Lee Boon Yang
Singapore
“6 The other guidelines are that there must be a post office sited within 5 km of every private residential estate and within 1 km of any commercial or industrial estate. MAID LEVY CONCESSION (Applications by the disabled) 32.”
“Madam, can I quickly respond to the point on assistive technology? Certainly this is an area of interest. We cannot say that we have the capability at this juncture but we will certainly look into what is possible and work with our ICT sector.”
“Nevertheless, if the spouse of the homemaker is working, he will be eligible for WIS if he satisfies the criteria. Husbands of homemakers are further eligible for tax relief.”
“Sir, I do not think it is quite correct to say that we always expect our own artists to perform for free or do public service. There are, of course, occasions where we do seek Singapore artists and arts companies to contribute to the national causes. For instance, when we went international for Singapore Season in China.”
“Ms Sylvia Lim asked the Minister for National Development (a) what checks does the Ministry or the National Environment Agency have in place to prevent mistaken payments to hawkers who cease operations due to upgrading works at hawker centers; (b) how did the mistaken payment of $18,000 to Mdm Lee Ah Muey come about; and (c) what will the…”
“While it was also true that initially the reaction or the response of the licensing authority was that foreigners should not participate in such an event at the Speakers' Corner - because there is already an existing prohibition against any foreigners taking part in any activities at the Speakers' Corner - subsequent assessment resulted i…”
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“If they are left alone and neglected by society, these undesirable influences may eventually prevail. Some of them would be led astray and could wander into crime. Merely taking enforcement action against such youths is not the answer to their problem. The Police have therefore decided to embark on a persuasive approach. The Police will organize social activities which are more attractive to them. These activities provide opportunities for building up friendly relations between the Police and our youth. The objective is to win over their trust, respect and support. Sir, in September 1985, during Police Week, the Police took the initiative to organize a Pop concert. It met with overwhelming support. Subsequently a series of youth oriented activities was launched in December 1985 and January 1986 to coincide with the long school vacation and the festive season. Disco was not the only activity included during this period. Other activities, such as visit to old folks' home, visit to homes for handicapped children, games, soccer matches, sepak takraw matches, cycling and picnicks were all part of this programme of activities for the youths. All the activities were organized with grassroots and community organizations support. The programme was carefully planned to cater to the diverse interest of youths. Besides providing entertainment and recreation, these activities also help to inculcate in these youths a commitment to the community and to people who are less well-off than them. Has the Police gone too far in organizing these activities? Is there not a possibility that discos can also lead to some adverse influence? Sir, the discos were the Police way of introducing themselves to the youths.”
“Sir, it is difficult to train sufficient numbers of officers for all the NPPs within a short period without affecting the quality of the service eventually. However, the Member for Jalan Kayu should not be too worried. All is not lost. Pending the implementation of the NPPs in Jalan Kayu Constituency, the Police Division at Paya Lebar Station will continue to see to the needs of the residents. Whatever problems that may arise, they will receive the best service from the officers at Paya Lebar Police Station. The Member's constituents can also seek the services and assistance of nearby NPPs in Cheng San and Chong Boon. Officers from Paya Lebar Police Station are also performing vertical policing in the Jalan Kayu Constituency's highrise blocks. Sir, I next turn to the Member for Clementi. He questioned the Police attempts to organize discos and other activities for the youths. Sir, this is not an instance of Government entering into private enterprise. Police are not organizing discos in competition with the many discos which have already established themselves. Sir, many of our youths have access to various recreational pursuits. However, there are always some who find it difficult to fit into any organized or structured activity. They have difficulty in adjusting to social environments. Instead they like to gather aimlessly in shopping centres, shopping malls, fast food outlets and even the void decks in our housing estates. These youths are not attracted to the usual type of activities which are more healthy and which would lead to a better character formation. Being young, exuberant and highly impressionable, they are often attracted by thrills and excitement. They are also vulnerable to a variety of influences, some of which are not at all that wholesome.”
“Regarding the Member for Leng Kee's point on the Neighbourhood Police Posts and the development programme of the NPPs, the overall plan is to implement a total of 91 NPPs by 1989, which is already a well-known fact. To date, 34 NPPs have been established in various constituencies. The eight NPPs in Toa Payoh Division have been in operation for over two years now. There are 12 NPPs in Jurong and Paya Lebar Divisions which have been in operation for a little over a year. Another 14 NPPs were introduced in December 1985 and January 1986, out of which 10 are located in Queenstown, three in Paya Lebar and one in Jurong. Over the next four years, the remaining 57 NPPs will be established at the rate of 14-15 per year. The reduction in established posts in the Police Department will not affect the schedule to provide all constituencies with NPPs by 1989. The Member for Jalan Kayu would like to know when will he get his NPP. The two NPPs projected for Jalan Kayu Constituency will be set up in 1989. It is not possible, Sir, to bring forward the date of implementation of these two NPPs because there are many constraints. Ideally, we should implement it immediately and build NPPs in all the Constituencies straightaway. Unfortunately, we face constraints in manpower. We have to recruit the officers. We have to train them. And they have to be specially trained in community relations. They have to be trained to have a higher level of interpersonal skills because, as community oriented Police officers, they will be in very close contact with the residents. They will be expected to be not just crime fighters but also friends in need to all the residents in the neighbourhood.”
“This would indicate that the public have accepted the Police as a person to turn to when they need advice on crime prevention and when they need assistance in reporting the occurrence of crime within their neighbourhood or any presence of suspicious characters that they have seen. Sir, the statistics on serious offences in a constituency with a Neighbourhood Police Post compare very favourably with those in which the NPP has yet to be established. In the Toa Payoh Division, the number of police reports increased by 45% during the first year of the NPP operation. In the second year of NPP, there was a further increase of another 6%. Due to the growing willingness of the public to report crime occurrences and the presence of suspicious characters in their neighbourhoods, the number of criminals apprehended increased by 466 cases in the second year of the Toa Payoh NPP. Sir, likewise in Paya Lebar and Jurong Divisions, the number of police reports which were received showed a significant increase during the period after establishment of the NPP. To further sustain this cooperation between the community and the Police, the Police have recently introduced a hot-line to provide members of the public with an additional channel to offer information to the Police. The Police hot-line was implemented on 31st January 1986. It is located at the Radio Division and is manned by experienced officers from Radio Division. Members of the public who are witnesses to crime or have information which can help in crime investigations are requested to call this hot-line. There will be Police officers available to take down the details and to act on the information supplied.”
“This scheme helps to enhance the Police effort to prevent crime such as housebreaking and other petty offences in our housing estates. Sir, in the commercial and industrial sector, the Police have been assisting tenants, shopkeepers, to form crime prevention committees. A total of 85 crime prevention committees have been formed during the past five years in various factories, shopping centres and other business premises. These crime prevention committees receive Police support. Police officers attend their meetings and regularly give advice on preventing crime in these premises. Special efforts have also been made to harness the support of school children in crime prevention. Crime prevention talks are given in schools and through various incentive schemes such as awarding of crime prevention badges and Neighbourhood Watch Scheme badges help to generate interest in crime prevention among the children. Students from various schools are invited to crime prevention exhibitions to give them a better knowledge of what measures to take to protect themselves and their properties. The National Crime Prevention Council is also actively supplementing the efforts of the Police in further promoting community oriented policing and to raise the general level of crime awareness among our people. All these measures taken by the Police have yielded positive results. For example, in Divisions where Neighbourhood Police Posts have been introduced, the number of reports lodged by the public increased substantially compared to those constituencies where Neighbourhood Police Posts have yet to be established.”
“Mr Speaker, Sir, I would like to begin on a subject which has a great importance and bearing on the future of our law enforcement and crime prevention policy. Sir, the Member for Jalan Kayu spoke about the measures that the Police are taking with regard to community oriented policing and whether these efforts have achieved results. In the past, crime was seen primarily as a Police problem. The notion has changed in recent years due to efforts and successes by the Police to actively involve the community in crime prevention. The Neighbourhood Police Post system was introduced in 1983. It has played a pivotal role in the Police effort to win over the community's trust and cooperation. The close interaction between the Police and community made possible by locating these Neighbourhood Police Posts (NPP) in the housing estates and by the wide range of services that are provided greatly facilitate Police efforts to build up better rapport with the people. The Police have also initiated the formation of 14 boys' clubs in various constituencies. These clubs foster a wide range of interesting and healthy activities for youths so that there is less likelihood of these youths being led astray by undesirable elements. Community based organizations such as the Residents' Committees, Citizens' Consultative Committees, Community Centre Management Committees and the Neighbourhood Watch Scheme are also cooperating with the Police in moving towards crime prevention. They provide a valuable framework within which the public can help to keep crime rates low and to detect and apprehend offenders. The Neighbourhood Watch Scheme (NWS) has been widely promoted in public and private housing estates with the help of volunteers and over 200 Residents' Committees.”
“Where further steps have to be taken in order to safeguard our position, that also will be done. I took it from this morning's remarks that the Member for Potong Pasir was not at all in favour of any of these actions and that he would much prefer us to bow deeply and apologize.”
“The Government supplied voluminous amounts of information and, having supplied it, we had to entertain a group of US officials to come to Singapore to examine our data to see whether we were lying. We had to hire a US lawyer to lobby for us, to argue our case, and to make sure that we completed the questionnaires according to US legal requirements. That cost us another US$50,000. The final result after eight months was that if there was any subsidy, it was minimal, and no countervailing duty would be imposed. In other words, we escaped. Whether we can continue to trade, whether we can continue to fend off such unwarranted assaults on our trading practices, is a matter yet to be seen, but it will not be easy. The Member for Alexandra raised the case of the problems we have had with Malaysia. I am aware of the cases which the Member for Alexandra mentioned, and the Government will be taking up the problems with Malaysia. We value our good relationships with our ASEAN partners, and we understand their desire to promote direct trade. But we cannot allow our interests to be hurt. In this respect, I do not take seriously the proposition from the Member for Potong Pasir that the correct approach to such problems is to humble ourselves, bow deeply and see to it that we offend nobody, so that people will be generous to us and we will get into no trouble whatsoever. I presume that that was the intention of the remarks made by the Member for Potong Pasir this morning. It is our job as the elected representatives of the people of Singapore to defend the interests of the people of Singapore. And where the interests have to be defended tenaciously, we will do so. Where we must fight for our rights, we will do so.”
“The subject was raised by the Member for Whampoa, who exhorted us to support GATT and other free trade agencies. And not only that, but to use our influence as best we can to support international free trade policy. We do this. We recognize that our influence is not large, because we are not a superpower like the United States, or a major trading and exporting country like Japan. But it is important to us, and we will develop whatever leverage, whatever influence we can to try and preserve an open trading environment, globally. In fact, this is the reason why when the Prime Minister spoke to a joint session of the US Con- gress, he chose the subject of protectionism. A hostile trading environment is there. I have explained what it is about. I have given some examples of cases where although we have not been guilty of unfair trading practices, we have had cases taken up against us and we have had to defend our interests expensively, but fortunately, often successfully. There is one specific example which concerns textiles, which I would like to go into now. It took place in August 1984, when the US textile and garment industries complained to the US Department of Commerce that Singapore garment exporters were competing unfairly. It would have hurt us substantially, because our exports of garments to the United States come to more than $400 million per year. We were innocent, of course. But to prove ourselves innocent took eight months. We needed officials from the Trade Development Board, from the Economic Development Board, from the Attorney-General's Chambers, and from the Ministry of Foreign Affairs, to coordinate the strategy, to develop a response, to rebut specific US allegations, and to prove our innocence.”
“The scope will now be extended to other services and other activities. For example, investments in tourism related projects, publishing services, educational services or medical services. Productive investments in all these areas will qualify for investment allowances. The experience in the United States has shown that when such investment allowances are given, a substantial amount of the allowances is claimed not for manufacturing, but for activities outside manufacturing. The scope for automation, for improving productivity in banking and other white-collar jobs, in service industries, is as large as it is in heavy capital intensive industries. We hope the same will be true in Singapore. Secondly, the procedures for applying for investment allowances will be simplified, and guidelines will be worked out, so that routine cases can be dealt with expeditiously. The EDB does not wish to be swamped with a million cases, each one of which needs to be evaluated in excruciating detail. It is in their interest, as it is in the interest of investors, that the procedures be as simple and as straightforward as possible. Thirdly, the EDB hopes that the volume of investment allowances granted will increase substantially. Last year, about 15% of new investments in manufacturing qualified for investment allowances. We hope that with the revised guidelines and procedures, this number will go up substantially, perhaps to 30%. How it works out depends on how enthusiastically investors respond to the scheme. The Gazette notifications and the specific details which are necessary to flesh out this scheme will be worked out within the next few weeks. Next, trade and particularly protectionism.”
“And the message is: the Government is committed to reducing costs in Singapore, is committed to establishing a good business environment in Singapore, is committed, with the support of the population, to providing a good long-run framework of people, of facilities, of infrastructure, and therefore Singapore is a good place to invest money. We have already spoken about Ministers and other officials going on investment promotion tours overseas. At the same time, the EDB will be strengthening its staff and its offices overseas,because we need to cover companies much more intensively. We can no longer wait for companies to come to look for us and say, "We want to come to Singapore. Tell us about it." We must go to the companies and say, "We think you ought to come to Singapore, because if you come, you will find that here is a place for you to do business. Come and see us." Therefore, EDB will be strengthening its presence overseas. But we do not only depend on overseas investments. Investments by domestic companies also matter. They are already here. They have existing operations which they ought to upgrade and expand. Equal emphasis must be given to companies which are alredy in Singapore. In this respect, I think the investment allowance scheme is especially relevant. As has been announced earlier by the First Deputy Prime Minister, the EDB's investment allowance scheme will be broadened, made more liberal, and made more easily accessible to a wider range of companies. The EDB has been working at this and I would like to announce some of its preliminary proposals. First of all, the scope will be widened. So far, investment allowances have only covered manufacturing and manufacturing related services, such as engineering services.”
“For a diploma course, the joint training institutes' cost is $7.50 per trainee per hour compared to the Polytechnic's cost of $4 to $6.80 per trainee per hour. Sir, owing to lack of time, I would now stop and let the Minister continue. BG Lee Hsien Loong: Mr Speaker, Sir, the discussion in the Committee of Supply on the MTI estimates has really been about the practicalities of putting into effect the economic development plan outlined in the Report of the Economic Committee. How do we get our investments going, how do we get our exports up, how do we protect our trade, what is the role of local businesses and, most important, how do we get our labour-management relations, our wage costs, in line? I would therefore like to deal with these issues within the framework of the Economic Committee's Report. The Member for Bukit Merah raised the question of investment promotion. Indeed, as I have explained, the key to recovery and to growth lies in getting new investments, new investments which will be able to generate new jobs, produce new products and go into new markets. The agency directly responsible for promoting investments is the EDB. The EDB will be promoting Singapore, not just as a manufacturing base for factories to set up here, but as an international total business centre, so that people can come here to set up their factories, establish their headquarters, manage their personnel, organize their funds, service their businesses overseas. A major component of EDB's message will be the Report of the Economic Committee, the New Directions of the Economy which the Government intends to follow consistently.”
“Sir, the Member for Whampoa also raised the question of cost effectiveness of the EDB joint industry training centres. In his usual eloquence, he has dropped a few gems of wisdom here and there which the Member for Potong Pasir hastily picked up. So the Member for Potong Pasir rose to the occasion and said, "There is something wrong with our training programmes. Why isn't there a better apprenticeship scheme?" He is implying that something is wrong with our efforts to train industrial workers' vocational skills. Sir, the EDB training centres and institutes are geared towards training of new skills required by the industries. They complement efforts by other training institutes like VITB and the Polytechnic to meet skilled manpower demand. The EDB has the advantage of a close working relationship with industries and can identify and anticipate new skills required by industries. For this reason, the Board has formed joint partnerships with MNCs, foreign governments and manufacturers to establish and operate these training centres and institutes. These include three training centres for craftsmen, four training institutes for technicians, technical middle management personnel and EDB professionals. And five training centres for specialized training in areas such as industrial automation, computer aided drafting, computer aided manufacturing. Expenditure and training costs are closely monitored. To date, some 5,000 students have graduated from the centres and institutions. Their cost of operation compares favourably with those of other training institutes in Singapore. For example, EDB's cost to train a trainee to the level of ITC course is about $3.60 per trainee per hour compared to the VITB's $5.30 per trainee per hour.”
“This is evident by the frequent revisions and conflicting forecasts on the US economy which are published by both the government and private sectors. Sir, it has been and is still the practice of the Department of Statistics to release statistics as soon as they are ready and properly checked. Some series are released and published within four weeks or earlier after the close of the reference month. For example, the consumer price index, preliminary external trade statistics. The other series are released and published in the Monthly Digest of Statistics within eight weeks after the close of the month or quarter of reference. Some of these are also published as special monthly and quarterly reports. The result of large-scale detailed surveys takes longer to be ready, not only due to the longer processing and tabulating time but also the constraint of respondent not being able to furnish the required data on time. For example, in the 1984 industrial census, some of the establishments that were being canvassed for information closed their financial accounts only in May 1985 and could supply information two to three months after May 1985. Apart from carrying this work, the Department of Statistics and my Ministry have recently formed an Economic Research Unit which, as I said earlier, will undertake studies and research projects which have a direct relevance to economic planning and policy formulation. This Unit comprises seven economists and statisticians. With regard to the Member for Whampoa's request for manpower provisions in the Department of Statistics, the point is taken. If more manpower is required, it will certainly be beefed up.”
“Mr Speaker, Sir, could I please continue? This morning I told the House about PUB's reserves and plans for their use. This is indeed a point to note when we talk about balance sheet. I would like to add that it is a matter of balance sheet practice to state the reserves as total assets of the company and statutory board. Therefore, what is commonly perceived as bundles of cash salted away by the statutory board is very often money which has already been spent on fixed assets. Hence, PUB's $2.5 billion of reserves are represented largely by its fixed assets. The actual cash reserve of PUB is only $47.5 million. Likewise, the Jurong Town Corporation which has been counted to have $750 million worth of reserves, in reality, has only $25 million of cash reserves. Sir, I next come to the points made by the Member for Whampoa on the need to collect a comprehensive set of economic data and statistics. I agree wholeheartedly with the Member for the need to have such comprehensive information and timely information. The collection, compilation and publication of statistics are regularly being reviewed and improved by the Department of Statistics and my Ministry. As for economic forecasting, the Department of Statistics is constructing an index of leading indicators which could help in signalling in advance the turning points in our economic cycle. In addition, my Ministry will be building an econometric model. This model can provide at best an early indication but should not be looked upon as an infallible forecast. The small size and openness of our economy is subjected to a great deal of global influence. These externalities make prediction a more difficult and hazardous occupation. Even larger economies with more established econometric models cannot achieve ideal results.”
“I am not afraid. The figures, as I said, is a matter of public record.”
“If you want to know the details and if you are not willing to go to the Registry of Companies to obtain this extract, you can file a question to the Minister for Finance who is in charge of such companies.”
“- accounts, the profit and loss of the operations of the Petrochemical Complex, he needs only to pay a small fee to the Registry of Companies and he would be able to obtain an abstract of the annual accounts filed by the company. It is a limited company and like all other limited companies, they file their accounts. So there is nothing to hide. It is a matter of public record. But before he runs off to purchase this extract of the company's accounts, Sir, may I suggest that first he runs to the bookshop and buy a copy of a handbook on Reading and Comprehending Company Reports, such as profit and loss statement, balance sheet. A little knowledge can be very dangerous and if he reads the balance sheet of the Petrochemical Corporation, he may not be able to understand and that could do a lot of harm to himself.”
“You had your chance. You have had your say this morning, and if you have made a mistake, are you going to retract it now? Sir, I would only recommend that the Member for Potong Pasir study his tables and statistics carefully before coming to this House to make speeches. Sir, the Member for Potong Pasir asked for the accounts of the Petrochemical Corporation of Singapore. He said that it is losing money, and he insinuated that the Government must have something to hide. If he wants to know the - Mr Chiam See Tong: Yes, we do.”
“Sir, the Member for Potong Pasir's speech is significant only in one regard, and that is, it contains a great number of factual errors. Tourist arrival is not the only one. He said that Construction represents one-third of the Gross Domestic Product. Sir, this is far from the truth. If only he had spent $14 like the Member for Kaki Bukit, to buy a copy of the Annual Economic Survey, he would have noted from Table A (1.2) that construction contributed only $4 billion out of $35 billion worth of GDP for 1985. If he puts $4 billion above $35 billion, he will come to the conclusion, I hope, that it is only 11.4% and not 33.3%. So I do not wish to belabour the point on the Member for Potong Pasir's inability to grasp basic arithmetic.”
“I am not giving way. Time is very limited.”
“Mr Speaker, Sir, this morning he said there was a drop. I am trying to correct what he said. Noticing that his own mistake has been exposed, he promptly jumped up to seek a clarification and to amend what he has said. But he did not deny that he said this morning that there was a drop in tourist arrivals. And I am trying to tell him that on page 194 of the Report of the Economic Committee, Table 21-2, shows very clearly that between 1980 and 1985, there was an increase in tourist arrivals. The number of tourists who came to Singapore in 1980, Sir, I quote, "2,562,100", and in 1985, "$3,031,000". There was an increase in the number of tourists coming to Singapore during that period. In fact, 1985 was a bumper year. We exceeded 3 million tourists. What has dropped was, in fact, the growth rate of tourist arrival. If he had said so this morning, there would have been much less confusion. As usual, the Member for Potong Pasir seems to be quite incapable of understanding simple arithmetic. Mr Chiam See Tong rose.”
“The total cost of establishing this office was much larger than the total worth of the company here in Singapore. However, TDB is most supportive of companies or groups of companies that have the capacity to sustain extensive marketing plans. For example, TDB has committed a grant of about $200,000 to a group of jewellery companies which are cooperating in an effort to open a marketing office in Los Angeles. This mar- keting office will assist this group of jewellery manufacturers to penetrate the US market. Sir, I next come to the Member for Potong Pasir. He has pointed an accusing finger at the Trade Development Board's efforts to promote tourism. He said that tourists are not coming, the hotel rooms will be empty, there will be a surplus of hotel rooms. Sir, this is not new. I myself have said so in this House just a few days ago that the expected occupancy rate of our hotels will decline in the next few years, and it is expected to drop to 50% by 1988. Sir, it is not 40% as the Member for Potong Pasir has said earlier today. If he wishes to quote me, the very least he can do is to quote me correctly and accurately. Sir, he also said that tourist arrivals fell during the period 1980 to 1985. This is a gross untruth and a distortion. Sir, he should have studied closely the Report of the Economic Committee. May I refer him to page 194, Table 21-2.”
“As TDB has to ensure that there is no serious misuse of funds and that whatever grants given to companies are properly used, it is only right that TDB should be conservative and operate on the basis of putting up as much as the companies themselves are willing to foot. Sir, the average grant of about $8,000 per company may appear small but there are other reasons for such small grants. Some of the companies that come to TDB prefer to use a combination of the MDAS and the Double Tax Deduction Scheme for assistance to cover expenses on their market development. One possibility is that not all cases qualify for a maximum of 50% grant on their marketing cost. Some of these companies were actually applying for grants which will partially go towards promoting their domestic sales. Another possibility is that some of the companies may also be promoting products which are not wholly manufactured in Singapore, in other words this might be agents or products made in other countries who want to penetrate new markets. On the average, TDB gives grants of 44% of total cost of marketing to the companies that have applied. Some of the small local companies that are making their first attempt at marketing products abroad are also cautious in their own way. This results in the small expenditure incurred in the first instance. They have not been reckless and they have not undertaken large projects, such as immediate opening of overseas offices, which would incur much higher expenditure. So it is not prudent for TDB to give grants which are disproportionate to the size of the companies that are applying for this grant. I would like to give an example to the Members here of a company which applied for a grant to set up an office in China.”
“Mr Speaker, Sir, I would like to continue from where I left off before the lunch break. Sir, I would like to move on to the comments by the Member for Paya Lebar on Trade Development Board, in particular, the Market Development Assistance Scheme (MDAS). The Trade Development Board has been and will continue to work closely with Singapore exporters and companies with export potential to map out overseas market development. TDB wil also provide the support necessary for these companies to implement their plans through various activities, such as providing timely market information, developing trade contacts and organizing fairs and missions and assistance schemes, which include the MDAS referred to by the Member for Paya Lebar, and also the Double Tax Deduction Scheme. Thus MDAS is not the only element of support that is available from Trade Development Board. The Trade Development Board also makes available to Singapore companies and also on a world-wide basis the up-to-date trade information. For instance, I would like to inform Members that the Trade Development Board circulates 20,000 copies of Singapore Trade News on a world-wide basis through its overseas trade offices. It also circulates an annual publication containing calendar of events. 10,000 copies are circulated at the beginning of every year. There are trade circulars which are issued on a monthly basis. There are also publications listing trade contacts which are circulated on a fortnightly basis. Coming back to the Market Development Assistance Scheme, the MDAS is designed to help companies defray the initial cost of penetrating new markets, introducing new product lines and also expanding their existing market shares. Grants are given up to a maximum of half the marketing development cost.”
“Therefore, Members should note that there is really no pot of gold at the end of the PUB rainbow. As the Member for Radin Mas has correctly pointed out, there is a need for statutory boards to be always on guard over its efficiency and to ensure that the service it is providing is made possible at the lowest possible cost. I next come to the Member for Yuhua. She spoke of the difficulties encountered by small companies in making applications for grants under the Skills Development Fund. She suggested that two separate sets of criteria should be used in assessing such applications. SDF indeed has been adopting a more liberal stand when evaluating local companies' applications for grants. For instance, short appreciation training programmes for staff from local companies are supported but not so for large companies. Small companies which invest in common equipment, such as mechanical presses or packaging machines, are granted interest subsidies while the same efforts by MNCs are deemed as within their normal capability. The other assistance that is given by the Skills Development Fund specifically for local companies includes the Development Consultancy Scheme. So far, 135 local companies have been given grants totalling $7.7 million under this scheme to assist them to upgrade their business, their management expertise. For other schemes such as the training grant and interest grant for mechanization where both local and foreign companies qualify, I would like to inform the Member that more than 50% of the grant goes to local companies. On the remarks made by the Member for Bukit Timah about extending the base of collection for SDF, I think this is a suggestion which we will consider.”
“Consumers can rest assured that savings in fuel cost will be passed on to them after allowing for the cost of holding the essential stock of fuel oil. PUB has also explored the possibility of using coal as a lower cost fuel for generating electricity. However, coal is a more pollutive fuel. It gives rise to both environmental and other handling problems. Notwithstanding that, PUB is still actively considering the construction of a coal-powered generation plant because we cannot expect the current low prices for oil to remain indefinitely and we ought to look for alternative fuel source. The other point that was raised by the Member for Eunos concerns the PUB reserves. Sir, PUB deserves our thanks for being able to charge reasonable and competitive rates for a highly dependable service. Through a deliberately frugal policy of financial management it has managed to accumulate healthy reserves. This should not be cause for criticism but a feeling of relief that PUB did not go the way that many other state-owned monopolies in other countries have gone. PUB's main reserve is in the capital account. This reserve is needed for future development projects which are essential if PUB is to continue to be able to provide a dependable service to both our industries and home consumers. PUB expects to spend about $3.3 billion in the next five years to improve on the services that it is providing. This money will be spent on electricity projects, for example, the Pulau Seraya power station, on water projects, such as the expansion of waterworks in Johore and, on gas projects, for providing gas network in HDB new towns. Even with this large reserve, part of these projects will have to be financed by loans and, as of end 1985, PUB's outstanding loan amounts to $1.3 billion.”
“We must take into consideration the location of the property. How far is it from the port, from the city? What are the infrastructures that are provided? Is water and electrical power readily available? What is the tenure of the land? Is it on a 30-year, 60-year lease or longer? What are the terms and conditions of the rental or sale, and what is the allowable plot ratio for the developers? It is JTC's policy to reduce our land and factory rents if they are not internationally competitive with our nearby competitors. A recent study showed that our land rents are now lower than those charged in Hong Kong and comparable to those in Taiwan and Malaysia. Further, rent only averages about 2% of total manufacturing cost. Since 1st January 1985, JTC has already granted 15% rebate to its land lessees for those whose current rentals are not less than 50% of the JTC market rate. With regard to the rent of factory, JTC has given a 25% rebate on rental and a further 6.9% reduction due to the passing over of the property tax rebate. This concession has further narrowed the gap between JTC's rates and those of the private sector and also our neighbouring competitors. Further reduction by JTC at this point of time would not be desirable as it would jeopardize the viability of private developers of industrial properties who are in competition with JTC. Sir, I next come to the Member for Eunos who asked whether there is further scope for reduction in PUB tariffs in view of the drop in oil prices. As I have replied in this Chamber a few days ago, PUB will adjust its consumer prices for electricity on a three-monthly schedule. The next adjustment is due on 1st May 1986.”
“Mr Speaker, Sir, with your permission, I shall continue from where I left off yesterday afternoon. Before the moment of interruption yesterday afternoon, I was replying to the Member for Thomson on his question about the number of vacant Jurong Town Corporation's flatted factory and standard factories and whether JTC will reduce the rental rates to help small businesses which are being affected by the economic recession. As I was saying yesterday afternoon, Sir, in practice, JTC has to acquire and hold two to three years of prepared land sites for industrial use. In the case of ready-built factories, it is JTC's policy to hold not more than a year's projected demand. The current economic recession has adversely affected the demand for industrial land and factory buildings. As demand has dropped significantly, a temporary higher stock level is inevitable. The current stock of industrial facilities which are available for allocation include 780 hectares of prepared land sites complete with infrastructure, 211 units of standard factory buildings and 252,000 sq metres of flatted factory space, and 123 units of industrial workshops. The occupancy rate of JTC's standard and flatted factory buildings stood at 80% and 71% respectively as of 31st December 1985. As the existing stock enables JTC to meet its responsibility of ensuring an adequate supply of industrial buildings, no new factory buildings will be constructed until there are signs that demand will pick up. On the question of whether JTC rentals are competitive with our neighbouring competitors, such as Hong Kong and Taiwan, and whether JTC rental rates will be further reduced, I would like to inform the Member for Thomson that international comparisons of rental and sale prices for properties are rather difficult.”
“JTC's responsibility is to ensure a ready supply of prepared land sites and flatted factories or other standard factory buildings to meet the needs of investors, both local and foreign. At the same time, the Corporation has to ensure that it does not incur too high a holding cost which is the cost that the Corporation has to expend between developing the land and selling the land or renting out the factories. The ideal policy is to maintain only a sufficient stock for one year's need. However, it is difficult to ensure an accurate balance of supply and demand. Demand can change much more rapidly. Supply, on the other hand, has to take several years. Land has to be cleared and the infrastructural requirements have to be put in, roads have to be built, drains and sewers have to be put in, factories have to be built. In practice, JTC is then obliged to hold two to three years of anticipated demand in land sites. In the case of industrial buildings, JTC holds a one-year stock of requirement.”
“The Member for Thomson sought the view of my Ministry on the effects of the decline in oil prices. As he himself has pointed out, the most obvious impact would be a reduction in cost to our industries. They will pay less for their energy needs. They will pay less for the raw materials which they import. To Singaporeans, it would also mean a reduction in cost of our essentials. In other words, we will be able to look forward to a lowering of our inflation. But there is another side to the story which, as the Member for Thomson himself has pointed out, Singaporeans ought to remember. This feeling of elation that oil prices are tumbling should be tempered with an understanding of the full effect of a severe drop in oil prices. The drop in oil prices must have a negative effect on our neighbours' economy, some of which are so dependent on oil as their main export earner. It will hamper their growth, reduce their purchasing power and, in general, dampen regional trade. A deterioration in regional economy cannot be expected to be so remote from Singapore that we are protected from it. It is only natural that if such a reduction in regional trade takes place we, as a major trading nation here, will have to suffer the consequence. Overall, my Ministry views the drop in oil price and its full impact on our economy as being of an uncertain nature at this stage. We would not like to say that it is all positive. Yes, we can look forward to some advantages, both to consumers and to industries. But we have to be prepared for the backwash of the same drop in oil prices causing an effect on our neighbours' economy. The other point taken up was on the PUB. Before moving on to the PUB, I would like to take on the point that the Member for Thomson has spoken regarding JTC.”
“Sir, I shall take up some of the points mentioned by hon. Members. First, the Member for Toa Payoh spoke on the need to have a Buy Local policy, particularly for those large contracts which require a lot of engineering machinery and equipment. I agree that in the short run such a proposal will help to save jobs. It will keep some of our local companies, which are in the business of selling equipment, in business. However, in the long term, a policy to enforce local purchases will become regressive and lead to loss of economic efficiency. A Buy Local policy will be contrary to our free trade policy. It will offer protection of an exclusive group of traders here in Singapore who are already in the business. Sir, if local agents and manufacturers are unable to compete with imports made directly from overseas manufacture by their end-users in Singapore, then any protection measure or any Buy Local policy can only be a temporary respite. A more permanent and effective remedy is for these agents and manufacturers to develop greater competitiveness, greater efficiency and productivity in their business and to be able to compete with successful tenderers who might be tempted to import their equipment directly. A domestic market catering to the needs of only 2(r) million people cannot afford to be protectionistic. Restriction on imports must eventually lead to higher cost for local consumers and local taxpayers. Therefore, it is the Government's policy goal to develop Singapore as a free trade city. There will be, as far as possible, no tariffs and other barriers to trade. Trading will be expedited by a simpler system of trade documentation. There should be minimum custom hindrance to the inflow and outflow of goods.”
“The same goes for two and three star hotels. Are there enough? Well, that is a matter for the market to decide. If entrepreneurs think there are not enough, and that there is money to be made from building two and three star hotels, I think they can be trusted to do so. Indeed, I am surprised to hear an economist suggest to the House that the Government should decide what is necessary and what should be built. I would have thought the experience of the last few years was sufficient caution against such approaches.”
“Mr Speaker, Sir, STPB has been working very closely with the Malaysian Tourism Promotion Authority. We have indeed organized such joint package tours where tourists staying in Singapore can take sight tours to Malaysia. This is constantly being promoted and, as the Member for Anson must be well aware of, we have also explored other opportunities to go into joint tourism development. For instance, the plan to provide a ferry connection between Changi and the Desaru holiday complex is just one of these means of linking up tourist attractions in both countries. The Acting Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, if I may supplement the comments of my Minister of State, with regard to the point raised by the Member for Potong Pasir, as to why we are starting a beach hotel in Sentosa when Apollo Sentosa has just closed down, and with regard to the questions raised by the Member for Whampoa, as to whether we think there are enough two and three star hotels in Singapore and what is the reasonable occupancy rate for hotels. The questions assume that it is the Government's duty to find out the number and do something about it. It is a wrong assumption. Apollo Sentosa has not been viable. It is winding up. Does that mean that Government concludes that we need a hotel, and that we will promote it and fund it? It does not. What the Government will do is to improve the infrastructure on Sentosa - improve the beach so that you will have cleaner sand, wider expanse of sunshine and ocean; improve the facilities, the attractions. Then if anybody comes and says, "Yes, a beach hotel is a viable proposition" and want to venture his money, we will welcome him. If nobody decides to establish a beach hotel, well, so be it. Sentosa will be the poorer.”
“Mr Speaker, Sir, this would depend very much on the type of hotel, when was the hotel built, what was the cost incurred and also how is the hotel being operated? What is the standard of management? There is no uniform industry rate.”
“Sir, most of the hotel industries are operating at a fairly low level of occupancy rate and the prediction is that it will continue to drop to 1988. Hotels will have to try their very best to achieve cost reduction in their own operation. They will have to use innovative ideas to attract tourists to stay in those particular hotels. For instance, I am aware of hotels which have organized package stays, including the provision of shopping vouchers. These are techniques that can be used to bring people to fill up the rooms. I think it is necessary for them to continue to exercise their imagination in order to attract visitors.”
“Mr Speaker, Sir, I do not believe that there is a shortage of economically priced hotels in Singapore, particularly at this moment when many hotels have trimmed their rates. I do not believe it is true that there are tourists who want to come to Singapore and have been deterred from coming, simply because our hotel rates are too high now.”
“If the Member for Whampoa would like this information, we can certainly provide him with this classification of hotels and the availability of hotel rooms in Singapore.”
“Apollo Sentosa is going to close down for its own reasons. The Government through the Singapore Tourist Promotion Board will launch a new effort to improve the facilities that are available on Sentosa Island itself. The beach itself will be resurfaced to bring it up to a higher standard. It will be provided with more resort-type facilities in order to make the operation of a resort hotel more viable and the possibility of a commercial success. It has nothing to do with the closure of Apollo Sentosa. Dr Augustine Tan: Does the Minister of State have a classification of our hotels according to the star categories, five star, four star, no star, whatever, and the number of rooms in respect of each category?”
“Mr Speaker, Sir, yes, STPB does monitor prices that are being charged in hotels and other tourist restaurants. STPB is aware that there has been an occasion where a tourist has complained of over-charging in such tourist outlets. STPB will be investigating this complaint and seeks the cooperation of the restaurant or hotel operators to prevent the recurrence of such over-charging.”
“Mr Speaker, Sir, I am not aware of any programme to change all the Chinatown Chinese street names to some other foreign names. I believe all the names will be preserved, as they have been for so many years. Regarding the preservation of areas of traditional historical interest, I have already stated in my answer that it is the intention of STPB to help in the development and preservation and the enhancement of areas of Singapore which have a historical interest, such as Chinatown, Little India, Kampong Glam and the colonial city centre. These areas will be retained for their historical value and also as future tourist attractions.”
“Mr Speaker, Sir, regarding the tax deductibility of promotion expenses incurred by hotels for overseas promotional exercise, I think this matter will have to be taken up with the Finance Ministry. But the Singapore Tourist Promotion Board will render the necessary assistance or other organizational support to help individual hotel owners who want to make promotional efforts in overseas markets. As to the development of a beach resort on Sentosa island itself, this is one of the key areas which STPB will be focussing its effort. Actually the intention is to enhance the beach resort facility on Sentosa island itself and to promote the development of a first-class beach resort together with a hotel.”
“We must ensure that even when companies relocate the labour-intensive portion of their operations overseas, they can upgrade and retain their activities in Singapore, either through automation or by introducing new and more sophisticated product lines.”
“Sir, the fact that they were involved in three of the secret society incidents over the last few years indicate that they are members of secret societies. RE-LOCATION OF MANUFACTURING PLANTS BY FOREIGN INVESTORS (Particulars) 7. Mr Chng Hee Kok asked the Acting Minister for Trade and Industry how many foreign investors had re-located their manufacturing plants from Singapore in the years 1983, 1984 and 1985. The Acting Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, in the last few years, leading international companies which have relocated at least a part of their operations elsewhere include General Electric, Philips, Hitachi Consumer Products, NMB, European Standard Electronics, Hewlett Packard, National Semiconductor and Seagate Technology. Most cases involve transfer of Singapore operations to countries which have cheaper and more plentiful supplies of labour. Fortunately, most of them have retained or diversified into higher value operations in Singapore. Some, however, have closed their Singapore plants and consolidated their activities here back to their home countries. Relocations involving labour-intensive operations are perhaps inevitable. We can no longer compete on the basis of cheap, unskilled labour. But companies engaged in high value and skill-intensive operations, which provide good jobs for our people, must not be priced out of the international market because of increases in domestic costs, particularly wage costs. To attract and retain these companies, we must maintain our cost competitiveness.”
“Mr Speaker, Sir, yes, all the exports are from Singapore manufacturers. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1986 TO 31ST MARCH, 1987 Order read for resumed consideration in Committee of Supply [4th Allotted Day]. [Mr Speaker in the Chair] 12.01 pm Head I -”
“Mr Speaker, Sir, I do not have the details concerning the expenditure of the overseas offices with me now. If the Member is interested in knowing these details, I would be very glad to send them to him. Regarding the 69 fairs and missions, I believe most of these were overseas participation. The missions particularly were selling missions which bring Singapore exporters to potential markets and TDB's overseas offices arrange for the contact between local businessmen and potential buyers.”
“This is the last Singapore surface water source which can be developed. Future water resources will have to be found outside Singapore. There are currently three schemes to expand the water supply from Johore: the extensions to the Scudai Waterworks, the extension to the Johore Waterworks, and the construction of the second Johore Pipeline. In addition, the Singapore and Malaysian Governments are jointly looking into the development of the Johore River water resources to meet the long term needs of both Singapore and Johore. Provided these schemes, together with others, are implemented in the 1990s, there should be adequate water to meet our needs up to the year 2000. Desalination of sea water is technically feasible but extremely costly, especially on a large scale. PUB's strategy is therefore first to develop conventional water sources to the maximum extent possible. As for industrial water, it is not economical to extend the use of industrial water to households. Doing so will mean building a separate parallel supply system. This will be expensive, especially as industrial water cannot be used for bathing and washing clothes. It can only be used for flushing toilets. However, industrial water is suitable for factory use. The Ministry of the Environment will therefore be extending the industrial water system to serve the new industries in the Tuas area. All this simply underlines the crucial importantce to Singapore of saving and not wasting precious water. LEGAL SERVICE POSTINGS (Statement by the Prime Minister) 11.43 am”
“Mr Speaker, Sir, the Public Utilities Board reviews its electricity and gas tariffs once every three months and adjusts them according to international fuel prices. In response to declining oil prices, PUB reduced electricity tariffs by 5% on 1st November 1985, and by another 4% on 1st February 1986. As a result, savings of $144 million per annum have been passed on to consumers. The next adjustment is due on the 1st of May. The size of the adjustment will only be known in April 1986. WATER SUPPLY (Plans for adequacy) 10. Mr Yeo Toon Chia asked the Acting Minister for Trade and Industry (a) how the Public Utilities Board plans to overcome the problem of adequate water supply in the event of a shortage of supply from Malaysia; and (b) whether PUB (i) has any plans to construct new reservoirs or expand the capacity of our existing reservoirs, (ii) will look into the possibility of desalination of sea water,and (iii) will extend the use of industrial water to households for purposes other than consumption. The Acting Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, the PUB has two Water Agreements with the Johore Government which enable us to draw water from reservoirs in Gunong Pulai and Pontian, and from the Scudai, Tebrau and Johore Rivers. These agreements assure us adequate supply for our present needs. Should there be a drought in Malaysia, our own reservoirs in Singapore, together with appropriate water conservation measures, should be adequate to tide us over a difficult period. PUB's long-term plans have always included building new reservoirs and expanding the capacity of existing reservoirs. The most recent project has been the two new reservoirs under the Sungei Seletar/Bedok Water Scheme.”
“Let us not be distracted or misled by those whose capabilities are limited to sounding out unrealistic and impractical pseudo ideas, whose sincerity leaves much to be desired and whose loyalties are wholly to their own political ambitions. Sir, I totally reject the amendment put up by the Member for Anson.”
“Sir, the recession cannot be overcome by the Government alone. This is a battle for every Singaporean to join in. I am compelled to repeat for the Member for Anson's and the Member for Potong Pasir's sake that there is no painless way to get out of our present position. The Member for Anson makes a long speech which can be summarized in one word, "pipe-dreams". He thinks that the world owes us a living. Let me remind the Member that no one owes us a living. We live and prosper because we can do others a better service, because we can make a better product at a lower cost, because we can keep up with changes and keep ahead of our competitors. If we are unable to do so, then Singapore will suffer. And no amount of promises and unemployment benefits will be able to restore the prosperity and dynamism to our system. Since the last few years, our competitive edges have been dulled. Recovery will not come if we follow the Member for Anson. We must be prepared to reduce our expectations, hold our standard of living and settle for less improvement in the next two years. We must have flexibility in dealing with our problems. The changes are unavoidable. Why does he choose to stick his head into the sand at the first sign of an approaching storm? Singaporeans must reject his approach. We must instead rise to the occasion. We must unite and stand up to be counted on the side of Singapore to push back our economic enemies. We must assert our confidence and strengthen our economic and psychological defence.”