Hon Sui Sen
Singapore
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE.”
“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put…”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions.”
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“Jeyaretnam asked the Minister for the Environment and Minister for Communications if he will request the Port of Singapore Authority to consider providing transport alternatively paying a transport allowance to all employees of the PSA who have been moved out of the PSA Staff quarters in Blair Plain and as a result of which have been put to expense to travel to work when they did not have the expense whilst living in the PSA Staff quarters.”
“) Name of Company's Percentage Unlisted Company Paid Up of or Capital Government Listed ($'000) Shareholding* ______________________________________________________________ VIII Aviation 1 Singapore 240,808 90.5 Unlisted Airlines Ltd 2 Singapore 2,000 20.0 Unlisted General Aviation Service Co Pte Ltd 3 Singapore 8,464 100.0 Unlisted Aircraft Industries (Pte) Ltd IX Engineering 1 Singapore 4,000 100.0 Unlisted Automotive Engineering (Pte) Ltd X Tourism & Leisure 1 Hotel Premier 2,821 100.0 Unlisted (Pte) Ltd 2 Jurong 5,000 100.0 Unlisted Bird Park (Pte) Ltd 3 Singapore 9,257 100.0 Unlisted Zoological Gardens 4 Parkland Golf 750 60.0 Unlisted Driving Range (Pte) Ltd XI Properties 1 Raffles 110,000 49.0 Unlisted Holdings (Pte) Ltd 2 Singapore 200,000 75.0 Unlisted Treasury Building (Pte) Ltd 3 Loyang Valley 20,000 20.0 Unlisted (Pte) Ltd XII Housing & Construction 1 Construction 2,000 100.0 Unlisted Technology (Pte) Ltd 2 Development & 15,000 100.0 Unlisted Construction Co (Pte) Ltd 3 International 1,500 100.0 Unlisted Development & Consultancy Corporation (Pte) Ltd 4 Resources 9,000 100.0 Unlisted Development Corporation (Pte) Ltd 5 Urban 22,500 100.0 Unlisted Development Management Co (Pte) Ltd XIII Farming 1 Primary 9,825 100.0 Unlisted Industries Enterprises (Pte) Ltd *Government includes statutory bodies TRANSPORT/TRANSPORT ALLOWANCE FOR PORT OF SINGAPORE AUTHORITY EMPLOYEES IN BLAIR PLAIN QUARTERS 3. Mr J.B.”
“0 Unlisted Company (Singapore) Pte Ltd IV Trading 1 Fullerton 330,000 100.0 Unlisted (Pte) Ltd 2 Intraco Ltd 40,000 26.7 Listed *Government includes statutory bodies LIST OF GOVERNMENT-OWNED COMPANIES (cont.) Name of Company's Percentage Unlisted Company Paid Up of or Capital Government Listed ($'000) Shareholding* ______________________________________________________________ 3 National 5,000 37.0 Unlisted Grain Elevator Ltd 4 Singapore 1,500 20.0 Unlisted Airport Duty Free Emporium Pte Ltd 5 Singapore 1,000 100.0 Unlisted National Oil Co Pte Ltd 6 Singapore 900 33.3 Unlisted Offshore Petroleum Services Pte Ltd 7 Singapore 1,000 100.0 Unlisted Pools (Pte) Ltd 8 Van Ommeren 50,276 8.0 Unlisted Terminal (S) Pte Ltd 9 Yaohan 9,000 12.5 Unlisted Singapore (Pte) Ltd 10 SAF 2,000 100.0 Unlisted Enterprises (Pte) Ltd 11 Singapore 1,000 100.0 Unlisted Food Industries Ltd 12 Unicorn 1,700 100.0 Unlisted International Pte Ltd V Financial Services 1 DBS Bank Ltd 228,567 48.7 Listed 2 Export Credit 63,795 49.2 Unlisted Insurance Corporation of Singapore Ltd 3 Singmanex 1,820 100.0 Unlisted (Pte) Ltd 4 Government 2,000 100.0 Unlisted of Singapore Investment Corporation (Pte) Ltd VI Shiprepair & Shipbuilding 1 Jurong 35,763 44.5 Unlisted Holding Pte Ltd 2 Jurong 95,979 15.0 Unlisted Shipyard Ltd 3 Keppel 150,641 71.3 Listed Shipyard Ltd 4 Mitsubishi 180,000 44.0 Unlisted Singapore Heavy Industries Pte Ltd 5 Sembawang 40,000 100.0 Unlisted Holdings (Pte) Ltd 6 Singapore 25,258 86.8 Unlisted Shipbuilding & Engineering Ltd VII Shipping 1 Neptune 130,000 67.7 Listed Orient Lines Ltd *Government includes statutory bodies LIST OF GOVERNMENT-OWNED COMPANIES (cont.”
“The list of companies is given below. Annex LIST OF GOVERNMENT-OWNED COMPANIES Name of Company's Percentage Unlisted Company Paid Up of or Capital Government Listed ($'000) Shareholding* ______________________________________________________________ I Holding Companies 1 Temasek 76,443 100.0 Unlisted Holdings (Pte) Ltd (THL) 2 Sheng-Li 129,549 100.0 Unlisted Holding Co Pte Ltd (SLH) 3 MND 31,000 100.0 Unlisted Holdings (Pte) Ltd (MNDH) *Government includes statutory bodies LIST OF GOVERNMENT-OWNED COMPANIES (cont.) Name of Company's Percentage Unlisted Company Paid Up of or Capital Government Listed ($'000) Shareholding* ______________________________________________________________ II Manufacturing 1 Acma 24,016 12.2 Listed Electrical Industries Ltd 2 Cerebos (S) 8,800 45.0 Unlisted Pte Ltd 3 Chemical 15,120 22.9 Listed Industries (FE) Ltd 4 Hitachi 30,000 30.0 Unlisted Electronic Devices (S) Pte Ltd 5 National 42,565 19.7 Listed Iron & Steel Mills Ltd 6 Singapore 6,003 100.0 Unlisted National Printers (Pte) Ltd 7 Singapore 28,200 6.7 Unlisted Textiles Industries Ltd 8 Sugar 8,000 40.0 Unlisted Industry of Singapore Ltd 9 Tata Elxsi 6,300 15.0 Unlisted Pte Ltd 10 United 70,875 16.5 Listed Industrial Corporation Ltd 11 Allied 4,000 60.0 Unlisted Ordnance Company of Singapore (Pte) Ltd 12 Chartered 105,650 100.0 Unlisted Industries of Singapore Pte Ltd 13 Ordnance 9,068 100.0 Unlisted Development & Engineering Co of Singapore Pte Ltd III Petrochemicals 1 Denka 10,000 20.0 Unlisted (Singapore) Pte Ltd 2 Ethylene 96,500 50.0 Unlisted Glycols (Singapore) Pte Ltd 3 Petrochemical 182,520 47.5 Unlisted Corporation of Singapore (Pte) Ltd 4 Phillips 111,000 25.0 Unlisted Petroleum Singapore Chemicals (Pte) Ltd 5 The Polyolefin 94,900 25.”
“Mr Speaker, Sir, I beg to move, "That this Parliament, in accordance with Section 4 of the Asian Development Bank Act (Chapter 59), resolves that the Minister for Finance be authorised to increase, on behalf of the Government, the total subscription of Singapore to the authorised capital stock of the Asian Development Bank by a sum not exceeding thirty-four million United States dollars." Sir, the Board of Governors of the Asian Development Bank has adopted a Resolution to increase the capital stock of the Bank by 105%. This is the third increase in the Bank's capital stock. The first increase of 150% took place in 1972 and the second increase of 135%, in 1977. At present, Singapore's subscription to the authorized capital of the Asian Development Bank is US$32.4 million. Under the proposed increase, we have been allotted a further US$34.0 million. Parliament is requested to authorize the Government to increase the total subscription of Singapore to the authorized capital stock of the Asian Development Bank by a sum not exceeding thirty-four million United States dollars. Sir, I beg to move. Question, "That the terms of the Motion moved by the Minister for Finance which appears as item 4 on the Order Paper", put, and agreed to. Resolved, That this Parliament, in accordance with section 4 of the Asian Development Bank Act (Chapter 59), resolves that the Minister for Finance be authorised to increase, on behalf of the Government, the total subscription of Singapore to the authorised capital stock of the Asian Development Bank to a sum not exceeding thirty-four million United States dollars. SALARY OF SPEAKER 3.54 p.m.”
“Perhaps the Member is referring to PIE's operations with respect to the Armed Forces. PIE provides some of the supplies for feeding our army and other armed forces. If the private sector is equally viable, equally able to supply foodstuffs, I see no reason why they should not also compete with the PIE. The PIE is treated, I think, like any other Government company. It is expected to operate in competition with the private sector. AIR POLLUTION FROM PIG FARMS IN PUNGGOL (Measures to reduce) 4. Dr Lee Chiaw Meng asked the Minister for the Environment and Minister for Communications what action the Ministry of the Environment will take to reduce air pollution caused by the foul air from pig farms in Punggol.”
“INTRACO is a company in which the Government has some equity. I believe the proportion is somewhere around 20%. So in a sense it is not exactly a Government controlled company, although 20%, of course, is a fairly considerable share. In the case of PIE, the answer is yes, it is a Government company.”
“Sir, I must inform the Member for Rochore that the companies are run on the basis of private sector companies, i.e. their budgets are drawn up by their boards of directors. I do not know to what extent their budgets follow Government budgets but they are certainly not regulated in the sense that Government budgets are rigidly enforced. At the end of the financial year when the results become apparent, it is only the results, the balance sheet and profit and loss statements, that are made public by these companies, and I think rightly so. The public is then able to judge whether the companies have performed profitably. As regards the last part of the question whether the private companies are being crowded out, if that is the case we would not have a vigorous private sector. I think their vigour can be seen by the Stock Exchange quotations every day, and while there are Government companies in the list of publicly listed companies, I do not think they are a majority in this Exchange.”
“I did not get the last part of the question.”
“The dividend yields for the three holding companies were nil, The yields for the operating companies were nil for 34 companies (including eight which have yet to commence operations), 1% to 10% for five companies, more than 10% but less than 20% for 10 companies, and at least 20% for nine companies.”
“Sir, the Singapore Government has equity (as I think the term is commonly understood) in two statutory bodies, namely, the Monetary Authority of Singapore (MAS) and the Telecommunication Authority of Singapore (TAS). These statutory bodies, like all other statutory boards, are exempted from payment of income tax under the Income Tax Act. The Government directly holds equity, through the Minister for Finance, a corporation sole which invests directly in five operating companies and in three holding companies: Temasek Holdings Pte Ltd (THL), Sheng-Li Holdings Pte Ltd (SLH), and MND Holdings Pte Ltd (MNDH). THL, SLH, MNDH and their companies together made an income tax provision of $259 million for the year ended 31st December, 1982. For the fiscal year 1982, the MAS paid dividends totalling $600 million. TAS is expected to declare a dividend of $20 million for the six-month period ended 30th September, 1982, i.e. immediately prior to its merger with the Postal Services Department. The holding companies have not paid their dividend to the Government, as all their surpluses are held for reinvestment. The holding companies received dividends totalling $121 million from their operating companies for the 12-month period ended 31st December, 1982. As at the end of fiscal year 1982, the total equity capital of the Government in MAS and TAS was $392 million and that through the Minister for Finance and in the holding companies was $1,726 million. All these entities are wholly owned by Government. The annual yields on capital for 1982 from dividends were 10.3% for MAS, and 13.7% for TAS. The rate of dividend paid by MAS took into account not only Government's paid-up capital but also Government's cash balances in the current accounts with the Authority.”
“Sir, the simple answer to that is no, for the purpose of this Bill. This Bill merely enacts legislation to implement the 1982 Budget concessions. If he wants this to be considered separately at a different time it would be possible, but I am not sure whether the Minister responsible for the Budget at that time will be prepared to give a satisfactory answer to him. 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 Hon Sui Sen] Bill considered in Committee; reported without amendment; read a Third time and passed. CRIMINAL PROCEDURE CODE (AMENDMENT) BILL Order for Second Reading read. 5.43 p.m.”
“Where they do not exceed $5,000, the maximum amount deductible for contributions to the Central Provident Fund and approved pension or provident funds and life insurance premiums is $5,000. Clause 7 also provides for the increase in the aged dependant relief from $750 to $1,000 with effect from Year of Assessment 1983, if the parent, grandparent or great grandparent does not have an income of more than $1,500 a year. I now move on to the two minor amendments to the existing legislation. Clause 2 of the Bill also makes consequential amendment to section 14 (1) (e) of the Income Tax Act as a result of the increase in the rate of employers' Central Provident Fund contributions from 201/2% to 22% effective from 1st July 1982. Presently, Singapore accepts and computes taxable profits of a non-resident shipping or air transport enterprise based on the ratio certificate issued by the tax authority of the country of residence if that country adopts a similar basis of assessment. If the certificate is not issued or is unacceptable, the non-resident enterprise is assessed on 5% of the gross freight. Clause 6 amends Section 27 of the Act to provide that the ratio certificates issued by the foreign country will be acceptable to the Comptroller of Income Tax only if that country also accepts similar certificates by him. Mr Deputy Speaker, Sir, I beg to move. Question proposed.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Income Tax (Amendment) Bill is to give legislative authority to the income tax concessions announced in the 1982 Budget Statement. Opportunity has also been taken to include two other amendments to the existing legislation. It was announced in the 1982 Budget Statement that the ceiling of the capital allowances for company registered motorcars would be increased from $25,000 to $35,000 with effect from 1st April, 1982. Clauses 2, 3, and 5 of the Bill amend Sections 14, 19 and 20 of the Income Tax Act to provide for this. Another concession is the extension of the accelerated depreciation allowance of 33 1/3% over three years to lessors for equipment leased to lessees who would be eligible for the accelerated depreciation had they purchased the equipment themselves. This applies to equipment purchased on or after 1st April, 1982. The accelerated depreciation allowance is also granted to non-industrial enterprises which install approved energy-saving equipment on or after 1st January, 1982. Clause 4 amends section 19A of the Income Tax Act to make provision for these concessions. Clause 7 amends section 39 of the Act to allow the whole amount of statutory contributions to the Central Provident Fund and other designated approved pension or provident fund schemes to be exempt from tax with effect from Year of Assessment 1983. Where such contributions exceed $5,000, no further tax deduction will be allowed for life insurance premiums and other voluntary contributions to superannuation schemes.”
“Mr Speaker, Sir, the scheme to attract married women to work part-time in the Civil Service was introduced in January 1981. It attracted only 19 part-time workers. The scheme did not meet with good response mainly because of the rigid requirement that a part-time worker had to put in a minimum of 21 working hours and five days per week and the fact that a part-time worker was paid only half the salary of a full-time worker. The scheme was also restricted to only 31 grades of appointment. In July, 1982, an improved scheme with more attractive terms was introduced. Under the new scheme working hours are flexible, to be determined between the part-time worker and the employing Ministry. Wages are also higher under the new scheme because the hourly rates of payment have been enhanced to compensate for the lack of leave and medical benefits. Although the scheme has not attracted as many part-time workers as we would like, it is encouraging to note that the number of part-time workers has increased from 11 in August 1982 (including nine who were converted from the old scheme) to 78 in January 1983. The majority, about 80%, of the part-time workers are employed as clerks, The rest are employed as typists, executive officers, research officers and technicians. HOUSING AND DEVELOPMENT BOARD ESTATES (Deterioration in cleanliness) 3. Mr M.K.A. Jabbar asked the Minister for the Environment, as cleanliness in Housing and Development Board estates has deteriorated in spite of the many "Keep Singapore Clean" campaigns, what new measures his Ministry and HDB will take to improve the state of cleanliness.”
“Mr Speaker, Sir, the tax-exempt status of interest on POSB deposits has been under review in the light of the plan to convert POSB into a commercial bank. The review is being undertaken by a Steering Committee, appointed to prepare the blueprint for commercialization. It has been addressing the question of the tax- exempt status as part of its terms of reference. The Steering Committee is expected to submit its report to the Ministry of Finance in April 1983. CRIME INVESTIGATION AND CONTROL (Clearance rate for criminal offences) 2. Mr Goh Chee Wee asked the Minister for Home Affairs (a) what was the clearance rate of all the criminal offences committed in Singapore in 1980, 1981, and 1982; and (b) what measures his Ministry will take to improve the effectiveness of crime investigation and control.”
“Sir, I do not know who made a law that made it necessary that we should deny whatever the previous Minister had said. As far as I am concerned, I made this declaration, in fact, I will make this declaration now that the Payroll Tax is only to be used for the Consolidated Fund and, like all items in the Consolidated Fund, it will be merged with the general revenues of the Government and will be treated no differently from any other items of revenue.”
“Sir, I do not think I need to make a specific declaration. As Minister for Finance, I am in charge of the revenue of the Government, I am in charge of the disbursement of moneys from the Consolidated Fund. I have paid the Payroll Tax into the Consolidated Fund and have used it for the purposes which I think are appropriate, that is, for the votes which are itemised in the Budget and which have been approved by this House, and I think there is no further declaration needed. But I did say in this House that, as far as I was concerned, Payroll Tax was an item of revenue that was not to be discussed in the same terms as the Skills Development Fund. That was, I think, within this month [4th March]. I see no reason, with the functions which have been assigned to me, that I should ask anyone else whether I should make this declaration. I make this declaration as Minister for Finance of this Government, and that is sufficient as far as this item of revenue is concerned.”
“Sir, I thought I made it clear that I have made a declaration that this money is required by the Minister for Finance, and that declaration overrides any other declaration that has been made in this House.”
“Sir, I am aware that perhaps there have been different intentions with regard to the payroll tax in the early days. There was an intention, for example, that this payroll tax should be withdrawn after Malaysia. That has not been carried out. There might have been some intention to consider uses of the payroll tax and the Minister, whom he quoted, at that time might have really intended that that was a use which was appropriate. There had been other intentions with regard to the payroll tax from time to time which had been suggested in the House. When I came into the Government, the payroll tax was already an item of revenue. It was an item of over $160 million in 1982. 1 feel that I am not able to dispense with the large amount which is being collected. As far as I am concerned, my duty as Minister for Finance is to see that there is sufficient revenue to meet expenditure. We have been told that the deficit, taking into account both current and development expenditure, is enormous and I therefore feel no qualms in using the payroll tax which has been paid into the Consolidated Fund to meet the expenses that this Government must expect. Whatever may be the intentions in the past, whether by the Minister for Labour at that time or by the NTUC members or other people in this House, my duty is quite clear. I am not prepared to forgo the revenue which is being collected under the payroll tax. I have made this clear previously, and I would like to make it clear again that I wish to retain this payroll tax for the Consolidated Fund.”
“But I have no doubt that civil servants will be well taken care of by their trade unions and by their MPs. I think I also heard the Member for Ang Mo Kio speak on medical benefits for dependants of civil servants, but mainly in regard to married female officers in the Civil Service. He has made an eloquent plea. However, we have heard these pleas before and we have rejected them. I do not think it would serve any purpose for me to go over the whole ground again. I think we explained earlier, not by me but by the Minister of Defence when he was acting in the position, in one of the Budget debates, that the guiding principle in providing medical benefits to dependants of civil servants is whether the dependants are truly dependent on the civil servants. Therefore, a woman officer is accorded medical benefits in respect of dependants only if she has children solely dependent on her. This is so in the case of a widow, divorcee or married woman who has been granted a decree or judicial separation. Sir, I think I have dealt with all the points.”
“Sir, the matter has come up for discussion with the Ministry of Finance. I think the Medisave scheme is still being discussed.”
“In this connection I am happy that the Member for Geylang Serai is a member of the Council representing the NTUC, and he has my sincere appreciation for his active support of the WITs movement in the Civil Service. The Member for Geylang Serai also mentioned about medical benefits for Division IV civil servants. I did not quite get his point.”
“The enthusiasm and response to the WITs movement show that civil servants regard the recognition of their involvement in and ability to contribute to the improvement of the work of their Ministries and Departments as its own reward. This recognition is in itself a valuable incentive that is above monetary rewards. Material incentives and rewards should not be over-emphasized although there are some such material incentives and awards. Participation in WITs has its own intangible but lasting rewards. All Civil Service managers are being encouraged and trained to pay heed to the importance of self-esteem, involvement, challenge, pride of work and job satisfaction to all workers, not least civil servants. A survey carried out in October and November 1982 gauged the response of civil servants to WITs. The survey shows that civil servants do want to contribute to their organization's effectiveness and to their own personal development. The felt that WIT was an effective channel through which their talents, creativity and team work and pride in work and motivation could be harnessed to bring about improvements in the Civil Service and improved their job satisfaction and personal development. I have here a summary of the survey, but I do not propose to read the results of this survey. I am prepared to make this available to anyone who is interested. I am satisfied with the progress already made by WITs in the Civil Service. The need now is to sustain this interest in WITs. Permanent Secretaries and Heads of Departments have to continue to actively promote the formation and nurturing of WITs. The WITs Development Unit needs all the support - moral, administrative and financial - they can get to assist in the task.”
“Similarly, the salary adjustments to rectify the anomalies which were agreed in November 1982 were implemented on 1st December. The Member's request that this be backdated would offend against the principle and my Ministry cannot agree to his request as it will breach long established principles. The Member for Geylang Serai also asked about the WITs programmes. I am glad that he has given me the opportunity to express satisfaction with the implementation of the Work Improvement Teams (WITs) in the Civil Service. The formation and nurturing of WITs in each Ministry and Department is the responsibility of the individual Ministry and Department. The implementation has, however, been and is being coordinated by the WITs Development Unit under the overall direction of the Central Productivity Steering Committee which includes representatives of the NTUC. I believe it includes the Member for Geylang Serai. The Civil Service Institute set about training the first batch of facilitators for the WITs programme in early 1982. The initial plan was to train 60 facilitators in 1982. But the response from the Ministries was so overwhelming that 750 facilitators were actually trained in 1982. These trained facilitators helped to set up 845 WITs in the Ministries and Departments, a number which, again, surpassed the figure of 120 planned for 1982. The first Civil Service WITs presentation was held on 22nd and 23rd September, 1982, as part of the National Productivity Month. Sixteen WITs participated. Actually about 60 WITs applied to take part but only 16 could be accommodated within the time available. Nineteen WITs from the public service also took part in the National QCC Convention. They did well in bagging seven gold awards.”
“The response to the scheme was unexpectedly poor. Only 12 employees without PSLE qualification applied for sponsorship. They have already started on their courses. The Public Service Division is now trying to find out why the other officers did not sign up. Two possible reasons are that they feel that they are too old to go back to school or that their family commitments are too heavy. My Ministry will do whatever is in its control to remove any obstacles or inhibitions that the civil servants may have, so that as many as possible can take advantage of the opportunity to upgrade themselves. The Member for Geylang Serai also asked about the backdating of revision of Division IV salaries. On this matter, the principle is fairly clear - salaries should not be backdated. Incidentally, the salaries for Division IV employees were revised from April 1982. The anomalies which were mentioned by the Member for Geylang Serai arose because the salary revision in April 1982 entailed the amalgamation and revision of salary scales. Both the union and my Ministry were not aware of the anomalies when they agreed on the revised salaries and signed a three-year collective agreement on 29th March, 1982. Subsequently, when the anomalies came to light, the union and my Ministry discussed the matter and reached agreement in November 1982 and agreed on certain salary adjustments to rectify these anomalies. The time-honoured practice in my Ministry and generally accepted by the Civil Service unions is that changes in salary scales are implemented on the first day of the month following agreement of the changes. Thus, the revised scales for Division IV grades agreed by the union and my Ministry on 29th March, 1982, were implemented from 1st April,1982.”
“The National Computer Board, which has been charged with the overall responsibility for the implementation of the Civil Service computerization programme, also looks into the training needs of the staff in the Ministries and Departments who will see and operate the computer equipment that is installed under the Civil Service programme. Common training programmes have been organized for Ministries and Departments where common equipment is used. For instance, with the installation of communication word processors covering all Ministries and a number of Departments, the staff operating these word processors, who are in Divisions 11, Ill and IV, are all given the same type of training. Such training was arranged at the Civil Service Institute by the Management Services Department which is responsible for implementing the communicating word processor network with the supply of equipment and assistance in the training and provision of training facilities. It is obvious that no single training programme for the whole Civil Service, even in the lower echelons only, can meet the needs of all the staff who have to use and operate the equipment for the computerization, mechanization and automation in the Civil Service. However, when needs for training of a generalized nature exist, the Finance Ministry's Public Service Division and the Civil Service Institute will continue to coordinate, plan and implement such training. The Member for Geylang Serai also asked about the employees in the public sector who did not have the basic skills in the English language and Mathematics. To encourage officers who lack basic skills in English and Mathematics to upgrade themselves, my Ministry introduced a scheme last year to sponsor them for foundation courses at the VITB.”
“Sir, computerization, mechanization and automation in the Civil Service take many and varied forms with a variety of equipment. The Member for Geylang Serai wanted to know what steps are being taken to see that staff in the lower echelons are trained in order to adapt themselves to the new situation. Some of the equipment for computerization, mechanization and automation are very specialized and serve the needs of particular Departments only. For instance, equipment for computer-assisted design for the Public Works Department and the Ministry of the Environment is to assist them in their architectural and engineering drawings and designs. Arrangements have been made by the PWD and the Ministry of the Environment themselves to train their own staff to use and operate these machines. Such staff will include operatives in the lower divisions of the service there. Other Ministries or Departments acquiring specialized equipment catering for their particular needs only will also have to arrange for training of their own staff at all levels who will have to man or operate the equipment. Usually the vendors or suppliers of such equipment also provide training facilities. In the case of the Civil Service computerization programme under which there will be widespread dispersal and use of computers of various sorts in Ministries and Departments, staff training at all levels, as I have previously explained, has to be initiated by the Ministries and Departments themselves to cater to their own needs. This is because there will be such a variety of computers of different sizes and capabilities in Ministries and Departments to serve very different purposes. No single common programme of training for the whole Civil Service can be adequate. 4.00 p.m.”
“Sir, I have previously given to the House, during the Committee of Supply debates on the FY 1981 budget, the reasons for an allocation of this kind. I will give these reasons again. On 4th August, 1980, the Government announced that with effect from 1st January 1981, all contractors would be required to pay CPF contributions for their foreign construction workers employed under block permits. It was emphasized, however, that contractors working on Government projects which could not be completed by the end of 1980 might face some financial difficulties as they had not taken such CPF contributions into account in their tender bids. It was therefore decided to pay on behalf of the contractors the CPF contributions for workers on contract tendered before the date of the announcement of the new policy. This requirement, that employers make CPF contributions in respect of their block permit contract workers, was dropped with effect from 1st July, 1982; and a Foreign Workers Levy imposed instead. The $30 million therefore remains as a need to pay the CPF contributions from the period of 1st January to 1st July 1982. The financial provision for these ex-gratia payments is made under my Ministry's head of expenditure but the actual administration of the scheme is the responsibility of the Ministry of National Development which deals with the contracts. 3.45 p.m.”
“The distinction is that the contingency amounts, of course, for particular projects are provided in the particular project. Here I am speaking in terms of new projects. In the case of Changi Airport, it is a series of projects; some of which have been planned and some of which are unexpected and new. So this is the contingency sum for new projects. I think $350 million at today's prices and for a Development budget of $8 billion is not very considerable.”
“Sir, the request for $350 million is not a request to Parliament for a blank cheque. I admit that this sum is a contingency sum which, I said, is made up of 15% of the total budgetted expenditure. But before any expenditure can be incurred, or even for the project to be approved, it must go to one of the three committees. If it is a small project, it goes to the Development Planning SubCommittee, up to a level of $300,000 for a new project; or to the Committee on Project Evaluation, which is a committee of the three major Permanent Secretaries; and to the Development Planning Committee, which consists of three Ministers, for any sum above $5 million. So it is not a blank cheque in that sense. There is no way in which civil servants can plan for everything in the following year, and if the money has to be sought from Parliament in each case, then it would delay certain projects. For example, in the case of the Changi Airport, in one particular year the progress was so much better than expected that we had to go beyond the budget. We did come back eventually at the end of the year, just before Budget time, for additional allocations in an application for supplementary vote. So it is to avoid having to do this that we ask for a contingency provision of $350 million. I think this is prudent budgetting and it is being done in all commercial firms at least, so that when they plan a project there is a certain amount of contingency provision.”
“Sir, the Member for Chua Chu Kang wants to know how the sum of $350 million has been set aside under my Ministry for new development projects. As the Member is aware, the Development estimates of each Ministry indicate the amounts required in the new financial year for implementation of projects which have previously been approved by the Development Planning Committee, the Committee on Project Evaluation or the Development Planning Sub-Committee. Each of these committees is authorized to approve development projects up to an estimated cost of $300,000 for the DPSC, $5 million for the Committee on Project Evaluation and $5 million for the Development Planning Committee. In the course of the new financial year, however, a Ministry or Department might need to implement new projects for which no provision exists in the Development estimates. After the Ministry or Department has obtained the approval of the appropriate committee for implementation of such a new project, my Ministry will make funds available from this particular item to meet the initial expenditure in the current financial year. Over the following year, expenditure for such projects should be provided in the Development vote of the Ministries themselves. So the allocation for new projects is made after taking into account past expenditure trends and the development plans of the Ministries. The amount which has been provided for the financial year 1983 is a sum of $350 million, which is the same as that provided last year and is expected to be sufficient. This amount is roughly 15% of the total budgetted expenditure of all Ministries and Departments.”
“At the time when the Civil Service computerization programme began, the Ministries of Labour, Education and the Environment as well as the Inland Revenue Department had already received approval to proceed with their respective computerization plans. Four computer systems have since been installed in these Ministries and the Inland Revenue Department, These systems should contribute significantly to the operational efficiency. All the Civil Service computerization projects are aimed at enhancing the operational efficiency of the Ministries and Departments concerned. Not only should efficiency be increased but productivity should also be enhanced. Training, which the Member wanted to know about, is a key ingredient in the implementation of the computerization programme in the Civil Service. The National Computer Board has to-date built up a staff strength of 218 computer professionals. All new staff who do not have the necessary computer background undergo a three-month training course where they are taught computer concepts, programming and systems analysis. The more senior computer staff are also sent on specialized courses. Courses are conducted mainly by the Systems Education Centre, the in-house computer training facility of the NCB. In addition, to ensure proper user participation in the computerization efforts, the NCB is also mounting a comprehensive user education programme to all levels of staff in Ministries and departments who will have to use and operate the computer systems.”
“Sir, computerization has been with us for many years but it has been given greater emphasis in recent years. The Government decided in early 1981 to implement a major Civil Service computerization programme as recommended by the Committee on National Computerization. The National Computer Board was set up in September 1981 to undertake among other functions the greater computerization of the Civil Service. Although there may be no allocation of funds this year, I would like to assure the Member for Clementi that there is no question of depriving the NCB at any time of any funds it requires. Such funds will be made available when necessary. The software development work carried out by the NCB computer professionals in consultation with officers of the Ministries concerned is now in various stages of progress. The preliminary project work for some of the Ministries has been completed and tenders for computer systems have been called for the Ministry of Social Affairs, the Department of Civil Aviation and the Meteorological Department. So far, nine tenders have been called. Of these, the tenders for the Ministry of Social Affairs and the Department of Civil Aviation have been awarded. The other tenders, including that for the Ministry of Home Affairs in which the Member is interested, are now being evaluated. All the nine new computer systems are expected to be installed by the end of this year. The development work for the Ministry of Trade and Industry, the Police Department, the Registry of Vehicles, the Ministry of National Development and the Customs and Excise Department has reached where these Ministries and Departments will soon invite tenders for their required computer systems. 3.30 p.m.”
“That it would always be a non-pensionable allowance. I may remind the Member for Moulmein that the recent consolidation exercise was not the first of its kind. It is the second. The first exercise meant that we included all the increments which have been given in the past and made them part of the wage, the salary, and therefore they became pensionable. In the case of other NWC allowances, there was some legal impediment to my making them pensionable. Then there was a Bill which was introduced by me in this House to make certain allowances pensionable. And it is the intention that the NWC allowances would be pensionable so that even in between the years before consolidation, it would have the character of a salary, i.e. it would be part of the pensionable emoluments of the officer. There was no such intention in the case of the 13th month payment, and I say there would be no intention in the case of the half month payment in the middle of the year.”
“Mr Speaker, Sir, I think the Member for Moulmein is ascribing to me the thinking that he himself has. There is no question that we intended the annual wage supplement, i.e. the 13th month payment, to be a non-pensionable annual allowance, and we have said so right from the start. In the case of the NWC allowance, I never said that it would be a non-pensionable allowance.”
“At best, they serve to freeze staffing levels in the short-term and gradually reduce the levels in course of time without displacing anyone from employment.”
“The transfer of the staff of the former Postal Services Department to the Telecommunications Authority of Singapore accounted for the bulk of the drop in the total strength. 3.15 p.m. The Member has also commented that with large scale introduction of computerization there would be further opportunities of trimming of staff. I should like to stress here that the computerization programme has been launched with the primary objective of enhancing operational efficiency and productivity and the ability of Ministries and Departments to deal with the increasingly larger amount of Government business. It is not a staff reduction measure as such. Computerization, mechanization and automation schemes are expected to improve staff productivity and, therefore, reduce significantly the demand for additional manpower to cope with workload increases. In certain areas, however, the computerization, mechanization and automation could lead to staff reductions. The excess staff will be redeployed to fill vacancies in other Departments. The full extent of manpower savings resulting from the implementation by Ministries and Departments of various computerization, mechanization and automation projects cannot be accurately estimated at this stage. Over the last year, some 200 vacant permanent and daily-rated posts have been deleted as these are no longer required following the implementation of the computerization, mechanization and automation projects. However, I would like to reiterate the caution raised by my colleague, the Minister for Trade and Industry, in this House - that the computerization, mechanization and automation programmes must not be used or seen to be used as a means to retrench staff. Otherwise they would be doomed to failure.”
“As for the second tier payment in 1980 and the second tier payment of 2% in 1981, the purpose of the second tier was to reward deserving officers. In fact, there was a lot of heart-burning in the Civil Service as to who were those who deserve to get the second tier payments. Therefore, I think it is in the nature of these lump sum quantums that they are not of the same nature as the salary which is payable from month to month and even, I suppose, less deserving officers would be paid. The answer to the Member for Moulmein is, therefore, that I do not think it is appropriate in the circumstances for this to be consolidated with the salaries. In addition, there is a need for this half month payment. I would suggest that it is a useful payment for civil servants and would assuage some of the feelings of anger and frustration of those who retire or leave the Service and would not receive the Annual Wage Supplement at the end of the year. I now come to the Member for Clementi. The total expenditure on manpower of the Ministries and departments is expected to reach $1,581.1 million in FY 1983, an increase of 19% over the corresponding budget allocation for FY 1982. This rate of increase is higher than the average annual growth of 13.5% in budgetted manpower expenditure over the financial years 1980-82 period. The increase is mainly due to the recent salary revision, the NWC wage supplement and the consequential rise in CPF contributions. The rate of increase has, however, been moderated by a drop in the actual staff strength of Ministries and departments. This is not just a matter of a drop in the establishment. The total number of monthly and daily-rated officers on Government payroll fell from 84,079 in December 1981 to 83,090 in December 1982.”
“The Annual Wage Supplement is what you mean. It is quite clear that this has not been made part of the salary for very special reasons, and that is, it is a payment at the end of the year to people who remain in the Civil Service for the year. Therefore, by suggesting that it should be made part of the salary, what he is really trying to do is to make it into 12 payments and incorporate each payment in the salary so that the effect would really be that it is no longer an Annual Wage Supplement and would not fulfil the function which, I think, was designed for it, which is, that there should be a lump sum of money available at the end of the year to meet special expenses which are likely to be required at that period of the year. In the same way, the half month salary which has been paid last year has taken on some of the characteristics of the Annual Wage Supplement. It is not a sum which need be paid to all officers. In fact, the idea is that only the deserving officers should get it. Those who have been subject to increments not being awarded would not receive this half month's pay. Therefore, if you look at the history of the 13th month salary, and also the half month salary which is paid in the middle of the year, the derivation of the half month pay wag from the second tier payment in 1980 of 3% and the second tier payment in 1981 of 2% which were lump sum quantums which we were committed to pay in 1982 as a result of certain recommendations of the National Wages Council. The amount in 1982 should have been less than half month. It came to 3.85%, perhaps, of the 1982 June wage bill. But the Government was generous and rounded it off to half a month.”
“Sir, as regards the 13 1/2 month payment, I believe the Member for Moulmein is referring to the incentive payment of half a month's salary which was paid to deserving officers in the Civil Service last year. Mr Sia Khoon Seong: The 13th month and the 13 1/2 month payments.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Estate Duty (Amendment) Bill is to bring into effect the estate duty concessions which were announced in the 1982 Budget Statement. Clause 2 of the Bill amends section 10A of the Estate Duty Act so as to exempt from estate duty gold deposits held by foreigners with approved banks and approved members of a gold exchange in Singapore. To qualify for this exemption, the foreigner must be at the time of his death neither domiciled nor resident in Singapore. Clause 3 amends section 10C of the Act to raise the exemption limit on estate duty for dwelling houses from $600,000 to the full value of any one dwelling house owned by the deceased where its value exceeds $600,000. It also provides for all statutory contributions to the Central Provident Fund and designated pension or provident fund to be exempt from estate duty. If such contributions exceed $100,000, no further relief from estate duty is given for other assets except dwelling houses. But if the contributions do not exceed $100,000, the exemption limit of $100,000 for assets other than dwelling houses will apply to all such assets, including pension and provident fund contributions. The concessions legislated in this Bill are applicable to estates of persons dying on or after 1st April, 1982. 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 Hon Sui Sen]. Bill considered in Committee. [Mr Speaker in the Chair] Clause 1 -”
“If they came from the Economic Survey, I expect that they are accurate for the figures which they have produced. But the table which I have given includes also the 13th month salaries, Government's CPF contributions and Skills Development Fund which may not be in the figures which make up those in the Economic Survey. HAWKER LICENCES (Criteria) 5. Mr Yeo Choo Kok asked the Minister for the Environment whether his Ministry will consider the issuing of hawker licences on the basis of culinary skills instead of the present criteria of hardship and age limit.”
“Sir, I am not quite sure that I can agree with the figures which he has given. My figures show that the manpower expenditure increase was 12.9% for 1981 over 1980, and 24.8% for 1982 over 1981. I think the increase in 1982 expenditure was due mainly to the salary revision which was made in 1982 and, therefore, I do not think there is any connection with the Consumer Price Index. Dr Toh Chin Chye: Sir, my figures have been abstracted from the Economic Sur vey of Singapore, 1982. I presume they must be accurate for public consumption.”
“Sir, the expenditure on manpower for each of the grades Superscale, Divisions I, II, III, IV and Others for each of the years 1980, 1981 and 1982 is given in a table (Cols. 431 - 432), copies of which I have handed over to the Clerk of Parliament for distribution to the Member for Rochore and to other Members. table - EXPENDITURE ON MANPOWER IN THE CIVIL SERVICE 1980-1982 (Cols. 431 - 432) The hon. Member for Rochore will note that the total expenditure on manpower for all these grades was about $879.0 million for 1980, $992.2 million for 1981 and $1,238.7 million for 1982.”
“Again, Mr Speaker, Sir, I think he had better study the Economic Survey for he will find that the reason why productivity has fallen is due perhaps to the present economic situation where a lot of workers are retained, even on short-time, and therefore the figures on productivity are affected by the fact that a lot of additional labour is retained. I do not think this is related so much to the Skills Development Fund. It would be very surprising if all the training that we have done under the Skills Development Fund that this has been the cause of productivity falling. EXPENDITURE ON MANPOWER (1980-82) 4. Dr Toh Chin Chye asked the Minister for Finance if he will give the expenditure on manpower for each of the grades Superscale, Divisions I, II, III, IV and Others for each of the years 1980, 1981 and 1982.”
“Sir, I do not want to go into the cost of labour and its effect on the economy. This is given in statistics in the Economic Survey and can be looked at. Payroll tax, as far as I am concerned, is not related to the Skills Development Fund. It is a revenue tax which was imposed first during the Malaysian period and which I found very convenient for financing of other Singapore Government projects. So I do not include payroll tax in the cost of labour. It may be considered as a revenue item. The Skills Development Fund has been set up specially to increase the productivity of workers, and the amounts which have been disbursed are increasing and will eventually increase to meet the contributions which are being made by the companies. I certainly hope this will come about very soon and I hope that productivity will increase accordingly.”
“Sir, I think the purpose of the Skills Development Fund is to improve skills, and the increase in skills and in productivity is usually accompanied by an improvement in methods which include mechanization. In order that we can improve skills in procedures which require mechanization, we have sometimes to encourage companies to mechanize and the amounts which have been given have not been very considerable and are amply justified.”
“Mr Speaker, Sir, as at 31st December, 1982, a total amount of S$313.8 million was collected for the Skills Development Fund. A total of S$27.5 million has been disbursed as at 31st December, 1982, under the three grant schemes of the Fund. In the private sector, 1,288 companies received S$18.8 million in training grants, 96 received S$2.0 million in interest grants for mechanization and 23 received S$0.6 million in development consultancy grants. Government ministries and statutory boards received S$6.0 million in training grants and S$O.1 million in development consultancy grants. The following organizations in the private sector have benefitted from disbursements from the Fund-- Sectors No. of Percentage Companies Manufacturing 614 43.6% Banking and Insurance 316 22.5% Commerce 234 16.6% Transportation 94 6.7% Others 149 10.6% 1,407 100% As at 31st December, 1982, a further sum of S$102.4 million remained to be paid under the three schemes. Of this sum, S$78.9 million is payable under the Training Grant Scheme, S$19.8 million under the Interest Grants for Mechanization Scheme and S$3.7 million under the Development Consultancy Scheme.”
“The current average basic monthly salary of skilled workers ranges from $500 to $600. Those in supervisory grades can earn a higher salary of about $900. MUSLIM PILGRIMAGE 21. Mr M.K.A. Jabbar asked the Acting Minister for Social Affairs (a) how many Muslims went from Singapore to Mecca this year; (b) how many Singapore Citizens, among them, died whilst on pilgrimage; and (c) whether there are better facilities planned by his Ministry for the pilgrims.”