Leong Horn Kee
Singapore
“My question is that, although at the point of purchase when the blocks were built, this may not be structural deficiency, as the Parliamentary Secretary said, but it is now because the demand or desire is for lift access.”
“Lastly, by centralising at MOM, I wish to urge the kind Minister to provide more funds and resources for job search programmes. Most feedback from residents is that they are not getting sufficient help and satisfaction on job search services at the CDC level.”
“At the same time, our SAF soldiers are better educated and trained to handle more sophisticated fighting system. Thus, the combination of both modern weapon systems and better trained soldiers will provide a good platform for our SAF to build a strong and capable integrated fighting force.”
“All right, "may" allow two months of disruption. But in terms of cohort, after the students have left school, they are no more in the same cohort. They actually enter enlistment at different times of the year. So this issue of relating cohort to enlistment period may not be valid. Therefore, why not just have a clarity of rule?”
“Sir, on this issue of early disruption of two months, we should actually look at it not from the two months' point of view of early disruption, but from the 10 months of waiting time. The servicemen will have to mope around waiting for 10 months for his tertiary education.”
“If the safety and personal security in Johor is not improved, no matter how excellent or scenic a bridge we build, Singaporeans will be hesitant to visit Johor and spend time and money there.”
The complete record
Every one of 876 lines we hold for Leong Horn Kee, in date order, each linked to its source. Free to read, in full, without an account. Page 14 of 18.
“Sir, I would like to make two suggestions to the Minister for National Development. The first concerns fire insurance for the HDB flats. In Singapore, more than 90% of our population live in HDB flats. In the event of a fire, the residents would suffer great losses. Although there are not many cases of fire in HDB flats, there has been a recent case of fire at Bishan East, which started from the ground floor of a block of HDB flats and caused damage to a number of flats on the lower floors of the block. In the case of a private property, if it is mortgaged to the bank for a housing loan, the property has to be insured against fire. In order that residents of HDB flats are also protected so that they will not suffer monetary losses, I feel that the Government should encourage them to take up fire insurance in respect of their HDB flats. However, the insurance premium should be kept very low, because the risk of a HDB flat catching fire is very minimal. I suggest that the HDB and the CPF Board work out a scheme to include all the HDB flats under a group fire insurance coverage, and to allow the owners to pay the insurance premium through automatic deduction from their CPF accounts. My other suggestion concerns the placing of tables and chairs along the corridors outside the coffeeshops in HDB estates. We all know that Singaporeans are fond of having their meals in the open air or spacious places. However, most coffeeshops in HDB estates are hot and cramped, and cannot accommodate many customers. Normally, the coffeeshop owners would place some tables and chairs at the corridor outside their shops during lunch time and in the evening.”
“Sir, for the last two years, every year, Encik Othman Haron Eusofe and I spoke on this subject, therefore I think it is my duty to speak on it again now. Inflation in 1991, according to the Consumer Price Index, was 3.5%. The Minister for Finance had mentioned yesterday that the strong Singapore Dollar has helped to check inflation. The fear of an inflationary trend, as Encik Othman has said, is always in the mind of the people. Just today, if you read the Business Times, at the back page, it says the Bank of Tokyo has predicted that for Singapore, inflation would actually grow this year to 3.9%, and then in 1993 it would be 4.5%. While we may not want to believe all these forecasts of economic doom and failures, I think it is useful for the Minister for Trade and Industry to actually be mindful of inflationary pressures. Therefore, I would like to ask again this question this year: what are the measures the Ministry is taking to check inflation?”
“The second cut, Sir, is the threat of recessionary trends. Many businesses have felt it in their bones that there could be a recession coming. Many MPs have said so in the last two days. But we should not cry wolf of a recession and talk ourselves into a recession. It is beneficial for us and for the Government to be on the alert. Around the world, we see that various parts of the world are not in very good shape, eg, the US, Japan, Europe, Australia and New Zealand are facing economic problems. However, the Asia-Pacific region is, in fact, growing quite strongly which is a saving grace. I would like to urge the Government to urgently take stock of our economic prospects. I do support the proposal by Mr Kenneth Chen, who mentioned yesterday, that perhaps it is timely for the Government to revive the Economic Committee. Perhaps, the Ministry of Trade and Industry would also take advantage of the Resource Panel members that we have in our GPC for Finance and Trade and Industry who could give very good feedback on what they feel about the recessionary trends in Singapore.”
“Sir, Government linked companies, or in short, GLCs, are being formed by various Government bodies, such as the Ministry of Finance, Ministry of National Development, MINDEF, or by statutory boards, for a variety of reasons. Very often, the initial formation of these companies is quite justifiable. There is always good rationale for the formation of these companies. They are either to venture into new areas of development, or to go into sectors where the private sector itself is unable to undertake in view of the size or, perhaps, the risks involved. However, the problem that arises is that, after the formation of these GLCs, often they drift away from their original objectives. It could perhaps be their response to market forces, or in response to business opportunities that they go into areas that are in very open competition with existing businesses. As a result, these GLCs do pose considerate competition against the other companies in the private sector. Sir, competition is not necessarily a bad thing. What the private sector would feel uncomfortable about and, in fact, some of them may even cry foul play is that there is an uneven playing field. They could feel that the playing field is, of course, tilted in favour of the GLCs. Sir, such impression, whether perceived or real, has an impact on the private sector. I would like to ask the Minister whether the Government could actually do a periodic review of the roles and functions of various GLCs, and for those who have drifted away from their original objectives and those that are in obviously open competition with other companies in the private sector, whether the Government should actually consider divesting their shares in these GLCs and end up levelling the playing field, so to speak.”
“Mr Speaker, Sir, I have two cuts. Can I take them together?”
“And these consumers are of course our locals. If HDB shop prices increase, the cost of some of these service sector prices will also increase, such as for simple things like a hair cut, making a shirt or trousers or other everyday needs which people are faced with. The objective of restructuring the retail sector may be very laudable, which is to make the retail sector more productive and efficient in the use of manpower resources. The worry here is that for several of our essential services such as tailoring or barbering, they cannot be automated, and therefore the cost increase will go up and that will be passed on to the consumers. Will there be an impact of inflationary pressures on the local industries and the local services? How would Government ensure that such increases can be moderated so that at least for local businesses, especially the small retail sector, the increase is moderate over a certain period, rather than have sudden jumps in their costs of doing business.”
“Sir, the topic on costs of doing business has been raised by many MPs in the last two days. So I shall not dwell too much on that particular aspect but more on the effect of costs of doing business with regard to the retail sector. It was mentioned in the last two days by many MPs that labour cost has been a rising factor and of increasing concern of local manufacturers. Labour cost has increased by 6% to 8%, while in comparison productivity has dropped to 1.5% last year. Local manufacturers also face other cost increases such as increase in foreign workers levy, rental of factory space of JTC and other increases. I would like to ask the Minister whether he has any view on the impact of such increases on the competitiveness of our local industries. On the second aspect which is with regard to the impact of costs of doing business on the retail sector, the Senior Minister of State for Trade and Industry had announced last week the plans to restructure the retail sector. The Ministry of National Development also announced its plan on the sale of retail shops in HDB estates. So the concern here is with regard to the marginal trades that will be affected. These are the small provision shops, barbers and tailors who may find that the increase in the prices of the shops that they have to buy would become increasingly too high. The other operating costs such as manpower cost, if they can find the manpower, could also be on the increase. Electricity rates and telephone charges may also be on the increase. Therefore, the small marginal retailers may be facing an increasingly difficult life in the future. They would either be phased out, as Dr Ow Chin Hock has mentioned, or they could easily jack up their prices and then pass on the increases to the consumers.”
“The costs of some latest measuring and investigative equipment can be very exorbitant, but they are also very necessary for conduct of certain industrial research. Under such circumstances, the concept of full-cost recovery against the capital cost may be too high a cost-burden on the users, which are mostly the local industries. Perhaps, the Minister can throw some light on the policy of SISIR. The worry of local industries is that the charges set by SISIR on the use of SISIR's facilities, and compliance with SISIR's various standardisation and certification requirements may add too heavy a cost burden that their products become less price-competitive. In addition, these industries may be discouraged to undertake new product developments if the base cost of conducting industrial research becomes too high. Sir, may I voice my support for the Bill and request the Minister for his explanation?”
“Mr Speaker, Sir, I wish to take this opportunity to seek a few points of clarification from the Senior Minister of State for Trade and Industry on this Amendment Bill. First, I must commend the Singapore Institute of Standards and Industrial Research (SISIR) for having, since its formation in 1973, successfully fulfilled its mandate, which is to maintain and upgrade the standards of industrial products of Singapore. The Minister mentioned that one of the functions of SISIR is to promote quality of our products and processes through quality management. Here, I wish to declare my interest, Sir, as Chairman of the Singapore Quality Institute (SQI) which is a professional body established since 1973 as well -- same year as SISIR. The objective of the Institute is to promote and advance the interests of Quality Control (QC) professionals in Singapore. I wish to ask the Minister what are SISIR's plans with regard to quality promotion in Singapore. More specifically, what role would SISIR play in quality promotion vis-a-vis other organisations such as the National Productivity Board which is also very active in quality promotion. The second aspect I wish to ask the Minister is on the financial policy of SISIR. As mentioned in the Chairman's message in SISIR's 1990/91 Annual Report, it was stated that SISIR's revenue from services provided rose 14% to $26.5 million and I quote, "placing SISIR well in sight of its goal of making its cost-recoverable activities fully self-financing". Sir, in accordance with our most extolled "no subsidy" policy, that means no free lunches, this statement in fact is a laudable one. However, technology advances rapidly.”
“Sir, may I ask the Minister whether his Ministry will also consider taking off the ALS evening restriction for certain periods as a trial to see whether there are any changes actually in the traffic pattern, and whether the evening ALS will be lifted if the traffic is tolerable?”
“Sir, although the Minister said that the study has shown that there is no change in the traffic counts, for people who come in and out of the CBD in the evening, their impression is that there is indeed a lessening of the traffic volume. On that basis, would the Minister consider shortening the hours of the ALS in the evening?”
“Sir, may I ask the Minister whether, in his review, he is also thinking about the possibility of increasing car park charges which most residents of HDB estates are very concerned about.”
“Sir, before I ask my question, may I declare that I am a member of the Housing and Development Board. I am asking this question in the general interest of the public. Question No. 1, Sir.”
“They are going to have an effect on our lives. Likewise, changes in the creation of the North American Free Trade Area, the European Community and the Commonwealth of Independent States. They require us to work together as a solid team in good times and in bad times. And only in this way would we be able to cope with new changes and challenges in a world that has undergone a lot of changes and will continue to change. Mr Deputy Speaker, I support the motion of thanks to the President for his Address. 3.45 pm”
“Must a Malay, for example, lose his identity, his religion and language in order to be some sort of person whose nature, character and appearance I think even the Member for Potong Pasir cannot begin to visualise? On the other hand, Mr Deputy Speaker, I think I am more comfortable with the Government's policy, with its emphasis on multi-racialism and its promotion of inter-racial unity, which has enabled us, people from different communities, to live together, work together, as friends, neighbours, colleagues and so on. I think our experience in the past decades has brought the people of Singapore closer together, and I hope there will not be charges that we are getting more and more communalistic. The hopes and aspirations of the people are clear - they want a better life, quality life. The Government's plans are clear too - to let as many citizens as possible progress and succeed. The meeting point between the hopes of the citizens and the Government's plans is evident in the Presidential Address. The marriage of these two goals shall form a foundation that would strengthen the solidarity between citizens and leaders. We are now in a very important decade. By the end of this decade, we expect to become a developed country, and I sincerely hope the Government would not be swayed by comments implying that life in Singapore in 1972 was better and ought to be our goal. With close cooperation between citizens and leaders, prospects will be brighter for all Singaporeans to achieve a better life. Mr Deputy Speaker, a number of new developments in South East Asia, particularly the opening of Indo-China to the world and the withdrawal of US forces from the region, will have an impact on us, in the form of new challenges and opportunities.”
“But, while we want a Singapore that is united, where the people help one another, we do not need to be a people that forget our diverse cultures, heritage and ethnic roots. 3.38 pm [Mr Deputy Speaker in the Chair] The points made by the Member for Potong Pasir raises many questions that give us cause for concern. When someone says that Singaporeans are growing more and more communalistic, the impression one gets is of a widening gap between the different communities. But this is not so in reality. On the other hand, an explanation is called for as to what one means by "homogeneous society" and "Singaporean Singapore", because this question cannot be allowed to create confusion among us. Every community in this country has its own unique needs and some of these needs cannot be fulfilled on an overall basis covering all the communities. I give the example of the Malay/Muslim community, which has its own heritage too, just like the Indians and the Chinese - its own language, culture, religion and way of life. The Malays want this heritage to be preserved and to flourish. They want to continue building mosques and providing religious education for their children. They want their future generations to continue to be able to speak Malay at home and among members of the community. When we talk of Singaporean Singapore and a homogeneous society, do we mean that each community must set aside its own language, its own culture, its own religion and everything that constitutes its heritage, simply to be Singaporeans, free of cultural and racial differences? That is why I call this worrying question that must be challenged so as not to create misunderstanding in our society.”
“To me, this element of hope is the most important feature of the Presidential Address. This hope must be nurtured and allowed to shine, because it will be our main driving force. If people cannot see what prospects lie before them, they will be fearful and apprehensive. Things will be more difficult. In this regard, self-help efforts such as those by bodies like Mendaki Foundation, SINDA or the Chinese Development Assistance Council (CDAC) must be seen as positive additional stimulus for us to reach for the common goals of all Singaporeans. Success for each citizen means benefits for every other citizen and for the country. Success for each community means benefits for every other community and for the nation. The spillover of one person's or one community's achievements normally can be enjoyed by all others around them. Therefore, we must encourage one another to succeed and not succumb to jealousy. When people of all ethnic backgrounds progress and get to enjoy the fruits of progress, political stability in the country and harmony in this multiracial environment will be enhanced. This is what we want in the long term. In this regard, I cannot help but touch on the points made by the Member for Potong Pasir on the concept of Singaporean Singapore and his stress on creating a homogeneous society. Mr Speaker, his points contain an underlying charge, that Singaporeans, Chinese, Malays and Indians, are growing more and more communalistic in their attitude. I consider this a very strong charge with no basis at all. My experience shows the opposite - that the Singaporean spirit is growing stronger day by day among people of different communities.”
“I am confident that solidarity in our society will be strengthened with the development goals that have been clearly outlined by the Government in the President's Address. One very important and prominent point to be noted throughout the Address is the Government's effort to open the widest possible opportunities for Singaporeans to further upgrade themselves, particularly through education and training. The programme outlined gives hope for people of all levels in our multi-racial society, including the low income earners, to take advantage of these opportunities to improve their lives and their families' lives. One obvious example is the education system, which will be tied to the Edusave scheme. It would allay the concern among some families as to whether their children will have the opportunity to progress through better schools, whether neighbourhood or independent schools. Mr Speaker, in my view, it is not that Singaporeans do not favour independent schools or the Government's emphasis on quality educational facilities and programmes. Instead, they are concerned about their means and the opportunities available to them. This is the case particularly among the low income earners. The Presidential Address has helped allay some of these fears. More importantly, with better educational and training programmes, all Singaporeans including those from the low income families will have equal opportunities to develop their skills and abilities. Equal opportunities are available to everyone to succeed through a system based on meritocracy. Mr Speaker, as long as the people believe that they have good and equal prospects to build a life and to progress, whether they are rich or poor, they will have a reason to strive and to work hard.”
“The Parliamentary Secretary to the Minister for Information and the Arts (Encik Mohamad Maidin B P M)( In Malay): As a nation, we are still young. But, within a matter of one generation, we have notched a list of proud achievements. Our fundamental institutions are stable. Life has never been better. And our people, regardless of race, are enjoying the fruits of this success. Our way of life has undergone tremendous changes. One clear example is in housing. Where they used to live in crowded, chaotic conditions, mainly in rented housing, Singaporeans today are by and large owners of their homes. And this is a far cry from the situation in many countries, including some developed nations, where thousands of people are still living on roadsides, under bridges and in makeshift shelters. Higher and better education and skills have become the key to progress for the people and a nation. And in time to come, these elements will continue to figure in the further improvement of our lives and in our further prosperity. Though much has been achieved on a broad basis, the restructuring of our society is still to be completed and indeed will not be complete within three decades. And that is why we continue to hear voices of hope, particularly from those in the low and moderately low income groups who desire to climb higher up the economic ladder. Mr Speaker, I view these expressions of hope as a positive sign. When people say in no uncertain terms that they want to progress and succeed, we as a nation are in a safe position. Our progress and achievements are only half way. With this drive for progress and success in our people, we can run our development machinery with the confidence that the citizens will be with the Government in reaching for our objectives.”
“Contrary to these sentiments, we should take the view that since local companies, MNCs and wealthy individuals have made good money in Singapore in the past, it is only small recompense for them to donate to the community when called upon to do so now. Another area which has not been sufficiently promoted, I feel, is to call upon able citizens who have made good, to come forward to serve the community. We should roll back the trend towards the "individualistic" or "what's-in-it-for-me" syndrome. The tendency to seek personal gratification and well-being is getting prevalent. To address these social issues, Community Development will be an increasingly important portfolio in future. I note, Sir, that the Minister taking charge of this increasingly important portfolio is also shouldering another heavy Ministry, which is the Ministry of Health. Sir, I wish to move on to one last area which I feel has not been adequately addressed in the Presidential Address. This is the rising cost of living. It is true that the costs of basic essentials have not increased substantially over the years. However, I feel that the people have been very much taxed by the rapid increases in the costs of health care, hospitalisation, education, transportation and housing. While the Consumer Price Index (CPI) has recorded only moderate increases over all these years, it may not be a fair measure of the high cost of living in Singapore for the average Singaporean. I wish to conclude by urging the Government to put a strong emphasis on devising a better measure of the rising cost of living for the average Singaporean and to closely monitor this factor. An unchecked rising cost of living can easily erase the multitude of good work done by the Government in all the other areas.”
“It is evident that the era of high dazzling growth rates is over. During the fast growth periods of the 70s and the early 80s, many Singaporeans prospered. Naturally, the gap between the rich and the poor has widened. I strongly feel, Sir, that the Government's decision to emphasize on levelling up to progress comes at the right time. When we were moving ahead at a fast pace, it would be difficult to call on the fore-runners to slow down. Now that we are coming to a stage of slower growth rates, it is an opportune time for us to consolidate, a time to help narrow the gap between the rich and the poor. The Government could focus in the next five to ten years on levelling up the lower 20% to 30% of the population. Fortunately, it also has the means to do so as the Government has accumulated substantial reserves which can now be put to very effective use. Examples of what I see are meaningful schemes to facilitate the levelling-up process would be the proposal to form the Singapore Open University, the Edusave Scheme, the HDB Upgrading Programme and the Medifund. Hopefully, all these measures will help to narrow the gap between the rich and the poor in Singapore in future. However, Sir, I feel that the burden of helping the poorer segment of the people should not rest solely on the Government. I feel that the community, that is the richer members of the community, should also be strongly urged to do a part. In the recent two years, numerous fund raising projects were organised by various charity and community organisations. The largest were, of course, the 25th Anniversary Charity Fund and the University Endowment Fund. We have often heard that local companies, MNCs and wealthy individuals felt overly taxed by these frequent calls for donations.”
“Numerous Chinese dynasties came and went, some lasting as short as 10 years only. Two of the longest dynasties in China are the Tang and the Song dynasties, each lasting about 300 years. A unified country, a strong central Government, efficient land and water communications and wide economic and cultural contacts made the Tang dynasty, which was from the 7th century to the 9th century, one of the most brilliant epochs of the Chinese history. The Tang dynasty was advance in literature, the arts, foreign relations and many other fields. The famed Silk Road was established during this period. The 300 years of the Song dynasty, which was from the 10th century to the 13th century, was another high point in the Chinese civilisation and culture. Agriculture, handicraft, commerce and the urban economy continued to develop. New achievements were made in science and culture. The various Chinese dynasties eventually collapsed because the leaders became weak and decadent, and the well-being of the people was neglected. More recently, we saw the dramatic dissolution of the Soviet Union after 74 years of history. Another recent event was the sudden capture and annexation of Kuwait by Iraq, and its eventual liberalisation by the Allied Forces led by the US. All these incidents are lessons in history. We are constantly reminded that for survival and stability, the leaders must be strong, and the leaders must strive for the people's interest. Mr Speaker, Sir, we are entering into a period of moderate growth and a period of consolidation. The Ministry of Trade and Industry expects our economic growth in the next three to five years to be between 5% and 7% per annum. Thereafter, after the fifth year onwards, growth will slow to about 4% to 6 % per annum.”
“Mr Speaker, Sir, thank you for allowing me to join in this debate to thank the President for his Address. The key to stability in any country is to constantly improve the living standards of the people. As appropriately stated in the President's Address, I quote: "... sound government policies have created a framework for sustained growth, and enabled Singaporeans to progress and prosper." Throughout the history of nations, the rise and fall of empires, it was repeatedly demonstrated that a strong government ensures stability and progress. The people may feel more relaxed, more at ease, with a Government that is accommodative and softer. But ultimately, for the best interest of everybody, a leadership that is resolute and firm is much better than one that is indecisive and unsure. Recently, the signals of the stance which is preferred by the Government have become a little ambivalent. As have been noticed by many observers, the Presidential Address has not been explicit on the approach that would be pursued by the Government. I might comment that the Presidential Address and the Addenda of the various Ministries appear rather task-oriented. It is unclear whether the Government intends to continue with a more gentler, participative and consultative style or that a firmer and more resolute approach would be the line. Some may well prefer a softer approach. I am of the view that some quarters, in fact, would like to have a government that is firm, but its firmness should also be tempered with a fair measure of care and compassion for the poor and less fortunate. Singapore has a history of only 26 years. Most countries and nations have histories much longer than ours. The Chinese civilisation has a history of over 4,000 years.”
“Second, as a demonstration of their commitment, and to enable more funds that can be utilised for the child's educational enhancement programmes, parents should be permitted to make a counterpart contribution, up to the amount made by the Government. This counterpart contribution should be voluntary as not all parents have the means to make such payment. Third, as a gesture of encouragement, the counterpart contribution from parents can either be in cash or from their CPF ordinary account. If the contribution is in cash, I would like to suggest that it be tax deductible. The Minister has already proposed that the parents' contribution for the fourth child be tax deductible. If it is from the CPF account, it can only be drawn from the portion of the CPF account which is allowable for investments. This way, Sir, there will be no additional demand for higher CPF contribution. The parents can either decide whether to invest in stocks and shares, or put their CPF money in their children's education. On this note, may I conclude by hoping that with the ensuing peace after the Gulf crisis, the world will enjoy rapid economic recovery and Singapore will see continued better times ahead.”
“The slowdown of business can lead to lower year-end bonuses. In drastic cases, retrenchments may result. As an employee myself, I would naturally like to enjoy higher take-home pay. However, taking into account the global considerations that local companies must maintain their cost competitiveness, I would like to suggest that the Government make a review of the target contribution levels for both employers as well as employees, and also to take a very cautious approach to future adjustments in CPF contribution rates. Edusave Scheme I must state that I fully support the Edusave Scheme. It is bold and a very creative stroke of genius. The objective of the Scheme is to demonstrate the Government's commitment to invest in our people and to provide equal opportunities for each new generation. As I said earlier, the scheme is bold and creative, but I do have one major lament on it. I strongly feel that the shortcoming is that the contribution is being made by the Government only and no counterpart commitment or contribution is expected from the people themselves. It is structured too much of a handout, a give-away. We, as parents, recognise that investing in our children's education is paramount. Therefore, the Government should allow the parents to demonstrate a commitment on their part as well. I would like to make the following suggestions: First, to raise the eligibility age from 16 to 18 years old. I feel that the additional two years of 17 and 18 years old of a child's education is in fact the most critical stage. Moreover, the costs as well as the benefits of extra-curricular activities and enrichment programmes will be higher at this stage.”
“Even though assurances are given that the tax scheme and the time usage charge for telephone bills will be equitable, there is naturally much worry that the new systems, once in place, will facilitate the imposition of higher charges by the Government as time goes on. Sir, as there will be a White Paper on this subject, we shall leave the debate till then. CPF Contribution Rates Many Members have spoken on this subject. It is a stated Government policy that the long-term target is 20% contributions each from both employers and employees. From 1st July this year, the CPF rate will be 17 1/2% for employers and 22 1/2% for employees. I would like to suggest a review of the target level of 20% each from both sides. I suppose the objective of equal contributions from both sides is to be equitable. As the shift of contribution weighs towards the employers and away from the employees, there will be the benefit of higher take-home pay for the employees. However, we must be mindful that as the employers pay higher CPF rates, their cost burden is increased. As our companies' competitiveness gets eroded due to higher labour cost, the viability of these businesses will be adversely affected. The previous rate by the employers was 25%, which was obviously untenable, as it was part of the reason that contributed to the recession in 1985. I am not sure, Sir, whether the 20% that is targeted for the long term will also be tenable for the employers. What I am suggesting is that perhaps the Government should do a very detailed study on whether such rates are equitable to both the employees and the employers and whether they will have any overall beneficial or adverse impact on the economy. Ultimately, the adverse impact will also affect the employees.”
“The result is that we saw a higher inflation rate last year. The official figure quoted from the Consumer Price Index is 3.4%. As this index only measures the prices of basic services and commodities, the real inflation rate for the average Singaporean (who has been labelled as a middle income earner or a middle class person), his inflation index in fact could be higher, between 5% and 7%. Since the Gulf War is over, it is expected that the US and other western economies will become buoyant arising from the extensive re-building of Kuwait and Iraq. Singapore will enjoy the spillover effects of this overall fast recovery of these Western countries. The projected 3% to 6% growth for 1991 may become once again underestimated. I would urge the Minister and his economic planners to keep a close watch on the state of our domestic economy. And particularly, to avoid the over-use of the price mechanism and market forces justification to increase the rates and fees controlled by the Government. Sir, I wish to comment specifically on three issues: (1) The comprehensive goods and services tax or commonly known as the consumption tax; (2) The shifting of long-term CPF rates; and (3) Some suggestions on the Edusave Scheme. Comprehensive Goods and Services Tax The proposed consumption tax is generally unpopular. It is natural that any new tax scheme will meet with strong resistance. Each person is fearful of being taxed more. A similar experience was encountered with the Poll Tax in UK and the consumption tax bill in Japan. In Singapore, the consumption tax and the proposed charging of telephone bills by time-usage are not warmly welcomed. The people are concerned that they would see the opening of the Pandora's box.”
“Mr Speaker, Sir, the budget proposed for the new financial year shows that our economy has been functioning at an even keel. The Minister for Finance has not proposed any dramatic changes, tax incentives or tax deterrents to alter the state of the economy. In fact, one could see that the Minister's main focus of attention was external. He stressed on the need to build external linkages and international networking. So, most of his new tax incentives are favoured towards expanding international activities of the business sectors, such as, (1) the tax exemption on dividends paid out of foreign income; (2) the Approved International Shipping Enterprise (AIS) scheme; (3) the tax deduction for General Provisions made by banks; (4) the tax incentive for services provided by trust companies; and (5) the tax incentive for underwriting and managing international securities issues. In comparison to these five tax incentives, on the home front, little is given out except for the tax relief for handicapped spouse and the property tax refund for vacant residential buildings undergoing building works. Sir, while the Minister's attention is directed at stimulating international businesses for Singapore, I feel that he should keep an eye on the domestic scene as well. As he has said in his Budget speech "there were signs that strong demand had led to overheating in the economy." Therefore, there is no need to sound the alarm bell yet. But there are obvious demand-pull and cost push factors that will cause the economy to overheat. Some of these factors are, as have been mentioned by other Members of Parliament, the tight labour market, a strong Singapore dollar, and also the higher cost of doing businesses such as higher wages, rentals, telephone and utilities bills.”
“These groups can tap on knowledgeable persons from the Government, from the civil service, the academia, industry and the public. They can act as a focal point to gather considered opinion and help the Government to look, think and plan ahead. We need to keep pace with our competitors to stay ahead in the race, and enter the uncharted waters of the next lap. Naturally, even if we have Think Tank groups, the political leadership will have to make the final judgment and decision on what directions to take. It would help greatly if we can have these groups to act as beacons guiding our path ahead. Sir, I support the motion.”
“In the recent years, the new leaders have encouraged a more participative form of government. There is some contradiction in the objective between evolving a gentler environment on one hand, and honing the competitive spirit of the people on the other. This is translated into the conflicting aims of promoting a more caring and refined people versus exhorting our people to keep ahead in the race of "The Next Lap", and therefore striving for excellence and personal achievements. This is a fine balancing act that requires much skill and total concentration. I have very briefly outlined in very broad brushes the future challenges, as I see it, in the three areas of social, economic and political. It is not practical for me to do a full discourse on all the complex inter-linking issues. They definitely require in-depth analysis. However, I am certain that with the very forward-looking Government and the efficient administration that we have, these issues will be studied extensively. Establish Think Tank Groups The Government has regularly relied on appointing ad hoc study groups to consider and review important current issues. We can see the listing of many committees and groups in the book: "The Next Lap". To ensure that the future challenges and problem areas are identified and tackled well in advance, I would like to suggest that the Government establishes appropriate Think Tank groups to constantly review and brainstorm long range issues well before they surface. I believe that there are already some Think Tank groups (such as the Institute of Policy Studies and the Institute of South-East Asian Studies) which generally examine geo-political issues. Similarly, there may be a need to set up Think Tank groups to consider long-term economic and social issues.”
“How to ensure that young Singaporeans remain committed to Singapore and how can they stay keen and alert so that they can keep pace with the world. Challenges Ahead Taking a broad scan of the landscape ahead, we must ask ourselves what are the challenges ahead. I can categorise the future challenges into three main areas, namely, in the areas of social, economic and political. On the social front, as we get more affluent and well-fed, the risk is for our people to become soft and complacent, as I said earlier, with a tendency towards materialism and self-centredness. Education of the young will play an important role in moulding our people. The recent adoption of the five core values will help to inculcate common values in our children. Second, on the economic front, the challenge I see is how to achieve continuing economic success in the face of limiting resources. In economic planning, there are three main factors of production, namely, capital, land and manpower resources. We can assess that, of these three main factors, the most critical and limiting is our shortage of manpower. The next factor is land. Capital is not a limiting factor as yet, but it can be used as a multiplier in enhancing our labour productivity. We have to maximise the utilisation of these three resources, particularly our very limited human resources, to provide sustaining economic growth. In the political front, if we leave aside the unpredictability of international political developments, I believe that the key issue in the domestic environment will be the increasing need for the Government to strike a balance between bureaucratic control and central government versus devolvement of the decision-making process and more freedom of choice for the people.”
“Mr Speaker, Sir, with the recent change of leadership, Singapore has entered into a new phase of its history. The ensuing period is appropriately called "The Next Lap". The name, I feel, is well chosen, as it connotates a few important facets. One is that we are in a race that has not terminated, but continuing. Second is that there is a handing-over of the torch to a new leader and his team. And third is that it is a race. In a race, we have to plan ahead, evaluate strategy, assess the competition, know our weaknesses, and implement a game plan for success, and there will be ample rewards for winning the race. Our Achievements Sir, it is remarkable that over the past 26 years of our Independence, Singapore has achieved signal progress. We have attained a per capita income of over US$10,000. We have an official foreign reserve of over $38 billion. The inflation rate is low. The Singapore dollar is strong. The roads are free flowing. Every home gets clean running water. Practically everything ticks like clockwork in Singapore. Keeping Pace We can literally rattle on the long list of our achievements. The danger is that as we wallow and bask in our success, we can become very smug, soft and complacent. This is particularly crucial with regard to our younger generation. As they grow up in a state of overall affluence and well-being, they may lose that mean and lean cutting edge of our earlier generations. They are the beneficiaries of the efforts of their parents. Can they remain as driven as their parents, and maintain the pace of the race that they are running? I believe herein lies the nub of the challenges our new leaders will have to face in future.”
“In this way, I think we will have eight members of the Council, four of whom are independent and the other four nominees, consisting of two who are nominated by the President and two by the Prime Minister. I think the proposed arrangement will add more representation, prestige and independence to the Council. Sir, I would like to conclude by just stating once again that it is commendable for the First Deputy Prime Minister to voluntarily shed some of his powers so as to provide a more stable political system in Singapore. We are entering uncharted waters. We must therefore tread with extreme care. In putting together the various pieces, I hope the First Deputy Prime Minister, in his generosity to share powers with the Elected President, and also in introducing the checks and balances, will take note that: "It will be wonderful if the Elected President and the Prime Minister can be playmates, that means they can play and work together; but I think it will be difficult if they get into a stalemate; and it will be disastrous if the Prime Minister gets checkmated!"”
“Second, on the key public service appointments, I would like to suggest that there may be a conflict situation to accord the President veto powers in the appointments of some of the following key public service personnel: (i) Members of the Armed Forces Council; (ii) Chief of the Defence Force; (iii) Chiefs of the Air Force, Army and Navy; and (iv) The Commissioner of Police. Sir, I feel that these appointments should be the prerogative of the Government, particularly as they pertain to internal and external defence which are very critical operational matters. In the event of emergency, I do not think we can afford an ambiguous situation where the President has veto control over the key appointments in the defence and police forces. Just imagine, how chaotic it would be if our defence forces are immobilised by squabbles between the Prime Minister and the Elected President on such critical appointments during a national crisis. The third area is in the size and composition of the Council of Presidential Advisors. The current proposal is to allow the Chairman of PSC to nominate two members while the Elected President will nominate two members and the Prime Minister two other members. Under this structure, we are making the Chairman of PSC a very important political factor, in fact, a power broker. I presume it is not the intent to make him so, nor is it desirable. I would like to suggest that instead of the Chairman, PSC nominating two members, we perhaps should have four members who, by definition, would become Members of the Council of the Presidential Advisors and they are quite independent persons. The four persons I have in mind, Sir, are Chairman PSC, the Chief Justice, Mr Speaker yourself, and perhaps the Auditor-General.”
“Based on the concept that the Government should have full operational and executive responsibility, and as the final details will be scrutinised by a Select Committee, may I request the First Deputy Prime Minister to consider some of the following comments. First, on the appointments in statutory boards. Among the proposed statutory boards where the President will be having veto power, I feel that the following should not be included. I agree with Dr Aline Wong that these boards are non-financial institutions. They are: Housing and Development Board; Jurong Town Corporation; Port of Singapore Authority; Public Utilities Board; and the Telecommunication Authority of Singapore. Sir, as I said, these boards are non-financial institutions. They are basically operating organisations to take charge of the provision of key services and facilities for Singapore. I feel that therefore they do not need to be overseen by the Elected President. Their assets are mostly immovable which cannot be easily liquidated or sold. They may have some revenue surpluses but these are not substantial and there is no reason for them to accumulate substantial reserves. In fact, if they do, they are probably overcharging the consumers. Hence, to avoid paralysing these statutory boards in the provision of essential services, I feel that there is no need for a Presidential veto on the appointment to these boards. Moreover, as was said by Dr Wong earlier, some, if not all of these boards, would eventually be privatised to become listed companies in the future.”
“The phrase "checks and balances" connotates that there are a few opposing forces counterbalancing each other, such as the President, the Senate and the Congress in the US. I do not think this is the case here. The Prime Minister and his Government are obviously in charge. Executive powers rest essentially with the Government. There are some safeguard powers which will be vested in the Elected President, but the balance of power is clearly in the favour of the Government, and I think this is right. The analogy I would like to use would be the Chairman and the Managing Director of a company called Singapore Inc. The people are the shareholders of this Singapore Inc. They elect a President who is wise, experienced and highly respected as a non-executive Chairman, that is, the Elected President. Then they separately choose a Managing Director who will be the Chief Executive Officer, someone who is dynamic, energetic, visionary, has guts, etc. - all the critical and good points of leadership. He will be the Prime Minister. The aims and objectives of this concept of the Elected President are very honourable and well-intended indeed. In fact, it is extremely laudable of the Government to want to voluntarily give up powers to create a better and more stable political system in Singapore. If I may articulate my only main concern, Sir. I am concerned that the new format of having an Elected President may lead to a paralysis of the Government in situations of conflict. To avoid this, it should be spelt out clearly with no tinge of doubt, that executive powers rest solely in the hands of the Government. All operational and executive powers are under their charge. The Elected President's role is to exercise, where necessary, and hopefully very sparingly, the veto powers.”
“Mr Speaker, Sir, it is obvious that this Constitutional Amendment Bill and the accompanying White Paper have been prepared with much care and attention, and also after much deliberation. It has to be, as the consequences are extremely far-reaching, especially for the Government and the people. Sir, I support the principal concept of the proposal, which is to provide additional safeguard against the indiscriminate use of the reserves and preserve the integrity of the public service. Having a good government is very critical. Nepotism and flagrant disregard of the use of public funds will lead to the ruin of a nation. Examples of countries which have suffered under such mismanagement are abound. The impact of bad government affects everybody. The confidence in the country is reflected very much in the stock market which is an excellent barometer of the health of a nation. Government can do cover-ups but no government can cover up market forces. For example, in the Philippines, Sir, the average Price Earning Ratios, commonly called P/E ratios, of the listed companies in the Makati Stock Exchange are between 3 and 4, which means that local and foreign shareholders would be prepared to invest in stocks with a three to four year pay-back period. Whereas in comparison, the P/E ratios of Singapore companies are now in the range of about 12 to 15, which is about three or four times those of the Philippines. If you compare to Japan, the P/E ratios in Japan were in fact in the high 50s, but the Gulf crisis brings it down to the 30s now. It was often described that the concept of an Elected President allows for checks and balances against the Government.”
“The Government has yet to announce its plans on how it is going to privatise the wet markets but there is much concern already voiced at the ground. May I ask the Ministry responsible that, in finalising the plans for the privatisation of the wet markets, they should ensure that the livelihood of the hawkers and stallholders be safeguarded. Sir, I support the motion. 3.00 pm [Mr Deputy Speaker (Mr Lim Boon Heng) in the Chair]”
“While a government monopoly can be controlled in terms of its pricing of products and services, a privatised monopoly may be overly driven by the profit motive which can therefore lead to drastic price increases. Whenever a government agency is privatised, we should generally retain the regulatory functions with the government, while more than one operational unit should be encouraged to be formed so as to create healthy competition. Again, for example, there may be a need for a commercial TV channel to be approved to provide some competition or alternative to a privatised SBC. Sir, I wish to end by touching on one other area of privatisation, and that is the proposed privatisation of the HDB wet markets. Dr Hong Hai has once described our wet markets as a "beloved institution" of the Singapore housewives. The general downtrun in the business volume in wet markets is a trend that probably will be hard for us to stop as the younger generation is more affluent and better educated working mothers would be less keen to step into the wet markets and shop there. However, there has been much concern expressed by the stallholders on the privatisation of the wet markets. This probably means that when it gets privatised, an operator will be bidding for the running of the entire market. After winning the tender, the operator will then have the right to increase rental charges of the stalls, or they may even dismiss the older stallholders and bring in new ones. The livelihood of these stallholders will be affected. Moreover, the higher rental charges could be passed on as higher prices of goods sold to the consumers, which is to the populace at large.”
“The percentage is much higher in a typical state-managed country. For example, in Eastern Europe, over 90% of Poland's non-agricultural sector is stated-owned or state-controlled. Similarly, other states such as Hungary are also in the high 80s. I do not think any study has been done on how much of Singapore's productive capital is state-owned or state-controlled. A rough estimate would be on the basis of manpower employed. The Government and Government agencies employ over 10% of the total workforce of Singapore. If we were to include the state-owned or state-controlled companies under the Temasek Holdings group, such as Singapore Airlines and DBS Bank, I would estimate the figure to be between 15-20%. Like Britain, I feel we should bring the figure down to about 8-10%. The Government has announced its intention to privatise the Singapore Telecom and PUB. In addition, the Singapore Broadcasting Corporation (SBC) has also invited proposals regarding its privatisation. These are laudable measures. For example, the privatisation of SBC will enable it to adopt a more flexible and appropriate compensation scheme for their staff. We know that star SBC actors and actresses are lowly paid as compared to their Hong Kong counterparts purely because SBC has to follow Government pay scales. However, in privatising the various Government agencies, may I caution that care should be taken in three aspects: (1) avoid the creation of privatised monopolies; (2) be watchful over potential price increases of essential services; and (3) the need to provide re-deployment or re-training of staff arising from possible job redundancies. Sir, I feel that the creation of a privatised monopoly is a very dangerous move.”
“Such strategic alliances are well-known in the world's car industry, for example, the Chrysler-Mitsubishi-Hyundai alliance; the Ford-Mazda-Volkswagen alliance, and the General Motors-Daewoo-Nissan alliance. Similarly, Singapore companies can seek out alliances with compatible business groups in the other countries in this region, such as in Indonesia, Malaysia, Hong Kong, Taiwan or elsewhere. The Privatisation Process. Privatisation has been highly visible and in vogue in the 1980s in Western Europe. The drive was led by Prime Minister Margaret Thatcher government in Britain. Mrs Thatcher showed the way, as evidenced by the beneficial results of the change in the balance between government and the pri- vate sector in determining where a nation's economic productivity is derived. Experience around the world has demonstrated that human talent, innovation and creativity are basic to development; and human talent and effort to improve and adapt comes from the presence of incentives and rewards. Hence, growth and progress do not come from building huge monuments, factories, machines, dams or power plants; it comes from simply human effort. People have to be given incentives and rewards. This explains the eventual realisation of the failure of the communist system. Similarly, it explains the sudden recognition in the Western Bloc of the importance of the private sector as a partner with the Government in development. It is reported in the 70th issue of "Economic Impact" that in a typical modern capitalist country, a relatively small portion of the ownership of productive capital is in the hands of the government. In the United States, this figure is only 2%. In Britain, the Thatcher Government went from a rather high figure of 15-20%, down to about 8%.”
“In this regard, I fully agree with Mr Schutz Lee who wrote in the Weekend 2-3 June edition of Business Times where he stated that "Entrepreneurship is Singapore's next frontier". He also commented that a shortage of indigenous industrial entrepreneurs threatens the Republic's long term economic viability. This is indeed a useful bit of reading for our officials at the Ministry of Trade and Indus- try and at the Economic Development Board. To complement the regionalisation concept, I believe that local companies and entrepreneurs have to play a pivotal role. I honestly feel that local companies and businessmen have to re-orientate their thinking of perpetually crying out for governmental support and subsidies. They have to start to think regionally. From the first day when they start their businesses, local entrepreneurs should not be too parochial and inward-looking. While subsidies and grants are helpful in the initial formative period, our entrepreneurs should quickly develop a regional business strategy that weans them from dependence on Government support and enables them to compete effectively in the wider world of the regional markets. Several of our local and larger companies are well-placed to move into regional markets, and indeed some have already done so. The main constraints to growth for Singapore today are manpower and land. However, capital is not a constraint. I feel that local companies should start to seriously consider venturing into strategic business alliances amongst themselves in the first instance, and then with appropriate partners in the other countries in the region.”
“It has taken us great pains and years to foster close ties and goodwill with our ASEAN neighbours. Sir, I feel that to globalise Singapore is a very nebulous concept. Perhaps it is also too ambitious. A more tangible idea is actually to regionalise. I am totally in favour of the idea of plugging Singapore into the Asia-Pacific growth region. For this strategy to succeed, we have to promote the following areas: First, continue to foster better understanding and relations with the other countries in the region, namely, the other ASEAN countries, Hong Kong, China, India, Taiwan, Australia and New Zealand and perhaps at a later stage the Indochina nations. The basic tenet here is that for economic growth to happen, the fundamental prerequisite is a politically stable region. Hence, instead of the triangular growth concept, Singapore should become the hub with spokes reaching out to other countries in the Asia-Pacific region. This I call the "Hub & Spokes" growth concept. Second, encourage greater private sector participation in Singapore and for the private sector to reach out to the region. In this respect, the Government has to urgently look into two aspects: (a) promotion of a regional entrepreneurship, and (b) hasten the process of privatisation of Government related companies and agencies. Promotion of Regional Entrepreneurship. It has been said that globalization or regionalisation is not an easy concept to grasp and implement, because it is more of a business concept (ie, how you do business), rather than a geographic concept (ie, where you do business). What this means is that while the Government can help to stimulate the process, the impetus and action have to come from the business community.”
“Mr Speaker, Sir, I wish to join my colleagues here in expressing our thanks to the President for his Speech delivered on behalf of the Government. Sir, I wish to focus my remarks on the future development of Singapore as a business hub of the region and on issues relating to the proposed privatisation programme to be undertaken by the Government. First on Singapore as a strategic business hub in the region. In the addendum of the Ministry of Trade and Industry, it is clearly spelt out that Singapore has benefitted by integrating our economy with the region. Our city state has to a major extent been a strategic business centre for the region. Since its foundation in 1819 as a trading post, it has evolved into a broad-based economy, expanding in tandem with the booming Asia-Pacific region. Recently, there has been much call for Singapore to become a global business and trading centre. Yesterday, we heard a spirited proposal by Dr Tan Cheng Bock, the Member for Ayer Rajah, for Singapore to form a northern "Growth Triangle" with Taiwan and Hong Kong. This is to complement and support the southern "Growth Triangle" of Singapore-Johor-Batam. Sir, I support Dr Tan's proposal, only to the extent that we should make it inevitable for the West to come East. However, I feel that Taiwan and Hong Kong are already prospering economies, well able to attract foreign investments on their own. What we should focus on is to work closer with our immediate neighbours, so that the ASEAN countries can be promoted as a region as a whole. Moreover, too close a liaison between Singapore-Hong Kong-Taiwan, though a natural development in view of our Confucius background, will give rise to suspicion in our neighbours.”
“Sir, both these Newsletter and Information Counter can be done by the EDB or by the new SME agency which the Government can consider setting up. Otherwise, we can allow a local professional body called the Association of Small and Medium-sized Enterprises (ASME) to undertake these tasks with some Government sponsorship. Sir, contrary to several people's common belief, the small firms can make significant contributions to the growth of the economy. I must say that small firms can be effective in our economic development. In an article in the March 1990 issue of "Look Japan", they have called the small firms in Japan the "Little Miracles". May I quote from this article. It says that: "Small businesses have achieved a far more prominent position in the Japanese economy than have their counterparts in UK, or any other developed economy. Japanese economic prosperity in recent years can be linked directly to the vitality of small and mediums size businesses." Further on, it also mentioned that: "Small businesses now attract wide attention as a major corporate segment because of their ability to utilize tight capital effectively, to operate in a variety of diverse fields and, thereby, to underpin the buoyant growth of the Japanese economy." Sir, in view of the substantial contributions that SMEs can play toward Singapore's economic development, I would like to ask the Minister what are the major new measures undertaken to assist SMEs, and what are the future plans to further foster their growth.”
“Sir, this issue of promotion and support of local small and medium-sized enterprises, generally called in Singapore as SMEs, has attracted much interest and attention in every year's debate. At the Budget debate last week, many MPs had spoken up in support of local firms. The Public Accounts Committee, in its report of December 1989, had also addressed the subject of assistance to SMEs. Today, again MPs have spoken in support of SMEs. Sir, we all know that the EDB has established a SME Division which has initiated several measures to assist local companies. However, I must say that there is still a very prevalent perception gap that not enough has been done for local firms. Sir, like Dr Wong Kwei Cheong, I fully support the call to set up a separate agency to look after specifically the interests of SMEs. There are some 65,000 SMEs in Singapore. To be able to properly reach out to them and to better understand their problems, a separate agency would be best suited to undertake this task. I note that in Japan a similar small and medium enterprise agency is in existence. Sir, in addition, I have two suggestions as to how we can better achieve more coverage in terms of reaching out to SMEs. Firstly, I would like the Minister to consider, through a government agency, to publish a monthly newsletter to keep SMEs apprised of news, market information and incentives that are being created for them. This newsletter can also be self-funding through advertisements taken up by both local firms and MNCs. The second suggestion is to set up a Public Information Counter to which the management of local firms can approach to get information and other assistance.”
“You have got six categories in item (5) and we see that in each category you only have got the capacity. I think it is a well known fact that some cars are cheaper than other cars. Of course, those who bid, say, for $10,000 and opt to buy an European car which is more expensive, he will proportionately pay less, as compared to the cheaper Japanese or Korean models. That is in fact already an inequity there, because proportion-wise, the expensive car will pay a lower percentage of the quota premium. Also in regard to item (5), I can see that there is an inequity there.”
“The last point is that I am quite attracted to the idea of a weekend car. Perhaps in this case the Minister can consider having special distinguishing features for weekend cars. This is not to say that they are going to be painted with tricolours or rainbow colours, but at least they have special number plates or colour plates whereby if they are used on non-weekend periods they may be subject to fine by the Traffic Police. Otherwise, they can be used on weekends, or we may even consider that these cars can normally be used in other parts of Singapore except for going into the CBD during weekdays. There are many people who are not working, like housewives and various categories of people who need a car to fetch their children to school or to do marketing but they do not need to drive a car to work. Such category of people can then be given a special label or special registration number whereby they can use their cars at certain periods. Mr Chiam See Tong (Potong Pasir): Sir, I would first like to ask the Minister a very basic question. His Ministry has opted to tackle the road congestion problem by curbing car ownership. Has his Ministry in fact studied all remedies in relation to car usage and to keep down car ownership? Has his Ministry made a thorough study to opt for this system at the moment? Sir, the quota system, of course, is liable to mistakes. The Government could make a mistake on the estimation of the quota. Is his Ministry willing to make it cumulative in this quota system? Assuming that this year you have a lower quota, can this excess be carried over to the next year? I wonder whether the Minister will say that, in fact, there is already an inherent inequity in regard to items (4) and (5).”
“Sir, may I ask a few questions as well? First, I think the Minister has not said this, but I presume that the quota that is being bid is transferable during the 6-month period. In this case, in the initial stage of the implementation of the scheme where the quota is being given every three months, I am afraid there could be certain cartel groups that may want to try to profiteer from the scheme by cornering some blocks of quotas and then sell them off at a higher price. May I ask the Minister whether he will take special care to monitor such situations in the earlier period, and especially if he could consider whether the quarterly bidding period can be reduced to a monthly quota as soon as possible, even on a different category basis instead of doing all at the same time. In this way, the chances of cartels trying to profiteer from the quota scheme would be minimised. The second question is that though the validity of the quota is for six months, there are people who have booked for cars that may take more than six months to be delivered. This is not due to any fault of their own, and they find that their certificate has lapsed before their cars are delivered. Could such special cases be considered for extension? The other issue I would like to ask the Minister is this. I just came back from Hong Kong and I am very impressed by the city planning in Hong Kong, whereby they have inter-connecting linkways, passages, between buildings and shopping centres, which minimise the number of pedestrian traffic on the ground level, thereby not adding to the congestion on the roads. Could we not have the same arrangement whereby pedestrians are taken away from the roads and they either go above ground or below ground in Singapore?”
“I believe that the idea of having one class of quota would drive up prices, because those who can afford better cars naturally can afford to bid higher prices. Therefore, the average price of the quotas would be definitely higher. This bidding process, therefore, will drive up the whole cost of owning a car, which should also make it probably out of reach for the ordinary people. This quota system then becomes very inequitable. Many people, such as salesmen, small merchants, shopkeepers and fledging entrepreneurs will need private cars to get around. Hence, they too should have access to a share of the quota. Extra care therefore should be taken to ensure that the quota system, if implemented, does not cause an increased cost in the ownership of cars, whereby the roads would become only the private playground or freeways of the rich. I would like to suggest that if the quota system is being seriously considered by the Government, it should look into the sub-classification of the quota. The quota can then be allocated to different capacities of vehicles. For example, we can have four classes: those below 1,000 cc; those from 1,000 to 1,600 cc; those from 1,600 to 2,000 cc; and then those from 2,000 cc and above. In this manner, at least if there is a quota in place, the pricing of the quotas will not be biased towards those who can afford more expensive cars, and therefore you will see more flashy, more expensive cars on the road. The road should be accessible and used by all classes of people. On this note, I therefore suggest that the Government seriously consider how the scheme should be implemented before they implement the quota system.”