Richard Hu Tsu Tau
Singapore
“Sir, I think it is eminently fair, because the proposal really is for the Government to spend money to give shares to Singapore citizens. Either you agree or you do not agree. Or, if you agree, perhaps you consider the amounts insufficient or too much.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time". The purpose of this Bill is to make provision in accordance with Articles 148(2) and 148C(2) of the Constitution for additional expenditure in excess of the provisions authorised by the Supply Act, 2001.”
“I think the Prime Minister and DPM Lee have already explained it will be based on income levels, with people living in flats as a proxy. So there is no political content in it. It depends on the income level, whether you have served national service or whether you are an elderly person.”
“I really do not understand. I know you are arguing on technicality for which I agree that you may have a point. But, nevertheless, because it is a proposal to share Singapore's surpluses with the population, the distribution is not something which you can argue against.”
“As I said, the estimates will be available around mid-October. I do not think, at this time, I want to give a specific date when the second package will be announced, but it will be done as soon as practicable. IN-PRINCIPLE AGREEMENT WITH MALAYSIA ON OUTSTANDING BILATERAL ISSUES (Assessment) 4.”
“Mr Speaker, Sir, when the $2.2 billion off-Budget package was announced in July this year, we said that the Government would do more to assist Singaporeans if the global economic situation worsened in the coming months.”
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“To help ease the pressures of land-related business costs, the Government will implement the following measures. Additional Property Tax Rebate First, in addition to the 15% property tax rebate which was announced during the FY98 Budget Statement, the Government will grant an additional 40% property tax rebate on commercial and industrial properties for the year commencing 1st July 1998 for a total of 55%. The additional revenue loss to Government is estimated at $400 million. HDB and JTC will pass on all of this rebate to their tenants and lessees. Likewise, the Government strongly urges private sector landlords to pass on at least half of this rebate to their tenants. Rental rebates by JTC & HDB Second, JTC and HDB will increase the rental concessions to their tenants and lessees. As part of JTC's continuing efforts to adjust its rents to varying market conditions, JTC will reduce its posted rents by up to 12%. This will benefit new tenants and those whose tenancies come up for renewal. In addition, JTC will also grant enhanced rental rebates of up to 20%, depending on how far the existing rents are from JTC's posted rents. About three quarters of JTC tenants and lessees, who are currently paying more than 80% of the posted rent, will enjoy the full reduction of 20%. Those paying less than 30% of posted rent, about 2% of the total, will get a freeze in rents. The rest of the tenants and lessees will enjoy pro-rated net reductions. These measures supersede those announced at the FY98 Budget, and are estimated to cost JTC an additional $200 million over a 12-month period. Similarly, HDB will reduce its posted rents in line with market rents. For industrial properties, HDB revises its posted rents every quarter in line with the market.”
“As these were internal problems, we could rectify them swiftly by changing policies and making our own adjustments. Together with the quick recovery of global demand, the Singapore economy was able to bounce back within one year. This time, our export competitiveness position has not been too adversely affected, although we cannot be complacent and will have to monitor the situation for specific sectors. Our unit labour cost and unit business cost have been stable. While the Singapore dollar has indeed appreciated substantially against the baht, ringgit, rupiah, and won, it has depreciated against most OECD currencies. On a trade weighted basket basis, the Singapore dollar has appreciated only slightly. Furthermore our inflation has been low, whereas several of these regional countries are suffering from high inflation and cost of capital as a result of their weaker currencies. The problems we face this time are largely outside our control. We cannot change the external environment, or determine the course of events in the region. However, we can cushion the fallout from the regional economic slowdown on the Singapore economy. We should also use the opportunity to consolidate our strengths and further enhance our capabilities. In this respect, the package (Cols. 359 - 360) of additional budget measures has three broad objectives : (i) to reduce business costs; (ii) to build economic infrastructure and capabilities; and (iii) to help stabilize specific sectors of the Singapore economy. Package - OFF-BUDGET PACKAGE (Cols. 359 - 360) Land - Rentals and Charges With our limited land resource, land-related costs like rentals are a significant proportion of business cost.”
“Given the pessimistic external environment and domestic sentiments, MTI expects economic growth in the second half of the year to remain very weak, and possibly even become negative. However, for the full year of 1998, we should still see positive growth. MTI's previous GDP growth forecast of 2.5% to 4.5% for 1998 was made in February this year. After factoring in the substantial regional developments that have arisen since then, as well as possible future downsides in the external environment, MTI has revised this forecast down, to 0.5% to 1.5%. Additional measures The tax and budgetary measures announced in my FY98 Budget Statement were based on the economic outlook in February, against a volatile regional setting. Rather than reacting prematurely, the Government decided first to watch how external events would unfold, and ascertain the pace and extent of the economic slowdown. Now that developments are clearer, and we have revised our growth forecast downwards, we are ready to act to mitigate the impact of the regional troubles on our economy. The Government has therefore decided to implement a package of additional measures worth a total of $2 billion to cut business costs and stimulate the economy. In carrying out this package of additional measures, we should recognize that the primary cause of Singapore's current economic slowdown is the sharp fall in external demand, especially regional demand. It is not domestic problems inherent in our own economy. This is in contrast to the 1985/86 recession where the primary cause was the loss of competitiveness of the Singapore economy. In particular, in the early 1980s, labour cost increases had exceeded productivity growth significantly.”
“MTI's preliminary estimate for the second quarter, based on figures for April and May, is that growth has slowed further to 1.9%, with the seasonally adjusted annualised figure at 0.2%. The manufacturing sector has slowed down, due to weaker global demand and the regional economic crisis. The outlook for the worldwide electronics industry has turned less sanguine. Producers are cautious about demand and wary about rising inventories. The commerce sector continues to be affected by the decline in entrepot trade, slower tourist arrivals and weaker domestic consumer spending. This has in turn affected the transport and communications sector. The financial services sector has also slowed considerably as activity in the Asian Dollar Market and foreign exchange market remains weak, and domestic bank lending continues to slacken. The construction sector is still supported by the healthy pipeline of major public sector projects, although private construction activity has slowed down drastically. The Composite Leading Index, which leads economic activity by about three quarters, has continued to fall since the fourth quarter of 1997. The latest survey of business expectations in March 1998 also showed that the outlook for most sectors had deteriorated, especially the commerce and services sectors which are more exposed to the region. The trade figures confirm the growth estimates. Our trade performance has been weak. Non-oil domestic exports in the two months of April and May fell by 3.2% compared to a year ago. Electronics exports contracted by 4.8%, while non-oil re-exports fell by 2.4% due to a reduction in regional demand.”
“Mr Speaker, Sir, in the FY98 Budget Statement, I informed the House that the Singapore economy would feel the full impact of the regional economic crisis this year. I announced several tax concessions and other measures to help ease business costs during this economic slowdown, and to help local businesses obtain working capital in a situation of tight liquidity. I also said that the Government would monitor the state of the economy closely and stood ready to implement appropriate off-budget measures if the economy slows down sharply. Since then, the external economic environment has deteriorated significantly. The US and the EU are still growing robustly, but Japan has slipped into recession. Closer home, the regional economic outlook has also worsened. After the change of government in May, Indonesia is now undergoing a difficult process of political transition and economic reconstruction. The negative growth rates registered in the first quarter of 1998 in Malaysia, Hong Kong and South Korea are indications of tougher times for Asian economies in the months ahead. The weakening Yen has also led to fears of another round of currency contagion. Regional currencies have therefore come under pressure. The prospects are for continued turbulence and uncertainty. Singapore's financial and economic fundamentals are good. But this deteriorating external environment has adversely affected us. This is inevitable, given the openness of our economy and our close linkages with the region. The latest figures confirm that growth momentum in Singapore has indeed slowed significantly. GDP growth moderated to 5.9% in the first quarter of 1998, from 7.8% in 1997.”
“Proposed Amendments The Bill makes the following amendments to the Customs Act: (a) to amend sections 3, 31, 34, 37, 39, 41, 45 and 52 to provide that dutiable goods must be imported or exported by rail at a customs station along the railway to be designated, and that goods on arrival at that customs station cannot be removed except in accordance with a permit issued by the Director-General. (b) to amend sections 34 and 37 to provide for an additional customs station at Tuas for goods imported or exported by road. 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. - [Dr Richard Hu Tsu Tau]. Bill considered in Committee; reported without amendment; read a Third time and passed. MOTOR VEHICLES (THIRD PARTY RISKS AND COMPENSATION) (AMENDMENT) BILL Order for Second Reading read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill seeks to amend the Customs Act to provide for a customs station along the railway line, in lieu of the Singapore Railway Station at Keppel Road, as the place of import or export by rail. It also amends the Customs Act to include Tuas Checkpoint as an additional customs station. Rationale Currently, the Customs Act provides for Singapore customs clearance of dutiable goods by rail to be carried out at the Singapore Railway Station at Keppel Road. The Bill replaces this with a general provision for Singapore customs clearance by rail to be carried out at a station to be designated. This will provide flexibility in the designation of a customs station and obviate the need to change the Customs Act for such a purpose. Further, as the Customs Act already allows the flexibility to designate the customs station for import and export by air or sea, this change will also rationalize the expressions for the place of import and export by the various modes of transport. From 1st August 1998, the Singapore Customs, Immigration and Quarantine (CIQ) clearance facilities will be relocated from the Keppel Road Train Station to the Woodlands Train Checkpoint. Following the amendment to the Customs Act, we will proceed to designate and gazette the Woodlands Train Checkpoint as the new customs station for Singapore customs clearance in lieu of the Keppel Road Train Station. The Customs (Amendment) Bill also provides for an additional customs station at Tuas for the import and export by road, which can be done only via the road checkpoints, namely, the Woodlands Checkpoint and Tuas Checkpoint.”
“Mr Speaker, Sir, the duty on petrol is one of the measures employed to curb excessive vehicle usage and minimize congestion on the roads. Reducing duty on petrol will affect our traffic management efforts. We will have to rely more heavily on measures such as the Electronic Road Pricing (ERP) System. Until and unless the ERP has been fully and comprehensively implemented covering all the necessary roads, it will not be prudent to reduce the petrol duty. NEGOTIATIONS ON OUTSTANDING BILATERAL ISSUES WITH MALAYSIA (Update) 11. Mr Hawazi Daipi asked the Minister for Foreign Affairs if he will give an update on the negotiations regarding outstanding bilateral issues with Malaysia.”
“Investments for the rest of 1998, 1999 and beyond will depend on further developments of the situation in Asia. When companies evaluate whether to invest in Singapore, land cost or rental is only one out of many factors that are taken into consideration. Other factors such as capabilities, wage rates, infrastructure support and market potential are important considerations as well. Certainly, the appreciation of the Singapore dollar against the regional currencies has affected our cost competitiveness vis-a-vis other regional countries. This may have been one of the factors that have caused some companies to re-evaluate their investment plans. However, slower regional growth is the main factor that will cause a slowdown in investments that cater mainly to markets in the region.”
“As a significant exporter of electronics goods, Japan also competes with Singapore and some of the other regional economies in major markets such as the United States and Europe. The continued depreciation of the yen will therefore exert greater competitive pressure on regional exports. Finally, as shown by events in recent weeks, a weakening of the yen has a tendency to unsettle regional financial markets. NEW INVESTORS AND INVESTMENTS (Particulars) 8. Mr Inderjit Singh asked the Minister for Trade and Industry (a) if he will indicate the number of new investors and amount of investment Singapore attracted from January to May 1998 and how these figures compare to the projected figures; (b) what is the outlook for new investments for the rest of the year; and (c) whether we lost any investors because of the high property cost and the high land rentals charged by the Jurong Town Corporation and the Housing and Development Board. The Second Minister for Trade and Industry (BG George Yong-Boon Yeo): Mr Speaker, Sir, based on the latest figures, 107 new projects in manufacturing were committed from January to June 1998. These investments are expected to generate a value-added of $2.6 billion and employment of 10,500, of which 41% of the jobs are for knowledge and skilled workers. The fixed asset investments totalled $3.9 billion. In the exportable services sector, 48 projects were committed as of June this year. When fully realised, they will yield a value-added of $823 million and create 2,600 jobs, 66% of which are for knowledge and skilled workers. These projects are expected to record a total business spending of $723 million. A large proportion of investments this year are based on decisions made last year.”
“Mr Speaker, Sir, Japan is a significant export market for the regional economies including Singapore. It accounted for 18% of regional (Indonesia, Thailand, Malaysia, the Philippines and Brunei) exports and 7.6% of Singapore's total non-oil domestic exports in 1997. A falling yen would raise the prices of imported goods into Japan and further dampen the weak demand for regional imports including those from Singapore. Japan is also an important market for Singapore's services exports. For example, it is our second largest single market for tourism, accounting for 15% of total visitor arrivals in 1997. A continuing weakening of the yen would lead to a further decline in Japanese arrivals and aggravate the slowdown in retail, restaurant and hotel businesses. The region has also been a major recipient of Japanese foreign capital. Direct investments from Japan have accounted for an increasing share of total foreign direct investment approvals in ASEAN-3, which are Indonesia, Thailand and Malaysia, from 15% in 1992 to 24% in 1996. In Singapore, Japan contributed a significant 21.5% of total FDI inflow between 1990-95. A weakening of the yen would adversely affect Japanese companies' overseas expansion plans. This could have a dampening effect on the growth of Japanese investments in the region. Moreover, a weakening of the yen is likely to exacerbate the weak balance sheet position of Japanese banks, which would lead to a further consolidation of Japanese international banking activities, including those in the Asian Dollar Market in Singapore. This would in turn adversely affect the growth of the financial services sector in Singapore.”
“Mr Speaker, Sir, home owners are already taxed at a low concessionary tax rate of 4% on the annual value of their properties. Further, with the property tax rebates given since 1994 to offset GST, currently the majority of HDB households living in one to four room flats do not pay any property tax. Adjustments to the property tax payable by companies will be announced in my Ministerial Statement later on. REAL ESTATE MARKET (Repeal of anti-speculation measures) The following Question stood in the name of Dr Wang Kai Yuen - 6. To ask the Minister for National Development in view of the rapidly deteriorating situation on the real estate market and the economic slowdown whether he will reconsider repealing all anti-speculation measures.”
“Sir, I will speak on the economic outlook and details of measures to stimulate the economy in the Ministerial Statement later this afternoon. PROPERTY TAX (Reduction) 5. Dr Teo Ho Pin asked the Minister for Finance whether he will consider reducing the property tax rate for house-owners and companies in view of the financial crisis.”
“Mr Speaker, Sir, with your permission, I would like to take Question Nos. 1 to 4 together as they are related.”
“Economists use the gini coefficient to measure the extent to which the distribution of household income deviates from a situation of perfectly equal income distribution. This coefficient takes values from zero to one; the more unequal the income distribution, the larger the gini coefficient. For Singapore, the gini coefficient was 0.443 in 1995, similar to 0.436 in 1990. From an international perspective, our measure of wealth disparity remained favourable (see Chart below). We fared better compared with Hong Kong and the United States which had showed noticeable increase in household income inequality in the 1990s. chart - Wealth Disparity RECESSION 4. Mr Zainul Abidin Rasheed asked the Minister for Trade and Industry if he will indicate whether Singapore's economy will slip into a recession this year, despite the strong fundamentals of its economy.”
“Income tax and property tax are payable by reference to a tax year. Income tax is calculated based on the income earned in the preceding year while property tax is based on the rentable value of the property for the same year. Payment of income tax is due one month after the issue of the notice of assessment while property tax is payable in advance in January and July of each year. To help taxpayers, the Government has administratively allowed property tax and income tax to be paid in instalments over the tax year instead of the due dates. Basically, any person willing to commence instalment payment from the beginning of a tax year is allowed to pay the year's tax in equal instalments over the whole year. By allowing instalment payments over the year for which the tax is payable and not beyond, it helps taxpayers to plan their finances and prevents them from getting into huge tax arrears. Taxpayers who have temporary cashflow problems can, nevertheless, apply to IRAS for payment of the tax beyond the 12-months instalment period, with appropriate late payment penalty for the extended period. From the experience of IRAS, there is as yet no serious problem of taxpayers being unable to meet tax payments which fall due with the current instalment facilities. IRAS is monitoring the situation and Government will introduce relief measures if necessary. In the meantime, taxpayers should make optimum use of the instalment payment arrangements offered by IRAS. WEALTH DISPARITY 3. Dr Lee Tsao Yuan asked the Minister for Trade and Industry whether there is any evidence of growing wealth disparity in Singapore. Mr Lee Yock Suan: Household income distribution in Singapore has remained quite stable.”
“The Singapore Civil Service staff strength in 1997 was 65,575. If statutory board employees were also included, the total public sector staff strength would be 114,466. As a percentage of the national labour force, these figures work out to 3.5% and 6.1% respectively. It is hard to meaningfully compare these figures with those of other countries. Operating environments for countries differ with size of population, level of development and the needs of the populace. The structure of government also affects the computation of such figures. For instance, the UK civil service constituted 475,200 or 1.7% of the national labour force in 1997 but if local authorities are included, the figure would be 8.7% of the national labour force. In regard to the size of the civil service, Government's goal has always been to keep it lean and trim so as to release more manpower to the private sector which is the engine of economic growth. While this is so, it is also important that the civil service should be efficient and effective at the same time. In this regard, Members of Parliament would be pleased to know that our civil service has been rated the least bureaucratic in a 1998 survey of businessmen conducted by the Political and Economic Risk Consultancy Ltd. The US-based Business Environment Risk Intelligence (BERI) has also ranked Singapore top among the 47 countries worldwide in government proficiency in 1997, for the 5th year running. CENTRALISED SYSTEM OF BULK PURCHASE OF DRUGS AND EQUIPMENT 57. Dr S Vasoo asked the Minister for Health whether the centralised system of bulk purchasing of drugs and equipment has been implemented for restructured hospitals.”
“It is envisaged that peer pressure from the other participating countries would hopefully influence the government to take some action. Publicising it or revealing the details to the public at large, I think, really does not solve the problem. ILLEGAL IMMIGRANTS FROM INDONESIA (Update on situation) 20. Mr Goh Choon Kang asked the Minister for Home Affairs if he will give an update on the situation of illegal immigrants from Indonesia since the outbreak of riots in the country.”
“Not at all. That is not the objective at all. There will be no special fund outside the IMF arrangements. All the current arrangements are bilateral agreements.”
“The whole idea of this ASEAN surveillance mechanism is, in fact, to produce a list of statistical data which participating member countries would be prepared to divulge. Because it is a complex process, therefore it is now being studied very carefully by the deputies of the Finance Ministers to ensure that the list of statistical information required is detailed enough and meets the requirements for proper surveillance.”
“It should be noted that arrangements for the establishment of the surveillance mechanism are primarily focused on the meeting of ASEAN's needs, contrary to the impression given in newspapers (and quoted in the above question), about it being an "ASEAN plus". ASEAN Finance Ministers have, however, agreed to meet with the Japanese Finance Minister on a regular basis to exchange views. The first such meeting was held at the fringe of the ADB Meeting in Geneva this year. Japan's Vice-Minister for Finance, Dr Eisuke Sakakibara, who represented his Minister at the Meeting, had dubbed this meeting "ASEAN Plus", and that is how it originated.”
“Mr Speaker, Sir, the need for a regional surveillance mechanism within ASEAN was recognised during the First ASEAN Finance Ministers' Meeting in Phuket in March 1997 before the outbreak of the regional financial crisis. The onset of the regional financial crisis gave impetus to this initiative. In November 1997, ASEAN central banks established the ASEAN Central Bank Forum (ACBF), and this was followed by the formation of the Select Committee of Finance and Central Bank Officials called the ASEAN Select Committee. The ACBF carries out regional surveillance with the technical support of the IMF and complements the global surveillance work of the IMF. It aims at evaluating potential economic and financial risks of member countries, highlighting policy options and implications, and encouraging early action to minimise such risks. The ACBF recently concluded its second meeting in Jakarta on 8th-9th May 1998. The Early Financial Warning System mentioned in press reports refers to a proposal to establish an ASEAN Economic Monitoring Mechanism (AEMM) to support the surveillance initiative. ASEAN Finance Ministers agreed during their second meeting in Jakarta in February this year to a proposal by the Philippines that the ADB be asked to provide technical and secretariat support for the surveillance process during the first two years, with a view to the ASEAN Secretariat taking over thereafter. The ADB and the ASEAN Secretariat had proposed to establish the AEMM during the ADB Meeting in Geneva in April this year. However, at that meeting, ASEAN Finance Ministers have agreed that the proposal requires further careful study.”
“About 10,000 commercial and industrial tenants (which are almost 50% of HDB's tenants) have benefited from the rental adjustment policy to-date. The total impact of HDB's measures was revenue forgone of $220 million. JTC and HDB will pass on to tenants the full 15% property tax rebate announced during this year's Budget Statement. They will also make upfront collections of rental payments monthly rather than quarterly. The Government will continue to monitor economic conditions closely and take further measures, if necessary, to moderate cost pressure on businesses. HOUSING AND DEVELOPMENT BOARD SHOPS (Lowering of rentals) The following question stood in the name of Mrs Yu-Foo Yee Shoon - 8. To ask the Minister for National Development, as the economic downturn has severely affected the business of shopkeepers in Housing and Development Board estates, whether he will consider lowering the rental charges for shops.”
“I am aware of the Member's sentiments. It has appeared in the press and we will certainly take it into consideration. I will discuss with my colleague. JTC AND HDB RENTALS (Rebates) 7. Mr Ang Mong Seng asked the Minister for Trade and Industry whether JTC and HDB will grant rebates on rentals to assist the small and medium industries and shop tenants during this period of economic slowdown. The Minister for Trade and Industry (Mr Lee Yock Suan): Mr Speaker, Sir, in his Budget Speech, Minister for Finance announced that the Jurong Town Corporation (JTC) and the Housing and Development Board (HDB) would extend additional rental concessions to tenants and lessees as part of the Government's efforts to moderate cost pressures on businesses. Both JTC and HDB have frozen their posted rents of land leases until June next year. JTC has also frozen the posted rents of its factories during this period. In addition, JTC and HDB have moderated the annual rental adjustments of their industrial land and premises. About 70% of JTC lessees and 35% of HDB lessees who are paying at least 85% of market rent will not see any increase in their rents for the next 12 months. The remaining lessees who are paying rents that are well below market rates will have their rental adjustments capped at 4%. JTC's existing factory tenants will also be given a rebate of up to half of their contracted rent adjustment. In October 1996 and December 1997, HDB implemented a package of rental concessions for its industrial and commercial tenants. This included moderating rental adjustments at third renewal of tenancies, granting up to 10% rental concession for those paying above market rent, and staggering increases in rent for subletting and assignment cases.”
“Please address your question to the Minister for Manpower.”
“I think that is a very silly question. Surely, you do not expect the Government to be so negligent as not to monitor unemployment.”
“I suggest that when the Member hears of these rumours, please document them and we will look into them individually. As far as Government's action to help the workers, it is going to be a comprehensive package, including what we have said before, that one of the most important things that we need to do is to ensure that our workers will be able to cope with new jobs. So training and retraining is going to be a major focus.”
“I have just tried to explain why. We would like to look at the May figures before we react. Surely, it is not too long to wait for a few weeks.”
“No, we will not wait for GDP growth to go negative before we do something. If the trend is clearly going to head in that direction, we will try to do something. This is what we have assured the House.”
“Which negative growth are you talking about? Mr Leong Horn Kee: GDP growth.”
“Even if it should turn out to be at the lower end of our range, that is not a recession. By international standards, 2.5-3% is excellent performance. It is only when you look against the whole background of Singapore's growth of 7-8% in the past few years that you think it is a disaster. In fact, without the exceptional circumstances of the last few years, 7-8%, in Singapore's state of present GDP, is unsustainable. We have said this many times. In fact, our medium term forecast for non-inflationary growth is 4-6%.”
“I am not quite sure what he means. But if we do something, for example - I am not promising this - towards the end of June or July, as I mentioned, if we announce the rebates they would take place immediately other than the time for processing. As for the other measures, it depends on the nature of the actual cuts and the programmes. So I cannot give him a precise figure. But I am sure the Member realises that we went through this experience in 1985/86 and it did not take us very long to recover although the circumstances, I would admit, between now and 1985/86 are completely different.”
“It depends on the nature of the measures. A rebate, for example, will take place immediately. Infrastructure spending will take some time to filter through, again, depending on the type of spending which takes place. A tax cut will not take place until next year. So there is a whole package of measures we can consider, some of which are going to be effective immediately, and some are medium and longer term.”
“Yes, of course, that would be a significant indication. In fact, that reflects the economy.”
“We will not know the full second quarter results until some time in July, but we do not expect to have to wait quite that long. I think by the middle of this month or towards the latter part of the month, we will know the full May results and that might give us sufficient indication of the forward trend. The Deputy Prime Minister and Minister for Defence, Dr Tony Tan, already indicated that we might do something before the full second quarter results are known.”
“The standard definition of a recession is two consecutive quarters of negative growth.”
“As I have mentioned during the Budget debate, the Government will implement further measures if economic growth slows down significantly. The Government is monitoring the economy very closely. In the first quarter of 1998, economic growth has slowed to 5.6%. Growth in the second quarter is expected to moderate further as impact from the regional financial turmoil filters through the economy. Non-oil domestic exports have declined by 1.6% in April. Preliminary data showed it continued to drop by 6% in May. We will soon know how sharply the second quarter GDP growth has declined. We will then decide if we should proceed with additional measures to help the economy.”
“Mr Speaker, Sir, Mr Tay Beng Chuan and Dr Lee Tsao Yuan have asked about the impact of the recent developments in Indonesia on the Singapore economy. Mr Tay and Mr Zainul Abidin also wanted to know how the economic conditions of Japan and other Asian countries would affect Singapore. The effects of the financial turmoil and developments in Indonesia have yet to be fully played out. The current outlook for the external environment is therefore mixed. While the US and EU economic growth remains healthy, the Asian economies have come under severe downward pressure. In Japan, there are signs of a substantial slowdown but it will be ameliorated to some extent by their recent fiscal stimulus package. The economic situation in Thailand and South Korea appears to have stabilised somewhat. But developments in Indonesia have increased volatility over the short-term. The overall picture is still one of uncertainty. Dr Lee has also asked about the specific impact of the financial turmoil on the economic forecast. MTI's GDP growth forecast of 2.5-4.5% for 1998 has factored in the regional financial turmoil, and its impact on the growth prospects of our neighbouring countries. But as developments, especially in Indonesia, have yet to stabilise, nobody can be certain about the full impact of the financial crisis on our economy at this point in time. However, as the Singapore economy is fairly well diversified, we are unlikely to slip into negative growth this year as growth will be supported by the relatively healthy performance in the US and EU economies. Mr Tay, Dr Lee, Mr Chng Hee Kok, Mr Zainul Abidin and Mrs Yu-Foo Yee Shoon have all asked about the implementation of off-Budget measures.”
“Mr Speaker, Sir, may I have your permission to take Questions 1 to 6 together as they are related?”
“/Estate Blks DUs Start Date 4 Tanjong 1-12 & 14 Kg Kayu 13 1,527 Estimated: Estimated: Rhu/Mountb Road/Jln Batu/Kg atten Arang Road Oct - Dec 2000 Dec 98 - 5 Queenstown 152-154, 157 & 158 5 542 Feb 2001 - Mei Ling Mei Ling Street Street Total 41 5,338 10 1 Ghim Moh 1-6 Ghim Moh Road 6 1,324 Precinct 1 2 Boon Lay 207-215 Boon Lay 9 2,276 Estimated: Estimated; Place Place 3 Ang Mo Kio 129-134 Ang Mo Kio 6 850 Apr - Oct 2001 Ave 3 Ave 3 Jul 99 - 4 Marine 27-35 Marine 9 1,347 Jan 2002 Crescent Crescent 5 C'wealth 23A, 23B, 55, 56, 12 1,407 Dr/Queen's 58-60, 62-66 Close Commonwealth Drive Total 42 7,204 11 1 Dover 20-23, 26 & 27 6 697 Crescent A Dover Crescent & B 2 Telok 13, 15, 16, 18-21, 9 1,673 Estimated: Estimated: Blangah 23 & 24 Telok Crescent Blangah Crescent Jul - Jan - Oct 99 Apr 2002 3 Selegie 8-10 Selegie Road 3 463 House 4 Ping-An 19-24 Chai Chee 6 1,260 Gardens Road 5 Toa Payoh 66, 69-73, 83, 85, 11 999 Lor 4 A&B 85A, 85B, 85C Toa Payoh Lor 4 Total 35 5,092 12 1 Kelantan 25-30 Jalan 6 839 Centre Besar/Kelantan Road 2 Commonwealth 103, 104, 106-113 10 863 Estimated: Estimated: Crescent Commonwealth Crescent Sep - Dec 2001 Dec. 99 - Jun 2002 3 MacPherson 81-83 MacPherson 3 318 Lane Lane 4 Toa Payoh 123-126, 128 Toa 5 823 Lor 1 Payoh Lorong 1 5 Marsiling 28-37 Marsiling 10 1,168 Drive Drive Total 34 4,011”
“/Estate Blks DUs Start Date 6 Sin Ming 22-25 Sin Ming 4 779 12 Jun 97 Estimated: A, B & C Road 7 Toa Payoh 91, 92, 94-96, 98 7 871 29 Mar 97 Jul 99 - Lor 3/4 & 100 Toa Payoh Jan 2000 Lorong _ Total 42 6,010 7 1 Everton 1-7 Everton Park 7 688 27 Feb 98 Park 2 Marsiling 1-5 Marsiling 5 1,359 5 Feb 98 Estimated: Drive Dec 99 - 3 Upper Boon 11, 12, 15, 16 & 5 906 8 Nov 97 Aug 2000 Keng 18 Upper Boon Keng Road 4 Tanglin 33-45 Tanglin Halt 13 1,423 21 Nov 97 Halt Road 5 Toa Payoh 34, 38, 47, 51, 52 6 1,404 17 Oct 97 Lor 1, Lor & 157 Toa Payoh 5/6 A&B Lorong 1/5/6 Total 36 5,780 8 1 Woodlands 6-13 & 15-17 11 1,681 - Marsiling Marsiling Drive/Lane Drive 2 Henderson 119, 120 & 128-130 5 1,321 Estimated: Estimated: Hill Bukit Merah View 3 Ang Mo Kio 254-258 Ang Mo Kio 5 706 Jun - Dec 2000 Ave 4 Ave 4 Sep 98 - 4 Kallang 43-45, 47 & 49 5 837 Feb 2001 Basin Bendemeer Road/Whampoa South 5 Toa Payoh 25-27 Toa Payoh 3 594 East East Total 29 5,139 9 1 Bedok 22-30 New Upper 9 1,402 Changi Road/Bedok South Ave 1 2 Bukit Ho 34,36,38,40,42,44, 9 1,228 Estimated: Estimated: Swee 46,48 & 50 Jln Bt Ho Swee/Lower Oct - Dec 2000 Delta/Havelock Dec 98 - Rd/Beo Crescent Feb 2001 3 Jalan 19-23 Eunos 5 639 Eunos Crescent Batch Precinct Address No. of No. of Construction Completion No.”
“tate Blks DUs Start Date 4 1 Bt Ho Swee 20, 22, 24, 26, 7 1,078 4 Mar 96 28, 30, 32 Jln Klinik/Havelock Rd/Beo Crescent/Jln Bt Ho Swee 2 Farrer Road 1-6 & 8 Queen's 7 848 26 Apr 96 Estimated: Road/Farrer Road/Empress Road 3 Macpherson 38-40 & 61-67 10 1,176 29 May 96 Sep 98 - Circuit Road 4 Paya Lebar 15-23 Hougang Ave 9 1,246 10 May 96 Apr 99 3 5 Toa Payoh 107-115 & 205-209 14 1,820 18 Jun 96 Lor 1 Toa Payoh North/Lorong 1 Total 47 6,168 5 1 Beach Road 1-6 Beach Road 6 1,295 26 Nov 96 Estimated: 2 Toa Payoh 158-161, 163, 168, 9 1,385 4 Sept 96 Apr - Lor 1 169, 173 & 174 Toa Oct 99 Payoh Lorong 1 3 Toa Payoh 4, 5, 8, 9, 12, 13 7 1,311 18 Nov 96 Lor 7 & 15 Toa Payoh Lorong 7 4 Chin Swee 8-10 & 34 Jln 4 667 2 Jan 97 Rd/Upper Kukoh/Upper Cross Cross St Street 5 Moulmein Road 69, 83-85 & 93-101 13 1,556 9 Nov 96 /Balestier Moulmein Road/Whampoa Drive Total 39 6,214 6 1 Kim Tian 128-131 Kim Tian 4 490 6 May 97 Road 2 Geylang 95-98 Aljunied 4 647 17 April 97 Estimated: East Crescent 3 Upper 2-5 Upper Aljunied 4 377 24 Feb 97 Jul 99 - Aljunied Lane 4 Ang Mo Kio 301, 302, 322-329 11 1,600 1 Sep 97 Jan 2000 Ave 3/6 & 348 Ang Mo Kio Ave 3/6 5 Commonwealth 81-88 Commonwealth 8 1,246 7 Jun 97 Close Close Batch Precinct Address No. of No. of Construction Completion No.”
“Estate Blks DUs Start Date** 1 1 Boon Lay 167-172 Boon Lay 6 660 5 Oct 94 31 Dec 96 Drive 2 Bt Ho Swee 2, 4, 6, 8, 10, 9 764 11 Aug 94 13 Apr 97 12, 14, 16 & 18 Jln Bt Ho Swee/Taman Ho Swee 3 Kallang 93, 95, 97 & 99 4 438 29 Aug 94 27 Nov 96 Airport Jln Dua/Old Airport Road 4 Bt Merah 1-3 & 5-22 Redhill 21 875 3 Jan 95 6 Feb 98 Close 5 Queenstown 24-32 Tanglin Halt 9 1,002 28 Oct 94 10 May 97 Road 6 St Michael 27, 28 & 32-35 Jln 6 720 26 Sep 94 7 Dec 96 Bahagia Total 55 4,459 2 1 Kallang 63-65 Kallang 3 854 5 Apr 95 22 Feb 98 Basin Bahru 2 Macpherson 43-52, 57-60 & 69 15 1,779 5 Jun 95 28 Nov 97 Circuit Road 3 Toa Payoh, 116-120 Toa Payoh 5 811 27 Mar 95 6 Sep 97 Kuo Chuan Lor 1/2 4 Queenstown, 96-102 7 640 20 May 95 29 Nov 97 C'wealth Commonwealth Cresc Crescent 5 Queenstown, 165-171 (including 8 1,256 22 Jun 95 13 Dec 97 Stirling 168A) Stirling Road Road 6 Taman 111-114 Ho Ching 4 498 1 Mar 95 11 Oct 97 Jurong Road/Tao Ching Road Total 42 5,838 3 1 Henderson 101-106 Henderson 6 878 3 Oct 95 Apr 98 (Est) Crescent 2 Buona Vista 10-13 Holland 4 1,215 20 Oct 95 May 98 (Est) Ave/Drive 3 Chai Chee 32-37 & 40 Chai 7 978 5 Aug 95 22 Mar 98 Chee Ave 4 Macpherson, 19-24, 30-32, 34- 14 1,536 30 Sep 95 Jun 98 (Est) Balam Road 36, 77 & 78 Balam Road/Circuit Road 5 Toa Payoh 53-59 & 61 Toa 8 1,218 22 Nov 95 25 Apr 98 Lor 4/5 Payoh Lor 4/5 Total 39 5,825 ** Completion Ceremony Dates Batch Precinct/Es Address No. of No. of Construction Completion No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 10 Bedok North 423-428 6 919 Aug-99 @ Oct-2000 @ Road/Ave 1 11 Jurong East Ave 1 329, 330, 339, 4 479 Aug-99 @ Oct-2000 @ 341 12 King George's Ave 801-804, 806, 6 458 Aug-99 @ Oct-2000 @ 807 13 Tampines Street 41 401-407 7 717 Aug-99 @ Oct-2000 @ 14 Marsiling 212-218 7 787 Aug-99 @ Oct-2000 @ Crescent/Lane 15 Yishun Street 72 747-752 6 567 Aug-99 @ Oct-2000 @ 16 Tampines Street 11 105-110 6 732 Aug-99 @ Oct-2000 @ 17 Clementi Ave 2 349-354 5 570 Aug-99 @ Oct-2000 @ 18 Clementi Ave 5 343, 346-348 4 570 Aug-99 @ Oct-2000 @ MAIN UPGRADING PROGRAMME Appendix B Batch Precinct/ Address No. of No. of Construction Completion No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 15 Bukit Batok 231-241 11 1,373 Sep-98 @ Feb-2000 @ East Ave 5 16 Jurong West St 41 462-467 6 657 Aug-98 @ Apr-99 @ 17 St George's Road 9-23 15 1,094 Nov-98 @ Oct-99 @ 18 Serangoon Ave 2 301-307, 318, 9 900 Aug-98 @ Feb-2000 @ 319 19 Tampines St 41 418-424 7 771 Oct-98 @ Oct-99 @ 20 Yishun St 21 201, 202, 207- 8 770 Sep-98 @ Sep-99 @ 212 21 Yishun St 72/Ave 5 731-736 6 601 Jul-98 @ Apr-99 @ 22 Tampines St 11 101-104, 111- 8 977 Jun-98 @ May-99 @ 114 23 Clementi Ave 4/5 371-374, 381 5 677 Oct-98 @ Oct-99 @ 24 Clementi West St 2 705, 708, 709, 7 958 Oct-98 @ Oct-99 @ 711-714 Batch 5 111 13,156 1 Hougang Ave 1 109-120 12 1199 Aug-99 @ Oct-2000 @ 2 Hougang Ave 1 121-127 7 645 Aug-99 @ Oct-2000 @ 3 Ang Mo Kio Ave 4 108-111 4 519 Aug-99 @ Oct-2000 @ 4 West Coast Road 513-520 6 997 Aug-99 @ Oct-2000 @ 5 Jurong East 101-107 7 807 Aug-99 @ Oct-2000 @ Street 13 6 Ang Mo Kio Ave 10 548, 549, 552- 10 1099 Aug-99 @ Oct-2000 @ 557, 559, 561 7 Ang Mo Kio Ave 3 426-430 5 602 Aug-99 @ Oct-2000 @ 8 Bedok North Ave 2 414-418 5 606 Aug-99 @ Oct-2000 @ 9 Bedok North 419-422 4 883 Aug-99 @ Oct-2000 @ Street 2/Road Precinct Blk Nos No. No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 23 Bukit Purmei Rd 101-109 9 1,289 01-Oct-97 Dec-98 @ 24 Bukit Purmei Rd 110-115 6 1,025 01-Oct-97 Dec-98 @ 25 Clementi Ave 4/5 375-380 6 648 01-Dec-97 Nov-98 @ 26 West Coast Rd 701-704, 706- 7 1,384 01-Dec-97 Nov-98 @ /Clementi W St 2 707, 710 27 Clementi Ave 5 339-342, 344- 6 915 01-Dec-97 Nov-98 @ 345 Batch 4 182 21,743 1 Bedok Reservoir Rd 611-618 8 955 Oct-98 @ Oct-99 @ 2 Hougang Ave 1 101-104, 106, 7 408 Jul-98 @ Oct-99 @ 108 3 Ang Mo Kio Ave 1 330-333 4 744 Aug-98 @ Apr-99 @ 4 Ang Mo Kio Ave 4 170-176 7 1,022 Oct-98 @ Sep-99 @ 5 Ang Mo Kio Ave 4/5 150-156 7 959 Aug-98 @ Apr-99 @ 6 Bukit Batok West 133-139 7 579 Oct-98 @ Oct-99 @ Ave 6 7 Ang Mo Kio Ave 5/8 501-507 7 1,071 Aug-98 @ Dec-99 @ 8 Ang Mo Kio Ave 8 508-513 6 895 Aug-98 @ Dec-99 @ 9 Upper Cross Street 531-533, 535- 6 624 Jul-98 @ Jul-99 @ 536, 538 10 Veerasamy Rd 632-642 11 1,036 Jul-98 @ Jul-99 @ /Rowell Rd 11 Bedok North Rd 74-82 9 1,479 Sep-98 @ Nov-99 @ 12 Bedok North St 3 529-532 4 815 Sep-98 @ Nov-99 @ 13 Bedok North St 3 533-536 4 976 Sep-98 @ Sep-99 @ 14 New Upper Changi Rd 51-57, 57A, 13 1,402 Sep-98 @ Nov-99 @ 59, 62-65 Precinct Blk Nos No. No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 4 Ang Mo Kio Ave 5 601-606 6 866 15-Apr-98 Apr-99 @ 5 Teck Whye Ave 5-7 3 348 15-Jul-97 May-98 @ 6 Jurong East St 31 317-321, 324, 8 715 May 98 @ Apr-99 @ 326, 328 7 Bukit Batok St 11 160-164(c) 5 638 01-Nov-97 May-98 @ 8 Ang Mo Kio Ave 5/10 533-539 7 1,097 02-Feb-98 Jun-99 @ 9 Ang Mo Kio Ave 10 540-544, 545- 10 1,302 02-Feb-98 Jun-99 @ 547, 550, 551 10 Bedok N Ave 3 130-139 10 1,371 01-Nov-97 Dec-98 @ /Bedok N St 11 Bedok N Rd/ 119-129 11 1,600 01-Nov-97 Dec-98 @` Bedok N St 2 12 Bedok S Rd 36-44 9 1,411 01-Oct-97 Oct-98 @ 13 Bedok South Rd/ 66-73 8 763 01-Nov-97 Oct-98 @ Bedok South Ave 3 14 Bedok N Ave 4 90-93, 95-97 7 790 16-Feb-98 Feb-99 @ /Bedok N St 4 15 Bukit Batok St 32 310-317 8 616 01-Jul-97 Jun-98 @ 16 Bukit Batok St 32/33 318-323 6 641 01-Jul-97 Jun-98 @ 17 Serangoon Ave 4 223-230 8 1,087 25-Jan-98 Jan-99 @ 18 Tampines St 41 408-417 10 965 01-Nov-97 Oct-98 @ 19 Yishun Ave 5 701-706 6 763 01-Oct-97 Dec-98 @ 20 Yishun Ave 5 707-712 6 678 01-Oct-97 Dec-98 @ 21 Tampines St 21 202-209 8 804 01-Nov-97 Oct-98 @ 22 Telok Blangah 72-77 6 804 15-Oct-97 Oct-98 @ Hts / Drive Precinct Blk Nos No. No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 12 Bedok North St 3 501-508 8 1,437 01-Nov-96 Jan-98 /Bedok North Ave 3 13 Bedok North Ave 4 98-103, 106 7 1,043 01-Aug-96 Nov-97 14 Bedok North Ave 4 104, 105, 6 926 01-Aug-96 Nov-97 /Bedok North Rd 107-110 15 Jurong East St 32 301-306 6 986 27-May-96 Jul-97 16 Jurong East St 32 307-310 4 528 27-May-96 Jul-97 17 Jurong West St 42 401-408 8 729 10-Jan-97 May-98 @ 18 Jurong West St 52 510-514 4 664 28-Dec-96 May-98 @ 19 Geylang Bahru 72, 73, 93-97(b) 7 1,098 01-Dec-96 Jul-98 @ 20 Serangoon North 101-108 8 833 15-Apr-96 Sep-97 Ave 1 21 Marine Drive 77-79 3 288 22-Apr-96 Jul-97 22 Marsiling Drive 22-27 6 934 05-Dec-96 Jan-98 23 Clementi Ave 2 & 5 326-331 6 908 12-Nov-96 Jan-98 24 Clementi Ave 3 426-429 4 614 12-Nov-96 Jan-98 25 Jalan Bukit Merah 140-142 3 456 01-May-97 Apr-98 @ 26 Jalan Bukit Merah 143-150 8 730 01-May-97 Apr-98 @ /Silat Ave Batch 3 200 25,557 1 Hougang Ave 3 247-254 8 849 01-Feb-98 Nov-98 @ 2 Bedok Reservoir Rd 701-708 8 1,050 01-Apr-98 Mar-99 @ /Bedok N Rd 3 Ang Mo Kio Ave 6 633-640 8 1,138 15-Apr-98 Jun-99 @ Precinct Blk Nos No. No.”
“Contract Start Completion Date of of (@ - estimated) (@ - estimated) Blks Units 19 Haig Road Estate 1-12 12 1,432 28-Aug-95 Jul-97 20 Marine Parade Estate 72-76 5 504 28-Aug-95 Jul-97 21 Yishun Town 107-111(a) 5 923 20-Sep-95 Jan-97 22 Woodlands Town 201-206 6 1,018 28-Aug-95 Oct-96 23 Clementi Town 601-603, 5 727 15-Jul-95 Aug-96 608-609 24 Clementi Town 723-724, 6 846 24-Jul-95 Dec-96 728-731 25 Tanjong Pagar Plaza 1-8 8 1,115 01-May-95 Jun-96 26 Telok Blangah Estate 58-61 4 627 15-May-95 Jun-96 Batch 2 153 21,392 1 Ang Mo Kio Ave 3 201-204 4 535 15-Aug-96 Oct-97 2 Ang Mo Kio Ave 1 217-220 4 740 01-Sep-96 May-98 @ 3 Ang Mo Kio Ave 3 229-235 7 907 01-Oct-96 Nov-97 4 Ang Mo Kio Ave 10 471-476 6 1,036 10-Jun-96 Dec-97 5 Teck Whye Ave 1-4 4 518 02-Jan-96 Oct-97 6 Bukit Batok Central 228-230 3 518 02-Jan-96 Jan-97 /East Ave 3 7 Pandan Gardens 409-414 6 817 05-Aug-96 Oct-97 8 Jurong East St 21 201-208 8 716 02-May-96 Dec-97 9 Ang Mo Kio Ave 10 431-441 11 1,297 10-Jun-96 Jan-98 10 Gloucester 9, 10, 49, 50 4 682 18-Oct-96 Mar-98 Rd/Dorset Rd 11 Bedok North St 3 540-547 8 1,520 18-Jun-96 Jan-98 Precinct Blk Nos No. No.”
“Contract Start Completion Date Completi of of (@ - estimated) (@ - estimated) Blks Units Batch 1 166 21,771 1 Bedok Town 606-610 5 593 18-Dec-95 Jul-97 2 Bedok Town 619-624 6 709 18-Dec-95 Jul-97 3 Ang Mo Kio Town 209-214 6 936 31-Mar-95 Sep-96 4 Teck Whye Estate 8-14, 25-26 9 1,138 01-Aug-95 Oct-96 5 Bukit Batok Town 206-208 3 355 23-Jun-95 May-96 6 Jurong East Town 108-116 9 986 01-Jul-95 Nov-96 7 Jurong East Town 241-245 5 686 19-Jul-95 Dec-96 8 Jurong East Town 256-264 9 940 19-Jul-95 Dec-96 9 Ang Mo Kio Town 422-425 4 629 26-Jul-95 Sep-96 10 Ang Mo Kio Town 570-578 9 1,304 26-Jul-95 Sep-96 11 Kampong Java Estate 51-54 4 359 01-Mar-95 Jun-96 12 Crawford Centre 10, 461-468, 10 1,056 16-Jul-95 Dec-96 462A 13 Rochor Centre 1-4 4 572 15-Jun-95 Feb-97 14 Chai Chee Estate 50-54 5 857 01-Jun-95 Aug-96 15 Bedok Town 1-4, 19-21 7 1,120 05-May-95 Nov-96 16 Bedok Town 5-8 4 416 05-May-95 Dec-96 17 Jurong West Town 521-527 7 765 16-Feb-96 Aug-97 18 Jurong West Town 528-536 9 1,158 16-Feb-96 Aug-97 Precinct Blk Nos No. No.”