Yeo Ning Hong
Singapore
“The SAF always reviews and enhances its training system to maximise the contributions of NSFs to national defence during their NSF stint. We will continue to ensure that the training syllabus is relevant to the defence needs of Singapore, and NSFs' time in the SAF used meaningfully and efficiently.”
“New recruits will find military training less onerous if they take on the personal responsibility of preparing themselves well physically before enlistment. AUCTION OF #03-06 PEK CHUAN BUILDING 6.”
“Sir, on a point of clarification. I believe Dr Ahmad Mattar had earlier on attributed some comments to me. I just want to clarify that I am not waiting for July to have my views on SBC made known to the Minister for Information and the Arts.”
“Sir, to encourage the new NSmen to maintain the same physical fitness that they have achieved while they were in full-time National Service, Mindef will increase the IPPT pass standards for new NSmen who ROD on or after 1st April to the same level that they attained when they were NSF.”
“Sir, I do not think Mr Chiam has any clue whatsoever about what is involved in basic military training. It is not fitness. It is the acquiring of basic military skills, to know how to fight, to know how to ensure that you do not get killed.”
“Sir, Mr Chiam would make a most popular Member of Parliament in Kuwait - if only they had a Parliament in Kuwait. That is exactly the sort of situation that had brought the Kuwaitis the disaster they had a year and a half ago, when people are only interested in having a better life and are not prepared to make the effort to ensure that th…”
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Every one of 853 lines we hold for Yeo Ning Hong, in date order, each linked to its source. Free to read, in full, without an account. Page 3 of 18.
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill is to enable Singapore to accede to the International Convention for the Prevention of Pollution from Ships, 1970, as modified by the Protocol of 1978 relating thereto. This Convention is generally known as the MARPOL Convention. The MARPOL Convention specifies measures to prevent deliberate, negligent or accidental discharge of oil or other harmful substances from ships into the marine environment. Acceptance of the MARPOL Convention will be consistent with our policy of adopting international standards for shipping and will therefore enhance the image of the Singapore flag. It will contribute towards improving the quality of the merchant fleet registered in Singapore by raising pollution prevention and safety standards. It will also help the clearance of Singapore ships in foreign ports because certificates issued to them under the Convention will be accepted by foreign authorities. Enforcing the provisions of the Convention on ships calling at our port will reduce pollution from these ships and contribute to cleaner port waters. Sir, the Bill will also repeal the Prevention of Pollution of the Sea Act (Cap 243) which has become largely outdated. The bulk of the provisions of the Bill are for the implementation of the MARPOL Convention. The remaining provisions cater to certain aspects of the prevention of pollution of Singapore waters which are not directly within the ambit of the MARPOL Convention and for the recovery of costs for removing pollutants. Consultations, Sir, have been held with the shipping, marine, petroleum, and petrochemical industries, and their inputs have been taken into consideration in drafting the Bill. This Bill is divided into six parts.”
“Sir, quota squares up with the free enterprise very simply. In any given year, there is a certain amount of rice produced worldwide. So it is fixed and the free market will decide how much you want to pay for the rice. In any given year, there are only so many kilometres of roads that we are going to put on. If we set off with the basic assumption that we do not want our roads to be over-congested, then the number of vehicles that we allow will have to be fixed. There is nothing incompatible with a given supply and allowing the market to determine what the price for that particular resource should be. 'HALF-TANK' RULE (Relaxation) 9. Mr Chng Hee Kok asked the Minister for Finance if he will relax the `half-tank' rule so that oil companies do not have a protected market.”
“Sir, the allocations were arrived at based on last year's distribution of vehicles in the different categories and their growth. If we follow the argument of Dr Wang and take it seriously, and that just because the luxury cars have got a lower quota premium compared with the big cars, that figure is therefore too generous, we should, therefore, reduce it. If we take that kind of argument to its logical conclusion, then we must also cut down very sharply on the number of motor-cycles because the quota premium for motor-cycles is very, very low. If we follow Dr Wang's logic, then the conclusion is that we have given too large a number for motor-cycles and, therefore, we should cut it down. In effect, we should allow only one single class of vehicles and let everybody bid for that one single category and have only one Premium.”
“Sir, I do not want to take up too much time because there are other Members who have got various questions to be answered. So let me answer briefly. It is not so much the cost of a COE per se that the buyer of a car is interested in. The buyer of a car is interested in the total sum of money that he has got to pay to own a car. So when there are other taxes which are relatively high, the COE may on certain occasions be a little lower than the premium in another category. But we also have to bear in mind that the OMV of vehicles are coming down, the ARF is being lowered, the anticipation of end-of-year demand. These are some of the factors which affect the amount of money that potential car buyers are willing to bid for the COE. The cost of a COE is determined by the market. It is not determined by the Ministry. And we should allow the potential car buyers to decide for themselves how much they are willing to pay for the COE.”
“Sir, the Member has said that the people who could afford pay less in terms of taxes. I think if you take a look at the various schemes that are currently in place, it need not necessarily be true that people buying bigger cars are paying less in terms of total taxes paid, because the ARF, the road taxes, etc are much higher.”
“Sir, I thank the Member for obviously supporting the position of the Government in allowing transferability of TCOEs. I believe it is the Minister for Finance, who is responsible for matters on collection of duty. I will ask the Minister for Finance to arrange for his officials to have a look at it.”
“Sir, if the Member could be a little more specific on the measures that prevent the operation of free market in Singapore, I am sure the appropriate Minister will take up his suggestion, and will ask the officials to have a look at them. Mr Heng Chiang Meng rose ---”
“Sir, I have no doubt that the Commissioner for Inland Revenue knows how to look out for people who are not making the appropriate reports of profits made.”
“Sir, it is a very long jump from the quota for the number of cars allowed on the very limited roads that we have in Singapore to the cartel that the OPEC has. I wish OPEC will allow people all over the world to tender for oil that they have, rather than squeeze the consumers worldwide by attempting to fix an artificially high rate and turning down the supply of oil. Sir, we allow a quota because we know the rate at which we are building roads in Singapore. And knowing that, if we allow unrestrained growth in the number of vehicles in Singapore, we are going to end up like all the other major cities in the world where people have cars, but cars do not move. That is not we think will contribute to the growth of our economy and to a better quality of life for Singaporeans.”
“Sir, I do not have the figures with me at the moment. I believe they had been given in reply to questions in the press sometime back.”
“Sir, Dr Wang is a specialist in computers. I am sure his arithmetic is correct if he puts the correct numbers in. But, first of all, where did he get the numbers which he had begun with, as far as the transfer prices are concerned? Sir, I said a moment ago that the resale of the COEs is something between individuals. We do not have the numbers. We do not know exactly what they are transacted at.”
“The Member has asked a number of questions and also made a number of assumptions. I will try and take them as they come. Sir, I did say in my reply earlier on that the scheme had met the objectives that we set out, namely, to restrain the growth of vehicles. So, yes, the scheme has worked out well. Secondly, whether the speculators, as have been called by the media and also by some other people, have made a lot of money, I have mentioned earlier that the ROV is not privy to, or does not know, what the transaction prices are. These are private transactions between individuals. I think many people have made a number of guesses. Whether those guesses represent the actual transacted prices, it is not possible for ROV to know. It is like people claiming that they sold their flat or their house for so many thousand dollars. It is not provable unless you are prepared to go and ask the individuals concerned. Thirdly, the Member said that I advised people not to speculate. That is true, Sir. I advised Singaporeans not to speculate, because those who are familiar with speculations know that in the long run, speculators inevitably get their fingers burnt. There has been a lot of research done overseas where people speculate in money, in gold, in rubber, in wheat, in pork belly. And the established conclusion is that most speculators end up getting their fingers burnt. Sure, it is true sometimes speculators get short runs of good luck, and those are the occasions when they make money. But in the long term, speculators get their fingers burnt, and it is in that context that I advised Singaporeans not to try speculation.”
“Sir, the quota system has been in place for the last four months. It has worked well. It has served its fundamental objective, which is to restrain the growth of cars. My Ministry will continue to monitor the operation of the system and, where necessary, we will make the appropriate changes in due course.”
“Do we require consumers to buy shoes from the manufacturers directly? The answer is no. Similarly, we allow the resale of cars between private individuals in private transactions. We allow the sale of cars through second-hand car dealers. We cannot effectively stop transferability of TCOEs unless we also prohibit the resale of cars among individuals or through second-hand car dealers. Therefore, to compel every car buyer to get a COE directly from ROV only is impractical. Sir, Dr Wang has also asked about the price between the buyers and sellers. The prices of COEs on the secondary market, are private transactions between willing buyers and willing sellers, and ROV is not privy to such information. The unhappiness about the quota system centred round two main complaints. Often these two complaints are levelled together by the same individual or in the same newspaper article or editorial or the same consumer or motoring group. What are these two complaints? First, they complained that the quota premiums are too high, in other words, higher than what the bona fide buyer is prepared to pay and that this is a result of speculation made possible by transferability. Second, they complained that the speculators, people who resell their COEs, are making a lot of money by selling the COEs at a higher price. Sir, those who made these two complaints missed the fact that if they look at these two complaints objectively, the two complaints are contradictory. If the quota premiums are too high, higher than what bona fide buyers are willing to pay, then how can the speculators resell their COEs for a profit and make a lot of money? And if the people who resell their COEs, indeed, do make a lot of money, how can the premiums be too high?”
“The quota system has been in operation for the past four months since 1st May 1990. It has provided us with effective control over the growth of vehicles in Singapore. Based on feedback from the public, my Ministry has made two minor adjustments. Effective 1st July, 1990, tenders are held monthly instead of quarterly, and the temporary Certificate of Entitlement (TCOE) is now valid for three months instead of the previous six. Overall, the number of bids has come down from 21,700 in April to 14,900 in July and then further down to 9,700 in August. Sir, the TCOEs are made transferable for a simple reason -to enable those who did not tender or were unsuccessful in the tender to obtain a COE from the secondary market. Transferability, in other words, buying and selling, is the basis of a free market. It allows market forces to arrive at the best assessment of current values of economic resources. That way, it provides for their efficient and effective distribution. The transfer price between a willing seller and a willing buyer reflects the market value. Of course, the market values of goods and services vary with time and circumstances. Such changes occasionally can be sharp and sudden. Sir, there has been some interest among the public on the issue of the transferability of COEs. So let me take a little time and explain it as simply as possible. Let me illustrate how transferability works in our daily lives. Each day, we use or consume hundreds of items which we buy, not directly from the original producers, but from supermarkets, shops and hawker stalls, which in turn buy and sell these items freely. For example, do we require consumers to buy rice from the farmers directly? Do we require consumers to buy fish from the fishermen directly?”
“Sir, the next two questions are inter-related. May I, with your permission, answer them together?”
“Sir, we have looked at a number of companies. It is not proper to name the companies that Telecom has looked at and has decided not to go into partnership with. HDB RENTAL/PURCHASED FLATS (Income ceilings) 3. Dr S. Vasoo asked the Minister for National Development whether the income ceilings set for the application for Housing and Development Board rental or purchased flats will be reviewed.”
“Sir, the expertise in CEI gives Telecom the best fit and it gives Telecom the greatest confidence that the project can be handled within cost and within schedule.”
“Sir, the Member is obviously not aware of what is going on. It is not the technology of Marconi that we are interested. It is the expertise. We had done this job ourselves. Telecom has completed the development of the Teleview system. The system is likely to be much better than systems available elsewhere in the world. We could have done it all by ourselves if we so wish. But it would probably take us a few more years, by which time it may be superseded by new technology. So when you are working in a high-tech industry, you have to move quickly. And rather than go out and recruit a very large number of research engineers into Telecom to funnel them into this particular project so that we can bring the project to fruition as quickly as possible, Telecom does what is most natural, which is to scout around to see where talent in this field is. We found it in CEI. That is how the project has progressed the way it did. So we are able to launch the Teleview system soon. There will be three ways of accessing the Teleview system. Firstly, through the Marconi-built Teleview dedicated terminal. In other words, that terminal can only access Teleview and nothing else. Secondly, we are working together with CEI to come out with an intelligent Teleview terminal which will modify the previous terminal to give it the capabilities of a Personal Computer. Thirdly, for members of the public who have already got a PC, what Telecom and CEI are doing is to develop new hardware and software which can adapt the owner's own PC to access Teleview.”
“Sir, I do not understand the Member's question. As far as I see it, and as my colleague, the Second Minister for Defence (Services) has mentioned a moment ago, a Government-owned company is as much a part of the private sector and the engine of growth. Just because the ownership is in the hands of the Finance Minister does not make that contributive of company any less important. If the company were to be sold tomorrow, it does not make one bit of a difference to the economy of Singapore. What is important is that they are able to be competitive. If Telecom had found another partner in Singapore, Telecom would have been just as happy working with that other company, developing the intelligent terminal. And then as part of the contract, to tie up with the manufacture of that particular terminal. Sir, we have been working together with a British company for a long time producing the Mark I terminal. The Member has not been unhappy with that all this time. We are now developing with Marconi the Mark II terminal. The Member has not been uncomfortable with that at all. So I do not understand why the Member should be uncomfortable now that we are developing a terminal with a local company, Chartered Electronics Industries.”
“Sir, part of the contract for the R&D, which involves quite obviously capital investment on the part of the company itself, is for the manufacture of the terminal that will be developed. I want to emphasise to the Member that it is not a PC that is being developed. It is an intelligent Teleview terminal. Because the components have such a large overlap with that of a conventional PC, modifications have been made to the terminal so that it can function as a PC.”
“Sir, as far as research and development is concerned, it is not possible to go out with a tender and ask for participants. Therefore no such tender has been made. The engineers in Telecom are familiar with the capabilities of the different companies in Singapore, so, what Telecom has done is to approach a number of companies which may have similar capabilities with talent that may fit Telecom's R & D requirements. Telecom has looked at a number of these companies, and on the basis of the most attractive offer and the best fit with the objective of getting the Teleview system available as soon as possible, Telecom has settled on Chartered Electronics Industries.”
“Hence, the need for joint development with the different companies.”
“Mr Speaker, Sir, Telecom is not sourcing personal computers, as assumed in the Member's Question. The Member is probably referring to Teleview terminals which will be used very shortly when the Teleview system is available publicly. Sir, to keep costs down and to make the Teleview system as widely available as possible, and as soon as possible, Telecom has, instead of doing inhouse R & D and manufacturing its own terminals, decided to work together with other companies that have such capabilities. After assessing the R&D and manufacturing capabilities of a number of possible partners, Telecom has proceeded with two projects. The first is the research and development into a dedicated Teleview terminal to be used specifically for Teleview purposes. Telecom has been working with Marconi Command and Control System Ltd of the United Kingdom on this project for some years. More recently, Telecom is also developing together with Chartered Electronics Industries Pte Ltd a special Teleview terminal, an intelligent terminal, as it is called, with the ability to serve also as a personal computer. It will be a Teleview-cum-PC terminal. Such dual purpose terminals can help keep the cost of the terminal down and to make it attractive for large numbers of people to get on to the Teleview system. Telecom and the Chartered Electronics Industries Pte Ltd are also developing together other special accessories, including hardware cards and specialised software. These can be used to adapt any IBM AT or compatible personal computer to access Teleview. Sir, the Teleview system is the most advanced photo-videotext presently available. Terminals to access Teleview are not available off the shelf either in Singapore or in any other country.”
“Sir, transferability plays a useful role in the allocation of the scarce resource, namely, the certificate of entitlement to buy a car. It enables this distribution to be made more effectively. Where you have a willing buyer and a willing seller, that is the best way for the free market to work. Hence, I would prefer that we keep transferability. What we have done is to discourage speculation which results when people think they can make large profits from transferability. BILL INTRODUCED WORKMEN'S COMPENSATION (AMENDMENT) BILL "to amend the Workmen's Compensation Act (Chapter 354 of the 1985 revised edition)", presented by the Minister for Labour (Mr Lee Yock Suan); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. PRESIDENT'S ADDRESS Debate on the Address (Third Allotted Day) Order read for Resumption of Debate on Question [11th June, 1990], 'That the following Address in reply to the Speech of the President be agreed to:- "We, the Parliament of the Republic of Singapore, express our thanks to the President for the Speech which he delivered on behalf of the Government at the Opening of the Second Session of this Parliament.".' - [Mr Lew Syn Pau]. Question again proposed. 12.36 pm”
“As a consequential change, the number of vehicle entitlements available for tender would be one-third of that previously projected for the quarter August-October 1990. I have circulated a copy of the figures (Cols. 261 -262) for Members' information. figures - VEHICLE QUOTA SYSTEM (Cols. 261 - 262) The certificates issued from the tender in July will be valid from 1st August to 31st October 1990. This means that these certificates (those derived from the tender in July) will not enjoy the reduced ARF of 160% OMV because that will only be effective beginning 1st November, 1990.”
“Mr Speaker, Sir, on 26th February, 1990, I made a Ministerial Statement to Parliament where I announced the details of the vehicle quota system. I indicated then that after the quota system has been introduced, the tenders can be held monthly instead of quarterly to reduce fluctuations in tender premiums. I indicated also that with experience and feedback, we can make minor adjustments to improve the system. Sir, the first tender exercise was held in April 1990. The exercise went very smoothly. Since then, we have received much feedback from our members of the Government Parliamentary Committee on Communications and Information, Members of Parliament, the Feedback Unit and from the media. I want to thank all of them for their feedback which my Ministry has studied very carefully. Sir, today, I want to announce two minor adjustments to improve the quota system. Firstly, beginning July 1990, tenders will be held on a monthly instead of a quarterly basis. This will make it more convenient for prospective vehicle buyers. It will also minimise future fluctuations in premiums in between tenders. As a consequence of this change, the maximum number of certificates of entitlement that will be available for each authorised motor distributor will be reduced from 100 to 30 for each tender. Secondly, the validity period of the temporary certificates of entitlement will be shortened from six months to three months. This reduction will apply to new certificates issued from the first monthly tender onwards. These changes will discourage speculation on the certificates. The first monthly tender will be held in July 1990. The tender will open from 9.00 am on Monday, 2nd July 1990 and will close at 4.00 pm on Wednesday, 11th July, 1990.”
“Sir, as long as Singaporeans want to have wage increases, salary increases year by year, and as long as the service that is provided has a high labour component, sooner or later the cost of that service will have to increase. Where else does the money come from? Similarly with products that we make in Singapore. Where possible, we reduce the labour content. If we continue to use the same number of workers to produce the same product, with the same labour content but very much higher salaries and wages, then eventually the cost of the product or the cost of the service will go up. And if we are unable in Singapore to raise productivity, then sooner or later we become uncompetitive, particularly in products that we are exporting.”
“Sir, I am aware of the fact that the Member is trying to score political points by saying that he has asked for an assurance that fares will not increase, and the Minister gave the assurance that fares will not increase. Unfortunately, he will not get such political mileage this occasion. Sir, the SMRT, like the bus companies, is operated by a private company, and private companies do not come under the purview of the Ministry of Communications and Information. What we know is that the operators of the public transport system have systematically over the years ensured that they increase their productivity. And because they have increased their productivity over the years, they have operated more efficiently. Over the last many years, there had been no need whatsoever for the bus companies and the SMRT to increase their fares. But, Sir, we live in a real world, unlike the world that the Non-Constituency Member of Parliament lives in. In the real world there are increases in labour cost. In the real world energy cost does go up, off and on. What is important is that we ensure in companies in Singapore, including companies such as the public transport operators, there is systematic education of the workers to raise productivity year by year. If we carry out our education in productivity well, then we postpone for as long as possible any increases in the sale of goods or in the provision of services, in spite of the fact that the wages for workers will continue to go up year after year.”
“Sir, I am very sorry to say that Dr Lee is totally confused. I do not think he understands what the whole Bill is all about. Sir, MRTC does not operate the MRT system, which is what I have just stated a moment ago. MRTC has got nothing to do with the operation of the MRT system. It is the Singapore Mass Rapid Transit (Private) Limited that operates the system. And the Member is totally confused. I cannot make any sense out of his statements at all. Sir, the MRTC reported a deficit because MRTC will always be showing a deficit. It is an accounting procedure for reflecting the depreciation of the $5 billion that had been spent by Government in constructing the MRT system. And Government does not intend to recover the capital cost. So the MRTC will continue to be showing a negative figure for many, many more years to come, and it has got nothing to do with MRT fares at all.”
“It carries more than half a million passengers each day. The safety of passengers is paramount and every effort must be made to deter any attempt to destroy or to damage the railway system. Even if damage is detected in time, pending repair, disruption to services will result in very severe inconvenience to the public. It is therefore essential that a severe penalty should be imposed to serve as an effective deterrent. The penalty for such an offence will be a maximum fine of up to $200,000 or an imprisonment of up to one year or both. The offender will also be liable to pay compensation to the MRTC for the damage that he has done and the compensation shall be recoverable by civil action or suit before any court of competent jurisdiction. The proposed penalties are similar to the penalties provided under the Public Utilities Act for damage to electricity cables belonging to the Public Utilities Board. Sir, I beg to move. Question proposed.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, this Bill seeks to amend the Mass Rapid Transit Corporation Act (Chapter 172) to facilitate the performance of the Mass Rapid Transit Corporation's statutory functions in the light of the Singapore Mass Rapid Transit Limited's experience in operating the MRT system over the past two years. I shall now highlight some of the major amendments. Section 25 of the present Act requires the Corporation to ensure that the revenue is sufficient to meet operating expenses. This obligation, however, would not be appropriate when the Corporation is not operating the MRT system as it is today. At the moment, SMRT, which is Singapore Mass Rapid Transit (Private) Limited, pays MRTC, the statutory board, only a nominal licence fee for the use of the entire MRT system. This way, fares for MRT have been kept low for our commuters. Clause 2 of the Bill therefore seeks to amend the Act to provide that the obligation to ensure that revenue is sufficient to meet operating expenses will only apply to the Corporation when it is operating the MRT system. Clause 3 provides for a time limit for an owner, whose land has been affected by the laying and the construction of the MRT system, to require MRTC to purchase the land if he so wishes. At present, there is no time limit. This means that MRTC has to put aside a very large sum of money for an indefinite period of time in order to pay the land owners should they require MRTC to purchase their land at any future date. This obviously is not a practical approach. Clause 6 makes it an offence for any person who wilfully commits any act which destroys or damages the railway or railway infrastructure and premises. The MRT is a mass transport system.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates for the financial year 1990/91, and ask leave to sit again tomorrow.”
“I want to clarify this because I do not want Members to have any misunderstanding. Marina Bay was built for the purposes of enabling the trains on the North South line to turn around. Of course, the station would also serve future development in Marina South.”
“Sir, we are aware of the noise. It is the nature of moving vehicles to make noise. MRTC will make every effort to minimise the noise. It will systematically monitor the situation, grind the wheels, make the rails smooth, keep the friction low, and keep the noise level down. And indeed there has been significant improvement. We have been able to bring the noise level down from about 82 decibels, down to about 77. And that, in simple words, is a sharp drop in noise level. We will make every effort to keep it down. Sir, I want to thank Mr Teo and Mr Goh for giving the Ministry a lot of reasons why we should build the MRT extension lines. The reasons are very good and very valid. But, unfortunately, the Mass Rapid Transit system is a very, very capital intensive and high cost operation. Unless and until there is a sufficient volume of traffic to meet, not the cost of capital expenditure, to meet the operating cost, it would not be viable to construct any extension route. Otherwise, passengers in other places having nothing to do with these two routes, will end up having to bear the burden on behalf of people in these areas. But I have already stated that the Government has accepted in principle the building of the north east line. Indeed, I have gone further. I have said that the Government will build MRT lines all over Singapore. But this is the long term. We are not talking about the short term. And as soon as we are able to get a viable number mass of flats along a particular line to justify the operating cost of that line, we will build it. The latest indications are that the first of such lines to be proceeded with would be the Woodlands line rather than the north east line or the Changi line. Sir, the Member has mentioned Marina Bay.”
“Sir, I know that we have exceeded our guillotine time. I want to thank you for your graciousness in permitting me to respond. Let me be very brief. Sir, I sympathise with the Member for Aljunied GRC for bringing to our attention the fact that some of his residents find the MRT trains noisy. This is not the first time we have heard of it. Each time an MRT goes to a particular area, the first few months or so, we get a fair number of complaints. But fortunately the pattern has been that the complaints subsided over a period of months. For example, in Tampines, we had 23 complaints in December. By March, there were no more complaints. Aljunied, 14 complaints in October. No more complaints in March. Eunos, 14 complaints in October. No more complaints in March. An hon. Member: All gave up!”
“We had a total of more than 330 companies from 26 countries participating in the conference. We have to continue to press forward, to achieve greater heights of excellence and efficiency, and then pass on all these cost savings to our customers, and keep our rates low and therefore competitive.”
“Such telecommunication facilities enable rapid exchange of information and enhances our efficiency as an important distribution centre. We want to encourage other ports in the region to participate also in Electronic Data Interchange (EDI). But it will take some time for other ports to achieve the same level of computerisation and hence compatibility with our database. Every effort will be made to encourage such development in the region. Mr Yatiman also asked who our competitors are, in port management and in the distribution of cargo. In effect, in today's world of streamlined sea trnsportation, every port within a very large region competes one with another. We are competing with ports like Hong Kong, Kaoshuing, Klang, and Colombo, indeed every port in the entire Asian region. Sea communication has reached to a point where it is no longer cost effective for a large modern container ship to call at a large number of ports. Every time a ship gets into port, the ship is not making money. A ship makes money only when it is on the move. What has evolved over the years is a trend towards few port calls by very large containers. It is important, regardless of who our competitors are, that Singapore maintains its premier position as a key port in this part of the world. This we strive to do. PSA sends out regularly overseas promotion missions, to reach out to our customers, to keep in touch with them, to update them on the latest developments on our infrastructure to get to know their needs, their requirements and to ensure that we are in the best possible position to service the needs of our customers. We also have regular exhibitions and seminars held in Singapore, the latest of these is the Singa Port 90 Conference and Exhibition organized by PSA.”
“Sir, I want to thank the Member for his interest in distriparks and in the Port of Singapore Authority. For 1989, Singapore was able to maintain its position as the world's busiest port for the fourth time in a row. We have a total of 430 million gross metric tonnes of shipping calling at our port. We need to build upon this achievement by ensuring that the ancillary services of the port are also kept up to date with adequate investments in infrastructure. At the moment, the PSA has two major distriparks in Pasir Panjang and Alexandra. Together, they have a total of 317,000 square metres of covered warehouse space. This is approximately 16% of the total warehouse space in Singapore. With its proximity to the port, these distriparks are extremely valuable for transit cargoes which comes into Singapore on one container ship, and then leave on by another container ship a few days later. These distriparks enjoy almost full occupancy. That means we have to build more distriparks. We intend to construct a major centre costing some $52 million, next to the present Pasir Panjang Terminal. This will be a 3-storey building making full use of the limited land that we have. It is expected to be completed some time at the end of the year and it would add another 50,000 square metres of warehousing and office space. Sir, Mr Yatiman also asked also whether our information network is adequate. We are fully computerised in the PSA, in our distriparks. This ensures that there is rapid exchange of information between the port, the warehouses, the distriparks and the users of these services. We are also linked via electronic data interchange with a number of other ports in the world, eg, with Bremen in West Germany.”
“Sir, surcharge is meant to discourage those with old cars from keeping their cars beyond a reasonable lifespan. Owners should maintain their vehicles whether or not there is a surcharge.”
“The old vehicles are included in the 500,000. They are part of the total number of vehicles on our roads. Sir, Mr Choo asked whether we could remove the 10% surcharge for old vehicles. We have gone through this many, many times. I have provided the figures of failures at the first inspection. I have also asked my Ministry to arrange for the detailed figures to be sent to the newspapers and they have published the figures. We do have some fairly old cars that are really not very satisfactory. Half of them, in fact, are unable to pass the first test. Mr Choo says that since they have passed, they should be all right. No, it is not so simple. The inspection standard represent only the minimum standards. What is important is to ensure that people who want to keep old cars should maintain their vehicles well. The more we have of such old vehicles, which are poorly maintained, on our roads, the more likely it is we are going to add to pollution, to breakdowns, and to accidents. What we are trying to do is to contain the problem of rapid increases of old vehicles from getting out of hand. Over the last three years, such vehicles have grown by 70%. That is a very dramatic increase. So let us bring the numbers down to something reasonable. Then we can look at how we can encourage owners of old vehicles to pay a little more attention to maintaining their vehicles so that they do not break down or cause accidents on our roads.”
“What we do not want is to have a lot of duplication of networks, because the duplication must eventually be paid for by subscribers. At the moment, Telecom is looking at a number of consortiums of consultants with experience of privatisation of other companies or boards overseas. We should be making the appointment of consultants to help soon.”
“I want to assure Members of this House and members of the public that if a change in the pricing system, the majority of Singaporeans, ie, the majority of resident subscribers and the majority of small businesses, will find that far from having to pay more, they will end up having a rebate on what they are paying at the moment. In other words, telephone rates will came down and not go up, for the majority of subscribers. Telecom has not made a decision yet, contrary to what the newspapers have reported. This matter is not something that we want to rush into. It is something that we want to study very carefully. The objective is to keep cost down, and cost is kept down by ensuring that there is a fair way of charging for calls mede. Dr John Chen also touched upon the subject of privatisation of Telecom which we discussed earlier. Yes, it is very important when we move to the privatisation of Telecom, that we ensure that its rates are kept low. Dr Chen suggested the possibility of a telecommunications council similar to that of the Public Transport Council. It is a good suggestion. We can consider that suggestion together with other possibilities. Sir, we are not the first country in the world to privatize our telecommunication authority. Other countries have gone before us. There are a number of different models. What we want to do is to study the different models to ensure that we are able to have a high degree of competition, and a high degree of efficiency, so that the rates can be kept low. At the same time, we must remember that the network of lines needed to provide an efficient and excellent telecommunication system is extremely cost-intensive.”
“In the past, the telephone was used largely for voice communication, you use a phone to talk to somebody. There was a certain self-regulatory mechanism at work. Beyond a certain level of usage, someone wanting to use the telephone might find the telephone engaged. So people would use another telephone elsewhere, use or subscribe to an additional telephone. Today, telephones can be used for other purposes, other than for voice communication. You can use it for a data transmission and for fax communication. As a result, some subscribers can use the telephone for many hours at a go each day. On the ohter hand, residential subscribers usually use their phones three, four, five times each day taking up a few minutes per call. If we continue with the same flat charged for use of the telephone, then those who are using their phones infrequently, ie, a few calls each day, will end up having to to subsidize those who make hundreds of fax calls each day. Members will probably recall that in the newspapers a month ago, one particular organization said that whenever it sends fax messages out it sent more than 500 of such messages on each occasion. Such are the subscribers who are being subsidized by our residents who are making a few calls a day. Telecom is considering whether we can come out with a system of pricing that is more appropriate to the different levels of usage. Many other countries have experienced this problem and they have moved to a variable charge.”
“Sir, I want to thank Mr Goh Choon Kang and Dr John Chen for raising the subject of local telephone charges. It is a subject of some interest among the public. A number of people have asked me about it. At the moment, Singapore is one of the last countries in the world to have a flat rate for charges for telephones. Most of the other countries have moved to a system of charging on the basis of the number of calls or the amount of time taken during these calls. Telecom is studying the system used in a number of different countries. Let me give two simple illustrations to help Members understand the difference between a flat charge versus a variable charge. I use two examples: a restaurant serving buffet lunch and a petrol station. For a buffet lunch you pay the same charge and you eat as much as you like. It works reasonably well, because between the smallest eater and the biggest eater, there is not that much of a difference in food consumed. There are also significant savings in overheads. So when you charge for somewhere in between, it is quite all right. So many restaurants operate that sort of pricing, charging a flat rate, without taking into consideration the amount that you eat. Now, take the example of petrol station. Some cars consume very little petrol because they travel a few kilometres a day. At the other extreme, some vehicles may be running 300-400 kilometres a day. If everybody pays a fixed rate and just use as much petrol as they need, then that will result in severe cost distortion. The very small consumer will end up subsidizing heavily the very large cosumer. If someone using one litre a day has to pay the same rate as someone consuming 10 litres a day, would that be a good system?”
“Telecom is likely to be one of the largest companies in Singapore with a market capitalization expected to be in excess of $10 billion. And with the total market capitalization of the stock exchange at approximately $70 billion, it gives you a feel for how big Telecom is. Telecom is a national asset. We want to enable as many Singaporeans as possible to buy into this successful company. If we manage Telecom well after privatisation, as we do right now, then Telecom is likely to be the sort of shares that one would like to buy and keep and then give it to one's grandchildren and then start them off well in their lives. Sir, I will ask my Minister of State to answer the other questions.”
“However, I am conscious of the fact that the interests of Singaporeans have to be protected. I have stated that very clearly, at the lass press conference, that we will take into account the public interests and to ensure that privatisation will not mean higher postal and telecommunication charges. Our role is to protect the public's interest, and to ensure that anybody who wants a telephone will be able to have a telephone, that when he picks up a phone, the phone will work, and any time you want to call anybody in Singapore or outside, the call will go through. In other words, we must have quality services and charged must be kept low. Indeed, the objective is to offer the best possible service at the lowest possible cost. That has been the mission of Telecom over these years and it will continue to be Telecom's mission even after privatisation. Should we regulate foreign ownership? Sir, here we can look at the examples of other companies that have been privatised and then publicly listed on the stock exchange. SIA, for example, has restriction on foreign ownership. So too with other public companies like banks and major conglomerates in Singapore. I would expect some restriction on foreign ownership will also be appropriate. These are matters that Telecom is currently studying and will in due course decide. But almost certainly, we will not permit Telecom to have majority foreign ownership. What we want is to encourage as many Singa- poreans as possible to own a share in Telecom. My Ministry will be working together with the CPF Board to try to make it possible for as many Singaporeans as possible to own shares in Telecom when it is floated.”
“We want to be able to be in a position to take advantage of opportunities that may surface. This we can do speedily, only as a private company. Hence, on balance, I believe that it is worthwhile privatising Telecom in order that we go for much greater efficiency and effectiveness. Sir, I have stated in my press conference on 9th November last year that where we are able to secure advantages, increase savings effectiveness and increase efficiency, these will be passed back to the consumers by way of lower rates. Telecom has a good record. Over the last 10 years, Telecom has been systematically, reducing its rates to the tune of something like $2.4 billion in terms of revenue forgone over the last 10 years; in other words, an average of about $200 million each year. And if privatisation does bring about greater efficiency, greater effectiveness and greater competitiveness, then I am sure rates over the coming years will come down. But of course, it will take us some time to privatise Telecom, maybe another two or three years. There are a lot of factors that cannot be pre-determined at this stage - cost of equipment, cost of computers, cost of labour. These are factors where it is not possible to forecast at the moment. Therefore, whether the Telecom rates will come down or not in two to three years' time remains to be seen. Sir, Mr Chiam asks whether the rates will be regulated. One of the reasons for operating a private company instead of a statutory board, is that the company will have the flexibility to respond to market changes. Therefore you do not want now to regulate features that are best determined by the market, such as the charges that the company can make. If that is so, then we might as well stay as a statutory board.”
“Every time you make an overseas telephone call, you can either pay the Singapore rate or have someone overseas call you up and pay the rate of the incoming call. In many cases, Singapore's rates are much lower than the rates for the incoming call. I think any businessman who has to do a fair amount of international calls knows that. Our IDD rates are generally much lower than the incoming calls. If you do comparisons, you will find that our domestic rates for local calls are also very, very low, compared to other countries. But my belief, Sir, is that, in spite of the high level of performance of Telecom, there is still room for improvement. We have to strive for higher levels of excellence. We must keep trying, and privatisation provides us with the means of doing that. In particular, privatisation is important for Telecom, because Telecom works in an industry that is high-tech with very rapid changes. We must be able to adapt quickly. Operating as a statutory board does have some disadvantages. For example, a statutory board has to operate under civil service requirements. Let me give an illustration. If a new model of telephone is introduced, and if Telecom wants to bring that model in quickly, it is not possible to respond rapidly, because civil service requirements say that a proper study has to be made, technical studies have to be carried out, tenders have to be called and so on. So the time spent for responding to changing circumstances is fairly long. Also, by being a statutory board, Telecom has to follow fairly strictly certain personnel policies. This makes for inflexibility in personnel management. The telecommunication industry world-wide is undergoing very rapid changes with deregulations and liberalisation in the policies of many countries.”
“Sir, let me reply to Dr Wang Kai Yuen's question on ARF. Dr Wang has asked that the ARF be kept as it is because of the fear that any reduction of the ARF may result in people buying bigger cars and, as a result, a greater outflow of foreign exchange. Sir, if you recall, the Select Committee on Land Transportation Policy did specifically recommend that the ARF be reduced in order to offset some of the increases that would result from the application of the quota system. I would like to assure the Member that, while we are looking at the reduction of ARF and PARF, we will bear in mind his concerns. It is not necessary that a reduction in the ARF would lead to bigger cars. With a rebate given back to future owners of cars, there is nothing to prevent them from keeping the money and just buying the same car that they previously intended to, and use the rebate on the ARF for some other purpose. So it does not necessarily follow that a reduction in ARF will result in bigger cars. Sir, Mr Chiam asks about the privatisation of Telecom. The purpose of privatising Telecom is quite simple, which is to take Telecom to even greater heights. At the moment, most people agree that Telecom has done very well. Indeed, the World Competitive Report published in 1989 by the World Economic Forum based in Geneva, Switzerland, ranked Singapore as number one in the world in terms of telecommunication infrastructure, giving Singapore a total of 98.06 points out of a possible 100. Consultants appointed to study the feasibility of privatisation have also concluded that Telecom is efficiently managed. Telecom also competes with the other telecommunication authorities in other countries. Contrary to what many people thought and what Mr Chiam has said, Telecom is not a monopoly.”