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.”
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“Mr Speaker, Sir, I would like to seek one clarification. May I ask the Minister whether after an amount has been set aside by CPF contribution by a member, and he has occasion to need to use his money as a lump sum, would any allowance be given to him to use this money as a lump sum? For example, he might want to use the money to purchase an HDB flat or for some very urgent personal expenses?”
“Sir, I believe that we should not make it such that a person who has been involved in two failed companies should have a stigma placed on him. Entrepreneurs have to try again and again. They start new businesses and invariably they run companies which are always at a higher risk. Even mature established companies have their ups and downs. Very often tough entrepreneurs take failures in their stride. They quickly pick up the pieces and start all over again. Hence, I will say that we should not limit their chances of success by just saying that they should have only two tries. In order not to stifle entrepreneurship in Singapore, I would like to see the provisions of section 149 amended to tackle only those managers or directors who are found to be fraudulent. Ordinarily, those innocent directors and managers who have done their best to run their companies should not be taken to task. Therefore, Sir, I believe many people feel that the provision in this section 149 should be amended such that it should not be automatic, and only those people who are proven or found to be fraudulent should be taken to task. In this light, I support the Minister's proposal for a new provision which enables section 149 to exempt certain companies which, in his view, are venture capital industries to be gazetted by him. I hope he could give us more details on how he proposes to identify companies which are in this class, and whether he could take a more liberal attitude in terms of classifying companies which may be exempted from section 149. In view of the comments made by my colleagues and I welcome the proposal by the Minister to commit this Bill to a Select Committee which I hope will listen to the many appeals that have been made to this House.”
“Mr Speaker, Sir, I would also like to make a few remarks on this Companies (Amendment) Bill. Firstly, I would like to voice my general support for the various amendments proposed in the Bill, particularly the requirement to furnish more information in the financial reports of companies and also the provision for a company in financial difficulty to be put under judicial management pending a restructuring that would lead to the revival of the company. However, Sir, I would like to express my disappointment over one section of the Bill, and that is, the proposed amendment to section 149. I believe that, in the first instance, section 149 is over-cumbersome and unnecessarily harsh to directors and managers. The provisions of this section act as a deterrent to local entrepreneurs to start new firms. In addition, corporate officers who are assigned to sit on the boards of companies would hesitate or be discouraged from accepting such appointments. As the Minister has said, the blame for the failure of companies often cannot be attributed to the directors or even to the management. Sometimes market conditions change so fast that remedial actions could not be taken in time. The amendments to section 149 now seek to limit the liability period to three years. But if we ask any director or manager, I feel that most of them would think that this is little added comfort to them. Innocent directors and managers who already have one insolvent liquidated company under their name will have to continue working with the uncomfortable feeling that section 149 is a tightening noose around their necks. They cannot afford to have just one more failure in their hands.”
“Sir, may I ask the Minister of State whether he is aware that very large numbers of HDB flats are being built in Thomson Constituency? There is one big estate called Bishan East, and there are few other smaller estates called Bishan West, Bishan North and the Soon Foo Estate. In view of this growing number of HDB estates and the large increase in the number of residents, would the Minister of State consider having a polyclinic or outpatient clinic in Thomson Constituency?”
“The Ministry of Community Development should start now to draw up a long-term plan so that by the year 1999 we can achieve our aim of becoming an economically, as well as culturally, progressive society.”
“One such move is the recent open air performances by the Singapore Symphony Orchestra at the Botanical Gardens. Such performances are quite popular with the people, especially with the young. So I would like to suggest that similarly other local artists or musicians or music groups such as the Chinese Xinyao groups should conduct exhibitions, talks or performances at the CCs, in the schools, our institutes of higher learning and even in HDB estates. Similarly, Sir, local artists could also organize such forms of exhibition or talks to enable our people to have a better understanding of paintings of various forms. Lastly, I would like to suggest that the Acting Minister should also consider giving some form of financial assistance when such groups organize exhibitions or performances at open grounds in the HDB estates, and the CCs. There are also many self-supporting art groups or music groups which find it very hard to sustain themselves because financially they are quite weak. I would like ask the Minister to consider whether there should be some form of financial assistance given to such groups so that they can sustain their activities and maintain the level of programmes and works that they can do. Some of these groups might even find it difficult to have a simple or a regular office for them to hold their meetings and conduct activities. Sir, perhaps the Minister would like to consider some form of assistance in kind such as providing free office space or rooms for them to hold exhibitions, or at least some office space for them to call their own premises where they can gather together. The promotion of arts is a long-term process.”
“We do now have quite active promotion of arts at the very lowest level which is the kindergarten classes. Many children attend art classes conducted by the People's Association community centres or other educational centres. Sir, in the schools it is also correct that emphasis should be given to the core subjects, such as sciences, mathematics and physics. But I feel that some attention should also be given in the school curriculum to topics which are related to the arts, such as appreciation of various forms of painting and appreciation of music. This will provide a good foundation for our young children. When they grow older, they will be able to appreciate the finer things in life. To assist in the training of children, I do feel that it is important to train a sufficient core of teachers who could be able to teach art and music subjects in the schools. Therefore, I would like to propose that perhaps the Institute of Education could have a Department of Arts in its Institute. Sir, the Member for Ulu Pandan during the Budget debate has suggested that there should also be an Arts College to be set up. I support this suggestion. I read in the papers a few months ago that there was a request to convert the old St Joseph's Institution into an Art college. May I ask the Minister what is the status of this proposal? Such a college will allow young budding artists and musicians to further develop their skills and techniques. Sir, the next point I would like to raise is how to bring the arts to the common people. To bring the arts to the common people, I think there should be a broad pool of local performers who could conduct many performances so that there is a widespread enrichment of the lives of our people.”
“Mr Deputy Speaker, Sir, my colleagues have covered various topics concerning day-care centres community services and sports. I shall confine my comments, to just one topic, which is the promotion of the arts in Singapore. I have looked through the Budget for this financial year for references to any programmes on the promotion of the arts. What I find is a brief reference under the Cultural Programme which states that the objective of the programme is "to make arts accessible to the people and promote the creation and development of a national cultural iden- tity". What I was hoping for is to find a specific programme that is tailored specially for the promotion of arts. As compared to funds allocated for economic development, I believe the amount of money to be spent on art development is relatively small. This large differential, I believe of course is correct because the emphasis should definitely be first given to our economic progress and our economic growth. But I do feel that we should at the same time spend some time on efforts to develop the arts. Sir, I have a few points to make concerning the subject. First, I feel that, like having a long-term economic development programme, we should also have a similar comprehensive long-term plan for the promotion and development of the arts. Talking about arts promotion is not a new subject. There have been various calls and pleas for the promotion of arts for the past 10 to 20 years. But I think the Minister should at least consider setting up a group or committee who can spend some time to draw up a comprehensive plan for the promotion of arts in Singapore. The following are some elements which I feel should be incorporated into this long-term arts development plan. First, to promote arts at all levels.”
“If the surplus of vacant factories is high, I would like to ask the Acting Minister whether he would consider reducing the JTC lease or rental rates so that more of these vacant units could be taken up. Vacant factory units is a waste and there is a holding cost to JTC. As a step to help local companies to cut costs further, the Minister should look into the possibility of reducing JTC rental rates. Sir, I would also like to suggest that the JTC should, in fact, take a lead role as a price leader on factory rental rates. Its role should be to keep the rates of factory rentals low instead of being merely a price follower. For comparison purposes, could I ask the Minister what are the rental rates of similar factories in the private sector in Singapore and the factory rental rates of our competitor countries such as Hong Kong and Taiwan?”
“Sir, a local newspaper recently reported that a renowned US economist has predicted that the US and the world economy will see a period of sustained economic growth with dropping oil prices. He is quoted as saying that the cheaper oil is singly the most positive event for the world economy. He believes that basically it reverses the oil shocks of the 1970s. He is optimistic that US growth offers hope for a better outlook next year and the following 18 months. Sir, there is another report by a reputabble magazine called the Business Week International, February 10th issue, where the leading article was on "The new world of oil". May I read an extract from the article? It says: 'Cheaper oil means faster growth world-wide. Cheap oil means much more than cheap energy for the world. It is a double shot of vitamin B for the industrial countries, the biggest boost we have in more than a decade. Growth forecasts are going up. Trade deficits and interest rates are heading down and inflation seems dead.' Sir, these are some of the optimistic signs that I would like to look for, so as to inject more faith in ourselves, in our economy. I would like to ask the Minister, that from his Ministry's assessment, whether falling oil prices would have a net beneficial effect on Singapore. Sir, moving on to a different topic, I would like to get some clarification from the Acting Minister on the Jurong Town Corporation. I would like to ask the Acting Minister if he could tell us the current total number of vacant flatted factories and standard factories that have been completed or will soon be completed. In comparison with this supply of vacant flatted factories and standard factories, what is the projected demand?”
“Mr Speaker, Sir, our people are most concerned about the present economic downturn. Many people are asking when we could see the start of an upturn and what are the signs of economic recovery. It has been said that economic recovery will depend on both internal and external factors. Internally, we have already introduced measures to make ourselves competitive again. Growth therefore will depend to a great extent on external factors. Externally, we are keen to look out for signs that good times could be coming. Sir, indeed there may be some faint signs of silver linings at the horizon. The positive signs are that world-wide interest rates are low, inflation is under control and commodity prices are falling. One of the most significant recent developments that may have a sharp impact on the world economic recovery is the sharp drop in crude oil prices. Spot oil prices have dropped from a peak of US$37 per barrel in 1980 to US$29 per barrel in 1983. In the last few months, it dropped to below US$12 per barrel. As the OPEC countries are encountering difficulty in reaching a consensus on oil production volume and prices, crude oil prices could remain low. Sir, I would like to ask the Acting Minister for Trade and Industry what is his Ministry's assessment on the impact of falling oil prices on Singapore's economy. On the positive side, falling oil prices will lower domestic inflation. It will lower the cost of fuel oil and electricity and it will lower operating costs for Singapore companies. However, on the negative side, falling oil prices will adversely affect our oil producing neighbours such as Malaysia and Indonesia, which are our major trading partners.”
“These include direct marketing techniques, joint promotions with overseas tour operators and wholesalers, and a world-wide advertising and public relations programme. STPB will also bid for more and bigger conventions and meetings to be held in Singapore. It has identified over 200 such meetings in the next two years. It will bid for these with the help of local professional associations. Some of these conventions involve as many as 10,000 delegates. The total number of overseas participants in convention-related events is expected to reach about 200,000 in 1986, an increase of 13-14% over 1985. The other important area is product development, which is the development of tourist attractions in Singapore. STPB will accelerate development projects which will stimulate more tourist arrivals, in par- ticular those which generate repeat visits, and also extend visitors' length of stay. This will include recreating elements that give Singapore its charm and mystique. The aim is to create a stronger image for Singapore as an attractive value-for-money tourist destination. Projects in the pipeline include the enhancement of existing attractions such as Haw Par Villa, Singapore River, Fort Canning Park and Sentosa. In addition, projects are being undertaken to conserve and revitalize historical sites such as Chinatown, Little India, Kampong Glam and the colonial city centre. In the long term, a possible new key attraction will be a theme park.”
“Sir, has the Acting Minister any intention to introduce statistics called flash estimates that have been used in the US which give advance notice as to how the economy is performing? BG Lee Hsien Loong: Mr Speaker, Sir, the January statistics which I just gave you constitute a flash estimate. Flash estimates are not very reliable. They give you a quick first-feel. If need be, particularly at critical times, we will release them. TOURISM (Measures to promote) 9. Dr Ow Chin Hock asked the Acting Minister for Trade and Industry (a) what is the projected occupancy rate for hotels and number of tourist arrivals for 1986, 1987 and 1988; (b) what measures have been taken to promote tourism; and (c) what is the latest status of tourist development projects. The Minister of State for Trade and Industry (Dr Lee Boon Yang) (for the Acting Minister for Trade and Industry): Mr Speaker, Sir, I am answering on behalf of my Minister. The projection for tourist arrivals in 1986 is 3.13 million; for 1987, 3.25 million; and for 1988, 3.41 million. As the number of hotel rooms in Singapore will still be increasing rapidly over the next few years, the Singapore Tourist Promotion Board projects that the occupancy rate of hotels will probably decline from 55% in 1986 to 50% in 1988. To promote tourism, the Singapore Tourist Promotion Board will step up its marketing and product development efforts. Over the next three years, STPB will spend about $22 million annually to promote Singapore as a tourist destination in key markets in Asia, Europe, North America and Oceania. These are markets which have been identified to have growth potential. STPB's strategy is to concentrate on promotion efforts that will achieve immediate results. New programmes have been drawn up to achieve this.”
“Sir, in view of the excellent and clear answers given by the Minister, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $170,525,400 for Head N ordered to stand part of the Main Estimates. The sum of $1,048,560,600 for Head N ordered to stand part of the Development Estimates. Head P -”
“The CIR adopts the practice of taxing in full the difference between the market value and the option price at the point when the employee's stock option is exercised. Employees taking up stock options incur a risk as the gains can only be realized in the medium or long term and only when their companies finally succeed. To account for this risk, the Economic Committee has proposed that for approved share option schemes, the gains made by employees should be progressively exempted from tax according to the length of time the shares have been held. (3) With a greater number of private companies being set up, it is inevitable that some companies will encounter difficulties and face the threat of failure. Some of these companies may be inherently viable but are only facing short-term business problems. To help such companies, the Government should consider introducing legislation similar to the Chapter 11 model of the US. Such a legislation will enable companies in temporary financial difficulties to be shielded from forced closures by creditors while they take measures to reorganize and to restructure their operations. (4) Lastly, the availability of equity capital from a second-tier stock market, or commonly called the USM, will enable small growing local firms to raise public funds for funding their expansion plans. While mindful that prudent standards should be set to regulate the USM, I have suggested during the Budget debate that the rules and regulations for this second-tier market should not be too restrictive as to render the market ineffective. Sir, I hope the Minister for Finance will look into the above suggestions. If adopted, I believe they will greatly assist private enterprise to thrive in Singapore.”
“The first step could be to find a channel or mechanism whereby there is greater consultation between the Government and the private sector. I have suggested previously that the Economic Committee should be retained for this purpose. Alternatively, the Ministry of Finance could set up a Government-Business Sector Consultative Committee to provide a forum for regular consultations and discussions between the two groups. The form of the mechanism is not important. What is important is that there should be a channel, or a mechanism, whereby regular consultations could be made between the Government and the business sector. In addition, I would like to request the Minister to consider the following measures which would encourage wider participation by local enterprises: (1) To look into reducing the Government regulations that might discourage the formation or hinder the operation of private companies. One example that comes to mind is the "double liquidation" restriction in section 149 of the Companies Act. This section should be either repealed or modified. (2) To encourage employees to feel more committed to their companies. Companies should give employees a share in the ownership of the companies by offering them employee stock option scheme. This suggestion was made by the First Deputy Prime Minister in November last year. In the US, employee stock options play a key role in attracting and motivating the staff of small growing companies to work hard as they own a share of their companies. The employees can share in the benefits when their companies succeed. However, at present, the tax law acts as a disincentive for employees to take up stock options.”
“Mr Speaker, Sir, I beg to move That the sum to be allocated for Head N be reduced by $10 in respect of Subhead NA-01 Object Group 1100 of the Main Estimates. Sir, the Government has declared that the engine for growth in the future is the private sector. This objective was first mentioned in last year's Budget when the then Minister for Finance said that "In the 1980s, the engine of economic development should be the private sector and not the Government." The Economic Committee also supported this new policy direction. This point is also reinforced by the present Minister for Finance when he stated in this year's Budget that "In the long term, we must all work together to maximize our potential... Our entire economic environment must be made favourable for business and enterprise." The move towards the encouragement of private enterprise, deregulation and privatization of Government companies is welcomed by the private sector. However, it is causing some concern, Sir, among the managements and employees of the Government-owned companies, as it is still not clear what forms of privatization will the Government adopt. This is particularly the case for those companies which are substantially owned by the Government and those which are not publicly listed. It would be helpful if the Minister could make a comprehensive statement on the Government's plans and intentions in its privatization programme as early as possible. As the private sector is supposed to spearhead future growth, I feel that the Minister should look into introducing certain measures which will help the private sector to have a wider role and participation in the economy.”
“Mr Deputy Speaker, Sir, can I ask a point of clarification? If a flat owner wants the floor levels of the old style where the living room floor is higher than the kitchen floor. Then, if after renovation, he makes the living room floor slightly higher than the kitchen floor level. In that case will he be allowed to keep the tiling? The reason why I am asking this is that in those cases where flat owners have actually made the living room floor level slightly higher than the kitchen floor level, they have been asked to remove the new tiling that has been laid. Moreover, the contractor who did the renovation has been debarred.”
“I am not sure whether other Members also encounter the same problem in their estates. I am sure this is something that the Minister could provide good reasons for the HDB having done that. I wish the Minister could give us a good reply.”
“I know at the moment the HDB can provide mobile toilets for such functions that are being organized, but mobile toilets are very often inconvenient and also quite untidy at times. Sir, I think the fear that HDB has in providing toilets in void decks is, perhaps, it could pose a difficult maintenance problem. But I believe our people are getting more civilized, more civic-minded. I think they are beginning to realize that they must keep their estates clean and that they want to have good facilities in their estates. They want to have good reputation for their estates. So if we do provide toilets in the void decks, I am sure they will do their best to keep their estates or the toilets clean. Sir, we have the case where the Ayer Rajah Constituency conducted a six-month pilot scheme for free weekend parking in their estate. I think my residents will be prepared to accept a six-month trial of having toilet facility being provided in the void decks. Sir, on a last point, which is on the design of flats. I find something quite inexplicable that happened in my constituency. There are, as I was told, two blocks in my constituency where the level of the flooring of the kitchen is higher than the level in the living area. This seems to be opposite from what we know normally, which is the kitchen should be lower in level compared to the living area, so that when you wash the floor, the water will not get into the living area. But somehow for some inexplicable reasons, HDB has now got a new concept, I believe, in having a higher level for the kitchen area and a slightly lower level for the living area. Perhaps the HDB is using my constituency as a test pilot scheme. I think most Members present in the House today would find this matter perhaps quite surprising.”
“At the moment, again as many people live in flats, I would like to ask the HDB to be more liberal in terms of allowing people to conduct small businesses in their flats. For example, in future many people may want to work at home in writing computer software programmes, in providing secretarial services or even just doing simple homecraft or cottage industry products. So long as these people are not disturbing their neighbours, are not creating too much noise, or too much waste material, or too much flow of human traffic, I would urge the HDB to allow such people to conduct business in the house. Related to this matter, many requests have been made, Sir, to allow HDB flat owners to install telex machines in their houses. This conceptually, I believe, is no different from a telephone. If a person could have a telephone in his house, why should he not be allowed to install a telex machine in his house so as to assist him in conducting small businesses? Sir, for HDB estates, one of the most important areas is the void decks below the blocks. This has become the centre of most activities in HDB estates. Void decks have been used for Malay weddings, for the Chinese to mourn the dead, conduct rites; even the RCs conduct many activities in the void decks. But there is one thing that is quite missing in the void decks, and that is they have no toilet facility. This is a request which many residents have referred to me and they suggested that perhaps the HDB should consider at least, for new blocks, to install or build toilets in void decks. This will allow people when they conduct some functions or activities in void decks to make it easier for them when the urgency calls.”
“Mr Speaker, Sir, I would like to make a few points and request some information from the Minister. As we know the HDB flats are probably one of the most prevalent sights in Singapore. Over 80% of our people live in HDB flats. So whatever the HDB does, it will have a profound impact on our lives. I would like to suggest to the Minister that when the HDB imposes or establishes any new policies or measures, it should be extra-sensitive in explaining to the people and to make sure that any adverse impact is minimized. Sir, at the moment, many people own HDB flats. Many people actually have paid up for their flats. Some of them might feel that it would be necessary for them to use their HDB flats as collateral for bank loans or as security against some form of guarantee. At present, as far as I am informed, the HDB has been quite restrictive in terms of giving approval for using HDB flats as collateral for loans or for security. I was told that only a few cases havebeen approved for use by HDB flat owners to have their flats used as collateral. This is important as most people now own HDB flats and to most people their flats could be their only fixed real assets. And for some of them, they might want to use their flats as a means to raise some money if they want to start small businesses. So if the HDB could be a little more flexible, a little more expeditious in terms of its rules or regulations in allowing people who have applied to use their flats as collateral, I am sure they will be very pleased. Then their flats become more valuable and banks could be more ready and more prepared to accept HDB flats as collateral for bank loans. So I am asking HDB to be more flexible in its rules.”
“What I like to suggest to the Ministry is that perhaps they should have a systematic way to comb through the reservists force and institute plans so as to upgrade, or at least redeploy, our reservists to maximize their potential contribution. Otherwise, those reservists who can do more and who are well qualified will feel quite demoralized each time they are called up for reservist training. This matter may not be critical during peace time but during war time I think each person should be deployed to his best possible usage.”
“Have there been many complaints of undue interruption or interference to the business of such companies and persons affected? Sir, as there is a slump in the construction sector at present, would the Ministry consider, instead of buying new equipment needed for its training purposes, whether it would look into buying or leasing the excess heavy equipment owned by contractors? This would serve two purposes. One is that the spare construction equipment which can be used in Mindef or for military training purposes, can now be utilized by leasing such spare equipment that is not being used in the construction sector. Secondly, it will help Mindef to cut down on its expenditure of equipment, in line with its current reduction in its defence budget. Lastly, on the more efficient deployment of reservists. At present, most male Singaporeans undergo their National Service training after completing their 'O' levels and 'A' levels. Subsequently, many of them proceed for further studies and become specialists or receive extensive training in specialized areas. Often many of these reservists find that although they are quite well qualified in their civilian jobs, they are not properly deployed in their reservist roles. For example, I was told of a case of a person who has a Ph.D in Orthopaedics. However, as a reservist, he is only a Lance Corporal serving as a motor mechanic. In addition, there are many people who are well qualified as managers or engineers in their civilian professions who are serving only as clerks or technicians as reservists.”
“Thank you, Sir. There are three areas under the Ministry of Defence which I would like to seek information from the Minister or the Minister of State who is present now. These three areas are: Open Mobilization, Civil Resource Mobilization and Deployment of Reservists. The concept of open mobilization has started more than a year ago. I would like to ask the Minister to give us a report on his Ministry's review of the effectiveness of open mobilization. Have there been significant improvements in the response rate with each subsequent open mobilization exercise conducted? I would also like to ask the Minister whether his Ministry will move towards using open mobilization approach and terminate the use of the silent mobilization method. To make mobilization exercises more realistic, I would like to suggest to the Ministry that in future exercises, the Ministry should try to avoid giving reservists to be activated any advance notice. It is a well-known fact among the reservists that when mobilization exercises are to be conducted, the units are usually informed in advance and somehow the reservists are given some forewarning that they might be recalled. I would suggest that to test the effectiveness of reservist units involved in such mobilization exercises, the Ministry should try its best to maintain utmost secrecy so that the units could be truly tested. Sir, on civil resource mobilization, I would also like to request the Minister to give us a report on his Ministry's review of the programme on civil resource mobilization. I would like to know how well the civil resource owners and operators of equipment and machinery have responded to activation exercises conducted so far.”
“Sir, may I be allowed to speak now and not to move my amendment later on?”
“This is a good test case on whether the Government will adopt an over-regulatory approach. For the USM to be effective, the conditions for companies to qualify for listing in the USM should not be too stringent. There should be a balance between control and flexibility. The key reason for the success of the similar Over-the-Counter (or OTC) market in the USA is precisely because of the flexibility of its rules and regulations. By its nature, the USM is a very speculative market. Therefore, certain regulations have to be imposed to protect investors. However, I would urge the Minister for Finance not to impose over-restrictive conditions so as to render USM ineffective. In addition, local investors, especially the small investors, should be carefully briefed and forewarned about the nature and the speculative aspects of the USM. Mr Speaker, Sir, the budget proposed by the Minister for Finance is generous and comprehensive. It is a budget designed to give a stimulative boost to our economy. For our common well-being, I hope that everyone, that is, the civil servant, the local businessman, and the private individual will join hands to make the new measures and policies work. 12.16 pm”
“What is needed is that they be given more discretion, so that they themselves can exercise more initiative and more flexibility in dealing with the public. This flexibility, Sir, is even more important during the present economic recession. Regulations invariably are hindrances or obstacles to local companies. They can be real cost burdens. Too many rules, red tape and procedural delays are real and invisible costs which can adversely affect the viability of local firms. The Government is keen to reduce operation costs for companies. It should also look into cutting down cost burdens caused by the various Government regulations. Sir, I would urge the Government to look seriously into this problem of over-regula- tion and its adverse effects. The first step has been taken by the formation of the committee to review Government regulations under the leadership of the Member for Jalan Besar, who is also the Minister of State for Trade and Industry. I hope the committee will look into eliminating outdated rules and regulations and also get rid of unnecessary or over-restrictive regulations. I also hope that the committee will enlist the support and assistance of the private sector in their work. The public should be encouraged to come forth in giving their views on regulations which should be reviewed or changed. Moreover, the work of the committee should not be a one-time effort, but it should be a committee which can maintain a constant vigilance over over-regulation, as otherwise such over-regulations or over-restrictive controls will stealthily creep in again. Sir, I would like to move on to the last item, which is on the unlisted stock market (USM). The Minister for Finance mentioned that during the year a second tier or an unlisted stock market will be set up.”
“We are aware of how the private sector members of the Committee went out of their way to mobilize their staff, called on their contacts and collectively drew on their knowledge and experience to help to find solutions to our economic problems. We should build upon this spirit of rapport attained between the private sector and the Government sector by the Economic Committee. Sir, I would like to move on to the topic of over-regulation. Somehow, over the years, we have the impression that there are more and more regulations being imposed. The Hon. Minister for Finance has spent a career in a private company. I think he understands this feeling among the people. Many people feel that we just have too many regulations. Every step we take, every move we make, we must be careful not to get a ticket. We are constantly told that we cannot do this and we cannot do that. So much so, Sir, that often it stifles initiative or, worse, it smothers our people's drive and entrepreneurship. Sir, I am not suggesting that there should be no regulations. In fact, many of our regulations are necessary. But what I would like to see is that there should be a balance between regulations and permitting private initiative. As the Government is promoting entrepreneurship among our people, I think a right move is to reduce any excessive regulatory controls that we have imposed on our people and companies. To be fair to the civil servants, they cannot be blamed for enforcing the laws. The situation of over- regulation is due more to the system that we have created. We should, in fact, be proud that we have a very efficient civil service. Most of our Government officers are hardworking and dedicated.”
“They are even discouraged from accepting a cup of coffee or lunch with private sector people with whom they have business dealings. By all means, I agree that the image and reputation for fairness and non-corruptibility of our civil service must be maintained. What I am suggesting is that civil servants at all levels should be encouraged to establish closer liaison and build up a better understanding with their private sector counterparts. An example is Japan where the bureaucracy and the business community have been able to work very closely together. Sir, the Minister for Education had at one time called on the civil servants to speak their minds and give their Ministers correct feedback on reactions to new Government policies or on the effects after the implementation of certain Government policies. How else can they feel the pulse of the ground reactions if they do not interact well enough or have no opportunity to interact with the local workers, professionals and businessmen? On the part of the private sector, they should adopt an honest and truthful approach in their dealings with the bureaucracy. They should not always take a pure commercial stance. They must think of the longer term. If they can earn the trust and confidence of the civil servants, their views and opinions will be valued and sought after. This is particularly important to them if later on there is a new policy to be implemented which will have adverse effects on their businesses. Then the local businessmen can find attentive and sympathetic ear among their civil service counterparts. A striking example of how the public and private sectors have cooperated extremely well together is the Economic Committee.”
“Minister for Finance has said in his Budget speech that the key priority for the coming year is to restore economic growth. The measures he has introduced in the budget for the new financial year is to gear towards helping companies to cut costs and maintain their competitiveness. Indeed, restoring economic growth has to be the key priority. Our unemployment rate has already reached 5% as at the end of 1985. Each year, 20,000 new entrants enter the labour market. If new jobs cannot be created soon enough, these new entrants will swell the ranks of the unemployed, adding another 1r-2% to our unemployment rate. If our young people could not find gainful employment after a long period of job searching, they will get disenchanted and restless. They will then find that it is no longer fun to have no work. The situation will become critical. It is therefore appropriate to focus on restoring economic growth. It is only through growth that new jobs can be created. As economic growth is the key priority, I feel that an essential condition for us to succeed is to ensure that the public sector and the private sector can work closely together to achieve this common objective. A new consensus has to be forged between the public sector and the private sector. I believe we have reached a certain stage of maturity where the public sector and the private sector no longer need to treat each other with suspicion. The civil service has a very strict code of conduct on how civil servants should deal with the private sector people. This is necessary as they have to protect themselves against being subject to undue influence or be seen to be less than fair or equal in their treatment of competing private com- panies. Therefore, civil servants have to be very careful.”
“Mr Speaker, Sir, yesterday, before the moment of interruption, I was speaking at great length on the issue of consumption tax. I said that, in principle, the concept of consumption tax is valid. If a person can afford and is willing to consume more, he or she should be prepared to pay more consumption tax. Although many people have reacted very strongly to consumption tax, such a form of taxation is not new to Singapore. Conceptually, we can consider the ad valorem duty on petrol and the 3% restaurant cess as forms of consumption tax. The difference is that the Government is now proposing to reduce income tax and switch over to imposing consumption tax on a wider scale. While the principle of consumption tax may be valid, I should also warn the Government of the disadvantages of consumption tax which should be considered carefully before implementing. One of my constituents felt so strongly about consumption tax that he called me twice two weeks ago to express his concern. Yesterday, I mentioned two disadvantages of consumption tax. The first is that during the present economic recession, the imposition of a consumption tax now will further dampen domestic demand. The tax will put a heavier burden on the poorer people, especially on the unemployed. The second disadvantage is that the machinery or the organization to be set up to collect and enforce consumption tax could be cumbersome and costly. It would not be easy to find a mechanism for tax collection which would be simple but efficient. The final concern, which is also the most important concern of most people, is that consumption tax should not be imposed on essential items. I am pleased that the First Deputy Prime Minister has given his assurance that this would not be done. Mr Speaker, Sir, the Hon.”
“In addition, we also feel that perhaps the machinery or the mechanism as to how we should impose consumption tax should be carefully considered. As the Member for Kaki Bukit has just mentioned, the cost of the imposition of consumption tax could be higher.”
“Mr Speaker, Sir, with the few minutes left before the moment of interruption, I would like to join the debate on consumption tax. Sir, I believe the principle of the imposition of consumption tax is valid because it is on the basis that if a person spends or consumes an item, he has to pay a price for it. And the more you spend, the more you have to pay. If a person buys 5,000 pairs of shoes or 350 of something else, I believe it is only fair that that person should pay consumption tax on their expenses. Similarly, if he is going to spend over $2 million on clothing and jewellery, I also believe that such a wealthy person should pay consumption tax. On the other hand, there are some familiar items which are necessary for everyday use and they could be cheaper, for example, a watch. All of us, Sir, need to wear a watch. Some people wear a very simple and cheap watch; but some others want to buy an expensive Rolex watch. And so we tax them on the basis of a percentage. The person who feels that he should not be penalized for spending would buy a cheap watch, eg, a Casio which costs only a few dollars. But if he feels he likes an expensive watch, a Rolex for example, he pays a price for it. And someone else might even feel that he needs a dress watch for the night, a day watch while working, a jogging watch when he goes jogging, and maybe a watch to wear when he goes out with his girl friend. Sir, I believe in principle that consumption tax should be imposed. But the question, Sir, is when and how we should do it. On the question of when, many Members in this House have said that perhaps now is not the time, because now we are facing a severe economic recession and so we do not want to dampen our domestic demand and cause a further downturn in the economy.”
“If we all share the fruit of prosperity in good time then we must work harder and work together, at this difficult juncture instead of being critical but strive to overcome our present difficulties. We must accept the proposals of the Government which will be of benefit to our long-term interest. With the concerted efforts of our people, I believe that we can recover in our economy sooner or later. 12.37 pm”
“The workers may feel that the change is unfavourable to them." So the companies in Singapore should behave like those in Japan, to have a short meeting of 15 minutes every day to make them understand better the policy of the company and the changes to be made so that the workers will be able to respond to the changes proposed. That is the importance of communication. For example, recently we have an industrial problem in a company because the company thinks that by buying a new machine they will be able to increase productivity. But on the contrary, when the new machine was used, productivity lowered, because the workers were not used to the new machine. So the company had gave notices of warning to the 90% of the workers. This is totally unnecessary because of the breakdown of communication. The success of Japan is due to a better system of communication between the management and the workers. They have a very comprehensive and effective system through which the top can inform the workers of the various policies and changes. Finally, Mr Speaker, Sir, I believe that our people are calm and hard-headed. As I have already pointed out, in Singapore when the other NICs faced a recession a few years ago, we were still enjoying a very high growth in our economy. It is only last year that we suffered from the recession. So from this can we sit down quietly and calmly and ask why in a period of prosperity our primary school students and those with primary education live in flats, and drive cars. These are our personal success. But when we have a recession everybody shake his head and blames the Government. I think it is not fair. So we must sit down and think carefully and coolly.”
“This is done through the various consultative and advisory organizations and agencies, such as the NWC, the Productivity Committee, etc. I feel that apart from the higher, national level, there should be consultative bodies at various levels and disciplines also at the lower levels to provide assistance particularly to medium and small enterprises. This will enable us to have a general picture of a whole as well as more compartmentalized views of various individual sections of the enterprises at different levels. So that consultations will be done and decisions will be made on a more comprehensive and practical basis, whereby if we have a programme or measures to implement, it will be much easier and effective when the people down below, at the shop floor, will understand the concept better and therefore be more willing to implement the programme. In the Government sector and private enterprise and industrial sectors, there should be various sub-committees, such as QCC, monthly meetings, weekly meetings, even daily review meetings, and so on, so that they can promote better communication between the workers and the management. The various sub-committees are very important. I have recently spoken to an investor from Hong Kong on the productivity of Singapore. The Hong Kong investor said that productivity-wise Singapore workers are equally as good as Hong Kong workers. But when we change the product or the model, then it will affect the worker's livelihood, as it is difficult for us to react quickly in Singapore. I asked him why? The answer is, "In my opinion, the company makes the changes but the people down below, the workers, do not understand the concept of the changes and so they are not able to respond quickly and change quickly.”
“But the question is about our present workforce. We have about 500,000 workers whose educational level is only up to primary level. They must receive some special training. So I am glad to note that in the Report of the Economic Committee there is a suggestion that there will be a series of training programme under SDF for these lowly educated workers. The SDF had in recent years assisted various companies and firms in the training of their staff. I feel a bit disappointed that the Opposition has said that the SDF is one of the factors that has contributed to the recession. He must realize that the human resource is our only resource and the SDF aids has got a great role to play in the training of our human resource. So the companies, particularly those of medium and small size must make use of the time available from the recession to make better use of the SDF for the training of their workers, especially local ones with the small and medium sized industries. In the past there had been complaints by these industries that they did not benefit from the SDF. So I hope that the SDF and the local industries will work together for a better system of training for our workers. In Japan, most of the industrial workers received annual training. for example, in NHK, which has about 11,000 workers. In 1985 they had about 6,000 - 7,000 workers who had the benefit of various kinds of training. So for the long-term interest of our workers and for the development of our human resource, which is our only resource, we cannot cut down the 2% of the SDF contribution rate. It should be retained for our training programmes. Next, let me deal with communication system. It is important that there should be prior tripartite consultation among Labour, Management and the Government.”
“So we must enable the workers to understand properly the meaning of productivity and the link between reward with job security and productivity. That is to say, the NPB must have a very simple evaluation system of productivity so that the management will be able to know straightaway the factors determining the increase of productivity and the underlying causes of problems and also the link of reward with these factors. They must also be able to make the workers understand that their productivity is closely linked with the performance and the survival of the company. So the increase in their productivity not only benefits the company but also the workers. The workers should realize that they must ensure that there is an improvement in the quality of their products to satisfy the consumers and the market. That is to say, they must make sure that the goods are not only good but also cheap. It is important also to make the workers understand and realize that the investors want performance to be a contributing factor of profit. The workers, in turn, want reasonable rewards, employment security and a suitable working environment. So overall if we have increased productivity, then the competitiveness of Singapore will be correspondingly enhanced and the people will be assured of a higher standard of living. Mr Speaker, Sir, the Economic Committee has made a great contribution in making their recommendations. To ensure their acceptance and success, we must take into account two major factors. One is the human factor, the other is an effective system of communication. The Government has invested a great deal on education. From the Economic Committee's Report, we can see that in the next generation our workers will be better educated and of better quality.”
“The next point is that the reform in the wage system is something that is very great in the history of our wages. If the Government adopts this, it will have to review the present Industrial Relations Act and all the other labour laws. Thirdly, we must strengthen the training of professional staff of the departments and Ministries concerned. For example, the negotiation and consultation officers in the Ministry of Labour, the Industrial Arbitration Court, the National Productivity Board, etc, must have proper training so that they will understand the mission and objective of the long term reform of the wage system so that they can do a good job. The next point I would like to raise is the raising of productivity. We do not have enough land or natural resources in Singapore. The only resource that we have is human resource. So over the long-term or even in the short-term, to tide over the economic difficulties we must pay attention to our human resources. The performance of the workers in the factories and in the private sector, our brain service, all must be comparable to if not better than others. Recently the NPB proposed the streamlining of and proper coordination in human resources, machinery and system. This is a good idea. Recently, the NPB has also formed an advisory group of notable figures from commercial and industrial circles. It is a very good action that they have taken. But what is more important now is that the idea of productivity must be brought to the shop floor of the various companies, factories and the Government departments, so that all the workers will understand the concept of productivity. A female worker has asked me. Everyday she has been working for eight hours and sometimes to 12 hours, is she not raising productivity in this way?”
“This is something that we have to do, if we want to maintain our international competitive position, especially to compete with the NICs like Hong Kong, Taiwan and South Korea. Then cost for cost, we should be competitive. We must make sure that there are profits to be made by the private sector. Otherwise, why should they favour Singapore and invest here? They might as well go to their own countries and solve their own unemployment problem. So the people of Singapore must be calm and must be understanding, that in order to solve our unemployment problems and to keep our present jobs and make a living at this time of recession, we must make our sacrifice. I hope that our workers will face up to the challenge and accept this challenge. On the question of wage system and its reform, we know that wage restraint and a cut in CPF are just temporary measures to help our economic recovery. In the long-term, a wage restructure is good but in implementing this we must pay attention to some important points, ie, that wage must be linked up with workers' productivity and the company's performance. In the past, we based entirely on wage system of increments, with a salary scale having a lowest point and a highest point, rather a rigid and fixed system. So they could not correspond to economic growth or contraction. To achieve this flexibility, we must have a very simple and easily understood assessment system so that both parties will accept this assessment system. That is to say that if we want to link up reward of labour with its productivity and contribution, the assessment system must be easily understandable and acceptable to employees, just like our bonus and incentive system which must be simple and easily understandable.”
“And so whether the Government does cut or does not cut is wrong, it is his credit. This amounts to saying that the sun rises because the cocks crow. It is after very careful consideration that the Government has decided to cut the CPF, because CPF has got a very great mission. If we did not have CPF, how are we going to reduce costs at this moment? The Member for Potong Pasir also talked about public housing. He said that in other countries housing is only about three times the annual salary of a worker. But here in Singapore we have concrete proof to show that homeownership is foremost in the world, even compared to Japan. Japan is a strong industrialized country. There, only 40% of the people own their own properties. Why is it so? Why is Singapore better off in housing? We only have a small island. We do not have natural resources. We have nothing else. Why is it that we are able to have a better standard of living compared to other countries? More and more people are owning flats. There are more than 60% of people who own their houses. This is concrete proof of the success of the PAP Government. And the people understand that each time the Government calls on them to make sacrifices, eventually the people will have a better standard of living and more jobs, especially the workers. They know that after their sacrifice, they will be able to enjoy the fruits of their sacrifice later on. Mr Speaker, Sir, in the Presidential Address, there is this call for cutting down costs. The Economic Committee's Report also refers to various measures to cut costs, ie, to cut production cost by reducing rentals, etc. The most controversial is the proposal to cut the employer's CPF contribution and to impose a curb on employee's wage increase.”
“Is he really honest in putting his effort to work for Singapore's prosperity? Just now, after listening to the Member for Potong Pasir, I cannot hold on any more and I must speak up my mind. The Member for Potong Pasir put the entire blame of the recession on the Government. I believe that all those who read newspapers will know that the recession has got two main factors. One is the external factors and the other is the internal factors. The external factors include the trade policy, unemployment, protectionism, the economic conditions of other industrially developed countries and their demand for our goods and services. These are factors beyond our control. The economic conditions of our neighbouring countries are also beyond our control. But internal factors are within our grasp and that is why the Government is cautious in setting up the Economic Committee. So it is not right for the Member to put the blame entirely on the Government for the internal and what he said to be "political" factors. He also referred to the CPF. He blames the Government for proposing to reduce the CPF to cut cost and he wants to become the champion of the workers. We are the people who have been together with the workers everyday working for their interests. We lunch with them, and have discussions with them, and we have coffee with them. Yet we do not have the audacity to call ourselves the champions of the workers. But the Members of the Opposition who are lawyers sitting in their airconditioned rooms want to show that they are the heroes of the workers and so they are against the cut in CPF. I remember a few months ago, the Member for Potong Pasir had already proposed a cut in the CPF. He himself proposed it.”
“Locals with a venturing spirit would then be enticed to strike out on their own and to find new business opportunities. The work of the Economic Committee has generated significant goodwill and rapport between the public sector and the private sector. Most of us would like to see the Economic Committee retained in some form so as to serve as a channel of communication and close interaction between the two sectors. With the revival of the entrepreneurial spirit, the spread of private enterprise, lesser Government regulations, and the close cooperation between the private and public sectors, we will see the emergence of a new Singapore, fitter and tougher than before. As it is said, "Tough times never last. Tough people do." 12.18 pm Mrs Yu-Foo Yee Shoon (Yuhua)( In Mandarin): Mr Speaker, Sir, I rise in support of the motion. I sincerely support the Presidential Address and would like to join the entire people of Singapore in their concerted effort to overcome the present economic difficulties. At this time of economic recession, there are some people who are wont to blame and criticize the Government, especially the two Members of the Opposition. They have been criticizing the Government and cashing on the opportunity to say all kinds of things about the Government to play to the Gallery and to earn political capital. But they forget that the eyes of the people are bright and discerning. They know how to distinguish between the right and wrong and will not be misled. A few months ago, the Member for Anson while in a neighbouring country said that we depended on foreign wealth for our success. He held himself up also to be the champion and hero of foreign workers. But the people would want to ask why should he, a person making a living in Singapore, speak for foreigners.”
“" When reviewing this matter, I would like to suggest that the Government should also do a fundamental rethink on what are the uses which CPF savings can be put to. Many Members of this House, including myself, have in the past requested that the CPF be used for educational purposes. This request stems from the enlarged use of CPF for investments in gold and shares. It is our contention that investment in educational purposes is a form of capital investment. I would like to suggest that the Government now do a basic rethink as to whether it should limit the use of CPF to the three primary uses, namely, only housing, old age and Medisave. If that is to be the case, then I think many Members of this House, including myself, would withdraw our request to use CPF for educational purposes. If this could be done, then the amount of CPF that a person has to pay into his CPF account would presumably be lower which means that there would be more voluntary savings in the pocket of the person. From this standpoint, more people may find that after working for a number of years, they would have accumulated a certain amount of savings which they could then use to start new businesses rather than waiting till they reach the age of 55, post-retirement, and get a lump sum of money before they can start thinking about going into their own businesses. This way, if a person can have more money in the pocket at an earlier age, he could start wondering about whether he should or should not enter into business and start a new enterprise. Given the conducive climate that will be created by implementing the several recommendations of the Economic Committee, the incentives will make it attractive for foreign firms as well as local entrepreneurs to start new firms in Singapore.”
“A corporate tax rate of 25% will be the same as Taiwan, but above Hong Kong's rate of 18.5%. To give the desired impact straightaway and to enable firms to immediately plan for capital investments and expand their plants, it is necessary to impose the tax changes with immediate effect. I am suggesting that the Government should consider imposing the tax deduction with effect from Year of Assessment 1986. Otherwise, if the effective date is for Year of Assessment 1987, firms may have to wait for one full year of delay before they can plan their expansion. Touching on CPF, the 15% cut on CPF contribution by employers is a deep cut. But I think it is a necessary cut. It will affect many, especially the young professionals who are committed to heavy housing loans. For such cases, I would like to suggest that if the husband and wife are both working, the Government should consider allowing their Medisave accounts to be taken jointly. This means that once the husband and wife's CPF Medisave accounts combined reach the limit of $15,000, the Government should consider allowing them to transfer their Medisave contributions into their Ordinary Accounts to help them defray their housing loan repayments. If both husband and wife are working, they can be considered as a unit. Therefore this proposal would allow more money to be channelled into their Ordinary Accounts which, at the present point of time, would help them definitely to defray their high housing loan burden. The Economic Committee also recommends that, "the Government should review the CPF scheme from a long-term perspective,to decide on the appropriate long-term rate and structure of CPF contributions, that would meet the basic needs of retirement income, home-ownership and medical care.”
“Exactly, we are in a recession. And in a recession, it is dangerous for us to have to face the additional problem of a run away inflation. It would be disastrous to our economy. How can he make a proposal that would affect our people that way? Secondly, our economy is very small. Singapore is a very small place. We lack domestic demand. In fact, what we need to do is to stimulate foreign demand for our services and goods. Lastly, of course, there may be a danger that our exchange rate, because of our present economic problem, drifts downwards slowly. This means that imports of goods and services into Singapore could be dearer. Again, leading to inflation. I would like to suggest that the Government please consider this suggestion proposed by the Member for Potong Pasir with some caution. I have read the Report quite thoroughly and, in general, I agree with most of the policy recommendations. Mr Speaker, Sir, there are some proposals or suggestions that I would like to make on how, I think, we could further help to stimulate the economy and I hope the Government will consider them seriously. On the recommendation to reduce corporate tax rate from 40% to 30% and then later to 25%, I would like to suggest that the Government consider an immediate reduction to 25%, rather than to do it in two stages. This is like dispensing medicine; it might have a diluted impact if the patient is given two small doses instead of one strong dose which should give a big boost. In this instance, perhaps one big dose is what the patient needs. Moreover, a larger reduction in the corporate tax will immediately have a higher stimulative effect which would then help to compensate for the lower taxes collected due to the higher reduction in the corporate tax rate.”
“Mr Speaker, Sir, he accepted the offer with a lot of conditions, conditions which he knows are impossible for the Government to accept. Therefore, he is not accepting the offer at all. It is the only way that he can get himself out of the whole dilemma that he is in. So if he had accepted the offer, he can prove to the people whether HDB is making money or not. If so, he himself or his Party could make lots of money. The Member for Potong Pasir mentioned that perhaps we should consider lowering employees' CPF contribution. I would like to suggest that the Government should consider this with some caution. There are three factors that we have to look into. The first is that givinga cut to the employee's CPF could create a demand for local services no doubt, but it will also tend to create a higher demand for goods and services which would definitely have an impact on domestic inflation.”
“This, I suppose, is based on his earlier belief that the HDB is always making a lot of profit and, therefore, can afford to lower its profit margins so that the people can enjoy lower prices for flats. I would like to ask him this. If he does believe in that, then why did he not take up the offer made by the Minister for National Development to build four blocks of flats?”
“In comparison with a country like Philippines which has a total foreign debt close to $27 billion, which is about 30 times that of Singapore. Because of the reserves we have accumulated and the low external debt that we have in our hands, we find that this Government has a lot of flexibility in terms of implementing new measures or solutions which can help revive our economy. Now that the Economic Report is completed, the immediate task of the Government is to study the Report and pick out the key essential measures for urgent implementation. I feel that a major priority in selecting the urgent measures would be those that have an immediate effect on creating new jobs and making our firms more competitive. Measures that have to be implemented immediately would be those that will assist in maintaining our competitiveness. These are: 1) Cost reduction measures, such as reduction of employer's CPF contribution, wage restraint, and reducing statutory boards' charges. 2) Reduction of corporate income tax rate and personal income tax. 3) Investment allowance of 30% across-the-board. Measures that will help to create jobs so as to have a higher employment rate are: 1) Steps taken by the EDB to promote and attract more MNCs to set up operation in Singapore. 2) Equity investments made by both companies and individuals in approved new venture projects to be given, as proposed by the Economic Committee, 50% tax deductibility against other incomes. 3) Tax exempt for approved operational headquarters and regional holding companies. The Member for Potong Pasir went back to his favourite point, which is that the HDB flat prices are too high. He suggested that the HDB should lower flat prices.”