Goh Keng Swee
Singapore
“Sir, since that was not a supplementary question, may I be allowed to comment briefly on that. When we form a Committee of the House to inquire into an activity of the Government, the assumption must be that there has been something improper. In this instance, where is the impropriety?”
“The career of Brig-Gen Lee is well-known to the public. It has been published in the newspapers. Why then does he come out with all this drivel, other than to impute improper motives? Mr Jeyaretnam: Sir, I object to the term "drivel" as spelt out by the First Deputy Prime Minister. He should know better as a Member of this House.”
“Sir, this is getting most tiresome. So I will just say this - that Brig-Gen Lee Hsien Loong has proved himself in so many ways, both inside the Army and outside the Army, to be a person of outstanding quality. When the Member for Anson says the public are worried, he is again talking nonsense.”
“Sir, I rise to clarify. Actually, the limits are not set by me. I do not have a heavy hand. I regard the MAS as the implementing agency of Government, and in this respect I have to listen to the Minister for Finance and the Minister for Trade and Industry.”
“How you set them, how restrictive or how liberal, would determine two things: (1) the degree of imported inflation from abroad via goods and services from abroad, and (2), the degree of capital inflow from abroad which will affect our money supply in Singapore.”
“Sir, if the land could be more profitably used, say, for commercial or residential purposes and if the Minister for National Development requires such land, then, of course, the land will be acquired and the generous terms will apply.”
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“Sir, I am astounded that a leader of the trade union movement has expressed such sentiments. Is he not aware of the thousands of workers given employment in new industries, or does he want to see these compatriots of his thrown out of work? As for local products costing twice the imported products, I challenge the hon. Member to mention just one product and quote chapter and verse where the local product costs twice the imported product. ASSISTANCE TO DECLINING WHOLESALE TRADE 11. Mr Lee Teck Him asked the Minister for Finance whether he has any proposals to assist the wholesale trade in view of the importance of that trade to the economy of Singapore and in view of the decline in that trade, a situation which is not eased by the practice whereby some local manufacturers do not distribute their goods through wholesalers but sell direct to retailers.”
“Sir, I think it is possible to exaggerate the extent of this problem. There has been a very substantial increase in our domestic manufactures, and the number of instances where shortages developed is very small in proportion to our production. On the whole, I would say that our manufacturers have acted with great responsibility and it is only the odd persons, either deliberately or otherwise, who have caused a shortage of supply. There must be a time lag surely. Otherwise we would have acted before there is any increase in price and we could hardly justify our action under such circumstances. Mr Ho See Beng: Will the Minister assure this House that if a time lag arises, he will do something to restrict local manufacturers from exploiting the consuming public? There has been a lot of talk that the public always has to pay double the prices of goods which we used to import in the past, but which are now being manufactured locally. And if this thing is not stopped, I think the public will have no confidence in Singapore manufactured goods.”
“Sir, that is precisely the point I was making.”
“Similarly the quota on wire nails was increased from 10 per cent of 1963 imports to 50 per cent early this year when the two local factories arbitrarily increased their prices. The hon. Member is, of course, aware of Government's action in granting a licence to import 10,000 tons of cement, duty free, when a temporary shortage developed in September. In issues such as these, the paramount consideration is the welfare of the consumer and not the earnings of importers. I have repeatedly informed our business community - and this includes importers - that where we can produce a commodity which we have previously imported, we shall do so. Importers who know the product and the local market are in a good position to enter into a manufacturing venture to produce the commodity. If they fail to do so and suffer a decline in income as a consequence, they have nobody but themselves to blame for not having taken seriously Government's declared policy on industrialisation.”
“There are 94 factories in operation in Jurong employ, ing 8,800 persons. No factory in Jurong has closed down or ceased operation. IMPORT OF FOREIGN GOODS (Relaxation of quotas) 10. Mr Lee Teck Him asked the Minister for Finance if he will consider relaxing the quotas on the import of foreign goods where the local production of similar goods is insufficient to meet the local demand, as a relief to importers who are experiencing a decline in their trade because of quotas. Dr Goh Keng Swee: Sir, where local production is inadequate to meet local demand for a particular commodity which is subject to quota licensing, a relaxation of quota restrictions is allowed. For instance, the quota on matches was immediately liberalised in December last year from one per cent of 1964 imports to 75 per cent when it was found that there was a shortage of this commodity in the market. There were many other occasions when similar action was taken. The quota on builders' hardware was completely removed in March this year when it became clear that the local factory was going to shut down because of various difficulties. During the Middle East crisis some time this year, quota restrictions on a number of commodities, such as electrodes, cables, galvanised wire and calcium carbide, were immediately lifted to ensure that importers had sufficient stocks to meet demand. Moreover, where there is evidence that a local manufacturer is trying to exploit consumers by either arbitrarily increasing prices or by deliberately reducing production to create an artificial shortage of a commodity, import restrictions have also been relaxed. Undergarments are a case in point. It was discovered that the price of imported garments had been increased, but the local factory did not increase its production.”
“No, Sir. Pioneer certificates are given to companies for producing pioneer products. And when they produce a new product or establish a factory, it follows that they will give more employment to people. In the case of Shell Company, it could well be that they have found that they have got an excessive number on their establishment. If this is the case, then in the interest of efficiency and higher productivity, it is quite open to them and it is only right that they reduce their staff to the number that they think they need to carry out their work efficiently. FACTORIES IN JURONG INDUSTRIAL ESTATE (Employment figures) 9. Mr P. Govindaswamy asked the Minister for Finance (a) how many factories are now in operation at the Jurong Industrial Estate and how many workmen are employed by them; and (b) how many such factories have closed down or ceased operation.”
“I am not quite sure what the supplementary question is. I do not think I am called upon to support or oppose any action taken by a private firm in respect of its own staff. All private firms have the right under the law to increase or to reduce their staff according to what they think is in the interest of their business. One hopes, of course, that employers will not retrench staff unless there are over-riding reasons for so doing. In the case of Shell Company, I have always known them to be very good employers paying good wages, and in the event that they find it regrettably necessary to reduce or retrench staff, they have always paid very handsome retrenchment terms.”
“Sir, I am not aware of that. The fact that a company is given pioneer status does not mean that it is not entitled to reduce its staff if it finds that it has excessive staff for the work and for the market that it has to serve.”
“The total fixed capital investment of the oil refineries which were given pioneer status to date amounts to $124,814,575.00. To date the employment of the oil refineries given pioneer status numbers 398, and of these 56 were transferred from other departments and trained for the refineries. The local employees number 378 and foreign employees 20.”
“I am afraid I cannot. OIL REFINERIES (Capital investment and employee establishment) 8. Mr Bernard Rodrigues asked the Minister for Finance if he will ascertain and inform the House (a) the total amount of capital invested to-date by the oil refineries which were given pioneer status and various incentive benefits; and (b) breakdown figures of (i) the number of employees newly recruited, locally and from abroad, by the various oil companies for the refineries; and (ii) the number of employees transferred from the various departments of the oil companies to the refineries.”
“There is what is called non-price competition. Prices are agreed, as the hon. Member has suggested, but there is an immense amount of competition in getting a share of the market at those agreed prices. So in this sense we can say that there is free competition in the oil market, though it is not competition in terms of price cutting but competition in terms of non-price, that is, advertising, getting more retail outlets and that sort of thing.”
“There are no arbitrary price increases by large and monopolistic commercial firms in Singapore where market conditions are generally highly competitive. We are, in fact, one of the few remaining outposts of free enterprise in the world. The oil companies have decided not to increase the prices of their products. Though the oil companies at one time tried to increase the prices of their products, they finally decided not to do so. For some time they were considering how much of the increased freight could be passed on to the consumer and how much could be absorbed by them. Shell Company were in continuous touch with the Government, and they finally decided to meet the whole of their additional freight costs and retain existing prices. The other oil companies decided to do the same. I think they did the right thing in taking a long-term view of the situation. As regards the third part of his question, the hon. Member assumes that reducing advertising expenditure would lead to lower prices. I do not think everyone would be as confident as he is about this. My own inclination is to allow free competition to settle market prices. Once you start fiddling with the market mechanism, you will find that one thing leads to another, and before you know where you are you have landed yourself in an unholy mess.”
“No doubt, Mr Speaker, Sir, footwear imported from China will be much cheaper than footwear imported from Germany, the United Kingdom or America. But I hope that the hon. Member, as a patriotic citizen of Singapore, will only buy locally-made Singapore footwear. Mr Tang See Chim: Is the Minister aware that a certain brand of locally-made footwear can be purchased at a cheaper rate from Johore Bahru than from Singapore? Mr Ho See Beng rose -”
“My difficulty is that I do not know what the hon. Member means by "non-luxury goods", and no doubt his definition, if he attempts it, will differ from mine or anybody else's. We import no less than 1,470 different items from the countries he mentioned, and they are worth $1,521.3 million last year. So I am afraid that unless the hon. Member narrows considerably the scope of his question, I would not know what is the information he is seeking.”
“A census of the population will be carried out in 1970. I hope that it will be an improvement on the 1957 census. IMPORTED NON-LUXURY GOODS (Comparative prices) 6. Mr Ho See Beng asked the Minister for Finance if he will make a statement on comparative prices of non-luxury goods (including food-stuffs) imported into Singapore from India, China and Japan and those imported from America, the United Kingdom and Germany.”
“Artistes will benefit by this concession. CENSUS FOR SINGAPORE 5. Mr Ng Kah Ting asked the Minister for Finance whether and when a census of the population of Singapore will be conducted; and whether it will be similar to the 1957 census.”
“Sir, this is a question in three parts, and my answers are as follows:- (a) Approximately $205,000 were collected in income tax from foreign artistes in 1966. This works out to 0.18 per cent of the total income tax collected during that year. (b) I am not aware that the present income tax assessments of foreign artistes and the mode of collection are discouraging talented overseas musicians, dancers and actors from performing in Singapore. In 1965 there were 381 foreign artistes. In 1966 the number increased to 636, i.e., there was an increase of 67 per cent; and in the first 9 months of 1967 Singapore had 666 foreign artistes. The system of collection is basically similar to that used by income tax authorities all over the world. (c) I agree that the performance of talented artistes can be a means of fostering the progress of the performing arts in Singapore. Foreign artistes whose visits are financed by public funds of another country are exempt from tax. All artistes are given reasonable allowances for expenses as laid down in the law. These allowances include expenditure on make-up, hair-dos, costumes, laundry, accommodation, travel, and so on. Where the artistes are on a circuit, stopping at other places than Singapore, only a portion of their passage expenditure attributable to their performance in Singapore is allowed. There is no evidence to suggest, and I am not convinced, that income tax is the crucial factor in determining the number of foreign artistes performing in Singapore. However, a Bill is being introduced to reduce the rate of income tax payable by non-residents deriving income from employment in Singapore, from 40 per cent to 15 per cent. This will apply to all persons taking up employment in Singapore for short periods.”
“I am aware that Mr Leembruggen in a letter to the Straits Times published on the 2nd September this year stated that the reasons given to the House by the Minister of State, Prime Minister's Department, regarding his refusal of promotion and subsequent resignation from the Civil Service were not correct. Mr Leembruggen might have other reasons known only to himself. Those given in the reply to the House were the ones determined from him at that time and were also consistent with the circumstances of his case. LIBERALISATION OF INCOME TAX ASSESSMENTS AND COLLECTION FROM FOREIGN ARTISTES 4. Mr Yeoh Ghim Seng asked the Minister for Finance (a) what was the amount and percentage of income tax collected in 1966 from foreign artistes; (b) if he is aware that the present income-tax assessments of foreign artistes and the mode of collection are discouraging talented overseas musicians, dancers and actors from performing in Singapore; and (c) as the performances of such artistes can be a means of fostering the progress of the performing arts in Singapore, if he will consider liberalising the allowances and modes of assessment and collection of income tax from foreign artistes as an incentive to talented overseas performers to come to perform in Singapore.”
“I will give them more time to consider the offer. MR. H. F. G. LEEMBRUGGEN (Reasons for resignation from Civil Service) 3. Mr Tang See Chim asked the Minister for Finance whether he is aware that Mr H. F. 0. Leembruggen in a letter to the Straits Times published on 2nd September, 1967, stated that the reasons given to the House by the Minister of State, Prime Minister's Department, on 29th June, 1967, in reply to a Question on Mr Leembruggen's resignation from the Civil Service were not correct and whether he will clarify the matter.”
“When we get the situation where we have more doctors than we need, I think we will consider that particular proposition. Inche Mohd. Ariff Bin Suradi (Kampong Kembangan)(In Malay): What about the 37 Division II officers, most of whom are teachers?”
“In my answer I said that the majority of these 47 Division I officers are medical and dental officers. They are performing technical duties and are not concerned with policy-making decisions, and I propose to do nothing about it.”
“Sir, the present policy is that only Division I and Division II Government officers are eligible for the reduced period of residential qualification to qualify for citizenship under the proviso to Article 57 (1) (c) of the Constitution. We do not recruit non-citizens into Division III and Division IV posts. There are a total of 697 officers in Divisions I and II who are non-Singapore citizens. Of these, 471 officers are eligible for Singapore citizenship under this proviso. 196 are not eligible and 30 are expatriate officers. Of the 471 eligible for citizenship, 387 or 82 per cent have taken advantage of the concession and have applied for citizenship. The 84 who have not applied comprise 47 officers in Division I and 37 in Division II. The 47 Division I officers are mostly medical and dental officers. The majority of the 37 officers in Division II are teachers.”
“Mr Bernard Rodrigues asked the Minister for Education whether the Government will consider increasing its grant to the Boy Scouts' Movement in the Republic in view of the significant contribution the Movement is making towards a rugged and robust nation.”
“Since Singapore Day on 9th August, 1965, 73 pioneer certificates were awarded to firms, making a total of 187 pioneer companies to date. 12 of these firms had to abandon their projects for various reasons. One because the owner fell seriously ill. Several others which are textile mills had to close down because of imposition of textile quotas by the U.K, and the U.S. Governments and the rest because the major shareholders could not agree among themselves. The Government has in its industrial promotion efforts put particular emphasis on industries which show promise of high export performance. Thus, in a number of cases more than one pioneer certificate has been issued in the same industry. In most of these cases, a minimum export performance is a condition of the award of a pioneer certificate. In the case of the plywood industry, any one of the firms would be able to supply the entire local demand. However, the export potential of this industry is very great and, therefore, the Government has thought it fit to award more than one pioneer certificate in order to encourage this type of export-orientated industry. Ours is essentially a free enterprise economy and if there is no profit to be made in an industry, investors would not be prepared to risk their money in starting a factory when there is already another factory in production. If the investor is convinced that it is worthwhile for him to risk his money in an industry and if he can convince us that he has sufficient export possibilities, we are prepared to grant a pioneer certificate even if there are other firms in the industry. BOY SCOUTS' ASSOCIATION (Government grant) 4.”
“The increase in the price of rice in Singapore has been due to a general increase in prices of rice in the world market. There is adequate rice in Singapore and the retail price of rice in Singapore, although it has been higher than in the past, is mainly determined by the supply and demand of the world market for rice, since Singapore produces no rice of its own. Apart from the increase in the price of rice, the prices of sugar, flour, cooking oil and other essential commodities have not shown any substantial increases. There is therefore no pressing need to ask shopkeepers to display price tags. Apart from the fact that price tags do not serve a very useful purpose, in view of the grades of the various commodities concerned, especially that of rice, such a display of price tags may mislead the public to think that there is a shortage of these essential commodities, and may unnecessarily cause a rush to hoard these commodities. Arrangements, however, are being made to broadcast twice daily in the four languages the average price of rice, sugar, wheat flour and other essential commodities. PIONEER INDUSTRIES 3. Mr Bernard Rodrigues asked the Minister for Finance (a) how many firms have been given pioneer status since 9th August, 1965, and how many firms which had been accorded pioneer status have closed down or terminated business since 9th August. 1965; and (b) why pioneer status has been given to many firms in the same industry, such as the four firms in the plywood industry, and whether this is not harmful to the promotion of local industries.”
“The Report of the Salaries Commission is at present being studied. I hope to be able to present it to Parliament at the next sitting. CLEARING OF RUBBISH IN KAMPONGS IN CHANGI AND OTHER CONSTITUENCIES 15. Mr Sim Boon Woo asked the Minister for Health if he will take steps so that more dust- bins are provided, and more labourers are employed to clear all the rubbish, in all the kampongs in the Changi Constituency and other Constituencies.”
“It is much too early to test the effects of the Deputy Prime Minister's exhortations as the "Eat more wheat" campaign was only launched last month. SALARIES COMMISSION REPORT (Presentation to Parliament) 14. Mr Lim Cheng Lock asked the Minister for Finance when will the Report of the Salaries Commission be presented to Parliament.”
“I have already explained that where we reduce imports of goods either by import duties, or in in the case of flour, I think, by quota restrictions, the manufacturers of the local products - in this case, the millers of wheat flour - will have to discuss with Government any changes in the price of their products before they put that into effect. In other words, the opportunities of millers of wheat to increase their prices are very limited unless they have a reasonable case, such as an increase in the international price of wheat. CONSUMPTION INCREASE IN WHEAT FLOUR (Request for information) The following Question stood in the name of Mr Ho See Beng - 13.To ask the Minister for Finance if he has any information of an appreciable increase in the consumption of wheat flour since the Deputy Prime Minister's statement urging the people of Singapore to eat more wheat than rice, and if the increase is not significant what effective measures the Government will take to achieve the objective.”
“The price of Siamese white rice 100 per cent is 49 cents per katty retail, whereas locally-milled wheat flour of excellent quality sells for only 25 cents per katty. Wheat flour, therefore, costs only half as much as rice. Singapore consumes in an average month about 12,000 tons of rice and 4,000 tons of wheat flour. If we can persuade our population to eat more wheat than rice, as the Deputy Prime Minister has been doing for some time, there will be a substantial saving of foreign exchange. Assuming that the people of Singapore can increase their consumption of wheat by another 4,000 tons, we will save $1.8 million a month or $22 million a year at present prices of wheat and rice. Further, since wheat is milled into flour in Singapore, we will also be giving more income and employment to our citizens.”
“To ask the Minister for Finance if he will make a statement on the comparative prices per ton of imported rice and locally-milled wheat flour; what are the respective tonnages of these two staple foodstuffs consumed or estimated to be consumed per month by the people of Singapore; and what will be the estimated annual saving in foreign exchange by the increase of, say, four thousand tons in the consumption of wheat per month.”
“As at 31st August this year, Singapore has redeemed $271 million of the old currency. This amounts to 34.65 per cent of the total currency of the old notes redeemed so far. Prior to 12th June, the Board of Commissioners of Currency, Malaya and British Borneo, was the issuing authority in Singapore, Malaysia and Brunei. The old notes therefore circulated in these territories and it was not possible to determine the exact amount of these notes circulating in each territory. This problem was especially acute in Singapore and Malaysia because the territories are so close to each other. There are no figures of the exact circulation of currency notes in these two territories, and the usual method of estimation has been to take the formula given in the Currency Agreement of 1960 and this formula is used in the distribution of profits. The formula estimates that Singapore's currency circulation will be between 15 and 18 per cent, the actual percentage varying from year to year depending on population and other factors. For 1966, the percentage was taken at 15.4 per cent. Our present rate of redemption of 34.65 per cent of the total note issue so far redeemed can therefore be regarded as quite satisfactory. This experience in redemption also proves what Singapore has always maintained - the amount of currency circulating here is higher than what was provided for in the Currency Agreement. IMPORTED RICE AND LOCALLY-MILLED WHEAT FLOUR (Comparative prices and rates of consumption) The following Question stood in the name of Mr Ho See Beng - 12.”
“I think it is best to leave the exact details of safeguards in the legislation when the legislation itself is introduced. But, first, let me say that Government is in no position to guarantee deposits by members of the public either in finance companies or banks or anywhere else. If you give your money to other people and they run away with it, then that is your own bad luck. You cannot go to Government and say, "Pay up." But what we can do is to ensure that finance companies do not fiddle around with other people's monies, that they have a sound investment policy, and that they refrain from certain acts which may endanger the security of their customers' deposits. OLD CURRENCY NOTES (Total amount redeemed and rate of exchange with new ones) 11. Mr Lim Cheng Lock asked the Minister for Finance the total amount of old currency notes redeemed in the Republic from 12th June to 31st August, 1967, and if he is satisfied with the rate of exchange of the old currency notes for the new ones in Singapore.”
“The term "finance companies" generally applies to companies soliciting and accepting deposits from the public and making loans to the public to buy articles like motor cars, motor scooters, television sets, radios and refrigerators. There is a wide range of finance companies. They range from the larger ones operating usually as subsidiaries of banks to smaller ones which include pawnshops that accept money from the public. The operations of these finance companies are, in some ways, similar to banks but, unlike banks which are required to be licensed and subject to the provisions of the Banking Ordinance, there is no specific law governing the operations of finance companies. Therefore, it is not possible to determine the exact number of such companies operating here today, as these companies are not compelled by law to report or register or to inform the Government that they are operating as finance companies other than registration under the Companies Ordinance. My predecessor, who is now the Minister of Defence, has already expressed his concern over the activities of these finance companies in his Budget speech last year. He announced that Government would be introducing legislation to regulate and control such companies. This legislation is being prepared in consultation with International Monetary Fund advisers and we will introduce the Bill in Parliament in the near future - probably at the next sitting.”
“I have already explained that whoever wants to import apples, plums or peaches can apply for a licence and he will get it. I do not believe that there is only one importer of apples. LEGISLATION TO LICENSE AND REGULATE FINANCE COMPANIES 10. Mr P. Govindaswamy asked the Minister for Finance if he will state the number of finance companies operating in Singapore and if he will consider introducing legislation for the licensing and regulation of the business of finance companies with specific provision to safeguard the interests of persons who deposit money with such companies.”
“I do not know. I do not have the figures.”
“It is estimated that there are about 70 wholesale importers of fresh fruits in Singapore.”
“I understand that they intend to make the Centre even bigger and better. Finally, let us not forget that freedom of choice is important in our free society. Freedom in merchandising is not only a good thing but serves as a practical stimulant to competition. So while I think the hon. Member has got the right sentiments in putting forward this question, I suggest that there are other ways of achieving the objective he has in mind. LICENSED IMPORTERS OF FRESH FRUITS AS AT 1-8-67 (Number) 9. Mr Govindaswamy asked the Minister for Finance the number of licensed importers of fresh fruits in Singapore as at 1st August, 1967. Dr Goh Keng Swee: With effect from 2nd August, 1966, specific licensing was imposed on the importation of apples, pears, grapes, mandarin oranges, peaches and plums. For some time, the importation of some of these fresh fruits from certain countries came under the control of importers' committees. These committees or panels of importers restricted imports to keep prices at a high level. Previous importers and wholesalers were not only excluded from importing direct by the committees, but even their members' proportionate share of imports and their sales to wholesalers were frozen over the years. This cartelization of our imports is contrary to Singapore's tradition of free trade and free competition. Soon after such specific licensing was implemented, the various importers' committees in Singapore were dissolved and import licences for fresh fruits have been issued freely to all applicants, although some restrictions are imposed to prevent the formation of the panel system and the reintroduction of restricted practices. The Trade Division does not restrict the number of fresh fruit importers or the issue of licences.”
“The spirit in which the hon. Member has asked the question is good. However, I do not think this is a very good idea. First, there are countless shops and departmental stores in Singapore. Implementation of this proposal would, therefore, cost a lot of money. The large variety of locally-manufactured goods, together with the large numbers and sizes of shops selling them, would make it almost impossible to have orderly legislation and effective implementation. We cannot, for instance, legislate that all shops display all types of locally-made goods. The variety is too large. There may be inadequate space in some shops. On the other hand, if it is provided that not all the locally-made goods need be displayed, a shop could display only one product and claim to have complied with the law. This would defeat the purpose of such legislation. To specify a minimum variety would also be difficult, as shops vary so much in size. What is adequate for one shop is probably not adequate for another. These are only a few of the problems that we will encounter. The second point is that compulsory display of locally-made goods will not necessarily increase sales. The Singapore consumer is a discriminating buyer and purchases on the basis of price and quality. As competition is extremely keen, departmental stores and retail shops cannot afford to be without lines which sell. In other words, the availability of consumer goods is not a pro blem. The manufacturer will have to compete on the basis of price and quality rather than depend on compulsory display to push sales. I have no doubt that this is what they are doing. The Singapore Manufacturers' Association has now taken over from the Economic Development Board the Products and Design Centre at Raffles Place.”
“The Singapore Government has been considering joint ventures with Australian industrialists along the lines indicated by the Member. It is our view that the establishment of joint ventures whereby raw materials and semi- finished products imported from Australia will be processed and finished in Singapore, partly for export to Australia with tariff concessions, and partly for sale in Singapore and export to other countries, will be of substantial benefit to both parties. However, nothing has materialised from discussions held at official and technical levels on this subject. DISPLAY OF SINGAPORE-MADE GOODS IN STORES AND SHOPS 8. Mr Bernard Rodrigues asked the Minister for Finance if he will consider introducing legislation to provide that all departmental stores and retail shops display Singapore-made goods.”
“The sanction I have mentioned, Mr Speaker, Sir, is the abolition of tariff protection. JOINT VENTURES WITH AUSTRALIAN INDUSTRIALISTS 7. Mr Ng Yeow Chong asked the Minister for Finance whether the Government will consider joint ventures with Australian industrialists to establish factories in Singapore to manufacture goods with raw materials imported from Australia on the terms that 50 per cent of the finished products be allowed by the Australian Government to be imported into Australia free of tariff, the remaining 50 per cent being for the local and other overseas markets.”
“They are under no legal compulsion to keep their prices at any given level. But there is a gentleman's agreement between the Ministry and the manufacturers that price increases should be discussed with and agreed to between themselves. For this purpose, the reasons for any price changes are put forward to an interdepartmental committee of officials who will make recommendations to the Minister.”
“There are committees in existence to consider applications from manufacturers who wish to increase the prices of their goods.”
“Van Houten chocolates, which are produced in Singapore, continue to be priced at 35 cents a bar. If you are very fond of Cadbury chocolates, you may continue to buy them. You will then be contributing to the revenue of the Customs Department. If you buy the local product, you do not make this contribution but you will be contributing to the income and employment of your fellow citizens. You can take your choice in this matter. In two or three instances there are grounds for suspecting local manufacturers of either having inefficient high cost management or making excessive profits. The cure here, in the first instance, is to improve management efficiency. In the second case, it is to ask the manufacturer to reduce his prices. The sanction that can be applied in both instances is the reduction or abolition of import duties on these commodities. I will not hesitate to apply this sanction should the circumstances of the situation justify such action.”
“Some people, thinking that they could make money, tried to raise the prices of sugar and matches. But it was soon found that local suppliers were adequate to meet the market demand and prices reverted to normal. So while imported matches are more expensive, the price of the local product remains the same. If people want to buy imported matches at twice the price of the local product, there is nothing one can do about it. This brings me to the subject of Government's policy on industrialisation and its effect on the prices of goods. We must assure the local manufacturer a substantial portion of the domestic market for the products he is manufacturing. To do this, import duties are imposed on foreign products. Naturally thit means that the prices of imported articles go up. The Trade Division of the Ministry of Finance keeps a continuing survey on prices of locally-manufactured goods. When local manufacturers commence production, they are directed not to increase their prices unless there is good reason to do so, as, for example, an increase in the price of raw materials. In nearly all cases, the local manufacturers have accepted their obligation in good faith and have maintained good quality and reasonable prices. Here again some local consumers are attached to the brands of goods which they are used to buying, and these imported goods definitely cost more than the local products. If you want to pay more for imported condensed milk, mosquito coils, chocolates, toilet soap, singlets and matches, you cannot complain about the increase in the cost of living, because you can buy local products at the same price as before and of comparable quality. For instance, Cadbury chocolates used to cost 35 cents a bar. As a result of import duties, they now cost 50 cents a bar.”
“But there is rio evidence that our rice merchants are profiteering. The real reason is that there has been an increase in the world price of rice because of the general shortage of supply. Rice exports from Burma have gone down in recent years. Thailand is suffering from a drought. The war in Vietnam has not helped to increase rice production in that country. And indonesia continues to be a large buyer in the world market. So the increase in the cost of living due to the increase in the price of rice is due to external factors beyond our control and has nothing to do with the Government's industrialisaton programme. [Mr Speaker in the Chair] 2.46 p.m. So long as people want to eat rice, they must pay for the extra cost. But they can economise by eating less rice and more wheat products, such as bread and noodles, as our Deputy Prime Minister has been advocating. Wheat flour, of course, is half the price of rice. There has also been a substantial increase in the price of canned meat imported from China. Chinese exporters have increased their prices, and there is statistical evidence that this has happened. Here again the reasons lie outside our country and beyond our control. As regards day-to-day food supplies, certain items have gone up in price, such as cabbages and potatoes, while others have gone down in price, such as red chillies, onions, spinach, chai sim and 1ong beans. These are normal fluctuations in the market and are not of great significance. Some months ago there was an attempt made to speculate in matches and sugar. When these commodities were produced in Singapore, import duties were imposed on foreign products so that the local manufacturer could capture the domestic market.”
“Sir, for some months there has been public concern over increases in the prices of certain commodities, especially foodstuffs and household articles. The reasons for these price increases are often confused in the public mind. As a result, there have been adverse comments on Government's industrialisation pro gramme which has been blamed for the increase in the cost of living. I wish to go into these matters in some detail as it is important that the blame should be attributed to the right quarters. The real reason for the widespread concern over the increase in the cost of living, especially among the poorer people, lies in the substantial increase in the cost of rice. Over the last 18 months the price of rice has gone up by 14 cents a katty. To people with large incomes this increase in price will cause no hardship. But if we consider the effect on a typical working family of, say, a man with a wife and three children, we can see that it bears very harshly on them. A family of five may consume about 100 katties of rice a month, and the price increase means that a wage-earner has to bear the additional expenditure of $14 a month. To a family earning $200 a month - this is a typical working class family income - this represents a very substantial increase. It is nearly equivalent to a pay cut of $14 a month, and the extensive grumbling that goes on now is the consequence of this. What can Government do about the price of rice? First, we must find out why the price has gone up. Is it due to profiteering by our rice merchants, or is it because the world price of rice has increased? If price increases are the result of profiteering, then Government action to lower prices can be taken by taking measures against profiteering.”
“Sir, it is not possible to give a straightforward answer to the hon. Member's question. Whenever disturbances occur anywhere, some flight of capital usually takes place. Refugee capital coming into any country does so by means which avoid official records. The number of approaches made by Hongkong industrialists to the Economic Development Board has considerably increased since these disturbances began. More than 300 Hongkong industrialists have discussed investments proposals with the Singapore Economic Development Board, and I believe that a substantial number of these proposals will materialise into factories on the ground. This, of course, will take time. RISE IN COST OF LIVING The following Question stood in the name of Inche Mohd. Ariff Bin Suradi - 6. To ask the Minister for Finance whether he is aware that the cost of living in the Republic has gone up rapidly and if he is taking any steps in the matter.”
“Mr Speaker, Sir, my attention has been drawn to paragraph (g) of clause 21, which is to allow for the serving of notice to a person displaying the notice "at some public place". What is intended here is to display a notice of all undelivered notices served on persons at community centres nearest to the address of the person on whom the notice is meant to be served. It is a regrettable fact that in Singapore the postal service does not reach a considerable proportion of residents. In the rural areas, for instance, there is a large number of attap huts whose numbers are either unofficial or, if they are official, they do not run serially. There have been cases where the same set of numbers appear along the same road at different places. In the slums of Chinatown, many families may share the same address and when the postman delivers a letter to this address, it is by no means certain that the addressee will get the letter or the notice. In serving a notice to national servicemen or persons liable to national service, every attempt will be made to reach them personally, either by post or by personal messenger. The method of informing people of their national service liability provided for in paragraph (g) of clause 21 will be used only as a last resort. Question put, and agreed to. Clause 21 ordered to stand part of the Bill. Clauses 22 and 23 ordered to stand part of the Bill. Bill reported with amendments; read a Third time and passed. MOMENT OF INTERRUPTION (Business Motion) 6.56 p.m.”
“Sir, I beg to move, In page 11, line 18, to leave out "trading" and insert "training". This is purely a typographical amendment. Amendment agreed to. Clause 20, as amended, ordered to stand part of the Bill. Clause 21 - Question proposed, "That clause 21 stand part of the Bill."”
“Mr Speaker, Sir, I beg to move, In page 9, line 34, to leave out "one weekend" and insert "up to two weeks' ". In page 9, line 35, to leave out "a month", and In page 9, line 35, at end, to insert a comma. Mr Speaker, Sir, the first amendment to this clause is considered necessary because, after some experience now with the training in the P.D.F., it is found that week-end training is not really the answer in terms of efficiency and economy. During the week-end, considerable time is wasted in travelling to and from camping sites and training areas, and comparatively little time is spent on actual training. A continuous period of in-camp training during the first six months would, therefore, he much more effective from the training point of view and would also enable recruits to gain an insight into camp life at an early stage of their training. The second amendment is considered necessary because of the first amendment, and the third amendment is merely a matter of drafting. Amendments agreed to. Clause 15, as amended, ordered to stand part of the Bill. Clauses 16 to 19 inclusive ordered to stand part of the Bill. Clause 20 -”