. It would be counter-productive if we were to introduce protectionist measures in Singapore.”
“That may be so but we have to bear in mind the objective of the scheme as well as the wider repercussions on the economy. The objective of the scheme is to grant a margin of preference to the contractors. But the margin must never be so protective that inefficient contractors can succeed in getting a job. To be effective in protecting certain local contractors, perhaps the margin would have to go up to 25% or 30% and that will be a cost to the economy in terms of higher cost of buildings. At the same time, the purpose of getting our local contractors out of Singapore to compete for jobs will not be served because under the high protective margin contractors would prefer to look inwards into the domestic market and thereby not improve their efficiency. The point is that if they are unable to compete in the local market with a 5% margin, I do not see how they can compete outside Singapore where there is no preference margin. If anything, the preference margin will be for the local contractors in the foreign countries. The point is made that we should encourage and give a helping hand to our local contractors but not to the extent that such assistance becomes a permanent prop without which they cannot live. Some comments were made by Members of Parliament, including the Member for Tiong Bahru, that foreigners should not be allowed to set up retail outlets in Singapore. Perhaps this is a price we have to pay for being an open economy, wanting foreign investments in Singapore and, in fact, even encouraging foreigners in Singapore to compete with the locals so that in the process of competition efficiency will be upgraded amongst the local population.”
“Thank you for the clarification. But I submit that the skills can still be exhibited at the zoo. There was a specific request by the Member for Khe Bong that Government should consider, in some tangible way, recognising the contribution of the working population. The suggestion was that Government should make an annual contribution to the Labour Foundation. My reservation here is that there are others who also make contribution to the economy. If we were to make a contribution to the Labour Foundation, I would not know but employers could also set up an Employers Foundation and ask for contribution, because I think they can also justifiably argue that their contribution to the economy is as great as the workers. I do not, however, intend to cast aspersion in any way on the contribution of the workers. That is recognised by the Government. The only excuse is perhaps an omission to mention it specifically in the Budget. But it is not possible to mention everything and every person's contribution in the Budget because to do so I would have to stretch the Budget Statement by perhaps three times its length. Of course, I must not forget the contribution of the Members of Parliament in the economic performance as well. And despite the tripling in length, I am sure there will still be omissions because if we look for omissions in any statement we can always find them. But I take the point that wherever possible the Government should recognise the contribution of the workers and appreciate it. There was also criticism or reservation that the 5% preferential margin for local contractors would not be sufficient to enable them to compete against foreign contractors.”
“But the point is taken that wherever possible Singapore should work in concert with the other four members of ASEAN to promote ASEAN as a destination region for tourists so that in coming to ASEAN they also come to Singapore. There was a specific suggestion by the Member for Mountbatten that we should, if I understood him correctly, set up an animal farm where local fauna can be exhibited and shown to tourists. He may not be aware that we have a zoo in Singapore where we have adequate numbers of orang utans and apes. He might also wish to know that they live on food besides peanuts. Peanuts alone would not sustain them.”
“There was an observation made by the Member for Jalan Kayu that Government appears to be dragging its feet in the formation of the Trade Development Council. The Government has not taken a hasty decision in this respect because the participation of the private sector is crucial to the success of the Trade Development Council. A Trade Development Committee was formed with private sector participation and unless the private sector themselves are convinced as to the need for a Trade Development Council and understand how the Trade Development Council should be run to serve their needs, it is better for the Government not to take a decision on its own to form a Council without the warm and enthusiastic support of the private sector. The Trade Development Committee has made certain recommendations to the Ministry which have just been received and these recommendations will be looked into. If we are convinced that these recommendations will help the private sector to export their products, we would only be too happy to approve and implement the recommendations of the Trade Development Committee. I agree, however, that we should upgrade the standard of our Commercial Secretaries abroad and that we should set up more offices abroad to channel inquiries, to understand the overseas markets, and to feed such trade inquiries back to the exporters in Singapore. Again, on tourism, it would appear that the sin of omission has drawn the attention of the Member for Jalan Kayu. Whilst no mention was made in the Annual Reports of the Singapore Tourist Promotion Board about the collective effort on ASEAN's part to attract tourism into ASEAN, we cannot conclude that no collective effort was made.”
“I will give some figures on the effectiveness of the various assistance schemes to local industrialists. For the Small Industries Finance Scheme started in October 1976, 91 local companies have been granted 110 loans amounting to $15.17 million. For the Capital Assistance Scheme which was started in 1975, 13 applications have been approved with a total loan of $44.7 million. The Product Development Assistance Scheme which was started in March 1978 had also drawn some response, but I would agree with him that the response could have been better. So far, three companies have been supported with a total grant of about $200,000 while three others are under consideration. The others who applied were not supported because some of the applications did not meet the criteria laid down by the Ministry and the Economic Development Board. Since this is a grants scheme, it is important that every application is examined carefully and thoroughly to ensure that no spurious applications succeed through lack of thorough examination of the merits of the application. There is no magic formula in my mind for encouraging local industrialists to venture or expand into manufacturing companies or to induce those who are not in manufacturing to invest in manufacturing industries. We can only provide the framework for them. We can, however, be flexible and be open to suggestions by the would-be entrepreneurs in industry as to how the scheme can be improved. I can assure Members of the House that effectiveness of the various schemes is being monitored and there is rapport between the EDB and members of the public who are interested in the scheme. Over the years the schemes have, in fact, been expanded and amended to suit the requirements of the economy.”
“Whether or not the quantum is adequate, one can generally agree that the more you give to them the better it is for them, but one has also to balance the needs of the recipients against the general availability of such funds for running the administration and for various other purposes. Anyway, the subject of the quantum of public assistance belongs to the Ministry of Social Affairs but I thought I had to respond because ultimately they would refer to the Ministry of Finance. On general economic matters, I can assure Members of the House that their liberal advice on how we should run the economy will be taken heed of. There was general understanding of the need for conservation or reduction of energy consumption and the adverse effects on our economy as a consequence of an oil supply disruption and an oil price hike. We will therefore, in the course of the next two months, work out a programme to ensure that Singapore consumes as little energy as is practically possible. The Public Utilities Board will be launching a campaign sometime in mid-April to teach the population and industries where and how they can conserve energy. We will monitor the effects of the campaign. We will follow up with fiscal measures, if necessary, and even quantitative measures, if necessary. There was also strong support from several Members of the House on our programme to have a scheme for long-term research and development to assist primarily local industrialists and industries. We shall, of course, tap resources in the tertiary education for this as well. On local industries, the Member for Jalan Kayu concluded that silence means failure. The fact that no mention or reference was made to the Small Industries Scheme should not be regarded as synonymous with failure.”
“If we were to exempt only one house, that is the first house, from the enhanced limit, then for estate planning purposes I could envisage a shift in ownership pattern. That means that instead of a joint ownership of two houses either one would have sole ownership of a single house. I do not think that is desirable. So the point raised by the Member could be considered. On the second point of inter vivos gift, here we run into some legal technicalities. If a house is gifted by a donor to a donee, that house is legally the property of the donee. If the donor unfortunately dies within five years of the gift and we allow the exemption limit of $200,000 to apply to that piece of property, we are allowing an exemption on a property that does not belong to him. We have also to look at the situation where it is also possible that, through some unfortunate event, the donee may die before the donor, in which case he will be able to claim exemption up to $200,000 on that piece of property. Thus we have a case where it is possible to have two persons claiming the exemption on the same piece of property. For that reason we have decided that inter vivos gift will not be exempted from the increased exemption limit of $200,000 if the donor were to die within five years of giving the gift. On the public assistance scheme raised by the Member for Jalan Kayu, one can of course always quarrel with the meagre sum made available to recipients of such assistance. But the fact is that the rate of assistance to the unfortunate recipients was revised only in March 1976 and I believe it has been revised on the average once in three years or so.”