Hansard, 1958-12-03

The following Member has, under the provisions of subsection (3) (i) of section 47 of the Singapore Colony Order in Council, 1955, obtained from the Speaker permission to be or to remain absent from meetings of the Assembly: Mr Mak Pak Shee (Geylang) - from 11th November to 23rd November, 1958.

I have received a message from His Excellency the Governor dated the 14th November, 1958, informing me that, in accordance with the provisions of Section 62 (2) of the Singapore Colony Orders in Council, 1955 and 1956, His Excellency had that day assented to the following Bills:-

It is my duty to direct the attention of the Assembly, in its capacity as guardian of the prestige of the Speaker, to a report of a statement purported to have been made by the Honourable Member for Queenstown to the Singapore Standard and reported in that paper of the 27th of November, 1958, under the caption:

Reference in the article is made to two questions disallowed by me as being inadmissible, one on the appointment of the Chief Justice for Singapore and the other on the proposal to abolish Teochew, Hainanese, Khek and Foochow radio programmes. The article, inter alia, states: 'Mr Lee said that it had been the usual practice for the Speaker to give reasons whenever he ruled questions as "inadmissible". "In this case, no reason had been given", he added.' At the outset it is my duty to point out that action of the nature reported to have been taken by the Honourable Member in protesting against the ruling of the Speaker through the Press is not only discourteous but also improper, the more so in the light of the implication of a sinister motive contained in the passage quoted by me. I am glad to be able to say, however, that the Honourable Member has assured me that he did not intend to be discourteous or improper. He further assures me that he told the reporter concerned that he accepted my rulings but was disappointed that the questions could not be tabled. Had he desired to protest he would have protested, as he is entitled to do, to me direct and not through the medium of the Press. He would then, of course, have been informed of the reasons for my rulings. Honourable Members are, I am sure, aware that if they are dissatisfied with the rulings of the Speaker, the proper course would be to raise the matter with the Speaker direct in an interview or by letter, and if thereafter they are still dissatisfied, their remedy is by way of substantive motions for review. I may add that although the relevant Standing Order in regard to questions does not provide that reasons should be given for any ruling, I have for the convenience of Members directed the Clerk to revive the practice of acquainting Honourable Members with the reasons for any adverse ruling to enable them all the better to decide whether they will or will not raise the matter with the Speaker.

asked the Chief Secretary to state the latest approximate estimated number of persons in Singapore who are Hokkien, Cantonese, Teochew, Hakka, Hainanese and Foochow.

Sir, the figures approximately are Hokkien, 432,000; Cantonese, 236,000; Teochew, 234,000; Hakka, 60,000; Hainanese, 79,000; Foochow, 14,000.

asked the Chief Secretary whether he is aware of the strong opposition of the various Chinese community associations and guilds of Singapore to the Government's decision to discontinue using the Teochew, Hakka, Hainanese and Foochow dialects in the local broadcast of the Chinese, programme from January 1959, and whether the Government will reconsider this decision.

Sir, the Government has received a number of representations in this matter. As I informed the House on 5th November, the aim of the Government in making these changes is solely to improve the balance and content of the present Chinese broadcast programmes and advice was sought from several representative bodies and individuals before the decision was taken in agreement with the Government of the Federation of Malaya. Nevertheless, I welcome the opportunity of giving more details of what is proposed, since I think it will be seen that the apprehensions underlying these representations are largely without foundation. No changes will be made in the cultural contributions made by the four communities in question to the Chinese broadcasts. The opera, music and songs will continue as before and, in particular, the Teochew story-teller and those of the other dialects will remain on the air. The only major practical change will be to cut out the regular news bulletins in these dialects. The present practice of broadcasting the news bulletins in seven different dialects means that, out of a total weekly programme of 83½ hours, no less than 10½ hours is consumed in the repetition of news bulletins. Moreover, since these have to be broadcast at fixed times of the day, it leaves little flexibility for periodical adjustments and improvements in the cultural programmes. I should add that in times of emergency, arrangements would always be made for important announcements to be given in as many dialects as possible. Finally, Sir, I should mention two other improvements which it is proposed to make from 1st January. All Chinese programmes will from that date be broadcast on a single frequency. This will save listeners having to retune their sets in the course of listening to the programmes. Moreover, the total weekly hours of Chinese broadcasts will be slightly increased.

Do we understand from that explanation, Sir, that the primary reason is to save broadcasting time and not to save cost?

Sir, the main object is to save time in order to give more time for cultural broadcasts.

Do we understand from the statement that in times of emergency there will be broadcasts in all dialects, and that in fact the staff necessary for broadcasting in all dialects will still be there?

I do not expect that there will he any difficulty in making the necessary arrangements.

Does that mean that as and when they are required, they will be ferretted out, but that there will be no maintenance of constant staff?

I would like notice of that question, Sir.

Is the Chief Secretary prepared to give an opportunity to this House to have a debate on this issue before implementing that decision?

I do not think that sufficient reason has been shown, Sir, to justify that.

Mr Speaker, Sir, according to the Chief Secretary's report, the figure for Teochew is 234,000 and that for Hakka is 60,000. Leaving out the Hainanese and Foochow, will the Chief Secretary accept the fact that in this quarter of a million and over population there are many illiterates who cannot write or read in either Chinese or Malay, and therefore they cannot read the daily newspaper? So the only source of information that they can get is either through Radio Malaya or Rediffusion, sitting in a coffee-shop or somewhere else to listen. Since the Chief Secretary has assured us that during an emergency they are going to announce in all the other dialects, why not issue a daily news bulletin for these people so that they can enjoy getting the new bulletins through their own dialects?

Sir, I am advised that a person speaking in the Teochew dialect can converse perfectly easily with a person speaking in the Hokkien dialect -

No.

- and that, in fact, 80 per cent of the words used are the same.

Sir, since the Chief Secretary is not prepared to have a debate, is he aware that this is a very important issue and that it has caused great concern to the four Chinese communities in Singapore?

asked the Chief Secretary what progress has been made in the examination and exemption of the publications affected by the general ban on the publications of 53 publishers in Hongkong and China.

Sir, satisfactory progress has been made and in response to applications so far received as at 2nd December exceptions had been authorised in respect of 450 books.

asked the Minister for Health whether he will state-

Mr Speaker, Sir, in reply to (a), a total of 54,829 persons were X-rayed. With regard to (b), the percentage varies with the locality surveyed. In the Jalan Sultan area where 20,288 residents were X-rayed, the percentage of persons showing evidence of tuberculosis both healed and active was 13.

2. In the Chinatown area, of a total of 20,742 residents X-rayed, the percentage was 15.

4. In the Bukit Panjang area, of a total of 5,168 X-rayed, the percentage was 7.2, and in the Geylang Serai area, of a total of 4,474 X-rayed, the percentage was 7.

4. With regard to (c), Sir, it is regretted that it is not possible to give a full answer because a full assessment has not been completed. Only in the Jalan Sultan area have investigations been substantially completed and, in consequence, it is possible only to give figures in that particular area. The percentage of those found to be suffering in the area from active tuberculosis is estimated to be 3.

5. The reason for this estimate is this. From the Jalan Sultan area, 662 persons are now under treatment. That gives a percentage of 3.26, but of the 13.2, that is 2,675 persons, called for assessment, 219 have not yet turned up. We are trying to trace them by domiciliary service. An allowance therefore has to be made for those persons who might require treatment out of the 219 not yet assessed. That is why, Sir, we are giving an estimate of 3.5 instead of 3.

26. Of these 662 persons, 213 were found to require hospital treatment, that is less than a third of those requiring treatment. With regard to (d), there are about 850 persons on the waiting list. This includes some 56 cases found in the survey from all the four areas and, while on the waiting list, they are receiving out-patient treatment. It often happens that when one's turn arrives one's condition has so improved, Sir, that hospitalization becomes unnecessary.

Mr Speaker, Sir, it is a fact that a total of 80,000 persons were to have been X-rayed at the four centres, but will the Minister state why this figure fell short by about approximately 25,000?

Mr Speaker, Sir, it must be realised that the figures quoted refer only to residents in the area under survey. There are some 4,000 persons X-rayed additionally. They came from places other than the area surveyed, and those X-rays were not refused.

The Minister has not answered my question. The original intention of the Government, as I understand it, was to make a survey in the four areas affected, of 20,000 in each area, making 80,000 altogether. We have been given figures of approximately 55,000 leaving a shortage of 25,000, and is this therefore making a survey less accurate than otherwise it should be?

Sir, the survey was conducted by the experts and the target, that I announced sometime ago was 50,000, intended by Government for the purposes of the survey.

Mr John Ede.

Mr Speaker, Sir, will the Minister -

Question No. 5, Mr John Ede.

asked the Minister for Health whether he will make a statement on what further measures the Government proposes to take in the campaign against tuberculosis in the light of the findings of the Government Tuberculosis Survey.

Until the financial position becomes clearer and the full facts of the Survey are available, I am not as yet in a position to formulate with any definiteness further measures. But the whole matter will certainly be reviewed.

Mr Speaker, Sir, in view of the fact that there will be more cases of tuberculosis requiring hospitalization, in addition to those already on the waiting list mentioned as 850, will the Minister please explain why it has been decided to change a T.B. ward into a Nurses' hostel?

Mr Speaker, Sir, I think the hon. Member does not remember what was said here in the debate on the 1958 Estimates. At page 421, the House approved only $1,000 with which to construct a Nurses' hostel and training school, although the estimated cost is $2-million, the reason being that it was then beyond the building capacity of the Public Works Department. With regard to the use of the present wards for training of hospital nurses, I do not mind admitting that there is a shortage of staff. It was found necessary for the present to get the number of our trained assistant nurses up to scratch.

Mr Speaker, Sir, may I remind the Minister that only last month we sanctioned $62,000 to convert, a T.B. ward into a Nurses' hostel on the grounds that there was no need for extra beds for T.B. patients. Would he now explain what is meant by 850 on the waiting list?

Mr Speaker, Sir, I said that although these people are on the waiting list for treatment, very often by the time their turn comes, they have so improved that they do not need hospitalization.

Mr Speaker, Sir, will the Government consider presenting a White Paper setting out the whole T.B. problem as revealed by the survey as a matter of public importance?

That will be duly considered.

Mr Speaker, Sir, did I hear the Minister right? In effect he is suggesting that it is better to be outside the hospital waiting for your turn to get in, and recover before you get in, than to be inside the hospital receiving treatment?

I made no such suggestion, Sir, although I did say that those on the waiting list are being treated. In the Tan Tock Seng Hospital there are three wards each with a 34-bed capacity lying vacant, and the reason why we have not been able to use these beds is that there is a great shortage of nursing staff. One block of 206 beds, originally intended for T.B. patients, is used temporarily as a hostel and a school for the training of assistant nurses. This is a temporary measure. In order to meet the need of staff, we used part of the accommodation as a nursing school and hostel. Consideration has been given to the recruitment of nursing sisters from elsewhere. There is additional accommodation available in the new building environments of the Woodbridge Hospital, having a bed capacity of about 240.

Will the Minister explain why the beds at the Woodbridge Hospital are not yet ready to take in the patients?

I believe they are ready.

asked the Minister for Commerce and Industry to give the following particulars relating to cottons for the period from January to October 1958:-

Sir, since the answer consists of long columns of figures, I propose, with your permission, to table it. Particulars handed in.

They will be circulated with the Official Report. Following are the particulars: COTTON FABRICS WOVEN SINGAPORE IMPORTS AND EXPORTS BY COUNTRIES OF ORIGIN AND DESTINATION - GROUP 652 JANUARY/OCTOBER 1958 IMPORTS EXPORTS Country Square Yards $ Square Yards $ Mauritius 331,029.50 173,103 Union of South Africa 25,442.00 12,220 O.C.C. Africa 5,586.00 5,600 Brunei 1,400,406.87 870,118 Ceylon 112,591.66 85,254 Hong Kong 3,969,827.31 2,372,453 188,595.38 167,373 North Borneo 6,971,261.02 4,107,774 Pakistan 71,199.50 55,549 4.50 10 Sarawak 5,546,678.25 3,068,537 Republic of India 14,916,374.35 7,341,681 210.62 1,355 Aden 64,708.00 67,260 Bahrein 1,578.00 1,852 O.C.C. Asia 24,749.15 21,180 Australia 3,146.43 8,382 154,410.00 71,404 New Zealand 511.00 390 O.C.C. Oceania 628.90 1,141 Netherlands 251,937.53 442,942 5,867.00 16,485 Republic of Sudan 97,806.00 50,105 U.S.A. 1,054,676.89 1,366,498 27,948.00 37,768 Dutch Guiana 1,827.00 5,261 Burma 1,086,556.70 577,963 Cambodia 32,526.00 22,612 Banka and Billiton 2,888,373.35 1,562,039 Borneo 27,900.00 16,591 Celebes and Moluccas 489,603.00 374,602 Java 5,432,802.59 3,286,911 Riouw and Lingga 492,626.05 385,180 Sumatra 19,555,154.72 10,292,296 Indonesian Is. n.e.s. 144,405.93 89,807 Thailand 2,536.60 3,637 2,970,367.21 1,202,392 Macao. Goa, etc. 1,105,873.84 749,235 Countries in Asia n.e.s. 1,200.00 840 All Non-British Countries in Oceania 142.20 591 United Kingdom 2,371,071.30 3,462,958 Canada 5,024.75 11,653 China 27,269,782.23 15,061,841 Japan 55,852,320.03 38,549,763 Formosa 147,000.00 60,148 West Germany 247,120.26 603,848 Italy 44,602.86 89,230 Austria 81,411.62 194,015 Czechoslovakia 738,422.20 626,222 Denmark 7,028.00 8,945 France 38,610.49 79,441 Switzerland 177,552.35 578,917 U.S.S.R. 2,264.385.80 956,007 Belgium 7,252.50 13,179 Poland 40,922.00 24,077 Spain 10,101.75 24,689 Sweden 1,320.90 3,451 Hungary 669.00 2,047 Israel 1,176.90 1,434 Federation of Malaya (Estimated) 363,690.00 345,883 39,523,823.00 25,754,238 Total 109,939,163.55 72,288,880 88,713,193.44 53,079,477 * All export figures are presumed to be re-exports.

asked the Minister for Commerce and Industry whether he will make a statement on the effects of the suspension by China, as reported in the local press, of the import of certain goods into Singapore, and what steps does he propose to take to ensure that the entrepot trade of Singapore will not be jeopardised and that the cost of living in Singapore will not rise as a result of this suspension.

Sir, I have had no official intimation of any suspension of exports by China to Singapore. If, however, the reports in the newspapers of suspension of exports of certain preserves, salted vegetables and fruits are correct, it could create some difficulty in supplies for those who prefer these articles; but it is unlikely to have any significant effect on the cost of living as a whole. It might perhaps be beneficial by switching the taste preference of consumers to similar locally produced articles. It is also unlikely to have any significant effect on our entrepot trade, as indications show that not much of the above goods go into the entrepot trade stream and also because most of the goods required for our entrepot trade are freely available from other sources. Looking at the picture of China's trade as a whole with Singapore, we have been exporting to China much less than we have been importing from China. In short, the balance of trade is against us. Our total trade with China in January to September 1958 has been under four per cent of our total overseas trade. Sir, I must take the opportunity of correcting some misimpressions that might have been created in the minds of the people of Singapore -

Order. I was wondering whether that statement would not arise on the adjournment, as I see that the hon. Member for Changi has obtained the right to raise the matter of the importance of unrestricted trade between Singapore and China. If what the Minister is saying would more appropriately be said at the adjournment, I would suggest that he say it at the adjournment.

With respect, Sir, when the Member for Changi finishes his adjournment speech, it is possible that the time might be too short for me to give an appropriate reply.

Order. If the Minister agrees then that what he has to say will arise on the adjournment, then I am afraid he is anticipating, and he cannot do so.

Sir, I do not think it will arise, but I was wondering whether what I have to say might better be a part of my statement in reply, because the Member has been asking me for a statement on the effects of this suspension of trade by China.

Order. If the Minister then assures me in no uncertain terms that what he has to say will not arise, or is not relevant to the subject to be discussed on the adjournment, then he can continue.

I do not know what the Member will say in his adjournment speech, but I can give the assurance that what I am going to say is relevant to the question asked.

Order. That is quite irrelevant to my ruling. If the hon. Member for Changi, in the process of asking supplementary questions, also anticipates what he wishes to say on the adjournment, then, of course, he will be out of order.

To continue, Sir, -

The Member can, if he assures me that what he is going to say will not be raised on the adjournment.

Yes, Sir, I will do that.

Please continue.

I must take this opportunity of correcting some mis-impressions that might have been created in the minds of the people of Singapore by certain statements alleged to have been made by trading agencies in China in their correspondence with Singapore merchants, as quoted in Press reports. It has been alleged that the reported suspension by China in certain lines of exports to Singapore resulted from certain discriminatory actions of the Singapore Government. The only action by Singapore which could be construed as such was the ban imposed last month at the request of the Federation Government on imports of certain types of textiles. The first and foremost duty of any elected Government in any country is to safeguard the economy of the country. As far as Singapore is concerned, the economy of Singapore and that of the Federation is so closely interlinked that any damage to the economy of the Federation is bound to have a much stronger repercussion in Singapore. If we are looking to a merger with the Federation, it is the clear duty of any Singapore Government to do its best to prevent the undermining of the Malayan economy. The step taken by the Singapore Government at the request of the Federation Government to temporarily safeguard their textile industry is not therefore a discriminatory step against China as such; but a step taken for the benefit of the Malayan economy as a whole. I can well conceive such a step being taken against any other country if it was considered necessary in the interests of our economy, bearing of course in mind any officially recognized contractual obligations. It might bear a little explaining why the step was taken against the particular types of textiles only from China. It is quite apparent that the trading policy of China is strongly influenced by political considerations, as is evidenced from the fact that China has been selling these goods below the comparative producing cost of countries like Japan, where there is a high degree of automation and labour is cheap. In fact, China has been able to underprice her goods even below the cost of Hongkong producers who have had at their command cheap refugee labour. It is apparent, therefore, that China's policy has been to dump its goods in certain markets at a price which has no bearing on the cost of production in order to undermine the industries of certain countries. This undercutting cannot, however, go on indefinitely without having an effect on China's economy, and it is possible that the present move may be due to the adverse economic results of the undercutting policies being felt in China. It is also possible that long-term credit arrangements may have been stretched too far and that China may be feeling that the time has come to stop these credit facilities and ask for cash payments.

Nonsense!

Fair competition in trade has always been encouraged by the Singapore Government but where undercutting with political motives results in damage to the Malayan economy, the Government feels that it has an obligation to the Malayan economy as a whole, even though the particular industry concerned may be located in the Federation. In short, while the Singapore Government has no intention or wish to hamper trade between China and Singapore, it is its clear duty to see that such trade is not to the detriment of any of our industries or to the Malayan economy as a whole, and this not only applies to China but to any other country. To blame the Singapore Government in the fashion reported by the Press is therefore a clear indication of China's desire to make political capital out of what is purely a step dictated by economic necessity to Singapore as far as Singapore's action is concerned, and possibly for the same reason to China as far as China's present reported action is concerned.

10.30 a.m.

Mr Speaker, Sir, the black clouds that have gathered over my Ministry since 6th November, 1958, are only partially cleared, and I feel that it is my duty to make a statement on the part that is cleared so that the public can know the facts. I am referring to the two leakages of examination questions set by my Ministry in the English Secondary Schools Entrance Examination and the Government Chinese Senior Middle III examination. Of course, the public reaction to both leakages - especially when the second one followed the first one so closely - is that my head and the heads of my Ministry officials should be delivered on a charger to this House, in addition to a public enquiry. I can understand the concern of the people over these leakages because these examinations are national examinations. But, when serious things like this happen, we must keep calm and refrain from saying anything that might prejudice the issue before the truth is out. The English Secondary Schools' Entrance Examination is a stepping stone to secondary education which is much sought after, and for which there may be insufficient places for those who want it. The Government Chinese Senior Middle III examination is a national examination enabling those who pass it to obtain employment in the public service and to go for higher studies. Those who are responsible for these leakages, either through negligence or dishonesty, will be punished and their identities exposed for public disgrace. The statement that I am making today, and any future statements that I will make on this subject, will be made without fear or favour. Those who have dishonestly caused the leakage or dishonestly taken advantage of the leakage are a disgrace to the people of Singapore. By their action, they have undermined our educational system and the morals of our students. These people stand publicly condemned before the House today. Sir, if only our public-spirited citizens will give us information of the type we received on 3rd November, 1958, then every crime in Singapore will be satisfactorily solved. At 4.30 p.m. on 3rd of November, my Permanent Secretary received information that examination questions set in the English Secondary Schools' Entrance Examination were obtainable at No. 141 Carpmael Road. The Police were informed immediately and by 8.30 p.m. a copy of some of the questions had already been obtained by a Police officer from someone living in that house. The questions obtained were found to be identical to the questions set in the paper for the next day. The Police officer paid a second visit to the house on the following evening and obtained further questions for the next day. At ten minutes past ten that night, 141 Carpmael Road was searched by the Police under a search warrant issued by a Magistrate, and other copies of the questions were found, but no original printed copies. From there the Police commenced their investigations and in a few days the Police had traced the source of the leakage and brought to book eight persons. There was no doubt where the source of the leakage was. Swift and firm action is being taken against the persons concerned. An employee of the Government Printing Office and three clerks of another department have been interdicted. Action has been taken under the Education Ordinance against the three teachers concerned - one a re-employed retired teacher in a Government English School, and the other two teachers in a private school. They have been struck off the register as teachers. The allegation against the City Council employee has been referred to the City Council. With regard to the leakage in the Government Senior Middle III examination, investigations are still proceeding and I do not propose, for obvious reasons, to disclose progress at this stage. I would like, however, to appeal to everyone who has information to assist my Ministry and help us in eradicating these people and in punishing all those who were responsible for this leakage. At the risk of repetition, I might again add that this is a national examination and must be absolutely reliable. Possession of a pass Certificate will entitle the holder to enter the public services and I am, therefore, determined to see that the fair name of Chinese education is kept up. And for this reason, I am equally determined to deal with the culprits ruthlessly. Security measures have been taken to ensure that such a leakage will not take place in future.

Whilst we are reassured by the firm manner in which the Minister says he intends to deal with the culprits, could he tell us if he also proposes to deal with those in supervisory positions who, by their lack of vigilance, enabled these culprits to do what they did?

Yes, Sir, investigations are being made, and if there is evidence in respect of any person, be he a supervisor or invigilator, firm action will be taken against that person.

No, Sir, I am sorry I have not made my point clear enough. There are people who were directly responsible for the leakage, and who were making money out of it. There are others who, whilst not being directly responsible, must have been negligent in their duties to have allowed such culprits to do what they did and remain undetected for some time.

Mr Speaker, Sir, action will be taken against those people.

Mr Speaker, Sir, of course, this House welcomes the firm assurance given by the Minister for Education. Sir, as we have heard the Minister say, the leakage was due to two causes - negligence and dishonesty. Therefore, is the Minister prepared to set up a body within his Ministry to carry out these investigations, rather than just issue a firm statement, because negligence and dishonesty -

Order. I think the hon. Member can stop there. He has asked a question. Would the Minister like to answer?

Yes, Sir. In fact, the Permanent Secretary and myself are investigating into this so-called negligence. I have given the source of the leakage in the first examination, and in the case of the second examination, that is, the Chinese Senior Middle III examination, investigations are proceeding and we are taking a personal interest in those investigations.

Mr Speaker, Sir, is the Minister aware that there are some people who believe that both his Permanent Secretary and himself might have been negligent in their supervision in allowing these things to happen? It is no use his investigating himself.

Mr Speaker, Sir, if the Opposition think I am negligent they can bring a substantive motion against me in this House.

Mr Speaker, Sir, the Opposition are in no position to say whether the Minister is negligent or not. But somebody should be equipped with all the facts, either to clear the Minister of the scandalous charges that have been circulated against him and the dark clouds that have gathered over his head, or a thunder storm may well break over him! If he persists in being both investigator and judge of his own position, then what is the use of it?

Do I understand the Member for Tanjong Pagar to say that I am dishonest or that I have been implicated in all this?

I do not think there was any imputation of that nature.

Mr Speaker, Sir, I am so sorry the Minister for Education has misunderstood what the Member for Tanjong Pagar has said. May I ask further whether -

Order. I think I had better put this matter in its right perspective. We are not here to debate this matter but if the hon. Member has a question to ask, he can ask it.

The Minister for Education has not answered my question. What I said is that it is better for the Ministry of Education to form a body to investigate but not for the Minister and his Permanent Secretary to do so, because I know they are very busy.

The Police have been brought into these investigations, and I must publicly say that my conscience is clear, and so is that of my Permanent Secretary. I shall be the true judge.

Am I correct in saying that the Minister has just now informed us that two of the culprits were dismissed? In view of the seriousness of this crime, why cannot we impose more severe punishment like imprisonment?

No, Sir. No crime has been disclosed.

"to amend the Registration of United Kingdom Patents Ordinance (Chapter 181 of the Revised Edition)", presented by the Minister for Commerce and Industry (Mr J. M. Jumabhoy); read the First time; to be read a Second time on Wednesday, 14th January, 1959, and to be printed.

"to provide for the registration of persons carrying on nursing homes and maternity homes and for purposes connected therewith" presented by the Minister for Health (Mr A. J. Braga); read the First time; to be read a Second time on Wednesday, 14th January, 1959, and to be printed.

"to amend the Singapore Improvement Ordinance (Chapter 259 of the Revised Edition)", presented by the Minister for Local Government, Lands and Housing (Dato Abdul Hamid Bin Haji Jumat); read the First time; to be read a Second time on Monday, 15th December, 1958, and to be printed.

"to amend the law relating to the frustration of contracts", presented by the Attorney-General (Mr E. P. Shanks); read the First time; to be read a Second time on Wednesday, 14th January, 1959, and to be printed.

"to amend the War Damage Ordinance, 1949", presented by the Financial Secretary (Mr T. M. Hart); read the First time; to be read a Second time on Wednesday, 14th January, 1959, and to be printed.

"to establish and incorporate a Services' Lands Board empowered to acquire, hold and dispose of land and interest in land and to make provision for matters related thereto", presented by the Chief Secretary (Mr E. B. David); read the First time; to be read a Second time on Wednesday, 14th January, 1959, and to be printed.

10.42 a.m.

Sir, I beg to present a Bill intituled "An Ordinance for making provision for estimated financial requirements for expenditure out of the revenues and other funds of the Colony for the year 1959." Bill presented and read the First time.

Second Reading, what day?

Now, Sir.

Are printed copies of the Bill and the Estimates available for the use of Members?

They have been handed to the Clerk, Sir.

Are there more copies on the Table?

Yes, Sir.

Please proceed.

I have His Excellency's authority to move the Second Reading of The Appropriation Bill (1959) . It is customary at this time to refer briefly to the accounts for 1957 and to deal rather more fully with the workings for 1958 before passing to the Draft Estimates for 1959. Reference has been made to 1957 in the Memorandum which accompanied the Draft Estimates and the Statement of Accounts will be published and in the hands of hon. Members very shortly. 1958 has not been a particularly easy year. When the Draft Estimates were introduced in December, 1957, it was said that, although a deficit was budgetted for, it was probable that revenue and expenditure would balance in the event, provided that economic conditions continued favourable and supplementary votes were reduced to a minimum. Almost immediately, the recession in trade, which had been threatening, struck in the United States. By the early spring, its effects were beginning to be felt in Singapore. By May, there was no doubt that it had arrived. Revenue collections began to fall below the estimate. Money became tighter. Trade drifted into the doldrums. It was impossible to say how severe the recession would be, or how long it would last. We were fairly heavily committed as far as expenditure was concerned. A severe and prolonged recession could have a serious effect on our finances. We were more vulnerable to the effects of a trade recession than we had ever been before because we now relied on company and income tax for 26 per cent of our revenue. If the recession were severe or prolonged, we would be in danger of incurring substantial deficits on current account which would in turn run down reserves. It was already clear that we had started off the year with a much smaller balance in the Development Fund than we had expected, and there was certain to be a deficit which would have to be met from reserves. A severe and prolonged recession would also limit our ability to raise loans and to contribute from revenue to development. We might be in some danger of entering into capital commitments which we might find it difficult to meet. In short, the cumulative effect of a severe and prolonged trade recession would be to run down our basic reserves below the safety level. It therefore seemed essential to take stock of the position and to introduce such precautionary measures as seemed necessary while there was still time. Hon. Members are already aware of the steps which were taken in this connection. As far as the ordinary estimates of expenditure were concerned, all vacant posts were "frozen" until they could be reviewed in the light of the changed financial position. Heads of Departments were asked to review all recurrent expenditure in order to effect the maximum economies. Items of special expenditure not yet committed were examined and many which were not essential were ruthlessly cut out. As far as the Development Estimates were concerned, a halt was called on all projects which had not yet been started, in order to avoid any danger of becoming over-committed. Advantage was also taken of the halt to re-examine the immediate need for some items of capital development which had hitherto been given a high priority. The steps which were taken have achieved the purpose. As far as ordinary expenditure is concerned, considerable economies have been effected in expenditure on personal emoluments over and above those which were to be expected, and my latest information is that expenditure will be about $104 million compared with the original estimate of $123 million. Economies have also been effected on Annually Recurrent expenditure and it now looks as if expenditure will not exceed $106 million compared with the original estimate of $111 million and the revised estimate of $108 million given in the Memorandum which accompanied the estimates. Special expenditure is now estimated at about $38 million compared with the estimate of $42 million. In all, total expenditure now seems likely to be of the order of $248 million. At the same time, revenue has not suffered as seriously as it was at one time thought likely. Collections of customs duties have certainly fallen below the estimate, particularly in respect of liquors and petrol, but it appears probable that Income Tax collections will achieve the estimate. Fortunately, a total shortfall of close on $5 million under Class I is likely to be offset by corresponding increases under Classes IV and V and the total should not be very far off the original estimate of $249 million. With some luck, therefore, actual revenue and expenditure might balance at about $248 million which, when all things are considered, is very satisfactory. As far as development was concerned, the steps taken were equally effective. Expenditure was brought under control and any possibility of becoming over-committed was avoided. A number of large items were re-examined and awarded a lower priority than had previously been attached to them. On the basis of the latest information available, it seems likely that development expenditure in 1958 will be of the order of $62 million which is approximately the same as the total of development expenditure in 1957. The largest item of expenditure is Singapore Improvement Trust housing which accounts for $21 million compared with $8 million in 1955, $9 million in 1956, and $18 million in 1957. The final instalment of the loan to the Singapore Telephone Board amounts to $5 million. Works and buildings have cost $21.4 million and the balance has been devoted to Special Development Expenditure. To meet this expenditure, the resources of the Development Fund have totalled $49 million. In this connection, the balance of the Development Fund carried over from 1957 was over-estimated by $16 million. This was due to a rapid and unforeseen increase in expenditure between the time when the estimates were drawn up and the end of the year. There is therefore likely to be a deficit of the order of $13 million in the Development Fund which will have to be charged to reserves. The year should therefore end with revenue and expenditure balanced, with a deficit of $13 million in the Development Fund, and a charge of about $4 million in respect of Malayanisation Compensation, both of which will have to be met from reserve. The general revenue balance, which stood at $78 million at the end of 1957, will stand at about $83 million after $20 million has been added in respect of Christmas. Island and allowance made for appreciation of investments on the one hand and deduction made for the deficit in the Development Fund and in respect of Malayanisation on the other. Equally comforting is the fact that the recession now appears to be definitely on the wane. It seems clear that the tide had already turned in the United States by the time the worst effects of the recession were beginning to be felt in Singapore. It is also true to say that the recession has been "cushioned" as far as Singapore is concerned by the fact that the volume of rubber handled, and its price, have been well maintained throughout the year, and by the fact that trade with Indonesia has remained good. There are, however, still one or two disquieting features. For example, the present state of the tin industry gives much cause for concern, although it is hoped that this may pick up in the second quarter of 1959. But on the whole it looks as if the tide has definitely turned here also and there is a reasonable hope that the recession may be a thing of the past by the middle of next year. Let us turn now to the Draft Estimates of Revenue and Expenditure for 1959. Revenue has been estimated, on the basis of existing taxation, at $243.6 million. Collections under Class I have, in the main, been estimated on the basis of collections in 1958. Allowance has been made for a slight increase in collections of entertainment duty due t, the fact that some new cinemas will be in operation in 1959. It has been estimated that liquor duties will yield much the same in 1958. The consumption of petrol tends to increase but at a slower rate than in the immediate past and allowance has been made for a slight increase in collections. The estimate for collections of income tax shows a decrease of $10 million compared with the estimate of collections for 1958, allowance having been made for the reduction of earnings of some companies in the last twelve months. The total estimate for the Class is $185 million compared with an original estimate of $196.8 million and a revised estimate of $191.8 million for 1958. The estimate for Class II at $17.5 million shows an increase of $2 million compared with the revised estimate for 1958. allowance having been made for the increased yield from the Education Rate recently approved by the Assembly. It is estimated that collections under Class III will be maintained at about the level of collections in 1958. The estimate for Class IV shows a reduction of $2.2 million compared with 1958 due to a reduction in the estimate for interest on investments and loans. This however is counterbalanced by an increase of $2.4 million under Class V, it being expected that profits from the currency fund will exceed the share received in 1958. The estimates of expenditure for 1959 total $268.5 million compared with $277 million in 1958. If hon. Members will look at the table which appears on page 5 of the Memorandum which accompanied the Estimates, they will see that the estimate of expenditure each year has tended to exceed, sometimes by considerable amounts, the estimate for the previous years. I think that it will be agreed that it is a considerable achievement on the part of all officers responsible for the preparation of departmental estimates to have managed to keep the estimate for 1959 not only within, but considerably below, that for 1958. It has been achieved by a most meticulous examination of all proposals; by more realistic estimating of expenditure on personal emoluments in the case of the larger spending departments: by insisting that, as far as possible, all existing vacancies should be filled before new posts are created; by measuring demands for new posts and additional recurrent expenditure against services which will actually come into being in 1959; by keeping to a minimum the number of recruits necessary to maintain the pipe line in Education; by cutting provision for recurrent expenditure to the bone; and by being quite ruthless about items of special expenditure which were not absolutely imperative. I feel sure that hon. Members will find cause for considerable satisfaction in the results which have been achieved by these measures. At the same time I must make it clear that, while it has been possible to keep the estimate of expenditure well within the limits of the 1958 provision, it must not be expected that actual expenditure can be limited in the same way. An increase in expenditure is inevitable. A glance at the table which appears on page 13 of the Estimates will show how it tends to increase, department by department, each year. An increase over 1958 levels must be expected in 1959. Increments under approved schemes must be paid; vacancies in essential posts must be filled; recruits hitherto lacking will almost certainly become available; and there is of course the ever increasing recurrent expenditure on Education arising out of the policy approved by the All Party Committee in 1955. But the action taken in connection with the 1959 Draft Estimates will mean that the rate of increase is slowed down, and the great point, of course, is that the ceiling or limit of possible expenditure has been lowered very considerably. As far as the format of the estimates is concerned, there has been only one major change, namely, the creation of a separate Head for District Councils. Another change is the disappearance of the Royal Malayan Navy, it having been transferred to the Federation of Malaya. As far as content is concerned, there is little which is novel or new or likely to be contentious in the Draft Estimates. The only points of this nature to which attention might be drawn are the creation of a Guard and Escort Unit absorbing the bulk of the Special Constabulary under Police, the creation of a section for Community Recreation under the Ministry of Labour and provision in respect of budgetary deficits and scholarships for Nanyang University. The estimate of expenditure on personal emoluments totals $114.9 million compared with $123 million in 1958. The action taken to achieve this reduction has already been described. New posts have been limited to the absolute minimum required to maintain efficiency and to provide for new and expanding services. A list of the new posts entered for 1959 is given in the appendix to the Memorandum which accompanied the Draft Estimates. The total of 885 compares with 1,584 in 1956, 1,727 in 1957 and 1,723 in 1958. The list does not include the posts required for the Guard and Escort Unit, since the creation of this Unit merely involves a switch of posts from Special Expenditure to Personal Emoluments. The bulk of the new posts appear under Police, where the Special Branch and the C. I. D, have been strengthened; under Education, where provision has been made to maintain a supply of recruits for the training pipe line; and under Medical where provision has been made for recruits for training in various branches and for the staffing of the Chronic Sick Hospital. As I have said, everything possible has been done to estimate realistically the sum required for emoluments in 1959. In this connection, it will be noted that, in the case of some departments - Education and Medical in particular - a special reduction has been made to take account of hidden under-expenditure. The total provision is $114 million and I do not think that actual expenditure will fall very far short of this amount. There will no longer be the savings under Personal Emoluments which have been a marked characteristic of previous years. The estimate of expenditure under O.C.A.R. is $118 million compared with $111 million in 1958. Everything possible has been done to perpetuate the substantial economies effected in 1958 but these have been offset by the expansion of the Social Services and by the increased provision required for District Councils, Public Debt and Pensions. For example, Education requires a net increase of $4.6 million. The provision for Grants in aid has risen by $2 million. The Polytechnic, which will be in full operation in 1959, will require $1.7 million. The contribution to the University of Malaya, which has been transferred from O. C. S. E., will amount to $2.676 million. The Medical and Health Department requires $10.9 million compared with $9.7 million in 1958. Provision for the Public Debt has been increased by $1.1 million to provide for charges in respect of the new loan which it is hoped to float in 1959. Pensions require an additional $1.5 million. As far as expenditure is concerned, actual O.C.A.R. expenditure always tends to approximate to the estimate and it is doubtful if expenditure in 1959 will fall very far short of the estimate. The sum provided for Special Expenditure is $35.3 million of which $20 million is a contribution to development. The main items of expenditure have been indicated in the Memorandum which accompanied the Draft Estimates. As will be seen from an examination of the Draft Estimates, the Special Expenditure estimates have been drastically pruned. Taking under-expenditure on the one hand and unforeseen revotes on the other into account, it is considered that actual expenditure in 1959 will be of the order of $33 million. All in all, if I may be allowed to hazard a guess as to what actual expenditure on the basis of these estimates is likely to be in 1959, I should say that it will be of the order of $264 million. The position therefore is that, for 1959, we have revenue estimated at $243 million, expenditure estimated at $264 million and a deficit of possibly $21 million to be bridged by increased taxation. It is proposed to bridge this gap by raising company tax and the rate of tax on non-resident individuals to 40 per cent; to increase the rate of individual income tax on all chargeable incomes of over $4,000 with a new maximum of 50 per cent on chargeable incomes of $50,000 and over; and to make certain adjustments to the tobacco duty tariff. It is estimated that these measures will yield about $21 million in 1959. With regard to company tax, it has been considered for some time that an increase in the rate was justified but circumstances have prevented us from taking action. It has now been agreed with the Federation Government that the rate of tax should be increased to 40 per cent and the Minister of Finance in the Federation is making an announcement to this effect today. This new rate will be effective from the 1st of January. At the same time, it has been decided to increase the rate of tax on non-resident individuals, trustees and executors to the same level. In the past, it has been found desirable that the rate of tax on companies and non-resident individuals etc. should be the same. A bill amending section 43 of the Income Tax Ordinance in these respects will be tabled today. It is estimated that these measures will yield $10 million in 1959. It has also been decided to raise the rate of tax on individual incomes on all chargeable incomes of $4,000 and over, rising to a new maximum of 50 per cent on incomes of $50,000 and over. A motion to amend the Second Schedule of the Income Tax Ordinance will be in the hands of hon. Members this morning. The new rate of tax is shown in the Schedule which is attached to the motion. A comparison of this new schedule with the existing Second Schedule will indicate the changes in rate. Chargeable incomes of under $4,000 are not affected by the change. An individual with a chargeable income of $5,000 will have to pay $40 more than he does at present. A man with a chargeable income of $7,000 will have to pay $60 more than he does at present; a man with a chargeable income of $15,000, $300 more; a man with chargeable income of $25,000, $800 more an so on. The new maximum is 50 per cent which is attached to chargeable incomes of $50,000 and over. At this level, the increase in tax will be $3,800. A table showing the increases in tax at various levels of chargeable income is attached to the motion which will be in the hands of hon. Members today. The Federation Government cannot see its way to take similar action at the present time. However, I can say that the Federation Government sees no objection, from the point of view of Pan-Malayan income tax, to Singapore taking independent action at the present time. The fact that different rates of tax on individual incomes are being used in the two territories will not cause any administrative inconvenience or difficulty. It is estimated that these new rates which will be effective from 1st January, 1959 will yield rather more than $5 million. It has also been decided to alter the tobacco duty tariff. The system of charging an ad valorem duty on the c.i.f. price of certain brands of cigarettes and pipe tobacco which was introduced in October has not worked particularly well in practice. It has given rise to certain anomalies and the yield has been disappointingly low. It has therefore been decided to revert to the old system whereby duty was charged on weight alone, and to increase the duty on most brands of imported cigarettes and pipe tobacco to the levels which have been maintained in the Federation for the past five years. In revising the duty on imported cigarettes, a distinction has been made between cigarettes with a tobacco content of less than 2.32 lbs, per thousand sticks and cigarettes with a tobacco content of 2.32 lbs, a thousand sticks or more, that is, between cigarettes like Double Ace, Rough Rider and Torchlight, and all other brands. The duty on the former will remain at the present levels of $8.60 a pound full and $8.10 a pound preferential while the duty on the latter will be raised to Federation levels, namely $10.50 a pound full and $10 a pound preferential. This will mean that while the cost of the poor man's smokes remains unchanged, the cost of the more expensive brands will go up by 5 cents for a packet of 10 cigarettes. The price of locally manufactured cigarettes will also remain unchanged as it is not proposed to raise the rate of duty on cut tobacco imported for local manufacture of machine-made cigarettes for the present at any rate. The duty on all brands of pipe tobacco will be increased to Federation levels, that is $10.10 a pound full and $10 a pound preferential. These changes in the tobacco tariff took effect at midnight last night and have since been gazetted. A motion under section 11 of the Customs Ordinance will be debated on the 12th of December. The changes should yield about $5.5 million in 1959. These increases should yield a total of about $21 million and should bring the total revenue collection up to $264 million. This approximates to the estimate of actual expenditure which I have given and which comes within $4 million of the total estimated expenditure of $268 million which is shown in the Draft Estimates. In short, we have come within $4 million of balancing the budget. The Development Estimates are shown on pages 431 to 459 in the volume of Draft Estimates. It will be noted that, in framing the Development Estimates, provision has only been made for the completion of work which will be in hand at the end of this year, for a few services of a recurring nature, for one or two new projects which are regarded of such importance that they must go on, and for an entirely new project, unemployment relief works. Estimated expenditure on these services amounts to $42 million and it will be financed by a contribution of $20 million from revenue, by the repayment instalments of long term loans due in 1959, by a small contribution from C.D.W. fund for the completion of schemes in progress, and by further appropriation of $18.5 million from surplus funds. The reasons which have persuaded the Government to prepare development estimates of this comparatively limited scope are three-fold. In the first place, the Draft Estimates as now drawn up represent the limit of what can be financed with safety and certainty in 1959. In the second place, from now on we shall have to rely to a great extent on loans to finance development and it is impossible to say at this juncture with any degree of certainty - certainly not that degree of certainty which would justify entering into specific expenditure commitments - when we shall be able to float a loan, what amount we shall obtain, and at what rate subscriptions will come in. In the third place, it is considered only fair that the hands of the incoming Government should not be tied in advance but that it should be given a reasonably clear field to implement its own ideas in respect of new works, within the limits of funds likely to be available. With regard to the first reason, this is really a question of the extent to which we can make further calls on reserves to finance development. It would be dangerous to allow our reserves to be run down too far. We must safeguard ourselves against the financial consequences of a severe recession in trade; we must retain enough to finance public works as a measure of unemployment relief in time of depression; we must be able to meet all unforeseen contingencies; and we must at all times have sufficient to serve as a revenue and expenditure equalisation reserve. I should not like to see our general revenue balance reduced much below $65 million at the present time. Our general revenue balance at the end of 1958 should be of the order of $83 million and we can perhaps afford to make a further and final allocation of $18 million from reserves to development. This allocation, in addition to an allocation from revenue of $20 million and sums resulting from the payment of loans, will enable us to finance with safety and certainty the programme outlined in the Draft Estimates in 1959. With regard to the second reason, namely the fact that development will in the future have to rely to a great extent on loan finance and that the prospects of loan floatation in the future are uncertain, there are a number of points on which I should like to touch. In the first place, the question of reliance on loan finance in the future. Over the past four years, we have spent an average of $55 million a year on development. It has been spent on essential development - on housing on which $56 million has been spent in providing 9,000 living units, on schools of which we have provided 68 primary and secondary schools, on medical facilities, on communications and rural development. Part of this expenditure has been met from substantial annual contributions from revenue and the balance has been met from reserves which have accumulated as a result of the prosperity which Singapore has experienced since the war. It seems likely that the demands of Singapore for development will continue on much the same scale. One does not have to look beyond the growth of population for the reason. It is hoped - indeed it is essential - that it will continue to be possible to finance a substantial part of development from revenue. But this will only go a part of the way to meet the total bill. The greater part will have to be financed from loans. And the total available from all sources will not meet all demands. There will have to be a strict planning of priorities. Now as regards the raising of loans, it must be confessed that the prospects seem to be becoming less and less bright. Looking back over the years since the war, Singapore has had a quite astonishing record as far as loan floatation is concerned. In 1946, the Government raised a $50 million rehabilitation loan. Since that date, the City Council, excluding the present loan, has raised 7 loans totalling $220 million in all. I doubt if any territory of comparable size has anything like this record. It speaks volumes for the prosperity and stability of Singapore and for the external reputation of the business acumen of its citizens and the soundness of its administration. But the fact of the matter is that it has become increasingly difficult to float loans over the past four years. In the first place, in a period of general inflation, there is an increasing reluctance to tie up large sums in long term low interest bearing loans. Secondly, money has become increasingly tighter and the banks and other bodies which subscribed handsomely to loans in the past have no longer the same resources to do so. Thirdly, a large number of the private provident funds which invested in Government and City Council loans in the past have been wound up or reduced in scope. Fourthly, there is the disability of the lack of an active local market for Government and City Council stocks. Lastly, with so much political change and uncertainty in the air, investors are unwilling to commit large sums until they see how things are going to develop. The net result is that, at the present time, with one or two notable exceptions, the Central Provident Fund is practically the sole contributor to local loans. In short, the prospects of raising loans are not particularly bright at the moment. Nor do I think that they will improve until uncertainty is removed from the political scene and investors are satisfied that the attitude and policies of the Government in power in the future are likely to be such that the investment of large sums on long term is safe. In short, one cannot say with any degree of certainty how much it will be possible to raise by way of loan in 1959 and 1960. In these circumstances, the Government is not unnaturally reluctant to enter into any commitments which would have to be met from loans until it is clearer just how much can actually be expected, and when and at what rate the funds are likely to become available. At the same time, there are certain factors about the immediate future which perhaps alleviate the gloom which I may possibly have spread. I think that the Central Provident Fund can be counted upon to support a Government loan, Secondly, the 1940 War Loan is due for redemption in October, 1959 and, if suitable terms are offered, it may be possible to persuade holders of this stock to convert into a new loan. In this connection, consideration might possibly be given to a conversion issue on the lines of the recent Australian conversion issue. Thirdly, I think that it is probable that, if the revision of the existing Currency Agreement between the Federation, the Borneo and the Singapore Governments at present under discussion goes through, the Currency Board may be prepared to invest a certain percentage of the Currency Fund in a Singapore Government loan, taking care of course that adequate backing for the currency is maintained. But these are all to a certain extent uncertain factors. Whether they materialise or not will depend to a large extent on the political climate, and on the acts as distinct from the protestations of the Government in power at the time. Lastly it is considered desirable to give the incoming Government as clear a field as possible in the field of new development and not to tie its hands more than necessary with heavy commitments from the past. Development projects are costly and even a small number of them demand large sums over a comparatively long period. It is probable that the funds available for development in the future will be more limited than in the past. It will be necessary to assess priorities and plan expenditure with great care. Thoughts may change about the emphasis which should be placed on the different branches of development and about the standards which should be achieved. The development estimates, drawn up with the limited scope the reason for which I have described, provide for expenditure of $42 million of which $20.8 million is Special Development expenditure and $21.2 million Public Works Non Recurrent expenditure. This expenditure compares with actual expenditure of $48 million in 1955, $50 million in 1956, $62 million in 1957 and an estimated $62 million in 1958. As I said earlier, provision is made in the main for completion of work actually in hand at the end of the year. $700,000 is provided for the completion of schemes for quarters for the Police now in hand principally at Duxton Plain. $1.4 million has been provided for the Reformative Training Centre or Borstal institution at Changi which will meet a pressing need. $7 million has been provided for the further implementation of schemes under Programmes 6, 7 and 8 by the Singapore Improvement Trust, and $340,000 has been provided for a Malay Resettlement Housing Scheme, the details of which the Minister will, I am sure, be happy to describe. $2.2 million has been provided for the continuation of work in hand in the rural areas. The provision compares with actual expenditure of $2.8 million in 1956, $3.8 million in 1957 and estimated expenditure of $3.6 million 1958. A total of $8.2 million has been provided for Education. Of this $2.5 million refers to special expenditure and $5.3 million to capital works. Capital grants to schools have been limited to revotes of sums voted in 1958 but not taken up. $4.4 million has been provided for the construction of primary and secondary schools in completion of programmes now in hand. $1.4 million has been provided for the Raffles National Library which will be completed in 1960. Under Medical, the first half of a contribution of $850,000 is made for the construction of a Hospital at Mt. Alvernia by the Franciscan Missionaries of the Divine Motherhood. In addition to providing additional hospital accommodation, this will provide much needed training facilities for nurses. $5 million is provided for the completion of capital works in hospitals. Under Civil Aviation, $800,000 is provided for work on the operational building at the airport which will be completed in 1960 and $1.6 million for further work on the airport itself. $2 million is provided for further expansion of the revenue producing telecommunications services. $3.3 million is provided under P.W.N.R. (General) of which over $1 million refers to flood relief measures and $1.5 million for unemployment relief works, which will take the form of road development in rural areas and the necessary extension of the Airport runway to cater for jet aircraft. As I have said, expenditure on works and buildings is estimated at $21.2 million which compares with expenditure of $21 million in 1955, $22 million in 1956, $21 million in 1957 and an estimated $21.4 million in 1958. It should be sufficient to keep contractors and their labour employed at least until a supplementary programme is drawn up. Under Special Expenditure, $7 million is provided for further work by the Singapore Improvement Trust compared with an expenditure of $8 million in 1955, $9 million in 1956, $18 million in 1957 and an estimated $21 million in 1958. Housing must have a high priority in whatever development plans are implemented in the future, and the next Government will no doubt give consideration to this matter as soon as possible after it comes to power. At the same time, it is thought that it will have to be accepted that, in future, fewer housing units can be built each year than in the recent past. The fact of the matter is that, having regard to the competing claims of schools, hospitals, clinics and other similar works and to the amount of money likely to be available for them, it will not be possible to make as much money available for housing as it has been in the past. I do not think that anybody could reasonably expect that expenditure on housing should be maintained at the average of $20 million of the past two years. A more likely figure is perhaps $10 million which is nearer the average of the years preceding 1957 and 1958. It may be said that the answer is to reduce standards, that in the past we have built too well. But I beg leave to doubt if very much can be achieved in this direction. I think that it will be generally agreed that Singapore improvement Trust costs are as low as they can possibly be for the type of accommodation which is produced. Something can possibly be achieved in the direction of one-room flatlets - a development of the Hongkong idea. The Government has been working on this complicated problem for some time. Again, something may be achieved by decentralising housing and building more in rural areas where land is cheaper and semi-permanent accommodation can be built with less objection. This is also a problem on which the Government has been working but it also has difficulties of its own. Something may be achieved in these directions to make the funds available go further in terms of housing units but it is doubtful if it can be substantial. In short, unless the amount of loan money obtained in the future exceeds expectations, we must reconcile ourselves to a more restricted housing programme than has been achieved in the past. On the other hand, we can congratulate ourselves that we have been able to build so many units of such good quality as we have done in the past. It may possibly be suggested that this limited development programme will lead to a hiatus in development, that plans will not be ready when a loan has been successfully floated and the new Government wishes to go ahead. This is not the case. Plans now exist, or are in course of preparation, for a large number of the items to which the present Government attached a high priority and which have hitherto appeared in the Estimates with a token vote awaiting their turn to be brought forward. Planning will continue and, in so far as the new Government wishes to proceed with projects of its predecessor, there should be no delay. Similarly, the Singapore Improvement Trust can go ahead when given the word to the limit of the funds which the Government considers can be made available for housing in the future. As far as volume of work and employment is concerned, I think that the Draft Estimates provide enough to keep the building and allied trades going for a considerable time. Overall, in terms of dollars and on the basis of past performance, we are providing in this limited development budget for at least two-thirds of what has in the past been a normal year's expenditure, and this should keep the various branches of the building industry going until the new Government has had an opportunity to frame its supplementary development budget in the light of its declared policies and the funds likely to be available. Finally, I should like to take this opportunity to review the record of the Government in the financial field. When the Government assumed office in 1955, it inherited a financial position which was very sound. The public debt was small. Reserves were substantial. The out-turn for each year had shown a substantial surplus. At the same time, the future presented certain problems. Expenditure, particularly on the social services, was mounting and revenue had to be increased to meet it. Expenditure had to be kept under strict control. Care had to be taken that accumulated reserves were not squandered in the implementation of development plans. These problems have all been successfully solved. Revenue has been increased. Expenditure has been kept under control. Accumulated funds have been used to best advantage. Now, on the eve of the end of its term of office, the position is still very sound. The public debt remains unchanged and adequate provision continues to be made for its redemption. Basic reserves are adequate. The budget has been virtually balanced. A great deal has been achieved in the way of development. Security and confidence in Singapore as one of the main trading centres of the world have been maintained. During its period of office, the Government has increased revenue from a total of $207 million in 1954 to an estimated total of $264 million in 1959, an increase of 27 per cent. Company tax, income tax, estate duty, customs duties on tobacco, liquors and petrol, stamp duty, totalisator duty, driving licence fees and initial registration fees on cars have all been increased, and other measures have been introduced. The increases have been achieved within the pattern of taxation to which the population has been accustomed. Nothing has been done to upset the economy of Singapore. The incidence of taxation has been in strict proportion to capacity to pay and no hardship has been caused to anyone. The increases have not been uniformly popular. It was not expected that they would be. But the Government has not been concerned with popularity in these matters. It has merely done what was required to make income meet expenditure. Expenditure has increased, particularly in the social services. It has risen from a total of $197 million in 1954 to an estimated total of $264 million in 1959. Expenditure on Education has risen from $30 million in 1954 to an estimate of $63 million in 1959. Expenditure on Medical and Health has risen from $20 million in 1954 to an estimate of $34 million in 1959. Expenditure on Social Welfare has risen from $7 million to $11 million over the same period. But expenditure has always been kept under strict control. It has never been allowed to get out of hand. The pressures which were inevitable on the first elected government to spend lavishly on vote-catching projects have always been strenuously resisted. Provision has been made for services which were regarded as essential. Extravagance and waste have been rigidly suppressed. As a result of these measures, the Government has been able to pay its way. Now, at the end of its term of office, it has managed to present a budget which comes within $4 million of being balanced. This, I think, is a most notable achievement in every respect. A balanced budget is essential for financial viability and the maintenance of confidence in Singapore as a major trading centre. In the field of development, the achievements of the Government have been equally impressive. In all, $223 million has been spent on development, including $56 million on housing and $85 million on other works and buildings. In the field of public housing, over 9,000 units and 300 shops will have been built within the lifetime of the Government, out of a total of just over 20,000. In the field of Education, the Polytechnic has been completed and will provide advanced technical education for 4,000 students. 59 primary and 9 secondary schools have been built. The total school population has increased by 66 per cent during the lifetime of the government and there are now over 300.000 pupils in all categories of schools. A new Teachers Training College has been built and training facilities, particularly for vernacular school teachers, have been greatly increased. In 1958, 2,300 teachers were in training compared with 1,760 in 1954. In the Medical field, considerable additions and improvements have been made to hospitals, and bed accommodation has risen from 4,500 in 1954 to 6,500 in 1958, an increase of 44 per cent. In the near future, the new hospital for the chronic sick and further accommodation at Kandang Kerbau will be opened, and a further 525 beds will be available, making a total increase of 55 per cent. Outpatient Departments have increased from 4 to 14 and 6 more will be opened in 1959. The number of Maternity and Child Welfare Clinics has risen from 44 to 60. In the field of communications generally, the International Airport is in operation, the Merdeka Bridge and Nicoll Highway have been completed, 9 miles of dual carriage-way in the Bukit Timah road have been finished. 35 miles of other metalled roads have been brought into use, and 80 miles of earth roads in rural areas have been constructed in the last year. 6 new post offices and 22 new postal agencies have been opened and 84 new letter boxes have been installed. Some $12 million has been spent on rural development over the past 4 years. Remarkable progress has been made in the sphere of animal husbandry. Based on the new stations at Lim Chu Kang and Sembawang, teams of veterinary and agricultural officers have brought extension services to the kampongs. As a result, the pig population has been increased from 287,000 in 1954 to 450,000 in 1958, and the poultry population from 5 million to about 24 million over the same period. In 1958, 6 million chickens were inoculated against disease. In the field of industrial development, an Industrial Promotions Board has been established, legislation giving tax relief to selected industries is in the process of being introduced, arrangements are being made for the protection of selected industries, and a "Buy Singapore" campaign is about to be started. A Tourist Promotion Bureau has been established. Negotiations are at present in progress with the Governments of the Federation of Malaya, Sarawak, North Borneo and Brunei for a revision of the existing Currency Agreement which, if successful, will maintain the Currency Commission in being and the Malayan dollar in circulation for a period of years, and enable the Currency Commission to invest a portion of the Currency Fund in local government stocks. Such is the record of the present Government in the financial field. It is one of which a first elected government in any country might well be proud. It is the outcome of the courage, moderation, and commonsense which have been the outstanding characteristics of the elected Members of the Government with whom it has been the privilege of ex-officio Members to be associated. The incoming government will continue to face many problems in the financial and economic field. These problems will require for their solution statesmanship, an appreciation of the importance of issues wider than local party politics, and a realisation of the need to maintain confidence, internally and externally, in Singapore as a centre of finance, shipping, communications and trade of international importance. The main problem will be to reach an understanding with the Government of the Federation of Malaya in the field of monetary, fiscal and economic policy. Fortunately, the wisdom and farsightedness of the Government of the Federation in agreeing to remain a party to the existing Currency Agreement, subject to certain amendments which should present no difficulties to the other parties, and to continue to use the existing Malayan dollar for the time being, has given us a period of grace in which to reach agreement on these matters. For agreement there must be. In my humble opinion, while an integrated Pan-Malayan economy would be to the incalculable advantage of both territories, Singapore has no satisfactory future unless she is associated in the closest possible way fiscally, financially and economically with the Federation. All possible efforts must be directed over the next two or three years to achieving this association. Another problem will be to raise revenue to meet mounting expenditure. I do not say that the measures which the Government have introduced have exhausted the taxation potential of Singapore. But they have gone a considerable way towards doing so, and the new Government will be considerably exercised to find means of taxation which will not weigh penally on any particular section of the community or business interests in Singapore, which will not harm the economy, and which at the same time will fit into the Pan-Malayan fiscal scheme which it must be its aim to achieve. Mounting expenditure on the social services, particularly education, will be a major problem facing the new Government. Each year 50,000 children demand education in primary schools. This demand requires more schools, more equipment, and more teachers. In addition, there are heavy and increasing commitments in the field of higher education. Statistics for the past four years suggest that the recurrent cost of education will increase by at least $10 million a year, and possibly more, in the future. Having regard to the difficulties of raising revenue, to the fact that recurrent expenditure on other services will inevitably increase, it will clearly be difficult, if not impossible, to meet a bill for education of this magnitude. It is clear that means will have to be found to reduce it. Another major problem will be the question of planning development in the years to come. I have already touched on the difficulties which are likely to be experienced in raising loans in the future and on the need to pursue policies, not only in the central but also in the local government which will commend themselves to would-be investors. I have also at various times stressed the necessity of continuing to make substantial annual contributions from revenue to development. At the same time, even allowing for the creation of the most favourable climate for investment and for the most substantial contributions from the revenues of all interested authorities, it seems more than probable that demands for development expenditure by central and local government authorities will far outstrip the capacity of these authorities to raise funds, that development will have to be planned on an island-wide basis with the strictest regard for priorities, and that development expenditure in the future will have to be on a greatly reduced scale compared with what it has been in the past decade. This will not be an easy task. Each claimant for funds, whether it be the Minister for Housing in respect of public housing, or the Minister for Education in respect of schools or higher educational facilities, or the Minister for Health in respect of hospital beds and clinics, or the City Electrical Engineer in respect of power or light, or the Health authorities in respect of sewage, will consider that his claim is more important than all the others. It will be an exceedingly difficult task to allocate priorities amongst the various claimants and to draw up plans for some years ahead in the light of the funds likely to be available. The task of deciding priorities and how much should be devoted to each priority and over what period is a matter for the Government after consultation with the various interests concerned; but it is a matter which will demand the greatest goodwill and co-operation in the interests of Singapore, and will call for knowledge and ability of the highest order on the part of the planning authorities. It is a task which will have to be started as soon as possible. A certain amount of ground work has been done but progress has been held up by the lack of suitably qualified and experienced staff with the necessary time at its disposal. At the same time, difficult though they undoubtedly are, I do not think that any of these problems are insoluble. Given goodwill, wisdom, commonsense and an appreciation of the broader issues involved, I am sure that the Government which comes into power after the next election will find solutions. Lastly, I should like to pay a tribute to the Treasury officials who have prepared this budget for 1959. They have worked with exceptional diligence for very long hours over a very difficult task and I owe them a deep debt of gratitude. Sir, I beg to move, "That the Bill be now read a Second time." 11.45 a.m.

The Question is, "That the Bill be now read a Second time." In accordance with paragraph (2) of Standing Order 69, the debate now stands adjourned. Debate to be resumed, what day?

12th of December, Sir.

Mr Speaker, Sir, I beg to move, That at its rising today, the Assembly do stand adjourned to Friday, 12th December, 1958. It is desired to resume the debate on the Second Reading of the Appropriation Bill on that day, Sir. As Friday is not a sitting day, this motion is necessary under Standing Order 7 (2) . Sir, I beg to move.

Sir, I beg to second the motion.

Question put, and agreed to. Resolved, That at its rising today, the Assembly do stand adjourned to Friday, 12th December, 1958.

11.47 a.m.

Mr Speaker, Sir, I have a Certificate of Urgency from His Excellency the Governor in connection with a Bill intituled "An Ordinance to amend the Income Tax Ordinance (Chapter 166 of the Revised Edition)". Certificate of Urgency handed in.

The Certificate is in order. Please proceed.

Sir, I beg to introduce a Bill intituled "An Ordinance to amend the Income Tax Ordinance (Chapter 166 of the Revised Edition)". Bill read the First time.

Second Reading, what day?

12th December, Sir.

Will typed copies of the Bill be available for distribution to hon. Members?

They are available.

They will be distributed in due course.

Order for Second Reading read. 11.50 p.m.

Mr Speaker, Sir, the Nanyang University Bill before this House today is a new milestone in Chinese education. When Nanyang University was established in 1954, it was a private institution that aimed at providing higher education in Chinese. Chinese education was not the concern of the Government at the time because it was not part of the Government educational programme. Apart from giving partial aid to Chinese schools, the Government then was not committed to Chinese education in any way. Nanyang University proceeded under its own steam from the day of its registration as a limited company providing courses of study in Arts, Science and Commerce, entirely on its own. There was no consultation between them and the Department of Education before the introduction of the Ministerial form of Government and later on between them and the Ministry of Education. Such a state of affairs was clearly unsatisfactory and indeed undesirable because, unless the University had a system and courses of study that can fit themselves into the local pattern of education, the graduates will find very little outlet after they have gone through the portals of the University. In October, 1956, when the Government committed itself to Chinese education with the opening of Government Chinese schools as a result of the students' unrest, the chance had come for bringing Nanyang University into the whole educational set-up in Singapore. Because Nanyang University, was essentially a private institution, it is natural that to bring it into the setup it must meet with various difficulties. When I say that the time had come to bring Nanyang University into the whole educational set-up in Singapore, I do not mean that Nanyang University would be a Government institution or even Government sponsored, but it would be an institution with Government representation so as to make certain that Government's views are brought to the attention of the people who run it and vice versa, and so that it will not develop into a foreign university. Can we imagine a university in Singapore providing education for our children under a system foreign to ours? I am glad that this Bill has come very closely upon the recent Government decision to give financial aid to Nanyang University. What better evidence can there be of the sincere desires of both the University and the Government to see that hereafter the University should form part of the educational system. Also the appointment of a Commission to examine the standards of Nanyang University should clear the doubts of people once and for all whether both parties are determined to see that the academic standards of Nanyang University are adequate and worthy of its name. The Commission is expected to assemble some time in February next year and it is my earnest hope that the Commission will be able to accomplish its task within the time set for it. Meanwhile I hope that those persons who are now responsible for the academic work and administration in the University will maintain the highest standards possible. Coming to the Bill itself, I want to draw Members' attention to the cardinal principle, that the administrative and the academic must remain separate. For the administration of the University, clause 19 of the Bill provides for a University Council consisting of the President of the University and twenty-seven other members. Three of the twenty-seven members will be Government nominees, two members from Members of the Senate, two members from the Guild of Graduates when there is one, and the rest elected from members of the University. The membership of the University is a special feature in the Bill because many people have contributed various sums of money to the University when it was established in 1954, and obviously these benefactors cannot be forgotten with the incorporation of the University under the law of Singapore. Clause 8 of the Bill provides for this membership. Clause 24 of the Bill provides for a University Senate who will be responsible for academic matters. Looking further ahead we have provided for a Guild of Graduates under clause 25. Clause 9 provides for a Council. In the Council, the members will be elected for a period of two years consisting of the Chairman (elected), a Vice-Chairman (elected), the President, who shall be the executive and academic officer of the University and also a member of every Committee. The President is actually equivalent to the Vice-Chancellor and, in addition, we will have a Secretary appointed by the Council and a Treasurer who may be a salaried officer. Those are the main features of the Bill before the House and the rest is a matter of detail. The subject of this Bill is one of public concern and it will be necessary to consider it more fully in Committee stage. Sir, you have rightly ruled that this is a hybrid Bill and I shall move at the end of the Second Reading that this Bill be committed to Select Committee, and in Select Committee I propose also to make certain amendments to the Bill one of which will be the addition of some provision for the setting up of a Students' Union in the University. Sir, I beg to move, "That the Bill be now read a Second time." Question proposed. 11.54 a.m.

Mr Speaker. Sir, Nanyang University was created as a private limited company, but when this Bill is passed by the Assembly, it will be incorporated as a public institution, having as it were come of age. It is befitting that on coming of age it should be recognised by Government by having three members of its Council of Management nominated by the Council of Ministers and having a grant of $854,000 for current expenses and future bursaries. This grant, Sir, I am sure is only a beginning and when the University enlarges its activities, larger grants will be made. Nanyang University has filled a gap in our educational system by providing post-graduate education for our children who have attended Chinese schools; because, until this University started, there was no place for them for further studies unless they left for foreign shores. I am quite sure, Sir, that Nanyang University and the University of Malaya will in the future provide most of the men we require to run the very complex business of self-government. Sir, I want to thank the founders and generous donors for their courage and foresight in providing such an institution to fill a very vital need for Singapore. I heartily support this Bill. 11.57 a.m.

Mr Speaker, Sir, despite the gloomy political and economic picture during the last few months, this is a very beneficial move by the Government. I extend my hearty congratulations to the Government, especially to the Minister for Education, for finally launching this important Bill. Sir, I am not only going to support the speech just delivered by the Member for Paya Lebar who extends his thanks to the founders of the University, but I would also call upon this House to place on record the beneficient gesture and the courage shown by the founders of the Nanyang University, and particularly the support of the taxi-drivers, trisha-riders, coffee-shop assistants and amahs who have contributed to make Nanyang University possible. I would also like to call upon this House to recognise the fact that this Bill is of significant importance. I expect it will not only meet with popular support but will also meet with unanimous approval. Sir, Nanyang University is the result of a movement which has proved that our people are able and prepared to accept the challenge of the future, irrespective of race, culture and religion - a movement with a united force. I particularly appeal to Malayan readers to realise this, no matter what barrier has been created - Malayan Malays and Malayan Chinese. The creation of Nanyang University has sown certain doubts and fears particularly among the Malay community. Sir, I think this is now the opportunity for Malayan leaders to speak their minds on what they think of Nanyang University. What do they think of the mass support given to this University, and what is the importance of this University in the future? Sir, I think it is high time for all the communities, not only the Malays, to recognise that Nanyang University belongs to the people of Singapore as well as Malaya. Judging by the number of students attending the University today, more than 60 per cent of them come from the Federation, it is therefore a clearly accepted fact that local consciousness and local loyalty and even the building of a greater Malaya exist in their hearts. I understand that from this year a Malay Department will be set up in Nanyang University. I ask hon. Members to consider whether this should be encouraged and, if so, whether it should be enlarged and strengthened to cope with the political development in this country. I also understand that an Indian Department is about to be launched. Sir, it is obvious that Nanyang University is no longer confined to the Chinese community, because it is already making an important contribution and is an important asset to this country. Sir, we learn from the Minister for Education that this Bill is going to be committed to a Select Committee, and I will therefore not go into details now. But I wish to add a few important points. First, is it possible for the Singapore Government to negotiate with the Federation of Malaya to recognise the importance and the nature of Nan-yang University and to give it not only their moral but also their economic support? Secondly, whether the Government of the Federation of Malaya and the Singapore Government can give an assurance that Nanyang University degrees will be recognised in future? Thirdly, I would ask the Government to recognise that, although they have made a subsidy to Nanyang University, this is but only a temporary measure and that a long-term economic aid policy will be drafted. Fourthly, I would urge the public to continue giving its support to Nanyang University and should not be led into believing that, just because the Government has extended its support to the University, its own support should be stopped. I wish to place on record my statement that public support is not only important but also necessary at this juncture. Lastly, I wish the Minister for Education would include the Students Union into the Bill.

He said so!

I think this is an appropriate time to suspend. I will take the Chair again at half-past two. Sitting accordingly suspended at 12.08 p.m. until 2.30 p.m. Sitting resumed at 2.30 p.m.

Resumption of debate on Question, "That the Bill be now read a Second time." Question again proposed. 2.31 p.m.

Mr Speaker, Sir, I must congratulate the founders of the University who have had a very trying time and who are now nearing success. I have been to the University many a time, and I admire this fine institution and the work which it is doing and will do. One of the Members from this side of the House said that it should be a University for all races. Let me tell him that there are quite a few Indians who are full members and who were among the first to donate to the founding of this institution. It is rather late in the day for this Government, now with a different label, to acknowledge and help, and help only with a paltry sum. I hope the future Government will give this University its due place in the Colony. One thing I must remind those in charge of the University is that they should not produce people who will do clerical jobs only. The time will come very soon when we will be free and independent, and what we want is to run our own country. The colonial period - 134 years now - has not yet produced enough people with required diplomas who could manage our own affairs. It is only recently we have been trying to send students to the universities abroad to get their diplomas. 2.33 p.m.

Mr Speaker, Sir, the policy of the Government is to provide equal treatment for all schools. Why cannot the Minister for Education accord to Nanyang University the same treatment as is given to the University of Malaya? As we all know, Nanyang University came into being through the efforts of certain rich merchants and a very big number of workers of all types, who, because they had the interest of Chinese education of this country at heart, voluntarily devoted their time and money in building Nanyang University in 1954. Nanyang University, established this year, will provide further studies for those students leaving Chinese schools after they have passed Senior Middle School examinations. I cannot understand why Government should delay the recognition of degrees from Nanyang University. The University should deserve the fullest support from Government. I would also remind the Minister for Education that 60 per cent of the students at present studying in Nanyang University are from the Federation. The Government should therefore make an attempt to try and get financial support from the Federation Government. If you look at the two Bills - one for the University of Malaya and the other for Nanyang University - you will see that there is discrimination. Why should there be discrimination? Even the Nanyang University Students' Union, a very important organ of the University, has been left out of the Nanyang University Bill. Is not this discrimination? Government, instead of showing equal treatment for all the students of Singapore, is thinking of barring the students from forming their union. The Minister for Education just said that he will amend that clause. The students' body of the University of Malaya also raise their objection to this omission. I think it is the concern of Government that Nanyang University should be put under its wing, and grant-in-aid extended to it. 2.37 p.m.

Mr Speaker, Sir, as one of the eleven original founders of Nanyang University, I thought I ought to rise, not only to support the Government, but to thank it for bringing this Bill to the Assembly. I might perhaps also try to clarify some of the misunderstandings about Nanyang University. Nanyang University was proposed at a time when the founders were convinced that, because the student population in the Chinese schools was very much bigger than that in the English schools, they had a need to go out for higher studies. That need was not available here, in view of the state that the University of Malaya was in. They could not accept enough students so as to prevent them from being attracted to China and other overseas territories for their higher education. At the start, a lot of misunderstanding was created and there was strong opposition to the establishment of this University, because it was thought that the founding of Nanyang University would divert private donations from the University of Malaya; and secondly, it might create a divergence of loyalty. The founders were convinced that they would be helping the country by helping to absorb these surplus students for their higher education. I hope it is now fully proved that not only does it not divert the common loyalty, but it is also now taking in students whom the University of Malaya cannot take, students in fact from English schools. The common misunderstanding about Nanyang University is perhaps this - as a Member has just mentioned - that it is only for Chinese education. In fact, it is not. Any student of Nanyang University must know English. In fact, a lot of the subjects in the faculties have to be taught in English - Science, Commerce and so on - so that, in fact, it is at least a bilingual university. It was due to the unity of purpose of the founders and the people that we have been able to create Nanyang University. Last year, Sir, professors from the United Kingdom who came over here and paid a visit to the University had variously estimated the buildings, hostels, the library, including the three faculties, to cost round about $25 million when we had actually spent about $6.8 million. I am still one of the Treasurers of the University, and we know that the cost of this University would, in fact, be less than that of the Polytechnic which the Government is building. Now that is one of the misunderstandings which I want to remove. It is not only a university for Chinese learning. In fact, we already have plans to teach Malay. All students, whether they be Malay, Indian, or even European would be equally welcome into the University. We hope also that if this misunderstanding is removed, the Government of the Federation of Malaya will realise, as the Singapore Government, I think has fully realised now, that it is in fact an undertaking on the same national basis as the University of Malaya, and will give it more support. Quite recently, we had to debate whether an increase in fees should be introduced next year. The fees at the start were $30. The original students still pay $30, but for the students who joined last year, they will have to pay $60. For next year it has been proposed that this fee, in order to cover the necessary expenditure, should be increased to $100 per pupil. It is quite understandable that with the present trade recession the merchants who had originally undertaken to contribute very large sums are perhaps finding difficulty in doing so now, and the Government of Singapore must be prepared to support Nanyang University to a very much larger extent if it is to be kept going as it is now. I also hope the Federation Government will fully understand the purposes of the University, and in time also give their support to it, since it has been pointed out that over 60 per cent of the students in Nanyang University are from the Federation. 2.45 p.m.

Mr Speaker, Sir, I was somewhat disturbed to hear the speech of the Member for Changi (Mr Lim Cher Kheng) this morning. I do not know why he has particularly singled out the Malays in connection with the Nanyang University Bill which was introduced by the Minister for Education.

For a good reason.

To my mind, Sir, I think that this is a dangerous and deliberate attempt to foster communalism in this Assembly. What I want to know, Sir, from the Member for Changi is this. Is he insinuating that we, the Malays of Singapore, are anti-Nanyang University? Is he trying to say that we, the Malays of Singapore, are anti-Chinese culture?

I never said that.

Order.

If he is, Sir, then he is making a very great mistake. Mr Lim Cher Kheng rose -

Is it on a point of elucidation?

On a point of explanation, Sir.

If the Minister will give way.

I will not give way.

Coward!

Order. The hon. Member knows that that word is not permitted in this Assembly. Will he please withdraw that word?

I withdraw it, Sir.

If the Member for Changi feels that he has been misunderstood, he will have the opportunity of making a personal explanation after the Minister has completed his speech and I will give him the opportunity. Dato Abdul Hamid.

Sir, we, the Malays of Singapore, are anti no one except those who are dishonest and those who would stoop low enough to become stooges of a non-Malayan way of life and that, Sir, would include those who are disloyal to this country. On this question, we the Malays of Singapore will never compromise. To make my point clear again, Sir, on this question of the Bill which Government has introduced, I for my part and my Party support it fully.

Mr Lim Cher Kheng, in explanation.

Mr Speaker, Sir, it is with the deepest of regret that I had to hear the speech by one of the respected Ministers on the Government Benches who also happens to be the leader of a communal Party.

Order I think the hon. Member is going beyond the limit permitted by Standing Order 30 (4) which merely says: "A Member who has spoken to a question may again be heard to offer explanation of some material part of his speech which has been misunderstood; but he shall not introduce new matter." If the hon. Member will confine himself to the passage in his speech which he alleges has been misunderstood, he will be in order.

Sir, I categorically deny the allegation made by the Minister for Local Government, Lands and Housing that in my speech this morning I singled out the Malays as anti-Chinese culture and anti-Nanyang University. I only said that it is time for the Malayan leaders to open their eyes and contribute towards its success. 2.50 p.m.

Mr Speaker, Sir, I think that all the speakers who have contributed to this debate were aware of the massive demonstration of Chinese enthusiasm in support of Nanyang University when it was opened earlier this year. Today I think they all join in paying tribute to an institution which they all know has the unquestioned support and loyalty and which symbolises the determination and ambition of the mass of the Chinese population throughout Malaya. Sir, therefore it becomes a time when a few more votes are attempted at. I would like to take this opportunity to say how difficult it is for us to find a solution to our long-term problems unless we have our political leadership willing, able and courageous enough, to face up to its problems. Sir, there is one great difference between Nanyang University and the University of Malaya which nobody has pointed out, namely, when we passed the University of Malaya Ordinance, there was a parallel in the Federation. There is none in the Nanyang University. What it means today is that it is a demonstration of the answer to the conflict of forces in the Singapore situation. Within the context of the Singapore situation, with a population of 1½ million of which a little over a million are Chinese, the answer is obvious. With a resurgent and rejuvenated China, powerful, and with a proud people, where the culture is undergoing a renaissance, it is inevitable that it must find its ripples and its echoes in South-East Asia, and nowhere in South-East Asia amongst the 15 million overseas Chinese are the overseas Chinese so fortunately placed as in Singapore. Nowhere in the capitals of any of the independent nations in South-East Asia - Rangoon, Bangkok, Saigon, Manila and Djakarta - have Chinese commercial ability and trading skill won them a place of such importance. In none of them are they able to wield the political power which today makes the Government openly recognise the establishment of Nanyang University. Sir, this raises tremendous problems if we do not understand the difference between the long-term and the short-term approach. If we want to look for a few votes for next year's elections, then the line we can take in this Chamber, and outside in Press statements, will be different from the line we will take, if what we have at heart is not a few votes, but the future well-being, prosperity, harmony, national solidarity and unity of seven million Malayans. Sir, one million Chinese unfortunately cannot determine the future of Malaya. Not even three million Chinese in the Federation can determine the future of Malaya. And it is that future which we have to determine - or at least the basis of a solution to that future (the formulation of the Malayan nation has to be agreed) - before we will get the Federation Government to agree to acknowledge Nanyang University as a Malayan institution to which they grant recognition, and which they also subsidise. Otherwise let us face the fact: what Nanyang University will become is a Singapore University - and a Chinese one at that - despite all the efforts to try and colour it, and despite all the efforts to introduce the teaching of Malay and Indian languages, and so on. Finally, at the back of the minds of the Malay people - the Tunku is a very honest and a very frank man who agreed that the P.A.P. analysis of why there is no merger is correct - they want to know what happens to the Malay language and the Malay culture in the new Malayan nation. If theirs is going to be the secondary language and the secondary culture in a free and open competition of cultures and languages, then there will be trouble. Then you will never get recognition of Nanyang University, because Nanyang University represents to them the dynamism, drive, and ability of a very powerful culture and of a very able people. When we settle this question of national language, and the basis upon which the new Malaya is to be built, and we satisfy them that the Malay language is the national language, then they will not object to anybody learning their own language and fostering the development of their own culture within the context of a Malayan society. Sir, no university can exist as a good university in the modern world without State grants. A privately-endowed university which is able to carry out its duties as a seat and centre of learning and research and the quest for human knowledge, is no longer possible unless the large expenses which a good university must incur in equipment and recurrent costs are met from Government funds. The fact that a group of Chinese leaders have been able to get Nanyang University started is a tribute to their determination and drive. But I think that they will be the first to acknowledge, now that they have started it, that its future prosperity as a University cannot depend on the fluctuations in the rubber or tin trade. Having started the University, you cannot put up or cut down your fees and admit more or less students, as the price of rubber goes up or comes down, or the bank accounts of your rubber brokers go up or come down. Let us face this that in Singapore, so long as you have an electorate such as it is, it must inevitably mean that Nanyang University will be subsidised by the Singapore Government and its degrees will ultimately be recognised by the Singapore Government. There is no escape from that logical conclusion so long as you seek the answer in a Singapore context. Given the facts obtaining in the Singapore election register, the answer is obvious. What I would like to know the answer to is not Nanyang University in the context of a Singapore situation, but Nanyang University in the context of a Malayan situation and, more, Nanyang University in the context of a South-East Asia situation. Let me elaborate. By the curious twists and turns of British colonial government, Singapore is emerging as a semi-independent City in which, as a result of the past immigration policy of the British Government in wanting efficient and cheap labour, the power in the hands of the electorate is largely Chinese. Let us face the facts. The Chinese, including those who have been here for generations, are determined to preserve their language and culture. If we deny that, then we are being dishonest. Sir, at the same time, this power poses acutely the problems which the Malay people have to face. They have not been able to found a Malay university. They have, it is true, a college to teach the tenets of Islam. It is unlikely that, without State grants, such an institution would ever be found. They watch this institution, therefore, with a certain amount of apprehension because they would like to know what the ultimate future holds for them. What does it symbolise? I believe that the leader of Singapore U.M.N.O. is quite sincere when he says he is not against Nanyang University. He cannot be because he is in a Chinese situation in Singapore, but, at the same time, I would like to admit that I do not believe that this is the answer which the South-East Asia situation would give. Ethnologically, Singapore stands in the centre of a belt of Malay-speaking people, stretching from the north of Sumatra right down to the Celebes, perhaps nearly to the tip of West Irian. There are 80-million such people, and one day they are going to put their house in order. When that happens, this is their region. Therefore I say, as a Chinese, I would not wait and create problems which are difficult of solution later on, but would resolve these problems now before they get out of control. It is as simple as this. 60 per cent of the students are from the Federation. But the Federation Government is not going to pay one cent in support of Nanyang University, or the students, let alone pass a statute openly recognizing it as a seat of learning and as an institution for the advancement of human knowledge, until they are quite sure that it fits in with the scheme of things which is acceptable to them. And what I would like to pose to this Assembly is the long-term problem of finding that basis which is acceptable, not only to the Malays in the Federation, but one which will fit in with the pattern of South-East Asia. Nanyang as a university, where primarily the Chinese foregather, is not objectionable, and will not be, provided it does not pose a threat to the indigenous language and indigenous culture. And if we want a solution, then I say, openly recognize this fact today - that the basis for national unity and solidarity in Malaya is only possible on the basis of a Malayan national language. When that offer is acceptable, then not only accept it, but translate in into practice where your students in Nanyang pursue their studies of Confucius, be it with the imprimatur of the Communists, or without the imprimatur of the Communists, depending upon whether the textbooks are imported from the mainland of China or from Taiwan. The time when all those students can converse with Hon, the Dato, who is our Deputy Chief Minister, in a language which he understands, and perhaps even with more erudition if he has had the time to study that language, is the time when we have struck the basis of national solidarity. Nobody minds it, provided he knows that it is not a language which is going to replace Malay. But so long as he believes that it is a language which may well not only claim an equal status but ultimately claim more than an equal status, then you will find no solution to the problems. If the Member for Changi today not only pleads his case but is able at the same time to demonstrate to the Malay people that he can speak Malay as well as everybody else, or as well as every other Malay, then we have a basis for national solidarity; because then nobody will be worried if the Member for Changi does speak English which is heavily accentuated with the Teochew, Mandarin and Cantonese dialects. It is only when we have settled the base that we can put Nanyang University at the apex of an education pyramid. At the moment its base is different from that of the University of Malaya. The University of Malaya has a diversified Malayan base and, for that reason, although the Tunku and his education experts want to try and insulate Singapore students - in case it is believed that radicalism is endemic only to Singapore - he acknowledges that it is the stream from which the administrators, the technicians and the technologists who are going to run the apparatus of State, the organs of government are to come. What is going to happen now, unless we find a solution quickly, is that hundreds of able and energetic graduates of Nanyang University (60 per cent of whom have come from the Federation) will be unable to get jobs in the Federation, and they will therefore remain here to seek employment. Therefore, all that we are creating is a more difficult situation to resolve as the population and this group of people expand and become more and more dissatisfied with the existing order. If, however, an attempt is made now to explore the possibilities and to formulate the terms and conditions under which Nanyang could become a Malayan university, and not merely a Singapore university, then we might be able, in the early formative years of the University, to shape and design its policy and to lead it along parallel lines with the University of Malaya. If we do not do that, then we are in for a very difficult time, which will get more and more difficult year by year. Sir, if we admit that Singapore and the Federation are one economic unit, as I heard the Minister for Commerce and Industry admit, and we do not want this one economic unit to be torn asunder by all the stresses and strains of ethnological, linguistic, and other divisions, let us resolve them before they become acute. In the last and final analysis, we survive or fail according to whether we can find a solution which is not only acceptable to the Malays, but also to the Chinese and the Indians. The Indians do not pose the same difficulty because they do not pose as a counter culture competing for supremacy. The Chinese do, and it does no good not to acknowledge this. Let us openly acknowledge it and find a solution, and when we find it, then we have got the basis of a healthy state. Sir, the easiest thing in the world today is to stir up deep-seated emotional prejudices. When the Ceylonese united left-wing group won the last elections on the basis of Singhalese as the national language, with the aid of Buddhist monks, I do not think they envisaged that ultimately there would be martial law in Ceylon as the Tamils revolted. In the same way, I do not believe for one moment that the Federation Government, whatever its policies and desire, can prevent the continuance of the Chinese language as the mother tongue, and one of the media of instruction of the Chinese in their schools, unless, of course, a bloody revolution is not considered a deterrent enough. But at the same time, a state of deadlock where one views the other with suspicion, because one believes the other wants ultimately to obtain supreme control over the minds and the, tongues of all, must lead to a gradual deterioration of racial relations. In Singapore we have a very good opportunity in a numerically Chinese-dominated city to demonstrate to the Malays, both here, in the Federation and in South-East Asia, that we are prepared to be part of the Malayan scene and part of the South-East Asian context. The less we have of chauvinist slogans or sentiments whilst discussing a matter highly charged with emotion, and particularly Chinese chauvinist slogans, the healthier it is for everyone. Sir, we support this Bill but, at the same time, express our regrets that a Malayan solution has not been found to the problems of Nanyang University, both as regards its recognition and its financial continuance. 3.13 p.m.

Mr Speaker, Sir, I am glad to see the support given by this House to Nanyang University. All the support is deserving but the most important of this support is that coming from UMNO's representative. Without the Nanyang University, where could the Chinese students, having finished their secondary education in the Chinese schools, go to? If they were to go to the Chinese mainland, they would be given a one-way ticket from which there would be no return. If they were to go to Formosa, their loyalty to Malaya would be questioned. So Nanyang University offers them a solution. Hence we have full support, with students coming not only from Singapore, but also from the Federation of Malaya to Nanyang University. Sir, in order to have personal contact with the students, I spend two hours every week at the University and I can give my assurance to the non-Chinese communities in Singapore that the students of Nanyang University are loyal citizens of Malaya. They were proud of their Federation of Malaya citizenship; so they told me when they came to me. That assurance also applies to the Nanyang University students from Singapore. There is one other assurance I would like to give to this House, to the whole of Singapore and the Federation of Malaya, and it is this: that the Nanyang University students accept Malay as the national language of the whole of Malaya. The future, Sir, can be this. Nanyang University might become one of the colleges of the University of Malaya. A portion of the University of Malaya in Singapore might also be known as Singapore college. Nanyang college, Singapore college and Kuala Lumpur college, might form the University of Malaya in a Pan-Malayan setup. Let there be no fear of the loyalty of the students of the Nanyang University. I am very glad that there will be some provision made for the Students' Union; that perhaps a building will be given to the students of Nanyang University over which they shall have absolute control. I remember, when I was in the University of Hongkong as an undergraduate, that the whole building was given to the students and they had absolute control so much so that they had even the right to exclude any member of the teaching staff. We enjoyed that, Sir, and it is from these little things that we have such loyalty to our alma mater. Sir, in my vision, the Nanyang University will be a lighthouse in South-East Asia. May it be so. 3.16 p.m.

Mr Speaker, Sir, this. Bill represents a necessary and proper evolutionary development in Singapore's educational progress, and few would wish to do other than welcome it. But as the taxpayer will have to help pay for the running of the University, it is reasonable that Government should participate in its administration and guide its deliberations. What is vital, however, is that the academic standards should be proper University standards, and it is a pity that it has not been able to establish this yet at this stage. We hope that the Commission will be able to complete the work next year as soon as possible and solve a vital problem. We welcome this Bill, and the fact that it will go to the Select Committee for further examination so that if there is still any controversy or misunderstanding in any of the provisions they can be ironed out. I think the Assembly has contributed in the past few years to a broader-minded understanding of the issues in Singapore, educational, academic, cultural and social, call them what you will. It is important to bring the Nanyang University within the comity of Malayan educational institutions, and we hope that the Bill will be a step towards this end. I think it is important to realise that, as the hon. Member for Tanjong Pagar has said more eloquently than I could, it is the first step and not the last. 3.18 p.m.

Mr Speaker, Sir, I welcome this Bill, and I say that the Malays have no fear of Nanyang University as a threat to them. I do not believe that when we start anything it will be perfect. Rome was not built in a day. Today we find that Nanyang University has already started Malay as a language, and I am certain that it will be developed in such .a manner as to make it one of the very important subjects in that University. Those who are sitting in control of that University are men of intelligence and experience, and I am certain that their guidance will not lead Nanyang astray, but lead it so that it becomes .a pattern in our Malayan scene. So far as the University is concerned, Sir, I welcome the establishment of another institution for higher education. The addition of another university to Malaya and Singapore is a blessing for the whole of Malaya and will give opportunities to a greater number of students to have a chance of higher studies. In fact, as a school teacher, I have found that many of our students cannot get places in the University of Malaya, and that a large percentage of them has gone overseas to study, even in English universities. All of them, or a very high percentage of them, did well and returned with degrees from foreign lands. The creation of Nanyang University will help those who have no means to travel abroad, and I certainly think that we have to give it the fullest support. Many years ago, a long time before the war, we did not hear of any university in Malaya. Anybody who wanted a degree must go overseas, coming back with degrees either from English universities, European universities or American universities. Today, we find that we are starting Our own university. I hope that we will be able to develop our university so that it will not only serve Malaya and Singapore alone, but will serve the whole of South-East Asia. Singapore is the focal point for trade and communications, and I hope that it will also be the centre for learning in South-East Asia. This is a land where democracy still rules. We all support the idea of democracy, we support this ideal, and if we have students from other countries around us coming to these universities to learn our ideals, then I think democracy will thrive in the whole of South-East Asia. Previous to the opening of Nanyang University, we have only the Malayan University meant for students who are educated in English. Those who were from Chinese schools were forced to go to China for further studies. If Nanyang University were not opened, they would either be stranded in Singapore or Malaya or they had to start their schooling all over again in order to get admission into English universities. There has been a fear expressed by the Member for Tanjong Pagar that, by creating Nanyang University, we are turning out many trained people who will be coming out and yet cannot find employment. I feel that there should be no such fears. Many able people are required in commercial firms. I would say that the best talents are absorbed into all these institutions. Business must progress and today we find many of the local businesses progressing to as high a level of efficiency as those of the European communities. They need men, and they need men who are trained in a language that will be useful to them. Nanyang University students know Chinese, and certainly our trade needs this language. If we trade with the West we need English and European languages; and if we trade with the East we need Chinese. We need both the languages, and we need Malay if we are trading with Indonesia. I think from these institutions you will find men coming out well able to take care of this need. I am certain that they will not come out with the problem of unemployment aggravated, but certainly they can be absorbed into the commercial firms or Government Departments of all territories. Today the Minister for Education has pointed out that the Government has come to the aid of Nanyang University. We welcome that, and we certainly feel that this is a gesture that Government will come out with greater assistance as time goes on when the need is proved; but I would like to stress that universities must not have assistance granted them with strings attached. Universities should be independent institutions, free from rigid controls, and they should develop and contribute to this land in the best way they can, and not in the manner dictated by Government. Nanyang University will have the guidance of its elder brother, the University of Malaya, and with mutual assistance exchanged between these two universities, Nanyang University will have a bright future.

Order. If the Chief Minister has a business motion, this is the time to move it.

Mr Speaker, Sir, may I seek your assistance? The Assembly has this morning adopted a motion that at its rising today the Assembly do stand adjourned to 12th December. It is thought by Government that, as the motion of the Member for Tanjong Pagar is a very important motion and will require a full day's debate, perhaps we could continue tomorrow, but if you rule that we cannot, Sir, then I will have to move a motion for exemption of business.

The method which the Chief Minister could adopt is to move a motion that, notwithstanding the resolution of the Financial Secretary this morning, this Assembly do sit tomorrow. He must have the assent of Members.

Thank you, Sir. May I now seek, Sir, the assent of Members to move a resolution to enable the sitting to be continued tomorrow?

Is it the pleasure of hon. Members that the motion be moved? Hon. Members: Yes.

Thank you, Sir. May I now move, That notwithstanding the resolution adopted this morning, at its rising today this Assembly do stand adjourned till tomorrow.

I second it.

Question put, and agreed to. Resolved, That notwithstanding the resolution adopted this morning, at its rising today this Assembly do stand adjourned till tomorrow.

Debate resumed. 3.30 p.m.

Mr Speaker, Sir, I think we have heard more than we had expected to hear and I would not like to tire you and the Members down in this Assembly. So I will add just a little to what has been said, and that is, I would plead to the Government to look after the Nanyang University as a second son just as well as it has been looking after its elder son, the University of Malaya. 3.31 p.m.

Mr Speaker, Sir, I should not like to be the only silent Member in the House when there is unanimous support given to the Nanyang University Bill, support which I myself would give. I have recently been reading an article by Professor Lewis, who is an economic expert on the developed and under-developed territories, and he, after examining various types of investment, felt that perhaps the highest priority of all was for education, since it is the educated who in the end could carry out the planning and management which will be necessary for a detailed investment of all kinds. For that reason, I believe that it is right in Singapore that we should have been pouring money into the building of primary and secondary schools and that we should have two universities on our tiny island, because from that high rate of investment in education, we can hope to reap a high rate of economic benefit if all goes well. Without that high rate of investment - the basic investment - we should have much less prospect of mastering the problems which undoubtedly face us. The hon. Member for Serangoon referred to the great importance of Nanyang University being independent, free from outside control and running itself. I am not going to discuss that in detail, but I would say that I most fully agree with that principle with regard to universities. There are always difficulties, because a university in the world today, certainly in Singapore, has not got a free endowment in its own hands. It has to go to one financial source or another for support, and the English have a proverb - he who pays the piper calls the tune. That is a problem which will always recur in all matters affecting universities. It is a problem which must be in the minds of the Assembly and the Select Committee of this Assembly. One hon. Member - I have forgotten who - referred to the hope that the Government would support Nanyang University and he hoped that the Federation Government would do something. Sir, this House is almost unanimously a Socialist House and I would myself draw no more than a practical distinction between private finance and public finance. They are all parts of the total national wealth and where the details of control lie, it is an accident of history and a subject for discussion. But the fact is that investment in education, whether it is private investment or public investment, is a national investment and it must be considered in the light of the national interests. Now we have heard a statement from the Minister for Education about the leakages in examination questions. Nobody supposes that leakages in examination questions were because students had a curiosity about them, or because they had a passionate desire to score extra marks because their fathers would he happy to see them get more marks. The simple and sole reason why examination question leakages are liable to occur is because the competition to get up to the highest possible point of the education ladder is so very great and so very urgent, and it is such a disaster to fail and to be thrown off the ladder at whatever point it is - Form IV or Form VI - because the fruits are at the top of the ladder. If you do not get to the top, the fewer fruits you will get. You have heard references in speeches this afternoon to the fact that from our universities we draw the managerial cadres who go into commerce and go into the Government, and go into all the controlling activities in Singapore and the Federation - positions of importance, which people must have skills for, skills which can only be acquired by what we call higher education. That is true. It does present us with a danger which the Socialists must bear in mind. The danger is the creation of a new managerial class subsidised from public funds. The cost of educating a student at a university, as it falls on the public purse, comes to a few thousand dollars a year - up to $6,000 or $8,000 a year - and over a series of years. At the end of it all, the student goes out with his diploma in his hand and his degree, and if he likes to, he can sit back and sell coloured water at a dispensary and charge $10 for it. He can have a very big car and a nice house and several wives and have a very happy life to himself. All this has been achieved by a certain amount of hard work by himself, but essentially because he has been carried by the sweat and suffering of the poor and the taxation which they carry has lifted him up and given him the opportunity of making a very good thing for himself. That is always the danger which we must bear in mind, and perhaps one way in which it can be reduced is to have a very ample supply of those who have been through higher education. My hon. friend and colleague, the Financial Secretary, has pointed to some of the cost factors with regard to our educational problems in his Budget speech, and those are going to pose us very serious problems in the future. We must accept the fact that investment in education is vital to the wealth, prosperity and happiness of this country, but we must also do all that we possibly can to ensure that investment is wise and fruitful investment and that it will serve the needs and provide benefits for all the people and not for any section of the people or for the creation of any new class. 3.39 p.m.

Mr Speaker, Sir, I am glad to notice that practically every Member of this House is supporting the Bill. I only hope that they are all sincere in what they have expressed just now. What worries me is this, Sir: I have noticed in the past, especially when elections are coming, that they have expressed their views just for the mere sake of vote-catching. In my honest opinion, the contribution that the Government has made this year to Nanyang University is inadequate, and I hope that if the Government finds that the University requires more help, it will give it. I feel it should treat Nanyang University on the same terms as it has been treating the University of Malaya. 3.41 p.m.

Mr Speaker, Sir, this morning when the Minister for Education was about to move the Second Reading of the Bill, there was complete silence in this House until the Member for Changi jumped up and so drew your attention. Arising out of that, it has sparked off a debate in which, as the Member for Cairnhill has just said, almost every Member of this House has taken part. Sir, this morning I thought the Bill was going to have unanimous support without a thorough debate - hence the silence that prevailed just when the Minister was about to move the Second Reading. But as the Minister for Communications and Works has said, it appears that everyone has to express his views and not just give silent support to the Bill. I for one would not like to be accused of being a silent supporter. So I would like to express my support for this Bill. I welcome it and at the same time I would like to congratulate the Government for bringing up this Bill. So much has been said on the Bill that I do not think it is necessary for me to elaborate on it very much, especially on the merits of Nanyang University and the question of the national language. The Member for Tanjong Pagar this afternoon expressed his fear in regard to the position in which the students of Nanyang University will find themselves when they pass out. I agree with him on that point. We cannot provide employment for everyone of them. The Member for Tanjong Pagar also expressed the view that we should not just look at the issue from a Singapore outlook. It should be from a Malayan outlook. On the question of educational qualifications, I was told that a Commission has been set up to look into the possibility of recognising Nanyang University degrees. What I am thinking of is this: if Singapore is prepared to recognise the University's degrees, is the Federation of Malaya prepared to do the same? We are separated from the Federation of Malaya and the Federation is an independent country. It does not recognise any of the laws we make; neither do we recognise any of the laws it makes; but at times we do follow the laws that it makes, or at least the Government is prepared to draft a Bill to follow suit. Now if it is the case that 60 per cent of the students in Nanyang University are from the Federation, can we provide employment for them in Singapore? If not, they will then have to go back to the Federation, and if Nanyang University degrees are not recognised there, then how can they seek employment in their own country? I think the most important issue that we should look into is whether Nanyang University degrees will be recognised by the Federation of Malaya and internationally. 3.44 p.m.

Mr Speaker, Sir, I did not intend to speak in this debate, but seeing that practically everyone in this House has spoken on the Bill, I would like to chip in with a few words. This is not for the purpose of vote-catching, Sir. As a Member of the Government, Sir, it follows that this Bill has my support; but my real purpose in standing up is to set at rest one criticism which has been expressed on the floor of the House, and that is that the amount which has been granted by the Government to Nanyang University is not enough. I just want to clarify that this amount is exactly what they have asked for. 3.45 p.m. Mr Chew Swee Kee rose -

Mr Chew, in reply?

In reply, Sir. Mr Speaker, Sir, I think one hon. Member hit the nail on the head when he said that we had heard more than we had expected. At the same time, it is also distressing to note that some Members spoke without finding out more about the facts of the case, or they spoke in ignorance, or they spoke with an eye to the votes that will float about in March or April; especially the Member for Tiong Bahru who asked why was not equal treatment given? Why was that amount given to Nanyang University? I have said to this House, and I have said publicly - I suppose the hon. Member does not read the papers carefully - that the amount given to Nanyang University - some $450,000 - is the very amount, to the exact dollar, that the University has asked for. We could have given more, but we would have been accused of playing politics. So if that is not equal treatment, I do not know what is. The Member for Tiong Bahru also asked why the Nanyang University Students Union had been left out of the Bill, and said that this was discrimination against a Chinese university. May I tell him for his own benefit that the Nanyang University Bill was not drafted by the Government? It was drafted by the legal advisers of the sponsors of the University. I think now he will change his opinion and say that there is discrimination by the sponsors against Chinese education. I wish Members would come to this House and speak at least some truth, instead of making false accusations against the Government as to what is contained in the Bill. Do something that is constructive, for the sake of Singapore at least.

Order. I was wondering whether the word "truth" in that context is a parliamentary word. The opposite of that is "lie", I suppose? I suggest that the Minister withdraw that word

As you please, Sir, I withdraw that word. There was mention by I think the Member for Changi and the Member for Paya Lebar that, thanks to the small men, Nanyang University has come into existence, and the help which they have given is a symbol of their support for Chinese culture. For that reason, Sir, Government has given bursaries to the extent of $400,000 to the children of those people - Singapore citizens - who cannot afford a higher education. The recognition of Nanyang University degrees will come when the Commission, which will be set up in early February and which has been referred to in my speech earlier this morning -

On a point of elucidation, Sir.

If the Minister will give way. Mr Chew Swee Kee resumed his seat.

Will the Minister inform us whether any attempt has been made to ask the Federation Government to associate itself with this Commission?

I will come to that after I have finished my explanation of the Commission. As I have said, the Commission will be set up in February next year and the question of recognition of Nanyang University degrees will be decided then. I have not officially approached the Federation Government on this question, as it is quite clear from the Federation's point of view at this juncture that they would not like to be drawn into this question. Those are the points which I feel need answering. I welcome the support that has been given by all Members of this House to the Bill. Bill accordingly read a Second time. Committed to a Select Committee consisting of Mr Speaker as Chairman and such Members as may be nominated by the Committee of Selection. [Mr Chew Swee Kee].

Order for Second Reading read. 3.50 p.m.

Mr Speaker, Sir, I have His Excellency the Governor's consent to proceed with this Bill and I move, "That the Bill be now read a Second time." Members will recall that I stated in this House about two years ago that Government was investigating the question of making tax concessions, more popularly known as tax holidays, to industries whose expansion or establishment it was desired to encourage. A number of territories grant tax holidays to new industries. Sometimes this is done under the existing Income Tax Ordinance and sometimes it is done under special pioneer industry legislation. From available information at the present time, Ghana, Nigeria, British Guiana, Trinidad, and some of the smaller West Indian Islands grant tax holidays to industries. Hon. Members are of course, aware that the Federation of Malaya has recently enacted pioneer industry legislation. The Government has decided that tax concessions to industries should apply not only to enterprises of a pioneer nature but also to enterprises which undertake approved extensions or expansions of their present plant. For the sake of convenience, the Government proposes that this should be done by two separate Bills, that is, by the Bill now before the House and by the Industrial Expansion (Relief from Income Tax) Bill which is next on the Order Paper. This legislation is a further step forward in Government's policy of creating conditions which will encourage the establishment of industries here. It is imperative that we should turn our attention to secondary industries to provide further employment opportunities as it is only too clear that trade alone will not sustain our growing population. Government is confident that with the policy of selective protection as announced by me a few months ago and the tax concession proposals which are before the House today, the necessary conditions will be created for an increased rate of industrial development resulting in the strengthening of our economy and the creation of more employment opportunities in the industrial field. The object of the Bill now before the House is to attract capital both local and foreign to invest in new industries in Singapore by means of offering freedom from income tax for a period of five years. Such tax relief or tax holiday may, however, only be enjoyed by an enterprise which has obtained from me a Pioneer Certificate for a specific product. This would mean that the production of the particular product concerned is considered to be of economic benefit to Singapore. The tax concession will also be applicable to benefits and dividends paid out by the enterprise possessing a Pioneer Certificate. The criteria to be applied before an industry could be declared a pioneer industry are, broadly speaking, (a) that it is in the public interest; and (b) that it is an industry not being carried out in Singapore on an adequate scale and that there is favourable prospect for further development. Again, before any enterprise may be declared as producing a pioneer product, regard will at all times be had to the public interest and sources within Singapore. The Bill vests in the Minister for Commerce and Industry the power to declare any industry or product to be a pioneer industry or a pioneer product respectively, and if necessary, he has the power to prescribe conditions in the order declaring either a pioneer industry or a pioneer product. Before such an order is made, however, the Bill provides for full opportunity for those affected to object against the making of such an order. Once an order has been made affording pioneer status to an industry or product, applications may be made to the Minister by firms seeking pioneer enterprise status in respect of such pioneer industry or pioneer product. Every applicant will be required to furnish particulars of the capital expenditure incurred or to be incurred, the maximum production capacity, and so on. On the approval of an application, a Pioneer Certificate will be issued to the enterprise concerned. Provisions also exist in the Bill for the Minister to revoke an enterprise's pioneer status if the conditions under which a Pioneer Certificate had been granted have not been fulfilled. Finally, Sir, there is in Singapore a body of opinion opposed to the granting of such discretionary powers to a Minister as they consider that misuse can be made of such powers. They would prefer an appointed Board to exercise such powers. They, however, forget that in a democratic parliamentary system it is the Government, through the various Ministers, that is responsible to the people for the carrying out of Government policy, and therefore it would be totally Inappropriate for important discretionary powers which can have a direct bearing on or can affect Government policy, to be given to a Board which has no responsibility to the people. As far as this Bill and the next Bill are concerned, the effect is to grant a concession through tax relief, and tax collections are very much a Government matter. Again, these Bills do not give the Minister any power to take away any rights from anybody - only to grant a concession - and therefore no one can be aggrieved in the real sense of the word. Mr Speaker, Sir, I beg to move. Question proposed. 3.56 p.m.

Mr Speaker, Sir, as the Minister has said, the object of the Bill is to encourage the investment of local or foreign capital in new industries. I think this Bill should have been introduced much earlier. Anyway, I welcome this Bill, but I want to ask the Minister whether he is aware that at the moment the City Council has made a new ruling whereby any people wanting to set up factories or housing projects will have to pay 50 per cent of the cost of laying cables and pipes for the supply of electricity, water and gas. Previously this cost was borne by the City Council if the company concerned could prove that they could erect a certain number of houses or factories. Personally, I would like to have an answer from the Minister whether such an important ruling passed by the City Council will affect the Bill. 3.58 p.m.

Mr Speaker, Sir, I am sure that this House genuinely welcomes this Bill but I am also sure that this House has genuine fears about the success of this Bill. Sir, the problem facing us today is not whether to have tax holidays or that industries should be subsidised. Sir, I think all this is of secondary importance. The only issue lying ahead is whether or not it is high time for the Government of the Federation of Malaya to have a long-term economic policy towards Singapore in the light of our entrepot trade, and the necessity for boosting up industrialisation. If not, no matter how hard the hard-working Minister for Commerce and Industry tries his very best to promote and encourage the industrialisation of our going to be unsuccessful. Sir, to quote a simple example. Federation - manufactured goods can come into Singapore past the Johore Causeway, or by boat from Penang or Malacca or from any port, free of tax into Singapore.

Order. Moment of interruption.

Sir, I beg to move, That this Assembly do now adjourn.

Sir, I second it. Question proposed.

4.01 p.m.

Mr Speaker, Sir, the subject which I raise on the Motion for the Adjournment is the importance of unrestricted trade with China. Before I say anything, I wish to quote a few news cuttings to support my motion. First, a rubber market report from the Straits Times of Saturday, 29th November reads: "The market felt a backwash resulting from the announcement that amendments were being made to the proposed banking legislation in the Federation which would have the effect of closing down the Bank of China branches in Kuala Lumpur and Penang." Further down, it says: "They feel uneasy about the rubber price, fearing that China will not buy more Malayan rubber with the consequent bearish effect on this market." The headline is:

Now, Sir, the Sin Chew Jit Poh of 22nd November, reads: "The stoppage of sending goods from China has shaped the whole market." Another one, 23rd November, Sir: "Customers line up in front of the food stalls. The prices of textiles have increased by 5 per cent; foodstuffs from China have increased 20 per cent." It is an economic report from the Sin Chew Jit Poh of 23rd November. Taking another, 25th November, Sir: "Importers in Hongkong have raised their prices owing to the stoppage of sending goods from China to Singapore."

Is that the Sin Chew Jit Poh?

Yes, Sir. I am quoting all these extracts in support of my motion on the importance of trade with China. Sir, as we all know, Singapore's life blood depends on its entrepot trade. It is essential to develop strong and friendly trade relations with all countries, particularly our neighbour - China. Because of her geographical position and her growing ability to produce a wide range of products at very competitive prices, she is becoming an increasingly important factor in our entrepot trade. Trade statistics for the past few years reflect her growing importance, and I will quote some figures. Exports to China increased from a mere $12.9 million in 1954 to $74.3 million in 1957. Imports from China increased from $87.1 million in 1954 to $159.9 million in 1957. Sir, these figures clearly indicate an increase of nearly 100 per cent in imports from China, and an increase of 600 per cent in exports to China. There is therefore no doubt that China has now become a very serious competitor with other producing countries. We need to buy cheap goods and it will be much easier for us to sell them at a high price. This will perhaps smooth down our entrepot trade a great deal, especially our external trade. This competition will help us to procure more business and keep our entrepot trade going smoothly. It will help to lower our cost of living and, in return, raise the standard of living of our people. If China were to stop sending us her foodstuffs, such as vegetables, eggs and fruits, particularly Chinese herbs and medicines which no other country can supply in substituted form, and we were forced to purchase them from other countries, I do not know how much more we would have to pay for them. Assuming that we cut off supplies from this particular source. What do we gain? Nothing, Sir, absolutely nothing. On the contrary, our pattern of trade would be disrupted. Our volume of external trade would go down, because our customers would turn to China or any other direct source to get the goods they want. And, of course, our people here would have to pay unnecessarily high prices for the goods they want, and that will add to their hardships. But I must emphasise, Sir, that I do not for a moment favour the importation of any goods from any source if such importation will endanger our infant industries. Let us, however, be rational and impartial and treat all countries alike. We definitely cannot pinpoint any one country and say that its export of certain articles is detrimental to our economy and yet at the same time allow other countries to do that very thing. Naturally in the circumstances, Sir, we would be accused of showing discrimination and being unfriendly. I would like to quote two specific examples on this aspect. First, the banning of certain publications and textiles from China. The books were imported in accordance with Government regulations and with the sanction of a censorship board. But now we turn round and tell them that all these books are undesirable and should be totally banned. How are we going to gain or retain the confidence of the public? Sir, when the Government takes such inexplicable action, it easily destroys the faith of the public. How can the Government convince the public that the knowledge gained from reading such books as the Dream of the Red Chamber and the Romance of the Three Kingdoms poses a subversive threat to our country, when it takes such action? The real danger by taking such action is this: that it will lead the masses into believing that the banning of such books is part of a campaign launched by certain neighbouring countries which are ready to crush down Chinese culture and economic potentialities. I am sorry to say that S.E.AT.O. has an influence on this action to ban books and textiles from China. Coming to the second specific example, Sir - the banning of Chinese textiles. I will quote from the editorial of the Straits Times of 5th November. It says: "Up to the end of July piecegoods imported from China totalled approximately $12 million, which is less than the Chinese vegetable trade and about one-eighth of Japanese textile imports into Malaya." Sir, it is not sufficient for us to believe that such a ban on Chinese textiles is going to help the Japanese directly. Let us see what the Japanese delegation to Seattle had to say. It was reported in the Free Press on 12th November. "Mr H. Ikeda, Japanese Minister of State, said in Seattle yesterday: 'We cannot sit back and let the less developed countries in South-East Asia be influenced and swayed by the intensified economic drive of Communist China. For that purpose, free nations, especially the United States and Japan, must work together to give more vigorous and well-organised economic assistance to these countries.'" Sir, we read about the Russians starting to dump their tin and the Japanese openly saying, "No, sorry, we do not buy Malayan tin. We can get some cheap tin from somewhere else." Sir, whatever action the Government takes, is it merely to respond to the call and wishes of the Japanese? Or is it an obligation on our part? Is it the responsibility of this Government to antagonise our no less powerful neighbour, China? Sir, not for a moment do I think the Government is that. I cannot imagine it is, because the Japanese are already backed by the American capitalists. Any person who has ever paid the slightest attention to our trade relations with China will agree that the time has now come - and it is a crucial moment. Sir, I am even more unhappy about the political interpretation of the banning of Chinese goods. In fact, by being the only country discriminated against, that can be construed unmistakably as a hostile attitude towards her. We have to face the fact, whether we like it or not, that Red China is here to stay; that her power, with her 600 million people behind her, cannot be totally ignored. It is in our interest to adopt a policy of treating all nations alike and to live harmoniously with our neighbours, for we are a small country and our livelihood depends on our entrepot trade. I would like to warn the House that we are now facing a most dangerous state of affairs - the danger of being dragged into the cold war between the East and the West, between the Russians and the Americans. We may be in danger of losing the valuable independence which we have been striving for, for so long. There is no doubt that the present separation of Malaya and Singapore is absolutely artificial, because geographically, culturally and economically Malaya and Singapore consist of one unit. Although the people of Singapore are crying out loudly to the skies that we must all strive for ultimate unification with the Federation of Malaya, there is silence from the other side of the Causeway. As long as we remain separate, we have to find a solution to our problem of a merger with the Federation. We cannot just be blind and obediently follow what the Federation tells us, unless Singapore's interests are well looked after, well considered and well protected by it. Sir, let me now quote from the statement made by the Hon. the Minister for Commerce and Industry to this House on 13th August, 1958: "After careful consideration Government has come to the conclusion that the principle of protection must be recognised for our industries and Government will therefore commence taking immediately all such steps as are necessary for this policy to be implemented. Government recognises that entrepot trade will always continue to play a major part in our economy and is therefore determined that the operation of protection should be carried out with the minimum possible damage to, or dislocation of, the entrepot trade." Let us look at what the Minister has done since then. He has banned books and textiles from China. When you ask him to look after the entrepot trade, he says, "No, we must look after the interests of the Federation's industrial projects." And when we ask him to look after our local industry, he replies, "No, we must look after our entrepot trade status." Sir, I do not know when the Minister can decide how he is going to find a wonderful solution. On the one hand, he wants to maintain the entrepot status of Singapore and, on the other hand, he wants to carry out his policy of industrialisation. Now we have been asked by the Federation to protect a single textiles mill - the Malayan Textile Mills Ltd. If I am not wrong, it was first established in Singapore. Sir, as we know, the Malayan Textile Mills, until this very moment, is still unable to supply our home market. How can it supply sufficient quantities to feed our entrepot stomach? Therefore, I wish to ask the Minister this. Are we maintaining the entrepot trade, or are we protecting the interests of industry by this action? I say no, we are not doing either one of them, because this Government is giving more importance to protecting the Federation's industry than to maintain our entrepot trade; and, more important, it is more concerned to keep the Federation's factories running than to solve Singapore's growing unemployment problem. I must, of course, make it clear, especially after the row I had with the Minister for Local Government, Lands and Housing, that I am not suggesting for one moment that we must not have the interests of the Federation of Malaya at heart. I just want to plead that the Federation should also look after Singapore's interests.

Order. I hate interrupting the hon. Member, but I must remind him that the time of termination of the sitting is half-past four, and if he wishes the Minister to answer, he should give some time to the Minister.

rose -

Is it a point of order?

Mr Speaker, Sir, it is obvious that the hon. Member is under the impression that the Government can have half an hour to answer after the hon. Member has his half an hour!

Let me disabuse the mind of the hon. Member. The time for termination of the sitting is half-past four and not later.

There is one further controversial point which I must mention. I have tried to avoid as far as possible commenting on the present political activities in spite of the harmful effect they have on Singapore's future development. I do not wish to widen the gap and increase the misunderstanding between the Federation and Singapore, but I must warn the Singapore Government, in the gravest possible terms, that any attempt by it to follow the Federation's example in banning the Bank of China would have serious and harmful repercussions of a permanent nature. I want the Government to assure us that it is not going to follow the example of the Federation in banning the Bank of China. Sir, we cannot afford to ignore the role that the Bank of China has been playing. It is financing our local industries and important business houses to a great extent, and it is only natural to let the trade with China be done through this Bank. Now I call upon the Government to answer some questions. First, is it not wise to extend an official invitation to Red China to send a trade delegation here in order to clear up any misunderstanding and to heal the wounds that have been caused? Since we are a British colony and since Britain herself has normal trade relations with Red China, I do not think there is anything wrong in doing so. It only needs a little courage. Secondly, Tunku Abdul Rahman is one of the few national leaders who win wide support. The people not only of Singapore and the Federation but also in Borneo regard him as the only person who is eligible to be addressed as "Bapak Merdeka",, and he is "Bapak Merdeka" not only to Malaya but to Singapore and Borneo as well. We have full confidence that he will be prepared to reconsider the measures that have been taken by the Federation. (1) There is now less confidence in merger. Singapore's entrepot trade status and industrialisation are seriously threatened by a series of trade measures taken against us by the Federation. (2) There is the fear of racial discrimination. There is also the ban on textiles and books from China and this is considered by the people as being part of the move organised by S.E.A.T.O. to mislead the people as being anti-Chinese culture and anti-Chinese economic potentialities. (3) Furthermore, there is the fear of being dragged into the cold war. As we know, the Tunku has taken the stand of not joining S.E.A.T.O. and it is sufficient that we also should not join this Organisation and be involved in the cold war. But now, it seems the picture has changed. In conclusion, Sir, let me repeat what I have said to both the Russians and Americans alike. Hands off Asia! Let the Asians rule and manage themselves!

Before the hon. Minister rises to reply, may I take it that item 2, Pioneer Industries (Relief from Income Tax) Bill, Second Reading, will be further considered tomorrow?

Yes, Sir.

Now, Mr Minister.

As the hon. Member has given me only one minute to reply, I must in that minute assure the House that many of the statements made by the hon. Member have been misconceived and based on false premises. It would be futile for me to attempt to reply to him in detail now. I am not, however, going to accept the situation with complacency, as he did not extend to me the courtesy of leaving me time to reply. I may give him a reply in the Press or perhaps during the debate on the Pioneer industry legislation, if Mr Speaker will give me latitude.

Order. I think the hon. Minister may have an opportunity of doing so by making a Ministerial statement. It is half-past four. We have arrived at the time of termination of the sitting. The Question having been proposed at Four o'clock p.m. and the Debate having continued until the time appointed for the termination of a sitting, Mr Speaker adjourned the House without Question put, pursuant to the Standing Order. Adjourned accordingly at half-past Four o'clock p.m.

Wednesday, 3rd December, 1958

asked the Minister for Labour and Welfare to state -

The total number of registered Trade Unions in the Colony as at 31st March, 1957, was 263. The number and names of those trade unions which failed to submit to the Registrar of Trade Unions their annual returns for the year ending 31st March, 1957, by 31st March, 1958, and the action (with dates) taken against them are as follows: 1. Singapore Clog Workers Union - Certificate of Registration cancelled on 11th July, 1957. 2. Pakistani Seamen's Union of Singapore - Certificate of Registration cancelled on 22nd May, 1958. 3. Singapore Harbour Board Stevedores and Wharf Workers Union - Certificate of Registration cancelled on 6th February, 1958. 4. Singapore Amusement Workers Union - Certificate of Registration cancelled on 13th February, 1958. 5. Singapore Civil Air Transport Union - Certificate of Registration cancelled on 8th January, 1958. 6. Radio Malaya Local Programme Staff Union - Certificate of Registration cancelled on 24th January, 1958. 7. Singapore Cement Loading and Unloading Labourers Union - Certificate of Registration cancelled on 22nd February, 1958. 8. Christ Church School Teachers Union - Certificate of Registration withdrawn on 10th April, 1957. 9. Singapore "Pelni" Local Employees Union - Certificate of Registration cancelled on 2nd December, 1957. (b) and (c) The nature of these two queries involves the checking of the files of 103 Trade Unions for the facts and figures required. It is impossible to give the answers now. However, they will be given as soon as they are ready.

asked the Minister for Labour and Welfare to state -

Between April 1955 and October 1958 during which period this Government has been in office, five applications for registration as trade unions were refused under section 14 of the Trade Unions Ordinance (Cap. 154) on the ground that the Registrar of Trade Unions was not satisfied that they had complied with the provisions of the Ordinance or of the Regulations made thereunder. This Government is not responsible for action taken before it came into office. (b) Eight Certificates of Registration were cancelled by the Registrar of Trade Unions for not submitting their annual returns for the year ending 31st March. 1958, by 8th September, 1958.

asked the Chief Secretary whether he is aware of allegations that suspects rounded up by the Police are assaulted inside police vehicles en route to police stations, and if he will cause an investigation to be made into the matter.

I am aware of two such allegations, both of which have already been investigated. In the first case the investigation revealed that the complaint could not be substantiated. In the second case the allegation of assault was confirmed and appropriate disciplinary action has been taken against the two police constables concerned.

asked the Financial Secretary, in view of the distress reported to have been experienced by an accused in a Traffic Court, when his payment of a fine exceeding two dollars in one cent coins was at first not accepted, if he will consider issuing instructions to revenue-collecting Government Departments to accommodate members of the public as far as possible.

Cases of this nature are of very infrequent occurrence and it is not considered necessary to issue instructions concerning them. Large quantities of coins can always be exchanged for notes at the office of the Currency Commissioners.

asked the Minister for Health to state the names of the two persons referred to in paragraph 38 of the First Report from the Public Accounts Committee (Sessional Paper No. L.A. 17 of 1958), and what steps have been taken to date to recover the overpayments.

It is not considered appropriate that the names of the two persons referred to in paragraph 38 of the First Report from the Public Accounts Committee (Sessional Paper No. L.A. 17 of 1958) should be made public at this stage when the Public Accounts Committee did not itself make known the names of the officers concerned. Action is proceeding to recover the overpayments made.

asked the Minister for Commerce and Industry if he is aware of any opposition by ship-owners' organisations and seamen's unions to the compulsory medical examination required under the provisions of section 44 of the Merchant Shipping Ordinance (Cap. 207), and what action he has taken or proposes to take in the matter.

I am not aware of any opposition by shipowners' organisations or seamen's unions to the principle of compulsory medical examination required under section 44 of the Merchant Shipping Ordinance, Chapter 207. Subsequent to the receipt of notice of this question however I have received a letter disagreeing with this legislation from the Malayan National Seamen's Union, which union being now defunct, I propose to take no action on the letter.

asked the Minister for Commerce and Industry whether -

The answers are: (a) Certainly not. (b) Union officials can be and are allowed to be present outside the counter in the Shipping Office when seamen are signing Articles of Agreement. Provided good reasons are furnished to the Shipping Office and upon written application by the seamen themselves, Union officials may be present behind the counter. (c) There is no legal provision for such a procedure, but the law does require however that the Agreement be read over and explained by the Port Officer to each seaman. At the commencement of every voyage, the Master is also bound by law to post up a legible copy of the Agreement in some part of the ship which is accessible to the crew. This arrangement is being observed and has been found to work very satisfactorily on all British ships since 1854 and conforms with international shipping practice.

asked the Minister for Commerce and Industry whether he will consider lifting the ban on the import of cottons into Singapore from China.

It will be recalled that when the Federation requested our co-operation in this matter it was for a period of three months pending the finalisation of the Federation's anti-dumping law to protect its industries. It was on this basis that the Singapore Government agreed to the Federation's request. The Singapore Government will therefore review this suspension at the end of the year in the light of the circumstances then existing and the progress of the Federation's anti-dumping legislation. Meanwhile, import licences which have been issued up to the date of the ban are confirmed without hindrance on proof of commitment before the ban.

asked the Minister for Commerce and Industry whether he will permit a Trade Mission from Singapore to go to China to improve the trade relations between the two countries.

In general the policy of my Ministry is to encourage visits of trade missions either from abroad or from Singapore with a view to improving trade relations and thereby increasing trade. The purpose of trade missions however is generally to expand sales in the countries visited, but since it is the Chinese People's Government's express policy to trade on a basis of bilateral agreements, thus purchasing direct from producing countries rather than through an entrepôt, and since we have no products of our own in which we could expand our sales to China, Government considers that no economic advantage to Singapore will be gained by a trade mission to China at present.