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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“On the question by Mr Chiam, I agree that our present procurement procedures are more than adequate. In fact, in many cases, it probably exceeds the GPA requirements. But it is good for us to join an international arrangement of this sort, not only because it suggests that we have nothing to hide but the other advantage, of course, is when our suppliers of goods and services go to other countries to tender for Government projects, they would be more acceptable to the host countries if they know we in Singapore also accede to the GPA requirements. So there is an advantage clearly in joining, even though it may be marginal in our case.”
“To answer the NMP's question first, I take the point about the Member's concern over the possibility that non-legally qualified people may be appointed to become Commissioner and Deputy Commissioners. But our proposal really is to provide flexibility so that persons who do not meet the qualifications of High Court Judges can also be appointed to be Commissioner, in order to widen the scope of people who can be appointed. There are many cases where very experienced people who know the Government procurement procedures will probably act and serve better than a legally qualified person. We are talking here about a very specific and narrow field of legal interpretation. Therefore, we will certainly take his point into account in the appointment of suitably qualified people, preferably with the legal qualifications which he has mentioned. As I have said, many people who would eminently fulfil the role of Commissioner may not start off their careers as lawyers. And we do not want to miss out the possibility of using these people to act as Commissioner or Deputy Commissioners. It is quite clear that the pool of candidates in Singapore for the Bench is very limited and to impose further demands on them, I think, would be probably not wise, and it may be difficult to fill these several positions if we had to confine ourselves to those with the legal qualifications alone. Unlike High Court Judges whose cases span a very wide spectrum, the Tribunal Commissioner and Deputy Commissioner relate to Government procurement only. Therefore, I think the flexibility we are asking for under this Bill is really our objective. But the points he has raised are well taken and we will consider them.”
“This is to be implemented through the establishment of a Government Procurement Adjudication Tribunal. Its members will comprise a Commissioner and a number of Deputy Commissioners. The hearing of the challenge will be done either by the Commissioner or a Deputy Commissioner. Procedures and rules governing the lodging and hearing of the challenges, consistent with the GPA requirements, have been included. Powers of the Tribunal such as those relating to the proceedings, costs and damages to be awarded and suspension of procurement are spelt out in the Bill. Conclusion The public sector in Singapore has, over the years, built up high standards of integrity, honesty and efficiency in public procurement. The Government Procurement Bill will bring some aspects of our public procurement policies and procedures in line with other GPA signatories. This will help Singapore companies in supplying goods and services to the government agencies of GPA members. At the same time, it re-affirms our commitment to our own high standards of public procurement and our commitment to the open global multi-lateral trading system. Sir, I beg to move. Question proposed.”
“Any supplier from any part of the globe can access easily and cheaply collated information on tenders called by the Government Ministries, Departments and Statutory Boards. The GPA requirements are congruous with our procurement principles. We have no fundamental problems adhering to the GPA requirements. Some administrative changes are however necessary. For example, GPA imposes a minimum tendering period of 40 days, longer than our present minimum of 21 days; and a bid-challenge system has to be instituted. Provisions of the Bill I shall now bring Members through the salient provisions of the Bill. (a) First, the Bill provides for the identification of the procurement entities and types of procurement to be subjected to the GPA, the method of valuing each procurement to determine if it is within the GPA threshold value, and types of procurement that could be excluded, as provided for by the GPA, such as those on grounds of national security, defence, public morals, order or safety, human, animal or plant life or health or intellectual property, or products or services of handicapped persons and of philanthropic institutions; (b) Secondly, the Bill specifies the procurement procedures in respect of: (1) the technical specifications to be included in tender documents; (2) the procedures for the qualification of suppliers; (3) the procedures for the award of a procurement contract; and (4) the collation and provision of information on procurement activities of entities covered under the GPA. Finally, the Bill sets out the provisions for the bid challenge system. This is required under the GPA to provide an avenue through which aggrieved suppliers can lodge complaints over alleged non-compliance with the GPA requirements, and seek compensation.”
“The GPA goes beyond the Tokyo Round Government Procurement Code by offering services, including construction; procurement by sub-central government, ie, states, provinces and prefectures; as well as procurement by government-related or linked entities. The GPA will cover procurement of goods and services by our Ministries and Organs of State and 25 statutory boards. Singapore's Government procurement system Singapore has always practised an open and competitive system of Government procurement. The three principles underpinning Singapore's public procurement policies are : (a) Open, fair, competitive and transparent rules and procedures. The processes and procedures of submitting tenders for Government projects are well publicised and adhered to strictly; (b) Honesty and integrity in the evaluation of tenders and quotations; and (c) Value for money based on overall cost-effectiveness and efficiency. This ensures that we stretch the tax-dollar and keep the cost of Government low. These principles have stood us in good stead over the years and have earned us a high reputation amongst both local and international suppliers and contractors. The private sector knows that it cannot win Government projects through connections or under-the-table methods. As they know that the Government will be rational in its evaluation of tenders, many have also proposed better and more cost-effective alternatives, hence helping us to operate more efficiently. Over the years, we have improved the system to make it more efficient and effective. For example, we now post tenders and award information on the Internet under the Government Internet Tendering Information System (GITIS).”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Government Procurement Bill seeks to legislate the basic framework for Singapore's implementation of the 1994 Agreement on Government Procurement ("GPA" in short) negotiated under the auspices of the World Trade Organisation or WTO. The Bill sets out the scope of Singapore's Government procurement covered by the GPA and the regulations governing the receipt, process and disposal of any complaint or "bid challenge" by suppliers of any alleged non-compliance with the GPA requirements by Government Ministries, Departments, Organs of State and Statutory Boards. Background to the GPA The GPA took effect on 1st January 1996. It is an international framework designed to make government procurement more transparent, and to ensure that Government do not protect domestic products and suppliers, nor discriminate against foreign products and suppliers. The GPA requires that signatory members shall not discriminate against the products, services and suppliers of another member. There are currently 25 GPA members, including the United States of America, Canada, United Kingdom, Israel, Japan, Korea, Hong Kong and most of the European Union countries. It is thus beneficial for Singapore to accede to the GPA. It is also a re-affirmation of Singapore's open and transparent Government and our commitment to the open multi-lateral trading system. Singapore's application to join the GPA was approved by the WTO on 20th September 1996. The predecessor of GPA is the Tokyo Round Government Procurement Code, which came into effect on 1st January 1981. It covered the procurement of goods at the central government level. Singapore is a signatory to the Tokyo Round Government Procurement Code.”
“Mr Speaker, Sir, the calls from certain quarters for more regulation of speculative activities relate to the recent volatile movements in foreign exchange and stock markets which have depressed the value of currencies and share prices in the region. The belief is that some mechanism should be introduced to control speculative foreign exchange activities. These calls are unrelated to the concept of regulating Singapore's financial sector with a "lighter touch", as outlined by DPM BG Lee in his speech to SESDAQ on 4th November 1997. Regulating with a "lighter touch" does not mean the lowering of supervisory standards. The maintenance of high supervisory standards will remain a cornerstone of Singapore's development as a financial centre. It means modifying the style and balance of regulation and supervision. The proposal is to set clearer rules to encourage the private sector to play a greater role and to allow more innovation, but to accompany this with more comprehensive supervision to ensure compliance. The reason for this change in approach is the need to respond to rapidly changing banking technology and international competition. This is a strategic shift in approach which we must do independent of the short-term economic ups and downs. EN-BLOC SALES IN PRIVATE CONDOMINIUMS 14. Mr Lew Syn Pau asked the Minister for Law whether he will consider making it easier for en-bloc sales in private condominiums to be effected.”
“The monthly Goods and Services Tax (GST) collection at the Woodlands Checkpoint for the past six months is as follows: GST Monthly Collection FY 97 at the Woodlands Checkpoint / S$ May 30,000 June 31,000 July 35,000 August 34,000 September 34,000 October 49,000 I should point out that these collections are not from day trippers buying groceries and so forth in Johor. These are GST collections from traders who bring in goods for resale in Singapore and therefore they are subject to 3%. Practically, no Singaporean day tripper in fact exceeds this quota. He is very careful. So by and large, he does not pay any GST. MR TANG LIANG HONG (Letters to Mr Speaker on suitability for selection as NMP) 10. Mr J. B. Jeyaretnam asked the Prime Minister what were the circumstances under which letters written to the Speaker concerning the suitability of Mr Tang Liang Hong for selection as a Nominated Member of Parliament came to be released to the press.”
“That is a possibility. But of course a reasonable amount should be allowed for legitimate travellers particularly tourists. I think taking it out altogether would not be consistent with international practice. So it is really a question of size and we will have to judge this. GOODS AND SERVICES TAX (Collection at Causeway) The following Question stood in the name of Mr Chng Hee Kok- 9. To ask the Minister for Finance what is the monthly goods and services tax collected at the Causeway for the latest six months.”
“When he says "lifting", does he mean increasing it or reducing it? Or does he mean taking it out altogether?”
“I take it that the Member is suggesting tax incentive for domestic consumption. We can consider it, but I doubt it.”
“We will take measures to safeguard revenue loss arising from the GST exemption limits if the situation necessitates such a move. Assoc. Prof. Chin Tet Yung (Sembawang): Sir, would it also be necessary to look at the fiscal measures relating to the retail trade in Singapore to see whether Singaporeans can also be positively encouraged to shop more in Singapore than in Johor Baru?”
“Mr Speaker, Sir, in recent weeks, there has been an increase in the number of Singaporean shoppers to Johor Baru to take advantage of the depreciation of the Malaysian ringgit as well as shopping sales in Johor Baru. Customs and Excise Department has stepped up GST checks at the checkpoints to ensure that all Singaporean shoppers returning from Johor comply with the GST requirements. A reasonable GST exemption is given for goods imported by bona fide travellers. The intention is to relieve a person from paying GST on a reasonable amount of purchases he may bring into Singapore. Currently, an adult traveller, which is a person 18 years old and above, who had been away for more than 48 hours is allowed an exemption from GST up to $400 of the value of the goods brought in. If a traveller is below the age of 18 years, the GST exemption is on the value of goods up to $200. The above limits are halved if he has been away less than 48 hours. In October this year, an average of about 7,000 Singapore registered cars return from Malaysia every day. If, theoretically, each car contains purchases up to $800 (the maximum GST exemption on the assumption that each car carries four adults, including the driver), the potential GST revenue loss per year can be up to $60 million. Even if each person buys only up to half his GST exemption limit, the loss would still be some $30 million. In practice, of course, not every Singaporean is likely to use up his exemption limit and many of the day purchases are in the form of groceries and poultries. We are constantly reviewing the GST system, including the GST exemption limits, to ensure that the GST system introduced only three years ago in 1994 is working well.”
“In addition to the Indonesian loan, we have also extended US$1 billion facility to Thailand. Beyond that, we do not see any other potential request from the ASEAN region. But if there are, we have to think very hard because of our extensive commitments already. CAUSEWAY TRAFFIC JAMS 4. Mr Hawazi Daipi asked the Minister for Trade and Industry (a) what were the causes of the recent Causeway jam and what did the Government do to resolve the problem; (b) what more can be done to resolve the problem earlier; (c) what will be done in the future should such jams recur either at the Causeway and/or the second-link bridge; and (d) what plans his Ministry has to ensure that Causeway jams will not cause serious traffic jams in Marsiling Estate and some parts of Woodlands New Town. 5. Mr Tay Beng Chuan asked the Minister for Trade and Industry whether the Government has taken the necessary actions to alleviate the frequent massive traffic jams at the Singapore-Johor Causeway and whether the Singapore and Malaysian governments will hold a meeting to resolve the problem and find a long-term solution to ensure the free flow of goods, services and people between Singapore and Malaysia. 6. Mr Zulkifli bin Baharudin asked the Minister for Trade and Industry what is the impact the Causeway jam has caused to companies in Singapore and whether he will ask the Malaysian government to take steps to ensure the smooth flow of traffic on the Causeway.”
“It is not generosity. It is a commercial loan earning interest.”
“Expenditures in Potong Pasir are not restricted by reasons of generosity but whether they are in fact useful, and there will be adequate funds if Government considers they are necessary.”
“They are temporarily in financial trouble. The purpose of the loan is to get them out of it and they will pay back.”
“Are you saying the US government is not defaulting ever?”
“I have mentioned earlier that neither Thailand nor Indonesia has ever defaulted on sovereign loan and I think the risk is, of course, always there potentially. But neither is the purchase of a $5 billion US bond totally risk-free. One cannot say for certain that the US government will never default on its loans either.”
“It is a commitment; it is not giving. It is not a gift. This is a commercial loan attracting commercial interest rates.”
“By itself, no. As I have mentioned earlier, it is a back-up facility which we are providing together with a number of other countries which needs only to be drawn down if Indonesia's frontline defence of US$23 billion is fully used and they require supplement to hold up their external reserves.”
“Mr Chiam was not here when I answered the question. Because of our special relation with Indonesia and the fact that Indonesia is our close neighbour and the largest economy in ASEAN and its welfare is critical not only to us but to all the countries in ASEAN, and because of the special relationship between our leaders and President Suharto - I think these are very important reasons.”
“I am not a lawyer. I shall not argue this with him. I do not believe that it applies in this case.”
“No. I do not agree with his interpretation. As far as I am aware, we have the Attorney-General's advice that such granting of loans and the purchase of securities of this type had prior approval of two Presidents.”
“Perhaps to refresh my memory, Article 144 refers to what?”
“The decision was taken in Singapore and conveyed to Indonesia. It has to be, because the Prime Minister and his advisors are in Singapore and he alone went to Indonesia together with some aides. I have mentioned earlier that there is no need for such a decision to be subject to the approval of the President. I do not know what part of the Constitution is he talking about.”
“As far as I am aware, none. These are relatively small banks in Indonesia. Do not forget, Indonesia has currently, I think, 256 banks and this is the first phase of the banking reform which Indonesia is implementing. Mr Jeyaretnam: May I ask the Minister or perhaps the Prime Minister, now that he is here, whether the decision was taken in Jakarta, or was it taken here? And secondly, how does the Minister or the Cabinet reconcile this - not seeking Parliament's approval - with Article 144 of the Constitution, and likewise not getting the President's approval?”
“On the question of trade ties, I will refer his question to the Minister for Trade and Industry. I think he will have occasion to speak later on some question. He has the exact figures. Where does the money come from? It comes from MAS' own assets. MAS manages a portfolio of substantial size and holds its financial assets in various forms, largely financial assets in US dollars, Deutsche Mark or Yen. As I mentioned earlier, the Indonesian loan is therefore a conversion of one asset form to another, so it has no impact on MAS' reserve position. The loan is a five-year facility drawn down on five tranches of $1 billion each at the request of the Indonesian government. It will be at commercial interest rate, ie, SIBOR plus a premium, SIBOR being six months US dollar inter-bank interest rate. The loan will have to be repaid either earlier or the maximum of five years.”
“Mr Speaker, Sir, I do not know exactly where and when the decision was made but it was several weeks ago, and the decision was taken by the Prime Minister in consultation with his senior advisers, which include the Senior Minister, the Deputy Prime Minister and myself, and subsequently the decision was approved by Cabinet. Who took the decision? The Prime Minister ultimately, including his senior Ministers. Why was Parliament's approval not sought? A decision of this sort is entirely within the prerogative of the Executive. It is no more than a conversion of one loan to another form. For example, we buy from time to time large quantities of, let us say, 5-year US bonds. This loan to Indonesia merely converts the US$ loan extended to the US government to a loan extended to Indonesia. There is no change in the asset position. Therefore, there is no need to refer to Parliament. Equally, for the same reason, there is no need to refer the matter to Parliament because Parliament's responsibility is to approve legislative matters and not to get involved in Executive decisions on a day-to-day basis. The President's approval was not necessary because in 1980 President Sheares had already approved the purchase of Indonesian assets and in 1986 President Wee Kim Wee also approved the purchase of Indonesian equities and these Presidential approvals are still valid notwithstanding the election of the Elected President. If the Elected President feels that there is something untoward which he dislikes he can still veto these actions but it does not require his specific approval.”
“The loan will be administered between the Monetary Authority of Singapore (MAS) and the Indonesian Ministry of Finance. It will be a direct loan from MAS to the Indonesian government and will, as I mentioned earlier, if drawn down, be used basically to act as part of the Indonesian government's foreign reserve. It will have no impact whatsoever on the Singapore Government's current operating expenditures and therefore its surpluses, if there are any, so that there should be no direct impact on the Government's programmes, including the upgrading programmes, provided the Government continues to run current surpluses in its budget in the next few years.”
“Mr Speaker, Sir, with your permission, I would like to take Question Nos. 1 to 3 together as they are related?”
“Mr Low Thia Khiang asked the Minister for Home Affairs whether the police has solved the case of an attempted abduction of two children on 29th April 1997 outside a semi-detached house at Jalan Kayu.”
“MAS actively promotes this sector to enhance the status of Singapore as an international financial centre. In recent years, Singapore has come under increasing pressure to further liberalise and open up the domestic financial sector to foreign participation. A WTO agreement on the liberalisation of financial services is under active discussion and there is pressure to complete the negotiations by December this year. Furthermore, globalization and IT are sweeping the financial industry worldwide, causing radical changes, including mergers, new products, and new risks. Our approach to supervising and promoting the financial sector, both offshore and domestic, must take these worldwide trends into account. It is against this background that the Government has set up the Competitiveness Committee and the Financial Services Review Group. This is an exercise to build on our strengths, identify new approaches and develop promising new areas to ensure we remain competitive as a financial centre. The Committees are expected to issue their preliminary reports towards the end of this year. Our financial sector has considerable strengths - high standards of regulation and supervision, sound banks and financial institutions, a transparent, open environment giving all participants maximum protection against fraud and sharp practice. Any policy changes will build upon these strengths, while making the sector more productive and competitive. This will translate into stronger growth and increased profitability. It will also generate greater demand for legal, accountancy and other ancillary services. The overall impact on our economy will therefore be positive. ATTEMPTED CHILD ABDUCTION 3.”
“Singapore operates a two-tier financial services sector. The first tier is the domestic banking sector in which the currency of transaction is the Singapore dollar. The second tier is the offshore banking sector which transacts in foreign currencies, principally the US dollar, Japanese Yen and the Deutsche Mark. The financial system in Singapore is governed by the Monetary Authority of Singapore Act, the Banking Act, the Securities Industry Act, the Futures Trading Act, Finance Companies Act, Insurance Companies Act and subsidiary legislation. The MAS issues regulations setting out operational requirements and prudential standards for all financial institutions. The MAS also regulates the international usage of the Singapore dollar. At the present time, 34 banks hold full licences to operate in the domestic banking sector, comprising 12 Singapore controlled banks and 22 foreign bank branches. In addition, there are 13 restricted and 107 offshore licensed foreign bank branches in Singapore which are able to undertake wholesale Singapore dollar business. Singapore practises universal banking, whereby banks are able to transact in all aspects of financial services, including commercial banking, securities/futures trading, insurance and other ancillary activities. Because the domestic banking sector is already over-banked, no new full and restricted banking licences have been issued, whether to local or foreign entities. The offshore banking sector is still open and new foreign financial institutions which meet MAS standards will continue to be admitted. Entry is generally based on an assessment of the adequacy of home supervision, and the quality of the parent banks' international reputation and capital and asset status.”
“Sir, I beg to move, In page 2, lines 14 and 17, to leave out "other than motor spirit". The reason for this is that it is a technical amendment. Amendment agreed to. Clause 3, as amended, ordered to stand part of the Bill. Clauses 4 and 5 ordered to stand part of the Bill. Bill reported with an amendment, read a Third time and passed. TOURIST PROMOTION BOARD (AMENDMENT) BILL Order for Second Reading read.”
“The amendment will remove the ambiguities. The Bill also makes consequential amendments to the Free Trade Zones Act. This is to ensure consistency with the Customs Act in the valuation of imported goods for the purposes of levying customs duty. 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. [Mr Speaker in the Chair] Clauses 1 and 2 ordered to stand part of the Bill. Clause 3 -”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill seeks to amend the Customs Act and the Free Trade Zones Act to give effect to the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade known as the Customs Valuation Code. In addition, the Bill also seeks to amend section 130(1) of the Customs Act on enhanced sentences for cigarette smuggling to remove certain ambiguities which have arisen in interpreting this section of the Act. Singapore, as a member of the WTO, is obliged to comply with the Customs Valuation Code within five years from 1st January 1995. The Customs Valuation Code stipulates that the transaction value of imported goods should be used to assess the import duty payable. The Bill also makes the following amendments to the Customs Act: (a) amend section 22 to confine the method of valuation in section 22 to that for the purposes of levying excise duty under the Act; (b) introduce a new section 22A to provide for the purposes of levying import duty under the Act. The valuation of imported goods will follow the Customs Valuation Code which will be provided for in the subsidiary legislation; (c) introduce a new section 22B to provide for any person who disagrees with the valuation under section 22 or 22A an avenue to object to the valuation and, if necessary, appeal to the High Court; (d) amend section 130(1) to make it clear that for offences involving tobacco products of more than 2 kg in weight, (i) the punishment of imprisonment is not mandatory; and (ii) the first offence refers to an offence involving tobacco products of more than 2 kg in weight. This has been the intent of section 130(1) but its wording has given rise to certain ambiguities in its interpretation.”
“Sir, I think I have already answered the first part of his question. As to the impact of the currency turmoil on Singapore's position, as I said, it must make our position stronger because we have a very stable economy and a relatively stable currency. ACCIDENT AND EMERGENCY DEPARTMENTS OF PUBLIC HOSPITALS (Increase in charges) The following question stood in the name of Mr Yeo Guat Kwang - 9. To ask the Minister for Health whether the upping of charges of the Accident and Emergency Departments (A&E) of hospitals is the only solution to prevent the indiscriminate use of such services. 10. Dr Lily Neo asked the Minister for Health the reasons behind the recent increase in charges for patients using the Accident and Emergency Departments (A&E) of public hospitals and whether he will consider other solutions to solve the problem of overcrowding at the A&E.”
“I do not see that as a financial question, although indirectly, of course, it affects business. The Minister for Communications is not around. I think the reports in the papers already highlight the fact that it is a serious problem which lorry operators and businessmen on both sides of the causeway are concerned and they have made appeals to the Johor authorities and I believe some attempts have been made to ease the situation. For the longer term, of course, I cannot say what is going to happen if it persists. Mr Ang Mong Seng (Bukit Gombak)( In Mandarin): In the recent currency crisis in this region, the effect on the Singapore dollar is less as compared to the Thai baht, the Indonesian ruppiah and the Malaysian ringgit. We have done well but I would like to ask the Minister whether anything has been done to ensure that the Singapore currency will remain strong and stable. Secondly, will the recent currency crisis affect Singapore's endeavour to become a financial centre in this region?”
“As I mentioned earlier, the Singapore dollar is measured against a basket of currencies, of which the US dollar is one component but by no means a major component. So whilst it has depreciated against the US dollar, this reflects a general strengthening of the US dollar against all international currencies. Depending on the type of exporter you are, the depreciation against the US dollar would benefit certain industries more than others. For example, I am sure that SIA would be very happy to have the situation continued. But overall, we are firming against the trade basket, so the impact of these currency changes will have no effect, we believe, on our imported inflation. On the question of internationalising the Singapore dollar, MAS' policy has consistently been to allow a gradual increase in the use of the Singapore dollar for international purposes, but not at a rate which will lead to destabilising flows taking place which might upset the domestic economy. So we will continue to maintain this policy. Since last year, for example, we have increased the excess by foreign banks through Singapore dollar loans by $50 million from $150 million to $200 million, and we have been doing this gradually over the years. We have also allowed, under certain conditions, foreign companies to list their shares in Singapore dollars and we are contemplating easing some of the conditions to make it more attractive. These are the gradual ways in which we will allow the Singapore dollar to be used internationally but not at a rate which will destabilise our domestic Singapore dollar economy.”
“The Member would have seen from press reports that such a fund has been mooted initially by the Japanese and subsequently discussed with the ASEAN Finance Ministers. In principle, the ASEAN Ministers have supported the concept of such a fund. But I think all are agreed that the fund should be subject to full IMF conditionality, plus probably additional safeguards on prudential overviews. The matter is under discussion now with the IMF and in consultation with the US Government. For the time being, I cannot say when and how such a fund will be finalised. Dr S. Vasoo (Tanjong Pagar): Sir, two supplementary questions. One is the impact of the depreciation of the Singapore dollar against the US dollar on the economy and the other question is the plan to internationalise the Singapore dollar. Has that been reviewed?”
“In addition, our strategy of being pro-business, minimising bureaucracy, ensuring a competitive tax structure and improving the educational and skills level of our workers has been key to our success in attracting foreign investors. The increasingly integrated global economic environment offers both opportunities and risks. The challenge for Singapore lies in reaping the benefits of the global market while safeguarding the basic soundness of our financial and economic system. In this regard, the Government remains committed to maintaining Singapore's conducive and competitive economic environment.”
“Sir, so far, the regional currency crisis has had only a small impact on the Singapore economy. Recent indicators show that the Singapore economy is also on course for an export-led recovery to attain growth in the region of 6-7% in 1997. For 1998, however, growth of total export of goods and services, particularly tourism, could be weaker, reflecting slower growth and poorer business sentiment in the regional economies. Longer term, the impact will depend on how quickly the regional economies recover and resume their normal growth rates. Unlike the Thai Baht and Indonesian Rupiah, the Singapore dollar is managed against a trade-weighted basket of our trading partners' currencies. So far this year up to 3rd October, the Singapore dollar has appreciated by 28.9% against the Thai Baht, by 39.2% against the Indonesian Rupiah, by 19.9% against the Malaysian Ringgit and by 3.7% against the Deutsche Mark, but depreciated by 9.3% against the US dollar, by 9.3% against the Hong Kong dollar, by 9.4% against the Renminbi, by 4.6% against the Japanese Yen and by 4.6% against the Sterling Pound. Overall, the Singapore dollar has firmed against the trade-weighted basket of currencies. Singapore has emerged relatively unaffected by the regional currency crisis because of our strong political and economic fundamentals. We have high savings rates, substantial budget surpluses and large foreign reserves. We also have large current account surpluses and strong inflows of direct foreign investment. All these are the outcome of prudent fiscal and monetary policies which the Government has put in place over the years.”
“Mr Speaker, Sir, may I take Questions 7 and 8 together as they are related?”
“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. MEDICAL REGISTRATION BILL Order for Second Reading read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The main amendments to the Singapore Totalisator Board Act are as follows: (a) Amendment to section 4, which relates to the functions of the Board. The Bill proposes to amend this section so that the Board can carry out other activities not covered under its existing functions, provided that these activities are approved by the Minister. The Board may, with the Minister's approval, offer facilities for recreation such as golfing, and carry out activities which are "requisite, advantageous or convenient for or in connection with the Board's functions" on land owned or held by the Board. (b) Amendment to section 5(1) which relates to the Board's powers to carry out its functions. The Bill proposes that this section be amended to make it clear that the Board's powers include the provision of technical assistance and advice relating to racing and gaming in Singapore or elsewhere; and the formation of a company or participation in a joint venture in pursuit of its functions or activities approved by the Minister. Similar provisions are found in the legislation of other statutory boards. These amendments will make it clear that the Board can now, provided the Minister's approval is given, go into activities not covered under its existing functions. For example, the Board has been offering golfing facilities, which under the existing Act, the Board may not have the explicit authority to do so. The amendments would also allow the Board some flexibility to make better use of its resources, ie, land, technical expertise, etc. Aside from the main amendments, there are minor technical amendments to the wording of the Act's provisions. Sir, I beg to move. Question put, and agreed to.”
“Sir, I beg to move, "That the Bill be now read a third time." Question put, and agreed to. Bill accordingly read a Third time and passed.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purpose of this Bill is to make final provision in accordance with Articles 148(2) and 148(C)(2) of the Constitution for additional expenditure in excess of the provisions authorised by the Supply Act, 1996 and the Supplementary Supply Act (No. 2) of 1996. The additional sum has been presented as Supplementary Estimates which have been considered and approved by the House as Command Paper No. 1 of 1997. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Sir, I beg to move, "That the Bill be now read a third time." Question put, and agreed to. Bill accordingly read a Third time and passed. FINAL SUPPLY (FY 1996) BILL Order for Second and Third Readings read.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In accordance with Article 148(1) of the Constitution, heads of expenditure to be met from the Consolidated Fund and Development Fund, other than statutory expenditure, have to be included in a Bill to be known as the Supply Bill. The purpose of the Supply Bill before Members is therefore to give legislative approval for the appropriations from the Consolidated Fund and Development Fund to meet expenditures in the financial year 1st April, 1997 to 31st March, 1998. The heads of expenditure and the sums that may be incurred in respect of each head are shown in the schedule to the Bill. These have been approved by the House in the Main and Development Estimates of Expenditure for the financial year 1st April, 1997 to 31st March, 1998, and appear on pages 37 and 38 of Command Paper No. 2 of 1997. The Supply Bill, when approved, will empower me to issue warrants, authorising expenditures up to the amount for each head as shown in the Bill to be paid out from the Consolidated Fund and the Development Fund. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”