S. Dhanabalan
Singapore
“Mr Speaker, Sir, on a point of clarification. I said in my intervention on Tuesday that the general election is the right forum to determine the electorate's support because it puts the issue in a total and correct context.”
“Mr Speaker, Sir, with hindsight, of course, we can be very wise. But since one of the three islands was excluded, it was a substantial reduction in the scope of works. The assessment then, which I agreed with, was that if you called for a re-tender, you would get a substantially reduced tender.”
“To the extent that we can, we should work with countries that have a common interest, to come together and form economic groupings targeted at trade liberalisation. We have started this process within ASEAN under the AFTA Scheme. Economic linkages in groupings like APEC are also growing in significance.”
“Mr Speaker, all these questions make a lot of sense when the events are finished, and you look back. But the officer looking at the case at that time had to deal with the facts as they were at that time.”
“ASEAN countries agreed to publish all the Inclusions and Exclusions lists, as well as the full list of actual tariff reductions. The ASEAN Secretariat had since followed up and released, as scheduled, on 1st November 1993, the publications showing these lists.”
“Kallang Theatre was closed for five months in 1992 for cyclical maintenance and upgrading costing $3 million. This included a major upgrading of the toilets, recarpeting the auditorium, rewiring and repainting.”
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“We are beginning to recognise that Singaporeans who have investments abroad should not be discouraged from bringing back their profits into Singapore. The move, however, does not go far enough. There is at present no hindrance to Singapore resident companies and individuals investing abroad. The various measures to liberalise exchange controls have really been adjustments of rules to reflect what is already possible rather than a real liberalisation. We still have scheduled and unscheduled territories in our exchange control regulations which are vestiges of the sterling area system. To scheduled territories like Hong Kong, a Singaporean can remit capital without limit. But Hong Kong itself has long ago abandoned the kind of controls associated with the sterling area concept so that funds that come into Hong Kong can quite freely be invested in any part of the world. Thus, a Singapore resident can, if he goes through certain legal steps, invest any amount in any part of the world through Hong Kong or even the United Kingdom. Having adopted a de facto system that is free of exchange controls on investment by Singaporeans abroad, our tax system has thus far been maintained to discourage them from bringing their foreign profits back to Singapore. While the move to reduce the maximum marginal rate to 40% is welcome and should at least offer no discouragement for Singapore investors in Malaysia to bring their profits back to Singapore, it still does not encourage Singaporeans to bring back profits from other places which have lower taxes than Singapore.”
“Our tax concessions have been effective in attracting foreign investment because of the enlightened approach of some of the countries from which we obtain our investment. Countries like Germany, Japan and the United Kingdom recognise that tax concessions given by us should not be nullified by their actions and have agreed in Double Tax Agreements that taxes foregone by us can be deemed to have been paid in Singapore when they calculate the tax liability of the investors when these investors take back their profits to their home country. Unfortunately, USA has never recognised that it should not collect taxes foregone by other countries. However, because it has a tax deferral system that only taxes incomes earned abroad when they are returned to USA as dividends, our tax concessions still have an advantage to US investors. If tax deferral is ended, it will nullify our tax concessions. While one can sympathise with the US government's attempt to remove the tax advantage it gives US investors abroad through its own tax policies, one cannot accept its attempts to collect taxes sacrificed by us who make such sacrifices in order to close the wide gap in economic development that we have with the developed countries. If tax deferral is ended, we must make every attempt to enter into some bilateral arrangement which will prevent taxes sacrificed by us ending up in US government coffers thus completely nullifying our tax concessions. One can only hope that the US government can be persuaded to adopt the more enlightened tax approach of countries like Germany and Japan. It is also heartening to note that the Minister intends to fix the maximum marginal tax on repatriated profits at 40%.”
“To quote one advantage, children and teachers will have more conducive times for extra curricular activities and special or extra classes can be arranged in the afternoons to help slow learners or for difficult subjects. Obviously, there are problems in such an upgrading of social services but these are not insoluble given our financial strength. As shown, every year our current revenue has been more than sufficient to meet all our requirements and we have had no need to borrow whether locally or abroad to meet our requirements. This is of course not to say that the government should not raise loans both locally and abroad. There are various good reasons why government should continue to borrow which I need not go into at this juncture. But the point I would like to make is that there is an urgent need to set up a mechanism in government to plan and set new priorities to guide government expenditures. We can afford to make substantial improvements in our social services and be more bold in our investment in economic services and at the same time keep sufficient in our reserves to take care of our requirements in years when our economic performance may be poor. Although our performance in 1977 was satisfactory, it is clear that greater efforts are needed to maintain this in the coming years. The Minister for Finance has presented a package of tax concessions to promote further growth of the manufacturing sector as well as the traditional trading sectors. Through judicious use of tax concessions, we have managed to promote the growth of our manufacturing sector. We should be able to do the same in other sectors.”
“One must also remember that the surpluses of other Government institutions, such as the Monetary Authority and the Currency Board or even the income from investment and loans made from the Development Fund, which income was about $300 million for the year 1976/1977, are not included in the figures shown in the Tables. My point in drawing attention to the very healthy state of Government finances is not to suggest that we can enter an era of reckless spending or that we can indulge in some of the excesses that we see in the welfare states of the West. Our sober and hardheaded approach to Government financial management is one of the main reasons for our record in growth and stability and it is a philosophy that we should continue to adhere to. But I would like to suggest that while preserving caution and prudence, we could be a little more bold than in the past in raising the quality of some of our social services. For example, under our urban renewal programme, the approach appears to be to put all sites acquired to commercial use. Surely we can now afford to acquire land in the city area, for example in the Chinatown area, for use as parks. Take another example, the field of education. Up till now, in order to conserve resources we have had two sessions, a morning and an afternoon session, in every school. Could we not afford to plan to phase out this system over the next ten years or so by building more schools and employing more principals? If we can have all children in morning sessions, it will have a tremendous impact in raising the standard of education.”
“Every year, current revenues have been more than sufficient to finance all current and direct Government development expenditures and loans to statutory boards and companies without the need to borrow or drawdown from the Development Fund. The greater part of the amount shown as Development Expenditure in the estimates is loans to statutory boards and companies which, apart from some minor exceptions are used for investment in viable projects. The statutory boards and companies are expected to, and in fact do, pay interest and principal to the Government. These loans by the Government can therefore be considered to be in the nature of investment of Government surpluses. I am aware that to treat such loans as investments does not fit in with the orthodox definition of development expenditure but it is a treatment that can be justified both on accounting and economic principles. Column (5) of Table II shows the surplus from current revenue after meeting current expenditure and direct Government development expenditure. This surplus is more than sufficient to meet the net loan requirements of statutory boards and companies to finance projects undertaken by them and column (7) of Table II shows the surplus after meeting all requirements i.e. after current expenditure, direct Government development expenditure and loans to statutory boards and companies. GOVERNMENT FINANCE: ESTIMATED AND ACTUAL, GOVERNMENT FINANCE: USE OF GOVERNMENT REVENUE (ACTUAL) In fact, if the trend of the past 10 years continues, the Government will have to tax its ingenuity to find profitable local investment outlets for its surpluses.”
“Mr Speaker, Sir, given the economic conditions that prevailed internationally, Singapore did well in 1977. In fact, many Finance Ministers would give their right arm to be in the happy position of our Finance Minister, to be able to report year after year steady overall progress of the economy and healthy accumulation of government surpluses. Members are aware that Government finances are in even better shape than is apparent in the annual budgets presented to Parliament. There is a vast difference between the actual position and the budget estimates, even the revised estimates, presented to us every year. Sir, I have prepared two Tables (Cols. 723 - 724) and with your permission I would like to distribute them to Members so that they can follow the figures that I will be quoting. [Copies of Tables distributed to Members.] As it can be seen in Table I, for the Fiscal Years 1972-1976, a period of five years, actual revenues exceeded budget estimates by an average of about $525 million per year with a low variance of plus $370 million in Fiscal Year 1972 and a high variance of plus $752 million in Fiscal Year 1975. For the same period, total Government expenditure both under the Main and Development Heads was less than estimate by an average of $860 million per year with a low variance of minus $375 million in Fiscal Year 1973 to a high variance of minus $1,698 million in 1976. There is no reason to believe, Sir, that the variances will be different or much less in Fiscal Year 1977. The true state of Government finances can be seen more clearly in Table II. Although this shows a period of six years, the picture has been the same since 1968.”
“In any case, at the end of the life of the Act, if circumstances require an extension, a Bill can be presented to Parlia- ment to extend the Act and, at such an occasion, Parliament will have the benefit of considering the details of action taken and progress achieved to find a permanent solution and the reasons for the extension. Alternatively, if an amendment is not possible, I shall be grateful if the Minister will give an assurance that this particular aspect of the law to deal with drug misuse will be reviewed periodically and that action will be taken as soon as possible to revert to the system of dealing with drug abusers through the courts. I fear that if there be no limitation to the period of operation of such laws or if there be no undertaking to review such laws, there will be no incentive to strengthen the administrative machinery to deal with the problem. I fear further that if it is not made clear that short cuts to legal processes are only to be used as a last resort and that too with severe limitations, there will be great temptation to use short cuts where process of law or fair play or justice is expensive in terms of time, manpower and other resources. The administration, once it has found a cheap and easy way of doing things, seldom abandons it.”
“There are established medical tests which can provide the evidence. But the drug problem has grown at such an alarming rate that I understand the administrative machinery in terms of courts, magistrates and prosecuting officers cannot cope with the number of arrests being made. Since the problem is acute and cannot wait for the administrative resources to be strengthened before the problem is tackled, an interim solution is necessary. Thus, reluctantly we have to deviate from the fundamental liberty principle laid down in the Constitution. I assume, though I cannot be certain, that other solutions were explored before it was concluded that arrest and detention without trial is the only feasible immediate method of dealing with the problem. This method of dealing with the problem must however be conceded to be a temporary one. It will be difficult to maintain that given some time, the administrative machinery cannot be strengthened to deal with arrested drug abusers in the normal way. Would the Minister, therefore, be prepared to consider an amendment to provide that any law relating to the misuse of drugs which authorises the arrest and detention of a person without trial for the purpose of treatment and rehabilitation will have a definite life of, say, three years? Such an amendment would ensure that steps are taken within the period to enable the problem to be dealt with under the process laid down in the present Article 5 of the Constitution. It may even turn out, happily, that the number of drug addicts may be so reduced at the end of the period that they can be easily dealt with by the courts.”
“Mr Speaker, Sir, the constitutional provision that no person shall be deprived of his personal liberty except in accordance with the due process of law as laid down in Article 5 of our Constitution is a provision that is basic to the system of government and way of life that we have adopted. But, as with other liberties, it must be conceded that it is not absolute. It is an ideal that we should not however deviate from without most careful deliberation. We would all agree that there are some problems in our society that cannot be dealt with in strict accordance with the principle that no person should be detained without an open trial. In fact, to insist on strict adherence to the principle in such cases will only serve to undermine and destroy the very fabric of our society. One such case is that relating to secret societies and their activities. The ruthlessness of those engaged in such activities and the nature of these organisations ensure that nobody will testify publicly in such cases. To insist that the process laid down in Article 5 of the Constitution be followed will only serve to protect such criminal activities and make a mockery of the process of law and justice. As long as we have secret societies, it is necessary to have the provisions of the Criminal Law (Temporary Provisions) Act in operation and it is proper that the Constitution be amended as proposed in the new clause 6(a) to make the validity of such laws beyond doubt. Clause 6(b), however, deals with quite another matter and the reason as far as I can make out for this amendment is very different. The motive appears to me to be one of administrative expedience. In the case of misuse of drugs it has not been claimed, as far as I can remember, that it is difficult to obtain evidence.”
“To ask the Minister for Home Affairs and Education how many drug rehabilitation centres there are in Singapore, the planned capacity of these centres on the basis of accepted norms of living space per person, sanitary facilities etc. and the range of numbers housed in these centres at any one time in 1977; how many persons are housed in each cell/room for cold turkey treatment and whether there is any separation in housing and treatment of addicts in the strict sense of the term and those who have been apprehended while in the early stages of drug experimentation; and whether he will agree to periodical visits by groups of Members of Parliament to these centres. 36.”
“Sir, the roads in some of the condominiums are really no different from the roads in some estates like Serangoon Garden Estate. Watten Estate or Hill Crest Estate. The conservancy charges paid by the HDB cover the types of services which, as I said, should be properly paid for by residents. There are other services which in most cases are paid for by Government. In the case of a condominium, there is no provision, at present, to even allow the normal $300 tax-deductible expenditure for maintenance of garden that is allowed in other housing estates. But since the Minister is prepared to consider when the details are put to him. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head X be reduced by $10 in respect of subhead DAA 1101. Sir, I hesitate to bring up this point because the Minister has just mentioned that he is having difficulty in convincing the House on the need to raise more taxes. But I would like to ask the Hon. Minister for Finance whether he would consider allowing certain expenses incurred by residents in condominiums as tax deductible expenses. It is Government policy that any housing development covering an area of more than two acres should be developed as a condominium. This means, among other things, that all the common services within the estate have to be paid for directly by the owners or residents of the estate. The residents pay a monthly service charge to cover common services such as provision and maintenance of lifts, common staircases, corridors, swimming pools, tennis or squash courts, etc., all of which should properly be paid for by the residents. But the residents also have to meet the cost of providing other services such as maintenance of roads and drains, provision of street lighting. maintenance of grass verges and open areas. These latter services are provided by the Government or related bodies in every other part of Singapore at taxpayers' expense except in the condominiums. The residents in the condominiums, in addition to paying their taxes like everyone else, have also to foot the bills for these services. The cost of these services can amount to as much as $100 per month per household. Would the Minister for Finance consider allowing these expenses to be tax deductible, similar to that allowed for expenses incurred for the maintenance of gardens? 6.15 p.m.”
“Sir, since the Senior Minister of State has said that his Ministry is having discussions with the Ministry of Finance to take over the education of handicapped children, I would like to withdraw my amendment. Amendment, by leave, withdrawn.”
“If the Ministry claims that funds are not available for such teachers. I think this would be stretching credibility too far as I do not think it can be said with any justification that the Government cannot afford to take on the complete responsibility for the primary education of such children. The cost will not cripple the Government. The children who are handicapped ask no more of the Government than normal children and they deserve, Sir, no less.”
“These 33 classes conducted at present are handled by 20 teachers, including the principal, provided by the Ministry of Education, six teachers by the Social Welfare Department and nine teachers employed by the Association for the Deaf. The Association does not dare to recruit more teachers to cater for those on the waiting list because it is not confident that it will be able to raise sufficient funds to keep these classes going on a continuous basis. In spite of the fact that the Ministry of Education and the Social Welfare Department provide three-quarters of the staff for the school, the major part of the Association's annual budget goes towards the employment of teachers in the school. The Association also runs a vocational institute and I have not even touched on the problems connected with this. We therefore find that, instead of the Association concentrating on those areas which require attention, such as the provision of very early pre-school education, the education of parents, etc, which I have already mentioned, the Association has to expend its resources on the provision of basic primary education. It has, for example, 70 children on the waiting list for pre-school, in addition to the 77 that I have already mentioned, for whom it is not able to provide a place. What I would like to know is when is the Ministry going to take over and provide basic primary education to such children. The parents of such children are also taxpayers and I see no reason why their children's primary education should not be funded out of general taxes as the education of other children are funded. It seems a crying shame for children who are already of schooling age to wait past the normal age for commencement of primary education because of the shortage of teachers.”
“Deaf children cannot learn to speak, as not being able to hear. they cannot imitate sounds. The use of the word "dumb" with its implication of stupidity to describe a mute is a tragedy. Deaf children have often just as much innate intelligence as other children. Deaf children need to be enrolled into preschool classes at the age of two or three years so that they have a proper foundation to cope reasonably with primary education. Parents of deaf children need to be educated also so that they can be effective partners with the specialists in educating and bringing up their children. There is also a need for special equipment to help deaf children to learn both academic as well as vocational subjects. The public at large, including employers, also need to be educated on how to deal with and employ such deaf people. All these are areas which are the proper responsibility of voluntary organisations like the Singapore Association for the Deaf, but the provision of basic primary education, and for those who make the grade, secondary education should be the responsibility of the Ministry of Education. We have a School for the Deaf built with gifts from the public. It has 20 classrooms capable of handling 40 classes, putting the morning and afternoon sessions together. At present, only 33 classes are conducted and classrooms are empty although there is a waiting list of 77 children for admission to primary school. These children on the waiting list are more than seven years old and some are even ten years old. They cannot be admitted because there are not enough teachers.”
“Sir, I beg to move, That the sum to be allocated for Head W be reduced by $10 in respect of subhead BAA 1101. Sir, after that marvellous debate, it is with some fear and trepidation that I touch upon this subject. I would like to bring up the Ministry of Education's plans and the manner in which it administers the education of handicapped children. I shall quote the example of children who are born deaf or who become deaf at an early age, but I would like to make it clear that this is intended only as an illustration and I do not intend that any action that the Ministry could take should be confined only to education of deaf children. The attitude of the Ministry seems to be that the primary responsibility for the education of deaf children should be left in the hands of the Singapore Association for the Deaf which is a voluntary organisation supported by donations from the public and that the Ministry should only complement the service of such a voluntary organisation. I agree that there is a place, and an important place, for voluntary organisations in this field but the efforts of such organisations should be directed to those areas where the Government is not providing a service to the population at large. For example, we have not reached a stage in Singapore where preschool education is provided by the Government. It is well known that the first few years of a child's life are the most crucial years in the learning process of a child and that what is done in these initial years can determine the child's whole future in terms of capacity to learn in later life. This is even more important for deaf children who need to be exposed to specialised teaching at an early age so that they can learn some form of communication.”
“Sir, since the annual value already reflects the worth or value of a property. taking into account the type of property, the location and so on, would the Minister consider having a uniform rate of property tax for the whole of Singapore except in cases where specific exemptions or reductions are to be given for promotional purposes?”
“Mr Speaker, Sir, a supplementary question. If the Minister is satisfied that an increase in the price of sugar has to be allowed in order to enable SIS to cover its costs and make a marginal profit, would he consider a reduction in excise duty first, so that the price of such an essential commodity like sugar can be maintained at present levels?”
“Sir, in view of the Minister's explanation, I beg leave to withdraw. Amendment, by leave, withdrawn.”
“But I think most of our viewers are more simple minded and would rather watch the event. So I hope that there is some monitoring system and I would like to hear from the Minister what is happening on this particular score.”
“Mr Deputy Speaker, Sir, I beg to move. That the sum to be allocated for Head Q be reduced by $10 in respect of subhead CBA 1101. I would like to ask the Minister for Culture whether there is any in-house system in RTS that evaluates and monitors programmes from the technical angle so that the many instances of technical lapses and unintended humour will be reduced. Some examples of these technical lapses have already been mentioned far more dramatically, complete with music, by the Member for Telok Blangah. I think we are all familiar with the news programmes which have been touched upon quite a bit, and with the mistakes that are often presented on the screen, for example, a map of the Middle East when the headline refers to Vietnam, or the picture of the wrong person being shown. One of the Members here swears that he once saw, instead of a picture of the Minister of Defence, a character from the "Adam's family". I do not know whether .RTS was trying to pass some subtle message to the Minister of Defence, but I think it was probably another technical lapse. I think there are too many technical lapses and an in-house system of evaluation and monitoring would help. 6.45 p.m. Sports telecast is another area where there are quite a few lapses. It is a very popular programme and very often we find that at the most dramatic moment instead of seeing the action on the field, we see something else. For example, once I saw a hockey game where Singapore was scoring an equalising goal and instead of seeing the excitement in front of the goal mouth, I saw the excited picture of the Minister. I think there are some psychologists who make it a point to study the reaction of people watching an event.”
“Sir, if letters could be sent to each individual who holds an identity card (and they are all given identity cards at the age of 12), then why cannot individual letters be sent to them when they reach the age of 21 to remind them of the oath, when in fact such letters are sent asking them to come and exchange their pink identity cards for blue identity cards? Mr Chua Sian Chin: Sir, let me explain again. The reason why we say that it is not good policy to send letters is that if we send letters to one or to some, then we have to send to all of them. An hon. Member: Yes, send to all.”
“Sir, would the Minister please explain why it should be more difficult to send individual reminders when, in fact, individual letters are sent to those who have failed to take their oath of allegiance to exchange their pink identity, cards for blue identity cards? Mr Chua Sian Chin: Sir, as I said, the reason is that some of them were registered as minor citizens at the tender age of one year old and have not obtained identity cards at all. If they have identity cards, then it would not be difficult to send them reminders. In fact, the answer to the Member for Kallang's question is contained in the question itself. If they have identity cards, then it would be easier to address them for the return of their identity cards.”
“introduction to firms with technical know-how, training of workers, information about markets, etc. I say any one of these areas because if a would-be entrepreneur is lacking in all or most areas, no scheme can help him and in fact the use of public resources in such instances cannot be justified. I am afraid that with the success we have had in attracting foreign investment this aspect has been relegated to the background. I would urge the Ministry of Finance to give the subject more consideration. 5.57 p.m.”
“But these firms account for only about 1 5% of the direct exports, although there are, of course, some indirect exports. Those who have followed the progress of our industrialisation know that very little local entrepreneurship has emerged that is able to make a mark in the export market. It is quite logical that those with ready foreign markets have been the target of our industrial promotion policy. We have rightly concentrated on attracting foreign investors. We should continue to do so and make it attractive for foreign investors to operate in Singapore because it is to our mutual advantage. But I think that at the same time it is necessary also to build up the share in our export industries which is controlled and managed by local entrepreneurs. A look at Hong Kong with an export economy similar to ours will show how far we lag in the participation of local entrepreneurs in the export manufacturing sector. There are reasons, of course, for Hong Kong's lead in this respect. Firstly they had a group of refugee entrepreneurs from China and, secondly, many with potential to become professionals and administrators often found that the only avenue for their talents was for them to start something of their own. In the next few years. many of our own professionals who have been working in foreign owned and managed firms would have had about 10 years or more experience in their jobs. A few may be prepared to strike out on their own and set up their own small manufacturing operations for export. How can we help them to get established? Government should study this problem, firstly to find out in which areas assistance can be most effectively given and set up a scheme to provide such assistance. The need may be in any one of the areas of capital.”
“It does not have any decision-making powers at present. It should be reconstituted and delegated some decision-making powers. The EAC can then, on the basis of actual cases presented before it, formulate changes in approach, in emphasis, in order of priorities and override or confirm individual department's views and communicate these to the departments and services concerned through the decisions it makes on such cases. It may even be necessary to have a committee of two or three Ministers who can perform a similar function on those matters which are considered to be too sensitive to be delegated down to a committee of civil servants. These measures will greatly speed up implementation of investment decisions not only in manufacturing but also in other fields. I think this is very essential if we are not to frustrate investment promotion efforts or spend inordinate time and effort trying to convince various government departments on the need to be flexible when such time and effort should in fact be spent in working on potential investors to commit themselves to investment in Singapore. Having with much difficulty led the proverbial horse to the water we should not be pulling away the trough when it wants to drink. Another matter that should receive more attention and which has been touched upon by the Member for Ang Mo Kio is the promotion of a class of local entrepreneurs who can compete successfully in the international market. Firms controlled and managed by local entrepreneurs probably account for about 45% of the workers employed and about 30 to 35% of the output and value added respectively of the industries covered in the Census of Industrial Production.”
“I think that there is not sufficient appreciation of the difficulties involved in achieving even the modest growth rate targetted for 1977. Those who are in the field trying to attract new investment know only too well how much times have changed. Unfortunately. the great sense of urgency and unity of purpose that characterised the administration up to the end of the 1960s and that enabled us to take such effective advantage of the boom years in the international economy seem to have faded away. We now have departments and services who are more concerned with their own immediate objectives. If the performance of such departments is even partly measured by the income they generate, the profit motive tends to become supreme. That department head who has the wider interest of the economy and who is prepared to yield the immediate maximisation of his own objectives becomes known generally as being soft-headed or weak. Moreover, if something does go wrong as a result of his flexibility, those who press for the flexibility will not be around to carry the can. In hindsight when things go wrong flexibility can easily be made to appear as stupidity. Is it any wonder then why some departments stick firmly to their own narrow objectives and are inflexible in their approach? The problem therefore is how to achieve flexibility in administration to ensure that some of the objectives that became feasible in high growth years are now re examined and modified. It appears to me that some instrument must be found at a supra ministry level that can weigh the different aspects, set new order of priorities and make decisions when such problems arise. The Economic Activation Committee comprising very senior civil servants seems to be ideal for this.”
“Mr Speaker, Sir, the Finance Minister in his Budget Speech summarised our basic strategy to meet the uncertainties and difficulties in the next few years when he said that we need a flexible approach in our development policy. Changes in the region and in the major industrialised countries will require us to change our own policies and priorities. The problem is how to get such changes in priorities to be reflected quickly and effectively in the actions of the civil service and other public services. During the high growth years between 1968 and 1973. the economy grew at an average rate of 15% and the manufacturing sector grew at a rate of 20%. (All these figures are in real terms.) It was natural, therefore, that goals other than rapid employment creation and high growth began to gain emphasis. We began to discourage labour intensive operations and laid greater emphasis on skilled labour and capital intensive industries. We began to be more particular about where each type of industry should be located. We set higher targets and demanded greater margins of safety in anti-pollution measures, industrial safety and health measures and so on. We did such a good job in some areas, for example, in discouraging labour-intensive operations that we now have to put in extra efforts to convince potential investors that there is a change in approach and that any viable export oriented industry will be welcome, With the change in the international economic environment we have to restate our order of priorities and convey this to potential investors as well as those in the civil and public services who have something to do with investments, be it in manufacturing, construction or service activities.”
“On the subject of work permits, Sir, I can see the absolute need to control the entry of foreign workers through such a system. But I find it difficult to see the necessity to impose the requirement of a work permit on permanent residents in Singapore. Many of these permanent residents are not citizens of other countries and they cannot go off to another country. They are a part of the local population whom we cannot wish away. It would therefore seem to be in our interest to encourage and make it easy for them to earn a livelihood instead of being a burden to their relatives. Although work permits are quite freely issued to permanent residents, it may take up to a month to obtain a work permit. Moreover, small companies are just not prepared to go through the process of applying for work permits for such permanent residents. The administrative time and effort spent by the Ministry of Labour in dealing with such applications can be better spent on other matters if work permits for permanent residents are waived.”
“It would therefore be most appreciated if, in addition to landscaped gardens, more open fields are provided within easy access of the children. The small patches of ground, often cemented for easy maintenance that we find between blocks, do serve a purpose but they are not sufficient. There are many school fields in the HDB estates that can serve as playing fields for the children living in flats, but I am afraid there are always vandals and anti-social elements who cause problems when they gain access to school buildings and the properties within it. If a method of fencing-off the school field from the school buildings can be implemented it will provide much needed open space for children in flats to play in. In the Addendum on the Ministry of Labour, Sir, we find stated the paradoxical situation where we have citizens registered with the Employment Service to secure employment, while at the same time work permits have to be issued to large numbers of foreign workers to work in Singapore. It is true that many Singaporeans, especially the young ones, are becoming very choosy about the type of jobs that they are prepared to do. The Ministry of Labour should be fully supported in its attempts to encourage Singaporeans to work in those industries which they now avoid. I find that a good number of job seekers are those who are past retirement age but who are still quite healthy. They do not have any savings, and either they do not have children or they have children who are not able to support them. Such people find it difficult to find productive employment. This, I think, is going to be an increasing problem in the future and a serious attempt must be made to find a solution. Perhaps certain light jobs in the public and private sectors should be reserved for such people.”
“Sir, if I may be allowed, I would like to make a suggestion regarding the role in this Committee of those who are directly in charge of collecting taxes. I do not think I am saying anything new when I say that tax collectors are notoriously conservative when it comes to tax incentives. Any lowering or exemption of tax is looked upon as an immediate tax loss. The tax man would rather maintain 40% tax in his books and collect 40% of zero than lower the tax to 10% and collect 10% of something positive. This single-minded approach is understandable and even admirable if we are merely considering the narrow aim of collecting the maximum tax from existing activities. But in the wider context of achieving economic growth, it is a hindrance. I would therefore suggest that those who are directly in charge of tax collection have as little to do with the formulation of tax incentives whose primary purpose is not to immediately maximise tax collections but to increase the tax base so that even with lower tax rates on specific activities more tax can be collected as a whole to finance public services. May I now turn, Sir, to the Addendum on the Ministry of National Development. It is heartening to note that efforts will continue to be made to provide parks and open spaces. The many landscaped parks that are being provided in the Housing and Development Board estates and elsewhere is testimony that those who plan our low cost housing are keenly aware of the need to provide green lungs to the people living in high-rise flats. Many children who live in such high-rise flats, especially the one-room flats, need space where they can run or kick a ball about.”
“The President has also reminded us that economic prospects in the next few years are full of uncertainties and that we cannot expect the same high growth rate as in the past. We have to identify every economic activity that offers scope for growth and implement such policies that will promote such activities. It is encouraging to note that the Finance Ministry is considering changes in the tax system that will promote international trade relating to the warehousing and sale of capital goods and equipment. We have used tax incentives very effectively to channel investment into Manufacturing and to encourage the growth of Singapore as an international financial centre and as a flag-of-convenience for ships. The use of tax incentives to strengthen and diversify the traditional entrepot trade should now receive attention. Taxation is an important determinant in the choice of a place as a Centre to conduct international trade. Such trade may or may not involve the physical movement of goods through Singapore. In the former case the benefits in terms of activity in Singapore will be greater. But even in the latter type of activity where Singapore merely serves as a point to collate, execute and maintain records of trade that does not come through Singapore at all is still of substantial benefit to us. We need therefore not only to maintain and improve the infrastructure to enable such international trade to be handled efficiently but we also need to re-examine our tax system. The present income tax rates are certainly not conducive to attracting those international operations that neither buy nor sell in Singapore. The establishment of a Fiscal Policy Implementation Committee to consider how best the tax system can be adjusted to encourage these activities is most welcome.”
“I am quite aware, Sir, that fixed ideas of democratic processes and checks and balances can paralyse the implementation of policies which, though painful in the short run, are nevertheless needed in the long term and wider interests of the nation. But there is a danger that we may swing to the other extreme and consider that all obstacles to swift and easy implementation of a policy as a nuisance to be got rid of by legislation. Sir,I am not a lawyer but I can see an example of this in the proposal to deal with the problem of inconsiderate driving by drivers of buses and lorries. Most, if not all of us, have been at one time or other, subjected to the intimidatory driving of those who handle buses and lorries and by the careless attitude of such drivers to the safety of other road users. We agree that it must be dealt with. But we also know of the acrobatic attempts of the drivers of what is probably the smallest vehicle on the road, that is, the motor-cycle and the scooter. I am not suggesting that all motor-cyclists and scooterists are daredevil riders. The majority of them probably take to the road every day with great fear and trepidation because they know that they will come off worse in any accident. But there is a significant enough proportion of such riders who think that they are playing a game to see who is chicken when they are on the road to make them quite a cause of quite a few accidents. This whole problem should be tackled by a combination of education, more thorough enforcement of traffic regulations, improvement of the methods of investigating traffic accidents and severe punishment for those found guilty. To put the onus of proof on the driver of the larger vehicle to prove himself innocent in any accident seems to me to be a legislative over-kill.”
“Mr Speaker, Sir, I rise to fully support the Motion moved by the Member for Ulu Pandan to thank the President for his speech in which he outlined the policy of the Government. The President has very aptly drawn attention to the special responsibility of Members in a one-party Parliament which we now have by the free choice of the people. We have been reminded that on matters presented in this House we must be heard to express the doubts, problems and reservations that the ordinary citizen may have about any policy or legislation, so that during the course of the debate doubts may be cleared, reservations properly answered, and genuine problems which may have been overlooked by the Executive, dealt with by suitable amendment to the policy or legislation. Sir, in some ways, it is easier to field the questions and criticisms of an opposition than for Members, who belong to the same party as the Government, to consider a subject before this House very objectively and to identify and articulate those aspects which may be troubling the people. While we must not shirk from openly supporting unpopular measures that are needed, we should not consider that there is any special virtue in a measure because it is unpopular. The Executive and the Administration may' run into various problems in the course of implementing a policy. It is a great temptation to make things easier for themselves by proposing either changes in the law or new laws when they run into such problems. We have to be alert to any move that would unwittingly legalise inequities or make genuine problems into legal non-problems.”