Low Guan Onn
Singapore
“Mr Speaker, Sir, I want to impress on the Parliamentary Secretary to the Minister for Social Affairs that the traffic congestion along the main road leading to the industrial estate in Jurong during peak hours is so bad that, if there is a fire in a factory, the factory will be burnt down before the fire-engine can reach it.”
“These engineering works are the mainstay in providing the supporting manpower skill and high productivity, especially as sub-contractors to the big engineering, ship-repairing and shipbuilding firms.”
“Therefore, in this context, we must also induce more of our female population to take up skills and work side by side with their menfolk not only in the light industries but also in the heavy metal industries as they are not liable for national service. Mr Speaker, Sir, I support the 1971-72 budget. 6.40 p.m.”
“(9) That the sum to be allocated for Head 0901 be reduced by $10 in respect of subhead 3004. Madam Chan Choy Siong: (10) That the total sum to be allocated for Head 0901 be reduced by $100. The sum of $266,370,960 for Head 0901 ordered to stand part of the Estimates.”
“I would suggest that the quantum of compensation under the Ordinance be reviewed every five or ten years so as to arrive at a more realistic figure in relation to the current cost of living.”
“In other words, the ratio of professional to technician level is only one to two graduates, and the ratio of technician to craft level is two to one graduate. This is a ridiculous situation when we talk of industrialisalion.”
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Every one of 47 lines we hold for Low Guan Onn, in date order, each linked to its source. Free to read, in full, without an account.
“Mr Speaker, Sir, the Amendment Bill now introduced by the Minister for Labour has come about because of the recommendations of the National Wages Council. This has a very important bearing on the future economic growth of our industrial programme. The introduction of this Bill may affect the viability of many companies which have been established during the last few years as a result of our attractive financial inducements and good industrial relations, and other favourable investment factors. However, I wish to point out to the House that not all these industrial firms are making profits and many of them are still struggling hard to keep on an even keel. Therefore, it is vital that an opportunity should be given to employers to study the Bill more thoroughly, and at the same time unions must keep a level-headed attitude in their demands arising from the recommendations of the National Wages Council, and not to kill the goose that lays the golden eggs. The workers are the first to suffer if their demands are so exacting as to hasten the company to become less able to break even, or force the company to close down and fall into the arms of the receivers. As an employer, I am all in favour of workers getting a fairer share of the cake. Mr Speaker, Sir, in view of what I have said, the Bill has a serious implication on our Republic's economic survival. I would move that the Bill be referred to a Select Committee instead of passing the Bill on a Certificate of Urgency today so that employers may have a chance to study the Employment (Amendment) Bill in depth and in detail.”
“[Photographs handed in to the Clerk for Mr Barker.]”
“Mr Speaker, Sir, the Housing and Development Board, under the charge of the Minister for National Development, has done a wonderful job, and our Republic has earned a world-wide reputation for providing housing for the lower income group, both for rent and for sale. However, because of the great demand for these houses, the Board has not been able to build enough to cope with the demand. There is one section of the community, the middle income group, which has not been catered for, and they have to turn to the private developers for their housing needs. Sir, my constituency has many private housing estates, consisting mainly of high-rise flats. They are either for sale or for rent. The developers are only concerned with the collection of rentals or payment of instalments from owners who have bought these houses, and pay no regard to their obligation for maintenance. The compounds are in such a bad state of repair and the gutters are leaking. Generally, there is litter and filth both in and around the compounds. Although there are agreements entered into between the tenants and the developers that the maintenance of these flats is the responsibility of the developers, such undertaking is not observed. As a matter of fact, some of these blocks of flats have been occupied for more than five years now, and have not been issued with any certificate of fitness by the Ministry. Will the Minister for Law and National Development and the Minister for Health look into these complaints of the tenants and enforce a law to protect the interests of the poor flat owners who are mostly from the middle income group and who are at the mercy of these developers? Sir, I have some pictures here showing the state of these flats for the Minister to see.”
“At the same time, it must also be borne in mind that without stability in wage rates and a disciplined labour force, foreign investors will think twice before coming to our shores. On the other hand, the minor boom prevailing in all sectors of the economy have been largely due to the efforts and cooperation of our hard-working and disciplined workers and responsible trade unions. To prevent an inflationary trend, any spiralling increase in wages due to union demands will create a situation where productivity will not in the long run catch up with the increase in wage rates. It will be a vicious circle and will affect the workers most, due to the high cost of living caused by inflation. As pointed out by the Member for Bukit Ho Swee, the Prime Minister has recently announced the granting of one month's extra pay to all Government servants. The private sector should respond to the clarion call of the Prime Minister. I have a proposal to make, and that is to give a high cost of living allowance equivalent to 10 per cent of the basic pay to all workers drawing less than a total remuneration of $750 per month. The workers in this wage bracket form the majority of our working population, and they are affected most by the rising cost of living. Sir, I hope that Members who are concerned with trade unions will sound a word of caution to all workers to be patient, and to play their part in the long-term interest of the nation. I am sure that with their understanding and co-operation, the Republic will reach greater heights of prosperity in the l970s, which in turn will mean a higher standard of living for everyone. Mr Speaker, Sir, on that note, I beg to support the financial policy of the Finance Minister. 6.55 p.m.”
“C, countries which manufacture them into finished goods, and imported back to their own countries. Our country, being so strategically placed, can play an important role as innovators and creators for new industries for these neighbouring countries in the region, if our engineers, scientists and technicians will devote their time and energy in doing research into the uses of these raw materials. After successfully getting the know-how and expertise of turning them into new useful products, we can pass on our knowledge to our neighbours and establish industries right on the spot where the raw materials are obtained, thus cutting down the cost of freight, handling charges, insurance, etc. In this way, by co-operation in our skilled manpower, expertise and finance, and establishing cross-national ventures with our neighbouring countries, the concept of regional co-operation would soon become a fact. At the same time, it will create trust and establish a better friendly relationship between all the countries in the region for their collective and mutual benefit. Mr Speaker, Sir, I will now come to another subject. The Member for Bukit Ho Swee has been very articulate about the high cost of living and the restraint on workers' wages because of the Employment Act. As an employer, I am in full sympathy with the workers. Some measures must be seriously considered by the Government to improve the earnings of workers without creating an inflationary trend. The establishment of the National Wages Council is most timely, and 1 hope that some remedial measures may result from the deliberations of the Council.”
“This may wreck the fabric of our social order, which our Government has taken so much planning, effort, and energy to build up during the last six years. In view of the above circumstances, it is vital and essential that we must give careful thought to which direction our next step will be, and in what kinds of industry we should concentrate on. We have limited manpower, but we have intelligent, educated, disciplined and adaptable workers. If we look around the countries in Asia, we can emulate the second greatest industrial nation in the world ----- Japan. She has no iron ore, bauxite, coal or oil, and yet today she is the greatest shipbuilding and car manufacturing nation in the world, owing to the industry and resourcefulness of her people who are, at the same time, creators and innovators of science and technology. Therefore, on a smaller scale, our Republic can follow the excellent example of Japan. Japan gets her iron ore from Australia and oil from the Middle East, and these sources of raw materials are thousands of miles away from her home country. We are more fortunately placed, as we are right in the centre of one of the richest regions in the world waiting to be developed. Indonesia and Malaysia produce rubber, tin, timber, and many other natural resources, which are raw materials for manufactured goods like rubber tyres, shoes, waterproof raincoats, plywood, veneer, etc. Indonesia, which is less than 30 miles away from us, is now one of the top five oil producing countries in the world. She is also rich in minerals. Therefore, all these countries are potential manufacturers of goods which are now being imported. Our neighbours send their raw materials to industrial nations, like Japan and the E.E.”
“Mr Speaker, Sir, I rise to support the financial policy statement made by the Minister for Finance in this House a week ago. There should be greater emphasis placed on research and the building up of indigenous technological capability, not only related to hardware engineering and consultancy services but also, to further end-uses of the raw materials which are found in great abundance in the countries bordering us. Since 1968, soon after the British announced their accelerated military withdrawal from our Republic, every effort and inducement was made by the Government to promote and attract industries. They were labour-intensive industries with primary and secondary level skill content to meet our unemployment problems. Today it is a different picture. We have full employment. Traditionally, Singapore has been thriving for the last 150 years on its entrepot trade with the additional function of a transhipment and servicing centre. But this important sector of the economy is growing less significant. With the growing number of school-leavers coming out each year, our Government has to diversify from the traditional commercial and servicing role to manufacturing, in order to absorb these young men and women. Therefore, for a start, we have to establish labour-intensive industries. We have been so successful in the promotion of our industrialisation programme that we are now placed in a position which has compelled us to relax our immigration laws by opening the employment gate to foreign labour to meet the shortage of industrial labour. But, unfortunately, this state of affairs cannot carry on indefinitely. We may reach an unmanageable situation if the number of foreign workers keeps on increasing.”
“Mr Speaker, Sir, I want to impress on the Parliamentary Secretary to the Minister for Social Affairs that the traffic congestion along the main road leading to the industrial estate in Jurong during peak hours is so bad that, if there is a fire in a factory, the factory will be burnt down before the fire-engine can reach it. Therefore, I hope that the fire station will be put up as soon as possible.”
“Sir, I thank the Minister for his reply and I beg leave to withdraw. Amendment, by leave, withdrawn. The sum of $462,710 for Head 1101 ordered to stand part of the Estimates. Head 1107 -”
“These engineering works are the mainstay in providing the supporting manpower skill and high productivity, especially as sub-contractors to the big engineering, ship-repairing and shipbuilding firms. Without them the big firms will find great difficulty in competing with other countries in fabricated metal work and other engineering services. I hope the Minister will bear in mind that these firms are firmly rooted and every effort should be made by the Government to enable them to continue their trade. They will then be able to upgrade their skills and acquire new know-how it will be a big loss to our Republic without them because they make a real contribution to our economic growth.”
“Although there is legal machinery by which dissatisfied landowners can appeal to the Appeals Board, more often than not the aggrieved party is not prepared to go to court to get a judgment because they know that it is a foregone conclusion and, at the same time, the legal expenses involved are too costly. Can the Minister give more sympathetic consideration to landowners, especially small landowners, who own small plots of land, so that in future acquisition of land a more equitable price is paid for land to be developed by the private sector? May I also suggest that landowners be given a period of grace for half a year to one year to develop the land themselves if they intend to do so before acquisition? Mr Speaker, Sir, urban renewal schemes will be undertaken in many other areas. I am very concerned with those areas bounded by Kallang Road, Lavender Street, and Jellicoe Road where small- and medium-sized engineering works are situated. Many of these engineering workshops have been in existence for two or three generations. The business has been passed down from grandfather to father, and from father to son. The skills also have been passed on from the elders to the children. They have been acquired through the hard school of experience and through trial and error. Mr Speaker, Sir, will the Minister give the House an assurance that when these areas which I have mentioned are acquired for urban renewal, he will provide a suitable area with clean and cheap factory buildings for these engineering works so that they can survive? A reasonable rental can be charged for these new workshops. At their present sites they pay low rentals and their overheads are low.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head 1101 be reduced by $10 in respect of subhead 1061. Mr Speaker, Sir, I fully support the policy of the Government in carrying out its urban renewal scheme to make our city greener, cleaner and more beautiful to attract more tourists and to create a more modern metropolis in South-east Asia. However, I would like to comment on the implementation of this policy which involves the acquisition of lands belonging to the private sector. In the process of acquisition of private lands belonging to individuals, much criticism, acrimonious complaints and dissatisfaction have been expressed by the public over the arbitrary prices paid for such lands which have no relationship to the market price which can be obtained for their lands. Private landowners welcome and are very happy and willing if lands are requisitioned to build roads and other public projects for national use. However, the lands acquired by the Ministry of National Development for the private sector have been re-tendered for sale at prices five to ten times more than the original price paid for, and it is in such cases that genuine grievances have been expressed. The owners feel that they have not been fairly compensated and that they are being exploited in order to make the rich people richer, especially when land has been sold with all the built-in incentives provided by the Government. Can the Minister for Law and National Development explain to this House by what criteria lands which are to be acquired for development are evaluated and the price arrived at? Is the valuation undertaken by a Government or an independent valuer?”
“Sir, will the Traffic Police give them a target date to finish all the 21,000 cases.”
“Mr Speaker, Sir, I am happy to note that in the Estimates for the fiscal year 1971-72, provisions have been made for the increase of two more Inspectors, eight more Technical Officers, and 16 Technicians to strengthen the Factory Inspectorate. This is a long overdue provision. In this connection, I wish to take this opportunity to commend the present Chief Inspector of Factories and his assistants on performing their job, under stress and strain, with dedication and loyalty. Despite the rapid increase in the number of factories, the Factory Inspectorate has not had any increase in staff for so long. Taking their professional experience into consideration, their conduct bears testimony to their selfless devotion to their work and duty and to the nation, without looking for new pastures to better their prospects. Many a man would have done so a long time ago. Sir, I seek to clarify from the Minister the nature and duty of the Technical Officers and Technicians respectively. What kind of paper qualifications and practical experience must they have? I am also glad to hear from the Minister of State for Labour just now, in reply to the Member for Jalan Kayu, that in line with our industrial growth, the Government has, at long last, taken steps to revise the Factories Ordinance and the Workmen's Compensation Ordinance. I wish to remind the Minister that the new provisions in the Factories Ordinance should contain safety and health regulations which must be observed by both parties, that is employers as well as employees, and not a one-sided affair to apply to employers only.”
“Therefore, in this context, we must also induce more of our female population to take up skills and work side by side with their menfolk not only in the light industries but also in the heavy metal industries as they are not liable for national service. Mr Speaker, Sir, I support the 1971-72 budget. 6.40 p.m.”
“What will be the requirements for the other sectors? From the figures obtained from the Year Book of Statistics, 1969, the University of Singapore and Nanyang University produced 1,639 graduates at tertiary level in 1969, whereas only 593 graduates at technician level passed out from the Polytechnic and Ngee Ann College in the same year. The technical and vocational institutes and the Industrial Training Centre turned out 4,129 graduates between the ages of 17 and 19 at craft and trade levels. As soon as they passed out, they will have to be taken into national service. In advanced and developed countries, the ratio of tertiary to technician and craft level is 1: 5: 25, whereas in our case it is 3: 1: 7. Although I am aware that from now onwards national servicemen who have undergone two years of full-time service will be discharged, I propose to the Government that before they are discharged on to the employment market, they should be given at least six months of industrial training. Therefore, I cannot see how we can prevent crimping on a large scale in the existing industries, resulting in inflated salaries and wage rates to the detriment of the economy of the republic. Mr Speaker, Sir, I do not want to sound an alarmist but I must warn this House that quick and concrete measures must be adopted to solve this manpower problem if we are to face our future with optimism, as outlined by the Minister. The key to our progress and economic growth in the years to come is our human asset, which will play the most important role in making our nation a viable, independent and sovereign country in which both men and women must play their effective contributory part.”
“Although every effort is being exerted to create a more favourable investment climate, a shift of greater emphasis has been necessary on a new educational policy from one of academic type to one of a more technical bias by training, and to produce a greater number of tertiary and technician echelons of skilled personnel. But are we doing enough in the technical education field, as industries and national services are competing for the output of tertiary technician and vocational graduates? I concur with the view of the Member for Whampoa for a co-ordinating manpower body to be set up. The time is ripe and necessary to establish a high-powered national central council to co-ordinate and plan the manpower requirements of our republic so that the input has a direct bearing on the output of the graduates. One can see from the estimates that on a tertiary level we have a situation where the University of Singapore and the Polytechnic are under the Ministry of Science and Technology, and Nanyang University and Ngee Ann College under the Ministry of Education. Unless quick and urgent steps are taken to centralise the co-ordination and training of skilled manpower, both for the industries and the military requirements at all levels, the republic may be caught on the wrong foot with all foreign investments coming in on a large scale, as predicted by the Minister. He has mentioned in his speech that at the beginning of 1971 the total direct foreign investments in manufacturing industries will total $1,700 million, and will be in full production from two to five years. Assuming an investment of $30,000 will create one job for one worker, the total number of people who will find employment in these newly-created industries alone will be 56,000.”
“But with all this optimism and accelerated growth on the economic front, I wish to make one observation in regard to technical training and technical education in that part of his budget statement. The budget for 1971-72 presented by the Minister is to promote greater growth in strong and export-oriented industries. To achieve this objective, every ingenious fiscal inducement is being thought out and legislated to attract large foreign enterprises which enjoy prestige in international markets like the giant corporations of Rollei, Rockwell, Plessey, Philips, etc. As a result of the expanding economy and rapid industrialisation, there are already ominous signs of a creeping cost of living and an escalation of the wage rates of semi-skilled and skilled men in the manufacturing industries. Unless measures are brought forth to arrest this inflationary trend, the republic will soon become priced out of the export markets in the services we can offer. This trend has been brought about by the great influx of foreign management and technical personnel belonging to these enterprises, but these foreign managerial and technical personnel are most welcome to our republic in imparting the technical know-how and expertise to their local counterparts in these industries. Unfortunately, for the majority of us, they have also large spending powers which have a direct bearing on our commodity and service prices. At the same time, there is a great shortage of skilled manpower, resulting in too few men chasing too many jobs.”
“Mr Speaker, Sir, I rise to join other Members on this side of the House in commending the Minister for Finance on presenting his first budget speech which is sensible, balanced and most welcome to the public. It is a painless budget without the necessity of introducing new taxes or increasing the existing rates of taxes. As the Minister has mentioned, the accelerated run-down of the British military bases will commence this month, and will be completed by the end of the year. This operation will result in a loss of British military spending to the tune of $300 million, yet the Minister does not foresee any necessity for additional taxation. This bears testimony to our healthy economic growth and to the success of our industrialisation programme. This happy state of our economy has been brought about in a large measure, as reflected in the 15 per cent growth, by the wise and bold planning of his predecessor, Dr Gob Keng Swee, and by the Minister's own active and vigorous execution of this economic policy when he was the Chairman of the Economic Development Board, and at the same time by the contributions made by the disciplined and very adaptable workers of our republic under the able leadership of the N.T.U.C. May I remind the Members for Telok Blangah and Moulmein that not every employer is a bad employer. They have transformed the destiny of the republic from one of utter gloom and pessimism, soon after separation from a neighbouring country to one of healthy optimism and growing affluence, which promises a more equitable and just society with equal opportunities for all, and with a higher standard of living than at present, which is already one of the highest in Asia in the `80s given political stability and security in this region.”
“(9) That the sum to be allocated for Head 0901 be reduced by $10 in respect of subhead 3004. Madam Chan Choy Siong: (10) That the total sum to be allocated for Head 0901 be reduced by $100. The sum of $266,370,960 for Head 0901 ordered to stand part of the Estimates. Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.”
“(13) That the sum to be allocated for Head 0601 be reduced by $10 in respect of subhead 2003.”
“I would suggest that the quantum of compensation under the Ordinance be reviewed every five or ten years so as to arrive at a more realistic figure in relation to the current cost of living. In this way the decreasing purchasing power of our dollar as the years go by will be in line with the cost of living then ruling, so that the families of these unfortunate victims working in heavy industrial establishments can have hope and succour without losing the human dignity as unwanted members of our society, through no fault of their own.”
“Our Government, after more than 10 years in power, should have seen fit at an early date to revise the Workmen's Compensation Ordinance, 1955, to meet the conditions and circumstances prevailing in Singapore in the l960s and l970s. I wish to inform the Minister that the Hong Kong Government, which is a colonial government, has passed a law which makes the quantum of compensation HK$45,000 for death and HK$60,000 for total disablement. But here, although we are a Government elected by the people, we are not sympathetic enough to our workers who are the mainstay of our economic survival. It is to be expected that, with the influx of overseas personnel, the cost of living will rise rapidly. In fact, this is already taking place. Rentals have gone up by 100 to 200 per cent. The water rate has also gone up. Other daily necessities, also cost more. Lux soap which used to be 30 cents per cake, has gone up to about 40 cents now. Bearing these factors in mind, Members on this side of the House will agree with me that the purchasing value of our dollar has been reduced by about 30 or 40 per cent since 1955. Therefore, if a worker's family get $7,200 or $9,600 benefit on death or total disablement respectively, they will find it extremely difficult to buy even the bare daily necessities of life. Therefore, they will become a burden to the state, and this will create social problems for the Government. Mr Speaker, I wish to suggest to the Government to review the Workmen's Compensation Ordinance, 1955, and to bring the quantum of compensation payable on death and total disablement to workers to a more realistic figure, commensurate with the cost of living obtaining in the l970s. At the same time.”
“27 of 1969) show that that number of fatal and permanent disablement cases for the years beginning from 1964 is as follows: Permanent Death Disablement Total 1964 85 448 533 1965 98 539 637 1966 108 552 660 1967 68 598 666 1968 109 695 804 During the years 1964-68, when the tempo of industrialisation was stepped up, one can see from these figures that the percentage increase in death and permanent disability was almost 50.8 per cent. Therefore, it is obvious that the dependants of these victims have to go to the state for social welfare assistance and to make claims under the Workmen's Compensation Ordinance. It was pointed out by the Member for Jalan Kayu that the present rate of compensation is $7,200 or 36 months' earnings; for death and total disablement $9,600 or 48 months' earnings. I wish to point out to the Minister that the Workmen's Compensation Ordinance, 1955, is actually an amended version of the British Workmen's Compensation Ordinance, which was introduced in 1933. The present Ordinance, therefore, is already 15 years behind time. Mr Speaker, Sir, I wish to emphasise to this House that our party is a democratic socialist party. As an employer, I have always the workers' welfare at heart. Some hon. Members: Hear, hear!”
“Mr Speaker, Sir, I ask your permission to speak on this subhead, because I have already spoken on my amendment to subhead 2003. Sir, I support my colleague, the Member for Kallang, in what he said. In respect of the question raised by my colleague, the Member for Jalan Kayu, I am not very happy with the reply given by the Minister. Although he is a democratic socialist, he does not seem very socialistic in his reply. I wish to elaborate on the statement made by the Member for Jalan Kayu. With rapid industrialisation and increasing activity in off-shore exploration, many new industries, such as off-shore rig manufacturing, ship-repairing and ship-building, iron and steel manufacturing, and other ancillary engineering industries, have been set up, and more will be established in future. These industries employ many skilled and semi-skilled tradesmen. These workers comprise the most important natural resources of the state as they make very significant contributions to the economic growth of our Republic. We cannot afford to lose them through death or permanent disability. More stringent legislation should therefore be provided to improve the standard of safety in industries, so that sufficient safeguards are made for the lives of the workers. The incidence of death and permanent disability of these workers due to accidents are now very high. Most of them are young and have many more years of useful economic productive work to contribute to their employers, and in turn to the state. More often than not, they have large families, and are the main bread-winners. Statistics obtained from the Annual Report of the Ministry of Labour, 1968 (Paper Cmd.”
“Mr Speaker, Sir, the Parliamentary Secretary to the Minister for Labour has not fully answered my question. I am asking about a reciprocal arrangement with the country across the Causeway and whether such an arrangement can be made.”
“In other words, the ratio of professional to technician level is only one to two graduates, and the ratio of technician to craft level is two to one graduate. This is a ridiculous situation when we talk of industrialisalion. In view of the foregoing situation facing Singapore today, I would appeal to the Minister to reconsider relaxing his present policy, i.e., whether he would allow graduates of technical institutions within the age group who can get employment to remain at their jobs but to do part-time instead of full-time national service training, as some of these graduates are the sole breadwinners of their family.”
“The Minister will agree that the calling up of these graduates to undergo national service training is a great wastage of trained manpower which, although non-productive, is vitally essential. If these graduates are called up as soon as they pass out, they will lose much of the theoretical and academic knowledge which they have acquired in their three or four years of education in the higher institutions of learning after two years of national service. I fully endorse the Government's policy that all able-bodied young men of all types of training and educational standards within the age group should be trained and called up for national service. But our Government must make a more pragmatic approach to the problem of defence and economic growth as they are complementary to each other in our national survival. We must strike a balance. In other words, a certain percentage of the technical graduates at the three levels of training should be released to build up the industries during the three critical years, so that by the end of 1971 these industries will be viable and will be able to expand to provide more job opport unities for released national service men and school- leavers. I have here the Singapore Polytechnic Annual Report for 1967-1968. If you turn to page 39, you will find that during the years 1961 to 1968, we produced only 502 professional graduates, 1,043 technician graduates, and 520 craft graduates. In other words -”
“Mr Speaker, Sir, I wish to associate myself with the points raised by the Member for Delta yesterday evening before the House adjourned. I do not want to understate the importance of building our nation's defence capability in the short time available before the British military withdrawal to secure our nation's independence and sovereignty. But, at the same time, we must bear in mind that with the phased withdrawal of the British military forces within a period of three years, the Republic will have lost an income from outside sources to the tune of $400 million per year, totalling $1,200 million by the end of 1971. This gigantic loss of foreign exchange will create huge problems in unemployment and loss of income to a great many of our citizens. To offset this loss, we must generate greater economic growth at the same time. With political stability and good industrial relations created by the recent passage' of the Employment Bill in this House, we have already attracted many overseas investors. As stated by the Finance Minister, they are already committed to put their capital in our Republic to set up industries which are mainly export- oriented. But the greatest drawback to the realisation and fruition of these export-oriented industries, which can employ many thousands of workers, is the dearth of trained manpower at professional, technician and craft levels, and our inability to supply these trained men at this time. Mr Speaker, Sir, I wish to draw the attention of the Minister for Defence to the fact that his Ministry has called up every graduate within the age group from the three levels of technical education to join national service as soon as they have passed out from the institutions.”
“Mr Speaker, Sir, I completely disagree With the Parliamentary Secretary. I have got the figures for 1965 for the following items: singlets used to cost 60 cents each and today it is being sold at 75 cents; socks used to cost $7 per dozen as against $7.80 per dozen today; toilet papers used to cost 18 cents per roll as against 23 cents per roll today; Lux soap used to cost 25 cents per cake as against 45 cents per cake today. Can the Parliamentary Secretary explain the increase in prices between 1965 and today in the light of his contention yesterday that there was not much increase in the cost of living?”
“To succeed in all this, we must raise the quality of our goods and improve the efficiency of our services to the maximum. Workers, like any other Singapore citizen, will no longer be in a privileged position. They will be called upon to make sacrifices in the national interest by increasing productivity and efficiency. Therefore, the trade unions will now have to play a more positive role in educating their members to respond to these changes of circumstances which are crucial in the years ahead for our existence as an independent and sovereign nation. The Industrial Relations (Amendment) Bill, 1968, merely re-establishes the status quo between labour and management which is long overdue in industrial relations. With an enlightened attitude and positive co-operation on both sides, our nation will co down in the annals of history that we have achieved the impossible by the enactment of these two Bills. Our labour will earn the hallmark of being the most hard-working, intelligent, responsible, skilled and industrious in Asia. When this objective is reached, these two Bills will have generated the establishment of more and more industries. This will mean more avenues of employment for our citizens. With that, Mr Speaker. Sir, I beg to support the Bill. 4.35 p.m.”
“Mr Speaker, Sir, I have to remind the trade union Members of this House that no sensible and responsible management will try to get rid of a trained and exemplary worker when he is a manpower asset in the viability of the company. The profits of the company depend on his productivity and skill and the effort he puts into his work. How then can an employer afford to dismiss such a worker? Instead, management has to think of incentives to reward his contribution to his company and to induce him to work as long as possible for the company, because a worker takes many years to be trained before he is really effective in his contribution. Moreover, provisions are incorporated in the Bill by which wrongful dismissals, as stated by the Minister, can be referred to him, and his decisions to redress any wrong are final. This is a more satisfactory procedure to avoid time-consuming dialogues between the two parties to justify each other's actions. Therefore, these two Bills will provide a solid foundation to woo local trading companies, which are now hesitant, and foreign industrialists to invest in our island state, as investment is necessary for our economic survival. The presence of the British military bases provides almost 20 per cent of our national income. This 20 per cent income comes from abroad. With the British withdrawal by 1971, the whole of this source of income will be reduced to zero. We will face a cruel world which does not owe us a living. We must make up for the loss of this income derived from the presence of the British military bases here. We also face competition with other industrial countries in Asia. We must also maintain our present standard of living which is the second highest in Asia.”
“Mr Speaker, Sir, with the enactment of the new Employment Bill into law, a new chapter in the history of labour legislation in the Republic will have been written with the complete overhaul of three previous Acts which were legacies of the colonial past. It engenders a fertile and attractive investment climate for both local and foreign capital. But even with these new terms and conditions of employment as set out in the new Bill, investors will still be wary about investing in our Republic unless certain management functions such as employment, promotion, transfer, dismissal, retrenchment and reinstatement are restored to the rightful party. These are the inalienable rights of a company's management. In other words, the Industrial Relations (Amendment) Bill, 1968, is a natural follow-up of the Employment Act. These two pieces of legislation are just like Siamese twins and cannot be separated if they are to produce the desired objectives which the Government has in mind. During the years before 1966 when the history of our industrial relations was nothing to be proud of, the unions encroached upon the management functions of commercial and industrial companies. For instance, it was almost impossible in those years to get rid of a malingering and bad worker because he could take shelter and protection under the umbrella of his union. Very often if a single worker was dismissed on strong and legitimate grounds, it would result in protracted negotiations between union and management, and if the negotiations came to nought, it usually ended in a strike resulting in heavy losses of revenue to the company. Very often, if it was a foreign concern and the losses were too heavy to bear, the concern would just fold up and go away.”
“Finally, I have to sound a warning. To make a success of the operation of this Employment Bill, both workers and employers must remember constantly that both labour and management have to make sacrifice in the national interest and to maintain industrial peace at all costs in the crucial years ahead. By maintaining cordial industrial relations, a good image of Singapore as a country of economic and political stability will be projected abroad with more foreign investors being attracted to our shores. In other words, with more industries established, more jobs will be created, more types of manufactures can be more exported, more profits can be earned and more revenue will go to Government for defence to maintain our security. The end result will be a more prosperous Singapore in which everyone - be he an employer or a worker -will share in this prosperity. Our citizens should discipline themselves and face the future economic problems with good sense, soberness and make some personal sacrifices. What is considered a sacrifice in the short-term interest will produce material and financial benefits in the future. Sir, I support the Bill moved by the Minister for Labour. 3.31 p.m.”
“The quantum of his share should not be the subject of negotiation because, as often as not, such negotiations lead to industrial disputes and sours the industrial relations between labour and management. I would suggest that the share of the net profit of the company should range from two to four per cent among all workers drawing less than $750 per month. Provision of this small percentage out of the net profit may directly affect the yearly bonus and fees of the directors and management of the company. But in showing this generosity to the workers, the company will be more than compensated by the goodwill and co-operation that is expressed by the workers in more efficient productivity. There should be no bargaining on the quantum of bonus. It should be left to the sole discretion of the management. Existing collective agreements with the bonus clause should, in my opinion, be permitted to run out by the end of 1968, irrespective of their expiry date. New agreements should be negotiated in the spirit of the new Bill when it is passed by this House. With the enactment of this new Bill into law, it would be wise that the first agreement drawn up in the context of this Bill should be for a duration of five years instead of three years for new industries to be set up and industries already granted pioneer status. It takes a few years before any newly established industry can really stand on its feet and show a sound balance sheet. I may sound unreasonable in my views, but in the long run the country in particular and the workers in general will reap the benefit when the industries can progress and become viable to generate greater economic growth. This clause, if incorporated into the Bill, will also add impetus to more and more foreign investors coming into Singapore.”
“In most existing collective agreements between management and trade unions, there is already a provision for payment of bonus ranging from half a month's to three months' wages. To take away these fringe benefits from the workers without giving back something to them would be unfair and harsh. A bonus is the equivalent of a red packet which the Asian employer as a matter of tradition or custom gives to his workers during the New Year as a gesture of goodwill. This bonus provides a source of ready cash either to purchase new clothes and shoes to celebrate the most important festive occasion once a year, or to purchase books, school uniforms, etc, for school-going children when school reopens at the beginning of each year. Therefore, it is necessary as a safeguard in the interest of workers against irresponsible employers to provide a clause to provide for bonus with a minimum of one week's wages and a maximum of one month's wages. As a further incentive to and as a reward for greater productivity and profit for the worker, we should consider provision for an extra bonus, additional to the statutory maximum of one month's wages mentioned above. This additional bonus has to be earned and must be related to the net profit of the firm. The worker's actual contribution, by working harder and putting in more effort to increase productivity, thereby producing goods at a more competitive price to earn more profits for the firm, should be recognised in some concrete and financial form. His entitlement to a share of the net profit is a just claim as he would be partly responsible for any favourable financial results each year.”
“The sort of relationship existing between labour and capital will finally decide our destiny as to whether we can succeed as an industrial and servicing base for South-east Asia and a thriving and prosperous nation. Much depends upon the type of leadership we have in both camps. The last two years of industrial relations as compared with those of the 1950s, which gave a sour and bitter taste to labour, have demonstrated that we have progressive and enlightened management on the one hand and responsible and sensible trade union leaders on the other. I will now make a few comments on two or three new provisions in the Bill. If they are passed without amendments, they will have unsettling effects on the minds and morale of labour. Clause 15 - employment of a person after the age of 55 years. To retire compulsorily a worker earning less than $750 from his firm is unrealistic and not alive to our present developing economy. Our nation has just begun to industrialise and in many of our small and medium-sized local enterprises, supervisors, technicians, foremen and charge-hands usually draw salaries of less than $750. With the experience and expertise acquired during the long years of their working life, they are mainly responsible for running the firms for their employers. If these supervisory and shop-floor staff and experienced workers are retired at the age of 55, these enterprises will be crippled and replacements will be difficult to find. A more reasonable age to retire a worker in these special categories which may be spelt out in the Bill should be 60 years if they are still medically fit. Clause 47 - payment of bonus.”
“The enactment of this Bill into law at this crucial period of our short history will go a long way to promote and foster that climate so necessary for our economic survival. May I advise hon. Members of Parliament who are from the trade unions that it is their bounden duty to pass on by every means to every worker at every level in the land the meaning and significance of the Employment Bill. The enemies of our State should not be allowed a chance to use this Bill as a rallying cause for their disloyal and unpatriotic motive to create industrial strife and thereby engender chaotic economic conditions. If they succeed, we will fall into their trap. Our nation will perish and we will never rise again. Our identity as an independent and sovereign Singapore in this part of Asia will pass into the limbo of history. The new Employment Bill, I agree, will generate with good cause, fears in the minds of the trade union Members of this House, as it will open opportunities to ruthless and less social conscious employers to exploit labour by extracting the maximum of financial returns and giving the minimum of benefit in return. But in the final analysis, it takes two willing parties to form a harmonious and understanding partnership, and with goodwill on both sides much can be accomplished. In industries and commercial houses, labour and capital must strive sincerely for a healthy and true partnership. There must be some measure of sacrifice for the national interest and not sectional interest in order to achieve productivity and efficiency at the highest pitch. When these twin objectives are achieved, then only can we produce goods at competitive prices for export.”
“I will deal with the important clauses later. Members of this House must always bear in mind that newly emergent independent countries and other countries situated in this part of Asia which have achieved independence much earlier than we have, are also actively promoting their economic growth in diversifying their hitherto agricultural economy. This they do by encouraging the setting up of light and secondary industries. These countries have cheaper labour and unfavourable working conditions and the terms of employment of the workers are exploited to the full by capitalists. We in Singapore are already finding it difficult to compete in certain types of manufactures for export because of lower cost of products from these other countries. To compete with them, we will have to use automation and computers in our industries, which will mean that we will employ only a small number of workers. Therefore, we cannot provide jobs for our mounting unemployed employables who are flooding the labour market each year. For us, the alternative is to create the maximum number of job opportunities for our untapped labour force who can be trained to acquire new skills. Our people have a natural aptitude for work in labour intensive industries, such as the textile mills, electronic industries, metal and steel fabricated industries, ship-building and ship repairing industries, etc. In order to attain these latter objectives and to meet the challenges ahead brought about by the accelerated British withdrawal, we must have settled and stable labour conditions to give confidence and inducements to foreign, and local investors to make our Republic the industrial base of this region.”
“Mr Speaker, Sir, I rise to lend my support to the Second Reading of the Bill moved by the Minister for Labour. If it is passed by this House, it will replace the existing three Ordinances, namely, the Labour Ordinance, 1955, the Clerks Employment Ordinance, 1957, and the Shop Assistants Employment Ordinance, 1957. The new Bill embodies most of the provisions in the three Ordinances mentioned above, and introduces some new ones. This new Bill is intended to rationalise and regularise the working conditions of both white-collar and blue-collar workers, whether they are employed in commercial and trading firms or industrial establishments in the new industrial estates, and to increase productivity and efficiency. It will do away with all the anomalies in the existing Ordinances and is more in keeping with our concept of an equal and just society. Unless our Government seeks to establish a healthy investment climate so necessary and vital for the setting up of export-oriented and labour intensive industries, our task to solve the unemployment problem will be hopeless. To encourage more investments in industries, both from local and foreign sources, certain terms and conditions of service should be so legislated that there is little room for prolonged negotiations under the present Industrial Relations Ordinance, 1960. In the national interest and to develop greater economic growth, such a Bill as the new Employment Bill is essential for the crucial years ahead. The measures as provided in the new Bill may on the surface appear to be repugnant and retrogressive to our trade unionists, but I am of the opinion that there are only a few clauses which may have to be amended to safeguard the interests of workers against unscrupulous employers.”
“Among employers, there may be a few who will try to take undue advantage of the changed situation brought about by this new legislation. To this class of employers, I would strongly advise them that they will not get the support of this Government and they will be looking for trouble for themselves. I hope the Employers' Federation, the Chambers of Commerce, and trade unionists will meet often round the table to iron out their differences and problems to minimise the areas of dispute to prevent incidents of industrial strife. Both management and labour must strive hard not to offer opportunities to the enemy camp to find excuses to generate industrial instability, thereby scaring potential investors. With the accelerated withdrawal of the British Military Forces, it is the bounden duty of both employers and workers to project an image of confidence, good government, political stability and responsible labour to make our Republic the industrial centre of this region. In this sacred task of meeting the challenge and the problems we have to face in the crucial years ahead, everyone, as long as he is a citizen of Singapore, has a vital role to play. Workers and employers in this respect have to think more of the national interest than personal or sectional interest. Each is dependent upon the other and only through partnership in the common endeavour will win the day. We sink or swim together. This message must be communicated to the lowest level of the masses. Mr Speaker, Sir, I give my full support to the motion moved by the Prime Minister. 5.55 p.m.”
“This second fund will also assist in further economic development by providing capital for more investments in new industries and, at the same time, will provide to the workers a secure source of financial assistance in the form of savings when they retire. When the new changes come into force, trade union leaders should educate their members to see that productivity and efficiency, the main objectives of this new Bill, are achieved. This will put the Republic on a more competitive basis compared with Japan or Western European countries in many of our industries; but still less so than countries in Southeast Asia, like Hong Kong and Taiwan. We have a small domestic market for our manufactured goods and we have to export by producing goods at competitive cost and quality. The output of each factory is in excess of local consumption. To capture the domestic market, every encouragement should be directed towards our people by mass media of communication to buy locally-manufactured goods even at a slightly higher price. Government and statutory bodies which spend a great deal of money on foreign imported materials should insist on local manufactures even though the price may be 10 per cent more than the imported items. In this way, we will also prevent import leakages and save our foreign exchange reserves. The more we import from abroad to meet our local needs, the more we have to dip into our reserves. I am of the opinion, Sir, that when the proposed Employment Bill is passed by this House and becomes law, there will be weeping and gnashing of teeth among the workers. The clerical staff of the commercial sector will be the most affected.”
“To touch on the aspect of industrial relations, the proposed new legislation will erase many areas of friction and pave the way for better understanding and co-operation between labour and management, which is very essential for industrial peace. But if we are to take full advantage of the implications of this new Bill which is to be legislated by this House, then labour and management will have to see that greater productivity relative to cost and output is achieved through these changes. Mr Speaker, Sir, I wish to allay the fear expressed by the hon. Member for Bukit Ho Swee, that maximum co-operation may not be forthcoming from employers if this new Bill is passed. Here I must sound a note of warning to all employers in the industrial and commercial sectors to take cognisance of the personal sacrifice every worker will have to make in the long-term interest of the nation in the industrial front when this Bill is passed. It is only fair and reasonable that they, as employers, have to make up something in return to compensate for their losses. Speaking as employers, we should not take advantage of the new changes in the labour policy and make more profit at the expense of the workers. There should be no exploitation of the situation by employers if the proposed Bill is passed. Economic and political considerations have brought about the introduction of this Bill which is aimed at ensuring the survival of Singapore. Both labour and management should co-operate and work towards the common goal of building a stable and viable Singapore. A second Central Provident Fund, which will be set up, should therefore compensate for the new conditions of employment resulting in the loss of certain fringe benefits.”
“These laws have given rise to misgivings and much ground for bad industrial relationship during the years from 1955 to 1963. They have caused many heartaches and headaches to management on the one hand and frustration and dissatisfaction to trade union leaders on the other. They were enacted to enhance the status of white-collar workers and to treat with contempt those who earn their living with their hands. In the context of Singapore today we can ill afford this situation. Government has taken a wise step to introduce the proposed comprehensive Employment Bill. In view of the fact that the Government is pro-labour in its policy, it is courageous to repeal the existing labour laws by substituting one comprehensive Bill to standardise and regulate the terms and conditions of employment. This will be progressive and far-sighted legislation and will go a long way to erase many areas of discontentment and grounds for dispute between employer and employee. It demonstrates our Government's concept of an equal and democratic society in which all wage-earners will be governed by the same conditions of employment and enjoy the same fringe benefits. It is gross injustice and, to say the least, creates areas for discontentment if two workers work in one place and within one compound and do the same kind of work but observe a different number of weekly working hours. If we are to hold to our belief and concept of equal opportunities for all, then all workers should be treated alike. I hope the new Bill will apply equally to all employees in the Government sector and other statutory bodies.”
“If we want to get rid of the human frustration and dissatisfaction and if we believe in the equality of all citizens, then the Government has to rationalise our existing labour legislation. In the past I have pointed out to Ministry officials dealing with labour that some radical changes have to be made to standardise the working hours and other conditions of employment and, at the same time, to rationalise the fringe benefits so as to reduce abuses to the minimum. Even with rationalisation, our labour conditions are much better off than those obtaining in other parts of Asia. Our wage rates are still much higher than those of any other countries in Southeast Asia, and our per capita income is the highest in Asia next to Japan. Without the accelerated withdrawal of British troops from Singapore, I believe no attempt would have been made to bring about these changes in the proposed Employment Bill. Something has to be done by way of legislation to bring about more equitable and satisfactory conditions of employment for all workers irrespective of the nature of the work they are doing. This new Employment Bill will create a better impression on would-be foreign investors and much publicity must be given to it abroad by our Government. I commend the Government for having taken the bold and forward-looking policy of taking the necessary steps to repeal the three Ordinances now existing, namely, the Labour Ordinance, 1955, the Shop Assistants Employment Ordinance, 1957, and the Clerks Employment Ordinance, 1957. These Ordinances should have been repealed long ago as they are out-dated and do not fit in with our times and the policy of our Government. These are relics of the past when divide and rule was the best policy to govern a people.”
“Despite all these advantages, we are not attracting enough industries with both labour intensive and export-oriented types. What are the underlying reasons for this lack of enthusiasm and response? Since the P.A.P. Government came to power in 1959, nothing has been done in regard to our existing labour laws which require long overdue reforms. One of the bugbears which deter foreign companies from investing in our Republic is our labour laws which require tidying up and rationalisation. Clerical staff in industrial offices work 44 hours per week, whereas the same kind of clerical staff performing the same kind of work in commercial houses work only 39 hours per week. To give you another example, Mr Speaker, Sir, clerks in industrial plants have 11 paid holidays per year, whereas clerks in commercial firms and in the administrative offices of industrial establishments have 16 paid holidays a year. There is no difference in the nature of the work and the conditions governing the work of clerks, whether they work in commercial firms or industrial firms. The human element of frustration and dissatisfaction is accentuated by creating different benefits due to the shortcomings in our existing labour laws. A new situation has arisen because our Government is now concentrating more effort on the intensification of our industrialisation. As a result, both administrative and production work will be carried out within the same compound and in the same office. These new conditions and situations will be found in the new industrial estates. In other words, clerks will be performing the same kind of work and amidst the same environment. Because of the existing labour laws, the industrial clerk is discriminated against by having a lesser number of public holidays.”
“Mr Speaker, Sir, may I have the privilege of joining our Prime Minister in expressing my vote of thanks to the President who has graciously delivered his Speech to the Second Parliament so soon after his recovery from his recent illness. The measures as outlined in the Addendum to the President's Speech have my full support. Without such measures to meet the challenges we have to face during the next four years, our chances of survival as an independent and sovereign people are less hopeful. Mr Speaker, Sir, I wish now to touch upon the subjects under the headings "Comprehensive Labour Legislation" and the "Central Provident Fund" contained in the memorandum presented as an Addendum to the President's Speech. The industrial climate in the Republic of Singapore to induce foreign investors has been attractive during the last two years and has improved considerably since then. But investors have not come forward in large numbers as had been expected. Investors from countries like Japan, Taiwan and Hong Kong and countries in Western Europe are still wary about labour conditions in the Republic. The number of investors is not up to our expectations because of the prevailing conditions of uncertainty and instability in the surrounding regions of this part of the world, except our island Republic. We can take pride in our country as an oasis of political and economic stability. We have a currency which is one of the strongest in Asia, and labour with a high standard of literacy, a high degree of skill and endowed with a natural aptitude for taking up new skills with comparative ease. We have excellent harbour facilities and our financial, insurance and banking services are of the highest order and efficiency in Southeast Asia.”