Yeo Cheow Tong
Singapore
“Mdm Ho Geok Choo asked the Minister for Health in light of the recent report on fungal corneal infections (a) whether those who contracted the contact lens related fungal corneal infections will suffer permanent damage to their eyes; and (b) how long will his Ministry take to conclude its investigations into the causes of these contact le…”
“My Ministry performs a regulatory role and what we do is that we try to ensure that we have a conducive regulatory environment for the growth of this industry in Singapore. Let me tell him what we are doing in some areas.”
“Sir, on her two questions, whether we are satisfied that the school buses are collecting fares during the school holidays, as I mentioned just now, the school bus service is a contractual service between the parents and the service provider. It is therefore up to them to work out the terms and to abide by the terms.”
“Sir, on the first question, whether there is any abuse by owners of buses while using the 50% rebate, the answer is no, because LTA monitors very closely.”
“Sir, I have to repeat my answer. We are not responsible for regulating school buses and therefore will not be involved. SCHOOL BUSES (Installation of seat belts) 5. Assoc. Prof.”
“Ong Soh Khim asked the Minister for Community Development, Youth and Sports (a) if his Ministry will increase the cap of $10,000 per disabled person over their lifetime for the Assistive Technology Fund scheme; and (b) if not, whether there will be a flexibility to adjust the funding cap for this scheme based on the applicant's need, as j…”
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“(a) Reasons for the closure In February 1986, the PRC and Singapore Governments agreed to stage in Singapore a series of 5 exhibitions on PRC historical and cultural relics. This was part of our bilateral co-operation in tourism. As part of the agreement, Singapore Government formed a company, the Historical and Cultural Exhibitions Pte Ltd, to stage the exhibitions. The Empress Place Building was selected as the venue for the exhibitions. The first exhibition started in April 89 and the fifth, and last in the series, was completed on 30th April 95. Government decided to close the Empress Place Museum from 1st May 1995 as (a) the 5 exhibitions under the bilateral agreement have been staged; and (b) the Historical and Cultural Exhibitions Pte Ltd, which operated the Empress Place Building, was not financially viable despite the support of the travel industry. (b) Total amount spent The entire venture cost $31 million, most of which were spent renovating the building and offsetting the operating losses. (c) Lessons learnt The Empress Place Building was opened in 1989 for a specific objective, namely, to stage the 5 exhibitions on PRC historical and cultural relics as part of our bilateral co-operation in tourism. It has achieved this objective. The 5 world-class exhibitions have fostered a better understanding of Chinese history and culture among the more than 1.5 million Singaporeans and tourists who visited them. The intention when the Historical and Cultural Exhibitions Pte Ltd was set up was for the company to operate on a commercial basis with no Government subsidy. Despite the company_s marketing and publicity efforts, and the quality of its exhibits, the exhibitions did not draw in the crowds.”
“Dr Kanwaljit Soin asked the Minister for Health if he has the figures from 1990 to 1994 relating to violence in the home with respect to victims presenting themselves at public hospitals and, if so, whether he will provide the breakdown figures of males and females in the following categories: (i) children; (ii) adults; and (iii) the elderly. BG George Yong-Boon Yeo: Statistics on victims of violence in the home presenting themselves at public sector hospitals are not available prior to 1994. The Table below shows the number of cases of child abuse, spouse abuse and elderly abuse seen at government and restructured hospitals in 1994 and the first six months of 1995. Cases of Violence in the Home seen at Public Sector Hospitals ____________________________________________________ Categories 1994 1st half of 1995 ____________________________________________________ Children Abuse 203 57 Spouse Abuse 624 240 Elderly Abuse 136 67 ____________________________________________________ Breakdown of the figures by gender is not available. EMPRESS PLACE MUSEUM 7. Dr Kanwaljit Soin asked the Minister for Trade and Industry (a) what were the reasons for the closure of the Empress Place Museum; (b) what was the total amount spent on the whole venture; and (c) what lessons were learnt from the experience.”
“The Government has been spending an average of $1.5 million annually on STPB's advertising campaigns in Hong Kong since 1990. The primary objectives are to promote Singapore as an attractive tourist destination and to shape the general perception of Singapore amongst the Hong Kong public. This year's campaign in addition focuses on Singapore being a good place to work and live in, to attract Hong Kong businessmen and professionals to invest and work here. One good indication of the success of these campaigns is the increase in visitor arrivals from Hong Kong since 1990. Tourist arrivals from Hong Kong have increased from 194,000 in 1990 to 271,000 in 1994, a growth rate of 9% a year. YISHUN MEDICAL CENTRE 5. Mr Cheo Chai Chen asked the Minister for Health, since the completion of Yishun Medical Centre, how many units in the Centre have already been taken up and how many are still left vacant; what are the services provided by the tenants already functioning in the Centre; and when the Centre will be fully operational. BG George Yong-Boon Yeo: Ten out of the 26 units in Yishun Medical Centre have been leased out. They are to a general practitioner and a dentist who are sharing one unit, an obstetric and gynaecology practice, a surgical practice, a clinical laboratory and an X-ray clinic. Five units have been leased out to a Child Care Centre. The Ministry is looking into various means to attract more doctors and other health related professionals to lease the remaining units. DOMESTIC VIOLENCE 6.”
“Sir, the two existing Acts provide that information, particulars or documents that have been supplied by the importer or exporter cannot be released without the prior consent in writing of the importer or exporter, except for purposes of a prosecution in Singapore. Clause 31 now provides for this provision to be widened to allow the disclosure of such information to a foreign government authority if certain conditions are met. The nine conditions, as stipulated in clause 31(1)(4), serve as a safeguard to ensure that information is judiciously released and only for specific purposes that are not prejudicial to Singapore's essential interests. Sir, in conclusion, I wish to point out that this new Bill addresses the major trends in trade technology. By facilitating the increased use of information technology, this Bill brings Singapore to the forefront in the use of electronic data in trade. The enhanced penalties and powers will help combat spurious and illegitimate use of Singapore's open trading system. Traders will also find that with this one consolidated Bill, the trading process is simplified and there is greater clarity in the procedures. The Regulation of Imports and Exports Bill will, therefore, remove impediments to trading activities and, in turn, further enhance Singapore's position as a thriving international trading hub. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Yeo Cheow Tong]. Bill considered in Committee; reported without amendment; read a Third time and passed. LAND TITLES (STRATA) (AMENDMENT) BILL Order for Second Reading read.”
“For the second and subsequent offence, the penalties have been increased to a maximum fine of $200,000 or four times the value of the goods, whichever is the greater, and a maximum of three years' imprisonment or both. Hence, with the consolidation of the two existing Acts and these revisions, we are now able to impose a common set of realistic penalties. Sir, currently there exists in the "Control Act" under section 17 an explicit provision that the powers of search are not applicable to a passenger while he is on board a vessel and in transit through Singapore to a destination outside Singapore. This restriction has been omitted from clause 21 of the new Bill, thereby allowing the search of transit passengers for contraband and other illegal goods such as narcotics. Sir, presently, the Registration of Import and Export Rules refer only to the importer or exporter of goods obtaining the relevant inward or outward declaration. Increasingly, freight forwarders and cargo agents are submitting trade declarations to the TDB on behalf of the trader. However, if there are errors in these declarations, it is the importer or exporter who is held liable even though it may not have been his fault and he did not sign the declaration himself. Clause 28 of the Bill aims to rectify this inequity. It provides that, in instances where the documents are submitted or declared by an agent, the agent is presumed to do so on his principal's authority. The person who signs the document is also deemed to be cognizant of all matters therein and may be held liable for their actions.”
“This includes the destruction, damage, erasure, or insertion of computer viruses into the system. This offence is punishable by a fine not exceeding $10,000 or imprisonment for a term not exceeding two years, or both. Providing new enforcement powers, safeguards and penalties will enhance confidence in the system and encourage increased use of the electronic medium. Clause 3 of this Bill empowers the Trade Development Board to create a register of importers, exporters or common carriers of goods. With the establishment of a register, the recalcitrant trader faces deregistration and the loss of associated trading privileges; this would heighten the risks and cost of illegal activities and serve as another deterrent. Sir, the two existing Acts were enacted more than 40 years ago. The penalties provided for in the two Acts are now outdated and inadequate in the context of today's trading environment. There is thus a need to review the penalties so as to bring them in line with other commercial crimes and offences. Currently, under the "Registration Act", the maximum penalty ranges from $1,000 up to a maximum of a mere $2,000. The maximum penalty under the "Control Act", for the first offence is $10,000 or three times the value of the goods in respect of which the offence was committed, whichever is the greater, or imprisonment for a term not exceeding 12 months or both. For the second and subsequent offence, it is a fine not exceeding $20,000 or four times the value of the goods, whichever is the greater, or imprisonment for a term not exceeding two years or both. Clause 3(3) of this Bill increases the penalties to a maximum fine of $100,000 or three times the value of the goods, whichever is the higher, or two years' imprisonment or both for the first offence.”
“However, the provisions have been consolidated to eliminate duplication and enhance clarity, especially where the two Acts overlap, so as to facilitate easier referencing and administration. Administratively, at present, traders in Singapore have to complete a combined declaration form in compliance with the requirements under both existing Acts. However, traders are unsure which part of the declaration refers to which Act. A single Act eliminates such doubt and uncertainty. In drafting this consolidated Bill, my Ministry has also taken the opportunity to bring the law up to date and to enact new provisions in line with Singapore's status as an international trading centre. Hence, new provisions have been included: First, governing the use of electronic media, ie, TradeNet, for the submission and receiving of trade documents between the traders and the authorities; Second, for the registration of entities concerned with trade; Third, to update penalties so as to be in line with other commercial crimes and offences; and Fourth, to specify conditions upon which disclosure may be made to foreign government authorities. Sir, let me now go into the key provisions of the Bill. Provisions under the two existing Acts governing the use of the TradeNet system are inadequate. Not only does it fail to deal with the novel legal issues posed by TradeNet, it also does not completely cover many other trade documents that are currently submitted electronically for administrative convenience. This Bill enhances the legislative framework governing the transmission and use of electronic data for trade documentation whilst providing safeguards for the electronic age. Clause 29 of this Bill penalizes the unauthorised modification of computer programmes or data.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Regulation of Imports and Exports Bill provides for the registration, regulation and control of imports into and exports from Singapore. This Bill consolidates and updates two existing statutes, namely, the Control of Imports and Exports Act (Cap 56), which I will call "Control Act" for short, and the Registration of Imports and Exports Act (Cap 270), which I will call "Registration Act" for short. [Mr Deputy Speaker in the Chair] 4.15 pm Sir, the "Registration Act" was enacted in 1934, and the "Control Act" in 1950. The last time both Acts were amended was in 1982, to allow for the establishment of the Trade Development Board. Other than the 1982 amendments which were mainly administrative in nature, there has not been any major amendment to either of the two existing Acts since their enactment. Sir, the trading environment in Singapore has changed significantly in the past four to five decades since the introduction of these two statutes. Singapore is now a major international trading hub. Both the volume and value of trade have increased in quantum leaps, in tandem with the growing global importance of our air and sea ports. The advent of electronic media for trade documentation adds a new dimension and poses additional challenges for trade regulation. A comprehensive review of the two Acts was therefore necessary so as to bring the legislation in line with the prevailing trade environment and to facilitate the use of information technology. The fusion of these two Acts into a single piece of legislation would greatly facilitate and enhance the administration of our import and export trade. By and large, the main provisions of the two existing Acts will continue to be in force.”
“The amendments that I have moved today are to ensure that JTC can actually participate as a minority partner, ie, the projects would be driven by either the private sector companies or GLCs, and JTC is there with a small stake, but more in its role as a consultant to the project. I agree with him that we should be cautious. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Yeo Cheow Tong]. Bill considered in Committee; reported without amendment; read a Third time and passed. REGULATIONS OF IMPORTS AND EXPORTS BILL Order for Second Reading read.”
“So MTI will continue to monitor, together with JTC and EDB, the various prices to make sure that we are actually competitive. As regards her other point on the release of JTC expertise to the private sector, I totally agree with her. Actually, JTC is working very actively with the private sector on various projects in the region, offering their consultancy services and they also have been losing their professionals to the private sector. The private sector realises that there is expertise in JTC and they have not hesitated to poach from JTC when the need arises. In a way, JTC is also performing some national service. In terms of nurturing local companies by sub-contracting more work to them, JTC is already doing so. I can assure Dr Lee that it will continue to review and see what else can be sub-contracted out. Mr Chng Hee Kok advises that with the very complicated operating environment abroad, he is not too sure whether JTC has the corporate culture and expertise to invest abroad. I wish to assure Mr Chng that, in the first place, JTC has already been operating abroad through its subsidiaries and directly as a statutory board for many, many years. It has been involved in providing consultancy services in the development of industrial estates in Indonesia, Malaysia, Vietnam, China and now India as well. So they do have the expertise. But having said that, I do agree with him that we need to be cautious. I can assure him that we will definitely exercise caution when reviewing requests from JTC to participate as equity partners in the projects.”
“In the last two years, URA has also tendered out some plots of land for industrial use. This gives us a rough indicator of what should be the market price for industrial land. I would also like to assure Dr Lee that we do monitor the prices of industrial land in Singapore as well as the prices of industrial land in our key competitive countries such as Malaysia, Thailand, Indonesia, China, India and even in America. But we must always recognise that land prices in Singapore can never be as cheap as land prices, including industrial land prices, in those countries with much bigger land areas. Because land is such a vital resource, I am happy to inform Dr Lee that we already have a multi-agency committee that plans land usage in Singapore. For example, in a particular area, what sort of land usage should be allowed and also the intensity of the land usage. The planning process ensures that the land is utilised properly and it also ensures that if a particular land has been gazetted or master planned for industrial uses, then the land pricing there would be different from land which has been master planned for residential or commercial development. As JTC has stated in its annual report, they do try to ensure that their land prices are competitive. But at the end of the day, we will never be close to the land prices in our surrounding countries. The challenge to us, therefore, is to ensure that we are able to make that higher price bearable for the private sector, by making the infrastructure efficient so that the industries have a lower cost of operation. The other matter is that we have to continue attracting investors who bring in efficient productive operations and who are carrying out high value-added activities.”
“Sir, first of all, I would like to thank the two Members for their support of the Bill. Dr Lee has made three points. Firstly, that the pricing of land is a very complex and sensitive issue and that we should have a multi-agency to do a comprehensive study of the situation and see how we can ensure that the land pricing is in line with Government policies. I agree with her that this is a highly complex issue. On the one hand, we are faced with the problem of having very limited land and therefore it is inevitable that land prices in Singapore will always be high. On the other hand, we have the important task of ensuring that our manufacturing sector will be responsible for no less than 25% of our GDP. So how do we ensure that the prices of industrial land do not cause our key export industries to become non-competitive? Sir, in land-scarce Singapore, we will always have to ensure that land is used efficiently, optimally and that wastage is minimised. One method for ensuring this is, of course, having proper planning procedures. This is being done. Another essential method is to ensure that the pricing is correct, so that the owners and lessees make full use of every square metre of land that they lease. Sir, there are ways for establishing the correct market price. For commercial and private residential properties, we have a very vibrant private sector. Transactions are done almost every day. The market price is fairly well established. Also, the URA periodically tenders out Government land. I think that sets another benchmark for the price of such land. For industrial properties, we have a small proportion of industrial land held by the private sector. These are mainly in the MacPherson area and along certain parts of Bukit Timah Road.”
“To give JTC access to more sources of funds to support its local and regional activities, clause 5 of the Bill seeks to amend sections 14 and 15 of the JTC Act to allow JTC, with the Minister's approval, to raise funds using financial instruments other than mortgages, stocks and bonds as stated in the current JTC Act. Sir, JTC is now allowed to only invest in trust funds, as provided by section 4 of the Trustees Act. Clause 10 re-enacts with amendments section 26 to allow JTC to invest in trust funds and, with the approval of the Minister, in any other securities. This change is in line with the Government's call for statutory boards to tap the capital markets for funding activities and to seek fund management services to invest their cash surpluses. Section 5(1) of the present JTC Act states that the JTC Board must comprise a Chairman, Deputy Chairman and seven members. This means that JTC cannot vary the size of its Board according to its needs. Clause 2(a) of the Bill amends this section to give JTC more flexibility by stipulating the composition of the Board as a Chairman and not less than 4 but not more than 11 members, one of whom may be appointed as the Deputy Chairman. Currently, we have to amend the JTC Act each time JTC changes its corporate logo. This is rather cumbersome and inefficient. Clause 12 of the Bill amends section 35 to allow JTC to change its logo by notification in the Gazette. Sir, this Bill also amends certain provisions in the JTC Act to bring them up to date. These are mainly administrative in nature. They include submission deadlines on JTC's budget and annual report to the Minister and JTC's audited financial statements to the President. Sir, I beg to move. Question proposed.”
“There may also be occasions when JTC, having identified a project on its own, would not want to be a majority shareholder but still would like to participate in the project, or may want to divest part of its shares to other Singapore partners. The Act also requires these JTC subsidiaries to share the functions of JTC as set out in the existing Act. There is also no reason to compel JTC's subsidiaries to share the functions of JTC itself as long as the activities they engage in are commercially viable and fit in with JTC's long-term corporate strategies. The Act also does not allow JTC to grant loans to companies in which its subsidiaries have an equity stake. Neither does it allow JTC to stand as a guarantor for loans to these companies or its own subsidiaries. JTC, therefore, faces severe constraints in providing financial support to its subsidiaries in their local and overseas ventures. To give JTC more financial flexibility, clause 4 of the Bill seeks to amend section 12 of the JTC Act to allow JTC, with the Minister's approval, to: (a) participate as a shareholder in companies for both local and overseas ventures without setting any conditions on the extent of its shareholding; and (b) grant loans or stand as a guarantor for loans to its subsidiaries and the companies in which the subsidiaries have equity participation. These amendments will give JTC the flexibility to participate as a shareholder in any project which is commercially attractive and viable, and fits in JTC's corporate strategies, and which can benefit from JTC's expertise and experience.”
“The functions of JTC, as provided for in the current Act, are to develop and manage industrial estates and sites in Singapore or overseas, and to provide supporting facilities and social amenities. However, JTC has found that, for larger scale projects abroad, the scope of work extends beyond just developing and managing an industrial estate. For such project to be feasible and successful, the developer may also have to develop and manage infrastructural facilities such as bridges, warehouses, ports, power supply networks and commercial and residential properties. Clause 4 of the Bill re-enacts with amendments section 12 of the JTC Act which sets out the functions and powers of JTC. The new section 12 enlarges the functions of JTC and gives it additional powers for the carrying out of those functions. This amendment will enable JTC to provide the full range of services needed in its regional activities. Sir, for JTC to carry out its functions more effectively in today's competitive environment, it is also necessary to provide JTC with greater financial flexibility. For instance, from time to time, JTC and its subsidiaries have been approached by various Singapore companies to participate in their projects as an equity partner. The companies would be able to spread the project risks and financial commitment, and the projects themselves would benefit from the good reputation of JTC. However, even though these projects may be commercially viable and attractive, the current Act does not allow JTC to participate in ventures in which it has a minority shareholding.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Jurong Town Corporation has over the years built up an excellent international reputation as a developer of top class industrial estates. It is not unusual now for MNCs and industrialists in the region to use Jurong Industrial Estate as a benchmark when they assess the suitability of a particular location for their new investment. It is therefore not surprising that when our own businessmen started to venture into the development of industrial estates in the region, some of them turned to JTC for services ranging from consultancy to project development and management. Just as our private sector has found that the rapid economic growth in the region has created many attractive business opportunities, so too has JTC as it ventured abroad in support of the private sector and the Government's efforts to create an external economy. In the process, JTC has found that, for it to perform efficiently and to be able to add greater value as a partner to the private sector in their overseas ventures, its statutory powers would have to be enlarged. This is not surprising, as the JTC Act was enacted at a time when we were just embarking on our own industrialisation programme, and few could have dreamt of the drastically changed circumstances prevailing in the East Asia region today. This Bill aims to rectify the situation by seeking to amend the JTC Act to: (i) widen JTC's overseas charter; and (ii) give JTC greater flexibility in financial matters. We have also taken this opportunity to amend certain provisions in the existing Act to give JTC greater flexibility in its daily administration and operation, and to bring the JTC Act up to date. Let me now brief Members on the key provisions in the Bill.”
“As I have mentioned earlier in my speech, there is already an open gas market, with consumers choosing freely between PUB's piped gas where it is available, and the many bottled gas suppliers. Consequently, the regulatory framework for the privatised piped gas business will mainly address the safety aspects of gas production and transmission, the quality of the gas and the standard of performance of the licensed piped gas company. Let me now move on to the supply of water. As the re-constituted PUB's role with regard to water supply has not changed, the Bill has retained basically the same provisions as in the existing Public Utilities Act. PUB has done a commendable job in providing Singapore with a reliable and efficient electricity and piped gas supply. The passing of this Bill will launch PUB and its successor companies into a new phase of development. It will provide Singaporeans the opportunity to have yet another tangible stake in our nation's wealth. At the same time, the successor companies will have greater management flexibility to innovate and meet the local demands for electricity and piped gas in an even more efficient manner. It will also have greater flexibility to compete and venture into the regional power market. I therefore hope Members will give their full support to this Bill. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Yeo Cheow Tong]. Bill considered in Committee; reported without amendment; read a Third time and passed. CONTACT LENS PRACTITIONERS BILL Order for Second Reading read. 3.25 pm”
“However, large consumers whose maximum demand exceeds a certain level will be given the choice not to come under the regulated tariffs. They can enter into special agreements with any electricity supplier. The rationale is that large consumers will have the negotiating power to "shop around" for the supplier that can offer them the best deal in terms of prices and services. Clause 54 of the Bill provides for this flexibility. Sir, one of Singapore's strength is that we have a secure and reliable supply of electricity. This not only enables us to lead our daily lives with minimal inconveniences but, more important, is critical for the smooth operation of our business and industry. Hence, one of the duties of the re-constituted PUB is to ensure that this strength is not compromised. PUB will work closely with the power generators to forecast electricity demand and ensure that the additional generating capacity needed is secured in good time. This is to safeguard against any market failure should companies fail to respond quick enough to market signals to install new generation capacity. To enable PUB to do this, clause 44 empowers PUB to give directions to licensees with respect to standards of performance and service, including ensuring the security and reliability of supply. If they fail to discharge their obligations and the security of electricity supply to the public is threatened, clauses 44, 58 and 59 empower PUB to fine them, suspend or cancel their licences and, ultimately, to assume control of their businesses if the need arises. Let me now briefly explain the regulatory framework for the privatised piped gas industry.”
“The Government will wholly own the shares of the corporatised SP. PUB will transfer the necessary properties, rights and liabilities to SP, and its five subsidiary companies, for them to operate the electricity and piped gas businesses. Clause 66 provides for the existing staff to be transferred to the successor companies on terms which are no less favourable than those enjoyed by them before the transfer. This is fair, and will enable the successor companies to continue operating without any disruption. Clauses 64 and 65 of the Bill enable the Government to offer for sale to the public the shares or debentures of SP. As I mentioned earlier, the Government expects to list SP around the middle of next year. Clause 38 provides for PUB, as the regulator, to grant licences for electricity generation, transmission and supply, and for the provision of utilities support services. The licences will contain conditions relating to service standards and reliability, public safety and other relevant matters. The electricity transmission licensee, who will have a monopoly over the transmission and distribution network, will be required under clause 47(2)(b) of the Bill to make its network available to all generation and supply licensees on fair terms. This ensures that future power generation companies will enjoy terms and access into the power transmission and distribution system similar to that enjoyed by companies in the SP stable. Clauses 38(5)(d) and 50(1) provide for PUB to regulate electricity tariff rates. PUB, as the regulator, will establish a formula which will set a limit for any increases in the electricity rates. This would be especially useful during the next few years when competition in the electricity industry remains limited.”
“Having more than one power generating company will encourage them to compete by being more innovative and efficient, and keep each other in check. By structuring SP's current power generating operations into two separate companies, we will be able to achieve some degree of competition immediately. Sir, the completion of Stage 1 of the new Tuas Power Station (TPS) in 1999 will give us an opportunity to introduce additional competition into the electricity generation business. TPS will be built in two stages, each with a generating capacity of 1.2 GW. With the completion of Stage 2 by the year 2001, TPS will be about the same size as each of the two SP power generating subsidiaries. The Government has kept the Tuas power project separate from SP, under the ownership of Temasek Holdings. SP will manage the construction and commissioning of the Tuas project on behalf of Temasek. When TPS is completed, the Government will then have the flexibility to sell TPS to a non-SP group, if it so decides, without affecting the structure of SP. We will not be able to introduce competition in transmission and distribution, as these are natural monopolies. Nor will we need to introduce competition in piped gas services, as there is already competition from bottled LPG. Let me now go into the key provisions of the Bill. Clause 3 of the Bill re-constitutes the PUB as a statutory board. Clause 6 sets out the functions, duties and powers of the re-constituted PUB. It empowers the PUB to manage and operate the Water Department. The PUB will promote competition and exercise licensing and regulatory functions over the electricity and piped gas industries. Clause 61 provides for the corporatisation of PUB's Electricity and Gas Departments.”
“It has done well in giving Singaporeans a reliable and efficient service at prices which are very competitive by international standards. However, this present structure is workable so long as PUB remains as a statutory board. After privatisation, the Board of Directors of SP will have the fiduciary responsibility to maximise profits and to look after the interests of SP's shareholders. The degree of SP's monopoly power will undoubtedly influence its ability to maximise profits. This is an economic fact, and does not in any way reflect on the professionalism of SP's present or future management. PUB will therefore need to regulate the privatised utility companies and safeguard the interests of consumers. Another safeguard will be the introduction of competition. In planning for the privatisation of PUB, the Ministry of Trade and Industry studied the experience of the UK when it privatised its electricity and gas services. The key lesson from the UK experience was that regulatory and competition policies should be carefully thought through and settled before privatisation. Singapore's present power generating capacity is about 4.5 GW, and is expected to more than double to 10 GW in 10 years' time. This enlarged generating capacity is sufficient to accommodate competition, as shown by the experience in various countries. For example, Northern Ireland, with a capacity of only 2.2 GW, has already introduced competition. Hong Kong, with a total generating capacity of 10.1 GW, has had two power generating companies for many years. And both New Zealand and the Australian state of Victoria, with a generating capacity of 7 GW each, are currently restructuring their electricity services to introduce competition.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." During the Committee of Supply debate in March this year, I informed the House that the PUB's Electricity and Gas Departments would be corporatised by September this year, as Singapore Power and Gas. The remaining PUB will continue to manage the Water Department, and be the regulator responsible for licensing and regulating the privatised electricity and piped gas industries. The new company's name has now been finalised, and will be known as Singapore Power Pte Ltd (SP). SP will be a holding company, with five operating subsidiaries, viz, two power generating companies, a transmission and distribution company, an electricity supply company that will be responsible for buying electricity from the power generators and selling it to the customers, and a gas company. The Government plans to list SP on the Singapore Stock Exchange around the middle of next year. This 5-subsidiary structure will allow the Government to introduce competition in electricity generation and supply progressively over the next few years while, at the same time, enabling SP to tap the combined resources of its subsidiaries for projects overseas. As I informed the House then, the PUB privatisation is part of the Government's plan to enhance the assets of Singaporeans and give them a stake in the country's wealth. As in the Singapore Telecom flotation, we will have a scheme to encourage Singaporeans to buy the shares of SP, and hold on to them. As a privatised company, SP will have the operational flexibility to be more market-oriented in tailoring its services to better meet the needs of its customers. Mr Speaker, Sir, PUB is now both a regulator and an operator of electricity services in Singapore.”
“Mr Speaker, Sir, of course, all the cost factors, including cost factors influenced by Government's actions and activities, will be taken into consideration. CREDIT AND CHARGE CARD ISSUERS (Free gifts and special promotions) 11. Assoc. Prof. Walter Woon asked the Minister for Finance whether it is the Government's policy to prohibit credit and charge card issuers from rewarding cardholders who consistently use the card with free gifts and special promotions.”
“Sir, the Singapore dollar will continue to increase as long as we continue to have strong economic growth and as long as we continue to have a healthy budget. I think that is the situation that is facing the private sector today, and we would like them to bear that in mind in planning for their business operations in Singapore. The pricing of Government services to the general public and to the private sector in Singapore should be kept separate from the value of the Singapore dollar. Because as the costs of providing these services increase with rising wages, I think it is important for the Government to reflect these increasing costs in its pricing, so that business can actively adjust to it and ensure that we do not end up subsidising the private sector. Because once that happens, it is very difficult to hold back that sort of programmes.”
“Mr Speaker, as the Finance Minister and the Deputy Prime Minister previously explained, the value of the Singapore dollar is determined by the international foreign exchange market and it will be impossible for the Singapore Government to artificially set the value of the Singapore dollar. But what we can do is, when necessary, to intervene to slow down that pace of increase and this, I think, MAS will continue to do when necessary. With regard to helping companies to adjust to the appreciating Singapore dollar, the Government has been actively encouraging companies to upgrade, to improve their productivity, and we will continue to do so aggressively. In fact, we are now in the midst of reviewing the role of the NPB and other agencies in the productivity improvement programme to see how we can make better use of the capabilities that we have and to review how we can reach out more effectively to the private sector to help them upgrade and improve their productivity.”
“Mr Speaker, Sir, in the first five months of this year, on a year-to-year basis, the Singapore Dollar (S$) has appreciated by 11% against the US$, between 3% and 15% against the currencies of the other East Asian countries, but depreciated by 5% against the Yen and 6% against the Deutschemark. The relatively large appreciation against the US$ partly reflects the weakness of the US$ in international markets. On a trade-weighted basis, the appreciation of the Singapore dollar is much less. As the Deputy Prime Minister mentioned in this House in May, MTI and its statutory boards are helping the Monetary Authority of Singapore to conduct an in-depth study into the impact of the appreciation of the Singapore dollar on different industries. This study is still on-going and will be completed in several months' time. Meanwhile, MTI's feedback from the manufacturing companies about the effects of the Singapore dollar is mixed. They depend on the specific circumstances of the companies. Companies whose export earnings are mainly denominated in US$ and whose inputs are mainly in Yen or Deutschemark are adversely affected. Conversely, companies whose export revenues are in Yen or Deutschemark benefit. For the manufacturing sector as a whole, as the US is a bigger export market than Germany or Japan, there has been pressure on profit margins. In the tourism sector, the impact of the strong Singapore dollar is one of the many factors affecting tourism. Other important factors include the state of the economy in the tourist-generating countries, the development of excellent and competitively priced shopping facilities in the ASEAN countries which comprise the bulk of our tourist arrivals, and the competition from many new tourist destinations in the region.”
“Internet will raise new and difficult legal issues in the areas of investigation, enforcement, evidence and prosecution. All over the world, new legal ground is being broken. For example, a Communications Decency Bill has been tabled in the US Senate to deal with pornography and obscene materials distributed through Internet, but it has not yet become law. Opponents argue that such a law will effectively kill Internet. Sir, we are undertaking a comprehensive review of these issues. The Government has established an inter-Ministry committee, involving MITA, the Singapore Broadcasting Authority, the Telecommunication Authority of Singapore, the National Computer Board, the Ministry of Home Affairs and the Attorney-General's Chambers, to study them and to recommend changes to our law. However, in crafting appropriate legislation, we must ensure that we do not stunt the growth of Internet and other applications of Information Technology in Singapore. Assoc. Prof. Walter Woon (Nominated Member): Sir, will the Parliamentary Secretary please confirm therefore that people are free to express their views on Internet without fear of retribution, unless they break the law, of course?”
“Sir, when this issue was brought up in the Budget debate, I had explained at that time to Members that the PUB would be embarking on a major water conservation campaign this year. This month long campaign will be launched on the last Saturday of June this year. CRITICISM OF GOVERNMENT POLICY ON INTERNET 5. Assoc. Prof. Walter Woon asked the Minister for Information and the Arts whether the Government intends to take any action against persons who criticise Government policy on Internet and, if so, what action is contemplated. The Parliamentary Secretary to the Minister for Information and the Arts (Encik Mohamad Maidin B P M) (for the Minister for Information and the Arts): Mr Speaker, Sir, the Government receives feedback, comments and suggestions on its policies via various channels such as this House, the media, the Feedback Unit, the Institute of Policy Studies and the Service Improvement Unit. The public is free to use Internet as another channel to give its views on Government policies. The Singapore InfoMap launched earlier this year makes this very convenient. Sir, as long as feedback, critical or otherwise, is constructive and no law of the land is broken, there is no reason for the Government to take action. Individuals should exercise responsibility when they participate in discussions on Internet just as in any other public forum. Those who engage in acts of defamation, libel, fraud or obscenity in Internet are of course liable to prosecution. Internet is a new phenomenon. Some of our laws may not be adequate to deal with the legal problems in this new medium. This is a worldwide problem brought about by rapid advances in Information Technology.”
“Sir, as I have explained just now, all the feasible systems for collecting water in Singapore have already been explored and are already in place. Now we have to get Singaporeans to reduce water consumption. The campaign on the water conservation programme would be one way. However, as our past experience has shown, the price of water is also a very important factor, because that drives home the importance of water. In any case, once we go to desalinated water, which is inevitable, either in the year 2001 if we do not reduce our water consumption rate, or if we are able to halve it, in the year 2011, that will incur a tremendous increase in the price of water. So either way, the price of water will increase. It is better that we get Singaporeans to realise that water is precious and important and the water conservation tax in many ways drives home that importance today, rather than deferring it to the year 2011 or 2001. Mr Chiam See Tong (Potong Pasir): Sir, the Minister says that the message of water conservation has been put across to the people of Singapore regularly. Other than the increase in the water conservation tax, can the Minister tell this House what other measures and campaigns the Government has embarked on to ask the people to conserve water since this matter was discussed in the Budget session?”
“Sir, the Member obviously does not quite understand what I have been telling him. The planning process is an on-going one. Why does he think that Singaporeans have never had the problem and trauma of having water shortage? It is because PUB has been monitoring and planning all the time. In terms of highlighting to Singaporeans the need to conserve water, that again is a message which comes out from the PUB regularly. In terms of ensuring that there is adequate supply, that again is something which PUB plans for. Why does he think all the new towns in the eastern part of Singapore have had the storm water collection systems in place. They were not put in place overnight. They were the result of many years of planning and many years of construction of the system. So it is not that we only started doing things in 1990. All the water development programmes have been on-going for many, many years already.”
“Sir, this is not something which just appears from the blue. As I said, PUB monitors and projects water consumption all the time. That is why we have all these water schemes coming in place on a planned basis. However, under the agreement with Malaysia, we are entitled to only a certain amount of water. Based on our projection, with the first agreement expiring in the year 2011, if we can get Singaporeans to reduce the usage of water to 3% a year, we will be able to have enough water until the expiry of the first agreement. What we have to do now is to plan what will happen after that. As I have pointed out, one alternative is desalination and this is something which has been under study for a long time. We are now sending people to visit countries with operating systems so that we can have the desalination system in place when the water supply is needed. The realisation is not something that has just appeared. It is something that we have been tracking all the time and we feel that it is now timely for us to highlight to Singaporeans that we have to reduce to 3% a year in terms of our water consumption increase.”
“Sir, the PUB constantly monitors the usage of water and that is why it has been able to implement various schemes that will come in place and be operational when the water consumption is needed. That is why we have also finalised and built the Linggiu Dam in Johor which enables us to supply the 250 million gallons of water a day that we are entitled to under our agreement with Malaysia. Similarly, we are now discussing with the Indonesians on the development of Bintan water resources as well as water resources on the mainland of Sumatra. Mr Low Thia Khiang: Sir, my question is: when did the PUB discover that the current water resources or whatever on-going efforts will not be able to meet the future demands of Singapore? When did the PUB discover that and thereby decided to impose the water conservation tax?”
“This represents about 3% of our daily potable water consumption. I have asked PUB to explore with the Ministry of the Environment the wider use of industrial water. Where feasible, we also encourage the use of sea water. Three of our power stations, three oil refineries and several other industrial and commercial organisations are already using sea water for cooling purposes. Besides conventional sources of water, PUB is also studying the feasibility of desalination. As I had explained in March, desalinated water will cost 7-8 times more than the current cost of treated water. When we will need to resort to using this expensive water will depend very much on how well Singaporeans control their water consumption. Nonetheless, we have to make the preparations now. Officers of the PUB, my Ministry and the Ministry of National Development will be visiting some countries that are already operating large-scale desalination plants to learn from their experience.”
“Sir, I had explained to the House during the Committee of Supply debate in March this year the various efforts to develop new and alternative sources of water to meet our future needs. Perhaps the Member for Hougang was absent at that session. As I had pointed out to Members, if our water consumption continues to increase at 6% per annum, we will run short of water in six years' time, ie, in the year 2001. However, even if we succeed in halving the increase in water consumption to 3% per annum, we will only be able to delay this to the year 2011 when our 1961 Water Agreement with the Malaysians expires. This is why it is so crucial that we succeed in getting every Singaporean to use water carefully and to minimise water wastage. With regard to our local water resources, the Public Utilities Board's policy is to conserve and develop them to the maximum. The constraint here is land. Already, 50% of the land area of Singapore is used as water catchment areas. PUB has studied and implemented all feasible schemes to exploit local water sources. For instance, it has built storm water collection schemes in developed areas like Ang Mo Kio, Bedok, Tampines and Yishun. Rain water is also collected from the developed areas in Kranji, Pandan and the non-industrial areas in western Singapore. PUB has also considered creating additional reservoirs, for example, by damming up the sea between Pulau Ubin and the mainland. However, the problem is lack of a suitable catchment area to collect rainfall to fill the reservoir. To cut down on potable water requirements, there is an on-going effort by PUB to encourage the use of industrial water and sea water for non-potable purposes. Today, industries use about 7 million gallons of industrial water a day for cooling and washing.”
“Sir, because they are going to be structured as separate independent companies with the managements measured by how they perform, I am sure there will be some rivalry and they will then compete to show that one is better than the other. But in any case, we will have the regulator sitting at the back, making sure that the tariff increases in the coming years will continue to be reasonable. Dr Ow Chin Hock: Sir, allow me to make two points of clarification. First, on the CPI for different income groups. I know the Household Expenditure Survey was completed in September 1993. I was referring to the delay of 18 months after the survey data were collected, and not the time period needed for the survey. Second, I support both the petrochemical and electronics clusters, otherwise I would not have helped MTI to officiate at some trade exhibitions and other functions. But the point is that, with 39% of our manufacturing value-added in electronics, what happens if there is a worldwide industrial downturn or restructuring? Our manufacturing sector and even our economy will be affected. I was asking for diversification of manufacturing activities so as to reduce the relative weight of the electronics industry and not to reduce the absolute scale of the industry. Finally, I would like to persuade Mr Chiam to look at the water consumption with a long-term perspective. Sir, I am sure that you will be around by the year 2011 but some of us may not be around in this world. But we owe it to our children, our grandchildren and Singaporeans of future generations to ensure that they have adequate water supply then. This can only be done by taking action now. No responsible government should allow its people to go thirsty. Sir, with that, I beg leave to withdraw my amendment.”
“Sir, before embarking on the exercise, we have consulted professionals in this area and they have assured us that a two-gigawatt power generation company would be very commercially viable. In fact, a lot of the new power stations are a lot smaller than that. His second question is ---”
“Sir, forecasting is more an art than a science, and that is why there are so many econometric models as there are economists. My apologies to all the economists here. There are so many economic variables affecting the economy that no model can adequately capture all of them. The other complication facing Singapore is that we are such a small and open economy that we are very vulnerable to changes in the external environment which are outside our control. Sir, MTI recognises these problems. We also recognise the need to provide as much information as possible to the business sector to help them to plan ahead. We therefore try to combine inputs from as many sources as possible, including the feedback from industrialists and businessmen. Our forecasts at any one time represent the result of all available information and assessment up to that time. As we get more information, we do refine our forecasts and narrow the range. We cannot do better than that except with the benefit of hindsight. Sir, our forecast has also been borne out because comparison with forecast by other research organisations in Singapore shows that their range is very similar to the range that we came up with.”
“With that experience behind us, we should be able to handle the administrative aspects of the SPG flotation and avoid many of the problems encountered by the public during the ST flotation. I would now like to ask my Minister of State to reply to the other questions.”
“However, as there will always be limited players in the electricity industry, we will also need to ensure that the interests of consumers with regard to pricing, performance standards, security and reliability of supply are safeguarded. This will be achieved by having the remaining PUB assume the role of the regulator responsible for licensing and regulating the electricity industry. The regulator will set the performance and service standards to ensure that the electricity companies provide an adequate quality of supply and service to its customers. The regulator will also ensure that our present electricity needs are met and that future capacity is planned ahead of demand and installed in a timely manner. He has asked what lessons we have learnt from the Singapore Telecom (ST) flotation. Sir, a key lesson we have learnt is that it is important for the Government to have clear rules and policies to allow competition in the industry before privatising a public monopoly. Once statutory boards are privatised as companies, they have additional responsibilities to their shareholders and it is natural for them to compete like any other companies. Wherever the nature of the industry permits, we should allow other companies entry into the industry on clear rules to provide competition as the means of ensuring efficiency in the industry. Having clear rules worked out well before privatisation will ensure that there is no uncertainty in the minds of potential entrants into the market or investors in SPG or other companies. SPG will therefore not have any monopolistic powers when it is listed. Members will also recall that when the ST flotation was launched, that was the first time that such a massive number of investors were involved.”
“Time is running short. Let me reply to Mr Chew Heng Ching on the PUB privatisation because it is quite important. Sir, the PUB privatisation is part of the Government's plan to enhance the assets of Singaporeans by giving Singaporeans a share in the country's wealth. Like in the Singapore Telecom flotation, we will have a scheme for Singaporeans to buy shares in the PUB successor company. With the privatisation, PUB can then also become more flexible in its management and they will be free to participate in overseas ventures. Sir, the PUB's Electricity and Gas Departments are scheduled to be corporatised by September this year, as the Singapore Power and Gas (SPG) company. We expect to list SPG around the middle of 1996, ie, next year. SPG will be a holding company, with five operating companies under it, namely, two power generating companies, a transmission and distribution company, an electricity supply company, and a gas company. Sir, this structure will allow the Government to introduce competition in electricity generation and supply progressively over the next few years while at the same time enable SPG to tap the combined resources of its subsidiaries for going overseas. There is no need to introduce competition for PUB's piped gas operations as there is already competition from bottled LPG. With the restructuring, the two SPG power generation subsidiaries will operate independently of each other. They will compete by introducing innovative processes and becoming even more efficient. The transmission and distribution business is a natural monopoly. Separating this business from SPG's power generating and supply businesses will enable competition to be introduced and to develop in the coming years when more power generating capacity will be needed.”
“We have got to persuade them, cajole them to use water carefully, to conserve water, and not to waste it. We have got to get them to change their personal habits at home, at work, at the family level, and we also need to get companies to conserve water more aggressively. Our aim is to get the overall consumption reduced to a growth rate of 3% a year. And even then if we succeed at doing that, the water supply will run short by the year 2009 before the expiry of the first treaty. Sir, but I am glad that in the midst of all that, he did make a sensible point, and that is, to be effective in getting Singaporeans to conserve water, we need the combination of both education and penalties, and that is what the Government is doing.”
“Secondly, the amount of water supplied to us is governed by the two treaties, ie, 86 mgd for the first treaty, 250 mgd for the second treaty, and even though there may be greater supply available, that is our limit. Sir, he is also wrong that we can afford to wait. We cannot afford to wait. At the consumption growth rate of 6.5%, we will run out of water very quickly. In fact, at 6% we will run out of water by the year 2001, six years' time. And I can tell you six years will go by without you even noticing it. Sir, a long lead time is involved in sourcing for water. Even if our neighbours agree to supply us with more water, it will take time to negotiate the terms and it will take time, many years, to build the reservoirs, to build the treatment plants and to install the needed water pipelines, and this is not something which you accomplish in one, two, even three years. And building a desalting plant, this is within our own prerogative and within our own capability. Even that will take many years, because we need to study carefully all the different alternatives that are available, whether it be desalination, whether it be reverse osmosis, or any other alternative process. We need to see what is the experience of the countries that are actually operating those processes. After that, once we have decided on which process to use, we need to get the consultants to design the plants, to tender for the manufacture and supply. All these again would take many years. So if we do not sound the alarm bells now when potentially water will run out in six years' time, when do we sound the alarm? Six years' time when water rationing is being introduced? Sir, we must quickly get Singaporeans to treat water seriously.”
“Because with rising incomes come a higher standard of living, which means washing machines, cars, bigger flats to look after and all these tend to consume more water. 1.15 pm Sir, as to the Member's point on supply, we do not have any empirical information on this. But I would guess that if supply were to be abundant, then demand would rise provided the price remains low. This is because if supply is unlimited, then consumers will be less inclined to treat water as a precious item and to be more careful about the use of water. Let me move on to Mr Chiam See Tong's remarks about the increase in the water conservation tax. Mr Chiam has stated that the water conservation tax increase was not warranted because there is no shortage of water at the present moment. I was really amazed to hear him say that. Our two water treaties with Malaysia provide for a total of 336 million gallons of water per day until the year 2011. So based on that, since this exceeds our present consumption, Mr Chiam says there is no need for us to worry. There is an over-supply. There is no need to sound the alarm bells. Sir, I suppose he is suggesting that we wait until the year 2011. And even then he said the Linggiu Dam contains enough water to last two years of our usage. So why should we worry, because we can increase the water supply from the Linggiu Dam? Sir, he is wrong in both respects. Firstly, Linggiu reservoir's storage capacity is large, no doubt. But the reservoir is meant to regulate the flow of water in the Johor River from where we extract our water. We do not draw our water directly from Linggiu reservoir.”
“I would like to take this opportunity to announce to the House that I have set up a multi-agency task force to look into the strategic reorganisation of productivity and quality efforts currently undertaken by the National Productivity Board, SISIR and the EDB. Mr Goh Chee Wee, Minister of State for Trade and Industry, will head the task force and he expects to complete this review by the end of July this year. Let me move on to the last item, which is water. My Minister of State would answer all the other items. Dr Ow asked whether water consumption varies with price, income level and supply. The empirical data from the PUB suggest that water consumption is price elastic only when the tariff increase is substantial. For instance, when the water tariffs were increased by a hefty 36% in February 1973, the water consumption growth rate dropped from 7.9% in 1972 to minus 0.7% in 1973, ie, the total consumption actually shrank. It shrank further in 1974 by 0.4%. In 1975, the effect wore off and water consumption growth rate jumped to 7.8%. But this was brought down 2.5% in 1976 when a 40% tariff increase was imposed in September 1975. Sir, recent tariff increases which have been much smaller in quantum have been less effective in lowering the growth rate of water consumption. Last year, despite the water tariff increase of about 6% in 1993, the water consumption growth rate increased by 6.5% in 1994. Water consumption also appears to vary with size and the income of the household. The average water consumption per account is about 12-15 cubic metres for 1-and 2-room HDB flats. It is about 20-21 cubic metres for the 3-, 4- and 5-room flats and about 22-54 cubic metres for private housing. I suppose it is hardly surprising, as water consumption rises with incomes.”
“It is therefore a more stringent measure of productivity than the conventional labour productivity measure, as it prevents heavy capital investments from masking our inefficiency or inability to absorb new technology. Dr Ow asked for the sources of the 5.3% labour productivity growth in 1994. Sir, of the 5.3% growth, 3.3% came from TFP improvements while the remaining 2% came from an increase in the capital/labour ratio. Dr Ow has also asked if the efficiency of using capital has improved. I am happy to state that the efficiency of using both labour and capital has indeed improved. This is shown by the improving TFP performance over the recent years. I will give some data. The average TFP growth rates for the period 1974 to 1980 was minus 2.1%. For 1980 to 1986, it improved to minus 0.8%. From 1986 to 1994, the TFP improved to 2.6%. I agree with Mr Chay that it is important for us to monitor TFP. He may be pleased to know that since 1990 the NPB has been publishing TFP growth rates in its annual productivity and quality statements. As for his suggestion to construct TFP indices at the sectoral and industry level, we currently do not have the detailed data on the sectoral distribution of our capital stock to do so. However, as TFP is meant to be a macro-economic indicator to assess productivity performance over the medium to long term, an aggregate index should be sufficient. This is the practice in most countries. Sir, as our economy develops, it is critical for us to seek greater qualitative improvements as opposed to sheer expansion in inputs. Such qualitative improvements have to come from coordinated efforts by all relevant Government agencies.”
“I believe the introduction of a cooling-off period would actually create more problems than it solves. The experience of many other countries has shown that this frequently leads to abuse by unscrupulous consumers who are known to use the cooling-off period to utilise the item to the full extent and, just before the expiry of the cooling-off period, return the item back. Many companies are now faced with tremendous inventory of such returned products. This ends up incurring a tremendous cost for the retailers. Eventually, such costs must be passed back to the consumers. So I do not think it would benefit consumers generally. My preference is to avoid over regulation in the area of consumer protection as such legislation often ends up adding costs rather than benefits. We should only intervene in areas where the general interest of the population is at stake, namely, in the area of safety and health. I believe that the key to this problem is education. We need to educate the consumers so that they know what is their right. In this respect, the recent newspaper reports have played a role in helping the consumers to be aware that their final right is to say no to the direct salesman. Mr Chay has touched on the Total Factor Productivity (TFP) index and Dr Ow Chin Hock has asked what are some of the components of our productivity increase. Sir, labour productivity is measured as value-added per worker. This is the usual measurement that MTI uses and it is a practice that is adopted by most countries. The TFP, as mentioned by Mr Chay, is another measurement of productivity. TFP measures the increase in output which cannot be attributed to increases in the amount of labour and capital used.”
“What my Ministry would do would be to liaise closely with the relevant retailers association that Mr Chew has mentioned. We will work with them to get their feedback and, more importantly, to get from them their suggestions as to how we can assist them. We will then look into how we can assist them further. Sir, Mr Koo Tsai Kee touched on direct sales. He mentioned the recent case of Kirby vacuum cleaners and the instances where home-owners and their families have been harassed by sales persons. Sir, I would like to highlight that measures actually do exist now that will allow consumers to deal with persistent direct sellers. At the most basic level, as a property owner, a consumer has the absolute legal right to turn away a salesman from his home. If the consumer encounters persistent harassment by a particular salesman and he is under no obligation to purchase a product from him or from the company, the consumer can always seek the assistance of the police to have the salesman removed from his home. If the salesman resorts to abusive language and to harassment and threats in the course of the discussion, the consumer should always call the police to intervene. In extreme cases, the salesman can be charged in court for public disorder and nuisance. Sir, if the direct seller makes a sale on the basis of a misrepresentation, our law still provides the consumer with a recourse in the event that the product purchased does not match the representation promised in the sales agreement. The consumer can pursue his case before the Small Claims Tribunal. I understand there are plans underway to raise the limit for the Small Claims Tribunal to $5,000. Sir, he has asked whether we would back a cooling-off period.”
“Therefore, the older establishments tend to feel the impact even more. Also, there are now new suburban centres. They are within the HDB estates and nearer to the homes and, in many cases, they are near the MRT stations. So the new suburban shopping centres have been very attractive and very convenient. They have been able to draw away business from not just the other older establishments but also from the urban shopping centres. Another impact is that the tourist spendings have gone down. In 1990, the average tourist spent $760 while staying in Singapore. In 1993, this declined to $523. In 1994, we have seen a slight upturn to $531, an increase of $8 per tourist. This trend in tourist spending reflects a few developments. Firstly, the slow economic growth in the developed countries and the tourists from the developed countries do make up a significant portion of the tourists coming into Singapore. Secondly, in our key tourist markets of Taiwan, Japan and various other countries, the import tariffs have been reduced in recent years. So that has closed the price gap between what is available in Singapore and what is available in their country. Thirdly, the ASEAN countries which again comprise a key tourism market for us. The ASEAN countries have in recent years also been developing their own very modern shopping complexes with a wide range of products available. This has also reduced the need for our ASEAN visitors to do as much shopping here as they did before. Sir, the problem, as Mr Chew had mentioned, is no longer a cyclical one. It is a structural one. However, most of the problems have already been identified and therefore I do not see the need to set up a task force.”
“This is something which we welcome very much because the Government's intention has always been for the private sector to drive the R&D in Singapore and the Government only acts as a catalyst and a facilitator. By having the private sector drive R&D and fund it mainly, this will ensure that the R&D spendings are spent in areas which are economically relevant. Sir, we will continue to monitor the R&D spendings and we are now in the process of working out some measurement indicators which will give us an indication of how well the R&D expenditures are being made. But I would like to just give one example of the R&D project which the Government is working with the private sector, and this is with Siemens. The Institute of Micro Electronics and Siemens are collaborating on a manufacturing process project, ie, a project to upgrade the manufacturing processes in Siemens. Siemens has estimated that the cost benefits of this project are potentially very significant and it has the potential of helping Siemens to achieve cost savings of up to 50% in certain areas. 1.00 pm Mr Chew Heng Ching touched on the retail area. He has highlighted the relevant problems faced by the retail sector. So I will not go over them again. But I will elaborate on a few key points. One key factor is the increase in retail space. Retail space increased by 12% in 1993 compared to a retail turnover increase of only 2.7%. So in 1993 there was a tremendous supply of space compared to the increase in volume of retail sales. In 1994, retail space increased by 4.3%, again higher than the increase in retail sales of 3.5% last year. What is also significant is that the new complexes tend to be more popular with the shoppers. They end up drawing business from the older establishments.”
“So they have been able to benefit from that process, but others that have not been able to upgrade and to automate have felt the impact of the higher labour cost. It is also true that product cycles are getting shorter and competition is definitely getting keener. For example, in the electronics sector which grew by 22%, all the PC manufacturers face tremendous price pressures, and many have had to reduce their profit margins. Similarly, severe competition and declining margins were also experienced by our disk drive manufacturers and all these are giants on the global manufacturing market. Sir, the shorter product cycles, the growing competition, these are factors which will remain with us. There is no way that we can avoid them. We will have to meet them head on. The approach that we must take is to continue to invest in R&D and to move into higher value added activities - activities where because of the skills or the capabilities available here, Singapore companies will have a competitive advantage. The Government will continue to work with our private sector to help them to upgrade. We will help them to improve on the capability factors and to help them to develop core competency. This will be done through the NPB, EDB, SISIR as well as through the National Science and Technology Board. Mr Chay has touched on R&D spending and has asked whether the Government could provide information as to how effectively are the R&D funds spent. The total R&D expenditure as reported comprises expenditures by the private sector directly, by our research institutions, by our universities and by various Government departments. For 1993, about $600 million or 60% was actually provided by the companies themselves.”