PROGRESS REPORT OF CONSTITUTIONAL PROVISIONS - FOR SINGAPORE IN FEDERATION OF MALAYSIA - IN ACCORDANCE WITH WHITE PAPER CMD. 33 OF 1961 - (Statement by the Prime Minister)
Mr Speaker, Sir, I have to report to the House on the progress that has been made in working out the form of words for the constitutional provisions for Singapore in the Federation of Malaysia in accordance with the provisions contained in White Paper Cmd, 33 of 1961 and as amplified or amended in formal exchanges of letters between the Federation Prime Minister and myself. I am making this Statement before answering the several questions that have been tabled in order that when I come to answer these questions, Members can see the issues against a wider perspective. Although the White Paper and the formal exchanges of letters were all finalised in November 1961, the working party of officials did not start meeting until 5th December last year. This was because the Federation officials were occupied with the Sabah and Sarawak negotiations and they wanted to complete the main framework of the Borneo side before tackling the details of the Singapore side. Our team of officials, which consisted of the State Advocate-General, the Permanent Secretary to the Ministry of Home Affairs (Mr Stewart), the Permanent Secretary, Finance Division (Mr Howe Yoon Chong), the Acting Permanent Secretary to the Ministry of National Development (Mr Sim Kee Boon) and the Cabinet Secretary (Mr Wong Chooi Sen), met the Federation team on 22 occasions from 5th December, 1962, to 14th February this year. They reached agreement and submitted joint recommendations on most of the provisions to be incorporated in the new Constitution of the Federation of Malaysia and of the State of Singapore. However, on a number of points which included banking, insurance, shipping, navigation, broadcasting, television, constitutional guarantees and finance, the Federation and the Singapore teams of officials were unable to reach agreement. These matters were therefore referred to the Ministers. Plenary meetings of Ministers and officials took place on three occasions - 28th February and 1st March in Kuala Lumpur, 21st and 22nd March in Kuala Lumpur and 2nd April in Singapore. I am happy to report that except for finance nearly all the points left unresolved by the official teams have now been agreed. There remain only a few points to be tidied up by the draftsmen. One of them is the question of Singapore retaining day-to-day control of programmes and administration of broadcasting and television whilst following overall Federal policy. A special constitutional agreement may have to be drawn up to spell out the rights and obligations of the State Government of Singapore vis-a-vis the Federal Government. Another point is the spelling out of State autonomy with the consequential provision that Malaysian citizens who are also Singapore citizens cannot have double enjoyment of both State autonomy in matters like education and labour and at the same time have full enjoyment of education and labour rights in the other States. Last but by no means least remain the financial arrangements. First, I would like to report to the House in brief and broad outline the points that have been agreed. At our first plenary meeting of Ministers on 28th February and 1st March, the important questions of acquisition and deprivation of citizenship were discussed. All Singapore citizens will become citizens of Malaysia by operation of law. The Federal Government shall have the power over acquisition of Singapore citizenship by naturalization after Malaysia. All such acquisitions shall be with the agreement of the Singapore Government. There shall be a provision in the Second Schedule of the Federal Constitution to the effect that the Singapore Government must be informed of all acquisitions of citizenship by naturalization approved by the Federal Government. The Singapore Government will, however, retain power over the acquisition of citizenship by registration. As these citizens will automatically become Malaysian citizens, it shall be the responsibility of the Singapore Government to inform the Federal Government of all acquisitions by registration. Deprivations of citizenship are on national considerations, and hence the Federal Government shall have power of deprivation on all grounds. The Singapore Government should have the right to deprive on grounds of fraud on the State or under Article 25 (1) (c) on a conviction. There will also be a provision in section 10 of the Second Schedule of the Federal Constitution to the effect that both the Federal and Singapore Governments should keep each other informed of deprivations of Singapore citizenship on all grounds. The Federal Constitution should contain the following provision:-
(i) A citizen of Singapore shall by virtue of such citizenship be a citizen of Malaysia; (ii) A citizen of Singapore who renounces his citizenship of Singapore except on acquiring citizenship of Malaysia by registration in one of the other States shall cease to be a citizen of Malaysia and shall not, except with the approval of the Federal Government, be eligible for registration as a citizen of Malaysia or of Singapore; (iii) Birth or residence in Singapore will count for the purpose of acquiring citizenship of Malaysia through citizenship of Singapore; (iv) The Federal Government would have exclusive authority to grant citizenship by naturalization, but in the case of a person to be naturalized as a citizen of Singapore only with the concurrence of the Singapore Government; (v) The Federal Government would have authority to deprive persons of Malaysian citizenship on all grounds; (vi) Deprivation or renunciation of Malaysian citizenship of a citizen of Singapore would involve loss of Singapore citizenship; and (vii) A person who has renounced or been deprived of his Malaysian citizenship would not be eligible to be registered as a citizen of Singapore except with the approval of the Federal Government. The Singapore Constitution will contain the following provisions which could not be amended or modified without the approval of the Federal Parliament:-
(i) Citizenship of Singapore by birth; (ii) Citizenship of Singapore by descent; (iii) Citizenship of Singapore by registration of citizens of Malaysia who are not citizens of Singapore; (iv) Citizenship of Singapore by registration of persons resident in Singapore on Merger Day with the agreement of the Federal Government; (v) Citizenship of Singapore by registration on marriage; (vi) Citizenship of Singapore by registration of minors; (vii) Renunciation of citizenship of Singapore; and (viii) Deprivation of citizenship of Singapore on the grounds of fraud, mistake and conviction. At a subsequent meeting, it was also agreed that the Government shall for a period of two years after Malaysia Day have the power to deprive anyone of Singapore citizenship on any grounds provided such grounds arose before Malaysia Day. This provision will take care of all pending and future cases which come to light after Malaysia Day. The basis of acquisitions and grants or deprivations of citizenship should be common to the Federation and Singapore. Provision should be made to ensure that the Federal and Singapore Governments would keep each other informed of all grants and deprivations of citizenship on all grounds. It has been agreed that there should be no relaxation in the Federal or Singapore immigration laws before Merger Day. Mr Speaker, Sir, I have dwelt in some detail on this question of citizenship as I am quite sure Members of this House and the people outside will be happy to know that all their rights as citizens of Singapore and later as citizens of Malaysia will be duly protected in the Constitution. Conference of Rulers: Article 38 of the Conference of Rulers will be amended to refer to the Yang di-Pertuan Negara and the Prime Minister of Singapore in the same manner as the Governors and Chief Ministers of Malacca and Penang respectively. Power of Pardon: The Yang di-Pertuan Negara and the Prime Minister of Singapore will have the same powers of pardon under Article 42 as the Governors and Chief Ministers of Malacca and Penang. Federal Legislature: There will be consequential amendments to Article 14 to provide that citizens of Singapore may stand for election only in Singapore to the Federal Parliament. Extent of Federal and State laws and subject matter of Federal and State laws (Articles 74 and 77): The provisions of the Ninth Schedule will have to be amended in its application to Singapore in accordance with the Annexure as amended to the heads of agreement for merger of Singapore and the Federation as contained in the White Paper. Modification of Articles 83 to 87 and Article 88: There should be a provision in Article 88 for modification in the application of Articles 83 to 87 to Singapore in the same manner as Penang and Malacca. Article 91: The National Land Council should be amended in its application to Singapore so as to provide that any policy formulated should not apply to Singapore without the concurrence of the Singapore Government. Article 92: The national development plan should be amended in its application to Singapore so as to provide that the concurrence of the State Government will be required in respect of any development plan which the Federal Government proposes should be put into operation in Singapore. Article 95A-National Council for Local Government: The last phrase of Article 95A (5) which reads: "... and State Governments shall follow the policy so formulated.', shall not apply to Singapore until such time as the Federation Government with the concurrence of the Singapore Legislative Assembly otherwise provides. The representative of the Singapore State will participate in the Council as a member without vote until such time as the State has accepted obligation to follow the advice formulated by the Council under Article 95A (5) . Article 95A (5) should apply to Singapore and the Singapore Government should consult the National Council for Local Government on any proposed legislation dealing with local government. It is agreed that if and when Singapore agrees to be bound by the decisions of either the National Land Council or the National Council for Local Government and consequently becomes a voting member of the Council, the number of Federal representatives may be increased to preserve the existing balance. Article 107 - Reports of Auditor General - should be amended to include "to the Yang di-Pertuan Negara in relation to the accounts of the State in the same manner as the present States of the Federation". Article 113 - Conduct of Elections - should apply to Singapore in respect of Federal elections subject to necessary transitional arrangements for the first elections of the 15 representatives of Singapore to the first Parliament of Malaysia. Reviews of constituencies - the period of review as set out in Article 113 (2) should continue to obtain after merger. The right to vote - At the plenary meeting on the 21st and 22nd of March, it was agreed that Article 119 should be amended to provide that citizens of Singapore may vote only in Singapore with the reciprocal provision that citizens of Malaysia who are not Singapore citizens may vote only outside Singapore. Other matters relating to the judiciary, the courts and the State Advocate-General's Chambers were also agreed. They will all become Singapore branches of the Pan-Malaysian Federal Judicial and Legal Service. It was also agreed that the definition of "Malay" is to include Singapore Malays. The definition of "Malay" in Article 160 (2) of the Federal Constitution will be amended by deleting the word "Merdeka" in the present definition and substituting therefor the word "Merger" or "Malaysia". Article 152 - National Language: Until the Singapore Legislative Assembly otherwise provides, English, Mandarin and Tamil languages may be used in the Singapore Legislative Assembly only in addition to the National Language. Other legal and technical matters relating to the succession of property - Articles 166, 167, 169 of the Constitution - were also agreed. So too Article 162 regarding existing laws. So also Article 168 on legal proceedings and Article 173 on pending appeals to the Privy Council. At the last plenary meeting in Singapore on the 2nd of April, questions of fundamental rights were settled. It was agreed that on fundamental liberties, the following fundamental liberties in the Federal Constitution shall be extended to Singapore: Article 5 (Liberty of the person), Article 6 (Slavery and forced labour prohibited), Article 7 (Protection against retrospective criminal laws and repeated trials), Article 8 (1) , equality before the law and protection of the law. Articles 8 (2) and 12 (1) should be modified in their application to Singapore after merger to enable the Singapore Government to provide for the advancement of Malays in Singapore. Mr Speaker, Sir, I would like to pause there and explain this. Under the Federation Constitution it is unconstitutional to discriminate in education policy between Malays and other races. However, in Singapore we have at present a policy which does discriminate between Malays and other races in favour of the Malays, giving them free secondary and university education, and therefore, Article 8 (2) and Article 12 (1) will have to he amended in order to allow this practice to continue. Article 8 (3) - no discrimination in favour of subject of the Ruler of any State. Article 8 (4) - no discrimination by any public authority. Article 11 - Freedom of religion; Article 13 - Rights of property. Article 9 (1), which prohibits banishment of any citizen, shall apply in Singapore. The same applies to freedom of movement under Article 9 (2); but subject, in respect of Singapore, to the proviso that the Central Government may, if it so desires, by legislation in respect of labour or education or other matters in which Singapore citizens enjoy autonomy, prevent the double enjoyment of both rights of State autonomy in Singapore and again full enjoyment of equal rights with other Malaysian citizens in respect of labour and education again in the other States. Other legal technical matters concerning navigation, shipping, banking, insurance, have all now been agreed and they will remain as listed in the White Paper as concurrent rights. In other words, administrative powers and legislative powers will be with Singapore with over-riding legislative powers in the Federal Parliament. It has also been agreed on the 2nd of April that, first, the provisions of Article 153 relating to education should not apply to Singapore after merger. That is in order to allow us to continue giving free education to Malays. At the same time, it was agreed that on application of Article 153 to Singapore after merger, the following conditions will apply. In other words, first, no proportion of posts in a Federal Public Service in Singapore will be reserved for Malays; second, recruitment in Singapore to Federal Public Services will be open to all citizens of Malaysia; and three, no proportion of permits or licences for the operation of any trade or business in Singapore will be reserved for Malays; and four, the definition of "Malays" for purposes of Article 153 will be amended to include Singapore Malays. In short, Mr Speaker, Sir, this means that Malays in Singapore will continue to enjoy their special rights as at present with particular reference to free education from primary school to university and, if they choose to go to the other States, will enjoy special rights as for Malays there. In this way, we have been able to maintain the principle of free competition in Singapore for employment in the public services and for businesses like taxi licences, bus licences, trade licences and so on. Now, I come to finance. This is one outstanding problem which is basic to the whole of the relationship between the State and the Central Government It is the view of the Singapore Government that if Singapore is to have autonomy, not only in name but in practice and substance, in the many subjects ranging from education, labour, social welfare, health and so on, then we must, in the words of the White Paper, retain the present machinery for the collection of taxes and make a contribution to the Central Government for Federal services. I quote these words from the White Paper in the exchange of letters: 'It is our view that there is no equivocation that the collection of taxes must he done by Singapore. The revenues collected, whether they be Federal or State taxes, after Malaysia should be kept in Singapore. Singapore's contribution to Federal services in Singapore like Police and Prisons and its share of Pan-Malaysian services for the whole region like defence and external affairs can be a first charge on the revenues collected.' I had hoped by today to be in a position to report to the House on the agreement reached and to disclose the formula on which Singapore will pay for its share of Federal services in Singapore and its proportion of Pan Malaysian services for the whole region. I hope I have made that clear, Mr Speaker, Sir. Police and Prisons - we pay in full for what Singapore maintains in Police and Prisons Force and the necessary other establishment and capital charges. Defence and external affairs, we pay for our proportion of what Malaysia spends as a whole. In the first meeting in Kuala Lumpur on the 28th of February and the 1st of March, it became clear that there was basic disagreement between the views of the Finance Ministry in Kuala Lumpur and those of the Finance Ministry in Singapore. The Finance Ministry in Kuala Lumpur envisaged an arrangement whereby they would take over the functions of the Singapore Finance Ministry in respect of all taxes, and year by year make such payments to the State Government as is necessary for its discharge of its other duties. The Singapore Finance Ministry's view is the exact opposite. Having all these years efficiently and effectively discharged its functions, it has not the slightest doubt that it can continue to do so as envisaged in the White Paper and make its yearly contribution to the Central Government for Federal services. I need hardly say that strong views were held on both sides. However, I am happy to say that this did not prevent discussions from being held to explore every possibility of a fair arrangement whereby the Federal Government will have complete guarantees on the efficiency and efficacy of tax collection by the Singapore Finance Ministry and a faithful and accurate audit of every item collected and expended. At our second plenary meeting in Kuala Lumpur on the 21st and 22nd of March, we discussed a paper put up by the Federation Finance Ministry on the subject. I am sorry to say that the paper was not acceptable to us as, in our view, it was not in accord with the clear terms of the White Paper with regard to responsibility for collection by Singapore and then making a contribution to the Central Government for Federal services. We undertook to submit a paper for a meeting in Singapore scheduled for the 1st and 2nd of April. Our paper was submitted on Friday the 29th of March. Instead of the plenary session originally scheduled for the 1st of April, informal discussions were held between the two Finance Ministers then in Singapore and between myself, the Deputy Prime Minister of the Federation and the Minister of Internal Security of the Federation. We thought on Monday evening the 1st of April that broad agreement in principle had been reached on responsibility for collection and that all that remained was an equitable method of working out our contribution to the Federal Government for Federal services. In other words, apportioning money from taxes like Income Tax and Customs duties which will become Federal taxes and Pan-Malaysian after Malaysia between (1) the Federal Government for our contribution and (2) the rest for our own use. The plenary session was held on the 2nd of April. Several of the outstanding items regarding fundamental rights in the Constitution, establishment matters and continued application of the principle of free competition in Singapore without special preferences were agreed. There was a great deal of understanding and a common desire for fair play. However, when discussions were resumed on finance in the afternoon, we discovered that what we thought had already been agreed on principle on 1st April regarding responsibilities for collection of Federal taxes was, in fact, not agreed and the meeting ended without agreement. The respective positions of the two Finance Ministries remained as on the 21st of March. Sir, Members are aware that financial arrangements are the key to all the other relations between the State and the centre. Amendments to the Federal Constitution and the State Constitution of Singapore cannot be finalised until this matter has been resolved. The present time-table is that all these constitutional amendments should be ready by May or, at the latest, by early June in order that they can be tabled before and approved by this Assembly and then incorporated in a treaty to be signed in London in June so that, on the 31st of August this year, all that remains will be the formal proclamation of independence. Mr Speaker, we are thankful for the practical approach of the Federation Deputy Prime Minister to these problems. But for his understanding that Singapore's autonomy in labour, education, health and social services should he accompanied by the financial means to implement our policies, further discussions at inter-governmental level would have been pointless. At our next meeting, we hope to work out the basis of the formula to he spelt out to apportion funds collected by the Singapore Government from Federal taxes in Singapore between (a) Singapore's contribution for Federal services, and (b) the balance to be used by Singapore for State expenses and development. Members will realise the urgent necessity of our finding a just formula for working out our contribution. If this is not done before the end of May, then the London treaty may be delayed to the end of June or even the beginning of July, since after agreement some time will be needed by the draftsmen to frame these amendments to the Federal Constitution and some further time will be taken by this Assembly to debate and adopt them. Sir, the Federation Deputy Prime Minister informed me yesterday afternoon that he would be leaving shortly for Washington and he would like another plenary meeting of Ministers and officials in Kuala Lumpur before he leaves. We hope that these two meetings on the 10th and 11th of April will produce the basis for such a formula. Our official party of Treasury and Establishment officers will be leaving for Kuala Lumpur tomorrow for preparatory talks to prepare the way for this plenary session. Because of his heavy commitments, these are the only two available dates the Deputy Prime Minister has before he leaves for Washington. In these circumstances, our original intention to proceed with our Assembly sittings until the 11th of April (the eve of the Easter holidays) has to be changed and the House will have to adjourn on the 9th of April. However, to make up for extra time, the Leader of the House has already indicated to Opposition Members that we are willing to sit tomorrow (Saturday) Monday and Tuesday everyday till midnight. However, I understand from my Deputy that some Opposition Members are not enamoured of the proposal of a Saturday sitting. On Tuesday evening, the House will adjourn to the 7th of June, but I undertake to reconvene the House earlier as soon as the constitutional arrangements have been finalised and a complete report can be made to the House. Sir, in view of the importance of the future constitutional provisions governing the relationship between the Singapore State Government and the Federal Central Government, I am prepared to answer any questions on this matter, and if Members so wish, to have a debate on it. 3.05 p.m.