S. Chandra Das
Singapore
“There is certainly a limit as to what volunteers can do. These organisations can do with additional funding from the Government. With additional funding, I believe the self-help groups can do much more. Sir, I would like to ask the Minister about the various support and assistance given to the self-help groups in Singapore.”
“Sir, ASEAN has come a long way since its founding. No one can deny that ASEAN as a regional grouping has been a great success. Not only is ASEAN strong in terms of regional grouping, it is also expanding. Vietnam has joined ASEAN in 1995. Cambodia, Laos, Myanmar are expected to join ASEAN before the end of the century.”
“The public will be able to know the actual expenditure incurred. The operators on their part must charge realistic fares, and any increase should be reasonable and commensurate with the level of service provided. In this way, the public will be satisfied and will not feel short-changed.”
“Sir, I would like to ask the Parliamentary Secretary what other measures are being considered by his Ministry. Assoc. Prof. Ho Peng Kee: Sir, other possible measures would include confiscating the handphone, increasing the number of demerit points or, if necessary, making phone driving a specific offence.”
“Sir, I beg to move, That the sum to be allocated for Head V of the Main Estimates be reduced by $10 in respect of Code VD 1500. Sir, there are many reasons for the success of Singapore as it stands today. The contribution of the Singapore civil service is an area which should not be underestimated.”
“Sir, I hope the media does not dub RAdm Teo as also "Mr No" from tomorrow. On that note, I withdraw my amendment. Amendment, by leave, withdrawn. The sum of $518,536,590 for Head N ordered to stand part of the Main Estimates. The sum of $769,080,900 for Head N ordered to stand part of the Development Estimates. Head L -”
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“Sir, if the Member for Ayer Rajah is still dissatisfied, I suggest he continue the debate outside the House. Sir, with your permission, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The following amendment stood on the Order Paper Supplement -”
“Sir, of late, we have heard much about phasing out of work permit holders, especially from the non-traditional sources. Whilst I am in agreement with this policy, I am a little concerned about the swiftness of change, I have no quarrels with the Member for Leng Kee on this subject. I am only questioning basically the number of times this policy has been changed. I would like to ask the Hon. Minister for Labour how this quick about-turn will affect our local industries. How this will affect output and productivity? Should we not give them some special consideration so that we give them some time to adjust? Maybe as an after-thought we should have in the initial stages only encouraged workers from the traditional sources in the first place.”
“Sir, may I speak on this subject now instead of moving my amendment No. (10)* since the subject of non-traditional source workers has already been touched?”
“Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The following amendments stood on the Order Paper Supplement -”
“I would urge the Minister to give this suggestion some thought.”
“Sir, I beg to move, That the sum to be allocated for Head I be reduced by $10 in respect of Subhead IE-01 of the Main Estimates. Sir, I would like to touch on the subject of taxi service. Taxis offer an effective complementary service and in some ways they offer an alternative form of public transport in Singapore. This form of transportation does offer in some way also competition to the bus services offered by SBS and the other privately-run schemes. In fact, the quality of our bus services has really improved largely due to some form of orderly guided competition. Similarly, our taxi services sector which initially used to comprise badly maintained absentee owners has benefitted from the competition generated by the entry of the NTUC Comfort Taxis. However, the efficiency of our taxi services has given rise to some concern. To date, we have a total of 10,807 taxis, of which 63% are operated by the NTUC under its owner-driver scheme. The balance 35% are taken up by the yellow-top taxis and the Singapore Airport Bus Services. The utilization rate of these taxis, however, appears to be quite low with 44% of these taxis operating on one shift and 56% on two shifts. The Ministry of Communications might want to look into new ways in which we could improve our taxi services sector. The solution, I must caution, is not for any more administrative controls. Such measures as pressure on individual taxi drivers to drive a minimum number of hours or trips per day, are short-term and unlikely to be successful. What is needed, I feel, is to introduce more orderly competition in the taxi services sector. One possibility is to allow a limited number of private companies with the relevant technical and management expertise to operate taxis on a corporate basis.”
“5 million provided for in FY 82-83. Maybe, Sir, the Singapore Government Investment Corporation could be persuaded by the Hon. Minister to purchase some properties in core capital countries and, hopefully, lease them back to the Ministry of Foreign Affairs.”
“Sir, I beg to move, *That the sum to be allocated for Head 0 be reduced by $10 in respect of Subhead OA-01 of the Main Estimates. Sir, in the recently concluded Non-Aligned Meeting held in New Delhi, the Singapore delegation, together with the delegations of Malaysia and Indonesia, took a very high profile. Can the Minister for Foreign Affairs inform this House why such a high profile was necessary and what objectives were achieved? Secondly, Sir, I would like to turn to the subject of staff training in the Foreign Service. Sir, the Foreign Service is an important one for us in order to maintain and foster our external relations. On two occasions recently, the Prime Minister has commented very favourably on the improvements made in the Service since it was set up. Sir, it is important that the Service attracts some of the best brains to it. As it is a closed service, like the Singapore Armed Forces or the Police Service, it should have its own scheme of service with special scholarships, and so on. I would like to inquire from the Minister whether the Ministry of Foreign Affairs has any special scheme or plans to upgrade its level of manpower. Next, Sir, I notice a provision to purchase properties for overseas missions of $14 million for FY 83-84, which is $2 million more than the provision for the previous financial year. Could the Hon. Minister give details of what properties were purchased in FY 82-83 in the various countries, and also what are the Ministry's plans for its 1983-84 purchases? Sir, as I have stated, on two other occasions in this House, I still feel that we should be more bullish and buy more properties for our overseas missions and so reduce the rentals that we are paying. Rental provision for the 1983-84 budget is $4.4 million as opposed to $3.”
“With your permission, Sir, I would like to speak on both Amendment (1)* and Amendment (3)*.”
“Sir, I am not moving Amendments (9) and (10).”
“(9) That the sum to be allocated for Head Q be reduced by $10 in respect of Subhead QH-01 of the Main Estimates. (10) That the sum to be allocated for Head Q be reduced by $10 in respect of Subhead QH-02 of the Main Estimates.”
“Sir, I thank the Hon. Minister for his detailed and lengthy answer, and I beg leave to withdraw. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head Q be reduced by $10 in respect of Subhead QE-01 of the Main Estimates.* Sir, everyone is aware of the acute shortage of car parks in HDB estates and it is no different in my constituency. Because of the shortage of car parks and the general relaxation of traffic laws, indiscriminate parking has become the order of the day. This is causing danger not only to vehicle movement but also increases the risk of collision and accidents. This poses a great danger to residents in housing estates, especially children and senior citizens. Sir, going through the streets and sideroads, especially at night, in Housing Board estates is becoming relatively unsafe. I notice in this morning's newspapers a police statement about legalizing kerbside parking. This will certainly lessen the problem and enhance safety. Hopefully, the HDB will not collect additional fees on this. Sir, I am wondering if the Traffic Police has any other plans or programmes to make roads and streets much safer for residents in HDB estates.”
“Sir, in view of the Minister's assurance to review the base, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $59,098,440 for Head S ordered to stand part of the Main Estimates. The sum of $17,786,000 for Head S ordered to stand part of the Development Estimates. Head Q -”
“Yes, Sir. I beg to move, That the sum to be allocated for Head S be reduced by $10 in respect of Subhead SB-03 of the Main Estimates. Sir, I would just like to touch on the subject of compensation for land acquired by Government. Sir, in moving the Second Reading of the Land Acquisition (Amendment) Bill in this House on 18th December 1973, the Minister for Law and National Development stated, and I quote: [Hansard Vol. 32 col. 1393]: 'It freezes prices payable on acquisition of land under the Act to the base of market value as at 30th November, 1973, . . .' Sir, it is now ten years since the base was fixed and a whole host of changes have taken place. I will be interested to know from the Hon. Minister whether there are any plans to review this base.”
“Sir, the People's Association was set up in 1960 and we all know that it has been a very effective vehicle as it provides a network of community centres to serve the basic recreational and social needs of Singaporeans. In the sixties and seventies, this island-wide network also served as a social integrator where Singaporeans of all races and of all economic groups could participate in all the activities organized by the community centres. Sir, since 1970 the scope and quality of activities organized by the People's Association have also been widened and improved to meet the new and rising expectations of a more affluent and much younger generation of Singaporeans. Questions, however, have now been raised on the adequacy and relevance of some of these activities. Perhaps it may be necessary now for the People's Association to restate its objectives and devise new strategies and activities to meet these new objectives in the eighties and beyond. Sir, I would also like to suggest that the People's Association look into the question of limiting the age to 30 years for members of the youth group. I am suggesting this because the population profile has changed recently and there may be need to consider possibly raising this to 40 years.”
“The imposition of tax on liquor and tobacco does not affect most of the people and the increase itself is too negligible to cause any concern to those who indulge in smoking and drinking. Energy Conservation Mr Speaker, Sir, finally I wish to touch briefly on energy conservation. I wish to support the Minister's call for energy conservation and his condemnation of energy wastage. His suggestion that energy conservation campaigns be continued from time to time is a timely reminder to the citizens not to be wasteful and to take things for granted. Sir, I beg to support the motion. 3.58 p.m.”
“I would like to further urge other employers to contribute positively by motivating the unskilled workers to take advantage of the various BEST classes and courses conducted by the employers at their work-places as well as those conducted by NTUC and VITB. I can assure the House, Sir, that the trade unions will continue to conduct such and similar courses for the benefit and well-being of the workers. But, as a long-term measure, I would like to suggest that a proper study be made of this shortfall in the literacy level of those half a million workers so that the Government, statutory boards and the unions could work in unison to ensure that this lot of the workforce improve themselves and prepare themselves for the future. Housing Mr Speaker, Sir, it is heartening to note that positive steps are being taken to build more flats to meet increasing demands. Skilled workers from non-traditional sources are now available to expedite the building programme. However, efforts must be made to encourage local workers to become interested in construction work and to be more skilful in the long run. Efforts should also be made to inform and educate both potential construction workers and parents on the advantages of pursuing a career in the construction industry. Assurances must be made that careers in the construction industry are relatively safe, challenging and rewarding. Tax incentives Sir, the tax incentive announced by the Minister for retired persons and housewives is most welcome, and this would definitely spur them to continue contributing their wealth of experience and expertise to the nation.”
“But these must be programmed and handled by human power - human power that is skilled and knowledgeable from the lowest to the highest levels. Talking about human power, Mr Speaker, Sir, it has been mentioned that more than half a million of our workers have less than primary six education. Despite this, they are vital to our manpower needs. We must not neglect this sector of our workforce. Upgrading their standards of literacy and numeracy should be the prime concern of all agencies concerned with manpower development. Basic Education for Skills Training The Skills Development Fund appears to have benefitted the upper echelon staff such as managers, supervisors as well as skilled workers. This is encouraging and in line with national objectives to upgrade performance and consequently increase productivity. On the contrary, those in the lower rung do not seem to have received the same impetus with regard to their enhancement in skills achievement and literacy level. Nevertheless, steps are now being taken to rectify this sordid situation. The Basic Education for Skills Training (BEST) Programme conducted by the Vocational and Industrial Training Board involves about 5,000 workers from some 60 firms. Similar courses are being conducted to upgrade the level of literacy of some 1,000 National Servicemen. I would also like to mention here, Sir, that the serious nature of the situation has also been taken note of by the NTUC,which has initiated BEST classes for three intakes in July 1982, October 1982 and January 1983 involving more than 7,000 workers.”
“True enough, the state of recession and consequent economic downswing in Western Europe as well as in the United States have affected the whole world. Recession and its Effects The effects of this recession which have been far worse than that of 1975 have rocked even nations that have been on firm and sound economic footing. I dare say, Sir, that Singapore, through the keen foresight and efficacious planning of its Government, has managed or, I should say, is managing to weather the storm though not without setbacks. While our productivity level has somewhat declined, the essential, potent features of our industrialization programme-full employment and the maintenance of international confidence in our economic politics and management - have been kept up. Mr Speaker, Sir, it is indeed heartening to note that there are already hopeful signs that the United States is pulling itself out of the doldrums and this, I am sure, would have advantageous effects upon developing countries. In the meantime, we have to take advantage of this lull period in the world economy and prepare ourselves for the future. We have to equip ourselves to face the changing trends in industrial situations. In particular, the surge towards automation, robotics and computerization is in vogue. Workers in the traditional industrial environment must avail themselves of the opportunities of the future and take definite steps to change attitudes, adjust, educate and retrain. Sophisticated industrial environment Working in the modern and sophisticated industrial environment - requires certain minimum standards of education and skills. Robots and computers, no doubt, will do given jobs faster, accurately and efficiently.”
“Secondly, the Budget sets out our manpower policies to ensure that we have the skilled management and labour to exploit these technologies. We must relentlessly push ahead with our manpower training, especially in CAD/CAM, robotics and CNC engineering. Here, regular dialogue and consultation with both management and labour are critical. The labour movement must be 100% convinced of their role in this social, economic and technological revolution. Manpower training, retraining, factory shutdowns and opening of new ones - all these can be very painful. In the West, this revolution has virtually been aborted by the trade unions. Thirdly, we must have access to foreign sources of capital or a high savings rate or both. Fourthly, our external debt must be kept within manageable proportions. At the end of 1982, our external debt is a mere $874 million or 4% of total Government debt. Fifthly, we must restructure and upgrade our manufacturing sector or be prepared to abandon sunset industries. And finally, political stability with a Government committed to development. Mr Speaker, Sir, the Minister's Budget is our first spring board not just out of the recession but also our launching pad into the mid-1980s and beyond. I fully support the Budget Statement. 3.49 p.m. Encik Abbas Abu Amin (Pasir Panjang)( In Malay): Mr Speaker, Sir, I rise to congratulate the Hon. Minister for Trade and Industry for presenting a realistic and pragmatic budget. It is, in fact, a sequel to his Budget Statement in 1982. In utter earnestness, he forewarned this House that 1982 was going to be a grim year with disturbing trends in unemployment and protectionism in industrialized countries.”
“It might be worthwhile for the Government to seriously consider special and separate housing schemes for public servants in designated housing estates, similar to those in Neptune Court, rather than adopting this present practice of queue-jumping, Energy and Water On energy, I am glad to note that the Government will continue to pursue its policy of efficient energy usage. The current weakening of oil prices and glut conditions should not lead us to stray away from this policy. It is also heartening to note that the Government has entered into negotiations with the Governments of Malaysia and Indonesia for possible purchase of natural gas. This certainly will enhance ASEAN bilateral cooperation. The Minister also stated that we will soon be able to formulate a package of incentives and disincentives to promote water conservation in commercial and industrial enterprises". This is most welcome. Since water consumption has dropped 12% because of the usage of thimbles, it is now time to legislate the use of thimbles and spring-lock or spring controlled taps in all buildings, especially those with public areas. This will definitely lead to less wastage. We have all sorts of legal requirements, from the size of the doors in buildings, surely the one for saving water should have top priority. The PUB and the Ministry of National Development should look into this aspect as a matter of urgency. Conclusion Sir, overall, the Budget sets out the policy parameters to ensure that we will be ready to take advantage of the recovery when it comes. Firstly, our open-door policies will continue to give us access to new technologies such as micro-electronics, biotechnology and genetic engineering.”
“"Too little" because 5% is neither here nor there, and "too early" because, in a recessionary period, our priority would be to get existing employees to hold on to their jobs, not bringing in new entrants to the market. Science Park Sir, I now turn to the subject of Science Park referred to by the Minister in his Budget Statement. Mr Speaker, Sir, an intense concentration of brains and ambition in California's Silicon Valley has given birth to household names like the Apple and Atari, just to name two. Our Science Park, I believe, is inspired by Silicon Valley and other Science Parks in the West and Japan. The recession, however, appears to have deterred many companies from setting up their operations at the Park. Maybe the Minister might want to review and improve the incentive package such as capital grants, rental rates to induce more firms to move into the Park. Housing Mr Speaker, Sir, Public Housing is today a major issue with many Singaporeans still waiting for their flats or waiting to change to bigger flats. The HDB's accelerated building programme should defuse some of the frustrations among Singaporeans who have waited for what they felt to be unreasonably long periods of time. However, there is compounded frustration because of the constant change of ground rules. The ground feeling appears to centre on uncertainty. For example, HUDC applicants are uncertain of their queue which could be prolonged without notice due to privileges extended to public servants, university lecturers and other expatriates. It should be noted, however, that Singaporeans generally do not begrudge housing facilities for these people even at subsidized rates. Their only complaint is that any such privileges should not disrupt their allocation.”
“These are the real victims of estate duty, especially when they die unplanned. In the meantime, the really wealthy con- tinue to invest, legitimately, millions of dollars in tax shelters abroad to avoid paying estate duty. Sir, the loser is not the tax collector but the whole economy of Singapore. Mr Speaker, Sir, such legislation can be characterized as "a legislative success but policy failure". Our tax regime should not become a tax on initiative and hard work. More important, in a nation of young taxpayers, the tax system must be so structured as to encourage risk-taking and accumulation of wealth and savings and, having accumulated the wealth, to invest and to retain it in Singapore. Maybe it is now time for the Government to review its estate duty laws. Enhanced Child Relief for Specially Qualified Married Women Our over-full employment situation, an unusual phenomenon in a world gripped by recession, continues to constitute a major constraint to our economic growth and development. Filling the manpower gap from non-traditional sources poses several social strains. Some economists have suggested that we should tap the economically inactive persons within the employable age group, like the 15 to 60 years group. If one were to exclude the retired persons, we would end up with a potential pool of about half a million, of whom 78% are women. Thus, our planners have zeroed in on this potential pool of women power. The Minister, in his Budget Speech, has now proposed an enhanced child relief to include 5% of the woman's annual earned income. This appears to be a policy instrument which could be characterized as "too little and too early".”
“For example, the SDF contribution is a heavy cost burden, especially for small enterprises who could hardly benefit from the scheme. Recently the Hon. Minister for Finance informed this House that as at 31st December 1982, the SDF has disbursed only $27.5 million for skills training out of an accumulated total of $313.8 million. In view of the recession, it might be timely for the Government to review the relevance and efficiency of the scheme. Incentives to Work, Save and Invest Our invisible earnings, especially from financial services, will continue to generate surpluses in our overall Balance of Payments. As a financial centre we want to encourage free flow and especially inflow of capital into Singapore. The latest tax concession to promote loan syndication in Singapore would improve our competitiveness vis-a-vis our immediate competitor, Hong Kong. As far as possible, our tax regime should be flexible enough to induce repatriation of offshore income without giving rise to rampant tax avoidance or evasion. In this respect, the Minister might want to enlighten the House on any moves to review our laws which deter Singaporeans from bringing back their legitimate incomes from abroad. For example, it is generally reckoned that our laws on estate duty have also given rise to significant capital outflows. Estate duty and similar taxes on inherited wealth used to serve as social instruments to redistribute wealth. While this principle is valid, the reality is that such taxes have now degenerated into a taxation on honesty and good citizenship. Mr Speaker, Sir, the not so wealthy or the newly emerging small property owning citizens pay their taxes regularly and have no need to resort to professional advice on tax planning or whatever euphemisms one might choose to use.”
“They will live with computers and develop a familiarity and appreciation of the strengths and failings of computers. Thousands will learn the basic computer operations in their leisure hours. It is a fact that people get fascinated with computers and we should be exploiting this curiosity and interest. Such a move would complement our manpower training programme to meet the shortage of computer personnel such as programmers and systems analysts. Moreover, the social and economic spin off arising from the widespread use of microcomputers in as many households as possible can be tremendous. Higher Productivity Tax Write-Off for Expenditure on Computers and Office Automation Mr Speaker, Sir, the Minister's proposal to allow non-industrial companies to depreciate their expenditure on computers and office automation will be a timely booster to the lack-lustre productivity growth in the service industry. In fact, productivity in the commercial sector which includes retail trade, restaurants and hotels, fell by 0.5% and 2% in 1981 and 1982 respectively. This disturbing trend must be arrested through greater automation in the service sector. At the same time, we must inculcate better work attitudes among our workers. What is needed is to make Quality Control Circles or Work Improvement Teams more relevant to the service industry. Removing Distortions in the Free Market Mechanism The private sector welcomes the Government's move to allow a company's expenditure on computers and office automation to be depreciated in one year. This move would go a long way to improve the productivity in the non-industrial sector. However, productivity in this sector, and for that matter in the market economy as a whole, could be hampered by certain Government legislation and levies.”
“As the Minister has stated in the Budget Statement, about 2,000 firms in Singapore use computers in their operations with another 1,800 in the pipeline. Computer Clubs too have proliferated in schools, community centres and the NTUC's workers centres. In this respect, the National Computer Board, the NTUC and the Ministry of Education must be congratulated for their role in promoting computer education in Singapore. The upshot of their success is the purchase of expensive computer hardware especially microcomputers in the schools, community centres as well as the NTUC's several computer centres. At this stage, it might be opportune for the Ministry of Education or the NCB to monitor and review on the state of our public computer education programme. In particular, the Ministry might want to look at the fundamental issues again, such as whether we are moving in the right direction and also at the right speed, what else could be done to speed up computer literacy especially among the relatively low-skilled white-collar workers. These are the very people whose productivity could be raised through office automation. The Minister might also wish to assure these people that computerization and office automation would mean better paying jobs and not loss of jobs. Mr Speaker, Sir, computer familiarity and literacy is basically a personal skill. We cannot realize the full economic and productivity potential of the mighty micro until such time when every working Singaporean can work on his own personal computer. In this respect, I would urge the Minister to consider some form of tax relief for expenditure on personal computers. This will bring the computer right into the homes of thousands.”
“I am also convinced that such a move would ensure that some form of genuine technological transfer to Singaporeans or Singapore companies would take place. Manpower Training, Government Commitment to Sunrise Industries and Restructuring Exercise The Minister in his Budget Speech also stressed that Singapore's industrial development in the years ahead would depend on the pace of automation and research and development. In fact, over 60 companies had invested in automatic manipulators or programmable robot systems for spray painting, welding, material handling and assembly work. The Minister also stated that the Skills Development Fund had approved over $10 million worth of interest grants for 245 applications under its Interest Grant for Mechanization Scheme. These grants in addition would generate investment of about $78 million in new automated equipment. It would be useful if the Minister could enlighten this House on the number of local companies or joint venture companies with local participation which had applied to take advantage of the scheme to automate their operations. To support our drive towards industrial automation, the EDB had set up a CAD/CAM training unit, a robotics training centre, as well as the upgrading of the industrial training centres to include CNC machines. Perhaps the Minister might also want to inform us of the anticipated number of people who will have to be trained if our industrial automation programme is to be successful. Manpower Training The Minister also dealt at length on our computerization programme both at the industrial level and in the non-industrial enterprises, i.e. commercial offices. To date, the Government's efforts to encourage computer literacy and computer awareness have been fairly successful.”
“A tried and proven method is to comb the high-tech centres like Silicon Valley in California and other Science Parks of the West and Japan to identify such joint venture possibilities. Such joint ventures will give us access to these frontier technologies. However, investments in these frontier or sunrise industries are fraught with uncertainties and very high failure rates. Venture Capital Mr Speaker, Sir, one possible vehicle is another American innovation called Venture Capital. In the past, Venture Capital used to be a popular tax shelter whereby the wealthy can siphon off their taxable income. Today, Venture Capital plays a dynamic and catalytic role in the development of new industries such as Genetech, a company which is pioneering the commercial applications of genetic engineering. Venture Capital investments serve several short-term and long-term objectives. Firstly, the short-term effect would be to provide a fresh injection of activity and vitality into the economy. The second and long-term effect comes about only when such investments emerge with commercial breakthroughs. The third objective is to revitalize the salvageable sunset industries, such as textiles, with these new technologies. Computer Aided-Design (CAD), for example, could totally transform the competitive position of such industries. Perhaps the Ministry of Trade and Industry or the Economic Development Board could encourage successful Singapore companies in banking, manufacturing or services to set aside a part of their profits for such venture capital investment. On a selective basis we could allow writing off unsuccessful venture capital against profits.”
“The short-term policies to stimulate the economy include Government expenditure on social and economic infrastructure such as roads, housing, Changi Airport extension, the MRT and so on. In the longer-term, we will have to devise policies to ensure efficient allocation of resources in the private sector via the free market mechanism. Access to New Technologies and Foreign Capital Mr Speaker, Sir, the pace of our economic development, especially industrial, commercial and financial, hinges on the speed of our automation, robotization and computerization. It is heartening to note that we would gain access to new technologies from foreign investments. However, these new technologies have also reversed the international investment pattern. In short, with industrial automation, labour cost which used to be the rationale for multi-national corporations to transfer their operations to relatively low-cost centres like Singapore is no longer valid. This notwithstanding, new foreign investments in manufacturing stood at $1.7 billion. It is heartening to note that the sunrise industries account for 27% of the new total investment commitments in 1982. About 25% or $366 million were accounted for investment commitments in the manufacture of computer hardware and related equipment, electronic components and machinery. Another $132 million or 7.6% is taken up by investments in computer software and engineering services. It is encouraging to note that local industries accounted for about 30% or $540 million of the total investment commitments. However, it would be useful if the Minister could inform this House whether such investments by local industrialists were in the new high technological industries. We cannot possibly hope to develop these technologies ourselves.”
“Falling petrodollars and commodity earnings mean non-payment of the US$600 billion in Third World debt to the bankers and creditors in the West. Any mismanagement of this debt could trigger off a global economic collapse with profound political and social consequences. Sir, domestically, Singaporeans continue to enjoy a higher standard of living although real income rose by 5.1% compared to 8.6% in 1981. However, 1983 is likely to be a very rough year. But we have gone through difficult times in the past, in the late 1960s when the British pulled out of Singapore and also in 1974 in the last economic recession. I am confident that when it comes to the crunch all Singaporeans will play their part and will tighten their belts and work harder to ensure our economic survival and prosperity. In this regard we, the political leadership - Members of Parliament, Parliamentary Secretaries, and Ministers - must be prepared to set the lead, even taking a pay cut if necessary. We must inspire Singaporeans by our example and show to the world that no matter what the obstacles are, we have the determination and the resolve to overcome them. The Minister has spelt out in no uncertain terms the grave state of the world economy and the dangers that are ahead for Singapore. Mr Speaker, Sir, I fully subscribe to the Minister's analysis of the problem and the framework of solutions he has outlined in the Budget Statement. Where do we go from here? It would be futile to try to forecast the timing of a sustained recovery with any certainty. In the meantime, we must work out short-term economic policies to survive the recession as well as prepare certain long-term policies.”
“Other euphemisms include orderly marketing arrangements and voluntary export restraints. The latest form of protectionism but more harmful to the global trading community is competitive currency depreciation or devaluation. Such short-sighted policy basically "export" one's problems to one's trading partners. These beggar-thy-neighbour policies could trigger off a global economic collapse reminiscent of the time in the early 30's. Sir, this trend will continue unless governments can muster the political will to solve the structural unemployment through a long-term restructuring of their sunset industries such as steel, textiles and auto industries. Mr Speaker, Sir, apart from protectionism, our exports are also facing stiff competition from two other sources. On the one hand, our traditional export items such as cassette radios and TV sets have now to compete with low-cost and labour-abundant centres. On the other hand, our so-called sophisticated exports will now have to meet with intense competition from the newly industrializing countries such as South Korea, Hong Kong and Taiwan. The answer, Mr Speaker, Sir, is higher productivity coupled with better work attitudes among Singaporeans. To succeed, we have to keep trim and stay ahead. In the meantime, unemployment continues to increase in the OECD countries and the United States. In the US and the EEC, the number of jobless people hit a record high of 12 million and 12.3 million respectively. But the recovery does not seem to be within sight. World trade has now shrunk by 1.5% for the first time since 1975. The oil glut accompanied by weakening commodity prices are threatening to destabilize the international financial system.”
“Mr Speaker, Sir, I wish to thank you for giving me this privilege to start off the debate on the Budget Statement. The Hon. Minister for Trade and Industry has presented to us yet another painless budget for the financial year 83-84, and I sincerely hope that painful measures need not and will not be introduced in between the Budget. The Minister's Budget Statement is political testimony to the success of the hard-headed economic policies of the PAP Government. The not-so-popular measures introduced some years ago have now put us in a strong position to weather the economic storms ahead. Had we in the earlier years opted for the economics of handouts, so zealously peddled by certain opposition parties, we would be in very serious trouble now. Review of the World Today Sir, the world economy appears to be trapped in an unsolvable economic mess. In 1982, the OECD countries ended up with an average growth rate of -0.5%. Among the OECD countries, only Japan, France and the United Kingdom registered some positive growth rates of 2.5%, 1.5% and 0.5% respectively. The world's largest economic locomotive, the USA, nose-dived and ended up with -1.75%. Negative or slow growth were soon translated into protectionist trade barriers hitting the export economies of many countries including Singapore. In spite of the above, we in Singapore put up a creditable performance of 6.3%. Sir, protectionism was driven home to us in a most dramatic manner when our domestic exports fell for the first time since 1975. Other new forms of protectionism will continue to rear its ugly head. The French, as we all know, have introduced linguistic restrictions. The Americans have "graduated" certain export items from the Generalised System of Preferences.”
“Mr Speaker, Sir, in his Statement, the Minister stated that domestic consumers who use more than 2,000 kWh per month should pay a higher rate. I am of the opinion that it is unlikely that the basic rate of 20 cents will deter higher consumption. Can the Minister inform the House whether other steps will be taken to discourage wasteful consumption by these consumers?”
“Sir, I am grateful to the Minister for his very positive response to my request. On this note, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“It is appropriate that the STPB should continue to develop tourist infrastructure and other attractions to induce tourists not only to visit but to stay more days in Singapore. Such developments and promotions cost money. So the STPB imposes a 3% cess on all bills at designated restaurants and other public entertainment spots. In principle, the 3% cess looks very fine. However, a quick check will reveal that the majority of the patrons at these so-called tourist-orientated eating places and coffee houses are Singaporeans. I strongly feel that the cess collected should also be utilized to promote national tourism. Here, I am referring to attractions for our citizens as well. For example, the National Museum could be transformed into a more appealing place suitable for Singaporean visitors as well as tourists. Mr Speaker, Sir, I would like to raise two questions for the Minister for Trade and Industry. Firstly, would the Minister explain the criteria whereby only certain restaurants and public places are liable for the 3% cess? Secondly, what steps are being taken to invest part of the cess collected to cater for the need of our citizens? Encik Othman bin Haron Eusofe (Geylang Serai): Sir, may I have your permission to speak now instead of on Amendment (3)?*”
“Sir, I beg to move, That the sum to be allocated for Head W be reduced by $10 in respect of Subheads WA-Ol/WC-01 of the Main Estimates. Sir, we attribute our economic growth and social progress to our belief and practice in the free enterprise philosophy. This philosophy tempered by the Government's perception of what is good for the people has served us well. Thus, the Government has on several occasions stepped in to dampen the fires of inflation. Prices perform a very crucial role in a free market economy. Insofar as perfect competition does not exist in the real economy, it is justifiable for the Government to intervene and correct undesirable distortions. Indications are that the Government would and, in fact, should continue with this practice. However, over the years, a new phenomenon has emerged. Here, I am referring to the phenomenon of trade associations such as those covering the pork merchants and others. The objectives and usefulness of these associations are commendable. Among other things, they serve as a focal point for consultation within the industry and as well as with the Government. However, this phenomenon has also given rise to an undesirable situation. These associations seem to collude and dictate price hikes. In fact, I am afraid these associations have degenerated into cartels, or at least in the danger of degenerating into cartels. Would the Minister like to tell us what steps have been taken or will be taken to ensure that these associations do not degenerate into price-fixing and price-setting cartels? Sir, next I would like to move on to my second amendment and this refers basically to the Singapore Tourist Promotion Board. I would like to raise the question of the 3% cess levied by the STPB.”
“Sir, may I have your permission to speak on the two Amendments standing in my name?”
“(1) That the sum to be allocated for Head W be reduced by $10 in respect of Subhead WA-01 of the Main Estimates. (2) That the sum to be allocated for Head W be reduced by $10 in respect of Subhead WC-01 of the Main Estimates.”
“Similar lines, Sir. I gather there are at the moment 15 heads of missions serving Singapore overseas and covering about 19 missions. Out of these 15 heads of missions, only one is from the career diplomatic service while 14 others come from the public and private sectors. Sir, the Foreign Ministry was established in 1966 and I am told the career foreign service in 1972, I am a little concerned that right now only one person from the career service is holding the appointment of head of mission. Whilst I admit that it was necessary to fill the post earlier with outsiders I think it is time now for the Ministry to think in terms of a permanent career foreign service. I am certain that if the Ministry of Foreign Affairs wants to attract top talent in the foreign service, then the opportunities available must be spelt out very clearly. I will be interested to know what plans the Minister has to appoint career diplomats as heads of missions. Sir, during the debate last year I suggested to the Minister for Foreign Affairs that he should be more bullish in acquiring properties both residential and for chancery in overseas countries, particularly in key capitals. However, I am pleased to note that this year the Ministry is requesting $12 million for the purchase of properties in overseas missions. I would still urge the Minister to take an even more liberal approach and would be pleased if he could inform this House what new properties were purchased during last year and what new properties will be purchased in the Financial Year 1982. Further, whether the Minister is in a position to inform the House what additional missions will be opened during the course of this financial year.”
“Sir, can I have permission to speak on this amendment instead of my Amendment No. (2)*.”
“Thank you, Sir. The Ministry of Communications has proposed that a second bus company be set up to compete against the SBS. This move to stimulate a form of guided free-play of market forces will hopefully result in a more efficient public transport system. Generally, public reaction - including the residents in my constituency - to this proposal has been very enthusiastic. However, there is a general concern that this guided competition might not produce the desired results. In this regard, may I ask the Minister whether the new company would be accorded the same treatment as that granted to SBS? Secondly, would commuters be allowed to subscribe to the shares of the new company with their CPF savings? And if so, would shareholders also be assured of a guaranteed 7.5% dividend per annum similar to the assurance given to SBS shareholders. Thirdly, would the Minister assure the House that these two companies would be free to compete in the market?”
“Sir, may I have your permission to speak now on this amendment, instead of moving amendment no. (11)*.”
“Sir, I thank the Minister for his answer and beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Mr Speaker, Sir, I beg to move, That the sum to be allocated for Head I be reduced by $10 in respect of Subhead IA-01 of the Main Estimates*. Sir, the Minister for Communications recently announced some reductions in telephone and telex rates charged by the Telecommunication Authority of Singa pore. The Minister stated that the reductions were in line with the Telecoms philosophy of sharing cost-savings with its consumers whenever they are available either through increased productivity, technological progress or economies of scale. These reductions are highly commendable. In fact, I am very happy to note that the TAS is the only statutory body which has improved its services and reduced its charges at the same time. Many other statutory boards could do well to follow this example. More important, this move is very timely. It will enhance the Republic's competitiveness as a telecommunications centre. Telecommunications is the key to our Republic's development into an international financial, trading, shipping, civil aviation as well as a warehousing centre. In short, this move will lower the operational costs of companies, especially offshore service companies and export-oriented firms in Singapore. However, Mr Speaker, Sir, I am a little concerned that the reductions appear to favour only the corporate consumers rather than the average HDB dweller. The latter do not telex or make frequent overseas telephone calls. I am confident that TAS could exercise the same ingenuity as it has done for the corporate consumers, and maybe come up with some benefits for the average HDB consumer. Would the Minister wish to enlighten this House on the reasons for not passing on such cost reductions to the local consumers?”
“Mr Deputy Speaker, Sir, I am grateful to the Minister for such a detailed explanation, and I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head Q be reduced by $10 in respect of Subhead 0D-01 of the Main Estimates.* The Home Affairs Ministry is to be congratulated for its innovative efforts in crime prevention. Recently, we read in the newspapers that the Ministry has introduced a pilot scheme to get the police to go on bicycle patrols around private housing estates. This scheme appears to be attractive since it allows for greater police visibility in housing estates. This police visibility is of great importance in most housing estates as this will definitely prevent many crimes being committed, especially now that we have withdrawn the Vigilante Corps from police patrols. Sir, I would like the Minister to give this House a progress report on this scheme. If the findings of this scheme are positive, would the Minister consider extending this scheme to other housing estates like Chong Boon?”
“Mr Speaker, Sir, this is a very sober budget, a budget with a thin spread of goodies right cross the board. Nobody is unhappy because no one has been asked to pay more. Neither is there cause for rejoice since, as usual, expectations will never be met. On balance, however, I must congratulate the Hon. Minister for Trade and Industry for giving the citizens of Singapore a breather, so to speak.”
“Sir, can the Minister of State of Education inform the House how many teachers have been trained in computer programming?”
“I am of the view that as a result of the labour shortage and rising construction costs, the Government should seriously reconsider this levy. Lastly, I would like to touch on the point of the URA land sales policy. This is another example of Government-induced cost increases. According to the authorities, one of the causes of the current malaise is the shortage of skilled construction workers and contractors. We learn that the HDB has to go abegging for building contractors to take on tenders. Paradoxically enough, the URA has chosen to release more property for development at very close intervals. The market has yet to absorb the result of the ninth sale when notice was given for the tenth suction. Such liberal land sale policies invariably put on an additional squeeze on the H DB. The upshot of such contradictory measures is the inflationary impact on our economy and society. The immediate social cost will be met by the 6,600 applicants on the HDB waiting list. It will be useful for the authorities to decide on their priorities. Mr Deputy Speaker, Sir, I submit that 'Poverty in the midst of plenty is a greater strain on one's conscience than poverty in the midst of nothing.' Similarly, to be flatless is much more painful and less acceptable in the midst of skyscrapers and condominiums. 4.52 p.m.”