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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“The only regulatory function of the SIC is the administration of the Singa- pore Code on Take-Overs and Mergers. Its role in this respect is to ensure that the rules relating to the proper conduct of take-overs and mergers, as set out in the Code, are observed by parties involved in these transactions. Therefore, investors should not labour under any illusion that, in allowing new companies to be listed, the SIC, in any way, guarantees the profitability or continuing viability of any company. Judgment of the investment merits of any company must lie with the individual. Furthermore, the SIC cannot prevent speculators in the market from getting their fingers burnt. Speculation always carries risks and little can be done to protect people who, in their desire to get rich, knowingly expose themselves to such risks. Members will have noted by now, from what I have just outlined, that the Bill seeks to try to strike a balance between prudential control and freedom of action. However, I would like to make it clear that the Bill is not a panacea for all ills that may develop in the securities industry. An important point brought up in the previous Second Reading speech for the Act some 13 years ago bears repeating. The Bill does not attempt to prevent speculation, neither does it act as a guarantee agaist loss. Some speculation attends every anticipation of short or long-term price trends which induces trading activity on the Exchange. It is and always must remain the responsibility of the individual investor to decide as to the advisability of any particular investment and he should bear the full risk of price fluctuations inherent in such an investment. Sir, I beg to move. Question proposed. 3.23 pm”
“The MAS may also appoint auditors to conduct surprise audits of stockbrokers and investment advisers. In line with the Banking Act, the MAS may conduct inspections of the Exchange, stockbrokers and investment advisers. To enable the MAS to discharge its supervisory functions efficiently, the Exchange, stockbrokers and investment advisers are required to furnish relevant returns. These provisions are found in Division 3 of Part VII and clause 12 of the Bill. Regulation of Trading in the Market Place Part IX of the Bill contains revised provisions dealing with trading in securities. The significant feature of this Part is the new provision for dealing in securities by insiders, ie, persons with access to price-sensitive information. A notable difference under the new provision is that an offence is committed whether or not the dealing is undertaken with the intention of using information to gain an advantage; the purpose of dealing is irrelevant. The penalties too in the Bill have generally been increased relative to the present Securities Industry Act so as to enhance their deterrent value. Finally, the role of the Securities Industry Council (SIC) remains unchanged under the Bill. As there appears to be some misunderstanding about the role of the SIC, I would like to take this opportunity to clarify the SIC's position. The SIC was formed in January 1973 as an advisory and consultative body to the Minister for Finance on matters concerning the securities industry. The SIC's advice may also be sought by the Committee of the Stock Exchange on such matters as listing requirements, suspension and delisting of companies and the raising of money through the issue of securities on the Exchange.”
“It is expected that the fund management industry in Singapore will expand in the coming years, especially in the light of Government's policy to release part of the CPF savings for securities investment by contributors. At present, few regulations govern the activities of fund managers. Under the Bill, fund managers will be required to be licensed as investment advisers so as to afford greater protection for investors. An entire new Division 2 in Part VII of the Bill sets out the basic requirements of fund managers which fund managers have to abide by, such as the keeping of proper accounts. Clients' funds are also required to be kept in separate trust accounts and are not to be commingled with those of the fund manager nor to be used for purposes other than for the clients' benefit. On the same theme of investors' protection, clauses 50 to 54 of the Bill spell out minimum ethical standards of trade practices which a stockbroker or an investment adviser has to observe. Stockbrokers, investment advisers and their representatives alike are required to disclose to their clients any interest they may have in the securities recommended by them to their clients. In addition, they must have a reasonable basis for making their recommendation. Such reasonable basis includes an obligation upon stockbrokers, investment advisers and their represenatives to conduct an enquiry in respect of their clients' investment objective, financial situation and particular needs. Further, a stockbroker is required to give priority to his clients' orders in preference to his own. On the subject of supervision, the role of auditors would be enlarged, if necessary, to supplement the supervisory efforts of the administering authority.”
“Secondly, the right to review the disciplinary actions taken by the Exchange and take the necessary disciplinary action against Exchange members should the Exchange fail to do so. Thirdly, the power to issue directions to the Exchange with respect to trading activity if it is in the public interest. The exercise of this discretionary power is to curb excessive speculation in particular counters or the market as a whole and to create a "cooling off" period. Fourthly, the ability to remove recalcitrant directors and officers of the Exchange. Finally, the Minister may appoint persons from outside the stockbroking community to sit on the Committee of the Exchange. I hasten to add that it is not the intention to have any Government representative on the Exchange Committee. Rather, any person appointed would be from the private sector, representing the interests of listed companies and investors. Supervision of Stockbrokers and Investment Advisers The Bill also introduces certain basic requirements of business prudence and fair trading practices to ensure that stockbrokers and investment advisers, includ- ing fund managers, do not conduct their businesses in a manner which may jeopardize the interest of investors. One of the weaknesses of the securities industry has been the general under-capitalization of stockbrokers. Minimum financial standards will, henceforth, have to be observed by stockbrokers to ensure that they do not undertake excessive risks and over-extend themselves. At present, the SES does not impose any margin requirements on its member firms. Left to their own devices, some firms have been too liberal in providing margin financing to their clients. To overcome this shortcoming, margin requirements would be prescribed.”
“However, they are subject to oversight by the supervisory authorities, whose principal functions are to ensure that the stock exchanges carry out their self-regulatory responsibilities diligently and that the market is generally operated prudently and in the public interest. It is recognized that self-regulation by practitioners, although desirable, must be supplemented by a series of checks and controls by a statutory body that is clear of self-interest. The Bill is drafted with these principles in mind. It is not the intention of the Government to take over the day-to-day regulation of the industry from the SES. Rather, the Bill seeks to provide the mechanism to enable the Government to ensure that the Exchange henceforth exercises proper regulation of the market. In the Bill, the MAS would be conferred with certain reserve powers over the Exchange and the MAS will not hesitate to step in should the Exchange fail in its self-regulatory responsibilities. The Explanatory Statement describes in sufficient detail what this Bill seeks to achieve and I need not deal with the provisions in any detail. However, I think it would be useful if I highlight the main provisions of this legislation. These provisions may best be dealt with under three headings:- (a) Supervision of the Stock Exchange; (b) Supervision of Stockbrokers and Investment Advisers; and (c) Regulation of Trading in the Market. Supervision of the Stock Exchange In order to ensure that the Exchange discharges its self-regulatory responsibilities diligently, new provisions are proposed in the Bill to give the MAS certain reserve powers over the Exchange. These include: Firstly, the ability to amend the rules and listing requirements of the Exchange.”
“This means that major reforms in the way the SES is organized and the way it conducts its business will become necessary, in the face of the accelerating pace of the internationalization of major markets in the world. With the aid of powerful new electronic devices, stocks can now be traded across borders as easily as they can be traded within a country, meaning that only countries with the most efficient and cost effective stock markets will stand to benefit. This trend towards internationalization of securities trading and increasing participation by financial conglomerates insecurities business compels us now to take greater cognizance of external factors and the competitive pressures they exert on us. The traditional style of conducting business with low capital has to give way to greater infusion of financial resources from institutions with the necessary capital. To meet the challenges ahead, policies suitable for an international environment have to be pursued and participants in the industry have to upgrade their operations and become more efficient and professional in the conduct of their business. The Bill, with provisions to raise standards of business practice and set minimum financial requirements, will facilitate the achievement of these goals. Before I delve into the substance of the Bill, let me outline its framework. In drafting the Bill, we have studied the relevant securities legislations of the United States and Australia. The regulatory philosophy underlying the legislation in these countries is one of regulation of the industry by practitioners but subject to appropriate government control. In these two countries, the stock exchanges regulate themselves.”
“The draft Bill was objected to strongly by members of the Stock Exchange on grounds that the new provisions would destroy the concept of self-regulation and drive business away from the SES and from Singapore. As a result, the Bill was deferred for further consultation with the SES. It is MAS's practice to allow ample opportunity for all those who are affected by proposed legislative changes to have their views heard and objections considered. As things turned out, events were overtaken by the failure of the Pan-Electric Group, which led to a crisis of confidence in the SES and the subsequent failure of a number of brokerage houses. These developments brought to light the inherent weaknesses of a self-regulatory system without adequate regulatory oversight, operating in an increasingly complex, fast growing and highly competitive market. With the benefits of hindsight, it is clear that in the scramble for business, brokers have indulged in margin financing and credit extension practices which went well beyond normal limits of prudence. The result is risk exposure in excess of capital resources, leading to insolvency when the markets turn. The Securities Industry Bill, 1986, is intended to rectify the weaknesses in the existing system of regulation and to provide the framework for the development of a sound and stable securities market. If the securities industry is to grow into a significant component of Singapore's financial sector, it must not only operate fairly and prudently to maintain investor confidence, it must also keep pace with developments in the major world securities markets.”
“This point was emphasized by the then Finance Minister, the late Mr Hon Sui Sen, in his second reading speech, where he said that the Act "acknowledges the principle of self-regulation of the Exchange by the Committee and is not intended to interfere with the day-to-day control by the Committee of normal share trading on the Exchange, nor with the traditional form of control that the Committee exercises over members of the Exchange". Since the passage of the Securities Industry Act of 1973, the Exchange has jealously guarded the autonomy conferred upon it. The SES does not provide Government with statistical returns as it is not required to do so under the Act. Nor does Government have powers of surveillance or access to SES members' books. The Securities Industry Act of 1973 was introduced after the bear market of 1973. Subsequent to that time, the stock market consolidated and picked up. When the stock market was doing well and share prices were on the uptrend, the ability of the Exchange to self-regulate was hardly ever tested. Recently, however, the market suffered a severe bear turn and cracks began to appear in this system of self-regulation. When the MAS took over the administration of the Securities Industry Act in late 1984, it considered that due to changed conditions the existing system of self-regulation was not satisfactory. A new Securities Industry Bill was drafted and circulated to members of the SES for comments. The new Bill would provide the MAS with powers it considered necessary to discharge its supervisory role effectively, powers which were not available in the Securities Industry Act of 1973.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Members will have noted from the Long Title of the Bill and the Explanatory Statement that this Bill amends and consolidates the law with respect to the securities industry and repeals the Securities Industry Act, 1973 (No. 17 of 1973) and section 158 of the Companies Act on insider trading (Chapter 185 of the Revised Edition). The Securities Industry Act, 1973, came about as a result of the Government's decision to bring regulation of the securities market in Singapore under a statutory framework. While the Government believed that some regulation was necessary, it wished to have in place a regulatory system which would promote private sector initiative and offer maximum flexibility for market participants to react to competitive pressures, especially since our market was then at its initial stages of development. The Government also believed that too tight a regulation might drive away business to other competing markets. The framework of the 1973 Act was thus founded on the premise that self- regulation by the Stock Exchange of Singapore (SES) represented the most desirable approach to regulation of the industry following closely the self-regulatory system then in force in the United Kingdom. The Government believed that the Exchange was in a position to exercise close and effective control over the securities industry. It was also encouraged to believe that the Committee of the Exchange would be exercising this control with rigour and so did not consider statutory powers over the Exchange as being necessary.”
“The reason for this is, of course, that if we allow complete appeal on all licences to be taken to the courts, we would probably have to increase our courts many more times than there are now. I also believe that in the issue of a licence for a particular trading activity, it is not a constitutional right for anyone to have appeal to the courts. It is a privilege which the Government grants at its pleasure in order to ensure that the proper people are engaged in these activities. As to the point about whether the penalties are adequate, these are set by the Attorney-General's Chambers, and the Attorney-General is satisfied that the provisions are sufficiently severe to deter anyone, except the most adventurous. Seven years in jail, I think, is not a minor sentence by any means. In any case the object of this Bill is to try and prevent the problems arising before they actually occur, and in this connection the provisions are quite strict. As you can see, in fact, some are over-strict in certain areas. Our objective is really to try and prevent a problem arising to the scale and size which requires life sentence, for example. 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 Hu Tsu Tau]. Bill considered in Committee; reported without amendment; read a Third time and passed. SECURITIES INDUSTRY BILL Order for Second Reading read. 3.04 pm”
“Mr Speaker, Sir, I thank the Member for Whampoa for his comments on the Bill. I would take his points one by one. As to whether we have overdone it, as he suggests, I would like to point out that, in fact, the contents and details of the Bill have been discussed extensively with the members of SIMEX themselves. They are familiar with the provisions and have no severe objections to the regulations. Secondly, the Bill has been modelled on the United States' Commodities Trading Act so that we can follow as closely as possible within our laws trading practices as conducted in the United States because of the linkage between SIMEX and the Chicago Mercantile Exchange. We have to be able to assure American investors that the laws we apply here for futures trading are similar to the laws in which they are familiar with. So it is against this background that I am fairly confident that we have not overdone the provisions. In any case, the players in this market are generally professionals, people who I think are well aware of the risks involved and I take the point that the public at large should be cautioned again and again that this is not a casino they should indulge themselves in. Fortunately, the complexities of the market are such that I doubt very much that many non-professionals would indulge in it. However, given time this might change. So this point of educating the public will be kept in mind. On the issue of appeal on the revocation of licences, this is a problem which has been levelled against the Government's other Bills in the past where it is considered rather unfortunate that there is no appeal past the Minister.”
“Finally, I should like to caution potential participants in the futures markets. Futures markets are, by nature, highly volatile and though offering potential for substantial gains also present real dangers for substantial losses. The Futures Trading Bill, while it aims to protect the interests of the investing public, cannot guarantee to investors that they will make profits or not suffer losses from participating in the market. The Bill only sets out the ground rules to ensure fair play and an orderly market. I would therefore strongly advise potential participants in the futures markets to fully understand the nature of futures markets and the risks involved before venturing into these markets. They will then appreciate that risk and futures trading are inseparable. Sir, I beg to move. Question proposed. 2.53 pm”
“Accounts and Audits The Bill also requires that these agents maintain adequate and proper accounts. In addition, external auditors are given an enlarged role to provide for further checks in the self-regulatory system. The conduct of business In the futures industry, the segregation of customers' funds plays a key role in the protection of their interests. The Bill provides that the funds placed by customers with their brokers for margin requirements must be separately accounted for and not be comingled with those of the brokers. This is to prevent brokers from making use of their clients' funds for any other pur- pose than for the benefit of the clients themselves. Prohibitions of fraudulent practices Certain unethical or fraudulent trading practices, such as trading against the client without first informing him (commonly known as bucketing) and the manipulation of prices of futures contracts are prohibited so as to preserve the integrity of the market and ensure that the interests of investors are not compromised. Specific powers of the MAS to regulate the market Finally, the Bill confers upon the MAS certain emergency powers. There may be occasions in which the market may be manipulated to the detriment of the general public. Under such circumstances, the MAS would be able to take rapid action to remedy the situation using its emergency powers. Other provisions provide the MAS with the necessary powers to conduct an effective surveillance of the market, including (a) conducting routine inspections of futures exchanges and brokers; (b) conducting investgations to determine whether any person has violated the Act; (c) calling for information from market participants; and (d) issuing regulations in the course of the discharge of its functions.”
“Therefore, to ensure that the exchanges carry out their self-regulatory role properly, the Bill would empower the MAS (a) to approve the establishment of an exchange and a clearing house and to revoke such approval given; (b) to amend the business rules of an exchange to ensure that the interests of the investing public are protected; and (c) to review the disciplinary action taken by the exchange against its members to ensure that the exchange would take appropriate disciplinary action against members who flout its rules to the detriment of the public. In the Bill, SIMEX is not required to apply for approval as the MAS has overseen its development, including the review of all its rules and regulations, the screening of its members and having representatives on its board of directors. Licensing of futures brokers The next segment deals with the licensing of futures brokers and other agents. Futures brokers engage in the business of buying and selling futures contracts on behalf of customers. They collect good faith money, known as margin, from their customers. These brokers may also be given discretion by customers to trade on their behalf. Therefore, in the performance of their functions, these brokers can have access to substantial amounts of customers' funds and the disposal of these funds. The licensing provisions will regulate the entry and participation of futures brokers and other institutions acting as agents in the futures market and ensure that they carry out their business properly. Futures brokers which are already members of SIMEX are unlikely to encounter any problems in obtaining licences from the MAS as these companies have already been reviewed by the MAS prior to their admission as members of SIMEX.”
“It is not considered as yet appropriate for the MAS to regulate these other activities since they do not involve the financial sector. Broking firms that offer facilities solely in commodities futures are thus not subject to the regulations of this Bill and members of the public who trade with them will have to accept the risks involved in dealing with these firms. Investors who wish to trade in commodities are advised to place their orders through members of SIMEX as their activities in commodities markets are also closely monitored by the Exchange. I would like to stress at this juncture the need for investors to understand fully the risks involved in their investments and to be discriminating in their choice of the parties with whom they deal with. Firstly, the Bill does not indemnify investors against loss as a result of price risks to which they knowingly expose themselves. Secondly, although legislation can be enacted to deter fraud and other malpractices, it cannot totally prevent the occurrence of such events. The investor is thus obliged to protect his own interests. With the foregoing in mind, I will now deal with the main provisions in the Bill. The Bill may be broadly divided into six segments: a) The approving of the establishment of futures exchanges; b) The licensing of futures brokers; c) Accounts and audits; d) The conduct of business; e) Prohibitions of fraudulent practices; and f) Specific powers of the MAS to regulate the market. I will now elaborate on each of these segments. Approving of the establishment of futures exchanges Futures exchanges play a key role in the system of self-regulation, as they exercise wide control over the activities of their members.”
“Others had operated their customer accounts to the detriment of the customers by over-trading in order to generate commission for themselves. 21 of these companies were subsequently wound up by the courts and a director of one of these firms was sentenced to imprisonment for criminal breach of trust. Further action could not be taken against the directors of the other firms, despite the findings of gross malpractices as our existing laws made prosecution difficult. In the absence of any legislation regulating futures trading, there would be no strong deterrent to prevent other companies from being set up to repeat the activities of the early 1980's. It is against this background that the Futures Trading Bill is proposed to ensure that our futures market is operated properly and that public interest is preserved. Furthermore, the Bill will provide investors, especially international investors, with the confidence that our futures market is operated fairly. In this context, most Members will be aware that to benefit from the US experience in futures markets, SIMEX has established a link with the Chicago Mercantile Exchange. As a result of this arrangement, participation from US investors in SIMEX has been relatively heavy. There was a general understanding between the Commodity Futures Trading Commission, the US regulatory authority for futures trading and MAS that we would introduce legislation in due course. At present, the scope of the Bill is limited to the regulation of trading in gold and financial futures contracts. Trading in futures contracts based on commodities not listed on SIMEX, such as coffee, red beans, etc, is not regulated under this Bill.”
“The popularity of financial futures as an instrument for managing risks in the financial market increased further when the Federal Reserve Board of the United States embarked in October, 1979, on a new monetary policy of targetting money supply growth rather than interest rates, resulting in US Dollar interest rates fluctuating widely. Trading volumes in interest rate futures contracts soared, as banks, other financial institutions and corporate treasurers sought to hedge their interest rate exposures. Today, financial futures have assumed a prominent position in the financial markets of the world. With the opening of the Singapore International Monetary Exchange (SIMEX) in September, 1984, Singapore became the first country in Asia to have a financial futures exchange. Although SIMEX was organized as a self-regulatory body, it became clear in our review of the countries with major futures markets and our discussion with foreign regulatory agencies that there should still be some basic form of legislation to provide the framework for an orderly market and an appropriate environment whereby self-regulation can work. Without such a legislation, the economic functions of the futures market might be hindered through attempts to manipulate the prices of futures contracts. In addition, users of the futures market could be exploited by unscrupulous operators. Some Members may still remember that in the early 1980s the presence of gold futures firms which operated as "bucket shops" led to the investigation in 1982 of 24 gold futures trading companies for possible malpractices. Examination of the accounts of these companies showed that they had access to more than $14 million in customer funds. Some of these companies were found to have misappropriated customer funds.”
“Mr Speaker, Sir, I beg to move, "That the Bill be read a Second time." Before I proceed to describe the contents of the Bill, let me first brief Members on the nature of futures trading and the reasons why futures legislation is necessary. In futures trading, a person enters into a futures contract which is a commitment to buy or to sell, at an agreed price, a standard quality of a particular commodity or financial instrument for delivery at a future date. Futures contracts enable a person to predetermine the price he has to pay or will receive for a commodity which he is liable to purchase or sell at a later date. This permits him to protect himself against potential price fluctuations. In addition to this hedging function, futures contracts perform another economic function, that of price dissemination. As trading in futures contracts is carried out in a centralized location, this leads to a wider dissemination of price information, which results in more efficient markets. Futures trading in commodities, for example, wheat and corn, has a long history. It was said that the basic principles in futures trading, that is, trade now and settle later, was evident as early as 2000 BC. In recent years, trading in futures contracts based on financial instruments have become very popular. The free float of currencies in the foreign exchange markets have led to greater volatility in exchange rates. Consequently, currency futures became an important instrument to hedge against movements in exchange rates for importers, exporters, bankers and other institutions.”
“Mr Speaker, Sir, medical benefits are extended to a pensioner and his family because there is a continuing relationship between the pensioner and the Government as his former employer by virtue of the pension payable to him. When the pensioner dies, his pension stops and the medical benefit is also withdrawn. There is no continuing relationship between the Government and a non-pensionable officer on full CPF after his retirement and he is therefore not granted medical benefits after his retirement. If the medical benefits for a pensionable officer is improved by the extension of medical benefits to his wife after his demise, this will open the door to claims for medical benefits to be extended to the non-pensionable officer after his retirement. It may also lead to claims from the wife of a pensioner for the pension to be continued to be paid to her after the pensioner's demise. The Ministry of Finance is therefore unable to extend medical benefits to the wife of a pensioner after he is deceased. HEPATITIS B IMMUNIZATION (Extension to reservists and use of Medisave accounts) 3. Mrs Yu-Foo Yee Shoon asked the Minister for Health (a) whether free Hepatitis B injections, which are being given to serving National Servicemen, can be extended to reservists; and (b) whether members of the Central Provident Fund can use their Medisave accounts to pay for Hepatitis B injections.”
“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. ADJOURNMENT MOTION”
“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. SUPPLEMENTARY SUPPLY BILL Order for Second and Third Readings read. The Minister for Finance (Dr Hu Tsu Tau): 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 Clause 2 of Article 145 and Clause 2 of Article 147 of the Constitution of Singapore for additional expenditure in excess of the provision authorized by the Supply Act, 1985. The additional sum has been scheduled as a Supplementary Main Estimate which has been considered and approved by the House as Command Paper No. 4 of 1986. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In accordance with Article 145 of the Constitution of Singapore, heads of expenditure to be met from the Consolidated Fund other than statutory expenditure have to be included in a Bill to be known as the Supply Bill. The purpose of the Bill before Members is therefore to give legislative approval to the appropriations from the Consolidated Fund to meet expenditure in the financial year 1st April, 1986 to 31st March, 1987. 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 Estimates of Expendiutre for the financial year 1st April, 1986 to 31st March, 1987, and appear on page 25 of Command Paper No. 6 of 1986. The Supply Bill, when approved, will empower me to issue warrants, authorizing expenditure up to the amount for each head as shown in the Bill to be paid out from the Consolidated Fund. Sir, I beg to move. Question put and agreed to. Bill accordingly read a Second time. Third Reading”
“Mr Speaker, Sir, I beg to report that the Committee of Supply have come to certain resolutions. First Resolution reported - "That the sum of $11,867,713,120 shall be supplied to the Government under the heads of expenditure for the public services shown in the Main Estimates for the financial year 1st April, 1986 to 31st March, 1987, contained in Paper Cmd. 6 of 1986." Second Resolution reported - "That the sum of $13,520,370,300 shall be supplied to the Government under the heads of expenditure for the public services shown in the Development Estimates for the financial year 1st April, 1986 to 31st March, 1987, contained in Paper Cmd. 6 of 1986." Dr Hu Tsu Tau: Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolutions." Question put, and agreed to. Resolutions accordingly agreed to. SUPPLY BILL Order for Second and Third Readings read. 5.20 pm”
“Mr Speaker, Sir, guidelines on participation of Government- owned companies (GOCs) in public sector tenders were issued on 31st January 1986. Between then and 7th March 1986, Government awarded over 200 tenders valued at more than $650 million. Only nine tenders worth a total of $61 million were awarded to GOCs. Eight were awarded to GOCs for security reasons. For the remaining contract, there were only two bids which satisfied all the requirements and both were from GOCs. The job was given to the GOC that submitted the lower offer. CLINIC IN THOMSON CONSTITUENCY 6. Mr Leong Horn Kee asked the Minister for Health whether there is any plan to set up a polyclinic or an outpatient clinic in the Thomson Constituency.”
“(i) The number of abortions performed by private and public doctors each year since 1970 is given in Annex 1. (ii) The request for information on names and clinics of private doctors who performed abortions and the number of abortions each carried out cannot be provided due to the confidentiality of the information. (iii) The fee for each abortion procedure performed in Government hospitals is $5. We do not know the average fee charged by private doctors. It is probably in the range of $200 to $500 for each procedure for the average patient. Annex 1 NUMBER OF ABORTIONS PERFORMED BY PRIVATE AND PUBLIC INSTITUTIONS 1970-1985 Year Government Private 1970 1,886 27 1971 3,343 64 1972 3,694 112 1973 5,089 163 1974 6,681 494 1975 10,659 2,214 1976 11,665 3,831 1977 12,744 3,699 1978 13,120 4,126 1979 12,008 4,991 1980 11,280 6,939 1981 9,874 9,016 1982 8,754 10,356 1983 7,672 11,428 1984 7,340 14,850 1985 7,335 16,177”
“As the present economic situation weighs against any move which may be interpreted as setting a trend and leading to additional cost, the Ministry is of the view that a decision on the extension of medical benefits to children of female officers should be deferred to a later date. ABORTIONS (Particulars) 4. Dr Augustine H.H. Tan asked the Minister for Health if he will give (i) the numbers of abortions performed by private and public doctors each year since 1970; (ii) the names and clinics of private doctors who performed abortions, and the number of abortions each carried out since 1970; and (iii) the average fee charged for each abortion currently carried out by private and public doctors.”
“The Ministry of Finance has always maintained that the guiding principle in providing medical benefits is whether the dependants are truly dependent on the civil servants. Therefore, a female officer is accorded medical benefits in respect of her dependants if she has children solely dependent on her as in the case of a widow, divorcee or a married woman who has been granted a decree of judicial separation. In following this principle, it is assumed that the male officer is the head of the household in our society and has to shoulder the responsibility of providing for the family. The issue of whether medical benefits should be extended to the children of female officers who are not widows or divorcees was reviewed by Ministry of Finance in mid-1985. The review noted that the most cogent reason for extending medical benefits to children of female officer is the principle of equal treatment for the sexes which is especially important in our meritocratic system. However, while this principle of equal treatment per se is acceptable, the implications on the private sector companies and the financial implications cannot be overlooked. If the dependants of female officers are provided with medical benefits, there may be pressure on the private sector companies which do not provide such benefits (even to the dependants of male employees) to provide medical benefits to dependants of their employees. Moreover, extension of medical benefits to children of female civil servants would have substantial financial implications and this would not be consistent with other measures taken by the Government to trim public sector cost.”
“In the case of workers who have met with industrial accidents and become handicapped, it is likely that the retraining will be in areas of work which do not involve significant skills retraining or upgrading. Fortunately, the secretariat has not encountered such request for support from employers to date. In normal circumstances, training grants are given in support of skills upgrading. In the case of retraining of workers who become handicapped as a result of industrial accidents, sympathetic consideration may be given if the employers concerned really require incentives and encouragement from SDF to enable them to provide retraining for these workers. 5.00 pm I agree that more publicity should perhaps be given on the possibility of SDF funding support for the retraining of this group of handicapped workers.”
“However, extension of medical benefits to children of female public officers will be quite costly and this would not be consistent with current measures taken by Government to trim public sector costs. As the present economic situation weighs against any move which may be interpreted as setting a trend and leading to additional costs, the Ministry thinks that the extension of medical benefits to children of female public officers should be considered at a later date. Given the current employment situation, it is unlikely that the non-provision of medical benefits for their dependants would discourage women from working if they are otherwise inclined to work. Finally, the Member for Buona Vista raised questions about the use and application of the Skills Development Fund. The SDF secretariat is conscious of the need to provide training for handicapped persons so that they can pursue new vocational opportunities beyond entry level positions. The Fund has in the past supported generously efforts of companies and social service organizations to train handicapped persons to assume meaningful work responsibilities. Some of these efforts include the training of visually handicapped persons to become typists and telephone receptionists. The Fund has also given generous incentives to encourage charitable organizations to train qualified teachers and trainers who can render job training to handicapped persons. In fact, the SDF secretariat recently met with the Council of Social Services to discuss the Council's plan to coordinate and organize the training for these personnel. The plan was to prepare them for jobs in electronic gadgets assembly, computer operations and book printing and binding trades.”
“In addition, all staff reports are collated and checked by personnel sections within each department or Ministry, which among other things look for instances of victimization. Grievance-handling channels are clearly spelt out in the Instruction Manuals. An aggrieved officer may approach his senior officers, Permanent Secretary, recognized staff associations or unions for help. Cases of victimization are thoroughly investigated by the authorities. Because the present system is working well, the Ministry does not intend to make any change to the staff appraisal system for junior officers. On the question raised by the Member for Yuhua, I regret that the reply has to be similar to ours given in the past. But perhaps I could restate the reasons. The question of extending medical benefits to children of female public officers who are not widows or divorcees was studied by the Ministry of Finance in 1985. It was then noted that the most cogent reason for extending the medical benefits to these children is the principle of equal treatment for the sexes, which is especially important in our meritocratic system. However, while this principle of equal treatment per se is commendable, any liberalization of medical benefits for public employees will have financial and other implications for the private sector. If the dependants of female public officers are provided with medical benefits, there will be pressure on the private sector companies to provide similar medical benefits to their employees. At present, many companies do not even provide medical benefits to dependants of their male employees.”
“After computerization, the Authority has been able to reduce manpower requirements by 32 posts. Computerization of the Authority's billing system has resulted in prompt collection of revenue, with consequential gains on interest on bank balances. In all, annual savings of some $1 million has been realized, more than justifying the investment in computerization. Apart from the monetary savings, other application systems have resulted in a better level of service to the public and the business community. For instance, the inward/outward trade declaration processing system implemented for the Ministry of Trade and Industry and the Trade Development Board allows for the release of monthly trade data within two weeks as compared with four months previously. My Ministry and the NCB are closely monitoring the implementation of the scheme to ensure that the anticipated benefits of computerization are fully realized. The Member for Geylang Serai has asked what schemes the Ministry may have to help public officers evaluate performance of their staff. The system of staff appraisal for junior officers was last revised in 1973. Generally, supervisors report on the performance and conduct of the staff annually. The criteria and attributes used are known to all junior civil servants. Supervisors are required to inform their subordinates of shortcomings and to help them improve on their performance. Supervisors attend supervisory management courses at the Civil Service Institute where they are taught how to help their subordinates perform at their best. There is therefore no question that junior civil servants do not know what is required of them in their jobs. There are adequate safeguards against victimization. The staff report form is countersigned by the supervisor.”
“The Ministry is of the view that the small increase in the interest rate will not deter the increasing use of micro-computers. The Member for Chong Boon has raised a question regarding Government's computerization programme, and I would like to give a few details. The civil service computerization programme commenced in late 1981. Originally, this programme called CSCP involved the development of 110 application systems for seven Ministries. The scope of the CSCP has since been extended and now covers 12 Ministries, for whom 200 application systems would be implemented by the end of 1989. The total cost of the scheme is estimated at $150 million. Slightly more than $65 million, or 43%, has been spent up to the end of 1985. A total of 50 application systems or nearly half the systems, included originally in the CSCP, were operating by then. Full details of these systems are given in the National Computer Board's annual report of 1984. Projects included in the CSCP were chosen after an assessment of the benefits, both qualitative and quantitative, to be gained from the computerization and the costs involved. The benefits would include improvements in administrative and operational efficiency of departments, better services to the public and also savings in manpower and operating costs. The National Computer Board, together with the CSCP Ministries, have commenced a programme of post-implementation audits to assess the extent to which the anticipated benefits and savings have been realized in practice. NCB's preliminary assessment is that for most of the completed systems, the expected benefits and savings have been achieved. For example, the Civil Aviation Authority spent $1.5 million on its computerization programme under the CSCP.”
“The Ministry of Finance will be making suitable amendments to the Companies Act to protect companies from creditors and from going into liquidation. The amendments, which will also cover the control of company directorships, will be made known with the introduction of the Companies (Amendment) Bill in 1986 on completion of the debate on the budget in the committee of supply. It is proposed that the Bill will go to Select Committee. The Member for Thomson has also asked whether Government could consider employees' stock option schemes. I agree that stock options can play a useful role in fostering employee loyalty and commitment. However, preferential tax treatment for gains arising from stock options can open up many opportunities for tax avoidance. There is also the question of equity as stock options are only available to senior management. If at all favourable tax treatment is to be accorded to stock option schemes, I would like such schemes to be made more widely available and not just to directors and senior staff. My Ministry is presently looking into these and related issues. The Member for Radin Mas has asked about the question of powers of directors and the consequences, if they were directors of companies going into liquidation. This will be dealt with by the proposed amendments to the Companies Act. The Member for Jalan Kayu has asked why the Ministry has suddenly raised the interest rate on renovation, micro-computer and vehicle loan schemes. The reason why Government has decided to do so is that despite the increase in interest rates, Government loan schemes are still very attractive compared to commercial loan rates. The move is made, in fact, in consonance with Government's attempts to reduce subsidies, where it can and to cut costs.”
“The next main issue which concerns Members is Government's proposed manpower cuts. Again, I have discussed this at some length in the Budget statement but I think the subject is important enough to bear repeating. Manpower reductions will be effected only after detailed reviews of the activities of each Ministry and statutory board by in-house scrutiny teams. The object of each scrutiny would be to determine whether the activity is necessary and, if so, whether it could be conducted at lower cost and with less manpower. The scrutiny teams will examine whether manpower requirements and operating costs could be reduced through simplification of work procedures, streamlining of organizational structures and investment in computerization, automation and other labour-saving devices. The extent of manpower savings, including the number and type of staff which would be affected, can only be determined after the completion of the scrutinies. However, it is expected that, on an overall basis, there will be reductions in most grades of appointments and not merely lower-level staff. It is recognized that the cost savings arising from reductions in higher grade staff will be much more than the reduction in an equivalent number of lower grade staff. I will now try and deal with the specific questions raised by various Members, not necessarily in their order. The Member for Thomson has asked whether there is a law to protect companies from creditors when they go into liquidation and suggested that we might adopt something similar to Chapter 11 of the United States. He wanted to know, I believe, what is the position in regard to the control of company directorships under the amended Companies Act.”
“I will now move on to the second question of concern to Members of this House, which is, the issue of consumption tax. I have dealt with this in some detail in the Budget debate but I think it bears repeating because it is an issue of major importance which I hope the public will understand. As I have mentioned in the Budget Statement, Singapore is a price-taker. Its productive sectors must be competitive in order to survive. We may therefore have to lower our corporate taxes to meet foreign competition. When that happens, we are likely to be faced with a permanent budget deficit unless we take steps to find alternative compensatory sources of revenue. The alternatives are very few. Taxing statutory boards is one although, as I have mentioned, the amount that can be collected is likely to be small on a continuing basis. Raising statutory charges and fees is another, but this will increase business costs and reduce our competitiveness. The need for consumption taxes is therefore a compelling consideration. Of course, we must ensure that the adverse effects are mitigated. I should point out that consumption taxes already exist in the form of taxes on liquor, tobacco and petrol and as a cess on hotels, although these were and will continue to be imposed for social and other reasons and not for revenue reasons alone. It is a little premature at this stage to consider the manpower resources needed to administer the consumption tax. This is because it will depend on the type of consumption tax to be imposed, the type of goods and services to be included and the level at which the tax should apply, whether at the manufacturing, wholesale or retail level. These questions will have to be carefully studied prior to making a decision.”
“So far, with the exception of the Securities Industry Act, they have introduced and amended legislation covering the Banking Act, the MAS Act, Finance Companies Act, the Insurance Act, proper gold trading through Simex, Merchant Banking Ordinances, guidelines for the Futures Trading Act, and amendments to the Companies Act. So with the passage, I hope, of the new Securities Industry Act, we will be in a better position to ensure that another Pan-El will not take place. The reasons for the failure of Pan-El, I will mention briefly here. There were three main reasons. Firstly, mismanagement by the directors. Pan-El was facing major downturns in its business operations, like everybody else, but the management simultaneously borrowed considerably in excess of the company's capital base. Secondly, there was widespread misuse of company funds by directors and by third parties, in collaboration, for stock market speculation which resulted in substantial losses. Finally, there was failure by the external auditors to report deficiencies in the company's accounts which is still inexplicable. It is in this connection that we are proposing to introduce amendments to the Companies Act in order to ensure that adequate reporting of a company's accounts is made in future to allow not only the Government but also investors to assess more closely the performance of the company. So the basic cause for the problems arising from the Pan-El case was deficiency in the statutes which govern the operation of the company, which are essentially the Companies Act and its reporting requirements and the Securities Industry Act 1973 which did not provide adequate surveillance and monitoring powers.”
“Therefore, MAS immediately began to draft new laws to provide it with the necessary powers to take action; not on rumours or allegations because clearly it is not practical for the CAD or the MAS to mount a major investigation or for the Minister to call for a committee to be set up to investigate the affairs of publicly listed companies on the merest allegation, because you can imagine the chaos that would take place if we did so. The practical solution was to change the laws so that powers of surveillance are available, powers of entry and seizure of books and inspection will allow the MAS to keep tabs on companies, as we do with the banks, because that is the only way you can anticipate problems, not react after the event. Section 3 of the Securities Industry Act, 1973, is like an owner of a house hiring a pest exterminator to get rid of flies in his house and he gives him a cannon and says, "Kill all the flies using this cannon." Well, you would not have a house left either. So the problem MAS faced was not that it was unwilling to act because it has never hesitated to do so when clear hard evidence is available. In the Alfa-Pacific Securities case investigations were started in early 1985 and led to the prosecution and conviction of certain directors of the firm. I therefore believe that there are no grounds for the allegations made against the MAS by the Member for Anson. I am satisfied that the quality of staff is exceptional. Following the reorganization of the MAS in 1981, a programme was immediatelly launched to review all legislation under their control.”
“I have taken advice from the AG's Office and in their procedures for forward contracts as such are not illegal. They are merely contractual devices made to extend credit in the normal course of business by Stock Exchange members. Now, whether the amounts which were extended and the terms under which they were granted were prudent is an entirely separate issue. The advice is that there are some forward contracts which could be illegal, particularly those in which two parties to the contract are common or there might be cases where parties enter into collusion to manipulate forward contracts in order to influence prices in the market. These would clearly be illegal, and I believe certain cases are pending in the courts. Therefore, I think it is best to leave it to the courts to decide because each case is different. On the other point raised by the Member for Anson concerning the powers of the MAS under the Securities Industry Act of 1973, indeed I am aware that Section 3 does give the Minister the power to call for an investigation, but only on substantive evidence. That is the difficulty in which the MAS found itself when it took over the management and administration of the Securities Industry Act in the latter part of 1984. MAS reviewed the provisions and found that there were severe deficiencies in the Act which provided, practically speaking, no surveillance powers what- soever. There were no returns required from members of the Stock Exchange in which their performance could be monitored. Neither has the MAS any powers of entry to inspect the books of stockbroking companies without specific court orders, which can only be obtained for specific causes. It is against this background that the MAS quickly realized that the existing laws were totally inadequate.”
“He said that the Minister said that in the case of Pan-El the insider trading was only known in 1985. That is not true. The insider trading, I think I recall saying that we knew about it in 1984 but it was investigated by the Stock Exchange and nothing came off it. I think the Member for Anson, as a lawyer, should know that insider trading cases are extremely difficult to prove, much less convict under our present laws. I believe there is not a single case of conviction brought in the courts of Singapore. Neither have there been successful prosecutions of insider trading, I believe, even in the UK under the existing laws. Few cases have been brought to court and successfully prosecuted in the United States even though the laws there are much more strict in this matter. The laws we are proposing in the Securities Industry Act 1986 would be similar to those in the United States. Secondly, he said that the MAS was aware of the forward contracts involvement of Pan-El in early 1985. This is totally untrue. The forward contracts it knew about were in connection with Alfa-Pacific Securities. Alfa-Securities was under investigation by the CAD Department on other matters. It was only as a peripheral item of investigation that the matter came to the attention of the CAD. The CAD then referred the issue to the SES for a ruling on the legality of these contracts and, as far as the SES Committee was concerned, it was not illegal under their rules. Now, whether or not it is a proper way of running a business is quite a separate issue. Here, I want to divert slightly on this issue of forward contracts and their legality, as it has some bearing on the inferences laid by the Member for Anson.”
“In the case of a listed company like Pan-El, its operations are governed by the provisions of the Companies Act and the Securities Industry Act, 1973, with primary supervision exercised by the company's auditors and the Stock Exchange of Singapore. Present statutes do not provide the supervisory authorities with sufficient surveillance and investigative powers. This would be remedied under the proposed legislative changes to the Securities Industry Act, 1986, and proposed amendments to the Companies Act which will be tabled at the end of this Parliamentary session. 4.35 pm [Mr Deputy Speaker in the Chair] As I mentioned, the CAD became operational in March 1985 with its staff strength and scope of work determined prior to the start of operations. It was agreed, having regard to existing investigative resources, that CAD should investigate only serious and complex commercial fraud cases. The less serious or less complex cases were to be dealt with by the Police and other Government agencies through an established working arrangement with the CAD. It is not the Department's policy to leave minor cases to be dealt with under civil law. If an offence has been committed, it will be investigated by CAD if it comes within its purview; if not, it will be channelled to the appropriate investigative agency. As the CAD is a new department, it was decided that CAD's scope and workload should be periodically reviewed. Staff numbers are not as critical as the quality of its staff and productivity. Emphasis has been on quality and productivity. Should it be necessary, staff strength would be increased. Coming to the question raised by the Member for Anson, I think he has made some statements which are technically incorrect, and I will have to correct these.”
“Sir, because of limitation of time I will deal with three general questions touched on by various Members and will only take up those other questions where time permits. For those questions which I am unable to answer today, I will deal with them separately by written answers. The first one would be the question raised by the Members for Jalan Kayu and Chong Boon on how the Commercial Affairs Investigation Department operates, and also the question by the Member for Anson, because his is inter-related. First, the operations of the Commercial Affairs Investigation Department. This Department was set up in March 1985 following a study made by the Management Services Division of the Ministry of Finance. Commercial crime was on the increase and commercial law was becoming increasingly complex. A separate agency within the Ministry of Finance staffed with legal experts and specialists was therefore created to investigate and prosecute serious and complex offences which come under the following statutes: the Companies Act, Securities Industry Act, 1973, the Trust Companies Act, Finance Companies Act, the Banking Act, the Insurance Act. As the major part of CAD's work involves dealing with listed companies, it cannot investigate without having adequate cause, as this could adversely affect the reputation of companies and, therefore, their share prices. The Department therefore acts only on legitimate information and complaints. Where substantive cause can be established, the CAD does not hesitate to take prompt action, as in the Alfa-Pacific Securities case and Pan-El case subsequently. It must be understood that the CAD does not have surveillance powers and cannot be expected to anticipate crime. Its actions are, therefore, necessarily reactive.”
“Mr Speaker, Sir, the Export Credit Reinsurance Scheme was withdrawn in May 1982. Under the defunct scheme, Government would provide reinsurance support to Export Credit Insurance Corporation of Singapore for its underwriting of selected capital goods exported, in order to help exporters compete in the world export market. The benefits of the scheme to an exporter were: (1) Good security against various commercial and political risks of not receiving payments from overseas buyers; (2) The exporter can give more competitive terms to his overseas buyers and venture into new markets with greater confidence, even though such markets may be regarded as more risky than traditional ones. Six companies have benefitted from the scheme. As at 31st December 1985, Government's contingent liability under the scheme amounted to $122.4 million. POTHOLES (Cause and prevention) 10.”
“EXPORT CREDIT REINSURANCE SCHEME (Particulars) 9.”
“Mr Speaker, Sir, the Civil Service Institute already conducts Effective Counter Services courses for officers who work at counters or have to deal with members of the public. In this financial year, it conducted five such courses for 99 officers from the Ministry of Homes Affairs and the Ministry of Health. Twelve courses are planned for financial year 1986-87. These are specially tailored to meet the needs of the particular Ministry, and more will be conducted at the request of Ministries. The CSI also conducted five Telephone Techniques workshops for 121 Division III and IV staff this financial year, to give them the knowledge and skills required for performing their jobs courteously. Five such workshops for clerical and secretarial staff are planned for financial year 1986-87. Ministries and Departments also conduct their own training. Good public relations and courtesy can also be reflected in the organization of work and the environment at public areas. The Member for Ang Mo Kio may be pleased to know that Work Improvement Teams (WITS) comprising counter and other staff have completed 60 projects that have contributed to improving the public's perception of the quality of service they receive. These projects include lessening waiting time at counters, providing better directional signs and more comfortable waiting areas, and reducing the response time of ambulances. In June 1985, the Ministry of Finance organized a special seminar on A Better Public Service, where experiences and ideas on improving counter services were shared. As for his second question, the Member for Ang Mo Kio will be pleased to know that we select not only those good at languages but also those with the right dispositions to serve members of the public.”
“Mr Speaker, Sir, as I said earlier, we will study this problem. MEDISAVE ACCOUNTS (Withdrawal for Third child delivery expenses) 4. Dr Koh Lam Son asked the Minister for Health whether he will consider allowing expectant mothers to withdraw moneys from Medisave accounts to defray hospital expenses for the delivery of a third or subsequent child.”
“Mr Speaker, Sir, I am afraid the question is a little complex for me to answer. I will ask my officials to study it.”
“Mr Speaker, Sir, the Government is weighing the implications of granting leave to female officers in the civil service for their third child. An Inter-Ministerial Committee on Population considers it urgent that we review the very low reproduction rates of women with three 'O' levels and above. Because of the high singles rate and the late age of marriage of such women, they have an average reproduction rate of only 1.3 children per woman. This is well below the replacement rate of 2.05 children per woman.”
“As the 1985 audited accounts of the companies in which the government has an interest will only be available in July 1986, I will forward the information to the Member at that time. The 1984 profits and losses of these companies were already provided to the House in July 1985. Official Report - MAIN AND DEVELOPMENT ESTIMATES OF EXPENDITURE FOR THE FINANCIAL YEAR 1ST APRIL, 1986 TO 31ST MARCH, 1987 (Cols. 867 - 870)”
“Mr Speaker, in answer to the Member's question, I asked Singapore Pools whether they had, in fact, applied to housing estates and indeed they have. In the case of the Anson Constituency, they applied for a location at the NTUC FairPrice, Block 109, Bukit Purmei, within the Anson Constituency, but it was turned down by the HDB. So I think there are adequate safeguards. FAMILY SERVICES DIVISION (Education of children under charge) 9. Mr J.B. Jeyaretnam asked the Acting Minister for Community Development whether the Family Services Division in his Ministry arranges for education in schools of children in its care. The Acting Minister for Community Development (Mr Wong Kan Seng): Mr Speaker, Sir, children under the care of the Ministry can be classified into the following categories: (a) children who need care and protection, such as victims of neglect and abuse. They are given shelter either in the Ministry's residential homes or are fostered out to the care of private individuals under the Ministry's fostering scheme. (b) Juvenile delinquents. It is the Ministry's practice to arrange for children in its care to attend schools and vocational institutes where appropriate. Those who are overaged or who have no interest in academic studies attend in-house vocational training courses, such as welding, carpentry, gardening and plumbing for the boys, dressmaking and needlework for girls, and assembly of electrical components. All the juvenile delinquents are premature school leavers. They attend in-house vocational training programmes in the day-time and BEST classes in the evening.”
“Mr Speaker, in the current computerization programme, Singapore Pools (Pte) Ltd will be replacing, in stages, its Toto booths with sales agency outlets in shops and shopping complexes. The Company has no immediate plans to set up new betting centres, as such, in housing estates. The sales agency outlets will, wherever possible, be located in the neighbourhood of existing Toto booths. The existing outlets have been in operation for some years and there have been no objections from the residents in their vicinities. The Company therefore feels that there is no need to ascertain the views and wishes of residents in housing estates before relocating the sales outlets from the Toto booths to the shops.”