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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“The financial world has therefore been given respite from impending disaster, but the basic problems underlying the monetary crisis remain to be resolved. The year 1972 may yet see a recrudescence of the old symptoms and a recurrence of the disease. In the general realignment of currencies when the dollar was devalued in terms of gold by 8.57 per cent, Singapore followed the British Pound in maintaining its gold parity. In other words, the Pound Sterling was revalued upwards against the American Dollar by 8.57 per cent, and the Singapore Dollar maintained its parity with Sterling and was also revalued upwards by 8.57 per cent against the U.S. Dollar. However, in relation to all of Singapore's world trading partners the effective net revaluation for the Singapore Dollar has been calculated to be only 0.53 per cent. Our trade with Malaysia will be completely unaffected as parity between the Singapore and Malaysian dollars has been maintained, but one consequence of Singapore's decision not to follow the-American Dollar downwards may be some small increase in the overall cost of imports. However, this increase could be reduced if trade and capital transactions are changed in direction to take advantage of the altered currency rates. Thus, unless prices also change, imports from Japan and Germany which are now relatively more expensive as suppliers, may be reduced while imports from the United States, cheaper because of devaluations, should be increased. The monetary uncertainty had a deleterious effect on trade last year. In a preliminary assessment of international trade in 1971, the General Agreement on Tariffs and Trade (G.A.T.T.) Secretariat indicated that there was a marked slowdown in the rate of growth of world trade in 1971.”
“In May, the first indications of potential trouble came with the free floating upwards of the German Mark, and the revaluation of the Swiss Franc and the Austrian Schilling. This was followed by a period of intense speculation in the Mark, the Yen, and finally against the U.S. Dollar, which resulted in a rapid deterioration of the dollar's position. Finally, the international monetary system devised at Bretton-Woods, of internationally agreed par values and strictly maintained exchange margins of not more than 2 per cent, collapsed with the "Nixon shock" in August, announcing suspension of the convertibility of the dollar and the imposition of a 10 per cent surcharge on all U.S, imports. The draconian measures adopted to shore up the dollar's crumbling defences and to exact trade concessions from her trading partners (including restraints in textile exports under "voluntary" agreements) had widespread repercussions on world economies. Many countries were obliged to float their currencies or to restrict dealings in their currency exchanges, and the resultant uncertainties on prices had a depressive effect upon world trade. There was even talk of retaliatory restrictions being imposed against U.S, goods. By the end of the year, wiser counsels prevailed and the crisis began to recede with an agreement for the devaluation of the dollar against gold and realignment of all other major currencies on new parities or central rates either in terms of the U.S, dollar or gold. To ensure further stability, the limits within which currency rates were allowed to fluctuate were widened from 1 per cent to 2� per cent on either side of parity. This wider band should, theoretically, give greater flexibility to governments intending to defend their central rates against speculation.”
“Mr Speaker, Sir, I beg to move, That Parliament approves the financial policy of the Government for the financial year 1st April, 1972 to 31st March, 1973. Last year, when I presented the Budget for the financial year 1971-72, 1 tried to assess the probability that the high growth rate of 15 per cent for the Singapore economy as measured by the Gross Domestic Product (or G.D.P.) in the preceding years could be sustained in 1972. I was fairly confident that the general policies we had adopted, including our emphasis on the major growth sectors including export-oriented manufacturing industries, were basically correct for rapid economic growth but warned against possible adverse factors which might upset our carefully laid plans. Preliminary figures show that, in the event, with a 14 per cent G.D.P, increase, we did not quite attain the 15 per cent growth target, although the outcome of the last year's working must be considered highly satisfactory. With the momentum generated during the preceding year, the economy initially moved forward rapidly but was subsequently slowed down by the instability caused by the international monetary crises which occurred in the latter part of 1971. Survey of International Economic Events That year will probably go down in the annals of economic and financial history as a turning point for the world monetary system. For the first time since it established its complete dominance after the Second World War, the strength of the U.S. Dollar was called seriously into question. At first, it was suggested that the U.S, should favour a policy of "benign neglect" of the dollar's weakness. This casual attitude soon disappeared.”
“Sir, I beg to move, That this Parliament pursuant to section 7 of the Civil List and Pension Act (Chapter 52) resolves that the Schedule to the said Act be varied by deleting the figures "$10,000", "$390,000" and "$84,000" appearing in the second column thereof and substituting therefor the figures "$15,000", `S508,620" and "$108,680" respectively. The amount of provision approved under the Civil List is insufficient to meet the increasing expenses of the President resulting from the take-over of Command House, increasing expenses of the Household on public utility services, telephone rentals, printing, stores and maintenance of Istana Domain, and the additional expenditure in hosting of functions. It is, therefore, necessary to augment the provision for "Entertainment Expenses" from $10,000 to $15,000; the provision for "Salaries of Personal Staff" from $390,000 to $508,620; and the provision for "Expenses of Household" from X84,000 to $108,680. Sir, I beg to move. Question put, and agreed to. Resolved, That this Parliament pursuant to section 7 of the Civil List and Pension Act (Chapter 52) resolves that the Schedule to the said Act be varied by deleting the figures "$10,,000", "$390,000" and "$84,000" appearing in the second column thereof and substituting therefor the figures "$15,000", "S508,620" and "$108,680" respectively. ANNUAL BUDGET STATEMENT 3.35 p.m.”
“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 to a sum not exceeding twelve million five hundred thousand 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 150 per cent. Singapore's subscription to the Bank is at present 500 shares, equivalent to US$5 million. Under the proposed increase, Singapore's subscription will be increased by a maximum of 750 shares, equivalent to US$7.5 million. Singapore is a large borrower of the Bank and has obtained US$73.68 million in loans from the Bank to-date. The Republic, therefore, has benefited from its membership in the Asian Development Bank and, it is envisaged, will continue to borrow from the Asian Development Bank to finance its future economic development plans. Parliament is requested to authorise the Government to increase the total subscription of Singapore to the authorised capital stock of the Asian Development Bank to a sum not exceeding US$12,500,000. Sir, I beg to move. Question 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 twelve million five hundred thousand United States dollars. CIVIL LIST”
“Mr Speaker, Sir, I beg to move, That this Parliament, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72) resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore three thousand million dollars. Sir, on the 10th July, 1968, Parliament resolved, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72), that the Minister be authorised to borrow by the issue of Treasury Bills in the Republic a sum not exceeding $1,000 million in amount. The demand for Treasury Bills has been increasing rapidly over the last few months, and the present limit of $1,000 million is likely soon to be insufficient. There is apparently a large quantity of surplus funds which arc available for investment for short periods. It is also essential that in our efforts to make Singapore more of an international financial centre, banks, as well as other financial institutions, including Government statutory bodies, should be provided with a secure short-term investment outlet for such funds. The authority of Parliament is, therefore, requested to enable the Government to issue Treasury Bills up to an amount not exceeding $3,000 million Sir, I beg to move. Question put, and agreed to. Resolved, That this Parliament, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72), resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore three thousand million dollars. SUBSCRIPTION TO ASIAN DEVELOPMENT BANK 3.30 p.m.”
“COMMERCIAL AND INDUSTRIAL SECURITY CORPORATION BILL "to establish the Commercial and Industrial Security Corporation and for purposes connected therewith, and to amend the Police Force Act (Chapter 78 of the Revised Edition)", presented by the Minister for Home Affairs (Prof. Wong Lin Ken); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. DEPARTMENTAL TITLES 3.21 p.m.”
“Mr Speaker, Sir, beg to move, "That the Bill be now read a Second time." Mr Speaker, Sir, the financial year of the Economic Development Board -under the law is the calendar year. In 1969, however, when the Government changed its financial year from the calendar year to 1st April - 31st March, the Board did likewise because it is wholly dependent on Government funds for its operation, and adopting a similar accounting system was both practical and convenient for purposes of control. It is necessary now to make provision through clause 3 of the Eco. nomic Development Board (Amendment) Bill, 1972, to enable the Board to adopt as its financial year a period of 12 months ending on the 31st day `of March in each year and to prepare its accounts accordingly. There is a transitional provision for the Board's financial year in 1969 to be 15 months commencing on the 1st day of January, 1969, and ending on the 31st day of March, 1970. Following the change in the financial year, the submission of the Board's Annual Report will have to he-amended accordingly, and this is being provided for in clause 4 of the Bill. The opportunity is also being taken to incorporate a provision in clause 2. -for the appointment of the Chairman of the Economic Development Board to be either full-time or part-time, since at -present there is provision only for a full-time officer. This will provide for greater flexibility in appointment. 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; reported without amendment; read a Third time and passed.”
“Sir, I beg to move, In page 27, line 14, after "disposal", to insert "of". This is an obvious error of omission. Amendment agreed to. Clause 61, as amended, ordered to stand part of the Bill. Clause 62 ordered to stand part of the Bill. Clause 63 -”
“Sir, I beg to move, In page 25, line 21, to leave out "is" and insert "being". This is just a grammatical error. Amendment agreed to. Clause 56, as amended, ordered to stand part of the Bill. Clauses 57 to 60 inclusive ordered to stand part of the Bill. Clause 61 -”
“It has also been suggested that the agreement between the chit fund company and its subscribers should be in several languages. There is no reason why chit fund operators should not use different languages in explaining the operation of the chit fund to their subscribers. I am sure that those with business sense will find it useful. It would be advantageous to have explanations in different languages. But even in conveyancing of wills and property and so on, the English language is used and perhaps it is convenient that there should be only one legal and official version of the chit fund agreement. The same Member has made a number of suggestions which I think will be very useful, and I will certainly consider them when this Bill becomes law. I think I have covered most of the points made by Members. 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 N. Govindasamy in the Chair] 6.46 p.m.”
“The Member for Jalan Kayu has suggested that there should be a graduated scale from $100,000 to $1 million, depending on the size of the chit fund operations. In fact, there is already some basis for varying requirements. Apart from the $200,000 deposit, there are provisions for a limitation in the amount of the operations and for further security to be given to the Commissioner. We have not put in any specific sum in the Bill, but this will be determined in the light of experience. The Member has also suggested that we require a team of inspectors and hopes that they will be provided to administer the Act. I can assure him that, as we have legislated for administration of chit funds, it is our intention that the Monetary Authority of Singapore, whom I have said will be asked to administer the Act, will be furnished with the necessary inspectorate to administer it. The Member has also pointed out that there is no provision for chit fund companies to invest compulsorily. We have suggested that part of their deposits should be invested in local assets. The Member for Anson also referred to the deposit of $200,000. I have already answered this earlier. He thought the Act would help the big operators but would weigh heavily against the small operators and suggested $50,000 as the minimum deposit. He also suggested that perhaps the licences should be issued only to Singaporeans. In issuing licenses, we will give some weight to the character of the applicant, and if he is obviously not permanently attached to Singapore, it is possible to provide in the licence that certain conditions should be fulfilled. This is a matter which we will consider as we go along in the administration of the Act.”
“I am pleased to hear the views of Members on the Chit Funds Bill. The subject matter is one which has created a lot of interest and has highlighted the difficulties which the Ministry of Finance has been faced with. The reason why it has taken some time to prepare this Bill is that we were not quite sure whether chit fund companies should be legislated against altogether or to be legislated for in the manner in which we have done so. The comments which we have heard from Members show the variety of opinions on the: operation of chit funds, ranging from the suggestion that perhaps the capital requirements are not sufficient to the suggestion that we should allow tontine or hwei to operate because it is necessary for easy capital to be obtained in the rural areas. Our problem in devising the Bill was to fix a minimum sum which we thought would safeguard the interest of subscribers to the hwei or tontine or kutu or chit fund. Finally, we fixed $200,000 as the minimum capital requirement. This is as much a matter of judgment as any other sum. We did in fact consider $50,000 as has been suggested by one of the Members. We also considered whether we should not legislate on the operation of chit funds at all. Certain countries have decided that perhaps it is best not to legislate at all. The present law regards the tontine as illegal and the number of people who have absconded with the pool from very naive and innocent subscribers is quite well known to all Members. Finally we decided on the form in which this Bill was to be drafted. While I cannot claim that this is a perfect Bill, it has at least devised a scheme which I think is workable and which we will be prepared to revise in the light of future experience.”
“I wish to emphasize that due care and diligence should be exercised by persons managing chit funds, as the money collected by them is held in trust for the benefit of members. This is provided under clause 38 of the Bill, which stipulates that chit fund companies shall be liable to members for the contributions made by members. I am confident that with the passing of this Act, there will be sufficient protection to members participating in chit funds. A summary of other provisions of the proposed legislation can be found in the explanatory statement attached to the Chit Funds Bill. Sir, I beg to move. Question proposed. 6.20 p.m.”
“It is envisaged that the functions of the Commissioner will be taken on by the Monetary Authority of Singapore. Chit fund operators will be required to apply for licences, and clause 4 of the Bill provides for licences to be issued to public companies only. II. Security of deposits In order to safeguard the interest of chit fund members, chit fund companies will be required to have a minimum paid-up capital of $200,000, a proportion of which will be required to be invested in approved assets. Furthermore, under clause 21 of the Bill, it is required that an additional security will have to be deposited with the Commissioner based on the chit fund amount. As an additional safeguard, the total amount of business that a chit fund company can transact in relation to its paid-up capital will also be regulated. This is contained in clause 42. These requirements are considered necessary so that the chit fund companies not only will have sufficient working funds but also will be committed to a very large extent in ensuring that their business is properly and effectively run and managed. While appreciating that some companies will have difficulties in meeting the capital requirements prescribed, the protection and safeguard which these provide cannot be disputed. Clause 62 allows for an initial transitional period of some six months before compliance with the Act, but if circumstances warrant, individual extensions will be considered. Ultimately, however, it is our objective to see that stronger financial units are evolved. Companies that may be adversely affected by these capital requirements would be well advised either to increase their capital or consider mergers and amalgamations if they wish to remain in business.”
“Sir, I beg to move, "That the Bill be now read a Second time." Although the first chit fund company was established in Singapore as early as 1964, chit funds have only established their popularity within the last few years. At present, in addition to the 29 companies officially registered with the Registrar of Companies as operating chit fund business, there are more than a hundred unofficial chit fund companies in Singapore. The chit fund is very similar to hwei and kutu which are familiar to the Chinese and Indian communities respectively. In brief, a chit fund operates in the following manner. Each chit fund member contributes a fixed sum of money for a number of fixed periods - per week or month, as the case may be. The total contribution to the chit fund amount per period will then be pooled and auctioned among members. The member who offers the highest interest will be awarded the pool. The amount to he received by the successful bidder is the total pool less: (a) a 5 per cent collection charge, usually levied by the chit fund company, and (b) the interest offered by the successful bidder. A successful bidder is precluded from making a bid in subsequent auctions but he must continue making his periodic payments. With the rapid proliferation of chit fund operators who collect substantial sums of money from the public, it is now necessary to bring in legislation to control and regulate chit funds. The Bill before the House is based on Ceylonese legislation with modifications to suit our local conditions. The main features of the Bill are:- I.Control and licensing A Commissioner of Chit Funds will be appointed, under clause 3, to administer the law and to control the activities of chit funds.”
“The opportunity is also being taken to make two minor phraseological amendments to section 10 of the Act for the sake of clarity. The amending Bill, when passed, is to be made retroactive from 1st July, 1969, which is the date on which the principal Act came into operation. This is to ensure that all benefits conferred by the amending Act may be enjoyed from the operative date of the principal Act. 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; reported without amendment; read a Third time and passed. CHIT FUNDS BILL Order for Second Reading read. 6.11 p.m.”
“The second amendment seeks to redefine the term "salary", so that even though the holder of the post of Speaker may not for any period be an elected Member of Parliament, his salary would still be taken to earn pension and gratuity. Hence, a new subsection (2) is added to section 2 of the principal Act. The third amendment is the inclusion of a new subsection (3) to section 2 of the principal Act, which will provide for payment of full pension or benefit to a Member of Parliament who voluntarily refrains from receiving the whole or part of the salary that is due to him. As the law now stands, a pension is calculated on the basis of the salary actually drawn at the time of retirement. Members will realise that the operation of the present law will be such that if a Member of Parliament voluntarily refrains from receiving the whole or part of his salary due to him, he will automatically suffer a second penalty when his pension eventually comes to be calculated at the time of his retirement. The amendment, therefore, seeks to ensure his entitlement to full pension. The passing of this amendment will avoid an act of sacrifice being automatically followed by another. The fourth amendment to the Act provides that the salary payable to a Political Secretary from the time he becomes a Member of Parliament will be taken into account when calculating the amount of Parliamentary pension eventually payable to him. This will put the Political Secretary in the same position as Parliamentary Secretaries, Ministers of State and Ministers, whose salaries in their respective capacities are similarly taken into account. As the law stands, a Political Secretary's pension will be based only on the allowance payable to him as a Member of Parliament.”
“Sir, I beg to move, "That the Bill be now read a Second time." The Parliamentary Pensions Act was passed in this House and came into operation on 1st July, 1969. Subsequently in May 1970, an Amendment Act was passed which removed certain restrictions in the principal Act. As a result of representations made by some Members, it is now considered equitable to propose further amendments to the Act. Four principal amendments are being proposed in the present Bill. The first is the amendment to section 6 of the Act. As section 6 now stands, where a Member of Parliament is for any period entitled to a superannuation benefit under any provident fund or pension scheme outside the Act, the period of such contribution will only be taken into account in calculating the length of his qualifying service but not for the purpose of computing the quantum of the pension payable to him under the Act. It has been argued that this provision is inequitable and equal treatment should be accorded service in Parliament by all Members whatever their entitlements under any other scheme. It has been further argued that, as representatives of the people, much of the M.P.s' work has to be done outside the normal office hours of their other employment during week-ends, and even during their holidays which they sacrifice so as to be of maximum service to the community they serve. It has, therefore, been decided that section 6 of the Act should be amended to enable all Members of Parliament, regardless of their entitlement under any other superannuation scheme, to take into account all their Parliamentary service for calculating the amount of their pensions.”
“The setting up of the National Statistical Commission of Singapore will go a long way towards raising the level and volume of statistical work in the Republic so that the necessary up-to-date, reliable and comprehensive statistical intelligence is made available for proper evaluation of the economy and for economic and social planning on a sounder basis. The Commission will consist of a Chairman, a Deputy Chairman, and five other members, all of whom shall be appointed by the Minister. Members of the Commission will comprise representatives from Government departments, statutory authorities, institutions of higher learning, and private and commercial organisations which have a vested interest in or are professionally involved in the fields of statistics, research and associated activities. The Commission will be serviced by a small secretariat staff. To enable it to function effectively, the Commission will be given mandatory powers for ensuring that Government departments and statutory bodies comply with its recommendations while the final appellate authority will remain with the Minister. The expenses of the Commission will be met from Government grants and its budget will be subject to the approval of the Minister. A fund will be established into which all monies of the Commission shall be paid. It is desirable to establish the National Statistical Commission of Singapore as soon as possible so that the Commission can commence to perform its important functions. Question proposed. 5.58 p.m.”
“This central agency will also act as the channel through which all statistical inquiries between overseas agencies and the Republic will be processed. Furthermore, the central agency is expected to provide expert advice on the collection, publication and utilisation of statistics generated by all these statistical wings in the Government and statutory bodies, especially to those not provided with statistical staff and facilities. Apart from building up a central statistical archive-cum-library, the central agency will be responsible for co-ordinating the in-service training of statistical personnel in Government and statutory bodies at primary, intermediate and tertiary levels in order to infuse a greater sense of professionalism in their work. It is therefore proposed to set up the National Statistical Commission of Singapore which will be assigned the responsibility of carrying out the aforementioned functions, as recommended by the Statistics Commission of Inquiry. The Commission will consider any matter referred to it by any Government department, statutory body or private organisation if the matter is related to its terms of reference, and it will consider and report to the Minister on any matter within its terms of reference. Additionally, the Commission will, on its own initiative or if directed generally or specifically by the Minister, conduct such studies and inquiries as may be necessary in respect of any matter related to the advancement of statistics and the statistical system of the Republic. The Commission may form ad hoc or permanent expert committees or working groups to consider specific fields of interest relating to statistics.”
“Mr Govindasamy. Sir, I beg to move, "That the Bill be now read a Second time." The National Statistical Commission of Singapore Bill, 1971, seeks to establish the National Statistical Commission of Singapore which will be charged with the responsibilities of co-ordinating and promoting statistical activities in the public sector, developing statistical archives and giving expert advice on all matters relating to statistical compilation and utilisation. Members will recall that a Commission of Inquiry on Statistical Activities in Singapore was appointed on 23rd May, 1968, to review and recommend improvements to the existing Government machinery for the collection and compilation of statistics. The Commission of Inquiry submitted its Report in July 1969 and recommended, among other things, the development of a decentralised statistical system under which a research and statistics section will be set up in each of the four Ministries of Labour, Health, Education and National Development. The implementation of this decentralised system will enable the Ministries to develop their own special statistics and the Department of Statistics to concentrate more on national statistics, especially population, births and deaths, external trade, balance of payments and national income. It is recognised, however, that within this decentralised statistical system there needs to be a central agency to co-ordinate and promote the statistical activities of the Department of Statistics, the research and statistics sections, and the statistical wings of other Ministries. It is also logical, and indeed essential, that this co-ordination and promotional work should be extended to cover the statistical activities of the various statutory bodies.”
“NATIONAL STATISTICAL COMMISSION OF SINGAPORE BILL Order for Second Reading read. 5.49 p.m.”
“Mr Govindasamy, Sir, I beg to move, "That the Bill be now read a Second time." The Pensions Act provides, inter alia, that an officer may be retired in the public interest, or in special circumstances, after having completed 15 years' service. At present, however, it is mandatory to suspend the payment of pension to an officer retiring under either of these two sets of circumstances until he has attained the age of 50 years. The proposed amendment seeks to remove this mandatory suspension of pension till the attainment of the age of 50 years. Instead, a discretion will be conferred on the President whether or not to suspend payment of pension. Where it is decided for good reasons to suspend the pension, however, it shall not be for a period longer than that taken for the officer to attain the age of 45 years, if he is normally entitled to retire at that age. If the officer is not entitled to retire at the age of 45 years, the period of suspension of pension shall not be longer than the time taken for him to attain the age of 50 years. In the case of an officer who becomes incapacitated - such that he is incapable of continuing in any employment during the period when his pension is being suspended, then his pension may be restored with effect from the date he is deemed to be so incapacitated. Similarly, the provision for payment of a gratuity to the dependants or legal personal representatives of an officer who dies during the period his pension is being suspended is also safeguarded. 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.”
“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. REARRANGEMENT OF ORDER OF BUSINESS Resolved, "That, under Standing Order 10 (2), a motion for the election of a person to perform the functions of the Speaker be taken immediately before item 1 of public business on the Order Paper." - [Mr E. W. Barker]. ELECTION OF MR N. GOVINDASAMY TO PERFORM FUNCTIONS OF SPEAKER”
“Mr Govindasamy, Sir, I beg to move, "That the Bill be now read a Second time." Sir, under section 17 of the Customs Act a special tax is levied on diesel-engine vehicles operating in the Republic. There have been several instances in the past where owners of diesel-engine vehicles have failed to pay their taxes promptly and have allowed such taxes to fall into arrears. Sir, the object of the present Bill is to empower the Registrar of Vehicles to recover arrears of the special tax payable on diesel-engine vehicles by the seizure and sale of such vehicles. This amendment is required because, as the law now stands, only goods of a perishable nature or any animal or bird seized under the provisions of the Customs Act may be sold forthwith and the proceeds of the sale held to abide the result of any claim. In addition, the present amendment also provides that the proceeds from the disposal of any seized vehicle may be used to offset against any licence fees and other taxes due and owing under any other written law in respect of the seized vehicle, and the balance thereof, if any, will be refunded to the owner. Sir, the amendment also provides that where the vehicle is a public service vehicle, the Registrar of Vehicles may use, or permit any other persons to use, the vehicle for the purpose of maintaining an essential public transport service, upon such terms and conditions as the Registrar may determine until such time as the vehicle can be sold. This provision is necessary to ensure minimum disruption to the public transport system should any difficulty arise which may result in the delay of the sale of the vehicle. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.”
“Mr Govindasamy, Sir, I beg to introduce a Bill intituled "An Act to amend the Customs Act (Chapter 133 of the 1970 Revised Edition)". Bill read the First time. Printed copies of the Bill distributed to Members. Second Reading”
“The Ministry of Home Affairs has, however, made strong representation to retain some of these allowances and convert others to incremental credits. My Ministry has accepted this. Hence, adjustments to the salary conversions' proposed by the Report will be necessary. Pending implementation of the new salary scales on 1st April next year and resolution of the method of conversion between the Ministries of Home Affairs and Finance, it has been decided that the Police Junior Officers will be given an interim increase. From next month, that is, from the 1st of November, an interim allowance of 10 per cent of their present total emoluments, excluding housing and public utility allowances, will be paid to all serving Junior Officers on their present salaries. This means a 10 per cent increase in take-home pay, salary and special post and education allowances. This interim 10 per cent increase will be taken account of when converting these officers to the new salary scales on 1st April next year. Payment of this interim increase is expected to cost Government about $2 million a year on the basis of the present strength of the Police Force. The approval in principle of the new salary scales will enable the Ministry of Home Affairs to attract even better qualified Police Junior Officers in future recruitment exercises, especially now that from the next intake of recruits payment for board and lodging will be waived during their period of training at the Police Academy. However, if any constable resigns within two years of his commencement of service, he will have to refund this cost. This is one of the recommendations of the Report which has been accepted.”
“Mr Speaker, Sir, there has been some speculation about revision of salaries and terms and conditions of service for the Police Junior Officers arising from the Lee Soo Ann Report. I should like to state that the Lee Soo Ann Committee's recommendations with regard to the structure and salary scales for the Police Junior Officers have been accepted in principle by the Government, and will be implemented in the new fiscal year on 1stX April, 1972. Under the new structure, there will be three ranks of Constables, Sergeants and Assistant Inspectors to replace the present six ranks. The new ranks of Constables and Sergeants will be accorded Division III status, while the new rank of Assistant Inspectors will be in Division II, thereby being eligible' for higher rates of vacation leave and other benefits in their respective enhanced status. The new salary scales to be implemented on 1st April, 1972, will be - Constable $170 x l5A - 215/285 x 20A - 425/445 x 20A - 625; Sergeant $385 x 20A - 505/555 x 30A - 765; Assistant Inspector $600 x 30A - 690/750 x 35A - 925. With these improved salary scales,. Police Junior Officers will be expected to carry out greater responsibilities commensurate with their new status. In the interval between now and 1st April next year, a suitable method of' conversion of serving officers from the' existing salary scales to the new structure will be worked out. Agreement between my Ministry and the Ministry of Home Affairs on the method of conversion has not yet been reached. It is not possible to accept the conversions recommended by the Lee Soo Ann Committee, partly because those conversions were based on the assumption that all allowances will be abolished.”
“In Singapore it is probable that the London Panel type o approach modified to take into account local conditions may be more appropriate. This must be examined in relation to the Companies Act and the Securities Industries Act which are patterned on Australian legislation. I am advised that the Australian Companies Act has been recently amended to deal with takeovers in much greater detail, and these amendments might prove of help in drafting similar regulations for Singapore. It is proposed that the Ministry of Finance and the Monetary Authority should, in conjunction with the Attorney-General, examine whether further amendments to the Companies Act to deal with take-overs are necessary or desirable, and whether a London Panel type of institution can play a role in developing an acceptable code of conduct and standards of behaviour in take-overs and mergers. In the final analysis, of course, the best protection for Singapore companies and shareholders, as for companies and shareholders elsewhere, is to ensure the efficiency and good management of their companies. Mr Speaker, Sir,I beg to support the motion. 3.35 p.m.”
“Our present policy is not to discriminate against foreign interests buying into Singapore companies generally, and in so far as Sterling area residents are concerned, there are no exchange controls on such transactions. However, it might now be opportune to prepare for an increase in take-over activities and also consider whether certain categories of Singapore companies should be kept under Singapore control, for example, banks and insurance companies. It is not suggested that foreign interests be totally, excluded in respect of such companies. On the contrary, minority foreign equity participation might even be encouraged if it increases the efficiency and competitiveness of the local company. Nevertheless, control by some system of vetting foreign participation in certain designated sectors of commerce and industry may be necessary and desirable. Perhaps also some equivalent to the London Panel on Take-overs and Mergers" is required This Panel has drawn up a set of rules and established a code of behaviour which all parties to a take-over are expected to observe. Essentially the Code drawn up by the London Panel seeks to ensure early disclosure of details of a bid so that all shareholders are placed on an equal footing as far as possible, and to ensure that the majority shareholders do not exploit their position at the expense of the minority. The other system of regulation is that established by the American Securities Exchange Commission. However, their approach is more cumbersome and a number of countries. France. Switzerland and Japan, have been examining the London Panel's mode of operation in preference to the American system.”
“Mr Speaker. Sir, in supporting the motion for the address of thanks to the President's speech. I think it may be of general interest to Members for me to make a somewhat more detailed statement than is contained in the President's speech about the recent take-over of Haw Par Brothers International Ltd, by Slater, Walker Securities Ltd. The reaction to this take-over indicates that there is sonic public apprehension in regard to two matters. One is the extent to which foreign interests should he allowed to take over and control Singapore companies. The other is the desirability of certain practices followed or adopted on take-overs which, though not illegal, would constitute unacceptable behaviour in an international financial centre. In order that discussion on this subject may proceed intelligently, it may he of advantage if a report which has been compiled by Ministry of Finance officials is made available to Members. I have therefore handed copies of this report* (*Annex, cols. 137-142.) to the Clerk who will make it available to Members. [Copies of report distributed to hon. Members.] Appendix 1 - SLATER, WALKER'S TAKE-OVER OF HAW PAR(Cols 137 - 140) In regard to any supervision or regulation of take-overs, my Ministry is faced , with a number of conflicting considerations: (a) It is desirable that inefficient companies should be taken over by more competent companies. (b) There should not be unnecessary interference in takeovers where companies willingly merge. (c) Consolidation by way of merging into larger economic units bring economies of scale. (d) The fear that there may be a concentration of economic power in the hands of one group giving rise to monopoly or near monopoly conditions.”
“Mr Speaker. Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed+. + President's assent, see Appendix at cols. 1459-60 ADJOURNMENT SINE DIE 2.45 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to provide statutory authority in accordance with clause 2 of Article 85 and clause 2 of Article 87 of the Constitution of Singapore for additional provisions for expenditure in excess of the provisions for expenditure authorised by the Supply Act. 1970. These additional sums have been scheduled as Supplementary Estimates which have been considered and approved by the House as Cmd. Paper 5 of 1971. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time." Question put, and agreed to. Bill accordingly read a Third time and passed*. * President's assent, see Appendix at cols. 1459-60. SUPPLEMENTARY SUPPLY BILL Order for Second and Third Readings read. 2.43 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Main Estimates of Revenue and Expenditure for the financial year 1st April, 1971, to 31st March, 1972, have been considered and approved by the House as Cmd. Paper No. 3 of 1971. Under section 85 of the Constitution of Singapore, heads of expenditure other than statutory expenditure to be met from the Consolidated Fund have to be included in a Bill to be known as the Supply Bill. The purpose of such a Bill is to provide for the issue from the Consolidated Fund of the sums necessary to meet the expenditure and the appropriation of these sums for the purposes specified therein. The Supply Bill before Members is to give legislative approval for the issue of funds from the Consolidated Fund to meet the sums of expenditure for the financial year 1st April. 1971, to 31st March, 1972. In the Schedule to the Bill are shown the various heads of expenditure and the sums that may be incurred in respect of each head. These have been approved by the House in the Estimates of Expenditure for the financial year 1st April, 1971, to 31st March, 1972, and appear in pages 51 and 52 of Cmd. Paper 3 of 1971. Once the Supply Bill is approved, I will be empowered to issue warrants authorising expenditure up to the amount under each head as shown in the Bill to be paid out from the Consolidated Fund. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“The statutory authorities in most cases own only public utilities. The Singapore Telephone Board, for example, which is a statutory authority, owns some shares in a telephone company to manufacture telephone instruments. As regards selling these shares to private holders, this is a matter really for the Singapore Telephone Board.”
“For example, in the case of Jurong Shipyard, we thought that in order to bring in local expertise in addition to what we already have from the Japanese partner, we would sell some of the equity to various local entrepreneurs who would also take part in the management or in the direction of the firm, so that although we started off with 49 per cent, I believe our percentage holding of Jurong Shipyard is now 40 per cent. In other cases where the companies have gone public, like the National Iron and Steel Mills, there is no reason why we cannot sell our shares very readily. But in this instance the shares are already mostly in private hands. In other companies like Keppel Shipyard and Sembawang Shipyard, there may be some difficulties. For example, in the case of Sembawang Shipyard, we have undertaken certain obligations in respect of repairs of Commonwealth naval vessels. But we will be prepared from time to time to consider what shareholdings we can dispose of.”
“The Economic Development Board, for example, among its various activities, helps potential entrepreneurs to acquire the necessary technology by way of joint ventures in collaboration with overseas firms. The Development Bank of Singapore is also assisting by giving loans and assisting in equity and finding local partners for overseas firms. As regards assistance in management, the Government has various centres. The National Productivity Centre is one which helps in various management fields. Of course, the Government is also associated with the Institute of Management and the Universities in their efforts to teach management techniques. As far as providing management techniques is concerned, we have also the efforts of organisations like the International Executive Service Corps and the United Nations Organisation. In helping industries with marketing, we have the Exports Promotion Centre. There is also the Export Promotion Advisory Committee. There is INTRAXCO (International Trading Company) which does actual export promotion work. And there are, of course, Government organisations like the Trade Division and our overseas embassies and high commissions which play advisory roles. Manufacturers' associations and the Chambers of Commerce also help in preparations for trade fairs. I think the Member for Whampoa is familiar with the "Jetro Fair" in Japan to which he will be leading a mission in April. The last question the Member asked was whether we should not sell off some of the equity to private holders. This is something which we will consider. In fact, in certain cases we have already done so.”
“The division is not always very apparent, for example, whether the Singapore Telephone Board and the Public Utilities Board are public utilities or industrial enterprises. In the United States, the Public Utilities Board would be regarded as an industrial enterprise. Assuming only industrial enterprises, I think the Government is participating in some 30 enterprises and in a few others which are related to tourism, e.g., the Instant Asia Cultural Show (Private) Limited in which we also participate in order to help tourism. Thirty enterprises may be considered industrial, and the total amount of Government equity involved in all these enterprises is approximately $121 million. The equity varies in amount from $2, where we just form a company and two shares are issued to the two subscribing members, to roughly $49 million. In percentage terms, we have anything up to 100 per cent participation. The performance of most of these industries has so far been satisfactory. Some of them are very satisfactory and there are others which we designate "sick companies" and we keep a watch over them. There has been only one failure and mention has been made about this in previous debates. This is a failure as far as the project is concerned, but it was not a total loss and we sold the Government share in the enterprise. This is related to a bicycle factory which is no longer in production and which has been converted to some other very good use in which the tool-room facilities were a major reason for the entrepreneur taking over the enterprise. On plans to help local industries, I think we have various organisations of which the Member is already aware.”
“Yes, 10 minutes. The Government is participating in roughly 30 industrial enterprises. I did not quite get the Member for Whampoa. Did he mean industrial enterprises or enterprises of every kind, because there are enterprises like the Singapore Telephone Board?”
“Mr Speaker, Sir, the Member for Whampoa is asking for quite a lot of information and I do not think I shall be able to supply it in just 15 minutes.”
“The Member's question is, what exactly is Chartered Industries of Singapore Limited doing? I think the evidence of its activities is quite clear in some respects, in other respects we would like to keep the production confidential to some extent. I would only say that I do not think that there is any need for Members to doubt the viability of this particular industry.”
“As I have said, it varies very considerably. Some shipping lines do not consider depreciation necessary because the ships are going up in value all the time. As far as the accounts of Neptune Orient Lines are concerned, we show a slight loss. That is because the depreciation, if I am correct, is for 17 years, which is very conservative. The depreciation is for either 15 or 17 years. We thought it better that we should take a conservative view of this matter and depreciate the ships as rapidly as we can. On the question of the Jurong Bird Park, we have appointed a company with a board of directors. The suggestion for lower fees can be put before the board of directors, who of course, may be Government's nominees. However, they have also a duty to see that any company in which they have been appointed as directors should operate on a viable basis. I am happy to say that up to now, the attendance at the Jurong Bird Park has been very good and we should be able to cover all costs, including depreciation, if we continue to have visitors at the same rate as we are having now. At this particular stage the present fees should be maintained because they seem to be popular enough. They are apparently a going rate and satisfy most people, because the attendance has not fallen off very considerably. There are concession rates for school children. I would suggest a group concession rate for those people who would like to visit the Bird Park but who find the normal fees too high.”
“Mr Speaker, Sir, as I have said, I am not responsible for the day-to-day operations of the Development Bank of Singapore. Therefore, I will not be able to answer the question. I would suggest that these are matters which the shareholders can place before the Board of Directors at the annual general meeting of the Development Bank of Singapore. If I may now answer the other question on Neptune Orient Lines. This is a question of accounting - how much depreciation is allowed for Neptune Orient Lines, that is, whether the ships should be depreciated over a period of 15, 17, 20 or 25 years. The accounts of a shipping line are rather complex, but very interesting. In the case of shipping lines in the United Kingdom, apparently they can depreciate the ships to any extent they please, in the case of Neptune Orient Lines, we have a choice of whether we should depreciate the ships over 15, 17, 20 or 25 years. Therefore, the question whether or not we make a profit depends on the amount of depreciation.”
“I would like to say that in matters of detail where the Development Bank of Singapore makes loans, I have no responsibility for its operations. I, of course, have a responsibility in view of the Government's investment in D.B.S. to see that it is a viable operation, and that it is not running into difficulties. Beyond that, I would consider that any details concerning D.B.S. operations are not really a matter for me to answer. 7.15 p.m.”
“As there is not much time, I shall be very brief. The Jurong Bird Park (Pte) Ltd. will require $1 million for further development. Singapore Aquarama, which will be the marineland type of development, will require $1 million for further expansion. Primary Industries Enterprise Ltd., which is to take over the poultry vaccine production functions of the Primary Production Department, will require $100,000. As for the Comfort Co-operative, $4 million is provided for loans to purchase taxis and buses.”
“The loan for the purchase of imported materials, equipment and supplies for building vessels will be $25 million. Out of this, $21.7 million will come from the Exim Bank of Japan, and the total loan of $25 million is repayable in 20 half-yearly instalments over a period of 10 years. Then there is a loan for the deferred portion of the selling price of each vessel. This loan will be given under a Development Bank of Singapore line of credit. A subsidy loan will also be given on the cash deficit of the company. Of this amount, I think $20.795 million will be required in 1971-72. A further sum has been provided for Chartered Industries of Singapore Ltd. This is a total of $7.75 million.”
“The intention is that this would be a joint venture. The ships themselves would cost a total of $30 million each, and each party to the joint venture would have to put up 7½ per cent as down-payment, i.e., $4 million. (5) An 85,000-deadweight-ton tanker, again in a joint venture. The ship will cost $20 million, and the down-payment from the Singapore side will be $3 million. (6) Neptune Orient Lines will also purchase one 18,000-dead-weight-ton ship for $1.5 million down-payment, out of a total cost of $10.5 million. (7) A further purchase is a super-tanker of 220,000 deadweight tons, costing $100 million. This is again a joint venture, and the down-payment from the Singapore side will be 7.5 per cent or $7.5 million. (8) A further purchase is a 35,000-deadweight-ton tanker for $20 million. This is a second-hand vessel. (9) Then a 150,000-ton ore/oil carrier at an estimated cost of $75 million, of which the down-payment for Neptune Orient Lines' share in this joint venture will be $2.8 million. (10) Two 3,000-deadweight-ton bulk carriers, for a down-payment of $1.6 million. The total cost of the ships will be $21 million. All this makes a total of $67.9 million. In the case of Jurong Shipbuilders, a loan of $20,795,500 is required. The loan consists of four parts. There is a loan for the construction of shipyard facilities, $21.45 million. This is mainly for the purchase of materials for the construction of shipyard facilities. Of this sum, $14.3 million will come from the Japanese grant of $25 million for financing part of this loan, which is repayable in 24 half-yearly equal instalments over a period of 12 years at an interest rate of four per cent. The interest rate will increase to 63 per cent from 1976.”
“Mr Speaker, Sir, the information given in the memorandum is, of course, merely a summary. The sums which have been provided are in respect of projects which will be examined by the Development Bank of Singapore. The position about the Development Bank of Singapore is that sums are provided for the Bank, out of which they make loans to private industry. The lines of credit which have been mentioned in the memorandum have been provided partly for loans to industrial organisations and partly for real estate financing, and the various lines have different interest rates, depending upon the nature of financing. In the case of estate financing, the interest rate charged is different. It is eight per cent as against other lines which vary from five per cent for special projects to seven per cent. The drawings will depend upon the rate at which the loans are approved by the Development Bank of Singapore and when disbursements are required, so that the amount which is provided here depends really on the amount which is likely to be disbursed. For example, in 1970-71 the amount which was disbursed by the Development Bank of Singapore was $61 million, so that, allowing for the increase in activity which we expect as the projects get larger in size and scope, we think a provision of $96 million may be required. In the case of Neptune Orient Lines, the provision has been made in order that their expansion programme can be carried out. Purchase of the following vessels is contemplated in 197l-72: (1) One combination carrier at a total cost of $1.5 million. (2) One 8,000-deadweight-ton dry cargo ship for $6 million. (3) Two 12,000-ton cargo ships for $20 million. These are second-hand ships. (4) Two 26,000-deadweight-ton tankers for $4 million. This is merely a down-payment.”