Lim Kim San
Singapore
“Mr Speaker, Sir, the Public Utilities Board's investigation shows that the residents of Pulau Ubin are unwilling to pay higher prices due to higher operating costs, thereby causing the contractor to cease operations. It was explained to the hon.”
“Sir, I understand the Member's point, but I hope he realises that six months after serving notice, the pigs will still be defecating freely which will continue to contaminate our water.”
“Sir, if anyone should get sick from coming into contact with contaminated water, I hope they will accept sympathy from the Member for Jurong. But we cannot evaluate the danger to human life in terms of dollars and cents. The farmers have known for several years now that pig-rearing will have to be phased out of the catchment areas.”
“Sir, all I can say is that we are still looking into the feasibility of siting a coal-fired station on one of the islands to reduce the pollution problem. But no definite decision has yet been made. We have several offers to do a feasibility study on it, and we are looking closely into the matter. 5.45 p.m.”
“Merit Scholar- Merit Courses ships Bursaries Medicine/ Dentistry 44 41 Engineering 28 22 Architecture/ Building/ Estate Management 6 18 Accountancy/ Business Administration 9 14 Arts/Social Science/Law 32 40 Science (includes Pharmacy) 82 102 ___ ___ 201 237 === === Sir, I believe the hon.”
“Mr Speaker, Sir, air pollution is being monitored daily by the Anti- Pollution Unit, and we find that the air pollution in industrial estates and the urban areas is normally higher than in the residential or rural areas.”
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“For the improved one-room units, some of which have been built and some of which will be built in the central area and where the rental charge is $36.50 in the central area and $30 in a suburban area, the subsidy varies from $15 to $18 per unit per month, depending upon the price of land and the cost of construction in each area. For the standard two-room unit in the central area where the rent is $66.50, and in the suburban area where the rent is $46.50, the subsidy per unit per month is round about $9.80 to $10. For the improved two-room unit where the rent charged in a central area is $66.50, the subsidy varies from $10 to $15 per unit per month. For the standard three-room unit in a central area where the rent is $96.50, and in a suburban area it is $66.50, the subsidy varies from $2 to $5 per unit per month. All in all, Mr Speaker, Sir, there are now over 80,000 units let out to the public under the management of the Housing and Development Board, and the total subsidy for these units next year is estimated at $8 million. Therefore, the Housing Board is one of the few landlords who do not make money but lose money, all for a good cause, and that is to provide better housing for the poorer section of our people. I think I have clarified the question of subsidy here, unless the Member for River Valley has further questions for clarification.”
“Mr Speaker, Sir, there is a prevalent belief that the Housing Board is making money because most people - and I think rightly so - consider that a landlord makes money from the properties he lets out, and the Housing and Development Board, being the largest property holder or the biggest landlord in Singapore, is expected to make money. But contrary to this belief, the Board was set up not with the object of making money from properties, but with the object of providing the lower income group of Singapore citizens with modern housing at rentals well within their means. Its objective, therefore, is to house as many of the poorer group of people as possible at a rental which most of them can afford to pay. In spite of the large number of houses which the Housing and Development Board has put up and rented out, it is running at a loss. For the information of Members and the public, I have figures here showing the amount of subsidies for the various types of houses put up by the Housing Board. As you know, Mr Speaker, Sir, we are trying to standardise the rentals as far as possible so that the same rental would be paid for one-room units all over Singapore with the exception, of course, of the houses built in urban areas, because of the high cost of land and the better type of construction that is required in urban areas. For what we call an emergency one-room unit which is let out at $20 per month to Singapore citizens, the approximate subsidy per unit per mouth varies from $15.50 to $18.50, depending upon the cost of the structure. For what we call the standard one-room unit in a suburban area where a rental of $26 is being charged, the subsidy per unit per month is $15.”
“Mr Speaker, Sir, it is not the intention of the Government to allow civil servants to act as long as possible, but we would like to promote those who deserve promotion. As a result of the extension of services due to Malayanisation and various other factors, we have lost quite a large number of civil servants in the higher echelons, and therefore quite a large number of posts have to be filled by acting appointments. But the civil service being what it is -- once a man has been appointed, he has security of tenure -- we want to be pretty sure, as far as possible, that the man who is promoted really deserves promotion. Promotion exercises are carried out from time to time. While wishing to fill these posts and seeing that every civil servant should be given his due, we are at the same time, as a result of past experience, very careful when filling a high post to make sure that the applicant will shape up well. This is a passing phase and I expect that with more and more qualified people coming out from our universities and from abroad, we will be able very soon to fill all these posts substantively by people who really deserve them.”
“That is as far as we can do on our side. We have tried our very best to afford them every facility for the resumption of trade and the ball is actually at their feet. The Member for Aljunied gets the impression, just from looking up the telephone directory, that a large number of civil servants are acting in posts.”
“Mr Speaker, Sir, when the Member for River Valley says that trade with Indonesia has not come up to expectations, it all depends very much upon whose expectations and what expectations they are. I have said from time to time that trade between Indonesia and Singapore could be normalised. We cannot expect the same volume of trade that we had before confrontation, for the simple reason that during confrontation, Indonesian merchants had already established direct contact with their sources of supply and markets. Mr Speaker, Sir, the resumption of trade with Indonesia could not by any stretch of the imagination come to the pre-confrontation level. At the moment, what we have is largely in the form of barter trade, and as regards that, I think it has almost reached pre-confrontation level. But whether or not trade will further improve depends very much again upon the situation in Indonesia itself and upon the policies that are to be followed. Whether trade will really start flowing between Indonesia and Singapore does not depend so much upon how many visas could be issued by Indonesia to our traders, but upon whether they could get over the foreign exchange difficulties in buying here and whether they would be able to resuscitate or rehabilitate their transport, distribution and collecting systems, so that more of their produce could be sent abroad. 5.45 p.m. I have no doubt at all that now that the floodgates have been opened following the recognition of Singapore by Indonesia and the signing of trade and shipping agreements, there will be an increasing volume of trade between Singapore and Indonesia. We sincerely hope that the present Government in Indonesia will be able to carry out its objectives to redevelop its country and to pay more attention to economic matters.”
“Yes, I think I have left that one out. I must thank the Member for reminding me. The reason why the tax on sugar has not been removed is that there will be a sugar refinery in Singapore soon. From what I understand, the factory is in an advanced stage of construction, and when it is refining sugar, there would have to be a protective duty. So rather than removing the duty now and putting it back later on, we thought it best to leave well alone. Finally, Mr Speaker, before I sit down, may I request the trade union leaders always to keep in mind that the biggest problem facing us is the unemployment problem, and that far from allowing labour to be exploited by management, we have always maintained that there should be no exploitation of one by the other, and that, in spite of the fact that there is a large number of unemployed, we would not allow any entrepreneur to take advantage of the situation. But still, at the same time, I hope the trade union leaders will realise the significance of it and that for the success of our industrialisation programme, which ultimately will mean more employment and prosperity for Singapore, everyone of us should pull up our socks, do our best, understand the problem before us, and do not do anything at all which will bring harm to our country. Question put, and agreed to. Resolved, That Parliament approves the financial policy of the Government for the year 1967. Resolved, "That the House do now adjourn."-[Mr Lim Kim San] Adjourned accordingly at Fifteen minutes past Seven o'clock p.m. Estimate of Expenditure of Singapore for the Year 1967 (Cols 0677-0680)”
“Building and construction is the most sensitive sector of the economy, and if there are any political changes, it is bound to suffer. I do not understand very clearly what the Member for Choa Chu Kang meant when he said that unless and until the property tax on building of commercial houses is reduced, there would be no progress in the building of commercial houses. I think he probably meant the re-building of commercial houses.”
“Coming to the Member for Farrer Park, he is a bit worried that if we keep on retaining more and more of our imports, our balance of payments will become more and more unfavourable. Mr Speaker, Sir, it all depends upon whether we use retained imports for manufacture of products to be re-exported, or whether we consume the retained imports ourselves. I think I have made it very clear that the increase in retained imports is largely due to the fact that our increasing number of industries are using more and more raw materials which are turned into finished products and re-exported. And if he will look through my statement on the question of financing for development for the year 1967, he will see that, on Development Expenditure of round about $411 million for 1967, we will be drawing on our reserves of the Development Fund to the extent of only $32 million. Though I did not mention export markets in my Budget Statement, it does not mean that nothing is happening in that sphere and that we are keeping still. I did not mention it for the simple reason that during the course of the year, when we signed bi-lateral trade agreements with Bulgaria and some East European countries, sufficient publicity had been given and I thought it would be wasting time to mention that again. I think sufficient publicity had been given during the time when we sat down with the Americans to negotiate on the textile quota. So, Mr Speaker, Sir, although I did not mention or enlarge on the statement I made last year about looking for new markets, things are happening there, though at a much slower rate than I or anyone of us would like it to be. I cannot agree with the statement that the substantial drop in building and construction last year was due to the high rate of property tax.”
“And yet, after having agreed that this is no time for wage revision, that the public daily-rated workers are the highest paid in South-East Asia, and that there are thousands and thousands of unemployed, he is asking for a wage revision at a time when we are going to fight unemployment and when we have got to prove that we are more efficient than the rest in order really to attract entrepreneurs with industrial schemes to create more employment. He is doing all these things knowing full well what the implications are. I do not think he can rightly say that the daily-rated labourers are being exploited. From his own experience and from my own experience and from the experience of a few, not only are they the highest paid, but I think they are being worked the least. The Member for Bras Basah did mention that we must not forget in our industrialisation programme to bring in industries which will purchase their raw materials from all over the world. Here again, Mr Speaker, Sir, if he has been paying as much attention to the Budget Statement as he has said he had, he will find somewhere there that I did mention that we are giving every incentive in order to attract entrepreneur manufacturers, with world-wide connections who can purchase their materials from all over the world and who have got markets all over the world, in joint ventures with our own citizens. As far as markets are concerned, we have feasibility studies before we allow pioneer industries to receive pioneer certificates, and we have agents in some of the main cities of the world. It is our intention that later on, when we have set up embassies, to attach to them Trade Commissioners who will be able to provide the necessary market information.”
“That is your business and not my business. It is up to you to see that you get a copy of the minutes of any meeting you attend. Otherwise it is a tacit assumption that you have approved whatever is written in the minutes. Mr Speaker, Sir, I think the Member for Bras Basah is not unaware that, on the one hand, we have a large number of unemployed which looks a very formidable problem and that we are doing everything we can in order to solve it. On the other hand, he is not unaware that, with a large reservoir of unemployed on our hands, the unskilled labour in the public daily-rated unions is the highest paid unskilled labour in South-East Asia.”
“These are the minutes of the meeting held on 27th July, 1965. And the same reply, the same quotation, was given to the Member for Bras Basah last year. I have never heard any refutation of it, not even up to today.”
“This is Hansard, Vol. 24, No. 10, col. 540, the third paragraph from the bottom. And I quote here: "`Claims for fresh revision of wages should be regarded as outside the scope of the Agreement of 1961 and the Union would be at liberty to submit fresh claims on revision of wages for negotiation after settlement of the other two issues: disciplinary and grievance procedures and job evaluation exercise of ten outstanding grades involving about 300 odd employees. In the event of failure to reach agreement in the negotiation, consideration would be given for the claims to be referred to arbitration.'" I think he is not unaware that a few days ago representatives of the Public Daily-Rated Workers Unions Federation and the N.T.U.C. met the Prime Minister. And I think, apart from wage claims at this meeting, both have agreed that it should not be the subject of negotiation. A Committee is now sitting and considering any outstanding issues.”
“I do not know, Mr Speaker, Sir, where in my Budget Statement I implied - was it implied that I am blaming labour for not being productive? I cannot remember, nor can I find it anywhere in my statement, but I did say that both labour and management should co-operate together towards creating greater productivity. I said in the Budget Statement that: 'With the co-operation of the National Trades Union Congress, the Singapore Manufacturers' Association and the Singapore Employers' Federation, we jointly drew up in 1965 a Charter for Industrial Progress.' Nowhere, Mr Speaker, did I blame labour alone for lack of productivity. The Member for Bras Basah realises that the main problem facing us is unemployment. In the meanwhile, he is accusing the Government of not living up to its agreement and that we are not willing to negotiate to raise wages for the daily-rated employees. I will again quote, for his information and to refresh his memory, the minutes of the meeting held on 27th July, 1965, between the Prime Minister and representatives of the Public Daily-Rated Unions Federation, and the N.T.U.C. were present. I quote: 'Claims for fresh revision -.`”
“In fact, if he has been paying the attention which he says he has to the Budget Statement, he will remember that I sounded a warning that unless and until every sector of the economy understands the problem that we face and pull up their socks and work together, then the future is going to be very bleak indeed. The Member for Bras Basah has also mentioned that he would like to see training within industry. I presume he has got a copy of my Budget Speech, but I will refer to col. 455 where I said, and I quote: 'The Economic Development Board has already started, on a limited scale, the training of technicians and skilled workers in tool and die-making, electro-plating and heat treatment. The specialised training programmes help to upgrade the skill of our workers in the existing industries and, ... In addition, specialised production teams, including workers, will be sent overseas for on-the-job training . . By building up a large reservoir of technicians and skilled workers, and by gearing training to the industrial promotion programme, we can quickly enter into a more sophisticated stage of industrial development.' Therefore, the point that he has made has been provided for - we are giving training in industries and giving our people special skills. Mr Ho See Beng: Below par.”
“For those people who, he says, have assets overseas and who are resident here and would like to bring their money in but are afraid to do so because the Income Tax Department would be after them and they would have to pay 40 per cent of whatever they brought in, under the Income Tax laws if it can be proved that these are assets which a non-Singaporean residing here has built up by monies earned by him outside Singapore prior to his coming here, then they are not taxable. Anyone who has got such assets and would like to bring them in here would be welcome. We have been sending trade missions all over in order to find an export market. We have said that we will be friends with everybody and willing to trade with anyone. We will allow trade missions to China if it can be proved that they are going to China to sell our products and not to buy. At the moment, we have an unfavourable balance of trade with China annually, running into an odd $100 million. In the present circumstances, Sir, I think it would not be in our interest to allow further missions to go there if its purpose is to buy goods made in China and not to sell our products. But if the hon. Member can assure me that if a trade mission to China is formed in Singapore and that it will be able to sell our products there, I will willingly recommend that this mission be allowed to go. I am very glad, Sir, that the Member for Bras Basah realises that the most important problem facing us is unemployment. But I do not understand how he came to the conclusion that I am most optimistic in feeling that the unemployment problem can be solved.”
“Mr Speaker, Sir, I shall take up as many as I can remember of the points made by hon. Members of the House. The Member for Bukit Merah has said that he is quite disappointed with the smaller provision made to the Ministry of Culture. I think it is wrong to assume, solely from this vote allocated to the Ministry of Culture, that the cultural activities in Singapore are financed. Cultural activities are being undertaken through the Education Department, the People's Association and various other bodies, and I do not believe that we can relate the level of cultural activities to the amount of money that is being voted for. I quite agree with him that one of the most important aspects in nation-building is the promotion of culture, and I can assure him that we are spending quite a sizable sum of the revenue in promoting culture in Singapore. The Member for Ulu Pandan has suggested to me that in order to attract capital here we should be flexible with some regulations and think of some device to waive some of the Income Tax regulations to allow people who have money but cannot account for it to bring it in and invest. I do not know what regulations or what device he has in mind. If he is thinking of any device which will compromise the Government and make it appear that we condone any irregularities just because we want capital to come in, I can assure him that we will not agree to any such device which he may have in mind.”
“Mr Speaker, Sir, I am in full agreement with the Member for Sembawang when he rightly gives a large part of the credit to the people of Singapore for the fine performance of the economy during this year, as a result of which we are getting a larger surplus than anticipated, and also I am in the happy position of being able to present a balanced budget for the year 1967. I think we can count ourselves fortunate that although added responsibilities have come to us on achieving our independence, I need not have to raise further taxes, with the exception of revising the method of taxing motor vehicles and an increase in driving licence fees, because of the energy, drive and entrepreneurship of the people. Apart from this, I need not have to raise further taxes to meet additional commitments. In reviewing these taxes, I think I have made it very clear that we still adhere to our socialist principle, that we should tax those who are best able to afford it. Therefore, in revising the road tax, we saw to it that only those who can afford will pay. The majority who own smaller cars will not have to bear too much of the incidence of taxation. Here again, in raising the driving licence fee from $5 to $10 per annum, I do not think that we have been bearing down unduly hard on the poor section of the people. I doubt very much the statement of the Member who says that the majority of driving licence holders are poor. There are roughly 360,000 driving licences in Singapore and the holders of driving licences belong to the rich, the very rich, the poor and the not so poor, and they are asked to pay $5 more not per month, per week, per day, but per year, which means, in effect, that if the average smoker forgoes three cigarettes per week, he will more than be able to meet this $5 more.”
“We are not on Government-labour relationship. We are on the budget.”
“On a point of order. Mr Ho See Beng resumed his seat.”
“A point of clarification, Sir. It is not the Government or the Housing Board that has asked employers to pay a housing allowance in lieu of a transport allowance. I think the Member for Telok Blangah must be aware that where workers have been receiving a transport allowance, this has been termed a housing allowance if they stay in Jurong. To reply to the Member opposite, it is not Government's policy to encourage employers to pay a housing allowance, because in one way it prevents the workers from staying in Jurong, which is exactly opposite to what we intend. We have spent a lot of money on the infrastructure in Jurong and we would like the workers to turn it into a town. TRADE BETWEEN SINGAPORE AND AFRICAN COUNTRIES 6. Mr Ho Kah Leong asked the Minister for Finance since the Trade Mission to Africa what is the progress of trade between Singapore and the African countries.”
“I will not argue about the policy of the labour union with regard to a subsidy for transport or a subsidy for houses. But I would like the hon. Member to remember that we are, at the moment, engaged in the task of increasing productivity and lowering costs. If the entrepreneurs in Jurong find that it is possible to give additional pay, either in the form of a housing allowance or in any other form, and be still able to compete externally, then the union will have a good case. Otherwise, I think it will have to hold its horses for the time being.”
“These are already subsidised rates of rental charged to workers who are Singapore citizens. I think at the moment in Jurong most of the workers are either given free transport or a transport allowance, so that if they desire to live in Taman Jurong, they will get, in lieu of free transport, a transport allowance, which is a form of subsidy towards paying their rental. In fact, in some cases it may be almost the rental of a one-room unit.”
“If the Member would like a comparative table of resignations from other departments, I will supply it later on. But I am quite satisfied with the personal relationship that is existing between the head of that department and the staff, The Income Tax Department is a little bit peculiar in that it requires a greater amount of output and productivity from the staff. It is quite a rigorous department in that we are dealing with entrepreneurs who are very astute in finding ways and means of wriggling out of their income tax responsibility. Therefore, the people who work there require greater acumen, greater drive and greater interest in their work. INCOME TAX DEPARTMENT (Grouses about working conditions) 4. Mr Ho See Beng asked the Minister for Finance if he has received any representations, or has any knowledge of grouses among the junior officers of the Income Tax Department about working conditions in that Department, and what action he has taken, or proposes to take, in the matter.”
“I do not know what rate of resignations the hon. Member for Bras Basah will consider to be a high rate. From the figures given, I think it is quite a normal rate. In fact, most of them resigned because of higher pay or to further their studies, and I think they should thank the Commissioner of Inland Revenue, for they are able to get better emoluments outside because of the training that he had given them while they were in service.”
“Mr Speaker, Sir, it is always impossible to prevent people from leaving Government departments. Whether it is a brain-drain or not is open to contention. On our side, we are quite happy that some of them left us. The Government can do without them and we will get better ones later on.”
“Mr Speaker, Sir, I beg to move that Parliament doth agree with the Committee on the said resolution. Question put, and agreed to. Resolution accordingly agreed to. NANYANG UNIVERSITY (AMENDMENT) BILL 3.31 p.m. Order read for resumption of on Question [5th December, "That the Bill be now read a time." Question again proposed.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to a certain resolution. Resolution reported - "That the sum of $610,700 shall be supplied to the Government under the head of expenditure for the public services shown in the Third Supplementary Estimates of Expenditure for 1966 contained in Paper Cmd. 28 of 1966."”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, at present there is provision under section 37 (2) of the Income Tax Ordinance for the approval of an institution as "an institution of a public character" whereby an amount equal to the sum contributed to the said institution is an allowable deduction from assessable income for income tax purposes. Under paragraph (c) of the above sub-section "an institution of a public character" is defined as an institution or fund in Singapore under one of seven categories, including "a public or other benevolent institution not operated or conducted for profit". The phrase is ambiguous because of the word "other", so that this category is restricted to either public benevolent or other benevolent institutions not conducted for profit. As the provision now stands, its benefits cannot be extended to deserving public institutions which do not strictly fall within the legal definition of "benevolent". To give greater flexibility to approve a public institution not strictly benevolent, it is proposed that section 37 (2) (c) (ii) should be amended by deleting the word "other" in the phrase "a public or other benevolent institution". Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San] Bill considered in Committee; reported without amendment; read a Third time and passed. RAILWAYS (AMENDMENT) BILL Order for Second Reading read. 7.19 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Currently the Government Contracts Ordinance, 1949, of Malaysia applies to Singapore. The purpose of the Bill is to repeal the Malaysian Ordinance and substitute it with the Government Contracts Act, 1966. The Bill seeks to enact with suitable amendments the provisions of the Government Contracts Ordinance, 1949, of Malaysia. Under this Ordinance, any Minister may authorise a public officer to sign a contract. The new Bill before the House provides that authorisation of officers will be only by the Minister for Finance. As contracts invariably involve financial matters, it is desirable that the authority be from the Minister for Finance. In respect of contracts signed outside Singapore, this authority is also to be vested in the Minister for Finance. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San] Bill considered in Committee; reported without amendment; read a Third time and passed. INCOME TAX (AMENDMENT) BILL Order for Second Reading read. 7.15 p.m.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Entertainments Duty Ordinance provides that the rates of duty to be levied on different types of entertainment have to be approved by a resolution of Parliament from time to time. This is administratively inconvenient in that if it is desired to vary the rate of duty for any particular entertainment, it cannot be done without reference to Parliament. Clause 2 of the Bill seeks to repeal section 4 of the Ordinance and provides the Minister with the power to levy different rates by order published in the Gazette. This allows for greater flexibility and is in keeping with the powers of the Minister in other fiscal legislation, for example, in the Customs laws. As the law now stands, there is no provision for the Minister to exempt any class of entertainment from the payment of entertainments duty. Clause 3 seeks to grant the Minister powers to exempt any particular case from the payment of entertainments duty subject to such conditions as may be imposed. Permissive powers for the Minister to prescribe different rates of duty and to exempt any particular case will allow for administrative simplicity, especially in cases where it is desired to stimulate particular types of sport which may need assistance. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Lim Kim San] Bill considered in Committee; reported without amendment; read a Third time and passed. GOVERNMENT CONTRACTS BILL Order for Second Reading read. 7.11 p.m.”
“This amendment is made as it is not necessary to back-date the coming into effect of Clause 43. Amendment agreed to. Amendment made: In page 39, line 36, to leave out "then in force.".-[Mr Lim Kim San]. Clause 43, as amended, ordered to stand part of the Bill. Clauses 44 to 47 inclusive ordered to stand part of the Bill. 7.00 p.m. Clause 48 - Mr Lim Kim San: Mr Speaker, Sir, I beg to move, In page 42, after line 35, to add -"(2) The provisions of subsection (1) of this section shall not affect the obligation under the Insurance Act, 1963, of Malaysia, with regard to the lodgement of returns for the accounting period immediately prior to the initial accounting period under this Act. (3) The provisions of the Insurance Act, 1963, of Malaysia, shall continue to apply to any insurer carrying on business in Singapore until such insurer is registered under this Act." These two sub-clauses are saving provisions which will cover the transitional period when the present Act is repealed and a period of grace is given to insurers to register under the new Act. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 39, lines 34 and 35, to leave out "shall be deemed to have come into operation on the 1st day of July, 1966, and". Mr Speaker, Sir, I wish to move the next amendment to this clause before giving the explanation as these two amendments are related.”
“Mr Speaker, Sir, I beg to move, In page 16, lines 14 and 15, to leave out "After the end of six months from the date of the coming into operation of this Act,". This amendment is being made as it is not necessary to provide for a period of grace for putting into operation sub-section (4) of section 16. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 12, after line 37, to add - "Provided that the Minister may, in his discretion by order published in the Gazette - (a) increase the percentage referred to in this subsection; (b) specify the minimum or maximum percentage or both minimum and maximum percentages of the total value of the assets of the fund that insurers may hold of any one or more of the items set out in the Second Schedule to this Act.". As has been explained, the provisions of clause 11 require insurance companies operating in Singapore to establish and maintain an insurance fund of which at least 55 per cent of the assets must be local assets listed in the Second Schedule. Paragraph (a) of this amendment enables the Minister to increase this 55 per cent if necessary. Whilst the provisions of clause 11 stipulate a minimum investment of 55 per cent in local assets, there is no provision to require insurers to hold a well-distributed portfolio of investments in their insurance fund. The amendment at paragraph (b) is therefore being introduced to take care of the situation when insurers invest a large proportion of their funds in one type of asset. This is clearly undesirable as the solvency and liquidity of the fund is dependent on only one type of asset. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 8, after line 34, to add - "Provided that the Minister may, in his discretion but subject to the provisions of subsection (1) of section 7 of this Act, specify in writing the sum to be covenanted for under the provisions of this subsection.". As mentioned earlier, Mr Speaker, Sir, statutory deposits must be of the soundest and best securities, and with this objective in mind, this amendment is being introduced to clause 8 in order to enable the Minister, if necessary, to specify the amount of the statutory deposit that may be covenanted for. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 2, line 44, after "society", to insert "or organisation". As in the case of the previous amendment, this is also a consequential amendment. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 2, line 40, after "society", to insert "or organisation". This amendment is necessary as a result of the first amendment. Amendment agreed to.”
“Mr Speaker, Sir, I beg to move, In page 2, line 39, after "Ordinance", to insert "or organisation registered under the Mutual Benefit Organisations Ordinance, 1960,". The reason for this amendment is to exclude the application of this Bill to mutual benefit organisations. Amendment agreed to.”
“Mr Speaker, Sir, I am most grateful to the hon. Member for giving me food for thought in between my golf shots! This is the initial step that we are taking to control insurance. I am sure, as we go on, we will do everything that is desirable to make this Bill as fitting as is possible for Singapore. The points that he has put up are of a technical nature, and I am sure much thought has been given to them by other countries. It would be the duty of the Commissioner so appointed to bring all the salient features of insurance business all over the world to our notice, and it would be our duty to keep on improving the Ordinance as time goes on. But for our purpose now, since we are repealing the Malaysia Insurance Act, as an initial step I would request that we allow this Bill to go through. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. -[Mr Lim Kim San] Bill considered in Committee. [Mr Speaker in the Chair] 6.46 p.m. Clause 1 ordered to stand part of the Bill. Clause 2 -”
“The First Schedule to the Bill lists the definitions of insurance terms; the Second Schedule lists authorised Singapore assets for the purposes of statutory deposits and insurance funds; the Third Schedule relates to deposits required to be lodged by associations of underwriters; and the Fourth Schedule specifies documents to be lodged annually by insurers. Mr Speaker, Sir, apart from the amendments to clauses 8 and 11 which I have mentioned earlier, I propose to suggest a few other minor amendments to the Bill during the Committee Stage. Sir, I beg to move. Question proposed. 6.37 p.m.”
“Clause 15 provides that premium rates charged by life insurance companies must be approved by qualified actuaries, whilst clause 23 makes it necessary for regular actuarial investigations to be made into the financial condition of the life insurance companies. Under the provisions of clause 22, all insurance companies are required to lodge annual returns with the Commissioner. The Commissioner can request insurers to furnish him with information related to their business if the information is required for the proper discharge of his functions under the Bill. Clause 27 lays down the conditions under which the Commissioner may institute an investigation into the whole or part of the business of an insurer. Among these conditions are failure on the part of the insurer to comply with any provisions of this Bill relating to insurance funds, and if it appears to the Commissioner that the insurer is likely to become unable to meet his obligations. Clause 29 relates to winding up of insurance companies. Clause 32 provides for transfers of business. Clause 35 provides for the appointment of an Insurance Commissioner by the Minister. The Commissioner would be responsible for administering the Bill and would exercise the functions conferred upon him by this Bill. The Commissioner is required to submit an annual report to the Minister, a copy of which is to be presented to Parliament. Under the provisions of clause 45, the Minister may make regulations for carrying into effect the objects of this Bill.”
“Clause 11 stipulates that a minimum of 55 per cent of the assets of the fund must consist of approved securities which are listed in the Second Schedule to this Bill. As assets in the Second Schedule are local in character, this provision makes it necessary for insurers to keep in Singapore, local assets to match at least 55 per cent of the liabilities they have contracted. It has been found that, with regard to some general insurance companies, outstanding premiums and agents' balances comprise a disproportionately large percentage of the total assets of their insurance funds. This is clearly undesirable as the solvency of the fund is dependent on the extent to which such premiums and balances can be collected. Clause 11 (2) of the Bill therefore limits such balances and premiums to l2½ per cent of written premiums. To allow insurers to achieve this percentage smoothly and with minimum difficulty, a 2-year transitional period is allowed during which insurers are required gradually to reduce the amount of outstanding premiums and agents' balances held as part of their insurance funds until the target of 12½ per cent is achieved. Again I wish to state here, Sir, that during the Committee Stage of the House, I will be proposing an amendment to this clause which will allow the Minister to increase the minimum percentage of 55 per cent and to specify the minimum or maximum amount of this 55 per cent that may be invested in any one or more of the items listed in the Second Schedule. Clauses 15 and 23 relate specifically to life insurance companies.”
“In addition, the Commissioner must be satisfied that an insurer applying for registration must have a surplus of assets over liabilities of not less than $1 million if he proposes to carry on one type of insurance business, or a surplus of assets over liabilities of at least $l½ million if he proposes to carry on both types of insurance business. Clauses 7 and 8 of the Bill specify the type of assets that may be accepted as statutory deposits. These are cash, approved securities listed in the Second Schedule to this Bill, bank covenants, or a combination of any of these items. As the statutory deposit can be regarded as a final safeguard of the interests of policy holders, it logically follows that the securities deposited have to be of the soundest type, and it is for this reason that the Minister has been given discretionary powers to refuse acceptance of securities which are considered not satisfactory for the purposes of a statutory deposit. With this objective in mind, I shall be introducing an amendment to clause 8 during the Committee Stage of the House which will enable the Minister to limit the amount of statutory deposit lodged in the form of bank covenants. Clause 10 of the Bill requires insurers to establish and maintain an insurance fund for each type of insurance business conducted for the purposes of meeting liabilities of Singapore policies.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Mr Speaker, Sir, this Bill re-enacts the provisions of the Insurance Act, 1963, of Malaysia which was extended to Singapore in January 1965 and which after separation is still operative in Singapore until repealed. Hon. Members of the House may ask why it has been found necessary to re-enact the provisions of this Act. This is due to the following main reasons: (a) Statutory deposits in respect of insurance companies operating in Singapore are kept by the Malaysian Accountant General and can no longer be called upon to cover liabilities of Singapore insurers. (b) By virtue of the fact that Singapore is no longer a part of the Federation of Malaysia, Singapore securities are now automatically excluded from the schedule of approved assets. (c) It is desirable that some amendments which have been made to the Malaysian Act since separation should also be incorporated in the Singapore legislation. Briefly the Bill is a comprehensive piece of legislation designed to control and supervise the conduct of all types of insurance business. The basic objective of the Bill is to prevent the repetition of unscrupulous practices like those of mushroom insurance companies and to encourage the growth of healthy insurance business. Turning now to the contents of the Bill, I would like to elaborate on the more salient clauses. Clause 2 of the Bill classifies insurance business into two main categories, namely, life insurance and general insurance. Clauses 3 and 4 lay down the minimum conditions of operations of insurance companies in Singapore. These are registration with the Insurance Commissioner and lodging a statutory deposit of $300,000 for each type of insurance business conducted.”
“But we have lived long enough to learn that the unexpected does often happen and we are learning to make contingency provisions for such accidents. It has been my good fortune as Finance Minister for two successive years not to have had to raise revenue by increases in the rates of taxation. This year, the only change is in the method of computing the motor-vehicle tax, which will bring in a small increase of $5½ million in revenue, a step we are taking more to establish sound principles of taxation than the need for the $5½ million. But Singapore cannot assume that the expanding cost of education, health and social services, plus added burdens of our separate defence expenditure, can always look after themselves. On the one hand, my officials have had to do their unpopular duty of using the pruning knife whenever they feel that an item of expenditure was extravagant in relation to our own economic capacity. On the other hand, our entrepreneurs and workers must give of their best to keep this economy humming and thriving, so that the increased economic activity will always give an increasing revenue. Provided there is a clear appreciation of the elementary facts of life in our lean society, and provided that each and every sector plays its part, there is no reason at all why we should not be able to achieve our goal of a better life for all. Our people have got what it takes to make Singapore prosper. What is required now is an awareness of the problems before us and a concerted response made to meet the challenge of our separate destiny. Together we should be able to surge forward to a better and brighter future. Sir, I beg to move.”
“Prompt and effective action will be taken to stop the rot wherever it is found. It is ironic that the first full year after a separation we did not seek was better than the first full year of a merger and Malaysia we sought and worked for so long and arduously. For the first full year of Malaysia was the first full year of confrontation and saw our annual growth rate of 8.5 per cent go down to 2 per cent. This has not been so with the first full year of Independence after we were suddenly separated from Malaysia. Although the percentage increase of our Gross National Product is not as yet available, the figures show an increase of between 9 per cent and 12 per cent in trade and revenue - cause for quiet confidence. But this confidence must not lead us to smugness and complacency. It must not lead our people, whether entrepreneurs, or trade unionists, into believing that the world owes us a living and that things will always be all right. They will be all right only if we are constantly alert, efficient and striving. For ours is not any ordinary economy like that of many other countries in this region. Our future is at once fraught with peril and yet bright with promise, depending upon how things work out in Asia as a whole. If big power conflicts are contained and the smaller countries turn to constructive pursuits, then we shall thrive and prosper in peace. If not, we must inevitably be embroiled in grievous strife, with big powers exploiting the petty feuds, jealousies and rivalries. But these are matters beyond our dispensation. What we can see clearly is into the 70's for, barring the unexpected, we can assume a relatively quiet and secure situation in this corner of South-East Asia.”
“The Government has given all the incentives necessary to attract investment and to provide both the necessary infrastructure as well as a stable political climate to make investment possible. It is now left to our entrepreneurs to show that they have inherited the verve, resilience, drive and skill of our forefathers and take advantage of the facilities and incentives available. The Productivity Centre will help labour achieve greater productivity and thereby contribute to our efforts to industrialise and compete successfully. Responsible trade union leaders know that it is through greater productivity that wages can rise, for any increase in wages without corresponding increase in output will very quickly blunt our industrial drive and add to our army of unemployed. As I have stated before, the Government, apart from providing the basic facilities already enumerated, will hold a fair balance between management and labour. While seeing to it that there must not be any exploitation of labour, we must also ensure that entrepreneurs get a fair return for their investment. Without profits there will be no investment and therefore no employment. At the same time our society rightly expects work for wages paid. The fact of the matter, Mr Speaker, Sir, is that without primary income we have no buffer to fall back on. If there is a deterioration in the services we are rendering or, worse still, a breakdown in the provision of such services, inevitably this would lead to a collapse of our economy. It is the duty of the Government to see that no section of the population endangers the standard of efficiency, either through misunderstanding of the situation or through irresponsible behaviour, such as malingering and restrictive practices, which we see creeping into the system.”
“The Government proposes to obtain loans from the World Bank and other financial institutions, as well as from friendly countries, to finance its development programmes. Hitherto, World Bank loans have gone to traditional projects such as power generation, water supplies and port development. The Government will continue to encourage the statutory authorities to seek loans for such "bankable" projects, as well as for new schemes such as electricity and water transmission and internal telephones. Such loans will enable the statutory authorities to reduce their dependence on the Government for financing. In the Government sector loan applications will shortly be submitted to the World Bank for education, roads and sewerage development. As Singapore has an excellent record of well-planned and executed development programmes, there will be a strong case for additional loan financing from the World Bank. The World Bank has financed similar schemes in other countries. On the whole, the balance in the Development Fund will be quite satisfactory. Mr Speaker, Sir, though we are making progress, it is not fast enough to be self-sustaining nor is it of the magnitude required to solve our unemployment problem. We must never forget that Singapore has no agricultural base. We do not have what the economists call primary income. Our earnings are from services rendered, processing and refining of raw materials and manufacturing -the last growing in importance. Therefore, if we want to live well and improve our standard of living, it is imperative that we should be more efficient than others. This calls for the closest co-operation between Government, the entrepreneurs and labour and each must give of its best to bring about ever-increasing efficiency.”
“1967 Development Estimates I will now turn to the financing of the Development Expenditure for 1967. Out of the estimated expenditure of $259.7 million by the statutory authorities, it is expected that $174.7 million will be from their own resources or external loans, the balance of $85 million will come as a loan from the Government. Development expenditure by the Government is anticipated to be $151.3 million. This, together with the loan of $85 million to the statutory authorities, a loan of $3 million to the Government Co-operative Housing Society, and a transfer of $10 million to create a Contingency Fund, give a total of $249.3 million to be provided for on Government account. Financial Resources for the Estimates Although the 1967 Estimates total $249.3 million, the anticipated expenditure is estimated at $211.4 million, or about 85 per cent of the total provision. We will now examine the position of the Development Fund, which is the source of finance for the Estimates, to determine how it will meet this anticipated expenditure. The balance of the Development Fund at 31st December, 1965, was $179.7 million, while the inflow to the Fund this year (1966) is expected to be $171.3 million, giving a total of $351 million. The total expenditure from the Fund this year is now estimated at $212.9 million, which means that the balance in the Development Fund at 31st December, 1966, will be $138.1 million. The inflow into the Fund in 1967 is 57.0% expected to be $180.0 million. As the anticipated expenditure from the Fund for 1967 is $211.4 million, the balance in the Fund at the end of 1967 will be around $106.7 million.”
“Phase I of the Johore River Scheme will be completed next year and this will increase the reliable yield of water supply by another 30 million gallons a day, bringing the total reliable yield from the various sources to 87 million gallons a day for Singapore. The average yield will go up to over 130 million gallons per day. The Gas Department will have a budget of $3.5 million which will be spent mainly on the extension of the distribution network to bring gas to Toa Payoh, Bartley and Upper Serangoon areas as well as to Telok Kurau and Bedok areas. Singapore Telephone Board The Singapore Telephone Board will spend $12.9 million next year. Its major expenditure will be for the purchase of exchange equipment to extend the capacity of existing telephone exchanges, especially those serving the Katong and Bukit Panjang areas where population has increased. To complement these schemes, the underground cables and plant will be installed to link the exchanges with subscribers. It is expected that 6,000 new lines will be in service next year, while the total at the end of this year will be 70,000. Sectoral Allocation of Public Sector Development Programme The proposals of ministries and statutory authorities for 1967 in economic classification are as follows: million $ Economic Development 234.2 57.0% Social Development 148.1 36.1% Public Administration 28.7 6.9% and Defence ----- ------ Total 411.0 100.0% ===== ====== The lion's share of the allocation goes to economic development which is consistent with the objective of promoting rapid economic growth. The provision for social development ranks second in the Budget and will be sufficient to maintain and improve the already high standard of social services in Singapore.”